Document:

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                                                                   EXHIBIT 10.17

                             EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of March 23, 2001, between COLUMBIA BANCORP,
a Maryland corporation (the "Corporation"), THE COLUMBIA BANK, a Maryland trust
company and a principal subsidiary of the Corporation (the "Bank"), and Adelbert
D. Karfonta (the "Executive").  The Severance Agreement dated as of March 25,
1998, between the Corporation, the Bank and the Executive, is hereby terminated
effective with the execution of this Employment Agreement.

                              W I T N E S S E T H:
                              - - - - - - - - - -

     The Executive will serve as the Executive Vice President of the Bank and
possesses an intimate knowledge of the business and affairs of the Corporation
and the Bank (each, a "Company" and collectively, the "Companies").  The
Companies recognize the Executive's contribution to the organization, growth and
success of the Companies and desire to enter into an employment agreement with
the Executive in order to assure to the Companies the benefits of the
Executive's expertise and knowledge.  The Executive, in turn, desires to enter
into full-time employment with the Companies on the terms provided herein.

     Accordingly, in consideration of the mutual covenants and representations
contained herein and the mutual benefits derived herefrom, the parties hereto
agree as follows:

       1.      Full-Time Employment of Executive.
               ----------------------------------

       1.1.    Duties and Status.
               -----------------

               (a)  The Companies hereby engage the Executive as a full-time
       executive employee for the period (the "Employment Period") specified in
       paragraph 4.1, and the Executive accepts such employment, on the terms
       and conditions set forth in this Agreement.  During the Employment
       Period, the Executive shall exercise authority and perform executive
       duties as an Executive Vice President of the Bank.

               (b)  During the Employment Period, the Executive shall (i) not
       engage in consulting work or any trade or business for his own account or
       for or on behalf of any other person, firm or corporation which competes,
       conflicts or materially interferes with the performance of his duties
       hereunder in any way and (ii) accept such additional office or offices to
       which he may be elected by the Board of Directors of either of the
       Companies, provided that the performance of the duties of such office or
       offices shall be consistent with the scope of the duties provided for in
       paragraph 1.1(a).

               (c)  The Executive shall be required to perform the services and
       duties provided for in paragraph 1.1(a) only at the principal office of
       either of the Companies in Columbia, Maryland, or at such other locations
       acceptable to the Executive.  The Executive shall be entitled to
       vacation, leave of absence, and leave for illness or temporary disability
       in accordance with the policies to be established for the Companies,
       which shall be similar to those commonly offered at comparable banking
       institutions, and any leave on account of illness or temporary disability
       shall not constitute a breach by the Executive of his agreements
       hereunder.

       1.2.    Compensation and General Benefits.  As compensation for his
               ---------------------------------
     services under this Agreement, the Executive shall be compensated as
     follows:

               (a)  The Companies shall pay the Executive an annual salary which
       is not less than the greater of (i) a base salary of $115,000 per annum,
       or (ii) any subsequently established higher annual base salary. Such
       salary shall be payable in periodic equal installments which are no less
       frequent than monthly. Such salary shall be subject to normal periodic
       review at least annually for increases based on the salary policies of
       the Companies and contributions to the enterprises.

               (b)  The Executive shall be entitled to participate in such
       pension, profit sharing, stock incentive, stock option, stock purchase,
       incentive, group and individual disability, group and individual life,
       survivor
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       income, sickness, accident, dental, medical or health insurance and other
       plans of the Companies which are in effect immediately prior to the
       effective date of this Agreement or in any other or additional benefit
       programs, plans or arrangements of the Companies which may be established
       by the Companies, as and to the extent any such benefit programs, plans
       or arrangements are or may from time to time be in effect, as determined
       by the Companies and terms hereof.  The Companies shall neither (i)
       terminate or amend any benefit program, plan or arrangement of the
       Companies pursuant to which the Executive, or his dependents,
       beneficiaries or estate, is or shall be entitled to benefits, nor (ii)
       terminate or amend any formula or method set forth in any benefit
       program, plan or arrangement of the Companies pursuant to which the
       amount and type of benefits to which the Executive, or his dependents,
       beneficiaries or estate, is or shall be entitled thereunder are
       determined, if such termination or amendment would in any way modify or
       deprive the Executive, or his dependents, beneficiaries or estate, of any
       benefits to which he, or his dependents, beneficiaries or estate, is or
       shall be entitled under any benefit program, plan or arrangement of the
       Companies, unless (a) the Executive expressly consents in writing to such
       termination or amendment or (B) the amendment is required by law or
       regulation and the Companies shall, to the extent necessary, provide, pay
       or provide for payment of amounts equal to any benefits lost or reduced
       by such amendment.  Throughout the period of his employment hereunder,
       the Executive shall be entitled to the receipt of any personal benefits
       from the Companies at the Companies' expense including, but not limited
       to, any other perquisites provided by the Companies to executives with
       comparable authority or duties.  The term "benefit programs, plans, or
       arrangements of the Companies" as used in this Agreement refers to the
       matters in this paragraph 1.2(b).

       2.   Competition; Confidential Information.  The Executive and the
            -------------------------------------
Companies recognize that due to the nature of his association with the Companies
and of his engagements hereunder, and the relationship of the Executive to the
Companies, both in the past as an organizer and in the future hereunder, the
Executive has had access to and has acquired, will have access to and will
acquire, and has assisted in and may assist in developing, confidential and
proprietary information relating to the business and operations of the Companies
and their affiliates, including, without limiting the generality of the
foregoing, information with respect to its present and prospective systems,
customers, agents, accounts, deposits, loans, and sales and marketing methods.
The Executive acknowledges that such information has been and will continue to
be of central importance to the business of the Companies and their affiliates
and that disclosure of it to or its use by others could cause substantial loss
to the Companies.  The Executive and the Companies also recognize that an
important part of the Executive's duties will be to develop good will for the
Companies and their affiliates through his personal contact with customers,
agents and others having business relationships with the Companies and their
affiliates, and that there is a danger that this good will, a proprietary asset
of the Companies and their affiliates, may follow the Executive if and when his
relationship with the Companies is terminated.  The Executive accordingly agrees
as follows:

       2.1. Non-Competition.
            ---------------

                 (a)  During the Non-Competition Period, the Executive will not,
       directly or indirectly, either individually or as owner, partner, agent,
       employee, consultant or otherwise, except for the account of and on
       behalf of the Corporation or its affiliates ("affiliates" is defined
       solely for purposes of this paragraph 2 as "Columbia Bancorp and its
       subsidiaries"), engage in any activity competitive with the business of
       the Companies or their affiliates, nor during the Non-Competition Period
       will he, in competition with the Companies or their affiliates, solicit
       or otherwise attempt to establish for himself or any other person, firm
       or entity, any business relationships with any person, firm or
       corporation which was, at any time during the Non-Competition Period, (i)
       a state or national bank, (ii) a bank holding company, or (iii) a direct
       or indirect subsidiary of a state or national bank or a bank holding
       company, in each case which has its principal operations located in
       Howard County, Maryland or within a 15 mile radius of the principal
       office of the Corporation in Columbia, Maryland, excepting both the City
       of Baltimore and Washington, D.C.

               (b)  The Non-Competition Period shall commence on the date of
       this Agreement and shall terminate on:

                       (i)   The date of the termination of the Employment
            Period; or

                       (ii) If the Executive resigns in circumstances other than
            those described in paragraph 4.3(a)(ii), two years after the date of
            such resignation; provided, however, that if the Executive resigns
            during a Change in Control Period in circumstances other than those
            described in paragraph 4.3(a)(ii), the Non-Competition Period shall
            terminate on the date of such resignation; or

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                     (iii) If the Executive is terminated for cause (as defined
            in paragraph 4.3(b)), two years after the date of such termination
            for cause.

            (c)  Nothing in this paragraph 2 shall be construed to prevent the
       Executive from owning, as an investment, not more than 1% of a class of
       equity securities issued by any issuer and publicly traded and registered
       under Section 12 of the Securities Exchange Act of 1934.

