Exhibit 10.4


 


BANK EMPLOYMENT AGREEMENT


 


THIS EMPLOYMENT AGREEMENT
(hereinafter referred to as this “AGREEMENT”), originally entered into on the 1st day of July, 2005, previously amended
and restated in its entirety as of December 30, 2008 and hereby amended and restated in entirety effective July 1, 2014 by and
between United Community Bank, a savings bank chartered under the laws of the United States of America (hereinafter referred
to as the “BANK”), and Elmer G. McLaughlin, an individual (hereinafter referred to as the “EMPLOYEE”).


 


WITNESSETH:


 


WHEREAS, as
a result of the skill, knowledge and experience of the EMPLOYEE, the Board of Directors of the BANK desires to continue to retain
the services of the EMPLOYEE as the President and Chief Executive Officer of the Bank; and


 


WHEREAS, the
EMPLOYEE desires to continue to serve as the President and Chief Executive Officer of the BANK; and


 


WHEREAS, the
EMPLOYEE and the BANK desire to enter into this AGREEMENT to set forth the terms and conditions of the employment relationship
between the BANK and the EMPLOYEE; and


 


WHEREAS, the
parties desire to amend and restate this AGREEMENT to bring it into compliance with changes in the regulatory structure governing
financial institutions like the BANK; (ii) reflect the EMPLOYEE’s current job position with the BANK; and (iii) other ministerial
matters.


 


NOW, THEREFORE,
in consideration of the promises and mutual covenants herein contained, the BANK and the EMPLOYEE hereby agree as follows:


 


1.          Employment
and Term.


 


(a)          Term.
Upon the terms and subject to the conditions of this AGREEMENT, the BANK hereby employs the EMPLOYEE, and the EMPLOYEE hereby accepts
employment, as the President and Chief Executive Officer of the BANK. The term of this AGREEMENT shall commence on July 1, 2014,
and shall end on June 30, 2017, unless extended by the BANK, as provided in subsection (b) of this Section 1 (hereinafter
referred to, together with such extensions, as the “TERM”).


 


(b)          Extension.
On or before each anniversary of the original date of this AGREEMENT, the Board of Directors of the BANK may extend the AGREEMENT
for an additional year, so that the remaining term of the AGREEMENT again becomes three (3) years from the applicable anniversary
date, unless, the EMPLOYEE elects not to extend the term by giving written notice at least thirty (30) days prior to the applicable
commission date.


 




     


     


    

 


(c)          The
board of directors of the BANK will review the AGREEMENT and the EMPLOYEE’s performance review annually for purposes of determining
whether to extend the AGREEMENT term and will include the rationale and results of its review in the minutes of the meetings.


 


(d)          Nothing
in this AGREEMENT shall mandate or prohibit a continuation of the EMPLOYEE’s employment following the expiration of the term
of this AGREEMENT, upon such terms and conditions as the BANK and the Employee may mutually agree.


 


2.          Duties
of the EMPLOYEE.


 


(a)          General
Duties and Responsibilities. The EMPLOYEE shall serve as the President and Chief Executive Officer of the BANK according
to the terms and conditions of this AGREEMENT and for the period stated in Section 1 of this AGREEMENT. As a President and Chief
Executive Officer of the BANK, the EMPLOYEE will perform all duties and will have all powers associated with this position, as
set forth in any job description provided to EMPLOYEE by the BANK or as may be delegated to the Employee by the Board of Directors
of the BANK. EMPLOYEE shall report directly to the Board of Directors of the BANK.


