MONROE BANK & TRUST
SPLIT DOLLAR AGREEMENT
THIS AGREEMENT is adopted this 1st day of July, 2003, by and between MONROE BANK & TRUST, a
state-chartered commercial bank located in Monroe, Michigan (the "Company"), and H. DOUGLAS CHAFFIN
(the "Executive"). This Agreement shall append the Split Dollar Endorsement entered into on even date herewith
or as subsequently amended, by and between the aforementioned parties.
To encourage the Executive to remain an employee of the Company, the Company is willing to divide the death
proceeds of life insurance policies on the Executive's life. The Company will pay life insurance premiums from its
The Company and the Executive agree as follows:
The following terms shall have the meanings specified:
1.1 "Insured" means the Executive.
1.2 "Insurer" means each life insurance carrier that has a Split Dollar Policy Endorsement attached to this
1.3 "Normal Retirement Age" means the Executive's 65th birthday.
1.4 "Policy" or "Policies" means the specific life insurance policy or policies issued by the Insurer.
1.5 "Termination of Employment" means the Executive ceasing to be employed by the Company for any reason
whatsoever, other than by reason of an approved leave of absence.
2.1 Company Ownership. The Company is the sole owner of the Policies and shall have the right to exercise all
incidents of ownership. The Company shall be the beneficiary of the remaining death proceeds of the Policies
after the Interest of the Executive or the Executive's transferee has been paid according to Section 2.2 below.
2.2 Executive's Interest. The Executive shall have the right to designate the beneficiary of an amount of death
proceeds equal to the "Accrual Balance" projected to be accrued at the Executive's Normal Retirement Age, as
set forth on Schedule A attached to the Monroe Bank & Trust Supplemental Executive Retiremen