Document:

EXHIBIT 10.7

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

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of
the 31st day of December, 2000, by and between EagleBank, a Maryland corporation
("Eagle"), and Martha Foulon-Tonat ("Tonat").

                                     RECITAL
                                     -------

     Eagle desires to retain Tonat as the Senior Vice President and Chief
Lending Officer of Eagle and Tonat desires to accept such employment, all upon
the terms and conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the recital, the mutual covenants
and agreements herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to this
Agreement, intending to be legally bound, agree as follows:

         1.       Certain Definitions. As used in this Agreement, the following
terms have the meanings set forth below:

                  1.1 "Commencement Date" means December 31, 2000.

                  1.2 "Bank Regulatory Agency" means any governmental authority,
                  regulatory agency, ministry, department, statutory
                  corporation, central bank or other body of the United States
                  or of any other country or of any state or other political
                  subdivision of any of them having jurisdiction over Eagle or
                  any transaction contemplated, undertaken or proposed to be
                  undertaken by Eagle, including, but not necessarily be limited
                  to:

                  (a) the Federal Deposit Insurance Corporation or any other
                  federal or state depository insurance organization or fund;

                  (b) the Federal Reserve System, the Comptroller of the
                  Currency, the Maryland Division of Financial Institutions, or
                  any other federal or state bank regulatory or commissioner's
                  office;

                  (c) any Person established, organized, owned (in whole or in
                  part) or controlled by any of the foregoing; and

                  (d) any predecessor, successor or assignee of any of the
                  foregoing.

                  1.3 "Board" means the Board of Directors of Eagle.

                  1.4 "Bylaws" means the Bylaws of Eagle as in effect from time
                  to time.

                  1.5 "EBI" means Eagle Bancorp, Inc., a Maryland corporation.

                  1.6 "Person" means any individual, firm, association,
                  partnership, corporation, limited liability company, group,
                  governmental agency or other authority, or other organization
                  or entity.

         2.       Employment; Term.

                  2.1 Position. Eagle hereby employs Tonat to serve as the
                  Senior Vice President and Chief Lending Officer of Eagle.
<PAGE>

                  2.2 Term. The term of this Agreement and Tonat's employment
                  hereunder shall commence with the Commencement Date and
                  continue until December 31, 2003 (the "Term"), unless sooner
                  terminated in accordance with the provisions of this
                  Agreement.

         3.       Duties of  Tonat.

                  3.1 Nature and Substance. Tonat shall report directly to and
                  shall be under the direction of the President and Chief
                  Executive Officer of Eagle. The specific powers and duties of
                  Tonat shall be established, determined and modified by and
                  within the discretion of the Board.

                  3.2 Performance of Services. Tonat agrees to devote her full
                  business time and attention to the performance of her duties
                  and responsibilities under this Agreement, and shall use her
                  best efforts and discharge her duties to the best of her
                  ability for and on behalf of Eagle and toward its successful
                  operation. Tonat shall comply with all laws, statutes,
                  ordinances, rules and regulations relating to her employment
                  and duties. During the Term of this Agreement, Tonat shall not
                  at any time or place directly or indirectly engage or agree to
                  engage in any business or practice related to the banking
                  business with or for any other Person to any extent
                  whatsoever, other than to the extent required by the terms and
                  conditions of this Agreement. Tonat agrees that while employed
                  by Eagle she will not without the prior written consent of the
                  Board, engage, or obtain a financial or ownership interest, in
                  any other business, employment, consulting or similar
                  arrangement, or other undertaking (an "Outside Arrangement")
                  if such Outside Arrangement would interfere with the
                  satisfactory performance of Tonat's duties to Eagle, present a
                  conflict of interest with Eagle, breach Tonat's duty of
                  loyalty or fiduciary duties to Eagle, or otherwise conflict
                  with the provisions of this Agreement; provided, however, that
                  Tonat shall not be prevented from investing Tonat's assets in
                  such form or manner as would not require any services on the
                  part of Tonat in the operation or the affairs of the entities
                  in which such investments are made and provided such
                  investments do not present a conflict of interest with Eagle.
                  Tonat shall promptly notify the Board of any Outside
                  Arrangement and provide Eagle with any written agreement in
                  connection therewith.

         4.       Compensation Benefits. As full compensation for all services
                  rendered pursuant to this Agreement and the covenants
                  contained herein, Eagle shall pay to Tonat the following:

                  4.1 Salary. Beginning on the Commencement Date, Tonat shall be
                  paid a salary ("Salary") of One Hundred Seven Thousand Five
                  Hundred Dollars ($107,500.00) on an annualized basis. Eagle
                  shall pay Tonat's Salary in equal installments in accordance
                  with Eagle's regular payroll periods as may be set by Eagle
                  from time to time. Tonat's salary shall be further increased
                  from time to time at the discretion of the Board. Tonat shall
                  also be entitled to certain incentive bonus payments as
                  determined by the Board in its sole discretion.