 


(b)          Devotion
of Entire Time to the Business of the BANK. The EMPLOYEE shall devote his entire productive time, ability and attention during
normal business hours throughout the TERM to the faithful performance of his duties under this AGREEMENT. The EMPLOYEE shall not
directly or indirectly render any services of a business, commercial or professional nature to any person or organization other
than the BANK or any subsidiary of the BANK without the prior written consent of the Board of Directors; provided, however, that
the EMPLOYEE shall not be precluded from (i) vacations and other leave time in accordance with Section 3(d) below, (ii) reasonable
participation in community, civic, charitable or similar organizations, (iii) reasonable participation in industry-related activities,
including, but not limited to, attending state and national trade association meetings and serving as an officer, director or trustee
of a state or national trade association or Federal Home Loan Bank, (iv) serving as an officer or director of any subsidiary of
the BANK and receiving a salary, director’s fees or other compensation or benefits, as appropriate, or (v) pursuing personal
investments which do not interfere or conflict with the performance of the EMPLOYEE’s duties to the BANK.


 


3.          Compensation.


 


(a)          Base
Salary. The EMPLOYEE shall receive during the TERM an annual salary payable in equal installments not less often than monthly.
The amount of such annual salary shall be $175,000.00 until changed by the Board of Directors of the BANK in accordance
with Section 3(b) below.


 


(b)          Periodic
Salary Review. The annual salary of the EMPLOYEE shall be reviewed by the Board of Directors from time to time throughout the
TERM, but not less often than once every three years, and shall be set at an amount not less than $175,000.00, based upon
the EMPLOYEE’s individual performance and such other factors as the Board of Directors may deem appropriate (hereinafter
referred to as the “PERIODIC REVIEW”). The results of the PERIODIC REVIEW shall be reflected in the minutes of the
Board of Directors.


 




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(c)          Employee
Benefit Programs. During the TERM, the EMPLOYEE shall be eligible to participate in all formally established employee benefit,
bonus, pension and profit sharing plans and similar programs that are maintained by the BANK from time to time and all employee
benefit plans or programs hereafter adopted in writing by the Board of Directors for which senior management personnel of the BANK
are eligible, including any employee stock ownership plan, stock option plan or other stock benefit plan (hereinafter collectively
referred to as “BENEFIT PLANS”), in accordance with the terms and conditions of such BENEFIT PLANS. Notwithstanding
any statement to the contrary contained elsewhere in this AGREEMENT, the BANK may at any time discontinue or terminate any BENEFIT
PLAN now existing or hereafter adopted, to the extent permitted by the terms of such BENEFIT PLAN, and shall not be required to
compensate the EMPLOYEE for such discontinuance or termination to the extent such discontinuance or termination pertains to all
employees of the BANK who are eligible participants at the time.


 


(d)          Vacation
and Sick Leave. The EMPLOYEE shall be entitled, without loss of pay, to be absent voluntarily from the performance of his duties
under this AGREEMENT, in accordance with the policies periodically established by the Board of Directors for senior management
officials of the BANK. The EMPLOYEE shall be entitled to annual sick leave as established by the Board of Directors for senior
management officials of the BANK.


 


(e)          Reimbursement
of Business Expenses. The EMPLOYEE shall be entitled to reimbursement for all reasonable business expenses (including mileage
at the prevailing rate established by the Internal Revenue Service) incurred while performing his obligations under this AGREEMENT,
including but not limited to all reasonable business travel and entertainment expenses incurred while acting at the request of
or in the service of the BANK and reasonable costs associated with participation in industry-related activities. Expenses will
be reimbursed if they are submitted in accordance with the BANK’s policies and procedures.


 


4.          Termination
of Employment.


 


(a)          General.
The employment of the EMPLOYEE shall terminate at any time during the TERM (i) at the option of the BANK, upon the delivery by
the BANK of written notice of termination to the EMPLOYEE, or (ii) at the option of the EMPLOYEE, upon delivery by the EMPLOYEE
of written notice of termination to the BANK if, in connection with a CHANGE OF CONTROL (hereinafter defined), the present capacity
or circumstances in which the EMPLOYEE is employed are materially adversely changed so as to constitute Good Reason if such events
occur within one year of a CHANGE IN CONTROL. For purposes of this AGREEMENT, “Good Reason” shall mean the occurrence
of any of the following events without the Employee’S consent:


