Document:

Exhibit 10.40

 

EMPLOYMENT AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

		3.	COMPENSATION AND BENEFITS.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		6.	DISCHARGE FOR CAUSE.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		10.	CHANGE IN CONTROL.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10.4       OTHER TERMINATION.
Notwithstanding any other provision of this Agreement to the contrary, the Employee may voluntarily terminate employment under
this Agreement within twelve (12) months following a Change in Control of the Bank or Corporation, and the Employee shall be entitled
to receive the payments and benefit continuation described in Sections 10.2 and 10.3 of this Agreement, upon the occurrence of
any of the following events, or within ninety (90) days thereafter, which have not been consented to in advance by the Employee
in writing: (a) the requirement that the Employee move his primary personal residence, or perform his principal executive functions,
more than thirty-five (35) miles from his primary office as of the date of the Change in Control; (b) a material reduction in the
Employee’s base salary as in effect on the date of the Change in Control or as the same may be increased from time to time; (c)
the failure of the Bank to continue to provide the Employee with compensation and benefits provided for under this Agreement, as
the same may be increased from time to time, or with benefits substantially similar to those provided to him under any of the employee
benefit plans in which the Employee now or hereafter becomes a participant, or the taking of any action by the Bank which would
directly or indirectly reduce any such benefits or deprive the Employee of any material fringe benefit provided to him at the time
of the Change in Control; (d) the assignment to the Employee of duties and responsibilities materially different from those normally
associated with his position as referenced in Section 1; (e) a failure to elect or reelect the Employee to the Board if the Employee
is serving on the Board on the date of the Change in Control; or (f) a material diminution or reduction in the Employee’s responsibilities
or authority (including reporting responsibilities) in connection with his employment with the Bank.

 

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11.         LIMITATION
OF BENEFITS UNDER CERTAIN CIRCUMSTANCES. If the payments and benefits provided pursuant to Section 10 of this Agreement, either
alone or together with other payments and benefits the Employee has the right to receive from the Bank, would constitute a “parachute
payment” under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), the payments and benefits
pursuant to Section 10 shall be reduced or revised, in the manner determined by the Employee, by the amount, if any, which is the
minimum necessary to result in no portion of the payments and benefits under Section 10 being non-deductible to the Bank pursuant
to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. The Bank’s independent public
accountants will determine any reduction in the payments and benefits to be made pursuant to Section 10; the Bank will pay for
the accountant’s opinion. If the Bank and/or the Employee do not agree with the accountant’s opinion, the Bank will pay to the
Employee the maximum amount of payments and benefits pursuant to Section 10, as selected by the Employee, that the opinion indicates
have a high probability of not causing any of the payments and benefits to be non-deductible to the Bank and subject to the excise
tax imposed under Section 4999 of the Code. The Bank may also request, and the Employee has the right to demand that the Bank request,
a ruling from the IRS as to whether the disputed payments and benefits pursuant to Section 10 have such tax consequences. The Bank
will promptly prepare and file the request for a ruling from the IRS, but in no event will the Bank make this filing later than
thirty (30) days from the date of the accountant’s opinion referred to above. The request will be subject to the Employee’s approval
prior to filing; the Employee shall not unreasonably withhold such approval. The Bank and the Employee agree to be bound by any
ruling received from the IRS and to make appropriate payments to each other to reflect any IRS rulings, together with interest
at the applicable federal rate provided for in Section 7872(f)(2) of the Code. Nothing contained in this Agreement shall result
in a reduction of any payments or benefits to which the Employee may be entitled upon termination of employment other than pursuant
to Section 10 hereof, or a reduction in the payments and benefits specified in Section 10, below zero.

