Document:

Exhibit 10.2

 

BRADFORD BANK

CHANGE IN CONTROL AGREEMENT

 

This
Change  in Control  Agreement (the  “Agreement”) is entered into as of January 1,
2006 between Bradford Bank (the “Bank”) and
Dallas R. Arthur (the “Executive”).

 

RECITALS

 

The
Executive is currently a member of senior management of the Bank.

 

The
Bank desires to provide the Executive with financial protection in the event of
certain events occurring within 12 months of a Change in Control of the Bank,
in order to provide an executive retention device for the Bank.  The Agreement is intended to comply with the
requirements of Internal Revenue Code Section 409A.

 

AGREEMENT

 

The
Bank and the Executive agree as follows:

 

If
(a) the Bank experiences a Change in Control and (b) within 12 months
of that Change in Control a Specified Event occurs, then the Bank will pay the
Executive a lump sum cash payment, 30 days after the Specified Event, equal to
two times the Executive’s base salary in effect on the day before the date of
the Specified Event (less applicable withholding). For example, if the Bank
experiences a Change in Control on August 1, 2020, and the Executive is
involuntarily terminated without cause on April 1, 2021, on May 1,
2021 the Bank would make a lump sum payment to the Executive equal to two times
the Executive’s base salary in effect on March 31, 2021.

 

The
following terms used in this Agreement have the meanings set forth below:

 

a.             “Change in
Control” means a change in control within the meaning of Internal Revenue Code Section 409A
and Internal Revenue Service guidance under Code Section 409A (e.g.,
Q&A 12 of IRS Notice 20054).

 

b.             “Specified Event” means any of the following:

 

i.             the Executive is assigned to a work location outside the Baltimore
metropolitan area;

 

ii.            the Executive
is involuntarily terminated without cause (with “cause” being defined for this
purpose as material misconduct in the course of the executive’s employment with
the Bank); or

 

iii.           the Executive’s
title, responsibilities or authorities with the Bank are materially diminished.

 

This
Agreement contains the entire understanding of the Bank and the Executive with
respect to the subject matter of this Agreement

 

Prior
to the date of a Change in Control of the Bank, the Bank shall have the right,
in its sole and absolute discretion,
to amend or terminate this Agreement, from time to time, in any manner, and any
amendment or termination of this Agreement by the Bank shall, upon adoption by
the Board of Directors

 

1

 

of
the Bank, become and be binding on the Executive without any requirement for
consent by or other action by the Executive. The Bank shall give written notice
to the Executive of any amendment or termination of this Agreement  by the Bank as promptly as practical after
the adoption of the amendment or termination. This Agreement (as previously amended) shall become irrevocable upon
a Change in Control of the Bank.

 

If
any provision of the Agreement is held to be illegal or void, such illegality
or invalidity shall not affect the remaining provisions of the Agreement, but
shall be fully severable, and the Agreement shall be fully and enforced as if
said illegal or invalid provision had never been inserted in this Agreement.
The laws of the State of Maryland shall govern, control and determine all
questions of law arising with respect to the Agreement and the interpretation
and validity of its respective provisions, except where those laws are
preempted by the laws of the United States.

 

IN WITNESS WHEREOF, the Bank and the Executive
have caused this Agreement to be executed, effective as specified above.

 

	
  ATTEST/WITNESS:

  	
   

  	
   

  	
   

  	
  BRADFORD BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Kimberly A.
  Ruckle

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ John O. Mitchell, III

  
	
  Kimberly A.
  Ruckle

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  John O. Mitchell, III

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ATTEST/WITNESS:

  	
   

  	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Kimberly A. Ruckle

  	
   

  	
   

  	
   

  	
  /s/ Dallas
  R. Arthur

  
	
  Kimberly A.
  Ruckle

  	
   

  	
   

  	
   

  	
  Dallas R. Arthur

  

 

2

 

AMENDMENTS TO THIS CHANGE
IN CONTROL AGREEMENT

TO BE FILED BY AMENDMENT
TO THIS REGISTRATION STATEMENT.Exhibit 10.3

 

BRADFORD BANK

CHANGE IN CONTROL AGREEMENT

 

This
Change in Control Agreement (the “Agreement”) is entered
into as of January 1, 2006 between Bradford Bank (the “Bank”) and David L.
Costello, III (the “Executive”).

 

RECITALS

 

The
Executive is currently a member of senior management of the Bank.

 

The
Bank desires to provide the Executive with financial protection in the event of
certain events occurring within 12 months of a Change in Control of the Bank,
in order to provide an executive retention device for the Bank. The Agreement
is intended to comply with the requirements of Internal Revenue Code Section 409A.

 

AGREEMENT

 

The Bank and the Executive agree as follows:

 

If (a) the Bank experiences a Change in Control and (b) with 12 months of that Change
in Control a Specified Event occurs, then the Bank will pay the Executive a
lump sum cash  payment,
30 days after  the Specified  Event,
equal to two times the Executive’s base salary in effect on the day before the date of the Specified Event
(less applicable withholding). For example, if the Bank experiences a Change in
Control on August 1, 2020, and the Executive is involuntarily terminated
without cause on April 1, 2021, on May 1, 2021 the Bank would make a
lump sum payment to the Executive
equal to two times the Executive’s base salary in effect on March 31,
2021.

 

The
following terms used in this Agreement have the meanings set forth
below:

 

a.             “Change in
Control” means a change in control within the meaning of Internal Revenue Code Section 409A
and Internal Revenue Service guidance under Code Section 409A (e.g.,
Q&A 12 of IRS Notice 2005-1).

 

b.             “Specified Event” means any
of the following:

 

i.             the Executive is assigned to
a work location outside the Baltimore metropolitan area;

 

ii.            the Executive is
involuntarily terminated without cause (with “cause” being defined for this
purpose as material misconduct in the course of the executive’s employment with
the Bank); or

 

iii.           the Executive’s title,
responsibilities or authorities with the Bank are materially diminished.

 

This
Agreement contains the entire understanding of the Bank and the Executive with
respect to the subject matter of this Agreement.

 

Prior
to the date of a Change in Control of the Bank, the Bank have the right, in its
sole and absolute discretion, to amend or terminate this Agreement, from time to time,
in any manner, and any amendment or termination of this Agreement by the Bank
shall, upon adoption by the Board of Directors

 

1

 

of
the Bank, become and be binding on the Executive without any requirement for
consent by or other action by the Executive. The Bank shall give written notice
to the Executive of any amendment or termination of this Agreement by the Bank
as promptly as practical after the adoption of the amendment or termination.
This Agreement (as previously amended) shall become irrevocable upon a Change
in Control of the Bank.

 

If
any provision of the Agreement is held to be illegal or void, such illegality
or invalidity shill not affect the remaining provisions of the Agreement, but
shall be fully severable, and the Agreement shall be construed and enforced as
if said illegal or invalid provision had never been inserted in this Agreement.
The laws of the State of Maryland shall govern, control and determine all
questions of law arising with respect to the Agreement and the interpretation
and validity of its respective provisions, except where those laws are
preempted by the laws of the United States.

 

IN WITNESS WHEREOF, the Bank and the Executive
have caused this Agreement to be executed, effective as specified above.

 

	
  ATTEST/WITNESS:

  	
   

  	
   

  	
   

  	
  BRADFORD BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Kimberly A.
  Ruckle

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ John O. Mitchell, III

  
	
  Print: Kimberly
  A. Ruckle

  	
   

  	
   

  	
   

  	
  Print Name:

  	
   

  	
  John O. Mitchell, III

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ATTEST/WITNESS:

  	
   

  	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Kimberly A. Ruckle

  	
   

  	
   

  	
   

  	
  /s/ David
  L. Costello, III

  
	
  Print: Kimberly
  A. Ruckle

  	
   

  	
   

  	
   

  	
  David L. Costello, III

  
											

 

2

 

AMENDMENTS TO THIS CHANGE
IN CONTROL AGREEMENT

TO BE FILED BY AMENDMENT
TO THIS REGISTRATION STATEMENT.Exhibit 10.4

 

BRADFORD BANK

DIRECTOR VOLUNTARY DEFERRAL AND

SUPPLEMENTAL RETIREMENT PLAN

 

Effective as of January 1,
2006

 

 

BRADFORD
BANK

DIRECTOR VOLUNTARY DEFERRAL AND

SUPPLEMENTAL RETIREMENT PLAN

 

Effective as of January 1,
2006

 

TABLE OF CONTENTS

 

ARTICLE 1

DEFINITIONS

 

	
  1.1

  	
   

  	
  ACCOUNT

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  BENEFICIARY

  	
   

  	
  1

  
	
  1.3

  	
   

  	
  BENEFIT

  	
   

  	
  1

  
	
  1.4

  	
   

  	
  BOARD

  	
   

  	
  1

  
	
  1.5

  	
   

  	
  CHANGE IN CONTROL

  	
   

  	
  1

  
	
  1.6

  	
   

  	
  CODE

  	
   

  	
  1

  
	
  1.7

  	
   

  	
  COMPENSATION

  	
   

  	
  1

  
	
  1.8

  	
   

  	
  COMPENSATION DEFERRALS

  	
   

  	
  2

  
	
  1.9

  	
   

  	
  DESIGNATION DATE

  	
   

  	
  2

  
	
  1.10

  	
   

  	
  DIRECTOR

  	
   

  	
  2

  
	
  1.11

  	
   

  	
  DISABILITY

  	
   

  	
  2

  
	
  1.12

  	
   

  	
  EFFECTIVE DATE

  	
   

  	
  2

  
	
  1.13

  	
   

  	
  ELECTION FORM

  	
   

  	
  2

  
	
  1.14

  	
   

  	
  ELIGIBLE EMPLOYEE

  	
   

  	
  2

  
	
  1.15

  	
   

  	
  EMPLOYER

  	
   

  	
  2

  
	
  1.16

  	
   

  	
  ENTRY DATE

  	
   

  	
  2

  
	
  1.17

  	
   

  	
  PARTICIPANT

  	
   

  	
  2

  
	
  1.18

  	
   

  	
  PLAN

  	
   

  	
  2

  
	
  1.19

  	
   

  	
  PLAN YEAR

  	
   

  	
  2

  
	
  1.20

  	
   

  	
  SEPARATION FROM SERVICE

  	
   

  	
  2

  
	
  1.21

  	
   

  	
  TRUST

  	
   

  	
  2

  
	
  1.22

  	
   

  	
  TRUSTEE

  	
   

  	
  2

  
	
  1.23

  	
   

  	
  VALUATION DATE

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  	
   

  	
   

  
	
  ELIGIBILITY
  AND PARTICIPATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  REQUIREMENTS

  	
   

  	
  3

  
	
  2.2

  	
   

  	
  RE-EMPLOYMENT

  	
   

  	
  3

  
	
  2.3

  	
   

  	
  CHANGE OF EMPLOYMENT CATEGORY

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  	
   

  	
   

  
	
  CONTRIBUTIONS
  AND CREDITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  PARTICIPANT COMPENSATION DEFERRALS

  	
   

  	
  3

  
	
  3.2

  	
   

  	
  BENEFIT

  	
   

  	
  4

  
	
  3.3

  	
   

  	
  CONTRIBUTION TO THE TRUST

  	
   

  	
  4

  

 

 

ARTICLE 4

ALLOCATION OF FUNDS

 

	
  4.1

  	
   

  	
  ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS

  	
   

  	
  4

  
	
  4.2

  	
   

  	
  ACCOUNTING FOR DISTRIBUTIONS

  	
   

  	
  4

  
	
  4.3

  	
   

  	
  SEPARATE ACCOUNTS

  	
   

  	
  5

  
	
  4.4

  	
   

  	
  INTERIM VALUATIONS

  	
   

  	
  5

  
	
  4.5

  	
   

  	
  DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS

  	
   

  	
  5

  
	
  4.6

  	
   

