Document:

Exhibit 10.1

 

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (the “Agreement”)
is entered into as of May 22, 2019 (the “Effective Date”), by and between Community Bank (the “Bank”) and
Jamie L. Prah (“Executive”) and shall take effect as of the Effective Date. Any reference to the “Company”
means CB Financial Services, Inc., the stock holding company of the Bank.

 

WHEREAS, Executive shall serve in the
executive positions as described below; and

 

WHEREAS, the Bank desires to set forth
the rights and responsibilities of Executive and the compensation payable to Executive, as modified from time to time; and

 

NOW, THEREFORE, in consideration of the
mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows:

 

		1.	POSITION AND RESPONSIBILITIES

 

During the term of this Agreement, Executive
agrees to serve as Executive Vice President and Chief Financial Officer of the Bank or any successor position with the Bank that
is agreed to and consented by Executive (the aforementioned position is referred to as the “Executive Position”). Executive
will perform the duties and will have all powers associated with such Executive Position as set forth in any job description provided
to Executive by the Bank, and as may be set forth in the bylaws of the Bank. During the period provided in this Agreement, Executive
also agrees to serve, if elected, as an officer of any subsidiary or affiliate of the Bank and in such capacity carry out such
duties and responsibilities reasonably appropriate to that office.

 

		2.	TERM AND DUTIES

 

(a)       Term
and Annual Renewal. The initial term of this Agreement and the period of Executive’s employment hereunder will begin
as of the Effective Date and will continue for 36 full calendar months after each “Anniversary Date,” which shall be
May 1st of each year. Commencing on the first Anniversary Date following the Effective Date and continuing on each Anniversary
Date thereafter, this Agreement will renew for an additional year such that the remaining term will be 36 months; provided, however,
that in order for this Agreement to renew, the disinterested members of the Board of Directors of the Bank (the “Board”)
must take the following actions within the time frames set forth below prior to each Anniversary Date: (i) conduct a comprehensive
performance evaluation and review of Executive for purposes of determining whether to extend this Agreement; and (ii) affirmatively
approve the renewal of this Agreement and include such decision in the minutes of the Board’s meeting. If the disinterested
members of the Board decide not to renew this Agreement, then the Board will provide Executive with a written notice of non-renewal
(“Non-Renewal Notice”) no later than five business days after such action is taken, in which event this Agreement will
terminate 24 months from the Anniversary Date. The failure of the disinterested members of the Board to take the actions set forth
herein before any Anniversary Date will result in the automatic non-renewal of this Agreement, even if the Board fails to affirmatively
issue the Non-Renewal Notice to Executive. If the Board fails to inform Executive of its determination regarding the renewal or
non-renewal of this Agreement, the Executive may request that the Board provide Executive with the reason(s) for its action (or
non-action), and the Board will respond to Executive within 30 days of the receipt of such request. Reference herein to the term
of this Agreement will refer to both such initial term and such extended terms.

 

     

     

    

 

(b)       Change
in Control. Notwithstanding the foregoing, in the event that the Bank or the Company has entered into an agreement to effect
a transaction that would be considered a Change in Control as defined under Section 5 hereof, then the term of this Agreement will
be extended automatically for 36 months following the date on which the Change in Control occurs.

 

(c)       Membership
on Other Boards or Organizations. During the period of his employment hereunder, except for periods of absence occasioned
by illness, reasonable vacation periods, and reasonable leaves of absence, Executive will devote all of his business time, attention,
skill and efforts to the faithful performance of his duties under this Agreement, including activities and duties related to the
Executive Position. Notwithstanding the preceding sentence, subject to the approval of the Board, Executive may serve as a member
of the board of directors of business, community and charitable organizations, provided that in each case such service does not
materially interfere with the performance of his duties under this Agreement, adversely affect the reputation of the Bank or any
other affiliates of the Bank, or present any conflict of interest.

 

(d)       Continued
Employment Following Expiration of Term. Nothing in this Agreement mandates or prohibits a continuation of Executive’s
employment following the expiration of the term of this Agreement, upon the terms and conditions as the Bank and Executive may
mutually agree.

