Document:

Unassociated Document

Exhibit 10.1

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made this 29th day of October, 2013 by and between David E. Borowy, a resident of the State of Maryland (“Employee”), and Bay Bank, F.S.B., a federally chartered savings bank (“Employer”).  Employee and Employer are each sometimes referred to herein as a “Party” and are collectively sometimes referred to herein as the “Parties”.

WHEREAS, Employee is employed by Employer and currently serves as its Interim Chief Financial Officer;

WHEREAS, the terms and conditions of such employment are governed by that certain Employment Agreement, dated as of January 3, 2013, by and between Employee and Employer (the “Agreement”); and

WHEREAS, the Parties desire to amend certain provisions of the Agreement relating to the term of Employee’s employment with Employer and the compensation to be paid to Employee upon the termination of his employment under certain circumstances.

NOW, THEREFORE, in consideration of the continued employment of Employee by Employer and of the premises and the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.           Amendment of Section 2.  The Agreement is hereby amended by deleting Section 2 it in its entirety and substituting the following in lieu thereof:

 

2.           [Intentionally Omitted].

 

2.           Amendment of Section 11.  Section 11 of the Agreement is hereby amended by replacing the reference to “Section 12.2” in the first sentence thereof with “Section 12.3”.

 

3.           Amendment of Section 12.  The Agreement is hereby further amended by deleting Section 12 in its entirety and substituting the following in lieu thereof:

 

12.           Term; Termination.

12.1     The term of Employee’s employment under this Agreement shall commence on January 3, 2013 and shall terminate on October 29, 2014 (the “Expiration Date”), subject to earlier termination pursuant to Section 12.2.

 

12.2     Employee’s employment with Employer may be terminated prior to the Expiration Date as follows:  (a) by Employer for Cause (as defined in Section 12.3 of this Agreement), upon Employer’s delivery of notice thereof to Employee; (b) by Employer without Cause at any time, upon Employer’s delivery of notice thereof to Employee; (c) by Employee for Good Reason (as defined in Section 12.4 of this Agreement), upon 

 

  

  

  

  

Employee’s delivery of notice to Employer that Employee is terminating his employment because, pursuant to Section 12.4(b) of this Agreement, Employer failed to cure or eliminate a fact or circumstance constituting “Good Reason; or (d) by Employee without Good Reason, upon Employee’s delivery of notice thereof to Employer.

 

12.3     As used in this Agreement, “Cause” shall mean any of the following:  (a) Employee’s death; (b) Employee’s disability resulting in an inability to perform his duties, as set forth in Section 1 hereof, for a period of 180 consecutive days; (c) conduct by Employee that amounts to fraud, personal dishonesty, incompetence, breach of fiduciary duty involving personal profit, gross negligence or willful misconduct in the performance of or intentional failure to perform his stated Duties; (d) the conviction (from which no appeal may be, or is, timely taken) of Employee of a felony or willful violation of any law, rule or regulation (other than traffic violations or similar offenses); (e) any federal or state regulatory authorities acting under lawful authority pursuant to provisions of federal or state law or regulation which may be in effect from time to time exercises any power granted to it by law or regulation to remove, prohibit or suspend Employee from participating in the conduct of Employer’s affairs; (f) Employee’s willful violation of any final cease-and-desist order; (g) Employee’s knowing violation of federal or state banking laws or regulations which are likely to have a material adverse effect on Employer, as determined by the Board of Directors or CEO of Employer; (h) refusal by Employee to timely perform a reasonable and duly authorized directive of the Board of Directors or CEO of Employer that is clearly communicated to Employee by the Board of Directors or CEO and that is consistent with the scope of Employee’s duties under this Agreement unless Employee in good faith believes that such performance would cause Employee to breach his fiduciary duties to Employer or that such performance would constitute a violation of any federal or state law or regulation that is applicable to Employer or Employee; or (i) Employee’s material breach of any provision of this Agreement.

