Document:

<PAGE>
                                  EXHIBIT 10.08

                          CONCORD COMMUNICATIONS, INC.

                  1997 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN
           (AS AMENDED MARCH 12, 1998, MARCH 8, 2000, APRIL 25, 2001)

         1. Purpose. This Non-Qualified Stock Option Plan, to be known as the
1997 Non-Employee Director Stock Option Plan (hereinafter, this "Plan") is
intended to promote the interests of CONCORD COMMUNICATIONS, INC. (hereinafter,
the "Company") by providing an inducement to obtain and retain the services of
qualified persons who are not employees or officers of the Company to serve as
members of its Board of Directors (the "Board").

         2. Available Shares. The total number of shares of Common Stock, par
value $.01 per share, of the Company (the "Common Stock") for which options may
be granted under this Plan shall not exceed one hundred thirty thousand
(130,000) shares, subject to adjustment in accordance with Section 10 of this
Plan; provided, however, that such number of shares shall not be subject to
adjustment by reason of the stock split in the form of a stock dividend declared
by the Board of the Directors of the Company on August 7, 1997. Shares subject
to this Plan are authorized but unissued shares or shares that were once issued
and subsequently reacquired by the Company. If any options granted under this
Plan are surrendered before exercise or lapse without exercise, in whole or in
part, the shares reserved therefore shall continue to be available under this
Plan.

         3. Administration. This Plan shall be administered by the Board or by a
committee appointed by the Board (the "Committee"). In the event the Board fails
to appoint or refrains from appointing a Committee, the Board shall have all
power and authority to administer this Plan. In such event, the word "Committee"
wherever used herein shall be deemed to mean the Board. The Committee shall,
subject to the provisions of the Plan, have the power to construe this Plan, to
determine all questions hereunder, and to adopt and amend such rules and
regulations for the administration of this Plan as it may deem desirable. No
member of the Board or the Committee shall be liable for any action or
determination made in good faith with respect to this Plan or any option granted
under it.

         4. Automatic Grant of Options. Subject to the availability of shares
under this Plan, (a) each person who becomes a member of the Board on or after
October 16, 1997 and who is not an employee or officer of the Company during the
term of the Plan (a "Non-Employee Director"), shall be granted on the date such
person is first elected to the Board, without further action by the Board, an
option to purchase 20,000 shares of Common Stock, and (b) each person who is a
Non-Employee Director immediately following the final adjournment of each Annual
Meeting of Stockholders of the Company during the term of this Plan shall be
automatically granted on each such date an option to purchase 7,500 shares of
Common Stock. The options to be granted under this Section 4 shall be the only
options ever to be granted at any time to such member under this Plan. The
number of shares covered by options granted under this Section 4 shall be
subject to adjustment in accordance with the provisions of Section 10 of this
Plan.

         5. Option Price. The purchase price of the stock covered by an option
granted pursuant to this Plan shall be 100% of the fair market value of such
shares on the day the option is granted. The option price will be subject to
adjustment in accordance with the provisions of Section 10 of this Plan. For
purposes of this Plan, if, at the time an option is granted under the Plan, the
Company's Common Stock is publicly traded, "fair market value" shall be
determined as of the last business day for which the prices or quotes discussed
in this sentence are available prior to the date such option is granted and
shall mean (i) the average (on that date) of the high and low prices of the
Common Stock on the principal national securities exchange on which the Common
Stock is traded, if the Common Stock is then traded on a national securities
exchange; or (ii) the last reported sale price (on that date) of the Common
Stock on the Nasdaq National Market, if the Common Stock is not then traded on a
national securities exchange; or (iii) the closing bid price (or average of bid
prices) last quoted (on that date) by an established quotation service for
over-the-counter securities, if the Common Stock is not reported on the Nasdaq
National Market List. However, if the Common Stock is not publicly traded at the
time an option is granted under the Plan, "fair market value" shall be deemed to
be

                                       1
<PAGE>
the fair value of the Common Stock as determined by the Committee after taking
into consideration all factors which it deems appropriate, including, without
limitation, recent sale and offer prices of the Common Stock in private
transactions negotiated at arm's length.

         6. Period of Option. Unless sooner terminated in accordance with the
provisions of Section 8 of this Plan, an option granted hereunder shall expire
on the date which is ten (10) years after the date of grant of the option.

