Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as
of November 8, 2004, by and between Tucows.com Co., a Nova Scotia corporation
(the “Corporation”), and Daniel H. Roy (the “Executive”).

 

WHEREAS, the Executive is employed by the Corporation
as Vice President Engineering; and

 

WHEREAS, the Corporation and the Executive have agreed
upon terms and conditions for the Employee’s employment with the Corporation,
which terms and conditions are set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants set forth herein and for other good and valuable
consideration, the parties agree as follows:

 

1.             TERM

 

The Corporation shall
employ the Executive for an indefinite term subject to any termination
provisions that form part of this Agreement.

 

2.             DUTIES

 

The Executive shall serve
the Corporation in the capacity of Vice President Engineering. He will report
to the Chief Executive Officer of the Corporation, as appointed by the Board of
Directors, and shall perform such duties and exercise such powers of the
position of Vice President Engineering.

 

Without limitation of the
foregoing, the Executive shall:

 

(a)           devote his best efforts during normal
business hours to the business and affairs of the Corporation and Tucows Inc.,
a Pennsylvania corporation and the ultimate parent corporation of the
Corporation (“Tucows”) and Tucows’ subsidiaries (collectively with Tucows and
the Corporation, the “Tucows Companies”);

 

(b)           perform those duties that may
reasonably be assigned to the Executive diligently and faithfully to the best
of the Executive’s abilities and in the best interests of the Tucows Companies;
and

 

(c)           use his best efforts to promote the
interests and goodwill of the Tucows Companies.

 

 

3.             REMUNERATION

 

The intent of this
Agreement is to entitle the Executive to an annual compensation package for his
services considering the role and performance of the Executive.  Such compensation is to be comprised of a
base salary, annual bonuses, options and other perquisites of office, and is to
be exclusive and not considerate of share dividends and other corporate
benefits which executives receive in their capacity as shareholders.

 

(a)           Base Salary

 

The annual base salary
payable to the Executive for his services hereunder shall initially be at a
rate of Cdn$180,000 commencing on November 8th, 2004 which amount
shall be exclusive of bonuses, options, share dividends, benefits and other
compensation.  The base salary shall be
paid on the normal payroll cycle of the Corporation.

 

(b)           Compensation Review

 

The Executive’s
compensation shall be reviewed annually by the Compensation Committee of the
Board of Directors of Tucows.

 

(c)           Bonus Structure

 

The Executive will be
eligible for an annual bonus of Cdn$75,000, based on the achievement of
mutually agreed upon objectives.

 

(d)           Employee Benefits

 

The Executive shall be
entitled to participate in all of the Corporation’s benefit plans made
generally available to its senior executive employees from time to time in
accordance with the terms thereof at the Corporation’s expense. The Corporation
will pay the benefit premiums, excluding long term disability.

 

(e)           Car Allowance and Parking
Space

 

The Corporation shall pay
to the Executive a monthly car allowance of Cdn$500 plus taxes.  The Corporation shall also provide the
Executive with a parking space at the Corporation’s office in which the
Executive is primarily working, at its expense.

 

(f)            Vacation

 

During the term of this
Agreement, the Executive shall be entitled to four weeks vacation
annually.  Such vacation shall be taken
at a time or times acceptable to the Corporation having regard to its
operations.

 

 

(g)           Options

 

The Executive will be granted stock options to
purchase 40,000 common shares of Tucows. The options will be granted per the
Corporation’s option plan.  The options
shall vest in accordance with the Corporation’s option plan.

 

4.             EXPENSES

 

The Executive shall be
reimbursed for all reasonable travel and other out-of-pocket expenses actually
and properly incurred by the Executive from time to time in connection with
carrying out his duties hereunder.  For
all such expenses the Executive shall furnish to the Corporation originals of
all invoices or statements in respect of which the Executive seeks
reimbursement.

 

5.             TERMINATION

 

(a)           Death or Disability

 

In the event of permanent
disability or death of the Executive, this Agreement may be terminated by the
Corporation by notice to the Executive. 
The Executive is deemed to have become permanently disabled if in any
year during the employment period, because of ill health, physical or mental
disability, or for other causes beyond the control of the Executive, the
Executive has been continuously unable or unwilling or has failed to perform
the Executive’s duties for nine consecutive months.  The term “any year of the employment period”
means any period of 12 consecutive months during the employment period.

 

(b)           For Cause

 

The Corporation may terminate the employment of the
Executive at any time for Cause without payment of any compensation either by
way of anticipated earnings or damages of any kind or payment in lieu of
notice.  In the event that the
Corporation wishes to terminate the Executive’s employment for Cause, the
Corporation will provide the Executive with written notice of the circumstances
that entitle the Corporation to so terminate the Executive.

