Community First Bank
2005 Restricted Stock Plan
and Trust Agreement
Article I
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ESTABLISHMENT OF THE PLAN AND TRUST
1.01 Community First Bank ("Bank") hereby establishes the Restricted Stock
Plan (the "Plan") and Trust (the "Trust") upon the terms and conditions
hereinafter stated in this Restricted Stock Plan and Trust Agreement (the
"Agreement").
1.02 The Trustee hereby accepts this Trust and agrees to hold the Trust
assets existing on the date of this Agreement and all additions and accretions
thereto upon the terms and conditions hereinafter stated.
Article II
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PURPOSE OF THE PLAN
2.01 The purpose of the Plan is to reward and to retain personnel of
experience and ability in key positions of responsibility with the Bank and its
subsidiaries, by providing such personnel of the Bank and its subsidiaries with
an increased equity interest in the Community First Bancorp, Inc. ("Company"),
the parent corporation of the Bank, as compensation for their prior and
anticipated future professional contributions and service to the Bank and its
subsidiaries.
Article III
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DEFINITIONS
The following words and phrases when used in this Plan with an initial
capital letter, unless the context clearly indicates otherwise, shall have the
meaning as set forth below. Wherever appropriate, the masculine pronoun shall
include the feminine pronoun and the singular shall include the plural.
"Bank" means Community First Bank, a federal stock savings bank.
"Beneficiary" means the person or persons designated by the Participant to
receive any benefits payable under the Plan in the event of such Participant's
death. Such person or persons shall be designated in writing by the Participant
and addressed to the Bank or the Committee on forms provided for this purpose by
the Committee and delivered to the Bank and may be changed from time to time by
similar written notice to the Committee. A Participant=s last will and testament
or any codicil thereto shall not constitute written designation of a
Beneficiary. In the absence of such written designation, the Beneficiary shall
be the Participant's surviving spouse, if any, or if none, the Participant's
estate.
"Board" means the Board of Directors of the Bank, or any successor
corporation thereto.
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"Cause" means the personal dishonesty, incompetence, willful misconduct,
breach of fiduciary duty involving personal profits, intentional failure to
perform stated duties, willful violation of a material provision of any law,
rule or regulation (other than traffic violations and similar offense), or a
material violation of a final cease-and-desist order or any other action which
results in a substantial financial loss to the Company or its Subsidiaries.
"Change in Control" shall mean: (i) the sale of all, or a material portion,
of the assets of the Company or the Bank; (ii) the merger or recapitalization of
the Company or the Bank whereby the Company or the Bank is not the surviving
entity; (iii) a change in control of the Company or the Bank, as otherwise
defined or determined by the Office of Thrift Supervision ("OTS") or regulations
promulgated by it; or (iv) the acquisition, directly or indirectly, of the
beneficial ownership (within the meaning of that term as it is used in Section
13(d) of the 1934 Act and the rules and regulations promulgated thereunder) of
twenty-five percent (25%) or more of the outstanding voting securities of the
Company by any person, trust, entity or group. This limitation shall not apply
to the purchase of shares of up to 25% of any class of securities of the Company
by a tax-qualified employee stock benefit plan which is exempt from the approval
requirements, set forth under 12 C.F.R. ss.574.3(c)(1)(vi) as now in effect or
as may hereafter be amended. The term "person" refers to an individual or a
corporation, partnership, trust, association, joint venture, pool, syndicate,
sole proprietorship, unincorporated organization or any other form of entity not
specifically listed herein.
"Committee" means the Board of Directors of the Company or the Restricted
Stock Plan Committee appointed by the Board of Directors of the Company pursuant
to Article IV hereof.
"Common Stock" means shares of the common stock of the Company, or any
successor corporation or parent thereto.
"Company" means Community First Bancorp, Inc., and any successor
corporation thereto.
"Conversion" means the effective date of the stock charter of the Bank and
simultaneous acquisition of all of the outstanding stock of the Bank by the
Company.
"Director" means a member of the Board of the Bank.
"Director Emeritus" means a person serving as a director emeritus, advisory
director, consulting director, or other similar position as may be appointed by
the Board of Directors of the Company or the Bank from time to time.