 

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

 

13.         MISCELLANEOUS
PROVISIONS.

 

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

 

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

 

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

 

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

 

13.5       ASSIGNMENT; SUCCESSORS
AND ASSIGNS, ETC.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	11	 

     

    

 

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

 

	ATTEST:	 	COMMUNITY BANK OF TRI-COUNTY
	 	 	 
	/s/ Gregory C. Cockerham	 	/s/ Michael L. Middleton
	 	 	Michael L. Middleton
	 	 	President
	 	 	 
	ATTEST:	 	TRI-COUNTY FINANCIAL CORPORATION
	 	 	(As Guarantor)
	 	 	 
	/s/ Gregory C. Cockerham	 	/s/ Michael L. Middleton
	 	 	Michael L. Middleton
	 	 	President
	 	 	 
	WITNESS:	 	EMPLOYEE:
	 	 	 
	/s/ Gregory C. Cockerham	 	/s/ James M.Burke
	 	 	James M.Burke

 

    	 	12	 

     

    

 

Amendment

to the

Employment Agreement

 

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

 

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

 

WHEREAS, the
Employee and the Bank previously entered into an Employment Agreement dated April 20, 2007 (the “Employment Agreement”);
and

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

	COMMUNITY BANK OF TRI-COUNTY
	 	 
	By: 	/s/ Michael L. Middleton	 
	 	 
	Title: 	President	 
	 	 
	 	 
	TRI-COUNTY FINANCIAL CORPORATION
	 	 
	By: 	/s/ Michael L. Middleton	 
	 	 
	Title: 	President	 
	 	 
	EMPLOYEE:	 
	 	 
	/s/ James M.Burke	 
	James M.Burke	 

  

  

     

     

    

 

Second Amendment

Employment Agreement

 

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

 

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

 

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

 

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

 

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

 

First Change

 

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

 

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

 

Second Change

 

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

 

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

 

     

     

    

 

Third Change

 

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

 

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

 

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

 

	 	 	COMMUNITY BANK OF TRI-COUNTY
	 	 	 
	/s/ Christy M. Lombardi	 	/s/ William J. Pasenelli
	Witness	 	For the Bank
	 	 	 
	April 23, 2013	 	 
	Date	 	 
	 	 	 
	 	 	TRI-COUNTY FINANCIAL CORPORATION
	 	 	 
	/s/ Christy M. Lombardi	 	/s/ William J. Pasenelli
	Witness	 	For the Company
	 	 	 
	April 23, 2013	 	 
	Date	 	 
	 	 	 
	 	 	EMPLOYEE
	 	 	 
	/s/ Christy M. Lombardi	 	/s/ James M. Burke
	Witness	 	James M. Burke
	 	 	 
	April 23, 2013	 	 
	DateExhibit 10.41

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

COMMUNITY BANK OF TRI-COUNTY 

SALARY CONTINUATION AGREEMENT

 

THIS SALARY CONTINUATION
AGREEMENT (the “Agreement”) is adopted this 21st day of August, 2006, by and between COMMUNITY BANK OF TM-COUNTY, a
state-chartered commercial bank located in Waldorf, Maryland (the “Company-) and JAMES MULDOWNEY BURKE (the “Executive”).

 

The purpose of this Agreement
is to provide specified benefits to the Executive, a member of a select group of management or highly compensated employees who
contribute materially to the continued growth, development, and future business success of the Company. This Agreement shall be
unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”),
as amended from time to time.

 

Article 1

Definitions

 

Whenever used in this Agreement, the following
words and phrases shall have the meanings specified:

 

		1.1	“Beneficiary” means each designated
person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive determined pursuant
to Article 4.

 

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

 

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

 

		1.4	“Change in Control” shall mean the
occurrence of any of the following events:

 

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

 

    	 	1	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

(b)          any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange
Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more
of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board
of Directors of the Company (the “Company Voting Securities”); provided, however, that the event described in this
paragraph (b) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (1) by the Company
or any subsidiary, (2) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary,
(3) by any underwriter temporarily holding securities pursuant to an offering of such securities or (4) a transaction (other than
one described in (c) below) in which Company Voting Securities are acquired from the Company, if a majority of the Incumbent Directors
approve a resolution providing expressly that the acquisition pursuant to this clause (4) does not constitute a Change in Control
under this paragraph (b);

 

(c)          the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company
or any of its subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the
issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination:
(1) at least 50% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving
Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership
of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”),
is represented by the Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable,
is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and
such voting power among (and only among) the holders thereof is in substantially the same proportion as the voting power of such
Company Voting Securities among the holders thereof immediately prior to the Business Combination, (2) no person (other than any
employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation) is or
becomes the beneficial owner, directly or indirectly, of 25% or more of the total voting power of the outstanding voting securities
eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (3)
at least 50% of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) following the consummation of the Business Combination were Incumbent 
Directors at the time of the Company Board’s approval of the execution of the initial agreement providing for such Business
Combination; or

 

    	 	2	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

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

 

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

 

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

 

		1.6	“Corporation” means the Tri-County
Financial Corporation.

