Document:

EXHIBIT 4.0

	
  

 	
  

 
	
 COMMON STOCK

 	
  

 
	
 CERTIFICATE
 NO

 	
 COMMON STOCK

 
	
  

 	
 ____________ SHARES

 
	
  

 	
 See reverse side for certain definitions

 
	
  

 	
 CUSIP NO. _________

 
	
  

 	
  

 

AUBURN BANCORP, INC.

INCORPORATED UNDER THE LAWS OF THE UNITED STATES

THIS CERTIFIES
THAT:

[SPECIMEN]

is the owner
of:

FULLY PAID AND NONASSESSABLE SHARE OF COMMON
STOCK $0.01 PAR VALUE

PER SHARE OF AUBURN BANCORP, INC.

          The
Shares represented by this certificate are transferable only on the stock
transfer books of Auburn Bancorp, Inc. (the “Company”) by the holder of record
hereof, or by his duly authorized attorney or legal representative, upon the
surrender of this certificate properly endorsed. This certificate and the
shares represented hereby are issued and shall be held subject to all the provisions
of the Charter of the Company and any amendments thereto (copies of which are
on file with the Corporate Secretary of the Company), to all of which
provisions the holder by acceptance hereof, assents. This certificate is not
valid until countersigned and registered by the Corporation’s Transfer Agent
and Registrar.

          The
shares are not a deposit account and are not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.

          IN
WITNESS WHEREOF, AUBURN BANCORP, INC. has caused this
certificate to be executed by the signatures of its duly authorized officers
and has caused its corporate seal to be hereunto affixed.

	
  

 	
  

 	
  

 
	
 Dated:

 	
 [SEAL]

 	
  

 
	
  

 	
  

 	
  

 
	
      SIGNATURE
 TO COME

 	
 SIGNATURE TO
 COME

 
	
  

 	
  

 	
  

 
	
      Secretary

 	
 President
 and Chief Executive Officer

 

          The
shares represented by this Certificate are subject to a limitation contained in
the Charter generally to the effect that for a period of five years from the date of the initial issuance of securities in no
event shall any person, other that Auburn Bancorp, MHC, directly or indirectly,
offer to acquire or acquire the beneficial ownership of more than 10% of the
outstanding shares of common stock. Shares beneficially owned in excess of this
limitation shall not be counted as shares entitled to vote and shall not
be voted by any person or counted as voting shares.

          The
Board of Directors of the Company is authorized by resolution(s), from time to
time adopted, to provide for the issuance of serial preferred stock
series and to fix and state the voting powers, designations, preferences and
relative, participating, optional, or other special rights of the shares of
each such series and the qualifications, limitations and restrictions thereof.
The Company will furnish to any shareholder upon request and without charge a full description of each class of stock
and any series thereof.

          The
shares represented by this Certificate may not be cumulatively voted on any
matter.

          The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out on full
according to applicable laws or regulations:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TEN COM -

	
 

	
as tenants in common

	
 

	
UNIF GIFTS MIN ACT -  

	
________

	
 

	
 custodian   __________________

	
 

	
 

	
 

	
 

	
 

	
(Cust)

	
 

	
 

	
(Minor)

	
TEN ENT -

	
 

	
as tenants in entireties

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
under Uniform Gifts to Minors Act

	
JT TEN -

	
 

	
as joint tenants with right of survivorship and not as tenants in common

	
 

	
 

	
________________________________________

	
 

	
 

	
 

	
 

	
(State)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
UNIF TRF MIN ACT -  

	
________

	
 

	
custodian (until age ______ )

	
 

	
 

	
 

	
 

	
 

	
(Cust)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
under Uniform Transfers to Minors Act

	
 

	
 

	
 

	
 

	
 

	
________________________________________

	
 

	
 

	
 

	
 

	
 

	
(State)

	
 

	
Additional
  abbreviations may also be used though not in the above list.

	
 

	
For value received _______________________________________ hereby sell, assign and transfer unto 

	
 

	
 

	
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFICATION NUMBER IF
  ASSIGNEE

	
 

	
 

	
 

	
 

	 

	
Please print or typewrite name and address including
  postal zip code of assignee.

	
 

	
 

	
___________________________________________________________________________________ shares
of the common stock represented by this
certificate and do hereby irrevocable constitute and appoint __________________________________________________________________,
attorney, to transfer the said stock on the books of the within-named
corporation with full power of substitution in the premises. 

