EXHIBIT 10.1
JUNE 15, 2004 [FIRST STATE BANK LOGO]
FIRST STATE BANK
Xx. Xxxxxx X. Xxxxxx, Chairman of the Board Xxxxx X. Xxxxxxxx
First State Bank President & CEO
(000) 000-0000 Direct
(000) 000-0000 Cell
Dear Xxx,
At your direction, I am writing this letter to confirm our agreement regarding
some elements of my compensation.
STOCK OPTIONS
I currently have options to purchase 30,000 shares of First State Financial
Corporation common stock at $5.25. These options vest evenly over a five-year
period at 6,000 shares a year, or at such time there is a change of control,
whichever comes first. As of this writing, I am presently vested in 12,000
shares, with an additional 6,000 shares vested by December 31, 2004.
PERFORMANCE BONUS
The profit plan for the year ended December 31, 2004 calls for after tax
earnings of $1.5 million and an ending asset level of $250 million. Should the
bank achieve this level of assets and create this level of profitability, I will
have earned a performance bonus of 30% of my base earnings. Should the bank grow
more than the plan, or earn more than the plan, I will earn a larger bonus. The
amount of this bonus will be at the discretion of the Chairman of the Board,
however, the bonus will be paid before the end of the month following the end of
the year.
I trust this letter is in agreement with your understanding. If that is the
case, please execute the original and copy of this letter and send back to me.
Sincerely, ACCEPTED BY:
/s/ Xxxxx X. Xxxxxxxx /s/ Xxxxxx X. Xxxxxx
--------------------------------- ----------------------------
Xxxxx X. Xxxxxxxx Xxxxxx X. Xxxxxx, Chairman
President and CEO First State Bank
First State Financial Corporation
First State Bank
TWWright06-15-2004
EXECUTIVE OFFICE:
00 0, Xxxxx Xxxxxx, Xxxxxxxx, XX 00000
(000) 000-0000 (000) 000-0000 FAX
[MEMBER FDIC LOGO]