 

		1.7	“Disability” means the Executive’s
(i) inability 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 12 months; or (ii)
receipt of disability benefits for a period of 3 months under an accident and health plan of the employer by reason of the participant’s
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.

 

		1.8	“Early Termination” means Separation
from Service before Normal Retirement Age except when such Separation from Service occurs: (i) within twelve (12) months following
a Change in Control; or (ii) due to death, Disability, or Termination for Cause.

 

		1.9	“Effective Date” means January 1,
2006.

 

		1.10	“Normal Retirement Age” means the
Executive attaining age sixty-five (65).

 

		1.11	“Normal Retirement Date” means the
date of the Executive’s Separation from Service on or after attaining Normal Retirement Age.

 

		1.12	“Plan Administrator” means the plan
administrator described in Article 6.

 

		1.13	“Plan
                                         Year” means each twelve-month period commencing on January l and ending on
                                         December 31st of each year. The initial Plan Year shall commence on the Effective
                                         Date of this Agreement and end on the following December 31st.

 

    	 	3	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

		1.14	“Schedule A” means the schedule attached
to this Agreement and made a part hereof. Schedule A shall be updated upon a change in any of the benefits under Articles 2 or
3.

 

		1.15	“Separation from Service” means the
termination of the Executive’s employment with the Company for reasons other than death (except as provided in Section 1.8).
Whether a Separation from Service takes place is determined based on the facts and circumstances surrounding the termination of
the Executive’s employment and whether the Company and the Executive intended for the Executive to provide significant services
for the Company following such termination_ A termination of employment will not be considered a Separation from Service if:

 

		(a)	the Executive continues to provide services as an employee of the Company at an annual rate that
is twenty percent (20%) or more of the services rendered, on average, during the immediately preceding three full calendar years
of employment (or, if employed less than three years, such lesser period) and the annual remuneration for such services is twenty
percent (20%) or more of the average annual remuneration earned during the final three full calendar years of employment (or, if
less, such lesser period), or

 

		(b)	the Executive continues to provide services to the Company in a capacity other than as an employee
of the Company at an annual rate that is fifty percent (50%) or more of the services rendered, on average, during the immediately
preceding three full calendar years of employment (or if employed less than three years, such lesser period) and the annual remuneration
for such services is fifty percent (50%) or more of the average annual remuneration earned during the final three full calendar
years of employment (or if less, such lesser period).

 

		1.16	“Specified Employee” means a key employee
(as defined in Section 416(i) of the Code without regard to paragraph 5 thereof) of the Company if any stock of the Company is
publicly traded on an established securities market or otherwise.

 

		1.17	“Termination for Cause” shall have
the meaning set forth in Article 5.

 

Article 2

Distributions During Lifetime

 

		2.1	Normal Retirement
                                         Benefit. Upon Separation from Service on or after the Normal Retirement Date, the
                                         Company shall distribute to the Executive the benefit described in this Section 2.1 in
                                         lieu of any other benefit under this Article.

 

		2.1.1	Amount of
                                         Benefit. The annual benefit under this Section 2.1 is Sixty-Five Thousand Dollars
                                         ($65,000), payable for a period of fifteen (15) years and resulting in a total benefit
                                         of Nine Hundred Seventy-Five Thousand Dollars ($975,000). The Company’s Board of
                                         Directors, in its sole discretion, through a duly adopted resolution, may increase the
                                         annual benefit under this Section prior to the Executive’s Separation from Service.

 

    	 	4	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

		2.1.2	Distribution
                                         of Benefit. The Company shall distribute the benefit to the Executive in one hundred
                                         eighty (180) consecutive equal monthly installments, commencing on the first day of the
                                         month following Separation from Service.

 

		2.2	Early Termination
                                         Benefit. Upon Early Termination, the Company shall distribute to the Executive the
                                         benefit described in this Section 2.2 in lieu of any other benefit under this Article.

 

		2.2.1	Amount of
                                         Benefit. The benefit under this Section 2.2 is the Early Termination Benefit set
                                         forth on Schedule A for the Plan Year ending prior to Separation from Service.