 


(1)         The
assignment to the EMPLOYEE of duties that constitute a material diminution of his authority, duties, or responsibilities (including
reporting requirements);


 


(2)         A
material diminution in the EMPLOYEE’s Base Salary;


 


(3)         Relocation
of the EMPLOYEE to a location outside a radius of 35 miles of the BANK’s Lawrenceburg, Indiana office; or


 




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(4)         Any
other action or inaction by the BANK that constitutes a material breach of this AGREEMENT;


 


			provided, that within ninety (90) days after the initial existence of such event, the BANK shall
be given notice and an opportunity, not less than thirty (30) days, to effectuate a cure for such asserted “Good Reason”
by the EMPLOYEE. The EMPLOYEE’s resignation hereunder for Good Reason shall not occur later than one hundred fifty (150)
days following the initial date on which the event claims constitutes Good Reason occurred.



 


The following subsections
(A), (B) and (C) of this Section 4(a) shall govern the obligations of the BANK to the EMPLOYEE upon the occurrence of the events
described in such subparagraphs:


 


(A)         Termination
for CAUSE. In the event that the BANK terminates the employment of the EMPLOYEE during the TERM because of the EMPLOYEE’s
personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure
or refusal to perform the duties and responsibilities assigned in this AGREEMENT, willful violation of any law, rule or regulation
(other than traffic violations or other minor offenses), or final cease-and-desist order or material breach of any provision of
this AGREEMENT (hereinafter collectively referred to as “CAUSE”), the EMPLOYEE shall not receive, and shall have no
right to receive, any compensation or other benefits for any period after such termination.


 


(B)         Termination
in Connection with CHANGE OF CONTROL. In the event that the employment of the EMPLOYEE is terminated by the BANK in connection
with a CHANGE OF CONTROL for any reason other than CAUSE or is terminated by the EMPLOYEE as provided in Section 4(a)(ii) above
during the terms of this AGREEMENT, then the following shall occur:


 


(I)         The
BANK shall promptly pay to the EMPLOYEE or to his beneficiaries, dependents or estate an amount equal to the product of 2.99 multiplied
by the EMPLOYEE’s “base amount” as defined in Section 280G(b)(3) of the Code, and the regulations promulgated
thereunder (hereinafter collectively referred to as “SECTION 280G” The payment required under this paragraph (B)(I)
shall be made no later than five (5) business days after EMPLOYEE’s termination of equipment;


 


(II)        The
EMPLOYEE, his dependents, beneficiaries and estate shall continue to be covered at the BANK’s expense under all health, life,
disability and other benefit plans of the BANK in which the EMPLOYEE was a participant prior to the effective date of the termination
of his employment as if the EMPLOYEE were still employed under this AGREEMENT until the earlier of the expiration of the TERM or
the date on which the EMPLOYEE is included in another employer’s benefit plans as a full-time employee; and


 




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(III)       The
EMPLOYEE shall not be required to mitigate the amount of any payment provided for in this AGREEMENT by seeking other employment
or otherwise, nor shall any amounts received from other employment or otherwise by the EMPLOYEE offset in any manner the obligations
of the BANK hereunder, except as specifically stated in subparagraph (II) above.


 


(C)         Termination
Not in Connection with CHANGE OF CONTROL. In the event that the employment of the EMPLOYEE is terminated before the expiration
of the TERM for any reason other than death, termination for CAUSE or termination in connection with a CHANGE OF CONTROL, then
the following shall occur:


 


(I)         The
BANK shall be obligated to pay to the EMPLOYEE, his designated beneficiaries or his estate, a lump sum amount, within ten (10)
days of his termination, equal to the base salary that would have been paid to the EMPLOYEE through the expiration of the TERM,
at the annual rate of salary in effect at the time of termination pursuant to Section 3(b) above, plus a cash bonus equal to the
cash bonus, if any, paid to the EMPLOYEE in the twelve month period prior to the termination of employment;


 


