Document:

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (this "Agreement") is made as of this 15th day of April 2019, by and between OLD LINE BANK, a
Maryland-chartered trust company exercising the powers of a commercial bank (the "Bank" or "Employer"),
and William J. Bush, a resident of the State of Maryland (the "Employee").

 

WHEREAS Employee has been employed by Employer since April
30, 2007; and

 

WHEREAS the Employer and the Employee desire to
memorialize the terms of Employee's
employment herein.

 

NOW
THEREFORE, in consideration of the premises, the benefits
provided to each party hereunder and the mutual promises made herein, the adequacy and sufficiency of such consideration being
hereby acknowledged by the parties, the parties agree as follows:

 

1.                 
Employment. The Bank hereby employs the Employee as Executive Vice President of Commercial Lending and agrees to continue
to employ the Employee in that position (or in any other position approved by the Bank) during the term of this Agreement, except
as otherwise provided below.

 

2.                
Term. The initial term and any extensions thereof are referred to herein as the "Term." The initial Term of this
Agreement expires on March 31, 2021. The Term of this Agreement is two years. On September 30 2019 and on each succeeding consecutive
March 31st and September 30th (each an "Anniversary Date")
while this Agreement is in effect, the Term shall be automatically extended for a period of six months unless the Employer or the
Employee informs the other at least 60 days prior to such Anniversary Date of their decision to not renew.

 

3.                
Compensation. The Employee's salary under this Agreement shall be $250,000 per annum,
payable on a bi-weekly basis ("Base Salary"). The Employee's Base Salary will be
reviewed by the Board of Directors annually, and the Employee will
be entitled to receive annually an increase in such amount, if any, as
may be determined by the Board of Directors.

 

		4.	Duties.

 

A.               
During the term of this Agreement, the Employee shall serve as Executive Vice President of Commercial Lending. He shall have such
powers and shall perform such duties that are incident and customary to this office, and as granted and assigned to him by the
Chief Executive Officer ("CEO") and/or the Board of
Directors.

 

B.               
The Employee shall devote his full time, attention, skill, and energy to the performance of his duties under this Agreement,
and shall comply with all reasonable professional requests of the Bank; provided, however,
that the Employee will be permitted to engage in and manage personal investments and to participate in community and
charitable affairs, so long as such activities in the judgment of the Bank's CEO do not create a conflict of interest
or interfere with the performance of his duties under this Agreement. In furtherance of
this commitment, the Employee shall disclose all positions he holds with other organizations and any ownership interests he
has in other business entities where he may influence or control management decisions. Such disclosures shall be made at the
commencement of the Employee's employment and from time-to-time throughout his employment where his circumstances have
changed to make such a disclosure appropriate.

 

    

     

    

 

C.               
The Employee shall immediately notify the Company of (i) his own illness and consequent absence from work or (ii) any intended
significant change in his plans to work for the Company.

 

		5.	Vacation, Sick and Personal Leave.

 

A.               
The Employee shall be entitled to a total of 20 days of paid vacation each calendar year, which he may use in accordance with the
Bank's announced policy that is in effect from time-to-time. The Employee may take his vacation at such times that do not interfere
with the performance of his duties under this Agreement.

 

B.                
The Employee shall be entitled to paid sick leave and paid personal leave as is provided in the Employer's policies then in effect.

 

6.                
Expenses. The Bank shall reimburse the Employee for all reasonable expenses incurred in connection with his duties on behalf
of the Bank, provided that the Employee shall keep and present to the Bank records and receipts relating to reimbursable expenses
incurred by him. Such records and receipts shall be maintained and presented in a format, and with such regularity, as the Bank
reasonably may require in order to substantiate the Bank's right to claim income tax deductions for such expenses. For any expenditure
in excess of $500.00, the Employee must obtain written approval from the CEO if he is to be reimbursed for the expense. Without
limiting the generality of the foregoing, the Employee shall be entitled to reimbursement for any business-related travel, business-related
entertainment and other costs and expenses reasonably incident to
the performance of his duties on behalf of the Bank.

 

		7.	Fringe Benefits.

 

A.                
Insurance. The Employee shall receive health insurance, consistent with the terms set forth in the plan established by the
Bank for its employees. The Bank shall also pay the premiums for Employee to receive the following insurance, consistent with the
terms set forth in the plans established by the Bank for its employees: dental; life; short-term disability; and long-term disability.

 

B.                
Banking. The Bank shall not charge the Employee for use of a savings account, checking account or debit card issued by the
Bank. The Employee is eligible to have his paychecks deposited directly in any account he has with the Bank or elsewhere.

 
 

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		8.	Termination of Employment.

