Exhibit
10.14


 


EMPLOYMENT
AGREEMENT


 


This Employment Agreement
(the “Agreement”) is made effective as of __________, 2016 (the “Effective Date”), by and between Bancorp
34, Inc. (the “Company”) and ____________ (“Executive”).  Any reference to the “Bank”
shall mean Bank 34, the wholly-owned subsidiary of the Company.  


 


WHEREAS, the
Company wishes to assure itself of the continued services of Executive for the period provided in this Agreement; and


 


WHEREAS, in
order to induce Executive to remain in the employ of the Company and to provide further incentive for Executive to achieve the
financial and performance objectives of the Company, the parties desire to enter into this Agreement; and


 


WHEREAS, the
Company desires to set forth the rights and responsibilities of Executive and the compensation payable to Executive, as modified
from time to time.


 


NOW, THEREFORE,
in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:


 


		1.	POSITION AND RESPONSIBILITIES.



 


During the term of
this Agreement, Executive agrees to serve as [Title] of the Company (the “Executive Position”), and will perform the
duties and will have all powers associated with such position as set forth in any job description provided to Executive by the
Company, and as may be set forth in the bylaws of the Company.  During the period provided in this Agreement, Executive
also agrees to serve, if elected, as an officer of any subsidiary or affiliate of the Company and in such capacity carry out such
duties and responsibilities reasonably appropriate to that office.  


 


		2.	TERM AND DUTIES.



 


(a)           The
term of this Agreement and the period of Executive’s employment hereunder shall begin as of the Effective Date and shall
continue for twenty-four (24) full calendar months thereafter.  Commencing on the first anniversary date following the
Effective Date and continuing on each anniversary date thereafter (the “Anniversary Date”), this Agreement shall renew
for an additional year such that the remaining term shall be twenty-four (24) months, provided, however, that in order for this
Agreement to renew, the disinterested members of the Board of Directors of the Company (the “Board”) must take the
following actions within the time frames set forth below prior to each Anniversary Date:  (i) at least sixty (60) days
prior to the Anniversary Date, conduct a comprehensive performance evaluation and review of Executive for purposes of determining
whether to extend this Agreement; and (ii) affirmatively approve the renewal or non-renewal of this Agreement, which such decision
shall be included in the minutes of the Board’s meeting.  If the decision of such disinterested members of the
Board is not to renew this Agreement, then the Board shall provide Executive with a written notice of non-renewal (“Non-Renewal
Notice”) at least thirty (30) days and not more than sixty (60) days prior to any Anniversary Date, such that this Agreement
shall terminate at the end of twenty-four (24)


 




     


     


    

 


months following such Anniversary Date.  The
failure of the disinterested members of the Board to take the actions set forth herein before any Anniversary Date will result
in the automatic non-renewal of this Agreement, even if the Board fails to affirmatively issue the Non-Renewal Notice to Executive.  If
the Board fails to inform Executive of its determination regarding the renewal or non-renewal of this Agreement, the Executive
may request, in writing, the results of the Board’s action (or non-action) and the Board shall, within thirty (30) days of
the receipt of such request, provide a written response to Executive.  Reference herein to the term of this Agreement
shall refer to both such initial term and such extended terms.  


 


(b)           Notwithstanding
the foregoing, in the event that the Company or the Bank has entered into an agreement to effect a transaction which would be considered
a Change in Control as defined under Section 5 hereof, then the term of this Agreement shall automatically be extended for twenty-four
(24) months following the date on which the Change in Control occurs.


 


(c)           During
the period of her employment hereunder, except for periods of absence occasioned by illness, reasonable vacation periods, and reasonable
leaves of absence, Executive will devote all of her business time, attention, skill and efforts to the faithful performance of
her duties under this Agreement, including activities and duties related to the Executive Position.  Notwithstanding
the preceding sentence, subject to the approval of the Board, Executive may serve as a member of the board of directors
of business, community and charitable organizations, provided that in each case such service shall not materially interfere with
the performance of her duties under this Agreement, adversely affect the reputation of the Company or any other affiliates of the
Company, or present any conflict of interest.  


