Document:

exv10w10w1

 

Exhibit 10.10.1

FIRST AMENDMENT

TO THE

OLD LINE BANK

SUPPLEMENTAL LIFE INSURANCE AGREEMENT

DATED JANUARY 3, 2006

FOR

JOSEPH BURNETT

               This First Amendment is adopted this 31st day of December, 2007, by and between Old
Line Bank, a state-chartered commercial bank located in Bowie, Maryland (the “Bank”), and Joseph
Burnett (the “Executive”).

               The Bank and the Executive executed the Supplemental Life Insurance Agreement on January 3,
2006 (the “Agreement”).

               The undersigned hereby amend the Agreement for the purpose of providing a split dollar life
insurance benefit if the Executive’s death occurs prior to the Executive’s Separation from Service.
Therefore, the following changes shall be made:

               Section 1.6 of the Agreement shall be deleted in its entirety.

               Section 1.14 of the Agreement shall be deleted in its entirety and replaced by the following:

	1.14	 	“Separation from Service” means the termination of the Executive’s employment with
the Bank for reasons other than death. Whether a Separation from Service takes place is
determined based on the facts and circumstances surrounding the termination of the Executive’s
employment and whether the Bank and the Executive intended for the Executive to provide
significant services for the Bank following such termination. A termination of employment
will not be considered a Separation from Service if:

	 	(a)	 	the Executive continues to provide services as an employee of the Bank at an
annual rate that is twenty percent (20%) or more of the services rendered, on average,
during the immediately preceding three full calendar years of employment (or, if
employed less than three years, such lesser period) and the annual remuneration for
such services is twenty percent (20%) or more of the average annual remuneration earned
during the final three full calendar years of employment (or, if less, such lesser
period), or
	 
	 	(b)	 	the Executive continues to provide services to the Bank in a capacity other
than as an employee of the Bank at an annual rate that is fifty percent (50%) or more
of the services rendered, on average, during the immediately preceding three full
calendar years of employment (or if employed less than three years, such lesser
period) and the annual remuneration for such services is fifty percent (50%) or
more of the average annual remuneration earned during the final three full

 

 

	 	 	 	calendar years of employment (or if less, such lesser period).

               Section 2.2 of the Agreement shall be deleted in its entirety and replaced by the following:

	2.2	 	Executive’s Interest. The Executive, or the Executive’s assignee, shall have the
right to designate the Beneficiary of an amount of death proceeds as specified in Section
2.2.1 or 2.2.2. The Executive shall also have the right to elect and change settlement
options with respect to the Executive’s Interest by providing written notice to the Bank and
the Insurer.

	 	2.2.1	 	Death Prior to Separation from Service. If the Executive dies prior
to Separation from Service, the Executive’s Beneficiary shall be entitled to a portion
of the death proceeds equal to thirty percent (30%) of the Net Death Proceeds.
	 
	 	2.2.2	 	Death After Separation from Service. If the Executive dies after
Separation from Service there shall be no benefit under this Agreement.

               Section 2.3 of the Agreement shall be deleted in its entirety and replaced by the following:

	2.3	 	Forfeiture of Benefit. The Executive will forfeit his or her benefit if: (i) the
Executive violates any of the provisions detailed in Article 5; or (ii) the Executive provides
written notice to the Bank declining further participation in the Agreement.

               Article 10 of the Agreement shall be deleted in its entirety and replaced by the following:

               Notwithstanding any other provision in this Agreement, the Bank may amend or terminate the
Agreement at any time, or may amend or terminate the Executive’s rights under the Agreement at any
time prior to the Executive’s Separation from Service, by providing written notice of such to the
Executive. Upon termination of the Executive’s rights under this Agreement, the Executive will be
eligible for any life insurance benefit offered to the general employees of the Bank

               IN WITNESS OF THE ABOVE, the Bank and the Executive hereby consent to this First Amendment.

	 	 	 	 	 	 	 
	Executive:	 	 	 	Old Line Bank
	 
	 	 	 	 	 	 
	 

	 	 	 	By	 	 
	 

	 	 	 	 	 	 
	Joseph Burnett
	 	 	 	 	 	 
	 

	 	 	 	Title	 	 
	 

	 	 	 	 	 	 

2exv10w14w1

 

			
	OLD LINE BANK 

Salary Continuation Agreement
	 	Exhibit 10.14.1

FIRST AMENDMENT

TO THE

OLD LINE BANK

SALARY CONTINUATION AGREEMENT

DATED JANUARY 3, 2006

FOR

CHRISTINE RUSH

               THIS FIRST AMENDMENT is adopted this 31st day of December 2007, effective as of
January 1, 2006, by and between OLD LINE BANK, a state-chartered commercial bank located in Bowie,
Maryland (the “Bank”), and CHRISTINE RUSH (the “Executive”).

               The Bank and the Executive executed the Salary Continuation Agreement on January 3, 2006
effective as of January 1, 2006 (the “Agreement”).

