Document:

Exhibit 10.11

 

DIRECTOR DEFERRED FEE PLAN

 

THIS DIRECTOR DEFERRED
FEE PLAN (this “Plan”), adopted this 6th day of September, 2013, by Bank ‘34 located in Alamogordo, New Mexico
(the “Bank”).

 

WITNESSETH:

 

WHEREAS, the Bank recognizes
the valuable services the Participants have performed for the Bank and wishes to encourage the Participants’ continued service
and to provide the Participants with additional incentive to achieve corporate objectives;

 

WHEREAS, the Bank wishes
to provide the terms and conditions upon which the Bank shall pay additional retirement benefits to the Participants;

 

WHEREAS, the Bank and the
Participants intend this Plan shall at all times be administered and interpreted in compliance with Code Section 409A; and

 

WHEREAS, the Bank intends
this Plan shall at all times be administered and interpreted in such a manner as to constitute an unfunded nonqualified deferred
compensation arrangement, maintained primarily to provide supplemental retirement benefits for the Participants, members of select
group of management or highly compensated employees of the Bank;

 

NOW THEREFORE, in consideration
of the premises forgoing the Bank hereby creates the following:

 

ARTICLE 1

DEFINITIONS

 

For the purpose of this
Plan, the following phrases or terms shall have the indicated meanings:

 

1.1           “Administrator”
means the Board or its designee.

 

1.2           “Affiliate”
means any business entity with whom the Bank would be considered a single employer under Section 414(b) and 414(c) of the Code.
Such term shall be interpreted in a manner consistent with the definition of “service recipient” contained in Code
Section 409A.

 

1.3           “Beneficiary”
means the person or persons designated in writing by the Participant to receive benefits hereunder in the event of the Participant’s
death.

 

1.4           “Beneficiary
Designation Form” means the form established from time to time by the Administrator that the Participant completes signs
and returns to the Administrator to designate one or more Beneficiaries.

 

1.5           “Board”
means the Board of Directors of the Bank.

 

    	 	 	 

     

    

 

1.6           “Cause”
means any of the following acts or circumstances: gross negligence or gross neglect of duties to the Bank; conviction of a felony
or of a gross misdemeanor involving moral turpitude in connection with the Participant’s service with the Bank; or fraud,
disloyalty, dishonesty or willful violation of any law or significant Bank policy committed in connection with the Participant’s
service and resulting in a material adverse effect on the Bank.

 

1.7           “Change
in Control” means a change in the ownership or effective control of the Bank, or in the ownership of a substantial portion
of the assets of the Bank, as such change is defined in Code Section 409A and regulations thereunder.

 

1.8           “Contribution”
means the amount the Bank contributes to the Deferral Account, calculated according to the provisions of Article 2.

 

1.9           “Crediting
Rate” means five percent (5%). Notwithstanding the foregoing, the Board may prospectively increase or decrease the Crediting
Rate by providing written notice of such change to the Participants.

 

1.10         “Claimant”
means a person who believes that he or she is being denied a benefit to which he or she is entitled hereunder.

 

1.11         “Code”
means the Internal Revenue Code of 1986, as amended.

 

1.12         “Deferral
Account” means the Bank’s accounting of the accumulated Deferrals and Contributions plus accrued interest.

 

1.13         “Deferral
Election Form” means each form established from time to time by the Administrator that the Participant completes, signs
and returns to the Administrator to designate the amount of Deferrals.

 

1.14         “Deferrals”
means the amount of Fees the Participant elects to defer according to this Plan.

 

1.15         “Disability”
means a condition of the Participant whereby the Participant either: (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees
of the Bank. The Administrator will determine whether the Participant has incurred a Disability based on its own good faith determination
and may require the Participant to submit to reasonable physical and mental examinations for this purpose. The Participant will
also be deemed to have incurred a Disability if determined to be totally disabled by the Social Security Administration or in accordance
with a disability insurance program, provided that the

 

    	 	 	 

     

    

 

definition of disability applied under such
disability insurance program complies with the initial sentence of this Section.

 

1.16         “Early
Termination” means Separation from Service before Normal Retirement Age except when such Separation from Service occurs
following a Change in Control or due to termination for Cause.

 

1.17         “Effective
Date” means ____________________, 2013.

 

1.18         “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

1.19         “Fees”
means the total amount of fees payable to a member of the Board.

 

1.20         “Normal
Retirement Age” means the Participant attaining age seventy (70).

 

1.21         “Participant”
means a director of the Bank (i) who is selected to participate in the Plan, (ii) who elects to participate in the Plan, (iii)
who signs a Participation Agreement, (iv) whose Participation Agreement, Beneficiary Designation Form and Deferral Election Form
are accepted by the Administrator, (v) who commences participation in the Plan, and (vi) whose participation has not terminated.

 

1.22         “Participation
Agreement” means the form established by the Administrator that the Participant completes, signs and returns to the Administrator
to acknowledge participation in the Plan.

 

1.23         “Plan
Year” means each twelve (12) month period commencing on January 1 and ending on December 31 of each year. The initial
Plan Year shall commence on the Effective Date and end on the following December 31.