"Disability" means any physical or mental impairment which renders the
Participant incapable of continuing in the employment or service of the Bank or
any Subsidiary in his current capacity as determined by the Committee.
"Effective Date" shall mean the date of stockholder approval of the Plan by
the Company's stockholders.
"Eligible Participant" means an Employee, Director or director of a
Subsidiary who may receive a Plan Share Award under the Plan.
"Employee" means any person who is employed by the Bank or a Subsidiary.
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"Participant" means an Employee or Director who receives a Plan Share Award
under the Plan.
"Plan Shares" means shares of Common Stock held in the Trust which are
awarded or issuable to a Participant pursuant to the Plan.
"Plan Share Award" or "Award" means a right granted to a Participant under
this Plan to earn or to receive Plan Shares.
"Plan Share Reserve" means the shares of Common Stock held by the Trust
pursuant to Sections 5.03 and 5.04.
"Subsidiary" means those subsidiaries of the Bank which, with the consent
of the Board, agree to participate in this Plan.
"Trustee" or "Trustee Committee" means that person(s) or entity nominated
by the Committee and approved by the Board pursuant to Sections 4.01 and 4.02 to
hold legal title to the Plan assets for the purposes set forth herein.
ARTICLE IV
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ADMINISTRATION OF THE PLAN
4.01 ROLE OF THE COMMITTEE. The Plan shall be administered and interpreted
by the Board of Directors of the Bank or a Committee appointed by said Board,
which shall consist of not less than two non-employee members of the Board,
which shall have all of the powers allocated to it in this and other sections of
the Plan. All persons designated as members of the Committee shall be
"Non-Employee Directors" within the meaning of Rule 16b-3 under the Securities
Exchange Act of 1934, as amended ("1934 Act"). The interpretation and
construction by the Committee of any provisions of the Plan or of any Plan Share
Award granted hereunder shall be final and binding. The Committee shall act by
vote or written consent of a majority of its members. Subject to the express
provisions and limitations of the Plan, the Committee may adopt such rules,
regulations and procedures as it deems appropriate for the conduct of its
affairs. The Committee shall report its actions and decisions with respect to
the Plan to the Board at appropriate times, but in no event less than one time
per calendar year. The Committee shall recommend to the Board one or more
persons or entity to act as Trustee in accordance with the provision of this
Plan and Trust and the terms of Article VIII hereof.
4.02 ROLE OF THE BOARD. The members of the Committee and the Trustee shall
be appointed or approved by, and will serve at the pleasure of the Board. The
Board may in its discretion from time to time remove members from, or add
members to, the Committee, and may remove, replace or add Trustees. The Board
shall have all of the powers allocated to it in this and other sections of the
Plan, may take any action under or with respect to the Plan which the Committee
is authorized to take, and may reverse or override any action taken or decision
made by the Committee under or with respect to the Plan, provided, however, that
the Board may not revoke any Plan Share Award already made except as provided in
Section 7.01(b) herein.
4.03 LIMITATION ON LIABILITY. No member of the Board, the Committee or the
Trustee shall be liable for any determination made in good faith with respect to
the Plan or any Plan Share Awards granted. If a member of the Board, Committee
or any Trustee is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
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administrative or investigative, by any reason of anything done or not done by
him in such capacity under or with respect to the Plan, the Company and the Bank
shall indemnify such member against expenses (including attorney's fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred
by him or her in connection with such action, suit or proceeding if he or she
acted in good faith and in a manner he or she reasonably believed to be in the
best interests of the Company, the Bank and its Subsidiaries and, with respect
to any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful. Notwithstanding anything herein to the contrary, in no
event shall the Bank take any actions with respect to this Section 4.03 which is
not in compliance with the limitations or requirements set forth at 12 C.F.R.
545.121, as may be amended from time to time.
ARTICLE V
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CONTRIBUTIONS; PLAN SHARE RESERVE
5.01 AMOUNT AND TIMING OF CONTRIBUTIONS. The Board of Directors of the Bank
shall determine the amounts (or the method of computing the amounts) to be
contributed by the Bank to the Trust established under this Plan. Such
contribution amounts shall be paid to the Trustee at the time of contribution.