 

		2.2.2	Distribution
                                         of Benefit. The Company shall distribute the benefit to the Executive in one hundred
                                         eighty (180) consecutive equal monthly installments commencing the first day of the month
                                         following the Executive attaining Normal Retirement Age.

 

		2.3	Disability Benefit.
                                         If the Executive experiences a Disability which results in a Separation from Service
                                         prior to Normal Retirement Age, the Company shall distribute to the Executive the benefit
                                         described in this Section 2.3 in lieu of any other benefit under this Article.

 

		2.3.1	Amount of
                                         Benefit. The benefit under this Section 2.3 is the Normal Retirement Benefit amount
                                         described in Section 2.1.1.

 

		2.3.2	Distribution
                                         of Benefit. The Company shall distribute the benefit to the Executive in one hundred
                                         eighty (180) consecutive equal monthly installments commencing the first day of the month
                                         following the Executive attaining Normal Retirement Age.

 

		2.4	Change in Control
                                         Benefit. Upon a Change in Control, followed within twelve (12) months by a Separation
                                         from Service, the Company shall distribute to the Executive the benefit described in
                                         this Section 2.4 in lieu of any other benefit under this Article.

 

		2.4.1	Amount of Benefit. The benefit under this Section
2.4 is the Normal Retirement Benefit amount described in Section 2.1.1.

 

		2.4.2	Distribution
                                         of Benefit. The Company shall distribute the benefit to the Executive in one hundred
                                         eighty (180) consecutive equal monthly installments commencing the first day of the month
                                         following the Executive attaining Normal Retirement Age.

 

    	 	5	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

		2.5	Restriction
on Timing of Distribution. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered
a Specified Employee at Separation from Service under such procedures as established by the Company in accordance with Section
409A of the Code, benefit distributions that are made upon Separation from Service may not commence earlier than six (6) months
after the date of such Separation from Service. Therefore, in the event this Section 2.5 is applicable to the Executive, any distribution
which would otherwise be paid to the Executive within the first six months following the Separation from Service shall be accumulated
and paid to the Executive in a lump sum on the first day of the seventh month following the Separation from Service. All subsequent
distributions shall be paid in the manner specified under this Article 11 of the Plan with respect to the applicable benefit.

 

		2.6	Distributions
                                         Upon Income Inclusion Under Section 409A of the Code. Upon the inclusion of any amount
                                         into the Executive’s income as a result of the failure of this non-qualified deferred
                                         compensation plan to comply with the requirements of Section 409A of the Code, to the
                                         extent such tax liability can be covered by the amount which the Company has accrued
                                         with respect to the obligations described in this Article 2, a distribution shall be
                                         made as soon as is administratively practicable following the discovery of the plan failure.

 

		2.7	Change in Form or Timing of Distributions. For
distribution of benefits under this Article 2, the Executive and the Company may, subject to the terms of Section 8.1, amend the
Agreement to delay the timing or change the form of distributions. Any such amendment:

 

		(a)	may not accelerate the time or schedule of any distribution, except as provided in Section
                                                                                                  409A of the Code and the regulations thereunder;

 

		(b)	must, for benefits distributable under Section 2.2, 2.3 and 2.4, be made at least twelve (12)
                                                                                                  months prior to the first scheduled distribution;

 

		(c)	must, for benefits distributable under Sections 2.1, 2.2, 2.3 and 2.4, delay the commencement
                                                                                                  of distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; and 

 

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

 

Article 3

Distribution at Death

 

		3.1	Death During
                                         Active Service. If the Executive dies before Separation from Service and prior to
                                         Normal Retirement Age, the Company shall distribute to the Beneficiary the benefit described
                                         in this Section 3.1. This benefit shall be distributed in lieu of the benefits under
                                         Article 2.

 

    	 	6	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

		3.1.1	Amount
                                         of Benefit. The benefit under this Section 3.1 is the Normal Retirement Benefit amount
                                         described in Section 2.1.1.

 

		3.1.2	Distribution
                                         of Benefit. The Company shall distribute the benefit to the Beneficiary in one hundred
                                         eighty (180) consecutive equal monthly installments for commencing the first day of the
                                         month following receipt by the Company of the Executive’s death certificate.