 

A.               
This Agreement shall terminate prior to the expiration of its Term only upon and on the occurrence of the following:

 

(i)               
on the death of the Employee in which event all unvested stock options previously granted to the Employee shall immediately vest
and the Employer shall have no further obligation to the Employee other than payment of any unpaid salary and any contractually
committed obligations to provide the Employee with vested benefits pursuant to a salary continuation
agreement, supplemental life insurance agreement, or other form of retirement plan ("Retirement
Benefits") in effect as of the date of death;

 

(ii)             
on the date the Employee becomes physically or mentally incapacitated to the extent he has been unable to perform his duties under
this Agreement for a period of 60 consecutive days and, in order to assist the Bank in making such determination, the Employee
agrees to make himself available for medical examination by one or more physicians chosen by the Bank and grants to the Bank and
such physicians access to all relevant medical information, including copies of the Employee's medical records and access to the
Employee's own physicians, in which event Employer will have no further obligation to the Employee other than payment of any unpaid
salary and Retirement Benefits as of the date of disability;

 

(iii)           
on the effective date of the Employee's voluntary resignation for Good Reason (which for purposes of this Agreement is defined
as "a change in location of the Employer's principal office that results in the Employee's commuting distance being at least
50 miles greater than the Employee's commuting distance on the date of this Agreement" and which shall not occur unless (a)
Employee notified the Employer of such condition within 90 days of its occurrence, (b) the Employer did not remedy such condition
within 30 days, and (c) Employee resigned for Good Reason
within 12 months of the condition) in which event (a) the Employer shall pay to the Employee a lump sum payment equal to the Employee's
salary (at the amount of such salary on the date of resignation) over the remaining Term, and the Employer shall pay such lump
sum payment within ten business days of the effective date of termination of the Employee's employment, (b) all unvested stock
options previously granted to the Employee shall immediately vest, and (c) the Employee shall be entitled to payment of any unpaid
salary and Retirement Benefits as of the effective date of termination
of the Employee's employment pursuant to such resignation;

 

(iv)           
on the effective date of the Employee's voluntary resignation without Good Reason in which event the Employer will have no
further obligation to the Employee other than payment of any unpaid salary and Retirement Benefits as of the date of
voluntary resignation;

 

 

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(v)       on
the date the Employer terminates the Employee for "cause" as defined below in which event the Employer will have no
further obligation to the Employee other than payment of any unpaid salary and Retirement Benefits as of the date of
termination; or

 

(vi)       on
the date the Employer terminates the Employee other than for cause in
which event (a) the Employer shall pay to the Employee a lump sum payment equal to the Employee's salary (at the amount of such
salary on the date of termination) over the remaining Term, and the Employer shall pay such lump sum payment within ten business
days of the effective date of termination of the Employee's employment, (b)
all unvested stock options previously granted to the Employee shall immediately vest,
and (c) the Employee shall be entitled to payment of any unpaid salary and Retirement Benefits
as of the effective date of termination of the Employee's employment.

 

B.               
Termination for Cause. Notwithstanding the provisions
of Section 2 above, the Employee's employment (and all of his rights and benefits under this Agreement) shall terminate immediately
after written notice upon the happening of any one or more of the following events, which constitute " cause":
(i) the Employee has breached, in any material respect, a provision of this Agreement; (ii) the Employee refuses to
perform the duties of his employment under this Agreement in any material respect;
(iii} the Employee has committed any act or omission materially and adversely affecting his reputation
or that of the Bank or any of its affiliates or materially and adversely affecting any product,
policy, program or service offered through or developed by the Bank or any of its affiliates;
(iv} the Employee is convicted of or pleads guilty to a charge of any felony or of any lesser crime involving fraud or moral turpitude
or directed against the Bank, its affiliates or any of
their shareholders, employees,
agents or contractors; (v}
the Employee commits any other act which is inconsistent with the good faith fulfillment of his responsibilities as an employee
of the Bank or is done with the intent to harm the Bank,
its affiliates or any of their shareholders, employees,
agents or contractors; (vi) the Employee violates any material statute, rule or regulation of any federal, state or local governmental
authority pertaining to the marketing, sale, solicitation
or offer of any product, policy or program of the Bank or its affiliates; and
(vii) the Employee commits any other act or omission which an arbitrator or a court of competent jurisdiction justifies as grounds
for dismissal for cause.

 

C.                
Unused Vacation. Sick
and Personal Leave. The
Employee shall be eligible to receive the remaining balance of his unused vacation and personal leave at the termination of his
employment only if he is not terminated for "cause" as defined above and he returns
all Bank property to the Bank prior to his final day of employment. Employee shall
have no right to receive any unused sick leave. If the Employee
fails to return any Bank property prior to his last day of employment,
the Employee authorizes the Bank to deduct from his final paycheck the reasonable
cost (not value} of that item. In the event that the Employee
elects to

terminate his employment, he must
provide the Company with 60 days' notice as provided above in order to receive the remaining balance of his unused vacation and
personal leave.

 

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		9.	Non-Competition Agreement.

 

A.               
The Employee agrees that, for one year following termination
from the Bank, regardless of reason,
he will not, as an individual, stockholder,
officer, director, partner,
agent, employee, consultant, or
representative, act for or on behalf of or have any interest,
direct or indirect, in any business similar to or competitive with the Bank's business within
a 25-mile radius of the main office of the Bank exclusive of the State of Virginia or Washington,
D.C.

 

B.               
The Employee agrees, during the period of employment and for one year following the termination of employment, not to solicit or
sell or attempt to solicit or sell, for his own account or on behalf of any person or corporation other than the Bank, services
or products that are competitive with the services or products of the Bank to any customer or client to which the Employee (or
employees under her managerial control) has solicited or sold any services or products on behalf of the Bank during any part of
the two years immediately preceding the termination of his employment. This restriction shall, in the case of a multi-location
customer or client,
apply to the location or locations where the Employee (or employees under his managerial control)
solicited or sold services or products, as well as any offices of that customer or client within a 25-mile radius of the main office
of the Bank.