 

(c)           Without Cause

 

The Corporation may
terminate the employment of the Executive without Cause at any time upon 30
days’ prior written notice to the Executive. 
In the event of such termination, the Executive shall be entitled to
payment of:  (i) all compensation due
through the Date of Termination (including a pro rata payment of bonuses
earned) and (ii) a termination sum in the amount of six months compensation
plus one month’s compensation for each year of service.  For this purpose, compensation is defined as
including, but not limited to, base salary, vacation pay and car allowance, and
options that vest during the severance in lieu of notice period.  The Corporation shall not be entitled to
provide notice in lieu of the termination compensation.  Furthermore, the termination compensation sum
is payable whether or not the Executive seeks or finds alternative employment
within any set time period after termination. 
Termination compensation will be payable in equal installments over six
months.  The Corporation will also

 

 

continue to provide medical and dental coverage under all applicable
plans for the Executive and all entitled beneficiaries for the same period.

 

(d)           By Executive

 

The Executive may
terminate this Agreement upon providing the Corporation with three months
notice in writing of his intention to do so.

 

6.             INTELLECTUAL PROPERTY RIGHTS

 

The Corporation shall be
the owner of all work products created by the Executive or in which the
Executive assisted in the creation during the course of his employment with the
Corporation.  All intellectual property
rights in such work products, including all patents, trademarks, copyrights, trade
secrets and industrial designs, shall be the exclusive property of the
Corporation.

 

In the event that the
Executive acquires any rights or interests in the work products or in any
intellectual property rights relating to the work products, the Executive
hereby assign all such right and interests to the Corporation.  The Corporation shall have the exclusive
right to obtain copyright registrations, letters patent, industrial design
registrations, trademark registrations, or any other protection in respect of
the work products and the intellectual property rights in the work products
anywhere in the world.  At the expense
and request of the Corporation, the Executive shall both during and after his
employment with the Corporation, execute all documents and do all other acts
necessary to enable the Corporation to protect its rights in such work products
and the intellectual property rights in the work products.

 

7.             NON-COMPETITION

 

During the term of this
Agreement and for a period of 6 months from the Date of Termination of this
Agreement, the Executive hereby covenants and agrees that:

 

(a)           he shall not (without the prior
written consent of the Corporation) either directly or indirectly, in any
manner whatsoever, including, without limitation, either individually or in
partnership or jointly, or in conjunction with any other person as principal,
agent, shareholder, employee or in any other manner whatsoever, carry on or be
engaged with a direct competitor engaged in a material business carried on by
the Tucows Companies as of the date of termination (a “Competitive Business”),
or be concerned with or interested in or lend money to, guarantee the debts or
obligations of or permit his or its name or any part thereof to be used by any
person engaged or concerned with or interested in a Competitive Business within
Canada or the United States; and

 

(b)           that he will not (without the prior
written consent of the Corporation), (i) divulge to any person the name of any
customer or client of the Tucows Companies; (ii) knowingly solicit, interfere
with or endeavor to entice away from the Tucows Companies any customer, client
or any person in the habit of dealing with the Tucows Companies;

 

 

and (iii) interfere with or knowingly entice away or
otherwise attempt to obtain the withdrawal of any employee of the Tucows
Companies.

 

The Corporation may apply
for or have an injunction restraining breach or threatened breach of the
covenants herein contained.

 

The Corporation
acknowledges that its belief today is that no company contemplated as being
covered by this section has its principal operation in Canada.

 

8.             CONFIDENTIALITY

 

The Executive
acknowledges and agrees that:

 

(a)           in the course of performing his
duties and responsibilities as an officer and employee of the Corporation, he
will have access to, and will be entrusted with, detailed confidential
information and trade secrets (printed or otherwise) concerning past, present,
future and contemplated products, services, operations and marketing techniques
and procedures of the Tucows Companies, including, without limitation,
information relating to addresses, preferences, needs and requirements of past,
present and prospective clients, customers, suppliers (collectively, “Confidential
Information”), the disclosure of any of which to competitors of the Tucows
Companies or to the general public, or the use of same by the Executive or any
competitor of the Tucows Companies would be highly detrimental to the Tucows
Companies’ interests;

 

(b)           in the course of performing his duties
and responsibilities for the Corporation, the Executive will be a
representative of the Corporation to its customers, clients, and suppliers, and
as such, will have significant responsibility for maintaining and enhancing the
goodwill of the Corporation with such customers, clients and suppliers and
would not have, except by virtue of his employment with the Corporation,
developed a close and direct relationship with the customers, clients and
suppliers of the Corporation;

 

(c)           the Executive, as an officer of the
Corporation, owes fiduciary duties to the Corporation, including the duty to
act in the best interests of the Corporation, and to disclose any conflicts of
interest or potential conflicts of interest in writing to the Corporation; and

 

(d)           the Corporation is entitled to
protect, by way of injunction or otherwise, its right to (i) maintain the
confidentiality of its Confidential Information, (ii) preserve the goodwill of
the Corporation, and (iii) the benefit of any relationships that have been developed
between the Executive and the customers, clients and suppliers of the
Corporation by virtue of the Executive’s employment with the Corporation, all
of which constitute proprietary rights exclusive to the Corporation.