No contributions to the Trust by Participants shall be permitted except with
respect to amounts necessary to meet tax withholding obligations.
5.02 INITIAL INVESTMENT. Any funds held by the Trust prior to investment in
the Common Stock shall be invested by the Trustee in such interest-bearing
account or accounts at the Bank as the Trustee shall determine to be
appropriate.
5.03 INVESTMENT OF TRUST ASSETS. Following approval of the Plan by
stockholders of the Company and receipt of any other necessary regulatory
approvals, the Trust shall purchase Common Stock of the Company in an amount
equal to up to 100% of the Trust's cash assets, after providing for any required
withholding as needed for tax purposes, provided, however, that the Trust shall
not purchase more than 8,331 shares of Common Stock. The Trustee may purchase
shares of Common Stock in the open market or, in the alternative, may purchase
authorized but unissued shares of the Common Stock or treasury shares from the
Company in an amount sufficient to fund the Plan Share Reserve.
5.04 EFFECT OF ALLOCATIONS, RETURNS AND FORFEITURES UPON PLAN SHARE
RESERVES. Upon the allocation of Plan Share Awards under Sections 6.02 and 6.05,
or the decision of the Committee to return Plan Shares to the Company, the Plan
Share Reserve shall be reduced by the number of Shares subject to the Awards so
allocated or returned. Any Shares subject to an Award which are not earned
because of forfeiture by the Participant pursuant to Section 7.01 shall be added
to the Plan Share Reserve.
ARTICLE VI
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ELIGIBILITY; ALLOCATIONS
6.01 Eligibility. Eligible Participants may receive Plan Share Awards
within the sole discretion of the Committee. Directors who are not otherwise
Employees shall receive Plan Share Awards pursuant to Section 6.05.
6.02 Allocations. The Committee will determine which of the Eligible
Participants will be granted Plan Share Awards and the number of Shares covered
by each Award, provided, however, that in no event shall any Awards be made
which will violate the Charter or Bylaws of the Bank or its
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Subsidiaries or any applicable federal or state law or regulation. In the event
Shares are forfeited for any reason or additional Shares are purchased by the
Trustee, the Committee may, from time to time, determine which of the Eligible
Participants will be granted Plan Share Awards to be awarded from forfeited
Shares. In selecting those Eligible Participants to whom Plan Share Awards will
be granted and the number of shares covered by such Awards, the Committee shall
consider the prior and anticipated future position, duties and responsibilities
of such individuals, the value of their prior and anticipated future services to
the Bank and its Subsidiaries, and any other factors the Committee may deem
relevant. All actions by the Committee shall be deemed final, except to the
extent that such actions are revoked by the Board. Notwithstanding anything
herein to the contrary, in no event shall any Participant receive Plan Share
Awards in excess of 25% of the aggregate Plan Shares authorized under the Plan.
6.03 FORM OF ALLOCATION. As promptly as practicable after a determination
is made pursuant to Section 6.02 or Section 6.05 that a Plan Share Award is to
be made, the Committee shall notify the Participant in writing of the grant of
the Award, the number of Plan Shares covered by the Award, and the terms upon
which the Plan Shares subject to the award may be earned. The date on which the
Committee makes its award determination or the date the Committee so notifies
the Participant shall be considered the date of grant of the Plan Share Awards
as determined by the Committee. The Committee shall maintain records as to all
grants of Plan Share Awards under the Plan.
6.04 ALLOCATIONS NOT REQUIRED. Notwithstanding anything to the contrary at
Sections 6.01, 6.02 or 6.05, no Eligible Participants shall have any right or
entitlement to receive a Plan Share Award hereunder, such Awards being at the
sole discretion of the Committee and the Board, nor shall the Eligible
Participants as a group have such a right. The Committee may, with the approval
of the Board (or, if so directed by the Board) return all Common Stock in the
Plan Share Reserve to the Company at any time, and cease issuing Plan Share
Awards.
