Document:

Employment Agreement

 
EXHIBIT 10.95

 
EMPLOYMENT AGREEMENT 
 
This Employment Agreement (“Agreement”) is by and
between Incara Pharmaceuticals Corporation, a Delaware corporation having a place of business at 79 T.W. Alexander Drive, 4401 Research Commons, Suite 200, Post Office Box 14287, Research Triangle Park, North Carolina, 27709 (the
“Corporation”), and Richard E. Gammans, Sr., Ph.D. (“Employee”). 
 
W I T N E S S E T H: 
 
WHEREAS, the Corporation has employed and desires to continue to employ the Employee as Executive Vice President, Research and Development, and the Employee desires to be employed by the Corporation as Executive Vice
President, Research and Development, all pursuant to the terms and conditions hereinafter set forth; 
 
NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants herein contained and other good and valuable
consideration the receipt of which is hereby acknowledged, the parties agree as follows: 
 

	1.	 	EMPLOYMENT; DUTIES 

 
(A)    The Corporation engages and employs the Employee, and the Employee hereby accepts engagement and employment, as
Executive Vice President, Research and Development. 
 
(B)    The Employee shall have such powers and perform all such duties as from time to time may be assigned to him by the Board of Directors (the “Board”), the Chairman of the Board, the Chief Executive
Officer or the President. 
 
(C)    The Employee shall devote such of his time and efforts as shall be necessary to the proper discharge of his duties and responsibilities under this Agreement. 
 

	2.	 	TERM 

 
The Employee’s employment hereunder shall be for the period commencing on the date of this Agreement and continuing through September
30, 2003. 
 

	3.	 	COMPENSATION 

 
(A)    As compensation for the performance of his duties under this Agreement, the Employee shall be compensated as
follows: 

 
Employee Agreement

Richard E. Gammans, Sr. Ph.D. 
Page 2 
 
(i)    The Employee shall be granted options to purchase shares of Common Stock of the Corporation as deemed appropriate by the Board or its Compensation Committee. To the maximum extent permitted by law, the
stock options shall be incentive stock options. 
 
(ii)    The Corporation shall pay the Employee an annual base salary (“Base Salary”) of two hundred fifty thousand dollars ($250,000), payable in accordance with the usual payroll period of the
Corporation. Base Salary will be adjusted periodically to reflect Employee’s then current salary, which will be subject to an annual review in the sole discretion of the Board of Directors or its Compensation Committee, provided however, that
the Base Salary may not be adjusted downward. 
 
(iii)    The Corporation shall pay the Employee bonuses, the amount of which shall be in the discretion of the Corporation, upon the achievement of substantial milestones to be mutually agreed upon from time to
time by the Chief Executive Officer, the Board of Directors or its Compensation Committee of the Board. 
 
(iv)    The Corporation shall withhold all applicable federal, state and local taxes, social security and
workers’ compensation contributions and such other amounts as may be required by law and any additional amounts agreed upon by the parties with respect to the compensation payable to the Employee pursuant to section 3(A) hereof. 
 
(B)    The Corporation shall reimburse the
Employee for all normal, usual and necessary expenses incurred by the Employee in furtherance of the business and affairs of the Corporation, including reasonable travel and entertainment, against receipt by the Corporation of appropriate vouchers
or other proof of the Employee’s expenditures and otherwise in accordance with such Expense Reimbursement Policy as may from time to time be adopted by the Board of Directors of the Corporation. 
 
(C)    The Employee shall be, during the
term of this Agreement, entitled to vacation time of four (4) weeks per year. 
 
(D)    The Corporation shall make available to the Employee and his dependents, such medical, disability, life insurance and such other health benefits as the Corporation makes
available to its senior officers. 
 

	4.	 	REPRESENTATIONS AND WARRANTIES BY THE EMPLOYEE AND CORPORATION 

 
The Employee hereby represents and warrants to the Corporation as follows: 
 
(A)    Neither the execution and delivery
of this Agreement nor the performance by the Employee of his duties and other obligations hereunder violate or will violate any statute, law, 

 
Employee Agreement

Richard E. Gammans, Sr. Ph.D. 
Page 3 
 
determination or award, or conflict with
or constitute a default under (whether immediately, upon the giving of notice or lapse of time or both) any prior employment agreement, contract, or other instrument to which the Employee is a party or by which he is bound. 
 
