Document:

Exhibit 10.49

 

COMMUNITY BANK OF TRI-COUNTY

Supplemental Life Insurance Agreement

 

 

COMMUNITY
BANK OF TRI-COUNTY

SUPPLEMENTAL LIFE INSURANCE AGREEMENT

 

THIS SUPPLEMENTAL LIFE
INSURANCE AGREEMENT is adopted this 12  day of January, 2004 by and between COMMUNITY BANK OF TRI-COUNTY, Corporation located
in WALDORF, MARYLAND (the "Company"), and GREGORY C. COCKERHAM (the "Executive").

 

The purpose of this Agreement
is to retain and reward the Executive, by dividing the death proceeds of certain life insurance policies which are owned by the
Company on the life of the Executive with the designated beneficiary of the Executive. The Company will pay the life insurance
premiums from its general assets.

 

ARTICLE 1 

DEFINITIONS

 

Whenever used in this Agreement, the following terms shall have
the meanings specified:

 

1.1          "Beneficiary"
means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the
Executive.

 

1.2         "Beneficiary
Designation Form" means the form established from time to time by the Plan Administrator that the Executive completes,
signs and returns to the Plan Administrator to designate one or more Beneficiaries.

 

1.3          "Board" means the
Board of Directors of the Company as from time to time constituted.

 

1.4         "Change in Control" means
any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of the voting stock of
the Company or the Corporation; (ii) the acquisition of the ability to control the election of a majority of the Company's or the
Corporation's directors; (iii) the acquisition of a controlling influence over the management or policies of the Company or the
Corporation by any person or by persons acting a s a " group" ( within the meaning of Section 1 3(d) of the Securities
Exchange Act of 1934); or (iv) during any period of two consecutive years, individuals (the "Continuing Directors") who
at the beginning of such period constitute the Board of Directors of the Company or the Corporation (the "Existing Board")
cease for any reason to constitute at least two-thirds thereof, provided that any individual whose election or nomination for election
as a member of the Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall
be considered a Continuing Director. Notwithstanding the foregoing, the Corporation's ownership of the Company shall not of itself
constitute a Change in Control for purposes of the Agreement. For purposes of this paragraph only, the term "person"
refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship,
unincorporated organization or any other form of entity not specifically listed herein.

 

    	 	 

    
COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

1.5         "Company's Interest" means
the benefit set forth in Section 3.2.

 

1.6         "Corporation" means the Tri-County Financial
Corporation.

 

1.7         "Disability" means a physical
or mental infirmity which impairs the Executive's ability to substantially perform the Executive's duties under the Employment
Agreement with the Company and which results in the Executive becoming eligible for long-term disability benefits under the Company's
long-term disability plan (or if the Company has no such plan in effect, which impairs the Executive's ability to substantially
perform his duties under his Employment Agreement for a period of 180 consecutive days).

 

1.8         "Employment Agreement" means the Rested Employment
Agreement between the Company and the Executive dated 02/23/1998 as the same may be amended from time to time.

 

1.9         "Executive's Interest" means the benefit
set forth in Section 3.1.

 

1.10       "Insured" means the Executive.

 

1.11       "Insurer" means the insurance company
issuing the life insurance policy on the life of the Insured.

 

1.12      "Net Death Proceeds" means the total death
proceeds of the Policy minus the cash surrender value.

 

1.13      "Normal Retirement Age" means the Executive
attaining age 62.

 

1.14      "Policy"
means the individual insurance policy or policies adopted by the Company for purposes of insuring the Executive's life under
this Agreement.

 

1.15      "Termination of Employment"
means the termination of Executive's service for any reason, voluntarily or involuntarily, other than a leave of absence approved
by the Company.

 

1.16      "Termination for Cause"
means that the Executive's employment with the Company has been or is terminated by the Board because of the Executive's personal
dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform
stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist
order, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive's part shall be considered
"willful" unless the Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief
that the Executive' s action or failure to act was in the best interest of the Company.

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

ARTICLE 2 

PARTICIPATION

 

2.1         Termination of Participation. The Executive's rights
under this Agreement shall

automatically cease and his or her participation
in this Agreement shall automatically terminate, if either of the following events occur: (i) if there is a Termination for Cause;
or (ii) if the Executive's employment with the Company is terminated prior to Normal Retirement Age for reasons other than (1)
Disability (except as set forth in Section 2.2(b)), (2) Change in Control, or (3) a leave of absence approved by the Company. In
the event that the Company decides to maintain the Policy after the Executive's termination of participation in the Agreement,
the Company shall be the direct beneficiary of the entire death proceeds of the Policy.

 

		2.2	Disability and Change in Control.

 

		(a)	Except as otherwise provided in paragraph (b) of this Section 2.2, if the Executive's employment
with the Company is terminated because of the Executive's (1) Disability or (2) within twelve (12) months following a Change in
Control, the Company shall maintain the Policy in full force and effect and, in no event, shall the Company amend, terminate or
otherwise abrogate the Executive's Interest in the Policy. However, the Company may replace the Policy with a policy that provides
comparable death benefits provided under this Agreement.

 

		(b)	Notwithstanding the provisions of paragraph (a) of this Section 2.2, upon the disabled Executive's
gainful employment with an entity other than the Company, the Company shall have no further obligation to the disabled Executive,
and the disabled Executive's rights pursuant to the Agreement shall cease. In the event the disabled Executive's rights are terminated
hereunder and the Company decides to maintain the Policy, the Company shall be the direct beneficiary of the entire death proceeds
of the Policy.

 

2.3         Retirement. If the Executive remains in the continuous
employ of the Company, upon Termination of Employment on or after the Executive's Normal Retirement Age, the Company shall maintain
the Policy in full force and effect and in no event shall the Company amend, terminate or otherwise abrogate the Executive's Interest
in the Policy. However, the Company may replace the Policy with a policy that provides comparable death benefits to cover the benefit
under this Agreement.

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

ARTICLE
3 

POLICY OWNERSHIP/INTERESTS

 

3.1         Executive's Interest. The Executive, or
the Executive's assignee, shall have the right to designate the Beneficiary of an amount of death proceeds equal to $500,000, not
to exceed the greater of (i) Net Death Proceeds or (ii) premiums paid by the Company, subject to:

 

		(a)	Forfeiture of Executive's rights upon termination of
Participation as set forth in Section 2.1;

		(b)	Forfeiture of Executive's rights upon gainful employment following Disability.