6.05 AWARDS TO DIRECTORS. Notwithstanding anything herein to the contrary,
as of the Effective Date, a Plan Share Award shall be awarded to each Director
of the Bank that is not otherwise an Employee as indicated below:
NON-EMPLOYEE DIRECTOR NUMBER OF PLAN SHARES
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Xxxxx X. Xxxxxx 416
J. Xxxxx Xxxxxx 416
Xxxxxxxxx X. Xxxxxxx 354
Xxxxxx X. Xxxxxx 354
Xxxx X. Xxxxxx 305
C. Xxxxx Xxxxxx 231
Xxxxxxx X. Xxxxxx 206
Such Plan Share Award shall be earned and non-forfeitable at the rate of
one-fifth as of the one-year anniversary of the Effective Date and an additional
one-fifth following each of the next four successive years provided that such
Director remains a Director or Director Emeritus during such period. Such Plan
Share Award shall be immediately 100% earned and non-forfeitable in the event of
the death or Disability of such Director or Director Emeritus. Such Plan Share
Award shall be immediately 100% earned and
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non-forfeitable upon a Change in Control of the Company or the Bank. Subsequent
to the Effective Date, Plan Share Awards may be awarded to newly elected or
appointed Directors of the Bank by the Committee, provided that total Plan Share
Awards granted to non-employee Directors of the Bank shall not exceed 30% of the
total Plan Share Reserve in the aggregate under the Plan or 5% of the total Plan
Share Reserve to any individual non-employee director.
ARTICLE VII
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EARNINGS AND DISTRIBUTION OF PLAN SHARES; VOTING RIGHTS
7.01 EARNINGS PLAN SHARES; FORFEITURES.
(a) GENERAL RULES. Unless the Committee shall specifically state to the
contrary at the time a Plan Share Award is granted, Plan Shares subject to an
Award shall be earned and non-forfeitable by a Participant at the rate of
one-fifth of such Award following one year after the granting of such Award, and
an additional one-fifth following each of the next four successive years;
provided that such Participant remains an Employee, Director, or Director
Emeritus during such period.
(b) REVOCATION FOR MISCONDUCT. Notwithstanding anything herein to the
contrary, the Board shall, by resolution, immediately revoke, rescind and
terminate any Plan Share Award, or portion thereof, previously awarded under
this Plan, to the extent Plan Shares have not been delivered thereunder to the
Participant, whether or not yet earned, in the case of a Participant who is
discharged from the employ or service of the Bank or a Subsidiary for Cause, or
who is discovered after termination of employment or service to have engaged in
conduct that would have justified termination for Cause. A determination of
Cause shall be made by the Board within its sole discretion.
(c) EXCEPTION FOR TERMINATIONS DUE TO DEATH OR DISABILITY. Notwithstanding
the general rule contained in Section 7.01(a) above, all Plan Shares subject to
a Plan Share Award held by a Participant whose employment or service with the
Company or a Subsidiary terminates due to death or Disability, shall be deemed
earned and nonforfeitable as of the Participant's last date of employment or
service with the Bank or a Subsidiary and shall be distributed as soon as
practicable thereafter.
(d) EXCEPTION FOR TERMINATION AFTER A CHANGE IN CONTROL. Notwithstanding
the general rule contained in Section 7.01 above, all Plan Shares subject to a
Plan Share Award held by a Participant shall be deemed to be immediately 100%
earned and non-forfeitable in the event of a Change in Control of the Company or
the Bank and shall be distributed as soon as practicable thereafter.
7.02 ACCRUAL AND PAYMENT OF DIVIDENDS. A holder of a Plan Share Award,
whether or not earned, shall also be entitled to receive compensation in an
amount equal to any cash dividends declared and paid with respect to shares of
Common Stock represented by such Plan Share Award between the date the relevant
Plan Share Award was granted to such Participant and the date the Plan Shares
are distributed. Such compensation amounts shall be paid by the Trust and
distributed to the holder of Plan Share Awards within 30 days of the respective
dividend payment date.
7.03 DISTRIBUTION OF PLAN SHARES.
(a) TIMING OF DISTRIBUTIONS: General Rule. Except as provided in
Subsections (d) and (e) below, Plan Shares shall be distributed to the
Participant or his Beneficiary, as the case may be, as soon as practicable after
they have been earned. No fractional shares shall be distributed.