(B)    The Employee has the full right,
power and legal capacity to enter and deliver this Agreement and to perform his duties and other obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of the Employee enforceable against him in accordance with its
terms. No approvals or consents of any persons or entities are required for the Employee to execute and deliver this Agreement or perform his duties and other obligations hereunder. 
 
(C)    The Employee understands that some or all of the stock issuable upon exercise of
the Options received by the Employee pursuant to section 3(A) hereof may not be registered under the Securities Act of 1933 (the “1933 Act”), and acknowledges that he may be obligated to agree, as a condition to the issuance thereof, that
he will acquire such stock for his own account for investment and not with a view to, or for resale in connection with a distribution thereof, and will bear the economic risk of his investment in such stock for an indefinite period of time.

 
(D)    The Corporation
hereby represents and warrants to the Employee as follows: 
 
(i)    The Corporation is duly organized, validly existing and in good standing under the laws of the State of Delaware, with all requisite corporate power and authority to own its properties and conduct its
business in the manner presently contemplated. 
 
(ii)    The Corporation has full power and authority to enter into this Agreement and to incur and perform its obligations hereunder. 
 
(iii)    The execution, delivery and performance by the Corporation of this Agreement
does not conflict with or result in a breach or violation of, or constitute a default under (whether immediately, upon the giving of notice or lapse of time or both) the certificate of incorporation or by-laws of the Corporation, or any agreement or
instrument to which the Corporation is a party or by which the Corporation or any of its properties may be bound or affected. 
 

	5.	 	NON-COMPETITION 

 
(A)    The Employee understands and recognizes that his services to the Corporation are special and unique and agrees
that, during the term of this Agreement and, unless such termination is by the Employee pursuant to 7(A)(iii)(a) below, for a period of nine (9) months from the date of termination of his employment hereunder, he shall not in any manner, directly or
indirectly, on behalf of himself or any person, firm, partnership, joint venture, corporation or other business entity (“Person”), enter into or engage in any business engaged in the 

Employee Agreement 
Richard E. Gammans, Sr. Ph.D. 
Page 4 
 
development or commercialization of products directly competitive with products of the Corporation, including products under
development by the Corporation, either as an individual for his own account, or as a partner, joint venturer, executive, agent, consultant, salesperson, officer, director or shareholder of a Person operating or intending to operate in the areas of
therapeutics for congestive heart failure, carbohydrate-based combinatorial chemistry, the treatment of diseases by drugs which act through the modulation of superoxide dismutase, or Corporation’s future business, proposed business or future
research activities or any additional areas of business as shall be updated from time to time by the parties to take into account additional areas of business in which the Corporation may become engaged), within the geographic area of the
Corporation’s business. This Paragraph 5(A) shall not be construed to prohibit the ownership by Employee of not more than 1% of the capital stock of any corporation engaged in any of the foregoing businesses which has a class of securities
registered pursuant to the Securities Exchange Act of 1934. 
 
(B)    During the term of this Agreement and for nine (9) months thereafter, Employee shall not, directly or indirectly, without the prior written consent of the Corporation, solicit or induce any employee of the
Corporation or any affiliate to leave the employ of the Corporation or any affiliate or hire for any purpose any employee of the Corporation or any affiliate or any employee who has left the employment of the Corporation or any affiliate within nine
months of the termination of said employee’s employment with the Corporation; or 
 
(C)    In the event that the Employee breaches any provisions of this Section 5 or there is a threatened breach, then, in addition to any other rights which the Corporation may
have, the Corporation shall be entitled to seek injunctive relief to enforce the restrictions contained herein. In the event that an actual proceeding is brought in equity to enforce the provisions of this Section 5, the Corporation shall not be
prevented from seeking any other remedies which may be available. 
 

	6.	 	CONFIDENTIALITY AND INVENTIONS 

 
Employee agrees to comply with the provisions of his Employee Agreement dated April 5, 2000 signed at the commencement of employment,
which provisions are incorporated herein by reference and are made part of this Agreement as if they were explicitly set forth herein. 
 