 

C.               
The Employee agrees, during the period of employment and for one year following termination,
not to perform or render services or attempt to perform or render services, for his own account or
on behalf of any person or corporation other than the Bank, for
any customer or client of the Bank for which the Employee (or employees under his managerial control) has performed any services,
during any part of the two years immediately preceding the termination of his employment. This restriction
shall, in the case of a multi-location customer or client,
apply to the location or locations where the Employee (or employees under her managerial control) performed or rendered services,
as well as any offices of that customer or client within a 25-mile radius of the main office of the Bank.

 

D.               
The Employee agrees, during the period of employment and
for one year following termination, not to solicit or hire, either directly or indirectly, any current employee of the Bank to
work or perform services for his own account or on behalf
of any person or corporation other than the Bank, or attempt to induce any employee to leave the employ of the Banlc to work for
the Employee or any other person, firm or corporation.

 

E.                
The Employee acknowledges that any breach of these provisions will cause irreparable harm to the Bank and entitle the Bank
to injunctive or other equitable relief, as well as
damages. In the event of a breach of Paragraphs A through C of this Section, the
Employee shall pay to the Bank liquidated damages equal to any money received by the Employee due to violation of these
Paragraphs, as well as court costs and reasonable
attorneys' fees incurred by the Bank to enforce this Agreement. In the event of a breach of Paragraph D of this Section, the
Employee shall pay to the Bank liquidated damages equal to any money received by the Employee due to violation of this
Paragraph or the equivalent of the most recent one year's salary (at the company) of the hired solicited employee, whichever
is greater. Additionally, the Employee agrees to pay
the Bank court costs and reasonable attorneys' fees incurred by the Bank to enforce this Agreement.

 

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10.                 
Trade Secrets, Confidential Information and Intellectual Property. The
Employee acknowledges that and as a result of his employment with the Bank, the Employee has, is and will be making use of, acquiring,
and adding to information of a special
and unique nature and value relating to the Bank' s intellectual
property, trade secrets and other confidential information.
In that regard, the Employee agrees to the following:

 

A.               
The Employee shall not, at any time during or following his employment with the Bank, divulge
or disclose, or employ for any purpose whatsoever,
any of the Bank's trade secrets or other confidential information that have been obtained by
or disclosed to the Employee as a result of the Employee's employment by the Bank. For purposes of this Agreement,
"trade secrets or other confidential information" shall mean all information which
is used in the Bank's business and which gives the Bank the opportunity to obtain advantage over its competitors who do not know
or use such information, regardless of whether written or otherwise, including,
but not limited to, trade secrets, business methods, business plans, financial data, customer
lists and contracts, pricing plans, marketing plans or strategies, security devices, product information,
billing procedures, employee lists, salaries and other personnel information, and other business arrangements.
The term "trade secrets or other confidential information"
is not meant to include any information which, at the time of disclosure, is
generally known by the public or any competitors of the Bank. If the Employee has any questions regarding the confidential status
of information, he
should contact the CEO.

 

B.                
All notes, data,
reference items, sketches,
drawings, memoranda,
records, and
other materials in any way relating to any of the information
referred to in the Paragraph above or to the Bank's
business shall belong exclusively
to the Bank and the Employee agrees to tum over to the Bank all copies of such materials in
the Employee's possession or control (whether hard copy or electronic) at the Bank's request or upon
the termination of the Employee's employment.

 

C.                
All intellectual property, including, but not limited to,
all software (including, without
limitation , computer programs,
object code, source code, documentation, notes,
records, work papers, and all other materials associated therewith), and all copyrights,
trademarks, patents,
trade secrets and other proprietary rights related thereto shall be deemed (i) the sole and
exclusive property of the Bank (and/or the Bank's clients or customers if the Bank so determines),
and (ii) "trade secrets or other confidential
information." The Employee also agrees that any work
prepared for the Bank or its customers or clients that are susceptible of copyright protection shall be a work-made-for-hire for
the Bank. If any such work is deemed for any reason not to be a work-made- for-hire,
the Employee hereby agrees to irrevocably assign to the Bank all of the Employee's right,
title and interest in and to the copyright in such work and 

the Employee further agrees to execute
all such documents and assurances, and to take all such action, as the Bank shall request, in order to cause the rights assigned
hereby fully to vest in the Bank. The Employee hereby waives all so-called "moral rights" relating to all work developed
or produced by the Employee hereunder, including, without
limitation, any and all rights of attribution, rights
of approval, restriction or limitation of use or subsequent modifications. In furtherance of the foregoing,
and not in limitation thereof, the Employee agrees to assign the Bank all of the Employee's
right, title and interest in and to any and all ideas,
concepts, know how, techniques, processes, methods, inventions, discoveries, developments, innovations and improvements conceived
or made by the Employee, whether alone or with others, during the Employee's employment with the Bank,
and which either (i) involve or are reasonably related to the Bank's business or (ii) incorporate
or are based on, in whole or in part, any of the Bank's
trade secrets or other confidential information. (all of the aforesaid sometimes referred to herein as the "Inventions").
The Employee agrees to disclose all Inventions to the
Bank promptly, and to provide all assistance reasonably requested by the Bank in the preservation of the Bank's interest in the
Inventions, such as by executing documents, testifying and the like, which assistance shall be provided at the Bank's expense
but without any additional compensation to the Employee. The Employee shall, at
the Bank's expense, assist the Bank or its nominee to obtain patent protection for such Inventions in any countries the Bank may
elect in its sole discretion throughout the world. All Inventions shall be the property of the Bank or its nominees, whether patentable
or not. The Employee hereby assigns and agrees to assign to the Bank, all of the Employee's right title and interest in and to
all patent applications, patents and reissues related to any Inventions. The Employee agrees to execute, acknowledge and deliver
all documents, and to provide other assistance, at the Bank's request and expense, during and subsequent to the Employee's employment
by the Bank, confirming the complete ownership by the Bank of any and all Inventions, enabling
the Bank or its nominees to apply for and maintain patent protection (if applicable), and/or any other legal protection that may
then be available for the Inventions.