 

 

9.             NO ASSIGNMENT

 

The Executive may not
assign, pledge or encumber the Executive’s interest in this Agreement nor
assign any of the rights or duties of the Executive under this Agreement
without the prior written consent of the Corporation.

 

10.           SEVERABILITY

 

If any provision of this agreement,
including the breadth or scope of such provision, shall be held by any court of
competent jurisdiction to be invalid or unenforceable, in whole or in part,
such invalidity or unenforceability shall not affect the validity or
enforceability of the remaining provisions of this Agreement and such remaining
provisions, or part thereof, shall remain enforceable and binding.

 

11.           GOVERNING LAW

 

This Agreement shall be
governed in accordance with the laws of the Province of Ontario.

 

12.           SUCCESSORS

 

This Agreement shall be
binding on and inure to be benefit of the successors and assigns of the
Corporation and the heirs, executors, personal legal representatives and
permitted assigns of the Executive.

 

13.           NOTICES

 

Any notice or other
communication required or permitted to be given hereunder shall be in writing
and either delivered by hand or mailed by prepaid registered mail.  At any time other than during a general
discontinuance of postal service due to strike, lock-out or otherwise, a notice
so mailed shall be deemed to have been received three business days after the
postmarked date thereof or, if delivered by hand, shall be deemed to have been
received at the time it is delivered.  If
there is a general discontinuance of postal service due to strike, lock-out or
otherwise, a notice sent by prepaid registered mail shall be deemed to have
been received three business days after the resumption of postal service.  Notices shall be addressed as follows:

 

If to the
Corporation:

 

Tucows.com Co.

96 Mowat Avenue

Toronto,
Ontario  M6K 3M1

Canada

 

 

If to the
Executive:

 

Mr. Daniel H. Roy

4902
Sixth Line, R.R. #2

Acton, Ontario,
L7J 2L8

 

14.           LEGAL ADVICE

 

The Executive hereby
represents and warrants to the Corporation and acknowledges and agrees that he
had the opportunity to seek, and was not prevented nor discouraged by the
Corporation from seeking independent legal advice, prior to the execution and
delivery of this Agreement and that, in the event that he did not avail himself
of that opportunity prior to signing this Agreement, he did so voluntarily
without any undue pressure agrees that his failure to obtain independent legal
advice shall not be used by him as a defense to the enforcement of his
obligations under this Agreement.

 

IN WITNESS WHEREOF this
Agreement has been executed by the parties hereto as of the date first above
written.

 

	
   

  	
  TUCOWS.COM CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   Per:

  	
      s/
  Elliot Noss

  	
   

  
	
   

  	
   

  	
    Elliot Noss
  - Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
      s/
  Daniel H. Roy

  	
   

  
	
   

  	
   

  	
    Daniel H.
  RoyExhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (hereinafter sometimes the “Agreement”) is made this 22nd
day of July, 2004 by and between CARROLLTON BANCORP and CARROLLTON BANK,
Employers, (hereinafter sometimes jointly referred to as the “Bank”), body
corporates of the State of Maryland, and ROBERT A. ALTIERI of Howard County,
State of Maryland (hereinafter sometimes the “Employee”).

 

INTRODUCTORY STATEMENT

 

Carrollton
Bancorp is a “holding company” which is the sole owner of the capital stock of
Carrollton Bank and Carrollton Bank is engaged in the business of accepting
deposits of money, paying and cashing checks, making loans, etc., all as more
fully described in West’s Maryland Law Encyclopedia, Volume 4, Section Banks
and Trust Companies, and in and by the Regulations of the Commissioner of
Financial Regulation of the State of Maryland and the Federal Deposit Insurance
Corporation. The Employee has extensive experience in the field of banking and
the Boards of Directors of the “holding company” and the Bank (hereinafter
sometimes the “Board”) are fully familiar with Employee’s knowledge of the
banking business, his ability to lead in the development and growth of the Bank’s
operations and profits and in the expansion of the “holding company” and the
Bank and therefore have determined that it is in the best interest of the Bank
and the “holding company” and its stockholders to reinforce and encourage the
continued attention and dedication of the Employee to the “holding company” and
to the Bank by providing for the continued employment of the Employee with the “holding
company” and the Bank.

 

The Employee
is willing to commit himself to serve the Bank on the terms and conditions
herein provided.