(II)        The
BANK shall continue to provide to the EMPLOYEE, at the BANK’s expense, health, life, disability and other benefits substantially
equal to those being provided to the EMPLOYEE at the date of termination of his employment until the earliest to occur of the expiration
of the TERM or the date on which the EMPLOYEE is included in another employer’s benefit plans as a full-time employee; and


 


(III) The EMPLOYEE
shall not be required to mitigate the amount of any payment provided for in this AGREEMENT by seeking other employment or otherwise,
nor shall any amounts received from other employment or otherwise by the EMPLOYEE offset in any manner the obligations of the BANK
hereunder, except as specifically stated in subparagraph II above.


 


As a condition
precedent to receiving the lump sum severance payment and benefits under this Section 4(a)(ii)(C), EMPLOYEE shall execute a release
AGREEMENT in a form provided by the BANK. In said release AGREEMENT, EMPLOYEE shall, among other provisions included at the BANK’s
discretion, agree to fully and forever discharge and release BANK,its past and present subsidiary and affiliated corporations or
business entities and its and their past and present employees, agents, representatives, officers, benefit plans, and directors
from any and all actions, causes of action, claims, demands, damages, costs, expenses and compensation on account of, or in any
way growing out of any and all damage that EMPLOYEE had, has, or may have against the BANK as of the time the release AGREEMENT
is executed by EMPLOYEE.


 


(b)          Death
of the EMPLOYEE. The TERM shall automatically expire upon the death of the EMPLOYEE. In such event, the EMPLOYEE’s estate
shall be entitled to receive the amount of the annual salary that the EMPLOYEE would have received through the last day of the
third calendar month following the month in which the death occurred, except as otherwise specified herein.


 




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(c)          “Golden
Parachute” Provision. Notwithstanding any other provisions of this AGREEMENT, in the event that the aggregate payments
or benefits to be made or afforded to the EMPLOYEE under this AGREEMENT or otherwise, which are deemed to be parachute payments
as defined in SECTION 280G or any successor thereof (the “Termination Benefits”), would be deemed to include an “excess
parachute payment” under SECTION 280G of the Code, then the Termination Benefits shall be reduced to a value which is one
dollar ($1.00) less than an amount equal to three (3) times the EMPLOYEE’s “base amount,” as determined in accordance
with Section 280G of the Code. The allocation of the reduction required hereby among the Termination Benefits shall first be made
from any cash severance benefit due under Section 4 of this AGREEMENT. Nothing contained in this AGREEMENT shall result in a reduction
of any payments or benefits to which the EMPLOYEE may be entitled upon termination of employment other than pursuant to Sections
4(a)(B)(I) and (II), or a reduction in the payments and benefits specified, below zero.


 


(d)          Definition
of “CHANGE OF CONTROL”. For purposes of this AGREEMENT, a Change in Control means any of the following events:


 


(I)           Merger:
The Company merges into or consolidates with another corporation, 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 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, 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 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 stockholders) by a vote of a 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


 




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


 


(e)          Termination
by EMPLOYEE. If the EMPLOYEE terminates this AGREEMENT without the written consent of the BANK, other than pursuant to Section
4(a)(ii) of this AGREEMENT, the EMPLOYEE shall not engage in the financial institutions’ business as a director, officer,
employee or consultant for any business or enterprise which “directly or indirectly” competes with the
principal business of the BANK or any of its subsidiaries within Dearborn County, Indiana or within thirty miles of the principal
business location of BANK, for the unexpired term of this AGREEMENT. This provision shall not apply in the event of the termination
of the employment of the EMPLOYEE by the EMPLOYER prior to the expiration of the TERM or the termination of the employment of the
EMPLOYEE by the EMPLOYEE pursuant to Section 4(a)(ii) of this AGREEMENT.


