Document:

Employment Agreement

 
Exhibit 10.11

 
EMPLOYMENT AGREEMENT 
 
This Employment Agreement (this
“Agreement”) made this 31st day of March, 2003 between SONIC AUTOMOTIVE, INC., a Delaware
corporation (the “Employer”), and E. LEE WYATT, JR. (the “Employee”). 
 
R E C I T A L S 
 
WHEREAS, the Employer desires to retain the services of the Employee; and 
 
WHEREAS, the Employee is prepared to perform those duties as set forth in this Agreement. 
 
NOW, THEREFORE, the parties intending to be legally bound
agree as follows: 
 
1.    Term of Employment. The Employer hereby employs the Employee, and the Employee hereby accepts employment from the Employer, for the period commencing April 7, 2003 (the “Commencement
Date”) and ending on the third (3rd) anniversary of the Commencement Date, unless sooner terminated
pursuant to the provisions of paragraph 5 hereof (the “Employment Period”). 
 
2.    Duties of the Employee. The Employee shall be employed by the Employer as Senior Vice President and Chief
Financial Officer, reporting to Theodore M. Wright, as President, or such other person as the Chief Executive Officer of the Employer shall designate. The Employee’s duties shall include the duties customarily performed by a chief financial
officer of a New York Stock Exchange listed corporation, and such additional duties as may from time to time be assigned by the President or the Chief Executive Officer of the Employer. The Employee shall serve the Employer faithfully in the
performance of the Employee’s duties and shall devote his full time and best efforts to his employment, including the regularly established working hours and such additional time as the requirements of the Employer and the performance of the
Employee’s duties require. The Employee 
 

 
agrees to observe and comply
with all the rules and regulations of the Employer as adopted and furnished to the Employee by the Employer’s Board of Directors from time to time. 
 
3.    Compensation. For all services rendered by the Employee under this Agreement, he shall be entitled to
compensation in accordance with the following: 
 
(a)    Base Salary. During the Employment Period, the Employee shall receive an annual base salary (“Annual Base Salary”) at the rate of THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS
($375,000.00), which shall be paid subject to applicable withholding taxes and other payroll deductions and otherwise in accordance with the payroll policies and procedures of the Employer in effect from to time to time. The Annual Base Salary will
be reviewed annually and may be adjusted as determined by the Compensation Committee of the Employer’s Board of Directors (the “Compensation Committee”) in its sole discretion based on both objective and subjective
performance criteria and on the financial performance of the Employer. 
 
(b)    Bonus. In addition to the Annual Base Salary as hereinabove provided, the Employer shall be eligible for an annual performance-based cash bonus as determined by the Compensation Committee,
in consultation with the Employer’s senior management, in its sole discretion based upon objective and/or subjective performance criteria and on the financial performance of the Employer. Such bonus will be payable in accordance with the
policies and procedures of the Employer in effect from time to time with respect to cash bonuses paid to employees. Notwithstanding the foregoing, for calendar year 2003, the Employee’s bonus shall be in accordance with the Employer’s
Incentive Compensation Plan and shall be in an amount equal to a percentage of the Employee’s Annual Base Salary paid in calendar year 2003, with a target amount of 120% and a maximum potential amount of 180%, in each case of Annual Base Salary
paid to the Employee in calendar year 2003; provided; however, the Employee’s bonus for calendar year 2003 shall be in a 
 

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minimum amount of Two Hundred
Thousand Dollars ($200,000). Such bonus will be payable in the first quarter of calendar year 2004. 
 
4.    Fringe Benefits. During the Employment Period, the Employee shall receive the following fringe benefits
of the Employer: 
 
(a)    The
use of one demonstrator vehicle annually in accordance with the personnel policies of the Employer in effect from time to time. 
 
(b)    Medical, hospitalization, disability and life insurance benefits as are provided generally to employees of the
Employer, as well as participation in the Employer’s 401(k) Plan, Employee Stock Purchase Plan and Deferred Compensation Plan, all in accordance with the Employer’s personnel policies in effect from time to time. 
 
(c)    Prompt reimbursement for all
reasonable employment, travel, entertainment and other business related expenses incurred by the Employee in accordance with the policies, practices and procedures of the Employer in effect from time to time. 
 
(d)    An annual paid vacation of fifteen
(15) days, with the other terms of such vacation to be in accordance with the policies and procedures of the Employer in effect from time to time. 
 
(e)    Reimbursement for reasonable out-of-pocket expenses incurred by the Employee in the relocation of his
household belongings from Greensboro, North Carolina to Charlotte, North Carolina, as well as reimbursement for the real estate commission (not to exceed six percent (6%)) incurred by the Employee on the sale of his present residence in Greensboro,
North Carolina. Such reimbursements shall be “grossed up” for any Federal and North Carolina state income taxes imposed on such reimbursements, based upon the Employee’s effective Federal and state tax rates. The tax gross-up
calculation shall be determined by the Employer’s accounting firm and shall be 
 

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subject to the reasonable
approval of the Employee. The reimbursements under this paragraph 4(e) shall be repayable by the Employee to the Employer if the Employee’s employment is terminated within the twelve-month period from the Commencement Date by the Employer for
Cause pursuant to paragraph 5(b) below, or if the Employee voluntarily resigns his employment with the Employer within such period. 
 
5. Termination of Employment. This Agreement shall terminate as follows: 
 
(a) Death or Disability. The Employee’s
employment shall terminate automatically upon the Employee’s death during the Employment Period. If the Employer determines in good faith that the Employee has become unable to perform the essential functions of his position, with or without
reasonable accommodation, due to illness or other physical disability and that such inability to perform is reasonably likely to continue for ninety (90) days or more, then the Employer shall give to the Employee written notice of its intention to
terminate the Employee’s employment. In such event, the Employee’s employment with the Employer shall terminate effective on the thirtieth (30th) day after receipt of such notice by the Employee provided that, within the thirty (30) days
after such receipt, the Employee shall not have returned to full time performance of the Employee’s duties. 
 
(b) Cause. The Employer may terminate the Employee’s employment at any time, without notice and with immediate effect for
Cause. For purposes of this Agreement “Cause” shall mean 
 
(i) a material breach by the Employee of the Employee’s obligations as set forth herein (other than due to disability) which material breach is not remedied within five (5) business days after
receipt of written notice from the Employer specifying such a breach; 
 
(ii) the conviction of the Employee of a felony; 
 
(iii) actions by the Employee involving moral turpitude; 
 

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(iv) willful
failure of the Employee to comply with reasonable directives of the Employer’s Board of Directors; 
 
(v) chronic absenteeism of the Employee; 
 
(vi) willful misconduct of the Employee resulting in damage to the Employer; or 
 
(vii) the Employee’s illegal use of controlled
substances. 
 
(c) Without Cause. Either
the Employee or the Employer may terminate this Agreement at any time, for any reason or without any reason. Such a termination shall be deemed a termination “without cause.” 
 