 

In order to
effect the foregoing, the Bank and the Employee wish to enter into an
employment agreement on the terms and conditions set forth herein below.

 

NOW,
THEREFORE, in consideration of Ten Dollars ($10.00) paid each to the other,
receipt of which is hereby acknowledged and in consideration of the respective
covenants and agreements of the parties herein contained, and intending to be
legally bound hereby, the parties hereto agree as follows:

 

1.                                       Employment.  The Bank hereby employs the Employee as
President and Chief Executive Officer, and the Employee hereby accepts such
employment in accordance with the terms and conditions of this Agreement.

 

1.1.                              Assignability.  This Agreement is purely personal to the
parties hereto, and neither party shall have the right to assign, transfer,
pledge, or otherwise affect any interest hereunder nor any of the monies called
for herein.

 

2.                                       Duties
of Employee.  Employee has, for
several years past, been engaged by Bank in the identical position herein
described. It is contemplated by this Agreement that Employee’s duties shall be
comparable to those presently undertaken by Employee, which can generally be
described as being responsible for the day to day management of the Bank,
carrying out the mission, strategy, goals, and objectives established by the
Board and in planning for the growth and profitability of the

 

 

Bank. The duties of employment
shall include such additional executive and managerial duties on behalf of the
Bank and its operations of a character in keeping with the Employee’s position
as may, from time to time, be assigned to the Employee by the Board of
Directors.

 

2.1.                              Best
Efforts of Employee.  Employee agrees
that he will, at all times, faithfully, industriously, and to the best of his
ability, experience, and talents perform all of the duties that may be required
of and from him pursuant to the express and implicit terms of this Agreement to
the reasonable satisfaction of Bank.

 

3.                                       Term.  The effective date of this Agreement shall be
June 1, 2004. The term of employment shall begin on the Effective Date and
continue for a period of three years, unless this Agreement is terminated by
either party as herein provided.

 

                                                4.                                       Compensation.

 

4.1.                              Salary.  During the period of the Employee’s
employment hereunder, the Bank shall pay to the Employee a minimum annual base
salary at a rate of Two Hundred Thousand Dollars ($200,000.00) or such rate as
may, from time to time, be determined by the Board, such salary to be paid in
substantially even installments, subject to customary payroll deductions, in accordance
with the normal payroll practices of the Bank. The Employee’s salary will be
reviewed by the Bank’s Compensation Committee at least annually.

 

Employee shall
not receive additional compensation for services rendered to the Bancorp. It is
the intent of the parties hereto that all compensation, benefits, and bonus, if
any, shall be paid by Carrollton Bank.

 

Prior to any
renewal or extension of the term of this Agreement, salary adjustments shall be
recommended to the Board by Bank’s Compensation Committee.

 

4.2.                              Bonus.  So long as Employee is employed under the
provisions of this Agreement by Bank, at the end of each calendar year,
Employee may receive a cash bonus not to exceed forty percent (40%) of his base
salary. The amount of the bonus will be determined by Bank’s Compensation
Committee based upon Employee having achieved or exceeded the defined goals and
objectives established for the subject year by the aforesaid committee and the
Board of Directors. It is agreed that the goals and objectives will focus on
core profit, earnings, strategic plan achievements and professional
accomplishments.

 

4.3.                              Other
Benefits.  The Employee shall be
entitled to participate in all of the benefit plans and arrangements in effect
on the date hereof in which employees and Officers of the Bank participate,
including group life insurance and accident plans, medical and dental insurance
plans, and short and long term disability plans, defined benefit plan and 401K
plan, provided, however, that changes in such plans or arrangements may be
made, including termination of such plans or arrangements, if such changes
occur pursuant to a program applicable to all employees and Officers of the
Bank and do not result in a proportionately greater reduction in the rights of
or benefits to the Employee as compared with any other employee of the Bank. The
Employee agrees to cooperate in obtaining such

 

2

 

benefits, including submitting
to physical examination and drug testing, if required to do so by insurance
carriers and/or the Board of Directors.

 

4.4.                              Expenses.  During the term of the Employee’s employment
hereunder, the Employee shall be entitled to receive prompt reimbursement for
all reasonable and customary expenses incurred by the Employee in performing
services hereunder, upon presentment of receipts for such expenses.

 

4.5.                              Vacations.  Employee shall be entitled to an annual
vacation time, with full pay, in keeping with Bank policy as same shall from
time to time be amended. Vacation time must be taken during the calendar year
in which it is accrued and cannot be accumulated and carried over into
succeeding calendar years except when permitted by the Chairman of the Board. The
Employee shall take his vacation at reasonable time or times taking into
consideration the needs of the Bank. During the course of a calendar year,
Employee must take a vacation of two consecutive weeks, but no single vacation
can be taken for a period exceeding two consecutive weeks.