 


(1)         The
term “compete” means:


 


(i)          providing
financial products or services on behalf of any financial institution for any person residing in the territory;


 


(ii)         assisting
(other than through the performance of ministerial or clerical duties) any financial institution in providing financial products
or services to any person residing in the territory; or


 


(iii)        inducing
or attempting to induce any person who was a customer of the Bank at the date of the EMPLOYEE’s employment termination to
seek financial products or services from another financial institution.


 


(2)         The
words “directly” or “indirectly” mean:


 


(i)          acting
as a consultant, officer, director, independent contractor, or employee of any financial institution in competition with the Bank
or its affiliates in the territory, or


 


(ii)         communicating
to such financial institution the names or addresses or any financial information concerning any person who was a customer of the
Bank or its affiliates when the EMPLOYEE’s employment terminated.


 


If any provision of
this section (e) or any word, phrase, clause, sentence or other portion thereof (including, without limitation, the geographical
and temporal restrictions contained therein) is held to be unenforceable or invalid for any reason, the unenforceable or invalid
provision or portion shall be modified or deleted so that the provisions hereof, as modified, are legal and enforceable to the
fullest extent permitted under applicable law. EMPLOYEE acknowledges that the BANK’s willingness to enter into this AGREEMENT
and to make the payments contemplated by Section 4 of this AGREEMENT is conditioned on the EMPLOYEE’s acceptance of the covenants
set forth in this Section 4(e) and that the BANK would not have entered into this AGREEMENT without such covenants in force.


 




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5.          Special
Regulatory Provisions. In the event any of the foregoing provisions of this AGREEMENT conflict with the terms of this Section
5, this Section 5 shall prevail.


 


(a)          The
board of directors of the BANK may terminate the EMPLOYEE’s employment at any time, but any termination by the BANK, other
than termination for Cause, shall not prejudice the EMPLOYEE’s right to compensation or other benefits under this AGREEMENT.
The EMPLOYEE shall not have the right to receive compensation or other benefits for any period after termination for Cause as defined
in Section 4(A) of this AGREEMENT.


 


(b)          If
the EMPLOYEE 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 the EMPLOYEE all or part of the compensation
withheld while its contract BANK’s obligations were suspended; and (ii) reinstate (in whole or in part) any of the obligations
which were suspended.


 


(c)          If
the EMPLOYEE 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 EMPLOYEE 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 of
the Bank’s 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.


 


(e)          All
obligations under this AGREEMENT shall be terminated, except to the extent a determination is made that continuation of the contract
is necessary for the continued operation of the Employer (1) by the Comptroller of the Currency, or his or her designee (the “Comptroller”),
at the time the Federal Deposit Insurance Corporation enters into an AGREEMENT to provide assistance to or on behalf of the Employer
under the authority contained in Section 13(c) of the FDIA; or (2) by the Comptroller, at the time the Comptroller approves a supervisory
merger to resolve problems related to operation of the Employer or when the Employer is determined by the Comptroller to be in
an unsafe and unsound condition. Any rights of the EMPLOYEE that have already vested, however, shall not be affected by such action.


 


(f)          Any
payments made to the EMPLOYEE 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.


 




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(g)          The
Bank retains the right to demand the return of any payment made to the EMPLOYEE under Section 4 and the value of any benefit provided
under Section of this AGREEMENT in the event the Bank obtains information indicating that the EMPLOYEE has committed, is substantially
responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12 C.F.R. §359.4(a)(4).
In the event the Bank exercises its right to demand the return of any payment made under this AGREEMENT, the EMPLOYEE will return
the payments to the Bank within 90 days of receipt of written notice from the Bank that the EMPLOYEE has committed, is substantially
responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12 C.F.R. §359.4(a)(4).


 


6.          Consolidation,
Merger or Sale of Assets. Nothing in this AGREEMENT shall preclude the BANK from consolidating with, merging into, or transferring
all, or substantially all, of their assets to another corporation that assumes all of its obligations and undertakings hereunder.
Upon such a consolidation, merger or transfer of assets, the term “BANK” as used herein, shall mean such other corporation
or entity, and this AGREEMENT shall continue in full force and effect.


