Document:

Exhibit 4.1: Form
of Stock Option Agreement

 

    	 

    	 

    

  

FORM OF

 

STOCK OPTION AWARD AGREEMENT

FOR THE COMMUNITY FINANCIAL CORPORATION

2015 EQUITY COMPENSATION PLAN

 

This Stock Option Grant is awarded to _______________
(the “Participant”) by The Community Financial Corporation (the “Company”) as of __________________ (the
“Grant Date”), the date the Committee of the Board of Directors of the Company (the “Committee”) granted
the Participant the right and option to purchase ________________Shares pursuant to The Community Financial Corporation 2015
Equity Compensation Plan (the “2015 Plan”), subject to the terms and conditions of the 2015 Plan and this Award
Agreement:

 

	Type of Option(s):	 	___   Incentive Stock Option (ISO)
	 	 	____   Non-Statutory Stock Option (NSO)
	Shares Subject to the ISO Portion of this Stock Option Award:	 	______________shares of Common Stock.  
	 	 	 
	Shares Subject to the NSO Portion  of
    this Stock Option Award:	 	___________  shares of Common Stock.  
	 	 	 
	Date of Grant:	 	_______________, 20____
	 	 	 
	Exercise Price:	 	$________
	 	 	 
	Expiration Date:	 	_______________, unless sooner as set forth in this Award Agreement
	 	 	 
	Vesting Schedule:	 	Unless sooner vested in accordance with Section 2 of the Terms and Conditions (attached hereto) the Options shall vest (become exercisable) in accordance with the following schedule:

	 	ISO
    Schedule	 	NSO
    Schedule
	 	 	 	 
	 	Installment   	 	Vesting  Date	 	Installment	 	Vesting  Date
	 	 	 	 	 	 	 	 

 

IN WITNESS WHEREOF, The Community Financial
Corporation, acting by and through the Committee, has caused this Award Agreement to be executed as of the Grant Date set forth
above.

 

	 	 	 	THE COMMUNITY FINANCIAL CORPORATION
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	On behalf of the Committee
	Accepted by Participant:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	Date:	 	 	 	 

 

    	 

    	 

    

 

TERMS AND CONDITIONS

 

		1.	Grant of Option. The Grant Date, Exercise Price and number of Shares subject to your Option are stated on page 1
of this Award Agreement. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms
in the 2015 Plan.

 

		2.	Vesting of Options. The Option shall vest (become exercisable) in accordance with the vesting schedule shown on page
1 of this Award Agreement. Notwithstanding the vesting schedule on page 1, the Option will also vest and become exercisable
upon your death or Disability during your Continuous Status as a Participant.

 

 

		3.	Term of Options and Limitations on Right to Exercise. The term of the Option will be for a period of ten (10) years,
expiring at 5:00 p.m., Eastern Time, on the tenth anniversary of the Grant Date (the “Expiration Date”). To the extent
not previously exercised, the vested portion of your Option will lapse prior to the Expiration Date upon the earliest to occur
of the following circumstances:

 

		(a)	Three (3) months after the termination of your Continuous Status as a Participant for any reason other than your death or Disability.

		(b)	Twelve (12) months after termination of your Continuous Status as a Participant by reason of Disability.

		(c)	Twelve (12) months after the date of your death, if you die while employed, or during the three-month period described in subsection
(a) above or during the twelve-month period described in subsection (b) above and before the Option would otherwise lapse. Upon
your death, your beneficiary (designated pursuant to the terms of the 2015 Plan) may exercise your Option.

		(d)	At the end of the remaining original term of the Option if your employment is involuntarily or constructively terminated within
twelve (12) months of a Change in Control.

 

If you or your beneficiary exercises an Option after your
termination of service, the Option may be exercised only with respect to the Shares that were otherwise vested on the date of your
termination of service.

 

		4.	Exercise of Option. You may exercise your Option by providing:

 

		(a)	a written notice of intent to exercise to the address and in the form specified by the Committee from time to time; and

		(b)	payment to the Company in full for the Shares subject to the exercise (unless the exercise is a cashless exercise). Payment
for the Shares can be made in cash, Company common stock (“stock swap”), a combination of cash and Company common stock
or by means of a cashless exercise (if permitted by the Committee).

 

		5.	Beneficiary Designation. You may, in a manner determined by the Committee, designate a beneficiary to exercise your
rights under the 2015 Plan and to receive any distribution with respect to this Option upon your death. A beneficiary, legal guardian,
legal representative, or other person claiming any rights under the 2015 Plan is subject to all terms and conditions of this Award
Agreement and the 2015 Plan, and to any additional restrictions deemed necessary or appropriate by the Committee. If you have not
designated a beneficiary or none survives you, the Option may be exercised by the legal representative of your estate, and payment
shall be made to your estate. You may change or revoke a beneficiary designation at any time provided the change or revocation
is filed with the Company.

