Document:

Exhibit 10.1

 

 

September 27, 2019

  

 

Ms. Holly Hicks

 

Re:         Employment with
Dynasil Corporation of America

 

Dear Ms. Hicks:

 

It is with great pleasure that I write
to confirm the terms under which you will be promoted and continue to be employed with Dynasil Corporation of America (the “Company”).
We look forward to your continued leadership in your new role. The principal terms of your employment are set forth in this letter
(“Letter”).

 

		1.	Start Date. Your promotion will become effective on October 1, 2019.

 

		2.	Title; Duties. You will hold the title of Vice President, Chief Financial Officer of the
Company. You will perform such duties as are inherent in such position and such other duties as may be assigned by the Company
from time to time. You will be subject to the direction and supervision of the Chief Executive Officer. You agree to serve the
Company diligently and faithfully so as to advance the Company’s best interests and agree to not take any action in conflict
with the Company’s best interests.

 

		3.	At-Will Employment. At all times, your employment with the Company will be at-will employment
which may be terminated by you or the Company at any time, with or without Cause and with or without advance notice. Upon any such
termination, except as set forth in Section 5 of this Letter, the Company will have no liability or obligation to make any payment
or provide any benefits to you (including, without limitation, any salary or bonus payments or benefits described in Section 4)
or to your executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through you,
except those required by law. Your at-will employment may be modified only in writing as detailed in a duly-adopted Board resolution.

 

		4.	Compensation; Benefits.

 

     

     

    

 

		(a)	Base Salary. You will receive a base salary during your employment at rate of $15,416.66
per month (which is equivalent to $185,000 on an annualized basis), payable in accordance with the Company’s usual payment
practices and subject to periodic review and, in its sole discretion, adjustment by the Company.

 

		(b)	Annual Bonus. In each fiscal year during your employment beginning with fiscal year 2020,
you will be eligible to earn an annual cash performance bonus of up to thirty (30%) percent of your then current Base Salary (“Target
Bonus”) under terms and conditions to be determined by the Chief Executive Officer in discussions with you and approved by
the Compensation Committee of the Board. The award of any annual bonus will be in the Company’s sole discretion. The annual
bonus, if any, will be payable after receipt of the Company's audited financial statements for such fiscal year.

 

		(c)	Equity. You will be granted a time-vested restricted stock award of 35,000 shares (“Time-Based
Grant”) of the Company’s common stock, $0.0005 par value (“Common Stock”). The Time-Based Grant will be
made at no cost to you though you shall be responsible for payment of taxes on the fair market value of the shares. The Time-Based
Grant will vest in on October 1, 2022. These share will be eligible for an 83-B election should you choose to avail yourself of
that election.

 

Further terms
and conditions, if any, to be determined by the Board.

 

		(d)	Benefits. During your employment, you will be eligible to participate in all employee benefit
plans and perquisite plans and policies (including fringe benefits, 401(k) plan participation, life, health, dental, accident and
short and long term disability insurance) which the Company may, in its sole discretion, make available to its similarly-situated
employees, whether such benefits are now in effect or hereafter adopted, subject to the terms and conditions of each such plan
or policy. Subject to applicable law, the Company may alter, modify, add to or delete its employee benefit plans and its perquisite
plans and policies at any time as it, in its sole judgment, determines to be appropriate, without recourse by you.

 

		(e)	Vacation. You will receive twenty (20) days of paid vacation time per calendar year during
your employment (pro-rated for partial years), which will accrue and may be used according to Company policy as in effect from
time to time. Notwithstanding the terms of any Company policy to the contrary, your unused vacation time will not carry over from
one calendar year to the next.

 

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		(f)	Reimbursement for Expenses. You will receive reimbursement from the Company for expenses
that you reasonably incur on behalf of the Company in accordance with the Company’s normal policies with respect to expense
reimbursements. Notwithstanding the foregoing, it is agreed that the company will pay or reimburse your mobile phone up to the
level of $100 per month.

 

		(g)	Deductions and Withholdings. Notwithstanding any other provision of this Letter, any payments
or benefits from the Company to you will be subject to the withholding of such amounts, if any, relating to tax and other payroll
deductions, as the Company reasonably determines it should withhold pursuant to any applicable law or regulation.

 

		5.	Severance.

 

Severance
Package. If the Company terminates your employment without Cause (as defined in this Section), and provided that you first
deliver to the Company an irrevocable separation agreement in a form and of a scope reasonably acceptable to the Company (which
will include a general release of claims among other terms) within sixty (60) days of the effective date of your separation, the
Company will provide you with a severance payment (the “Severance Payment”) in the gross amount of six months of your
then Base Salary, paid in substantially equal installments over a period of 6 months according to the Company’s regular payroll
schedule, beginning 60 days after the separation.

 

As an additional
condition of the Severance Package, you agree to make yourself reasonably available to answer questions by telephone during the
period from the separation date through the end of any period in which you are receiving the Severance Payment.

 

		(a)	Cause Definition.

