Document:

Exhibit 10.3

 

December 2, 2007

 

Eagle
Bancorp, Inc.

7815
Woodmont Avenue

Bethesda,
Maryland 20814

 

Ladies
and Gentlemen:

 

The undersigned has been
advised that, as of the date of this letter, the undersigned may be deemed to
be an “affiliate” of Fidelity & Trust Financial Corporation, a
Maryland corporation (“Fidelity”), as the term “affiliate” is defined for
purposes of paragraphs (c) and (d) of Rule 145 of the rules and
regulations (the “Rules and Regulations”) of the Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933
Act”).

 

Pursuant to the terms of the
Agreement and Plan of Merger dated as of December 2, 2007 (the “Merger
Agreement”) among Fidelity, Fidelity & Trust Bank, its wholly owned
subsidiary, and Eagle Bancorp, Inc., a Maryland corporation (“Eagle”),
Fidelity will be merged with and into Eagle, with Eagle being the surviving
corporation in the merger (the “Merger”)

 

As a result of the Merger,
the undersigned will receive shares of common stock, par value $.01 per share,
of Eagle (“Eagle Common Stock”) in exchange for shares owned by the undersigned
of common stock, par value $.01 per share, of Fidelity (the “Fidelity Common
Stock”).

 

The undersigned represents,
warrants and covenants to Eagle and Fidelity that, as of the date the
undersigned receives any Eagle Common Stock as a result of the Merger:

 

1.              The undersigned
shall not make any sale, transfer or other disposition of the Eagle Common
Stock in violation of the 1933 Act or the Rules and Regulations.

 

2.              The undersigned
has carefully read this letter and the Merger Agreement and discussed, to the
extent the undersigned felt necessary with the undersigned’s counsel or counsel
for Fidelity, the requirements of such documents and other applicable
limitations upon the undersigned’s ability to sell, transfer or otherwise
dispose of Eagle Common Stock.

 

3.              The undersigned
has been advised that the issuance of Eagle Common Stock to the undersigned
pursuant to the Merger will be registered with the SEC under the 1933 Act on a
Registration Statement on Form S-4. 
The undersigned has also been advised that, because, at the time the
Merger is submitted for a vote of the shareholders of Fidelity, the undersigned
may be deemed an affiliate of Fidelity, the undersigned may not sell, transfer
or otherwise dispose of Eagle Common Stock issued to the undersigned in the
Merger unless such sale, transfer or other disposition (i) has been
registered under the 1933 Act, (ii) is made in conformity with Rule 145
promulgated by the SEC under the 1933 Act, or (iii) in the opinion of
counsel reasonably acceptable to Eagle, or pursuant to a “no action” letter
obtained by the undersigned from the SEC staff, is otherwise exempt from
registration under the 1933 Act.

 

4.              Except as set
forth in paragraph 3 above, the undersigned understands that Eagle is under no
obligation to register the sale, transfer or other disposition of the Eagle
Common

 

 

Stock by the undersigned or on the undersigned’s behalf under the 1933
Act or to take any other action necessary in order to enable the undersigned to
make such sale, transfer or other disposition in compliance with an exemption
from such registration.

 

The undersigned also
understands that there will be placed on the certificates for the Eagle Common
Stock issued to the undersigned, or on any substitutions therefor, a legend
stating in substance:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN A TRANSACTION TO
WHICH RULE 145 PROMULGATED UNDER THE SECURITIES ACT OF 1933 APPLIES.  THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF ONLY IN
ACCORDANCE WITH THE TERMS OF A LETTER AGREEMENT BETWEEN THE REGISTERED HOLDER
HEREOF AND EAGLE BANCORP, INC, A COPY OF WHICH AGREEMENT IS ON FILE AT THE
PRINCIPAL OFFICES OF EAGLE BANCORP, INC.”

 

The undersigned also
understands that, unless the transfer by the undersigned of the undersigned’s
Eagle Common Stock has been registered under the 1933 Act or is a sale made in
conformity with the provisions of Rule 145, Eagle reserves the right to
put the following legend on the certificates issued to the undersigned’s
transferee:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND WERE ACQUIRED FROM A PERSON WHO RECEIVED SUCH
SECURITIES IN A TRANSACTION TO WHICH RULE 145 PROMULGATED UNDER THE SECURITIES
ACT OF 1933 APPLIES.  THE SECURITIES HAVE
NOT BEEN ACQUIRED BY THE HOLDER WITH A VIEW TO, OR FOR RESALE IN CONNECTION
WITH, ANY DISTRIBUTION THEREOF WITHIN THE MEANING OF THE SECURITIES ACT OF 1933
AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT OR IN ACCORDANCE WITH AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933.”

 

The undersigned acknowledges
that Eagle shall issue stop transfer instructions to its transfer agent with
respect to the certificates issued to the undersigned in order to insure
compliance with the provisions of this letter. 
It is understood and agreed that this letter agreement shall terminate
and be of no further force or effect and the restrictive legends and the
related stop transfer restrictions shall be lifted forthwith, if (i) the
securities represented thereby have been registered for sale by the undersigned
under the 1933 Act or (ii) Eagle has received 

 

2

 

either
an opinion of counsel, which opinion and counsel shall be reasonably
satisfactory to Eagle, or a “no-action” letter obtained by the undersigned from
the SEC staff to the effect that the restrictions imposed by Rule 145
under the 1933 Act no longer apply to the undersigned or (iii) due to SEC
amendments to Rule 145, the restrictions imposed under Rule 145 as of
the date hereof no longer apply to the undersigned.

