Document:

Exhibit 10.29

  

EMPLOYMENT AGREEMENT

 

AGREEMENT made
effective as of July 1, 2014 (this “Agreement”), by and between THE COMMUNITY FINANCIAL CORPORATION, with
its principal place of business at 3035 Leonardtown Road, Waldorf, Maryland 20601 (the “Company”), COMMUNITY BANK
OF THE CHESAPEAKE, a wholly-owned subsidiary of the Company (the “Bank”) and MICHAEL L. MIDDLETON (the “Executive”).

 

WHEREAS, the
Company and the Bank desire to continue to provide for the Executive’s employment by the Company and the Bank.

 

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

 

1.          EMPLOYMENT.
The Executive shall serve as the Executive Chairman of the Boards of Directors of the Company and the Bank. In such positions,
the Executive shall have the duties, responsibilities, functions, and authority determined and designated from time to time by
the Boards of Directors of the Company and the Bank, including as set forth on Exhibit A to this Agreement. The Executive may also
agree to serve as an officer of one or more affiliates of the Company and the Bank upon such designation. The parties to this Agreement
do not intend for the Executive’s services as Executive Chairman of the Boards of Directors of the Company and the Bank to
have constituted a “separation of service,” as that term is used for purposes of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), from his prior positions with the Company and the Bank.

 

2.          EFFECTIVE
DATE AND TERM. The Company and the Bank agree to employ the Executive under this Agreement for a period of two (2) years beginning
on the date first above written (the “Effective Date”) and ending on the day before the second (2nd) anniversary
of the Effective Date (the “Term of Employment”). The last day of the term, as so extended from time to time, is herein
sometimes referred to as the “Expiration Date.”

 

3.          COMPENSATION
AND BENEFITS. The compensation and benefits payable to the Executive under this Agreement shall be as follows, it being understood
that (i) references to benefits offered by, or to officers of, the Company and the Bank are intended to include benefits offered
by, or to officers of, any affiliate of the Company or the Bank which employs the Executive and (ii) payments or benefits required
to be provided by the Company and the Bank may be provided by an affiliate:

 

3.1           SALARY.
For all services rendered by the Executive to the Company and the Bank, the Executive shall be entitled to receive a base salary
at an annual rate of$321,661, subject to increase from time to time in accordance with the usual practices of the Company and the
Bank with respect to review of compensation of its senior executives. Any increase in the Executive’s base salary shall become
the “base salary” for purposes of this Agreement. The Executive’s base salary shall be payable in periodic installments
in accordance with the Bank’s usual practice for its senior executives.

 

3.2           EMPLOYEE
BENEFITS. The Executive 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 Company and the Bank. Such participation shall be subject to (i) the terms of the applicable plan documents,
(ii) generally applicable policies of the Company and the Bank and (iii) the discretion of the Boards of Directors of the Company
or the Bank or any administrative or other committee provided for in, or contemplated by, such plans.

 

3.3           INCENTIVE
COMPENSATION. The Executive shall be eligible to participate in any special incentive compensation or bonus program on such
terms as the Boards of Directors of the Company or the Bank may establish for the Executive’s participation.

 

    	 

    	 

    

 

3.4           BUSINESS
EXPENSES. The Company and the Bank shall provide for, or reimburse, the Executive’s reasonable travel and other business
expenses (including, without limitation, automobile and cellphone expenses) incurred by the Executive in the performance of the
Executive’s duties and responsibilities, subject to such reasonable requirements with respect to substantiation and documentation
as may be specified by the Company and the Bank.

 

3.5           LEAVE.
The Executive shall be entitled to leave (vacation, sick and personal) in accordance with the Company’s and the Bank’s
standard policies for senior executives; provided, however, that the Executive shall receive not less than five (5) weeks vacation
leave during each calendar year.

 

3.6           GENERAL.
Nothing paid to the Executive under any plan, policy or arrangement currently in effect or made available in the future shall be
deemed to be in lieu of other compensation to the Executive as described in this Agreement.

 

3.7           OTHER
EMPLOYEE BENEFITS. The Executive shall be entitled to participate in any compensatory plans, arrangements or programs the Company
or the Bank makes available to their 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. The Executive’s participation in such plans, arrangements or programs
shall not be deemed to be in lieu of other compensation to which the Executive is entitled under this Agreement.

 

4.          EXTENT
OF SERVICE. During the Term of Employment, the Executive shall devote at least 30 hours per week on activities related to the
Company and the Bank, as well as his best efforts and business judgment, skill and knowledge to the advancement of the Company’s
and the Bank’s interests and to the discharge of the Executive’s duties and responsibilities hereunder. The Executive
shall not engage in any other business activity, except as may be approved by the Boards of Directors of the Company and the Bank;
provided, however, that nothing herein shall be construed as preventing the Executive from:

 

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

 

(b)          serving
on the board of directors of any company not in competition with the Company or the Bank or any of their affiliates, provided that
the Executive shall not render any material services with respect to the operations or affairs of any such company; or

 

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

 

5.          TERMINATION
UPON DEATH. In the event of the Executive’s death during the Term of Employment, the Executive’s employment (and
the Term of Employment) shall terminate on the date of the Executive’s death. The Company or the Bank shall pay to the Executive’s
beneficiary, designated in writing to the Company and the Bank prior to the Executive’s death (or to the Executive’s
estate, if the Executive fails to make such designation), the sum of the base salary that would have been paid to the Executive
for the remaining term of the Agreement. The Company or the Bank will make this payment to the beneficiary in a lump sum within
thirty (30) days of the Executive’s death. The Company and the Bank shall also provide the beneficiary with any other compensation
and benefits as may be provided in accordance with the terms and provisions of any applicable plans and programs of the Company
or the Bank in which the Executive participated as of his date of death.

 

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6.          DISCHARGE
FOR CAUSE.

 

6.1           NOTICE
AND DETERMINATION OF CAUSE. The Company or the Bank may terminate the Executive’s employment during the Term of Employment
for Just Cause. A termination shall be deemed to have occurred for Just Cause only if:

 

(a)          the
Boards of Directors of the Company or the Bank, by a separate affirmative vote of at least three-fourths (3⁄4) of the entire
membership, determines that the Executive has (i) engaged in acts of personal dishonesty which have resulted in loss to the Company
or the Bank or their affiliates, (ii) become subject to the entry of a final cease and desist order which results in substantial
loss to the Company or the Bank or their affiliates, (iii) willfully breached the Company’s or the Bank’s code of conduct
and business ethics, or (iv) been disqualified or barred by any governmental or self-regulatory authority from serving in the Executive’s
then-current employment capacity. No act or failure to act on the part of the Executive shall be considered “willful”
unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s
action or omission was in the best interests of the Company or the Bank. Any act or failure to act that is based upon authority
given pursuant to a resolution duly adopted by the Boards of Directors of the Company or the Bank, or upon the advice of legal
counsel for the Company or the Bank, shall be conclusively presumed to be done, or omitted to be done, by the Executive in good
faith and in the best interests of the Company and the Bank; and

 

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

 

(c)          after
the giving of the Notice of Intent to Discharge and before the taking of the votes contemplated by Section 6.1(a), the Executive
(together with the Executive’s legal counsel, if the Executive so desires) is afforded a reasonable opportunity to make both
written and oral presentations before the Boards of Directors for the purpose of refuting the alleged grounds for Just Cause for
the Executive’s discharge; and

 

(d)          after
the vote contemplated by Section 6.1(a), the Company and the Bank have furnished to the Executive a notice of termination which
shall specify the effective date of the Executive’s termination of employment (which shall in no event be earlier than the
date on which such notice is deemed given) and include a copy of a resolution or resolutions adopted by the Boards of Directors
of the Company and the Bank authorizing the termination of the Executive’s employment for Just Cause and stating with particularity
the facts and circumstances found to constitute Just Cause for the Executive’s discharge (the “Final Discharge Notice”).

 

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

 

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

 

7.          TERMINATION
BY THE EXECUTIVE.

 

7.1           TERMINATION
BY THE EXECUTIVE FOR GOOD REASON. 

 

(a)          The
Executive shall be entitled to terminate employment hereunder for or with Good Reason (as defined in Section 7.3). Upon any such
termination, the Executive shall be entitled to receive the benefits set forth in Section 9 of this Agreement. A termination of
employment by the Executive for Good Reason shall be effectuated by giving the Company and the Bank written notice (“Notice
of Termination for Good Reason”) of the termination, setting forth in reasonable detail the specific conduct of the Company
or the Bank that constitutes Good Reason and the specific provision(s) of this Agreement on which the Executive relies. A termination
of employment by the Executive for Good Reason shall be effective on the fifth (5th) business day following the date
when the Notice of Termination for Good Reason is given, unless the notice sets forth a later date (which date shall in no event
be later than thirty (30) days after the notice is given).

 

(b)          The
failure to set forth any fact or circumstance in a Notice of Termination for Good Reason shall not constitute a waiver of the right
to assert, and shall not preclude the Executive from asserting, such fact or circumstance in an attempt to enforce any right under
or provision of this Agreement.

 

7.2           OTHER
VOLUNTARY TERMINATION BY THE EXECUTIVE. During the Term of Employment, the Executive may effect, upon sixty (60) days prior
written notice to the Company and the Bank, a Voluntary Termination of employment hereunder and thereupon the Term of Employment
shall end. A “Voluntary Termination” shall mean a termination of employment by the Executive on the Executive’s
own initiative other than (i) a termination due to death or Disability (as defined in Section 11), (ii) a termination for Good
Reason (as defined in Section 7.3), or (iii) a termination as a result of the normal expiration of the full Term of Employment.
If, during the Term of Employment, the Executive’s employment is terminated due to a Voluntary Termination, the Term of Employment
shall thereupon end and the Company or the Bank shall pay to the Executive an amount equal to the sum of (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 plans and programs, if any, of the Company and the Bank.