 

		3.2	Death During Distribution of a Benefit. If the
Executive dies after any benefit distributions have commenced under this Agreement but before receiving all such distributions,
the Company shall distribute to the Beneficiary the remaining benefits at the same time and. in the same amounts that would have
been distributed to the Executive had the Executive survived.

 

		3.3	Death After
                                         Separation from Service But Before Benefit Distributions Commence. If the Executive
                                         is entitled to benefit distributions under this Agreement, but dies prior to the commencement
                                         of said benefit distributions, the Company shall distribute to the Beneficiary the same
                                         benefits that the Executive was entitled to prior to death except that the benefit distributions
                                         shall commence within thirty (30) days following receipt by the Company of the Executive’s
                                         death certificate.

 

Article 4

Beneficiaries

 

		4.1	Beneficiary. The Executive shall have the right,
at any time, to designate a Beneficiary to receive any benefit distributions under this Agreement upon the death of the Executive.
The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other
plan of the Company in which the Executive participates.

 

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

 

    	 	7	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

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

 

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

 

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

 

Article 5

General Limitations

 

		5.1	Termination for Cause. Notwithstanding any provision
of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Company terminates the Executive’s
employment for Cause. Cause shall mean a good faith determination of the Company’s Board of Directors that the Executive
has: (a) engaged in acts of personal dishonesty which have resulted in loss to the Company, or one of its affiliates, (b) intentionally
failed to perform stated duties, (c) committed a willful violation of any law, rule, regulation (other than traffic violations
or similar offenses), (d) become subject to the entry of a final cease and desist order which results in substantial loss to the
Company or one of its affiliates, (e) been convicted of a crime or act involving moral turpitude, (f) willfully breached the Company’s
code of conduct and business ethics, (g) been disqualified or barred by any governmental or self-regulatory authority from serving
in the Executive’s then-current employment capacity or (h) willfully attempted to obstruct or failed to cooperate with any
investigation authorized by the Board of Directors or any governmental or self-regulatory entity. No act or failure to act on
the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive
in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company.
Any act or failure to act that is based upon authority given pursuant to a resolution duly adopted by the Board of Directors,
or upon the advice of legal counsel for the Company, shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company.

 

    	 	8	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

		5.2	Suicide
or Misstatement. No benefits shall be distributed if the Executive commits suicide within three years after the Effective
Date of this Agreement, or if an insurance company which issued a life insurance policy covering the Executive and owned by the
Company denies coverage (i) for material misstatements of fact made by the Executive on an application for such life insurance,
or (ii) for any other reason.

 

		5.3	Required Regulatory Provision. No payments will
be made under this Agreement that would violate of 12 U.S.C. Sec. 1828(k) or 12 U.S.C. Sec. 1818(e) or any regulation promulgated
thereunder.

 

Article 6

Administration of Agreement

 

		6.1	Plan Administrator Duties. This Agreement shall be administered by a Plan
                                                                               Administrator which shall consist of the Board, or such committee or person(s) as the Board shall appoint. The Plan
                                                                               Administrator shall administer this Agreement according to its express terms and shall also have the discretion and
                                                                               authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this
                                                                               Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in
                                                                               connection with the Agreement to the extent the exercise of such discretion and authority does not conflict with Section 409A
                                                                               of the Code and regulations thereunder.

 

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

 

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

 

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

 

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

 

    	 	9	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

		6.6	Annual
Statement. The Plan Administrator shall provide to the Executive, within one hundred twenty (120) days after the end of each
Plan Year, a statement setting forth the benefits to be distributed under this Agreement.

 

Article 7

Claims And Review Procedures

 

		7.1	For all claims, the following procedures will apply:

 

		7.1.1	Claims Procedure.
                                         Any individual (“Claimant”) who has not received benefits under this Agreement
                                         that he or she believes should be paid shall make a claim for such benefits as follows:

 

		7.1.1.1	Initiation — Written Claim. The Claimant
initiates a claim by submitting to the Company a written claim for the benefits.