  	
  EXPENSES AND TAXES

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  	
   

  	
   

  
	
  ENTITLEMENT
  TO BENEFITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  PAYMENT DATES

  	
   

  	
  6

  
	
  5.2

  	
   

  	
  UNFORESEEABLE EMERGENCY DISTRIBUTIONS

  	
   

  	
  6

  
	
  5.3

  	
   

  	
  DEATH; DISABILITY

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  	
   

  	
   

  
	
  DISTRIBUTION
  OF BENEFITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  AMOUNT

  	
   

  	
  7

  
	
  6.2

  	
   

  	
  METHOD OF PAYMENT

  	
   

  	
  7

  
	
  6.3

  	
   

  	
  ACCELERATIONS

  	
   

  	
  8

  
	
  6.4

  	
   

  	
  DEATH OR DISABILITY DISTRIBUTIONS

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  7

  	
   

  	
   

  
	
  BENEFICIARIES;
  PARTICIPANT DATA

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  DESIGNATION OF BENEFICIARIES

  	
   

  	
  8

  
	
  7.2

  	
   

  	
  INFORMATION TO BE FURNISHED BY PARTICIPANTS AND

  	
   

  	
   

  
	
   

  	
   

  	
  BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS OR

  	
   

  	
   

  
	
   

  	
   

  	
  BENEFICIARIES

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  	
   

  	
   

  
	
  ADMINISTRATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  ADMINISTRATIVE AUTHORITY

  	
   

  	
  9

  
	
  8.2

  	
   

  	
  LITIGATION

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  	
   

  	
   

  
	
  AMENDMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  RIGHT TO AMEND

  	
   

  	
  10

  
	
  9.2

  	
   

  	
  AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  	
   

  	
   

  
	
  TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  EMPLOYER’S RIGHT TO TERMINATE OR SUSPEND PLAN

  	
   

  	
  10

  
	
  10.2

  	
   

  	
  AUTOMATIC TERMINATION OF PLAN

  	
   

  	
  10

  
	
  10.3

  	
   

  	
  SUSPENSION OF DEFERRALS

  	
   

  	
  10

  

 

ii

 

	
  10.4

  	
   

  	
  ALLOCATION AND DISTRIBUTION

  	
   

  	
  11

  
	
  10.5

  	
   

  	
  SUCCESSOR TO EMPLOYER

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  	
   

  	
   

  
	
  THE
  TRUST

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  ESTABLISHMENT OF TRUST

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  12

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  12.1

  	
   

  	
  LIABILITY OF EMPLOYER; LIMITATIONS ON LIABILITY OF
  EMPLOYER

  	
   

  	
   

  
	
   

  	
   

  	
  OR EMPLOYER

  	
   

  	
  11

  
	
  12.2

  	
   

  	
  CONSTRUCTION

  	
   

  	
  12

  
	
  12.3

  	
   

  	
  SPENDTHRIFT PROVISION

  	
   

  	
  12

  
	
  12.4

  	
   

  	
  AGGREGATION OF EMPLOYERS

  	
   

  	
  12

  
	
  12.5

  	
   

  	
  TAX WITHHOLDING

  	
   

  	
  13

  

 

iii

 

BRADFORD BANK

DIRECTOR VOLUNTARY DEFERRAL AND

SUPPLEMENTAL RETIREMENT PLAN

 

Effective as of January 1,
2006

 

RECITALS

 

This Bradford Bank Director Voluntary Deferral and
Supplemental Retirement Plan (the “Plan”) is adopted by Bradford Bank (the “Employer”),
a for-profit entity, for the benefit of the Employer’s Directors. The purpose
of the Plan is to offer the Employer’s directors an opportunity to elect to
defer the receipt of compensation in order to provide deferred compensation
benefits taxable pursuant to section 451 of the Internal Revenue Code of 1986,
as amended (the “Code”) and to provide a deferred compensation vehicle to which
the Employer may credit certain amounts on behalf of a participant. The Plan is
intended to comply with the requirements of Code section 409A.

 

Accordingly, the following Plan is adopted,
effective as of January 1, 2006.

 

ARTICLE 1

DEFINITIONS

 

1.1          ACCOUNT means the balance credited to a Participant’s
or Beneficiary’s Plan account, including amounts credited due to the Participant’s
Compensation Deferrals and deemed income, gains and losses (as determined by
the Employer, in its discretion) credited to the Account. A Participant’s or
Beneficiary’s Account shall be determined as of the date of reference.

 

1.2          BENEFICIARY means any person or person so designated in
accordance with the provisions of Article 7.

 

1.3          BENEFIT means a Participant’s benefit as described
in Section 3.2.

 

1.4          BOARD means the Employer’s Board of Directors, or
a committee of the Employer’s Board of Directors duly authorized to make
determinations and act for the Board under this Plan.

 

1.5          CHANGE IN CONTROL means a change in the ownership of the
Employer within the meaning of Code section 409A and IRS guidance under Code
section 409A (e.g., Q&A 12 of IRS Notice 2005-1).

 

1.6          CODE means the Internal Revenue Code of 1986 and
the Treasury regulations and other authoritative guidance issued under the
Code, as amended from time to time.

 

1.7          COMPENSATION means the total current cash remuneration
paid by the Employer to an Eligible Employee in the form of Director’s fees
(including committee fees and meeting fees) with respect to his or her service
for the Employer as a Director.

 

1.8          COMPENSATION DEFERRALS is described in Section 3.1.

 

1.9          DESIGNATION DATE means the date or dates as of which a
designation of deemed investment directions by an individual pursuant to Section 4.5,
or any change in a prior designation of deemed investment directions by an
individual pursuant to Section 4.5, shall become effective. The
Designation Dates in any Plan Year shall be designated by the Employer.

 

1

 

1.10        DIRECTOR means a member of the Employer’s Board of
Directors.

 

1.11        DISABILITY means a Participant becoming disabled within
the meaning of Code section 409A (i.e., a Participant (i) is unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than
twelve months, (ii) is, by reason of any medically determinable physical
or mental impairment which 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 Employer or (iii) is
determined to be totally disabled by the Social Security Administration).

 

1.12        EFFECTIVE DATE means the effective date of this Plan, January 1,
2006.

 

1.13        ELECTION FORM means the form or forms on which a
Participant elects to defer Compensation under this Plan and/or on which the
Participant makes certain other designations as required under this Plan.

 

1.14        ELIGIBLE EMPLOYEE means any person who is a Director of the
Employer.

 

1.15        EMPLOYER means Bradford Bank and its successors and
assigns unless otherwise provided in this Plan, or any other corporation or
business organization which, with the consent of Bradford Bank, or its
successors or assigns, assumes the Employer’s obligations under this Plan, or
any other corporation or business organization which agrees, with the consent
of Bradford Bank, to become a party to the Plan.

 

1.16        ENTRY DATE with respect to an individual means the
first day of the pay period following the date on which the individual becomes
an Eligible Employee.

 

1.17        PARTICIPANT means any person so designated in accordance
with the provisions of Article 2, including, where appropriate according
to the context of the Plan, any former Director who is or may become (or whose
Beneficiaries may become) eligible to receive a benefit under the Plan.

 

1.18        PLAN means this Bradford Bank Director Voluntary
Deferral and Supplemental Retirement Plan, as amended from time to time.

 

1.19        PLAN YEAR means the twelve (12) month period ending on
the December 31 of each year during which the Plan is in effect.

 

1.20        SEPARATION FROM SERVICE means separation from service within the
meaning of Code section 409A.

 

1.21        TRUST means the Trust described in Article 11.

 

1.22        TRUSTEE means the trustee of the Trust described in Article 11.

 

1.23        VALUATION DATE means the last day of each Plan Year and any
other date that the Employer, in its sole discretion, designates as a Valuation
Date.

 

2

 

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

 

2. 1         REQUIREMENTS. Every Eligible Employee on the Effective
Date shall be eligible to become a Participant on the Effective Date. Every other
Eligible Employee shall be eligible to become a Participant on his or her first
Entry Date. No individual shall become a Participant, however, if he or she is
not an Eligible Employee on the date his or her participation is to begin.

 

Participation in the Compensation Deferral portion
of the Plan is voluntary. In order to participate in the Compensation Deferral
portion of the Plan, an otherwise Eligible Employee must make written
application on an Election Form at such time and in such manner as may be
required by Section 3.1 and by the Employer and must agree to make
Compensation Deferrals as provided in Article 3.

 

2.2          RE-EMPLOYMENT. Subject to Code section 409A, if a
Participant whose Director status with the Employer is terminated subsequently
becomes a  Director, he or she shall become a Participant in
accordance with the provisions of Section 2.1.

 

2.3          CHANGE OF EMPLOYMENT CATEGORY. During any period in which a Participant
ceases to be a Director, he or she shall not be eligible to make Compensation
Deferrals.

 

ARTICLE 3

CONTRIBUTIONS AND CREDITS

 

3.1          PARTICIPANT COMPENSATION
DEFERRALS. Subject to the remaining paragraphs of this Section and
in accordance with rules established by the Employer and subject to such
amount limitations as might be imposed by the Employer in its discretion, a
Participant may elect to defer Compensation which is due to be earned and which
would otherwise be paid to the Participant, in any fixed periodic dollar
amounts or percentages designated by the Participant. Amounts so deferred will
be considered a Participant’s “Compensation Deferrals.” Except as provided
below, a Participant shall make such election(s) under this paragraph with
respect to a coming twelve (12) month Plan Year during the period beginning on
the November 1 and ending on the December 31 of the prior calendar
year, or during such other period as might be established by the Employer,
which period ends no later than the last day of the Plan Year preceding the
Plan Year in which the services giving rise to the Compensation to be deferred
are to be performed.

 

In the case of the first Plan Year in which an
Eligible Employee becomes eligible to become a Participant, if and to the
extent permitted by the Employer, the Eligible Employee may make an election no
later than thirty (30) days after the date he or she becomes eligible to become
a Participant to defer Compensation for services to be performed after the
election.

 

Compensation Deferrals shall be made through regular
payroll deductions or through an election by the Participant to defer the
payment of a bonus, if applicable. The Participant may change or revoke his or
her Compensation Deferral election only if and to the extent permitted by the
Employer and in accordance with the provisions of Code section 409A
specifically relating to the change and/or revocation of deferral elections.
Generally, Compensation Deferral elections are irrevocable.

 

Compensation Deferrals shall be deducted by the
Employer from the pay of a deferring Participant and shall be credited to the
Account of the deferring Participant.

 

3

 

There shall be established and maintained a separate
Plan Account in the name of each Participant to which shall be credited or
debited: (a) amounts equal to the Participant’s Compensation Deferrals;
and (b) amounts equal to any deemed earnings or losses (to the extent
realized, based upon deemed fair market value of the Compensation Deferral
Account’s deemed assets, as determined by the Employer, in its discretion)
attributable or allocable thereto.

 

A Participant shall at all times be 100% vested in
amounts credited to his or her Account.

 

3.2          BENEFIT. In addition to any amounts to which the
Participant is entitled under his or her Account, the Participant shall be
entitled to a Benefit as set forth on Exhibit A. A Participant’s Benefit
shall be funded exclusively by the Employer. Each Participant shall vest in his
or her Benefit as determined by the Employer in its discretion.

 

3.3          CONTRIBUTIONS TO THE TRUST. An amount shall be contributed by the
Employer to the Trust maintained under Section 11.1 equal to the amount(s) required
to be credited to the Participant’s Account under Section 3.1 and in any
amounts estimated as necessary to fund the Benefit under the Plan. The Employer
shall make a good faith effort to contribute these amounts to the Trust as soon
as practicable following the date on which the contribution credit amount(s) are
determined.