		(c)	Termination of the Agreement and the corresponding forfeiture of rights for all Executives or any one Executive in accordance
with Section 9.1 hereof; and

		(d)	Forfeiture of the Executive's rights and interest hereunder that the Company may reasonably consider
necessary to conform with applicable law (including the Sarbanes-Oxley Act of 2002).

 

3.2         Company's
Interest. The Company shall own the Policy and shall have the right to exercise all incidents of ownership except that
the Company shall not sell, surrender or transfer ownership of a Policy so long as the Executive has an interest in the
Policy as described in Section 3.1. However, the Company may replace the Policy with a policy that provides comparable death
benefits to cover the benefit provided under this Agreement. This provision shall not impair the right of the Company,
subject to Article 9, to terminate this Agreement. The Company shall be the beneficiary of the remaining death proceeds of
the Policy after the Executive's Interest is determined according to Section 3.1.

 

ARTICLE 4 

PREMIUMS

 

4.1         Premium
Payment. The Company shall pay all premiums due on all Policies.

 

4.2         Economic
Benefit. The Company shall determine the economic benefit attributable to the Executive based on the amount of the current
term rate for the Executive's age multiplied by the aggregate death benefit payable to the Executive's Beneficiary. The "current
term rate" is the minimum amount required to be imputed under Internal Revenue Notice 2002-8, or any subsequent applicable
authority.

 

4.3         Imputed
Income. The Company shall impute the economic benefit to the Executive on an annual basis, by adding the economic benefit
to the Executive's W-2, or if applicable, Form 1099.

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

ARTICLE 5 

BENEFICIARIES

 

5.1         Beneficiary. The Executive shall
have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under the Agreement to a beneficiary
upon the death of the Executive. The Beneficiary designated under this Agreement may be the same as or different from the Beneficiary
designation under any other Agreement of the Company in which the Executive participates.

 

5.2         Beneficiary
Designation; Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation
Form, and delivering it to the Company or its designated agent. The Executive's beneficiary designation shall be deemed
automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the
marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and
otherwise complying with the terms of the Beneficiary Designation Form and the Company's rules and procedures, as in effect
from time to time. Upon the acceptance by the Company of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be cancelled. The Company s hall be entitled to rely on the last Beneficiary Designation Form filed by
the Executive and accepted by the Company prior to the Executive's death.

 

5.3         Acknowledgment.
No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing
by the Company or its designated agent.

 

5.4         No
Beneficiary Designation. If the Executive dies without a valid designation of beneficiary, or if all designated
Beneficiaries predecease the Executive, then the Executive's surviving spouse shall be the designated Beneficiary. If the
Executive has no surviving spouse, the benefits shall be made payable to the personal representative of the Executive's
estate.

 

5.5         Facility
of Payment. If the Company determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent,
or to a person incapable of handling the disposition of that person's property, the Company may direct payment of such benefit
to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person.
The Company may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the
benefit. Any payment of a benefit shall be a payment for the account of the Executive and the Executive's Beneficiary, as the
case may be, and shall be a complete discharge of any liability under the Agreement for such payment amount.

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

ARTICLE 6 

ASSIGNMENT

 

The Executive may irrevocably
assign without consideration all or part of the Executive's Interest in this Agreement to any person, entity or trust. In the event
the Executive shall transfer all or part of the Executive's Interest, then all or part of the Executive's Interest in this Agreement
shall be vested in the Executive's transferee, who shall be substituted as a party hereunder, and the Executive shall have no further
interest in this Agreement.

 

ARTICLE 7

INSURER

 

The Insurer shall be bound
only by the terms of its given Policy. The Insurer shall not be bound by or deemed to have notice of the provisions of this Agreement.
The Insurer shall have the right to rely on the Company's representations with regard to any definitions, interpretations or Policy
interests as specified under this Agreement.

 

ARTICLE 8

CLAIMS AND REVIEW PROCEDURE

 

8.1         Claims Procedure. The Executive or Beneficiary ("claimant")
who has not received

benefits under the Agreement that he or she believes should be paid
shall make a claim for such benefits as follows:

 

		8.1.1	Initiation - Written Claim. The claimant initiates
a claim by submitting to the Company a written claim for the benefits.

 

		8.1.2	Timing of Company Response. The Company shall
respond to such claimant within 90 days after receiving the claim. If the Company determines that special circumstances require
additional time for processing the claim, the Company can extend the response period by an additional 90 days by notifying the
claimant in writing, prior to the end of the initial 90-day period, that an additional period is required. The notice of extension
must set forth the special circumstances and the date by which the Company expects to render its decision.

 

		8.1.3	Notice of Decision. If the Company denies part
or all of the claim, the Company shall notify the claimant in writing of such denial. The Company shall write the notification
in a manner calculated to be understood by the claimant. The notification shall set forth:

 

		(a)	The specific reasons for the denial;

		(b)	A reference to the specific provisions of the Agreement on which the denial is based;

		(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation
of why it is needed;

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

		(d)	An
explanation of the Agreement's review procedures and the time limits applicable to such procedures; and

		(e)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination
on review.

 

8.2          Review Procedure. If the Company denies part or all
of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows:

 

		8.2.1	Initiation — Written Request. To initiate
the review, the claimant, within 60 days after receiving the Company's notice of denial, must file with the Company a written
request for review.

 

		8.2.2	Additional Submissions — Information Access.
The claimant shall then have the opportunity to submit written comments, documents, records and other information relating
to the claim. The Company shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of,
all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant's claim for
benefits.

 

		8.2.3	Considerations on Review. In considering the review,
the Company shall take into account all materials and information the claimant submits relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit determination.

 

		8.2.4	Timing of Company's Response. The Company shall
respond in writing to such claimant within 60 days after receiving the request for review. If the Company determines that special
circumstances require additional time for processing the claim, the Company can extend the response period by an additional 60
days by notifying the claimant in writing, prior to the end of the initial 60-day period, that an additional period is required.
The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision.

 

		8.2.5	Notice of Decision. The Company shall notify the
claimant in writing of its decision on review. The Company shall write the notification in a manner calculated to be understood
by the claimant. The notification shall set forth:

 

		(a)	The specific reasons for the denial;

		(b)	A reference to the specific provisions of the Agreement on which the denial is based;

		(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to
the claimant's claim for benefits; and

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

		(d)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a).

 

ARTICLE 9 

AMENDMENTS AND TERMINATION

 

9.1          Amendment or Termination of Agreement. Except as
otherwise provided in Sections 2.2 and 2.3, the Company may amend or terminate this Agreement at any time prior to the Executive's
death. Such amendment or termination shall be by written notice to the Executive. In the event that the Company decides to maintain
the Policy after the termination of the Agreement, the Company shall be the direct beneficiary of the entire death proceeds of
the Policy.

