Document:

Employment Agreement

 Exhibit 10.3 
  

			
	

	 	 PARADIGM GENETICS, INC.
  
 EMPLOYMENT AGREEMENT
  
 For
  
 Peter C. Johnson

  
 This EMPLOYMENT
AGREEMENT (“Agreement”) is entered into as of the 29nd day of January 2004, by and between Peter C. Johnson (“Executive”) and PARADIGM GENETICS, INC. (“Company”).

  
 WHEREAS, the Company desires to compensate Executive
for his personal services to the Company; and 
  
 WHEREAS,
Executive wishes to be employed by the Company and provide personal services to the Company in return for certain compensation, 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree to the following: 
  

	1.	EMPLOYMENT BY THE COMPANY. 

  

	1.1	Title and Reporting. Executive will serve as Executive Vice President, Chief Medical Officer and report to the Company’s Chief Executive Officer.

  

	1.2	Effective Date and Term. This Agreement shall be effective upon the first full business day following the closing of a merger agreement between TissueInformatics.Inc.
(“TII”) and the Company (the “Merger Agreement”), contemplated to occur on or about March 11, 2004 (“Effective Date”). The term of this Agreement is for a period of two (2)
years. Executive’s salary and performance will be reviewed at least annually for compensation changes.  

  

	1.3	Position. Subject to terms set forth herein, the Company agrees to employ Executive in the position of Executive Vice President, Chief Medical Officer and Executive
hereby accepts such employment. During the term of his employment with the Company, Executive will devote his best efforts and all of his business time and attention (except for vacation periods as set forth herein and reasonable periods of illness
or other incapacities permitted by the Company’s general employment policies) to the business of the Company. Permitted outside activities, listed in the Attachment A, are subject to review and approval by the Chief Executive Officer.

	1.4	Duties. Executive shall be proposed to the Board to be an executive officer of the Company, and serve in an executive capacity. He shall have such duties,
responsibilities, and authority as are customarily associated with his then current title and as assigned to Executive by the Chief Executive Officer. The Chief Executive Officer has the right to assign and change Executive’s duties
commensurate with employment grade at any time. A draft of the General Responsibilities of the Executive are listed in Attachment B, subject to final approval of the Chief Executive Officer at the time of closing. 

  

	1.5	Other Employment Policies. The employment relationship between the parties shall also be governed by the general employment policies and practices of the Company,
including those relating to protection of confidential information and assignment of inventions. 

  

	2.	COMPENSATION. 

  

	2.1	Salary. Executive shall receive for services an annualized base salary of $240,000.00 subject to standard federal and state withholding requirements, payable in
accordance with the Company’s standard payroll practices. 

  

	 	a)	Signing Bonus. Executive shall receive signing bonus in the amount $30,000 payable as above on the first payday following his start date. If Executive voluntarily
terminates within the first twenty-four (24) months, Executive will reimburse the Company the entire amount on a pro-rated basis. 

  

	 	b)	Review. As part of a yearly review of performance, Executive will be eligible for a change in salary, bonus and stock options based on performance, as
determined by the Company’s Board of Directors. For 2004 only, Paradigm will review Executive’s title and compensation in July 2004 and annually thereafter. 

  

	2.2	Stock Options. As contemplated in the Merger Agreement, the Company shall assume the Executive’s option agreements (“Option”) to purchase 975,000 shares
of TII’s stock. Pursuant to the terms of the Option agreements and the Merger Agreement, the right to purchase TII shares will be converted to the right to purchase Company shares. More information concerning TII’s 2001 Stock Option Plan
and the conversion will be provided to the Executive in a separate communication. The Option shall vest according to the vesting schedule set forth in the governing conversion notice, which shall provide that the shares subject to the Option will
vest over a one-year period, with fifty percent (50%) of the shares subject to the Option vesting upon the Effective Date of this Agreement, and the remaining fifty percent (50%) over the period of one (1) year at the rate of 1/24th of the initial option grant per month. Executive agrees to execute Paradigm’s standard form of stock option agreement, if
requested, and the standard form of Lock-Up Letter Agreement as provided in the Merger Agreement. 

  
 Subject to the approval of the Company’s Board of Directors (“Board”), the Company shall grant Executive an option (“Option”)
from the former Tissue Informatics Stock 
  

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 Option Plan to purchase 100,000 shares of the Company’s common at a strike price determined on
Executive’s first day of employment. More information concerning the Stock Option Plan will be provided to Executive in a separate communication. 
  