         7. (a) Vesting of Shares and Non-Transferability of Options. Options
granted under this Plan shall not be exercisable until they become vested.
Options granted under this Plan shall vest in the optionee and thus become
exercisable, in accordance with the following schedule, provided that the
optionee has continuously served as a member of the Board through such vesting
date:

<TABLE>
<CAPTION>
                  Percentage of Option
                  Shares for which
                  Option Will be Exercisable           Date of Vesting
                  --------------------------           ---------------
<S>                                                    <C>
                            25%                        one year from the date of grant

                            6.25%                      per quarter on the last day of the quarter
                                                       beginning the quarter ending immediately
                                                       following the date to occur which is one
                                                       year from the date of grant
</TABLE>

         The number of shares as to which options may be exercised shall be
cumulative, so that once the option shall become exercisable as to any shares it
shall continue to be exercisable as to said shares, until expiration or
termination of the option as provided in this Plan.

                  (b) Non-transferability. Any option granted pursuant to this
Plan shall not be assignable or transferable other than by will or the laws of
descent and distribution or pursuant to a domestic relations order and shall be
exercisable during the optionee's lifetime only by him or her.

         8.       Termination of Option Rights.

                  (a) In the event an optionee ceases to be a member of the
Board for any reason other than death or permanent disability, any then
unexercised portion of options granted to such optionee shall, to the extent not
then vested, immediately terminate and become void; any portion of an option
which is then vested but has not been exercised at the time the optionee so
ceases to be a member of the Board may be exercised, to the extent it is then
vested, by the optionee within 60 days of the date the optionee ceased to be a
member of the Board; and all options shall terminate after such 60 days have
expired.

                  (b) In the event that an optionee ceases to be a member of the
Board by reason of his or her death or permanent disability, any option granted
to such optionee may be exercised, to the extent of the number of shares with
respect to which he or she could have exercised it on the date of death or
permanent disability, by the optionee (or by the optionee's personal
representative, heir or legatee, in the event of death) until the scheduled
expiration date of the option.

         9.       Exercise of Options and Resale Restrictions.

                  (a) Exercise of Option. Subject to the terms and conditions of
this Plan and the option agreements, an option granted hereunder shall, to the
extent then exercisable, be exercisable in whole or in part by giving written
notice to the Company by mail or in person addressed to the Chief Financial
Officer at 600 Nickerson Road, Marlborough, Massachusetts 01752, its principal
executive offices, stating the number of shares with respect to which the option
is being exercised, accompanied by payment in full for such shares. Payment may
be (a) in United States dollars in cash or by check, (b) in whole or in part in
shares of the Common Stock of the Company already owned by the person or persons
exercising the option or shares subject to the option being exercised (subject
to such restrictions and guidelines as the Board may adopt

                                       2
<PAGE>
from time to time), valued at fair market value determined in accordance with
the provisions of Section 5 or (c) consistent with applicable law, through the
delivery of an assignment to the Company of a sufficient amount of the proceeds
from the sale of the Common Stock acquired upon exercise of the option and an
authorization to the broker or selling agent to pay that amount to the Company,
which sale shall be at the participant's direction at the time of exercise;
provided, however, that there shall be no such exercise at any one time as to
fewer than one hundred (100) shares or all of the remaining shares then
purchasable by the person or persons exercising the option, if fewer than one
hundred (100) shares. The Company's transfer agent shall, on behalf of the
Company, prepare a certificate or certificates representing such shares acquired
pursuant to exercise of the option, shall register the optionee as the owner of
such shares on the books of the Company and shall cause the fully executed
certificate(s) representing such shares to be delivered to the optionee as soon
as practicable after payment of the option price in full. The holder of an
option shall not have any rights of a stockholder with respect to the shares
covered by the option, except to the extent that one or more certificates for
such shares shall be delivered to him or her upon the due exercise of the
option.

                  (b) Resale Restrictions. Under no circumstances may shares
acquired pursuant to the exercise of options granted pursuant to this Plan be
disposed of on or prior to the date that is six months after the date such
options were granted.

         10. Adjustments Upon Changes in Capitalization and Other Events. Upon
the occurrence of any of the following events, an optionee's rights with respect
to options granted to him or her hereunder shall be adjusted as hereinafter
provided:

                  (a) Stock Dividends and Stock Splits. If the shares of Common
Stock shall be subdivided or combined into a greater or smaller number of shares
or if the Company shall issue any shares of Common Stock as a stock dividend on
its outstanding Common Stock, the number of shares of Common Stock deliverable
upon the exercise of options shall be appropriately increased or decreased
proportionately, and appropriate adjustments shall be made in the purchase price
per share to reflect such subdivision, combination or stock dividend.

                  (b) Recapitalization Adjustments. In the event of a
reorganization, recapitalization, merger, consolidation, or any other change in
the corporate structure or shares of the Company, to the extent permitted by
Rule 16b-3 under the Securities Exchange Act of 1934, adjustments in the number
and kind of shares authorized by this Plan and in the number and kind of shares
covered by, and in the option price of outstanding options under this Plan
necessary to maintain the proportionate interest of the optionee and preserve,
without exceeding, the value of such option, shall be made. Notwithstanding the
foregoing, no such adjustment shall be made which would, within the meaning of
any applicable provisions of the Internal Revenue Code of 1986, as amended,
constitute a modification, extension or renewal of any Option or a grant of
additional benefits to the holder of an Option.