 

Eagle agrees that, to the
extent necessary to permit the undersigned to sell the Eagle Common Stock
pursuant to Rule 145 and, to the extent applicable, Rule 144 under
the 1933 Act, Eagle shall use reasonable efforts to meet the current public information requirements as set forth in
paragraph (c) of Rule 144 promulgated under the 1933 Act, and will
provide persons providing this letter with such other information as they may
reasonably require and to otherwise cooperate with such persons to facilitate
any sales of Eagle Common Stock issued to such persons pursuant to this
Agreement in compliance with the provisions of Rule 144 and/or Rule 145
promulgated under the 1933 Act.

 

The undersigned further
understands and agrees that the representations, warranties, covenants and
agreements of the undersigned set forth herein are for the benefit of Eagle and
Fidelity and will be relied upon by such firms and their respective counsel and
accountants.

 

The undersigned understands
and agrees that this letter agreement shall apply to all shares of the capital
stock of Eagle and Fidelity that are deemed beneficially owned by the
undersigned pursuant to applicable federal securities laws.

 

Execution of this letter
should not be considered an admission on the part of the undersigned that the
undersigned is an “affiliate” of Fidelity as described in the first paragraph
of this letter, nor as a waiver of any rights that the undersigned may have to
object to any claim that the undersigned is such an affiliate on or after the
date of this letter.

 

	
   

  	
  Very
  truly yours

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name

  

 

Agreed
and accepted this 2nd day of December 2007 by:

 

EAGLE
BANCORP, INC.

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Ronald
  D. Paul, Chief Executive Officer

  

 

3Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(“Agreement”) is made and entered into as of the           day of December, 2007, by and between
EagleBank, a Maryland chartered commercial bank (the “Bank”), and Barry C.
Watkins (“Watkins”).

 

RECITALS:

 

WHEREAS, Eagle Bancorp, Inc.
(“Bancorp”), the parent corporation of the Bank, and Fidelity and Trust
Financial Corporation (“F&T”) have entered into an Agreement and Plan of
Merger of even date herewith (the “Merger Agreement”) pursuant to which F&T
will be merged with and into Bancorp (the “Merger”);

 

WHEREAS, in connection
with the Merger Agreement, the Bank and Fidelity and Trust Bank, the wholly
owned subsidiary of F&T (“F&T Bank”), have entered into a Plan and
Agreement of Merger pursuant to which F&T Bank will be merged with and into
the Bank (the “Bank Merger”);

 

WHEREAS, Watkins has been
a key employee of F&T Bank, serving as President and Chief Executive
Officer;

 

WHEREAS, the Bank
believes that the Bank’s retention of Watkins from and after the closing of the
Merger and the Bank Merger is important to the success of the Bank’s business;
and

 

WHEREAS, the Bank has
offered to employ Watkins, and Watkins has agreed to accept such employment, on
the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual
covenants and agreements set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.             Employment..  The Bank agrees to employ Watkins as
President of the Bank’s District of Columbia and Virginia regions and Watkins
agrees to be employed as President of the Bank’s District of Columbia and Virginia
regions, subject to the terms and provisions of this Agreement.

 

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

 

2.1           “Affiliate” means, with respect to
any Person, (i) any Person directly or indirectly controlling, controlled
by or under common control with such Person, (ii) any Person owning or
controlling fifty percent (50%) or more of the outstanding voting interests of
such Person, (iii) any officer, director, general partner, managing member,
or trustee of, or Person serving in a similar capacity with respect to, such
Person, or (iv) any Person who is an officer, director, general partner,
member, trustee, or holder of fifty percent (50%) or more of the voting
interests of any Person described in clauses (i), (ii), or (iii) of this
sentence. For purposes of this definition, the terms “controlling,” “controlled
by,” or “under common control with” shall mean the possession, direct or
indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

 

2.2           “Bank” is defined in the
Recitals.  If the Bank is merged into any
other Entity, or transfers substantially all of its business operations or
assets to another Entity, the term “Bank” shall be deemed to include such
successor Entity for purposes of applying Articles 8 and 9 of this Agreement.

 

2.3           “Bank Entities” means and includes
any of the Bank, Bancorp, F&T, F&T Bank and their Affiliates.

 

2.4           “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 

 

1

 

state or other
political subdivision of any of them having jurisdiction over the Bank or any
transaction contemplated, undertaken or proposed to be undertaken by the Bank,
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
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.

 

2.5           “Board” means the Board of Directors
of the Bank.

 

2.6           “Code” means the Internal Revenue
Code of 1986, as amended.

 

2.7           “Commencement Date” means the
Effective Time of the Merger under the Merger Agreement.

 

2.8           “Competitive Business” means the
banking and financial services business, which includes, without limitation,
consumer savings, commercial banking, the insurance and trust business, the
savings and loan business and mortgage lending, or any other business in which
any of the Bank Entities is engaged or has invested significant resources
within the prior six (6) month period in preparation for becoming actively
engaged.

 

2.9           “Competitive Products or Services”
means, as of any time, those products or services of the type that any of the
Bank Entities is providing, or is actively preparing to provide, to its
customers.

 

2.10         “Disability” means a mental or physical
condition which, in the good faith opinion of the Board, renders Watkins, with
reasonable accommodation, unable or incompetent to carry out the material job
responsibilities which Watkins held or the material duties to which Watkins was
assigned at the time the disability was incurred, which has existed for at
least three (3) months and which in the opinion of a physician mutually
agreed upon by the Bank and Watkins (provided that
neither party shall unreasonably withhold such agreement) is expected to be
permanent or to last for an indefinite duration or a duration in excess of nine
(9) months.

 

2.11         “Expiration Date” means the date three (3) years
after the Commencement Date.

 

2.12         “Person” means any individual or Entity.

 

2.13         “Section 409A” means Section 409A of the Code and the
regulations and administrative guidance
promulgated thereunder.”