 

9.2         Option to Purchase Upon Termination. If the Company
exercises the right to terminate the Agreement, the Company shall not sell, surrender or transfer ownership of a Policy without
first giving the Executive or the Executive's transferee the option to purchase the Policy for a period of sixty (60) days from
written notice of such intention. The purchase price shall be an amount equal to the cash surrender value of the Policy.

 

ARTICLE 10

ADMINISTRATION

 

10.1       Company Duties. This Agreement
shall be administered by the Company which shall consist of the Board, or such committee or persons as the Board may choose. The
Company shall also have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations
for the administration of this Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement,
as may arise in connection with this Agreement.

 

10.2       Agents. In the administration of
this Agreement, the Company may employ agents and delegate to them such administrative duties as it sees fit, (including acting
through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Company.

 

10.3       Binding Effect of Decisions. The
decision or action of the Company with respect to any question arising out of or in connection with the administration, interpretation
and application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding
upon all persons having any interest in this Agreement.

 

10.4       Indemnity of Company. The Company
shall indemnify and hold harmless the members of the Company against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Company
or any of its members.

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

ARTICLE 11

MISCELLANEOUS

 

11.1       Binding Effect. This Agreement shall bind the Executive
and the Company, their beneficiaries, survivors, executors, administrators and transferees and any Beneficiary.

 

11.2      No Guarantee of Employment. This
Agreement is not an employment policy or contract. It does not give the Executive the right to remain an Executive of the Company,
nor does it interfere with the Company's right to discharge the Executive. It also does not require the Executive to remain an
Executive nor interfere with the Executive's right to terminate employment at any time.

 

11.3      Applicable Law. The Agreement and
all rights hereunder shall be governed by and construed according to the laws of the State of MARYLAND, except to the extent preempted
by the laws of the United States of America.

 

11.4      Reorganization. The Company shall
not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company,
firm or person unless such succeeding or continuing company, firm or person agrees to assume and discharge the obligations of the
Company under this Agreement. Upon the occurrence of such event, the term "Company" as used in this Agreement shall be
deemed to refer to the successor or survivor company.

 

11.5      Notice. Any notice or filing required or
permitted to be given to the Company under this Agreement shall be sufficient if in writing and hand-delivered, or sent by registered
or certified mail, to the address below:

 

	 
	 
	 
	 

 

Such notice shall be deemed
given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration
or certification.

 

Any notice or filing required or permitted
to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the
last known address of the Executive.

 

11.6      Entire Agreement. This Agreement,
along with the Executive's Beneficiary Designation Form constitute the entire agreement between the Company and the Executive as
to the subject matter hereof. No rights are granted to the Executive under this Agreement other than those specifically set forth
herein.

 

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COMMUNITY BANK OF TRI-COUNTY
Supplemental Life Insurance Agreement

    

 

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

 

	EXECUTIVE:	 	COMMUNITY BANK OF TRI-COUNTY
	 	 	 
	/s/ Gregory C. Cockerham	 	By: /s/ Michael L. Middleton
	GREGORY C. COCKERHAM	 	Title: President

 

    	 	 10Exhibit 10.50

 

EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT (the “Agreement”) is entered into this 20th day of April, 2007, by and between Community Bank
of Tri-County, with its principal place of business at 3035 Leonardtown Road, Waldorf, Maryland 20601 (the “Bank”),
James DiMisa (the “Employee”), and Tri-County Financial Corporation (the “Company”), solely as guarantor
of the Bank’s obligations hereunder, and is effective as of the date hereof (the “Effective Date”).

 

WHEREAS,
the parties desire by this writing to set forth the continuing employment relationship between the Bank and the Employee.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, the Bank and the Employee hereby agree as follows:

 

1.           EMPLOYMENT.
The Employee shall serve the Bank as Executive Vice President. In such position, the Employee shall have the duties, responsibilities,
functions and authority determined and designated from time to time by the Board of Directors (the “Board”) and the
Chief Executive Officer. The Employee shall render such administrative and management services to the Bank and its affiliates as
are customarily performed by persons in a similar executive capacity.

 

2.           EFFECTIVE
DATE AND TERM. The Bank agrees to employ the Employee for an initial period of one (1) year, beginning on the Effective
Date and ending on the day before the first (1st) anniversary of the Effective Date, and during the period of any additional extensions
described below (the “Term of Employment”). The parties intend that, at any point in time during the Employee’s
employment hereunder, the then-remaining Term of Employment shall be one (1) year. On the day after the Effective Date and on each
day thereafter, the Term of Employment shall extend by one day, so that, on any date, the term of Employment will expire on the
day before the first (1st) anniversary of such date. These extensions shall continue unless (a) the Bank notifies the
Employee that it has elected to discontinue the extensions; (b) the Employee notifies the Bank of his election to discontinue the
extensions; or (c) the Employee’s employment with the Bank is terminated, whether by resignation, discharge or otherwise.
On the earlier of (i) the date on which such notice is given; or (ii) the effective date of a termination of Employee’s Employment
with the Bank, the Term of Employment will convert to a fixed period of one (1) year ending on the day before the first (1st) anniversary
of such date (provided, however, that subject to any rights of the Employee under this Agreement, the Term of Employment shall
terminate on such earlier date as may be specifically provided in this Agreement in the event of the Employee’s death, voluntary
termination, Disability or termination for Cause). The last day of the Agreement term, as extended in accordance with this Section
2, is referred to in this Agreement as the “Expiration Date.”

 

    	 	 	 

     

    

 

3.           COMPENSATION AND
BENEFITS.

 

3.1           BASE
SALARY. During the Term of Employment, the Bank agrees to pay the Employee base salary at the rate of $125,000 per
annum, subject to increase from time to time in accordance with the usual practices of the Bank with respect to its review of
compensation for senior executives. Any increase in the Employee’s base salary shall become the “base salary”
for purposes of this Agreement. The Employee’s base salary shall be payable in periodic installments in accordance with
the Bank’s usual practice.

 

3.2           EMPLOYEE
BENEFITS. The Employee shall also be entitled to participate in any and all employee benefit plans, medical insurance
plans, disability income plans, retirement plans, bonus incentive plans and other benefit plans from time to time in effect for
senior executives of the Bank. Such participation shall be subject to (a) the terms of the applicable plan documents, (b) generally
applicable policies of the Bank and (c) the discretion of the Board or any administrative or other committee provided for in, or
contemplated by, such plans.