 

    	 

    	 

    

 

		6.	Withholding. The Company or any employer Affiliate has the authority and the right to deduct or withhold, or require
you to remit to the Company, an amount sufficient to satisfy federal, state, and local (if any) withholding taxes and employment
taxes (i.e., FICA and FUTA).

 

		7.	Limitation of Rights. This Option does not confer on you or your beneficiary designated pursuant to Paragraph 5 any
rights as a shareholder of the Company unless and until the Shares are in fact issued in connection with the exercise of the Option.
Nothing in this Award Agreement shall interfere with or limit in any way the right of the Company or any Affiliate to terminate
your employment at any time, nor confer upon you any right to continue in the service of the Company or any Affiliate.

 

		8.	Restrictions on Transfer and Pledge. You may not pledge, encumber, or hypothecate your right or interest in this Option
to or in favor of any party other than the Company or an Affiliate, and this Option shall not be subject to any lien, obligation,
or liability of the Participant to any other party other than the Company or an Affiliate. You may not assign or transfer this
Option other than by will or the laws of descent and distribution or pursuant to a domestic relations order that would satisfy
Section 414(p)(1)(A) of the Code if such Section applied to an Option under the 2015 Plan; provided, however, that the Committee
may (but need not) permit other requested transfers. Only you or any permitted transferee may exercise this Option during your
lifetime.

 

		9.	Plan Controls. The terms contained in the 2015 Plan are incorporated into and made a part of this Award Agreement and
this Award Agreement shall be governed by and construed in accordance with the 2015 Plan. In the event of any actual or alleged
conflict between the provisions of the 2015 Plan and the provisions of this Award Agreement, the provisions of the 2015 Plan will
control.

 

		10.	Successors. This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of
this Award Agreement and the 2015 Plan.

 

		11.	Severability. If any one or more of the provisions contained in this Award Agreement is invalid, illegal or unenforceable,
the other provisions of this Award Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision
had never been included in this Award Agreement.

 

		12.	Notice. Notices and communications under this Award Agreement must be in writing and either personally delivered or
sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed
to:

 

[INSERT CONTACT]

 

or any other address designated by the Company in a written
notice to the Participant. Notices to you will be directed to your address, as then currently on file with the Company, or to any
other address that you provide in a written notice to the Company.Exhibit 4.2: Form
of Restricted Stock Agreement

 

    	 

    	 

    

 

FORM OF

 

RESTRICTED STOCK/RESTRICTED STOCK UNIT
AWARD AGREEMENT

FOR
THE COMMUNITY FINANCIAL CORPORATION

2015
EQUITY COMPENSATION PLAN

 

This Award Agreement is provided to ___________________
(the “Participant”) by The Community Financial Corporation (the “Company”) as of ______________________,
20___, the date the Compensation Committee of the Board of Directors of the Company (the “Committee”) awarded the Participant
a [restricted stock]/[restricted stock unit] award pursuant to The Community Financial Corporation 2015 Equity Compensation
Plan (the “2015 Plan”), subject to the terms and conditions of the 2015 Plan and this Award Agreement (referred
to herein as the “Award”):

 

	 	1.	Type of Award	_______  Restricted Stock
	 	 	 	 
	 	 	 	_______  Restricted Stock Unit
	 	 	 	 
	 	 	Number of Shares Subject

to Your Award:	
         

        _______ shares of Common Stock (“Shares”),
        subject to adjustment as may be necessary pursuant to Article 10 of the 2015 Plan.

 

	 	2. 	Grant Date:	_________________, 20___

 

Unless sooner vested in accordance with Section
3 of the Terms and Conditions (attached hereto) or otherwise in the discretion of the Committee, the restrictions imposed under
Section 2 of the Terms and Conditions will expire as to the following percentages of the Shares awarded hereunder, on the
dates noted below; provided that the Participant is still employed by or in service with the Company or any Affiliate:

 

	Percentage of

    Shares Vesting	 	Number of

    Shares/Stock Units

    Vesting	 	

    Vesting Date
	 	 	 	 	 
	 	 	 	 	 

 

IN WITNESS WHEREOF, The Community Financial
Corporation, acting by and through the Compensation Committee of the Board of Directors, has caused this Award Agreement to be
executed as of the Grant Date set forth above.