 

		3.	COMPENSATION, BENEFITS AND REIMBURSEMENT

 

(a)       Base
Salary. In consideration of Executive’s performance of the responsibilities and duties set forth in this Agreement,
the Bank will provide Executive the compensation specified in this Agreement. The Bank will pay Executive a salary of $210,000
per year (“Base Salary”). Such Base Salary will be payable in accordance with the customary payroll practices of the
Bank. During the term of this Agreement, the Board may increase, but not decrease (other than a decrease which is applicable to
all senior officers of the Bank and in a percentage not in excess of the percentage decrease for other senior officers), Executive’s
Base Salary as the Board deems appropriate. Any change in Base Salary will become the “Base Salary” for purposes of
this Agreement.

 

(b)       Bonus.
Executive shall be entitled to participate in any bonus plan or arrangements of the Bank in which the Executive is eligible to
participate. Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of the other compensation
to which Executive is entitled under this Agreement.

 

(c)       Benefit
Plans. Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to
employees and officers of the Bank. Without limiting the generality of the foregoing provisions of this Section 3(c), Executive
also will be entitled to participate in any employee benefit plans including but not limited to stock option and restricted stock
plans, retirement plans, pension plans, profit-sharing plans, health-and-accident plans, or any other employee benefit plan or
arrangement made available by the Bank in the future to management employees, subject to and on a basis consistent with the terms,
conditions and overall administration of such plans and arrangements.

 

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(d)       Vacation.
Executive will be entitled to four (4) weeks of paid vacation time each year during the term of this Agreement measured on a calendar
year basis, in accordance with the Bank’s customary practices, as well as sick leave, holidays and other paid absences in
accordance with the Bank’s policies and procedures for officers. Any unused paid time off during an annual period will be
treated in accordance with the Bank’s personnel policies as in effect from time to time.

 

(e)       Expense
Reimbursements. The Bank will reimburse Executive for all reasonable travel, entertainment and other reasonable expenses
incurred by Executive during the course of performing his obligations under this Agreement, including, without limitation, use
of a Bank-provided cellular telephone and laptop computer, fees for memberships in such organizations as Executive and the Board
mutually agree are necessary and appropriate in connection with the performance of his duties under this Agreement, upon substantiation
of such expenses in accordance with applicable policies and procedures of the Bank. With regard to a Bank-provided cellular telephone,
Executive shall be entitled to reimbursement for all fixed monthly expenses associated with such service and for reimbursement
of all charges for business-related telephone calls, provided such expenses are substantiated in accordance with applicable policies
and procedures of the Bank. All reimbursements pursuant to this Section 3(e) shall be paid promptly
by the Bank and in any event no later than 30 days following the date on which the expense was incurred. 

 

(f)       Timing
of Payments. To the extent not specifically set forth in this Section 3, any compensation payable or provided under this
Section 3 shall be paid or provided no later than two and one-half (2.5) months after the calendar year in which such compensation
is no longer subject to a substantial risk of forfeiture within the meaning of Treasury Regulation 1.409A-1(d).

 

		4.	TERMINATION AND TERMINATION PAY

 

Subject to Section 5 of this Agreement which
governs the occurrence of a Change in Control, Executive’s employment under this Agreement shall be terminated in the following
circumstances:

 

(a)       Death.
This Agreement shall terminate upon Executive’s death, in which event Executive’s estate or beneficiary shall be entitled
to receive the compensation and vested benefits due Executive as of the date of Executive’s death, and neither Executive,
nor Executive’s estate or beneficiary shall have a right to receive any compensation or benefits under this Agreement for
any period after the date of Executive’s death, other than compensation or benefits that have already been earned or vested.

 

(b)       Disability.
This Agreement shall terminate in the event of Executive’s “Disability” as determined by the Board in its sole
discretion. “Disability” shall mean Executive: (i) is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment which can be expected to result in death, or last for a continuous
period of not less than 12 months; (ii) by reason of any medically determinable physical or mental impairment which can be expected
to result in death, or last for a continuous period of not less than 12 months, is receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering employees of the Bank; or (iii) is determined to
be disabled by the Social Security Administration. In determining whether a Disability exists, the Board’s decision shall
be based on medical and other information provided to the Board regarding Executive’s medical condition and work performance.
In the event of Executive’s termination due to Disability, Executive will be entitled to disability benefits, if any, provided
under a long term disability plan sponsored by the Bank, if applicable. However, Executive shall not have a right to receive any
compensation or benefits under this Agreement for any period after the date of Executive’s Disability.