                  4.2 Withholding. Payments of Salary shall be subject to the
                  customary withholding of income and other employment taxes as
                  is required with respect to compensation paid by an employer
                  to an employee.

                  4.3 Vacation and Leave. Tonat shall be entitled to such
                  vacation and leave as may be provided for under the current
                  and future leave and vacation policies of Eagle for executive
                  officers.

                  4.4 Office Space. Eagle will provide customary office space
                  and office support to Tonat beginning on the Commencement
                  Date.

                  4.5 Insurance. Eagle will provide Tonat with group health,
                  disability and other insurance as Eagle may determine
                  appropriate and arrange for all employees of Eagle.
<PAGE>

                  4.6 Expenses. Eagle shall promptly upon presentation of proper
                  expense reports therefor reimburse Tonat, in accordance with
                  the policies and procedures established from time to time by
                  Eagle for its senior executive officers, for all reasonable
                  and customary travel (other than local use of an automobile
                  for which Tonat will be provided a car allowance) and other
                  out-of-pocket expenses incurred by Tonat in the performance of
                  her duties and responsibilities under this Agreement and
                  promoting the business of Eagle, including appropriate
                  membership fees, dues and the cost of attending meetings and
                  conventions.

                  4.7 Retirement Plans. Tonat shall be entitled to participate
                  in any and all qualified pension or other retirement plans of
                  Eagle which may be applicable to executive personnel of Eagle.

                  4.8 Other Benefits. While this Agreement is in effect, Tonat
                  shall be entitled to all other benefits that Eagle provides
                  from time to time to its senior executive officers, including,
                  but not limited to, any stock option plan and other incentive
                  plans.

                  4.9 Eligibility. Participation in any health, life, accident,
                  disability, medical expense or similar insurance plan or any
                  qualified pension or other retirement plan shall be subject to
                  the terms and conditions contained in such plan. All matters
                  of eligibility for benefits under any insurance plans shall be
                  determined in accordance with the provisions of the applicable
                  insurance policy issued by the applicable insurance company.

         5.       Conditions Subsequent to Continued Operation and Effect of
Agreement.

                  5.1 Continued Approval by Bank Regulatory Agencies. This
                  Agreement and all of its terms and conditions, and the
                  continued operation and effect of this Agreement and Eagle's
                  continuing obligations hereunder, shall at all times be
                  subject to the continuing approval of any and all Bank
                  Regulatory Agencies whose approval is a necessary prerequisite
                  to the continued operation of Eagle. Should any term or
                  condition of this Agreement, upon review by any Bank
                  Regulatory Agency, be found to violate or not be in compliance
                  with any then-applicable statute or any rule, regulation,
                  order or understanding promulgated by any Bank Regulatory
                  Agency, or should any term or condition required to be
                  included herein by any such Bank Regulatory Agency be absent,
                  this Agreement may be rescinded and terminated by Eagle if the
                  parties hereto cannot in good faith agree upon such additions,
                  deletions, or modifications as may be deemed necessary or
                  appropriate to bring this Agreement into compliance.

         6.       Termination of Agreement. This Agreement may be terminated
prior to expiration of the Term as provided below.

                  6.1      Definition of Cause. For purposes of this Agreement,
                  "Cause" means:

                           (a) any act of theft, fraud, intentional
                           misrepresentation or similar conduct by Tonat in
                           connection with or associated with the services
                           rendered by Tonat to Eagle under this Agreement;

                           (b) any failure of this Agreement to comply with any
                           Bank Regulatory Agency requirement which is not cured
                           in accordance with Section 5.1 within a reasonable
                           period of time after written notice thereof;

                           (c) any Bank Regulatory Agency action or proceeding
                           against Tonat as a result of her negligence, fraud,
                           malfeasance or misconduct;

                           (d) any of the following conduct on the part of Tonat
                           that Tonat has not been corrected or cured within
                           thirty (30) days after having received written notice
                           from Eagle detailing and describing such conduct:
<PAGE>

                                     (i)      the use of drugs, alcohol or other
                                              substances by Tonat to an extent
                                              which materially interferes with
                                              or prevents Tonat from performing
                                              Tonat's duties under this
                                              Agreement;

                                     (ii)     failure by or the inability of
                                              Tonat to devote full time,
                                              attention and energy to the
                                              performance of Tonat's duties
                                              pursuant to this Agreement (other
                                              than by reason of her death or
                                              disability);

                                     (iii)    intentional material failure by
                                              Tonat to carry out the explicit
                                              lawful and reasonable directions,
                                              instructions, policies, rules,
                                              regulations or decisions of the
                                              Board which are consistent with
                                              her position; or

                                     (iv)     willful or intentional misconduct
                                              on the part of Tonat that results
                                              in substantial injury to Eagle or
                                              any of its parent, subsidiaries or
                                              affiliates.

