Document:

Exhibit 10.43.1

 

URANIUM RESOURCES, INC.

 

AMENDED AND RESTATED

 

2004 DIRECTORS STOCK OPTION AND RESTRICTED STOCK PLAN

 

Effective April 1, 2010

 

1.                                Purpose.  The Uranium Resources, Inc. 2004
Directors Stock Option and Restricted Stock Plan  (the “Plan”) is intended to provide those
directors who are not employees of Uranium Resources, Inc., a Delaware
corporation (the “Company”), with additional incentives to improve the Company’s
performance by increasing the level of stock ownership by such directors, to reinforce
such directors’ role in enhancing stockholder value and to provide an
additional means of attracting and retaining well-qualified individuals to
serve as directors.

 

2.                                Administration.  The Plan shall be administered by the
Compensation Committee (the “Committee”) of the Board of Directors (the “Board”)
of the Company.  Subject to the
provisions of the Plan, the Committee shall have complete powers respecting the
Plan, including but not limited to authority to interpret the Plan and to
prescribe, amend and rescind rules and regulations relating to the
Plan.  All questions of interpretation
and application of the Plan, or pertaining to any Option or shares of
Restricted Stock granted hereunder, shall be final and binding upon all parties.

 

Subject
to the terms and conditions of the Plan, the Committee shall be authorized and
empowered:

 

(a)                                 To determine
the time or times when shares of Restricted Stock or Options will be granted,
and the number of shares to be covered by any grant;

 

(c)                                  To prescribe the
terms and conditions of any grants made under the Plan, and the forms and
agreements used in connection with such grants;

 

(d)                                 To determine
the time or times when Options or Restricted Stock will vest and determine the
legends or markings to be placed upon stock certificates representing any such
shares to reflect such standards and restrictions;

 

(e)                                  To determine
the time or times during which Options and 
Restricted Stock grants may be 
terminated in whole or in part, or when any such grants may be otherwise
subject to forfeiture; and

 

(f)                                   To establish
any other Option or Restricted Stock agreement provisions not inconsistent with
the terms and conditions of the Plan.

 

3.                                Eligibility.  Options and shares of Restricted Stock shall
be granted hereunder only to directors of the Company who are not employees of
the Company or any of its subsidiaries (the “Non-Employee Directors”).

 

4.                                Stock.  The stock subject to the Options and
Restricted Stock grants shall be authorized but unissued or reacquired shares
of the Company’s common stock, $.001 par value per share (the “Common Stock”).  The aggregate number of shares that may be
issued pursuant to Options and Restricted Stock granted under the Plan shall
not exceed One Million Two Hundred Fifty Thousand (1,250,000) shares of Common
Stock, subject to adjustment pursuant to Section 12 hereof.  If any outstanding Option or grant of
Restricted Stock under the Plan for any reason expires or is terminated, the 

 

1

 

shares
of Common Stock allocable to the unexercised portion of such Option or unvested
portion of the Restricted Stock grant may again be subject to an Option or
grant of Restricted Stock under the Plan.

 

5.                                Granting of
Options.  Options may be granted under
the Plan to Non-Employee Directors by the Committee at its discretion at any
time and in any amounts and, unless the Committee makes a grant of Restricted
Stock under Section 7 of this Plan in lieu of the automatic grants
specified in subsections 5.2 or 5.3,  shall be granted under the Plan automatically
and without further action by the Committee as follows:

 

5.1                               Each
Non-Employee Director on the date the Plan was originally adopted shall be
granted an Option to purchase seventy-five thousand (75,000) shares;

 

5.2                               Each
Non-Employee Director elected or appointed to the Board for the first time
shall be granted an Option to purchase fifty thousand (50,000) shares on the
date of such election or appointment; and

 

5.3                               Each
Non-Employee Director shall be granted an Option to purchase fifty thousand
(50,000) shares either (a) upon his or her reelection at an annual meeting of
the Company’s stockholders or (b) in any calendar year in which an annual
meeting of stockholders is not held, on June 1 of such year.

 

Any
grant of Restricted Stock made by the Committee in lieu of the automatic grant
of Options under subparagraphs 5.2 and 5.3 shall be made prior to (i) an
annual meeting of stockholders in any year or (ii) prior to June 1 in
any year in which an annual meeting of stockholders is not held.

 

6.                                Terms and
Conditions of Options.  Each
Option granted pursuant to the Plan shall be evidenced by a stock option
agreement (the “Stock Option Agreement”), in such form and containing such
terms and conditions as the Committee from time to time may determine;
provided, that each such Stock Option Agreement shall:

 

6.1                               State the
number of shares of Common Stock, determined in accordance with Section 5,
to which the Option pertains;

 

6.2                               Provide the
Option price per share shall be equal to the fair market value of the shares of
Common Stock on the date of the granting of the Option.  For purposes of this Section 6.2, the “fair
market value” of a share of Common Stock shall mean:

 

6.2.1                     If the Common
Stock is reported on any officially recognized U.S. exchange or over the
counter market on that date, as follows (a) either the closing price of a
share of Common Stock on that date as reported on such exchange or over the
counter market, or (b) where last sale trade reporting on the Common Stock
is not available, the average of the highest and lowest prices of a share of
Common Stock sold on that date, as reported on such exchange or over the
counter market; or

 

6.2.2                     If no shares of
Common Stock were traded on any officially recognized U.S. exchange or over the
counter market on that date or if, in the discretion of the Board, another
means of determining the fair market value of a share of Common Stock at such
date shall be necessary in order to comply with or conform to the requirements
of any applicable law, governmental regulation or ruling of the Internal
Revenue Service or the Securities and Exchange Commission (including, without
limitation, the methods sanctioned in Income Tax Reg. §1.409A-1(b)(5)(iv)), the
Committee may provide for another means for determining fair market value;

 

2

 

6.3                         Provide that
except as otherwise provided by the Committee, the Option is not transferable
by the Optionee other than by will or the laws of descent and distribution or
pursuant to a domestic relations order that satisfies the requirements
specified for “qualified domestic relations orders” under either the Internal
Revenue Code of 1986, as amended or Title I of the Employee Retirement Income
Security Act and related rules, and (absent such a transfer) is exercisable
during the Optionee’s lifetime only by the Optionee or the Optionee’s
attorney-in-fact.  The Committee may in a
specific Option agreement provide that the Optionee may transfer an Option by
gift to a “family member” as defined by the Committee and such family member
may exercise the Option.