 

		(i)	For purposes of this Letter, “Cause” means any of the following:

 

		(A)	You materially breach any duty or obligation owed to the Company, under this Letter or the Dynasil
Confidential Information and Invention Assignment Agreement, or the rules and regulations of the Company and such violation, if
susceptible to cure in the Company’s reasonable judgment, is not cured to the Company’s reasonable satisfaction within
fifteen (15) days after written notice thereof is provided to you;

 

    	 	3	 

     

    

 

		(B)	You refuse or are unwilling to perform any of the duties assigned by the Company in good faith,
after a written request from the Company to do so, and such refusal or unwillingness, if susceptible to cure in the Company’s
reasonable judgment, is not cured to the Company’s reasonable satisfaction within fifteen (15) days after written notice
thereof is provided to you;

 

		(C)	You are convicted by a court of competent jurisdiction of, or plead guilty or nolo contendere
to, any felony or any crime involving moral turpitude;

 

		(D)	You engage in conduct that would tend to bring public disrespect, contempt or ridicule to the Company,
as reasonably determined in good faith by the Company) and such conduct, if susceptible to cure in the Company’s reasonable
judgment, is not cured to the Company’s reasonable satisfaction within fifteen (15) days after written notice thereof is
provided to you; or you are repeatedly absent from work (excluding vacations, illnesses, disability leaves, or other leaves of
absence approved by the Company) and such absence is not corrected within fifteen (15) days after written notice thereof is provided
to you;

 

		6.	Death or Disability. If you die or become totally and permanently disabled during the term
of employment, the parties agree that the employment relationship and this Letter will terminate automatically. "Total disability"
means your inability, resulting from sickness, disease, injury or physical or mental illness, to perform in all material respects
all of the services pertaining to your employment under this Letter, with or without reasonable accommodation. Such total disability
will be deemed "permanent" if you have not recovered and returned to render the full services of his employment hereunder
within six (6) months of becoming totally disabled. You will not be eligible for any Severance Payment if your employment is terminated
under this paragraph.

 

    	 	4	 

     

    

 

		7.	Section 409A. The intent of the parties is that payments and benefits under this Agreement
comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code
Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance
therewith. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall
be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to
you and the Company of the applicable provision without violating the provisions of Code Section 409A.  A termination of employment
shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or
benefits upon or following a termination of employment unless such termination is also a “separation from service”
within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean “separation from service.” If you are deemed on the
date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B),
then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A
payable on account of a “separation from service,” such payment or benefit shall be made or provided at the date which
is the earlier of (A) the expiration of the six (6)-month period measured from the date of your “separation from service,”
and (B) the date of your death, to the extent required under Code Section 409A. Upon the expiration of the foregoing delay period,
all payments and benefits delayed pursuant to this subsection (whether they would have otherwise been payable in a single sum or
in installments in the absence of such delay) shall be paid or reimbursed to you in a lump sum, and any remaining payments and
benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 
For purposes of Code Section 409A, your right to receive any installment payments pursuant to this Agreement shall be treated as
a right to receive a series of separate and distinct payments.

 

		8.	Confidential Information and Invention Assignment Letter. As a condition of your employment,
you will sign, and be bound by, the “Dynasil Confidential Information and Invention Assignment Letter,” a copy of which
is enclosed with this Letter.

 

    	 	5	 

     

    

 

		9.	Return of Company Property. You agree that upon
the termination or cessation of your employment with the Company for any reason (whether initiated by you or by the Company),
or at any other time upon the Company’s request, you will immediately return to the Company all Company property of any
kind then in your possession or under your control, including, without limitation, the originals and all copies of any and all
documents, files or records (including computer data, disks, programs, or printouts) that contain any non-public information that
in any way relates to the Company, any of its subsidiaries or affiliates, any of their products or services, clients, suppliers
or other aspects of any of their business(es) or prospects, all other notes, drawings, lists, memoranda, magnetic disks or tapes,
other recording media, reports, files, memoranda, software, credit cards, door and file keys, telephones, PDAs, computers, computer
access codes, instructional manuals, and any other physical property that you received, prepared, or helped prepare in connection
with your employment. You further agree to not retain any copies, summaries or excerpts of any such property in any format, whether
hardcopy, electronic or otherwise. To the extent that you have Company property stored on any home computer(s) or other personal
storage device(s), you agree to forward a copy of any such property to a designated Company official and then irretrievably delete
all such property from your personal home computer(s) and any other personal electronic device(s) at the same time that you return
all tangible property to the Company.

 

		10.	Notices. Any notice hereunder by either Party
to the other will be given in writing by personal delivery, telex, facsimile, overnight courier or certified mail, return receipt
requested, addressed, if to the Company, to the attention of the Chief Executive Officer (or such other person as the Company
may designate) at Dynasil Corporation of America, 313 Washington Street Newton, MA 02458 or to such other address as the Company
may designate in writing at any time or from time to time to you, and if to you, to your most recent address on file with the
Company. Notice will be deemed given, if by personal delivery or by overnight courier, on the date of such delivery or, if by
telex or facsimile, on the business day following receipt of answer back or facsimile information or, if by certified mail, on
the date shown on the applicable return receipt.

 

		11.	Continuing Obligations. Your obligations under Sections 8 through 10 of this Letter, inclusive,
will survive any change in your employment status with the Company, by promotion or otherwise, and the termination or cessation
of your employment with Company for any reason. The Company’s obligations under this Letter will be binding on successors
to the Company.

 

		12.	Severability. If any arbitrator, agency, tribunal or court of competent jurisdiction finds
any provision or part of this Letter to be excessively broad, in whole or in part, such provision will be deemed and construed
to be reduced to the maximum duration, scope or subject matter allowable under applicable law. If any provision or part of this
Letter is declared illegal or unenforceable by any arbitrator, tribunal or court of competent jurisdiction even after the reformation
and construction as provided in the previous sentence, then the remainder of this Letter, or the application of such provision
or part in circumstances other than those as to which it is so declared illegal or unenforceable, will not be affected thereby,
and each provision and part of this Letter will be valid and enforceable to the fullest extent permitted by law.

 

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		13.	Governing Law. This Letter will be governed by, construed and enforced in accordance with,
the laws of Massachusetts, without regard to conflict of laws principles.