(d) By the Employee for Good Reason. The Employee may terminate this Agreement for Good Reason (as
defined below), upon thirty (30) days’ prior written notice of termination by the Employee to the Employer, which notice expressly states that the Employee is terminating this Agreement and the Employee’s employment pursuant hereto for
Good Reason, setting forth, with reasonable particularity, the grounds for such Good Reason; provided, however, such termination shall not occur if the Employer shall cure or correct the circumstances or events upon which such Good
Reason is based prior to the expiration of such thirty (30) day period. For purposes hereof, the term “Good Reason” shall mean, without the express written consent of the Employee: 
 
(i) the assignment to the Employee of duties which are a
reduction of, or which are inferior to, the Employee’s positions, duties or responsibilities with the Corporation during the preceding six (6) month period; or 
 
(ii) the reduction of the Employee’s then current Annual Base Salary. 
 
6. Obligations of the Employer Upon Termination.

 

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(a)
Generally. Except as provided in paragraph 6(b) below, upon termination of the Employee’s employment for any reason, the Employee shall be entitled only to payment of his Annual Base Salary, together with those fringe benefits described
in paragraphs 4(a), 4(b) and 4(c) hereof, through the effective date of such termination. 
 
(b) Without Cause or for Good Reason. If the Employee’s employment is terminated by the Employer without cause prior to the expiration of the Employment Period pursuant to paragraph 5(c)
above or by Employer for Good Reason prior to the expiration of the Employment Period pursuant to paragraph 5(d) above, and provided the Employee complies with the Restrictive Covenants (as defined and described in paragraph 8 below), then the
Employer shall be obligated to pay to the Employee severance pay in an amount equal to the sum of (i) the Annual Base Salary for a one-year period plus (ii) an amount equal to the average of the annual bonuses paid to the Employee prior to
termination, or if such termination takes place prior to December 31, 2003, the guaranteed minimum bonus specified in paragraph 3(b) above. Any such severance pay shall be payable to the Employee, subject to applicable withholding taxes and other
regular payroll deductions, in twelve (12) equal monthly installments commencing as of the first full month following the date of such termination of employment, and will be offset against (and thereby reduce) any other severance to which the
Employee might be entitled from the Employer pursuant to any agreement or policy. 
 
7. Stock Options. The Employee shall be eligible to participate in the Sonic Automotive, Inc. Amended and Restated 1997 Stock Option Plan (the “Stock Option Plan”).
Subject to the approval of the Compensation Committee as soon as reasonably possible after the date of this Agreement, the Employee’s initial grant under the Stock Option Plan shall be an option to purchase seventy-five thousand (75,000) shares
of the Employer’s Class A Common Stock and shall become exercisable in three (3) equal annual installments, beginning with the first anniversary of the date of 
 

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grant. Any further grants of
options under the Stock Option Plan shall be subject to the approval of the Compensation Committee. The terms and conditions of any options granted to the Employee pursuant to the Stock Option Plan, including the initial grant specified above, shall
otherwise be governed by the provisions of the Stock Option Plan. 
 
8. Restrictive Covenants. For purposes of this Agreement, “Restrictive Covenants” mean the provisions of this paragraph 8. It is stipulated and agreed that the Employer is engaged in the
business of owning and operating automobile and/or truck dealerships, which business includes, without limitation, the marketing, selling and leasing of new and used vehicles, the servicing of automobiles and trucks, including collision repair, and
the provision of financing and insurance to automobile and truck customers (the “Business”). It is further stipulated and agreed that, as a result of the Employee’s employment by the Employer and as a result of the
Employee’s continued employment hereunder, the Employee has and will have access to valuable, highly confidential, privileged and proprietary information relating to the Employer’s Business, including, without limitation, existing and
future inventory information, customer lists, sales methods and techniques, costs and costing methods, pricing techniques and strategies, sales agreements with customers, profits and product line profitability information, financial information,
unpublished present and future marketing strategies and promotional programs, and other information regarded by the Employer as proprietary and confidential (the “Confidential Information”). It is further acknowledged that
the unauthorized use or disclosure by the Employee of any of the Confidential Information would seriously damage the Employer in its Business. 
 
In consideration of the provisions of this paragraph 8, the compensation and benefits referred to in paragraphs 3 and 4 hereof, which the
Employee acknowledges are legally sufficient to 
 

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support enforceability by the
Employer of the Restrictive Covenants against the Employee, the Employee agrees as follows: 
 
(a) During the term of this Agreement and after its termination or expiration for any reason, the Employee will not, without the Employer’s prior written consent, use, divulge, disclose, furnish
or make accessible to any third person, company or other entity, any aspect of the Confidential Information (other than as required in the ordinary discharge of the Employee’s duties hereunder). 
 
(b) During the term of this Agreement and for a period of two
years after the later of the date of the expiration or termination of this Agreement for any reason or the termination of the Employee’s employment with the Employer for any reason (the “Restrictive Period”), the
Employee shall not, directly or indirectly: 
 
(i)
Employ or solicit the employment of, or hire or retain as an agent, consultant or in any other capacity, or engage in any business enterprise with, any person who at any time during the twelve (12) calendar months immediately preceding the
termination or expiration of this Agreement for any reason was employed by the Employer; 
 
(ii) Provide or solicit the provision of products or services, similar to those provided by the Employer to any person or entity within the Restricted Territory (as hereinafter defined) who purchased
or leased automobiles, trucks or services from the Employer at any time during the twelve (12) calendar months immediately preceding the termination or expiration of this Agreement for any reason; 
 
(iii) Interfere or attempt to interfere with the terms or
other aspects of the relationship between the Employer and any person or entity from whom the Employer has purchased automobiles, trucks, parts, supplies, inventory or services at any time during the twelve (12) 
 

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calendar months immediately
preceding the termination or expiration of this Agreement for any reason; 
 
(iv) Engage in competition with the Employer or its respective successors and assigns by engaging, directly or indirectly, in a business involving the sale or leasing of automobiles or trucks or which
is otherwise substantially similar to the Business or any of its component parts, within the Restricted Territory; or 
 
(v) Provide information to, solicit or sell for, organize or own any interest in (either directly or thorough any parent, affiliate or
subsidiary corporation, partnership, or other entity), or become employed or engaged by, or act as agent for, or provide or arrange for any financing to, any person, corporation or other entity that is directly or indirectly engaged in a business in
the Restricted Territory which is substantially similar to the Business or any of its component parts, or which is otherwise competitive with the Employer’s business; provided, however, that nothing herein shall preclude the Employee from
holding not more than three percent (3%) of the outstanding shares of any publicly held company which may be so engaged in a trade or business identical or similar to the Business of the Employer, so long as such ownership does not provide to the
Employee the ability to influence the management of such company in any material respect. As used herein, “Restricted Territory” means: 
 
(1) all Standard Metropolitan Statistical Areas, as determined by the United States Office of Management and Budget, in which the
Employer has an office, store or other place of business on the date of the expiration or termination of this Agreement for any reason or the termination of the Employee’s employment with the Employer for any reason; and 
 

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(2) all
counties in all states in which the Employer has an office, store or other place of business on the date of the expiration or termination of this Agreement for any reason or the termination of the Employee’s employment with the Employer for any
reason. 
 