 

6.4                               State the terms
upon which the Option shall be exercisable; provided that:

 

6.4.1                     The Option
shall not be exercisable after the expiration of ten (10) years from the
date the Option is granted; and

 

6.4.2                     Subject to Section 12
hereof, the Option shall be exercisable only to the extent of shares that have
vested in accordance with the following schedule unless a different vesting
schedule is determined by the Committee:

 

	
  ANNIVERSARY

  OF DATE OF GRANT

  	
   

  	
  CUMULATIVE SHARES THAT ARE 

  VESTED

  ON SUCH ANNIVERSARY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First

  	
   

  	
  25%

  	
   

  
	
  Second

  	
   

  	
  50%

  	
   

  
	
  Third

  	
   

  	
  75%

  	
   

  
	
  Fourth

  	
   

  	
  100%

  (rounded up to the nearest whole share)

  	
   

  

 

6.5                               Provide that if
an Optionee ceases to be an director of the Company or subsidiary corporation
(as applicable), for any reason other than death, or retirement from service
under a Board-approved written policy for retiring Non-Employee Directors, or
termination of service as a result of permanent and total disability, any
Option held by such Optionee which has not yet vested shall, unless otherwise
determined by the Committee on or before the date of such Optionee’s
termination of service, terminate unless exercised on or before the thirtieth
(30th) day after the
date of such termination.  Neither the
Optionee nor any other person shall have any right after such date to any part
of any Option so terminated.

 

6.6                           Provide that if
an Optionee ceases to be a director because of death, or retirement from service
under a Board-approved written policy for retiring Non-Employee Directors, or
termination of service as a result of permanent and total disability, then such
Option (i) unless otherwise determined by the Committee on or before the
date of such death, retirement or termination, shall fully vest (to the extent
not already vested), upon the date of such death, retirement or termination and
(b) shall be exercisable for a period of one year by the Optionee or by
the Optionee’s heirs or legal representatives (as applicable).

 

6.7                            Except where
considered a prohibited modification or extension of a stock right under Income
Tax Reg. §1.409A-1(b)(5)(v), all outstanding Options under this Plan on the
date of 

 

3

 

approval
of the Plan by the stockholders of the Company automatically and without
further action by the Company or the Optionee shall be deemed to have been
amended to incorporate the provisions of Sections 6.5 and 6.6.

 

6.8                               Options shall
be exercised by the delivery of written notice to the Company setting forth the
number of shares of Common Stock with respect to which the Option is to be
exercised and the address to which the certificates representing the shares of
Common Stock issuable upon the exercise of such Option shall be mailed.  In order to be effective, such written notice
shall be accompanied at the time of its delivery to the Company by full payment
of the purchase price by certified check payable to the Company.  As promptly as practicable after the receipt
by the Company of the foregoing, the Company shall cause to be delivered to
such Optionee certificates representing the number of shares of Common Stock
with respect to which such Option has been so exercised.

 

6.9                               The Company
shall not be required to sell or issue any shares of Common Stock under any
Option if the issuance of such shares shall constitute a violation by the
Optionee or the Company of any provision of any applicable statute or
regulation of any governmental authority.

 

6.10                        No Optionee
shall have rights as a stockholder with respect to shares covered by his Option
until the date of issuance of stock certificate for such shares; and no
adjustment for dividends, or otherwise, shall be made if the record date
therefor is prior to the date of issuance of such certificate.

 

7.                                Restricted
Stock Provisions.

 

7.1                               The prospective
recipient of a Restricted Stock grant shall not have any rights with respect to
such grant unless and until such recipient has entered into a written agreement
(the “Restricted Stock Grant Agreement”) with the Company evidencing such
grant, has delivered a fully executed copy thereof to the Company and has
otherwise complied with the applicable terms and conditions of such grant.

 

7.2                               To be
enforceable, a grant of Restricted Stock must be accepted within a period of 60
days (or such shorter period as the Committee may specify at grant) following
the grant date.  Acceptance shall be
evidenced by executing a Restricted Stock Grant Agreement.  Upon acceptance of a grant of Restricted
Stock, a Grantee shall be issued a stock certificate in respect of such shares
of Restricted Stock.  Such certificate
shall be registered in the name of such Grantee and shall bear an appropriate legend
identifying the terms, conditions and restrictions applicable to such grant.

 

7.3                               The Committee
shall require that: (i) the stock certificates transferred to a Grantee in
evidence of the shares of Restricted Stock thereupon held by him be
retransferred to, and be held in the custody of, the Company or its designee
until the restrictions thereon shall have lapsed, and (ii) as a condition
of any Restricted Stock grant, the Grantee shall have delivered a stock power,
endorsed in blank, relating to the Restricted Stock covered by such grant.

 

7.4                               Subject to the
provisions of the Plan and the Restricted Stock Grant Agreement, during the
period set by the Committee commencing with the date of such grant and the date
or circumstances under which all restrictions lapse  (the “Restriction Period”), a Grantee shall
not be able to sell, transfer, pledge, anticipate or assign Restricted
Stock.  The Committee shall condition any
lapse of the Restricted Period upon the attainment of standards specified by
the Committee at the time of grant. The Committee, in its sole discretion, may
specify that a Restricted Period may lapse in installments, or that the
restrictions contained in a Restricted Stock grant are to be waived 

 

4

 

or
accelerated in whole or in part based on the attainment of standards specified
by the Committee.  Unless otherwise
specified by the Committee the Restricted Period shall lapse in installments of
25% per year as follows:

 

	
  ANNIVERSARY

  OF DATE OF GRANT

  	
   

  	
  PORTION OF SHARES (CUMULATIVE) AS 

  TO WHICH THE RESTRICTED PERIOD 

  SHALL LAPSE

  (rounded up to the nearest whole share)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First

  	
   

  	
  25%

  	
   

  
	
  Second

  	
   

  	
  50%

  	
   

  
	
  Third

  	
   

  	
  75%

  	
   

  
	
  Fourth

  	
   

  	
  100%

  	
   

  

 

7.5                               Except as
provided in Sections 7.3 and 7.4 of this Plan, a Grantee shall have, with
respect to the shares of Restricted Stock, all of the rights of a stockholder
of the Company, including the right to vote such Stock and the right to receive
any regular cash dividends declared and paid out of current earnings in respect
of such Stock.  The Committee shall require
any cash dividends declared and paid in respect of unvested shares of
Restricted Stock to be reinvested in additional Restricted Stock, to the extent
shares are available under the Plan. 
Stock dividends, splits and property distributions issued with respect
to Restricted Stock shall be treated as additional shares of Restricted Stock
that are subject to the same restrictions and other terms and conditions that
apply to the Restricted Stock with respect to which such dividends are declared
and paid, and the Committee may require a Grantee to deliver additional stock
powers covering any Restricted Stock issuable pursuant to such stock dividend,
split or property distribution.  Any
other dividends paid or property distributed in respect of Restricted Stock shall
be held by the Company subject to the same restrictions imposed upon the
Restricted Stock to which such dividends and/or property relates.