                  (c) Issuances of Securities. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares subject to options. No adjustments shall be made for dividends paid in
cash or in property other than securities of the Company.

                  (d) Adjustments. Upon the happening of any of the foregoing
events, the class and aggregate number of shares set forth in Sections 2 and 4
of this Plan that are subject to options which previously have been or
subsequently may be granted under this Plan shall also be appropriately adjusted
to reflect such events. The Board shall determine the specific adjustments to be
made under this Section 10 and its determination shall be conclusive.

                  (e) Consolidations or Mergers. If the Company is to be
consolidated with or acquired by another entity in a merger or other
reorganization in which the holders of the outstanding voting stock of the
Company immediately preceding the consummation of such event, shall, immediately
following such event, hold, as a group, less than a majority of the voting
securities of the surviving or successor entity, or in the event of a sale of
all or substantially all of the Company's assets or otherwise (each, an
"Acquisition"), the vesting of all outstanding options issued pursuant hereto
will be accelerated so that all outstanding options

                                       3
<PAGE>
are vested and exercisable in full prior to the consummation of any such
Acquisition. If such options are not exercised prior to the consummation of such
Acquisition, and are not assumed or replaced by the successor entity, such
options will terminate.

         11. Restrictions on Issuance of Shares. Notwithstanding the provisions
of Sections 4 and 9 of this Plan, the Company shall have no obligation to
deliver any certificate or certificates upon exercise of an option until one of
the following conditions shall be satisfied:

                  (i) The issuance of shares with respect to which the option
has been exercised is at the time of the issue of such shares effectively
registered under applicable Federal and state securities laws as now in force or
hereafter amended; or

                  (ii) Counsel for the Company shall have given an opinion that
the issuance of such shares is exempt from registration under Federal and state
securities laws as now in force or hereafter amended; and the Company has
complied with all applicable laws and regulations with respect thereto,
including without limitation all regulations required by any stock exchange upon
which the Company's outstanding Common Stock is then listed.

         12. Legend on Certificates. The certificates representing shares issued
pursuant to the exercise of an option granted hereunder shall carry such
appropriate legend, and such written instructions shall be given to the
Company's transfer agent, as may be deemed necessary or advisable by counsel to
the Company in order to comply with the requirements of the Securities Act of
1933 or any state securities laws.

         13. Representation of Optionee. If requested by the Company, the
optionee shall deliver to the Company written representations and warranties
upon exercise of the option that are necessary to show compliance with Federal
and state securities laws, including representations and warranties to the
effect that a purchase of shares under the option is made for investment and not
with a view to their distribution (as that term is used in the Securities Act of
1933).

         14. Option Agreement. Each option granted under the provisions of this
Plan shall be evidenced by an option agreement, which agreement shall be duly
executed and delivered on behalf of the Company and by the optionee to whom such
option is granted. The option agreement shall contain such terms, provisions and
conditions not inconsistent with this Plan as may be determined by the officer
executing it.

         15. Termination and Amendment of Plan. Options may no longer be granted
under this Plan ten (10) years after the Approval Date, and this Plan shall
terminate when all options granted or to be granted hereunder are no longer
outstanding. The Board may at any time terminate this Plan or make such
modification or amendment thereof as it deems advisable; provided, however, that
the Board may not, modify or amend this Plan, without approval of the
stockholders, if such approval is required by the Federal securities laws or
applicable regulatory authorities (at the time of any such modification or
amendment). Termination or any modification or amendment of this Plan shall not,
without consent of a participant, affect his or her rights under an option
previously granted to him or her. The Plan was adopted by the Board of Directors
in July 1997 and by the stockholders of the Company on September 9, 1997. The
Plan was amended on March 12, 1998 by the Board of Directors to increase the
number of option shares granted to Directors on the date such person is first
elected to the Board from 7,500 shares to 20,000 shares and to increase the
number of option shares automatically granted to Directors immediately following
the final adjournment of each Annual Meeting of Stockholders from 1,875 shares
to 5,000 shares. The Plan was further amended on March 8, 2000 by the Board of
Directors to increase the number of shares authorized for issuance under the
Plan by 35,000 subject to approval of the amendment of the Plan by the
stockholders of the Company at the next meeting of stockholders. The
stockholders of the Company approved such amendment on April 25, 2000. The Plan
was further amended on April 25, 2001 to increase the number of option shares
automatically granted to Directors immediately following the final adjournment
of each Annual Meeting of Stockholders from 5,000 shares to 7,500 shares.