 

12.4     As used in this Agreement, “Good Reason” shall mean the satisfaction of paragraph (a) and paragraph (b) of this Section 12.4:

 

(a)     The occurrence of any of the following:  (i) without Employee’s consent, Employer materially diminishes Employee’s then-current Base Salary rate, other than a diminution made pursuant to a broad-based, employee-wide salary reduction program adopted by the Employer’s Board of Directors; (ii) without Employee’s consent, Employer fails to pay any performance-based compensation earned by Employee as and when required by the plan or arrangement pursuant to which such compensation was granted or awarded; (iii) without Employee’s consent, Employer materially diminishes (excluding premium adjustments and changes generally applicable to employees of Employer) any benefit granted or provided pursuant to Section 5 hereof, other than as part of a reduction in benefits applicable to all executive officers or employees of Employer; (iv) without Employee’s consent, Employer changes Employee’s primary place of work by more than 60 miles from the Main Office; (v) following Employer’s appointment after October 29, 2013 of an individual (other than Employee) to serve as its Chief Financial Officer (the “CFO Appointment”) and Employer’s corresponding appointment of Employee to serve as its Senior Accounting Officer, Employer, without Employee’s consent, materially diminishes the Duties applicable to the Senior Accounting Officer position as described in Section 1 of this Agreement; and/or (vi) Employer materially 

 

  

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breaches any provision of this Agreement.

 

(b)     Employee shall have given Employer written notice within 30 days of his knowledge or reason to know of the existence of any fact or circumstance constituting Good Reason as described in paragraph (a) of this Section 12.4, and the Employer shall have failed to cure or eliminate such fact(s) or circumstance(s) within 30 days of its receipt of such notice.

12.5     Upon the expiration on the Expiration Date of the term of Employee’s employment, Employee shall be entitled to receive:  (a) all unpaid Base Salary that has accrued through the Expiration Date; and (b) cash representing the value of all unused vacation that has accrued through the Expiration Date, computed on a daily basis.  Employer shall pay the foregoing amounts in a lump-sum payment within 10 business days after the date of the Expiration Date.

 

12.6     If Employee’s employment is terminated by Employer for Cause, then Employee shall be entitled to receive:  (a) all unpaid Base Salary that has accrued through the date of termination; and (b) in the case of a termination pursuant to Section 12.3(a) or Section 12.3(b), cash representing the value of all unused vacation that has accrued through the Expiration Date, computed on a daily basis.  Employer shall pay the foregoing amounts to Employee or his estate, as applicable, in a lump-sum payment within 10 business days after the later of the date of such termination or, in the case of Employee’s death, the date on which Employer receives notice of such death.

 

12.7     If Employee’s employment is terminated by Employer without Cause or if Employee’s employment is terminated by Employee for Good Reason, then Employee shall be entitled to receive:  (a) all unpaid Base Salary that has accrued through the date of termination; (b) cash representing the value of all unused vacation that has accrued through the date of termination, computed on a daily basis; and (c) subject to Section 12.9 and Section 12.10 hereof, severance (“Severance”) in an amount equal to six (6) months’ salary at Employee’s then current Base Salary level, payable in six (6) equal monthly payments commencing two (2) weeks after the date that the Release (as defined in Section 12.9 hereof) becomes effective and irrevocable.

 

12.8     Notwithstanding anything to the contrary contained in this Agreement, the termination of Employee’s employment shall not impair any rights of Employee under any employee benefit or fringe benefit plans or arrangements that have vested as of the date of termination, which rights shall be administered after the termination of employment in accordance with the terms of such plans and arrangements; provided, however, that, for the avoidance of doubt, the term “benefit” shall not include accrued but unused vacation when Employee’s employment is terminated pursuant to Section 12.3(c) through Section 12.3(i).