(c) If the Employer retains the
services of the Employee after the expiration of the term of this Agreement and the parties do not thereafter enter into another written agreement, it is hereby mutually agreed that the Restrictive Covenants, as well as the provisions of paragraphs
9 and 10 below, shall continue to govern the relations between the Employer and the Employee. 
 
9. Remedies. It is stipulated that a breach by the Employee of the Restrictive Covenants would cause irreparable damage to the Employer. The Employer, in addition to any other rights or remedies
which the Employer may have, shall be entitled to an injunction restraining the Employee from violating or continuing any violation of such Restrictive Covenants. Such right to obtain injunctive relief may be exercised at the option of the Employer,
concurrently with, prior to, after or in lieu of, the exercise of any other rights or remedies which the Employer may have as a result of any such breach or threatened breach. The Employee agrees that upon breach of any of the Restrictive Covenants,
the Employer shall be entitled to an accounting and repayment of all profits, royalties, compensation, and/or other benefits that the Employee directly or indirectly has realized or may realize as a result of, or in connection with, any such breach.
The Employee further agrees that the Restrictive Period shall be extended by a period of time equal to any period of time in which any employee is in violation of the Restrictive Covenants. 
 
10. Acknowledgment of Reasonableness. The Employee has
carefully read and considered the provisions of this Agreement and has had the opportunity for consultation with an attorney of the Employee’s choice and agrees that the restrictions set forth herein are fair and reasonably required for the
protection of the Employer. In the event that any provision relating to the 
 

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Restrictive Period, the
Restricted Territory or the scope of the restrictions shall be declared by a court of competent jurisdiction to exceed the maximum period of time, geographical area or scope that such court deems reasonable and enforceable under applicable law, such
time period, geographical area or scope of restriction held reasonable and enforceable by the court shall thereafter be the Restricted Period, Restricted Territory and/or scope under this Agreement. 
 
11. Surrender of Books and Records. The Employee
acknowledges that all files, records, lists, designs, specifications, books, products, plans and other materials owned or used by the Employer in connection with conduct of its business shall at all times remain the property of the Employer, and
that upon termination or expiration of this Agreement for any reason or the termination of the Employee’s employment with the Employer for any reason, the Employee will immediately surrender to the Employer all such materials. 
 
12. Entire Agreement. This Agreement contains the
entire agreement of the parties hereto, and shall not be modified or changed in any respect except by a writing executed by the parties hereto. 
 
13. Successors and Assigns. The rights and obligations of the Employee under this Agreement shall inure to the benefit of the
Employer, its successors and assigns, and shall be binding upon the Employee and his respective successors, heirs and assigns. The Employer shall have the right to assign, transfer, or convey this Agreement to its affiliated companies, successor
entities, or assignees or transferees of substantially all of the Employer’s business activities. This Agreement, being personal in nature to the Employee, may not be assigned by the Employee without the Employer’s prior written consent.

 
14. Notices. All notices required and
permitted to be given hereunder shall be in writing and shall be deemed to have been given (a) if delivered by hand, when so delivered, (b) if sent 
 

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by Federal Express or other
overnight express service, one (1) business day after delivery to such service, or (c) if mailed by certified or registered mail, return receipt requested, three (3) days after delivery to the post office; in each case all notices shall be addressed
to the intended recipient as follows or at such other address as is provided by either party to the other: 
 

	 If to the Employer:
	  	 With a copy to:

	
	 Sonic Automotive, Inc.
	  	 Sonic Automotive, Inc.

	 Attention: President
	  	 Attention: General Counsel

	 5401 E. Independence Blvd.
	  	 6415 Idlewild Road, Suite 109

	 Charlotte, NC 28212
	  	 Charlotte, NC 28212

	
	 If to the Employee:
	  	 With a copy to:

	
	 E. Lee Wyatt, Jr.
	  	

	 3629 Lewiston Road
	  	

	 Greensboro, NC 27410
	  	

	 	  	

 
15.
Governing Law. This Agreement shall, in all respects, be governed by and construed according to the laws of the State of North Carolina. 
 
16. Arbitration. Any dispute or controversy arising out of or relating to this Agreement shall be settled exclusively by
arbitration in Charlotte, North Carolina, in accordance with the terms of the Employer’s standard arbitration agreement, which is attached hereto and is incorporated as Exhibit A. This exclusive arbitration remedy shall not apply to the
Employer’s right to seek injunctive relief or other judicial enforcement of the Restrictive Covenants, as contained in paragraphs 8 and 9 above. 
 

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

	 EMPLOYEE:

	
	 /s/    E.
LEE WYATT, JR.

 E. Lee
Wyatt, Jr.

	
	 EMPLOYER:
  
 SONIC AUTOMOTIVE, INC.

	
	 By:
	 	 /s/    THEODORE M. WRIGHT

	 Name:
	 	 Theodore M. Wright

	 Title:
	 	 President

 
Exhibit A
– Attached 
 

13EXHIBIT 10(a)

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT (the "Agreement"), made as of this 18th day of January,
2003, by and among Sandy Spring Bancorp, Inc., a registered bank holding company
("Bancorp"), Sandy Spring Bank, a Maryland corporation and wholly owned
subsidiary of Bancorp with its main office in Olney, Maryland (the "Bank"), and
Hunter R. Hollar (the "Officer").

         W I T N E S S E T H

         WHEREAS, the Officer is employed as the President and Chief Executive
Officer of the Bank and Bancorp, subject to a certain Employment Agreement made
January 30, 1997 (as amended, the "1997 Agreement").

         WHEREAS, as a result of the skill, knowledge, and experience of the
Officer, the Board of Directors of the Bank (the "Board") desires to retain the
services of the Officer.

         WHEREAS, the Officer desires to continue to serve as the President and
Chief Executive Officer of the Bank and Bancorp.

         WHEREAS, the Officer and the Board and the Board of Directors of
Bancorp desire to enter into an Agreement setting forth the terms of conditions
of the continuing employment of the Officer and the related rights and
obligations of each of the parties.

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is agreed as follows:

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<page>

1. Employment. The Officer is employed as the President and Chief Executive
Officer of the Bank and Bancorp. The Officer shall perform all duties and shall
have all powers which are commonly incident to the office of President and Chief
Executive Officer or which, consistent with that office, are assigned to the
Officer by the Board of Directors. In addition to the major job accountabilities
set forth in the job description maintained by the Human Resources Division, the
Officer's duties include, but are not limited to:

         a.      Making recommendations concerning the strategies, policies, and
                 tactics of Bancorp and the Bank;

         b.      Management oversight of the day-to-day activities of Bancorp,
                 the Bank, and its respective subsidiaries including management
                 oversight of and supervision of the officers and employees
                 engaged in these functions;

         c.      Promoting the Bank and its services;

         d.      Managing the efforts of Bancorp and the Bank to comply with
                 applicable laws and regulations; and

         e.      Providing complete, timely, and accurate reports, as required,
                 regarding the material affairs and activities and the
                 condition of Bancorp and the Bank, respectively.