Notwithstanding
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anything herein to the contrary, at the discretion of the Committee, Plan Shares
may be distributed prior to such Shares being 100% earned, provided that such
Plan Shares shall contain a restrictive legend detailing the applicable
limitations of such shares with respect to transfer and forfeiture.
(b) FORM OF DISTRIBUTION. All Plan Shares, together with any shares
representing stock dividends, shall be distributed in the form of Common Stock.
One share of Common Stock shall be given for each Plan Share earned. Payments
representing cash dividends (and earnings thereon) shall be made in cash.
Notwithstanding anything within the Plan to the contrary, upon a Change in
Control whereby substantially all of the Common Stock of the Company shall be
acquired for cash, all Plan Shares associated with Plan Share Awards, together
with any shares representing stock dividends associated with such Plan Share
Awards, shall be, at the sole discretion of the Committee, distributed as of the
effective date of such Change in Control, or as soon as administratively
feasible thereafter, in the form of cash equal to the consideration received in
exchange for such Common Stock represented by such Plan Shares.
(c) WITHHOLDING. The Trustee may withhold from any payment or distribution
made under this Plan sufficient amounts of cash or shares of Common Stock
necessary to cover any applicable withholding and employment taxes, and if the
amount of such payment or distribution is not sufficient, the Trustee may
require the Participant or Beneficiary to pay to the Trustee the amount required
to be withheld in taxes as a condition of delivering the Plan Shares. The
Trustee shall pay over to the Bank or a Subsidiary which employs or employed
such Participant any such amount withheld from or paid by the Participant or
Beneficiary.
(d) TIMING: EXCEPTION FOR 10% SHAREHOLDERS. Notwithstanding Subsection (a)
above, no Plan Shares may be distributed prior to the date which is five years
from the effective date of the Conversion to the extent the Participant or
Beneficiary, as the case may be, would after receipt of such Shares own in
excess of ten percent (10%) of the issued and outstanding shares of Common
Stock, unless such action is approved in advance by a majority vote of
disinterested directors of the Board of the Company. Any Plan Shares remaining
undistributed solely by reason of the operation of this Subsection (d) shall be
distributed to the Participant or his Beneficiary on the date which is five
years from the effective date of the Conversion.
(e) REGULATORY EXCEPTIONS. No Plan Shares shall be distributed, however,
unless and until all of the requirements of all applicable law and regulation
shall have been fully complied with, including the receipt of approval of the
Plan by the stockholders of the Company by such vote, if any, as may be required
by applicable law and regulations.
7.04 VOTING OF PLAN SHARES. After a Plan Share Award has become earned and
non-forfeitable, the Participant shall be entitled to direct the Trustee as to
the voting of the Plan Shares which are associated with the Plan Share Award and
which have not yet been distributed pursuant to Section 7.03, subject to rules
and procedures adopted by the Committee for this purpose. All shares of Common
Stock held by the Trust as to which Participants are not entitled to direct, or
have not directed, the voting of such Shares, shall be voted by the Trustee as
directed by the Committee.
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ARTICLE VIII
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TRUST
8.01 TRUST. The Trustee shall receive, hold, administer, invest and make
distributions and disbursements from the Trust in accordance with the provisions
of the Plan and Trust and the applicable directions, rules, regulations,
procedures and policies established by the Committee pursuant to the Plan.
8.02 MANAGEMENT OF TRUST. It is the intention of this Plan and Trust that
the Trustee shall have complete authority and discretion with respect to the
management, control and investment of the Trust, and that the Trustee shall
invest all assets of the Trust, except those attributable to cash dividends paid
with respect to Plan Shares not held in the Plan Share Reserve, in Common Stock
to the fullest extent practicable, except to the extent that the Trustee
determines that the holding of monies in cash or cash equivalents is necessary
to meet the obligations of the Trust. In performing their duties, the Trustees
shall have the power to do all things and execute such instruments as may be
deemed necessary or proper, including the following powers:
(a) To invest up to one hundred percent (100%) of all Trust assets in the
Common Stock without regard to any law now or hereafter in force limiting
investments for Trustees or other fiduciaries. The investment authorized
herein may constitute the only investment of the Trust, and in making such
investment, the Trustee is authorized to purchase Common Stock from the
Company or from any other source, and such Common Stock so purchased may be
outstanding, newly issued, or treasury shares.