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D.               
The Employee acknowledges that any breach of this Section will cause irreparable harm to the Bank and entitle the Bank to injunctive
or other equitable relief, as well as damages. Damages shall include, but are not limited to, the Emplo yee’s
payment of the court costs and reasonable attorneys' fees incurred by the Bank to enforce this Agreement.

 

E.                
Protected Rights. The Employee understands that nothing contained in this Agreement limits the Employee's ability to file
a charge or complaint with the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the
Securities and Exchange Commission or any other federal, state or local governmental agency or commission ("Government Agencies").
The Employee further understands that this Agreement does not limit the Employee's ability
to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by
any Government Agency, including providing documents or other information, without notice to the Company. This Agreement does not
limit the Employee's right to receive an award for information provided to any Government Agencies.

 

11.                 
Code Section 409A Exemption. It is the parties'
intent that to the maximum extent possible, the payments contemplated under Sections 8{A)(iii) and {vi) be exempt from Section
409A of the Internal Revenue Code of 1986, as amended ("Code") under the "short-term deferral" exemption as
described under Treas. Reg. § 1.409A-l(b)(4) and/or the "separation pay" exemption under Treas. Reg. §1.409-1(b)(9)
such that the payments shall not be deemed "deferred compensation" within the meaning of Code Section 409A. To the extent
that any amount payable under this Agreement shall not fall within an exception but shall instead be "deferred compensation"
subject to Code Section 409A, the following terms shall apply.

 

 

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A.               
Termination of Employment. Any payments due under this Agreement that are contingent upon the Employee's "termination
of employment" will not be paid unless and until the Employee incurs
a "separation from service" as set forth under Code Section 409A and the regulations promulgated thereunder.

 

B.                
Restriction on Timing of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Employee
is considered a Specified Employee at termination of employment under such procedures as established by the Employer in accordance
with Section 409A of the Code, distributions of "deferred compensation" that are made upon
termination of employment may not commence earlier than six months after the date of such termination.
Therefore, in the event this Subsection (B) is applicable to the Employee, any distribution of deferred compensation that would
otherwise be paid to the Employee within the first six months following the termination of employment shall be accumulated and
paid to the Employee in a lump sum on the first day of the seventh month following the termination. All subsequent distributions
shall be paid in the manner specified. "Specified Employee" shall mean a key employee (as defined in Section 416{i) of
the Code without regard to paragraph 5 thereof) of the Employer if any stock of the Employer is publicly traded on an established
securities market or otherwise.

 

C.                
Non-Transferability. The
Employee may not sell, assign, or transfer any deferred compensation or any of the benefits hereunder, and the deferred compensation
shall not be subject in any manner to alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment by
the Employee's creditors.

 

D.               
Change in Form or Timing of Payments. All changes in the form or timing of payments hereunder must comply with the following
requirements. The changes:

 

i.      
may not accelerate the time or schedule of any payment, except as provided in Section 409A of the Code and the regulations thereunder;

 

ii.       must
be made at least 12 months prior to the termination of employment;

 

iii.     must
delay the commencement of payment for a minimum of five years from the date the first payment was originally scheduled to be made;
and

 

iv.      must take effect not less than
12 months after the election is made.

 

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E.                
Compliance with Section 409A. This Agreement shall at all times be administered and the provisions of this Section 11 shall
be interpreted consistent with the requirements of Section 409A of the Code and any and all regulations thereunder, including such
regulations as may be promulgated after the effective date of this Agreement.

 

		12.	Code Section 280G.

 

A.   
Notwithstanding any other provision of this Agreement or any other plan, arrangement
or agreement to the contrary, if any of the payments or
benefits provided or to be provided by the Bank or its affiliates to the Employee or for the Employee's benefit pursuant to the
terms of this Agreement or otherwise ("Covered Payments") constitute parachute payments ("Parachute Payments")
within the meaning of Section 280G of the Code and would, but
for this Section 12, be subject to the excise tax imposed
under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest
or penalties with respect to such taxes (collectively, the "Excise Tax"), then prior to making the Covered Payments,
a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Employee of the Covered Payments after payment
of the Excise Tax to (ii) the Net Benefit payable to the Employee if the Covered Payments are limited to the extent necessary to
avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will
the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to
the Excise Tax (that amount, the "Reduced Amount"). ''Net Benefit" shall mean the present value of the Covered Payments
net of all federal, state, local, foreign income, employment and excise taxes.

 

B.   
The Covered Payments shall be reduced in a manner that maximizes the Employee's economic position. In applying this principle,
the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code,
and where two economically equivalent amounts are subject to reduction but payable at different
times, such amounts shall be reduced on a pro rata basis
but not below zero.