 


7.          Confidential
Information. The EMPLOYEE acknowledges that during his employment he will learn and have access to confidential information
regarding the BANK and its customers and businesses. The EMPLOYEE agrees and covenants not to disclose or use for his own benefit,
or the benefit of any other person or entity, any confidential information, unless or until the BANK consents to such disclosure
or use of such information is otherwise legally in the public domain. The EMPLOYEE shall not knowingly disclose or reveal to any
unauthorized person any confidential information relating to the BANK, its subsidiaries, or affiliates, or to any of the businesses
operated by them, and the EMPLOYEE acknowledges that such information constitutes the exclusive property of the BANK. The EMPLOYEE
shall not otherwise knowingly act or conduct himself to the material detriment of the BANK, its subsidiaries, or affiliates or
in a manner which is inimical or contrary to the interests of the BANK.


 


8.          Non-assignability.
Neither this AGREEMENT nor any right or interest hereunder shall be assignable by the EMPLOYEE, his beneficiaries or legal representatives
without the BANK’s prior written consent; provided, however, that nothing in this Section 8 shall preclude the EMPLOYEE from
designating a beneficiary to receive any benefits payable hereunder upon his death or the executors, administrators or other legal
representatives of the EMPLOYEE or his estate from assigning any rights hereunder to the person or persons entitled thereto.


 


9.          No
Attachment. Except as required by law, no right to receive payment under this AGREEMENT shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy, or similar process
of assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and
of no effect.


 


10.         Binding
AGREEMENT. This AGREEMENT shall be binding upon, and inure to the benefit of, the EMPLOYEE and the BANK and their respective
permitted successors and assigns.


 




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11.         Amendment
of AGREEMENT. This AGREEMENT may not be modified or amended, except by an instrument in writing signed by the parties hereto.


 


12.         Waiver.
No term or condition of this AGREEMENT shall be deemed to have been waived, nor shall there be an 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 waiver shall operate only as to the specific
term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than
the act specifically waived.


 


13.         Severability.
If, for any reason, any provision of this AGREEMENT is held invalid, such invalidity shall not affect the other provisions of this
AGREEMENT not held so invalid, and each such other provision shall, to the full extent consistent with applicable law, continue
in full force and effect. If this AGREEMENT is held invalid or cannot be enforced, then any prior AGREEMENT between BANK (or any
predecessor thereof) and the EMPLOYEE shall be deemed reinstated to the full extent permitted by law, as if this AGREEMENT had
not been executed.


 


14.         Headings.
The headings of the paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation
of any of the provisions of this AGREEMENT.


 


15.         Governing
Law. This AGREEMENT has been executed and delivered in the State of Indiana and its validity, interpretation, performance,
and enforcement shall be governed by the laws of the State of Indiana, except to the extent that federal law is governing.


 


16.         Effect
of Prior AGREEMENTs. This AGREEMENT contains the entire understanding between the parties hereto and supersedes any prior employment
AGREEMENT between the BANK or any predecessor of the BANK and the EMPLOYEE.


 


17.         Notices.
Any notice or other communication required or permitted pursuant to this AGREEMENT shall be deemed delivered if such notice or
communication is in writing and is delivered personally or by facsimile transmission or is deposited in the United States mail,
postage prepaid, addressed as follows:


 


If to the BANK:


 


United Community Bank


92 Walnut Street


Lawrenceburg, Indiana 47025


 


If to the EMPLOYEE:


 


E.G. McLaughlin


847 Ryan Ct.


Lawrenceburg, Indiana 47025


 




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18.         Section
409A of the Code.