 

7.6                               (a)                                 If a Grantee
ceases to be an director of the Company or subsidiary corporation (as
applicable), for any reason other than death, or retirement from service under
a Board-approved written policy for retiring Non-Employee Directors, or
termination of service as a result of permanent and total disability, any  Restricted Stock held in respect of such
Grantee which has not yet vested shall, unless otherwise determined by the
Committee on or before the date of such Grantee’s death, retirement or
termination, be forfeited as of  the
effective date of such death, retirement or termination.  Neither the Grantee nor any other person
shall have any right after such date to any part of any Restricted Stock so
forfeited.

 

(b)                                 If a Grantee’s
ceases to be a director because of death, or retirement from service under a
Board-approved written policy for retiring Non-Employee Directors, or
termination of service as a result of permanent and total disability, then such
Grantee’s Restricted Stock shall fully vest (to the extent not already vested)
upon the date of such death, retirement or termination, and all applicable
restrictions thereon shall lapse and expire. 
In the case of death, any Restricted Stock held by the Company or its
designee shall be transferred and released to such Grantee’s estate, or the
person designated by such Grantee by will or in accordance with relevant state
law.

 

5

 

7.7                               If and when the
Restriction Period applicable to Restricted Stock expires without a prior
forfeiture of such Stock, custody of such Stock shall be released to the
Grantee by the Company (or its designee), together with any other property held
by the Company with respect to such Stock, and an appropriate stock certificate
shall be promptly delivered to the Grantee evidencing unrestricted ownership of
such Stock.

 

8.                                      Change of
Control.

 

8.1                               Upon the
occurrence of a Change of Control (as defined in this Section), notwithstanding
any other Plan provision or any agreement to the contrary, any and all Options
and Restricted Stock granted under the Plan shall immediately and fully vest
(to the extent not theretofore vested), and all restrictions thereon shall
lapse and expire.

 

8.2                               For purposes of
the Plan, a Change of Control shall be deemed to have occurred if:  (i) a tender offer shall be made and
consummated for the ownership of 25% or more of the outstanding voting  securities of the Company; or (ii) the
Company shall be merged or consolidated with another corporation and, as a
result of such merger or consolidation, less than 75% of the outstanding voting
securities of the surviving or resulting corporation shall be owned in the
aggregate by the former stockholders of the Company as the same shall have
existed immediately prior to such merger or consolidation; or (iii) the
Company shall sell substantially all of its assets to another corporation which
is not a wholly owned subsidiary; or (iv) a person, within the meaning of Section 3(a)(9) or
of Section 13(d)(3) (as in effect on the date hereof) of the Exchange
Act, shall acquire, other than by reason of inheritance, fifty-one percent
(51%) or more of the outstanding voting securities of the Company (whether
directly, indirectly, beneficially or of record).  In making any such determination, transfers
made by a person to an affiliate of such person (as determined by the Board),
whether by gift, devise or otherwise, shall not be taken into account.  For purposes of the Plan, ownership of voting
securities shall take into account and shall include ownership as determined by
applying the provisions of Rule 13d-3(d)(1)(i) as in effect on the
date hereof pursuant to the Exchange Act. 
Notwithstanding the provisions of the foregoing subparagraph (iv) of
this Section 8.2, the term “person,” as used in such subparagraph, shall
not include any holder who was the beneficial owner of more than ten percent (10%)
of the voting securities of the Company on the date the Plan was adopted by the
Board.

 

9.                                      Investment
Representation, Approvals and Listing.

 

9.1                               The Committee
may, if it deems appropriate, condition any grant of Restricted Stock or
issuance of shares upon exercise of an Option upon receipt of the following
investment representation from the Grantee:

 

“I
agree that the Common Stock of Uranium Resources, Inc. that I acquire
shall be acquired for investment purposes only and not with a view to
distribution or resale, and may not be transferred, sold, assigned, pledged,
hypothecated or otherwise disposed of by me unless (i) a registration
statement or post-effective amendment to a registration statement under the
Securities Act of 1933, as amended, with respect to said shares of Common Stock
has become effective so as to permit the sale or other disposition of said
shares by me; or (ii) there is presented to Uranium Resources, Inc.,
an opinion of counsel satisfactory to Uranium Resources, Inc., to the
effect that the sale or other proposed disposition of said shares of Common
Stock by me may lawfully be made otherwise than pursuant to an effective
registration statement or post-effective amendment to a registration statement
relating to the said shares under the Securities Act of 1933, as amended.”

 

9.2                               The Company
shall not be required to issue any certificate or certificates representing
shares of Common Stock under the Plan prior to (i) the obtaining of any
approval from any governmental agency which the Committee shall, in its sole
discretion, determine to be 

 

6

 

necessary
or advisable; (ii) the admission of such Stock to listing on any national
securities exchange on which the Common Stock may be listed; (iii) the
completion of any registration requirements or other qualifications imposed on
the Common Stock by any state or federal law or ruling or regulations of any
governmental body which the Committee shall, in its sole discretion, determine
to be necessary or advisable or the determination by the Committee, in its sole
discretion, that any registration or other qualification of the Common Stock is
not necessary or advisable; and (iv) the obtaining of an investment
representation from the Grantee in the form stated above or in such other form
as the Committee, in its sole discretion, shall determine to be adequate.

 

10.                               General
Provisions.

 

10.1                        The form and
substance of Restricted Stock Grant Agreements and Stock Option Agreements made
hereunder need not be identical.  Nothing
in the Plan or in any such agreement shall confer upon any Non-Employee
Director any right to continue in service as a director of the Company or of
any subsidiary corporation, to be entitled to any remuneration or benefits not
set forth in the Plan or any Restricted Stock Grant Agreement or Stock Option
Agreement, or to interfere with or limit the right of the Company or any
subsidiary corporation to terminate such Non-Employee Director’s services at
any time, with or without cause.

 

10.2                        The Plan may be
assumed by the successors and assigns of the Company.  The liability of the Company under the Plan
is limited to the obligations set forth herein, and no term or provision of the
Plan shall be construed to impose any liability on the Company in favor of any
Non-Employee Director with respect to any loss, cost or expense which such
Director may incur in connection with or arising out of any grant or agreement
made in connection with the Plan.  All expenses
arising from or associated with administering the Plan shall be borne by the
Company.  The captions and section
numbers appearing in the Plan are inserted only as a matter of convenience, and
do not define, limit, construe or describe the scope or intent of the
provisions of the Plan.

 

11.                         Term of Plan.  Options and shares of Restricted Stock shall
be granted hereunder within a period of ten (10) years from the date the
Plan was originally adopted by the Board.