 


(d)           Nothing
in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the expiration of the term
of this Agreement.


 


		3.	COMPENSATION, BENEFITS AND REIMBURSEMENT.



 


(a)           Base
Salary.  In consideration of Executive’s performance of the responsibilities and duties set forth in this
Agreement, the Company will provide Executive the compensation specified in this Agreement.  The Company will pay Executive
a salary of $_________ per year (“Base Salary”).  Such Base Salary will be payable in
accordance with the customary payroll practices of the Company.  During the term of this Agreement, the Board
may consider increasing, but not decreasing (other than a decrease which is applicable to all senior officers of the Company and
in a percentage not in excess of the percentage decrease for other senior officers), Executive’s Base Salary as the Board
deems appropriate.  Any change in Base Salary will become the “Base Salary” for purposes of this Agreement.


 


(b)           Bonus.  Executive
shall be entitled to participate in any bonus plan or arrangements of the Company in which senior management is eligible to participate.  Nothing
paid to Executive under any such plan or arrangement will be deemed to be in lieu of the other compensation to which Executive
is entitled under this Agreement.  


 


(c)           Benefit
Plans.  Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites
offered to employees and officers of the Company.  Without limiting the generality of the foregoing provisions of this
Section 3(c), Executive also will be


 




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entitled to participate in any employee
benefit plans including but not limited to retirement plans, pension plans, profit-sharing plans, health-and-accident plans, or
any other employee benefit plan or arrangement made available by the Company in the future to management employees, subject to
and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements.


  


(d)           Vacation.  Executive
will be entitled to paid vacation time each year during the term of this Agreement measured on a calendar year basis, in accordance
with the Company’s customary practices, as well as sick leave, holidays and other paid absences in accordance with the Company’s
policies and procedures for officers.  Any unused paid time off during an annual period will be treated in accordance
with the Company’s personnel policies as in effect from time to time.  


 


(e)           Expense
Reimbursements.  The Company will reimburse Executive for all reasonable travel, entertainment and other reasonable
expenses incurred by Executive during the course of performing her obligations under this Agreement, including, without limitation,
fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate in connection
with the performance of her duties under this Agreement, upon substantiation of such expenses in accordance with applicable policies
and procedures of the Company.  All reimbursements pursuant to this Section 3(e) shall
be paid promptly by the Company and in any event no later than thirty (30) days following the date on which the expense was incurred.  



 


(f)           To
the extent not specifically set forth in this Section 3, any compensation payable or provided under this Section 3 shall be paid
or provided no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject
to a substantial risk of forfeiture within the meaning of Treasury Regulation Section 1.409A-1(d).


 


		4.	TERMINATION AND TERMINATION PAY.  



 


Subject to Section
5 of this Agreement which governs the occurrence of a Change in Control, Executive’s employment under this Agreement may
be terminated in the following circumstances:


 


(a)           Death.  Executive’s
employment under this Agreement will terminate upon her death during the term of this Agreement, in which event Executive’s
estate or beneficiary shall be paid Executive’s Base Salary at the rate in effect at the time of Executive’s death
for a period of one (1) year following Executive’s death (payable in accordance with the regular payroll practices of the
Company).  In addition, for one (1) year following Executive’s death, the Company will continue to provide non-taxable
medical and dental coverage substantially comparable to the coverage, if any, maintained by the Company for Executive and her family
immediately prior to Executive’s death.  Such continued benefits will be fully paid for by the Company.  


 


(b)           Disability.  Termination
of Executive’s employment based on “Disability” shall mean termination because of any permanent and totally physical
or mental impairment that restricts Executive from performing all the essential functions of normal employment.  In the


 




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event of Executive’s
termination due to Disability, Executive will be entitled to disability benefits, if any, provided under a long term disability
plan sponsored by the Company, if applicable.  In addition, for one (1) year following Executive’s Disability,
the Company will continue to provide non-taxable medical and dental coverage substantially comparable to the coverage, if any,
maintained by the Company for Executive and her family immediately prior to Executive’s death.  Such continued
benefits will be fully paid for by the Company.