 

C.   
Any determination required under this Section 12, including whether any payments or benefits are parachute
payments, shall be made by
the Bank in its sole discretion. The Employee shall provide the Bank with such information and documents as the Bank may reasonably
request in order to make a determination under this Section 12. The
Bank's determination shall be final and binding on the Employee.

 

D.    
It is possible that after the determinations and selections made pursuant to this Section 12 the Employee will receive Covered
Payments that are in the aggregate more than the amount provided
under this Section 12 ("Overpayment") or less than the amount provided under this Section 12 ("Underpayment").

 

i.                   
In the event that it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding that
has been finally and conclusively resolved that an Overpayment has been made, then the Employee shall pay any such Overpayment
to the Bank together with interest at the applicable federal rate (as defined in Section 7872(f)(2)(A) of the Code) from the date
of the Employee's receipt of the Overpayment until the date of repayment.

 

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ii.                   
In the event that a court of competent jurisdiction determines that an Underpayment
has occurred, any such Underpayment will be paid promptly
by the Bank to or for the benefit of the Employee together with interest at the applicable federal rate (as defined in Section
7872(f)(2)(A) of the Code) from the date the amount would have otherwise been paid to the Employee until the payment date.

 

13.                
Withholding. The Employer may withhold from any amounts payable hereunder such Federal,
state, local or foreign
taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

14.                 
Applicable Law. This Agreement will be construed and enforced under and in accordance with the laws of the State of Maryland.
The parties agree that any appropriate state court located in Prince George's County, Maryland,
will have jurisdiction
of any case or controversy arising under or in connection with this Agreement and will be a proper forum in which to adjudicate
such case or controversy. The parties consent to the jurisdiction of such courts.

 

15.                 
Entire Agreement. This Agreement embodies the entire and final agreement of the parties on the subject matter stated in
the Agreement. No amendment or modification of this Agreement will be valid or binding upon the Employer or the Employee unless
made in writing and signed by both parties. All prior understandings
and agreements relating to the subject matter of this Agreement are hereby expressly terminated.

 

16.                
Severability. The parties agree that each of the provisions included in this Agreement is separate,
distinct and severable from the other provisions of this Agreement and that the invalidity
or unenforceability of any Agreement provision will not affect the validity or enforceability of any
other provision of this Agreement. Further, if any provision of this Agreement is ruled invalid
or unenforceable by a court of competent jurisdiction because of a conflict between the provision
and any applicable law or public policy, the provision
will be redrawn to make the provision consistent with and valid and enforceable under the law or public policy.

 

17.                 
No Set-off by the Employee. The existence of any claim, demand, action
or cause of action by the Employee against the Employer, or any affiliate of the Employer,
whether predicated upon this Agreement or otherwise, will not constitute a defense to the enforcement
by the Employer of any of its rights hereunder.

 

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18.                  Notice. All
notices and other communications required or permitted under this Agreement will be in writing and, if
mailed by prepaid first-class mail or certified mail, return receipt
requested, will be deemed to have been received on the earlier of the date shown on the receipt or three business days after
the postmarked date thereof. In addition, notices hereunder may be delivered by hand, facsimile transmission or overnight
courier, in which event the notice will be deemed effective when delivered or transmitted. All notices and other
communications under this Agreement must be given to the parties hereto at the following addresses:

 

 

		(i)	If to the Employer, to it at:

 

1525 Pointer Ridge Road

Bowie,
Maryland 20716

Attn: President

 

		(ii)	If to the Employee, to the Employee at:

 

624 Current Court

La Plata, Maryland 20646

 

 

19.                 
Assignment. Neither party hereto may assign or delegate this Agreement or any of its rights and obligations hereunder without
the written consent of the other party hereto.

 

20.                 
Waiver. A waiver by the Employer of any breach of this Agreement by the Employee will not be effective unless in writing,
and no waiver will operate or be construed as a waiver of the same or another breach on a subsequent occasion.

 

21.                 
Interpretation. Words importing the singular form shall include the plural and vice versa. The terms "herein,"
"hereunder," "hereby," "hereto," "hereof' and any similar terms refer to this Agreement. Any
captions, titles or headings preceding the text of any article, section or subsection herein are solely for convenience of reference
and will not constitute part of this Agreement or affect its meaning, construction or effect.

 

22.                 
Rights of Third Parties. Nothing herein expressed is intended to or will be construed to confer upon or give to any person,
firm or other entity, other than the parties hereto and their permitted assigns, any rights or remedies under or by reason of this
Agreement.

 

23.                
Survival. The obligations of the Employee pursuant to Sections 5, 6, 7, 8 and 9 will survive the termination of the employment
of the Employee hereunder for the period designated under each of those respective sections.

 

24.                
This Agreement shall extend to, and be binding upon the Employee, and upon the Bank and its successors and assigns and the term
"Bank" as used herein shall include its successors and assigns whether by merger, consolidation, combination or otherwise.

 

[signatures appear on following page]

 

 

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IN WITNESS WHEREOF, the parties hereto
have duly executed this Agreement to be executed as of
the date first set forth above.