	
 

	
DATED
______________________ 

	
 

	
 

	 

	
 

	
NOTICE:
  The signature to this assignment must correspond with the name as written upon the face
  of the certificate in every particular without alteration or enlargement or any change whatever.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
SIGNATURE GUARANTEED:

	
THE SIGNATURE(S) SHOULD BE
  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION, (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS
  WITH MEMBERSHIP IN AN APPROVED
  SIGNATURE GUARANTEE MEDALLION PROGRAMS), PURSUANT TO S.E.C. RULE
  17Ad-15

KEEP THIS
  CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR DESTROYED,
  THE COMPANY WILL REQUIRE
  A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT
  CERTIFICATE.EXHIBIT
10.3

AUBURN
SAVINGS BANK, FSB 

EMPLOYMENT AGREEMENT

          THIS
AGREEMENT (the “Agreement”), is made this ____ day of _________, 2008, by
and between AUBURN SAVINGS BANK, FSB, a federally chartered savings bank
(the “Bank”), and Allen T. Sterling (“Executive”). 

          WHEREAS,
Executive serves in a position of substantial responsibility; and 

          WHEREAS,
the Bank wishes to assure Executive’s services for the term of this Agreement;
and 

          WHEREAS,
Executive is willing to serve in the employ of the Bank during the term of this
Agreement. 

          NOW,
THEREFORE, in consideration of the mutual covenants contained in this
Agreement, and upon the other terms and conditions provided for in this
Agreement, the parties hereby agree as follows: 

          1.
Employment. The Bank will employ Executive as its President and
Chief Executive Officer and, as such, Executive will be responsible for the
overall management of the Bank, including responsibility for establishing the
business objectives, policies and strategic plan of the Bank in conjunction
with the Board of Directors of the Bank (the “Board”).  Executive shall also have all additional
powers commonly incident to his position, or which, consistent with his
position, the Board delegates to Executive. Executive also agrees to serve, if
elected, as a director of the Bank and as an officer and/or director of any
subsidiary or affiliate of the Bank and to carry out the duties and
responsibilities reasonably appropriate to those offices. 

          2.  Location.  Executive shall be principally located at
the principal administrative offices of the Bank, which are currently located
at 325 Sabattus Street, Lewiston, Maine.

          3.  Term. 

                    (a)     The
term of this Agreement shall include: (i) the initial term, consisting of the
period commencing on the date of this Agreement (the “Effective Date”) and
ending on the second anniversary of the Effective Date, plus (ii) any and all
extensions of the initial term made pursuant to this Section 3.

                    (b)     During
the 30-day period concluding on each anniversary of the Effective Date, the
disinterested members of the Board may extend the Agreement term for an
additional year, so that the remaining term of the Agreement again becomes
twenty-four (24) months, unless Executive elects not to extend the term of this
Agreement by giving written notice in accordance with Section 17 of this
Agreement.

          4.  Base Compensation. 

                    (a)     For
his services as President and Chief Executive Officer, the Bank agrees to pay
Executive an annual base salary at the rate of $103,700 per year, payable in
accordance with the Bank’s standard payroll policies and practices for officers
of the Bank.  Executive will receive no
additional compensation for his service as a director of the Bank or as an
officer and/or director of any subsidiary or affiliate of the Bank.

                    (b)     During
the term of this Agreement, the Board will review the level of Executive’s base
salary at least annually, based upon factors deemed relevant to the Board in
its sole discretion, in order to determine Executive’s base salary through the
remaining term of the Agreement.

          5.  Bonuses. Executive will participate
in discretionary bonuses or other incentive compensation programs that the Bank
may sponsor for or award from time to time to senior management employees. 

          6.  Benefit Plans. Executive will
participate in life insurance, medical, dental, pension, profit sharing,
retirement and stock-based compensation plans and other programs and
arrangements that the Bank may sponsor or maintain for the benefit of its
employees. 

          7.
Vacations and Leave.
Executive may take vacations and other leave in accordance with the
Bank’s policy for senior executives, or otherwise as approved by the Board.

          8.  Expense Payments and Reimbursements.
The Bank will reimburse Executive for all reasonable out-of-pocket business
expenses incurred in connection with his services under this Agreement upon
substantiation of such expenses and in accordance with applicable policies of
the Bank. 