 The Option shall vest according to the vesting schedule set forth in the governing grant notice, which shall provide that the shares subject to the Option
will vest over a three-year period, with twenty-five percent (25%) of the shares subject to the Option vesting upon the Executive’s date of hire, and another (25%) after Executive successfully completes one year of continuous service with
Paradigm, and one-forty-eighth (1/48th) of the shares subject to the Option vesting for each month of Executive’s continuous service thereafter. Executive agrees to execute Paradigm’s standard form of stock option agreement. 
  

	2.3	Performance Bonus. Executive shall be eligible to participate in a Leadership Incentive Plan (LIP) at 40 percent (40%)(at target) of his base salary (subject to
standard federal and state withholding requirements) as a grade 49 employee based on meeting goals as defined at the beginning of the plan year. Sample terms and conditions of this incentive opportunity are set forth in the attached 2002 Leadership
Incentive Plan (LIP) [Attachment C], for his reference. The 2004 Leadership Incentive Plan (LIP) document will be provided to Executive once approved by the Board of Directors. Payment of any earned bonus shall be subject to the satisfaction of
mutually agreed upon performance goals. The parties shall set forth these goals in a separate written document within a reasonable period of time following the execution of this Agreement. Based on recommendations of the Chief Executive Officer, the
Company’s Board of Directors, in its sole discretion, shall determine the extent to which Executive has achieved the performance goals upon which Executive’s bonus is based. 

  

	2.4	Standard Company Benefits. Executive shall be entitled to all rights and benefits for which he is eligible under the terms and conditions of the standard Company
benefits and compensation practices which may be in effect from time to time and provided by the Company to its employees generally. These benefits include relocation assistance for a period of up to twenty-four (24) months.

  

	2.5	Expense Reimbursement. The Company will reimburse Executive for reasonable business expenses in accordance with the Company’s standard travel and expense
reimbursement policy. This will include but not limited to professional journals and subscriptions deemed reasonable and appropriate by Executive and Chief Executive Officer, including Executive’s travel to and from North Carolina for Company
business, for the duration of the Agreement. 

  

	2.6	Paid Time Off. Executive will be granted an additional 80 hours of unused vacation from TII for 2004, to be taken with forty-five (45) days of Closing.

  

	3.	OUTSIDE ACTIVITIES. 

  

	3.1	Other Employment/Enterprise. Except with the prior written consent of the Chief 

  

 Page 3 of 10 

 Executive Officer, Executive will not, while employed by the Company, undertake or engage in any other
employment, occupation or business enterprise, other than ones in which Executive is a passive participant or investor. Executive may engage in civic and not-for-profit activities so long as such activities do not materially interfere with the
performance of his duties hereunder. Current approved activities are in Attachment A. Future involvements are to be agreed by Chief Executive Officer. 
  

	3.2	Conflicting Interests. Except as permitted by Section 3.3, while employed by the Company, Executive agrees not to acquire, assume or participate in, directly or
indirectly, any position, investment or interest known by him to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise. 

  

	3.3	Competing Enterprises. While employed by the Company, except on behalf of the Company, Executive will not directly or indirectly, whether as an employee, officer,
director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation, firm,
partnership or other entity whatsoever which compete directly with the Company, throughout the world, in any line of business engaged in (or planned to be engaged in) by the Company; provided, however, that anything above to the contrary
notwithstanding, he may own, as a passive investor, securities of any competitor corporation, so long as his direct holdings in any one such entity shall not in the aggregate constitute more than 1% of the voting stock of such corporation.

  

	4.	FORMER EMPLOYMENT. 

  

	4.1	Former Agreement Terminated. Except as expressly provided for in the Agreement, Executive acknowledges that his employment agreement with TII is terminated and
shall have no further force or affect upon the closing of the Merger Agreement. 

  

	4.2	No Conflict With Existing Obligations. Executive represents that his performance of all the terms of this Agreement and as an employee of Paradigm does not and will
not breach any agreement or obligation of any kind made prior to his employment by Paradigm, including agreements or obligations he may have with prior employers or entities for which he has provided services. Executive has not entered into, and
agrees he will not enter into, any agreement or obligation either written or oral in conflict herewith. 