 

7.3           GOOD
REASON. For purposes of this Agreement, the term “Good Reason” shall mean any of the following:

 

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(i)          any
change in the duties, functions or responsibilities of the Executive that is inconsistent in any material and adverse respect with
the Executive’s duties, functions or responsibilities with the Company or the Bank at the Effective Date (including any material
and adverse diminution of such duties, functions or responsibilities);

 

(ii)         a
reduction of the Executive’s base salary other than in connection with an across-the-board reduction in base salary for all
similarly situated employees;

 

(iii)         the
relocation of the Executive’s office to a location more than thirty (30) miles from its location at the Effective Date; or

 

(iv)        the
taking of any action by the Company or the Bank or successors which would materially and adversely affect the Executive’s
overall compensation and benefits package, excluding (A) changes to the compensation and benefits package made on a non-discriminatory
basis to substantially all similarly-situated employees and (B) any isolated, insubstantial and inadvertent action not taken in
bad faith and which is remedied reasonably promptly after receipt of written notice thereof given by the Executive.

 

(v)         failure
to nominate or reelect the Executive as a member of the Boards of Directors of the Company or of the Bank.

 

(vi)        the
liquidation or complete dissolution of the Company or the Bank; or

 

(vii)       a
material breach of this Agreement by the Company or the Bank.

 

Notwithstanding anything in this
Agreement to the contrary, during the twenty-four (24) month period beginning on the effective date of a Change in Control (as
defined in Section 7.4, and continuing through the second anniversary of such date (but not beyond the Expiration Date), the Executive
may voluntarily terminate his employment for any reason and such termination shall constitute termination With Good Reason.

 

7.4           CHANGE
IN CONTROL. For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred in any of the
following events:

 

(i)          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;

 

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(ii)         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 (ii) 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 (iii) 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
(ii);

 

(iii)        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

 

(iv)        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.

 

8.          TERMINATION
BY THE COMPANY WITHOUT CAUSE. The Executive’s employment with the Company or the Bank may be terminated without Just
Cause by the Boards of Directors of the Company or the Bank, provided, however, that the Company and the Bank shall have the obligation
upon any such termination to make the payments to the Executive provided for under Section 9 of this Agreement.

 

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9.          CERTAIN
TERMINATION BENEFITS. In the event of termination pursuant to Section 7.1 or 8, the Executive shall be entitled to each of
the following benefits:

 

9.1           EARNINGS
TO DATE OF TERMINATION. An amount equal to the sum of (i) base salary or other compensation earned through the date of termination,
plus (ii) any other compensation and benefits as may be provided in accordance with the terms and provisions of any applicable
plans and programs, if any, of the Company and the Bank.

 

9.2           LUMP
SUM PAYMENT. An unreduced lump sum severance benefit equal to the base salary (as provided for in Section 3.1 of this Agreement)
that would have been paid to the Executive (based on the base salary in effect on the date of the Executive’s termination
of employment) through the Expiration Date (including any amount which is contributed by the Company or the Bank on the Executive’s
behalf pursuant to a salary reduction agreement and which is not included in the Executive’s gross income under Sections
125, 132(f) or 402(e)(3) of the Internal Revenue Code of 1986, as amended).

 

Subject to Section 16.20, the
severance benefit payment under this Section 9.2 shall be made to the Executive in one lump sum within five (5) days of the date
of the Executive’s termination of employment.

 

9.3           BENEFIT
CONTINUATION. Continuation of the medical, dental and life insurance benefits described in Section 3.2 and existing on the
date of termination at the level in effect on, and at the same out-of-pocket premium cost to the Executive, as of the date of termination
until the Expiration Date.

 

9.4           VESTING
OF STOCK AWARDS AND OPTIONS. If the Executive’s termination of employment occurs on or after the effective date of a
Change in Control, there shall be an acceleration of all vesting provisions, so that as of the date of termination of the Executive’s
employment, all stock awards made by the Company or the Bank to the Executive, to the extent then unvested or forfeitable, shall
become immediately and fully vested and non-forfeitable, and all options to purchase common stock of the Company, to the extent
then not exercisable, shall become immediately and fully exercisable.

 

10.         ADJUSTMENT
FOR UNAVAILABILITY OF BENEFITS. If the medical, dental and life insurance benefits under any benefit plan or program provided
for under Section 3.2 or continued pursuant to Section 9.3 may not be provided under any such plan to the Executive or to the Executive’s
dependents, the Company or the Bank shall pay or provide for coverage on a comparable basis for the Executive and, where applicable,
the Executive’s dependents.

 

11.         DISABILITY.

 

11.1         TERMINATION
DUE TO DISABILITY. The Company and the Bank may terminate the Executive’s employment upon a determination, by vote of
a majority of the Boards of Directors of the Company and the Bank, acting in reliance on the written advice of a medical professional
acceptable to the Boards of Directors of the Company and the Bank, that the Executive is suffering from a physical or mental impairment
which, at the date of the determination, has prevented the Executive from performing the Executive’s assigned duties on the
required basis for a period of at least one hundred and eighty (180) days during the one-year period ending with the date of the
determination or is likely to result in death or prevent the Executive from performing the Executive’s assigned duties on
a basis substantially consistent with this agreement for a period of at least one hundred and eighty (180) days during the period
of one (1) year beginning with the date of the determination (such impairment, the “Disability”). Subject to Section
11 of this Agreement, in such event:

 

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(a)          The
Company or the Bank shall pay to the Executive an amount equal to the sum of (i) base salary or other compensation earned through
the date of termination, plus (ii) 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 Company or the Bank.

 

(b)          In
addition to the amounts payable pursuant to Section 11.1(a), the Company or the Bank shall to pay the Executive the base salary
that would have been paid through the Expiration Date, reduced by any amounts to be paid to the Executive under any disability
program sponsored by the Company or the Bank during the same time period. The Company or the Bank shall make the payment in a single
lump sum within five (5) days of the Executive’s termination of employment.

 

11.2         EFFECTIVE
DATE OF TERMINATION. A termination of employment due to Disability under this Section 11 shall be effected by notice of termination
given to the Executive by the Company or the Bank and shall take effect on the later of the effective date of termination specified
in such notice or the date on which the notice of termination is deemed given to the Executive.

 

12.         EXCISE
TAXES.

 

12.1         COVERED
BENEFITS. “Covered Benefits” shall mean any payment or benefit paid or provided to the Executive by the Company
or the Bank or any affiliate or any successor in interest to the Company or the Bank (whether pursuant to this Agreement or otherwise)
that will be (or in the opinion of Tax Counsel (as defined below) might reasonably be expected to be) subject to any excise tax
(the “Excise Tax”) imposed under Section 4999 of the Code. In the event that at any time during or after the Term of
Employment the Executive shall receive any Covered Benefits, the Company shall pay to the Executive an additional amount (the “Gross-Up
Payment”) such that the net amount retained by the Executive from the Gross-Up Payment, after deduction of any federal, state
and local income taxes, Excise Tax, and FICA and Medicare withholding taxes on the Gross-Up Payment, shall be equal to the Excise
Tax on the Covered Benefits. For purposes of determining the amount of such Excise Tax on the Covered Benefits, the amount of the
Covered Benefits that shall be taken into account in calculating the Excise Tax shall be equal to (i) the Covered Benefits, less
(ii) the amount of such Covered Benefits that, in the opinion of tax counsel selected by the Company and reasonably acceptable
to the Executive (“Tax Counsel”), are not parachute payments (within the meaning of Section 280G(b)(1) of the Code).

 

12.2         CERTAIN
ASSUMPTIONS. For purposes of this Section 12, the Executive shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Excise Tax is payable and state and local income taxes at the
highest marginal rate of taxation in the state and locality of the Executive’s residence on the effective date of the Executive’s
termination, net of the reduction in federal income taxes which could be obtained from deduction of such state and local taxes.
Except as otherwise provided herein, all determinations required to be made under this Section 12 shall be made by Tax Counsel,
which determinations shall be conclusive and binding on the Executive and Company, absent manifest error.

 

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12.3         TAX
INDEMNIFICATION. The Company shall indemnify and hold the Executive harmless from any and all losses, costs and expenses (including
without limitation, reasonable attorney’s fees, reasonable accountant’s fees, interest, fines and penalties of any
kind) which the Executive incurs as a result of any administrative or judicial review of the Executive’s liability under
Section 4999 of the Code by the Internal Revenue Service or any comparable state agency through and including a final judicial
determination or final administrative settlement of any dispute arising out of the Executive’s liability for the Excise Tax
or otherwise relating to the classification for purposes of Section 280G of the Code of any of the Covered Benefits or other payment
or benefit in the nature of compensation made or provided to the Executive by the Company. The Executive shall promptly notify
the Company in writing whenever the Executive receives notice of the commencement of any judicial or administrative proceeding,
formal or informal, in which the federal tax treatment under Section 4999 of the Code of any amount paid or payable under this
Agreement or otherwise is being reviewed or is in dispute (including a notice of audit or other inquiry concerning the reporting
of the Executive’s liability under Section 4999). The Company may assume control at its expense over all legal and accounting
matters pertaining to such federal or state tax treatment (except to the extent necessary or appropriate for the Executive to resolve
any such proceeding with respect to any matter unrelated to the Covered Benefits or other payment or benefit in the nature of compensation
made or provided to the Executive by the Company) and the Executive shall cooperate fully with the Company in any such proceeding.
The Executive shall not enter into any compromise or settlement or otherwise prejudice any rights the Company may have in connection
therewith without prior consent of the Company. In the event that the Company elects not to assume control over such matters, the
Company shall promptly reimburse the Executive for all expenses related thereto as and when incurred upon presentation of appropriate
documentation relating thereto.