 


(c)       Termination
for Cause.  The Board may immediately terminate her employment at any time for “Cause.”  Executive
shall have no right to receive compensation or other benefits for any period after termination for Cause, except for already vested
benefits.  Termination for “Cause” shall mean termination because of, in the good faith determination of
the Board, Executive’s:


 


		(i)	personal dishonesty;



 


		(ii)	incompetence;



 


		(iii)	willful misconduct;



 


		(iv)	breach of fiduciary duty involving personal profit;



 


		(v)	intentional failure to perform stated duties;



 


		(vi)	willful violation of any law, rule or regulation (other than traffic violations or similar offenses)
or final cease-and-desist order, or



 


		(vii)	material breach by Executive of any provision of this Agreement.



 


(d)         Voluntary
Termination by Executive.  In addition to her other rights to terminate her employment under this Agreement,
Executive may voluntarily terminate employment during the term of this Agreement (other than “With Good Reason” as
defined below) upon at least thirty (30) days prior written notice to the Board.  Upon Executive’s voluntary termination,
Executive will receive only her earned but unpaid compensation and vested rights and benefits as of the date of her termination.  


 


(e)         Termination
Without Cause or With Good Reason.


 


		(i)	The Board may immediately terminate her employment at any time for a reason other than Cause (a
termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time
within ninety (90) days following an event constituting “Good Reason,” as defined below (a termination “With
Good Reason”); provided, however, that the Company shall have thirty (30) days to cure the “Good Reason” condition,
but the Company may waive its right to cure.  Any termination of Executive’s employment, other than Termination
for Cause shall have no effect on or prejudice the vested rights of Executive under the Company’s qualified or non-qualified
retirement, pension, savings, thrift,



 




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profit-sharing
or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability
insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive was a participant.  


 


		(ii)	In the event of termination as described under Section 4(e)(i) and subject to the requirements
of Section 4(e)(v), the Company shall pay Executive, or in the event of Executive’s subsequent death, Executive’s beneficiary
or estate, as the case may be, as severance pay, a cash lump sum payment equal to the Base Salary (at the rate in effect as of
her date of termination) that Executive would have earned had she remained employed with the Company from her date of termination
until, and including, the last day of the remaining term of this Agreement. Such payment shall be made to Executive within ten
(10) days following Executive’s date of termination, or if later, following the seventh (7th) day after Executive’s
execution of the Release required under Section 4(e)(v) hereof.  



 


		(iii)	In addition, the Company shall pay Executive a cash lump sum payment reasonably estimated to be
equal to the value of three (3) years of additional life insurance coverage and non-taxable medical and dental insurance coverage
maintained by the Company for Executive immediately prior to her date of termination for a period equal to the number of months
existing in the remaining term of the Agreement.  Such cash payment shall be made in a lump sum on the same date as the
payment under Section 4(e)(ii) above.



 


		(iv)	“Good Reason” exists if, without Executive’s express written consent, any of
the following occurs:



 


		(A)	the failure of the Company to appoint or re-elect Executive to the Executive Position;



 


		(B)	a material reduction in Executive’s Base Salary or benefits provided in this Agreement (other
than a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Company as part
of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in a manner that does
not discriminate against Executive (except as such discrimination may be necessary to comply with applicable law));  



 


		(C)	a change in Executive’s Executive Position to be one of lesser authority or a material reduction
in Executive’s authority, duties or responsibilities from the position and attributes associated with the Executive Position;



 




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		(D)	a relocation of Executive’s principal place of employment by more than twenty-five (25) miles
from Executive’s principal place of employment as of the initial Effective Date of this Agreement; or



 


		(E)	a material breach of this Agreement by the Company.