          9.
Loyalty and Confidentiality. 

                    (a)     During
the term of this Agreement, Executive will devote all his business time,
attention, skill, and efforts to the faithful performance of his duties under
this Agreement; provided, however, that from time to time, Executive may serve
on the boards of directors of, and hold any other offices or positions in,
companies or organizations that will not present any conflict of interest with
the Bank or any of its subsidiaries or affiliates, unfavorably affect the
performance of Executive’s duties pursuant to this Agreement, or violate any
applicable statute or regulation. Executive will not engage in any business or
activity contrary to the business affairs or interests of the Bank or any of
its subsidiaries or affiliates.

                    (b)     The
Executive understands and agrees that the Executive’s employment creates a
relationship of confidence and trust between the Executive, on the one hand,
and the Bank, on the other hand, with respect to all Confidential Information
(as defined in Section 9(c) below).  At
all times, both during the period of the Executive’s employment by the Bank and
after the termination of the Executive’s employment, the Executive shall keep
in confidence and trust all such Confidential Information and, except as
required by law, shall not use or disclose any such Confidential Information
other than for the benefit of the Bank without the written consent of the Bank.

                    (c)     “Confidential
Information” means information belonging to the Bank or its affiliates that is
of value to the Bank or its affiliates in the course of conducting their
business and the disclosure of which could result in a competitive or other
disadvantage to any of them.
Confidential Information includes, without limitation, financial
information, reports, and forecasts; inventions, improvements and other
intellectual property; trade secrets; know-how; designs, processes or formulae;
software; market or sales information or plans; customer lists; and business
plans, prospects and opportunities (such as possible acquisitions or
dispositions of businesses or facilities) that have been discussed or
considered by the management of the Bank or its affiliates.  Confidential Information includes
information developed by the Executive in the course of the Executive’s
employment by the Bank, as well as other information to which the Executive may
have access in connection with the Executive’s employment.  Confidential Information also includes the
confidential information of others, including suppliers and customers, with
which the Employer has a business relationship.

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Notwithstanding the foregoing,
Confidential Information does not include information in the public domain,
unless due to breach of the Executive’s duties under Section 9(b).

          10.
Termination and Termination Pay. Subject to Section 11 of this
Agreement, Executive’s employment under this Agreement may be terminated in the
following circumstances: 

                    (a)     Death.
Executive’s employment under this Agreement will terminate upon his death
during the term of this Agreement, in which event Executive’s estate will
receive the base compensation and any accrued and unpaid bonus due to Executive
through the date of death.  No further
compensation or benefits shall be provided in the event of a termination under
this Section 10(a), except to the extent required by law or under the terms of
Company’s benefit plans or programs.

                    (b)     Disability.
 Executive’s employment under this Agreement
will terminate upon Executive’s Disability upon 30 days’ written notice by the
Bank.  For purposes of this Agreement,
“Disability” shall be defined as any mental or physical condition that, with or
without reasonable accommodation, prevents Executive from performing his duties
for a period of twenty consecutive weeks, or for shorter periods aggregating
twenty weeks in any twelve (12) month period during the Term.  No further compensation or benefits shall be
provided in the event of a termination under this Section 10(b), except to the
extent required by law or under the terms of Company’s benefit plans or
programs.

                    (c)     Termination
for Cause.

                              (i)     The
Company may terminate this Agreement, immediately upon written notice to
Executive, for Cause.  In the event of a
termination for Cause, Executive shall only be entitled to such base
compensation as may have been earned and unpaid through the date of termination
and no further compensation or benefits shall be provided, except to the extent
required by law or under the express terms of Bank’s other benefit plans or
programs. 