 

4.6.                              Sick
Leave.  Employee shall be entitled to
sick leave in keeping with Bank policy as same shall from time to time be
amended. Days awarded under said sick leave policy are not cumulative and may
not be carried over into succeeding calendars years except when permitted by
the Chairman of the Board.

 

4.7.                              Automobile
and Costs Associated Therewith. 
Commencing with the effective date of this Agreement, Employee shall
receive the use of a Bank-owned car. During the life of this Agreement, subject
to Employee being employed by Bank and this Agreement being extended, on the
third anniversary of the effective date hereof, Employee shall receive the use
of a new Bank-owned car. The make and model of the Bank-owned car shall be as
determined by the Employee, subject to the approval of the Board. In addition
thereto, Employee shall receive a Bank-owned credit card for use in paying for
fuel and oil for the operation of the vehicle and necessary repairs to the
vehicle. Bank shall, at Bank’s expense, obtain and maintain insurance covering
the use of the vehicle. Should Employee determine that, in his opinion, the
amount and type of insurance obtained by the Bank is inadequate, it shall be
Employee’s responsibility to obtain, at his expense, any additional types or
amounts of insurance.

 

It shall be
the responsibility of Employee to maintain all records appropriate to Internal
Revenue rules and regulations pertaining to the use of employer-owned vehicles
and, should the use of the employer-owned vehicle result in additional tax
consequences to Employee, the tax shall be the responsibility of Employee to
pay.

 

4.8.                              Stock
Options.  During the term of this
Agreement and subject to the availability of stock for option usage and
provided that, in the year for which the grant is to be made, Bank has achieved
the goals and objectives as set forth in Paragraph 4.2 hereinabove, Employee
may receive stock option grants as determined by Bank’s Compensation Committee.
Should stock option grants be made, they shall take into account the affect on
Bank of accounting charges and they shall take into consideration the amount
and type of stock options granted to presidents of peer banks in Maryland and
adjacent states.

 

3

 

At the
determination of the said Compensation Committee and in keeping with the
provisions of the next hereinabove paragraph, the Compensation Committee may,
in lieu of or in addition to, stock options determined to grant stock
appreciation rights, phantom stock, restricted stock, or similar grants.

 

4.9.                              Memberships.  Bank will provide to Employee and pay the
cost (both initiation and annual) thereof of membership in the Center Club,
Maryland Banker’s Association, and, at the determination of the Board, other
professional associations.

 

4.10.                        Master
of Business Administration.  Bank
shall advance the cost of tuition for Employee to obtain an MBA degree in
Business Administration or a course to enhance Employee’s knowledge of Real
Estate Practices. The course to be given by either Johns Hopkins University or
Loyola College in Baltimore. Should Employee successfully complete the course
within the normal time frame for completion, the advancement shall be forgiven,
otherwise Employee shall reimburse Bank for funds advanced on his behalf.

 

4.11.                        Taxation.  Under the provisions and regulations
pertaining to compensation promulgated by Federal and State taxing authorities
as same now exists or as same may be amended, Bank may be required to report
some or all of the proposed benefits as additional compensation to Employee, in
which event, the tax consequences shall be the responsibility of Employee.

 

5.                                       Termination.  The Employee’s employment hereunder may be
terminated without any breach of this Agreement under the following
circumstances:

 

5.1.                              Death.  The Employee’s employment hereunder shall
terminate upon his death.

 

5.2.                              Disability.  If, as a result of the Employee’s incapacity
due to physical or mental illness, the Employee shall have been absent from his
duties hereunder on a full-time basis for the entire period of six (6) months
and within thirty (30) days after written Notice of Termination is given (which
notice may be given before or after the end of the six month period) shall not
have returned to the performance of his duties hereunder on a full time basis,
the Bank may terminate the Employee’s employment hereunder. Benefits, if any,
shall continue to be paid to Employee in keeping with the provisions of any
Disability Plan under which Employee was covered prior to his termination.

 

5.3.                              Voluntary
Termination by the Employee.  The
Employee may voluntarily resign or terminate his employment hereunder by
transmitting a written Notice of Termination to the Bank at least ninety (90)
days prior to the effective date of such resignation/termination. All
compensation and benefits, to or for Employee, shall continue for the ninety
(90) day period and cease and terminate on the effective date of
resignation/termination. Employee agrees to continue rendering his best efforts
on behalf of the Bank during this ninety (90) day period unless Bank requests
him to cease at an earlier date, which request will not interfere with Employee’s
continued compensation.