2. Location and Facilities. The Officer will be furnished with the working
facilities and staff customary for executive officers with the title and duties
set forth in Section 1 and as are necessary for the Officer to perform the
duties of the position. The location of such facilities and staff shall be at
the principal administrative offices of the Bank, or at such other site or sites
customary for such offices.

3.       Term

         a.       The term of this Agreement shall be (i) the initial term,
                  consisting of the period commencing on the date of this
                  Agreement (the "Effective Date") and ending immediately prior
                  to the third anniversary of the Effective Date, plus (ii) any
                  and all extensions of the initial term made pursuant to this
                  Section 3.

         b.       On each  anniversary  of the Effective  Date prior to a
                  termination of the Agreement, the term under this Agreement
                  shall be extended for an additional one-year period beyond
                  the then effective expiration date without action by any
                  party, provided that neither the Bank nor the Officer shall
                  have given written notice at least sixty (60) days prior to
                  such anniversary date of its or the Officer's desire that
                  the term not be extended. The Officer's performance and the
                  advisability of extending the term of this Agreement shall
                  be reviewed by the Human Resources Committee (the
                  "Committee") of the Board, and the Board shall, based on
                  such review, determine whether or not to extend the term of
                  this Agreement at a meeting or meetings at least ninety (90)
                  days prior to each anniversary date.

         c.       At the Effective Date, this Agreement shall supersede any
                  prior Agreement, which shall be deemed terminated by agreement
                  of the parties immediately prior to the Effective Date.

4.       Base Compensation.

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<PAGE>

         a.       Bancorp and the Bank agrees to pay the Officer during the term
                  of this Agreement a salary at the rate of $350,000 per annum,
                  payable in cash not less frequently than monthly, as may be
                  adjusted in accordance with this Section 4.

         b.       The Human Resources Committee shall perform an annual analysis
                  of the Officer's performance and of the compensation of
                  officers performing similar functions at independent
                  financial institutions of comparable assets and performance,
                  and based upon this review and on such other factors as it
                  deems pertinent, shall recommend to the Board the annual
                  salary rate to be paid to the Officer following such review.
                  The Board, based upon this recommendation of the Committee
                  and other factors they deem relevant, may maintain, increase
                  or decrease the Officer's salary, provided that no such
                  action shall (i) reduce the rate of salary below the amount
                  set forth in Section 4.a. or (ii) reduce the rate of salary
                  paid to the Officer for any months prior to the month in
                  which notice of the reduction is provided in writing to the
                  Officer.

         c.       In the absence of action by the Board, the Officer shall
                  continue to receive salary at the amount set forth in Section
                  4.a. specified herein or, if another rate has been established
                  under the provisions of this Section 4, the rate last properly
                  established by action of the Board under the provisions of
                  this Section 4 .

5. Bonuses. Unless the Officer agrees otherwise, the Officer shall be entitled
to participate in discretionary bonuses that the Board may award from time to
time to senior management employees pursuant to bonus plans or otherwise. The
Officer also shall participate in any other fringe benefits which are or may
become available to senior management employees of the Bank, including for
example: any stock option or incentive compensation plans and any other benefits
that are commensurate with the responsibilities and functions to be performed by
the Officer under this Agreement. No other compensation provided for in this
Agreement shall be deemed a substitute for the Officer's right to participate in
such discretionary bonuses or fringe benefits.

6. Benefit Plans. The Officer shall be entitled to participate in such life
insurance, medical, dental, pension, profit sharing, and retirement plans and
other programs and arrangements as may be approved from time to time by Bancorp
or the Bank for the benefit of the employees of the Bank. In addition, the
Officer shall be entitled to participate in a nonstatutory supplemental
retirement plan or arrangement ("SERP") established for the Officer, in the
Executive Health Expense Reimbursement and Insurance Plans (together, the
"HERP"), or a successor plan or plans that provide the same or greater level of
benefits as those provided to participants under the HERP as in effect on the
Effective Date, and in the Group Term Replacement Plan ("GTRP") established for
the Officer.

7. Paid Time Off.

         a.       The Officer shall be entitled to twenty-eight working days of
                  paid time off, as defined in the Bank's personnel policies,
                  during each consecutive twelve-month period commencing on
                  January 1, 2002 and each January 1 thereafter during the
                  term of this Agreement, to be taken at reasonable times and
                  in reasonable periods as the Officer and Bancorp and the
                  Bank shall mutually determine, and provided that no paid
                  time off shall interfere with the duties required to be
                  rendered by the Officer hereunder. Any paid time off not
                  used during a twelve-month period shall carry over and be
                  useable during the succeeding twelve-month period, but not
                  thereafter. The Officer shall not receive any additional
                  compensation from the Bank on account of the Officer's
                  failure to take paid time off.

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<PAGE>

         b.       In addition to paid time off, the Officer shall be entitled,
                  without loss of pay, to voluntarily take time off from work
                  for such additional periods of time and for such valid and
                  legitimate reasons as the Board of Directors may in their
                  discretion determine. Further, the Officer may request and be
                  granted a leave or leaves of absence, with or without pay, at
                  such time or times and upon such terms and conditions as the
                  Board of Directors in their discretion may determine.

8. Expense Payments and Reimbursements. The Officer shall be reimbursed for all
reasonable out-of-pocket business expenses incurred in connection with the
Officer's services under this Agreement upon substantiation of such expenses in
accordance with applicable policies of Bancorp and the Bank. The Officer shall
also be entitled to the following:

         a.       Use of an automobile of a make and model consistent with the
                  Officer's duties under this Agreement and reimbursement for
                  the Officer's expenses thereof related to the employment of
                  Officer; and

         b.       Reimbursement for membership dues at a Country Club or other
                  similar type organization as mutually agreed upon between the
                  Boards of Bancorp or the Bank and the Officer.