	7.	 	TERMINATION 

 
(A)    The Employee’s employment pursuant to this Agreement shall continue for the period set forth in Section 2
hereof unless sooner terminated upon the first to occur of the following events: 
 
(i)    The death of the Employee; 

Employee Agreement 
Richard E. Gammans, Sr. Ph.D. 
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(ii)    Termination by the Board of Directors of the Corporation for cause. Any of the
following actions by the Employee shall constitute cause: 
 
(a)    Material breach by the Employee of Section 5 or Section 6 of this Agreement; 
 
(b)    Material breach by the Employee of any provision of this Agreement other than Section 5 or Section 6 or the
willful or reckless failure by Employee to perform his duties hereunder which breach or failure is not cured by the Employee within fifteen (15) days notice thereof from the Corporation; or 
 
(c)    The commission by the Employee of
an act of fraud or theft against the Corporation or any of its subsidiaries, or the conviction of Employee of any criminal act; 
 
(iii)    Termination by the Employee for cause. Material breach by the Corporation of any provision of this Agreement
which is not cured by the Corporation within fifteen (15) days of written notice thereof from the Employee shall constitute cause; or 
 
(iv)    Termination by the Board of Directors, the President, or the Chief Executive Officer of the Corporation
without cause. 
 
(B)    Upon
termination by the Board without cause pursuant to Section 7(A)(iv) or by Employee for cause pursuant to Section 7(A)(iii) or upon termination resulting from Employee’s death pursuant to Section 7(A)(i), Employee (or his estate in the event of
a termination pursuant to Section 7(A)(i)) will be entitled to the following: 
 
(i)    all vested compensation then due and owing; 
 
(ii)    as of the date of the termination, the Corporation will pay, at the option of the Corporation, either (i) a
lump sum equal to (A) the product of 9/12 times Employee’s then current Base Salary, plus (B) a bonus equal to the product of 9/12 times Employee’s then current Base Salary times the average of the actual annual bonus percentages paid to
Employee for the two (2) years immediately prior to the date of the termination (“Prorated Bonus”), or (ii) nine (9) equal monthly payments equal to the total sum of (A) 9/12 times the Employee’s then current Base Salary, plus (B) the
Prorated Bonus; and 
 
(iii)    Corporation will continue to pay for his, or his heirs’, COBRA premiums and the premium for his executive disability insurance coverage, if applicable, for a period of nine (9) months commencing as
of the date of termination. 

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Richard E. Gammans, Sr. Ph.D. 
Page 6 
 
(C)    Employee may terminate his employment with the Corporation at any time, without
cause, upon two weeks written notice to his supervisor. In such event, Employee shall not be entitled to any benefits under this Agreement, but shall be entitled upon termination to such benefits, if any, as are granted by law or pursuant to the
Corporation’s policies, in each case, as in effect on the date the notice of termination is given by Employee. 
 
(D)    Termination of employment under this Agreement by either party, for any reason, shall not affect the
Employee’s obligations under Sections 5 and 6 hereof, all of which shall survive such termination in accordance with their respective terms. 
 

	8.	 	NOTICES 

 
Any notice or other communication under this Agreement shall be in writing and shall be deemed to have been given: when delivered
personally against receipt therefor; one (1) day after being sent by Federal Express or similar overnight delivery; or three (3) days after being mailed registered or certified mail, postage prepaid, return receipt requested, to either party at the
address set forth above, or to such other address as such party shall give by notice hereunder to the other party. 
 

	9.	 	RENEWAL OF AGREEMENT 

 
Upon expiration of the term of this Agreement, this agreement may be renewed for additional one (1) year periods by the parties by mutual
written agreement. 
 

	10.	 	SEVERABILITY OF PROVISIONS 

 
If any provision of this Agreement shall be declared by a court of competent jurisdiction to be invalid, illegal or incapable of being
enforced in whole or in part, such provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable law and the remaining conditions and provisions or portions thereof shall nevertheless remain
in full force and effect and enforceable to the extent they are valid, legal and enforceable, and no provision shall be deemed dependent upon any other covenant or provision unless so expressed herein. 
 

	11.	 	ENTIRE AGREEMENT MODIFICATION 

 
This Agreement contains the entire agreement of the parties relating to the subject matter hereof, and the parties hereto have made no
agreements, representations or warranties relating to the subject matter of this Agreement which are not set forth herein. No modification of this Agreement shall be valid unless made in writing and signed by the parties hereto. 

Employee Agreement 
Richard E. Gammans, Sr. Ph.D. 
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	12.	 	BINDING EFFECT 

 
The rights, benefits, duties and obligations under this Agreement shall inure to, and be binding upon, the Corporation, its successors and
assigns, and upon the Employee and his legal representatives. This Agreement constitutes a personal service agreement, and the performance of the Employee’s obligations hereunder may not be transferred or assigned by the Employee. 
 