 

1.24         “Separation
from Service” means, with respect to any Participant, a termination of the Participant’s service with the Bank
and its Affiliates for reasons other than death or Disability. A Separation from Service may occur as of a specified date for purposes
of the Plan even if the Participant continues to provide some services for the Bank or its Affiliates after that date, provided
that the facts and circumstances indicate that the Bank and the Participant reasonably anticipated at that date that either no
further services would be performed after that date, or that the level of bona fide services the Participant would perform after
such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%)
of the average level of bona fide services performed over the immediately preceding thirty-six (36) month period (or the full period
during which the Participant performed services for the Bank, if that is less than thirty-six (36) months). A Separation from Service
will not be deemed to have occurred while the Participant is on military leave, sick leave, or other bona fide leave of absence
if the period of such leave does not exceed six (6) months or, if longer, the period for which a statute or contract provides the
Participant with the right to reemployment with the Bank. If the Participant’s leave exceeds six (6) months but the Participant
is not entitled to reemployment under a statute or contract, the Participant

 

    	 	 	 

     

    

 

incurs a Separation of Service on the next
day following the expiration of such six (6) month period. In determining whether a Separation of Service occurs the Administrator
shall take into account, among other things, the definition of “service recipient” and “employer” set forth
in Treasury regulation §1.409A-1(h)(3). The Administrator shall have full and final authority, to determine conclusively whether
a Separation from Service occurs, and the date of such Separation from Service.

 

1.25         “Specified
Employee” means an individual that satisfies the definition of a “key employee” of the Bank as such term
is defined in Code §416(i) (without regard to Code §416(i)(5)), provided that the stock of the Bank is publicly traded
on an established securities market or otherwise, as defined in Code §1.897-1(m). If a Participant is a key employee at any
time during the twelve (12) months ending on December 31, the Participant is a Specified Employee for the twelve (12) month period
commencing on the first day of the following April.

 

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

 

2.1           Selection
by Administrator. Participation in the Plan shall be limited to those directors of the Bank selected by the Administrator,
in its sole discretion, to participate in the Plan. Participation in the Plan shall be limited to a select group of management
or highly compensated individuals employed by or providing services to the Bank.

 

2.2           Enrollment
Requirements. As a condition to participation, and in addition to the requirements in Section 2.1, each selected individual
shall complete, execute and return to the Administrator (i) a Participation Agreement Form, (ii) a Beneficiary Designation Form
and (iii) a Deferral Election Form. In addition, the Administrator may establish such other enrollment requirements as it determines
are necessary.

 

2.3           Eligibility;
Commencement of Participation. Provided an individual selected to participate in the Plan has met all enrollment requirements
set forth in this Plan and required by the Administrator, that individual will become a Participant, be covered by the Plan and
will be eligible to receive benefits at the time and in the manner provided hereunder, subject to the provisions of the Plan.

 

2.4           Termination
of Participation. If the Administrator determines that a Participant no longer qualifies as a member of a select group of management
or highly compensated employees as such group is determined according to ERISA, the Administrator shall have the right to prevent
the Participant from accruing additional benefits hereunder.

 

ARTICLE
3

DEFERRALS

 

3.1           Elections
Generally. Each Participant may annually file a Deferral Election Form with the Administrator no later than the end of the
Plan Year preceding the Plan Year in which services leading to the compensation to be deferred will be performed.

 

    	 	 	 

     

    

 

3.2           Initial
Election. After being notified by the Administrator of becoming eligible to participate in this Plan, each Participant may
make an initial deferral election by delivering to the Administrator a signed Deferral Election Form within thirty (30) days of
becoming eligible. The Deferral Election Form shall set forth the amount Fees to be deferred. However, if the Participant was eligible
to participate in any other account balance plans (as referenced in Code Section 409A) sponsored by the Bank prior to becoming
eligible to participate in this Plan, the initial election to defer under this Plan shall not be effective until the Plan Year
following the Plan Year in which the Participant became eligible to participate in this Plan.

 

3.3           Election
Changes. The Participant may modify the amount of Deferrals annually by filing a new Deferral Election Form with the Bank.
The modified deferral shall not be effective until the calendar year following the year in which the subsequent Deferral Election
Form is received by the Bank.

 

3.4           Bank
Contributions. In addition to any Deferrals, the Bank may, at any time, make a Contribution to the Deferral Account.

 

Article
4

DEFFERAL
ACCOUNT

 

4.1           Establishing
and Crediting. The Bank shall establish a Deferral Account on its books for the Participant and shall credit to the Deferral
Account the following amounts:

 

(a)          Any
Deferrals or Contributions hereunder; and

(b)          Interest
as follows:

(i)      On
the last day of each month during and immediately prior to the distribution of any benefits, but only until commencement of benefit
distributions under this Plan, interest shall be credited on the Deferral Account balance at an annual rate equal to the
Crediting Rate; and

(ii)     On
the last day of each month during any installment period, interest shall be credited on the unpaid Deferral Account balance at
an annual rate equal to the Crediting Rate, compounded monthly.