 

3.3           INCENTIVE
COMPENSATION. The Employee shall be eligible to participate in any incentive compensation or bonus programs sponsored
by the Bank on such terms as the Board may establish for the Employee’s participation.

 

3.4           BUSINESS
EXPENSES. The Bank shall pay, or reimburse, the Employee for reasonable travel and other business expenses incurred
by the Employee in the performance of the Employee’s duties and responsibilities, subject to such reasonable requirements
with respect to substantiation and documentation as may be specified by the Bank.

 

3.5           LEAVE.
The Employee shall be entitled to leave (vacation, sick and personal) in accordance with the Bank’s standard policies for
senior executives. Further, the Board, in its discretion, may grant to the Employee a leave or leaves of absence, with or without
pay, at such time or times and upon such terms and conditions as the Board, in its discretion, may determine.

 

3.6           OTHER
EMPLOYEE BENEFITS. The Employee shall be entitled to participate in any compensatory plans, arrangements or programs
the Bank makes available to its senior executive officers, including, but not limited to, stock compensation programs, supplemental
retirement arrangements, or executive health or life insurance programs, subject to, and on a basis consistent with, the terms
and conditions of such plans, arrangements or programs.

 

3.7           GENERAL.
The Employee’s participation in any plans, arrangements or programs currently in effect or made available in the future
shall not be deemed to be in lieu of other compensation to which the Employee is entitled as described under this Agreement.

 

4.           EXTENT
OF SERVICE. During the Term of Employment, the Employee shall devote his full time, best efforts and business judgment,
skills and knowledge to the advancement of the Bank’s interests and to the discharge of his responsibilities under this Agreement;
provided, however, that the Employee may:

 

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(a)           invest
personal assets in such form or manner as shall not require any material services on the Employee’s part in the operations
or affairs of the entities in which such investments are made, provided that the Employee may not own any interest in an entity
that competes with the Bank or any affiliate (other than up to 4.9% of the outstanding voting stock of such entity that is a publicly-traded
entity); or

 

(b)           serve
on the board of directors of any company not in competition with the Bank or any affiliate, provided that the Employee shall not
render any material services with respect to the operations or affairs of any such company; or

 

(c)           engage
in religious, charitable or other community or non-profit activities which do not impair the Employee’s ability to fulfill
his duties and responsibilities under this Agreement.

 

5.           DEATH.
In the event of the Employee’s death during the Term of Employment, the Employee’s employment (and the Term of
Employment) shall terminate on the date of death. The Bank shall pay to the Employee’s beneficiary, or estate, (a) any compensation
due the Employee through the last day of the calendar month in which death occurred, plus (b) any other compensation or benefits
as may be provided in accordance with the terms and provisions of any applicable plans and programs of the Bank in which the Employee
participated as of the date of death.

 

		6.	DISCHARGE FOR CAUSE.

 

6.1           NOTICE
AND DETERMINATION OF CAUSE. The Bank may terminate the Employee’s employment at any time during the Term of Employment
for Cause, as defined below. Such termination shall be deemed to have occurred for Cause only if:

 

(a)           The Board,
by a separate affirmative vote of at least three-fourths (3/4) of the entire membership, determines that the Employee has: (i)
engaged in acts of personal dishonesty which have resulted in loss to the Bank or one of its affiliates; (ii) intentionally failed
to perform stated duties; (iii) committed a willful violation of any law, rule, regulation (other than traffic violations or similar
offenses); (iv) become subject to the entry of a final cease and desist order which results in substantial loss to the Bank or
one of its affiliates; (v) been convicted of a crime or act involving moral turpitude; (vi) willfully breached the Bank’s
or the Company’s code of conduct and business ethics; (vii) been disqualified or barred by any governmental or self-regulatory
authority from serving in the Employee’s then-current employment capacity or (viii) willfully attempted to obstruct or failed
to cooperate with any investigation authorized by the Board or any governmental or self-regulatory entity. No act or failure to
act on the part of the Employee shall be considered “willful” unless it is done, or omitted to be done, by the Employee
in bad faith or without reasonable belief that the Employee’s action or omission was in the best interests of the Bank. Any
act or failure to act that is based upon authority given pursuant to a resolution duly adopted by the Board of Directors, or upon
the advice of legal counsel for the Bank, shall be conclusively presumed to be done, or omitted to be done, by the Employee in
good faith and in the best interests of the Bank and its affiliates; and

 

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(b)           At least
ten (10) days prior to the vote contemplated by Section 6.1(a), the Bank has provided the Employee with notice of its intent to
discharge the Employee for Cause, detailing with particularity the facts and circumstances which are alleged to constitute Cause
(a “Notice of Intent to Discharge”); and

 

(c)           After
giving the Employee Notice of Intent to Discharge and before taking the vote contemplated by Section 6.1(a), the Employee is afforded
a reasonable opportunity to make both written and oral presentations before the Board for the purpose of refuting the alleged grounds
for Cause for discharge; and

 

(d)           After
the vote contemplated by Section 6.1(a), the Bank has furnished to the Employee a notice of termination which specifies the effective
date of the Employee’s termination of employment (which shall not be earlier than the date on which such notice is deemed
given), and include a copy of a resolution or resolutions adopted by the Board of Directors authorizing the termination of the
Employee for Cause and stating with particularity the facts and circumstances found to constitute Cause for discharge (the “Final
Discharge Notice”).

 

6.2           SUSPENSION;
FINAL DISCHARGE. Following the provision of Notice of Intent to Discharge, the Bank may temporarily suspend the
Employee’s duties and authority and, in such event, may also suspend the payment of salary and other cash compensation (but
not participation in retirement, insurance and other employee benefit plans). If the Employee is discharged for Cause, all payments
withheld during the suspension period shall be deemed forfeited and shall not be payable to the Employee. If the Bank does not
give a Final Discharge Notice to the Employee within one hundred and twenty (120) days after giving him Notice of Intent to Discharge,
the Notice of Intent to Discharge shall be deemed withdrawn and any future action to discharge the Employee for Cause shall require
the Bank to give the Employee a new Notice of Intent to Discharge.

 

6.3           EFFECT
OF TERMINATION FOR CAUSE. In the event of termination pursuant to this Section 6, the Term of Employment shall
terminate and the Bank shall pay to the Employee an amount equal to the sum of (a) base salary or other compensation earned through
the date of termination, plus (b) any other compensation or vested benefits as may be provided in accordance with the terms and
provisions of any applicable plans and programs of the Bank. All other obligations of the Bank shall terminate as of the date of
termination.