         16. Withholding of Income Taxes. Upon the exercise of an option, the
Company, in accordance with Section 3402(a) of the Internal Revenue Code, may
require the optionee to pay withholding taxes in respect of amounts considered
to be compensation includible in the optionee's gross income.

                                       4
<PAGE>
         17. Compliance with Regulations. It is the Company's intent that the
Plan comply in all respects with Rule 16b-3 under the Securities Exchange Act of
1934 (or any successor or amended provision thereof) and any applicable
Securities and Exchange Commission interpretations thereof. If any provision of
this Plan is deemed not to be in compliance with Rule 16b-3, the provision shall
be null and void.

         18. Governing Law. The validity and construction of this Plan and the
instruments evidencing options shall be governed by the laws of the Commonwealth
of Massachusetts, without giving effect to the principles of conflicts of law
thereof.

                                       5<PAGE>
                                                                   EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made as of the 1st day of
January, 2002 (the "Effective Date"), by and between TOWER FINANCIAL
CORPORATION, an Indiana corporation (the "Company"), and DONALD F. SCHENKEL (the
"Executive").

                                    RECITALS

         1. The Company is engaged in the business of operating a bank.

         2. The Executive has demonstrated his ability to serve as President and
Chief Executive Officer of the Company.

         3. The parties desire to set forth in writing the terms and conditions
upon which the Executive's employment with the Company will continue.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and conditions set forth herein, the Company and the Executive agree
as follows:

                                    ARTICLE I
                                 EMPLOYMENT TERM

         The term of this Agreement (the "Employment Term") shall be from the
Effective Date through December 31, 2006. Notwithstanding the foregoing, the
Employment Term is subject to termination prior to the expiration thereof under
the terms and conditions set forth in Article VIII.

                                   ARTICLE II
                                   EMPLOYMENT

         During the Employment Term, the Executive shall be employed by the
Company as its President and Chief Executive Officer or in such other capacity
as shall be approved by the Board of Directors of the Company. In such capacity,
the Executive shall have the duties, authority and powers granted to the
Executive by the Company's Board of Directors from time to time. Such duties
shall include, without limitation, acting as President and Chief Executive
Officer of Tower Bank & Trust Company, a subsidiary of the Company.

<PAGE>

                                   ARTICLE III
                               DEVOTION TO DUTIES

         During the Employment Term, the Executive shall devote his full time,
attention, skill and effort to the operations of the Company and shall not
engage in any other business activity requiring any substantial amount of his
time (whether or not such business activity is pursued for gain, profit or
pecuniary advantage). With prior written approval from the Executive Committee,
the Executive may engage in other business interests which do not materially
prevent the Executive from performing his contemplated services hereunder on
behalf of Company.

                                   ARTICLE IV
                              REGULAR COMPENSATION

         The Company shall pay to the Executive as compensation for his services
and for his covenants and other obligations hereunder an annual base salary (the
"Salary") in the amount of Two Hundred Four Thousand Five Hundred Eighty Dollars
($204,580.00), payable in accordance with the regular and customary payroll
practices of the Company. The Salary may be increased from time to time by
action of the Board of Directors of the Company.

                                    ARTICLE V
                               BONUS COMPENSATION

         The Board of Directors of the Company may authorize the payment to the
Executive of additional compensation by way of salary, bonus or otherwise, as it
deems appropriate, during the term of this Agreement or any extension hereof.
All compensation shall be subject to customary withholding and other employment
taxes required with respect to compensation paid by a corporation to an
employee. Notwithstanding the foregoing, upon the establishment by the Company
of its anticipated management bonus program, the Executive shall, upon
compliance with goals set from time to time by the Board of Directors of the
Company in its sole discretion, be eligible to qualify for an annual performance
bonus equal to a minimum of twenty percent (20%) of the Executive's annual
Salary. Such annual performance bonus may be increased up to a maximum of one
hundred percent (100%) of the Executive's annual salary in the event of
extraordinary performance by the Executive in any year as determined by the
Board of Directors of the Company.

                                   ARTICLE VI
                                  STOCK OPTIONS

         The Executive shall be eligible to participate in such stock option or
incentive plans as may be adopted by the Company from time to time; provided,
however, the Company reserves the right to determine the number of options, if
any, and the terms of such grant.

                                       2
<PAGE>

                                   ARTICLE VII
                          EXPENSES AND FRINGE BENEFITS

         Section 7.01.  Fringe Benefits Generally.