 

2.14         Termination Date” means the Expiration
Date or such earlier date on which the Term expires pursuant to Section 3.1
or is terminated pursuant to Section 7.2, 7.3 7.4, 7.5, 9.2 or 9.3, as
applicable.

 

Other
terms are defined throughout this Agreement and have the meanings so given
them.

 

3.             Term; Position.

 

3.1           Term. Watkins’ employment
hereunder shall commence with the Commencement Date and continue until the
Expiration Date, unless extended in writing by both the Bank and Watkins or
sooner terminated in accordance with the provisions of this Agreement (the “Term”).

 

3.2           Position. The Bank shall
employ Watkins to serve as President of the Bank’s District of Columbia and
Virginia regions.

 

2

 

3.3           No Restrictions.  Watkins represents and warrants to the Bank
that he is not subject to any legal obligations or restrictions that would
prevent or limit his entering into this Agreement and performing his
responsibilities hereunder.

 

4.             Duties
of Watkins.

 

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

 

4.2           Performance of Services.
Watkins agrees to devote his full business time and attention to the
performance of his duties and responsibilities under this Agreement, and shall
use his best efforts and discharge his duties to the best of his ability for
and on behalf of the Bank and toward its successful operation.  Watkins agrees that, without the prior
written consent of the Board, he will not during the Term, directly or
indirectly, perform services for or obtain a financial or ownership interest in
any other Entity (an “Outside Arrangement”) if such Outside Arrangement would
interfere with the satisfactory performance of his duties to the Bank, present
a conflict of interest with the Bank and/or Bancorp, breach his duty of loyalty
or fiduciary duties to the Bank and/or Bancorp, or otherwise conflict with the
provisions of this Agreement.  Watkins
shall promptly notify the Board of any Outside Arrangement, provide the Bank
with any written agreement in connection therewith and respond fully and
promptly to any questions that the Board may ask with respect to any Outside
Arrangement.  If the Board determines
that Watkins’ participation in an Outside Arrangement would interfere with his
satisfactory performance of his duties to the Bank, present a conflict of
interest with the Bank and/or Bancorp, breach his duty of loyalty or fiduciary
duties to the Bank and/or Bancorp, or otherwise conflict with the provisions of
this Agreement, Watkins shall not undertake, or shall cease, such Outside
Arrangement as soon feasible after the Board notifies him of such
determination.  Notwithstanding any provision
hereof to the contrary, this Section 4.2 does not restrict Watkins’ right
to (i) own securities of any Entity that files periodic reports with the
Securities and Exchange Commission under Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended; provided that his total ownership
constitutes less than two percent (2%) of the outstanding securities of such
company.

 

4.3           Compliance with Law.  Watkins shall comply with all laws, statutes,
ordinances, rules and regulations relating to his employment and duties.

 

5.             Compensation; Benefits. As
full compensation for all services rendered pursuant to this Agreement and the
covenants contained herein, the Bank shall pay to Watkins the following:

 

5.1           Salary. Beginning on the
Commencement Date and continuing through the end of the Term, Watkins shall be
paid a salary (“Salary”) of Two Hundred Fifty Thousand Dollars ($250,000) on an
annualized basis.  The Bank shall pay
Watkins’ Salary in equal installments in accordance with the Bank’s regular
payroll periods as may be set by the Bank from time to time.  Watkins’ Salary may be further increased from
time to time, at the discretion of the Board. Watkins may also be entitled to
certain incentive bonus payments as determined by Board approved incentive
plans.

 

5.2           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.

 

5.3           Vacation and Leave.  Watkins shall be entitled to such vacation
and leave as may be provided for under the current and future leave and
vacation policies of the Bank.

 

5.4           Office Space. The Bank will
provide customary office space and office support to Watkins beginning on the
Commencement Date.

 

5.5           Car Allowance.  During the Term, the Bank will pay Watkins a
car allowance of One Thousand Five Hundred 
Dollars ($1500) per month.

 

5.6           Non-Life Insurance. The Bank
will provide Watkins with group health, disability and other insurance as the
Bank may determine appropriate for all employees of the Bank.

 

3

 

5.7 Life
Insurance.

 

5.7.1 The Bank
will pay the premiums, up to a maximum of Five Thousand Dollars ($5,000) per
year, for the cost of a term life insurance policy, provided Watkins submits all
appropriate documentation showing the amount of the premium.

 

5.7.2 The Bank may, at its cost, obtain and maintain “key-man” life
insurance and/or Bank-owned life insurance on Watkins in such amount as
determined by the Board from time to time. Watkins agrees to cooperate fully
and to take all actions reasonably required by the Bank in connection with such
insurance.

 

5.7           Parking.  Paid parking at Watkins’ regular worksite
will be provided by the Bank at its expense.

 

5.8           Expenses. The Bank shall,
promptly upon presentation of proper expense reports therefor, pay or reimburse
Watkins, in accordance with the policies and procedures established from time
to time by the Bank for its officers, for all reasonable and customary travel
(other than local use of an automobile for which Watkins is being  provided the car allowance) and other
out-of-pocket expenses incurred by Watkins in the performance of his duties and
responsibilities under this Agreement and promoting the business of the Bank,
including approved membership fees, dues and the cost of attending business
related seminars, meetings and conventions.

 

5.9           Retirement Plans. Watkins
shall be entitled to participate in any and all qualified pension or other
retirement plans of the Bank which may be applicable to personnel of the Bank.

 

5.10         Other Benefits. While this
Agreement is in effect, Watkins shall be entitled to all other benefits that
the Bank provides from time to time to its officers.

 

5.11         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.

 

5.12         Equity Compensation.  Watkins shall be eligible to receive awards
of options, SARs and /or Restricted Stock under the 2006 Stock Plan of Bancorp,
from time to time, at the discretion of the 2006 Plan Committee or Compensation
Committee of the Board of Directors of Bancorp.