 

7.           DISABILITY.
The Bank may terminate the Employee’s employment (and the Term of Employment) after having established the Employee’s
Disability. For purposes of this Agreement, “Disability” means a physical or mental infirmity that impairs the Employee’s
ability to substantially perform his duties under this Agreement and results in the Employee becoming eligible for long-term disability
benefits under the Bank’s long-term disability plan (or, if the Bank has no such plan in effect, that impairs the Employee’s
ability to substantially perform his full-time duties under this Agreement for a period of one hundred eighty (180) consecutive
days). The Employee shall be entitled to the compensation and benefits provided for under this Agreement for (a) any period during
the Term of Employment and prior to the establishment of the Employee’s Disability during which the Employee is unable to
work due to physical or mental infirmity, or (b) any period of Disability which is prior to the Employee’s termination of
employment pursuant to this Section 7.

 

    	 	 4	 

     

    

 

8.           TERMINATION
WITHOUT CAUSE. The Board may, by written notice to the Employee, immediately terminate his employment at any time for
a reason other than Cause, in which event the Employee shall be entitled to receive the termination payment set forth in Section
10.2 of this Agreement, payable in one lump sum within ten (10) days of termination. The Bank shall also continue to provide the
Employee with benefit continuation as set forth in Section 10.3 of this Agreement.

 

9.           VOLUNTARY
TERMINATION BY EMPLOYEE. Subject to Section 11 hereof, the Employee may voluntarily terminate employment with the Bank
during the term of this Agreement, upon at least 60 days’ prior written notice, in which case the Term of Employment shall
end and the Bank shall pay to the Employee an amount equal to the (a) base salary or other compensation earned through the date
of termination plus (b) any other compensation and benefits as may be provided in accordance with the terms and provisions of any
applicable benefit plans and programs of the Bank.

 

10.         CHANGE IN CONTROL.

 

10.1         DEFINITION
OF CHANGE IN CONTROL. For purposes of this Agreement, a “Change in Control” shall mean the occurrence
of any of the following events:

 

(a)           individuals
who, on the date of this Agreement, constitute the Board of Directors of the Company (the “Incumbent Directors”) cease
for any reason to constitute at least half of the Board of Directors of the Company, provided that any person becoming a director
subsequent to such time, whose election or nomination for election was approved by a vote of at least two-thirds (2/3) of the Incumbent
Directors then on the Board of Directors of the Company (either by a specific vote or by approval of the proxy statement of the
Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent
Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual
or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies
or consents by or on behalf of any person other than the Board of Directors of the Company shall be deemed to be an Incumbent Director;

 

(b)           any “person”
(as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) and as used
in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power
of the Company’s then outstanding securities eligible to vote for the election of the Board of Directors of the Company (the
“Company Voting Securities”); provided, however, that the event described in this paragraph (b) shall not be deemed
to be a Change in Control by virtue of any of the following acquisitions: (A) by the Company or any subsidiary, (B) by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary, (C) by any underwriter temporarily holding
securities pursuant to an offering of such securities or (D) a transaction (other than one described in (c) below) in which
Company Voting Securities are acquired from the Company, if a majority of the Incumbent Directors approve a resolution providing
expressly that the acquisition pursuant to this clause (D) does not constitute a Change in Control under this paragraph (b);

 

    	 	 5	 

     

    

 

(c)           the consummation
of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its
subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities
in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) at least
50% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”),
or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting
securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by the
Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented
by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power
among (and only among) the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities
among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or
related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner,
directly or indirectly, of 25% or more of the total voting power of the outstanding voting securities eligible to elect directors
of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least 50% of the members
of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following
the consummation of the Business Combination were Incumbent Directors at the time of the Company Board’s approval of the
execution of the initial agreement providing for such Business Combination; or

 

(d)           the stockholders
of the Company approve a plan of complete liquidation or dissolution of the Company or a sale of all or substantially all of the
Company’s assets.

 

Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because any person acquires beneficial ownership of more
than 25% of Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces
the number of Company Voting Securities outstanding; provided, that if after such acquisition by the Company such person becomes
the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, a Change in Control of the Company shall then occur.

 

    	 	 6	 

     

    

 

10.2         TERMINATION
PAYMENT. Notwithstanding any provision herein to the contrary, if the Bank (i) terminates the Employee’s employment
pursuant to Section 8 of this Agreement or (ii) terminates the Employee’s employment under this Agreement without the Employee’s
prior written consent and for a reason other than Cause, in connection with or within twelve (12) months after a Change in Control,
then the Employee shall be paid an unreduced lump sum severance benefit equal to the sum of the following items:

 

(a)            One (1)
times the Employee’s annual base salary (as provided for in Section 3 of this Agreement) at the rate in effect on the date
of the Employee’s termination of employment (including any amount contributed by the Bank on the Employee’s behalf
pursuant to a salary reduction agreement and which is not included in the Employee’s gross income under Sections 125, 132(f)
or 402(e)(3) of the Internal Revenue Code of 1986, as amended); and

 

(b)            One (1)
times the most recent annual incentive compensation payment made to the Employee (as provided for in Section 3 of this Agreement).

 

The severance benefit payment
under this Section 10.2 shall be made to the Employee in one lump sum within ten (10) days of the Employee’s termination
of employment.

 

10.3         BENEFIT
CONTINUATION. Employee shall also be entitled to continuation of the medical, dental and life insurance benefits
existing on the date of termination at the level in effect, and at the same out-of-pocket premium cost to the Employee, as on the
date of termination for a period of twelve (12) months following the Employee’s termination of employment. If the benefits
under any benefit plan or program continued pursuant to this Section 10.3 may not be provided because the Employee is no longer
an employee of the Bank or an affiliate, the Bank shall pay or provide for coverage on a comparable basis for the Employee and,
where applicable, the Employee’s dependents.