 

13.         CONFIDENTIAL
INFORMATION. The Executive will not disclose to any other Person (as defined in Section 16.2) (except as required by applicable
law or in connection with the performance of the Executive’s duties and responsibilities hereunder), or use for the Executive’s
own benefit or gain, any confidential information of the Company or the Bank or any affiliate obtained by the Executive incident
to the Executive’s employment with the Company or the Bank or their affiliates. The term “Confidential Information”
includes, without limitation, financial information, business plans, prospects and opportunities (such as lending relationships,
financial product developments, or possible acquisitions or dispositions of business or facilities) which have been discussed or
considered by the management of the Company or the Bank or their affiliates but does not include any information which has become
part of the public domain by means other than the Executive’s failure to honor the obligations hereunder.

 

14.         NO
MITIGATION; NO OFFSET. In the event of any termination of employment under this Agreement, the Executive shall be under no
obligation to seek other employment or to mitigate damages, and there shall be no offset against any amounts due to the Executive
under this Agreement for any reason, including, without limitation, on account of any remuneration attributable to any subsequent
employment that the Executive may obtain. 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.

 

15.         INDEMNIFICATION
AND INSURANCE.

 

15.1         INDEMNIFICATION.
To the maximum extent permitted under applicable law, during the Term of Employment and for a period of six years thereafter, the
Company and the Bank shall indemnify the Executive against and hold the Executive harmless from any costs, liabilities, losses
and exposures to the fullest extent and on the most favorable terms and conditions that similar indemnification is offered to any
director or officer of the Company and the Bank or any affiliate thereof.

 

15.2         INSURANCE.
During the Term of Employment and for a period of six years thereafter, the Company and the Bank shall cause the Executive to be
covered by and named as an insured under any policy or contract of insurance obtained by the Company and the Bank to insure directors
and officers against personal liability for acts or omissions in connection with service as an officer or director of the Company
or the Bank or any of their affiliates service in other capacities at its request. The coverage provided to the Executive pursuant
to this Section 15 shall be of the same scope and on the same terms and conditions as the coverage (if any) provided to other officers
or directors of the Company and the Bank.

 

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16.         MISCELLANEOUS.

 

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

 

16.2         DEFINITION
OF “PERSON”. For purposes of this Agreement, the term “PERSON” shall mean an individual, a corporation,
an association, a partnership, an estate, a trust and any other entity or organization.

 

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

 

16.4         ARBITRATION.
The Company and the Bank and the Executive 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 Company’s or the Bank 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 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 Executive 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 Company or the Bank or the Executive pursues any claim, dispute or controversy against the other in a
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 attorney’s 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.

 

16.5         INDEMNIFICATION
FOR ATTORNEYS’ FEES. In the event any dispute or controversy arising under or in connection with Executive’s termination
or this Agreement is resolved in favor of the Executive, whether by judgment, arbitration or settlement, the Executive shall be
entitled to the payment of: (i) all legal fees and expenses incurred by the Executive 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 the Executive under this Agreement.

 

16.6         INTERPRETATION.
The recitals hereto constitute an integral part of this Agreement. References to Sections include subsections, which are part of
the related Section (e.g., a section numbered “Section 5.5” would be part of “Section 5” and references
to “Section 5” would also refer to material contained in the subsection described as “Section 5.5”).

 

    	10

    	 

    

 

16.7         ASSIGNMENT;
SUCCESSORS AND ASSIGNS, ETC.

 

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

 

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

 

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

 

16.8         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.

 

16.9         REDUCTIONS;
REGULATORY REQUIREMENTS. Notwithstanding anything to the contrary contained in this Agreement, any and all payments and benefits
to be provided to the Executive hereunder 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 Company and the
Bank and their affiliates. The Executive confirms that the Executive is aware of the fact that the Federal Deposit Insurance Corporation
has the power to preclude the Company or the Bank or their affiliates from making payments to the Executive under this Agreement
under certain circumstances. The Executive agrees that neither the Company, the Bank nor their affiliates shall be deemed to be
in breach of this Agreement if they are precluded from making a payment otherwise payable hereunder by reason of regulatory requirements
binding on the Company or the Bank or their affiliates, as the case may be.

 

16.10         WAIVER.
No waiver of any provision hereof 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.

 

16.11         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 Executive at the Executive’s last
known address on the books of the Company and the Bank or, in the case of the Company and the Bank, at their main office, attention
of the Chair of the Compensation Committee of the Boards of Directors of the Company and the Bank.

 

    	11

    	 

    

 

16.12         ELECTION
OF REMEDIES. An election by the Executive to resign for Good Reason under the provisions of this Agreement shall not constitute
a breach by the Executive of any agreement the Executive may have with the Company and the Bank and shall not be deemed a voluntary
termination of employment by the Executive for the purpose of interpreting the provisions of any of the Company’s and the
Bank’s benefit plans, programs or policies.

 

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

 

16.14         NO
EFFECT ON LENGTH OF SERVICE. Nothing in this Agreement shall be deemed to prohibit the Company or the Bank from terminating
the Executive’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 Company or the Bank and the Executive in the event of any such termination.
In addition, nothing in this Agreement shall require the termination of the Executive’s employment at the expiration of the
Term of Employment. Any continuation of the Executive’s employment beyond the expiration of the Term of Employment shall
be on an “at-will” basis, unless the Company and the Executive agree otherwise.

 

16.15         ALLOCATION
OF OBLIGATIONS AS BETWEEN THE COMPANY AND ITS AFFILIATES. The parties understand that the Executive will perform substantial
services for the Company and the Bank. Unless otherwise determined by the Boards of Directors of the Company and the Bank, the
Executive shall not be entitled to compensation in addition to the compensation set forth in Section 3 of this Agreement as a result
of the Executive’s serving as an officer of any affiliate of the Company or the Bank. The Company, the Bank and any affiliate
shall apportion between them the amounts to be paid under this Agreement, based upon the services rendered by the Executive to
each of entities, respectively. Any entitlement of the Executive to severance compensation or other termination benefits under
this Agreement shall be determined on the basis of the aggregate compensation payable to the Executive by the affiliates and the
Company and the Bank, and liability therefor shall be apportioned between the affiliates and the Company and the Bank in the same
manner as compensation paid to the Executive for services to each of them. It is the intent and purpose of this Section 16.15 that
the Executive have the same legal and economic rights that the Executive would have if all of the Executive’s services were
rendered to and all of the Executive’s compensation were paid by the Company and the Bank.

 

16.16         PAYMENTS
TO ESTATE OR BENEFICIARIES. In the event of the Executive’s death prior to the completion by the Company or the Bank
of all payments due the Executive under this Agreement, the Company or the Bank shall continue such payments (other than payments
which by their terms cease upon death) to the Executive’s beneficiary, as designated in writing by the Executive and provided
to the Company or the Bank prior to the Executive’s death (or to the Executive’s estate, if the Executive fails to
make such designation) and, as applicable, to the Executive’s surviving dependents.

 

16.17         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.

 

    	12

    	 

    

 

16.18         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.

 

16.19         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.

 

16.20         Section
409A of the Code.

 

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

 

(b)          If
when separation from service occurs the Executive is a “specified employee” within the meaning of Section 409A of the
Code, and if the cash severance payment under Section 4(b) or 5(c), (e) would be considered deferred compensation under Section
409A of the Code, and, finally, if an exemption from the six-month delay requirement of Section 409A(a)(2)(B)(i) of the Code is
not available (i.e., the “short-term deferral exception” under Treasury Regulations Section 1.409A-1(b)(4) or the “separation
pay exception” under Treasury Section 1.409A-1(b)(9)(iii)), the Company or the Bank will make the maximum severance payment
possible in order to comply with an exception from the six month requirement and make any remaining severance payment to the Executive
in a single lump sum without interest on the first payroll date that occurs after the date that is six (6) months after the date
on which the Executive separates from service.

 

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

 

    	13

    	 

    

 

IN WITNESS WHEREOF,
this Agreement has been executed as a sealed instrument by the Company and the Bank, by their duly authorized officer, and by the
Executive, as of the date first above written.

 

	THE
    COMMUNITY FINANCIALCORPORATION	 	EXECUTIVE
	 	 	 
	By: 	/s/ William J. Pasenelli	 	/s/ Michael L. Middleton
	Its: 	President	 	Michael L. Middleton

 

	Attest:	/s/ Christy Lombardi	 	Witness:	/s/ Christy Lombardi

 

COMMUNITY BANK OF THE CHESAPEAKE

 

	By: 	/s/ William J. Pasenelli	 
	Its: 	President	 
	 	 	 
	Attest: 	/s/ Christy Lombardi	 

 

    	14

    	 

    

 

Executive
Chairman JOB DESCRIPTION AND RESPONSIBILITIES

 

Purpose

 

The Executive Chairman is responsible for ensuring that the
board of the Company is effective in setting and implementing the direction and strategy of the Company and its affiliates and
to act as the Company’s leading representative.

 

Reporting Line

 

The Executive Chairman reports to the Board of Directors of
the Company.