 

ARTICLE 4

ALLOCATION OF FUNDS

 

4. 1         ALLOCATION OF DEEMED EARNINGS OR
LOSSES ON ACCOUNTS. Subject to such limitations as may from time
to time be required by law, imposed by the Employer or the Trustee or contained
elsewhere in the Plan, and subject to such operating rules and procedures
as may be imposed from time to time by the Employer, prior to the date on which
a direction will become effective, the Participant shall have the right to
direct the Employer as to how amounts in his or her Account shall be deemed to
be invested. The Employer, may, but is not required to, direct the Trustee to
invest the account maintained in the Trust on behalf of the Participant
pursuant to the deemed investment directions the Employer properly has received
from the Participant.

 

The value of the Participant’s Account shall be
equal to the value of the deemed investments maintained under the Trust on
behalf of the Participant. As of each valuation date of the Trust, the
Participant’s Account will be credited or debited to reflect. the.
Participant’s deemed investments of the Trust. The Participant’s Plan Account
will be credited or debited with the increase or decrease in the realizable net
asset value or credited interest, as applicable, of the designated deemed
investments, as follows. As of each Valuation Date, an amount equal to the net
increase or decrease in realizable net asset value or credited interest, as
applicable (as determined by the Trustee), of each deemed investment option
within the Account since the preceding Valuation Date shall be allocated among
all Participants’ Accounts deemed to be invested in that investment option in
accordance with the ratio which the portion of the Account of each Participant
which is deemed to be invested within that investment option, determined as
provided herein, bears to the aggregate of all amounts deemed to be invested
within that investment option.

 

4.2          ACCOUNTING FOR DISTRIBUTIONS. As of the date of
any distribution under this Plan, the distribution made to the Participant or
his or her Beneficiary or Beneficiaries shall be charged to such Participant’s
Account. The amount of the distribution shall first be charged against the
investments of the Trust in which the Participant’s Account is deemed to be
invested, on a pro rata basis, until such deemed investments are exhausted. If
an in-kind distribution is requested, the amount of the distribution shall be
charged on a pro rata basis against all the investments of the Trust in which
the Participant’s Account is deemed to be invested.

 

4

 

4.3          SEPARATE ACCOUNTS. A separate bookkeeping account under the
Plan shall be established and maintained by the. Employer to reflect the
Account for each Participant with bookkeeping. Each account will separately
account for the credits and debits described in Article 3.

 

4.4          INTERIM VALUATIONS. If it is determined by the Employer that the
value of a Participant’s Account as of any date on which distributions are to
be made differs materially from the value of the Participant’s Account on the
prior Valuation Date upon which the distribution is to be based, the Employer,
in its discretion, shall have the right to designate any date in the interim as
a Valuation Date for the purpose of revaluing the Participant’s Account so that
the Account will, prior to the distribution, reflect its share of such material
difference in value.

 

4.5          DEEMED INVESTMENT DIRECTIONS OF
PARTICIPANTS. Subject to such limitations as may from time
to time be required by law, imposed by the Employer, the Employer or the
Trustee or contained elsewhere in the Plan, and subject to such operating rules and
procedures as may be imposed from time to time by the Employer, prior to and
effective for each Designation Date, each Participant may communicate to the
Employer a direction (in accordance with (a), below) as to how his or her Plan
Accounts should be deemed to be invested among such categories of deemed
investments as may be made available by the Employer under this Plan, which may
be unlimited, at the Employer’s sole discretion. Such direction shall designate
the percentage (in any whole percent multiples) of each portion of the
Participant’s Plan Accounts which is requested to be deemed to be invested in
such categories of deemed investments, and shall be subject to the following
rules:

 

(a)           Any
initial or subsequent deemed investment direction shall be in writing, on a
form supplied by and filed with the Employer, and/or, as required or permitted
by the Employer, shall be by oral designation and/or electronic transmission
designation. A designation shall be effective as of the Designation Date next
following the date the direction is received and accepted by the Employer on
which it would be reasonably practicable for the Employer to effect the
designation.

 

(b)           All amounts credited to. the Participants Account shall be deemed- to
be invested in accordance with the then effective deemed investment direction,
and as of the Designation Date with respect to any new . deemed investment
direction, all or a portion of the Participant’s Account at that date shall be
reallocated among the designated deemed investment funds according to the
percentages specified in the. new deemed investment direction unless
and until a subsequent deemed investment direction shall be filed and become
effective. An election concerning deemed investment choices shall continue
indefinitely as provided in the Participant’s most recent investment direction
form provided by and filed with the Employer.

 

(c)           If the Employer receives an initial or revised deemed investment direction
which it deems to be incomplete, unclear or improper, the Participant’s
investment direction then in effect shall remain in effect (or, lathe case of a
deficiency in an initial deemed investment direction, the Participant shall be
deemed to have filed no deemed investment direction) until the next Designation
Date, unless the Employer provides for, and permits the application of,
corrective action prior thereto.

 

(d)           the Employer possesses (or is deemed to possess as provided in (c),
above) at any time directions as to the deemed investment of less than all of a
Participant’s Account, the Participant shall be deemed to have directed that
the undesignated portion of the Account be deemed to be invested in a money
market, fixed income or similar fund made available under the Plan as
determined by the Employer in its discretion.

 

5

 

(e)           Each Participant, as a condition to his or her participation in this
Plan, agrees to indemnify and hold harmless the Employer and its agents and
representatives from any losses or damages of any kind relating to the deemed
investment of the Participant’s Account.

 

(f)            Each
reference in this Section to a Participant shall be deemed to include,
where applicable, a reference to a Beneficiary of a deceased Participant.

 

4.6          EXPENSES AND TAXES. Expenses, including Trustee fees, associated
with the administration or operation of the Plan shall be paid by the Employer
from its general assets unless the Employer elects to charge such expenses
against the appropriate Participant’s Account or Participants’ Accounts. Any
taxes allocable to an Account (or portion thereof) maintained under the Plan
which are payable prior to the distribution of the Account (or portion
thereof), as determined by the Employer, shall be paid by the Employer unless
the Employer elects to charge such taxes against the appropriate Participant’s
Account or Participants’ Accounts:

 

ARTICLE 5

ENTITLEMENT TO BENEFITS

 

5.1          PAYMENT DATES. At the time the Participant makes his or her.
initial. Compensation Deferral election, a Participant shall elect to receive
payment of his or her vested Account, which payment will be valued and payable
according to the provisions of Article 6: (i) sixty (60) days
following the Participant’s Separation from Service with the Employer for any
reason. (including death or Disability); (ii) on a fixed payment date or
dates (the “Fixed Payment Date(s)”) (such as January 1, 2017, or each January 1,
beginning on January 1, 2020 and ending on January 1, 2026); (iii) at
the earlier or later of the preceding event or date(s); or (iv) at the
earlier or later of sixty (60) days after a Change in Control and one .or
more of the preceding events or date(s).

 

Any Fixed Payment Date elected by a Participant must
be a date no earlier than the January 1 of the third calendar year after
the calendar year in which the earliest Compensation Deferrals subject to the
Fixed Payment Date are to be made by or on behalf of the Participant (or, if
applicable, the January 1 of the third calendar year in which a new
Compensation Deferral is made after the Participant has received a distribution
of his or her previously vested Account). By way of example, an Eligible
Employee who enrolls as a Participant in the Plan in November 2006 and who
elects to defer Compensation to be earned during 2007 may elect at that time as
his or her initial Fixed Payment Date any date which is no earlier than January 1,
2010, in which case the Participant’s vested Plan Account as of December 31,
2009 (including his or her 2007, 2008 and 2009 Compensation Deferrals, and any
earnings on those amounts) shall be paid on January 1, 2010.

 

Any Fixed Payment Date may be delayed, to a later
Fixed Payment Date, so long as any election to delay the date is made by the
Participant at least twelve (12) months prior to the date on which the
distribution is to be made and such delay is at least five (5) full
calendar years in length. Such Fixed. Payment Date may not be accelerated,
except as provided in the remaining Sections of this Article.

 

5.2          UNFORESEEABLE EMERGENCY
DISTRIBUTIONS.
In the event the Participant
incurs an unforeseeable emergency, as defined below, the Participant may apply
to the Employer for the distribution of all or any part of his or her Account
attributable to Compensation Deferrals. The Employer shall consider the
circumstances of each such case, and the best interests of the Participant and
his or her family, and shall have the right, in its sole discretion, if
applicable, to allow such distribution, or, if applicable, to direct a
distribution of part of the amount requested, or to refuse to allow any
distribution; provided, however, that such distribution shall be permitted
solely to the extent permitted under Code section 409A. Upon a finding of
unforeseeable emergency, the Employer shall direct that the appropriate

 

6

 

distribution
is made to the Participant with respect to the Participant’s vested Account in
a lump sum payment. In no event shall the aggregate amount of the distribution
exceed either the full value of the Participant’s vested Account or the amount
determined by the Employer to be necessary to satisfy the unforeseeable
emergency. plus amounts necessary to pay taxes reasonably anticipated as a
result of the distribution, after taking into account the extent to which the
hardship is or may be relieved through reimbursement or compensation by
insurance or otherwise or by liquidation of the Participant’s assets (to the
extent the liquidation of assets would not itself cause severe financial
hardship). For purposes of this Section, the value of the Participant’s vested
Account shall be determined as of the date of the distribution.

 

For purposes of this Section, “unforeseeable emergency”
means (a) a severe financial hardship to the Participant resulting from an
illness or accident of the Participant, the Participant’s spouse or a dependent
(as defined in Code section 152(a)) of the Participant, (b) loss of the
Participant’s .property due to casualty, or (c) other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant, each as determined to exist by the
Employer. A distribution may be made under this Section only with the
..consent of the Employer.

 

5.3          DEATH, DISABILITY. Upon the Participant’s death or Disability,
the Participant’s vested Account shall be valued and paid to the Participant or
the Participant’s designated Beneficiary(ies), as applicable, as provided in Article 6.

 

ARTICLE 6

DISTRIBUTION OF BENEFITS

 

6.1          AMOUNT. A Participant (or his or her Beneficiary)
shall become entitled to receive, on the date or dates determined in accordance
with Article 5, a distribution (or commencement of distributions) in. an aggregate
amount equal to the Participant’s vested Account. In addition, a Participant
(or his or her Beneficiary) shall become entitled to receive on the date(s) and
in the manner determined in accordance with Exhibit A, a distribution (or
commencement of distributions) in an aggregate amount equal to the Participant’s
vested Benefit. Any payment due under the terms of the Plan from the Trust
which is not paid by the Trust for any reason will be paid by the Employer from
its general assets.

 

6.2          METHOD OF PAYMENT.

 

(a)           Cash
or In-kind Payments. All
payments under the Plan shall be made in cash unless the Participant and the
Employer agree to payment in-kind.

 

(b)           Timing
and Manner of Payment.
Except as otherwise provided in this Plan, on the date or dates determined in
accordance with Article 5, an aggregate amount equal to the Participant’s
vested Account will be paid by the Trust or the Employer, as provided in Section 6.1,
in (i) a lump sum, or (ii) in up to ten annual installments (adjusted
for gains and losses), as selected by the Participant at the time he or she
makes his or her initial Compensation Deferral election. If a Participant fails
to designate properly the manner of payment of the Participant’s Account under
the Plan, the Participant will be deemed to have elected a lump sum payment. If
a Participant fails to designate properly the timing of payment of the
Participant’s Account under the Plan, the Participant will be deemed to have
elected payment of his or her vested Account sixty (60) days following
Separation from Service (subject to the six month delay rule. described in Section 5.1).

 

Subject to Section 6.3, the Participant may
change his or her above-described timing and manner of payment elections (or
deemed elections) with respect to payment of his or her Account by submitting a
new Election Form to the Employer, provided that any such Election Form is
submitted at least twelve (12) months prior to the date on which the
distribution is to be made (or commence) and delays the distribution (or
commencement of distributions) date at least five (5) full calendar years
from the previously scheduled distribution date.