                              
(ii)     
For purposes of this Agreement,
“Cause” shall mean Executive’s: (1) willful misconduct or gross negligence
in connection with the performance of his duties or his employment with the Bank; (2)
conviction of or entering a plea of nolo contendere to a crime that constitutes a
felony under applicable law (or the conclusive establishment of facts or circumstances
upon which such a conviction may reasonably be based); (3) material breach of this
Agreement, including, without limitation, any breach of Section 9 or Section 10(f) of this
Agreement; (4) failure to perform significant duties conferred on Executive under this
Agreement in a reasonable and good faith manner or failure by the Executive to comply in
any material respect with the Bank’s written policies or rules, in either case after
a reasonable opportunity to cure (not to exceed thirty (30) days) the failure has been
provided (if curable); (5) knowingly engaging in conduct that is in breach of
Executive’s fiduciary duties or duties of loyalty owed to the Bank; or (6) conduct
that, in the Bank’s reasonable opinion, constitutes engagement of unlawful or
disreputable conduct, whether or not it constitutes a crime, that is injurious in any
material respect or may reasonably be expected to be injurious in any material respect to
the business interests of the Bank, after a reasonable opportunity to cure (not to exceed
thirty (30) days) the conduct and any injurious results thereof has been provided (if
curable). 

                    (d)     Voluntary
Termination by Executive. Executive may voluntarily terminate employment
during the term of this Agreement upon at least sixty (60) days prior written
notice to the Board. Upon Executive’s voluntary termination, he will receive
only his compensation and vested rights and benefits through the date of his
termination. Following termination pursuant to this Section 10(d), Executive
will be subject to the restrictions set forth in Section 10(f) of this
Agreement for a period of one (1) year from his termination date.

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                    (e)     Without
Cause or With Good Reason.

                              (i)     In
addition to termination pursuant to Sections 10(a) through 10(d), the Bank may,
by written notice to Executive, immediately terminate his employment at any
time for a reason other than Cause (a termination “Without Cause”) and
Executive may, by written notice to the Board, immediately terminate this
Agreement at any time within ninety (90) days following an event constituting
“Good Reason,” as defined below (a termination “With Good Reason”).

                              (ii)     Subject
to Section 11 of this Agreement, in the event of termination Without Cause or
With Good Reason, Executive will receive his base salary as of one (1) year
from the date of termination, with such amount paid in one lump sum within ten
(10) calendar days of his termination. Executive will also continue to
participate in any benefit plans of the Bank (subject to the terms and
conditions of such plans) that provide medical, dental and life insurance
coverage for the twelve (12) calendar months following such termination.

                              (iii)     For
purposes of this Agreement, “Good Reason” exists if, without Executive’s
express written consent, any of the following occur: 

                                        (1)     a
material reduction in Executive’s responsibilities or authority in connection
with his employment with the Bank;

                                        (2)     assignment
to Executive of duties of a non-executive nature or duties for which he is not
reasonably equipped by his skills and experience;

                                        (3)     a
reduction in salary or benefits contrary to the terms of this Agreement, or,
following a Change in Control as defined in Section 11 of this Agreement, any
reduction in salary or material reduction in benefits below the amounts
Executive was entitled to receive prior to the Change in Control;

                                        (4)     termination
of incentive and benefit plans, programs or arrangements, or reduction of
Executive’s participation, that is not applicable to other similarly situated
participants and to such an extent as to materially reduce their aggregate
value below their aggregate value as of the Effective Date;

                                        (6)     a
requirement that Executive relocate his principal business office or his
principal place of residence outside of the area consisting of a thirty-five
(35) mile radius from the current main office and any branch of the Bank, or
the assignment to Executive of duties that would reasonably require such a relocation;
or

                                        
(7)     liquidation or dissolution of the Bank.

                              (iv)     Notwithstanding
the foregoing, a reduction or elimination of Executive’s benefits under one or
more benefit plans, programs or arrangements maintained by the Bank as part of
a good faith, overall reduction or elimination of such plans or benefits,
applicable to all participants in a manner that does not discriminate against
Executive (except as such discrimination may be necessary to comply with law),
will not constitute an event of Good Reason or a material breach of this
Agreement, provided that benefits of the same type or to the same general
extent as those offered under such plans prior to the reduction or elimination
are not available to other officers of the Bank or any affiliate under a plan
or plans in or under which Executive is not entitled to participate.

                              
(v)     Notwithstanding anything to the contrary
contained in this Agreement, in order to be eligible for payment of the
severance benefits set forth in this Section 10(e), Executive must

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first within the ten (10) day
period following termination (1) execute and deliver to the Bank a general
release and waiver of claims in a form reasonably satisfactory to the Bank, be
and remain in full compliance with all obligations under this Agreement, and
agree to cooperate reasonably with the Bank at the Bank’s sole expense and upon
the Bank’s reasonable request for a period of twelve (12) months following the
termination, and (2) resign from any and all positions, including, without
limitation, as a director or officer, that the Executive then holds with the
Bank, any affiliate of the Bank, or any benefit plan of the Bank or any of its
affiliates.