                  6.2 Termination by Eagle.

                           6.2.1 For Cause. Eagle shall have the right to cancel
                           and terminate this Agreement and Tonat's employment
                           for Cause immediately on written notice, with Tonat's
                           compensation and benefits ceasing as of Tonat's last
                           day of employment, provided, however, that Tonat
                           shall be entitled to benefits through the last day of
                           employment and accrued compensation to that date.

                           6.2.2 Without Cause. Eagle shall have the right to
                           cancel and terminate this Agreement and Tonat's
                           employment at any time on written notice without
                           Cause for any or no reason, with Tonat's compensation
                           and benefits ceasing as of Tonat's last day of
                           employment, subject to the provisions of Section 6.4.
                           and Article 8.

                  6.3 Termination by Tonat. Tonat shall have the right to cancel
                  and terminate this Agreement and her employment at any time on
                  sixty (60) days prior written notice to the Board, with
                  Tonat's compensation and benefits ceasing as of Tonat's last
                  day of employment, provided, however, that Tonat shall be
                  entitled to benefits through the last day of employment and
                  accrued compensation to that date.

                  6.4 Severance. Except as set forth below, if Tonat's
                  employment with Eagle is terminated by Eagle or its successors
                  during the Term without Cause, Eagle shall, for the balance of
                  the Term, continue to pay Tonat, in the manner set forth
                  below, Tonat's Salary at the rate being paid as of the date of
                  termination; provided, however, that Tonat shall not be
                  entitled to any such payments of Salary if (i) her employment
                  is terminated due to her death or long-term disability, or
                  (ii) this Agreement is rendered null and void pursuant to
                  Section 5.1, or (iii) there is a Change in Control Termination
                  (as defined in Section 8.2). Any Salary due Tonat to this
                  Section 6.4 shall be paid to Tonat in installments on the same
                  schedule as Tonat was paid immediately prior to the date of
                  termination, each installment to be the same amount Tonat
                  would have been paid under this Agreement if she had not been
                  terminated. In the event Tonat breaches any provision of
                  Article 7 of this Agreement, Tonat's entitlement to any Salary
                  payable pursuant to this Section 6.4, if and to the extent not
                  yet paid, shall thereupon immediately cease and terminate.

         7.       Confidentiality; Non-Competition; Non-Interference.

                  7.1 Confidential Information. Tonat, during employment by
                  Eagle, will have access to and become familiar with various
                  confidential and proprietary information of Eagle, its
<PAGE>

                  parent, subsidiaries and/or affiliates and/or relating to the
                  business of Eagle, its parent, subsidiaries and/or affiliates
                  ("Confidential Information"), including, but not limited to:
                  business plans; operating results; financial statements and
                  financial information; contracts; mailing lists; purchasing
                  information; customer data (including lists, names and
                  requirements); feasibility studies; personnel related
                  information (including compensation, compensation plans, and
                  staffing plans); internal working documents and
                  communications; and other materials related to the businesses
                  or activities of Eagle, its parent, subsidiaries and/or
                  affiliates which is made available only to employees with a
                  need to know or which is not generally made available to the
                  public. Failure to mark any Confidential Information as
                  confidential, proprietary or protected information shall not
                  affect its status as part of the Confidential Information
                  subject to the terms of this Agreement.

                  7.2 Nondisclosure. Tonat hereby covenants and agrees that
                  Tonat shall not at any time, directly or indirectly, disclose,
                  divulge, reveal, report, publish, or transfer any Confidential
                  Information to any Person, or use Confidential Information in
                  any way or for any purpose, except as required in the course
                  of Tonat's employment by Eagle. The covenant set forth in this
                  Section 7.2 shall not apply to information now known by the
                  public or which becomes known generally to the public (other
                  than as a result of a breach of this Article 7 by Tonat) or
                  information that is customarily shown or disclosed.

                  7.3 Documents. All files, papers, records, documents,
                  compilations, summaries, lists, reports, notes, databases,
                  tapes, sketches, drawings, memoranda, and similar items
                  (collectively, "Documents"), whether prepared by Tonat, or
                  otherwise provided to or coming into the possession of Tonat,
                  that contain any proprietary information about or pertaining
                  or relating to Eagle, its parent, subsidiaries and/or
                  affiliates and/or their businesses ("Eagle Information") shall
                  at all times remain their exclusive property. Promptly after a
                  request by Eagle or the termination of Tonat's employment,
                  Tonat shall take reasonable efforts to (i) return to Eagle all
                  Documents in any tangible form (whether originals, copies or
                  reproductions) and all computer disks containing or embodying
                  any Document or Eagle Information and (ii) purge and destroy
                  all Documents and Eagle Information in any intangible form
                  (including computerized, digital or other electronic format)
                  as may be requested in writing by the Chairman of the Board of
                  Eagle, and Tonat shall not retain in any tangible form any
                  such Document or any summary, compilation, synopsis or
                  abstract of any Document or Eagle Information.