	13.	 	NON-WAIVER 

 
The failure of either party to insist upon the strict performance of any of the terms, conditions and provisions of this Agreement shall
not be construed as a waiver or relinquishment of future compliance therewith, and said terms, conditions and provisions shall remain in full force and effect. No waiver of any term or condition shall be effective for any purpose whatsoever unless
such waiver is in writing and signed by such party. 
 

	14.	 	GOVERNING LAW 

 
This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware without regard to
principles of conflict of laws. 
 

	15.	 	HEADINGS 

 
The headings of paragraphs are inserted for convenience and shall not affect an interpretation of this Agreement. 
 
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the later of the following dates. 
 

	 INCARA PHARMACEUTICALS
 CORPORATION
  
	 	 	 	 
	
	 By:
	 	 Clayton I. Duncan        

	 	 	 	 By:
	 	 Richard E. Gammans, Sr.
        

	 Name:
	 	 Clayton I. Duncan
	 	 	 	 	 	 RICHARD E. GAMMANS, SR, PH.D.

	 Title:
	 	 President and Chief Executive Officer
	 	 	 	 	 	 
	
	 Date:
	 	 March 7, 2003        

	 	 	 	 Date:
	 	 March 7, 2003<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS AGREEMENT (this "Agreement") is being entered into and effective
this 16th day of June, 2000, by, between and among FIRST COMMUNITY BANK
CORPORATION OF AMERICA, a Florida corporation (the "Company"), FIRST COMMUNITY
BANK OF AMERICA (the "Bank"), and KENNETH P. CHERVEN ("Cherven").

                       SECTION 1. EMPLOYMENT OF EXECUTIVE

         1.1 Executive Employment. The Company employs Cherven as President and
Chief Executive Officer of the Company, and the Bank hereby employs Cherven as
Chief Executive Officer of the Bank; and Cherven accepts such employment upon
the terms and conditions set forth within this Agreement. During the period of
his employment, Cherven agrees to devote his expertise, skills and his best and
undivided efforts for the exclusive benefit of the Company and the Bank in the
performance of his duties and responsibilities.

         1.2 Term of Employment. The initial term of employment pursuant to this
Agreement shall begin on July 5, 2000, and end on July 3, 2005 (the "Term"). If
this Agreement has not been previously terminated, at the expiration of the
Term, this Agreement shall continue until terminated by either party on one
hundred eighty (180) days prior notice to the other.

         1.3 Duties and Responsibilities. During the Term, Cherven shall be
responsible for the executive management of the Company and the Bank, including,
without limitation, the execution of such business plans as shall be approved by
the Board of Directors or the Executive Committee of the Board, the engagement,
termination and supervision of other executive officers and employees of the
Company and the Bank and such other duties and responsibilities as may be
reasonably assigned to him from time to time by the Board of Directors and/or
Executive Committee of the Board of the Company or the Bank, respectively. The
Company shall appoint Cherven as a Director of the Bank and shall nominate
Cherven as a Director of the Company and use its best efforts to elect him as a
Director during the Term. During the Term, Cherven shall not be required to
relocate his personal residence from Pinellas County, Florida, provided,
however, that Cherven may be required to travel, at the Company's expense, for
the business of the Company as reasonably necessary.

                         SECTION 2. TERMS OF EMPLOYMENT

         2.1 Compensation

         (a) Salary. During the first of the Term, the Company shall pay Cherven
as compensation for all services rendered hereunder, a base salary of
$140,000.00. Cherven's salary shall be adjusted on an annual basis thereafter
following a performance review conducted by the Board of Directors. Salary
payments shall be made in the same manner as the Company routinely pays its
other executive employees, but in any event no less frequently than once per
calendar month. All applicable income, social security and other taxes and
charges which are require by law to be withheld by the Company or which are
requested to be withheld by

<PAGE>

Cherven, shall be deducted form the base salary in accordance with the Company's
normal payroll practice for its salaried executives from time to time in effect.

         (b) Minimum Annual Bonus. Cherven shall receive an annual bonus payable
within forty-five days (45) after the end of each year during the Term provided
that he satisfies the pre-determined performance goals. Such goals shall be
mutually agreed upon by the parties on an annual basis, with the expectation
that such goals shall be achievable and achieved during each year of the Term.
The minimum bonus for the first year for the Term shall be twenty percent (20%)
of the base salary.

