(Exact name of registrant as specified in its charter)
North Carolina | 000-22787 | 56-2028446 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices & zip code)
(Former Name or Former Address, if Changed Since Last Report)
(e)
On March 26, 2007, the Compensation Committee (the "Committee") of the Board of Directors of Four Oaks Fincorp, Inc. (the "Company") amended and restated the Severance Compensation Agreement dated October 10, 1994 between the Company's wholly-owned subsidiary, Four Oaks Bank & Trust Company (the "Bank"), and W. Leon Hiatt, III, the Company's Executive Vice President and Chief Administrative Officer. Prior to the amendment and restatement, the agreement provided that in the event a change in control of the Bank occurs and Mr. Hiatt's employment is terminated thereafter, he would be entitled to receive a cash severance payment equal to one and one-half (1 1/2) years' salary based upon his then most recent annual compensation and the amount of his most recent annual bonus at the time of termination. In addition, prior to the amendment and restatement, the agreement entitled Mr. Hiatt to participate in all life insurance, health, accidental death and dismemberment, and disability plans or programs ("Benefits") in which Mr. Hiatt participated immediately prior to termination for eighteen (18) months after the date of his termination or unless and until he obtained other full-time employment. To align Mr. Hiatt's severance benefits with those of the Company's other named executive officers, the Committee amended and restated the agreement to provide for a cash severance payment equal to two (2) years' salary and to extend the Benefits' coverage to twenty-four (24) months.
EX-10.1 | Amended and Restated Severance Compensation Agreement, dated as of March 26, 2007, between the Bank and W. Leon Hiatt, III |
Four Oaks FinCorp, Inc. | ||
Date: March 27, 2007 | By: | /s/ Ayden R. Lee, Jr. |
Ayden R. Lee, Jr. President & Chief Executive Officer |