 

12.                         Effect on
Options and Restricted Stock of Changes in the Company’s Capital Structure.

 

12.1                  If the Company
shall effect a subdivision or consolidation of shares or other capital
readjustment, a payment of stock dividend, or other increase or reduction of
the number of shares of Common Stock outstanding (i) the number, class, and
per share price of shares of Common Stock subject to outstanding Options
hereunder shall be appropriately adjusted in such a manner as to entitle an
Optionee to receive upon exercise of an Option, for the same aggregate
consideration, the same total number and class of shares as he would have
received had he exercised his Option in full immediately prior to the event
requiring the adjustment; and (ii) the number and class of shares then
reserved for issuance under the Plan shall be adjusted by substituting for the
total number and class of shares of Common Stock then reserved that number and
class of shares that would have been received by the owner of an equal number
of outstanding shares of Common Stock as the result of the event requiring the
adjustment.

 

12.2                  If the Company
is merged into or consolidated with another corporation under circumstance
where the Company is not the surviving corporation, or if the Company is
liquidated, or sells or otherwise disposes of substantially all its assets to
another corporation while unexercised Options remain outstanding under the Plan
or unvested shares of Restricted Stock are outstanding under the Plan, (i) subject
to the provisions of clause (iii) below, after the effective date of such
merger, consolidation or sale, as the case may be, each holder of an
outstanding Option shall be entitled, upon exercise of such Option, to receive,
in lieu of shares of Common 

 

7

 

Stock,
shares of such stock or other securities as the holders of shares of Common
Stock receive pursuant to the terms of the merger, consolidation or sale; (ii) the
Board may waive any limitations set forth in or imposed pursuant to Sections
6.4.2 and 7 hereof so that all Options and shares of Restricted Stock, from and
after a date prior to the effective date of such merger, consolidation,
liquidation or sale, as the case may be, specified by the Board, shall be fully
vested; and (iii) all outstanding Options may be canceled by the Board as
of the effective date of any such merger, consolidation, liquidation or sale
provided that (x) notice of such cancellation shall be given to each
holder of an Option and (y) each holder of an Option shall have the right
to exercise such Option in full (without regard to any limitations set forth in
or imposed pursuant to Section 6.4.2 hereof) during a 30-day period
preceding the effective date of such merger, consolidation, liquidation or
sale.

 

Except as hereinbefore expressly provided, the
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash, property, or services,
either upon direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company
convertible into such shares of other securities, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number, class
or price of shares of Common Stock then subject to outstanding Options or
shares of Restricted Stock.

 

13.                               Modification,
Termination or Amendment of the Plan.  The Board may, insofar as permitted by law,
from time to time, with respect to any shares of Common Stock at the time not
subject to Options, suspend or discontinue the Plan in any respect
whatsoever.  Unless otherwise required by
applicable law or rules of any stock exchange on which the shares of
Common Stock are listed or approved for trading, the Board may at any time
amend the Plan as it shall deem advisable without any action on the part of the
stockholders of the Company.  Any and all
shares of unvested Restricted Stock outstanding at the time of termination of
the Plan shall continue in full force and effect in accordance with their
restrictions and subject to the terms and conditions of this Plan and any
related Restricted Stock Grant Agreements.

 

14.                               No
Repricing.  Other than in connection with
a change in the Corporation’s capitalization, at any time when the purchase
price of a Stock Option is above the market value of a Share, the Corporation
shall not, without shareholder approval, reduce the purchase price of such
Stock Option and shall not exchange such Stock Option for a new Stock Option
with a lower (or no) purchase price or for cash or for stock award.

 

15.                               Effective Date.  The Plan shall become effective upon its
adoption by the Board of Directors, subject to approval by the stockholders of
the Company.  If the Plan is so approved,
no further approval shall be required with respect to the administration of
grants made pursuant to the Plan.

 

16.                               Date of
Adoption.  The Plan is
adopted on June 2, 2004, was amended and restated June 6, 2006, is
further and amended and restated effective April 10, 2007 and approved by
the stockholders on July 12, 2007 and is further and amended and restated
effective April 1, 2010 and approved by the stockholders on June 3,
2010.

 

IN
WITNESS WHEREOF, this Plan is executed this 1st day of April 2010.

 

	
   

  	
  URANIUM
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

8Exhibit
10.(i)

 

AMENDMENT
TO LOAN DOCUMENTS

 

THIS AMENDMENT TO LOAN DOCUMENTS (this “Amendment”)  is made as of JUNE 29,  2010, by
and between FREDERICK COUNTY  BANCORP, INC.,
a Maryland corporation (the “Borrower”), and
ATLANTIC CENTRAL BANKERS BANK (the “Lender”).

 

BACKGROUND

 

A.        On July 22, 2009, the Borrower
executed and delivered to Lender, inter alia, a Promissory Note and Security
Agreement (the “Note”) evidencing a loan in the principal sum of Four Million
and No/100 Dollars ($4,000,000) (the “Loan”) and that certain commitment letter
dated July 20, 2009(the “Commitment Letter”), as may be amended from time
to time and other documents described in or accompanying the Note, including,
any pledge agreements, collateral assignments, and other agreements, instruments,
certificates (collectively as amended from time to time, the “Loan Documents”)
which evidence or secure some or all of the Borrower’s obligations to the
Lender for one or more loans or other extensions of credit (the “Obligations”).

 

B.         The outstanding principal balance of
the Loan as of June 29, 2010 is Five Hundred Thousand and No/100 Dollars
($500,000.00).

 

C.         The Borrower and the Lender desire to
amend the Loan Documents as provided for in this Amendment.

 

NOW,
THEREFORE, in consideration of the mutual covenants herein
contained and intending to be legally bound hereby, the parties hereto agree as
follows:

 

1.     The Loan Documents are hereby amended such that:

 

(a)          the maturity
date shall be extended to July 22, 2011 (the “Maturity Date”);

 

(b)         the interest
rate shall remain floating at Wall Street Journal Prime plus  0.50%,
subject to an interest rate floor of 4.25%;

 

(c)          in conjunction
with the extension of the Maturity Date, Borrower shall remit a renewal fee in
the amount of Eight Thousand and NO/100 Dollars ($8,000.00);

 

(d)         the Borrower
will pay to the Lender, monthly payments of interest only, with all then
outstanding principal, accrued but unpaid interest and any other sums due and
payable under the Loan Documents, due and payable in full on the Maturity Date;

 

(e)          the Borrower is
not in default under any material existing agreement, and no Default hereunder
has occurred and is continuing;

 