 

		14.	Counterparts. This Letter may be executed in any number of counterparts, any one of which
will constitute an original of this Letter, provided that this Letter will not become effective until each party has executed at
least one counterpart. The parties agree that signatures on separate counterparts may be transferred to a single document upon
the request of any party. For the convenience of the parties, facsimile, pdf or other electronic signatures will be accepted as
originals.

 

If the terms of this Agreement are acceptable
to you, please sign the enclosed copy of this letter where indicated and return to me. Once again, the Company is grateful for
your willingness to undertake these duties and I look forward to working with you.

 

Sincere congratulations on a well-deserved
promotion.

 

  

______________________________

Peter Sulick

Chairman, Chief Executive Officer

 

AGREED AND ACCEPTED:

 

 

______________________________

Holly A. Hicks

 

    	 	7EXHIBIT 10.2

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made by CHOICEONE FINANCIAL SERVICES, INC., a Michigan corporation (the “Corporation”),
and KELLY J. POTES (“Executive”). The parties agree as follows.

WHEREAS, the Board
of Directors of the Corporation believes that the future services of Executive as provided in this Agreement will be of significant
value to the Corporation; and

WHEREAS, the Corporation
will own and operate two wholly owned subsidiaries, ChoiceOne Bank and Lakestone Bank & Trust (“Banks”), which
are engaged in the general business of banking; and

WHEREAS, the Board
of Directors of the Corporation has determined that it is in the best interests of the Corporation, its shareholders and the Banks
to secure Executive’s continued services and to ensure Executive’s continued dedication and objectivity in the event
of any potential or occurrence of, or negotiation or other action that could lead to, or create the possibility of, a Change in
Control (as hereafter defined) of the Corporation, without concern as to whether Executive might be hindered or distracted by personal
uncertainties and risks created by any such possible Change in Control, and to encourage Executive’s full attention and dedication
to the Corporation and the Banks, the Board of Directors has authorized the Corporation to enter into this Agreement; and

WHEREAS, Executive
is willing to serve in the employ of the Corporation and the Banks on a full-time basis as an at-will employee as provided in this
Agreement.

NOW, THEREFORE, the
parties agree as follows.

1.        Effective
Date and Term. This Agreement will take effect as of the Effective Time of the Corporation’s acquisition of County Bank
Corp. (“County”), as defined in the Agreement and Plan of Merger dated as of March 22, 2019, between the Corporation
and County (the “Merger Agreement”) (“Effective Date”). If the merger of the Corporation and County does
not close, this Agreement shall be null and void. The initial term of this Agreement shall be three years, and, beginning on the
first anniversary of the Effective Date, the term shall automatically be extended by another year on each anniversary of the Effective
Date unless either party gives the other notice (as provided in Section 15) of intention to terminate this Agreement at least thirty
(30) days before an anniversary of the Effective Date, in which case this Agreement shall terminate at the end of the then-current
term without any further extension; provided, however, that:

(a)        except
for termination as provided above pursuant to notice from Executive to the Corporation, this Agreement will not terminate during
an “Active Change in Control Proposal Period” (as defined in Section 10), even if the Corporation has given Executive
notice of intention to terminate this Agreement;

(b)        except
for termination as provided above pursuant to notice from Executive to the Corporation, upon the occurrence of a “Change
in Control” (as defined in Section 

    	 		 

     

    

9), the term of this Agreement shall automatically be extended until the third anniversary
of the effective date of the Change in Control, even if the Corporation has given notice of intention to terminate this Agreement;
and

(c)        termination
of this Agreement shall not affect the obligations of either party accrued before termination of this Agreement, including Executive’s
obligations under Sections 11, 12 and 13.

2.        Employment.
Executive will serve as: (A) Chief Executive Officer of the Corporation (the “principal position”); and (B) in such
positions with Affiliates (defined for purposes of this Agreement as any organizations controlling, controlled by or under common
control with the Corporation) as reasonably requested by the Corporation, provided that the duties of such positions are consistent
with Executive’s responsibilities in Executive’s principal position (together, the “Employment”). As used
in this Agreement, the term “Corporation” includes the Banks, unless the context clearly requires otherwise.

Executive will serve
the Corporation and the Banks well and faithfully during the Employment and will devote Executive’s best reasonable full
time business efforts to the Employment, except that Executive may engage in civic and professional activities, service on boards
of directors, and similar activities as long as such activities do not constitute a conflict of interest or impair Executive’s
performance of the duties of the Employment. The Employment may be terminated during the term of this Agreement as provided in
Sections 4 and 5.

3.        Compensation.
Executive will be compensated during the Employment as follows:

(a)       Salary.
Executive’s annual salary (“Salary”) will be $360,000.00 for 2019 and 2020, prorated for any partial year, subject
to required payroll deductions and payable in weekly, bi-weekly or semi-monthly installments pursuant to the Corporation’s
normal payroll practices. Such Salary shall be subject to review annually commencing in 2021 and will be subject to adjustment
pursuant to the Corporation’s normal procedures.

(b)       Bonus.
Executive will participate in any bonus programs for senior executives of the Corporation or the Banks, at a level commensurate
with Executive’s principal position, subject to the terms and conditions of the applicable bonus program. Such bonus amount
shall be subject to review annually and will be subject to adjustment pursuant to the Corporation’s normal procedures.

(c)       Equity
Plans. Executive will participate in any equity based compensation programs (“Equity Plans”) offered by the Corporation,
at a level commensurate with Executive’s principal position, subject to the terms and conditions of the Equity Plans. Awards
under the Equity Plans shall be determined periodically pursuant to the Corporation’s normal procedures.