 

4.2          Recordkeeping
Device Only. The Deferral Account is solely a device for measuring amounts to be paid under this Plan and is not a trust fund
of any kind.

 

ARTICLE 5

PAYMENT OF BENEFITS

 

5.1          Normal
Retirement Benefit. Upon Separation from Service on or after Normal Retirement Age, the Bank shall pay the Participant the
Deferral Account balance calculated at Separation from Service. This benefit shall be paid as elected by the Participant on the
Participant’s Participation Agreement, commencing the month following Separation from Service.

 

    	 	 	 

     

    

 

5.2           Early
Termination Benefit. If Early Termination occurs, the Bank shall pay the Participant the Deferral Account balance calculated
at Separation from Service in lieu of any other benefit hereunder. This benefit shall be paid as elected by the Participant on
the Participant’s Participation Agreement, commencing the month following Separation from Service.

 

5.3           Disability
Benefit. If the Participant experiences a Disability prior to Normal Retirement Age, the
Bank shall pay the Participant the Deferral Account balance calculated as of the date of Disability in lieu of any other benefit
hereunder. This benefit shall be paid as elected by the Participant on the Participant’s Participation Agreement, commencing
the month following Disability.

 

5.4           Change
in Control Benefit. If a Change in Control occurs, followed within twenty-four (24) months by Separation from Service prior
to Normal Retirement Age, the Bank shall pay the Participant the Deferral Account balance calculated as of the date of Separation
from Service in lieu of any other benefit hereunder. This benefit shall be paid as elected by the Participant on the Participant’s
Participation Agreement, commencing the month following Separation from Service.

 

5.5           Death
Prior to Commencement of Benefit Payments. In the event the Participant dies prior to Separation from Service and Disability,
the Bank shall pay the Beneficiary the Deferral Account balance calculated as of the date of the date of the Participant’s
death. This benefit shall be paid as elected by the Participant on the Participant’s Participation Agreement, commencing
the month following Participant’s death.

 

5.6           Death
Subsequent to Commencement of Benefit Payments. In the event the Participant dies while receiving payments, but prior to receiving
all payments due and owing hereunder, the Bank shall pay the Beneficiary the same amounts at the same time as the Bank would have
paid to the Participant had the Participant survived.

 

5.7           Termination
for Cause. If the Bank terminates a Participant’s service for Cause, then the Participant shall forfeit all amounts credited
to the Deferral Account except the Deferrals.

 

5.8           Restriction
on Commencement of Distributions.  Notwithstanding any provision of this Plan to the contrary, if the Participant is considered
a Specified Employee at the time of Separation from Service, the provisions of this Section shall govern all distributions hereunder.
Distributions which would otherwise be made to the Participant due to Separation from Service shall not be made during the first
six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Participant during
such period shall be accumulated and paid to the Participant in a lump sum on the first day of the seventh month following Separation
from Service, or if earlier, upon the Participant’s death. All subsequent distributions shall be paid as they would have
had this Section not applied.

 

    	 	 	 

     

    

 

5.9           Acceleration
of Payments. Except as specifically permitted herein, no acceleration of the time or schedule of any payment may be made hereunder.
Notwithstanding the foregoing, payments may be accelerated, in accordance with the provisions of Treasury Regulation §1.409A-3(j)(4)
in the following circumstances: (i) as a result of certain domestic relations orders; (ii) in compliance with ethics agreements
with the federal government; (iii) in compliance with the ethics laws or conflicts of interest laws; (iv) in limited cashouts (but
not in excess of the limit under Code §402(g)(1)(B)); (v) to pay employment-related taxes; or (vi) to pay any taxes that may
become due at any time that the Plan fails to meet the requirements of Code Section 409A.

 

5.10        Delays
in Payment by Bank. A payment may be delayed to a date after the designated payment date under any of the circumstances described
below, and the provision will not fail to meet the requirements of establishing a permissible payment event. The delay in the payment
will not constitute a subsequent deferral election, so long as the Bank treats all payments to similarly situated Participants
on a reasonably consistent basis.

 

(a)          Payments
subject to Code Section 162(m). If the Bank reasonably anticipates that the Bank’s deduction with respect to any distribution
under this Plan would be limited or eliminated by application of Code Section 162(m), then to the extent deemed necessary by the
Bank to ensure that the entire amount of any distribution from this Plan is deductible, the Bank may delay payment of any amount
that would otherwise be distributed under this Plan. The delayed amounts shall be distributed to the Participant (or the Beneficiary
in the event of the Participant’s death) at the earliest date the Bank reasonably anticipates that the deduction of the payment
of the amount will not be limited or eliminated by application of Code Section 162(m).

(b)          Payments
that would violate Federal securities laws or other applicable law. A payment may be delayed where the Bank reasonably anticipates
that the making of the payment will violate Federal securities laws or other applicable law provided that the payment is made at
the earliest date at which the Bank reasonably anticipates that the making of the payment will not cause such violation. The making
of a payment that would cause inclusion in gross income or the application of any penalty provision of the Internal Revenue Code
is not treated as a violation of law.