         (a) The Company shall reimburse the Executive for all ordinary and
necessary business expenses incurred by him while carrying out his employment
responsibilities under this Agreement. The Executive shall be entitled to
participate in such vacation policies; medical, dental, life and disability
insurance programs; 401(k), profit sharing and any other retirement plans; and
other fringe benefit plans or programs as the Company from time to time shall
establish for its senior management and/or other full time employees, provided
he is otherwise qualified to participate in such plans or programs. The Company
retains the right to establish limits on the types or amounts of business
expenses that the Executive may incur and to abolish or alter the terms of any
fringe benefit plan or program that it may establish.

         (b) The Company shall also establish a nonqualified, unfunded defined
benefit plan for the benefit of the Executive, substantially in the form
attached hereto as Exhibit A. Executive acknowledges that he is not eligible for
employer contributions under the nonqualified defined contribution plan
established by the Company.

         Section 7.02. Additional Fringe Benefits. In addition to the fringe
benefits set forth in Section 7.01, the Executive shall be entitled to the
payment by the Company of the Executive's annual dues at the Fort Wayne Country
Club, and expenses related to the Executive's use of such Country Club for
matters related to the business of the Company. During the term of this
Agreement, the Company shall reimburse Executive for the actual annual cost he
incurs for Five Hundred Thousand Dollars ($500,000.00) in term life insurance.
The Company shall have no obligation to seek or provide such policy, but only
provide reimbursement. Further, the Company shall provide Executive with the use
of an automobile, which the Executive shall select with the consent of the
Company, and shall pay all other reasonable maintenance, expense and fuel
charges related to such vehicle. Executive shall be solely responsible for any
imputed income incurred as a result of any fringe benefits.

                                  ARTICLE VIII
                                   TERMINATION

         Section 8.01. Reasons for Termination. The Employment Term of the
Executive shall be terminated upon the occurrence of any of the following
events:

         (a) Immediately upon the death of the Executive.

         (b) At the Company's option, upon the Executive's (i) violation of a
material Company policy or failure to perform any of his material duties or
obligations under this Agreement; or (ii) upon any dishonesty or any kind of
willful misconduct of the Executive, including but not limited to, theft of or
other unauthorized personal use of Company funds. The Executive may be
terminated under paragraph 8.01(b)(i) only following thirty (30) days written
notice to the Executive explaining the basis of the termination and his failure
to cure such breach

                                       3
<PAGE>

within thirty (30) days of the date of the Company's notice. The Executive may
be terminated under paragraph 8.01(b)(ii) only following ten (10) days written
notice to the Executive of the basis for the termination and an opportunity to
dispute the same.

         (c) At the Company's option, if the Executive shall suffer a permanent
disability. For purposes of this Agreement, "permanent disability" shall be
defined as the Executive's inability through physical or mental illness or other
cause to perform the essential functions of Executive's position, with or
without reasonable accommodation, in the reasonable opinion of the Company, for
a continuous period of six (6) months during the term of this Agreement.

         (d) At the Company's option, without cause, upon thirty (30) days'
prior written notice.

         (e) At the Executive's option, without cause, at any time.

         (f) At the Executive's option, upon the Company's breach of any of its
material obligations under this Agreement or for Good Cause; provided that
Executive has given the Company at least ten (10) days' prior written notice of
the nature of such breach and the Company has failed to cure such breach within
such thirty (30) day period. For purposes herein, "Good Cause" means without the
Executive's express written consent, the assignment to the Executive of any
duties or responsibilities inconsistent with the Executive's position, or a
change in the Executive's reporting responsibilities, titles or offices as
described under Article II, or any removal of the Executive from, or any failure
to re-elect the Executive to, any such positions, except in connection with the
termination of the Executive's For Cause, or his disability, retirement or
death.

         Section 8.02. Compensation Upon Termination.

         (a) Should the employment of the Executive be terminated under
subsection (a) or (c) of Section 8.01 of this Agreement, the Company shall pay
to the Executive (or his personal representative), within ten business days
after the date of termination, a sum equal to the aggregate amount of Salary
that was paid to the Executive under this Agreement for the one (1) month period
preceding such date of termination, excluding any payments under Article V.

         (b) Should the employment of the Executive be terminated under
subsection (b) or (e) of Section 8.01 of this Agreement, the Executive shall be
paid his Salary up to the date of termination and any bonus compensation accrued
but unpaid for any prior Employment Year.

         (c) Should the employment of the Executive be terminated under
subsection (d) or (f) of Section 8.01 of this Agreement, the Company shall pay
to the Executive, within ten business days after the date of termination, a sum
equal to the aggregate amount of Salary that the Executive would be entitled to
receive under this Agreement for the balance of the Employment Term; provided,
however, that in no event shall such payment be in an amount less than two (2)
year's Salary at the then-effective rate paid to Executive.