 

7

 

If the whole or any part of a payment under this
Plan is to be in installments, the total to be so paid shall continue to be
deemed to be invested pursuant to Article 4 under such procedures as the
Employer may establish, in which case any deemed income, gain, loss or expense
or tax allocable thereto (as determined by the Employer, in its discretion)
shall be reflected. in the installment payments, using such method
for the calculation of the installments as the Employer shall reasonably
determine.

 

6.3          ACCELERATIONS. Notwithstanding anything in the Plan to the
contrary, no change submitted on an Election Form shall be accepted by the
Employer if the change accelerates the time over which distributions shall be
made to the Participant (except as otherwise permitted by Code section 409A)
and the Employer shall deny any change made to an election if the Employer
determines that the change violates the requirement under Code section 409A
that the first payment with respect to which such election is made be deferred
for a period of not less than five (5) years from the date such payment would
otherwise have been made.

 

Notwithstanding the preceding, the Employer, in its
discretion, may accelerate distributions under the Plan to the extent permitted
under Code section 409A (e.g., Q&A 15 of IRS Notice 2005-1).

 

6.4          DEATH OR DISABILITY DISTRIBUTIONS. If a Participant dies or becomes Disabled
before incurring a Separation from Service and before the commencement of
payments from the Participant’s Account to the Participant under this Plan, the
entire value of the Participant’s vested Account shall be paid sixty (60) days
following the Participant’s death or Disability, as applicable, in a lump sum,
to the Participant or to the person or persons designated in accordance with Section 7.1.

 

Upon the death or Disability of a Participant after
payments under this Plan from the Participant’s Account have begun but before
he or she has received all payments to which he or she is entitled under the
Plan, the remaining benefit payments shall be paid sixty (60) days following
the Participant’s death or Disability, as applicable, in a lump sum, to the
Participant or to the person or persons designated in accordance with Section 7.1.

 

Notwithstanding the preceding, if a Participant
entitled to a distribution of his or her Benefit under the Plan dies before all
installment payments of his or her Benefit are paid, the Participant’s
designated Beneficiary will receive, in a cash lump sum on the date of the
Participant’s death (or as soon as administratively feasible thereafter), an
amount equal to the then-present value of the unpaid payments (as determined by
the Employer).

 

ARTICLE 7

BENEFICIARIES; PARTICIPANT DATA

 

7.1          DESIGNATION OF BENEFICIARIES. Each Participant from time to time may
designate any person or persons (who may be named contingently or successively)
to receive such benefits as may be payable under the Plan upon or after the
Participant’s death, and such 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 same Participant, shall be in a form prescribed by
the Employer, and will be effective only when filed in writing with the
Employer during the Participant’s lifetime.

 

8

 

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 Employer shall pay any
such benefit payment to the Participant’s spouse, if then living, but otherwise
to the Participant’s then living descendants, if any, per stirpes, but,
if none, to the Participant’s estate. In determining the existence or identity
of anyone entitled to a benefit payment, the Employer may rely conclusively
upon information supplied by the Participant’s personal representative,
executor or administrator. If a question arises as to the existence or identity
of anyone entitled to receive a benefit payment as aforesaid, or if a dispute
arises with respect to any such payment, then, notwithstanding the foregoing;
the Employer, in its sole discretion, may distribute or direct the Trustee to
distribute such payment to the Participant’s estate without liability for any
tax or other consequences which might flow therefrom, or may take such other
action as the Employer deems to be appropriate.

 

7.2          INFORMATION TO BE FURNISHED BY
PARTICIPANTS AND
BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES. Any communication, statement or notice
addressed to a Participant or to a Beneficiary at his or her last post office
address as shown on the Employer’s records shall be binding on the Participant
or Beneficiary for all purposes of the Plan. The Employer shall not be obliged
to search for any Participant or Beneficiary beyond the sending of a registered
letter to such last known address. If the Employer notifies any Participant or
Beneficiary that he or she is entitled to an amount under the Plan and the
Participant or Beneficiary fails to claim such amount or make his or her
location known to the Employer within three (3) years thereafter, then,
except as otherwise required by law; if the location of one or more of the next
of kin of the Participant is known to the Employer, the Employer may distribute
or direct distribution of such amount to any one or more or all of such next of
kin, and in such-proportions as the Employer determines. If the location of
none of the foregoing persons can be determined, the Employer shall have the
right to direct that the amount payable shall be deemed to be a forfeiture,
except that the dollar amount of the forfeiture, unadjusted for deemed gains or
losses in the interim, shall be paid by the Employer if a claim for the benefit
subsequently is made by the Participant or the Beneficiary to whom it was
payable. If a benefit payable to an unlocated Participant or Beneficiary is
subject to escheat pursuant to applicable state law, the Employer shall not be
liable to any person for any payment made in accordance with such law.

 

ARTICLE 8

ADMINISTRATION

 

8.1          ADMINISTRATIVE AUTHORITY. Except as otherwise specifically provided
herein, the Employer shall be the Plan administrator (the “Plan Administrator”)
and shall have the sole responsibility for and the sole control of the
operation and administration of the Plan, and shall have the power and
authority to take all action and to make all. decisions and interpretations
which may be necessary or appropriate in order to administer and operate the
Plan, including, without limiting the generality of the foregoing, the power, duty
and responsibility to:

 

(a)           Resolve
and determine all disputes or questions arising under the Plan, and to remedy
any ambiguities, inconsistencies or omissions in the Plan.

 

(b)           Adopt
such rules of procedure and regulations as in its opinion may be necessary
for the proper and efficient administration of the Plan and as are consistent
with the Plan.

 

(c)           Implement
the Plan in accordance with its terms and the rules and regulations
adopted as above.

 

(d)           Make
determinations with respect to the eligibility of any Eligible Employee as a
Participant and make determinations concerning the crediting of Plan Accounts.

 

9

 

(e)           Appoint
any persons or firms, or otherwise act to secure specialized advice or
assistance, as it deems necessary or desirable in connection with the
administration and operation of the Plan, and the Employer shall be entitled to
rely conclusively upon, and shall be fully protected in any action or omission
taken by it in good faith reliance upon, the advice or opinion of such firms or
persons. The Employer shall have the power and authority to delegate from time
to time by written instrument all or any part of its duties, powers or
responsibilities under the Plan, both ministerial and discretionary, as it
deems appropriate, to any person or committee, and in the same manner to revoke
any such delegation of duties, powers or responsibilities. Any action of such
person or committee in the exercise of such delegated duties, powers or
responsibilities shall have the same force and effect for all purposes under
this Plan as if such action had been taken by the Employer. Further, the
Employer may authorize one or more persons to execute any certificate or
document on behalf of the Employer, in which event any person notified by the
Employer of such authorization shall be entitled to accept and conclusively
rely upon any such certificate or document executed by such person as
representing action by the Employer until such notified person shall have been notified
of the revocation of such authority.

 

8.2          LITIGATION. Except as may be otherwise required by law,
in any action or judicial proceeding affecting the Plan, no Participant or
Beneficiary shall be entitled to any notice or service of process, and any
final judgment entered in such action shall be binding on all persons
interested in, or claiming under, the Plan.

 

ARTICLE 9

AMENDMENT

 

9.1          RIGHT TO AMEND. Subject to Code section 409A, the Employer,
by action of its Board, shall have the right to amend the Plan, at any time and
with respect to any provisions hereof, and all parties hereto or claiming any
interest under this Plan shall be bound by such amendment; provided, however,
that no. such amendment shall deprive a Participant or a Beneficiary
of a benefit amount accrued prior to the date of the amendment.

 

9.2          AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding the provisions of Section 9.1,
the Plan may be amended by the Employer at any time, retroactively if required,
in the opinion of the Employer, in order to ensure that the Trust that may be
established is characterized as a grantor trust as described in Code sections
671 through 679, to conform the Plan to the provisions of Code section 409A and
to conform the Plan and Trust to the provisions and requirements of any
applicable law (including ERISA and the Code). No such amendment shall be
considered prejudicial to any interest of a Participant or a Beneficiary in the
Plan.

 

ARTICLE 10

TERMINATION

 

10.1        EMPLOYER’S RIGHT TO TERMINATE OR SUSPEND PLAN. The Employer reserves the right to terminate
the Plan and/or obligations to make further credits to Plan Accounts, by action
of the Board. The Employer also reserves the right to suspend the operation of
the Plan for a fixed or indeterminate period of time, by action of the Board.

 

10.2        AUTOMATIC TERMINATION OF PLAN. The Plan
automatically shall terminate upon the dissolution of the Employer, or upon its
merger into or consolidation with any other corporation or business
organization if there is a failure by the surviving corporation or business
organization to adopt specifically and agree to continue the Plan.

 

10.3        SUSPENSION OF DEFERRALS. In the event of a
suspension of the Plan, the Employer shall continue all aspects of the Plan, other
than contributions to the Plan, during the period of the suspension, in which
event payments will continue to be made during the period of the suspension in
accordance with Articles 5 and 6.

 

10

 

10.4        ALLOCATION AND DISTRIBUTION. This Section shall become operative on
a complete termination of the Plan. The provisions of this Section also
shall become operative in the event of a partial termination of the Plan, as
determined by the Employer, but only with respect to that portion of the Plan
attributable to the Participants to whom the partial termination is applicable.
Upon the effective date of any such event, notwithstanding any other provisions
of the Plan, no persons who were not already Participants shall be eligible to
become Participants, the value of the vested Accounts of all Participants and
Beneficiaries shall be determined and, after deduction of estimated expenses in
liquidating, paid to Participants and Beneficiaries when Plan benefits otherwise
become due in accordance with Articles 5 and 6.

 

Notwithstanding anything in the Plan to the
contrary, the Employer, in its discretion, reserves the right, by action of the
Board, to terminate the Plan and distribute to Participants their vested
Account balances but only as permitted in accordance with the Code (e.g., Prop.
Reg. 1.409A 3(h)(2)(viii)).

 

10.5        SUCCESSOR TO EMPLOYER. Any corporation or other business
organization which is a successor to the Employer by reason of a consolidation,
merger or purchase of substantially all of the assets of the Employer shall
have the right to become a party to the Plan by adopting the same by resolution
of the entity’s board of directors or other appropriate governing body. If,
within ninety (90) days from the effective date of such consolidation, merger
or sale of assets, such new entity does not become a party hereto, as above
provided, the Plan automatically shall be terminated, and the provisions of Section 10.4
shall become operative.

 

ARTICLE 11

THE TRUST

 

11.1        ESTABLISHMENT OF TRUST. The Employer shall establish the Trust with
the Trustee pursuant to such terms and conditions as are set forth in the Trust
agreement to be entered into between the Employer and the Trustee or the
Employer shall cause to be maintained one or more separate subaccounts in an
existing Trust maintained with the Trustee with respect to one or more other
plans of the Employer, which subaccount or subaccounts represent Participants’
interests in the Plan. Any such Trust shall be intended to be treated as a “grantor
trust” under the Code and the establishment of the Trust or the utilization of
any existing Trust for Plan benefits, as applicable, shall not be intended to
cause any Participant to realize current income on amounts contributed thereto,
and the Trust shall be so interpreted.

 

ARTICLE 12

MISCELLANEOUS

 

12.1        LIABILITY OF EMPLOYER;
LIMITATIONS ON LIABILITY OF EMPLOYER. Notwithstanding
anything herein that may suggest otherwise, the Employer shall be solely liable
for the payment of any benefits due under this Plan. However, neither the
establishment of the Plan nor any modification thereof, nor the creation of any
Account under the Plan, nor the payment of any benefits under the Plan shall be
construed as giving to any Participant or other person any legal or equitable
right against the Employer or any officer or employer thereof except as
provided by law or by any Plan provision. The Employer shall not in any way
guarantee any Participant’s Account from loss or depreciation, whether caused
by poor investment performance of a deemed investment or the inability to
realize upon an investment due to an insolvency affecting an investment vehicle
or any other reason. In no event shall the Employer or any successor, employee,
officer, director or stockholder of the Employer, be liable to any person on
account of any claim arising by reason of the provisions of the Plan or of any
instrument or instruments implementing its provisions, or for the failure of
any Participant, Beneficiary or other person to be entitled to any particular
tax consequences with respect to the Plan, or any credit or distribution under
the Plan.