            2.2. Trade Secrets.  The Executive will keep confidential any trade
                 -------------
       secrets or confidential or proprietary information of the Corporation and
       its affiliates which are now known to him or which hereafter may become
       known to him as a result of his employment or association with the
       Companies and shall not at any time directly or indirectly disclose any
       such information to any person, firm or corporation, or use the same in
       any way other than in connection with the business of the Companies or
       their affiliates during and at all times after the expiration of the
       Employment Period.  For purposes of this Agreement, "trade secrets or
       confidential or proprietary information" means information unique to the
       Companies or any of their affiliates which has a significant business
       purpose and is not known or generally available from sources outside the
       Companies or any of their affiliates or typical of industry practice.

       3.   Companies' Remedies for Breach.  It is recognized that damages in
            ------------------------------
the event of breach of paragraph 2 by the Executive would be difficult, if not
impossible, to ascertain, and it is therefore agreed that the Companies, in
addition to and without limiting any other remedy or right they may have, shall
have the right to an injunction or other equitable relief in any federal or
state court of competent jurisdiction in the State of Maryland, enjoining any
such breach, and the Executive hereby waives any and all defenses he may have on
the ground of lack of jurisdiction or competence of the court to grant such an
injunction or other equitable relief.  The existence of this right shall not
preclude any other rights and remedies at law or in equity which the Companies
may have.  In the event the Companies seek an injunction against the Executive
and lose, then the Companies shall be liable for damages and for any legal fees
incurred by the Executive in defending the action.

       4.   Employment Period.
            -----------------

            4.1.  Duration.  The Employment Period shall commence on the date of
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       this Agreement (the "Effective Date") and shall continue until the
       earlier of (i) the close of business on the date which is two years after
       the date on which, during the Employment Period, either of the Companies
       gives written notice of termination to the Executive or the Executive
       gives written notice of termination to either of the Companies, as
       applicable, but not later than the close of business on July 2, 2026,
       (ii) termination of this Agreement (as defined in paragraph 4.3(a)),
       (iii) death of the Executive, (iv) total disability of the Executive (as
       defined in paragraph 4.3(c)), (v) resignation of the Executive in
       circumstances other than those described under paragraph 4.3(a)(ii), or
       (vi) discharge of the Executive for cause (as defined in paragraph
       4.3(b)).

       4.2. Payments after Employment Period.
            --------------------------------

               (a) In the event of a termination of this Agreement under
          paragraph 4.1(ii), the Companies shall pay to the Executive and
          provide him with the following:

                     (i)   During the remainder of the Employment Period
            (determined without regard to paragraph 4.1(ii)), but not less than
            one year following the occurrence of any event of termination under
            paragraph 4.1(ii), the Companies shall continue to pay the Executive
            his salary at the rate and as required by paragraph 1.2(a) and in
            effect immediately prior to the date of termination plus (in any
            year after the first year) an annual bonus payable at the time or
            times customary during the Employment Period, which bonus shall be
            equivalent to a certain percentage of his salary paid to him by the
            Companies for each such year during the remainder of the Employment
            Period (determined without regard to paragraph 4.1(ii) but with
            regard to paragraphs 4.1(iii) and (iv)), such percentage to be equal
            to the average of the percentage of his salary which his annual
            bonus represented during each of the three years immediately
            preceding termination of this Agreement.

                     (ii)  During the remainder of the Employment Period
            (determined without regard to paragraph 4.1(ii) but with regard to
            paragraphs 4.1(iii) and (iv)), the Executive shall continue to be
            treated as an executive (at the level provided for in paragraph
            1.1(a)) under all of the benefit programs,

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            plans or arrangements of the Companies described in paragraph
            1.2(b). In addition, the Executive shall continue to be entitled to
            all benefits and service credits for benefits under all of the
            benefit programs, plans or arrangements of the Companies described
            in paragraph 1.2(d) as if he were still employed during such period
            under this Agreement.

                     (iii) If, despite the provisions of subparagraph (ii)
            above, benefits, service credits, or the right to accrue further
            benefits or service credits under any benefit programs, plans or
            arrangements of the Companies described in paragraph 1.2(b) shall
            not be payable or provided to the Executive, or his dependents,
            beneficiaries and estate, because he is not longer an employee of
            one or both of the Companies, the Companies shall, to the extent
            necessary, provide, pay or provide for payment of equivalent
            benefits, service credits and rights to accrue further benefits or
            service credits to or for the benefit of the Executive, his
            dependents, beneficiaries and estate.

                 (b)  In the event of a termination of this Agreement under
          paragraph 4.1(ii), the Executive in his discretion may elect, within
          60 days after such termination, to be paid a lump sum or other agreed
          severance allowance in lieu of termination payments provided for in
          paragraph 4.2(a) in an amount of cash which shall be negotiated and
          agreed upon in writing between the Executive and the Companies. Among
          the forms which the severance allowance may take, if negotiated and
          agreed upon in writing between the Executive and the Companies, shall
          be payment of equal installments to the Executive the present value of
          which, computed at the time required by Section 4999 of the Internal
          Revenue Code of 1986 (the "Code"), is below the threshold necessary to
          trigger applicability of Section 4999 of the Code which imposes a
          nondeductible excise tax on any recipient of an "excess parachute
          payment" equal to 20% of the amount of such payment. In the event that
          the Executive makes an election pursuant to this paragraph 4.2(b), the
          severance allowance shall represent the present fair market value of
          the amount of salary, bonuses and all benefit programs, plans and
          arrangements of the Companies which the Executive would be entitled to
          during the Employment Period (determined without regard to paragraph
          4.1(iii)) under this Agreement. Upon the date that the Companies and
          the Executive enter into a written agreement providing for a severance
          payment, the Companies' obligations to the Executive pursuant to
          paragraph 4.2(a) shall terminate. In the event that the Executive and
          the Companies are unable to negotiate a mutually satisfactory
          agreement concerning the amount of a severance payment pursuant to
          this paragraph 4.2(b), then the Executive shall receive termination
          payments and benefits as provided in paragraphs 4.2(a). Payments made
          under this paragraph 4.2(b) shall continue notwithstanding the
          subsequent death or disability of the Executive.

                 (c)  In the event of a termination of this Agreement under
          paragraph 4.1(iii), (i) the Companies shall pay the Executive's estate
          an amount equal to six months' salary at the rate and as required by
          paragraph 1.2(a) and in effect immediately prior to the date of death,
          (ii) the Companies shall continue benefits under the Companies'
          sickness, accident or health insurance for a period of six months
          following death of the Executive for those dependents and
          beneficiaries of the Executive who were covered by such programs,
          plans or arrangements at the date of the Executive's death, and (iii)
          the Executive's dependents, beneficiaries and estate, as the case may
          be, will receive such survivor and other benefits as they may be
          entitled under the terms of the benefit programs, plans, and
          arrangements described in paragraph 1.2(b) which provide benefits upon
          death of the Executive.

                 (d)  In the event of a termination of this Agreement under
          paragraph 4.1(iv), (i) the Companies shall pay the Executive an amount
          equal to six months' salary at the rate and as required by paragraph
          1.2(a) and in effect immediately prior to the date of total
          disability, (ii) the Companies shall continue benefits under the
          Companies' sickness, accident and health insurance for two years
          following the date of total disability for the Executive and his
          dependents and beneficiaries who are covered by such programs, plans
          and arrangements during the two-year period; and (iii) the Executive,
          and his dependents, beneficiaries and estate, as the case may be, will
          receive such benefits as they may be entitled under the terms of the
          benefit programs, plans, and arrangements described in paragraph
          1.2(b) which provided benefits upon total disability of the Executive.

                 (e)  In the event of a termination of this Agreement under
          paragraph 4.1(v) or (vi), the Executive, and his dependents,
          beneficiaries and estate, as the case may be, will receive such
          benefits as they may be entitled under the terms of the benefit
          programs, plans, and arrangements of the Companies described in
          paragraph 1.2(b) which provide benefits upon retirement, resignation
          or discharge for cause, as the case may be.