                                       4
<PAGE>

         (d) Should the employment of the Executive be terminated under
subsection (a), (c), (d) or (f) of Section 8.01 of this Agreement, the Company
shall pay to the Executive (or his personal representative), in addition to the
Salary specified in subsection (a) or (c), as applicable, of this Section 8.02,
any bonus compensation accrued but unpaid for any prior Employment Year. Except
for a termination as a result of Executive's death, no pro-rated portion of any
bonus compensation for the current Employment Year shall be payable. In the
event of death, Executive's estate shall be eligible to receive a pro-rated
bonus, subject to the terms of the bonus program. Bonus compensation for the
prior Employment Year and, in the event of death, the current Employment Year
shall be paid within sixty (60) days after the end of such Employment Year.

         (e) Payments to the Executive under this Section 8.02 shall be
considered severance pay in consideration of the Executive's past service and in
consideration of his continued service from the date hereof. The Company may, at
its discretion, withhold from such payments any federal, state, city, county or
other taxes. In the event of the termination of the employment of the Executive
for any reason described in Section 8.01 of this Agreement, the severance pay
provided for by this Section 8.02 shall constitute the entire obligation of the
Company to the Executive and full settlement of any claim under law or in equity
that the Executive might otherwise assert against the Company or any of its
employees, officers or directors on account of such termination, except for any
compensation or other payments to which the Executive may be entitled under any
termination benefits or similar agreement then in effect between the Company and
the Executive.

         (f) In order to receive any benefit under this Section 8.02, Executive
must execute a Release Agreement in the form attached as Exhibit B.

         Section 8.03. Reimbursement for Certain Litigation Expenses. In the
event of litigation to determine whether the Executive's employment was properly
terminated under subsection (b) or (f) of Section 8.01, the prevailing party
shall be entitled to recover all reasonable costs and expenses, including
reasonable attorneys' fees, incurred in connection with such litigation.

                                   ARTICLE IX
                        CONFIDENTIAL BUSINESS INFORMATION

         The Executive agrees and covenants that all confidential information
regarding the practices and procedures of the Company and its affiliates, their
methods of marketing, know-how, trade information, trade secrets, customer or
client lists, licensing arrangements, accounts and requirements, and other
information regarding the affairs of the Company and its affiliates
(collectively, the "Confidential Business Information") shall be received and
held in the strictest confidence. The Executive agrees not to divulge any such
Confidential Business Information to any person or entity except as authorized
in the normal execution of assigned duties on behalf of the Company, without the
prior consent of the Company. The Executive further agrees to surrender to the
Company any and all documents and records in whatever form that may be in his
possession or control containing Confidential Business Information upon the
expiration or termination of the Employment Term. The provisions of this Article
IX shall survive any termination or expiration of this Agreement.

                                       5
<PAGE>

                                    ARTICLE X
                                 NON-COMPETITION

         Section 10.01. Non-Competition. During the Employment Term and for the
Non-Compete Period immediately following any termination of the Employment Term
pursuant to Section 8.01 of this Agreement (except for subsection (a) or (c) of
Section 8.01), the Executive shall not, directly or indirectly, anywhere within
a one hundred-mile radius around the City of Fort Wayne, Indiana, have any
material (defined for purposes of this Section to include any investment
representing one percent (1%) or more of the equity interest of any entity
described in this Section) investment in, or engage, directly or indirectly,
whether as an individual or sole proprietor or as owner, partner, principal,
shareholder, officer, director, manager, agent, consultant, formal or informal
advisor, or by or through the lending of any form of assistance, in any business
offering products or services the same as or competitive with the products or
services that, during the Employment Term, are (or are planned to be) offered or
supplied by the Company or its subsidiaries.

         Section 10.02. Non-Solicitation. During the Employment Term and for the
Non-Compete Period immediately following any termination of the Employment Term
pursuant to Section 8.01 of this Agreement (except for subsection (a) or (c) of
Section 8.01), the Executive shall not, directly or indirectly, (i) solicit,
take away, hire, employ or endeavor to employ any person employed by the
Company, or (ii) solicit, take away or attempt to take away any of the existing
or prospective customers or clients, vendors or licensors of the Company or any
of its affiliates as of the date of termination for the purpose of conducting
any business which directly or indirectly provides financial services similar in
nature to the financial services provided by Tower Bank & Trust Company. As used
herein, the term "prospective customers or clients" shall mean individuals or
entities whom the Company or its affiliates have contacted within the twelve
(12) months immediately preceding the termination of the Employment Term for the
purpose of conducting business with the Company or such affiliate.