 

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

 

6.1           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 the Bank’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 the Bank. 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 the Bank 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.

 

7.             Termination of Agreement.
Prior to the Expiration Date, the Term of this Agreement may be terminated as
provided below in this Article 7.

 

7.1           Definition of Cause. For
purposes of this Agreement, “Cause” means:

 

4

 

(a) any act
of theft, fraud, intentional misrepresentation, personal dishonesty or breach of fiduciary duty involving personal
gain or similar conduct by Watkins with respect to the Bank Entities or
the services to be rendered by him 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 6.1 within a reasonable
period of time after written notice thereof;

 

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

 

(d) indictment
of Watkins, or Watkins’ conviction or plea of nolo
contndere at the trial court level, of a
felony, or any crime of moral turpitude, or involving dishonesty, deception or
breach of trust;

 

(e) any of
the following conduct on the part of Watkins that Watkins has not been
corrected or cured within thirty (30) days after having received written notice
from the Bank detailing and describing such conduct (provided, however, that
the Bank shall not be required to provide Watkins with notice and opportunity
to cure more than two (2) times in any twelve (12) month period):

 

(i)            habitual absenteeism, or the failure
by or the inability of Watkins to devote full time, attention and energy to the
performance of Watkins’ duties pursuant to this Agreement (other than by reason
of his death or Disability);

 

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

 

(iii)          willful or intentional misconduct on
the part of Watkins that results, or that the Board in good faith determines
may result, in substantial injury to the Bank or any of its Affiliates; or

 

(iv)          any action (including any failure to
act) or conduct by Watkins in violation of a material provision of this
Agreement (including but not limited to the provisions of Article 8
hereof, which shall be deemed to be material); or

 

(f)            the use of drugs, alcohol or other
substances by Watkins to an extent which materially interferes with or prevents
Watkins from performing his duties under this Agreement;

 

(g)           the determination by the Board, in
the exercise of its reasonable judgment and in good faith, that Watkins’ job
performance is substantially unsatisfactory and that he has failed to cure such
performance within a reasonable period (but in no event more than (30) days)
after written notice specifying in reasonable detail the nature of the
unsatisfactory performance; or

 

(h)           Watkins’ commission of unethical
business practices, acts of moral turpitude, financial impropriety, fraud or
dishonesty in any material matter which the Board in good faith determines
could adversely affect the reputation, standing or financial prospects of the
Bank or its Affiliates.

 

7.2                           Termination by the
Bank for Cause.  After the occurrence
of any of the conditions specified in Section 7.1, the Bank shall have the
right to terminate the Term for Cause immediately on written notice to Watkins.

 

7.3           Termination by the Bank without
Cause. The Bank shall have the right to terminate the Term at any time on
written notice without Cause, for any or no reason, such termination to be
effective on the date on which the Bank gives such notice given to Watkins or such
later date as may be specified in such notice.

 

7.4           Termination for Death or
Disability.  The Term shall
automatically terminate upon the death of Watkins or upon the Board’s
determination that Watkins is suffering from a Disability.

 

5

 

7.5           Termination by Watkins.
Watkins shall have the right to terminate the Term at any time, such
termination to be effective on the date one hundred eighty (180) days after the
date on which Watkins gives such notice to the Bank unless Watkins and the Bank
agree in writing to a later date on which such termination is to be
effective.  After receiving notice of
termination, the Bank may require Watkins to devote his good faith energies to
transitioning his duties to his successor and to otherwise helping to minimize
the adverse impact of his resignation upon the operations of the Bank.  If Watkins fails or refuses to fully
cooperate with such transition, the Bank may immediately terminate Watkins, in
which case it shall no longer have any obligation to pay any Salary or provide
any benefits to him, but solely for purposes of Sections 8.5 and 8.6 below, the
Termination Date shall be the date one hundred eighty (180) days after the date
on which Watkins gives notice of termination to the Bank pursuant to the first
sentence of this Section 7.5, or the later date referred to therein,
whichever is later.

 

7.6           Pre-Termination Salary and
Expenses.  Without regard to the
reason for, or the timing of, the termination or expiration of the Term:  (a) the Bank shall pay Watkins any
unpaid Salary due for the period prior to the Termination Date; and (b),
following submission of proper expense reports by Watkins, the Bank shall
reimburse Watkins for all expenses incurred prior to the Termination Date and
subject to reimbursement pursuant to Section 5.8 hereof.  These payments shall be made promptly upon
termination and within the period of time mandated by law.

 

7.7           Severance if Termination by the
Bank without Cause. Provided that Watkins signs and delivers to the Bank no
later than twenty-one (21) days after the Termination Date a General Release
and Waiver in the form attached to this Agreement as Exhibit A, and
except as set forth below, if the Term is terminated by the Bank without Cause,
the Bank shall, for a period of one (1) year following the Termination
Date (i) continue to pay Watkins, in the manner set forth below, Watkins’
Salary at the rate being paid as of the Termination Date, and, (ii) if
Watkins timely elects to continue his health insurance benefits under COBRA,
pay to the insurer Watkins’ premiums for health insurance benefits continuation
(for so long as Watkins remains qualified for such continuation under COBRA);
provided, however, that Watkins shall not be entitled to any such payments of
Salary pursuant to this Section 7.7 if he is otherwise entitled to
payments pursuant to Section 9.4 in relation to a Change in Control.  Any payments due Watkins pursuant to this Section 7.7
shall be paid to Watkins in installments on the same schedule as Watkins was
paid Salary immediately prior to the Termination Date, each installment to be
the same amount Watkins would have been paid under this Agreement if he had not
been terminated.  In the event Watkins
breaches any provision of Article 8 of this Agreement after termination,
Watkins’ entitlement to any payments pursuant to this Section 7.7 shall
terminate as of the date of such breach, with Watkins having the obligation to
repay to the Bank any payments that were paid to him pursuant to this Section 7.7
with respect to the period after such breach occurred and before such breach
became known to the Bank.  Furthermore,
if termination was initially not for Cause but the Bank thereafter determines
in good faith that that, during the Term, Watkins had engaged in conduct that
would have constituted Cause, Watkins’ entitlement to any payments pursuant to
this Section 7.7 shall terminate retroactively to the Termination Date,
with Watkins having the obligation to repay to the Bank all payments that were
paid to him pursuant to this Section 7.7. 
Notwithstanding anything to the
contrary in this Section 7.7, any payment pursuant to this Section shall
be subject to any delay in payment required by Section 9.5 hereof.