 

12.9     Employer’s obligation to pay Severance will not apply unless:  (a) Employee’s employment with Employer and/or its Affiliates has been terminated; (b) Employee has returned all Employer property; and (c) Employee signs and does not revoke a general release of claims (in a form prescribed by Employer) of all known and unknown claims that Employee may then have against Employer and/or its Affiliates (the “Release”) 

 

  

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and provided that such Release becomes effective and irrevocable no later than sixty (60) days following the termination date (such deadline, the “Release Deadline”). If the Release does not become effective and irrevocable by the Release Deadline and clauses (a) and (b) of this Section 12.9 are not satisfied, Employee’s right to Severance under this Agreement shall lapse and be automatically forfeited.  In no event will Severance be paid until the Release becomes effective and irrevocable. The Release shall cover all claims, known or unknown, relating to Employee’s employment, including without limitation any claims for discrimination or the Employer’s breach of this Agreement.  The Release shall exclude any claims with respect to any issued capital stock of Employer and any vested stock options (to the extent that such stock options by their terms expressly survive the termination of employment), and any Severance, benefits and other post-employment obligations of the Employer as contemplated by this Section 12.

 

12.10     Any payments made to the Employee pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(k)) and the regulations promulgated thereunder (including those contained in 12 C.F.R. Part 359), as such statutory provision and regulations may be amended, superseded and/or replaced from time to time.  In addition, if a payment obligation under this Agreement arises on account of the termination of Employee’s employment while Employee is a “specified employee” (as defined under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and determined in good faith by Employer), any and all payments of “deferred compensation” (as defined in Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that are scheduled to be paid within six months after such termination of employment shall be paid in a lump sum within 15 days after the end of the six-month period beginning on the date of such termination of employment.  If Employee dies prior to the date payments are required to commence in accordance with the previous sentence, then payment shall be made in a lump sum within 15 days after the appointment of the personal representative or executor of Employee’s estate following his death.

 

12.11     Notwithstanding anything in this Agreement to the contrary, this Agreement, and the rights and obligations of the Parties, shall be subject to the following:

 

(a)     If the Employee is suspended and/or temporarily prohibited from participating in the conduct of the Employer’s affairs by a notice served under Section 8(e)(3) or (g)(1) of Federal Deposit Insurance Act (12 U.S.C. § 1818(e)(3) and (g)(1)) the Employer’s obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, the Employer may in its discretion (i) pay the Employee 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.

 

(b)     If the Employee is removed and/or permanently prohibited from participating in the conduct of the Employer’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. § 1818(e)(4) or (g)(1)), all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the Parties shall not be affected.

 

  

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(c)     If the Employer is in default, as defined in Section 3(x)(1) of the Federal Deposit Insurance Act (12 U.S.C. § 1813(x)(1)), all obligations under this Agreement shall terminate as of the date of default, but, except to the extent required by applicable law, vested rights of the Parties shall not be affected by such default.

 

(d)     All obligations under this Agreement shall be terminated, except to the extent determined that continuation of the Agreement is necessary for the continued operation of Employer:

 

(i)     By the applicable Regional Director (the “Director”) of the Federal Deposit Insurance Corporation (the “FDIC”) or his or her designee, at the time the FDIC enters into an agreement to provide assistance to or on behalf of Employer under the authority contained in 13(c) of the Federal Deposit Insurance Act; or

 

(ii)     By the Director or his or her designee, at the time the Director or his or her designee and any other federal banking agency that supervises Employer approve a supervisory merger to resolve problems related to operation of Employer or when Employer is determined by the Director and/or any other federal banking agency that supervises Employer to be in an unsafe or unsound condition.

 

Provided, however, that, except to the extent required by applicable law, vested rights of the Parties shall not be affected by such action.

3.           Ratification of Terms.  Each of the Parties ratifies and confirms the Agreement, as amended by this Amendment, and agrees that the Agreement is and shall remain in full force and effect except to the extent amended by this Amendment.  As used in the Agreement, the term “Agreement” shall mean the Agreement, as amended by this Amendment.