                 (f)  The Executive shall not be required to mitigate the amount
          of any payment provided for in this paragraph 4.2 by seeking
          employment or otherwise, nor shall the amount of any payment provided
          for in this

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          paragraph 4.2 be reduced by any compensation or remuneration earned by
          the Executive as the result of employment by another employer, or
          self-employment, or as a partner, after the date of termination or
          otherwise. Any payment provided for in this paragraph 4.2 shall be
          deemed "liquidated damages" rather than a "penalty."

       4.3.  Definitions.  The following words shall have the specified meanings
             ------------
       when used in the paragraphs specified:

                 (a)  In paragraphs 4.1(ii), 4.2(a) and (b) and 5, the term
          "termination" means termination (i) by either of the Companies of the
          employment of the Executive with either of the Companies for any
          reason other than death or total disability of the Executive or other
          than for cause, or (ii) by resignation of the Executive due to a
          significant change in the nature or scope of his authorities or duties
          from those contemplated in paragraph 1.1, a reduction in total
          compensation from that provided in paragraph 1.2, or the breach by
          either of the Companies of any other provision of this Agreement.

                 (b)  In paragraphs 4.1(vi) and 4.3(a)(i), the term "cause"
          means (i) substantiated fraud, or substantiated misappropriation
          resulting in material damage to the property or business of either of
          the Companies; conviction for commission of a felony; (ii) continuance
          of either willful and repeated failure or grossly negligent and
          repeated failure by the Executive to perform his duties in compliance
          with this Agreement after written notice to the Executive by the Board
          of Directors specifying such failure, provided that such "cause" shall
          have been found by a majority vote of the Board of Directors of each
          of the Companies (who are not serving as a designee of a person having
          an interest in excess of 25% of the outstanding stock of the
          Corporation) after at least 10 days' written notice to the Executive
          specifying the cause proposed to be claimed and after an opportunity
          for the Executive to be heard at meetings of such Board of Directors;
          or (iii) a continued violation of paragraph 2 after written notice to
          the Executive by the Board of Directors specifying such violation and
          providing the Executive the opportunity to cease such violation within
          20 days from the date of receipt by the Executive of such notice.

                 (c)  In paragraphs 1.1(c), 4.1(iv), 4.2(d) and 4.3(a)(i), the
          term "total disability" means total disability as defined in the
          Companies' group and individual disability plans. If there is no such
          plan, then "total disability" means total disability as defined in the
          Executive's individual disability policy, and if there is no such
          policy, as defined in the group disability plan for the law firm of
          Piper Marbury Rudnick & Wolfe, L.L.P., 6225 Smith Avenue, Baltimore,
          Maryland 21209.

       5.      Payments for Termination or Resignation after a Change in
               ---------------------------------------------------------
       Control.
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       5.1. Definitions.
            -----------

                  (a)   A "Change in Control," as used in this Agreement, shall
       be deemed to have occurred when:

                  (i)   Any person (as such term is used in Sections 13(d) and
       14(d) of the Securities Exchange Act of 1934, as amended, and the
       regulations promulgated thereunder) is or becomes the beneficial owner,
       directly or indirectly, of 25% or more of the voting equity stock of the
       Corporation, or any person (as such term is used in Sections 13(d) and
       14(d) of the Securities Exchange Act of 1934, as amended, and the
       regulations promulgated thereunder) other than the Corporation is or
       becomes the beneficial owner, directly or indirectly, of 25% or more of
       the Common Stock of the Bank; or

                  (ii)  Any person (as such term is used in Sections 13(d) and
       14(d) of the Securities Exchange Act of 1934, as amended, and the
       regulations promulgated thereunder) gains control of the election of a
       majority of the Board of Directors of the Corporation, or any person (as
       such term is used in Sections 13(d) and 14(d) of the Securities Exchange
       Act of 1934, as amended, and the regulations promulgated thereunder)
       other than the Corporation gains control of the election of a majority of
       the Board of Directors of the Bank; or

                  (iii) Any person (as such term is used in Sections 13(d) and
       14(d) of the Securities Exchange Act of 1934, as amended, and the
       regulations promulgated thereunder) gains control of the management or
       policies of either of the Companies; or

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                 (iv)   either of the Companies consolidates with, or merges
       with or into, another entity (including a corporation, bank, partnership,
       trust, association, joint venture, pool, syndicate, sole proprietorship,
       unincorporated organization or any other form of entity not specifically
       listed herein) or sells, assigns, conveys, transfers, leases or otherwise
       disposes of all or substantially all of its assets, or another such
       entity consolidates with, or merges with or into, such Company, in any
       such event pursuant to a transaction in which the issued and outstanding
       shares of the voting equity stock of such Company are converted into or
       exchanged for cash, securities or other property; or

                 (v)    during any consecutive two-year period, individuals who
       at the beginning of such period constituted the Board of Directors of
       either Company (together with any directors who are members of the Board
       of Directors on the date hereof and any new directors whose election by
       such Board of Directors or whose nomination for election by the
       stockholders of such Company was approved by a vote of 66-2/3% of the
       directors then still in office who were either directors at the beginning
       of such period of whose election or nomination for election was
       previously so approved) cease for any reason to constitute a majority of
       the Board of Directors of such Company then in office.

                 (b)    A "Change in Control Period" shall mean the period
       commencing 90 days before a Change in Control and ending 365 days after
       such Change in Control.

       5.2. Amount of Payments.  Except as provided in paragraph 5.2(e), and in
            ------------------
     lieu of amounts payable under paragraph 4, the Companies will pay the
     Executive the following amounts in the following circumstances:

                 (a)   (i)  If the Executive is terminated by either of the
       Companies in the circumstances described under paragraph 4.3(a)(i), or if
       the Executive resigns during a Change in Control Period in the
       circumstances described under paragraph 4.3(a)(ii), or if during a Change
       in Control Period the Executive resigns in circumstances other than those
       described under paragraph 4.3(a)(ii) without having been offered an
       employment agreement the terms of which are comparable to those of this
       Agreement, the Companies will pay, or cause to be paid, to the Executive:
       (a) if the Executive's termination or resignation occurs before the
       Executive has attained the age of 63 years, an amount equal to two times
       the sum of (i) the Executive's annual base salary immediately before the
       Change in Control and (ii) the average of the bonuses paid to the
       Executive over the past three years (including years in which no bonus
       was awarded); or (b) if the Executive's termination or resignation occurs
       on or after the Executive has attained the age of 63 years, an amount
       equal to the amount set forth in paragraph 5.2(a)(i)(a) multiplied by a
       fraction, the numerator of which shall be 730 minus the number of days
       which have passed since the Executive's 63rd birthday, and the
       denominator of which shall be 730.

                     (ii)  Such payment shall be made in one lump sum within 15
       business days after the Executive's termination or resignation.

                 (b) (i)   If the Executive resigns during a Change in Control
       Period in circumstances other than those described under paragraph
       4.3(a)(ii) after having been offered an employment agreement the terms of
       which are comparable to those of this Agreement, the Companies will pay,
       or cause to be paid, to the Executive:  (a) if the Executive's
       resignation occurs before the Executive has attained the age of 64 years,
       an amount equal to the sum of (i) the Executive's annual base salary
       immediately before the Change in Control and (ii) the average of the
       bonuses paid to the Executive over the past three years (including years
       in which no bonus was awarded); or (b) if the Executive's resignation
       occurs on or after the Executive has attained the age of 64 years, an
       amount equal to the amount set forth in paragraph 5.2(b)(i)(a) multiplied
       by a fraction, the numerator of which shall be 365 minus the number of
       days which have passed since the Executive's 64th birthday, and the
       denominator of which shall be 365.

                     (ii)  Such payment shall be made in one lump sum within 15
       business days after the Executive's resignation.

                 (c) Except as provided in paragraph 5.2(e), if the Executive
       is terminated by the Companies or resigns as described in paragraph
       5.2(a), or resigns as described in paragraph 5.2(b), the Executive shall
       continue to receive all health, life, and disability insurance benefits
       available to him pursuant to paragraph 1.2(b) of this Agreement
       immediately before such termination or resignation. The Executive shall
       continue to receive such benefits until the earliest of (a) such time as
       the Executive shall have been receiving substantially similar insurance
       benefits for six months under subsequent employment, (b) 24 months after
       the date of a termination or

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       resignation described in paragraph 5.2(a) or 12 months after the date of
       a resignation described in paragraph 5.2(b), or (c) such date as the
       Executive shall have attained the age of 65 years.