         (c) Annual Discretionary Bonus. Cherven shall be eligible for an
additional bonus during each year of the Term in the sole discretion of the
Board of Directors.

         (d) Grant of Stock Options. Provided Cherven satisfactorily meets
performance standards as agreed upon from time to time by the Chief Executive
Officer of the Company, the Board of Directors of the Company and Cherven, the
Company hereby grants to Cherven options to purchase 100,000 shares of the
Company's Class B Common Stock, at an exercise price of $10.00 per share. Such
options shall be incentive stock options, as defined in Section 422 of the
Internal Revenue Code of 1986, as amended. The options shall vest in accordance
with the following schedule, and each option shall be exercisable upon vesting:

                           Options Vested for Numbers
Date Granted               of Shares of Stock                 Date of Vesting
------------               ------------------                 ---------------
July 5, 2000               20,000                             July 5, 2000
February 15, 2001          10,000                             July 5, 2001
February 15, 2002          10,000                             July 5, 2002
February 15, 2003          10,000                             July 5, 2003
February 15, 2004          10,000                             July 5, 2004
February 15, 2005          10,000                             July 5, 2005
February 15, 2006          10,000                             July 5, 2006
February 15, 2007          10,000                             July 5, 2007
February 15, 2008          10,000                             July 5, 2008

Each of the above-described options shall expire on the sixth (6th) anniversary
of the date such option is granted (the "Date Granted"). Provided, should this
Agreement terminate for Good Cause, Good Reason or by mutual agreement of the
parties hereto, Cherven shall exercise all of the options described above within
six (6) months of such termination date; thereafter, all such options shall
espier and become null and void. The Company and Cherven shall enter into a
stock option agreement containing customary terms and provisions and
incorporating the provisions of the Company's incentive stock option plan.

         2.2 Termination. During the Term, if the Company terminates Cherven's
employment for other than Good Cause or if Cherven resigns for Good Reason, the
Company shall continue to pay compensation and benefits to Cherven at the same
rate and on the same dates as prior to such termination through the end of the
Term ("Severance Payment"). If the Company terminates Cherven's employment for
Good Cause or if employment is terminated as a result of death, Disability or
voluntary resignation of employment prior to the end of the Term,

<PAGE>

then the Company shall pay to Cherven only such compensation, vacations and
benefits as shall have accrued through the actual date of termination of
employment. In the event that Cherven is entitled to a Severance Payment
pursuant to this Section 2.2 and Cherven secures employment at any time during
the remaining term of this Agreement following termination (the "Severance
Period"), then the Company shall be entitled to a credit against its obligation
to make the Severance Payment in the amount of up to seventy-five percent (75%)
of Cherven's cumulative salary during the Severance Period earned from or
otherwise paid to him by his new employer.

         Should Company fail to pay any of the Severance Payment when due,
Cherven shall have the option of (a) seeking to enforcement payment of such
Severance Payment by Company with all terms of this Agreement remaining
enforceable by either party or (b) waiving his right to seek enforcement of such
Severance Payment in consideration for the automatic termination of Section
5.1(b) "Covenant Not to Compete".

         2.3 Company Benefits. The Company agrees that Cherven will participate
in all fringe benefit programs of the company form the earliest date of
eligibility under such programs, including all group health, long term
disability, life insurance and retirement plans which may be in effect at the
time of , or from time to time during, his employment. The premiums for fully
paid medical benefits for Cherven and his family shall be paid by the company as
shall a $500,000.00 term life insurance policy payable to Cherven's
beneficiaries under his estate plan. Cherven shall be eligible to participate in
the company's 401(k) plan on October 1, 2000 (provided Cherven's start date is
on or before July 5, 2000).

         2.4 Vacation. Cherven shall be entitled to three weeks of paid vacation
per year during his Term. In addition, he shall also attend the Florida Banker's
Association Annual Conference, and fulfill his commitment to teach at the
Florida School of Banking for one week each year for the next three years.

         2.5 Automobile. The company shall provide Cherven with an automobile
allowance of $600.00 per month. Cherven shall be responsible for all insurance
and maintenance charges.

         2.6 Country Club Membership. Cherven shall be reimbursed for the dues
and other membership assessments (but not initiation dues) for one country club
or tennis club.