 


		(v)	Notwithstanding the foregoing, Executive shall not be entitled to any payments or benefits under
this Section 4(e) unless and until Executive executes a release of her claims (“Release”), satisfactory in form to
the Company, against the Company, the Bank and any affiliate, and their officers, directors, successors and assigns, releasing
said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment
relationship, including claims under the Age Discrimination in Employment Act (“ADEA”), but not including claims for
benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable
law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement.  In
order to comply with the requirements of Code Section 409A and the ADEA, the Release shall be provided to Executive no later than
the date of her Separation from Service and Executive shall have no fewer than twenty-one (21) days to consider the Release, and
following Executive’s execution of the Release, Executive shall have seven (7) days to revoke said Release.



 


		5.	CHANGE IN CONTROL.



 


(a)         Change
in Control Defined.  For purposes of this Agreement, the term “Change in Control” shall mean the
occurrence of any of the following events:


 


		(i)	Merger:  The Company or the Bank merges into or consolidates with another entity,
or merges another bank or corporation into the Company or the Bank, 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 or the Bank 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, as amended, 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 or the Bank’s voting securities;
provided, however, this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s 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;



 




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		(iii)	Change in Board Composition:  During any period of two consecutive years, individuals
who constitute the Company’s or Bank’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 or Bank’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
or corporators) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period
or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the primary federal regulator
of the Bank or the Company or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been
a director at the beginning of such period; or



 


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



 


(b)          Change
in Control Benefits.  Upon the occurrence of Executive’s termination Without Cause or With Good Reason
on or after the effective time of a Change in Control, the Company (or any successor) shall pay Executive, or in the event of Executive’s
subsequent death, Executive’s beneficiary or estate, as severance pay, an amount equal to two (2) times the sum of her (i)
highest rate of Base Salary, and (ii) the highest annual bonus paid to, or earned by, Executive during the current calendar year
of Executive’s date of termination or either of the two (2) calendar years immediately preceding Executive’s date of
termination.  Such payment shall be made in a lump sum within ten (10) days following Executive’s date of termination.  In
addition, the Company shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of two (2) years
of additional life insurance coverage and non-taxable medical and dental insurance coverage substantially comparable to the coverage
maintained by the Company for Executive immediately prior to her date of termination.  Such cash payment shall be made
in a lump sum within ten (10) days following the Change in Control, or if later, following Executive’s date of termination.
Notwithstanding the foregoing, the payments and benefits provided in this Section 5(b) shall be payable to Executive in lieu of
any payments or benefits that are payable under Section 4(e).  


 


(c)          Termination
within Six Months Prior to Change in Control.  In the event of Executive’s termination of employment under
Section 4(e) within six (6) months prior to a Change in Control, Executive shall be entitled to the difference, if any, between
the benefit received under Section 4(e) and the benefit available to Executive under this Section 5 upon the effective date of
the Change in Control.  Such benefit shall be payable in a cash lump sum payment to the former Executive within ten (10)
days following the effective date of the Change in Control.



 




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		6.	COVENANTS OF EXECUTIVE.



 


(a)          Non-Solicitation/Non-Compete.  Executive
hereby covenants and agrees that, for a period of one (1) year following her termination of employment with the Company
(other than a termination of employment following a Change in Control), Executive shall not, without the written consent of the
Company, either directly or indirectly:


 


		(i)	solicit, offer employment to, or take any other action intended (or that a reasonable person acting
in like circumstances would expect) to have the effect of causing any officer or employee of the Company, or any of its respective
subsidiaries or affiliates, to terminate her employment and accept employment or become affiliated with, or provide services for
compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Company, or any of their
direct or indirect subsidiaries or affiliates, that has headquarters or offices within twenty-five (25) miles of any location(s)
in which the Company has business operations or has filed an application for regulatory approval to establish an office (the “Restricted
Territory”);



 


		(ii)	become an officer, employee, consultant, director, independent contractor, agent, joint venturer,
partner or trustee of any savings Company, savings and loan association,
savings and loan holding company, credit union, Company or Company holding company, insurance company or agency, any mortgage or
loan broker or any other entity that competes with the business of the Company or any of their direct or indirect subsidiaries
or affiliates, that: (i) has a headquarters within the Restricted Territory or (ii) has one or more offices, but is not headquartered,
within the Restricted Territory, but in the latter case, only if Executive would be employed, conduct business or have other responsibilities
or duties within the Restricted Territory; or



 


		(iii)	solicit, provide any information, advice or recommendation or take any other action intended (or
that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Company to
terminate an existing business or commercial relationship with the Company.  