(b) To invest any Trust assets not otherwise invested in accordance with
(a) above in such deposit accounts, and certificates of deposit (including
those issued by the Bank), obligations of the United States government or
its agencies or such other investments as shall be considered the
equivalent of cash.
(c) To sell, exchange or otherwise dispose of any property at any time held
or acquired by the Trust.
(d) To cause stocks, bonds or other securities to be registered in the name
of a nominee, without the addition of words indicating that such security
is an asset of the Trust (but accurate records shall be maintained showing
that such security is an asset of the Trust).
(e) To hold cash without interest in such amounts as may be in the opinion
of the Trustee reasonable for the proper operation of the Plan and Trust.
(f) To employ brokers, agents, custodians, consultants and accountants.
(g) To hire counsel to render advice with respect to their rights, duties
and obligations hereunder, and such other legal services or representation
as they may deem desirable.
(h) To hold funds and securities representing the amounts to be distributed
to a Participant or his Beneficiary as a consequence of a dispute as to the
disposition thereof, whether in a segregated account or held in common with
other assets.
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(i) As may be directed by the Committee or the Board from time to time, the
Trustee shall pay to the Bank the earnings of the Trust attributable to the
Plan Share Reserve.
Notwithstanding anything herein contained to the contrary, the Trustee
shall not be required to make any inventory, appraisal or settlement or report
to any court, or to secure any order of a court for the exercise of any power
herein contained, or to maintain bond.
8.03 RECORDS AND ACCOUNTS. The Trustee shall maintain accurate and detailed
records and accounts of all transactions of the Trust, which shall be available
at all reasonable times for inspection by any legally entitled person or entity
to the extent required by applicable law, or any other person determined by the
Committee.
8.04 EARNINGS. All earnings, gains and losses with respect to Trust assets
shall be allocated in accordance with a reasonable procedure adopted by the
Committee, to bookkeeping accounts for Participants or to the general account of
the Trust, depending on the nature and allocation of the assets generating such
earnings, gains and losses. In particular, any earnings on cash dividends
received with respect to shares of Common Stock shall be allocated to accounts
for Participants, except to the extent that such cash dividends are distributed
to Participants, if such shares are the subject of outstanding Plan Share
Awards, or, otherwise to the Plan Share Reserve.
8.05 EXPENSES. All costs and expenses incurred in the operation and
administration of this Plan, including those incurred by the Trustee, shall be
paid by the Bank.
8.06 INDEMNIFICATION. Subject to the requirements and limitations of
applicable laws and regulations, the Company and the Bank shall indemnify,
defend and hold the Trustee harmless against all claims, expenses and
liabilities arising out of or related to the exercise of the Trustee's powers
and the discharge of their duties hereunder, unless the same shall be due to
their gross negligence or willful misconduct.
ARTICLE IX
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MISCELLANEOUS
9.01 ADJUSTMENTS FOR CAPITAL CHANGES. The aggregate number of Plan Shares
available for issuance pursuant to the Plan Share Awards and the number of
Shares to which any Plan Share Award relates shall be proportionately adjusted
for any increase or decrease in the total number of outstanding shares of Common
Stock issued subsequent to the effective date of the Plan resulting from any
split, subdivision or consolidation of the Common Stock or other capital
adjustment, change or exchange of the Common Stock, or other increase or
decrease in the number or kind of shares effected without receipt or payment of
consideration by the Company.
9.02 AMENDMENT AND TERMINATION OF THE PLAN. The Board may, by resolution,
at any time, amend or terminate the Plan. The power to amend or terminate the
Plan shall include the power to direct the Trustee to return to the Company all
or any part of the assets of the Trust, including shares of Common Stock held in
the Plan Share Reserve, as well as shares of Common Stock and other assets
subject to Plan Share Awards which have not yet been earned by the Participants
to whom they have been awarded. However, the termination of the Trust shall not
affect a Participant's right to earn Plan Share Awards and to the distribution
of Common Stock relating thereto, including earnings thereon, in accordance with
the terms of this Plan and the grant by the Committee or the Board.