                   7.4     Non-Competition.

                           7.4.1 Tonat hereby acknowledges and agrees that,
                           during the course of employment by Eagle, Tonat will
                           become familiar with and involved in all aspects of
                           the business and operations of Eagle. Tonat hereby
                           covenants and agrees that from the Commencement Date
                           until the earlier to occur of (a) the date one
                           hundred eighty (180) days after Tonat's last day of
                           employment with Eagle or (b) December 31, 2003, Tonat
                           will not at any time (except for Eagle), directly or
                           indirectly, in any capacity (whether as a proprietor,
                           owner, agent, officer, director, shareholder,
                           partner, principal, member, employee, contractor,
                           consultant or otherwise) render any services to a
                           bank or savings and loan or a holding company of a
                           bank or savings and loan (in any case, a "Bank") with
                           respect to any Bank office, branch or other facility
                           (in any case, a "Branch") that is located within a
                           thirty-five (35) mile radius of the location of
                           Eagle's headquarters on the date hereof (including,
                           without limitation, being involved in any manner in
                           the operations of or having any responsibilities with
                           respect to any Branch).

                           7.4.2 This Section 7.4 shall not apply if prior to
                           December 31, 2003, there is a (i) merger or
                           consolidation of Eagle with a third party in which
<PAGE>

                           Eagle is not the survivor, (ii) sale of a controlling
                           interest in Eagle to a third party or (iii) a sale of
                           all or substantially all of the business or assets of
                           Eagle to a third party, and this Agreement is not
                           assigned to such third party or Tonat's employment
                           hereunder is otherwise terminated by such third party
                           in connection with such merger, consolidation or
                           sale. Further, mere ownership of less than two
                           percent (2%) of the securities of any publicly held
                           corporation shall not constitute a violation of this
                           Section.

                  7.5 Non-Interference. Tonat hereby covenants and agrees that
                  from the Commencement Date until the earlier to occur of (a)
                  the date one hundred eighty (180) days after Tonat's last day
                  of employment with Eagle or (b) December 31, 2003, Tonat will
                  not, directly or indirectly, for herself or any other Person
                  (whether as a proprietor, owner, agent, officer, director,
                  shareholder, partner, principal, member, employee, contractor,
                  consultant or any other capacity), induce or attempt to induce
                  any customers, suppliers, officers, employees, contractors,
                  consultants, agents or representatives of, or any other person
                  that has a business relationship with, Eagle or any of its
                  parent, subsidiaries and affiliates to discontinue, terminate
                  or reduce the extent of their relationship with Eagle and/or
                  any such parent, subsidiary or affiliate or to take any action
                  that would disrupt or otherwise be disadvantageous to any such
                  relationship.

                  7.6 Injunction. In the event of any breach or threatened or
                  attempted breach of any such provision by Tonat, Eagle shall,
                  in addition to and not to the exclusion of any other rights
                  and remedies at law or in equity, be entitled to seek and
                  receive from any court of competent jurisdiction (i) full
                  temporary and permanent injunctive relief enjoining and
                  restraining Tonat and each and every other Person concerned
                  therein from the continuation of such volatile acts and (ii) a
                  decree for specific performance of the applicable provisions
                  of this Agreement, without being required to furnish any bond
                  or other security.

                  7.7 Reasonableness.

                           7.7.1 Tonat has carefully read and considered the
                           provisions of this Article 7 and, having done so,
                           agrees that the restrictions and agreements set forth
                           in this Article 7 are fair and reasonable and are
                           reasonably required for the protection of the
                           interests of Eagle and its business, shareholders,
                           directors, officers and employees. Tonat further
                           agrees that the restrictions set forth in this
                           Agreement will not impair or unreasonably restrain
                           Tonat's ability to earn a livelihood.

                           7.7.2 If any court of competent jurisdiction should
                           determine that the duration, geographical area or
                           scope of any provision or restriction' set forth in
                           this Article 7 exceeds the maximum duration,
                           geographic area or scope that is reasonable and
                           enforceable under applicable law, the parties agree
                           that said provision shall automatically be modified
                           and shall be deemed to extend only over the maximum
                           duration, geographical area and/or scope as to which
                           such provision or restriction said court determines
                           to be valid and enforceable under applicable law,
                           which determination the parties direct the court to
                           make, and the parties agree to be bound by such
                           modified provision or restriction.