  

	4.3	No Disclosure of Confidential Information. If, in spite of the second sentence in Section 4.2, Executive should find that confidential information belonging to any
former employer might be usable in connection with Paradigm’s business, Executive will not intentionally disclose to Paradigm or use on behalf of Paradigm any confidential information belonging to any of Executive’s former employers
(except in accordance with agreements between Paradigm and any such former employer); but during Executive’s employment by Paradigm, he will use in the performance of his duties all information which is generally known and used by persons with
training and experience comparable to his own and all information which is common knowledge in the industry or otherwise legally in the public domain. 

  

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	5.	TERMINATION OF EMPLOYMENT. The parties acknowledge that Executive’s employment with Paradigm is at-will. The provisions of Sections 5.1 through 5.7 govern the
amount of compensation, if any, to be provided to Executive upon termination of employment and do not alter this at-will status. 

  

	5.1	Termination Without Cause. The Chief Executive Officer and Compensation Committee of the Board shall have the right to terminate Executive’s employment with the
Company at any time without Cause by giving notice as described in Section 5.6 of this Agreement. 

  

	 	a)	In the event Executive’s employment is terminated by the Company without Cause or for a reason other than Executive’s death, disability or cessation of the Company’s
business pursuant to Section 5.5 below, Paradigm will continue to pay Executive his salary at the date of termination (less applicable deductions and withholdings), and provide his healthcare benefits in effect on the date of his termination through
reimbursement of COBRA expense (less applicable employee premium sharing amounts) for a maximum time period of up to twelve (12) months following the Executive’s final date of employment. These payments will only be made if: 1) Executive
executes a general release of all claims against Paradigm, including but not limited to language waiving any and all claims Executive has or has had against Paradigm or relating to any event or claim occurring prior to the date of the release, any
state law claims and claims under federal employment law statutes, or any claims relating to his employment by or separation from Paradigm and language including a confidentiality and non-disparagement provision with language acceptable to the
Company no later than twenty-one (21) days after the date of termination (or within 45 days of the date of termination if the separation is subject to the Older Workers Benefit Protection Act; the parties agree that the determination of whether this
Act applies will be made solely by Paradigm), and 2) for the first twelve (12) months of employment, should such separation occur, Executive must use diligent documented efforts to obtain other employment, which must be documented in detail monthly
in writing to the Company’s VP, Human Resources. Executive will only receive the salary and benefits as set forth above during this maximum twelve (12) month-period as long as he is unable to secure comparable regular, full time employment or a
consulting engagement lasting for more than six (6) months at a commensurate level of compensation. To the extent compensation received as a consultant is less than compensation received prior to separation, the Company shall offset against amounts
otherwise due Executive the foregoing amounts of compensation, and pay the difference to Executive. 

  
 Executive shall have an obligation to notify the Company of any positions he accepts in any capacity during the applicable severance period. Executive
must submit written resignation of any committee seat, regular or ex-officio. The parties agree that Paradigm’s Vice President of Human Resources will determine and make the final decision on whether Executive has made diligent efforts to
obtain other employment, 
  

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 and receive benefits, under this paragraph. For the period following the first twelve (12) months of
employment, Executive need not report employment efforts and the contingency of engaging in good faith efforts to seek other employment is waived. 
  

	 	b)	Executive shall not receive severance pay or continuation of benefits unless and until the above-referenced release of all claims becomes effective, and can no longer be revoked
under its terms. 

  

	 	c)	If the Company is acquired or a change of control of ownership with respect to the Company (as defined below) occurs at anytime during the twelve (12) month severance period,
described above, all amounts of salary and the cash equivalent of the cost of COBRA expense for the remainder of the twelve (12) month period shall be due and payable to Executive in full. 

  

	 	d)	If Paradigm is acquired or a change of control of ownership with respect to Paradigm (as defined below) occurs, Paradigm will increase two-fold for each option grant the amount of
stock options otherwise vested effective immediately prior to the closing of such a transaction up to a maximum of 100%. If position redundancy occurs within twelve (12) months of a change of control, Executive is entitled to a full twelve (12)
months of severance pay on a non-contingent basis. 

  

	 	e)	“Change of Control” means the occurrence of any of the following events: a) Ownership: a “Person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of Paradigm representing 50% or more of the total voting power represented by
Paradigm’s then outstanding voting securities (excluding for this purpose Paradigm or its Affiliates or any employee benefit plan of Paradigm) pursuant to a transaction or a series of related transactions which the Board of Directors does not
approve; or b) Merger/Sale of Assets: a closing of a merger or consolidation of Paradigm whether or not approved by the Board of Directors, other than a closing of a merger or consolidation which would result in the voting securities of Paradigm
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) at least 80% of the total voting power represented
by the voting securities of Paradigm or such surviving entity or parent of such corporation outstanding immediately after such merger or consolidation, upon the sale or disposition by Paradigm of all or substantially all of Paradigm’s assets.