4.           Counterparts.  This Amendment may be executed in any number of counterparts, each copy of which shall serve as an original for all purposes, but all copies shall constitute but one and the same agreement.  The exchange of copies of this Amendment and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Amendment as to the Parties and may be used in lieu of an original of this Amendment for all purposes.  Signatures of the Parties transmitted by facsimile or PDF transmission shall be deemed to be their original signatures for all purposes.

[SIGNATURES APPEAR ON NEXT PAGE]

 

  

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[SIGNATURE PAGE]

WHEREFORE, the Parties have executed this Amendment on the date first written above.

	  	
EMPLOYEE:

	  
	  	  	  	  
	  	  	  	  
	  	  	  
	  	
David E. Borowy

	  
	  	  	  	  
	  	  	  	  
	  	
EMPLOYER:

	  
	  	  	  	  
	  	
BAY BANK, F.S.B.

	  
	  	  	  	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	
Kevin B. Cashen

	  
	  	
Title:

	
President and Chief Executive Officer

 

 

6Unassociated Document

Exhibit 10.2

CARROLLTON BANCORP

STOCK OPTION AGREEMENT

 

This Stock Option Agreement (“Agreement”) is made and entered into as of the Date of Grant indicated below by and between Carrollton Bancorp, a Maryland corporation (the “Company”), and the person named below (“Participant”).

 

WHEREAS, Participant is a fulltime employee of the Company or any of its Subsidiaries or a non-employee director of the Company or any of its Subsidiaries; and

 

WHEREAS, pursuant to the Company’s 2007 Equity Plan (the “Plan”), the Committee of the Board of Directors of the Company administering the Plan (the “Committee”) has approved the grant to Participant of an option to purchase shares of the Company’s common stock, (the “Common Stock”), on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the covenants set forth herein, the parties hereto hereby agree as follows:

 

1.           Grant of Option; Certain Terms and Conditions.  The Company hereby grants to Participant, and Participant hereby accepts, as of the Date of Grant, an option to purchase the number of shares of Common Stock indicated below (the “Option Shares”) at the Exercise Price per share indicated below, which option shall expire at 5:00 p.m. on the Expiration Date indicated below or as earlier provided in this Agreement and shall be subject to all of the terms and conditions set forth in this Agreement (the “Option”).  On each anniversary of the Date of Grant, the option shall become exercisable to purchase, and shall vest with respect to, the number of the Option Shares (rounded to the nearest whole share) equal to the total number of Option Shares multiplied by the Annual Vesting Rate indicated below.

 

	 	
Participant:

	  	  
	 	 	 	 	 
	 	
Date of Grant:

	  	  	  
	 	 	 	 	 
	 	
Number of shares purchasable (“Option Shares”):

	  	  	  
	 	 	 	 	 
	 	
Exercise Price per share:

	  	  	  
	 	 	 	 	 
	 	
Expiration Date:

	  	  	  
	 	 	 	 	 
	 	
Annual Vesting Rate:

	  	  	  
	 	 	 	 	 
	 	
Type of Option (Incentive or Non-Qualified)

	  	  	  

 

 

  

  

  

 

2.           Acceleration and Termination of Option

 

(a)           Termination of Employment.

 

(i)           Retirement.  If there is a Termination of Participant’s service with the Company or any of its Subsidiaries by reason of Participant’s Retirement, then Participant’s Option may thereafter be exercised, to the extent it was exercisable on the date of such Termination, until the earlier of 90 days from the date of such Termination and the Expiration Date (the “Option Termination Date”).

 

(ii)           Death.  If there is a Termination of Participant’s service with the Company or any of its Subsidiaries by reason of the death of Participant, then any Option held by Participant may thereafter be exercised, to the extent it was exercisable on the date of the Participant’s death, by the legal representative of the Participant’s estate or by any other person who acquires the right to exercise the Option by reason of such death under the Participant’s will or the laws of intestate succession, until the earlier of 12 months from the date of death and the Expiration Date (the “Option Termination Date”).