 

	WITNESS/AITEST:	 	THE EMPLOYER:

                           OLD LINE BANK

	 	 	 
	/s/
    Mark A. Semanie	 	/s/ James W. Cornelsen
	 	 	James W. Comelsen
	Executive Vice President and Chief Operating Officer	 	Title: President and Chief Executive Officer
	 	 	 
	 	 	 
	WITNESS:	 	THE EMPLOYEE:
	 	 	 
	/s/ Elise M. Hubbard	 	/s/ William J. Bush
	 	 	William J.
Bush
	Executive Vice President and	 	 
	Chief Financial Officer	 	 

 

 

 

 

12atec-ex101_118.htm

 

Exhibit 10.1

OMNIBUS NINTH Amendment to AMENDED AND RESTATED CREDIT, SECURITY AND GUARANTY AGREEMENT AND LIMITED CONSENT UNDER INTERCREDITOR AGREEMENT

 

This NINTH AMENDMENT TO AMENDED AND RESTATED CREDIT, SECURITY AND GUARANTY AGREEMENT (this “Agreement”) is made as of this 27th day of March, 2019, by and among ALPHATEC HOLDINGS, INC., a Delaware corporation (“Alphatec Holdings”), ALPHATEC SPINE, INC., a California corporation (“Alphatec Spine”), SafeOp Surgical, Inc., a Delaware corporation (“SafeOp”; together with Alphatec Holdings and Alphatec Spine, each being referred to herein individually as a “Borrower”, and collectively as “Borrowers”), MIDCAP FUNDING IV TRUST (as Agent for Lenders, “Agent”), and MIDCAP FUNDING IV TRUST, individually, as a Lender, and the other financial institutions or other entities from time to time parties to the Credit Agreement referenced below, each as a Lender.

RECITALS

A.Agent, Lenders and Borrowers are parties to that certain Amended and Restated Credit, Security and Guaranty Agreement, dated as of August 30, 2013, as amended by the First Amendment to Amended and Restated Credit, Security and Guaranty Agreement, dated as of March 17, 2014, the Second Amendment to Amended and Restated Credit, Security and Guaranty Agreement, dated as of July 10, 2015, the Third Amendment and Waiver to Amended and Restated Credit, Security and Guaranty Agreement, dated as of March 11, 2016, by the Fourth Amendment and Waiver to Amended and Restated Credit, Security and Guaranty Agreement, dated as of August 9, 2016, by the Consent and Fifth Amendment to Amended and Restated Credit, Security and Guaranty Agreement, dated as of September 1, 2016, by the Sixth Amendment to Amended and Restated Credit, Security and Guaranty Agreement, dated as of March 30, 2017, by the Consent, Joinder and Omnibus Seventh Amendment to Amended and Restated Credit, Security and Guaranty Agreement, dated as of March 8, 2018 and by the Eighth Amendment to Amended and Restated Credit, Security and Guaranty Agreement, dated as of November 6, 2018 (and as further amended, modified, supplemented and restated from time to time prior to the date hereof, the “Original Credit Agreement” and as the same is amended hereby and as it may be further amended, modified, supplemented and restated from time to time, the “Credit Agreement”), pursuant to which the Lenders have agreed to make certain advances of money and to extend certain financial accommodations to Borrowers and certain of their Affiliates in the amounts and manner set forth in the Credit Agreement.

 

B.Agent, Squadron Medical Finance Solutions, LLC (“Squadron”), and Borrowers are party to that certain Intercreditor Agreement, dated as of November 6, 2018, pursuant to which Squadron may not increase the aggregate principal amount of the Squadron Debt (as defined in the Credit Agreement), without the prior written consent of Agent.

 

C.Borrowers have requested, and Agent and the Lenders have agreed, (i) to amend the Original Credit Agreement and (ii) consent under the Squadron Intercreditor Agreement (as defined in the Credit Agreement), in each case, to permit Borrowers to enter into an amendment to the Squadron Credit Agreement (as defined in the Credit Agreement) (the “First Amendment”) and to increase the aggregate principal amount of the Debt thereunder to $65,000,000, all on the terms and conditions set forth herein.

 

 

 

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing, the terms and conditions set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Agent, the Lenders and Borrowers hereby agree as follows:

1.Recitals.  This Agreement shall constitute a Financing Document and the Recitals and each reference to the Credit Agreement in the Original Credit Agreement, unless otherwise expressly noted, will be deemed to reference the Credit Agreement as amended hereby.  The Recitals set forth above shall be construed as part of this Agreement as if set forth fully in the body of this Agreement and capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Original Credit Agreement (including those capitalized terms used in the Recitals hereto).

2.Limited Consent Under Intercreditor Agreement.  At the request of and as an accommodation to the Borrowers, subject to the terms and conditions set forth herein, including without limitation, the terms set forth in Section 6, Agent and Lenders, (a) notwithstanding anything contained in Section 4.2(v) of the Squadron Intercreditor Agreement to the contrary, hereby consent to the First Amendment, dated as of the date hereof, pursuant to which the maximum principal amount of the Squadron Debt shall be increased to $65,000,000.  The consents set forth in this Section 2 are effective solely for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of the Credit Agreement, the Squadron Intercreditor Agreement or any other Financing Document; (b) prejudice any right that Agent or Lenders have or may have in the future under or in connection with the Credit Agreement, the Squadron Intercreditor Agreement or any other Financing Document; (c) constitute a consent to or waiver of any past, present or future Default or Event of Default or other violation of any provisions of the Credit Agreement or any other Financing Documents, (d) create any obligation to forbear from taking any enforcement action, or to make any further extensions of credit or (e) establish a custom or course of dealing among any of the Credit Parties, on the one hand, or Agent or any Lender, on the other hand.