  

	5.2	Termination for Cause. 

  

	 	a)	The Chief Executive Officer and the Compensation Committee of the Board shall have the right to terminate Executive’s employment with the Company at any time for Cause by
giving notice as described in Section 6.6 of this Agreement. 

  

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	 	b)	“Cause” for termination shall mean: a) Executive’s material breach of this Agreement, including willful and continued failure to perform his duties hereunder
for thirty (30) days after a written demand for performance is delivered to Executive on behalf of the Company which specifically identifies the manner in which it is alleged that the Executive has not substantially performed his duties and
Executive fails to correct said deficiencies; b) conviction of, or pleading guilty or nolo contendere to, a felony or other crime involving theft, fraud or moral turpitude; c) drug or alcohol abuse; d) Executive’s refusal to abide by or comply
with the appropriate directives of the Board tied to reasonable allowance; e) Executive’s dishonesty, fraud, or misconduct with respect to the business affairs of the Company, including, without limitation, fraud, misappropriation or
embezzlement; f) intentional damage of any property worth in excess of $1,000 of the Company; g) conduct by Executive which demonstrates gross unfitness to serve or h) any violation of Paradigm rules or policies for which termination is the normal
discipline based on policy or past practice. 

  

	 	c)	In the event Executive’s employment is terminated at any time with Cause, he will not receive severance pay, accelerated vesting of stock options, or any other compensation or
benefits as the result of his termination. 

  

	5.3	Voluntary or Mutual Termination. 

  

	 	a)	Executive may voluntarily terminate his employment with the Company at any time by giving notice as described in Section 5.6. 

  

	 	b)	In the event Executive voluntarily terminates his employment, he will not receive severance pay, further accelerated vesting of stock options, or any other compensation or benefits
as the result of his termination. 

  

	5.4	Termination for Inability to Regularly Perform Duties. 

  

	 	a)	The Company’s Chief Executive Officer may terminate Executive in the event of any illness, disability or other physical or mental incapacity in such a manner that Executive is
physically rendered unable regularly to perform the essential functions of his job duties hereunder. For a period of ninety (90) days, with or without reasonable accommodation, as validated by a certified physician mutually agreed upon by the
Company and Executive. In the event mutual agreement cannot be timely reached, the Company shall select the physician. 

  

	 	b)	The Company’s Chief Executive Officer shall make the determination regarding whether Executive is unable regularly to perform his duties as described in subsection (a) above.

  

	 	c)	In the event Executive’s employment is terminated at any time for inability to regularly perform duties as described in subsection (a) above, he will not receive severance pay,
accelerated vesting of stock options, or any other compensation or benefits as the result of his termination. 

  

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	5.5	Dissolution, Liquidation or Insolvency of the Company. Notwithstanding the above, in the event Executive’s employment is terminated by the Company in connection
with or as a result of the liquidation, dissolution, insolvency or other winding up of the affairs of the Company without the establishment of a successor entity to the Company, the Company shall have no obligation to provide severance or further
financial consideration to Executive, including a performance bonus, except for any reasonable expense reimbursements or base salary that Executive has accrued and earned at the time of such termination. 

  

	5.6	Notice: Effective Date of Termination. Termination of Executive’s employment pursuant to this Agreement shall be effective on the earliest of:

  

	 	a)	immediately after Executive, for any reason, gives written notice to the Company’s Chief Executive Officer of his termination. 

  

	 	b)	immediately upon the Company’s Chief Executive Officer or his designee giving written notice to Executive of his termination for Cause, without Cause or as a result of an event
listed in Section 5.4 or 5.5 above; 

  

	5.7	Restrictive Covenants. Executive acknowledges and recognizes that the Company is involved in a highly competitive business, and that the Executive in the course of his
Employment hereunder, will be privy to trade secrets and to other highly confidential proprietary information. The Executive accordingly agrees that during the Employment Term and for the longer of one (1) year after termination of his Employment
hereunder, or for any period during which he is receiving severance payments hereunder. 