 

4

 

5.4.                              Termination
for Cause.  The Bank may terminate
Employee’s employment with the Bank without triggering the provisions of
Section 6, upon discovery of Employee’s fraud, dishonesty, moral turpitude,
willful misconduct, breach of fiduciary duty involving personal profit,
intentional failure to perform stated duties as herein set out or as determined
by the Board, willful violation of any law, rule, or regulation (other than
traffic violations or similar offences) or any final cease-and-desist order or
the taking of any wrongful action which Employee knew or should have known
would cause injury to the Bank or its reputation or the breach of any provision
of this Agreement.

 

Should
Employee, under State or Federal law, be indicted or, by information, be
charged with the commission of a felony, Board may suspend, with or without
pay, Employee’s services. Should Employee be convicted of the commission of a
felony, Board may terminate Employee’s employment and the termination shall be
for cause.

 

5.5.                              Any
termination of the Employee’s employment (other than termination pursuant to
Section 5.1 hereof) shall be communicated by written Notice of Termination to
the other party as provided in Section 8 hereof.

 

5.6.                              Bank’s
Right to Terminate.  Nothing in this
Section 5 or elsewhere in this Agreement shall be interpreted to limit the Bank’s
authority to discharge Employee at any time with or without cause.

 

6.                                       Compensation
Upon Termination.

 

6.1.                              Termination
Without Cause.  Should Bank terminate
Employee’s employment for any reason, other than the provisions of Section 5.4
hereof, Employee shall continue, for the next succeeding twenty-four (24)
calendar months, to receive his then current monthly salary, provided Employee
fully complies with the provisions of Sections 9 and 13 hereof. Normal
deductions for withholding taxes, insurance, etc. shall continue to be withheld
by Bank for Employee’s benefit.

 

In addition,
Employee shall continue to participate in all plans in which he participated at
the time of termination on the same terms, basis, and conditions set forth in
Section 4.3 hereof.

 

6.2.                              Termination
for Cause.  Should Employee’s
employment terminate pursuant to the provisions of Section 5.1, 5.2, 5.3, or
5.4 of this Agreement, Employee shall not be entitled to any further
compensation or benefits (including, but not limited to insurance, except as
may be provided in the insurance plan, annual bonus, or annual stock option
grant) beyond the “date of termination.” For purposes of this section, “date of
termination” shall be the date specified in the Notice of Termination or, if no
date is specified, the date on which the Notice of Termination is given or, as
to Section 5.1, the date of death.

 

6.3.                              Employee’s
Obligations Upon Termination.  Upon
termination, with or without cause, Employee will promptly return to Bank all
property owned by the Bank which is in Employee’s possession or control. This
provision shall include,

 

5

 

but not be limited to,
vehicles, keys, credit cards, debit cards, and access cards.

 

6.4.                              Termination
as a Result of Sale of Bank.  During
the terms of this Agreement, should the Bank be sold to or acquired by another
entity:

 

a)                                      Any
stock options not yet vested in Employee shall immediately vest in Employee. These
options shall vest regardless of whether Paragraphs 6.4(b), (c), (d), or (e)
below apply.

 

b)                                     If
Employee is offered employment at the acquiring institution and he accepts such
employment, this Agreement shall be of no further effect.

 

c)                                      If
Employee is not offered any employment or is not offered Substantially Similar
Employment (defined below) by the acquiring institution, Employee shall receive
a severance package consisting of: (i) three years of his current base salary
payable in 36 equal monthly installments; (ii) continuation for a period of
three years at no cost to Employee of all medical and long-term disability
insurance offered by the surviving entity to its employees; if the surviving
entity offers more than one medical insurance plan and/or disability insurance
plan, Employee may select the plans of his choice; and (iii) at the option of
Employee, Employee may acquire from the Bank, the Bank-owned car which had been
assigned to Employee at no cost to Employee except for the costs associated
with the transfer (and any income tax that may be due by the Employee if the
transfer of the car is considered compensation for income tax purposes).

 

d)                                     If
Employee is offered Substantially Similar Employment and declines said
employment for any reason (Employee need not provide a reason), Employee shall
receive the severance package provided in Paragraph 6.1 of this Agreement and
at the option of Employee, Employee may acquire from the Bank, the Bank-owned
car which had been assigned to Employee at no cost to Employee except for the
costs associated with the transfer (and any income tax that may be due by the
Employee if the transfer of the car is considered compensation for income tax
purposes).

 

e)                                      Substantially
Similar Employment shall mean a position at the surviving or acquiring
institution where Employee is provided: (i) a salary equal to or better than
the salary offered under this Agreement; (ii) benefits similar to or better
than the benefits offered hereunder including health insurance, stock options,
retirement benefits, use of company vehicle, severance package, and employment
agreement; (iii) Employee’s place of employment remains in the Baltimore
metropolitan area; and (iv) Employee receives the title of authority and
responsibilities of Vice President or a higher position.

 

f)                                        Should
the sale of Bank be the result of Regulatory action, State and/or Federal, the
provisions of this section shall be subject to modification by said Regulator.

