July 24, 2017
Mr. Mike King
2225 Brookstone Drive
Montgomery, AL 36117
To incentivize you to join and remain with and committed to the success of AuburnBank and its Mortgage Lending Division, we offer you a retention bonus upon the conditions set forth below in this agreement (this Agreement).
In consideration of the premises, and other good and valuable consideration, and intending to be legally bound, we agree as follows:
The term of this Agreement will begin on your date of hire as the Banks Senior Vice President of Mortgage Lending, and end two years later, unless terminated before that time (the Term).
In addition to your salary, you will be eligible for a retention bonus (the Retention Bonus) of $200,000. The Retention Bonus will be paid in two equal $100,000 installments. The first installment will be paid to you only if you are still employed by AuburnBank on the first anniversary of your date of hire. The second installment will be paid to you only if you are still employed by AuburnBank on the second anniversary of your date of hire. Each Retention Bonus installment will be paid to you on the next reasonable payroll cycle following the respective anniversary dates. The Retention Bonus is provided in lieu of any other bonus payable by AuburnBank, including its discretionary bonus program for AuburnBank officers (collectively, Other Bonuses). During the term of this Agreement, you will not be eligible to participate in, and waive all claims in or to, any Other Bonuses.
(a) If AuburnBank terminates your employment before the end of this Agreements Term, or you die or are permanently disabled, AuburnBank will pay you only the amount earned up to that point. For example, if AuburnBank terminates your employment 18 months from your date of hire, you will have earned the first Retention Bonus installment at the first anniversary of the date of hire; however, no fraction of a Retention Bonus installment will be paid even though you worked six months into the second year of the Term.
(b) If you are terminated for Cause at any point before the end of this Agreement, you will be obligated to reimburse AuburnBank all amounts of any Retention Bonus paid to you.