 

7.8           Termination After Change in
Control.  Sections 9.2 and 9.3 set
out provisions applicable to certain circumstances in which the Term may be
terminated after Change in Control.

 

8              Confidentiality; Non-Competition;
Non-Interference.

 

8.1           Confidential Information.  Watkins, during employment by the Bank and
his prior employment by F&T, will have, and has had, access to and become
familiar with various confidential and proprietary information of the Bank
Entities and/or relating to the business of the Bank Entities (“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 the Bank Entities which is made available only to employees with
a need to know or which is not generally made available to the public. Failure
to

 

6

 

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.

 

8.2           Nondisclosure. Watkins hereby
covenants and agrees that he shall not,
directly or indirectly, disclose or use, or authorize any Person to disclose or
use, any Confidential Information (whether or not any of the Confidential
Information is novel or known by any other Person); provided however, that this
restriction shall not apply to the use or disclosure of Confidential
Information (i) to any governmental entity to the extent required by law, (ii) which
is or becomes publicly known and available through no wrongful act of Watkins
or any Affiliate of Watkins or (iii) in connection with the performance of
Watkins’ duties under this Agreement.

 

8.3           Nondisclosure of this Agreement:  The terms, conditions and fact of this
Agreement are strictly confidential. 
From and after the date of execution of this Agreement, Watkins agrees
not to disclose, directly or indirectly, the existence of this Agreement or any
of the terms and conditions herein to any Person except that Watkins may
disclose the existence of this Agreement or the terms and conditions herein to
Watkins’ immediate family, tax, financial or legal advisers, prospective
employers (with whom Watkins’ employment is not prohibited by Section 8.5),
any taxing authority, or as required by law. 
If Watkins is asked about the existence and/or terms and conditions of
this Agreement, Watkins is permitted to state only that “the terms of my
employment are a confidential matter that I am not able to disclose.”  Watkins acknowledges that the terms of this Section 8.3
are a material inducement for the Bank to enter into this Agreement.  Notwithstanding the foregoing, Watkins may
disclose such information regarding this Agreement as may be disclosed by the
Bank Entities in any document filed with the Securities and Exchange Commission

 

8.4           Documents. All files, papers,
records, documents, compilations, summaries, lists, reports, notes, databases,
tapes, sketches, drawings, memoranda, and similar items (collectively, “Documents”),
whether prepared by Watkins, or otherwise provided to or coming into the
possession of Watkins, that contain any proprietary information about or
pertaining or relating to the Bank Entities (the “Bank Information”) shall at
all times remain the exclusive property of the Bank Entities. Promptly after a
request by the Bank or the Termination Date, Watkins shall take reasonable
efforts to (i) return to the Bank all Documents in any tangible form
(whether originals, copies or reproductions) and all computer disks or other
media containing or embodying any Document or Bank Information and (ii) purge
and destroy all Documents and Bank Information in any intangible form
(including computerized, digital or other electronic format) as may be
requested in writing by the Chief Executive Officer  of the Bank or Chairman of the Board of the
Bank, and Watkins shall not retain in any form any such Document or any
summary, compilation, synopsis or abstract of any Document or Bank Information.

 

8.5                           Non-Competition.  Watkins hereby acknowledges and agrees that,
during the course of employment by the Bank Entities, Watkins has become, and
will become, familiar with and involved in all aspects of the business and
operations of the Bank Entities. Watkins hereby covenants and agrees that from
the Commencement Date until the later to occur of (a) the date one (1) year
after the Termination Date, or (b) the Expiration Date (the “Restricted
Period”), Watkins will not at any time (except for the Bank Entities), directly
or indirectly, in any capacity (whether as a proprietor, owner, agent, officer,
director, shareholder, organizer, partner, principal, manager, member,
employee, contractor, consultant or otherwise) provide any advice, assistance
or services to any Competitive Business (as defined below) or to any Person
that is attempting to form or acquire a Competitive Business if such
Competitive Business operates, or is planning to operate, any office, branch or
other facility (in any case, a “Branch”) that is (or is proposed to be) located
within a thirty-five (35) mile radius of the Bank’s headquarters or any Branch
of the Bank Entities.  Notwithstanding
any provision hereof to the contrary, this Section 8.5.1 does not restrict
Watkins’ right to (i) own securities of any Entity that files periodic
reports with the Securities and Exchange Commission under Section 13 or 15(d) of
the Securities Exchange Act of 1934, as amended; provided that his total
ownership constitutes less than two percent (2%) of the outstanding securities
of such company.