 

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(c)       Termination
for Cause. The Board may immediately terminate Executive’s employment at any time for “Cause.” Executive
shall have no right to receive compensation or other benefits under this Agreement for any period after termination for Cause,
except for already vested benefits. Termination for “Cause” shall mean termination because of, in the good faith determination
of the Board, Executive’s:

 

(i)       material
act of dishonesty or fraud in performing Executive’s duties on behalf of the Bank;

 

(ii)       willful
misconduct that in the judgment of the Board will likely cause economic damage to the Bank or injury to the business reputation
of the Bank;

 

(iii)       incompetence
(in determining incompetence, the acts or omissions shall be measured against standards generally prevailing in the banking industry);

 

(iv)       breach
of fiduciary duty involving personal profit;

 

(v)       intentional
failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

(vi)       willful
violation of any law, rule or regulation (other than traffic violations or similar offenses which results only in a fine or other
non-custodial penalty) that reflect adversely on the reputation of the Bank, any felony conviction, any violation of law involving
moral turpitude, or any violation of a final cease-and-desist order; any violation of the policies and procedures of the Bank as
outlined in the Bank’s employee handbook, which would result in termination of a Bank employee, as from time to time amended
and incorporated herein by reference, or

 

(vii)       material
breach by Executive of any provision of this Agreement.

 

Notwithstanding the foregoing, Executive
shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to Executive a notice of
termination which shall include a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the
disinterested members of the Board, at a meeting of the Board called and held for the purpose of finding that, in good faith opinion
of the Board (after reasonable notice to Executive and an opportunity for Executive to be heard before the Board with counsel),
that Executive was guilty of the conduct described in any of the paragraphs (i) through (vii) above.

 

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(d)       Voluntary
Termination by Executive. Executive may voluntarily terminate employment during the term of this Agreement (other than
“With Good Reason” as defined below) upon at least 30 days prior written notice to the Board. Upon Executive’s
voluntary termination, Executive shall have no right to receive compensation or other benefits under this Agreement for any period
after termination, except for compensation or benefits that have already been earned or vested.

 

(e)       Termination
Without Cause or With Good Reason.

 

		(i)	The Board may immediately terminate Executive’s employment at any time for a reason other
than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement
at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination “With
Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason” condition, but the
Bank may waive its right to cure. Any termination of Executive’s employment, other than termination for Cause, shall have
no effect on or prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension,
savings, thrift, profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental,
accident and long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs
in which Executive was a participant.

 

		(ii)	In the event of termination as described under Section 4(e)(i) and subject to the requirements
of Section 4(e)(v), the Bank will continue to pay Executive his Base Salary at the rate in effect at Executive’s date of
termination for the greater of: (i) 12 months or (ii) the remaining term of this Agreement. Such continued payments will commence
on the Bank’s first payroll date immediately following the 30th day after Executive’s date of termination
and be payable in accordance with the Bank’s regular payroll practices.

 

		(iii)	In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable
medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage
maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for
active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier
of: (A) the completion of the remaining term of this Agreement or (B) the date on which Executive becomes a full-time employee
of another employer, provided Executive is entitled to benefits with such other employer that are substantially similar to the
health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of the Internal
Revenue Code of 1986, as amended (the “Code”), shall run concurrently with the coverage period provided herein. If
the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, applicable
rules and regulations prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the
Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such
benefits or the value of the remaining benefits at the time of such determination. Such cash payment will be made on the Bank’s
first payroll date immediately following the 30th day after the later of: (i) Executive’s date of termination;
or (ii) the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties. Notwithstanding
the foregoing, if such cash payment would violate the requirements of Treasury Regulation Section 1.409A-3(j), the Executive’s
cash payment in lieu of the continued health insurance or welfare benefits as required by this Agreement shall be payable at the
same time the related premium payments would have been paid by the Bank and will be payable for the duration of the applicable
coverage period.

 

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		(iv)	“Good Reason” exists if, without Executive’s express written consent, any of
the following occurs:

 

		(A)	a material reduction in Executive’s Base Salary (other than pursuant to Section 3(a)) or
benefits provided in this Agreement (other than a reduction or elimination of Executive’s benefits under one or more benefit
plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to
all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply
with applicable law));

 

		(B)	a material reduction in Executive’s authority, duties or responsibilities from the position
and attributes associated with the Executive Position;

 

		(C)	a material breach of this Agreement by the Bank.