 

11

 

12.2        CONSTRUCTION. If any provision of the Plan is held to be
illegal or void, such illegality or invalidity shall not affect the remaining
provisions of the Plan, but shall be fully severable, and the Plan shall be
construed and enforced as if said illegal or invalid provision had never been
inserted herein. For all purposes of the Plan, where the context admits, the
singular shall include the plural, and the plural shall include the singular.
Headings of Articles and Sections herein are inserted only for convenience of
reference and are not to be considered in the construction of the Plan. The
laws of the State of Maryland shall govern, control and determine all questions
of law arising with respect to the Plan and the interpretation and validity of
its respective provisions, except where those laws are preempted by the laws of
the United States. Participation under the Plan will not give any Participant
the right to be retained in the service of the Employer, or any right or claim
to any benefit under the Plan unless such right or claim has specifically
accrued under the Plan.

 

The Plan is intended to be and at all times shall be
interpreted and administered so as to qualify as an unfunded deferred
compensation plan, and no provision of the Plan shall be interpreted so as to
give any individual any right in any assets of the Employer which is greater
than the rights of a general unsecured creditor of the Employer.

 

12.3        SPENDTHRIFT PROVISION. No amount payable to a Participant or a
Beneficiary under the Plan will, except as otherwise specifically provided by
law, be subject in any manner to anticipation, alienation, attachment,
garnishment, sale, transfer, assignment (either at law or in equity), levy,
execution, pledge, encumbrance, charge or any other legal or equitable process,
and any attempt to do so will be void; nor will any benefit be in any manner
liable for or subject to the debts, contracts, liabilities, engagements or
torts of the person entitled thereto. Further, subject to Code section 409A, (i) the
withholding of taxes from Plan benefit payments, (ii) the recovery under
the Plan of overpayments of benefits previously.. made to a Participant or
Beneficiary, (iii) if applicable, the transfer of benefit rights from the
Plan to another plan, or (iv) the direct deposit of benefit payments to an
account in a banking institution (if not actually part of an arrangement
constituting an assignment or alienation) shall not be construed as an
assignment or alienation.

 

In the event that any Participant’s or Beneficiary’s
benefits under this Plan are garnished or attached by order of any court, the
Employer or the Trustee may bring an action or a declaratory judgment in a
court of competent jurisdiction to determine the proper recipient of the
benefits to be paid under the Plan. During the pendency of said action, subject
to Code section 409A, any benefits that become payable shall be held as credits
to the Participant’s or Beneficiary’s Account or, if the Employer or the
Trustee prefers, paid into the court as they become payable, to be distributed
by the court to the. recipient as the court deems proper at the
close of said action.

 

12.4        AGGREGATION OF EMPLOYERS. To the extent required under Code section
409A, if the Employer is a member of a. controlled group of corporations or a
group of trades or businesses under common control (as described in Code
sections 414(b) or (c)), all members of the group shall be treated as
single Employer under the Plan.

 

12

 

12.5        TAX WITHHOLDING. All distributions under the Plan are subject
to any applicable tax withholding, as determined by the Employer in its
discretion. The Employer shall have the right to deduct from a Participant’s
Compensation that is not being deferred under this Plan any federal, state,
local or employment taxes which it deems are required by law to be withheld
with respect to any Compensation Deferrals or Plan distributions. Subject to
Code section 409A, if necessary, the Employer may reduce the Participant’s
Compensation Deferrals in order to comply with this Section. caused the Plan to
be executed and its seal to be affixed hereto, effective as of January 1,
2006.

 

 

	
  ATTEST/WITNESS:

  	
   

  	
  BRADFORD BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
   

  
	
  Print:

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
										

 

13

 

BRADFORD BANK

DIRECTOR VOLUNTARY DEFERRAL AND

SUPPLEMENTAL RETIREMENT PLAN

 

EXHIBIT A

 

1.             Directors with at least ten years of Director
service for the Employer (as determined by the Employer), but less than 15
years of Director service for the Employer, will receive annual payments, for
ten years beginning at the later of the Director’s Separation from Service with
the Employer or the attainment of age 65, equal to 22.5% of their final year’s
Director fees from the Employer.

 

2.             Directors with at least 15 years of Director
service for the Employer, but less than 20 years of Director service for the
Employer, will receive annual payments, for ten years beginning at the later of
the Director’s Separation From Service with the Employer or the attainment of
age 65, equal to 33.75% of their final year’s Director fees from the Employer.

 

3.             Directors with at least 20 years of Director
service for the Employer will receive annual payments, for ten years beginning
at the later of the Director’s Separation from Service with the Employer or the
attainment of age 65, equal to 45% of their final year’s Director fees from the
Employer.

 

 

BRADFORD BANK

DIRECTOR VOLUNTARY DEFERRAL AND SUPPLEMENTAL RETIREMENT PLAN

TRUST AGREEMENT

 

Effective January 1, 2006

 

 

BRADFORD
BANK

DIRECTOR VOLUNTARY DEFERRAL AND SUPPLEMENTAL RETIREMENT PLAN

TRUST AGREEMENT

Effective January 1, 2006

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  ESTABLISHMENT OF TRUST

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  TRUST DEPOSITS

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  IRREVOCABILITY

  	
   

  	
  1

  
	
  1.3

  	
   

  	
  GRANTOR TRUST

  	
   

  	
  1

  
	
  1.4

  	
   

  	
  TRUST ASSETS

  	
   

  	
  1

  
	
  1.5

  	
   

  	
  ACCEPTANCE OF TRUST

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
   

  
	
  PLAN AS PART OF TRUST AGREEMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  INCORPORATION BY REFERENCE

  	
   

  	
  1

  
	
  2.2

  	
   

  	
  BENEFIT PROVISIONS

  	
   

  	
  2

  
	
  2.3

  	
   

  	
  AMENDMENT OF PLAN

  	
   

  	
  2

  
	
  2.4

  	
   

  	
  SEPARATE PLAN ACCOUNTS

  	
   

  	
  2

  
	
  2.5

  	
   

  	
  CONFLICTS WITH TRUST

  	
   

  	
  2

  
	
  2.6

  	
   

  	
  TRUSTEE RELIANCE

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
   

  
	
  PAYMENTS TO PLAN PARTICIPANTS AND BENEFICIARIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  PAYMENT SCHEDULE AND TAXES

  	
   

  	
  2

  
	
  3.2

  	
   

  	
  ENTITLEMENT TO BENEFITS

  	
   

  	
  2

  
	
  3.3

  	
   

  	
  PAYMENTS BY EMPLOYER

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
   

  
	
  TRUSTEE RESPONSIBILITY WHEN EMPLOYER IS
  INSOLVENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  CESSATION OF PAYMENTS ON EMPLOYER INSOLVENCY

  	
   

  	
  3

  
	
  4.2

  	
   

  	
  CLAIMS OF CREDITORS

  	
   

  	
  3

  
	
  4.3

  	
   

  	
  RECOMMENCEMENT OF PAYMENTS

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
   

  
	
  PAYMENTS TO EMPLOYER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  PAYMENTS TO THE EMPLOYER

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
   

  
	
  INVESTMENT AUTHORITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  TRUSTEE AUTHORITY

  	
   

  	
  4

  
	
  6.2

  	
   

  	
  EMPLOYER AUTHORITY

  	
   

  	
  5

  
	
  6.3

  	
   

  	
  INDEMNIFICATION

  	
   

  	
  5

  

 

i

 

	
  

  	
   

  	
  ARTICLE
  7

  	
   

  	
   

  
	
   

  	
   

  	
  DISPOSITION
  OF INCOME

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  DISPOSITION OF ENTCOME

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  8

  	
   

  	
   

  
	
   

  	
   

  	
  ACCOUNTING
  BY TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  ACCOUNTING BY TRUSTEE

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  9

  	
   

  	
   

  
	
   

  	
   

  	
  RESPONSIBILITY
  OF THE TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  PRUDENT PERSON

  	
   

  	
  6

  
	
  9.2

  	
   

  	
  TRUSTEE INDEMNIFICATION

  	
   

  	
  6

  
	
  9.3

  	
   

  	
  LEGAL COUNSEL

  	
   

  	
  7

  
	
  9.4

  	
   

  	
  HIRING AGENTS

  	
   

  	
  7

  
	
  9.5

  	
   

  	
  TRUSTEE POWERS

  	
   

  	
  7

  
	
  9.6

  	
   

  	
  LIMITATION ON POWERS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  10

  	
   

  	
   

  
	
   

  	
   

  	
  FEES
  AND EXPENSES OF THE TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  TRUSTEE EXPENSES AND FEES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  11

  	
   

  	
   

  
	
   

  	
   

  	
  RESIGNATION
  AND REMOVAL OF THE TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  TRUSTEE RESIGNATION

  	
   

  	
  7

  
	
  11.2

  	
   

  	
  TRUSTEE REMOVAL

  	
   

  	
  7

  
	
  11.3

  	
   

  	
  TRANSFER OF ASSETS

  	
   

  	
  7

  
	
  11.4

  	
   

  	
  APPOINTMENT OF SUCCESSOR

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  12

  	
   

  	
   

  
	
   

  	
   

  	
  APPOINTMENT
  OF SUCCESSOR

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.1

  	
   

  	
  APPOINTMENT OF SUCCESSOR

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  13

  	
   

  	
   

  
	
   

  	
   

  	
  AMENDMENT
  OR TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.1

  	
   

  	
  AMENDMENT

  	
   

  	
  8

  
	
  13.2

  	
   

  	
  TERMINATION

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  14

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I(z)i.l

  	
   

  	
  VALIDITY OF PROVISIONS

  	
   

  	
  8

  
	
  14.2

  	
   

  	
  NO ASSIGNMENT OF BENEFITS

  	
   

  	
  8

  
	
  14.3

  	
   

  	
  GOVERNING LAW

  	
   

  	
  8

  
	
  14.4

  	
   

  	
  SUCCESSOR AND ASSIGNS

  	
   

  	
  8

  
	
  14.5

  	
   

  	
  TRUSTEE’S SUCCESSORS

  	
   

  	
  8

  
	
  14.6

  	
   

  	
  ADDITIONAL PLANS

  	
   

  	
  9

  

 

ii

BRADFORD
BANK

DIRECTOR VOLUNTARY DEFERRAL AND SUPPLEMENTAL RETIREMENT PLAN

TRUST AGREEMENT

 

RECITALS

 

THIS TRUST AGREEMENT is entered into, on January 1, 2006 by BRADFORD
BANK  (the “Employer”), which
sponsors the Bradford Bank Director Voluntary Deferral and Supplemental Retirement
Plan (the “Plan”), and                               ,
a                              (the
“Trustee”).

 

The
Employer has established the Plan.

 

The Employer wishes to establish an irrevocable trust
fund for the purpose of providing a source from which to pay benefits under the
Plan, the trust fund being subject to the claims of the Employer’s creditors in
the event of the Employer’s bankruptcy or insolvency. Contributions to the
trust fund shall be held by the Trustee and invested, reinvested and
distributed in accordance with the provisions of this Trust Agreement.

 

The Trust established by this Trust Agreement is intended to be a “grantor
trust,” with the result that the corpus and
income of the trust are treated for tax purposes as assets and income of the Employer.

 

Accordingly, the Employer and the Trustee, intending
to be legally bound, declare and agree as follows.