3.Amendment to Original Credit Agreement.  Subject to the terms and conditions of this Agreement, including, without limitation, the conditions to effectiveness set forth in Section 6 below, the definition of “Squadron Debt” in Section 1.1 of the Original Credit Agreement thereof is hereby amended and restated in its entirety to read as follows:

“Squadron Debt” means Debt incurred pursuant to and in accordance with the terms of the Squadron Credit Agreement in a principal amount not to exceed $65,000,000.

 

4.Representations and Warranties; Covenants; Reaffirmation of Security Interest.  Each Borrower hereby (a) confirms that all of the representations and warranties set forth in the Credit Agreement are true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) with respect to such Borrower as of the date hereof except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty shall be true and correct as of such earlier date, and (b) covenants to perform its respective obligations under the Credit Agreement.  Each Borrower confirms and agrees that all security interests and Liens granted to Agent continue in full force and effect, and all Collateral remains free and clear of any Liens, other than Permitted Liens.  Except as specifically provided in this Agreement, nothing herein is intended to impair or limit the validity, priority or extent of Agent’s security interests in and Liens on the Collateral.  Each Borrower acknowledges and agrees that the Credit Agreement, the other Financing Documents and this Agreement constitute the legal, valid and binding obligation of each Borrower, and are enforceable against each Borrower in accordance with their terms, 

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except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’ rights generally and by general equitable principles.

5.Costs and Fees.  Borrowers shall be responsible for the payment of all reasonable and documented out-of-pocket costs and fees of Agent’s counsel incurred in connection with the preparation of this Agreement and any related documents.  If Agent or any Lender uses in-house counsel for any of these purposes, Borrowers further agree that the Obligations include reasonable charges for such work commensurate with the fees that would otherwise be charged by outside legal counsel selected by Agent or such Lender for the work performed.

6.Conditions to Effectiveness.  This Agreement shall become effective as of the date on which each of the following conditions has been satisfied: 

(a)Borrowers shall have delivered to Agent this Agreement, duly executed by an authorized officer of each Borrower; 

(b)(i) Agent shall have received executed copies of the First Amendment and all other schedules, documents or instruments and all other material ancillary agreements, instruments and documents to be executed or delivered in connection therewith and (ii) all conditions precedent (other than the effectiveness of this Agreement) to the effectiveness of the First Amendment shall have been satisfied or waived;

(c)all of the representations and warranties of Borrowers set forth in the herein and in the other Financing Documents are true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) with respect to such Borrower as of the date hereof except to the extent that any such representation or warranty relates to a specific date in which case such representations and warranties were true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) on and as of such date (and such parties’ delivery of their respective signatures hereto shall be deemed to be its certification thereof);

(d)no Default or Event of Default shall exist under any of the Financing Documents (and such parties’ delivery of their respective signatures hereto shall be deemed to be its certification thereof); 

(e)Borrower shall have delivered such other documents, information, certificates, records, permits, and filings as the Agent may reasonably request; and

(f)Agent shall have received from Borrowers all of the fees owing pursuant to this Agreement.  

7.Release.  In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Borrower, voluntarily, knowingly, unconditionally and irrevocably, with specific and express intent, for and on behalf of itself and all of its respective parents, subsidiaries, affiliates, members, managers, predecessors, successors, and assigns, and each of their respective current and former directors, officers, shareholders, agents, and employees, and each of their respective predecessors, successors, heirs, and assigns (individually and collectively, the “Releasing Parties”) does hereby fully and completely release, acquit and forever discharge each of Agent, Lenders, and each their respective parents, subsidiaries, affiliates, members, managers, shareholders, directors, officers and employees, and each of their respective predecessors, successors, heirs, and assigns (individually and collectively, the “Released Parties”), of and from any and all actions, causes of action, suits, debts, disputes, damages, claims, obligations, liabilities, costs, expenses and demands of any kind whatsoever, at law or in equity, whether matured or unmatured, liquidated or unliquidated, vested or contingent, choate or inchoate, known or unknown that the Releasing Parties (or any of them) has against the Released Parties or any of them 

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(whether directly or indirectly), based in whole or in part on facts, whether or not now known, existing on or before the Effective Date, that relate to, arise out of or otherwise are in connection with: (i) any or all of the Financing Documents or transactions contemplated thereby or any actions or omissions in connection therewith or (ii) any aspect of the dealings or relationships between or among any or all of the Borrowers, on the one hand, and any or all of the Released Parties, on the other hand, relating to any or all of the documents, transactions, actions or omissions referenced in clause (i) hereof.  Each Borrower acknowledges that the foregoing release is a material inducement to Agent’s and Lender’s decision to enter into this Agreement and agree to the modifications contemplated hereunder, and has been relied upon by Agent and Lenders in connection therewith.

8.No Waiver or Novation.  The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided in this Agreement, operate as a waiver of any right, power or remedy of Agent, nor constitute a waiver of any provision of the Credit Agreement, the Financing Documents or any other documents, instruments and agreements executed or delivered in connection with any of the foregoing.  Nothing herein is intended or shall be construed as a waiver of any existing Defaults or Events of Default under the Credit Agreement or other Financing Documents or any of Agent’s rights and remedies in respect of such Defaults or Events of Default.  This Agreement (together with any other document executed in connection herewith) is not intended to be, nor shall it be construed as, a novation of the Credit Agreement.