         2.7 Resources. Cherven shall be provided with an appropriate office and
secretary and support staff in order to carry out his duties and
responsibilities as President and Chief Executive Officer of the Company and
Chief Executive Officer of the Bank.

         2.8 Expenses. Cherven shall be issued and authorized to use a corporate
credit card for all necessary and reasonable expenses, including travel and
entertainment expenses, incurred by him in furtherance of the performance of his
duties and responsibilities.

<PAGE>

                             SECTION 3. DEFINITIONS

         As used in this Agreement, the following terms have the following
meaning:

         3.1 Disability means the inability, by reason of physical or mental
infirmity, or both, of Cherven to perform any of his duties hereunder in a
meaningful manner, for a period of six consecutive months beginning on the date
of the first physical or mental infirmity, or both. The determination of the
occurrence of such a Disability will be made in writing by a licensed physician
selected by Cherven and reasonably acceptable to the Company residing in or near
St. Petersburg, Florida.

         3.2 Good Cause means the occurrence of any of the following: (i)
Cherven's conviction of, or plea of guilty of nolo contendere to, a felony or a
crime of falsehood or involving moral turpitude; or (ii) refusal or inability of
Cherven to substantially perform such duties as may be assigned to him from time
to time by the Board of Directors and/or Executive Committee of the Board of
Directors, other than a failure resulting form Cherven's incapacity as a result
of Disability, following notice from the Board of Directors of the Company or
the Bank, as the case may be, to perform such duties.

         3.3 Good Reason means to Company or the Bank (i) demotes or otherwise
elects or appoints Cherven to a lesser officer or capacity than that specified
in his employment agreement or fails to elect or appoint him to such officers or
capacities; (ii) reduces Cherven's base salary or minimum annual bonus; (iii)
materially reduces Cherven's benefits under any employee benefit plan, program
or arrangement of the Company or the Bank (other than a change that affects all
employees similarly situated) from the level in effect upon Cherven's
commencement or participation; (iv) requires Cherven to relocate from the
Pinellas County, Florida area or travel for extended periods or time; or (v)
commits any other material breach of the provisions of this Agreement and
Cherven provides at least 10 days' prior written notice to the Board of
Directors of the Company or the Bank, as the case may be, of the existence of
such breach and his intention to terminate this Agreement and such breach is not
cured within 20 days of the date of such notice.

                            SECTION 4. MISCELLANEOUS

         4.1 Severability. If any provision of this Agreement is deemed to be
invalid or unenforceable or is prohibited by the laws of the state or place
where it is to be performed, this Agreement shall be considered divisible as to
such provision and such provision shall be inoperative in such state or place
and shall not be part of the consideration moving from either of the parties to
the other. The remaining provisions of this Agreement, however, shall be valid
and not binding and of like effect as though such provision were not included.

         4.2 Binding Effect. The Agreement shall inure to the benefit of and be
binding upon the Company, its successors and assigns, including, without
limitation, any person, partnership, the Company or corporation which may
acquire substantially all of the Company's assets or business or with or into
which the Company may be liquidated, consolidated, merged or

<PAGE>

otherwise combined. In addition, this Agreement shall inure to the benefit of
and be binding upon executive, his heirs, distributees and personal
representative.

         4.3 Entire Agreement Amendment. This Agreement supersedes all pervious
agreements between Cherven and the Company. This Agreement cannot be amended,
modified or supplemented in any respect except by a subsequent written agreement
executed by both parties.

         4.4 Waiver of Breach. The waiver by the Company or Bank of a breach of
any provision of the Agreement by Cherven shall not operate of be construed as a
waiver of any subsequent breach of the same or any other provision by Cherven.

         4.5 No Breach of Existing Contracts. Cherven warrants and represents to
the Company and Bank that the execution of the Agreement, his employment with
the Company and Bank, and the performance of the duties herein described, does
not and will not result in the breach or violation of any employment agreement
or any other agreement, written or oral, to which Cherven is or has been a
party.

         4.6 Notices. Any notice given hereunder shall be in writing and
delivered personally or by mail, sent either by registered or certified mail,
return receipt requested:

         To the Bank:        First Community Bank Corporation of America

                             6100 4th Street North

                             St. Petersburg, FL 33703 Attention:
                             Ralph E. Stevens, Jr. President

         To the Company:     First Community Bank of America
                             6100 4th Street North
                             St. Petersburg, FL 33703
                             Attention:_______________________

         To Cherven:         Kenneth P. Cherven
                             9401 Merrimoor Blvd.
                             Largo, FL 33777

         Notices sent by hand delivery shall be deemed effective on the date of
hand delivery. Notices sent by overnight carrier shall be deemed effective on
the next business day after being placed into the hands of the overnight
carrier. Notices sent by registered or certified mail shall be deemed effective
on the third business day after being deposited into the post office.