 

	 	 	THE COMMUNITY FINANCIAL CORPORATION
	 	 	 	 
	 	 	By:	 
	 	 	 	On behalf of the Compensation Committee
	Accepted by Participant:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	Date	 	 	 

 

    	 

    	 

    

 

TERMS AND CONDITIONS

 

		1.	Grant. The Grant Date and number of Shares underlying your Award are stated on page 1 of this Award Agreement.
Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the 2015 Plan.

 

		2.	Restrictions. Your Award is subject to the following restrictions:

 

		(a)	Unvested Restricted Shares/Restricted Stock Units may not be sold, transferred, exchanged, assigned, pledged, hypothecated
or otherwise encumbered.

 

		(b)	If your Continuous Status as a Participant terminates for any reason other than as set forth in paragraph (b) of Section 3
hereof, then you will forfeit all of your rights, title and interest in this Award as of your termination date.

 

		(c)	Your Award is subject to the vesting schedule set forth on page 1 of this Award Agreement.

 

		3.	Expiration and Termination of Restrictions. The restrictions imposed under Section 2 will expire on the earliest to
occur of the following (the period prior to such expiration being referred to herein as the “Restricted Period”):

 

		(a)	As to the percentages of the Restricted Shares/Restricted Stock Units specified in the vesting schedule on page 1 of this Award
Agreement, on the respective dates specified in the vesting schedule on page 1; provided your Continuous Status as a Participant
has not terminated; or

 

		(b)	Upon termination of your Continuous Status as a Participant by reason of death or Disability.

 

		4.	(a)
                                         Delivery of Shares – Restricted Stock Award. Once the Shares are vested (see
                                         vesting schedule on page 1), the Shares (and accumulated dividends and earnings,
                                         if any) will be distributed in accordance with your instructions.

 

		 

                                                                                 
	(b)
                                         Delivery of Shares – Restricted Stock Units. Once the Stock Units are vested
                                         (see vesting schedule on page 1), the Shares (or if the Committee so elects, in
                                         lieu thereof, the fair market value of the Shares in cash ) will be distributed in accordance
                                         with your instructions.

 

		5.	(a) Voting
                                         and Dividend Rights – Restricted Stock Award. As beneficial owner of the Shares,
                                         you have full voting and dividend rights with respect to the Shares during and after
                                         the Restricted Period. You are also entitled to receive a payment equal to any dividends,
                                         or other distributions declared and paid by the Company with respect to the Restricted
                                         Shares. If you forfeit your rights under this Award Agreement in accordance with Section
                                         2, you will no longer have any rights as a shareholder with respect to the Restricted
                                         Shares and you will no longer be entitled to receive dividends on the Shares.

 

			(b) Voting and Dividend Rights – Restricted Stock Units. You have no voting or dividend rights until you receive
a distribution of Shares.

 

		6.	Changes in Capital Structure. Upon the occurrence of a corporate event (including, without limitation, any stock dividend,
stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination
or exchange of shares), your Award will be adjusted as necessary to preserve the benefits or potential benefits of the award. Without
limiting the above, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend payable in
Stock, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the Shares subject to this Award
Agreement will automatically be adjusted proportionately.

 

    	 

    	 

    

 

		7.	No Right of Continued Employment. Nothing in this Award Agreement will interfere with or limit in any way the right
of the Company or any Affiliate to terminate your employment or service at any time, nor confer upon you any right to continue
in the employ or service of the Company or any Affiliate.

 

		8.	Payment of Taxes. You may make an election to be taxed upon your Award under Section 83(b) of the Code within 30 days
of the Grant Date. If you do not make an 83(b) Election, upon vesting of the Award the Committee is entitled to require
as a condition of delivery: (i) that you remit an amount sufficient to satisfy any and all federal, state and local (if any)
tax withholding requirements and employment taxes (i.e., FICA and FUTA), (ii) that the withholding of such sums come
from compensation otherwise due to you or from Shares due to you under the 2015 Plan, or (iii) any combination of the foregoing.
Any withholding shall comply with Rule 16b-3 or any amendments or successive rules.

 

		9.	Plan Controls. The terms contained in the 2015 Plan are incorporated into and made a part of this Award Agreement and
this Award Agreement shall be governed by and construed in accordance with the 2015 Plan. In the event of any actual or alleged
conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan will control.

 

		10.	Severability. If any one or more of the provisions contained in this Agreement is deemed to be invalid, illegal or unenforceable,
the other provisions of this Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had
never been included in this Agreement.

 

		11.	Notice. Notices and communications under this Agreement must be in writing and either personally delivered or sent by
registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed
to:

 

[INSERT CONTACT]

 

or any other address designated by the Company in a written
notice to you. Notices to you will be directed to your address as then currently on file with the Company, or at any other address
that you provide in a written notice to the Company.

 

		12.	Successors. This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of
this Award Agreement and the 2015 Plan.

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