 

ARTICLE 1

ESTABLISHMENT OF TRUST

 

1.1          TRUST DEPOSITS. The Employer shall
deposit with the Trustee, in trust, certain funds, as required under the Plan,
which funds shall be held, administered and disposed of by the Trustee as
provided in this Trust Agreement.

 

1.2          IRREVOCABILITY.  The
Trust shall be irrevocable.

 

1.3          GRANTOR TRUST. The Trust is
intended to be a grantor trust, of which the Employer is the grantor, within
the meaning of sub-part E, part I, subchapter J, chapter 1, subtitle A of the
Internal Revenue Code of 1986, as amended, and shall be construed accordingly.

 

1.4          TRUST ASSETS. The principal of the
Trust, and any earnings, shall be held separate and apart from other funds of the Employer and shall be used exclusively
for the uses and purposes of the Plan and general insolvency creditors
of the Employer as set forth in this Trust Agreement.

 

1.5          ACCEPTANCE OF TRUST. The Trustee
accepts the Trust established under this Trust Agreement, and it agrees to
discharge and perform fully and faithfully all of the duties and obligations
imposed upon it under this Trust Agreement.

 

ARTICLE 2

PLAN AS PART OF TRUST AGREEMENT

 

2.1          INCORPORATION BY REFERENCE. The
Plan is expressly incorporated into this Trust Agreement and made a part of
this Trust Agreement with the same force and effect as if the Plan had been
fully set forth within this Trust Agreement. A copy of the Plan has been
delivered to the Trustee. All terms defined in the Plan shall have the same
meanings when used in this Trust Agreement unless expressly provided to the
contrary. The Employer shall deliver to the Trustee copies of all amendments to
the Plan made after the date of this Trust Agreement.

 

 

1

 

2.2          BENEFIT PROVISIONS. The terms of
the Plan shall govern the amount, form and timing of benefit payments under the
Plan and a Plan participant or beneficiary may make application for payment
directly to the Trustee.

 

2.3          AMENDMENT OF PLAN.
The incorporation of
the Plan into this Trust shall not affect the provisions of the Plan concerning
the amendment or termination of the Plan.

 

2.4          SEPARATE PLAN ACCOUNTS. The
Trustee shall establish and maintain separate accounts within the Trust for
each Participant in the Plan. Each account will separately account for deemed
earnings and losses credited or debited to that account, and the applicable
deemed investments of that account.

 

2.5          CONFLICTS WITH
TRUST. If any
provision of the Plan is inconsistent with any provision of this Trust, the
terms of this Trust shall control.

 

2.6          TRUSTEE RELIANCE. Any direction
received by the Trustee from the Employer or its representatives concerning the
Trustee’s receipt, holding, disposition, investment, or other treatment of the assets of the Trust shall
conclusively be deemed to be in accordance with the terms of the
applicable Plan, and the Trustee shall be entitled to rely, and shall be held
harmless by the Employer in relying, on the propriety of the direction.

 

ARTICLE 3

PAYMENTS TO PLAN PARTICIPANTS AND BENEFICIARIES

 

3.1          PAYMENT SCHEDULE AND TAXES. The
Employer shall deliver to the Trustee a schedule (the “Payment Schedule”) that
indicates the amounts payable in respect of the Plan participant upon his or her becoming entitled to receive a distribution
from the Plan and that provides  the
form in which the amounts are to be paid (as provided for and available under
the Plan) and the time of commencement for the payment of the amounts.
Except as otherwise provided in this Trust Agreement, the Trustee shall make
payments to the Plan participant or his or her beneficiaries in accordance with the Payment Schedule. The Trustee,
after consulting with the Employer, shall make  provision for the reporting and withholding of any federal, State or
local taxes that may be required  to
be withheld with respect to the payment of benefits pursuant to the terms of
the Plan and shall pay amounts withheld to the appropriate taxing
authorities or determine that the amounts have been reported, withheld and paid
by the Employer.

 

3.2          ENTITLEMENT TO BENEFITS. The
entitlement of the Plan participant or his or her beneficiaries to benefits
under the Plan shall be determined under the terms of the Plan, and any claim
for Plan benefits shall be considered and reviewed under the procedures set
out, in the Plan.

 

3.3          PAYMENTS BY EMPLOYER. The
Employer, may make payment of benefits directly to the Plan participant or his
or her beneficiaries as they become due under the terms of the Plan.. The
Employer shall notify the Trustee .of its decision to make payment of benefits
directly prior to the time amounts are payable to the Plan participant or his
or her beneficiaries.

 

2

 

ARTICLE
4

TRUSTEE
RESPONSIBILITY WHEN EMPLOYER IS INSOLVENT

 

4. 1         CESSATION OF PAYMENTS ON EMPLOYER INSOLVENCY.
The Trustee shall cease payment of benefits to participants and beneficiaries
under the Plan if the Employer is Insolvent. The Employer shall be considered
“Insolvent” for purposes of this Trust Agreement if (i) the Employer is unable
to pay its debts as they become due; or (ii) the Employer is subject to a
pending proceeding as a debtor under the United States Bankruptcy Code.

 

4.2          CLAIMS OF CREDITORS.
At all times during the .continuance of this Trust, the principal and income of
the Trust shall be subject to claims of general creditors of the Employer under
federal and state law as set forth below.

 

(a)           The
Board of Directors and the chief executive officer of the Employer shall have
the duty to inform the Trustee in writing of the .Employer’s Insolvency. If a
person claiming to be a creditor of the Employer alleges in writing to the
Trustee that the Employer has become Insolvent, the Trustee shall determine
whether the Employer is. Insolvent and, pending a determination, the Trustee
shall discontinue payment of benefits to Plan participants and beneficiaries.

 

(b)           Unless
the Trustee has actual knowledge of the Employer’s Insolvency, or has received
notice from the Employer or a person claiming to be a creditor alleging that
the Employer is Insolvent, the Trustee shall have no duty to .inquire whether
the Employer is Insolvent. The Trustee may in all events rely on any evidence
concerning the Employer’s solvency as may be furnished to the Trustee and that
provides the Trustee with a reasonable basis for making a determination
concerning the Employer’s solvency.

 

(c)           If
at any time the Trustee has determined that the Employer is Insolvent, the
Trustee shall discontinue payments to participants and beneficiaries of the
Plan and shall hold the assets of the. Trust for the benefit of the Employer’s
general creditors. Nothing in this Trust Agreement shall in any way diminish
any rights of any participant or beneficiary of the Plan to pursue his or-her rights as a general creditor of the Employer with respect to benefits
due under the Plan or otherwise.

 

(d)           The
Trustee shall resume the payment of benefits to the Plan participants and
beneficiaries in accordance with the terms of this Trust Agreement only after
the Trustee has determined that the Employer is not Insolvent (or is no longer
Insolvent).

 

(e)           Except as expressly
provided in this Trust Agreement, the Employer shall have no right or power to
direct the Trustee to return to the Employer or to divert to others any of the Trust assets before all payments of benefits
have been made to all participants and beneficiaries of the Plan (or to
the Employer, in the case of the inability to locate a payee under the terms of
a Plan) pursuant to the terms of the Plan.

 

(f)              If the Trustee
makes payments from the Trust for the benefit of the general. creditors of the Employer under this Section and
assets remain in the Trust after a payment of assets  to the general creditors of the Employer under
this Section, each Plan participant’s allocable deemed  interest in Trust assets following cessation of
payments to the general creditors of the Employer shall  equal the value of the aggregate assets of the
Trust immediately following the date the Trustee last makes a payment
for the benefit of the Employer’s general creditors multiplied by a fraction,
the numerator of which is the value of the participant’s account on the date
the Trustee deems the Employer to be Insolvent and ceases payments to the Plan
participants and their beneficiaries less payments made to or on behalf of the
participant under the Plan since that date (whether or not directly from the Trust) and the denominator of
which is the value of all Plan participants’ accounts.  on the date the Trustee deems the Employer to be
Insolvent and ceases payments to Plan participants  and their beneficiaries less the aggregate amount
of payments made to or on behalf of all participants under the Plan
since that date (whether or not from the Trust).

 

3

 

4.3          RECOMMENCEMENT OF PAYMENTS. If the
Trustee discontinues payments from the Trust
to the participant or his or her beneficiaries pursuant to Section 4.1 and
subsequently resumes payments, the first payments following the
discontinuance shall include the aggregate amount of all payments which would
have been made to the participant or his or her beneficiaries (together with
the deemed- earnings or losses on the payments under the terms of the Plan) in
accordance with the Plan during the period of discontinuance, less the
aggregate amount of payments, if any, made to the participant or his or her
beneficiaries by the Employer in lieu of the payments provided for under this
Trust Agreement during any period of discontinuance.

 

ARTICLE 5

PAYMENTS TO EMPLOYER

 

5.1          PAYMENTS TO THE EMPLOYER. Except
as provided in this Trust Agreement or in the Plan, the Employer shall have no
right or power to direct the Trustee to return to the Employer or to divert to
others any of the Trust assets before all payments of benefits have been made
to Plan participants and beneficiaries pursuant to the terms of the Plan.

 

ARTICLE 6

INVESTMENT AUTHORITY

 

6.1          TRUSTEE AUTHORITY. Except as
provided in Section 6.2, all rights associated with assets of the Trust
shall be exercised by the Trustee or the person designated by the Trustee, and
shall in no event be exercisable by or rest with any Plan participant or
beneficiary or the Employer. The Trustee shall have the following powers with
respect to any and all monies, securities and other assets at any time held by it and constituting part or all of the
Trust, those powers, subject to Section 6.2, to be exercised by it
in its sole discretion:

 

(a)           To
purchase or subscribe for and invest in any securities, but not including any securities of the Trustee or any affiliate of
the Trustee, and to retain those securities in the Trust. The term “securities”
shall be deemed to include, but not be limited to, common and preferred stocks, mortgages, debentures, bonds, notes or
other evidences of indebtedness, and other forms of  securities, including those issued by the Employer
or sold by employees participating under the Plan; provided, however,
that no stock, securities or evidence of indebtedness of said Employer or
employees shall be acquired by or held unless the Trustee is so directed by the
Employer.

 

The Trustee is authorized to invest and reinvest all
or a portion of the Trust in shares of any open-ended investment fund .or
company, including but not limited to, any fund or company which is managed by
an affiliate of the Trustee.

 

(b)           To
sell, transfer and convey for cash or on credit, convert, redeem, exchange for
other securities, or otherwise to dispose of any
securities at any time held by it.

 

4

 

(c)           To
exercise any conversion privilege and/or subscription right available in connection with any securities at any time held by
it; to oppose or to consent to the reorganization, consolidation,
merger, or readjustment of the finances of any corporation, company or
association or to the sale, mortgage, pledge
or lease of the property of any corporation, company or association, or
to the sale, mortgage, pledge or lease of any of the securities which may at
any time be held by it, and to do any act with reference thereto, including the
exercise of options, the making of agreements
or subscriptions and the payment of expenses, assessments or subscriptions,
which may be deemed necessary or advisable in connection therewith, and
to hold and retain any securities which it may so acquire.

 

(d)           To
vote, personally or by general or limited proxy, any securities which may be
held by it at any time and, similarly, to exercise, personally or by general or
limited proxy, any right appurtenant to any securities held by it at any time.

 

(e)           To
register any securities held by it hereunder in its own name or in the name of a nominee, or in any form permitting title to
pass by delivery, providing the records of the Trustee shall clearly
indicate the ownership of any asset of the Trust.

 

(f)            To
make, execute and deliver .any and all mortgages, contracts,
consents, waivers, releases or other instruments in writing necessary or proper
for the accomplishment of any of its powers.

 

(g)           To
invest and reinvest all or any portion of the Trust in units of participation
in one or more common, collective or commingled trust funds that may be
established and maintained by the Trustee or other trustee. Any common,
collective or commingled trust fund may be specifically designated for
investment in guaranteed investment contracts.