 

8.6           Non-Interference. Watkins
hereby covenants and agrees that during the Restricted Period, he will not,
directly or indirectly, for himself or any other Person (whether as a
proprietor, owner, agent, officer, director, shareholder, organizer, partner,
principal, member, manager, employee, contractor, consultant or any other
capacity):

 

7

 

(a)           induce or attempt to induce any
customer, supplier, officer, director, employee, contractor, consultant, agent
or representative of, or any other Person that has a business relationship with
any Bank Entity, to discontinue, terminate or reduce the extent of its, his or
her relationship with any Bank Entity or to take any action that would disrupt
or otherwise be disadvantageous to any such relationship;

 

(b)           solicit any customer of any of the
Bank Entities for the purpose of providing any Competitive Products or Services
to such customer (other than any solicitation to the general public that is not
disproportionately directed at Bank customers); or

 

(c)           solicit any employee of any of the
Bank Entities to commence employment with, become a consultant or independent
contractor to or otherwise provide services for the benefit of any other
Competitive Business

 

In applying this Section 8.6:

 

(i)            the term “customer” shall be deemed
to include, at any time, any Person to which any of the Bank Entities had, during
the six (6) month period immediately prior to such time, (A) sold any
products or provided any services or (B) submitted, or been in the process
of submitting or negotiating, a proposal for the sale of any product or the
provision of any services;

 

(ii)           the term “supplier” shall be deemed
to include, at any time, any Person which, during the six (6) month period
immediately prior to such time, (A) had sold any products or services to
any of the Bank Entities or (B) had submitted to any of the Bank Entities
a proposal for the sale of any products 
or services;

 

(iii)          for purposes of clause (c), the term “employee”
shall be deemed to include, at any time, any Person who was employed by any of
the Bank Entities within the prior six (6) month period (thereby
prohibiting Watkins from soliciting any Person who had been employed by any of
the Bank Entities until six (6) months after the date on which such Person
ceased to be so employed); and

 

(iv)          If during the Restricted Period any
employee of any of the Bank Entities accepts employment with or is otherwise
retained by any Competitive Business of which Watkins is an owner, director,
officer, manager, member, employee, partner or employee, or to which Watkins
provides material services, it shall be presumed that such employee was hired
in violation of the restriction set forth in clause (c) of this Section 8.6,
with such presumption to be overcome only upon Watkins’ showing by a
preponderance of the evidence that he was not directly or indirectly involved
in the hiring, soliciting or encouraging such employee to leave employment with
the Bank Entities.

 

8.7           Injunction. In the event of
any breach or threatened or attempted breach of any provision of this Article 8
by Watkins, the Bank 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 Watkins and each and every other Person
concerned therein from the continuation of such violative 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.

 

8.8           Reasonableness.

 

8.8.1 Watkins has
carefully read and considered the provisions of this Article 8 and, having
done so, agrees that the restrictions and agreements set forth in this Article 8
are fair and reasonable and are reasonably required for the protection of the
interests of the Bank and its business, shareholders, directors, officers and
employees. Watkins further agrees that the restrictions set forth in this
Agreement will not impair or unreasonably restrain his ability to earn a
livelihood.

 

8.8.2 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 8
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

 

8

 

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.

 

9.             Change in Control.

 

9.1                   Definition.  “Change in Control” means and shall be deemed
to have occurred if:

 

(a) 
there shall be consummated (i) any consolidation, merger, share exchange,
or similar transaction relating to Bancorp, or pursuant to which shares of
Bancorp’s capital stock are converted into cash, securities of another Entity
and/or other property, other than a transaction in which the holders of Bancorp’s
voting stock immediately before such transaction shall, upon consummation of
such transaction, own at least fifty percent (50%) of the voting power of the
surviving Entity, or (ii) any sale of all or substantially all of the
assets of Bancorp, other than a transfer of assets to a related Person which is
not treated as a change in control event under §1.409A-3(i)(5)(vii)(B) of
the U.S. Treasury Regulations;

 

(b) 
any person, entity or group (each within the meaning of Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) shall become the beneficial owner (within the meaning of Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of securities of
Bancorp representing more than fifty percent (50%) of the voting power of all
outstanding securities of Bancorp entitled to vote generally in the election of
directors of Bancorp (including, without limitation, any securities of Bancorp
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) 
where over a twelve (12) month period, a majority of the members of the Board
of Directors of Bancorp (the “Bancorp Board”) are replaced by directors whose
appointment or election was not endorsed by a majority of the members of the
Bancorp Board in office prior to such appointment or election.

 

Notwithstanding
the foregoing, if the event purportedly constituting a Change in Control under Section 9.1(a),
Section 9.1(b), or Section 9.1(c) does not also constitutes a “change
in ownership” of Bancorp, a “change in effective control” of Bancorp, or a “change
in the ownership of a substantial portion of the assets” of Bancorp within the
meaning of Section 409A, then such event shall not constitute a “Change in
Control” hereunder.

 

9.2           Change in Control Termination.  For purposes of this Agreement, a “Change in
Control Termination” means that while this Agreement is in effect:

 

(a)           Watkins’ employment with the Bank is
terminated without Cause (i) within one hundred twenty (120) days
immediately prior to and in conjunction with a Change in Control or (ii) within
twelve (12) months following consummation of a Change in Control; or

 

(b)           Within twelve (12) months following
consummation of a Change in Control, Watkins’ title, duties and or position
have been materially reduced such that Watkins is not in a comparable position
(with materially comparable compensation, benefits and responsibilities and is
located within twenty-five (25) miles of Watkins’ primary worksite) to the
position he held immediately prior to the Change in Control, and within thirty
(30) days after notification of such reduction he notifies the Bank that he is
terminating his employment due to such change in his employment unless such
change is cured within thirty (30) days of such notice by providing him with a
comparable position (including materially comparable compensation and benefits
and is located within twenty-five (25) miles of Watkins’ primary
worksite).  If Watkins’ employment is
terminated under this Section, his last day of employment shall be mutually
agreed to by Watkins and the Bank, but shall be not more than sixty (60) days
after such notice is given by Watkins.