 


(b)          Confidentiality.  Executive
recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other proprietary
information of the Company, as it may exist from time to time, are valuable, special and unique assets of the business of the Company.  Executive
will not, during or after the term of her employment,


 




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disclose any knowledge
of the past, present, planned or considered business activities or any other similar proprietary information of the Company to
any person, firm, corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or
required by law.  Notwithstanding the foregoing, Executive may disclose any knowledge of Companying, financial and/or
economic principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of the
Company.  Further, Executive may disclose information regarding the business activities of the Company to any Company
regulator having regulatory jurisdiction over the activities of the Company pursuant to a formal regulatory request.  In
the event of a breach or threatened breach by Executive of the provisions of this Section, the Company will be entitled to an injunction
restraining Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business
activities of the Company or any other similar proprietary information, or from rendering any services to any person, firm, corporation,
or other entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed.  Nothing
herein will be construed as prohibiting the Company from pursuing any other remedies available to the Company for such breach or
threatened breach, including the recovery of damages from Executive.


 


(c)          Information/Cooperation.  Executive
shall, upon reasonable notice, furnish such information and assistance to the Company as may be reasonably required by the Company,
in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however,
that Executive shall not be required to provide information or assistance with respect to any litigation between Executive and
the Company or any other subsidiaries or affiliates.


 


(d)          Reliance.  Except
as otherwise provided, all payments and benefits to Executive under this Agreement shall be subject to Executive’s compliance
with this Section 6, to the extent applicable.  The parties hereto, recognizing that irreparable injury will result to
the Company, its business and property in the event of Executive’s breach of this Section 6, agree that, in the event of
any such breach by Executive, the Company will be entitled, in addition to any other remedies and damages available, to an injunction
to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive represents and admits that
Executive’s experience and capabilities are such that Executive can obtain employment in a business engaged in other lines
of business than the Company, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning
a livelihood.  Nothing herein will be construed as prohibiting the Company from pursuing any other remedies available
to them for such breach or threatened breach, including the recovery of damages from Executive.


 


		7.	SOURCE OF PAYMENTS.



 


All payments provided
in this Agreement shall be timely paid by check or direct deposit from the general funds of the Company (or any successor of the
Company).  Notwithstanding any provision in this Agreement to the contrary, there will be no duplication of benefits
between this Agreement and any employment agreement to which the Executive may be subject with the Bank.  To the extent
payments and benefits, as provided for under this Agreement, are paid or received by Executive under an employment agreement in
effect between Executive and the Bank, the payments and benefits paid by the Bank will be subtracted from any amount or benefit
due simultaneously to Executive under similar provisions of this Agreement.


 




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		8.	EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.



 


This Agreement contains
the entire understanding between the parties hereto and supersedes any prior employment agreement between the Company or any predecessor
of the Company and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring
to Executive of a kind expressly provided elsewhere.  


 


		9.	NO ATTACHMENT; BINDING ON SUCCESSORS.



 


(a)           Except
as required by law, no right to receive payments 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 or assignment
by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.


 


(b)           The
Company shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to
all or substantially all the business or assets of the Company, expressly and unconditionally to assume and agree to perform the
Company’s obligations under this Agreement, in the same manner and to the same extent that the Company would be required
to perform if no such succession or assignment had taken place.


 


		10.	MODIFICATION AND WAIVER.



 


(a)           This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.  


 


(b)           No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any 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 such 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 as to any act other than that specifically waived.


 


		11.	REQUIRED PROVISIONS.



 


Notwithstanding anything
herein contained to the contrary, the following provisions shall apply:


 


(a)           The
Board may terminate Executive’s employment at any time, but any termination by the Company’s Board other than termination
for Cause shall not prejudice Executive’s right to compensation or other benefits under this Agreement.  Executive
shall have no right to receive compensation or other benefits for any period after Executive’s termination for Cause.