  

	 	a)	Non-Compete. Executive will not engage in any competitive activity. “Competitive Activity” means: a) directly or indirectly, engaging, assisting or
participating in, in whatever capacity, any business, firm, corporation, or organization that directly competes with the business engaged or hereafter engaged in by the Company; b) the sale, trade, research, service or production or attempted sale,
trade, research, service or production of products or services which are direct competitor research, services or products to the research, services or products produced, sold or designed by the Company. In case of doubt on the part of either party
in a given circumstance, and whether before or after Executive’s separation from the Company, Executive and the Chief Executive Officer will enter into good faith discussions in an attempt to reach a resolution of any related issues.

  

	 	b)	Non-Solicitation (Business). Executive will not, directly or indirectly, for self or on behalf of another person or entity, solicit or attempt to obtain business from,
accept business from, or do business with or service, or directly or indirectly aid or assist anyone else in the solicitation or acceptance of business from, any of the Company’s customers, prospective customers or suppliers in the three
Competitive Activity categories defined in Section 5.7 a). By way of example and not limitation, the terms “customers,” “prospective customers,” and “suppliers” as used in this Section include 

 

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 the individual people with whom the Executive personally had contact during the final two (2) years of
employment, as well as the entities that employed those individuals. Any exception to 5.7 must be made in writing by the Company’s Chief Executive Officer. 
  

	 	c)	Non-Solicitation (Employees). Executive will not directly or indirectly, for self or on behalf of another person or entity, induce or attempt to induce any Company
employee to terminate employment, or hire or participate in the hiring or interviewing of any Company employee for or by another employer. Executive will not directly or indirectly assist other in engaging in any of the activities in which Executive
is prohibited from engaging by this provision; accordingly, by way of example, Executive will not provide names or other information about the Company’s employees for the purpose of assisting others to hire such employees, and will not provide
information to a Company employee about any employer or any company or entity affiliated with you or your employer for the purpose of assisting that Company employee in finding employment with such entity. For purposes of this Section, a
“Company employee” means any person who was employed by the Company within one year of the date of any action of Executive that violates this Section. 

  

	 	d)	Interpretation. It is expressly understood and agreed that a) although Executive and the Company consider the above restrictions to be reasonable, if a final judicial
determination is made by a court or other tribunal of competent jurisdiction that any restriction contained in the Agreement is unenforceable, this Agreement shall not be rendered void but shall be deemed to be enforceable to such maximum extent as
such court or tribunal may determine or indicate to be enforceable, and b) if any restriction contained in this Agreement is determined to be unenforceable and such restriction cannot be amended so as to make I enforceable, such finding shall not
affect the enforceability of any of the other provision or restrictions contained herein. 

  

	6.	GENERAL PROVISIONS. 

  

	6.1.	Notices. Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery (including personal delivery by hand,
telecopier, or telex) or the third day after mailing by first class mail, to the Company at its primary office location and to Executive at his address as listed on the Company payroll. 

  

	6.2	Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other
jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein. 

  

	6.3	Waiver. If either party should waive any breach of any provisions of this Agreement, he or it shall not thereby be deemed to have waived any preceding or succeeding
breach of the same or any other provision of this Agreement. 

  

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	6.4	Complete Agreement. This Agreement and its attachments constitute the entire agreement between Executive and the Company. This Agreement is the complete, final and
exclusive embodiment of their agreement with regard to this subject matter and supercedes any prior oral discussions or written communications and agreements. This Agreement is entered into without reliance on any promise or representation other
than those expressly contained herein, and it cannot be modified or amended except in writing signed by the President and Chief Executive Officer of the Company. 

  

	6.5	Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken
together will constitute one and the same Agreement. 

  

	6.6	Headings. The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

  

	6.7	Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective
successors, assigns, heirs, executors and administrators, except that Executive may not assign any of his duties hereunder and he may not assign any of his rights hereunder without the written consent of the Company, which shall not be withheld
unreasonably. 

  

	6.8	Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of North Carolina.
Executive expressly consents to the jurisdiction of the state and federal courts for Durham County, North Carolina, for all actions arising out of or relating to this Agreement. 

  
 IN WITNESS WHEREOF, the parties have executed this Agreement on the
day and year first below written. 
  

			
	 Paradigm Genetics, Inc.

		
	 By:
	 	 /s/    Heinrich
Gugger            

	For Paradigm Genetics, Inc.
		