9. Loyalty and Confidentiality.
   ---------------------------

         a.       During the term of this Agreement  the  Officer: (i) shall
                  devote all the Officer's time, attention, skill, and efforts
                  to the faithful performance of the Officer's duties
                  hereunder; provided, however, that from time to time, the
                  Officer may serve on the boards of directors of, and hold
                  any other offices or positions in, companies or
                  organizations which will not present any conflict of
                  interest with Bancorp or the Bank or any of their
                  subsidiaries or affiliates, unfavorably affect the
                  performance of Officer's duties pursuant to this Agreement,
                  or violate any applicable statute or regulation; and (ii)
                  shall not engage in any business or activity contrary to the
                  business affairs or interests of Bancorp or the Bank.

         b.       Nothing contained in this Agreement shall prevent or limit the
                  Officer's right to invest in the capital stock or other
                  securities of any business dissimilar from that of Bancorp and
                  the Bank, or, solely as a passive, minority investor, in any
                  business.

         c.       The Officer agrees to maintain the confidentiality of any and
                  all information concerning the operation or financial status
                  of Bancorp and the Bank; the names or addresses of any of
                  their borrowers, depositors and other customers; any
                  information concerning or obtained from such customers; and
                  any other information concerning Bancorp or the Bank to
                  which the Officer may be exposed during the course of
                  employment. The Officer further agrees that, unless required
                  by law or specifically permitted by Bancorp or the Bank in
                  writing, the Officer will not disclose to any person or
                  entity, either during or subsequent to the officer's
                  employment, any of the above-mentioned information which is
                  not generally known to the public, nor shall the Officer
                  employ such information in any way other than for the
                  benefit of Bancorp and the Bank.

10. Termination and Termination Pay. Subject to Section 11 of this Agreement,
the Officer's employment under this Agreement may be terminated in the following
circumstances:

                                       4
<PAGE>

         a.       Death. The Officer's employment under this Agreement shall
                  terminate upon the Officer's death during the term of this
                  Agreement, in which event the Officer's estate shall be
                  entitled to receive the compensation due to the Officer
                  through the last day of the calendar month in which the
                  Officer's death occurred.

         b.       Retirement. This Agreement shall be terminated upon the normal
                  or early retirement of the Officer under the retirement
                  benefit plan or plans in which the Officer participates
                  pursuant to Section 6 of this Agreement.

         c.       Disability.  The Bank or the Officer may terminate the
                  Officer's employment after having established the Officer's
                  Disability. For purposes of this Agreement, "Disability"
                  means a physical or mental infirmity that impairs the
                  Officer's ability to substantially perform duties assigned
                  to the Officer under this Agreement and that results in the
                  Officer's becoming eligible for long-term disability
                  benefits under Bancorp's or the Bank's long-term disability
                  plan (or, if Bancorp or the Bank has no such plan in effect,
                  that impairs the Officer's ability to substantially perform
                  duties assigned to the Officer under this Agreement for a
                  period of one-hundred-eighty consecutive days). In the event
                  of such Disability, the Officer's obligation to perform
                  services under this Agreement will terminate. In the event
                  of such termination, the Officer shall be entitled to
                  receive the following:

                  i.       The compensation and benefits provided for under this
                           Agreement for any period during the term of this
                           Agreement and prior to the date of termination
                           pursuant to this Section 10.c. during which the
                           Officer is unable to work due to physical or mental
                           infirmity (less any amounts which the Officer
                           receives under any disability insurance maintained by
                           Bancorp or the Bank with respect to such period);

                  ii.      For the period beginning upon the date of termination
                           pursuant to this Section 10.c. and continuing for the
                           remaining term of this Agreement, (A) salary at the
                           highest rate paid pursuant to Section 4 of this
                           Agreement during the twelve months prior to the
                           establishment of such disability under this Section
                           10.c., reduced by any payments received by the
                           Officer during such period following termination
                           under a long term disability plan or policy
                           maintained by Bancorp or the Bank, and (B) benefits
                           pursuant to Section 6 of this Agreement.

                  The Board shall determine whether or not the Officer is and
         continues to be permanently disabled for purposes of this Agreement in
         good faith, based upon competent medical advice and other factors that
         it reasonably believes to be relevant. As a condition to any benefits,
         such Board may require the Officer to submit to such physical or mental
         evaluations and tests as it deems reasonably appropriate.

         d. Just Cause.
            -----------

                  i.       The Board may, by written notice to the Officer in
                           the form and manner specified in this paragraph,
                           immediately terminate the Officer's employment with
                           the Bank at any time for Just Cause. The Officer
                           shall have no right to receive compensation or other
                           benefits for any period after termination for Just
                           Cause. Termination for "Just Cause" shall mean
                           termination because of, in the good faith
                           determination of the Board, the Officer's:

                           (1) Personal dishonesty;
                           (2) Willful misconduct;

                                       5
<PAGE>

                           (3) Breach of fiduciary duty involving personal
                               profit;
                           (4) Intentional failure to perform duties
                               under this Agreement;
                           (5) Other, continuing material
                               failure to perform duties assigned to the Officer
                               under this Agreement after reasonable
                               notification (which shall be stated in writing
                               and given at least fifteen days prior to
                               termination) by the Board of such failure;

                           (6) Willful violation of any law, rule or regulation
                               (other than traffic violations or similar
                               offenses) or final cease-and-desist order; or

                           (7) Material breach by the Officer of any
                               provision of this Agreement.

                  ii.      Notwithstanding the foregoing, the Officer shall not
                           be deemed to have been terminated for Just Cause
                           unless there shall have been delivered to the Officer
                           a copy of a resolution duly adopted by the
                           affirmative vote of not less than a majority of the
                           entire membership of the Board at a meeting called
                           and held for the purpose (after reasonable notice to
                           the Officer and an opportunity for the Officer to be
                           heard before the Board), finding that in the good
                           faith opinion of the Board the Officer was guilty of
                           conduct described above and specifying the
                           particulars thereof.

                  iii.     Notwithstanding  the  foregoing,  it is expected that
                           Officer will perform all duties and agreements to be
                           performed herein, and Officer shall have the right to
                           cure non-performance, to the extent such performance
                           is reasonably capable of being cured, and shall
                           promptly upon receipt of written notice of
                           non-performance, comply with the requirements of such
                           notice, and further if Officer shall not comply with
                           such notice to the satisfaction of the Bank within
                           forty-eight (48) hours after delivery thereof,
                           (except if such compliance cannot be reasonably
                           completed within forty-eight (48) hours, if Officer
                           shall not commence to comply within such period and
                           thereafter proceed to completion with due diligence)
                           the Bank shall have the right to proceed with the
                           Board meeting specified in the preceding paragraph.

               e. Certain Regulatory Events.
                  --------------------------

                  i. If the Officer is removed and/or permanently prohibited
                  from participating in the conduct of the Bank's affairs by an
                  order issued under Sections 8(e)(4) or 8(g)(1) of the Federal
                  Deposit Insurance Act ("FDIA") (12 U.S.C. ss.ss. 1818(e)(4)
                  and (g)(1)), all obligations of the Bank under this Agreement
                  shall terminate as of the effective date of the order, but
                  vested rights of the parties shall not be affected.

                  ii. If the Bank is in default (as defined in Section 3(x)(1)
                  of FDIA), all obligations of the Bank under this Agreement
                  shall terminate as of the date of default, but vested rights
                  of the parties shall not be affected.

                  iii. If a notice served under Sections 8(e)(3) or (g)(1) of
                  the FDIA (12 U.S.C. ss.ss. 1818(e)(3) and (g)(1)) suspends
                  and/or temporarily prohibits the Officer from participating in
                  the conduct of the Bank's affairs, the Bank's obligations
                  under this Agreement shall be suspended as of the date of such
                  service, unless stayed by appropriate proceedings. If the
                  charges in the notice are dismissed, the Bank may, in its
                  discretion, (i) pay the Officer all or part of the
                  compensation withheld while its contract obligations were
                  suspended, and (ii) reinstate (in whole or in part) any of its
                  obligations which were suspended.