(d)        Fringe
Benefits. Executive will participate in health and dental, life insurance, short and long term disability insurance, retirement,
and other employee fringe benefit programs covering the Corporation’s salaried employees as a group, and in any programs
applicable to senior executives of the Corporation or the Banks. The terms of 

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applicable insurance policies and benefit plans
in effect from time to time will govern with regard to specific issues of coverage and benefit eligibility. All benefit programs
are subject to change from time to time in the Corporation’s discretion, except that Executive will receive an annual car
allowance of $15,000, prorated for any partial year, paid in weekly, bi-weekly or semi-monthly installments pursuant to the Corporation’s
normal payroll practices, or Executive can receive standard IRS mileage reimbursement for business travel.

(e)        Paid
Time Off. Executive will be entitled to the greater of (i) the number of days of paid time off applicable to senior executives
of the Corporation per calendar year, or (ii) 30 days of paid time off per calendar year.

(f)       Business
Expenses. The Corporation will reimburse Executive for reasonable ordinary and necessary business expenses incurred in the
course of the Employment, for fees and expenses of Executive’s attendance in the course of the Employment at banking related
conventions and similar events, for reasonable professional association and seminar expenses, and for any additional expenses authorized
by the Corporation, subject to Executive’s submission of proper documentation for tax and accounting purposes. Reimbursement
under this section will be paid within thirty (30) days after Executive submits documentation as provided by this section, provided
that payments may not be made after March 15 of the calendar year following the calendar year in which the expenses were incurred.

4.       Termination
of the Employment Without Severance Pay. Executive shall not be entitled to any further compensation from the Corporation or
any Affiliate after termination of the Employment as permitted by this Section 4, except (A) unpaid Salary installments through
the Employment termination date, (B) any vested benefits accrued as of the date of termination of the Employment under the terms
of any written Corporation or Bank employment, compensation or benefit program; and (C) any rights of Executive to indemnification
under the provisions of the Articles of Incorporation or Bylaws of the Corporation or the Banks or any indemnification agreement
entered into between Executive and the Corporation or any Affiliate (together, the “Vested Rights”).

(a)        Death.
The Employment will terminate automatically upon Executive’s death.

(b)        Disability.
The Corporation may terminate the Employment due to Executive’s “Disability”, defined as Executive being determined
to be “disabled” pursuant to the Corporation’s long-term disability insurance policy as in effect from time to
time and without regard to whether Executive is a participant in such long-term disability policy. The Corporation may give Executive
notice of its intention to terminate the Employment due to Disability. It is understood that the Corporation has the right to terminate
the Employment due to Executive’s Disability without meeting the standards in this Section 4(b), but in that event the termination
shall be deemed to be a termination of the Employment pursuant to Section 5(a).

    	 	-3-	 

     

    

(c)        Termination
by Corporation for Cause. The Corporation may terminate the Employment for “Cause”, defined as Executive’s:
(i) breach of any material term of this Agreement including, but not limited to, the terms in Sections 11, 12 and 13; (ii) continued
failure to perform Executive’s duties; (iii) gross negligence causing or placing the Corporation at risk of significant damage
or harm; (iv) misappropriation of or intentional damage to Corporation property; (v) material fraud or dishonesty; (vi) conviction
of or pleading guilty or no contest to a felony; or (vii) intentional act or omission that Executive knows or should know is significantly
detrimental to the interests of the Corporation. If the Corporation becomes aware after termination of the Employment other than
for Cause that Executive engaged before the termination of Employment in conduct constituting Cause, the Corporation may recharacterize
Executive’s termination as having been for Cause.

The Corporation
may not terminate the Employment for “Cause” under (i) or (ii) above unless:

A.       the
Chairman of the Board of Directors notifies the Executive in writing, within sixty (60) days after the Board of Directors has concluded
after conducting any applicable investigation that an act or omission constitutes Cause and explaining why the Board of Directors
considers it to constitute Cause;

B.       the
Executive fails, within thirty (30) days after notice from the Chairman under A. above, to revoke the action or correct the omission
and make the Corporation whole; and

C.       the
Chairman gives notice of termination within thirty (30) days after expiration of the thirty (30)-day period under B. above.

The Corporation
may not terminate the Employment for “Cause” under (iii)-(vii) above unless the Employment is terminated within sixty
(60) days after the Board of Directors concludes after conducting any applicable investigation that an act or omission constitutes
Cause and the Chairman gives Executive written notice of the act or omission that the Board of Directors has concluded constitutes
Cause before or no later than thirty (30) days after termination.

(d)        Discretionary
Termination by Executive. Executive may terminate the Employment at will, with at least thirty (30) days' advance notice. If
Executive gives such notice of termination, the Corporation may (but need not) relieve Executive of some or all of Executive’s
offices and responsibilities for part or all of such notice period, provided that Executive’s Salary and benefits are continued
for the lesser of thirty (30) days or the remaining period of the Employment.

(e)        Termination
of Employment after Termination of This Agreement. If Executive continues to be employed by the Corporation or the Banks after
termination of this Agreement as provided in Section 1, Executive’s employment shall be terminable by either party at will
without any Severance Pay.

    	 	-4-	 

     

    

5.        Termination
With Severance Pay. Executive shall not be entitled to any further compensation from the Corporation or any Affiliate after
termination of the Employment as permitted by this Section 5, except (A) Vested Rights; and (B) Severance Pay under Section 6 or
the Change in Control Severance under Section 7, whichever is applicable.

(a)        Discretionary
Termination by Corporation. The Corporation may terminate the Employment during the term of this Agreement at will, with at
least thirty (30) days advance notice to Executive. Any termination of Executive’s Employment by the Corporation under Section
4 that is found not to meet the standards of such Section will be considered to have been a termination under this Section 5(a).