(f)            the Borrower
and the Bank have filed or caused to be filed all tax returns (including,
without limitation, those relating to Federal and state income taxes) required
to be filed and has paid all taxes shown to be due and payable on said returns
or on any assessments made against either of them (other than those being
contested in good faith by appropriate proceedings for which adequate reserves
have been provided on its books). No tax liens have been filed against the
property or assets of the Borrower or the Bank, and no claims are being
asserted with respect to such taxes which, if adversely determined, would have
a material adverse effect upon the financial condition, business or operations
of the Borrower or the Bank;

 

 

(g)         all balance
sheets, profit and loss statements, and other financial statements of the
Borrower and the Bank which have heretofore been delivered to Lender are true
and correct and present fairly, accurately and completely the consolidated
financial position of the Borrower and the Bank and the results of their
respective operations as of the dates and for the periods for which the same
are furnished. All such financial statements have been prepared in accordance
with GAAP applied on a consistent basis. Neither the Borrower nor any
Subsidiary possesses any “loss contingency” (as that term is defined in
Financial Accounting Standards Board, Statement of Financial Accounting
Standards No. 5 - “SFAS 5”) which is required to be accrued, reflected, or
reserved against in its balance sheet or disclosed in the footnotes to such
balance sheet and which is not so accrued, reflected or reserved against or so
disclosed. There has been no material adverse change in the business,
properties, operations or condition (financial or otherwise) of the Borrower or
the Bank since the date of the financial statements which were most recently
furnished by the Borrower to Lender. No event has occurred which could
reasonably be expected to interfere substantially with the normal business
operations of the Borrower, except as disclosed in writing to Lender heretofore
or concurrently herewith;

 

(h)         the proceeds of
the Loan shall be used by the Borrower solely to make loans or capital
contributions to the Bank to enable the Bank to maintain strong capital ratios
and to leverage its balance sheet by making loans and investments, and for
general corporate purposes;

 

(i)             all operations
of the Borrower and the Bank have been carried on in accordance in all material
respects with all applicable laws, statutes, ordinances, rules and
regulations. No investigation by any governmental authority, federal, state or
local, is pending or threatened against Borrower or the Bank;

 

(j)             the Borrower
shall not merge or consolidate with or acquire all or substantially all of the
assets or operations of any financial institution whose deposits are insured by
the FDIC. The Borrower shall not acquire securities of any financial
institution that have the right to cast more than 20% of all of the votes
entitled to be cast for the election of directors of that financial
institution. In addition, the Borrow shall not acquire or enter into any
business or line of business that the Borrower in not engaged in at the Closing
Date;

 

(k)          any and all
references to the Note or Commitment Letter in any other Loan Document shall be
deemed to refer to the Note and Commitment Letter as amended by this Amendment.
This Amendment is deemed incorporated into each of the Loan Documents.

 

Any initially capitalized
terms used in this Amendment without definition shall have the meanings
assigned to those terms in the Loan Documents. To the extent that any term or
provision of this Amendment is or may be inconsistent with any term or
provision in any Loan Document, the terms and provisions of this Amendment
shall control.

 

2.             The Borrower hereby certifies that: (a) all of its
representations and warranties in the Loan Documents, as amended by this
Amendment, are, except as may otherwise be stated in this Amendment: (i) true
and correct as of the date of this Amendment, (ii) ratified and confirmed
without condition as if made anew, and (iii) incorporated into this
Amendment by reference, (b) no Event of Default or event which, with the
passage of time or the giving of notice or both, would constitute an Event of
Default, exists under any Loan Document which will not be cured by the
execution and effectiveness of this Amendment, (c) no consent, approval,
order or authorization of, or registration or filing with, any third party is
required in connection with the execution, delivery and carrying out of this
Amendment or, if required, has been obtained, and (d) this Amendment has
been duly authorized, executed and delivered so that it constitutes the legal,
valid and binding obligation of the Borrower, enforceable in accordance

 

2

 

with its terms. The Borrower
confirms that the Obligations remain outstanding without defense, set off,
counterclaim, discount or charge of any kind as of the date of this Amendment.

 

3.      The Borrower hereby confirms that any
collateral for the Obligations, including liens, security interests, mortgages,
and pledges granted by the Borrower or third parties (if applicable), shall
continue unimpaired and in full force and effect, and shall cover and secure
all of the Borrower’s existing and future Obligations to the Bank, as modified
by this Amendment.

 

4.            This Amendment may be signed in any
number of counterpart copies and by the parties to this Amendment on separate
counterparts, but all such copies shall constitute one and the same instrument.
Delivery of an executed counterpart of a signature page to this Amendment
by facsimile transmission shall be effective as delivery of a manually executed
counterpart. Any party so executing this Amendment by facsimile transmission
shall promptly deliver a manually executed counterpart, provided that any failure
to do so shall not affect the validity of the counterpart executed by facsimile
transmission.

 

5.            This Amendment will be binding upon
and inure to the benefit of the Borrower and the Lender and its respective
heirs, executors, administrators, successors and assigns.

 

6.            This Amendment has been delivered to
and accepted by the Lender and will be deemed to be made in the State where the
Lender’s office indicated in the Loan Documents is located. This Amendment will
be interpreted and the rights and liabilities of the parties hereto determined
in accordance with the laws of the State where the Lender’s office indicated in
the Loan Documents is located, excluding its conflict of laws rules.

 

7.       Except as amended hereby, the terms and
provisions of the Loan Documents remain unchanged, are and shall remain in full
force and effect unless and until modified or amended in writing in accordance
with their terms, and are hereby ratified and confirmed. Except as expressly
provided herein, this Amendment shall not constitute an amendment, waiver,
consent or release with respect to any provision of any Loan Document, a waiver
of any default or Event of Default under any Loan Document, or a waiver or
release of any of the Bank’s rights and remedies (all of which are hereby reserved).
The Borrower expressly ratifies and confirms
the confession of judgment (if applicable) and waiver of jury trial provisions
contained in the Loan Documents.

 

WITNESS the due execution of this
Amendment as a document under seal as of the date first written above.

 

	
   

  	
  FREDERICK
  COUNTY BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  R.Talley, Jr.

  
	
   

  	
  William R.Talley, Jr.

  
	
   

  	
  EVP, CFO

  
	
   

  	
   

  
	
   

  	
  ATLANTIC
  CENTRAL BANKERS BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bernadette M. Kibe

  
	
   

  	
  Bernadette M. Kibe

  
	
   

  	
  AVP, Financial Institution
  and De Novo Banking Services

  

 

3

 

	
  STATE OF 

  	
  Maryland

  	
   

  	
  :

  
	
   

  	
   :   ss

  	
   

  
	
  COUNTY OF

  	
  Frederick

  	
   

  	
  :

  
					

 

On this, the 7 day of July,
2010 before me, the subscriber, a Notary Public in and for the State and County
aforesaid, personally appeared William R. Talley, Jr., who acknowledged
himself to be the EVP, CFO, of Frederick County Bancorp, Inc. that he as
such officer, being authorized to do so, executed the foregoing Amendment to
Loan Documents on behalf of said state association for the purposes therein
contained.