 

		(v)	Notwithstanding the foregoing, Executive will not be entitled to any payments or benefits under
this Section 4(e) unless and until Executive executes a release of all claims that Executive or any of Executive’s affiliates
or beneficiaries may have against the Bank, the Company or any affiliate, and their officers, directors, successors and assigns,
releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to
the employment relationship, including claims under the Age Discrimination in Employment Act (“ADEA”), but not including
claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required
by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement.
In order to comply with the requirements of Section 409A of the Code and the ADEA, the release must be provided to Executive no
later than the date of his Separation from Service and Executive must execute the release within 21 days after the date of termination
without subsequent revocation by Executive within seven (7) days after execution of the release, provided, however, that if such
21-day period spans two (2) calendar years, then, to the extent necessary to comply with Code Section 409A, the payments and benefits
described in this Section 4(e) will commence in the second calendar year.

 

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(f)       Effect
on Status as a Director. In the event of Executive’s termination of employment under this Agreement for any reason,
such termination shall also constitute Executive’s resignation from the Board of Directors of the Bank, as well as the Board
of Directors of the Company and direct or indirect subsidiary of the Bank or the Company, if applicable.

 

		5.	CHANGE IN CONTROL

 

(a)       Change
in Control Defined. For purposes of this Agreement, the term “Change in Control” shall mean the occurrence
of any of the following events:

 

		(i)	Merger: The Company or the Bank merges into or consolidates with another entity, or merges
another bank or corporation into the Bank or the Company, and as a result, less than a majority of the combined voting power of
the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company
or the Bank immediately before the merger or consolidation;

 

		(ii)	Acquisition of Significant Share Ownership: There is filed, or is required to be filed,
a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become
the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however,
this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary
capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;

 

		(iii)	Change in Board Composition: During any period of two consecutive years, individuals who
constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any reason
to constitute at least a majority of the Company’s or the Bank’s Board of Directors; provided, however, that for purposes
of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the stockholders)
by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period or who is appointed
to the Board as the result of a directive, supervisory agreement or order issued by the primary federal regulator of the Company
or the Bank or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been a director at
the beginning of such period; or

 

		(iv)	Sale of Assets: The Company or the Bank sells to a third party all or substantially all
of its assets.

 

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(b)       Change
in Control Benefits. Upon the occurrence of Executive’s termination of employment for any reason other than for Cause
on or after the effective time of a Change in Control, the Bank (or any successor) shall pay Executive, or in the event of Executive’s
subsequent death, Executive’s beneficiary or estate, as severance pay, an amount equal to three (3) times his highest annual
rate of Base Salary earned by Executive during the calendar year of Executive’s date of termination or either of the three
(3) calendar years immediately preceding Executive’s date of termination. Such amount will be payable to Executive in equal
installments in accordance with the Bank’s (or any successor’s) regular payroll practices for the greater of: (i) 12
months; or (ii) the remaining term of this Agreement, and will commence on the Bank’s (or successor’s) first payroll
date immediately following the 30th day after Executive’s date of termination. In addition, the Bank will continue
to provide Executive with life insurance coverage and non-taxable medical and dental insurance coverage substantially comparable
to the coverage maintained by the Bank for Executive immediately prior to his date of termination at no cost to Executive. Such
continued coverage shall cease upon the earlier of: (i) the date which is three (3) years after Executive’s date of termination
or (ii) the date on which Executive becomes a full-time employee of another employer, provided Executive is entitled to benefits
with such other employer that are substantially similar to the health and welfare benefits provided by the Bank. If the Bank cannot
provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, applicable rules and
regulations prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to
penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits
or the value of the remaining benefits at the time of such determination. Such cash payment will be made on the Bank’s first
payroll date immediately following the 30th day after the later of: (i) Executive’s date of termination; or (ii)
the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.