                 (d)  All options granted to the Executive under the
       Corporation's stock option award arrangements providing for the granting
       of options to acquire common stock to founders, directors and key
       employees shall immediately become fully vested in the event of a Change
       in Control.

                 (e)  The Executive is to receive no payments under paragraph
       5.2(a) or (b) and no benefits under paragraph 5.2(c) if the Executive is
       terminated during a Change in Control Period after having already
       attained the age of 65 years, or if the Executive is terminated by either
       of the Companies during a Change in Control Period upon the death or
       total disability of the Executive or for cause.  In an instance of death
       or total disability of the Executive, however, the Executive and his
       dependents, beneficiaries and estate shall receive any benefits payable
       to them under paragraphs 4.2 (c) and 4.2 (d).

                 (f)  Notwithstanding the foregoing, in the event that any of
       the amounts payable to the Executive under paragraph 5.2 would, if made,
       cause the Executive to have tax under Section 4999 of the Code, the
       Executive may elect, at his discretion, to reduce the amount payable to
       him under paragraph 5.2(a) or (b) by an amount such that the aggregate
       after-tax amounts the Executive will receive under paragraph 5.2 will be
       equal to the aggregate after-tax amounts the Executive would receive
       without the reduction he elected (i.e., the aggregate amounts after the
       application of the tax under Section 4999 of the Code and other taxes)."

          6.   Legal Costs.  If (i) either of the Companies shall fail to pay or
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provide for payment of any amounts required to be paid or provided for hereunder
at any time, (ii) the Executive desires to consult with or retain counsel as to
any possible breach by the Companies of this Agreement or as to any of his
rights under this Agreement, or (iii) the Executive desires to retain counsel to
review or negotiate the terms of this Agreement prior to the effective date of
this Agreement, the Executive shall be entitled to consult with counsel, and the
Companies agree to pay the reasonable fees and expenses of independent counsel
for the Executive in reviewing or negotiating this Agreement, advising him or in
bringing any proceedings, or in defending any proceedings, involving the
Executive's rights under this Agreement, such right to reimbursement to be
immediate upon the presentment by Executive of written billings for such
reasonable fees and expenses. The Executive shall be entitled to receive
interest (at the prime rate of interest established from time to time at
Allfirst Bank) on any payments of such expenses, or any other payments under
this Agreement, that are overdue.

          7.   Notices. Any notice, requests, demands and other communications
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provided for by this Agreement shall be sufficient if in writing and if sent by
registered or certified mail/return receipt to the Executive at the last address
he has filed in writing with either of the Companies or, in the case of either
of the Companies, at its principal executive offices.

          8.   Binding Agreement.  This Agreement shall be effective as of the
               -----------------
date hereof and shall be binding upon and inure to the benefit of the Executive,
his executors, administrators and personal representatives. The rights and
obligations of the Corporation and of the Bank under this Agreement shall inure
to the benefit of and shall be binding upon the Companies, and shall be
transferred to and be binding upon any successor of either of the Companies
including, but not limited to, any successor of either of the Companies pursuant
to a merger, conversion, consolidation, or transfer of assets; provided, that
this Agreement may not be assigned by either of the Companies without the
consent of the Executive, and in the case of a successor by transfer of all or
substantially all of the assets of either of the Companies, or any other
successor in which either of the Companies does not cease to exist by operation
of the transaction in question as a matter of law, neither of the Companies
shall be relieved of its obligations hereunder; provided further, that in the
case of dissolution and winding up of the business of either of the Companies,
this Agreement and the obligations hereunder shall be binding upon the trustee
of either of the Companies' assets. It is recognized that, as parent and
subsidiary, the Companies are closely related and that all provisions for
compensation and benefits hereunder refer to compensation and benefits from the
Bank and the Corporation in the aggregate. The Bank and the Corporation shall be
free, without violating this Agreement, to provide salary and other benefits
from either of them in their full discretion, provided that in the aggregate
such salary and benefits comply with this Agreement; provided, however, that all
stock options and provisions for compensation measured by the performance of
stock shall relate to the Corporation's capital stock. The Companies shall be
jointly and severally liable to the Executive for all of the obligations of
either of them under this Agreement and any violation by either the Bank or the
Corporation of any of its obligations hereunder shall be deemed to be a
violation by the other of them. Any legal finding that either the Bank or the
Corporation is not legally required to fulfill any of its obligations under this
Agreement shall not be deemed to relieve the other of them from fulfilling such
obligations.

                                       7
<PAGE>

          9.   Entire Agreement.  This Agreement constitutes the entire
               ----------------
understanding of the Executive and the Companies with respect to the subject
matter hereof and supersedes any and all prior understandings, written or oral,
including any prior employment agreements between the Companies and the
Executive.  This Agreement may not be changed, modified, or discharged orally,
but only by an instrument in writing signed by the parties.  This Agreement
shall be governed by the laws of the State of Maryland and the invalidity or
unenforceability of any provisions hereof shall in no way affect the validity or
enforceability of any other provision.

          IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement on March 23, 2001.

ATTEST:                             COLUMBIA BANCORP

                                              /s/
_________________________           ---------------------------------------
                                    John M. Bond, Jr.
                                    President and Chief Executive Officer

ATTEST:                             THE COLUMBIA BANK

                                             /s/
_________________________           ----------------------------------------
                                    John M. Bond, Jr.
                                    President and Chief Executive Officer
WITNESS:

                                             /s/
_________________________           ----------------------------------------
                                    Adelbert D. Karfonta

                                       8<PAGE>

                                                                   Exhibit 10.11
================================================================================

                               STONERIDGE, INC.
                                as the Borrower

                           THE LENDERS NAMED THEREIN
                                  as Lenders

                           DLJ CAPITAL FUNDING, INC.
                             as Syndication Agent

                              NATIONAL CITY BANK
                    as a Lender, a Letter of Credit Issuer,
               the Administrative Agent and the Collateral Agent

                        PNC BANK, NATIONAL ASSOCIATION
                            as Documentation  Agent

                             _____________________

                                AMENDMENT NO. 4
                                  dated as of
                               January 26, 2001
                                      to
                               CREDIT AGREEMENT
                                  dated as of
                               December 30, 1998

                             _____________________

================================================================================
<PAGE>

                      AMENDMENT NO. 4 TO CREDIT AGREEMENT

          THIS AMENDMENT NO. 4 TO CREDIT AGREEMENT, dated as of January 26, 2001
("this Amendment"), among the following:

               (i)    STONERIDGE, INC., an Ohio corporation (herein, together
          with its successors and assigns, the "Borrower");

               (ii)   the Lenders party to the Credit Agreement, as hereinafter
          defined;

               (iii)  DLJ CAPITAL FUNDING, INC., a Delaware corporation, as
          Syndication Agent;

               (iv)   NATIONAL CITY BANK, a national banking association, as a
          Lender, the Letter of Credit Issuer, the Administrative Agent and the
          Collateral Agent under the Credit Agreement; and

               (v)    PNC BANK, NATIONAL ASSOCIATION, a national banking
          association, as the Documentation Agent:

          PRELIMINARY STATEMENTS:

          (1)  The Borrower, the Lenders named therein, and the Agents entered
into the Credit Agreement, dated as of December 30, 1998, as amended by
Amendment No. 1 thereto, dated as of January 28, 1999, Amendment No. 2 thereto,
dated as of September 7, 1999, and Amendment No. 3 thereto, dated as of May 25,
2000 (as so amended and as the same may from time to time be further amended,
restated or otherwise modified, the "Credit Agreement"; with the terms defined
therein being used herein as so defined).

          (2)  The parties hereto desire to modify certain terms and provisions
of the Credit Agreement, all as more fully set forth below.

          NOW, THEREFORE, the parties hereby agree as follows:

          SECTION 1.  AMENDMENTS, ETC.