 

WITNESS my hand and seal the
day and year aforesaid.

 

[SEAL]

 

	
   

  	
  /s/ Gloria Jean Poole

  
	
   

  	
  Notary
  Public

  
	
   

  	
   

  
	
   

  	
  My
  Commission Expires: Sept 1, 2010

  

 

 

	
  COMMONWEALTH OF
  PENNSYLVANIA

  	
   

  	
  :

  
	
   

  	
  : ss

  	
  [SEAL]  

  
	
  COUNTY OF CUMBERLAND

  	
   

  	
  :

  

 

On this, the 12th day of July, 2010, before me, the subscriber,
a Notary Public in and for the Commonwealth and County aforesaid, personally
appeared Bernadette M. Kibe, AVP, Financial Institution and De Novo Banking
Services of Atlantic Central Bankers Bank, a state banking institution and who
acknowledged that she as such officer, being authorized to do so, executed the
foregoing Amendment to Loan Documents on behalf of said state banking
institution for the purposes therein contained.

 

WITNESS my hand and seal the
day and year aforesaid.

 

[SEAL]

 

	
   

  	
  /s/ Jody L. Diehl

  
	
   

  	
  Notary
  Public

  
	
   

  	
   

  
	
   

  	
  My
  Commission Expires:

  

 

	
  COMMONWEALTH OF PENNSYLVANIA

  	
   

  
	
  Notarial Seal

  	
   

  
	
  Jody L. Diehl, Notary Public

  	
   

  
	
  Camp Hill Bora, Cumberland County

  	
   

  
	
  My Commission Expires July 10, 2013

  	
   

  
	
  Member, Pennsylvania Association of Notaries

  	
   

  

 

4

 

REVOLVING LINE OF CREDIT PROMISSORY NOTE AND SECURITY
AGREEMENT

(UNSECURED)

 

	
  Borrower:

  	
  Frederick County
  Bancorp, Inc.

  	
  Lender:

  	
  Atlantic Central Bankers
  Bank

  
	
   

  	
  PO Box 1100

  	
   

  	
  1400 Market Street

  
	
   

  	
  Frederick, MD 21702

  	
   

  	
  P.O. Box 1109

  
	
   

  	
   

  	
   

  	
  Camp Hill, PA 17001-1109

  

 

	
  PRINCIPAL
  AMOUNT: $4,000,000.00

  	
  DATE OF NOTE: July 22, 2009

  

 

PROMISE TO
PAY. For value received, Frederick County Bancorp, Inc. (“Borrower”), a
Maryland corporation organized as the holding company of Frederick County Bank
(the “Bank”), hereby agrees to pay to Atlantic Central Bankers Bank, a state
banking institution chartered in the Commonwealth of Pennsylvania, (“Lender”)
the sum of Four Million and No/100 Dollars ($4,000,000.00), or so much of the
principal as may be outstanding, together with interest on the outstanding
principal balance of each advance made by Lender under this Revolving Line of
Credit Promissory Note and Security Agreement (Unsecured) (“Note”) at the rate
set forth in this Note from the date of each advance by Lender under this Note
until the principal balance of each advance under this Note is paid in full.

 

1.     INTEREST. The interest rate on the principal of this Note is
subject to change from time to time based on changes in the Index set forth in
this Note. The interest rate on the Loan may or may not be the lowest rate
available at any given time by Lender to its customers. Borrower understands
that Lender may make other similar loans to other customers at interest rates
different than the interest rate provided for in this Note. The interest rate
is a variable interest rate equal to the sum of: New York Wall Street Journal
Prime Rate (the “Index”) plus one half of one percent (0.50%), subject to a
floor of four and one-quarter of one percent (4.25%). Under no circumstances
will the interest rate on this Note exceed the maximum interest permitted under
the laws of the Commonwealth of Pennsylvania. The interest rate will be
computed on a year consisting of 360 days with interest charged and billed
based on the actual number of days elapsed. Under no circumstances will the
interest rate on this Note exceed the maximum interest permitted under the laws
of the Commonwealth of Pennsylvania.

 

2.     PAYMENT. Borrower will pay this Loan in one payment of all
outstanding principal plus all accrued unpaid interest on July 22, 2010. In
addition, Borrower will pay regular monthly payments of all accrued unpaid
interest due as of each payment date, beginning September 1, 2009, with
all subsequent interest payments to be due on the same day of each month
thereafter. Unless otherwise agreed or required by applicable law, payments
will be applied first to accrued unpaid interest, then to principal and any
remaining amount to any unpaid collection costs and late charges. The annual
interest rate for this Note is computed on a 365/360 basis; that is, by
applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding. Borrower will pay Lender
at Lender’s address shown above or at such other place as Lender may designate
in writing.

 

3.     PREPAYMENT PENALTY. Borrower may at any time prepay any part
or the entire principal due under this Note without any premium or penalty. Any
prepayments shall first be applied to interest, late charges and costs, if any,
and then to principal.

 

4.     LATE CHARGE. If any payment to be made under this Note,
including any balloon payment, is fifteen (15) or more days late, a late charge
will be automatically assessed on the sixteenth day. The late charge will be
the greater of $25.00 or 5% of the payment not made.

 

5.     REPRESENTATIONS AND WARRANTIES. Borrower represents and
warrants to the best of its knowledge, information and belief as follows:

 

5.1
Judgments. There are no judgments,
injunction or similar order or decrees outstanding against Borrower and there
are no claims, actions, suits or proceedings pending or, to the knowledge of
Borrower, threatened against or affecting Borrower or its properties which, if
determined adversary to Borrower, could result in

 

1

 

any material adverse change
in Borrower’s financial condition, property or ability to perform its
obligations under this Note and other agreements, and Borrower is not, to its
knowledge, in violation of or default under any judgment, order, writ,
injunction, decree, rule or regulation of any court or governmental
agency.

 

5.2        Financial
Statements. The Borrower will furnish to Lender

 

a.     as soon as available, but
in any event not later than 90 days after the close of each fiscal year of the
Borrower, the annual audit report of the Borrower containing a consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal
year and related consolidated statements of income, cash flow, and changes in
shareholders’ equity of the Borrower and its Subsidiaries for such fiscal year,
all in reasonable detail, prepared in accordance with GAAP applied on a
consistent basis, and certified without exception or qualification by
independent certified public accountants selected by the Borrower and
satisfactory to Lender;

 

b.    as soon as available, but in
any event not later than 30 days after the close of each quarter of each fiscal
year of the Borrower, a consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such quarterly period and related consolidated
statement of income for such quarterly period and for the period from the
beginning of the current fiscal year to the end of such quarterly period,
prepared in accordance with GAAP applied on a consistent basis (excluding
disclosures in footnotes), and certified by the principal financial or accounting
officer of the Borrower (subject to normal year-end adjustments);

 

c.     concurrently with the
delivery of the financial statements referred to in clause (a) above, a
certificate of the officer who certified such statements, setting forth the
Bank’s (i) total risk-based capital ratio, (ii) Tier 1 risk-based capital
ratio, and (iii) Tier 1 leverage ratio, computed in accordance with the
regulations and policies of the Federal Reserve; and

 

d.    from time to time, such
additional financial and other information as Lender may reasonably request.