 

Areas of Responsibility

 

Leadership and strategic direction

 

		·	To lead the board, ensuring its effectiveness in all aspects of its
role

 

		·	To plan for and consider strategic matters for the Company and its
affiliates

 

		·	To take the chair at general meetings, board meetings and strategy
meetings

 

		·	To be a represent the Company and its affiliates

 

		·	To be a represent the Company to the government, regulatory authorities,
the media, shareholders and the general public

 

		·	To ensure that succession plans are in place for all key executives

 

		·	To oversee the formulation of and propose to the board for approval,
a corporate strategy for the Company and its affiliates which is directed towards the profitable growth and operation of the Company
and its affiliates

 

		·	To lead investor related activities and capital formation transactions

 

Delegation and oversight

 

		·	To ensure that the board sets appropriate levels of authority for
the Chief Executive Officer and other individual executives

 

		·	To provide mentoring and counsel to executive management through participation
in senior management meetings on a periodic basis 

 

		·	To regularly review operational performance and strategic direction
of the Company and its affiliates with executive management

 

		·	To periodically review the organizational structure of the Company
and its affiliates and make recommendations as appropriate

 

		·	To formalize the roles and responsibilities of the executive management
team, including clear delegation of authorities

 

		·	To be engaged in the Enterprise Risk Management process for the Bank
and Company 

 

    	A-1

    	 

    

 

		·	To participate in Mergers and Acquisition process

 

Board composition

 

		·	Advise the governance committee on the composition of the board

 

		·	To ensure that processes are in place for the appointment, as well
as retirement, succession and, if necessary, removal of directors

 

Board performance

 

		·	To ensure that the board remains focused on its role and the achievement
of key tasks

 

		·	To establish a process for annual evaluations of the board, its members
and its committees

 

		·	To ensure that appropriate objectives are established for the Chief
Executive Officer and to monitor performance against those objectives

 

		·	To ensure that the board satisfactorily oversees and evaluates the
implementation of the strategy, policies and business plans of the Company and its affiliates

 

Support and development

 

		·	To provide support and advice to the Chief Executive Officer as appropriate
and ensure effective liaison and continuity of communication on developments occurring between formal board meetings

 

		·	To oversee the ongoing development needs of individual directors are
identified and met

 

Communication with shareholders

 

		·	To ensure effective communication with all shareholders and maintain
an effective shareholder relations process.

 

		·	Promote the goodwill and support of shareholders and relevant stakeholders

 

		·	To ensure, in conjunction with the Chief Executive Officer, that the
views of major shareholders are communicated to the board and that members of the board develop an understanding of those views

 

Business strategy and management

 

		·	To develop objectives and strategies that ensure the long term stability
of the business

 

		·	To monitor successful achievement of objectives and execution of strategy
as approved by the board.

 

		·	To provide oversight to the Company and Bank’s budget and planning
process

 

Investment and financing

 

		·	To identify and execute strategic acquisitions and disposals, advising
on major proposals or bids

 

    	A-2

    	 

    

 

		·	To advise on geographic and revenue diversification initiatives

 

		·	To advise on new business opportunities

 

Risk management and controls

 

		·	Provide oversight of the Company and Bank’s risk profile, including
the safety and soundness of the business, in line with the risk parameters established by the board

 

Board committees

 

		·	To make recommendations to the Compensation Committee on compensation
policies, executive compensation and terms of employment of the senior executive team 

 

		·	To make recommendations to the Governance Committee on the role and
capabilities required of directors

 

Communication

 

		·	Provide a means for timely and accurate disclosure
of information to the Board

 

    	A-3Exhibit 10.30

 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

 

2014

 

THIS AGREEMENT, is made and entered
into effective as of the 1st day of November 2014 by and between Community Bank of the Chesapeake, a banking corporation organized
and existing under the laws of the State of Maryland, hereinafter referred to as the "Plan Sponsor", and William Pasenelli,
hereinafter referred to as the "Participant".

 

WITNESSETH

 

WHEREAS, it is the consensus of the
Board that the Participant's services to the Plan Sponsor in the past have been of exceptional merit and have constituted an invaluable
contribution to the general welfare of the Plan Sponsor bringing it to its present status of operating efficiency, and its present
position in its field of activity;

 

WHEREAS, the experience of the Participant,
his knowledge of the affairs of the Plan Sponsor, his reputation and contacts in the industry are so valuable that assurance of
his continued services is essential for the future growth and profits of the Plan Sponsor and it is in the best interests of the
Plan Sponsor to arrange terms of continued employment for the Participant so as to reasonably assure his remaining in the Plan
Sponsor's employment during his lifetime or until the age of retirement;

 

WHEREAS, it is the desire of the
Plan Sponsor that his services be retained as herein provided;

 

WHEREAS, the Participant is willing
to continue in the employ of the Plan Sponsor provided the Plan Sponsor agrees to pay to his beneficiaries certain benefits in
accordance with the terms and conditions hereinafter set forth;

 

WHEREAS, the Plan Sponsor intends
that the Plan shall at all times be administered and interpreted in such a manner as to constitute an unfunded nonqualified deferred
compensation plan for tax purposes and for purposes of Title I of ERISA. This Plan is not intended to qualify for favorable tax
treatment pursuant to IRC Section 401(a) of the Code or any successor section or statute. This Plan is intended to comply with
IRC Section 409A as created under The American Jobs Creation Act of 2004 (the "Jobs Act of 2004"). It is both anticipated
and expected that the terms and provisions of this Plan may need to be amended in the future to assure continued compliance. The
Plan Sponsor and the Participant acknowledge that fact and agree to take any and all steps necessary to operate the Plan in "good
faith" based on their current understanding of the regulations; and

 

NOW THEREFORE; in consideration of
services performed in the past and to be performed in the future as well as of the mutual promises and covenants herein contained,
it is agreed as follows:

 

    	 

    	 

    

 

ARTICLE 1

DEFINITIONS

 

DEFINITION OF TERMS. Certain words
and phrases are defined when first used in later Articles of this Plan. Whenever any words are used herein in the masculine, they
shall be construed as though they were in the feminine in all cases where they would so apply; and whenever any words are used
herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the
case may be, in all cases where they would so apply. For the purpose of this Plan, unless otherwise clearly apparent from the context,
the following phrases or terms shall have the following indicated meanings:

 

1.1 "Accrued
Benefit" shall mean the portion of the Participant's Normal Retirement Benefit that has accrued as of the applicable
date of reference, with respect to services performed by the Participant beginning on November 1, 2014, as calculated for
purposes of Generally Accepted Accounting Principles (GAAP) and recorded on the books of the Plan Sponsor.

 

1.2 "Applicable
Guidance" shall mean, as the context requires, Code §409A and the Final Treasury Regulations issued thereunder, or
other written Treasury or IRS guidance regarding or affecting Code §409A.

 

1.3 "Beneficiary"
shall mean the person or persons, natural or otherwise, designated in writing by a Participant in accordance with Article 5
before his death to receive Plan benefits in the event of the Participant's death.

 

1.4 "Board" shall
mean the board of director's of the Plan Sponsor, unless specifically noted otherwise.

 

1.5 "Cause" shall
mean any of the following acts or circumstances: (i) willful destruction by the Participant of property of the Plan Sponsor
having a material value to the Plan Sponsor; (ii) fraud, embezzlement, theft, or comparable dishonest activity committed by
the Participant (excluding acts involving a de minimis dollar value and not related to the Plan Sponsor); (iii) the
Participant's conviction of or entering a plea of guilty or nolo contendere to any crime constituting a felony or any
misdemeanor involving fraud, dishonesty, or moral turpitude (excluding acts involving a de minimis dollar value and not
related to the Plan Sponsor); (iv) the Participant's breach, neglect, refusal, or failure to materially discharge the
Participant's duties (other than due to physical or mental illness) commensurate with the Participant's title and function or
the Participant's failure to comply with the lawful directions of a senior managing officer of the Plan Sponsor in any such
case that is not cured within fifteen (15) days after the Participant has received written notice thereof from such senior
managing officer; or (v) any willful misconduct by the Participant which may cause substantial economic or reputation injury
to the Plan Sponsor, including, but not limited to, sexual harassment.

 

    	2

    	 

    

 

1.6 "Change in
Control" shall mean the occurrence of a Change in Control event, within the meaning of Treasury Regulations
§1.409A-3(i)(5) and described in any of subparagraph (a), (b), or (c), (collectively referred to as "Change in
Control Events"), or any combination of the Change in Control Events. To constitute a Change in Control Event with
respect to the Participant or Beneficiary, the Change in Control Event must relate to: (i) the corporation for whom the
Participant is performing services at the time of the Change in Control Event; (ii) the corporation that is liable for the
payment of the deferred compensation (or all corporations liable for the payment if more than one corporation is liable); or
(iii) a corporation that is a majority shareholder of a corporation identified in clause (i) or (ii), or any corporation in a
chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a
corporation identified in clause (i) or (ii).

 

(a)
Change in Ownership. A Change in Ownership occurs if a person, or a group of persons acting together, acquires more than
fifty percent (50%) of the stock of the corporation, measured by voting power or value. Incremental increases in ownership by
a person or group that already owns fifty percent (50%) of the corporation do not result in a Change of Ownership, as defined
in Treasury Regulations §1.409A-3(i)(5)(v).

 

(b)
Change in Effective Control. A Change in Effective Control occurs if, over a twelve (12) month period: (i) a person or group
acquires stock representing thirty percent (30%) of the voting power of the corporation; or (ii) a majority of the members of
the board of directors of the ultimate parent corporation is replaced by directors not endorsed by the persons who were
members of the board before the new directors' appointment, as defined in Treasury Regulations §1.409A-3(i)(5)(vi).

 

(c)
Change in Ownership of a Substantial Portion of Corporate Assets. A Change in Control based on the sale of assets occurs if a
person or group acquires Forty percent (40%) or more of the gross fair market value of the assets of a corporation over a
twelve (12) month period. No change in control results pursuant to this Article (c) if the assets are transferred to certain
entities controlled directly or indirectly by the shareholders of the transferring corporation, as defined in Treasury
Regulations §1.409A-3 (i)(5) (vii).