	 Date:
	 	 January 29, 2004            

  

	
	 /s/    Peter C. Johnson

	 Peter C. Johnson

	
	 Date: January 29, 2004

  

 Page 10 of 10Exhibit 10.1

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT OF JAMES OBRIEN 
  
 This Employment Agreement is entered into as of the date of the last signature affixed hereto, by and between Millennium
Capital, Inc. d/b/a Millennium Bank Mortgage Company, a Virginia corporation (“Millennium Mortgage” or “the Company”), and James O’Brien (“Executive”). 
  
 In consideration of the mutual promises and covenants set forth herein, and other good and valuable consideration, the
sufficiency of which is hereby acknowledged, Millennium Mortgage and Executive hereby agree as follows: 
  

	1.	Position of Employment. The Company will employ the Executive in the position of President of Millennium Mortgage and, in that position, Executive will report to the CEO of
Millennium Mortgage’s parent company, Millennium Bank, N.A. (“Millennium Bank”). The terms and conditions of the Executive’s employment shall, to the extent not addressed or described in this Employment Agreement, be governed by
the Company’s Personnel Policies and Procedures Manuals and existing practices. In the event of a conflict between this Employment Agreement and the Company’s Personnel Policies and Procedures Manuals or existing practices, the terms of
this Agreement shall govern. 

  

	2.	Term of Employment. Executive’s employment with the Company shall begin on January 02, 2004, and shall continue for a period of 3 years (“Initial Term”) or
until terminated by one of the parties in accordance with the terms of Section 5 below. The parties shall engage in good faith discussions prior to the end of the Initial Term to negotiate an extension of the Agreement. If no extension has been
agreed to at the end of the Initial Term, Executive’s employment shall end or may, at the option of both parties continue on an at-will basis.  

  

	3.	Compensation and Benefits. 

  

	 	3.1	Base Salary. Executive shall receive a Base Salary of $1,000 per month, payable on the Company’s normal payroll schedule. The terms under which such salary shall be paid
shall be set forth on Addendum A to this Agreement 

  

	 	3.2	Commissions: Executive shall be entitled to receive commissions in compensation for his services hereunder. The amount of commissions and the terms under which such
commissions shall be paid shall be set forth on Addendum A to this Agreement. 

  

	 	3.3	Benefits. Executive will be entitled to participate in other benefits as are available to similarly situated executives of Millennium Mortgage contingent upon
Executive’s payment to Millennium Bank of the full cost of such participation. 

  

	4.	Duties and Performance. The Executive acknowledges and agrees that he is being offered a position of employment by the Company with the understanding that the Executive
possesses a unique set of skills, abilities, and experiences which will benefit Millennium Mortgage, and he agrees that his continued employment with the Company, whether during the term of this Employment Agreement or thereafter, is contingent upon
his successful performance of his duties in his position as noted below, or in such other position to which he may be assigned. 

	 	4.1	Executive shall render to the very best of Executive’s ability, on behalf of Millennium Mortgage, services to and on behalf of Millennium Mortgage, and shall undertake
diligently all duties assigned to him by Millennium Mortgage. 

  

	 	4.2	Executive shall devote his full time, energy and skill to the performance of the services in which Millennium Mortgage is engaged, at such time and place as Millennium Mortgage may
direct. Executive shall not undertake, either as an owner, director, shareholder, Executive or otherwise, the performance of services for compensation (actual or expected) for any other entity without the express written consent of the Board of
Directors of Millennium Capital. 

  

	 	4.3	Executive shall faithfully and industriously assume and perform with skill, care, diligence and attention all responsibilities and duties connected with his employment on behalf of
Millennium Mortgage. 

  

	 	4.4	Executive is specifically charged with the responsibility for establishing and growing a retail and wholesale mortgage lending practice with a goal stated in his annual budget in
loan volume and profitability monthly. Addendum B sets forth the financial arrangements and understanding pertaining to fees and the cost of capital between Millennium Mortgage and Millennium Bank. 

  

	5.	Termination of Employment. Executive’s employment with the Company may be terminated, prior to the expiration of the term of this Employment Agreement, in accordance
with any of the following provisions:  

  

	 	5.1	Termination by the Company Without Cause. Millennium Mortgage may terminate Executive’s employment without cause at any time during the term of this Agreement by giving
the Executive nine (9) months’ prior notice of such termination, during which period Executive will continue to receive Base Salary and Commissions and benefits to which Executive would normally be entitled under the terms of this Agreement.
During the notice period, Executive must fulfill all of Executive’s duties and responsibilities, continue to meet annual budget numbers for profit and expense and use Executive’s best efforts to train and support Executive’s
replacement, if any. Failure of Executive to comply with this requirement may result in Termination for Cause described below. 