                              (f)     Continuing
Covenant Not to Compete or Interfere with Relationships. Notwithstanding
anything to the contrary contained in this Agreement, during the term of this
Agreement and following a termination by the Bank or Executive pursuant to
Section 10(d) or 10(e):

                                        (i)     Executive’s
obligations under Section 9(b) of this Agreement will continue in effect; and

                                        
(ii)     during the period ending on the first
anniversary of the termination, Executive will not serve as an officer,
director or employee of or consultant to any bank holding company, bank,
savings association, savings and loan holding company, mortgage company, credit
union or other financial institution that both (1) offers products or services
competing with those offered by the Bank and (2) has one or more offices or
branches located within thirty-five (35) miles from the main office or
any branch of the Bank and, further, Executive will not interfere in any way
with the relationship of the Bank, its subsidiaries or affiliates and any of
their employees, agents, or representatives.

                                        
(iii)     during the period ending on the first
anniversary of such termination, Executive (1) shall not, directly or
indirectly, recruit or otherwise solicit, induce or influence any person to
leave employment with the Bank (other than terminations of employment of
subordinate employees undertaken in the course of Executive’s employment with
the Bank) and (2) shall not solicit or encourage any customer or supplier to
terminate or otherwise modify adversely its business relationship with the Bank
other than actions taken by Executive in good faith in the ordinary course of
business during the course of Executive’s employment with the Bank.  Nothing contained in this Section 10(f)(iii)
shall restrict Executive from advertising employment opportunities to the
general public or from hiring individuals who have not been directly or
indirectly solicited, induced or influenced by Executive to leave employment
with the Bank.

                              (g)     To
the extent Executive is a member of the Board on the date of termination of
employment with the Bank, Executive will resign from the Board immediately
following such termination of employment with the Bank. Executive will be
obligated to tender this resignation regardless of the method or manner of
termination, and such resignation will not be conditioned upon any event or
payment.  Executive acknowledges that
termination of his employment shall constitute cause for removal of his
position on the Board by either the other members of the Board or the
stockholders of the Bank.

          11.  Termination in Connection with a Change
in Control. 

                              (a)     For
purposes of this Agreement, a “Change in Control” means any of the following
events:

                                        (i)     Merger:
Auburn Bancorp, Inc. (the “Company”) merges into or consolidates with another
entity, or merges another corporation into the Company, and as a result, less
than a majority of the combined voting power of the resulting corporation
immediately after the merger or

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consolidation is held by persons
who were stockholders of the Company immediately before the merger or
consolidation;

                                        (ii)     Acquisition
of Significant Share Ownership: There is filed, or is required to be filed,
a report on Schedule 13D or another form or schedule (other than Schedule 13G)
required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934,
as amended, if the schedule discloses that the filing person or persons acting
in concert has or have become the beneficial owner of 25% or more of a class of
the Company’s voting securities, but this clause (ii) shall not apply to
beneficial ownership of Company voting shares by Auburn Bancorp, MHC or held in
a fiduciary capacity by an entity of which the Company directly or indirectly
beneficially owns 50% or more of its outstanding voting securities;

                                        
(iii)     Change in Board Composition: During
any period of two consecutive years, individuals who constitute the Company’s
Board of Directors at the beginning of the two-year period cease for any reason
to constitute at least a majority of the Company’s Board of Directors;
provided, however, that for purposes of this clause (iii), each director who is
first elected by the board (or first nominated by the board for election by the
members) by a vote of at least two-thirds (2/3) of the directors who were
directors at the beginning of the two-year period shall be deemed to have also
been a director at the beginning of such period; or

                                        
(iv)     Sale of Assets: The Company or the
Bank sells to a third party all or substantially all of its assets.

Notwithstanding anything in this
Agreement to the contrary, in no event shall the conversion of the Bank’s
mutual holding company parent, Auburn Bancorp, MHC, from mutual to stock form,
i.e., a “second step conversion,” constitute a “Change in Control” for purposes
of this Agreement.