 

1.7 "Claimant" shall
mean a person who believes that he or she is being denied a benefit to which he or she is entitled hereunder.

 

1.8 "Code" shall mean
the Internal Revenue Code of 1986, as amended.

 

1.9 "Disability"
shall mean a condition of the Participant whereby he or she 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 Plan Sponsor. 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, Railroad Retirement Board, or in accordance with a disability
insurance program, provided that the definition of disability applied under such disability insurance program complies with
the requirements of Treasury Regulation §1.409A-3(i)(4) and authoritative guidance.

 

    	3

    	 

    

 

1.10"Effective Date"
shall mean the date specified on the first page of this Plan.

 

1.11"ERISA" shall mean the
Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

 

1.12"Normal Retirement Age"
shall mean the date the Participant attains age 65.

 

1.13"Normal Retirement Benefit"
shall mean an annual benefit payment in the amount of Fifty Eight Thousand Six hundred One dollars ($58,601) for a period of Fifteen
(15) years.

 

1.14"Participant" shall
mean William Pasenelli

 

1.15"Plan" shall mean this
Supplemental Executive Retirement Plan Agreement, all Election Forms, the Trust, (if any), and any other written documents relevant
to the Plan. For purposes of applying Code §409A requirements, this Plan is a non-account balance plan under Treasury Regulation
§1.409-1(c)(2)(i)(A).

 

1.16"Plan Administrator"
or "Administrator" shall be a committee designated by the Plan Sponsor. If a Participant is part of a group of persons
designated as a committee or Plan Administrator, then the Participant may not participate in any activity or decision relating
solely to his or her individual benefits under this Plan. Matters solely affecting the applicable Participant will be resolved
by the remaining committee members.

 

1.17"Plan Sponsor" shall
mean the person or entity: (i) receiving the services of the Participant; and (ii) all persons with whom such person or entity
would be considered a single employer under the parent-subsidiary rules of Code §414(b) or §414(c).

 

1.18"Plan Year" shall mean,
for the first Plan Year, the period beginning on the Effective Date of the Plan and ending December 31 of such calendar year, and
thereafter, a twelve (12) month period beginning January 1 of each calendar year and continuing through December 31 of such calendar
year.

 

1.19"Section 409A" shall
mean Section 409A of the Code and the Treasury Regulations and other Applicable Guidance issued under that Section.

 

1.20"Separation from Service"
shall mean the occurrence of a Participant's death, retirement, or "other termination of employment" (as defined in Treasury
Regulations §1.409A-l(h)(l)(ii)) with the Plan Sponsor (as defined in Treasury Regulations §1.409A-1(h)(3)). However,
a Separation from Service shall not occur if 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 months, or if longer, so long as the Participant retains a right to reemployment
with the Plan Sponsor under an applicable statute or by contract.

 

    	4

    	 

    

 

1.21"Specified Employee"
shall mean that the Participant also satisfies the definition of a "key employee" as such term is defined in Code §416(i)
(without regard to Section 416(i)(5)). However, the Participant is not a Specified Employee unless any stock of the Plan Sponsor
is publicly traded on an established securities market or otherwise, as defined in Code §1.897-l(m). If the Participant is
a key employee at any time during the twelve (12) months ending on the identification date (see below), the Participant is a Specified
Employee for the twelve (12) month period commencing on the first day of the fourth month following the identification date. For
purposes of this Article, the identification date is December 31. The determination of the Participant as a Specified Employee
shall be made by the Administrator in accordance with IRC Section 416(i), the "specified employee" requirements of Section
409A, and Treasury Regulations.

 

1.22"Taxable Year" shall
mean the twelve (12) consecutive month period ending each December 31.

 

1.23"Treasury Regulations"
shall mean regulations promulgated by the Internal Revenue Service for the U.S. Department of the Treasury, as they may be amended
from time to time.

 

1.24"Trust" shall mean one
or more trusts that may be established in accordance with the terms of this Plan.

 

ARTICLE 2

SELECTION, ENROLLMENT, ELIGIBILITY

 

2.1Selection by Plan Sponsor. Participation
in the Plan shall be limited to William Pasenelli, a member of a select group of management or highly compensated employees of
the Plan Sponsor, as determined by the Plan Sponsor in its sole and absolute discretion.

 

2.2Re-Employment. If a Participant
who incurs a Separation from Service is subsequently re-employed, he or she may, at the sole and absolute discretion of the Plan
Administrator, become a Participant in accordance with the provisions of the Plan.

 

2.3Eligibility; Commencement of Participation.
Provided that the Participant has met all enrollment requirements set forth in the Plan and required by the Plan Administrator,
the Participant shall continue participation in the Plan on the date the Plan is executed by the Plan Sponsor and the Participant.

 

2.4Termination of Participation. If
the Plan Administrator determines in good faith that a Participant no longer qualifies as a member of a select group of management
or highly compensated employees, as membership in such group is determined in accordance with Section 201(2), 301(a)(3) and 401(a)(1)
of ERISA, the Plan Administrator shall cease further benefit accruals hereunder.

 

ARTICLE 3

BENEFITS

 

3.1Normal Retirement Benefit. If the
Participant remains in the service of the Plan Sponsor until reaching his Normal Retirement Age, the Participant shall be entitled
to his Normal Retirement Benefit. The annual installments shall commence to be paid on the on the first day of the second month
following the Participant's Separation from Service. Notwithstanding the foregoing, in the event that the Participant is determined
by the Plan Administrator to be a Specified Employee, the first benefit payment shall be paid on the first day of the seventh month
following Separation from Service.

 

    	5

    	 

    

 

3.2Death Prior to Commencement of Benefit
Payments. In the event the Participant should die while actively employed by the Plan Sponsor at any time after the date of this
Plan but prior to his Normal Retirement Age, the Plan Sponsor will pay the Accrued Benefit in fifteen (15) equal annual installments
to the Participant's Beneficiary. The payments shall commence to be paid on the first day of the second month following the month
in which the Participant dies.

 

3.3Death Subsequent to Commencement
of Benefit Payments. In the event the Participant dies while receiving payments, but prior to receiving the fifteen (15) annual
installment payments due and owing hereunder, the unpaid balance of the payments shall continue to be paid to the Participant's
Beneficiary for the balance of the fifteen (15) annual installments.

 

3.4Disability Benefit. In the event
the Participant becomes Disabled prior to the date the Participant dies or experiences a Separation from Service, and prior to
the date of a Change in Control, the Participant shall be entitled to receive his Accrued Benefit, calculated as of the date of
determination of Disability. Such benefit shall commence to be paid on the first day of the month following the Participant's sixty-fifth
(65th) birthday or death (whichever occurs first), and shall be paid in fifteen (15) equal annual installments.

 

3.5Separation from Service Benefit.
If the Participant experiences a Separation from Service prior to Normal Retirement Age, death, Disability, or as described in
the second paragraph of Section 3.6, then the Participant shall be entitled to a benefit equal to the Accrued Benefit, calculated
as of the date of Separation from Service. Such benefit shall commence to be paid on the first day of the second month following
the month in which the Participant achieves Normal Retirement Age or dies (whichever occurs first), and shall be paid in fifteen
(15) equal annual installments. Notwithstanding the foregoing, in the event that the Participant is determined by the Plan Administrator
to be a Specified Employee, the first benefit payment shall be paid on the later of (i) the first day of the second month following
the month in which the Participant achieves Normal Retirement Age or (ii) the first day of the seventh month following Separation
from Service (except in the case of a Separation from Service due to death).

 

3.6Change in Control Benefit. In the
event there is a Change in Control prior to the Participant's Normal Retirement Age, and prior to the date the Participant dies,
becomes Disabled or experiences a Separation from Service, the Participant shall become 100% vested in his Normal Retirement Benefit.
Subject to the paragraph below, the Participant's Normal Retirement Benefit shall commence to be paid on the first day of the second
month following the month in which the Participant attains Normal Retirement Age or dies, whichever is first to occur.

 

    	6

    	 

    

 

Notwithstanding the preceding, if
the Participant experiences a Separation from Service within 24 months following the Change in Control, the following provisions
apply. The Participant's Normal Retirement Benefit shall commence to be paid on the first day of the second month following the
Participant's Separation from Service (or, if the Participant is a Specified Employee, on the first day of the seventh month following
the Participant's Separation from Service). In lieu of receiving the Normal Retirement Benefit in fifteen (15) annual installments,
the Participant may elect to receive the Normal Retirement Benefit pursuant to this Section 3.6 in the form of (i) a lump sum,
(ii)equal annual installments over two (2) years, or (iii) equal annual installments over five (5) years. Any election by the
Participant pursuant to this Section 3.6 must be submitted to the Plan Sponsor by the date the Participant initially becomes eligible
to participate in the Plan.

 

3.7Termination for Cause. Notwithstanding
anything in this Plan to the contrary, if the Plan Sponsor terminates the Participant's employment for "Cause", then
the Participant shall not be entitled to any benefits under the terms of this Plan.

 

3.8Prohibition on Acceleration
of Payments. Notwithstanding anything in this Plan to the contrary, neither the Plan Sponsor nor a Participant may accelerate the
time or schedule of any payment or amount scheduled to be paid under this Plan, except that the Plan Sponsor, in its discretion,
may accelerate payments as permitted by Treasury Regulations §1.409A-3(j)(4). The Plan Sponsor shall deny any change made
to an election if the Plan Sponsor determines that the change violates the requirements of authoritative guidance.