 

5.3        Capital. The Borrower will cause the Bank
at all times to be “well capitalized” as determined in accordance with the
regulations of the Federal Reserve. The Borrower will also cause the Bank to (i) have
total risk-based capital of at least 10% at all times, (ii) to have a Tier
1 risk-based capital ratio of at least 6.0% at all times, and (iii) to
have a Tier 1 leverage ratio of at least 5.0% at all times

 

5.4        Notice of Regulatory Action. The Borrower
shall promptly notify the Lender of any action or proposed action taken by any
federal or state bank regulatory agency with respect to the Borrower, the Bank
or any of its directors or officers, including without limitation any cease and
desist order, civil monetary penalty, memorandum of understanding, or consent
agreement.

 

6.     INTEREST AFTER DEFAULT. Upon default, including failure to pay
upon final maturity, Lender, at its option, may, if permitted under applicable
law, increase the variable interest rate on this Note to five percentage points
(5%) over the Index. The interest rate will not exceed the maximum rate
permitted by applicable law. If judgment is entered in connection with this
Note, interest will continue to accrue on this Note after judgment at the
interest rate applicable to this Note at the time judgment is entered.

 

7.     DEFAULT.
A default under this Note shall be defined to include one, several or all of
the following (“Events of Default”):

 

7.1         Payment Default. If the Borrower fails to
make any payment of principal and/or interest when due under this Note.

 

7.2         Enforcement Action. The Borrower, the Bank
or any of its directors or officers shall have agreed to, entered into or
become subject to any cease or desist order, or memorandum of understanding
with any federal or state bank regulatory authority having jurisdiction with
respect to the Bank or the Borrower, including without limitation the Federal
Deposit Insurance Corporation, with respect to the financial condition or
operations of the Bank or the Borrower.

 

2

 

7.3         Other Defaults. If the Borrower
fails to: (a) comply with or to perform any other term, obligation,
covenant, commitment or condition contained in this Note or in any documents
executed by Borrower in connection with this Note or in connection with the
Loan evidenced by this Note; or (b) fails to comply with or perform any
term, obligation, covenant, commitment or condition contained in any other
agreement between Borrower and Lender.

 

7.4         Default
in Favor of Third Parties. Borrower or any grantor defaults under
any loan, extension of credit, security agreement, purchase or sales agreement,
or any other agreement, in favor of any other creditor or person that may
materially affect any of Borrower’s property or Borrower’s ability to repay
this Note or perform Borrower’s obligations under this Note or any of the
related documents.

 

7.5         False
Statements. If any warranty, representation or statement made,
furnished or extended by Borrower, or on behalf of Borrower, to Lender set
forth in this Note or in any documents executed by and/or delivered by Borrower
to Lender in connection with this Note or in connection with the Loan evidenced
by this Note: (a) is untrue, false and/or misleading in any material
respect at the time the warranty, representation or statement is made; or (b) subsequently
becomes untrue, false and/or misleading in any material respect.

 

7.6         Death
or Insolvency. If the Borrower is an individual: (a) the death
of the Borrower or (b) the filing by or against Borrower of any federal
bankruptcy proceeding. If the Borrower is a general, limited or limited
liability partnership, a corporation or a limited liability company: (a) the
dissolution, whether voluntary or involuntary, of Borrower, (b) the
cessation of Borrower’s business, (c) the appointment of a receiver for
Borrower or any of Borrower’s assets, (d) the assignment by Borrower of
Borrower’s assets for the benefit of creditors, (e) the filing of any
dissolution, whether voluntary or involuntary, receivership, winding up or
liquidation proceedings by or against Borrower and/or (f) the filing by or
against Borrower of any federal and/or state insolvency and/or bankruptcy
proceeding.

 

7.7         Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower or by any governmental agency against
any collateral securing the loan. This includes a garnishment of any of
Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower
as to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

 

7.8      Events
Affecting Guarantor. Intentionally omitted.

 

7.9      Change in Ownership. Any change in
ownership interest of twenty-five percent (25%) or more of the common stock of
Borrower.

 

7.10    Adverse Change. If there is a material adverse change in the
financial condition of Borrower of this Note or a change in the value and/or
condition of any assets of borrower pledged to Lender to secure this Note,
which in the sole discretion of Lender, Lender determines to reasonably impair
the prospect of payment in full of this Note.

 

7.11    Loan to
Value & Margin Requirement. Intentionally omitted.

 

7.12    Insecurity.
Lender in good faith believes itself insecure.

 

7.13    Entry of Judgment. Entry of any judgment against Borrower and
a determination by Lender that the same, when taken together with all other
judgments outstanding against Borrower, could result in any material adverse
change in Borrower’s financial condition, property or ability to pay and
perform its obligations to Lender, unless such judgment shall have been
discharged or execution thereof stay within thirty (30) days after entry
thereof or discharged within thirty (30) days after the expiration of any such
stay.

 

8.    CONFESSION
OF JUDGMENT. Intentionally omitted.

 

3

 

9.      LENDERS RIGHTS. Upon a default,
and without the need for Lender to issue any notice to or demand upon Borrower,
except as may be required by law: (1) the entire amount of unpaid
principal and all accrued and unpaid interest, as well as all late charges and
costs, if any, shall be immediately due and payable in full, thus abrogating
any amortization provisions set forth in Paragraph 2 of this Note; (2) the
interest rate on the unpaid principal shall be automatically increased by 3.00
percentage points above the interest rate in effect on the date of default; and
(3) Lender may exercise any and all rights and remedies available to
Lender under the statutes and Rules of Civil Procedure of the Commonwealth
of Pennsylvania and as provided for in this Note. All remedies available to
Lender are cumulative. Lender is under no obligation to proceed first against
any collateral described in Paragraph 10 of this Note prior to proceeding
against Borrower or any assets of Borrower not pledged by Lender.