         8.       Change in Control.

                  8.1 Definition. "Change in Control" means and shall be deemed
                  to have occurred if:

                  (a) there shall be consummated any consolidation or merger of
                  EBI in which EBI is not the continuing or surviving
                  corporation or pursuant to which shares of EBI's capital stock
                  are converted into cash, securities or other property other
                  than a consolidation or merger of EBI in which the holders of
                  EBI's voting stock immediately before the consolidation or
<PAGE>

                  merger shall, upon consummation of the consolidation or
                  merger, own at least 50% of the voting stock of the surviving
                  corporation, or any sale of all or substantially all of the
                  assets of EBI;

                  (b) any person (within the meaning of Sections 13(d) and
                  14(d)(2) of the Securities Exchange Act of 1934, as amended
                  (the "Exchange Act")) shall after the Commencement Date become
                  the beneficial owner (within the meaning of Rules 13d-3 and
                  13d-5 under the Exchange Act), directly or indirectly, of
                  securities of EBI representing fifty-one percent (51%) or more
                  of the voting power of then all outstanding securities of EBI
                  entitled to vote generally in the election of directors of EBI
                  (including, without limitation, any securities of EBI that any
                  such person has the right to acquire pursuant to any
                  agreement, or upon exercise of conversion rights, warrants or
                  options, or otherwise, which shall be deemed beneficially
                  owned by such person); or

                  (c) individuals who at the Commencement Date constitute the
                  entire Board of Directors of EBI and any new directors whose
                  election by the Board of Directors of EBI, or whose nomination
                  for election by EBI's stockholders, shall have been approved
                  by a vote of at least a majority of the directors then in
                  office who either were directors at the Commencement Date or
                  whose election or nomination for election shall have been so
                  approved, shall cease for any reason to constitute at least a
                  majority of the Board of Directors of EBI.

                  8.2 Change in Control Termination. For purposes of this
                  Agreement, a "Change in Control Termination" means that while
                  this Agreement is in effect:

                  (a) Tonat's employment with Eagle is terminated without Cause
                  within one hundred twenty (120) days immediately (i) prior to
                  and in conjunction with a Change in Control or (ii) following
                  consummation of a Change in Control; or

                  (b) Tonat is notified within one hundred twenty (120) days
                  immediately prior to or immediately following consummation of
                  a Change in Control that, as a result of the Change in
                  Control, she will not be continued in a comparable position
                  (with comparable compensation and benefits) with Eagle to the
                  position Tonat holds at the time such notice is given if the
                  notice is given prior to the Change in Control or, if the
                  notice is given after a Change in Control, to the position
                  Tonat held immediately prior to the Change in Control, and
                  within fifteen (15) days after receiving such notification
                  Tonat notifies Eagle that she is terminating her employment
                  due to such change in her employment, with her last day of
                  employment to be mutually agreed to by Eagle and Tonat but
                  which shall be not more than sixty (60) days after such notice
                  is given by Tonat; or

                  (c) If at the expiration of the one hundred twenty (120) day
                  period immediately following consummation of a Change in
                  Control (the "Action Period") none of the events described in
                  Sections 8.2(a) and 8.2(b) above have occurred, Tonat, within
                  the thirty (30) day period immediately following the last day
                  of the Action Period, notifies Eagle that she is terminating
                  her employment due to the Change in Control, with her last day
                  of employment to be mutually agreed to by Eagle and Tonat but
                  which shall be not more than sixty (60) days after such notice
                  is given by Tonat.

                  8.3 Change in Control Payment. If there is a Change in Control
                  Termination, Tonat shall be paid a lump-sum cash payment (the
                  "Change Payment") equal to 2.00 times Tonat's Salary at the
                  highest rate in effect during the twelve (12) month period
                  immediately preceding her last day of employment, such Change
                  Payment to be made to Tonat within forty-five (45) days after
                  her last day of employment.
<PAGE>

                  8.4 Adjustment.

                  (a) Notwithstanding anything in this Agreement to the
                  contrary, if the Determining Firm (as defined in Section
                  8.4(b)) determines that any portion of the Change Payment
                  and/or the portions, if any, of other payments or
                  distributions in the nature of compensation by Eagle to or for
                  the benefit of Tonat (including, but not limited to, the value
                  of the acceleration in vesting of restricted stock, options or
                  any other stock-based compensation) whether or not paid or
                  payable or distributed or distributable pursuant to the terms
                  of this Agreement (collectively with the Change Payment, the
                  "Aggregate Payment"), would cause any portion of the Aggregate
                  Payment to be subject to the excise tax imposed by Code
                  Section 4999 or would be nondeductible by Eagle pursuant to
                  Code Section 280G (such portion subject to the excise tax or
                  being nondeductible, the "Parachute Payment"), the Aggregate
                  Payment will be reduced, beginning with the Change Payment, to
                  an amount which will not cause any portion of the Aggregate
                  Payment to constitute a Parachute Payment.

                  (b) All determinations required to be made under this Section
                  8.4, will be made by a reputable law or accounting firm (the
                  "Determining Firm") selected by Eagle. All fees and expenses
                  of the Determining Firm will be obligations solely of Eagle.
                  The determination of the Determining Firm will be binding upon
                  Eagle and Tonat.

         9. Assignability. Tonat shall have no right to assign this Agreement or
any of Tonat's rights or obligations hereunder to another party or parties.

