Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 405

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 405
---
compensation.

The employment agreement
provides that Mr. McMullan will be reimbursed for reasonable and necessary travel, mobile cellular and data plans, and other business
expenses up to a maximum of $24,000 per year. Mr. McMullan will participate in the Bank’s retirement, welfare, health, and other
benefit programs. Mr. McMullan will be prohibited from disclosing our trade secrets or confidential information.

128

The employment
agreement provides that, if the Bank terminates Mr. McMullan’s employment without cause or Mr. McMullan terminates his employment
for good reason at any time outside the 12 months following the occurrence a change in control (a “change in control period”),
the Bank will, subject to Mr. McMullan’s execution and non-revocation of a release, pay Mr. McMullan an amount equal to 100% of
his then-current base salary in 12 equal monthly installments, plus any vested unpaid bonus earned or accrued through the date of termination.

In addition,
if the Bank terminates Mr. McMullan without cause or Mr. McMullan terminates his employment for good reason during a change in control
period, Mr. McMullan will, subject to his execution and non-revocation of a release, be entitled to severance equal to the sum of his
then-current base salary plus the average of his last two years’ cash bonuses multiplied by two, plus any vested and bonuses awarded
for previous years which have not been paid. While we believe that the amounts that could be paid to Mr. McMullan upon termination are
reasonable compensation for services, if the Bank’s independent accounting firm or independent tax counsel were to determine that
payments to Mr. McMullan would constitute “excess parachute payments,” the payments to Mr. McMullan would be either delivered
in full or reduced such that no portion would be subject to any additional tax liability applicable to Mr. McMullan as a result of such
payments, whichever results in the greatest amount of benefits to Mr. McMullan, as determined by the Bank’s independent accounting
firm or independent tax counsel. Please see “Potential Payments Upon Termination or Change in Control.”

Finally, during
his employment and for a period of 12 months thereafter (other than when his employment has been terminated 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