 

10.    RIGHT OF
SET OFF. Borrower grants to Lender a contractual security interest
in, and hereby assigns, conveys, delivers, pledges and transfers to Lender all
of Borrower’s right, title and interest in and to all of Borrower’s present and
future accounts, funds and assets of Borrower in possession of Lender, except
any trust accounts or funds or assets which Lender holds as a fiduciary, to
secure this Note. Borrower hereby authorizes and empowers Lender, to the extent
permitted by law and by this Note, to charge or setoff all sums owing on this
Note against any and all such accounts, funds and assets, and, at Lender’s
option, to administratively freeze all such accounts to allow Lender to protect
Lender’s charge and setoff rights provided for in this paragraph.

 

11.    CROSS
DEFAULT. A default under this Note is a default under all present
and future obligations, agreements, instruments and commitments of Borrower to
Lender.

 

12.    COLLATERAL.
Intentionally omitted.

 

13.    CROSS
COLLATERAL. Intentionally omitted.

 

14.    LOAN TO
VALUE RATIO. Intentionally omitted.

 

15.    INTEREST RATE ON JUDGMENT. The interest
rate on any judgment entered on this Note by confession or otherwise shall be
the default rate as defined in Paragraph 6 provided for in this Note, which is
in effect as of the date of judgment.

 

16.    JURISDICTION
AND VENUE. Borrower acknowledges that this Note was executed and delivered to
Lender and accepted by Lender at Lender’s office in Camp Hill, Pennsylvania. If
there is a lawsuit arising directly or indirectly out of or based directly or indirectly
on this Note or the Loan by Lender to Borrower evidenced by this Note, Borrower
agrees that the exclusive and sole jurisdiction and venue for any lawsuit
involving Borrower, whether as plaintiff or defendant, shall reside either in
the Court of Common Pleas of Cumberland County, Pennsylvania or the United
States District Court for the Middle District of Pennsylvania. This Note shall
be construed and interpreted under the laws of the Commonwealth of
Pennsylvania.

 

17.    WAIVER OF JURY TRIAL. Borrower knowingly and
intelligently waives any trial by jury with regards to any lawsuit arising
directly or indirectly out of or based directly or indirectly on this Note or
the Loan by Lender to Borrower evidenced by this Note, whether the lawsuit
involves Borrower as a defendant or plaintiff.

 

18.    COUNSEL
FEES AND COSTS. Borrower agrees to pay upon demand all of Lender’s
costs and expenses, including attorneys’ fees and Lender’s legal expenses,
incurred in connection with the enforcement of this Note and all documents
executed by Borrower in connection with the Loan evidenced by this Note. Lender
may pay someone else to help enforce this Note and all documents and
instruments executed by Borrower in connection with the Loan evidenced by this
Note and Borrower shall pay the costs and expenses of such enforcement. Costs
and expenses include Lender’s attorneys’ fees and legal expenses, whether or
not there is a lawsuit, and attorneys’ fees and legal expenses for any
bankruptcy proceedings (including efforts to modify or vacate any automatic
stay or injunction), appeals, and any anticipated post-judgment or post-appeal
collection services. Borrower also shall pay all court costs and such
additional fees as may be directed by the court.

 

4

 

19.    DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $30.00 if
Borrower makes a payment on Borrower’s loan and the check or preauthorized
charge with which Borrower pays is later dishonored.

 

20.    NATURE OF
LOAN. The obligation evidenced by this Note does not represent or
evidence a “consumer credit transaction” as that term is defined in Rule 2950
of Pennsylvania Rules of Civil Procedure but rather a business lending
transaction.

 

21.    WAIVERS.
Borrower hereby waives all notices with regards to this Note, including but not
limited to presentment, demand for payment, protest, notice of dishonor and/or
any notices relating to commercial paper under Article 3 of the Uniform
Commercial Code, as enacted in the Commonwealth of Pennsylvania. Additionally,
Borrower waives any and all notices required under Article 8 and/or Article 9
of the Uniform Commercial Code with regards to the collateral described in
Paragraph 12 hereof, and/or disposition of the collateral described in
Paragraph 12 hereof. Borrower hereby waives the equitable and legal doctrines
of election of remedies and marshalling of assets.

 

22.    MISCELLANEOUS PROVISIONS. The failure of
Lender to enforce any right under this Note or under any documents executed by
Borrower in connection with the Loan evidenced by this Note shall not be deemed
a waiver of Lender’s right under this Note or otherwise. Caption headings in
this Note are for convenience purposes only and are not to be used to interpret
or define the provisions of this Note and do not constitute any part of the
terms of this Note. This Note shall be binding upon the heirs, successors,
personal representatives and assigns of Borrower. This Note shall inure to the
benefit of Lender and its successors and assigns. In the event any one or more
of the provisions contained in this Note shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provision of this Note, but the
Note shall be construed as if such invalid, illegal or unenforceable provision
had never been contained therein. This Note shall be governed by, construed,
interpreted and enforced according to the laws of the Commonwealth of
Pennsylvania.

 

23.     STOCK POWER. Intentionally omitted.

 

24.     LINE OF
CREDIT. This Note evidences a revolving line of credit. Advances
under this Note, as well as directions for payment from Borrower’s accounts,
must be requested in writing by Borrower or by an authorized person. Borrower agrees
to be liable for all sums either: (a) advanced in accordance with the
instructions of an authorized person or (b) credited to any of Borrower’s
accounts with Lender. The unpaid principal balance owing on this Note at any
time may be evidenced by endorsements on this Note or by Lender’s internal
records, including daily computer printouts. Lender will have no obligation to
advance funds under this Note if: (a) Borrower or any guarantor is in
default under the terms of this Note or any agreement that Borrower or any
guarantor has with Lender, including any agreement made in connection with the
signing of this Note; (b) Borrower or any guarantor ceases doing business
or is insolvent; (c) any guarantor seeks, claims or otherwise attempts to
limit, modify or revoke such guarantor’s guarantee of this Note or any other
loan with Lender; (d) Borrower has applied funds provided pursuant to this
Note for purposes other than those authorized by Lender; or (e) Lender in
good faith believes itself insecure.

 

PRIOR TO
SIGNING THIS NOTE, EACH BORROWER HAS READ AND UNDERSTOOD ALL OF THE PROVISIONS
OF THIS NOTE. EACH BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
NOTE. THIS NOTE IS EXECUTED UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND
SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.

 

 

BORROWER

 

	
  Frederick
  County Bancorp, Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ William R. Talley, Jr.

  	
   

  
	
  Name:

  	
  William R. Talley, Jr.

  	
   

  
	
  Title:

  	
  EVP and CFO

  	
   

  

 

5

 

	
  Business Address:

  	
  9 North Market Street

  	
   

  	
   

  
	
   

  	
  Frederick, MD 21701

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Business Phone #:

  	
  240-529-1507

  	
   

  	
  Cell Phone #:

  	
  301-639-0298

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]