 

10.4         OTHER
TERMINATION. Notwithstanding any other provision of this Agreement to the contrary, the Employee may voluntarily terminate
employment under this Agreement within twelve (12) months following a Change in Control of the Bank or Corporation, and the Employee
shall be entitled to receive the payments and benefit continuation described in Sections 10.2 and 10.3 of this Agreement, upon
the occurrence of any of the following events, or within ninety (90) days thereafter, which have not been consented to in advance
by the Employee in writing: (a) the requirement that the Employee move his primary personal residence, or perform his principal
executive functions, more than thirty-five (35) miles from his primary office as of the date of the Change in Control; (b) a material
reduction in the Employee’s base salary as in effect on the date of the Change in Control or as the same may be increased
from time to time; (c) the failure of the Bank to continue to provide the Employee with compensation and benefits provided for
under this Agreement, as the same may be increased from time to time, or with benefits substantially similar to those provided
to him under any of the employee benefit plans in which the Employee now or hereafter becomes a participant, or the taking of any
action by the Bank which would directly or indirectly reduce any such benefits or deprive the Employee of any material fringe benefit
provided to him at the time of the Change in Control; (d) the assignment to the Employee of duties and responsibilities materially
different from those normally associated with his position as referenced in Section l; (e) a failure to elect or reelect the Employee
to the Board if the Employee is serving on the Board on the date of the Change in Control; or (f) a material diminution or reduction
in the Employee’s responsibilities or authority (including reporting responsibilities) in connection with his employment
with the Bank.

 

    	 	 7	 

     

    

 

11.         LIMITATION
OF BENEFITS UNDER CERTAIN CIRCUMSTANCES. If the payments and benefits provided pursuant to Section 10 of this
Agreement, either alone or together with other payments and benefits the Employee has the right to receive from the Bank, would
constitute a “parachute payment” under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
the payments and benefits pursuant to Section 10 shall be reduced or revised, in the manner determined by the Employee, by the
amount, if any, which is the minimum necessary to result in no portion of the payments and benefits under Section 10 being non-deductible
to the Bank pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. The Bank’s
independent public accountants will determine any reduction in the payments and benefits to be made pursuant to Section 10; the
Bank will pay for the accountant’s opinion. If the Bank and/or the Employee do not agree with the accountant’s opinion,
the Bank will pay to the Employee the maximum amount of payments and benefits pursuant to Section 10, as selected by the Employee,
that the opinion indicates have a high probability of not causing any of the payments and benefits to be non-deductible to the
Bank and subject to the excise tax imposed under Section 4999 of the Code. The Bank may also request, and the Employee has the
right to demand that the Bank request, a ruling from the IRS as to whether the disputed payments and benefits pursuant to Section
10 have such tax consequences. The Bank will promptly prepare and file the request for a ruling from the IRS, but in no event will
the Bank make this filing later than thirty (30) days from the date of the accountant’s opinion referred to above. The request
will be subject to the Employee’s approval prior to filing; the Employee shall not unreasonably withhold such approval. The
Bank and the Employee agree to be bound by any ruling received from the IRS and to make appropriate payments to each other to reflect
any IRS rulings, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. 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 Section 10 hereof, or a reduction in the payments and benefits specified in Section
10, below zero.

 

12.         NO
MITIGATION. In the event of any termination of employment under this Agreement, the Employee shall be under no obligation
to seek other employment or to otherwise mitigate damages, and there shall be no offset against any amounts due to the Employee
under this Agreement for any reason, including, without limitation, on account of any remuneration attributable to subsequent employment.
Any amounts due under this Agreement are in the nature of severance payments or liquidated damages, or both, and are not in the
nature of a penalty.

 

13.         MISCELLANEOUS PROVISIONS.

 

13.1         CONFLICTING
AGREEMENTS. The Employee hereby represents and warrants that the execution of this Agreement and the performance of
the Employee’s obligations hereunder will not breach or be in conflict with any other agreement to which the Employee is
a party or is bound, and that the Employee is not now subject to any covenants against competition or similar covenants which would
affect the performance of the Employee’s obligations under this Agreement.

 

    	 	 8	 

     

    

 

13.2         WITHHOLDING.
All payments made under this Agreement shall be net of any tax or other amounts required to be withheld under applicable
law.

 

13.3         ARBITRATION.
The Bank and the Employee agree that any claim, dispute or controversy arising under or in connection with this Agreement (including,
without limitation, any such claim, dispute or controversy arising under any federal, state or local statute, regulation or ordinance
or any of the Bank’s employee benefit plans, policies or programs) shall be resolved solely and exclusively by binding arbitration.
The arbitration shall be held in the County of Charles, Maryland (or at such other location as shall be mutually agreed upon by
the parties). The arbitration shall be conducted in accordance with the Commercial Arbitration Rules (the “Rules”)
of the American Arbitration Association (the “AAA”) in effect at the time of the arbitration, except that the arbitrator
shall be selected by alternatively striking from a list of five arbitrators supplied by the AAA. All fees and expenses of the arbitration,
excluding a transcript, shall be borne equally by the parties. Each party will pay for the fees and expenses of its own attorneys,
experts, witnesses, and preparation and presentation of proofs and post-hearing briefs (unless the Employee prevails on a claim
for which attorney’s fees are recoverable under the Agreement). Any action to enforce or vacate the arbitrator’s award
shall be governed by the Federal Arbitration Act, if applicable, and otherwise by applicable state law. If either the Bank or the
Employee pursues any claim, dispute or controversy against the other in a legal proceeding, other than the arbitration provided
for herein, the responding party shall be entitled to dismissal or injunctive relief regarding such action and recovery of all
costs, losses and attorneys’ fees related to such action. Notwithstanding the provisions of this paragraph, either party
may seek injunctive relief in a court of competent jurisdiction, whether or not the case is then pending before the panel of arbitrators.
Following the court’s determination of the injunction issue, the case shall continue in arbitration as provided herein.

 

13.4         INDEMNIFICATION
FOR ATTORNEYS’ FEES. In the event any dispute or controversy arising under or in connection with the Employee’s
termination of employment or this Agreement is resolved in favor of the Employee, whether by judgment, arbitration or settlement,
the Employee shall be entitled to the payment of: (i) all legal fees and expenses incurred by the Employee in resolving such dispute
or controversy, and (ii) any back-pay, including salary, bonuses and any other cash compensation, fringe benefits and any compensation
and benefits due to the Employee under this Agreement.

 

13.5         ASSIGNMENT;
SUCCESSORS AND ASSIGNS, ETC.

 

(a)           This Agreement
is personal to the Employee and shall not be assignable by the Employee without the prior written consent of the Bank, other than
by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee’s
legal representatives.

 

(b)           This Agreement
shall inure to the benefit of and be binding upon the Bank and its successors and permitted assigns.

 

    	 	 9	 

     

    

 

(c)           The Bank
may not assign this Agreement or any interest herein without the prior written consent of the Employee and, without such consent,
any attempted transfer or assignment shall be null and void and of no effect; provided, however, that the Bank shall require any
successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Bank expressly to assume and to agree to perform this Agreement in the same manner and to the same extent
that the Bank would have been required to perform it if no such succession had taken place. As used in this Agreement, “the
Bank” shall mean both the Bank and the Company, as defined above, and any successor that assumes and agrees to perform this
Agreement, by operation of law or otherwise.