(c)          Solvency.
Notwithstanding the above, a payment may be delayed where the payment would jeopardize the ability of the Bank to continue as a
going concern.

 

5.11        Treatment
of Payment as Made on Designated Payment Date. Solely for purposes of determining compliance with Code Section 409A, any payment
under this Plan made after the required payment date shall be deemed made on the required payment date provided that such payment
is made by the latest of: (i) the end of the calendar year in which the payment is due; (ii) the 15th day of the third
calendar month following the payment due date; (iii) if Bank cannot calculate the payment amount on account of administrative impracticality
which is beyond the Participant’s control, the end of the first

 

    	 	 	 

     

    

 

calendar year which payment calculation is
practicable; and (iv) if Bank does not have sufficient funds to make the payment without jeopardizing the Bank’s solvency,
in the first calendar year in which the Bank’s funds are sufficient to make the payment.

 

5.12        Facility
of Payment. If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the Administrator
may make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his
or her residence; or (ii) to the conservator or administrator or, if none, to the person having custody of an incompetent payee.
Any such distribution shall fully discharge the Bank and the Administrator from further liability on account thereof.

 

5.13        Excise
Tax Limitation. Notwithstanding any provision of this Plan to the contrary, if any benefit payment hereunder would be treated
as an “excess parachute payment” under Code Section 280G, the Bank shall reduce such benefit payment to the extent
necessary to avoid treating such benefit payment as an excess parachute payment. The Participant shall be entitled to only the
reduced benefit and shall forfeit any amount over and above the reduced amount.

 

5.14        Changes
in Form of Timing of Benefit Payments. The Bank and the Participant may, subject to the terms hereof, amend this Plan to delay
the timing or change the form of payments. Any such amendment:

 

(a)          must
take effect not less than twelve (12) months after the amendment is made;

(b)          must,
for benefits distributable due solely to the arrival of a specified date, or on account of Separation from Service or Change in
Control, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was originally
scheduled to be made; and

(c)          must,
for benefits distributable due solely to the arrival of a specified date, be made not less than twelve (12) months before distribution
is scheduled to begin.

 

Article
6

Beneficiaries

 

6.1          Designation
of Beneficiaries. The Participant may designate any person to receive any benefits payable under the Plan upon the Participant’s
death, and the designation may be changed from time to time by the Participant by filing a new designation. Each designation will
revoke all prior designations by the Participant, shall be in the form prescribed by the Administrator and shall be effective only
when filed in writing with the Administrator during the Participant’s lifetime. If the Participant names someone other than
the Participant’s spouse as a Beneficiary, the Administrator may, in its sole discretion, determine that spousal consent
is required to be provided in a form designated by the Administrator, executed by the Participant’s spouse and returned to
the Administrator. The Participant’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases
the Participant or if the Participant names a spouse as Beneficiary and the marriage is subsequently dissolved.

 

    	 	 	 

     

    

 

6.2           Absence
of Beneficiary Designation. In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due
to a Beneficiary, there is no living Beneficiary validly named by the Participant, the Bank shall pay the benefit payment to the
Participant’s spouse. If the spouse is not living then the Bank shall pay the benefit payment to the Participant’s
living descendants per stirpes, and if there no living descendants, to the Participant’s estate. In determining the
existence or identity of anyone entitled to a benefit payment, the Bank may rely conclusively upon information supplied by the
Participant’s personal representative, executor, or administrator.

 

Article
7

ADMINISTRATION

 

7.1           Administrator
Duties. The Administrator shall be responsible for the management, operation, and administration of the Plan. When making a
determination or calculation, the Administrator shall be entitled to rely on information furnished by the Bank, Participant or
Beneficiary. No provision of this Plan shall be construed as imposing on the Administrator any fiduciary duty under ERISA or other
law, or any duty similar to any fiduciary duty under ERISA or other law.

 

7.2           Administrator
Authority. The Administrator shall enforce this Plan in accordance with its terms, shall be charged with the general administration
of this Plan, and shall have all powers necessary to accomplish its purposes.

 

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

 

7.4           Compensation,
Expenses and Indemnity. The Administrator shall serve without compensation for services rendered hereunder. The Administrator
is authorized at the expense of the Bank to employ such legal counsel and recordkeeper as it may deem advisable to assist in the
performance of its duties hereunder. Expense and fees in connection with the administration of this Plan shall be paid by the Bank.

 

7.5           Bank
Information. The Bank shall supply full and timely information to the Administrator on all matters relating to the Participant’s
compensation, death, Disability or Separation from Service, and such other information as the Administrator reasonably requires.

 

7.6           Termination
of Participation. If the Administrator determines in good faith that the Participant no longer qualifies as a member of a select
group of management or highly compensated employees, as determined in accordance with ERISA, the Administrator shall have the right,
in its sole discretion, to prohibit the Participant from making any additional Deferrals hereunder.

 

    	 	 	 

     

    

 

7.7          Compliance
with Code Section 409A. The Bank and the Participants intend that the Plan comply with the provisions of Code Section 409A
to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year prior to the year in which amounts
are actually paid to the Participant or Beneficiary. This Plan shall be construed, administered and governed in a manner that affects
such intent, and the Administrator shall not take any action that would be inconsistent therewith.