(b)       Termination
by Executive for Good Reason. Executive may terminate the Employment during the term of this Agreement for “Good Reason”
if there is a material negative change to the employment relationship between Executive and the Corporation because: (i) Executive
is demoted from any of Executive’s principal positions; (ii) the status, authority or responsibility of Executive’s
principal positions is materially diminished; (iii) Executive’s Salary as then in effect is materially reduced without a
corresponding reduction in the salaries of the Corporation and Banks’ other executives; (iv) the Corporation requires Executive
be based in a facility that is more than sixty (60) miles from the facility where Executive is located immediately prior to the
relocation; or (v) any material breach by the Corporation or the Banks, or any successor, of its obligations to Executive under
this Agreement.

Executive
may not terminate the employment for “Good Reason” unless:

A.       Executive
notifies the Chairman of the Corporation’s Board of Directors in writing, within sixty (60) days after Executive becomes
aware of the act or omission constituting Good Reason, that the act or omission in question constitutes Good Reason and explaining
why Executive considers it to constitute Good Reason;

B.       the
Corporation fails, within thirty (30) days after notice from Executive under A. above, to revoke the action or correct the omission
and make Executive whole; and

C.       Executive
gives notice of termination within thirty (30) days after expiration of the thirty (30)-day period under B. above.

6.       Severance
Pay.  The Corporation will pay and provide Executive with the payments and benefit continuation provided in this Section 6
(“Severance Pay”) if Executive’s Employment is terminated during the term of this Agreement as provided in Section
5 in a manner that constitutes a “separation from service” as that term is defined by Section 409A of the Internal
Revenue Code of 1986 (the “Code”) and Executive is not entitled to the Change in Control Severance under Section 7.
If Executive becomes entitled to Severance Pay under this Section 6, and subsequently becomes entitled to the Change in Control
Severance under Section 7, the amount of the lump sum Cash Payment under Section 7(a) shall be reduced by the amount of 

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Severance
Pay already received by Executive under this Section 6, and no further Severance Pay will be payable under this Section 6.

(a)       Amount
and Duration of Severance Pay. Subject to the other provisions of this Section, Severance Pay will consist of (i) continued
payment of Executive’s then-current Salary (disregarding any reduction in Salary that constitutes Good Reason) for one hundred
and four (104) weeks following the week in which the Employment terminates (the “Severance Pay Period”) pursuant to
the Corporation’s normal payroll process, subject to required payroll withholding; and (ii) a monthly payment equal to the
monthly cost of health care continuation under the Corporation’s health plan based on the coverage (e.g., individual or family)
in place for Executive immediately prior to the termination of his employment, until the earlier of (y) twelve (12) months after
termination or (z) the date Executive has commenced new employment and has thereby become eligible for comparable benefits, subject
to Executive's rights under COBRA.

Executive will receive the Severance
Pay provided in Section 6(a) notwithstanding any other earnings that Executive may have, and subject to offset only as provided
in Section 6(c). If Executive dies during the Severance Pay Period, the Severance Pay under Section 6(a) will continue for the
remainder of the Severance Pay Period for the benefit of Executive’s designated beneficiary (or Executive’s estate
if Executive fails to designate a beneficiary).

(b)        Conditions
to Severance Pay. To be eligible for Severance Pay, Executive must meet the following conditions: (i) Executive must comply
with Executive’s obligations under this Agreement that continue after termination of the Employment; (ii) Executive must
promptly sign and continue to honor a release, in form acceptable to the Corporation, of any and all claims arising out of or
relating to Executive’s Employment or its termination and that Executive might otherwise have against the Corporation, the
Corporation’s Affiliates, or any of their officers, directors, employees and agents, provided that the release will not
waive Executive’s right to claims or rights related to (A) Severance Pay due under this Agreement; (B) unpaid salary through
the employment termination date; (C) unpaid expense reimbursements for authorized business expenses incurred before the employment
termination date; (D) any Equity Plan benefits; (E) benefit plans (for example to convert life insurance); (F) any rights under
the terms of any qualified retirement plan covering Executive; and (G) rights of indemnification under the Corporation’s
Articles of Incorporation or Bylaws or any indemnification agreement entered into between Executive and the Corporation or any
Affiliate (in addition, the release does not affect Executive’s right to cooperate in an investigation by the Equal Employment
Opportunity Commission); and (iii) Executive must resign upon written request by Corporation from all positions with or representing
the Corporation or any Affiliate, including but not limited to, membership on boards of directors; and (iv) Executive must provide
the Corporation for a period of six (6) months after the Employment termination date with consulting services regarding matters
within the scope of Executive’s former duties upon request by the Corporation’s Chief Executive Officer; provided,
however, that Executive will only be required to provide those services by telephone at Executive’s reasonable convenience
and without substantial interference with Executive’s other activities or commitments and the amount 

    	 	-6-	 

     

    

of consulting services
will be limited to ensure Executive’s termination of employment qualifies as a separation from service under Section 409A
of the Code.

(c)        Reductions
to Severance Pay. The Severance Pay due to Executive under Section 6(a)(i) for any week will be reduced (but not below zero)
by: (i) any disability benefits to which Executive is entitled for that week under any disability insurance policy or program of
the Corporation or any Affiliate (including but not limited to worker’s disability compensation); (ii) any severance pay
payable to Executive under any other agreement or Corporation policy; (iii) any payment due to Executive under the Federal Worker
Adjustment and Retraining Notification Act or any comparable state statute or local ordinance; and (iv) up to $5,000.00 of expenses
owed by Executive to the Corporation from debt incurred in the ordinary course of the service relationship.