 

		6.	COVENANTS OF EXECUTIVE

 

(a)              
Non-Solicitation/Non-Compete. Executive hereby covenants and agrees that, for a period of one (1) year following
his termination of employment with the Bank (other than a termination of employment following a Change in Control), Executive shall
not, without the written consent of the Bank, either directly or indirectly:

 

		(i)	solicit, offer employment to, or take any other action intended (or that a reasonable person acting
in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective
subsidiaries or affiliates, to terminate his employment and accept employment or become affiliated with, or provide services for
compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of their
direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which the
Bank has business offices or has filed an application for regulatory approval to establish an office (the “Restricted Territory”);

 

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		(ii)	become an officer, employee, consultant, director, independent contractor, agent, joint venturer,
partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank
holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of
the Bank or any of their direct or indirect subsidiaries or affiliates, that: (i) has a headquarters within the Restricted Territory
or (ii) has one or more offices, but is not headquartered, within the Restricted Territory, but in the latter case, only if Executive
would be employed, conduct business or have other responsibilities or duties within the Restricted Territory; or

 

		(iii)	solicit, provide any information, advice or recommendation or take any other action intended (or
that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate
an existing business or commercial relationship with the Bank.

 

(b)              
Confidentiality. Executive recognizes and acknowledges that the knowledge of the business activities, plans
for business activities, and all other proprietary information of the Bank, as it may exist from time to time, are valuable, special
and unique assets of the business of the Bank. Executive will not, during or after the term of his employment, disclose any knowledge
of the past, present, planned or considered business activities or any other similar proprietary information of the Bank to any
person, firm, corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required
by law. Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts
or ideas which are not solely and exclusively derived from the business plans and activities of the Bank. Further, Executive may
disclose information regarding the business activities of the Bank to any bank regulator having regulatory jurisdiction over the
activities of the Bank pursuant to a formal regulatory request. In the event of a breach or threatened breach by Executive of the
provisions of this Section, the Bank will be entitled to an injunction restraining Executive from disclosing, in whole or in part,
the knowledge of the past, present, planned or considered business activities of the Bank or any other similar proprietary information,
or from rendering any services to any person, firm, corporation, or other entity to whom such knowledge, in whole or in part, has
been disclosed or is threatened to be disclosed. Nothing herein will be construed as prohibiting the Bank from pursuing any other
remedies available to the Bank for such breach or threatened breach, including the recovery of damages from Executive.

 

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(c)              
Information/Cooperation. Executive shall, upon reasonable notice, furnish such information and assistance
to the Bank as may be reasonably required by the Bank, in connection with any litigation in which it or any of its subsidiaries
or affiliates is, or may become, a party; provided, however, that Executive shall not be required to provide information or assistance
with respect to any litigation between Executive and the Bank or any other subsidiaries or affiliates.

 

(d)              
Reliance. Except as otherwise provided, all payments and benefits to Executive under this Agreement shall
be subject to Executive’s compliance with this Section 6, to the extent applicable. The parties hereto, recognizing that
irreparable injury will result to the Bank, its business and property in the event of Executive’s breach of this Section
6, agree that, in the event of any such breach by Executive, the Bank will be entitled, in addition to any other remedies and damages
available, to an injunction to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive
represents and admits that Executive’s experience and capabilities are such that Executive can obtain employment in a business
engaged in other lines of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive
from earning a livelihood. Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available
to them for such breach or threatened breach, including the recovery of damages from Executive.

 

		7.	SOURCE OF PAYMENTS

 

All payments provided in this Agreement shall
be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).

 

		8.	EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS

 

This Agreement contains the entire understanding
between the parties hereto and supersedes any prior agreement as of the Effective Date, except that this Agreement shall not affect
or operate to reduce any benefit or compensation inuring to Executive of a kind expressly provided elsewhere.

 

		9.	NO ATTACHMENT; BINDING ON SUCCESSORS

 

(a)       Except
as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation,
sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment
by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.

 

(b)       The
Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all
or substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank’s
obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such
succession or assignment had taken place.

 

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		10.	MODIFICATION AND WAIVER

 

(a)       This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(b)       No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement
of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written
waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other
than that specifically waived.

 

		11.	REQUIRED PROVISIONS

 

Notwithstanding anything herein contained to
the contrary, the following provisions shall apply:

 

(a)       The
Board may terminate Executive’s employment at any time, but any termination by the Bank’s Board other than termination
for Cause shall not prejudice Executive’s right to compensation or other benefits under this Agreement. Executive shall have
no right to receive compensation or other benefits for any period after his termination for Cause.