 

7.                                       Compensation
During Disability.  During any period
that the Employee fails to perform his duties hereunder as a result of
incapacity due to physical or mental illness, the Employee shall continue to
receive or shall receive the benefits of (as

 

6

 

the case may be), all items
described in Section 4 hereof at the rate then in effect for such period until
his employment is terminated pursuant to Section 5.2 hereof, provided that
payments so made to the Employee shall be reduced by the sum of the amounts, if
any, payable to the Employee under the Bank’s disability insurance, under
worker’s compensation insurance or under any other insurance.

 

8.                                       Notice.  Whenever notice is required to be given under
the provisions of this Agreement, it shall be given in writing by hand-delivery
or United States registered or certified mail, return receipt requested, and
shall be deemed to have been transmitted on the date such notice is so
delivered, transmitted, or mailed, if addressed as follows:

 

If to the
Bank:

 

Carrollton
Bank

P.O. Box 24129

Baltimore, MD 21227

Attention: Chairman
of the Board, Carrollton Bank

 

If to the
Employee:

 

Robert A.
Altieri

2814 Shadow
Roll Court

Glenwood, MD 21738

 

or to such other address as
either of the parties hereto, by written notice to the other, may, from time to
time, designate.

 

9.                                       Confidential
Information.

 

9.1                                 Employee
agrees that any information received by the Employee during his employment with
Bank which concerns the personal, financial, or other affairs of the Bank or
any of its customers, employees or stockholders will be treated by the Employee
in full confidence and will not be revealed to any other persons, firms, or
organizations nor will Employee make personal use of any confidential
information concerning the Bank’s business or about its customers, employees,
or stockholders.

 

9.2                                 Bank
agrees that any information pertaining to Employee received by the Bank during
the course of Employee’s employment by Bank will be treated by Bank in full
confidence and will not be revealed to any other persons, firms, or
organizations, nor will Bank make use of such confidential information.

 

10.                                 Arbitration
of Disputes.  Any controversy or
claim arising out of or relating to this Agreement or the breach thereof shall
be settled by arbitration in accordance with the rules of the American
Arbitration Association. Judgment upon the award rendered by the arbitrator may
be entered in any court having jurisdiction thereof.

 

However, in
the event of non-compliance or violation, as the case may be, of Section 9
and/or 13 hereof, the Bank may alternatively apply to a court of competent
jurisdiction for a temporary restraining order and/or such other legal and
equitable remedies as may be appropriate, since the Bank would

 

7

 

have no adequate remedy at law
for such violation or non-compliance.

 

11.                                 Other
Employment.  Employee, during the
term of this Agreement, is prohibited from accepting or undertaking any work or
employment, with or without compensation, from another employer without Bank’s
written consent. It is Bank’s intention that Employee devote all of Employee’s
work efforts toward the development and improvement of the Bank’s business. However,
Employee may undertake investment opportunities which do not conflict with his
Bank duties and responsibilities. Board determinations will be reasonable and
prompt.

 

12.                                 Other
Regulatory Provisions.

 

12.1.                        Suspension.  If Employee is suspended and/or temporarily
prohibited from participating in the conduct of the Bank’s affairs by a notice
served under the provisions of the Federal Deposit Insurance Act, the Bank’s
obligations under this Agreement shall be suspended, as of the date of service,
unless stayed by appropriate proceedings.

 

12.2.                        Removal.  If Employee is removed and/or permanently
prohibited from participating in the conduct of Bank’s affairs by an order
issued under the provisions of the Federal Deposit Insurance Act, all
obligations of the Bank under this Agreement shall terminate as of the
effective date of the order, but vested rights of the parties hereto shall not
be affected.

 

12.3.                        Bank’s
Default.  If the Bank is in default
(as defined under the provisions of the Federal Deposit Insurance Act), all
obligations under this Agreement may be modified or terminated as of the date
of default, but this Paragraph 12.3 shall not affect any vested rights of the
parties hereto.

 

12.4.                        Contractual
Obligations.  All obligations under
this Agreement may be modified or terminated, except to the extent determined
that continuation of the Agreement is necessary for the continued operation of
the Bank:

 

(i)                                     by
the Federal Deposit Insurance Corporation or the Resolution Trust Corporation
or its designee at the time it enters into an agreement to provide assistance
to or on behalf of the Bank under the authority contained in the Federal
Deposit Insurance Act; or

 

(ii)                                  by
the Board of Directors of the Federal Deposit Insurance Corporation or the
Resolution Trust or its designee at the time that it approves a supervisory
merger to resolve problems related to the operation of the Bank or when the
Bank is determined to be in an unsafe or unsound condition.

 

Any rights of
the parties hereto that have already vested, however, shall not be affected by
such action.

