Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 208

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 208
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 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 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. Tees 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.
Tees’ employment with or without cause, and Mr. Tees may terminate his employment with or without good reason. Mr. Tees is eligible
for 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. Tees without cause or Mr. Tees terminates his employment
for good reason, Mr. Tees will be entitled to sever