 

(h)           To
invest any part or all of the ‘Trust (including idle cash balances) in
certificates of deposit, demand or time deposits, savings accounts, money
market accounts or similar investments of the. Trustee or of any affiliate of
the Trustee, which bear a reasonable rate of interest.

 

6.2          EMPLOYER AUTHORITY.
The Employer shall have
the right at any time, and from time to time
in its sole discretion, to direct the Trustee as to the investment of the
assets of the Trust (including directions that reflect the deemed
investment directions of Plan participants), to require the Trustee to maintain
separate accounts representing assets of the Trust which are maintained for the
purpose of providing benefits to particular participants and beneficiaries of
the Plan and/or to substitute assets of equal fair market value for any asset
held by the Trust. These rights are exercisable by the Employer in a
non-fiduciary capacity without the approval or consent of any person in a
fiduciary capacity. In addition, the Employer may, from time to time and in its
discretion, provide an investment and/or
asset allocation policy which the Trustee shall follow when making
investment decisions hereunder. Whenever the Employer has issued written
instructions, the Trustee shall not be
liable and shall be held harmless and indemnified for any losses incurred by
the Trust Fund caused by the Trustee’s reliance thereon and the carrying out by
the Trustee of the instructions; including, but not limited to, losses as are
actually realized losses and losses in the nature of “lost investment
opportunities”.

 

6.3          INDEMNIFICATION. If the Trustee
invests any or all of the Trust Fund pursuant to the directions of the
Employer, the Employer agrees to indemnify and hold harmless the Trustee from
any claim of loss to the Trust Fund arising out of the Trustee’s compliance
with the Employer’s investment directions.

 

ARTICLE 7

DISPOSITION OF INCOME

 

7.1          DISPOSITION OF INCOME. During the
term of this Trust, all income received by the
Trust shall be accumulated and reinvested, and ultimately distributed, as
provided in this Trust Agreement and in the Plan.

 

5

 

ARTICLE 8

ACCOUNTING BY TRUSTEE

 

8.1          ACCOUNTING BY TRUSTEE. The Trustee
shall keep accurate and detailed records of
all investments, receipts, disbursements, and all other transactions required
to be made, including any specific records as shall be agreed upon in
writing between the Employer and the Trustee. Within
ninety (90) days following the close of each calendar year and within ninety
(90) days after  the removal or
resignation of the Trustee, the Trustee shall deliver to the Employer a written
account of its administration of the Trust during the year or during the
period from the close of the last preceding year to the date of the removal or
resignation, setting forth all investments, receipts, disbursements and other
transactions effected by it, including a description of all securities and
investments purchased and sold with the cost or net proceeds of the purchases
or sales (accrued interest paid or receivable being shown separately), and
showing all cash, securities and other property held in the Trust at
the end of the year or as of the date of removal or resignation, as the case
may be.

 

If
the Employer directs the Trustee to perform separate recordkeeping with respect
to assets of the Trust attributable to each Plan participant’s proportionate
interest in the Plan, the proportionate interest shall be based on the amount
of each contribution to the Trust that the Employer
specifies in writing to the Trustee is attributable to the Plan account(s) of
the Participant  and for earnings or
losses of the Trust credited or debited, as applicable, to the Plan account(s) and
attributable to the performance of the investments of the Trust attributable to
the Plan account(s) (either based on each the participant’s proportionate
interest in the entire Trust fund or in separate investment funds established
under the Trust for participant investment direction). In such a case, the Trustee periodically shall deliver to the
Employer a written account of its administration of the Trust setting
forth the value of each participant’s account(s) as of the beginning and
end of the period. Trust assets attributable to a Plan participant’s Plan
account(s) shall be maintained merely as book entries under a single Trust
account maintained hereunder, and no assets or funds shall be required to be: paid to, held in or invested in
any separate Trust account apart from any other assets or funds of the Trust.

 

ARTICLE 9

RESPONSIBILITY OF THE TRUSTEE

 

9.1          PRUDENT PERSON. The Trustee shall
act with the care, skill, prudence and diligence under the circumstances then
prevailing that a prudent person acting in like capacity and familiar with such
matters would use in the conduct of an enterprise of a like character and with
like aims; provided, however, that the Trustee shall incur no liability to any
person for any action taken pursuant to a direction, request or approval given
by the Employer which is contemplated by, and in conformity with, the terms of
the Plan or this Trust and is given in writing by the Employer. In the event of
a dispute between the Employer and a party, the Trustee may apply to a court of
competent jurisdiction to resolve the dispute.

 

9.2          TRUSTEE
INDEMNIFICATION.

 

(a)           If the Trustee
undertakes or defends any litigation arising in connection with this Trust, the
Employer agrees to indemnify the Trustee against the Trustee’s costs, expenses
and liabilities (including, without limitation, attorneys’ fees and expenses)
relating thereto and to be primarily liable
for the payments. If the Employer does not pay these costs, expenses and
liabilities in a reasonable timely manner, the Trustee may obtain
payment from the Trust.

 

6

 

(b)           The Employer agrees
to hold harmless and indemnify the Trustee, to the fullest extent permitted
under applicable law, for any and all liabilities of any kind incurred by the
Trustee in connection with the Plan and Trust (i) relating to periods of
time prior to the Trustee’s becoming Trustee
or (ii) relating to periods of time while the. Trustee is. Trustee, but
not related to the Trustee’s negligence, willful misconduct, or breach
of its fiduciary duties.

 

9.3          LEGAL COUNSEL. The Trustee may consult with legal counsel (who may also
be counsel for the Employer
generally) with respect to any of its duties or obligations hereunder.

 

9.4          HIRING AGENTS. The Trustee may
hire agents, accountants, actuaries, investment advisors, financial consultants
or other professionals to assist it in performing any of its duties or
obligations hereunder and rely upon advice given by those professionals.

 

9.5          TRUSTEE POWERS. The Trustee shall
have, without exclusion, all powers conferred on trustees by applicable law,
unless expressly provided otherwise in this Trust Agreement; provided, however, that if an insurance policy is ever held
as an asset of the Trust, the Trustee shall have no power to name a
beneficiary of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy
to a different form) other than to a successor trustee, or to loan to
any person the proceeds of any borrowing against the policy.

 

9.6          LIMITATION ON POWERS. The Trustee
shall not have any power that could give this Trust the objective of carrying
on a business and dividing the gains therefrom, within the meaning of IRS
Regulations Section 301.7701-2.

 

ARTICLE 10

FEES AND EXPENSES OF THE TRUSTEE

 

10.1        TRUSTEE EXPENSES AND FEES. The
Employer shall pay the Trustee’s fees and expenses with respect to which the
Trustee is entitled to compensation or reimbursement. If not so paid or if the
Plan provides for the Trust’s expenses, or any portion of those expenses, to be
charged against participants’ accounts, the fees and expenses shall be paid
from the Trust. If any fees or other
expenses are paid from the Trust or if any assets of the Trust are distributed
from the Trust other than for purposes of
paying benefits under the Plan (e.g., .are used to pay claims of the Employer’s
general insolvency creditors pursuant to Article 4), those fees,
expenses or other charges shall be charged against each Plan participant’s
interest in the Trust, pro  rata based upon the relative value of  each
participant’s interest in the Trust as of the Trust valuation date next
preceding the applicable payment or charge.

 

ARTICLE 11

RESIGNATION AND REMOVAL OF THE TRUSTEE

 

11.1        TRUSTEE RESIGNATION. The Trustee may resign at any time by thirty
(30) days advance written notice to the Employer.

 

11.2        TRUSTEE REMOVAL. The Trustee may be removed by the Employer
at any time by written notice to the Trustee.

 

11.3        TRANSFER OF ASSETS. Upon resignation or removal of the Trustee
and appointment of a successor trustee, all
assets shall promptly be transferred to the successor Trustee.

 

11.4        APPOINTMENT OF SUCCESSOR.
If the Trustee resigns or is removed, a successor shall be appointed, in
accordance with the following Section, by the effective date of resignation or
removal. If no appointment has been made, the Trustee may apply to a court of
competent jurisdiction for appointment of a. successor or for instructions. All
expenses of the Trustee in connection with the proceeding shall be allowed as
administrative expenses of the Trust.

 

7

 

ARTICLE 12

APPOINTMENT OF SUCCESSOR

 

12.1        APPOINTMENT OF SUCCESSOR. If the
Trustee resigns or is removed in accordance with Article 11, the Employer
may appoint any third party, such as a bank trust department or other party
that may be granted corporate trustee powers under State law, as a successor to
replace the Trustee upon resignation or removal. The appointment shall be
effective when accepted in writing by the new trustee, who shall have all of
the rights and powers of the former
trustee, including ownership rights in the Trust assets. The former trustee
shall execute any instrument necessary or
reasonably requested by the Employer or the successor trustee to evidence
the transfer.

 

ARTICLE 13

AMENDMENT OR TERMINATION

 

13.1        AMENDMENT. This Trust Agreement may be amended by a
written instrument executed by the Trustee
and the Employer. No amendment shall conflict with the terms of the Plan
or shall make the Trust revocable after it has become irrevocable in accordance
herewith.

 

13.2        TERMINATION. The Trust shall not terminate until the date
on which all Plan participants and beneficiaries no longer are entitled to
benefits pursuant to the terms of the Plan. Upon
termination of the Trust, any assets remaining in the Trust shall be returned
to the Employer.

 

ARTICLE 14

MISCELLANEOUS

 

14.1        VALIDITY OF PROVISIONS. Any
provision of this Trust Agreement prohibited by law shall be ineffective to the
extent of any the prohibition, without invalidating the remaining provisions of
this Trust Agreement.

 

14.2        NO ASSIGNMENT OF BENEFITS. Benefits
payable to a Plan participant or beneficiary
under this Trust Agreement may not be anticipated, assigned (either at law or
in equity), alienated, pledged, encumbered or subjected to attachment,
garnishment, levy, execution or other legal or equitable process.

 

14.3        GOVERNING LAW. This Trust Agreement
shall be governed by and construed in accordance with the laws of the State of
Maryland.

 

14.4        SUCCESSOR AND ASSIGNS. This
Agreement shall be binding upon and inure to the benefit of the Employer and
the Trustee and their respective successors and assigns.

 

14.5        TRUSTEE’S SUCCESSORS. Any
corporation into which the Trustee may be merged or with which it may be
consolidated, or any corporation resulting from any merger reorganization or consolidation to which the
Trustee may be a party, or any corporation to which all or substantially
all of the trust business of the Trustee may be transferred, shall be the
successor of the Trustee hereunder without the execution or filing of any
instrument or the performance of any act.

 

8

 

14.6        ADDITIONAL PLANS. The Employer may
elect at any time, on written notice to and with the .consent of the Trustee,
to utilize this Trust in connection with other executive compensation plans
maintained by the Employer. If the Employer makes this election, the various
provisions of this Trust Agreement shall be interpreted to take into account
the additional plan(s).

 

IN WITNESS WHEREOF, this Trust Agreement
has been duly executed by the parties hereto, effective January 1, 2006.

 

	
  ATTEST/WITNESS:

  	
   

  	
  BRADFORD BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  

 

9

 

BRADFORD
BANK

BOARD OF DIRECTORS RESOLUTIONS

 

The undersigned Secretary of Bradford Bank (the “Bank”) hereby
certifies that the following Resolutions
were duly adopted by action of the Board of Directors of the Bank on                             ,
2006

 

WHEREAS,
effective January 1, 2006, the Bank wishes to adopt the Bradford Bank
Director Voluntary Deferral and Supplemental Retirement Plan (the “Plan”) to
provide certain directors with an opportunity to defer some portion or all of
their director fees and to provide a retirement supplement to certain
directors; and

 

WHEREAS,
effective January 1, 2006, the Bank wishes to adopt the Bradford Bank
Director Voluntary Deferral and Supplemental Retirement Plan Trust (the “Trust”).