         4.7 Headings. Headings in this Agreement are for convenience only and
shall not be used to interpret or construe its provisions.

         4.8 Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Florida (other than the choice of law principles
thereof). Both parties submit to the jurisdiction of the U.S. District Court for
the Middle District of Florida and the Circuit Court

<PAGE>

in and for Pinellas County, Florida, as the exclusive proper forum in which to
adjudicate any case or controversy arising hereunder.

         4.9 Counterparts. The Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

                          SECTION 5. EMPLOYEE COVENANTS

         5.1 Restrictive Covenants.

         (a) Anti-Piracy. Cherven hereby expressly covenants and agrees, which
covenants and agreements are of the essence of the Agreement, that he will not,
during the term of this Agreement and for a period of two (2) years immediately
following the termination of this Agreement, for any reason whatsoever, directly
of indirectly, for himself, or on behalf of, or in conjunction with, any other
person, persons, company, partnership or corporation:

         (1) call upon any customer or customers of Company and/or Bank
         solicited or contacted by Cherven while at the Company and/or Bank,
         pursuant to his employment hereunder, for the purpose of soliciting,
         selling or servicing any programs or services of the type sold and
         serviced by Company and/or Bank during the term hereof;

         (2) nor will Cherven divert, solicit or take away any customer or
         customers of Company and/or Bank or the business or patronage or any
         such customers of the company and/or Bank during the term hereof;

         (3) nor will Cherven call upon Prospective Customer (as hereafter
         defined) or customers of the Company and/or Bank, for the purpose of
         soliciting, selling or servicing programs or services of the type sold
         and serviced by Company and/or Bank during the term hereof within
         thirty-five (35) miles of the Bank's office (the "Restrictive Area"),
         whose address is set forth in the Notices provision of this Agreement.
         For the purposes of this Agreement, prospective customers are defined
         as those prospects that, during any part of the six (6) month period
         next preceding his termination under this Agreement were:

                  (i)      Called upon by Cherven or Cherven's staff, two (2) or
                           more times, or

                  (ii)     Listed by Cherven or Cherven's staff, as active
                           potential prospects on Cherven's sales call reports;

         (4) nor upon termination of Cherven's employment form Company and/or
         Bank, whether by resignation, discharge, or otherwise, and for a period
         of two (2) years from the date of termination, shall Cherven, directly
         or indirectly, for himself or herself or on behalf of, or in
         conjunction with, any other person, persons, Company and/or Bank,
         partnership or corporation: solicit, approach, or call upon any Company
         and/or Bank, partnership or corporation: solicit, approach, or call
         upon any Company and/or Bank Cherven for the

<PAGE>

         purpose of retaining or hiring the company and/or Bank Cherven in any
         capacity within the Restrictive Area.

         (b) Covenant Not to Compete. Cherven hereby expressly covenant and
agrees, which covenants and agreements are the essence of this Agreement, that
Cherven will not, during the term of this Agreement and for a period of two (2)
years immediately following the termination of this Agreement, for any reason
whatsoever, directly or indirectly own, manage, operate, control, be employed
by, participate in, or be connected in any manner whatsoever whether as an
individual, partner, officer, director, employee, advisor, consultant, agent,
representative or a corporation, trustee or fiduciary with the ownership,
management, operation or control of any business any part of which is
competitive with the business conducted by the Company and/or Bank within the
Restrictive Area.

         (c) Legal Remedies. In the event of a breach or threatened breach by
Cherven of the provisions of this Section 5, Company and/or Bank shall be
entitled to an injunction restraining Cherven from directly or indirectly
competing with the company and/or Bank or soliciting, approaching, or calling
upon any employee or customers or hiring the employee in any capacity; and, in
addition to obtaining and injunction, Company and/or Bank shall be entitled to
recover damages from Cherven. In the event any Court determines the specified
time period to be unreasonable, arbitrary, or against public policy, a lesser
time period to be unreasonable, arbitrary, or against public policy, a lesser
time period which is determined to be reasonable, non-arbitrary and not against
public policy may be enforced against Cherven by injunction, as well as by all
other legal remedies available to Company and/or Bank. In the event of any legal
action in connection with this Agreement, the prevailing party shall be entitled
to recover all of its legal expenses, including reasonable attorney's fees and
costs, whether the same are incurred in connection with trial or during an
appeal and to have the same awarded as part of the judgment in the proceeding in
which such legal expenses and attorney's fees were incurred.