          1.1.  Amended Definitions.  Section 1.1 of the Credit Agreement is
hereby amended to delete the definitions of "Borrowing Base Termination Date"
and "Fixed Charge Coverage Ratio" therefrom and to insert in place thereof the
following:

               "Borrowing Base Termination Date" shall mean, if at such time no
          Default under section 10.1(a) or Event of Default shall have occurred
          and be continuing, (i) September 30, 2002, or (ii) such earlier date,
          if any, as of which the Borrower shall have delivered to the
          Administrative Agent and the Lenders its written undertaking to comply
          with section 9.8 of this Agreement as if such section 9.8 had been
          amended so as not to permit the Borrower at any time to have a ratio
          of its Consolidated Total Debt to Consolidated EBITDA for its Testing
          Period most recently ended in excess of 2.50 to 1.00 (and effective
          upon such delivery such section 9.8 of this Agreement shall be deemed
          to have been so amended). The Administrative Agent shall notify the
          Borrower and the Lenders of the occurrence of the Borrowing Base
          Termination Date, specifying the same.

               "Fixed Charge Coverage Ratio" shall mean, for any Testing Period,
          the ratio of (i) (A) Consolidated EBITDA, minus (B) Consolidated
          Capital Expenditures, to (ii) the sum of (A) Consolidated Cash
          Interest Expense, (B) Consolidated Cash Income Tax Expense, and (C)
          the sum of all payments for dividends, stock repurchases or other
          retirements, and other purposes described in section 9.6, if any, in
          each case on a consolidated basis for the Borrower and its
          Subsidiaries for such Testing Period; provided that, notwithstanding
          anything to the contrary contained herein, the Borrower's Fixed Charge
          Coverage Ratio for any Testing Period shall be computed by giving
          effect to (x) the inclusion of the appropriate financial items for any
          person or business unit which has been acquired by the Borrower for
          any portion of such Testing Period prior to the date
<PAGE>

          of acquisition, and (y) the exclusion of the appropriate financial
          items for any person or business unit which has been disposed of by
          the Borrower, for the portion of such Testing Period prior to the date
          of disposition.

          1.2. Pricing Changes.  Sections 2.7(g) of the Credit Agreement is
hereby amended in its entirety to read as follows:

               (g)  Interest Rate Margins.   As used herein the terms
          "Applicable Prime Rate Margin" and "Applicable Eurodollar Margin"
          shall mean the applicable rates determined in accordance with the
          following provisions:

                    (i)    for any date prior to January 31, 2001, the
          Applicable Prime Rate Margin and the Applicable Eurodollar Margin for
          all Loans shall be determined in accordance with section 2.7(g) of the
          Credit Agreement as in effect prior to January 31, 2001.

                    (ii)   subject at all times to section 2.7(c) and subpart
          (iv) below, from January 31, 2001 through June 30, 2001, (A) the
          Applicable Prime Rate Margin for Revolving Loans and Term A Loans
          shall be 125 basis points per annum and for Term B Loans shall be 225
          basis points per annum, and (B) the Applicable Eurodollar Margin for
          Revolving Loans and Term A Loans shall be 275 basis points per annum
          and for Term B Loans shall be 375 basis points per annum; provided,
          however that if, at any time during such period, the Borrower's ratio
          of Consolidated Total Debt to Consolidated EBITDA, as computed in
          accordance with section 9.8, shall be greater than 3.50 to 1.00, then
          (A) the Applicable Prime Rate Margin for Revolving Loans and Term A
          Loans shall be 150 basis points per annum and for Term B Loans shall
          be 250 basis points per annum, and (B) the Applicable Eurodollar
          Margin for Revolving Loans and Term A Loans shall be 300 basis points
          per annum and for Term B Loans shall be 400 basis points per annum.

                    (iii)  subject at all times to section 2.7(c) and subpart
          (iv) below, commencing on and after July 1, 2001, and continuing with
          each fiscal quarter thereafter, the Applicable Prime Rate Margin and
          Applicable Eurodollar Margin for all Loans shall be the particular
          rate per annum determined by the Administrative Agent in accordance
          with the Pricing Grid Table that appears below, based on the
          Borrower's ratio of Consolidated Total Debt to Consolidated EBITDA, as
          computed in accordance with section 9.8 hereof and such Pricing Grid
          Table, and the following provisions:

                           (A)  Changes in the Applicable Prime Rate Margin or
                    Applicable Eurodollar Margin based upon changes in such
                    ratio shall become effective on the first day of the month
                    following the receipt by the Administrative Agent pursuant
                    to section 8.1(a) or (b) of the financial statements of the
                    Borrower, accompanied by the certificate and calculations
                    referred to in section 8.1(c), demonstrating the computation
                    of such ratio, based upon the ratio in effect at the end of
                    the applicable period covered (in whole or in part) by such
                    financial statements;

                           (B)  Notwithstanding the above provisions, but
                    subject section 2.7(c), during any period when the Borrower
                    has failed to timely deliver its consolidated financial
                    statements referred to in section 8.1(a) or (b), accompanied
                    by the certificate and calculations referred to in section
                    8.1(c), a Default under section 10.1(a) has occurred and is
                    continuing, or an Event of Default has occurred and is
                    continuing, the Applicable Prime Rate Margin and the
                    Applicable Eurodollar Margin shall be the highest rate per
                    annum indicated therefor in the Pricing Grid Table,
                    regardless of the Borrower's ratio of Consolidated Total
                    Debt to Consolidated EBITDA at such time; and

                           (C)  Any change in the Applicable Prime Rate Margin
                    or Applicable Eurodollar Margin shall be determined by the
                    Administrative Agent in accordance with the above provisions
                    and the Administrative Agent shall promptly provide notice
                    of such determinations to the Borrower and the Lenders. Any
                    such determination by the Administrative Agent pursuant to
                    this section 2.7(g) shall be conclusive and binding absent
                    manifest error.

                                       2
<PAGE>

                    (iv)  notwithstanding anything in this section 2.7 or
          elsewhere in the Credit Agreement to the contrary, if, at any time,
          the rating accorded to the Borrower's senior secured debt (A) by
          Moody's shall be less than Ba3, or (B) by S&P shall be less than BB-,
          then effective immediately on the date of a change to any such rating,
          and thereafter, the Applicable Prime Rate Margin and the Applicable
          Eurodollar Margin for all Loans, as determined in accordance with this
          section 2.7(g), shall be increased by 25 basis points.

                              PRICING GRID TABLE
                          (Expressed in Basis Points)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                            Applicable
Ratio of                    Prime Rate         Applicable
Consolidated Total          Margin for         Eurodollar          Applicable      Applicable
Debt to                     Revolving          Margin for          Prime Rate      Eurodollar     Applicable
Consolidated                Loans and Term     Revolving Loans     Margin for      Margin for     Commitment
EBITDA                      A Loans            and Term A Loans    Term B Loans    Term B Loans   Fee Rate
<S>                         <C>                <C>                 <C>             <C>            <C>
--------------------------------------------------------------------------------------------------------------

Greater than 3.50 to 1.00      150.00              300.00              250.00          400.00       50.00
--------------------------------------------------------------------------------------------------------------
Greater than 3.00 to           125.00              275.00              225.00          375.00       50.00
 1.00 but less than or
 equal to 3.50 to 1.00
--------------------------------------------------------------------------------------------------------------
Greater than 2.50 to           100.00              250.00              225.00          375.00       50.00
 1.00 but less than or
 equal to 3.00 to 1.00
--------------------------------------------------------------------------------------------------------------
Greater than 2.00 to            62.50              212.50              225.00          375.00       50.00
 1.00 but less than or
 equal to 2.50 to 1.00
--------------------------------------------------------------------------------------------------------------
Less than or equal to           25.00              175.00              225.00          375.00       50.00
 2.00 to 1.00
--------------------------------------------------------------------------------------------------------------
</TABLE>

     1.3.  Amendment to Certain Financial Covenants. Sections 9.8, 9.9, 9.10 and
9.11 of the Credit Agreement are hereby amended such that, for any date prior to
December 31, 2000, the Borrower shall be required to comply with such Sections
as in effect prior to the Amendment Effective Date, and, on December 31, 2000
and thereafter, such sections shall be amended in their entirety to read as
follows:

           9.8. Consolidated Total Debt/Consolidated EBITDA Ratio.  The Borrower
     shall not at any time permit the ratio of Consolidated Total Debt at the
     end of any Testing Period to Consolidated EBITDA for such Testing Period to
     exceed the ratio specified below:

             -----------------------------------------------
               Testing Period                 Ratio
             -----------------------------------------------
               December 31, 2000              3.25 to 1.00
             -----------------------------------------------
               March 31, 2001                 4.00 to 1.00
             -----------------------------------------------
               June 30, 2001                  4.15 to 1.00
             -----------------------------------------------

                                       3
<PAGE>

          -------------------------------------------------------------
            Testing Period                                  Ratio
          -------------------------------------------------------------
            September 30, 2001                           4.00 to 1.00
          -------------------------------------------------------------
            December 31, 2001                            3.50 to 1.00
          -------------------------------------------------------------
            March 31, 2002                               3.25 to 1.00
          -------------------------------------------------------------
            June 30, 2002                                2.75 to 1.00
          -------------------------------------------------------------
            September 30, 2002 and thereafter            2.50 to 1.00
          -------------------------------------------------------------

          9.9.  Interest Coverage Ratio. The Borrower shall not permit at any
time its Interest Coverage Ratio for any Testing Period to be less than the
ratio specified below:

          --------------------------------------------------------------
           Testing Period                                  Ratio
          --------------------------------------------------------------
           December 31, 2000                            3.50 to 1.00
          --------------------------------------------------------------
           March 31, 2001                               2.90 to 1.00
           -------------------------------------------------------------
           June 30, 2001                                2.60 to 1.00
          --------------------------------------------------------------
           September 30, 2001                           2.60 to 1.00
          --------------------------------------------------------------
           December 31, 2001                            2.75 to 1.00
          --------------------------------------------------------------
           March 31, 2002                               3.00 to 1.00
          --------------------------------------------------------------
           June 30, 2002                                3.25 to 1.00
          --------------------------------------------------------------
           September 30, 2002 and thereafter            3.50 to 1.00
          --------------------------------------------------------------

          9.10. Fixed Charge Coverage Ratio. The Borrower shall not at any time
permit its Fixed Charge Coverage Ratio for any Testing Period to be less than
the ratio specified below:

          --------------------------------------------------------------
           Testing Period                                  Ratio
          --------------------------------------------------------------
           December 31, 2000                            1.75 to 1.00
          --------------------------------------------------------------
           March  31, 2001                              1.50 to 1.00
          --------------------------------------------------------------
           June 30, 2001                                1.10 to 1.00
          --------------------------------------------------------------
           September 30, 2001                           1.10 to 1.00
          --------------------------------------------------------------
           December 31, 2001                            1.35 to 1.00
          --------------------------------------------------------------
           March 31, 2002 through September 30, 2002    1.50 to 1.00
          --------------------------------------------------------------
           December 31, 2002                            1.75 to 1.00
          --------------------------------------------------------------
           March 31, 2003 and thereafter                2.00 to 1.00
          --------------------------------------------------------------

                                       4
<PAGE>

          9.11.   Minimum Consolidated EBITDA. The Borrower shall not permit at
     any time its Consolidated EBITDA for any Testing Period to be less than the
     amount specified below, provided that, in the event the Borrower and/or its
     Subsidiaries complete any Acquisition after the Effective Date (other than
     the Hi-Stat Acquisition), each of the amounts specified below shall be
     increased by an amount equal to 85% of the consolidated earnings before
     interest, income taxes, depreciation and amortization attributable to the
     business and assets acquired in each such Acquisition for the most recently
     completed period of four fiscal quarters preceding the date such
     Acquisition is completed:

         -----------------------------------------------------------
          Testing Period                                     Amount
         -----------------------------------------------------------
          December 31, 2000                            $100,000,000
         -----------------------------------------------------------
          March 31, 2001                               $ 85,000,000
         -----------------------------------------------------------
          June 30, 2001 and September 30, 2001         $ 80,000,000
         -----------------------------------------------------------
          December 31, 2001                            $ 87,500,000
         -----------------------------------------------------------
          March 31, 2002                               $100,000,000
         -----------------------------------------------------------
          June 30, 2002                                $110,000,000
         -----------------------------------------------------------
          September 30, 2002                           $120,000,000
         -----------------------------------------------------------
          December 31, 2002 and March 31, 2003         $130,000,000
         -----------------------------------------------------------
          June 30, 2003 through September 30, 2004     $140,000,000
         -----------------------------------------------------------
          December 31, 2004 and thereafter             $150,000,000
         -----------------------------------------------------------

     At the time that the Borrower and/or its Subsidiaries complete an
     Acquisition requiring an adjustment to the foregoing amounts, the Borrower
     shall deliver to the Administrative Agent and the Lenders a certificate of
     its chief financial or accounting officer or another Authorized Officer,
     reasonably satisfactory in form and substance to the Administrative Agent,
     as to the amounts of such adjustments, and setting forth the calculations
     and other financial information (including copies of financial statements
     of the business acquired in the Acquisition) used in determining such
     adjustments.

     1.4.  Amendment to Section 9.12. The Capital Expenditure limitation set
forth in Section 9.12 of the Credit Agreement for the fiscal year ended December
31, 2001 is hereby amended to delete the amount "$30,000,000" and to insert in
place thereof the amount "$33,500,000"; provided, however, that any amount of
Consolidated Capital Expenditures not utilized for the fiscal year ended
December 31, 2000 shall not be permitted to be carried over to the fiscal year
ended December 31, 2001.

     SECTION 2. REPRESENTATIONS AND WARRANTIES.

     The Borrower represents and warrants as follows:

     2.1.  Authorization and Validity of Amendment, etc.  This Amendment has
been duly authorized by all necessary corporate action on the part of the
Borrower, has been duly executed and delivered by a duly authorized officer of
the Borrower, and constitutes the valid and binding agreement of the Borrower,
enforceable against the Borrower in accordance with its terms, except to the
extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting
creditors' rights and by equitable principles (regardless of whether enforcement
is sought in equity or at law).

     2.2.  Representations and Warranties.   The representations and warranties
of the Credit Parties contained in the Credit Agreement or in the other Credit
Documents are true and correct in all material respects on and as of the

                                       5
<PAGE>

Amendment Effective Date as though made on and as of the Amendment Effective
Date, except to the extent that such representations and warranties expressly
relate to an earlier specified date, in which case such representations and
warranties are hereby reaffirmed as true and correct in all material respects as
of the date when made.

     2.3.  No Event of Default. No Default or Event of Default exists or
hereafter shall begin to exist.

     2.4.  Compliance. The Borrower is in compliance with all covenants and
agreements contained in the Credit Agreement, as amended hereby, and the other
Credit Documents to which it is a party; without limitation of the foregoing,
each Subsidiary of the Borrower that, as of the date hereof, is required to be a
Subsidiary Guarantor, has, on or prior to the Amendment Effective Date, become a
Subsidiary Guarantor under the Subsidiary Guaranty.

     2.5.  Financial Statements, etc. The Borrower has furnished to the Lenders
and the Administrative Agent complete and correct copies of:

               (a)  the audited consolidated balance sheets of the Borrower and
     its consolidated Subsidiaries as of December 31, 1998, and December 31,
     1999, and the related audited consolidated statements of income,
     stockholders' equity, and cash flows for the fiscal years then ended,
     accompanied by the unqualified report thereon of the Borrower's independent
     accountants; and

               (b)  the unaudited condensed consolidated balance sheets of the
     Borrower and its consolidated Subsidiaries as of September 30, 2000, and
     the related unaudited condensed consolidated statements of income and of
     cash flows of the Borrower and its consolidated Subsidiaries for the fiscal
     quarter or quarters then ended, as contained in the Form 10-Q Quarterly
     Report of the Borrower filed with the SEC.

All such financial statements have been prepared in accordance with GAAP,
consistently applied (except as stated therein), and fairly present, in all
material respects, the financial position of the Borrower and its consolidated
Subsidiaries as of the respective dates indicated and the consolidated results
of their operations and cash flows for the respective periods indicated, subject
in the case of any such financial statements which are unaudited, to the absence
of footnotes and to normal audit adjustments none of which shall involve a
Material Adverse Effect.