                              (b)     Termination.
If within the period ending one year after a Change in Control, (i) the Bank
terminates Executive’s employment without Cause, or (ii) Executive voluntarily
terminates his employment With Good Reason, the Bank will, within ten (10)
calendar days of the termination of Executive’s employment, make a lump-sum
cash payment to him equal to two times Executive’s average annual taxable
compensation (as reported on Form W-2) over the five (5) most recently
completed calendar years (or years of employment, annualized for partial years
of employment, if less than five), ending with the year immediately preceding
the effective date of the Change in Control. The cash payment made under this
Section 11(b) shall be made in lieu of any payment also required under Section
10(e) of this Agreement because of Executive’s termination of employment;
however, Executive’s rights under Section 10(e) are not otherwise affected by
this Section 11. Following termination of employment, Executive will also
continue to participate in any benefit plans of the Bank (subject to the terms
and conditions of such plans) that provide medical, dental and life insurance
coverage until the earlier of: (i) Executive’s death; (ii) Executive’s
employment by another employer other than one of which he is the majority
owner; or (iii) twenty-four (24) months after his termination of employment.

          12.  Reimbursement of Executive’s Expenses to
Enforce this Agreement. The Bank will reimburse Executive for all
out-of-pocket expenses, including, without limitation, reasonable attorneys’
fees, incurred by Executive in connection with his successful enforcement of
the Bank’s obligations under this Agreement. Successful enforcement means the
grant of an award of money or the requirement that the Bank take some specified
action: (i) as a result of court order; or (ii) otherwise following an initial
failure of the Bank to pay money or take action promptly following receipt of a
written demand from Executive stating the reason that the Bank must make
payment or take action under this Agreement. 

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          13.  Limitation of Benefits Under Certain
Circumstances. Notwithstanding any other provision of this Agreement,
in the event that it is determined by the Bank in its reasonable discretion
that the payments and benefits pursuant to Section 11 of this Agreement, either
alone or together with other payments and benefits Executive has the right to
receive from the Bank, would constitute a “parachute payment” under Section
280G of the Internal Revenue Code of 1986, as amended (the “Code”), the
payments and benefits pursuant to Section 11 shall be reduced to the minimum
extent necessary to result in no portion of the payments and benefits under
Section 11 being non-deductible to the Bank pursuant to Section 280G of the
Code and subject to the excise tax imposed under Section 4999 of the Code.

          14.  Injunctive Relief. Upon a breach
or threatened breach of Section 10(f) of this Agreement or the prohibitions
upon disclosure contained in Section 9(b) of this Agreement, the parties agree
that there is no adequate remedy at law for such breach, and the Bank shall be
entitled to injunctive relief restraining Executive from such breach or
threatened breach, but such relief shall not be the exclusive remedy for a
breach of this Agreement. The parties further agree that Executive, without
limitation, may seek injunctive relief to enforce the obligations of the Bank
under this Agreement. 

          15.  Successors and Assigns. 

                    (a)     This
Agreement shall inure to the benefit of and be binding upon any corporate or
other successor of the Bank which shall acquire, directly or indirectly, by
merger, consolidation, purchase or otherwise, all or substantially all of the
assets or stock of the Bank.

                    (b)     Since
the Bank is contracting for the unique and personal skills of Executive,
Executive shall not assign or delegate his rights or duties under this
Agreement without first obtaining the written consent of the Bank.

          16.  No Mitigation. Executive shall
not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise and no such payment shall be
offset or reduced by the amount of any compensation or benefits provided to
Executive in any subsequent employment. 

          17.  Notices. All notices, requests,
demands and other communications in connection with this Agreement shall be
made in writing and shall be deemed to have been given when delivered by hand
or 48 hours after mailing at any general or branch United States Post Office,
by registered or certified mail, postage prepaid, addressed to the Bank at its
principal business office and to Executive at his home address as maintained in
the records of the Bank. 

          18.  No Plan Created by this Agreement.
Executive and the Bank expressly declare and agree that this Agreement was
negotiated among them and that no provision or provisions of this Agreement are
intended to, or shall be deemed to, create any plan for purposes of the Employee
Retirement Income Security Act of 1974 (“ERISA”) or any other law or
regulation, and each party expressly waives any right to assert the contrary.
Any assertion in any judicial or administrative filing, hearing, or process
that an ERISA plan was created by this Agreement shall be deemed a material
breach of this Agreement by the party making the assertion. 

          19.  Amendment and Waiver. 

                    
(a)     No amendments or modifications to this
Agreement shall be binding unless made in writing and signed by all of the
parties, except as herein otherwise specifically provided. 