 

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

 

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

 

		(a)	The specific reasons for the denial,

 

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

 

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

 

		(d)	An explanation of this Agreement’s review procedures and the time limits applicable to such procedures, and

 

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

 

    	 	10	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

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

 

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

 

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

 

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

 

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

 

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

 

		(a)	The specific reasons for the denial,

 

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

 

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

 

    	 	11	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

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

 

Article 8

Amendments and Termination

 

		8.1	Amendments. This Agreement may be amended only
by a written agreement signed by the Company and the Executive. However, the Company may unilaterally amend this Agreement to
conform with written directives to the Company from its auditors or banking regulators or to comply with legislative or tax law,
including without limitation Section 409A of the Code and any and all regulations and guidance promulgated thereunder.

 

		8.2	Plan Termination Generally. This Agreement may
be terminated only by a written agreement signed by the Company and the Executive. However, the Company may unilaterally amend
this Agreement to conform with written directives to the Company from its auditors or banking regulators or to comply with legislative
or tax law, including without limitation Section 409A of the Code and any and all regulations and guidance promulgated thereunder.
The benefit shall be frozen as of the date the Agreement is terminated. Except as provided in Section 8.3, the termination of
this Agreement shall not cause a distribution of benefits under this Agreement. Rather, upon such termination benefit distributions
will be made at the earliest distribution event permitted under Article 2 or Article 3.

 

		8.3	Plan Terminations Under Section 409A. Notwithstanding
anything to the contrary in Section 8.2, if the Company terminates this Agreement in the following circumstances:

 

		(a)	Within thirty (30) days before, or twelve (12) months after a change in the ownership or effective
control of the Company, or in the ownership of a substantial portion of the assets of the Company as described in Section 409A(2)(A)(v)
of the Code, provided that all distributions are made no later than twelve (12) months following such termination of the Agreement
and further provided that all the Company’s arrangements which are substantially similar to the Agreement are terminated
so the Executive and all participants in the similar arrangements are required to receive all amounts of compensation deferred
under the terminated arrangements within twelve (12) months of the termination of the arrangements;

 

		(b)	Upon the Company’s dissolution or
with the approval of a bankruptcy court provided that the amounts deferred under the Agreement are included in the Executive’s
gross income in the latest of (i) the calendar year in which the Agreement terminates; (ii) the calendar year in which the amount
is no longer 
subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the distribution is administratively practical;
or

 

    	 	12	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

		(c)	Upon the Company’s termination of this and all other non-account balance plans (as referenced
in Section 409A of the Code or the regulations thereunder), provided that all distributions are made no earlier than twelve (12)
months and no later than twenty-four (24) months following such termination, and the Company does not adopt any new non-account
balance plans for a minimum of five (5) years following the date of such termination;

 

the Company may distribute the amount which
the Company has accrued with respect to the Company’s obligations under Article 2 hereof, determined as of the date of the
termination of the Agreement, to the Executive in a lump sum subject to the above terms.

 

Article 9

Miscellaneous

 

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

 

		9.2	No Guarantee of Employment. This Agreement is
not a contract for employment. It does not give the Executive the right to remain as an employee of the Company, nor does it interfere
with the Company’s right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere
with the Executive’s right to terminate employment at any time.

 

		9.3	Non-Transferability. Benefits under this Agreement
cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

 

		9.4	Tax Withholding and Reporting. The Company shall
withhold any taxes that are required to be withheld, including, but not limited to, taxes owed under Section 409A of the Code
and regulations thereunder, from the benefits provided under this Agreement. The Executive acknowledges that the Company’s
sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies). Further, the Company
shall satisfy all applicable reporting requirements, including those under Section 409A of the Code and regulations thereunder.

 

		9.5	Applicable Law. The Agreement and all rights hereunder
shall be governed by the laws of the State of Maryland, except to the extent preempted by the laws of the United States Of America.

 

		9.6	Unfunded Arrangement. The Executive and the Beneficiary
are general unsecured creditors of the Company for the distribution of benefits under this Agreement. The benefits represent the
mere promise by the Company to distribute such benefits. The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the Executive’s
life or other informal funding asset is a general asset of the Company to which the Executive and Beneficiary have no preferred
or secured claim.

 

    	 	13	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

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

 

		9.8	Entire Agreement. This Agreement constitutes the
entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive
by virtue of this Agreement other than those specifically set forth herein.

 

		9.9	Interpretation. Wherever the fulfillment of the
intent and purpose of this Agreement requires, and the context will permit, the use of the masculine gender includes the feminine
and use of the singular includes the plural.