                                       6
<PAGE>

                  The occurrence of any of the events described in paragraphs i,
         ii, and iii above may be considered by the Board in connection with a
         termination for Just Cause.

         f. Voluntary Termination by Officer. In addition to the Officer's other
         rights to terminate under this Agreement, the Officer may voluntarily
         terminate employment with the Bank and Bancorp during the term of this
         Agreement upon at least sixty days' prior written notice to the Bank,
         in which case the Officer shall receive only compensation, vested
         rights and employee benefits up to the date of termination.

         g. Without Just Cause or With Good Reason.
            ---------------------------------------

                  i. In addition to termination pursuant to Section 10.a.
                  through 10.f.: the Board may, by written notice to the
                  Officer, immediately terminate the Officer's employment with
                  the Bank at any time for a reason other than Just Cause (a
                  termination "Without Just Cause"); and the Officer may, by
                  written notice to the Board, immediately terminate this
                  Agreement at any time within ninety days following an event of
                  "Good Reason" as defined below (a termination "With Good
                  Reason").

                  ii. Subject to Section 11 hereof, in the event of termination
                  under this Section 10.g., the Officer shall be entitled to
                  receive the salary for the remaining term of the Agreement,
                  including any renewals or extensions thereof, at the highest
                  annual rate in effect pursuant to Section 4 of this Agreement
                  for any of the twelve months immediately preceding the date of
                  such termination, plus annual cash bonuses for each year
                  (prorated in the event of partial years) remaining under such
                  term at the amount received by the Officer in the calendar
                  year preceding the termination. The sum due under this Section
                  10.g. shall be paid in one lump sum within ten calendar days
                  of such termination.

                  iii. "Good Reason" shall exist if, without the Officer's
                  express written consent, Bancorp or the Bank materially breach
                  any of its respective obligations under this Agreement.
                  Without limitation, such a material breach shall be deemed to
                  occur upon any of the following:

                           (1)      A material reduction in the Officer's
                                    responsibilities or authority in connection
                                    with the Officer's employment with Bancorp
                                    or the Bank;

                           (2)      Assignment to the Officer of duties of a
                                    nonexecutive nature or duties for which the
                                    Officer is not reasonably equipped by the
                                    Officer's skills and experience;

                           (3)      A reduction in salary or benefits contrary
                                    to the terms of this Agreement, or,
                                    following a Change in Control as defined in
                                    Section 11 of this Agreement, any reduction
                                    in salary or material reduction in benefits
                                    below the amounts to which the Officer was
                                    entitled prior to the Change in Control;

                           (4)      Termination of incentive and benefit plans,
                                    programs, or arrangements, or reduction of
                                    the Officer's participation to such an
                                    extent as to materially reduce their
                                    aggregate value below their aggregate value
                                    as of the Effective Date;

                           (5)      A requirement that the Officer's principal
                                    business office or principal place of
                                    residence be relocated outside any county in
                                    which the Bank has its main office, its
                                    branches, or its deposit taking Automatic
                                    Teller Machines; or the assignment to the
                                    Officer of duties that would reasonably
                                    require such a relocation;

                                       7
<PAGE>

                           (6)      A requirement that the Officer spend more
                                    than thirty normal working days away from
                                    any county in which the Bank has its main
                                    office, its branches, or its deposit taking
                                    Automatic Teller Machines during any
                                    consecutive twelve-month period; or

                           (7)      Failure to provide office facilities,
                                    secretarial services, and other
                                    administrative services to Officer which are
                                    substantially equivalent to the facilities
                                    and services provided to the Officer on the
                                    Effective Date (excluding brief periods
                                    during which office facilities may be
                                    temporarily unavailable due to fire, natural
                                    disaster, or other calamity).

                           (8)      In the event of a Change in Control as
                                    defined in Section 11 of this Agreement,
                                    Officer shall have the right to resign for
                                    any reason during the first sixty (60) days
                                    immediately following the first six months
                                    after the closing date of a definitive
                                    purchase and assumption agreement (as
                                    defined in such agreement), the execution of
                                    which brought about a Change in Control.

                                    Notwithstanding the foregoing, it is
expected that the Bank will perform all agreements on its part to be performed
herein, and the Bank shall have the right to cure non-performance, to the extent
such performance is reasonably capable of being cured, and shall promptly upon
receipt of written notice of non-performance, comply with the requirement of
such notice, and further if Bank shall not comply with such notice to the
satisfaction of the Officer within forty-eight (48) hours after delivery
thereof, (except if such compliance cannot be reasonably completed within
forty-eight (48) hours, if the Bank shall not commence to comply within such
period and thereafter proceed to completion with due diligence) the Officer
shall have the right to proceed with notice of a "with Good Reason" termination
as specified above.

                  iv.      Notwithstanding  the  foregoing:  (A)  a  reduction
                           or elimination of the Officer's benefits under one or
                           more benefit plans maintained by Bancorp or the Bank
                           as part of a good faith, overall reduction or
                           elimination of such plan or plans or benefits
                           thereunder applicable to all participants in a manner
                           that does not discriminate against the Officer
                           (except as such discrimination may be necessary to
                           comply with law) shall not constitute an event of
                           Good Reason or a material breach of this Agreement,
                           provided that benefits of the type or to the general
                           extent as those offered under such plans prior to
                           such reduction or elimination are not available to
                           other officers of Bancorp or the Bank or any company
                           that controls either of them under a plan or plans in
                           or under which the Officer is not entitled to
                           participate, and receive benefits, on a fair and
                           nondiscriminatory basis.

         h.       Continuing Covenant not to Compete or Interfere with
                  Relationships. Regardless of anything herein to the contrary,
                  following a termination (i) upon retirement pursuant to
                  Section 10.b., (ii) due to Disability pursuant to Section
                  10.c., (iii) for Just Cause pursuant to Section 10.d., or (iv)
                  by the Officer pursuant to Section 10.f.:

                  i.       The Officer's obligations under Section 9.c. of this
                           Agreement will continue in effect; and

                  ii.      During  the  remaining  term of  this  Agreement
                           (determined immediately before such termination), the
                           Officer shall not serve as an officer or director or
                           employee of any bank holding company, bank, savings
                           association, savings and loan holding company, or
                           mortgage company (any of which, a "Financial
                           Institution"), which Financial Institution offers
                           products or services competing with those offered by

                                       8
<PAGE>

                           Bancorp or the Bank from offices in any county in the
                           State of Maryland or of any other State in which the
                           Bank, Bancorp or any of their subsidiaries has a
                           branch, and shall not interfere with the relationship
                           of Bancorp or the Bank and any of its employees,
                           agents, or representatives; provided, however, that
                           the provisions of this noncompetition clause shall
                           only apply to termination of the Officer "before" a
                           Change in Control as defined in Section 11. (It being
                           the intent of the parties that the noncompetition
                           clause shall not apply to terminations resulting from
                           or due to a Change in Control.)