 

(iii)           Disability. If there is a Termination of Participant’s service with the Company or any of its Subsidiaries by reason of Participant’s Disability, then any Option held by Participant may thereafter be exercised, to the extent it was exercisable on the date of such Termination, until the earlier of 12 months from the date of such Termination or the Expiration Date (the “Option Termination Date”).

 

(iv)           Termination for Cause.  If there is a Termination of Participant’s service with the Company or any of its Subsidiaries for Cause, then any Option held by Participant, including any Option that is exercisable on the date of such Termination, shall immediately terminate and be of no further force and effect.

 

(v)           Other Termination.  If there is a Termination of Participant’s service with the Company or any of its Subsidiaries for any reason other than Retirement, death, Disability or Cause, then any Option held by Participant may thereafter be exercised, to the extent it was exercisable on the date of such Termination, until the earlier of three (3) months from the date of such Termination and the Expiration Date (the “Option Termination Date”).

 

(b)           Other Events Causing Acceleration of Option.  The Committee, in its sole discretion, may at any time accelerate the exercisability of all or any portion of any Option for any reason.

 

(c)           Rights of Stockholder.  Participant shall have the rights of a stockholder only as to shares acquired upon the exercise of an Option and not as to unexercised Options.  Shares of Common Stock issued upon exercise of an Option shall be free of all restrictions under the Plan, except as otherwise provided in the Plan or applicable law and regulation.

 

3.           Exercise. The Option shall be exercisable during Participant’s lifetime only by Participant or by his or her guardian or legal representative, and after Participant’s death only by the person or entity entitled to do so under Participant’s last will and testament or applicable intestate law.  Options may be exercised in whole or in part, by giving written notice of exercise to the Company specifying the number of shares to be purchased as provided in Section 5.4(c) of the Plan.  Payment of the purchase price shall be made in full concurrently with such exercise by (a) cash or certified check payable to the Company, (b) if the Company is not then prohibited from purchasing or acquiring shares of Common Stock, with shares of Common Stock that have been held by the Participant for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes, delivered in lieu of cash and valued at their Fair Market Value on the date of exercise; (c) through a “same day sale” commitment from the Participant and a broker-dealer that is a member of the National Association of Securities Dealers, Inc. (the “NASD Dealer”) whereby the Participant irrevocably elects  to exercise the Option and to sell a portion of the shares so 

 

  

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purchased to pay for the exercise price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the exercise price directly to the Company or (d) any combination of the foregoing.   The delivery of certificates representing the shares of Common Stock to be purchased pursuant to the exercise of an Option will be contingent upon receipt from the Participant (or a purchaser acting in his stead in accordance with the provisions of the Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Option or applicable provisions of laws.

 

4.           Annual Limit on Incentive Stock Options. Section 422 of the Code requires for “incentive stock option” treatment that the aggregate fair market value, as defined hereinafter, of the shares of Common Stock with respect to which Incentive Stock Options granted under this Plan and any other plan of the Company or any of its Subsidiaries become exercisable for the first time by a Participant during any calendar year shall not exceed $100,000. To the extent that any Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.  In the event the $100,000 limit is exceeded, the Participant may designate in writing to the Committee whether Participant is exercising the Incentive Stock Option portion or the Non-Qualified Stock Option portion.  In the absence of such written designation, the Incentive Stock Option portion shall be deemed exercised first to the extent thereof.  For purposes of this Section 4, the fair market value, as of any applicable date, shall have the meaning given the term “Fair Market Value” in the Plan.

 

5.           Payment of Withholding Taxes.  As a condition to the exercise of an Option, Participant shall, no later than the date as of which the value of an Option or of any Common Stock or other amounts received thereunder first becomes includable in the gross income of the Participant for federal income tax purposes, pay to the Company, or make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding taxes of any kind required by law to be withheld.  The Committee may permit the Participant to satisfy all or part of his or her tax obligations related to the Option or Option Shares by having the Company withhold a portion of any Option Shares that otherwise would be issued to him or her.  Such shares of Common Stock or Option Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash.