         Section 10.03. Specific Enforcement. The Executive acknowledges that
any violation of any provision of this Article X by him will cause irreparable
damage to the Company, that such damage will be incapable of precise
measurement, and that, as a result, the Company will not have an adequate remedy
at law to redress the harm which such violation will cause. Therefore, in the
event of any violation of any provision of this Article by the Executive, he
agrees that, in addition to all other remedies that the Company may have at law
or in equity, the Company shall be entitled to injunctive relief, including,
without limitation, temporary restraining orders and temporary injunctions to
restrain any violation of this Article. If a court of competent jurisdiction
finds that the Executive has violated any of the restrictions set forth in this
Article, then the period of all restrictions set forth in this Article
automatically shall be extended by the number of days that the court determines
the Executive to have been in violation of such restriction. In addition to
other relief to which it shall be entitled, the Company shall be entitled to
recover from the Executive the reasonable costs and reasonable attorneys' fees
incurred by the Company in seeking enforcement of this Article. In addition, if
the Executive should breach Sections 10.01 or 10.02 as determined by a court of
competent jurisdiction, Executive shall repay any and all benefits payable under
Section 8.02 or Article XIII.

                                       6
<PAGE>

         Section 10.04. Non-Compete Period. The Non-Compete Period shall be the
longer of (i) two (2) years; or (ii) the longer period used to calculate his
severance payment under Section 8.02 or Article III.

                                   ARTICLE XI
                                CHANGE IN CONTROL

         Section 11.01. Termination After Change of Control Benefit. If within
four (4) months before or sixteen (16) months after a Change of Control of the
Company as defined in Section 11.01(a), the Company shall terminate the
Executive's employment other than pursuant to Section 8.01(a), (b) or (c) hereof
or if the Executive shall terminate his employment for Good Cause, then in any
of such events, the Company shall pay to the Executive a benefit as defined in
Section 11.01(b).

         (a) Change of Control. The term Change of Control shall have the
             following meaning:

                  (i) A reorganization, merger, consolidation or other form of
         corporate transaction or series of transactions, in each case, with
         respect to which persons who were the stockholders of the Company
         immediately prior to such reorganization, directly or indirectly, own
         less than fifty percent (50%) of the combined voting power entitled to
         vote generally in the election of directors of the reorganized, merged
         or consolidated entity's then outstanding voting securities;

                  (ii) A liquidation or dissolution of the Company;

                  (iii) The acquisition by any person, entity or "group," within
         the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
         Act of 1934, (excluding any employee benefit plan of the Company or its
         subsidiaries which acquires beneficial ownership (within the meaning of
         Rule 13d-3 promulgated under the Securities Exchange Act) of more than
         fifty percent (50%) of either the then outstanding shares of common
         stock or the combined voting power of the Company's then outstanding
         voting securities entitled to vote generally in the election of
         directors; or

                  (iv) As the result of, or in connection with, any tender or
         exchange offer, merger, consolidation or other business combination,
         sale or disposition of all or substantially all of the Company's
         assets, or contested election, or any combination of the foregoing
         transactions (a "Transaction"), the persons who were directors of the
         Company immediately before the Transaction shall cease to constitute a
         majority of the Board of Directors of the Company or any successor to
         the Company.

         (b) Amount. Upon a termination of the Executive's employment under the
circumstances described in this Section 11.01, the Executive will receive the
greater of a Change of Control Benefit equal to 2.99 times the Executive's
Salary at the date of the Change of Control or the amount payable under Section
8.02(c).

                                       7
<PAGE>

         No other benefits or amounts shall be payable under Section 8.02.

         (c) Limitation of Benefit. Notwithstanding anything to the contrary in
this Agreement, if there are payments to the Executive which constitute
"parachute payments," as defined in Section 280G of the Code, then the payments
made to the Executive shall be limited to the greater of (x) One Dollar ($1.00)
less than the amount which would cause the payments to the Executive (including
payments to the Executive which are not included in this Agreement) to be
subject to the excise tax imposed by Section 4999 of the Code, and (y) the
payments to the Executive (including payments to the Executive which are not
included in the Agreement) after taking into account the excise tax imposed by
Section 4999 of the Code. The calculations shall be done by an outside party
directed by the Company.

         (d) Release. The Executive must execute and not rescind the Release
prior to receiving any payment under this Article.

         (e) Attorney's Fees. To the extent that the Executive prevails in a
court of competent jurisdiction regarding such dispute, the Company shall
reimburse Executive his reasonable attorney's fees and costs incurred in such
action. Any amounts to be reimbursed hereunder will be paid to the Executive
within fifteen (15) days of a written consent for the same.