 

9.3           Window Period Resignation After
Change in Control.  If at the
expiration of the twelve (12) month period following consummation of a Change
in Control (the “Action Period”), Watkins employment by the Bank has not been
terminated, Watkins may, by giving written notice to the Bank within the thirty
(30) day period immediately following the last day of the Action Period, elect
to terminate the Term, in which event his last day of employment will be as
mutually agreed to by the Bank and Watkins but which shall be not more than
sixty (60) days after such notice is given by Watkins.

 

9

 

9.4           Change in Control Payment.  If there is a Change in Control Termination
pursuant to Section 9.2 or Watkins resigns after the Action Period
pursuant to Section 9.3, Watkins shall be paid a lump-sum cash payment
(the “Change Payment”) equal to 2.99 times Watkins’ Salary at the highest rate
in effect during the twelve (12) month period immediately preceding his
Termination Date, such Change Payment to be made to Watkins within forty-five
(45) days after the later of (i) his Termination Date or (ii) the
date of the Change in Control, the exact date of payment to be determined in
the sole discretion of the Bank; provided, however, that the Bank shall be
relieved of its obligation to pay the Change Payment if Watkins fails to sign
and deliver to the Bank no later than twenty-one (21) days after the
Termination Date a General Release and Waiver in the form attached to this
Agreement as Exhibit A, 
Notwithstanding the foregoing, in accordance with Section 9.6 below
the date on which the Change Payment shall be paid to Watkins shall be delayed
in order to ensure that such payment is not subject to excise tax under Section 409A.

 

9.5           Adjustment.

 

(a)           Notwithstanding anything in this
Agreement to the contrary, if the Determining Firm (as defined in Section 9.5(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 the Bank to or for the benefit of Watkins
(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 the Bank
pursuant to Code Section 280G of the Code (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 9.5, will be made by a reputable law or accounting
firm (the “Determining Firm”) selected by the Bank.  All fees and expenses of the Determining Firm
will be obligations solely of the Bank. 
The determination of the Determining Firm will be binding upon the Bank
and Watkins.

 

9.6           Construction; Compliance with
409A, Delay in Payment.

 

(a)           It is the intention of the parties
hereto that this Agreement and the payments provided for hereunder shall be in
accordance with Section 409A, and thus avoid the imposition of any excise
tax and interest on Watkins pursuant to Section 409A(a)(1)(B) of the
Code, and this Agreement shall be interpreted and construed consistent with
this intent.  Watkins acknowledges and
agrees that he shall be solely responsible for the payment of any excise tax or
penalty which may be imposed or to which he may become subject as a result of
the payment of any amounts under this Agreement.

 

(b)           Notwithstanding anything to the
contrary contained herein, any payment hereunder that is considered “nonqualified
deferred compensation” that is to be made to Watkins as a “specified employee”,
in each case as defined and determined for purposes of Section 409A,
within six (6) months following Watkins’ “separation from service” (as
determined in accordance with Section 409A), then to the extent that such
payment is not otherwise permitted under Section 409A such that it would
be exempt from the excise tax thereunder, such payment shall be delayed and
shall be paid on the first business day of the seventh calendar month following
Watkins’ separation from service, or, if earlier upon Watkins’ death.  To the extent that any payment to Watkins
which is payable in installments is required to be deferred pursuant to this Section 9.6(b),
such deferred installments shall be paid on the first business day of the
seventh month following Watkins’ separation from service, or, if earlier upon
Watkins’ death, and any remaining installments shall be paid as scheduled.  For purposes of this Agreement any payment to
Watkins which is payable in installments represents the right to a series of
separate payments.

 

(c)           The parties hereto agree that they
shall take such actions as may be necessary and permissible under applicable
law, regulation and guidance to amend or revise this Agreement in order to
fully comply with Section 409A.

 

10

 

10.           Assignability.  Watkins shall have no right to assign this
Agreement or any of his rights or obligations hereunder to another party or
parties.  The Bank may assign this
Agreement to any of its Affiliates or to any Person that acquires a substantial
portion of the operating assets of the Bank. 
Upon any such assignment by the Bank, references in this Agreement to
the Bank shall automatically be deemed to refer to such assignee instead of, or
in addition to, the Bank, as  appropriate
in the context.

 

11.           Governing
Law; Venue. 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 effect to the choice of law rules thereof. Any action to enforce any provision of this
Agreement may be brought only in a court of the State of Maryland or in the
United States District Court for the District of Maryland.  Accordingly, each party (a) agrees to
submit to the jurisdiction of such courts and to accept service of process at
its address for notices and in the manner provided in Section 12 for the
giving of notices in any such action or proceeding brought in any such court
and (b) irrevocably waives any objection to the laying of venue of any
such proceeding brought in such a court and any claim that any such
proceeding brought in such a court has been brought in an inconvenient or
inappropriate forum.

 

12.           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  as follows: (a) when
hand delivered to the other party; (b) when received by facsimile at the
facsimile number set forth below, provided, however, that any notice given by
facsimile shall not be effective unless either (i) a duplicate copy of
such facsimile notice is promptly given by depositing the same in a United
States post office first-class postage prepaid and addressed to the applicable
party as set forth below or (ii) the receiving party delivers a written
confirmation of receipt for such notice either by facsimile or by any other
method permitted under this section;; or (c) deposited in a United States
post office with first-class certified mail, return receipt requested, postage
prepaid and addressed to the applicable party as set forth below; or (d) 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 applicable party as set forth below
with next-business-day delivery guaranteed; provided that the sending party
receives a confirmation of delivery from the delivery service provider. Any
notice given by facsimile shall be deemed received on the date on which notice
is received except that if such notice is received after 5:00 p.m. (recipient’s
time) or on a non-business day, notice shall be deemed given the next business
day).  Any notice sent by Untied States
mail shall be deemed given three (3) business days after the same has been
deposited in the United States mail.  Any
notice given by national overnight delivery service shall be deemed given on
the first business day following deposit with such delivery service.  For purposes of this Agreement, the term “business
day” shall mean any day other than a Saturday, Sunday or day that is a legal
holiday in Montgomery County, Maryland. 
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:

  	
  Barry C. Watkins

  	
   

  
	
   

  	
  11709 Castlewood Court_

  	
   

  
	
   

  	
  Potomacc, MD 20854

  	
   

  
	
   

  	
  Fax No.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To:

  	
  EagleBank

  	
   

  
	
   

  	
  c/o Ronald D. Paul

  	
   

  
	
   

  	
  7815 Woodmont Ave.

  	
   

  
	
   

  	
  Bethesda, MD 20814

  	
   

  
	
   

  	
  Fax No.: 301.986-8529

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  cc:

  	
  Fred Sommer, Esquire

  
	
   

  	
   

  	
  Shulman, Rogers,
  Gandal, Pordy & Ecker, P.A.

  
	
   

  	
   

  	
  11921 Rockville Pike, 3rd
  Floor

  
	
   

  	
   

  	
  Rockville, Maryland
  20852

  
	
   

  	
   

  	
  Fax No.: 301.230-2891

  
					

 

13.           Entire Agreement. This
Agreement contains all of the agreements and understandings between the parties
hereto with respect to the employment of Watkins by the Bank, and supersedes
all prior agreements, 

 

11

 

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.

 

14.           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.

 

15.           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.

 

16.           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.

 

17.           Gender and Number. 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.

 

18.           Binding Effect. This Agreement
is and shall be binding upon, and inures to the benefit of, the Bank, its
successors and assigns, and Watkins and his 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:

  	
   

  
	
   

  	
  Name: Ronald D. Paul

  
	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BARRY C. WATKINS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

12

 

Attachment A

 

Form of

General Release and Waiver of All
Claims

 

Barry Watkins (“you”)
executes this General Release And Waiver of All Claims (the “Release”) as a condition of receiving certain payments and
other benefits in accordance with the terms of Section 7.7 [or 9.4 if covered by that provision instead] of your
Employment Agreement dated
            ,
2007.  All capitalized terms used but not
otherwise defined herein shall have the same meaning as in your Employment
Agreement.

 

1.  RELEASE.

 

You hereby release and forever discharge the
Bank and Eagle Bancorp [modify to
specifically  include any additional
Affiliates] and each and every one of their former or current
subsidiaries, parents, affiliates, directors, officers, employees, agents,
parents, affiliates, successors, predecessors, subsidiaries, assigns and
attorneys (the “Released Parties”) from any and
all charges, claims, damages, injury and actions, in law or equity, which you
or your heirs, successors, executors, or other representatives ever had, now
have, or may in the future have by reason of any act, omission, matter, cause
or thing through the date of your execution of this Release. You understand
that this Release is a general release of all claims you may have against the
Released Parties based on any act, omission, matter, case or thing through the
date of your execution of this Release.

 

2.  WAIVER.

 

You realize there are many laws and regulations
governing the employment relationship. These include, but are not limited to,
Title VII of the Civil Rights Acts of 1964 and 1991; the Age Discrimination in
Employment Act of 1967; the Americans with Disabilities Act; the National Labor
Relations Act; 42 U.S.C. § 1981; the Family and Medical Leave Act; the Employee
Retirement Income Security Act of 1974 (other than any accrued benefit(s) to
which you have a non-forfeitable right under any pension benefit plan); the
Maryland Civil Rights Act, the Maryland Wage Payment and Collection Law,
Maryland Occupational Safety and Health Act, the Maryland Collective Bargaining
Law, and any other state, local and federal employment laws; and any amendments
to any of the foregoing. You also understand there may be other statutes and
laws of contract and tort that also relate to your employment. By signing this
Release, you waive and release any rights you may have against the Released
Parties under these and any other laws based on any act, omission, matter,
cause or thing through the date of your execution of this Release. You also
agree not to initiate, join, or voluntarily participate in any action or suit
in any court or to accept any damages or other relief from any such proceeding
brought by anyone else based on. any act, omission, matter, cause or thing
through the date of your execution of this Release.

 

13

 

3.              NOTICE PERIOD.

 

This document is important. We advise you to
review it carefully and consult an attorney before signing it, as well as any
other professional whose advice you value, such as an accountant or financial
advisor. If you agree to the terms of this Release, sign in the space indicated
below for your signature. You will have twenty-one (21) calendar days from the
date you receive this document to consider whether to sign this Release. If you
choose to sign the Release before the end of that twenty-one day period, you
certify that you did so voluntarily for your own benefit and not because of any
coercion.

 

4.              RETURN OF PROPERTY.

 

You certify that you have fully complied with Section 8.4
of your Employment Agreement.

 

5.     REVOCATION.

 

You should also understand that even after you
have signed this Release, you still have seven (7) days to revoke it. To
revoke your acceptance of this Release, the Chairman of the Bank’s Board of
Directors must receive written notice before the end of the seven (7)-day
period. In the event you revoke or do not accept this Release, you will not be
entitled to any of the payments or benefits that you would have been entitled
to under your Employment Agreement by virtue of executing this Release. If you
do not revoke this Release within seven (7) days after you sign it, it
will be final, binding, and irrevocable.

 

14

 

IN
WITNESS WHEREOF, the Parties have knowingly and voluntarily executed this
Release, as of the day and year first set forth below.

 

 

	
   

  	
   

  	
   

  
	
  Barry Watkins

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EagleBank

  	
   

  	
  Date

  

 

15

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