         10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Maryland applicable to contracts
executed and to be performed therein, without giving to the choice of law rules
thereof.

         11. Notices. All notices, requests, demands and other communications
         required to be given or permitted to be given under this Agreement
         shall be in writing and shall be conclusively deemed to have been given
         (1) when hand delivered to the other party, or (2) when received when
         by facsimile at the address a number set forth below provided however,
         that notices given by facsimile shall no be effective unless either a
         duplicate copy of suchfacsimile notice is promptly given by depositing
         same in a States post office first-class postage prepaid and addressed
         to the parties as set forth below, or the receiving party delivers a
         written confirmation of receipt for such notice either by facsimile or
         any other method permitted under this sub additionally, any notice
         given by facsimile shall be deemed received on the next business day if
         such notice is received after 5:00 p.m. (recipient's time) or on a
         non-business day); or three (3) business days after the same have been
         deposited in a United States post office with first-class certified
         mail, return receipt, postage prepaid and addressed to the parties as
         set forth below; or (4) the next business day after same have been
         deposited with a national overnight delivery service reasonably
         approved by the parties (Federal Express and DHL WorldWide Express
         being deemed approved by the parties), postage prepaid, addressed to
         the parties as set forth below with next-business-day delivery
         guaranteed, provided that the sending party received a confirmation of
         delivery from the delivery service provider. The address of a party set
         forth below may be changed by that party by written notice to the other
         from time to time pursuant to this Article.

                  To:      Martha Foulon-Tonat
                           221 Midsummer Circle
                           Gaithersburg, MD 20878

                  To:      EagleBank
                           C/O Ronald D. Paul
                           7815 Woodmont Ave.
                           Bethesda, MD 20814

                  cc:      Kennedy, Baris & Lundy
                           David Baris
                           4701 Sangamore Road
                           Suite P-15
                           Bethesda, MD 20816
<PAGE>

         12. Entire Agreement. This Agreement contains all of the agreements and
         understandings between the parties hereto with respect to the
         employment of Tonat by Eagle, and supersedes all prior agreements,
         arrangements and understandings related to the subject matter hereof.
         No oral agreements or written correspondence shall be held to affect
         the provisions hereof. No representation, promise, inducement or
         statement of intention has been made by either party that is not set
         forth in this Agreement, and neither party shall be bound by or liable
         for any alleged representation, promise, inducement or statement of
         intention not so set forth.

         13. Headings. The Article and Section headings contained in this
         Agreement are for reference purposes only and shall not in any way
         affect the meaning or interpretation of this Agreement.

         14. Severability. Should any part of this Agreement for any reason be
         declared or held illegal, invalid or unenforceable, such determination
         shall not affect the legality, validity or enforceability of any
         remaining portion or provision of this Agreement, which remaining
         portions and provisions shall remain in force and effect as if this
         Agreement has been executed with the illegal, invalid or unenforceable
         portion thereof eliminated.

         15. Amendment: Waiver. Neither this Agreement nor any provision hereof
         may be amended, modified, changed, waived, discharged or terminated
         except by an instrument in writing signed by the party against which
         enforcement of the amendment, modification, change, waiver, discharge
         or termination is sought. The failure of either party at any time or
         times to require performance of any provision hereof shall not in any
         manner affect the right at a later time to enforce the same. No waiver
         by either party of the breach of any term, provision or covenant
         contained in this Agreement, whether by conduct or otherwise, in any
         one or more instances, shall be deemed to be, or construed as, a
         further or continuing waiver of any such breach, or a waiver of the
         breach of any other term, provision or covenant contained in this
         Agreement.

         16. Gender and Tense. As used in this Agreement, the masculine,
         feminine and neuter gender, and the singular or plural number, shall
         each be deemed to include the other or others whenever the context so
         indicates.

         17. Binding Effect. This Agreement is and shall be binding upon, and
         inures to the benefit of, Eagle, its successors and assigns, and Tonat
         and her heirs, executors, administrators, and personal and legal
         representatives.

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

EAGLEBANK

         By:
                ---------------------
         Title:
                ---------------------

         MARTHA FOULON-TONAT

         ----------------------------

         ----------------------------
         DateEXHIBIT 10.1

         EMPLOYMENT AGREEMENT made as of the 1st day of July, 2002 by and
between CRYOMEDICAL SCIENCES, INC., a Delaware corporation (hereinafter referred
to as the "Company"), and John G. Baust, residing at c/o BioLife Solutions,
Inc., Suite 144, SCI 3, SUNY Park, Binghamton, NY 13902 (hereinafter referred to
as "Employee").

                              W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS, the Company desires to employ Employee, and Employee is
willing to accept such employment, all on the terms and subject to the
conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the terms and conditions
hereinafter set forth, the parties hereto agree as follows:

         1.       Employment
                  ----------

                  The Company hereby employs Employee, and Employee hereby
accepts employment with the Company, as President and Chief Executive Officer,
on the terms and conditions herein set forth.