 

6.           Tax Consequences.  Participant shall rely solely on his or her own tax advisors concerning the Option and its tax consequences.

 

7.           Notices.  All notices and other communications required or permitted to be given pursuant to this Agreement shall be in writing and shall be deemed given if delivered personally or five days after mailing by certified or registered mail, postage prepaid, return receipt requested, to the Company at 2328 West Joppa Road, Suite 325, Lutherville, Maryland 21093, Attention:  Chief Executive Officer, or to Participant at the address set forth beneath his or her signature on the signature page hereto, or at such other addresses as they may designate by written notice in the manner aforesaid.

 

8.           Notice of Disqualifying Disposition of Incentive Stock Option Shares.  To the extent this Option is an Incentive Stock Option, if Participant sells or otherwise disposes of any of the Option Shares acquired pursuant to the Incentive Stock Option on or before the later of (a) the date two (2) years after the Date of Grant, and (b) the date one (1) year after transfer of such Shares to Participant upon exercise of this Option, then Participant shall immediately notify the Company in writing of such disposition.

 

9.           Compliance with Other Laws and Regulations.  Notwithstanding anything to the contrary in this Agreement, the grant and exercise of Options hereunder, and the obligation of the Company to sell and deliver shares under such Options, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any governmental or regulatory agency as may be required including the rules and regulations of the Securities and Exchange Commission and the rules of any exchange or any quotation system on which the Company’s Common Stock may then be listed.  The Company shall not be required to issue or deliver any certificates for shares of Common Stock prior to the completion of any registration or qualification of such shares under any federal or state law or issuance of 

 

  

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any ruling or regulation of any government body which the Company shall, in its sole discretion, determine to be necessary or advisable.

 

10.           Limited Liability.  The Company and any of its Subsidiaries or affiliates which is in existence or hereafter comes into existence shall not be liable to a Participant or other persons as to:

 

(a)           The Non-Issuance of Shares.  The non-issuance or sale of shares as to which the Company has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares hereunder; and

 

(b)           Tax Consequences.  Any tax consequence expected, but not realized, by any Participant or other person due to the issuance, exercise, settlement, cancellation or other transaction involving any Options granted hereunder.

 

11.           Nontransferability.  No Option shall be transferable by the Participant otherwise than by will or by the laws of descent and distribution and all Options shall be exercisable, during the Participant’s lifetime, only by the Participant, provided, however, and to the extent permitted by applicable law and regulation, Nonqualified Stock Options may be transferred for no value to any inter vivos or terminating trust, which shall agree in writing to be bound by the terms of this Agreement and the Plan, established for estate planning purposes for the sole and exclusive benefit of such owner of the Option, one (1) or more members of such owner’s family that are related to such owner by blood (which members shall include, without limitation, the spouse, adopted children, and stepchildren of such owner) and/or any other lineal descendants of such owner and in which such owner is a trustee thereof.

 

12.           Plan.

 

(a)           Terms and Conditions.  The Option is granted pursuant to the Plan, as in effect on the Date of Grant, and is subject to all the terms and conditions of the Plan, as the same may be amended from time to time (but subject to Section 13 hereof).  The interpretation and construction by the Committee of the Plan, this Agreement, the Option and such rules and regulations as may be adopted by the Committee for the purpose of administering the Plan shall be final and binding upon Participant.  Until the Option shall expire, terminate or be exercised in full, the Company shall, upon written request therefor, send a copy of the Plan, in its then-current form, to Participant or any other person or entity then entitled to exercise the Option.

 

(b)           Capitalized Terms.     Capitalized terms not otherwise defined herein shall have the meaning assigned to these terms in the Plan.

 

(c)           Conflict with Plan.     This Option is granted pursuant to the Plan, the provisions of which are incorporated into this Agreement by reference, and, in the event any conflict between this Agreement and the Plan exists, the terms of the Plan shall govern.