                                   ARTICLE XII
                                     GENERAL

         Section 12.01. Severability. Should any clause, portion or section of
this Agreement be unenforceable or invalid for any reason, such unenforceability
or invalidity shall not affect the enforceability of validity of the remainder
of this Agreement. Should any particular covenant in this Agreement be held
unreasonable or unenforceable for any reason, including, without limitation, the
time period, geographical area, and scope of activity covered by such covenant,
then such covenant shall be given effect and enforced to whatever extent would
be reasonable and enforceable.

         Section 12.02. Assignment; Successors in Interest. This Agreement,
being personal to the Executive, may not be assigned by him. The terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the successors and assigns of the Company, and the heirs, executors and personal
representatives of the Executive.

         Section 12.03. Successors of the Company. The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, by agreement in form and substance satisfactory to the Executive,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such
succession had taken place. Failure of the Company to obtain such agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle the Executive to compensation from the Company in
the same amount and on the same terms as the Executive would be entitled
hereunder if the Executive terminated the Executive's employment

                                        8
<PAGE>

for Good Reason, except that for purposes of implementing the foregoing, the
date on which any such succession becomes effective shall be deemed the Date of
Termination. As used in this Agreement, "Company" as hereinbefore and/or assets
as aforesaid which executes and delivers the agreement provided for in this
Article 12.03 or which otherwise becomes bound by all the terms and provisions
of this Agreement by operation of law.

         Section 12.04. Governing Law. This Agreement and the performance of the
parties under this Agreement shall be construed in accordance with the laws of
Indiana, and any action or proceeding that may be brought, arising out of, in
connection with, or by reason of this Agreement shall be governed by the laws of
Indiana, to the exclusion of the law of any other forum, and regardless of the
jurisdiction in which the action or proceeding may be instituted.

         Section 12.05. Waiver. Failure to insist upon strict compliance with
any of the terms, covenants or conditions of this Agreement shall not be deemed
a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any right or power hereunder at any one or more times be
deemed a waiver or relinquishment of such right or power at any other time or
times.

         Section 12.06. Modification and Entire Agreement. No modification,
amendments, extension or alleged waiver of this Agreement or any provision
thereof will be binding upon the Executive or the Company unless in writing and
signed by the Executive and a duly authorized officer of the Company. From and
after the Effective Date, this Agreement and any termination benefits agreement
or similar agreement between the Company and the Executive shall constitute the
entire employment arrangement between the Executive and the Company and shall
supersede and replace any and all prior agreements and understandings, written
or oral, relative to such employment.

         Section 12.07. Notices. All notices and other communications required
or permitted under this Agreement shall be in writing and shall be deemed to
have been properly given if delivered by hand, sent by telecopy, or mailed,
certified or registered mail with postage and fees prepaid:

         If to the Company, to:      TOWER FINANCIAL CORPORATION
                                     116 East Berry Street, Suite 100
                                     Fort Wayne, Indiana 46802

         If to the Executive, to:    DONALD F. SCHENKEL
                                     10710 Country Wood Trail
                                     Fort Wayne, Indiana 46845

or to such other person or address as the party to whom such notice or
communication is to be given shall have notified the other party in accordance
with this Section 12.06. Any mailed communication shall be deemed to have been
given on the third "business day" (such term excluding, for purposes of this
Agreement, Saturdays, Sundays, and legal holidays) after the day of mailing. Any
communication sent by telecopy shall be deemed to have been given on the date
receipt of the telecopy transmission is confirmed.

                                       9
<PAGE>

                                  ARTICLE XIII
                               TRANSITIONAL DUTIES

         (a) The parties acknowledge that the services of Executive to the
Company are significant, and an important aspect of the Company's future success
is the appropriate transfer of management duties from Executive to his
successor(s). In order to insure a smooth transition, the parties hereby agree
that the Executive shall continue to provide substantial services to the Company
and its management on a daily basis from January 1, 2007, until Executive
reaches age seventy (70). Executive shall be deemed to be a full-time employee
during this period and be paid the sum of at least Fifty Thousand Dollars
($50,000.00) per year for services rendered, unless otherwise mutually agreed to
by the parties. Notwithstanding the foregoing, either party may, with or without
cause, terminate Executive's duties under this Article XIII upon thirty (30)
days prior written notice. No further payment shall be due upon such
termination.

         (b) In the event the Company gives notice that it will not continue
Executive's services under this Article Without Cause, then the monthly Accrued
Benefit under the plan described in Section 7.01(b) shall commence within thirty
(30) days of Executive's termination.

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

                                                 TOWER FINANCIAL CORPORATION

                                                 By: /s/ Kevin J. Himmelhaver
                                                     ---------------------------
                                                     Kevin J. Himmelhaver,
                                                     Chief Financial Officer

                                                            ("Company")

                                                     /s/ Donald F. Schenkel
                                                     ---------------------------
                                                     Donald F. Schenkel

                                                            ("Executive")

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]