Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 878

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 2
Chunk 878
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 certain severance benefits upon termination, as described below under “Potential Payments Upon Termination or Change
in Control.” If within 12 months following a change in control the Bank terminates Mr. Webster without cause or Mr. Webster terminates
his employment for good reason, Mr. Webster will be entitled to severance equal to the sum of Mr. Webster’s then
current base salary plus the average of his last two years’ bonuses multiplied by two, plus any bonuses awarded for previous years
but which have not been paid.

Finally, during his
employment and for a period of 12 months thereafter (other than a termination within one year following a change in control), Mr. Webster
may not, subject to limited exceptions, (i) compete with us by forming, serving as an organizer, director, or officer of, or consultant
to, or acquiring or maintaining more than a 1% passive investment in, a depository financial institution or holding company of a depository
financial institution, if the depository institution or holding company has one or more offices or branches within our territory, (ii)
solicit our customers for a competing business, or (iii) solicit our employees for a competing business.

129

Employment
Agreement with Paul Tees

The Bank has entered
into an employment agreement (the “Tees employment agreement”) with Mr. Tees. Mr. Tees has agreed to serve as the Executive
Vice President and Chief Credit Officer of the Bank for a term beginning May 1, 2024, and ending April 30, 2025, that may be extended
for additional one-year periods upon each anniversary of the agreement. Mr. Tees’ initial base salary will be $247,500. In addition
to his base salary, Mr. Tees will be entitled to receive cash bonuses equaling up to 40% of his annual base salary if Mr. Tees achieves
certain performance levels established from time to time by the board of directors or its authorized designee.

The Tees employment
agreement provides that Mr. Tees will be reimbursed for reasonable and necessary travel, mobile cellular and data plans, and other business
expenses. Mr. Tees will participate in the Bank’s retirement, welfare, health, and other benefit programs. Mr. Tees will be prohibited
from disclosing our trade secrets or confidential information.

The Tees employment
agreement provides that, if the Bank terminates