 

3.9Subsequent Changes in the
Time or Form of Payment. If permitted by the Plan Sponsor, a Participant may elect to change the time or form of payments (collectively,
"payment elections"), provided the following conditions are met:

 

(i)Such
change will not take effect until at least twelve (12) months after the date on which the new payment election is made and approved
by the Plan Administrator;

 

(ii)If the
change of payment election relates to a payment based on Separation from Service, or if the payment is at a specified time or pursuant
to a fixed schedule, the change of payment election must result in payment being deferred for a period of not less than five (5)
years from the date such payment would otherwise have been paid (or in the case of a life annuity or installment payments,
which are treated as a single payment, five (5) years from the date the first amount was scheduled to be paid);

 

(iii)If
the change of payment election relates to a payment at a specified time or pursuant to a fixed schedule, the Participant or Plan
Sponsor must make the change of payment election not less than twelve (12) months before the date the payment is scheduled to be
paid (or in the case of a life annuity or installment payments, which are treated as a single payment, twelve (12) months before
the date the first amount was scheduled to be paid).

 

    	7

    	 

    

 

Notwithstanding the preceding, to
the extent permitted under Section 409A and by the Plan Sponsor, the Participant may elect the timing and manner of distributions
during 2008 (except that a Participant cannot in 2008 change payment elections with respect to payments that the Participant would
otherwise receive in 2008, or make an election that causes payments scheduled for subsequent years to be made in 2008), and such
election shall not be treated as a change in the form and timing of payment or an acceleration of payment under Section 409A.

 

3.10Delay in Payment by Plan Sponsor.

 

(a)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 Plan Sponsor treats all payments to similarly situated Participants on a reasonably consistent
basis.

 

(i)Payments subject
to Section 162(m). A payment may be delayed to the extent that the Plan Sponsor reasonably anticipates that if the payment were
made as scheduled, the Plan Sponsor's deduction with respect to such payment would not be permitted due to the application of Code
§162(m). If a payment is delayed, such payment must be made either:

 

(1)during the Participant's
first Taxable Year in which the Plan Sponsor reasonably anticipates, or should reasonably anticipate, that if the payment is made
during such year, the deduction of such payment will not be barred by application of Code §162(m) or,

 

(2)during the period
beginning with the date of the Participant's Separation from Service and ending on the later of the last day of the Taxable Year
of the Plan Sponsor in which the Participant separates from service or the 15th day of the third month following the Participant's
Separation from Service. Where any scheduled payment to a specific Participant in the Plan Sponsor's Taxable Year is delayed in
accordance with this Article, the delay in payment will be treated as a subsequent deferral election unless all scheduled payments
to the Participant that could be delayed in accordance with this Article are also delayed. Where the payment is delayed to a date
on or after the Participant's Separation from Service, the payment will be considered a payment upon a Separation from Service
for purposes of the rules under Treasury Regulations §1.409A-3(i)(2) (payments to specified employees upon a separation from
service) and, the 6 month delay rule will apply for Specified Employees.

 

(ii)Payments that
would violate Federal securities laws or other applicable law. A payment may be delayed where the Plan Sponsor 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 Plan Sponsor 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 or other provision
of the Internal Revenue Code is not treated as a violation of applicable law.

 

    	8

    	 

    

 

(iii)Other events and conditions. The
Plan Sponsor may delay a payment upon such other events and conditions as the Commissioner of the IRS may prescribe.

 

(b)Treatment of
Payment as Made on Designated Payment Date. Each payment under this Plan is deemed made on the required payment date even if the
payment is made after such date, provided the 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) in case the Plan Sponsor cannot calculate
the payment amount on account of administrative impracticality which is beyond the Participant's control (or the control of the
Participant's estate), in the first calendar year in which payment is practicable; (iv) in the case where the payment would jeopardize
the ability of the Plan Sponsor to continue as a going concern, in the first calendar year in which the making of the payment would
not have such effect.

 

3.11Unsecured General Creditor
Status of Participant:

 

(a)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 Plan Sponsor and no person shall have any interest in any such asset by virtue of any provision
of this Plan. The Plan Sponsor's obligation hereunder shall be an unfunded and unsecured promise to pay money in the future. To
the extent that any person acquires a right to receive payments from the Plan Sponsor under the provisions hereof, such right shall
be no greater than the right of any unsecured general creditor of the Plan Sponsor and no such person shall have or acquire any
legal or equitable right, interest, or claim in or to any property or assets of the Plan Sponsor.

 

(b)In the event
that the Plan Sponsor purchases an insurance policy or policies insuring the life of a Participant or employee, to allow the Plan
Sponsor to recover or meet the cost of providing benefits, in whole or in part, hereunder, no Participant or Beneficiary shall
have any rights whatsoever in said policy or the proceeds therefrom. The Plan Sponsor or the Trustee of the Trust (if any) shall
be the primary owner and beneficiary of any such insurance policy or property and shall possess and may exercise all incidents
of ownership therein. No insurance policy with regard to any director, "highly compensated employee", or "highly
compensated individual" as defined in IRS Section 101 (j) shall be acquired before satisfying the Section 101 (j) "Notice
and Consent" requirements.

 

(c)In the event
that the Plan Sponsor purchases an insurance policy or policies on the life of a Participant as provided for above, then all of
such policies shall be subject to the claims of the creditors of the Plan Sponsor.

 

(d)If the Plan
Sponsor chooses to obtain insurance on the life of a Participant in connection with its obligations under this Plan, the Participant
hereby agrees to take such physical examinations and to truthfully and completely supply such information as may be required by
the Plan Sponsor or the insurance company designated by the Plan Sponsor.

 

    	9

    	 

    

 

3.12Facility of Payment. If a distribution
is to be made to a minor, or to a person who is otherwise incompetent, then the Plan 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 Plan Sponsor and the Plan Administrator from further liability on account thereof.

 

3.13Excise Tax Limitation. In the event
that any payment or benefit (within the meaning of Code §280G(b)(2) of the Code) to the Participant or for the Participant’s
benefit paid or payable or distributed or distributable (including, but not limited to, the acceleration of the time for the vesting
or payment of such benefit or payment) pursuant to the terms of this Plan or otherwise in connection with, or arising out of, the
Participant’s employment with the Plan Sponsor or any of its affiliates or a Change in Control within the meaning of Code
§280G of the Code (a "Payment" or "Payments"), would be subject to the excise tax imposed by Code §4999
of the Code (the "Excise Tax"), then the Payments shall be increased in an amount necessary to provide for the payment
of the excise tax imposed by Code §4999 (the "Section 4999 Limit"). Any payment made to the Participant under this
Section 3.13 shall be made no later than the end of the calendar year following the calendar year in which the Participant remits
the related taxes.

 

ARTICLE 4

VESTING AND TAXES

 

4.1Vesting. The Participant shall be
vested at all times in his Accrued Benefit. Upon attainment of Normal Retirement Age, the Participant shall be One Hundred (100%)
percent vested in his Normal Retirement Benefit.

 

4.2Acceleration of Vesting. If, prior
to the Participant's Normal Retirement Age, and prior to the date the Participant dies, becomes Disabled or experiences a Separation
from Service, there is a Change in Control of the Plan Sponsor, then the Participant shall be One Hundred (100%) percent vested
in his Normal Retirement Benefit.

 

4.3FICA, Withholding and Other
Taxes:

 

(a)When a Participant
becomes vested in a portion of his Normal Retirement Benefit, the Plan Sponsor shall withhold from the Participant's cash compensation
in a manner determined in the sole discretion of the Plan Sponsor, the Participant's share of FICA and other employment taxes on
such vested Normal Retirement Benefit.

 

(b)Distributions.
The Plan Sponsor, or trustee of the Trust, shall withhold from any payments made to a Participant or Beneficiary under this Plan
all federal, state and local income, employment and other taxes required to be withheld by the Plan Sponsor in a manner determined
in the sole discretion of the Plan Sponsor or the trustee of the Trust in compliance with applicable tax withholding requirements.

 

    	10

    	 

    

 

ARTICLE 5

BENEFICIARY DESIGNATION

 

5.1Designation of Beneficiaries.

 

(a)The Participant
may designate any person or persons (who may be named contingently or successively) 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 and 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.

 

(b)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 Plan Sponsor shall pay the benefit payment to the Participant's spouse, if then
living, and if the spouse is not then living to the Participant's then living descendants, if any, per stirpes, and if there are
no living descendants, to the Participant's estate. In determining the existence or identity of anyone entitled to a benefit payment,
the Plan Sponsor may rely conclusively upon information supplied by the Participant's personal representative, executor, or administrator.

 

(c)If a
question arises as to the existence or identity of anyone entitled to receive a death benefit payment under the Plan, or if a dispute
arises with respect to any death benefit payment under the Plan, the Plan Sponsor may distribute the payment to the Participant's
estate without liability for any tax or other consequences, or may take any other action which the Plan Sponsor deems to be appropriate.

 

5.2Information to be Furnished
by Participants and Beneficiaries; Inability to Locate Participants or Beneficiaries. Any communication, statement, or notice addressed
to the Participant or to a Beneficiary at his or her last post office address as shown on the Plan Sponsor's records shall be binding
on the Participant or Beneficiary for all purposes of this Plan. The Plan Sponsor shall not be obligated to search for any Participant
or Beneficiaiy beyond the sending of a registered letter to the last known address.