 

13.6         ENFORCEABILITY.
If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than
those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

13.7         REDUCTIONS;
REGULATORY REQUIREMENTS. Notwithstanding anything to the contrary contained in this Agreement, any and all payments
and benefits to be provided to the Employee under this Agreement are subject to reduction to the extent required by applicable
statutes, regulations, rules and directives of federal, state and other governmental and regulatory bodies having jurisdiction
over the Bank and its affiliates. The Employee is aware and acknowledges that the Federal Deposit Insurance Corporation has the
power to preclude the Bank or its affiliates from making payments to the Employee under this Agreement under certain circumstances.
The Employee agrees that neither the Bank nor its affiliates shall be deemed to be in breach of this Agreement if it is precluded
from making a payment otherwise payable hereunder by reason of regulatory requirements binding on the Bank or its affiliates, as
the case may be.

 

13.8         WAIVER.
No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the waiving party. The failure
of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of
this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.

 

13.9         NOTICES.
Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing
and delivered in person or sent by registered or certified mail, postage prepaid, and addressed to the Employee at the Employee’s
last known address on the books of the Bank or, in the case of the Bank, at its main office, attention of the Chief Executive Officer
of the Board of Directors.

 

13.10       AMENDMENT.
This Agreement may be amended or modified only by a written instrument signed by the Employee and a duly authorized representative
of the Bank.

 

13.11      NO
EFFECT ON LENGTH OF SERVICE. Nothing in this Agreement shall be deemed to prohibit the Bank from terminating the Employee’s
employment before the end of the Term of Employment with or without notice for any reason. This Agreement shall determine the relative
rights and obligations of the Bank and the Employee in the event of any such termination. In addition, nothing in this Agreement
shall require the termination of the Employee’s employment at the expiration of the Term of Employment. Any continuation
of the Employee’s employment beyond the expiration of the Term of Employment shall be on an “at-will” basis,
unless the parties agree otherwise.

 

    	 	 10	 

     

    

 

13.12      SOURCE OF PAYMENTS. The Bank shall make in a timely manner all payments provided for under this Agreement in cash or
check from its general funds. The Company, however, unconditionally guarantees payment and the provision of all amounts and benefits
due to the Employee under this Agreement. If the Bank does not timely pay or provide such amounts and benefits, the Company shall
pay or provide such amounts and benefits.

 

13.13       ENTIRE
AGREEMENT; EFFECT ON PRIOR AGREEMENTS. This Agreement constitutes the entire agreement between the parties pertaining
to its subject matter and supersedes all prior and contemporaneous agreements, understandings, negotiations, prior draft agreements,
and discussions of the parties, whether oral or written.

 

13.14       COUNTERPARTS
AND FACSIMILE SIGNATURES. This Agreement may be executed in two or more counterparts, all of which shall be considered
one and the same agreement and shall become effective when one or more counterparts have been signed by each party and delivered
to the other party, it being understood that all parties need not sign the same counterpart. This Agreement may be executed by
facsimile signatures.

 

13.15       GOVERNING
LAW. This is a Maryland contract and shall be construed under and be governed in all respects by the laws of the State
of Maryland, without giving effect to its conflicts of law principles.

 

14.         EFFECT
OF CODE SECTION 409A. Notwithstanding anything in this Agreement to the contrary, if the Bank in good faith determines,
as of the effective date of the Employee’s termination of employment, that amounts payable to the Employee hereunder, are
required to be suspended or delayed for six months in order to satisfy the requirements of Section 409A of the Code, then the
Bank will so advise the Employee, and any such payments shall be suspended and accrued for six months, whereupon they shall be
paid to the Employee in a lump sum (together with interest thereon at the then-prevailing prime rate). The Employee agrees that
the Bank shall be deemed to be in breach of this Agreement if it delays making a payment otherwise payable hereunder by reason
of Section 409A.

 

    	 	 11	 

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above the written.

 

	ATTEST:	 	COMMUNITY BANK OF TRI-COUNTY
	 	 	 
	/s/ Diane Deskins	 	/s/ Michael L. Middleton
	 	 	Michael L. Middleton
	 	 	President
	 	 	 
	ATTEST:	 	TRI-COUNTY FINANCIAL CORPORATION (As Guarantor)
	 	 	 
	/s/ Diane Deskins	 	/s/ Michael L. Middleton
	 	 	Michael L. Middleton
	 	 	President
	 	 	 
	WITNESS:	 	EMPLOYEE:
	 	 	 
	/s/ Diane Deskins	 	/s/ James DiMisa
	 	 	James DiMisa

 

    	 	 12	 

     

    

 

Amendment 

to the

Employment Agreement

 

This Amendment to the Employment Agreement is
entered into as of November 24, 2008, by and between Community Bank of Tri-County (the “Bank”) and Tri-County
Financial Corporation (as guarantor) and James DiMisa (the “Employee”).

 

WHEREAS, the Employee is currently employed
as an Executive Vice President of the Bank;

 

WHEREAS, the Employee and the Bank previously
entered into an Employment Agreement dated [date] (the “Employment Agreement”); and

 

WHEREAS, the parties to the Employment
Agreement desire to amend the Employment Agreement to increase the severance benefit payable pursuant to the terms of the Employment
Agreement.

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree to amend the Employment Agreement as follows:

 

1.           Section 10.2 is deleted in its entirety and replaced with
the following new Section 10.2 to read as follows:

 

10.2        TERMINATION
PAYMENT. Notwithstanding any provision herein to the contrary, if the Bank (i) terminates the Employee’s employment
pursuant to Section 8 of this Agreement or (ii) terminates the Employee’s employment under this Agreement without the Employee’s
prior written consent and for a reason other than Cause, in connection with or within twelve (12) months after a Change in Control,
then the Employee shall be paid an unreduced lump sum severance benefit equal to the sum of the following items:

 

(a)           Two (2)
times the Employee’s annual base salary (as provided for in Section 3 of this Agreement) at the rate in effect on the date
of the Employee’s termination of employment (including any amount contributed by the Bank on the Employee’s behalf
pursuant to a salary reduction agreement and which is not included in the Employee’s gross income under Sections 125, 132(f)
or 402(e)(3) of the Internal Revenue Code of 1986, as amended); and

 

    	 	 13	 

     

    

 

(b)           Two (2)
times the most recent annual incentive compensation payment made to the Employee (as provided for in Section 3 of this Agreement).