(d)       Delay
in Payment to a Specified Employee. Notwithstanding any other timing provision in this Section 6, if, at the time any payment
that is not exempt from Section 409A would commence due to a separation from service, and Executive is a “specified employee”
as that term is defined by Section 409A of the Code, then no such payment under this Agreement may be paid before the date that
is six (6) months after Executive’s separation from service (or, if earlier, the individual’s death). Payments that
are not exempt from Section 409A and that Executive would otherwise have been entitled during those six (6) months will be accumulated
and paid on the first payroll date after six (6) months following Executive’s separation from service (or, if earlier, the
individual’s death). All payments that are exempt from Section 409A, or that would otherwise be made more than six (6) months
following Executive’s separation from service, will be made in accordance with the general timing provisions described above.

7.       Change
in Control Severance. The Corporation will make the payments provided for in this Section 7 if Executive’s Employment
is terminated under Section 5 during the term of this Agreement in a manner that constitutes a “separation from service”
as that term is defined by Section 409A of the Code, and such termination of Employment occurs either (i) within three (3) years
after the date of a Change in Control or (ii) within six (6) months before the date of a Change in Control.

(a)        Amount
and Payment of Cash Payment. The Corporation will (i) make a cash payment (the “Cash Payment”) to Executive in
an amount equal to three times the Executive’s then-current Salary (disregarding any reduction in Salary that constitutes
Good Reason) ; and (ii) a monthly payment equal to the monthly cost of health care continuation under the Corporation’s health
plan based on the coverage (e.g., individual or family) in place for Executive immediately prior to the termination of his employment,
until the earlier of (y) twelve (12) months after termination or (z) the date Executive has commenced new employment and has thereby
become eligible for comparable benefits, subject to Executive's rights under COBRA. The Cash Payment in (i) above shall be paid
to Executive in a single lump sum in the first payroll occurring on or after the thirtieth (30th) business day after the date Executive’s
Employment terminates. If Executive dies after becoming entitled to the Cash Payment but before it has been paid in full, the Cash
Payment will be made to Executive’s designated beneficiary (or Executive’s estate if Executive fails to designate a
beneficiary).

    	 	-7-	 

     

    

(b)       Reductions
to Cash Payment. Executive will receive the Cash Payment notwithstanding any other earnings that Executive may have and without
offset of any kind except required payroll deductions.

8.       Parachute
Cap. The Corporation will act in good faith to mitigate the impact of Section 280G of the Code on any Parachute Payment to
Executive in connection with a Change in Control. If, after the parties have cooperated in good faith to mitigate the impact of
Section 280G of the Code, and notwithstanding anything in this Agreement to the contrary, any payment, benefit, or amount payable
or benefit to be provided to Executive, whether pursuant to this Agreement or otherwise, that is a “Parachute Payment”
as defined in Section 280G(b)(2) of the Internal Revenue Code (the “Code”), will be reduced to the extent necessary
so that the benefits payable or to be provided to Executive under this Agreement that are treated as Parachute Payments as well
as any payments or benefits provided outside of this Agreement that are so treated will not cause the Corporation or any Affiliate
to have paid an “Excess Parachute Payment” as defined in Section 280G(b)(1) of the Code. If it is established that
an “Excess Parachute Payment” has occurred or will occur under this Agreement or otherwise, any remaining Parachute
Payments to be made will be reduced to ensure that the total payments to Executive do not exceed 2.99 times Executive’s “base
amount” as defined in Section 280G(b)(3) of the Code. The lump sum cash severance payment under Section 7(a) will be reduced
to comply with this Section 8 only to the extent necessary to ensure that the total payments to Executive do not exceed 2.99 times
Executive’s “base amount” as defined in Section 280G(b)(3) of the Code. For the avoidance of doubt, in no circumstance
shall the Corporation or the Banks pay Executive a “gross up” or similar payment to mitigate the impact of Section
280G of the Code.

9.       Definition
of Change in Control. As used in this Agreement, the term “Change in Control” means any of the occurrences listed
in (a) below, subject to (b) below.

(a)        A
Change in Control means the occurrence of a change in the ownership of effective control of the Corporation or a change in the
ownership of a substantial portion of the assets of the Corporation as provided by Treasury Regulation § 1.409A-3(i)(5), which
includes the occurrence of any of the following events:

(i)       The
acquisition, by a person or persons acting as a group, of stock of the Corporation that together with stock held by such person
or group constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Corporation.

(ii)       The
majority of members of the Board of Directors of the Corporation are replaced during any twelve (12) month period by directors
whose appointment or election is not endorsed by a majority of the members of the Board of Directors prior to the date of appointment
or election.

(iii)       The
acquisition, by a person or persons acting as a group, of the Corporation’s assets that have a total gross fair market value
equal to or exceeding fifty percent (50%) of the total gross fair market value of the Corporation’s assets in a single transaction
or within a twelve (12) month period ending with the most recent acquisition. For the purpose of this section, gross fair market
value means 

    	 	-8-	 

     

    

the value of the assets of the Corporation, or the value of the assets being disposed of, determined without regard
to any liabilities associated with such assets.

The parties agree that the merger
between the Corporation and County pursuant to the Merger Agreement does not constitute a Change in Control under this Agreement
and does not trigger any payments that may otherwise be required by this Section and Executive waives any right to any payment
under this Agreement as a result of that merger.

(b)        Notwithstanding
the foregoing, no trust department or designated fiduciary or other trustee of such trust department of the Corporation or a subsidiary
of the Corporation, or other similar fiduciary capacity of the Corporation with direct voting control of the stock shall be treated
as a person or group within the meaning of subsection (a)(i) hereof. Further, no profit-sharing, employee stock ownership, employee
stock purchase and savings, employee pension, or other employee benefit plan of the Corporation or any of its subsidiaries, and
no trustee of any such plan in its capacity as such trustee, shall be treated as a person or group within the meaning of subsection
(a)(i) hereof.