 

Article
8

Claims
and Review Procedures

 

8.1          Claims
Procedure. A Claimant who has not received benefits under this Plan that he or she believes should be distributed shall make
a claim for such benefits as follows.

 

(a)          Initiation
– Written Claim. The Claimant initiates a claim by submitting to the Administrator a written claim for the benefits.
If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days
after such notice was received by the Claimant. All other claims must be made within one hundred eighty (180) days of the
date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired
by the Claimant.

(b)          Timing
of Administrator Response. The Administrator shall respond to such Claimant within ninety (90) days after receiving
the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator
can extend the response period by an additional ninety (90) days by notifying the Claimant in writing, prior to the end of the
initial ninety (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 Administrator expects to render its decision.

(c)          Notice
of Decision. If the Administrator denies part or all of the claim, the Administrator shall notify the Claimant in writing of
such denial. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification
shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Plan on which the
denial is based; (iii) a description of any additional information or material necessary for the Claimant to perfect the claim
and an explanation of why it is needed; (iv) an explanation of this Plan’s review procedures and the time limits applicable
to such procedures; and (v) 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 Administrator denies part or all of the claim, the Claimant shall have the opportunity for a full and fair
review by the Administrator of the denial as follows.

 

(a)          Initiation
– Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Administrator’s
notice of denial, must file with the Administrator a written request for review.

 

    	 	 	 

     

    

 

(b)          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 Administrator 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.

(c)          Considerations
on Review. In considering the review, the Administrator 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.

(d)          Timing
of Administrator Response. The Administrator shall respond in writing to such Claimant within sixty (60) days after receiving
the request for review. If the Administrator determines that special circumstances require additional time for processing the claim,
the Administrator can extend the response period by an additional sixty (60) days by notifying the Claimant in writing, prior to
the end of the initial sixty (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 Administrator expects to render its decision.

(e)          Notice
of Decision. The Administrator shall notify the Claimant in writing of its decision on review. The Administrator 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 this Plan 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 (d) a statement
of the Claimant’s right to bring a civil action under ERISA Section 502(a).

 

ARTICLE 9

AMENDMENT AND TERMINATION

 

9.1          Plan
Amendment Generally. This Plan may be amended only by a written document executed by the Bank, provided that such amendment
does not reduce or eliminate any vested benefit hereunder.

 

9.2          Amendment
to Insure Proper Characterization of Plan. Notwithstanding anything in this Plan to the contrary, the Plan may be amended by
the Bank at any time, if found necessary in the opinion of the Bank, i) to ensure that the Plan is characterized as plan of deferred
compensation maintained for a select group of management or highly compensated employees as described under ERISA, ii) to conform
the Plan to the requirements of any applicable law or iii) to comply with the written instructions of the Bank’s auditors
or banking regulators.         

 

9.3          Plan
Termination Generally. This Plan may be terminated only by a written document executed by the Bank. In case of such termination,
the benefit to be paid to each Participant hereunder shall be the Participant’s Deferral Account balance. However, except

 

    	 	 	 

     

    

 

as provided in Section 9.4, Plan termination
shall not cause a distribution of benefits hereunder. Rather, upon termination benefit distributions will be made at the earliest
distribution event permitted under Article 4.

 

9.4           Effect
of Complete Termination. Notwithstanding anything to the contrary in Section 9.3, and subject to the requirements of Code Section
409A and Treasury Regulations §1.409A-3(j)(4)(ix), at certain times the Bank may completely terminate and liquidate the Plan.
In the event of such a complete termination, the Bank shall pay the Deferral Account balances to the Participants. Such complete
termination of the Plan shall occur only under the following circumstances and conditions.

 

(a)          Corporate
Dissolution or Bankruptcy. The Bank may terminate and liquidate this Plan within twelve (12) months of a corporate dissolution
taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that
all benefits paid under the Plan are included in the Participant’s gross income in the latest of: (i) the calendar year which
the termination occurs; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or
(iii) the first calendar year in which the payment is administratively practicable.

(b)          Discretionary
Termination. The Bank may terminate and liquidate this Plan provided that: (i) the termination does not occur proximate to
a downturn in the financial health of the Bank; (ii) all arrangements sponsored by the Bank and Affiliates that would be aggregated
with any terminated arrangements under Treasury Regulations §1.409A-1(c) are terminated; (iii) no payments, other than payments
that would be payable under the terms of this Plan if the termination had not occurred, are made within twelve (12) months of the
date the Bank takes the irrevocable action to terminate this Plan; (iv) all payments are made within twenty-four (24) months following
the date the Bank takes the irrevocable action to terminate and liquidate this Plan; and (v) neither the Bank nor any of its Affiliates
adopt a new arrangement that would be aggregated with any terminated arrangement under Treasury Regulations §1.409A-1(c) if
the Participants participated in both arrangements, at any time within three (3) years following the date the Bank takes the irrevocable
action to terminate this Plan.

