Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 877

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 2
Chunk 877
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 during a change in control
period), Mr. McMullan may not, subject to limited exceptions, compete with the Company or the Bank by forming, serving as an organizer,
director, or officer of, or consultant to, or acquiring or maintaining more than a 2% 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. In addition, during his employment and for a period of 12 months thereafter, Mr. McMullan may not, (i)
subject to limited exceptions, solicit the Bank’s customers for a competing business, or (ii) solicit the Bank’s employees
for a competing business.

Employment
Agreement with Chris Webster

The Bank has entered
into an employment agreement (the “Webster employment agreement”) with Mr. Webster. Mr. Webster has agreed to serve as the
President 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. Webster’s initial base salary will be $275,000. In addition to his base salary, Mr.
Webster will be entitled to receive cash bonuses equaling up to 40% of his annual base salary if Mr. Webster achieves certain performance
levels established from time to time by the board of directors or its authorized designee.

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

The Webster employment
agreement provides that, if the Bank terminates the executive’s employment without cause prior to a change in control or more than
12 months following a change in control, we will pay Mr. Webster on the first day of the month following the date of termination, and
thereafter on the first day of the month for the next 11 months, compensation in an amount equal to 100% of his then current monthly
base salary, plus any bonus earned or accrued through the date of termination.

We may terminate Mr.
Webster’s employment with or without cause, and Mr. Webster may terminate his employment with or without good reason. Mr. Webster
is eligible for