10.        Definition
of “Active Change in Control Proposal Period”. As used in this Agreement the term “Active Change in Control
Proposal Period” shall mean any period:

(a)        during
which the Board of Directors of the Corporation has authorized solicitation by the Corporation of offers for a transaction which,
if consummated, would constitute a Change in Control; or

(b)        during
which the Corporation has received a proposal for a transaction which, if consummated, would constitute a Change in Control, and
the Board of Directors has not determined to reject such proposal without any counter-offer or further discussions; or

(c)        during
which any proxy solicitation or tender offer with regard to the securities of the Corporation is ongoing, if the intent of such
proxy solicitation or tender offer is to cause the Corporation to solicit offers for or enter into a transaction that would constitute
a Change in Control.

11.       Confidentiality,
Return of Property. Executive has obtained and may obtain confidential information concerning the business, operations, financial
affairs, organizational and personnel matters, policies, procedures and other non-public matters of Corporation and its Affiliates,
and those of third-parties that is not generally disclosed to persons not employed by Corporation or its subsidiaries. Such information
(referred to herein as the “Confidential Information”) may have been or may be provided in written form or orally.
Executive shall not disclose to any other person the Confidential Information at any time during or after termination of the Employment,
except that during the Employment Executive may use and disclose Confidential Information as reasonably required by the Employment.
Upon termination of the Employment, Executive will deliver to the Corporation any and all property owned or leased by the Corporation
or any Affiliate and any and all Confidential Information (in whatever form) including without limitation all customer lists and
information, financial information, business notes, business plans, documents, keys, credit cards and other Corporation-provided
equipment.

    	 	-9-	 

     

    

Executive’s commitments in this
Section will continue in effect after termination of the Employment and after termination of this Agreement. The parties agree
that any breach of Executive’s covenants in this Section would cause the Corporation irreparable harm, and that injunctive
relief would be appropriate.

12.       Inventions,
Discoveries and Improvements. Executive hereby agrees to assign and transfer to the Corporation, its successors and assigns,
Executive’s entire right, title and interest in and to any and all inventions, discoveries, trade secrets and improvements
thereto which he may discover to develop, either solely or jointly with others, during Executive’s employment hereunder and
for a period of one (1) year after termination of such employment, which would relate in any way to the business of the Corporation
or any Affiliate of the Corporation, together with all rights to letters patent, copyrights or trademarks which may be granted
with respect thereto. Immediately upon making or developing any invention, discovery, trade secret or improvement thereto, Executive
shall notify the Corporation thereof and shall execute and deliver to the Corporation, without further compensation, such documents
as may be necessary to assign and transfer to the Corporation Executive’s entire right, title and interest in and to such
invention, discovery, trade secret or improvement thereto, and to prepare or prosecute applications for letters patent with respect
to the same in the name of the Corporation. Executive’s obligations under this Section 12 shall continue in effect, as to
inventions, discoveries and improvements covered by this Section 12, notwithstanding any termination of the employment or this
Agreement. The parties agree that any breach of Executive’s covenants in this Section would cause the Corporation irreparable
harm, and that injunctive relief would be appropriate.

13.        Noncompetition
and Nonsolicitation.

(a)       In
view of Executive’s importance to the success of the Corporation, Executive and Corporation agree that the Corporation would
likely suffer significant harm from Executive’s competing with Corporation during the Employment and for some period of
time thereafter. Accordingly, Executive agrees that Executive shall not engage in competitive activities either: (A) while employed
by Corporation; or (B) if Executive’s Employment is terminated during the term of this Agreement, during the Restricted
Period (as defined below). Executive shall be deemed to engage in competitive activities if he shall, without the prior written
consent of the Corporation, (i) in any county in which the Corporation or any of its Affiliates has a branch office or loan production
office and all contiguous counties (including the municipalities therein), render services directly or indirectly, as an employee,
officer, director, consultant, advisor, partner or otherwise, for any organization or enterprise which competes directly or indirectly
with the business of Corporation or any of its Affiliates in providing financial products or services (including, without limitation,
banking, insurance, or securities products or services) to consumers and businesses, or (ii) directly or indirectly acquires any
financial or beneficial interest in (except as provided in the next sentence) any organization which conducts or is otherwise
engaged in a business or enterprise in any county in which the Corporation or any of its Affiliates has a branch office or loan
production office and all contiguous counties (including all municipalities therein) which competes directly or indirectly with
the business of Corporation or any of its Affiliates in providing financial products or services (including, without limitation,
banking, insurance or securities products or services) to consumers and businesses. Notwithstanding the preceding sentence, Executive
shall not be 

    	 	-10-	 

     

    

prohibited from owning less than 1 percent of any class of publicly traded securities of a competitor. For purposes
of this Section 13 the term “Restricted Period” shall equal twenty-four (24) months, commencing as of the date of
termination of Executive’s Employment during the term of this Agreement.

(b)        While
employed by Corporation and during the Restricted Period, Executive agrees that Executive shall not, in any manner directly (i)
solicit by mail, by telephone, by personal meeting, or by any other means, any customer or prospective customer of Corporation
to whom Executive provided services, or for whom Executive transacted business, or whose identity become known to Executive in
connection with Executive’s services to Corporation (including employment with or services to any predecessor or successor
entities), to transact business with a person or an entity other than the Corporation or its Affiliates or reduce or refrain from
doing any business with the Corporation or its Affiliates or (ii) interfere with or damage (or attempt to interfere with or damage)
any relationship between Corporation or any of its Affiliates and any such customer or prospective customer, or any shareholder
of the Corporation. The term “solicit” as used in this Section 13 means any communication of any kind whatsoever, inviting,
encouraging or requesting any person to take or refrain from taking any action with respect to the business of Corporation or any
of its Affiliates.