(c)          Change
in Control. The Bank may terminate and liquidate this Agreement by taking irrevocable action to terminate and liquidate within
the thirty (30) days preceding or the twelve (12) months following a Change in Control. This Agreement will then be treated as
terminated only if all substantially similar arrangements sponsored by the Bank which are treated as deferred under a single plan
under Treasury Regulations §1.409A-1(c)(2) are terminated and liquidated with respect to each Participant who experienced
the Change in Control so that the Director and any participants in any such similar arrangements are required to receive all amounts
of compensation deferred under the terminated arrangements within twelve (12) months of the date the Bank takes the irrevocable
action to terminate the arrangements.

 

    	 	 	 

     

    

 

Article
10

MISCELLANEOUS

 

10.1         No
Effect on Other Rights. This Plan, and each Participant’s Participation Agreement constitute the entire agreement between
the Bank and the Participant as to the subject matter hereof. No rights are granted to the Participants by virtue of this Plan
other than those specifically set forth herein. Nothing contained herein will confer upon any Participant the right to be retained
in the service of the Bank nor limit the right of the Bank to discharge or otherwise deal with the Participant without regard to
the existence hereof.

 

10.2         State
Law. To the extent not governed by ERISA, the provisions of this Plan shall be construed and interpreted according to the internal
law of the State of New Mexico without regard to its conflicts of laws principles.

 

10.3         Validity.
In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the
remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted
herein.

 

10.4         Nonassignability.
Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

 

10.5         Unsecured
General Creditor Status. Payment to the Participant or any Beneficiary hereunder shall be made from assets which shall continue,
for all purposes, to be part of the general, unrestricted assets of the Bank and no person shall have any interest in any such
asset by virtue of any provision of this Plan. The Bank’s obligation hereunder shall be an unfunded and unsecured promise
to pay money in the future. In the event that the Bank purchases an insurance policy insuring the life of the Participant to recover
the cost of providing benefits hereunder, neither the Participant nor the Beneficiary shall have any rights whatsoever in said
policy or the proceeds therefrom.

 

10.6         Unclaimed
Benefits. The Participant shall keep the Bank informed of the Participant’s current address and the current address of
the Beneficiary. If the location of the Participant is not made known to the Bank within three years after the date upon which
any payment of any benefits may first be made, the Bank shall delay payment of the Participant’s benefit payment(s) until
the location of the Participant is made known to the Bank; however, the Bank shall only be obligated to hold such benefit payment(s)
for the Participant until the expiration of three (3) years. Upon expiration of the three (3) year period, the Bank may discharge
its obligation by payment to the Beneficiary. If the location of the Beneficiary is not made known to the Bank by the end of an
additional two (2) month period following expiration of the three (3) year period, the Bank may discharge its obligation by payment
to the Participant’s estate. If there is no estate in existence at such time or if such fact cannot be determined by the
Bank, the Participant and Beneficiary shall thereupon forfeit all rights to any benefits provided under this Plan.

 

10.7         Removal.
Notwithstanding anything in this Plan to the contrary, the Bank shall not distribute any benefit under this Plan if the Participant
is subject to a final

 

    	 	 	 

     

    

 

removal or prohibition order issued pursuant
to Section 8(e) of the Federal Deposit Insurance Act. Furthermore, any payments made to the Participant pursuant to this Plan shall,
if required, comply with 12 U.S.C. 1828, FDIC Regulation 12 CFR Part 359 and any other regulations or guidance promulgated thereunder.

 

10.8         Notice.
Any notice, consent or demand required or permitted to be given to the Bank or Administrator under this Plan shall be sufficient
if in writing and hand-delivered or sent by registered or certified mail to the Bank’s principal business office. Any notice
or filing required or permitted to be given to the Participant or Beneficiary under this Plan shall be sufficient if in writing
and hand-delivered or sent by mail to the last known address of the Participant or Beneficiary, as appropriate. Any 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 on the receipt
for registration or certification.

 

10.9         Headings
and Interpretation. Headings and sub-headings in this Plan are inserted for reference and convenience only and shall not be
deemed part of this Plan. Wherever the fulfillment of the intent and purpose of this Plan requires and the context will permit,
the use of the masculine gender includes the feminine and use of the singular includes the plural.

 

10.10       Alternative
Action. In the event it becomes impossible for the Bank or the Administrator to perform any act required by this Plan due to
regulatory or other constraints, the Bank or Administrator may perform such alternative act as most nearly carries out the intent
and purpose of this Plan and is in the best interests of the Bank, provided that such alternative act does not violate Code Section
409A.

 

10.11       Coordination
with Other Benefits. The benefits provided for the Participant or the Beneficiary under this Plan are in addition to any other
benefits available to the Participant under any other plan or program of the Bank. This Plan shall supplement and shall not supersede,
modify, or amend any other such plan or program except as may otherwise be expressly provided herein.

 

10.12       Inurement.
This Plan shall be binding upon and shall inure to the benefit of the Bank, its successor and assigns, and the Participant, the
Participant’s successors, heirs, executors, administrators, and the Beneficiary.