 

(b)       Notwithstanding
anything herein contained to the contrary, any payments to Executive by the Company, whether pursuant to this Agreement or otherwise,
are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section
1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

 

(c)       Notwithstanding
anything else in this Agreement to the contrary, Executive’s employment shall not be deemed to have been terminated unless
and until Executive has a Separation from Service within the meaning of Section 409A of the Code. For purposes of this Agreement,
a “Separation from Service” shall have occurred if the Bank and Executive reasonably anticipate that either no further
services will be performed by Executive after the date of termination (whether as an employee or as an independent contractor)
or the level of further services performed is less than 50 percent of the average level of bona fide services in the 36 months
immediately preceding the termination. For all purposes hereunder, the definition of Separation from Service shall be interpreted
consistent with Treasury Regulation 1.409A-1(h)(ii). Notwithstanding the foregoing, this Section 11(c) is not applicable in the
event of Executive’s termination for Cause.

 

(d)       Notwithstanding
the foregoing, if Executive is a “specified employee” (i.e., a “key employee” of a publicly traded company
within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this Agreement
is triggered due to Executive’s Separation from Service (other than due to Disability or death), then solely to the extent
necessary to avoid penalties under Section 409A of the Code, no payment shall be made during the first six (6) months following
Executive’s Separation from Service. Rather, any payment which would otherwise be paid to Executive during such period shall
be accumulated and paid to Executive in a lump sum on the first day of the seventh month following such Separation from Service.
All subsequent payments shall be paid in the manner specified in this Agreement.

 

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(e)       Each
payment pursuant to Sections 4 and 5 of this Agreement is intended to constitute a “separate payment” for purposes
of Treasury Regulation 1.409A-2(b)(ii).

 

(f)       Notwithstanding
anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits Executive’s
ability to file a charge or complaint with the Securities and Exchange Commission or any other federal, state or local governmental
agency or commission (“Government Agencies”) about a possible securities law violation without approval of the Bank
(or any affiliate). Executive further understands that this Agreement does not limit Executive’s ability to communicate with
any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency,
including providing documents or other information, without notice to the Bank (or any affiliate) related to the possible securities
law violation. This Agreement does not limit Executive’s right to receive any resulting monetary award for information provided
to any Government Agency.

 

		12.	SEVERABILITY

 

If, for any reason, any provision of this Agreement,
or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part
of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with
law continue in full force and effect.

 

		13.	GOVERNING LAW

 

This Agreement shall be governed by the laws
of the Commonwealth of Pennsylvania but only to the extent not superseded by federal law.

 

		14.	ARBITRATION

 

Any dispute or controversy arising under or
in connection with this Agreement shall be settled exclusively by binding arbitration, as an alternative to civil litigation and
without any trial by jury to resolve such claims, conducted by a single arbitrator mutually acceptable to the Bank and Executive,
sitting in a location selected by the Bank within 50 miles from the main office of the Bank, in accordance with the rules of the
American Arbitration Association’s National Rules for the Resolution of Employment Disputes then in effect. Judgment may
be entered on the arbitrator’s award in any court having jurisdiction.

 

		15.	PAYMENT OF LEGAL FEES

 

To the extent that such payment(s) may be made
without triggering penalty under Section 409A of the Code, all reasonable legal fees paid or incurred by Executive pursuant to
any dispute relating to this Agreement shall be paid or reimbursed by the Bank, provided that the dispute is resolved in Executive’s
favor, and such reimbursement shall occur no later than 60 days after the end of the year in which the dispute is settled or resolved
in Executive’s favor.

 

    12

     

    

 

		16.	INDEMNIFICATION

 

The Bank shall provide Executive (including
his heirs, executors and administrators) with coverage under a standard directors’ and officers’ liability insurance
policy at its expense, and shall indemnify Executive (and his heirs, executors and administrators) for the term of this Agreement
and for a period of six (6) years thereafter to the fullest extent permitted under applicable law against all expenses and liabilities
reasonably incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved by reason
of his having been a director or officer of the Bank or the Company or any subsidiary or affiliate of the Bank or the Company (whether
or not he continues to be a director or officer at the time of incurring such expenses or liabilities), such expenses and liabilities
to include, but not be limited to, judgments, court costs and attorneys’ fees and the cost of reasonable settlements (such
settlements must be approved by the Board or the board of directors of the Company, as appropriate); provided, however, neither
the Bank nor Company shall be required to indemnify or reimburse Executive for legal expenses or liabilities incurred in connection
with an action, suit or proceeding arising from any illegal or fraudulent act committed by Executive.