     2.6.  No Claims, etc.  The Borrower is not aware of any claim or offset
against, or defense or counterclaim to, any of its obligations or liabilities
under the Credit Agreement or any other Credit Document.

     SECTION 3. RATIFICATIONS.

     Except as expressly modified and superseded by this Amendment, the terms
and provisions of the Credit Agreement are ratified and confirmed and shall
continue in full force and effect.

     SECTION 4.  BINDING EFFECT.

     This Amendment shall become effective on January 26, 2001 (the "Amendment
Effective Date"), subject to the satisfaction of the following conditions on or
before such date:

          (a)  this Amendment shall have been executed by the Borrower and the
     Administrative Agent, and counterparts hereof as so executed shall have
     been delivered to the Administrative Agent;

          (b)  the Acknowledgment and Consent appended hereto shall have been
     executed by the Credit Parties named therein, and counterparts thereof as
     so executed shall have been delivered to the Administrative Agent; and

          (c)  the Administrative Agent shall have been notified by the Required
     Lenders that such Lenders have consented to the changes in the Credit
     Agreement effected by this Amendment (which notification may be by
     facsimile or other written confirmation of such consent);

                                       6
<PAGE>

and thereafter this Amendment shall be binding upon and inure to the benefit of
the Borrower, the Agents, and each Lender and their respective permitted
successors and assigns. After this Amendment becomes effective, the
Administrative Agent shall promptly furnish a copy of this Amendment to each
Lender and the Borrower.

     SECTION 5. MISCELLANEOUS.

     5.1.  Survival of Representations and Warranties. All representations and
warranties made in this Amendment shall survive the execution and delivery of
this Amendment, and no investigation by the Administrative Agent or any Lender
or any subsequent Loan or other Credit Event shall affect the representations
and warranties or the right of the Administrative Agent or any Lender to rely
upon them.

     5.2.  Reference to Credit Agreement. The Credit Agreement and any and all
other agreements, instruments or documentation now or hereafter executed and
delivered pursuant to the terms of the Credit Agreement as amended hereby, are
hereby amended so that any reference therein to the Credit Agreement shall mean
a reference to the Credit Agreement as amended hereby.

     5.3.  Expenses.  As provided in the Credit Agreement, but without limiting
any terms or provisions thereof, the Borrower shall pay on demand all reasonable
costs and expenses incurred by the Agents in connection with the preparation,
negotiation, and execution of this Amendment, including without limitation the
reasonable costs and fees of the special legal counsel of Agents, regardless of
whether this Amendment becomes effective in accordance with the terms hereof,
and all reasonable costs and expenses incurred by any Agent or Lender in
connection with the enforcement or preservation of any rights under the Credit
Agreement, as amended hereby.

     5.4.  Severability.  Any term or provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the term or provision so held to be invalid or unenforceable.

     5.5.  Applicable Law.  This Amendment shall be governed by and construed
in accordance with the laws of the State of Ohio without regard to conflicts of
laws provisions.

     5.6.  Headings.  The headings, captions and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.

     5.7.  Entire Agreement. This Amendment is specifically limited to the
matters expressly set forth herein. This Amendment and all other instruments,
agreements and documentation executed and delivered in connection with this
Amendment embody the final, entire agreement among the parties hereto with
respect to the subject matter hereof and supersede any and all prior
commitments, agreements, representations and understandings, whether written or
oral, relating to the matters covered by this Amendment, and may not be
contradicted or varied by evidence of prior, contemporaneous or subsequent oral
agreements or discussions of the parties hereto. There are no oral agreements
among the parties hereto relating to the subject matter hereof or any other
subject matter relating to the Credit Agreement. Except as set forth herein, the
Credit Agreement shall remain in full force and effect and be unaffected hereby.

     5.8.  Waiver of Claims.  The Borrower, by signing below, hereby waives
and releases each Agent and each of the Lenders and their respective directors,
officers, employees, attorneys, affiliates and subsidiaries from any and all
claims, offsets, defenses and counterclaims of which Borrower is aware, such
waiver and release being with full knowledge and understanding of the
circumstances and effect thereof and after having consulted legal counsel with
respect thereto.

     5.9.  Counterparts.  This Amendment may be executed by the parties hereto
separately in one or more counterparts and by facsimile signature, each of which
when so executed shall be deemed to be an original, but all of which when taken
together shall constitute one and the same agreement.

                 [Remainder of page intentionally left blank.]

                                       7
<PAGE>

          5.10.  Jury Trial Waiver.   EACH OF THE PARTIES TO THIS AMENDMENT
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE OTHER CREDIT
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HERETO
HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

          IN WITNESS WHEREOF, this Amendment has been duly executed and
delivered as of the date first above written.

NATIONAL CITY BANK,
   as a Lender, the letter of Credit Issuer,
   the Administrative Agent and
   the Collateral Agent

By:  /s/ David A. Buans
   ---------------------------------
    David A. Buans
    Managing Director

STONERIDGE, INC.

By:  /s/ Kevin P. Bagby
   ---------------------------------
    Kevin P. Bagby
    Vice President-Finance
      & Chief Financial Officer

PNC BANK, NATIONAL ASSOCIATION,
   as a Lender and as Documentation Agent

By: /s/ Joseph G. Moran
   ---------------------------------
    Title: Vice President

DLJ CAPITAL FUNDING, INC.,
   as Syndication Agent

By:  /s/ Dana Klein
   ---------------------------------
    Title:  Director

ABN AMRO BANK N. V.

By:  /s/ John M. Ellenwood
   ---------------------------------
    Title: Group Vice President

And:  /s/ David G. Sagers
    --------------------------------
    Title: Group Vice PResident

THE BANK OF NOVA SCOTIA

By:  /s/ M. D. Smith
   ---------------------------------
    Title: Agent Operations

MELLON BANK, N. A.

By:  /s/ John Joseph Ligday
   ---------------------------------
    Title: Vice President

COMERICA BANK

By:  /s/ Nicholas Mester
   ---------------------------------
    Title: Assistant Vice President

BANK ONE, MICHIGAN
 (formerly NBD Bank)

By:  /s/ Paul E. Flynn
   ---------------------------------
    Title: First Vice President

                                      S-1
<PAGE>

FIRSTAR BANK, NATIONAL ASSOCIATION
 (formerly Star Bank, National Association)

By:  /s/ W. Gregory Schmid
   ---------------------------------
    Title: Vice President

HARRIS TRUST AND SAVINGS BANK

By:  /s/ Thad D. Rasche
   ---------------------------------
    Title: Vice President

FLEET NATIONAL BANK (formerly
 BankBoston, N.A.)

By:_________________________________
    Title:

FIRSTAR BANK, NATIONAL ASSOCIATION
 ( formerly Mercantile Bank NA)

By: /s/ W. Gregory Schmid
   ---------------------------------
    Title:  Vice President

SUNTRUST BANK

By:  /s/ William C. Humphries
   ---------------------------------
    Title: Director

GENERAL ELECTRIC CAPITAL CORPORATION

By:  /s/ William S. Richardson
   ---------------------------------
    Title: Duly Authorized Signatory

BANK AUSTRIA CREDITANSTALT CORPORATE
FINANCE, INC

By:  /s/ David M. Harnish
   ---------------------------------
    Title: Senior Vice President

and:  /s/ Francesco Ossino
    --------------------------------
    Title: Vice President

SUMMIT BANK

By:  /s/ Punam Gambhir
   ---------------------------------
    Title:  Assistant Vice President

AMMC CDO II, LIMITED
By:  American Money Management Corp.,
     as Collateral Manager

By: /s/ David P. Meyer
   ---------------------------------
    Title: Vice President

AMMC CDO I, LIMITED
By:  American Money Management Corp.,
     as Collateral Manager

By:  /s/ David P. Meyer
   ---------------------------------
    Title: Vice President

AG CAPITAL FUNDING PARTNERS, L.P.
By:  Angelo, Gordon & Company, LP,
     as Investment Advisor

By:  /s/ John W. Fraser
   ---------------------------------
    Title: Managing Director

ARCHIMEDES FUNDING II LTD.