 

THEREFORE, be
it:

 

RESOLVED, that
the Plan and the Trust are adopted in the forms presented to this Board; and be
it further

 

RESOLVED,
that the proper officers of the Bank hereby are authorized and directed to
execute the Plan and the Trust and to
take such further actions and to execute such further documents as they may
deem advisable or desirable for purposes of adopting and implementing the Plan
and announcing the same to affected parties; and be it further

 

RESOLVED,
that the Plan and the Trust are subject to such further amendments as, in the
judgment of the proper officers of the Bank, may be necessary or desirable to
maintain the Plan’s and the Trust’s compliance with the provisions of
applicable law, and any such further amendments may be made without further
action by this Board and may be made retroactively effective if necessary or
appropriate.

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

BRADFORD
BANK

DIRECTOR VOLUNTARY DEFERRAL

AND

SUPPLEMENTAL RETIREMENT PLAN

DIRECTOR
FEE REDUCTION ELECTION FORM

 

For Base
Salary Earned During the 20       Calendar Year

 

Deadline for Completion: December 31,
20

 

PARTICIPANT
INFORMATION (Please Print in Ink):

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number:

  	
   

  	
   

  
	
   

  

 

	
  I.

  	
   

  	
   

  	
  This election applies-to committee fee and/or
  meeting fee deferrals (check one)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  committee fees only;

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  meeting fees only;

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  both committee and meeting fees.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
   

  	
   

  	
  Director Fee Deferral

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Choose any whole percentage from 0%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  to 100% or any whole dollar amount):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

I
elect to reduce my director fees by the
percentage(s) and/or amount(s) indicated above. I understand that
this Director Fee Reduction Election is subject to all of the applicable terms
of the Plan, including the requirement
that I may not change the election once made. I acknowledge that the reduction
election, if any, will continue until
the last day of the above-indicated calendar year. I acknowledge (a) that
my Plan benefits are subject to the
claims of the Employer’s creditors should the Employer become bankrupt or
insolvent, and (b) that a copy of
the Plan document and related Trust Agreement are available to me upon request.

 

	
  

  	
   

  	
   

  
	
  Date

  	
   

  	
  Participant’s Signature

  

 

NOTE:               If
you are a submitting this Form for the first time, you must also complete
an Initial Form and Timing of Payment
          Election Form (if you have
not already submitted one).

 

 

BRADFORD
BANK

DIRECTOR VOLUNTARY DEFERRAL

AND

SUPPLEMENTAL RETIREMENT PLAN

 

INITIAL TIMING AND FORM OF PAYMENT ELECTION FORM

 

PARTICIPANT
INFORMATION (Please Print in Ink):

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number:

  	
   

  	
   

  

 

 

I elect
to have my vested Plan Account paid as follows, subject to the applicable terms
of the Plan.

 

I further
understand that, if I later wish to change my election, the change (i) may
not accelerate the payment of my vested Plan Account, (ii) must be made at
least 12 months prior to the scheduled distribution date, and (iii) must
postpone payment (or commencement of payments) for at least five years from the
scheduled distribution date.

 

TIMING OF PAYMENT ELECTION

 

(Check
one of (a), (b) or (c) and complete as desired)

 

	
  (a)

  	
   

  	
   

  	
   

  	
  Specified Event Date. Please
  distribute my vested Plan Account on the event/date 

  
	
   

  	
   

  	
  checked below.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Separation from Service. I request
  that my entire vested Plan Account be 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  paid (or commence to be paid) 60 days following my
  Separation from Service with the Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Initial Fixed Payment Date Election.
  I request that my vested Plan Account 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  be paid on                         
  (select a date which is no earlier than January 1st of the
  third calendar year after the year in which you first begin to make
  deferrals).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  Earlier of Specified Events.
  Please distribute my vested Plan Account on the earliest to occur of the
  following checked events.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Separation from Service. I request
  that my entire vested Plan Account be 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  paid (or commence to be paid) 60 days following my
  Separation from Service with the Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Initial Fixed Payment Date Election.
  I request that my vested Plan Account 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  be paid on                         
  (select a date which is no earlier than January 1st of the
  third calendar year after the year in which you first begin to make
  deferrals).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Change Control Payment Date Election.
  I request that my vested Plan 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Account be paid 60 days following a Change in
  Control of my Employer.

  

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  Later of Specified Events.
  Please distribute my vested Plan Account
  on the latest to occur 

  
	
   

  	
   

  	
   

  	
   

  	
  of the following checked events.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Separation from Service. I request
  that my entire vested Plan Account be 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  paid (or commence to be paid) 60 days following my
  Separation from Service with the Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Initial Fixed Payment Date Election.
  I request that my vested Plan Account 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  be paid on                         
  (select a date which is no earlier than January 1st of the
  third calendar year after the year in which you first begin to make
  deferrals).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Change Control Payment Date Election.
  I request that my vested Plan 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Account be paid 60 days following a Change in
  Control of my Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FORM OF PAYMENT ELECTION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  I request that my Plan Account be paid (Check One):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  In a Lump Sum Distribution

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  In Annual Installments    Over (not
  to exceed 10) Years

  

 

I
understand that, notwithstanding my elections above, upon my death or
disability prior to the time distributions of my vested Plan Account begin, my
vested Plan Account will be distributed in the form of a lump sum 60 days
following my death or disability.

 

	
  

  	
   

  	
   

  
	
  Date

  	
   

  	
  Participant’s Signature

  

 

 

BRADFORD BANK

DIRECTOR VOLUNTARY DEFERRAL

AND SUPPLEMENTAL RETIREMENT PLAN

 

SUBSEQUENT TIMING AND FORM OF PAYMENT ELECTION FORM

 

PARTICIPANT
INFORMATION (Please Print in Ink):

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number:

  	
   

  	
   

  
	
   

  

 

Complete Section I
and/or Section II, as desired:

 

I.                      Distribution
Timing

 

(NOTE:
do not complete this portion if you already selected a Fixed Payment Date and
do not want to change that date.)

 

I
hereby elect to have the upcoming scheduled distribution of my vested Plan
Account (including deemed earnings and losses
attributable to contributions made by me or on my behalf) be delayed
until                           .
The date I have entered in the
previous sentence is at least five years from the scheduled distribution date,
and I have completed and submitted this Form at least 12 months prior to
that scheduled distribution date. I
understand that any distribution date elected above may not be accelerated and
may be extended solely as permitted under the Plan.

 

II.            Distribution Form

 

(NOTE:
do not complete this portion if you do not wish to change the form of
distribution previously elected.) (Check one)

 

          I
request that the form of distribution for amounts held in my vested Plan
Account under the Plan be made in annual installments over      
Years (not to exceed ten years).

 

          I
request that the form of distribution for amounts held in my vested Plan
Account under the Plan be made in a lump sum payment.

 

I
understand that this election is not effective unless made at least twelve (12)
months prior to the applicable distribution
date, and that this election will postpone commencement of payment until five (5) years
after the applicable distribution date. I further understand that,
notwithstanding my elections above, upon my death or disability prior to the
time distributions of my Plan Account begin and prior to my Separation from
Service from the Employer my vested Plan Account will be distributed in
the form of a lump sum sixty (60) days following my death or disability.

 

	
  

  	
   

  	
   

  
	
  Date

  	
   

  	
  Participant’s Signature

  

 

 

BRADFORD BANK

DIRECTOR VOLUNTARY DEFERRAL

AND

SUPPLEMENTAL RETIREMENT PLAN

 

DEEMED INVESTMENT ELECTION FORM

 

PARTICIPANT
INFORMATION (Please Print in Ink):

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number:

  	
   

  	
   

  
	
   

  

 

I revoke any
prior elections of deemed investments designations for the amounts credited to
my Plan account, and I elect the following deemed investments for all amounts
credited to my Plan account. This election shall-become
effective as soon as practicable, and is subject to all of the terms of the-Plan:

 

	
  Deemed
  Investment Options

  	
   

  	
  Percentage of Account

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  2.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  3.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  4.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  5.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  6.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  7.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  8.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  9.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
  10.

  	
   

  	
   

  	
   

  	
  (0%
  to 100%)

  
	
   

  	
  Total

  	
   

  	
  100%

  	
   

  

 

I realize that my employer is not liable for any losses resulting from
my selections indicated above. I
realize that there may be a reasonable administrative delay in processing any
deemed investment directions or transfers. I acknowledge that I have received
and had a reasonable opportunity to review current prospectus(es) for the fund(s) selected
above.

 

	
  

  	
   

  	
   

  
	
  Date

  	
   

  	
  Participant’s Signature

  

 

 

BRADFORD BANK

DIRECTOR VOLUNTARY DEFERRAL

AND SUPPLEMENTAL RETIREMENT PLAN

 

DESIGNATION OF DEATH BENEFIT BENEFICIARY/IES

 

PARTICIPANT
INFORMATION (Please Print in Ink):

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number:

  	
   

  	
   

  
	
   

  

 

I revoke any
prior designations ‘of death  benefit beneficiary/ies under the.
Bradford Bank Director Voluntary Deferral and Supplemental Retirement Plan (the “Plan”) and designate the following beneficiary/ies
to receive any benefit payable on account of
my death under the Plan, subject to my right to change this designation
and subject to the terms of the Plan.

 

A.                                                    Primary Beneficiary/ies

 

	
  Name, Address, Phone

  	
   

  	
  Relationship to 

  Participant

  	
   

  	
  % of Plan 

  Account

  	
   

  	
  Date of 

  Birth

  	
   

  	
  Social Security 

  Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B.                                    Contingent Beneficiary/ies (Will receive indicated portions of Plan
benefit if no Primary Beneficiary/ies survive the 

participant)

 

	
  Name, Address, Phone

  	
   

  	
  Relationship to 

  Participant

  	
   

  	
  % of Plan 

  Account

  	
   

  	
  Date of
  Birth

  	
   

  	
  Social Security 

  Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  
	
  Date

  	
   

  	
  Participant’s Signature

  

 

 

BRADFORD
BANK

DIRECTOR VOLUNTARY DEFERRAL

AND SUPPLEMENTAL RETIREMENT PLAN

 

HARDSHIP DISTRIBUTION FORM

 

PARTICIPANT
INFORMATION (Please Print in Ink):

 

	
  Participant Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Current Mailing Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  

 

I hereby request a hardship distribution from my
vested Plan account. I am requesting the following amount (which includes
ordinary income taxes which are reasonably anticipated to result from the
hardship withdrawal if approved): 

$

 

I am requesting a
hardship distribution based on the following (Check
One):

 

	
  

  	
   

  	
  Severe financial hardship to me resulting from an
  illness or accident affecting me, my spouse or
  one of my  

  
	
   

  	
   

  	
  “dependents” as defined in section 152(a) of
  the Internal Revenue Code.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Severe financial hardship to me resulting from a
  loss of my property due to casualty.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Severe financial hardship to me resulting from other
  similar extraordinary and unforeseeable circumstances 

  
	
   

  	
   

  	
  arising as. a result of events beyond my
  control. Explain:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

I have attached
appropriate supporting documentation.

 

I understand that I may
receive a distribution only of the amount which Bradford Bank or its designee decides  is
necessary to relieve my financial hardship (plus amounts necessary to pay taxes
reasonably anticipated as  a result
of the distribution), after taking into account the extent to which the
hardship is or may be relieved through reimbursement or compensation by
insurance or otherwise or by liquidation of my assets (to the extent the
liquidation of assets would not itself cause severe financial hardship).

 

I
also understand that a hardship distribution will be made only with the consent
of Bradford Bank or its designee and only in accordance with Internal
Revenue Code section 409A.

 

	
  

  	
   

  	
   

  
	
  Date

  	
   

  	
  Participant’s Signature

  
	
   

  	
   

  	
   

  
	
   

  

 

 

FOR
BRADFORD BANK USE ONLY:

 

o  Approved                                        o  Denied

 

	
  

  	
   

  	
  BRADFORD BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]