 

The severance
benefit payment under this Section 10.2 shall be made to the Employee in one lump sum within ten (10) days of the Employee’s
termination of employment.

 

IN WITNESS WHEREOF, the parties have
duly executed and delivered this Amendment to the Employment Agreement, or have caused this Amendment to the Employment Agreement
to be duly executed and delivered in their name and on their behalf, as of the day and year first above written.

 

	COMMUNITY BANK TRI-COUNTY	 
	 	 	 
	By: 	/s/ Michael L. Middleton	 
	 	 	 
	Title:  	President	 
	 	 	 
	TRI-COUNTY FINANCIAL CORPORATION	 
	 	 	 
	By:  	/s/ Michael L. Middleton	 
	 	 	 
	Title: 	President	 

 

	EMPLOYEE	 
	 	 
	/s/ James F. Di Misa	 
	James DiMisa	 

 

    	 	 14	 

     

    

 

Second Amendment

Employment Agreement

 

THIS AMENDMENT, made
and entered into as of the 23rd day of April, 2013, by and between Community Bank of Tri-County (the "Bank"),
James DiMisa (the "Employee") and Tri-County Financial Corporation (the "Company"), solely as guarantor of
the Bank's obligations under the employment agreement entered into by the parties.

 

WHEREAS, the Employee,
the Bank and the Company entered into an amended and restated employment agreement, dated as of April 20, 2007, (the "Agreement");
and

 

WHEREAS, the Employee,
the Bank and the Company desire to amend the Agreement to make certain changes to the potential severance obligations under the
Agreement and to reflect certain other changes; and

 

WHEREAS, Section
13.1 0 of the Agreement provides that the parties may amend the Agreement by a written instrument.           

 

ACCORDINGLY, the
Agreement is hereby amended, effective as of the date first set forth above as follows:

 

First Change

 

Section 2 of the Agreement is deleted in its
entirety and replaced with the following new Section 2:

 

"2.  EFFECTIVE DATE AND TERM. The
Bank agrees to employ the Employee for an initial period of three (3) years, beginning on the Effective Date and ending on the
day before the third (3rd) anniversary of the Effective Date, and during the period of any additional extensions described below
(the "Term of Employment"). The parties intend that, at any point in time during the Employee's employment hereunder,
the then-remaining Term of Employment shall be three (3) years. On the day after the Effective Date and on each day thereafter,
the Term of Employment shall extend by one day, so that, on any date, the term of Employment will expire on the day before the
third (3rd) anniversary of such date. These extensions shall continue unless (a) the Bank notifies the Employee that it has elected
to discontinue the extensions; (b) the Employee notifies the Bank of the employee's election to discontinue the extensions; or
(c) the Employee's employment with the Bank is terminated, whether by resignation, discharge or otherwise. On the earlier of (i)
the date on which such notice is given; or (ii) the effective date of a termination of Employee's Employment with the Bank, the
Term of Employment will convert to a fixed period of three (3) years ending on the day before the third (3rd) anniversary of such
date (provided, however, that subject to any rights of the Employee under this Agreement, the Term of Employment shall terminate
on such earlier date as may be specifically provided in this Agreement in the event of the Employee's death, voluntary termination,
Disability or termination for Cause). The last day of the Agreement term, as extended in accordance with this Section 2, is referred
to in this Agreement as the 'Expiration Date."'

 

    	 	 15	 

     

    

 

Second Change

 

Section 10.3 of the Agreement is deleted in
its entirety and replaced with the following new Section 10.3:

 

"10.3 BENEFIT CONTINUATION. Employee
shall also be entitled to continuation of the medical, dental and life insurance benefits existing on the date of termination at
the level in effect, and at the same out-of-pocket premium cost to the Employee, as on the date of termination for a period of
thirty-six (36) months following the Employee's termination of employment. If the benefits under any benefit plan or program continued
pursuant to this Section 10.3 may not be provided because the Employee is no longer an employee of the Bank or an affiliate, the
Bank shall pay or provide for coverage on a comparable basis for the Employee and, where applicable, the Employee's dependents."

 

Third Change

 

Section 11 of the Agreement amended by deleting
the first three sentences thereof and replacing them with the following new language:

 

"If the payments and benefits provided
pursuant to Section 10 of this Agreement, either alone or together with other payments and benefits the Employee has the right
to receive from the Bank, would constitute a "parachute payment" under Section 280G of the Internal Revenue Code of 1986,
as amended (the "Code"), the payments and benefits pursuant to Section 10 shall be reduced by the amount, if any, which
is the minimum necessary to result in no portion of the payments and benefits under Section 10 being non-deductible to the Bank
pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. If such a reduction
is necessary and none of the payments or benefits constitutes a "deferral of compensation" within the meaning of and
subject to Section 409A of the Code, then the reduction shall occur in a manner the Employee elects in writing prior to the date
of payment. If the payments or benefits constitute a deferral of compensation or if the Employee fails to make an election pursuant
to the preceding sentence, then the payments and/or benefits to be reduced will be determined in a manner which has the least economic
cost to the Employee. The Bank's independent public accountants will determine any reduction in the payments and benefits to be
made pursuant to Section 10; the Bank will pay for the accountant's opinion. If the Bank and/or the Employee do not agree with
the accountant's opinion, the Bank will pay to the Employee the maximum amount of payments and benefits pursuant to Section 10
(as selected by the Employee if the payments and benefits do not constitute a deferral of compensation) that the opinion indicates
have a high probability of not causing any of the payments and benefits to be non-deductible to the Bank and subject to the excise
tax imposed under Section 4999 of the Code."

 

    	 	 16	 

     

    

 

IN WITNESS WHEREOF, the parties hereto
each acknowledge that each has carefully read this amendment to the Agreement and executed the original on the date indicated.

 

	 	 	COMMUNITY BANK OF TRI-COUNTY
	 	 	 
	/s/Christy Lombardi	 	/s/ William Pasenelli
	Witness	 	For the Bank
	 	 	 
	4/23/13	 	 
	Date	 	 
	 	 	 
	 	 	TRI-COUNTY FINANCIAL CORPORATION
	 	 	 
	/s/Christy Lombardi	 	/s/ William Pasenelli
	Witness	 	For the Company
	 	 	 
	4/23/13	 	 
	Date	 	 
	 	 	EMPLOYEE
	 	 	 
	/s/Christy Lombardi	 	/s/ James DiMisa
	Witness	 	For the Bank
	 	 	 
	4/23/13	 	 

Date

 

    	 	 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}]]