               The undersigned hereby amend the Agreement for the purpose of bringing the Agreement into
compliance with Section 409A of the Internal Revenue Code. Therefore, the following changes shall
be made:

               Section 2.4 of the Agreement shall be deleted in its entirety and replaced by the following:

	2.4	 	Distribution of Benefit. Upon a Change in Control followed within twenty-four (24)
months by the Executive’s Separation from Service, the Bank shall distribute to the Executive
the benefit described in this Section 2.4 in lieu of any other benefit under this Article.

               Section 2.4.3 of the Agreement shall be deleted in its entirety and replaced by the following:

	2.4.3	 	Excess Parachute Payment Gross-up. If any benefit payable under this Agreement
would create an excise tax under the excess parachute rules of Section 280G of the Code, the
Bank shall pay to the Executive an additional amount (the “Gross-up”) equal to:

the Executive’s excise penalty tax amount

divided by the sum of

(one minus the sum of the penalty tax rate plus the Executive’s marginal income tax rate)

The Gross-up shall be paid in the same manner and at the same time as the benefit
which creates the gross-up.

               Section 2.7 of the Agreement shall be deleted in its entirety and replaced by the

1

 

			
	OLD LINE BANK 

Salary Continuation Agreement
	 	Exhibit 10.14.1

following:

	2.7	 	Change in Form or Timing of Distributions. All changes in the form or timing of
distributions hereunder must comply with the following requirements. The changes:

	 	(a)	 	may not accelerate the time or schedule of any distribution,
except as provided in Code Section 409A and the regulations thereunder;
	 
	 	(b)	 	must, for benefits distributable under Sections 2.2 and 2.3, be
made at least twelve (12) months prior to the first scheduled distribution;
	 
	 	(c)	 	must, for benefits distributable under Sections 2.1, 2.2, 2.3
and 2.4, delay the commencement of distributions for a minimum of five (5)
years from the date the first distribution was originally scheduled to be made;
and
	 
	 	(d)	 	must take effect not less than twelve (12) months after the
election is made.

               Section 8.3 of the Agreement shall be deleted in its entirety and replaced by the following:

	8.3	 	Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in
Section 8.2, if this Agreement terminates in the following circumstances:

	 	(a)	 	Within thirty (30) days before or twelve (12) months after a Change in Control,
provided that all distributions are made no later than twelve (12) months following
such termination of the Agreement and further provided that all the Bank’s arrangements
which are substantially similar to the Agreement are terminated so the Executive and
all participants in the similar arrangements are required to receive all amounts of
compensation deferred under the terminated arrangements within twelve (12) months of
such terminations;
	 
	 	(b)	 	Upon the Bank’s dissolution or with the approval of a bankruptcy court,
provided that the amounts deferred under the Agreement are included in the Executive’s
gross income in the latest of (i) the calendar year in which the Agreement terminates;
(ii) the calendar year in which the amount is no longer subject to a substantial risk
of forfeiture; or (iii) the first calendar year in which the distribution is
administratively practical; or
	 
	 	(c)	 	Upon the Bank’s termination of this and all other arrangements that would be
aggregated with this Agreement pursuant to Treasury Regulations Section 1.409A-1(c) if
the Executive participated in such arrangements (“Similar Arrangements”), provided that
(i) the termination and liquidation does not occur proximate to a downturn in the
financial health of the Bank, (ii) all termination distributions are made no earlier
than twelve (12) months and no later than twenty-four (24) months following such
termination, and (iii) the Bank does not adopt any new arrangement that would be a
Similar Arrangement for a minimum of three (3) years following the date the Bank takes
all necessary action to irrevocably terminate and liquidate the Agreement;

2

 

			
	OLD LINE BANK 

Salary Continuation Agreement
	 	Exhibit 10.14.1

	 	 	 	the Bank may distribute the Deferral Account balance, determined as of the date of the
termination of the Agreement, to the Executive in a lump sum subject to the above terms.

               Section 9.10 of the Agreement shall be deleted in its entirety and replaced by the following:

	9.10	 	Alternative Action. In the event it shall become impossible for the Bank or the Plan
Administrator to perform any act required by this Agreement due to regulatory or other
constraints, the Bank or Plan Administrator may perform such alternative act as most nearly
carries out the intent and purpose of this Agreement and is in the best interests of the Bank,
provided that such alternative acts do not violate Code Section 409A of the Code.

               IN WITNESS OF THE ABOVE, the Bank and the Executive hereby consent to this First Amendment.

	 	 	 	 	 	 	 
	EXECUTIVE:	 	 	 	OLD LINE BANK
	 
	 	 	 	 	 	 
	 

	 	 	 	By	 	 
	 

	 	 	 	 	 	 
	CHRISTINE RUSH

	 	 	 	Title	 	 
	 

	 	 	 	 	 	 

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