 

10.13       Tax
Withholding. The Bank may make such provisions and take such action as it deems necessary or appropriate for the withholding
of any taxes which the Bank is required by any law or regulation to withhold in connection with any benefits under the Plan. The
Participant shall be responsible for the payment of all individual tax liabilities relating to any benefits paid hereunder.

 

10.14       Aggregation
of Plan. If the Bank offers other account balance deferred compensation arrangements in addition to this Plan, this Plan and
those arrangements shall be treated as a single plan to the extent required under Code Section 409A.

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF, a representative
of the Bank has executed this Plan as indicated below:

 

	Bank:	 
	 	 	 
	By:	/s/
    Randal L. Rabon	 
	Its:	Chairman	 

 

    	 	 	 

     

    

  

BANK ‘34

DIRECTOR DEFERRED FEE PLAN

 

fEE
Deferral Election form

 

	Amount of Deferral	 	Duration
	
        [Initial and Complete One]

         

        ____    I elect
        to defer ______% of my Fees.

         

        ____    I elect
        to defer $______________ of my Fees.

         

        ____    I elect
        not to defer any of my Fees.

         
	 	
        [Initial and Complete One]

         

        ____     For ____ year(s)

         

        ____     For all future
        Plan Years

         

 

Signature:    ________________________________

 

Printed Name:      ________________________________

 

Date:       ________________________________

 

Received by the Administrator this _____ day of ____________________,
201__.

 

	By:	_________________________________
	Title:	_________________________________

 

     

     

    

 

BANK ‘34

DIRECTOR DEFERRED FEE PLAN

 

Beneficiary Designation

 

I designate the following
as Beneficiary under this Plan:

 

Primary

 

____________________________________________________________________________________      _______%

 

____________________________________________________________________________________      _______%

 

Contingent

 

____________________________________________________________________________________      _______%

 

____________________________________________________________________________________      _______%

 

I understand that I
may change this beneficiary designation by delivering a new written designation to the Administrator, which shall be effective
only upon receipt by the Administrator prior to my death. I further understand that the designation will be automatically revoked
if the Beneficiary predeceases me or if I have named my spouse as Beneficiary and our marriage is subsequently dissolved.

 

	Signature:	_______________________________	Date:	_______

 

	
        SPOUSAL CONSENT (Required only if Administrator
        requests and someone other than spouse is named Beneficiary)

         

        I consent to the beneficiary designation
        above. I also acknowledge that if I am named Beneficiary and my marriage is subsequently dissolved, the beneficiary designation
        will be automatically revoked.

         

        Spouse Name:        _______________________________

         

        Signature:    _______________________________   Date:
        ________

 

Received by the Administrator this ________ day of ___________________,
20__

 

	By:	_________________________________
	Title:	_________________________________

 

     

     

    

 

BANK ‘34

DIRECTOR DEFERRED FEE PLAN

 

Distribution Election Form

 

	 	 	Method of Payment
	Benefit	 	
        Lump Sum

        (Initial)
	 	
        Equal Monthly Installments for the

        number of months shown

        (initial and indicate number of months)

	Normal Retirement  Benefit	 	 	 	 
	Early Termination Benefit	 	 	 	 
	Disability Benefit	 	 	 	 
	Change in Control Benefit	 	 	 	 

 

NOTE: Changes made to the distribution
methods originally selected are discouraged. Any changes to the elections made on this form are subject to the restrictions found
in Section 409A of the Internal Revenue Code and detailed in Section 5.14 of the Plan.

 

	Signature:	________________________________
	 	 
	Name:	________________________________
	Date:	________________________________

 

Received by the Administrator this _____ day of ____________________,
201__.

 

	By:	_________________________________
	Title:	_________________________________Exhibit 10.12

 

 

Bank‘34

 

RETENTION BONUS AGREEMENT

 

Jan R. Thiry

1 Oak Brook Club Drive, A202

Oak Brook, Illinois 60523

 

Re: Retention Bonus Agreement

 

Dear Mr. Jan R. Thiry:

 

We are pleased to offer you (“you”
or “Employee”) the following retention bonus agreement (the “Agreement”). The purpose of this Agreement
is to reward you for your initial year of service to Bank ‘34 (the “Company”).

 

The terms of this Agreement are as follows:

 

1. Period of this Agreement. This
Agreement will commence effective as of your initial hire date, and will end one year from that date (“Agreement Period”),
provided, however, that Section 5 (Confidentiality) of this Agreement shall survive the expiration or termination of this Agreement.
This Agreement is not renewable unless expressly agreed in writing between you and the Company, and it does not guarantee your
employment for any specific period of time. The Company reserves the right to terminate you at any time and for any or no reason.

 

2. Retention Bonus Payments. The Company will provide
you with a retention bonus (“Retention Bonus”) in the gross amount of $40,000. The Retention Bonus shall be payable
as follows: $20,000 (representing 50% of the Retention Bonus) to be paid on the first payroll date following 6 months of service
with employer, and $20,000 (representing 50% of the Retention Bonus) to be paid on the first payroll date following 12 months of
service with employer. You must remain actively employed and in compliance with the Company’s policies and directives
concerning job performance and conduct as of each payout date in order to earn and receive your Retention Bonus payment.
The Retention Bonus payments made under this Agreement are subject to regular tax withholdings and other authorized deductions.