Notwithstanding the foregoing, no action
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of the Board may increase (other than as provided in Section 9.01 hereof) the
maximum number of Plan Shares permitted to be awarded under the Plan as
specified at Section 5.03, materially increase the benefits accruing to
Participants under the Plan or materially modify the requirements for
eligibility for participation in the Plan unless such action of the Board shall
be subject to ratification by the stockholders of the Company.
9.03 NONTRANSFERABLE. Plan Share Awards and rights to Plan Shares shall not
be transferable by a Participant, and during the lifetime of the Participant,
Plan Shares may only be earned by and paid to the Participant who was notified
in writing of the Award by the Committee pursuant to Section 6.03. No
Participant or Beneficiary shall have any right in or claim to any assets of the
Plan or Trust, nor shall the Company, the Bank or any Subsidiary be subject to
any claim for benefits hereunder.
9.04 NO EMPLOYMENT RIGHTS. Neither the Plan nor any grant of a Plan Share
Award or Plan Shares hereunder nor any action taken by the Trustee, the
Committee or the Board in connection with the Plan shall create any right,
either express or implied, on the part of any Participant to continue in the
employ or service of the Company, the Bank or a Subsidiary thereof.
9.05 VOTING AND DIVIDEND RIGHTS. No Participant shall have any voting or
dividend rights of a stockholder with respect to any Plan Shares covered by a
Plan Share Award, except as expressly provided in Sections 7.02 and 7.04 above,
prior to the time said Plan Shares are actually distributed to such Participant.
9.06 GOVERNING LAW. The Plan and Trust shall be governed by and construed
under the laws of the State of Kentucky, except to the extent that Federal Law
shall be deemed applicable.
9.07 EFFECTIVE DATE. The Plan shall be effective as of the date of approval
of the Plan by a majority vote of the shares of Common Stock present in person
or by proxy and entitled to vote at a meeting of stockholders of the Company.
9.08 TERM OF PLAN. This Plan shall remain in effect until the earlier of
(i) termination by the Board, (ii) the distribution of all assets of the Trust,
or (iii) 21 years from the Effective Date. Termination of the Plan shall not
effect any Plan Share Awards previously granted, and such Plan Share Awards
shall remain valid and in effect until they have been earned and paid, or by
their terms expire or are forfeited.
9.09 TAX STATUS OF TRUST. It is intended that the Trust established hereby
shall be treated as a grantor trust of the Bank under the provisions of Section
671 et seq. of the Internal Revenue Code of 1986, as amended, as the same may be
amended from time to time.
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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed by its duly authorized officers and the corporate seal to be affixed
and duly attested, all on this 19th day of May 2005.
ATTEST: Community First Bank
/s/ Xxxxxxx X. Xxxxxxx By: /s/ Xxxxxxx X. Xxxxx
------------------------------------- ----------------------------------
Its Secretary
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IN WITNESS WHEREOF, the following members of the Restricted Stock Plan
Trust Committee ("Trustee") execute this Agreement, in their individual
capacities, as Trustee, accepting and binding themselves to undertake and
perform the obligations and duties of the Trustee hereunder and consenting to
the foregoing Plan and Trust Agreement this 19th day of May 2005.
By: /s/ Xxxxxx X. Xxxxxx (Member)
------------------------------------
Xxxxxx X. Xxxxxx
By: /s/ J. Xxxxx Xxxxxx (Member)
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J. Xxxxx Xxxxxx
By: /s/ Xxxxx X. Xxxxxx (Member)
------------------------------------
Xxxxx X. Xxxxxx
By: /s/ Xxxxxxx X. Xxxxxx (Member)
------------------------------------
Xxxxxxx X. Xxxxxx
By: /s/ Xxxx X. Xxxxxx (Member)
------------------------------------
Xxxx X. Xxxxxx
By: /s/ Xxxxxxxxx X. Xxxxxxx (Member)
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Xxxxxxxxx X. Xxxxxxx
By: /s/ C. Xxxxx Xxxxxx (Member)
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C. Xxxxx Xxxxxx
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