11. Termination in Connection with a Change in Control.
    --------------------------------------------------

         a.       For purposes of this Agreement, a "Change in Control" shall be
                  deemed to occur on the earliest of:

                  i.       The acquisition by any entity, person or group (other
                           than the acquisition by a tax-qualified retirement
                           plan sponsored by Bancorp or the Bank) of beneficial
                           ownership, as that term is defined in Rule 13d-3
                           under the Securities Exchange Act of 1934, of more
                           than 25% of the outstanding capital stock of Bancorp
                           or the Bank entitled to vote for the election of
                           directors ("Voting Stock");

                  ii.      The commencement by any entity, person, or group
                           (other than Bancorp or the Bank, a subsidiary of
                           Bancorp or the Bank or a tax-qualified retirement
                           plan sponsored by Bancorp or the Bank) of a tender
                           offer or an exchange offer for more than 20% of the
                           outstanding Voting Stock of Bancorp or the Bank;

                  iii.     The effective time of (a) a merger or consolidation
                           of Bancorp or the Bank with one or more other
                           corporations as a result of which the holders of the
                           outstanding Voting Stock of Bancorp or the Bank
                           immediately prior to such merger exercise voting
                           control over less than 80% of the Voting Stock of the
                           surviving or resulting corporation, or (b) a transfer
                           of substantially all of the property of Bancorp or
                           the Bank other than to an entity of which Bancorp or
                           the Bank owns at least 80% of the Voting Stock;

                  iv.      Upon the acquisition by any entity, person, or group
                           of the control of the election of a majority of the
                           Bank's or Bancorp's directors,

                  v.       At such time that, during any period of two
                           consecutive years, individuals who at the beginning
                           of such period constitute the Board of Bancorp or the
                           Bank (the "Continuing Directors") cease for any
                           reason to constitute at least two-thirds thereof,
                           provided that any individual whose election or
                           nomination for election as a member of the Board was
                           approved by a vote of at least two-thirds of the
                           Continuing Directors then in office shall be
                           considered a Continuing Director.

         b.       Termination. If within the period  beginning six months prior
                  to and ending two years after a Change in Control, (i) the
                  Bank shall terminate the Officer's employment Without Just
                  Cause, or (ii) the Officer shall voluntarily terminate
                  employment With Good Reason, the Bank shall, within ten
                  calendar days of the termination of Officer's employment, make
                  a lump-sum cash payment to the Officer equal to 2.99 times the
                  sum of (x) the Officer's annual salary at the highest annual
                  rate in effect for any of the twelve months immediately
                  preceding the date of such termination, plus (y) the amount of
                  other compensation received

                                       9
<PAGE>

                  by the Officer during the calendar year preceding the Change
                  in Control. This cash payment is subject to adjustment
                  pursuant to Section 14 of this Agreement, and shall be made in
                  lieu of any payment also required under section 10.g. of this
                  Agreement because of a termination in such period. The
                  Officer's rights under Section 10.g. are not otherwise
                  affected by this Section 11. Also, in such event, the Officer
                  shall, for three calendar years following the Officer's
                  termination of employment, continue to participate in any
                  benefit plans of Bancorp and the Bank that provide health
                  (including medical and dental), life or disability insurance,
                  or similar coverage upon terms no less favorable than the most
                  favorable terms provided to executive officers of the Bank
                  during such period.

         c.       Funding of Trust upon  Change in  Control.  In order to assure
                  payment to the Officer of amounts that may become payable by
                  Bancorp or the Bank pursuant to this Section, unless and to
                  the extent the Officer has previously provided a written
                  release of any claims under Section 11 of this Agreement, not
                  later than ten business days after a Change in Control,
                  Bancorp or the Bank shall (i) establish a valid trust under
                  the law of the State of Maryland with an independent trustee
                  that has or may be granted corporate trust powers under
                  Maryland law, (ii) deposit in such trust an amount equal to
                  2.99 times the Officer's "base amount" as defined in Section
                  280G(b)(3) of the Code and regulations promulgated thereunder
                  (Section 280G and related regulations hereinafter referred to
                  as Section 280G") plus such amounts deemed adequate to cover
                  Bancorp and the Bank's obligations under Section 14 of this
                  Agreement, at the time of the Change of Control, and (iii)
                  provide the trustee of the trust with a written direction to
                  hold said amount and any investment return thereon in a
                  segregated account, and to pay such amounts as demanded by the
                  Officer from the trust upon written demand from the Officer
                  stating the amount of the payment demanded from the trust and
                  the basis for the Officer's rights to such payment under
                  Section 11 of this Agreement. Upon the earlier of the final
                  payment of all amounts demanded by the Officer under this
                  Section 11 or the date thirty-six months after the Change in
                  Control, the trustee of the trust shall pay to Bancorp or the
                  Bank, as applicable, the entire balance remaining in the
                  trust. Payments from the trust to the Officer shall be
                  considered payments made by Bancorp or the Bank for purposes
                  of this Agreement. Payment of such amounts to the Officer from
                  the trust, however, shall not relieve Bancorp or the Bank from
                  any obligation to pay amounts in excess of those paid from the
                  trust, or from any obligation to take actions or refrain from
                  taking actions otherwise required by this Agreement. Unless
                  and until a termination of or by the Officer as described in
                  Section 11.b.(i) or (ii), the Officer's rights under this
                  Agreement shall be those of a general, unsecured creditor, the
                  Officer shall have no claim against the assets of the trust,
                  and the assets of the trust shall remain subject to the claims
                  of creditors of Bancorp or the Bank. Upon the termination of
                  the trust as specified herein, the Officer shall have no
                  further interest in the trust.

12. Indemnification and Liability Insurance.

         a.       Indemnification.  Bancorp and the Bank agree to indemnify the
                  Officer (and the Officer's heirs, executors, and
                  administrators) to the fullest extent permitted under
                  applicable law and regulations against any and all expenses
                  and liabilities reasonably incurred by the Officer in
                  connection with or arising out of any action, suit, or
                  proceeding in which the Officer may be involved by reason of
                  having been a director or officer of the Bank or any of their
                  subsidiaries (whether or not the Officer continues to be a
                  director or officer at the time of incurring any such expenses
                  or liabilities) such expenses and liabilities to include, but
                  not be limited to, judgments, court costs and attorney's fees
                  and the cost of reasonable

                                       10
<PAGE>

                  settlements, such settlements to be approved by the Board of
                  Bancorp or the Bank, if such action is brought against the
                  Officer in the Officer's capacity as an officer or director of
                  Bancorp or the Bank or any of their subsidiaries.
                  Indemnification for expense shall not extend to matters for
                  which the Officer has been terminated for Just Cause. Nothing
                  contained herein shall be deemed to provide indemnification
                  prohibited by applicable law or regulation. Notwithstanding
                  anything herein to the contrary, the obligations of this
                  Section 12 shall survive the term of this Agreement by a
                  period of seven years.

         b.       Insurance. During the period in which indemnification of the
                  Officer is required under this Section, Bancorp or the Bank
                  shall provide the Officer (and the Officer's heirs, executors,
                  and administrators) with coverage under a directors' and
                  officers' liability policy at the expense of Bancorp or the
                  Bank, at least equivalent to such coverage provided to
                  directors and senior officers of Bancorp or the Bank,
                  whichever is more favorable to the Officer.