9.Affirmation.  Except as specifically amended pursuant to the terms hereof, each Borrower hereby acknowledges and agrees that the Credit Agreement and all other Financing Documents (and all covenants, terms, conditions and agreements therein) shall remain in full force and effect, and are hereby ratified and confirmed in all respects by Borrowers.  Each Borrower covenants and agrees to comply with all of the terms, covenants and conditions of the Credit Agreement and the Financing Documents, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Agent’s or any Lender’s part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions.  Each Borrower hereby agrees that (i) all representations and warranties of Borrowers contained in the Original Credit Agreement and the other Financing Documents are true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) as of the date hereof (and such parties’ delivery of their respective signatures hereto shall be deemed to be its certification thereof), except to the extent such representations and warranties expressly relate to a specific date, in which case such representations and warranties were true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) on and as of such date and (ii) no Default or Event of Default shall exist under any of the Financing Documents (and each Borrower’s delivery of its signatures hereto shall be deemed to be its certification thereof).  In consideration of the accommodations set forth herein, each Borrower hereby acknowledges, reaffirms, confirms and ratifies its prior pledge and grant to Agent, for its benefit and for the benefit of Lenders, a continuing general lien in, upon, and to the personal property set forth on Schedule 9.1 of the Credit Agreement, pursuant to the Credit Agreement, and expressly acknowledges that such lien and security interest secures the Obligations.

10.Confidentiality.  No Borrower will disclose the contents of this Agreement, the Credit Agreement or any of the other Financing Documents to any third party (including, without limitation, any financial institution or intermediary) without Agent’s prior written consent, other than to Borrowers’ officers and advisors on a need-to-know basis or as otherwise may be required by Law, including to any court or regulatory agency having jurisdiction over such Borrower.  Each Borrower agrees to inform all such persons who receive information concerning this Agreement, the Credit Agreement and the other Financing Documents that such information is confidential and may not be disclosed to any other person except as may be required by Law, including to any court or regulatory agency having jurisdiction over such Borrower.  

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11.Miscellaneous.

(a)Reference to the Effect on the Credit Agreement.  Upon the effectiveness of this Agreement, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of similar import shall mean and be a reference to the Credit Agreement, as amended by this Agreement.  Except as specifically amended above, the Credit Agreement, and all other Financing Documents (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified and confirmed in all respects by Borrowers.

(b)Incorporation of Credit Agreement Provisions.  The provisions contained in Section 11.6 (Indemnification) and Article 12 of the Credit Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

(c)GOVERNING LAW.  THIS AGREEMENT AND EACH OTHER FINANCING DOCUMENT, AND ALL MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM (WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF MARYLAND, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

(d)WAIVER OF JURY TRIAL.  EACH BORROWER, AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  EACH BORROWER, AGENT AND EACH LENDER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH BORROWER, AGENT AND EACH LENDER WARRANTS AND REPRESENTS THAT IT HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

(e)Headings.  Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

(f)Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by facsimile or by electronic mail delivery of an electronic version (e.g., .pdf or .tif file) of an executed signature page shall be effective as delivery of an original executed counterpart hereof and shall bind the parties hereto. 

(g)Entire Agreement.This Agreement constitutes the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

(h)Severability.  In case any provision of or obligation under this Agreement shall be invalid, illegal or unenforceable in any applicable jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

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(i)Successors/Assigns.  This Agreement shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the parties hereto, subject to the provisions of the Credit Agreement and the other Financing Documents.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

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IN WITNESS WHEREOF, intending to be legally bound, and intending that this document constitute an agreement executed under seal, the undersigned have executed this Agreement under seal as of the day and year first hereinabove set forth.

 

 

	
AGENT:
	
MIDCAP FUNDING IV TRUST, a Delaware statutory trust 

By: Apollo Capital Management, L.P.,

its investment manager

 

By:Apollo Capital Management GP, LLC,

its general partner

 

 

By: __/s/ Maurice Amsellem_____________  (SEAL)

Name: Maurice Amsellem

Title:   Authorized Signatory

 

	
LENDERS
	
MIDCAP FUNDING IV TRUST, a Delaware statutory trust 

By: Apollo Capital Management, L.P.,

its investment manager

 

By:Apollo Capital Management GP, LLC,

its general partner

 

 

By: ____/s/ Maurice Amsellem __________  (SEAL)

Name: Maurice Amsellem

Title:   Authorized Signatory

 

 

 

[Signatures Continue on Following Page]

 

 

 

BORROWERS:ALPHATEC HOLDINGS, INC.,

a Delaware corporation

 

 

By: __/s/ Jeffrey G. Black __________ (SEAL)
Name:  Jeff Black
Title:    Chief Financial Officer

 

 

ALPHATEC SPINE, INC.,

a California corporation

 

 

By: ___/s/ Jeffrey G. Black __________ (SEAL)
Name:  Jeff Black
Title:    Chief Financial Officer

 

 

SAFEOP SURGICAL, INC.,

a Delaware corporation

 

 

By: ___/s/ Jeffrey G. Black __________ (SEAL)
Name:  Jeff Black
Title:    Chief Financial Officer

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