 


(a)          This
AGREEMENT is intended to comply with the requirements of Section 409A of the Code, and specifically, with the “short-term
deferral exception” under Treasury Regulation Section 1.409A-1(b)(4) and the “separation pay exception” under
Treasury Regulation Section 1.409A-1(b)(9)(iii), and shall in all respects be administered in accordance with Section 409A of the
Code. If any payment or benefit hereunder cannot be provided or made at the time specified herein without incurring sanctions on
the EMPLOYEE under Section 409A of the Code, then such payment or benefit shall be provided in full at the earliest time thereafter
when such sanctions will not be imposed. For purposes of Section 409A of the Code, all payments to be made upon a termination of
employment under this AGREEMENT may only be made upon a “separation from service” (within the meaning of such term
under Section 409A of the Code), each payment made under this AGREEMENT shall be treated as a separate payment, the right to a
series of installment payments under this AGREEMENT (if any) is to be treated as a right to a series of separate payments, and
if a payment is not made by the designated payment date under this AGREEMENT, the payment shall be made by December 31 of the calendar
year in which the designated date occurs. To the extent that any payment provided for hereunder would be subject to additional
tax under Section 409A of the Code, or would cause the administration of this AGREEMENT to fail to satisfy the requirements of
Section 409A of the Code, such provision shall be deemed null and void to the extent permitted by applicable law, and any such
amount shall be payable in accordance with (b) below. In no event shall the EMPLOYEE, directly or indirectly, designate the calendar
year of payment.


 


(b)          If
when separation from service occurs the EMPLOYEE is a “specified employee” within the meaning of Section 409A of the
Code, and if the cash severance payment under Section 4 would be considered deferred compensation under Section 409A of the Code,
and, finally, if an exemption from the six-month delay requirement of Section 409A(a)(2)(B)(i) of the Code is not available (i.e.,
the “short-term deferral exception” under Treasury Regulations Section 1.409A-1(b)(4) or the “separation pay
exception” under Treasury Section 1.409A-1(b)(9)(iii)), the Bank will make the maximum severance payment possible in order
to comply with an exception from the six month requirement and make any remaining severance payment under Section 4 to the EMPLOYEE
in a single lump sum without interest on the first payroll date that occurs after the date that is six (6) months after the date
on which the EMPLOYEE separates from service.


 




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(c)          If
under the terms of the applicable policy or policies for the insurance or other benefits specified in Section 4 it is not possible
to continue coverage for the EMPLOYEE and his dependents, or when a separation from service occurs the EMPLOYEE is a “specified
employee” within the meaning of Section 409A of the Code, and if any of the continued insurance coverage or other benefits
specified in Section 4 would be considered deferred compensation under Section 409A of the Code, and, finally, if an exemption
from the six-month delay requirement of Section 409A(a)(2)(B)(i) of the Code is not available for that particular insurance or
other benefit, the Bank shall pay to the EMPLOYEE in a single lump sum an amount in cash equal to the present value of the BANK’s
projected cost to maintain that particular insurance benefit (and associated income tax gross-up benefit, if applicable) had the
EMPLOYEE’s employment not terminated, assuming continued coverage through the expiration of the TERM. The lump-sum payment
shall be made thirty (30) days after employment termination or, if Section 18(b) applies, on the first payroll date that occurs
after the date that is six (6) months after the date on which the EMPLOYEE separates from service.


 


(d)          References
in this AGREEMENT to Section 409A of the Code include rules, regulations, and guidance of general application issued by the Department
of the Treasury under Internal Revenue Section 409A of the Code.


 




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IN WITNESS
WHEREOF, the BANK has caused this AGREEMENT, as amended and restated, to be executed by its duly authorized officer, and the EMPLOYEE
has signed this AGREEMENT, each as of June 26, 2014.


 


	Attest:	 	 	 
	 	 	UNITED COMMUNITY BANK
	 	 	 	 
	/s/ Donna G. Hornbach	 	By:	/s/ Ralph B. Sprecher
	 	 	 	On Behalf of the Board for Directors
	 	 	 	 
	 	 	 	EMPLOYEE
	 	 	 	 
	 	 	 	/s/ Elmer G. McLauglin
	 	 	 	Elmer G. McLauglin


 




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