13. Reimbursement of Officer's Expenses to Enforce this Agreement. Bancorp or
the Bank shall reimburse the Officer for all out-of-pocket expenses, including,
without limitation, reasonable attorney's fees, incurred by the Officer in
connection with successful enforcement by the Officer of the obligations of
Bancorp or the Bank to the Officer under this Agreement. Successful enforcement
shall mean the grant of an award of money or the requirement that Bancorp or the
Bank take some action specified by this Agreement (i) as a result of court
order; or (ii) otherwise by Bancorp or the Bank following an initial failure of
Bancorp or the Bank to pay such money or take such action promptly after written
demand therefor from the Officer stating the reason that such money or action
was due under this Agreement at or prior to the time of such demand.

14. Adjustment of Certain Payments and Benefits.
    --------------------------------------------

         Bancorp and the Bank shall indemnify and hold the Officer harmless from
any and all loss, expense, or liability that the Officer may ever incur under
Code ss. 4999, or any successor provision, as the result of payments or benefits
that the Officer receives from Bancorp or the Bank or any successor to any of
its interests. Bancorp and the Bank shall have this obligation with respect to
any excise taxes (and any federal, state, and local income taxes on those excise
taxes) for which the Officer is liable under Code ss. 4999, or any successor
provision, pursuant to a tax return on which the Officer reports such excise tax
liability based on a reasonable analysis (that the Officer need not file with
the return) prepared by the Officer's legal counsel. This paragraph shall
survive termination or expiration of this Agreement for any reason.

15. Injunctive Relief. If there is a breach or threatened breach of Section
10.h. of this Agreement or the prohibitions upon disclosure contained in Section
9.c. of this Agreement, Bancorp or the Bank and the Officer agree that there is
no adequate remedy at law for such breach, and that Bancorp and the Bank each
shall be entitled to injunctive relief restraining the Officer from such breach
or threatened breach, but such relief shall not be the exclusive remedy
hereunder for such breach. The parties hereto likewise agree that the Officer
shall be entitled to injunctive relief to enforce the obligations of Bancorp and
the Bank under Section 11 of this Agreement.

16. Successors and Assigns.
    -----------------------

         a.       This Agreement shall inure to the benefit of and be binding
                  upon any corporate or other successor of Bancorp or the Bank
                  which shall acquire, directly or indirectly, by merger,
                  consolidation, purchase or otherwise, all or substantially all
                  of the assets or stock of Bancorp or the Bank.

                                       11
<PAGE>

         b.       Since the Bank and Bancorp are contracting for the unique and
                  personal skills of the Officer, the Officer's rights or duties
                  hereunder shall be precluded from assignment or delegation
                  without first obtaining the written consent of the Bank and
                  Bancorp.

17. No Mitigation. The Officer shall not be required to mitigate the amount of
any payment provided for in this Agreement by seeking other employment or
otherwise and no such payment shall be offset or reduced by the amount of any
compensation or benefits provided to the Officer in any subsequent employment.

18. Notices. All notices, requests, demands and other communications in
connection with this Agreement shall be made in writing and shall be deemed to
have been given when delivered by hand or 48 hours after mailing at any general
or branch United States Post Office, by registered or certified mail, postage
prepaid, addressed as follows, or to such other address as shall have been
designated in writing by the addressee:

         a.       If to Bancorp or the Bank: Sandy Spring Bancorp, Inc. Sandy
                  Spring Bank 17801 Georgia Avenue Olney, Maryland 20832

                  Attention:        R. E. Kuykendall, General Counsel

         b.       If to the Officer: Hunter R. Hollar 18252 Rolling Meadow Way
                  Olney, Maryland 20832

19. Joint and Severally Liability; Payments by Bancorp and the Bank. To the
extent permitted by law, except as otherwise provided herein, Bancorp and the
Bank shall be jointly and severally liable for the payment of all amounts due
under this Agreement. Bancorp hereby agrees that it shall be jointly and
severally liable with the Bank for the payment of all amounts due under this
Agreement and shall guarantee the performance of the Bank's obligations
thereunder, provided that Bancorp shall not be required by this Agreement to pay
to the Officer a salary or any bonuses or any other cash payments, except in the
event that the Bank does not fulfill the obligations to the Officer hereunder
for such payments. Bancorp may, however, pay salary and bonuses as deemed
appropriate by its Board in the exercise of its discretion.

20. No Plan Created by this Agreement. The Officer, Bancorp and the Bank
expressly declare and agree that this Agreement was negotiated among them and
that no provision or provisions of this Agreement are intended to, or shall be
deemed to, create any plan for purposes of the Employee Retirement Income
Security Act or any other law or regulation, and, Bancorp the Bank and the
Officer each expressly waives any right to assert the contrary. Any assertion in
any judicial or administrative filing, hearing, or process by or on behalf of
the Officer or Bancorp or the Bank that such a plan was so created by this
Agreement shall be deemed a material breach of this Agreement by the party
making such an assertion.

21. Amendments. No amendments or additions to this Agreement shall be binding
unless made in writing and signed by all of the parties, except as herein
otherwise specifically provided.

22. Applicable Law. Except to the extent preempted by Federal law, the laws of
the State of Maryland shall govern this Agreement in all respects, whether as to
its validity, construction, capacity, performance or otherwise.

                                       12
<PAGE>

23. Severability. The provisions of this Agreement shall be deemed severable and
the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof.

24. Headings. Headings contained herein are for convenience of reference only.

25. Entire Agreement. This Agreement, together with any understanding or
modifications thereof as agreed to in writing by the parties, shall constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof, other than written agreements with respect to specific plans, programs,
or arrangements described in Sections 5 and 6, and supersedes all prior
agreements other than with respect to such specific plans, programs, or
arrangements.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first set forth above.

                                    SANDY SPRING BANK

                                    By:  /s/ W. Drew Stabler
                                        -------------------------------------

                                     Title:     Chairman
                                          ------------------------------------

                                                     SANDY SPRING BANCORP, INC.

                                    By:  /s/ W. Drew Stabler
                                         -------------------------------------

                                    Title:   Chairman
                                          ------------------------------------

                                    OFFICER

                                         /s/ Hunter R. Hollar
                                        -------------------------------------
                                        Hunter R. Hollar

                                       13

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