 

3. Termination of Employment.

 

(a) Termination
by the Company without Cause. In the event that the Company terminates your employment without Cause (as defined herein) during
the Agreement Period, you shall be entitled to receive 100% of the total Retention Bonus, less any Retention Bonus payments previously
paid. This amount shall be payable within fourteen (14) days after the termination date and shall be in addition to any amounts
you may be entitled to receive from Bank ‘34. For

 

	     MAIN     575.437.9334	 	500 E. 10th Street
	     FAX        575.437.7020	 	Alamogordo, NM 88310
	 	 	bank34online.com

 

     

     

    

 

example, if your employment is terminated by the Company without
Cause after 8 months of service but before 12 months of service, you shall be entitled to receive a Retention Bonus payment equal
to $20,000 (representing 50% of the Retention Bonus) of your total Retention Bonus.

 

(b) Resignation by Employee or
Termination by the Company for Cause. In the event that you resign or the Company terminates your employment for Cause during
the Agreement Period, you will not be entitled to receive any unearned and unpaid portion of your Retention Bonus payment. For
example, if you resign or the Company terminates you for Cause before 6 months of service, you shall not be entitled to receive
any Retention Bonus payments under this Agreement, or if you resign or the Company terminates you for Cause after you have received
your 6 month Retention Bonus payment but before 12 months of service, you shall not be entitled to receive any further Retention
Bonus payments under this Agreement.

 

For purposes of this Agreement, the Company
shall be deemed to have terminated the Employee’s employment for “Cause,” as determined by the Company, upon
the following:

 

(i)  Any unauthorized material disclosure
by Employee of the Company’s business practices or accounts to a competitor.

 

(ii) Wrongful misappropriation by Employee of
funds, property, or rights of the Company.

 

(iii) Wrongful destruction
of business records or other property by Employee.

 

(iv) Conviction of Employee of a felony involving
knowing, willful or reckless misconduct or, as the result of a plea bargain, conviction of Employee of a misdemeanor; provided,
Employee was originally charged (prior to the plea bargain) with a felony involving knowing, willful or reckless misconduct.

 

(v)  Gross misconduct by Employee which results
in serious damage to the Company.

 

(vi)  Employee’s material breach of,
or inability to perform his obligations under, this Agreement other than by reason of Disability.

 

(vii) Violation of the Company’s
Code of Business Conduct and Ethics.

 

The foregoing is by way of example and is not intended to be
an exhaustive list of events which may be deemed by the Company, in its discretion, to give rise to a termination for “Cause.”

 

5. Confidentiality. You agree to keep the existence
of this Agreement and its terms confidential, unless disclosure is required pursuant to an order by a court of competent jurisdiction.
However, you may discuss the terms of this Agreement with your spouse, an attorney(s) or tax advisor(s), provided such person agrees
to keep the existence and terms of this Agreement strictly confidential.

 

6. Arbitration; Enforcement of Rights. Any controversy
or claim arising out of, or relating to this Agreement, or the breach or threatened breach thereof shall be settled by binding
arbitration in the city of Alamogordo, New Mexico, in accordance with the Rules of the American Arbitration Association, and judgment
upon the award rendered by the arbitrator or arbitrators may be entered in any court having jurisdiction thereof.

 

     

     

    

 

7. Governing Law/Captions/Severance. This Agreement
shall be construed in accordance with, and pursuant to, the laws of the State of New Mexico. The captions of this Agreement shall
not be part of the provisions hereof, and shall have no force or effect. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

8. Release and Waiver. Notwithstanding
any provision contained elsewhere in this Agreement, the Company shall not be obligated to make any payments to you upon the termination
of your employment for any reason unless you execute a waiver and release of claims which has been prepared and presented to you
by the Company. Except as otherwise specifically provided in this paragraph, the failure of either party to insist in any instance
on the strict performance of any provision of this Agreement or to exercise any right hereunder shall not constitute a waiver of
such provision or right in any other instance.

 

9. Entire Agreement/Amendment. This instrument contains
the entire agreement of the parties relating to the subject matter hereof, and the parties have made no agreement, representations,
or warranties relating to the subject matter of this Agreement that are not set forth herein. This Agreement may be amended at
any time by written agreement of both parties, but it shall not be amended by oral agreement.

 

We look forward to your continuing contributions to the Company.
Please acknowledge by signing below that you have read, understood, and agree to the terms of this Agreement.

 

	Sincerely,	 	 
	 	 	 
	/s/ Jill Gutierrez	 	 
	 	 	 
	Jill Gutierrez	 	 
	President and CEO	 	 
	 	 	 
	I have read, understand, and agree to the terms of this Agreement
	 	 	 
	/s/ Jan R. Thiry	 	February 10, 2014
	Employee (signature)	 	Date
	 	 	 
	Jan R. Thiry	 	 
	Employee (printed name)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]