 

		17.	Notice

 

For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses
set forth below:

 

	To the Bank	
        Community Bank

        2111 N. Franklin Dr.

        Washington, PA 15301

         

	To Executive:	Most recent address on file with the Bank

 

		18.	EFFECTIVENESS 

 

As of the Effective Date, Executive and the
Bank hereby agree that any prior agreement shall be terminated without any further action of any of the parties thereto. Executive
hereby acknowledges and agrees that Executive has no contractual rights to any payments or benefits under any prior agreement as
of the Effective Date.

 

[Signature Page to Follow]

 

 

 

    13

     

    

 

IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date first written above.

 

	 	COMMUNITY BANK
	 	 
	 	 
	 	By: /s/ Patrick G. O’Brien
	 	Name:  Patrick G. O’Brien
	 	Title: President and Chief Executive Officer
	 	 
	 	 
	 	 
	 	EXECUTIVE
	 	 
	 	 
	 	/s/ Jamie L. Prah
	 	Jamie L. Prah

 

 

 

 

 

14EX-4.1

 Exhibit 4.1 
  

 
 DATED: NUMBER SHARES COUNTERSIGNED: PHILADELPHIA STOCK TRANSFER, INC. 2320 HAVERFORD RD., SUITE 230, ARDMORE,
PA 19003 TRANSFER AGENT BY: AUTHORIZED SIGNATURE INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE This Certifies That: is the owner of C O M M ON S T O C K CUSIP 608189 10 6 SEE REVERSE FOR CERTAIN DEFINITIONS M FULLY PAID AND NON-ASSESSABLE
SHARES OF COMMON STOCK OF $0.0001 PAR VALUE EACH OF Mohawk Group Holdings, Inc. transferable on the books of the Corporation in person or by duly authorized attorney upon surrender of this certificate duly endorsed or assigned. This certificate and
the shares represented hereby are subject to the laws of the State of Delaware, and to the Certificate of Incorporation and Bylaws of the Corporation, as now or hereafter amended. This certificate is not valid until countersigned by the Transfer
Agent. WITNESS the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers. CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER SPECIMEN SPECIMEN - NOT NEGOTIABLE SPECIMEN not negotiable 

 

 
 COLUMBIA PRINTING SERVICES, LLC - www.stockinformation.com The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common UNIF GIFT MIN ACT - Custodian TEN ENT - as tenants by the entireties (Cust) (Minor) JT TEN - as joint
tenants with right of under Uniform Gifts to Minors survivorship and not as tenants Act in common (State) Additional abbreviations may also be used though not in the above list. For Value Received, hereby sell, assign and transfer unto PLEASE INSERT
SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) Shares of the stock represented by the within Certificate, and do hereby irrevocably constitute and appoint Attorney to
transfer the said stock on the books of the within named Corporation with full power of substitution in the premises. Dated NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY
PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER. Signature(s) Guaranteed By The Signature(s) must be guaranteed by an eligible guarantor institution (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions with
membership in an approved Signature Guarantee Medallion Program), pursuant to SEC Rule 17Ad-15. THE CORPORATION WILL FURNISH TO ANY STOCKHOLDER, UPON REQUEST AND WITHOUT CHARGE, A FULL STATEMENT OF THE DESIGNATIONS, RELATIVE RIGHTS, PREFERENCES AND
LIMITATIONS OF THE SHARES OF EACH CLASS AND SERIES AUTHORIZED TO BE ISSUED, SO FAR AS THE SAME HAVE BEEN DETERMINED, AND OF THE AUTHORITY, IF ANY, OF THE BOARD TO DIVIDE THE SHARES INTO CLASSES OR SERIES AND TO DETERMINE AND CHANGE THE RELATIVE
RIGHTS, PREFERENCES AND LIMITATIONS OF ANY CLASS OR SERIES. SUCH REQUEST MAY BE MADE TO THE SECRETARY OF THE CORPORATION OR TO THE TRANSFER AGENT NAMED ON THIS CERTIFICATE.

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