(c)       While
employed by Corporation and during the Restricted Period, Executive agrees that Executive shall not, in any manner directly solicit
any person who is an employee of Corporation or any of its Affiliates to apply for or accept employment or a business opportunity
with any other person or entity.

(d)      The
parties agree that nothing herein shall be construed to limit or negate the common law of torts or trade secrets where it provides
broader protection than that provided herein.

(e)       Executive’s
obligations under this Section shall survive termination of this Agreement.

(f)       The
parties agree that any breach of Executive’s covenants in this Section would cause the Corporation irreparable harm, and
that injunctive relief would be appropriate.

14.        Successors;
Binding Agreement.

(a)       This
Agreement shall not be terminated by any merger or consolidation of the Corporation whereby the Corporation is or is not the surviving
or resulting corporation or as a result of any transfer of all or substantially all of the assets of the Corporation. In the event
of any such merger, consolidation, or transfer of assets, the provisions of this Agreement shall be binding upon the surviving
or resulting corporation or the person or entity to which such assets are transferred.

(b)       The
Corporation agrees that concurrently with any merger, consolidation or transfer of assets constituting a Change in Control, it
will cause any successor or transferee unconditionally to assume, by written instrument delivered to Executive (or Executive’s

    	 	-11-	 

     

    

beneficiary or estate), all of the obligations of the Corporation hereunder. Failure of the Corporation to obtain such assumption
prior to the effective date of any Change in Control shall be a material breach of the Corporation’s obligations to Executive
under this Agreement.

(c)       This
Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If Executive shall die while any amounts would be payable to Executive
hereunder had Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person
is so appointed, to Executive’s estate.

15.       Notice.
For purposes of this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall
be deemed to have been duly given when delivered or received by facsimile transmission or five (5) days after deposit in the United
States mail, certified and return receipt requested, postage prepaid, addressed as follows:

	If to the Corporation:	ChoiceOne Financial Services, Inc.

Attn: Chairman

109 E. Division

Sparta, MI 49345
	 	 
	If to Executive:	Kelly J. Potes

____________________

____________________

 

Either party may change its address
for notices by notice to the other party.

16.       Amendment
and Waiver. No provisions of this Agreement may be amended, modified, waived or discharged unless the waiver, modification,
or discharge is authorized by the Corporation’s Board of Directors, or a committee of the Board of Directors, and is agreed
to in a writing signed by Executive and by the Chairman of the Board of Directors. No waiver by either party at any time of any
breach or non-performance of this Agreement by the other party shall be deemed a waiver of any prior or subsequent breach or non-performance.

17.        Severability.
The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other
provision of this Agreement, which will remain in full force and effect. If a court of competent jurisdiction ever determines that
any provision of this Agreement (including, but not limited to, all or any part of the non-competition covenant in this Agreement)
is unenforceable as written, the parties intend that the provision shall be deemed narrowed or revised in that jurisdiction (as
to geographic scope, duration, or any other matter) to the extent necessary to allow enforcement of the provision. The revision
shall thereafter govern in that jurisdiction, subject only to any allowable appeals of that court decision.

18.       Entire
Agreement. No agreements or representations, oral or otherwise, express or implied, with respect to Executive’s Employment
with the Corporation or any of the subjects 

    	 	-12-	 

     

    

covered by this Agreement have been made by either party that are not set forth expressly
in this Agreement, and this Agreement supersedes any pre-existing employment agreements and any other agreements on the subjects
covered by this Agreement, including the Change in Control Agreement between the parties dated May 13, 2016, which Executive agrees
terminates as of the Effective Time of the Merger.

19.        Governing
Law. The validity, interpretation, and construction of this Agreement are to be governed by Michigan laws, without regard to
choice of law rules. The parties agree that any judicial action involving a dispute arising under this Agreement will be filed,
heard and decided in the Kent County Circuit Court. The parties agree that they will subject themselves to the personal jurisdiction
and venue of either court, regardless of where Executive or the Corporation may be located at the time any action may be commenced.
The parties agree that the locations specified above are mutually convenient forums and that each of the parties conducts business
in Kent County.

20.       Section
409A. Payments under this Agreement are intended to comply with Section 409A of the Internal Revenue Code to the extent payments
under this Agreement are not otherwise exempt from Section 409A of the Internal Revenue Code as an involuntary separation pay plan
(as that term is understood under Treasury Regulation § 1.409A-1(b)(9)) or as providing for short-term deferrals (as that
term is understood under Treasury Regulation § 1.409A-1(b)(4)) and shall be interpreted and operated consistently with those
intentions. To the extent Section 409A is found to be applicable to this Agreement, this Agreement is to be interpreted to comply
with Section 409A and shall be interpreted and operated consistently with those intentions, including but not limited to, any applicable
six-month delay in payment if Executive is a specified employee of the Corporation. Each payment that the Executive may receive
under this Agreement shall be treated as a “separate payment” for purposes of Section 409A of the Code, to the extent
applicable.

21.        Counterparts.
This Agreement may be signed in original or by fax in counterparts, each of which shall be deemed an original, and together the
counterparts shall constitute one complete document.

Signature Page to Follow

    	 	-13-	 

     

    

The parties made this Agreement effective as of the Effective Date
in Section 1.

 

	 	CHOICEONE FINANCIAL SERVICES, INC.	 
	 	 	 
	 	 	 
	 	By	/s/ Paul L. Johnson	 
	 	 	Paul L. Johnson, Chairman	 

 

 

	 	EXECUTIVE	 
	 	 	 
	 	/s/ Kelly J. Potes	 
	 	Kelly J. Potes	 

 

 

 

 

 

 

 

 

[signature page to
Employment Agreement]

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