 

13.                                 Non-Compete.  For a period of twenty-four (24) months
following termination of his employment with Bank, Employee agrees that he
shall not solicit customers of the Bank for any purpose whatsoever and further,
within an area of thirty-five (35) miles from Bank’s then main office, Employee
will not accept employment with a bank, thrift or credit union as a President,
Senior Vice President, Vice President, or in a managerial capacity.

 

8

 

14.                                 Training
of Others.  Because of the
possibility of Employee’s death or disability during the term of this
Agreement, Employee agrees to develop a “plan of succession” meeting with the
Board’s approval.

 

15.                                 Miscellaneous.

 

a)                                      No
provisions of this Agreement may be modified, waived, or discharged, unless
such waiver, modification, or discharge is agreed to in writing signed by the
Employee and such officer of the Bank as may be specifically designated by the
Board.

 

b)                                     No
waiver by either party hereto at any time of any breach by the other party
hereto of or compliance with any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions as the same or at any prior or subsequent time.

 

c)                                      The
validity, interpretation, construction, and performance of this Agreement shall
be governed by the laws of the State of Maryland without regard to its
conflicts of law provisions.

 

d)                                     The
invalidity or unenforceability of any provision or provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement which shall remain in full force and effect.

 

e)                                      This
Agreement sets forth the entire agreement of the parties hereto in respect of
the subject matter contained herein and supersedes all prior agreements,
promises, covenants,

arrangements, communications,
representations or warranties, whether oral or written, by any officer,
employee or representative of any party hereto; and any prior agreement of the
parties hereto in respect of the subject matter contained herein is hereby
terminated and canceled.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement under seal as of the day and
year first above written.

 

	
  WITNESS/ATTEST:

  	
   

  	
   

  	
  CARROLLTON
  BANCORP

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
    /S/ Kimberly John

  	
   

  	
  By:

  	
     /S/ Albert R. Counselman

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ALBERT R. COUNSELMAN,

  	
   

  
	
   

  	
   

  	
   

  	
  Chairman of the Board

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CARROLLTON BANK

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
    /S/ Allyson Cwiek

  	
   

  	
  By:

  	
     /S/ John Paul Rogers

  	
   

  
	
   

  	
   

  	
   

  	
  JOHN PAUL ROGERS,

  	
   

  
	
   

  	
   

  	
   

  	
  Chairman of the Board

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
    /S/ Kimberly John

  	
   

  	
   

  	
     /S/ Robert A. Altieri

  	
   

  
	
   

  	
   

  	
   

  	
  ROBERT A.
  ALTIERI

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STATE OF
  MARYLAND,

  	
   

  	
  , TO WIT:

  	
   

  
						

 

9

 

I HEREBY
CERTIFY that, on this          day of             ,
2004, the subscriber, a Notary Public of the State of Maryland aforesaid,
personally appeared ALBERT R. COUNSELMAN, who acknowledged himself to be the
Chairman of the Board of CARROLLTON BANCORP, a corporation, and that he, as
such Chairman of the Board, being authorized so to do, executed the aforegoing
instrument for the purposes therein contained, by signing, in my presence, the
name of the corporation by himself as such Chairman of the Board.

 

IN WITNESS
WHEREOF, I hereunto set my hand and Notarial Seal.

 

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

 

	
  My
  commission expires:

  	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF
  MARYLAND,

  	
  , TO WIT:

  
				

 

I HEREBY
CERTIFY that, on this        day of         ,
2004, the subscriber, a Notary Public of the State of Maryland aforesaid,
personally appeared JOHN PAUL ROGERS, who acknowledged himself to be the
Chairman of to Board of CARROLLTON BANK, a corporation, and that he, as such
Chairman of the Board, being authorized so to do, executed the aforegoing
instrument for the purposes therein contained, by signing, in my presence, the
name of the corporation by himself as such Chairman of the Board.

 

IN WITNESS
WHEREOF, I hereunto set my hand and Notarial Seal.

 

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

 

	
  My
  commission expires:

  	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF
  MARYLAND,

  	
  TO WIT:

  
				

 

I HEREBY
CERTIFY that, on this 24th day of June, 2004, before me, the subscriber, a
Notary Public of the State aforesaid, personally appeared ROBERT A. ALTIERI,
known to me (or satisfactorily proven) to be the person whose name is
subscribed to the within instrument, and he acknowledged that he executed the
same for the purposes therein contained, and, in my presence, signed and sealed
the same.

 

IN WITNESS, I
hereunto set my Hand and Notarial Seal.

 

 

	
   

  	
    /S/ Kyran Ross

  
	
   

  	
  Notary
  Public

  

 

	
  My
  commission expires:

  	
    01/01/07

  	
   

  

 

10

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