 

		9.10	Alternative Action. in the event it shall become
impossible for the Company or the Plan Administrator to perform any act required by this Agreement, the Company or Plan Administrator
may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is
in the best interests of the Company, provided that such alternative acts do not violate Section 409A of the Code.

 

		9.11	Headings. Article and section headings are for
convenient reference only and shall not control or affect the meaning or construction of any of its provisions.

 

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

 

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

 

	 	Community Bank of Tri-County	 
	 	P.O. Box 38	 
	 	Waldorf, MD 20601	 

 

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

 

    	 	14	 

     

    

 

	COMMUNITY BANK OF TRI-COUNTY 
	Salary Continuation Agreement

 

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

 

		9.14	Compliance
                                         with Section 409A. This Agreement shall at all times be administered and the provisions
                                         of this Agreement shall be interpreted consistent with the requirements of Section 409A
                                         of the Code and any and all regulations thereunder, including such regulations as may
                                         be promulgated after the Effective Date of this Agreement.

 

IN WITNESS WHEREOF, the Executive and a duly
authorized representative of the Company have signed this Agreement.

 

	EXECUTIVE:	 	COMPANY	 
	 	 	 	 
	 	 	COMMUNITY BANK OF TRI-COUNTY
	 	 	 	 
	/s/ James Muldowney Burke	 	By	/s/ Michael L. Middleton	 
	James Muldowney Burke	 	Title	President	 

 

 

    	 	15	 

     

    

 

	Community
    Bank of Tri-county 
	Salary Continuation Agreement

 

FIRST
AMENDMENT 

TO THE 

COMMUNITY BANK OF TRI-COUNTY 

SALARY CONTINUATION AGREEMENT 

DATED AUGUST 21, 2006 

FOR 

JAMES MULDOWNEY BURKE

 

THIS FIRST AMENDMENT is adopted this 13th
day of April, 2007, by and between Community Bank of Tri-County, a state-chartered commercial
bank located in Waldorf, Maryland (the “Company”) and James Muldowney Burke (the “Executive”).

 

The Company and the Executive executed
the Salary Continuation Agreement on August 21, 2006 effective January 1, 2006 (the “Agreement”).

 

The undersigned hereby amend the Agreement
for the purpose of changing the Disability and Change in Control benefit amounts. Therefore, the following changes shall be made:

 

Section 2.3.1 of the Agreement
shall be deleted in its entirety and replaced with the following:

 

		2.3.1	Amount of Benefit. The benefit under this Section
2.3 is the Disability Benefit set forth on Schedule A for the Plan Year ending prior to Separation from Service.

 

Section 2.4.1 of the Agreement
shall be deleted in its entirety and replaced with the following:

 

		2.4.1	Amount of Benefit. The benefit under this Section
2.4 is the Change in Control Benefit set forth on Schedule A for the Plan Year ending prior to Separation from Service.

 

Section 2.4.2 of the Agreement
shall be deleted in its entirety and replaced with the following:

 

		2.4.2	Distribution
                                         of Benefit. The Company shall distribute the benefit to the Executive in one hundred
                                         eighty (180) consecutive monthly installments commencing the first day of the month following
                                         Separation from Service.

 

Section 2.7 of the Agreement shall be deleted
in its entirety and replaced with the following:

 

		2.7	Change in Form
                                         or Timing of Distributions. For distribution of benefits under this Article 2, the
                                         Executive and the Company may, subject to the terms of Section 8.1, amend the Agreement
                                         to delay the timing or change the form of distributions. Any such amendment:

 

    	 	1	 

     

    

 

	Community
    Bank of Tri-county 
	Salary Continuation Agreement

 

		(a)	may not accelerate the time or schedule of any distribution, except as provided in Section 409A of the Code and the regulations
thereunder;

 

		(b)	must, for benefits distributable under Sections 2.2 and 2.3, be made at least twelve (12) months prior to the first scheduled
distribution;

 

		(c)	must, for benefits distributable under Sections 2.1, 2.2, 2.3 and 2.4, delay the commencement of
distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; and

 

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

 

IN WITNESS OF THE ABOVE,
the Company and the Executive hereby consent to this First Amendment.