         2.       Term of Agreement
                  -----------------

                  Unless terminated sooner pursuant to the express provisions
hereof, the term of employment hereunder shall commence on the date hereof (the
"Commencement Date"), shall continue through June 30, 2004 (the "Original
Term"), and shall be automatically extended for two additional one-year periods
upon the terms and subject to the conditions contained herein, unless (a) the
Original Term is terminated pursuant to Section 6 hereof (or otherwise), or (b)
not less than 90 days prior to the commencement of any such one-year period the
Company notifies Employee, in

                                       1
<PAGE>

writing, that the term of employment shall not be extended. The period
commencing with the Commencement Date through the end of the term of Employee's
employment hereunder is hereinafter referred to as the "Employment Period."

         3.       Duties
                  ------

                  During the Employment Period, Employee shall perform such
functions as are normally carried out by the President and Chief Executive
Officer of a business of the type in which the Company is engaged, and such
other functions as the Board of Directors of the Company (the "Board") shall
from time to time reasonably determine. Employee shall devote his energies and
abilities exclusively to the Company's business pursuant to, and in accordance
with, reasonable business policies and procedures, as fixed from time to time by
the Board; provided, however, that Employee may continue to devote his time,
energies and abilities to his position at SUNY-Binghamton to the same extent as
Employee is currently doing so. Employee covenants and agrees that he will
faithfully adhere to and fulfill such policies as are established from time to
time by the Board of Directors. Employee shall not be assigned, by the Board of
Directors, responsibilities, in any material manner, inconsistent with his
position as President and Chief Executive Officer.

         4.       Compensation
                  ------------

                  4.1 Upon the Commencement Date, Employee will be paid a
"signing" bonus of $50,000.

                  4.2 During the Employment Period, Employee's base salary shall
be in the amount of $240,000 per annum, payable in accordance with the Company's
normal payroll procedures.

                  4.3 During the Employment Period, in addition to Employee's
base salary, Employee shall be entitled to annual bonuses of up to $100,000
based upon specific milestones

                                       2
<PAGE>

to be accomplished by the Company for the ensuing year as agreed to by the Board
and Employee.

                  4.4 During the Employment Period, Employee shall be entitled
to a non-accountable automobile allowance of $600.00 per month.

                  4.5 During the Employment Period, Employee shall be entitled
to family coverage for Blue Cross/Blue Shield (or equivalent thereof) and major
medical insurance coverage.

                  4.6 Employee shall also be eligible, to the extent he
qualifies, to participate in such fringe benefit plans (including retirement,
pension, life or other similar employee benefit plans), if any, which the
Company may from time to time make available to its employees, provided that the
Company shall have the right from time to time to modify, terminate or replace
any and all of such plans.

                  4.7 The Company shall reimburse Employee for all reasonable
business expenses incurred by Employee in connection with the performance of his
duties hereunder , provided Employee submits supporting vouchers for such
expenses.

                  4.8 Employee shall be entitled to a four-week paid vacation
each year during the Employment Period, to be taken at such time as is
consistent with the needs of the Company and the convenience of Employee.

         5.       Stock Options
                  -------------

                  On the Commencement Date, Employee shall be granted a 10 year
Stock Option, under the Company's 1998 Stock Option Plan, to purchase 1,000,000
shares of the Company's common stock, par value $.001 per share (the "Common
Stock"), at a price of $.25 per share. The Stock Option shall be exercisable
over a 10-year period to the extent of 200,000 shares commencing with the first
anniversary date of the Commencement Date and an additional 200,000 shares
commencing with each of the next four anniversary dates thereof.

                                       3
<PAGE>

         6.       Termination
                  -----------

                  The Employment Period shall terminate upon the happening of
any of the following events:

                  6.1 Automatically and without notice upon the death of
Employee.

                  6.2 Employee leaves the employ of the Company.

                  6.3 Upon written notice of termination from the Board of the
Company to Employee in the event that Employee becomes physically or mentally
disabled ("Disability") during the Employment Period such that (a) in Board's
good faith judgment, Employee is permanently incapable of properly performing
the duties customarily performed by him hereunder, or (b) such Disability lasts
for a period of 60 consecutive days or 90 days in any 150 day period and the
Board elects to treat such Disability as being permanent in nature;

                  6.4 Upon discharge of Employee, on written notice, by the
Board for cause. For purposes of this Agreement, "cause" shall mean the
following: the commission of a felony or crime involving moral turpitude or
other act causing material harm to the Corporation's standing and reputation,
failure to carry out, after reasonable written notice of such failure, the
reasonable policies of the Board as they may relate to Employee's duties
hereunder (other than for reasons beyond his control), persistent absenteeism, a
material default or breach of any of the covenants made by Employee in this
Agreement, a breach of Employee's duty of loyalty to the Company or any act of
dishonesty or fraud with respect to the Company, or the willful engaging by
Employee in misconduct materially injurious to the Company.