By: /s/ Greg Lasuda
   ---------------------------------
    Title: Vice President

ATHENA CDO LIMITED

By:  /s/ Mohan V. Phansalker
   ---------------------------------
    Title: Senior Vice President

BLACK DIAMOND CLO 1998-1 LTD.

By:  /s/ John H. Cullinane
   ---------------------------------
    Title: Director

BLACK DIAMOND CLO 2000-1 LTD.

By:  /s/ David Dyer
   ---------------------------------
    Title: Director

CAPTIVA IV FINANCE LTD.

By:  /s/ David Dyer
   ---------------------------------
    Title: Director

                                      S-2
<PAGE>

EATON  VANCE SENIOR INCOME TRUST

By:_________________________________
    Title:

FIRST DOMINION FUNDING II
By:  Credit Suisse Asset Management, LLC,
     as collateral manager

By:  /s/ David Lerner
   ---------------------------------
    Title: Authorized Signatory

FLEET NATIONAL BANK

By:_________________________________
    Title:

FREMONT INVESTMENT & LOAN

By:  /s/ Kannika Viravan
   ---------------------------------
    Title: Vice President

GALAXY CLO 1999-1
By:  SAI Investment Adviser, Inc. its Collateral
     Manager

By:  /s/ Kevin Buckle
   ---------------------------------
    Title: Authorized Agent

KZH ING 2 LLC

By: /s/ Kimberly Rowe
   ---------------------------------
    Title: Authorized Agent

KZH ING 3 LLC

By:  /s/ Kimberly Rowe
   ---------------------------------
    Title: Authorized Agent

KZH LANGDALE LLC

By:  /s/ Kimberly Rowe
   ---------------------------------
    Title: Authorized Agent

KZH SOLEIL LLC

By:  /s/ Kimberly Rowe
   ---------------------------------
  Title: Authorized Agent

KZH SOLEIL-2 LLC

By:  /s/ Kimberly Rowe
   ---------------------------------
  Title:  Authorized Agent

KZH-RIVERSIDE LLC

By: /s/ Kimberly Rowe
   ---------------------------------
    Title: Authorized Agent

MASS MUTUAL LIFE INSURANCE

By:  /s/ Steven J. Katz
   ---------------------------------
    Title:  Second Vice President and
         Associate General Counsel

ML CLO ZII PILGRIM AMERICA

By:  /s/ Mark F. Haak
   ---------------------------------
    Title: Assistant Vice President

MORGAN STANLEY DEAN WITTER PRIME
INCOME TRUST

By: /s/ Peter Gewirtz
   ---------------------------------
    Title: Vice President

OASIS COLLATERALIZED HIGH INCOME

By:  /s/ Joseph Rotondo
   ---------------------------------
    Title: Authorized Signatory

OSPREY INVESTMENTS PORTFOLIO

By:  /s/ Daniel Slotkin
   ---------------------------------
    Title: Vice President

SENIOR DEBT PORTFOLIO

By:_________________________________
    Title:

SOMERS CDO, LIMITED

By: /s/ Steven J. Katz
   ---------------------------------
    Title: Second Vice President and
           Assistant General Counsel

                                      S-3
<PAGE>

SRV-HIGHLAND

By:_________________________________
    Title:

STEIN ROE & FARNHAM INCORPORATED,
          as agent for Keyport Life Insurance
          Company.

By: /s/ Brian W. Good
   ---------------------------------
    Title: Senior Vice President

STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY

By: /s/ Brian W. Good
   ---------------------------------
    Title: Senior Vice President

TEXAS COMMERCE BANK NA

By:_________________________________
    Title:

TORONTO DOMINION (N.Y.), INC.

By:_________________________________
    Title:

TRAVELERS CORPORATE LOAN FUND INC.
By:  Travelers Asset Management International
          Company LLC

By:  /s/ Matthew J. McInerny
   ---------------------------------
    Title: Assistant Investment Officer

THE TRAVELERS INSURANCE COMPANY

By:  /s/ Matthew J. McInerny
   ---------------------------------
    Title: Assistant Investment Officer

COLUMBUS LOAN FUNDING LTD.
By:  Travelers Asset Management
     International Company LLC

By:  /s/ Matthew J. McInerny
   ---------------------------------
    Title: Assistant Investment Officer

VAN KEMPEN CLO I, LIMITED

By:  /s/ Darvin D. Pierce
   ---------------------------------
    Title: Principal

VAN KEMPEN PRIME RATE INCOME

By:  /s/ Darvin D. Pierce
   ---------------------------------
    Title: Principal

AVALON CAPITAL LTD.
By:  INVESCO Senior Secured Management, Inc.
     as Portfolio Advisor

By:  /s/ Joseph Rotondo
   ---------------------------------
  Title:  Authorized Signatory

AVALON CAPITAL LTD 2
By:  INVESCO Senior Secured Management, Inc.
     as Portfolio Advisor

By:  /s/ Joseph Rotondo
   ---------------------------------
  Title: Authorized Signatory

CHARTER VIEW PORTOFOLIO
By:  INVESCO Senior Secured Management, Inc.
     as Portfolio Advisor

By:  /s/ Joseph Rotondo
   ---------------------------------
  Title: Authorized Signatory

ADDISON CDO, LIMITED (Acct 1279)
By:  Pacific Investment Management Company
     LLC as its Investment Advisor

By: /s/ Mohan V. Phansalker
   ---------------------------------
  Title: Senior Vice President

BEDFORD CDO, LIMITED (Acct 1276)
By:  Pacific Investment Management Company
     LLC as its Investment Advisor

By: /s/ Mohan V. Phansalker
   ---------------------------------
  Title: Senior Vice President

                                      S-4
<PAGE>

CATALINA CDO LTD (Acct 1287)
By:  Pacific Investment Management Company
     LLC as its Investment Advisor

By: /s/ Mohan V. Phansalker
   ---------------------------------
  Title: Senior Vice President

JISSEKIKUN FUNDING, LTD (Acct 1288)
By:  Pacific Investment Management Company
     LLC as its Investment Advisor

By: /s/ Mohan V. Phansalker
   ---------------------------------
  Title: Senior Vice President

                                      S-5
<PAGE>

                           ACKNOWLEDGMENT AND CONSENT

          For the avoidance of doubt, and without limitation of the intent and
effect of sections 4 and 5 of the Subsidiary Guaranty (as  such term is defined
in the Credit Agreement referred to in the Amendment No. 4 to Credit Agreement
(the "Amendment"), to which this Acknowledgment and Consent is appended), each
of the undersigned hereby unconditionally and irrevocably (i) acknowledges
receipt of a copy of the Credit Agreement and the Amendment, and (ii) consents
to all of the terms and provisions of the Credit Agreement as amended by the
Amendment.

          Capitalized terms which are used herein without definition shall have
the respective meanings ascribed thereto in the Credit Agreement referred to
herein. This Acknowledgment and Consent is for the benefit of the Lenders, the
Administrative Agent, the Collateral Agent and any Designated Hedge Creditor
(as defined in the Subsidiary Guaranty) which may be a third party beneficiary
of the Subsidiary Guaranty or any Security Document, in its capacity as such
third party beneficiary under any Credit Document, and their respective
successors and assigns. No term or provision of this Acknowledgment and Consent
may be modified or otherwise changed without the prior written consent of the
Administrative Agent, given as provided in the Credit Agreement. This
Acknowledgment and Consent shall be binding upon the successors and assigns of
each of the undersigned. This Acknowledgment and Consent may be executed by any
of the undersigned in separate counterparts, each of which shall be an original
and all of which together shall constitute one and the same instrument.

          IN WITNESS WHEREOF, each of the undersigned has duly executed and
delivered this Acknowledgment and Consent as of the date of the Amendment
referred to herein.

--------------------------------------------------------------------------------
Stoneridge Control Devices, Inc.          Stoneridge Electronics, Inc.

By: /s/ Kevin P. Bagby                    By: /s/ Kevin P. Bagby
   ----------------------------------        -----------------------------------
Title: Director, Vice President and          Title: Director, Vice President and
Chief  Financial Officer                            Chief Financial Officer
--------------------------------------------------------------------------------

                                      S-6

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