 

13.           Amendments and Termination.  The Board may, at any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Option (or provide substitute Options at the same or reduced exercise or purchase price or with no exercise or purchase price in a manner not inconsistent with the terms of the Plan, but such price, if any, must satisfy the requirements which would apply to the substitute or amended Option if it were then initially granted under this Plan) for any lawful purpose, but no such action shall adversely affect rights under any outstanding Option without the holder’s consent. Notwithstanding the immediately preceding sentence, but subject to any stockholder approval requirements imposed by applicable law, the Committee may amend or cancel this Agreement, to take effect retroactively or otherwise, without the consent of the Participant as deemed necessary or advisable for the purpose of conforming this Agreement to, or exempting it from, Sections 162(m), 409A and/or 422 of the 

 

  

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Code and/or any other present or future law relating to the Plan and/or this Agreement and to the administrative regulations and rulings promulgated thereunder.

 

14.           Stockholder Rights.  No person or entity shall be entitled to vote, receive dividends or be deemed for any purpose the holder of any Option Shares until the Option shall have been duly exercised to purchase such Option Shares in accordance with the provisions of this Agreement and the Plan.   With respect to the portion of any Option which has not been exercised and any payments in cash, Common Stock or other consideration not received by a Participant, a Participant shall have no rights greater than those of a general creditor of the Company unless the Committee shall otherwise expressly determine in connection with any Option or Options. In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver Common Stock or make payments with respect to Options hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing sentence.

 

15.           Employment or Contract Rights.  No provision of this Agreement or of the Option granted hereunder shall (a) confer upon Participant any right to continue in the employ of or contract with the Company or any of its Subsidiaries, (b) affect the right of the Company and any of its Subsidiaries to terminate the Employment or contract of Participant, with or without cause, or (c) confer upon Participant any right to participate in any employee welfare or benefit plan or other program of the Company or any of its Subsidiaries other than the Plan.  Participant hereby acknowledges and agrees that the Company and any of its Subsidiaries may terminate the employment or service of Participant at any time and for any reason, or for no reason, unless Participant and the Company or such Subsidiary are parties to a written agreement that expressly provides otherwise.

16.           General Provisions.

(a)           Delivery of Stock Certificates. Delivery of stock certificates to Participant under this Agreement shall be deemed effected for all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the Participant, at the Participant’s last known address on file with the Company.

(b)           Other Compensation Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases.

(c)           Performance-Based Compensation.  For purposes of Section 162(m)(4)(c) of the Code and Treasury Regulation Section 1.162-27(e)(2)(vi), the amount of compensation a Participant may receive under an Option is based solely on an increase in the value of the Common Stock after the date of the grant or award of an Option.

(d)           Entire Agreement.  This Agreement and the Plan constitute the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior understandings and agreements with respect to such subject matter.

 

(e)           Successors and Assigns.  The Company may assign any of its rights under this Agreement.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon the Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns.

 

  

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17.           Governing Law.  This Agreement and the Option granted hereunder shall be interpreted and construed in accordance with the laws of the State of Maryland except to the extent such law is preempted by applicable federal law.

 

18.           Acceptance.  Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  Participant has read and understands the terms and provisions thereof, and accepts this Option subject to all the terms and conditions of the Plan and this Agreement.  Participant acknowledges that there may be adverse tax consequences upon exercise of this Option or disposition of the Option Shares and that the Company has advised Participant to consult a tax advisor prior to such exercise or disposition.

 

IN WITNESS WHEREOF, the Company and Participant have duly executed this Agreement as of the Date of Grant.

 

	  	
CARROLLTON BANCORP

	  	  	  
	  	  	  
	  	
By:

	  	  
	  	  	
Name:

	  
	  	  	
Title:

	  
	  	  	  
	  	  	  
	  	
PARTICIPANT

	  
	  	  	  
	  	
 

	  
	  	  	  
	  	
 

	  
	  	
Printed Name

	  	
 

	  
	  	
Street Address

	  	
 

	  
	  	
City, State and Zip Code

	  	
 

	  
	  	
Social Security Number

 

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]