On March 17, 2016, Fidelity D & D Bancorp Inc. and The Fidelity Deposit and Discount Bank entered into an Employment Agreement with Salvatore R. DeFrancesco, Jr., under which Mr. DeFrancesco will serve as Executive Vice President and Chief Financial Officer of the Bank, as Treasurer and Chief Financial Officer of the Corporation and in such other capacities as the Bank or the Corporation direct. The initial terms of the Employment Agreement is three (3) years beginning on March 17, 2016. The Employment Agreement shall automatically renew for an additional one (1) year term at the end of the first year of the Employment Agreement and on each anniversary date unless notice to terminate is given by either party at least one hundred and eighty (180) days prior to the anniversary date of the Employment Agreement.

If proper notice to terminate is given, the Employment Agreement shall expire three (3) years after the next anniversary date.