 

ARTICLE 6

ADMINISTRATION

 

6.1Administrator Duties. The
Administrator shall be responsible for the management, operation, and administration of the Plan. The Administrator shall act at
meetings by affirmative vote of a majority of its members. Any action permitted to be taken at a meeting may be taken without a
meeting if, prior to such action, a unanimous written consent to the action is signed by all members and such written consent is
filed with the minutes of the proceedings of the Administrator, provided, however that no member may vote or act upon any matter
which relates to his or her status as a Participant. The chair, or any other member or members of the Administrator designated
by the chair, may execute any certificate or other written direction on behalf of the Administrator. When making a determination
or calculation, the Administrator shall be entitled to rely on information furnished by the Participant or the Plan Sponsor. 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.

 

    	11

    	 

    

 

6.2Administrator 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, including, but not by way of limitation, the following:

 

(a)To construe
and interpret the terms and provisions of this Plan;

 

(b)To compute
and certify the amount and kind of benefits payable to the Participant and their Beneficiaries; to determine the time and manner
in which such benefits are paid; and to determine the amount of any withholding taxes to be deducted;

 

(c)To maintain
all records that may be necessary for the administration of this Plan;

 

(d)To provide
for the disclosure of all information and the filing or provision of all reports and statements to the Participant, Beneficiaries,
and governmental agencies as shall be required by law;

 

(e)To make and
publish such rules for the regulation of this Plan and procedures for the administration of this Plan as are not inconsistent with
the terms hereof;

 

(f)To administer
this Plan's claims procedures;

 

(g)To approve
election forms and procedures for use under this Plan; and

 

(h)To appoint
a plan record keeper or any other agent, and to delegate to them such powers and duties in connection with the administration of
this Plan as the Administrator may from time to time prescribe.

 

6.3Binding 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,
and application of this Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon
all persons having any interest in this Plan.

 

6.4Compensation, Expenses, and Indemnify.
The Administrator shall serve without compensation for services rendered hereunder. The Administrator is authorized at the expense
of the Plan Sponsor to employ such legal counsel and/or Plan record keeper 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 Plan Sponsor.

 

    	12

    	 

    

 

6.5Plan Sponsor Information. To enable
the Administrator to perform its functions, the Plan Sponsor shall supply full and timely information to the Administrator,
on all matters relating to the compensation of the Participant, the date and circumstances of the Disability, death, or Separation
from Service of the Participant, and such other pertinent information as the Administrator may reasonably require.

 

6.6Periodic Statements. Under
procedures established by the Administrator, Participant shall be provided a statement of his Accrued Benefit on an annual basis.

 

ARTICLE 7

CLAIMS PROCEDURE

 

7.1Claims Procedures. This Section
7.1 is based on final regulations issued by the Department of Labor and published in the Federal Register on November 21, 2000
and codified at section 2560.503-1 of the Department of Labor Regulations. If any provision of this Section 8.4 conflicts with
the requirements of those regulations, the requirements of those regulations will prevail.

 

(a)Initial
Claim. A Participant or Beneficiary who believes he or she is entitled to any Benefit (a "Claimant") under this Plan
may file a claim with the Administrator. The Administrator will review the claim itself or appoint another individual or entity
to review the claim.

 

(i)Benefit
Claims that do not Require a Determination of Disability. If the claim is for a benefit other than a disability benefit, the Claimant
will be notified within ninety (90) days after the claim is filed whether the claim is allowed or denied, unless the Claimant receives
written notice from the Administrator or appointee of the Administrator before the end of the ninety (90) day period stating that
special circumstances require an extension of the time for decision, such extension not to extend beyond the day which is one hundred
eighty (180) days after the day the claim is filed.

 

(ii)Disability
Benefit Claims. In the case of a benefits claim that requires a determination by the Plan Administrator of a Participant's disability
status, the Plan Administrator will notify the Claimant of the Plan's adverse benefit determination within a reasonable period
of time, but not later than forty-five (45) days after receipt of the claim. If, due to matters beyond the control of the Plan,
the Plan Administrator needs additional time to process a claim, the Claimant will be notified, within forty-five (45) days after
the Plan Administrator receives the claim, of those circumstances and of when the Plan Administrator expects to make its decision
but not beyond seventy-five (75) days. If, prior to the end of the extension period, due to matters beyond the control of the
Plan, a decision cannot be rendered within that extension period, the period for making the determination may be extended for up
to one hundred five (105) days, provided that the Plan Administrator notifies the Claimant of the circumstances requiring the extension
and the date as of which the Plan expects to render a decision. The extension notice will specifically explain the standards on
which entitlement to a disability benefit is based, the unresolved issues that prevent a decision on the claim and the additional
information needed from the Claimant to resolve those issues, and the Claimant will be afforded at least forty-five (45) days within
which to provide the specified information.

 

    	13

    	 

    

 

(iii)Manner and
Content of Denial of Initial Claims. If the Plan Administrator denies a claim, it must provide to the Claimant, in writing or by
electronic communication:

 

(A)The specific
reasons for the denial;

 

(B)A reference to
the Plan provision or insurance contract provision upon which the denial is based;

 

(C)A description
of any additional information or material that the Claimant must provide in order to perfect the claim;

 

(D)An explanation
of why such additional material or information is necessary;

 

(E)Notice that the
Claimant has a right to request a review of the claim denial and information on the steps to be taken if the Claimant wishes to
request a review of the claim denial; and

 

(F)A statement of
the participant's right to bring a civil action under ERISA section 502(a) following a denial on review of the initial denial.

 

In addition, in the
case of a denial of disability benefits on the basis of the Plan Administrator's independent determination of the Participant's
disability status, the Plan Administrator will provide a copy of any rule, guideline, protocol, or other similar criterion relied
upon in making the adverse determination (or a statement that the same will be provided upon request by the Claimant and without
charge).

 

(b)Review Procedures.

 

(i)Benefit Claims
that do not Require a Determination of Disability. Except for claims requiring an independent determination of a Participant's
disability status, a request for review of a denied claim must be made in writing to the Plan Administrator within sixty (60) days
after receiving notice of denial. The decision upon review will be made within sixty (60) days after the Plan Administrator's receipt
of a request for review, unless special circumstances require an extension of time for processing, in which case a decision will
be rendered not later than one hundred twenty (120) days after receipt of a request for review. A notice of such an extension must
be provided to the Claimant within the initial sixty (60) day period and must explain the special circumstances and provide an
expected date of decision.

 

The reviewer will afford
the Claimant an opportunity to review and receive, without charge, all relevant documents, information and records and to submit
issues and comments in writing to the Plan Administrator. The reviewer will take into account all comments, documents, records
and other information submitted by the Claimant relating to the claim regardless of whether the information was submitted or considered
in the initial benefit determination.

 

    	14

    	 

    

 

(ii)Disability
Benefit Claims. In addition to having the right to review documents and submit comments as described in (i) above, a Claimant whose
claim for disability benefits requires an independent determination by the Plan Administrator of the Participant's disability status
has at least one hundred eighty (180) days following receipt of a notification of an adverse benefit determination within which
to request a review of the initial determination. In such cases, the review will meet the following requirements:

 

(A)The Plan
will provide a review that does not afford deference to the initial adverse benefit determination and that is conducted by an appropriate
named fiduciary of the Plan who did not make the initial determination that is the subject of the appeal, nor is a subordinate
of the individual who made the determination.

 

(B)The appropriate
named fiduciary of the Plan will consult with a health care professional who has appropriate training and experience in the field
of medicine involved in the medical judgment before making a decision on review of any adverse initial determination based in whole
or in part on a medical judgment. The professional engaged for purposes of a consultation in the preceding sentence will not be
an individual who was consulted in connection with the initial determination that is the subject of the appeal or the subordinate
of any such individual.

 

(C)The Plan
will identify to the Claimant the medical or vocational experts whose advice was obtained on behalf of the Plan in connection with
the review, without regard to whether the advice was relied upon in making the benefit review determination.

 

(D)The decision
on review will be made within forty-five (45) days after the Plan Administrator's receipt of a request for review, unless special
circumstances require an extension of time for processing, in which case a decision will be rendered not later than ninety (90)
days after receipt of a request for review. A notice of such an extension must be provided to the Claimant within the initial forty-five
(45) day period and must explain the special circumstances and provide an expected date of decision.

 

(iii)Manner
and Content of Notice of Decision on Review. Upon completion of its review of an adverse initial claim determination, the Plan
Administrator will give the Claimant, in writing or by electronic notification, a notice containing:

 

(A)its decision;

 

(B)the specific
reasons for the decision;

 

(C)the relevant
Plan provisions or insurance contract provisions on which its decision is based;

 

(D)a statement
that the Claimant is entitled to receive, upon request and without charge, reasonable access to, and copies of, all documents,
records and other information in the Plan's files which is relevant to the Claimant's claim for benefits;

 

(E)a statement
describing the Claimant's right to bring an action for judicial review under ERISA section 502(a); and

 

    	15

    	 

    

 

(F)if an internal
rule, guideline, protocol or other similar criterion was relied upon in making the adverse determination on review, a statement
that a copy of the rule, guideline, protocol or other similar criterion will be provided without charge to the Claimant upon request.

 

(c)Calculation
of Time Periods. For purposes of the time periods specified in this Section, the period of time during which a benefit determination
is required to be made begins at the time a claim is filed in accordance with the Plan procedures without regard to whether all
the information necessary to make a decision accompanies the claim. If a period of time is extended due to a Claimant's failure
to submit all information necessary, the period for making the determination shall be tolled from the date the notification is
sent to the Claimant until the date the Claimant responds.

 

(d)Failure
of Plan to Follow Procedures. If the Plan fails to follow the claims procedures required by this Section 7.1, a Claimant shall
be deemed to have exhausted the administrative remedies available under the Plan and shall be entitled to pursue any available
remedy under ERISA section 502(a) on the basis that the Plan has failed to provide a reasonable claims procedure that would yield
a decision on the merits of the claim.