         (d) Nondisclosure. Cherven recognizes and acknowledges that the list of
the Company and/or Bank's customers, trade secrets, data processing systems,
computer software, computer programs, or other systems, data, methods, or
procedures developed or used by the Company and/or Bank, as they may exist from
time to time, are valuable, special and unique assets of the Company and/or
Banks' business. Cherven will not, during or after the term of his employment
without the prior written consent of the Company and/or Bank, which consent may
be withheld in Company and/or Bank's sole discretion, and except to the extent
necessary to accomplish assignments on behalf of the Company and/or bank in
which Cherven is, at any given time during the term of Cherven's tenure with the
Company and/or Bank, currently and actively engaged, possess, transmit, copy,
reproduce, or disclose the list of the company and/or Bank's customers or any
part thereof or identify any of the loan officers for the Company and/or Bank or
any of the Company and/or Bank's present or future trade secret, or any data
processing systems, computer software, computer programs or other systems, data
methods, or procedures to any person, firm, corporation, association, or any
other entity for any reason or purpose whatsoever, nor will the undersigned
assist anyone else to do so. In the event of a breach or threatened breach by
Cherven of disclosing, in whole or in part, the list of the Company and/or
Bank's Customers or the Company and/or Bank's trade secrets, or from rendering
any services to any person, firm, corporation, association, or other entity to
whom such list or such trade secrets,

<PAGE>

in whole or in part, has been disclosed or is threatened to be disclosed and
requiring the return to the Company and/or Bank of all copies of customer lists,
manuals, data, software, computer programs, or written procedures in the
possession of Cherven. Nothing herein shall be construed as prohibiting the
Company and/or Bank from pursuing any other remedies available to it for such
breach or threatened breach, including the recovery of damages from Cherven. The
existence of any claim or cause of action of Cherven against the Company and/or
Bank shall not constitute a defense to the enforcement by the Company and/or
bank of this Covenant. No failure of the company and/or Bank to exercise any
right given hereunder shall be taken or construed as a waiver of its right to
seek any remedies by reason of any past, present, or future breaches of the
Agreement on the part of Cherven.

         5.2 Severability of Restrictive Covenants. Company, Bank and Cherven
agree that the restrictive covenants contained in this Section 5, or any of its
sub-paragraphs, are severable and separate and the unenforceability of any
specific covenant therein shall not affect the validity of any other covenants
set forth therein. These covenants on the part of the Cherven shall be construed
as an agreement independent of any other provision of this Agreement, and the
existence of any claim or cause of action of the Cherven against Company and/or
Bank, whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company and/or Bank of said covenants. Cherven
agrees and acknowledges that any violation by Cherven of the covenants set forth
in this Section 5 hereof would cause irreparable damages to Company and/or Bank,
and Cherven further agrees that upon proof of the existence of such a violation
of the covenants set forth in this Section 5 Company and/or Bank will be
entitled to injunctive relief against the Cherven by any Court of competent
jurisdiction. In the event any Court of competent jurisdiction should determine
that the territorial restrictions set forth in this Section 5 and/or their
duration, shall be limited to such territory and/or duration as may be
determined reasonable by a Court of Competent jurisdiction.

         IN WITNESS WHEREOF, the parties hereto have executed or caused this
Agreement to be executed by and through their duly authorized representative as
the day and year first above written.

                                         FIRST COMMUNITY BANK
                                         CORPORATION OF AMERICA
Attest:

                                         By:   /s/ Ralph E. Stevens
-----------------------------------            --------------------------------
                       , Secretary             Ralph E. Stevens, Jr. President
-----------------------

FIRST COMMUNITY BANK OF AMERICA
Attest:

<PAGE>

                                         By:   /s/
-----------------------------------            --------------------------------
                       , Secretary             President
-----------------------

Witness:  /s/                            /s/ KENNETH P. CHERVEN
          -------------------------      --------------------------------------
                                         KENNETH P. CHERVEN

/s/
---------------------------------

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