 

	EXECUTIVE:	 	COMMUNITY BANK OF TRI-COUNTY
	 	 	 	 
	/s/ James Muldowney Burke	 	By	/s/ William J. Pasenelli
	James Muldowney Burke	 	Title	CFO
    & EVP              

 

    	 	2	 

     

    

 

	Community
    Bank of Tri-county 
	Salary Continuation Agreement

 

SECOND AMENDMENT 

TO THE 

COMMUNITY BANK OF TRI-COUNTY 

SALARY CONTINUATION AGREEMENT 

DATED AUGUST 21, 2006 

AND AMENDED APRIL 13, 2007 

FOR 

JAMES MULDOWNEY BURKE

 

THIS SECOND
AMENDMENT is adopted this 30th day of December, 2007, by and between Community Bank of Tri-County, a state-chartered
commercial bank located in Waldorf, Maryland (the “Company”) and James Muldowney Burke (the “Executive”).

 

The Company and the Executive executed
the Salary Continuation Agreement on August 21, 2006 effective January 1, 2006 a First Amendment on April 13, 2007 (the “Agreement”).

 

The undersigned
hereby amend the Agreement for the purpose of changing the Change in Control definition, increasing the Normal Retirement Benefit
and updating the plan termination provision. Therefore, the following changes shall be made:

 

Section 1.4 of the Agreement shall be deleted
in its entirety and replaced with the following:

 

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

 

Section 2_1_1 of the Agreement shall be
deleted in its entirety and replaced with the following:

 

		2.1.1	Amount of
                                         Benefit. The annual benefit under this Section 2.1 is One Hundred Thousand Dollars
                                         ($101,000) for a period of fifteen (15) years resulting in a total benefit of One Million
                                         Five Hundred Thousand Fifteen Dollars ($1,515,000). The Company’s Board of Directors,
                                         in its sole discretion, through duly adopted resolution, may increase the annual benefit
                                         under this Section prior to the Executive’s Separation from Service.

 

Section 8.3 of the Agreement shall be deleted
in its entirety and replaced with the following:

 

		8.3	Plan Terminations
                                         Under Section 409A. Notwithstanding anything to the contrary in Section 8.2, if the
                                         Company terminates this Agreement in the following circumstances:

 

		(a)	Within thirty (30) days before, or twelve (12) months after a Change
in Control, provided that all distributions are made no later than twelve (12) months following such termination of the Agreement
and further provided that all the  Company’s arrangements which are substantially
similar to the Agreement are terminated so the Executive and all participants in the similar arrangements are required to receive
all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the termination of the arrangements;

 

    	 	1	 

     

    

 

	Community
    Bank of Tri-county 
	Salary Continuation Agreement

 

		(b)	Upon the Company’s dissolution or with the approval of a bankruptcy court provided that the
amounts deferred under the Agreement are included in the Executive’s gross income in the latest of (i) the calendar year
in which the Agreement terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture;
or (iii) the first calendar year in which the distribution is administratively practical; or

		(c)	Upon the Company’s termination of this and all other arrangements that would be aggregated
with this Agreement pursuant to Treasury Regulations Section 1.409A-1(c) if the Executive participated in such arrangements (“Similar
Arrangements”), provided that (i) the termination and liquidation does not occur proximate to a downturn in the financial
health of the Company, (ii) all termination distributions are made no earlier than twelve (12) months and no later than twenty-four
(24) months following such termination, and (iii) the Company does not adopt any new arrangement that would be a Similar Arrangement
for a minimum of three (3) years following the date the Company takes all necessary action to irrevocably terminate and liquidate
the Agreement;

 

The Company may distribute
the amount which the Company has accrued with respect to the Company’s obligations hereunder, determined as of the date
of the termination of the Agreement, to the Executive in a lump sum subject to the above terms.

 

Schedule A shall be deleted and replaced with the attached
Schedule A.

 

IN WITNESS OF THE ABOVE, the
Company and the Executive hereby consent to this Second Amendment.

 

 

	Executive:	 	Community Bank of-County 
	 	 	 	 
	 	 	 	 
	/s/ James Muldowney Burke	 	By	/s/ Michael L. Middleton	 
	James Muldowney Burke	 	Title	President	 

 

 

    	 	2

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