 

(e)Failure
of Claimant to Follow Procedures. A Claimant's compliance with the foregoing provisions of this Section 7.1 is a mandatory prerequisite
to the Claimant's right to commence any legal action with respect to any claim for benefits under the Plan.

 

7.2Arbitration of Claims. All
claims or controversies arising out of or in connection with this Plan shall, subject to the initial review provided for in the
foregoing provisions of this Article, be resolved through arbitration. Except as otherwise mutually agreed to by the parties, any
arbitration shall be administered under and by the Judicial Arbitration & Mediation Services, Inc. ("JAMS"), in accordance
with the JAMS procedures then in effect. The arbitration shall be held in the JAMS office nearest to where the Claimant is or was
last employed by the Plan Sponsor or at a mutually agreeable location.

 

ARTICLE 8

AMENDMENT AND TERMINATION

 

8.1Amendment. The Plan Sponsor
reserves the right to amend this Plan at any time to comply with Section 409A and other Applicable Guidance or for any other purpose,
provided that such amendment will not cause the Plan to violate the provisions of Section 409A. Except to the extent necessary
to bring this Plan into compliance with Section 409A, no amendment or modification shall be effective to decrease the value or
vested percentage of a Participant's Accrued Benefit in existence at the time an amendment or modification is made to the Plan.

 

8.2Plan Termination. The Plan
Sponsor reserves the right to terminate this Plan in accordance with one of the following, subject to the restrictions imposed
by Section 409A and authoritative guidance:

 

    	16

    	 

    

 

(a)Corporate
Dissolution or Bankruptcy. This Plan may be terminated within twelve (12) months of a corporate dissolution taxed under Code §331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1)(A), and distributions may then be made
to the Participant provided that the amounts payable under this Plan are included in the Participants' gross income in the

latest of:

 

(i)The calendar
year in which the Plan termination occurs;

 

(ii)The first
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)Change
in Control. This Plan may be terminated within the thirty (30) days preceding or the twelve (12) months following a Change
in Control. This Plan will then be treated as terminated only if all arrangements that are treated as having been deferred under
a single plan in accordance with Applicable Guidance are terminated so that all participants in all those terminated arrangements
who experienced the Change in Control event are required to receive all amounts of compensation deferred under the terminated arrangements
within twelve (12) months of the date of termination of the arrangements.

 

(c)Discretionary
Termination. The Plan Sponsor may also terminate this Plan and make distributions provided that:

 

(i)All plans
sponsored by the Plan Sponsor that would be aggregated with any terminated arrangements under Treasury Regulations §1.409A-l(c)
are terminated;

 

(ii)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 this Plan termination;

 

(iii)All payments
are made within twenty-four (24) months of this Plan termination; and

 

(iv)Neither
the Plan Sponsor nor any of its affiliates adopts a new plan that would be aggregated with any terminated plan if the same Participant
participated in both arrangements at any time within three (3) years following the date of termination of this Plan.

 

(v)The termination
does not occur proximate to a downturn in the financial health of the Plan Sponsor.

 

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ARTICLE 9

THE TRUST

 

9.1Establishment of Trust. The Plan
Sponsor may establish a grantor trust (the "Trust"), of which the Plan Sponsor is the grantor, within the meaning of
subpart E, part I, subchapter J, subtitle A of the Code, to pay benefits under this Plan. If the Plan Sponsor establishes a Trust,
all benefits payable under this Plan to a Participant shall be paid directly by the Plan Sponsor from the Trust. To the extent
such benefits are not paid from the Trust, the benefits shall be paid from the general assets of the Plan Sponsor. The Trust, (if
any), shall be a grantor trust which conforms to the terms of the model trust as described in IRS Revenue Procedure 92-64, I.R.B.
1992-33, as same may be amended or modified from time to time. If the Plan Sponsor establishes a Trust, the assets of the Trust
will be subject to the claims of the Plan Sponsor's creditors in the event of its insolvency. Except as may otherwise be provided
under the Trust, the Plan Sponsor shall not be obligated to set aside, earmark, or escrow any funds or other assets to satisfy
its obligations under this Plan, and the Participant and/ or his or her designated Beneficiaries shall not have any property interest
in any specific assets of the Plan Sponsor other than the unsecured right to receive payments from the Plan Sponsor, as provided
in this Plan.

 

9.2Interrelationship of the Plan and
the Trust. The provisions of this Plan shall govern the rights of a Participant to receive distributions pursuant to this Plan.
The provisions of the Trust (if established) shall govern the rights of the Participant and the creditors of the Plan Sponsor to
the assets transferred to the Trust. The Plan Sponsor and each Participant shall at all times remain liable to carry out its obligations
under this Plan. The Plan Sponsor's obligations under this Plan may be satisfied with Trust assets distributed pursuant to the
terms of the Trust.

 

9.3Contribution to the Trust. Amounts
may be contributed by the Plan Sponsor to the Trust at the sole discretion of the Plan Sponsor.

 

ARTICLE 10

MISCELLANEOUS

 

10.1Validity. 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; except to the extent that Section 409A requires that this Section 10.1be disregarded because it purports
to nullify Plan terms that are not in compliance with Section 409A.

 

    	18

    	 

    

 

10.2Nonassignability. Neither any Participant
nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage, or otherwise encumber,
transfer, hypothecate, alienate, or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part hereof,
which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable
shall, prior to actual payment, be subject to seizure, attachment, garnishment (except to the extent the Plan Sponsor may be required
to garnish amounts from payments due under this Plan pursuant to applicable law), or sequestration for the payment of any debts,
judgments, alimony, or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the
event of a Participant's or any other person's bankruptcy or insolvency, or be transferable to a spouse as a result of a property
settlement or otherwise. If any Participant, Beneficiary, or successor in interest is adjudicated bankrupt or purports to commute,
sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber transfer, hypothecate, alienate, or convey in advance
of actual receipt, the amount, if any, payable hereunder, or any part thereof, the Plan Administrator, in its discretion, may cancel
such distribution or payment (or any part thereof) to or for the benefit of such Participant, Beneficiary, or successor in interest
in such manner as the Plan Administrator shall direct.

 

10.3Not a Contract of Employment. The
terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the Plan Sponsor and the Participant.
Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of the Plan Sponsor as an employee
or otherwise or to interfere with the right of the Plan Sponsor to discipline or discharge the Participant at any time.

 

10.4Unclaimed Benefits. In the case
that the Plan Administrator is unable to locate the Participant or Beneficiary to whom a benefit is payable, such Plan benefit
shall be forfeited to the Plan Sponsor upon the Plan Administrator's determination. Notwithstanding the foregoing, payment may
be made to a Participant, and that payment will be treated as made upon the date specified under the Plan, if the Participant provides
notice to the Plan Sponsor within ninety (90) days of the latest date upon which the payment could have been timely made in accordance
with the terms of the Plan and Section 409A, and if not paid, if the Participant takes further enforcement measures within one-hundred
eighty (180) days after such latest date.

 

10.5Governing Law. Subject to ERISA,
the provisions of this Plan shall be construed and interpreted according to the internal laws of the State of Maryland without
regard to its conflicts of laws principles.

 

10.6Notice. Any notice, consent or
demand required or permitted to be given under the provisions of this Plan shall be in writing and shall be signed by the party
giving or making the same. If such notice, consent, or demand is mailed, it shall be sent by United States certified mail, postage
prepaid, addressed to the addressee's last known address as shown on the records of the Plan Sponsor. The date of such mailing
shall be deemed the date of notice consent or demand. Any person may change the address to which notice is to be sent by giving
notice of the change of address in the manner aforesaid.

 

10.7Coordination with Other Benefits.
The benefits provided for a Participant and Participant's Beneficiary under this Plan are in addition to any other benefits available
to such Participant under any other plan or program for employees of the Plan Sponsor. 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.

 

    	19

    	 

    

 

10.8Compliance. A Participant
shall have no right to receive payment with respect to the Participant's Accrued Benefit until all legal and contractual obligations
of the Plan Sponsor relating to establishment of the Plan and the making of such payments shall have been complied with in fall.

 

10.9Compliance with Section 409A
and Authoritative Guidance. Notwithstanding anything in this Plan to the contrary, all provisions of this Plan, including but not
limited to the definitions of terms, elections to defer, and distributions, shall be made in accordance with and shall comply with
Section 409A and any authoritative guidance. The Plan Sponsor will amend the terms of this Plan retroactively, if necessary, to
the extent required to comply with Section 409A and any authoritative guidance. No election made by a Participant hereunder, and
no change made by a Participant to a previous election, shall be accepted by the Plan Sponsor if the Plan Sponsor determines that
acceptance of such election or change could violate any of the requirements of Section 409A or the authoritative guidance. This
Plan and any accompanying forms shall be interpreted in accordance with, and incorporate the terms and conditions required by,
Section 409A and the authoritative guidance, including, without limitation, any such Treasury Regulations or other guidance that
may be issued after the date hereof.

 

IN WITNESS WHEREOF, the Plan Sponsor
has signed this Plan document as of the Effective Date.

 

	WITNESS:	 	FOR THE PLAN SPONSOR
	 	 	 
	/s/ Felicia C. Norris	 	/s/ Michael L. Middleton
	(third party witness)	 	(signature of Bank officer other than
	Participant)	 	 
	 	 	 
	Felicia C. Norris	 	Michael L. Middleton
	(print name)	 	(print name)
	 	 	 
	DATE:	 	PARTICIPANT:
	 	 	 
	12/18/2014	 	/s/ William Pasenelli
	 	 	William Pasenelli

 

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