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                    (b)     No
term or condition of this Agreement shall be deemed to have been waived, nor
shall there be any estoppel against the enforcement of any provision of this
Agreement, except by written instrument of the party charged with such waiver
or estoppel.  No such written waiver
shall be deemed a continuing waiver unless specifically stated therein, and
each such waiver shall operate only as to the specific term or condition waived
and will not constitute a waiver or such term or condition for the future as to
any act other than that specifically waived.

          20.  Applicable Law. Except to the
extent preempted by federal law, the laws of the State of Maine shall govern
this Agreement in all respects, whether as to its validity, construction,
capacity, performance or otherwise. 

          21.  Severability. The provisions of
this Agreement shall be deemed severable and the invalidity or unenforceability
of any one provision shall not affect the validity or enforceability of the
other provisions of this Agreement. 

          22.  Headings. Headings contained in
this Agreement are for convenience of reference only. 

          23.  Entire Agreement. This Agreement,
together with any modifications subsequently agreed to in writing by the
parties, shall constitute the entire agreement among the parties with respect
to the foregoing subject matter, other than written agreements applicable to specific
plans, programs or arrangements described in Sections 5 and 6. 

          24.  Required Provisions. In the event
any of the foregoing provisions of this Agreement conflict with the terms of
this Section 24, this Section 24 shall prevail. 

                    (a)     The
Bank’s Board of Directors may terminate Executive’s employment at any time, but
any termination by the Bank, other than termination for Cause, shall not
prejudice Executive’s right to compensation or other benefits under this
Agreement. Executive shall not have the right to receive compensation or other
benefits for any period after termination for Cause as defined in Section 10(c)
of this Agreement.

                    (b)     If
Executive is suspended from office and/or temporarily prohibited from
participating in the conduct of the Bank’s affairs by a notice served under
Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
Section 1818(e)(3) or (g)(1), the Bank’s obligations under this Agreement shall
be suspended as of the date of service, unless stayed by appropriate
proceedings. If the charges in the notice are dismissed, the Bank may, in its
discretion: (i) pay Executive all or part of the compensation withheld while
its contract obligations were suspended; and (ii) reinstate (in whole or in
part) any of the obligations which were suspended.

                    (c)     If
Executive is removed and/or permanently prohibited from participating in the
conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or
8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1818(e)(4) or
(g)(1), all obligations of the Bank under this Agreement shall terminate as of
the effective date of the order, but vested rights of the contracting parties
shall not be affected.

                    (d)     
If the Bank is in default as defined in Section 3(x)(1) of the Federal Deposit
Insurance Act, 12 U.S.C. Section 1813(x)(1), all obligations under this
Agreement shall terminate as of the date of default, but this paragraph shall
not affect any vested rights of the contracting parties.

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                    (e)     All
obligations under this Agreement shall terminate, except to the extent
determined that continuation of the Agreement is necessary for the continued
operation of the institution: (i) by the Director of the Office of Thrift
Supervision (OTS), or his designee, at the time the Federal Deposit Insurance
Corporation (FDIC) enters into an agreement to provide assistance to or on
behalf of the Bank under the authority contained in Section 13(c) of the
Federal Deposit Insurance Act, 12 U.S.C. Section 1823(c), or (ii) by the
Director of the OTS (or his designee) at the time the Director (or his
designee) approves a supervisory merger to resolve problems related to the
operations of the Bank or when the Bank is determined by the Director to be in
an unsafe or unsound condition. Any rights of the parties that have already
vested, however, shall not be affected by such action.

                    (f)     Any
payments made to Executive pursuant to this Agreement, or otherwise, are
subject to and conditioned upon their compliance with 12 U.S.C. Section 1828(k)
and FDIC Regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification
Payments.

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on [ ], 2008. 

	
 

	
 

	
 

	
 

	
ATTEST:

	
 

	
AUBURN SAVINGS BANK, FSB

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	

	
 

	
 

	

	
Witness

	
 

	
 

	
For the Entire Board of Directors

	
 

	
 

	
 

	
 

	
ATTEST:

	
 

	
 

	
 

	
 

	
 

	
EXECUTIVE

	
 

	
 

	
 

	

	
 

	

	
Witness

	
 

	
Allen T. Sterling

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