 


(b)           Notwithstanding
anything else in this Agreement to the contrary (with the exception of Section 4(c)(i)), Executive’s employment shall not
be deemed to have been terminated unless and until Executive has a Separation from Service within the meaning of Code Section 409A.  For
purposes of this Agreement, a “Separation from Service” shall have occurred


 




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if the Company and Executive
reasonably anticipate that either no further services will be performed by Executive after the date of termination (whether as
an employee or as an independent contractor) or the level of further services performed is less than fifty (50) percent of the
average level of bona fide services in the thirty-six (36) months immediately preceding the termination.  For all purposes
hereunder, the definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).  
Notwithstanding the foregoing, this Section 11(b) is not applicable in the event of the Executive’s termination for Cause.  


 


(c)           Notwithstanding
the foregoing, if Executive is a “specified employee” (i.e., a “key employee” of a publicly traded company
within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this Agreement
is triggered due to Executive’s Separation from Service (other than due to Disability or death), then solely to the extent
necessary to avoid penalties under Section 409A of the Code, no payment shall be made during the first six (6) months following
Executive’s Separation from Service.  Rather, any payment which would otherwise be paid to Executive during such
period shall be accumulated and paid to Executive in a lump sum on the first day of the seventh month following such Separation
from Service.  All subsequent payments shall be paid in the manner specified in this Agreement.    


 


		12.	SEVERABILITY.



 


If, for any reason,
any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the
full extent consistent with law continue in full force and effect.


 


		13.	GOVERNING LAW.



 


This Agreement shall
be governed by the laws of State of New Mexico, but only to the extent not superseded by federal law.


 


		14.	ARBITRATION.



 


Any dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively by binding arbitration, as an alternative to civil
litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator mutually acceptable to the Company
and Executive, sitting in a location selected by the Company within fifty (50) miles from the main office of the Company,
in accordance with the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes
then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.


 


		15.	PAYMENT OF LEGAL FEES.



 


To the extent that
such payment(s) may be made without triggering penalty under Code Section 409A, all reasonable legal fees paid or incurred by Executive
pursuant to any dispute relating to this Agreement shall be paid or reimbursed by the Company, provided that the dispute


 




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is resolved in Executive’s
favor, and such reimbursement shall occur no later than sixty (60) days after the end of the year in which the dispute is settled
or resolved in Executive’s favor.


 


		16.	INDEMNIFICATION.



 


The Company shall provide
Executive (including her heirs, executors and administrators) with coverage under a standard directors’ and officers’
liability insurance policy at its expense, and shall indemnify Executive (and her heirs, executors and administrators) for the
term of the Agreement and for a period of six (6) years thereafter to the fullest extent permitted under applicable law against
all expenses and liabilities reasonably incurred by her  in connection with or arising out of any action, suit or proceeding
in which she may be involved by reason of her having been a director or officer of the Company or the Bank or any subsidiary or
affiliate of the Company or the Bank (whether or not she continues to be a director or officer at the time of incurring such expenses
or liabilities), such expenses and liabilities to include, but not be limited to, judgments, court costs and attorneys’ fees
and the cost of reasonable settlements (such settlements must be approved by the Board or the board of directors of the Bank, as
appropriate); provided, however, neither the Company nor Company shall be required to indemnify or reimburse Executive for legal
expenses or liabilities incurred in connection with an action, suit or proceeding arising from any illegal or fraudulent act committed
by Executive.  


 


		17.	NOTICE.



 


For the purposes of
this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed
to the respective addresses set forth below:


 


	To the Company:	
        Bancorp 34, Inc.

        500 East 10th Street

        Alamogordo, New Mexico  88310

        Attn: Randall L. Rabon, Director

         

	To Executive:	Most recent address on file with the Company


 


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IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.  


 


	 	BANCORP 34, INC.	 
	 	 	 
	 	By: 	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	EXECUTIVE	 
	 	 	 
	 	 	 


 




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