                  6.5 In the event any one of the foregoing events referred to
in Sections 6.1 through 6.4 hereof shall occur, the Company shall be obligated
to pay to Employee the compensation due him under Section 4.2 hereof up to the
date of termination only and Employee shall not be entitled to receive any
additional compensation of any nature whatsoever.

                                       4
<PAGE>

                  6.6 In the event that Employee's employment with the Company
is terminated by the Board during the Employment Period for a reason other than
as is set forth above in Sections 6.1 through 6.4 hereof, the Company shall be
required to continue to pay Employee the salary provided for in Section 4.2
hereof for a period of one (1) year.

         7.       Non-Competition
                  ---------------

                  7.1 In view of the unique and valuable services that Employee
has rendered and is expected to render to the Company, and Employee's knowledge
of the business of the Company and proprietary information relating to the
business of the Company and similar knowledge regarding the Company that
Employee has obtained and is expected to obtain during the course of his
employment with the Company and in consideration of the compensation to be
received by Employee hereunder, Employee agrees that during the Employment
Period and for a period of twenty four months immediately following the
termination or expiration thereof (the Employment Period he will not compete
with, or, directly or indirectly, own, manage, operate, control, loan money to,
or participate in the ownership, operation or control of, or be connected with
as a director, partner, consultant, agent, independent contractor or otherwise,
or acquiesce in the use of his name in any other business or organization which
is in competition with the Company in any geographical area in which the Company
is then conducting business or any geographical area in which, to the knowledge
of Employee at the time of cessation of employment, the Company plans to conduct
business within twenty four months from the date thereof

                  7.2 Employee will not, during the twenty-four months following
termination, solicit or interfere with, or endeavor to entice away from the
Company, any of its employees or customers without the written consent of the
Company or unless such employee is Employee's personal secretary.

                                       5
<PAGE>

                  7.3 Since a breach of the provisions of this Section 7 could
not adequately be compensated by money damages and will cause irreparable injury
to the Company, the Company shall be entitled, in addition to any other right or
remedy available to it, to an injunction or restraining order restraining such
breach or a threatened breach, and no bond or other security shall be required
in connection therewith, and Employee hereby consents to the issuance of any
such injunction or restraining order. Employee agrees that the provisions of
this Section 7 are reasonable and necessary to protect the Company and its
business. It is the desire and intent of the parties that the provisions of this
Section 7 shall be enforced to the fullest extent permitted under the public
policies and laws applied in each jurisdiction in which enforcement is sought.
If any restriction contained in this Section 7 shall be deemed to be invalid,
illegal or unenforceable by reason of the extent, duration or geographical scope
thereof, or otherwise, then the court making such determination shall have the
right to reduce such extent, duration, geographical scope or other provision
hereof and in its reduced form such restriction shall then be enforceable in the
manner contemplated hereby.

                  7.4 No provision of this Agreement shall be deemed to preclude
Employee from serving as a director on the board of companies not in competition
with the Company or of charitable organizations, provided, that any such
directorship or consulting activities do not reduce Employee's ability to attend
to his duties on behalf of the Company.

         8.       Entire Agreement
                  ----------------

                  The provisions hereof and the agreements referred to herein
constitute the entire agreement between the parties with respect to the subject
matter hereof and supersede any prior oral understanding, and no modification,
supplement or discharge hereof shall be effective unless in writing and executed
on behalf of the Company and Employee.

                                       6
<PAGE>

         9.       Assignability
                  -------------

                  This Agreement, and its rights and obligations may not be
assigned by Employee. The Company may assign any of its rights and obligations
hereunder to a successor or surviving corporation resulting from a merger or
consolidation of the Company, the sale by the Company of all or substantially
all of its assets or other similar corporate reorganization, upon condition that
the assignee shall assume, either expressly or by operation of law, all of the
Company's obligations hereunder.

         10.      Waiver
                  ------

                  No waiver by either party of any condition, term or provision
of this Agreement shall be deemed to be a waiver of any prior or succeeding
breach of the same or of any other condition, term or provision thereof.

         11.      Notices
                  -------

                  All notices required or permitted to be given by either party
hereunder shall be in writing and mailed by registered mail, return receipt
requested, to the other party at the address set forth above or such different
address as may be given by notice as provided for herein. Any notice mailed as
provided above shall be deemed given seven (7) days after the date of mailing or
on the date of receipt, whichever is sooner.

         12.      Counterparts
                  ------------

                  This Agreement may be executed in several counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

         13.      Construction
                  ------------

                  This Agreement shall be construed in accordance with the laws
of the State of Delaware.

                                       7
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.

                                        /s/ John G. Baust
                                        ----------------------------------------
                                        JOHN G. BAUST

                                        CRYOMEDICAL SCIENCES, INC.

                                        By:/s/ Robert Van Buskirk
                                           -------------------------------------
                                           Authorized Signatory

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]