  
 Notwithstanding the foregoing, Millennium Mortgage, at its option, may instruct Executive during such period not to undertake any active duties on behalf
of Millennium Mortgage, in which case Executive shall be entitled to receive for each month in the remainder of the notice period the greater of either earned Commission to which the Executive would be entitled under Section 3.1 or monthly
Commissions in the amount of his “Average Monthly Commission,” which is defined as the average monthly commission Executive earned during the completed 6 month period (or, if less, the period between the commencement of employment and the
active employment separation date) immediately prior to the month in which the Executive was placed on non-working notice. Executive also may continue normal participation in Millennium Mortgage benefit plans at his own cost. 
  

 2 

 All payments and benefits referenced herein which may be paid to Executive as a result of a Termination
Without Cause are conditioned upon and subject to the Executive executing a valid general release and waiver, waiving all claims the Executive may have against Millennium Mortgage, Millennium Bank, and all of their respective subsidiaries,
affiliates, directors, officers, employees, shareholders and agents other than rights of indemnification, rights to directors and officers insurance, and any rights to accrued benefits under the employee benefit plans (including equity plans),
unless otherwise provided under the terms of those plans. 
  

	 	5.2	Termination by the Company For Cause. The Company may, at any time and without notice, terminate the Executive for “cause”. Termination by the Company of the
Executive for “cause” shall include but not be limited to termination based on any of the following grounds: (a) fraud, misappropriation, embezzlement or act of similar dishonesty; (b) conviction of a felony involving moral turpitude; (c)
illegal use of drugs or excessive use of alcohol in the workplace; (d) intentional and willful misconduct that may subject the Company to criminal or civil liability; (e) breach of the Executive’s duty of loyalty, including the diversion or
usurpation of corporate opportunities properly belonging to the Company; (f) willful disregard of Company policies and procedures; (g) insubordination or deliberate refusal to follow the written instructions of the Board or the CEO of Millennium
Bank. 

  

	 	5.3	Termination By Death or Disability. The Executive’s employment and rights to compensation under this Employment Agreement shall terminate if the Executive is unable to
perform the duties of his position due to death or disability, and the Executive’s heirs, beneficiaries, successors, or assigns shall be entitled only to receive any Commission fully earned prior to the date of the Executive’s death or
incapacitation due to disability and shall not be entitled to any other compensation or benefits, except: (a) to the extent specifically provided in this Employment Agreement; (b) to the extent required by law; or (c) to the extent that such benefit
plans or policies under which Executive is covered provide a benefit to the Executive’s heirs, beneficiaries, successors, or assigns. 

  

	6.	Confidential Information. 

  

	 	6.1	Protection of Confidential Information. Executive agrees that at all times during his employment and subsequent to his employment, he shall hold in strictest
confidence and trust any Confidential Information of Millennium Mortgage, Millennium Bank, or any of their associated affiliates, that is disclosed to Executive or to which Executive has access, regardless of the manner or media in which the
information is retained or recorded. However, Executive shall not be required to treat as confidential any of the Confidential Information to which one of the following applies: (i) through no violation of this Agreement by Executive, the
information becomes available publicly, or (ii) the information is in the public domain at the time of the disclosure. Executive further agrees that after termination of employment for any reason, Executive shall not take and shall

  

 3 

 promptly surrender to Millennium Mortgage all copies in Executive’s possession, custody or control,
in whatever form including electronic, of any materials containing Millennium Mortgage’s Confidential Information. 
  

	 	6.2	Confidential Information Defined. For purposes of this Section 6, “Confidential Information” shall mean any of the following information where such
information is not generally known or available to the public: 

  

	 	a.	information pertaining to Millennium Mortgage’s present or future prices, discount and pricing policies and procedures, sales and marketing goals, strategies, and techniques;

  

	 	b.	information pertaining to Millennium Mortgage’s network and Millennium Mortgage’s computer software, hardware, firmware and documentation, including but not limited to
applications, operating systems and any related source or object codes, flowcharts, algorithms, coding sheets, routines, subroutines, compilers, assemblers and designs; 

  

	 	c.	information pertaining to software, hardware, and firmware created, developed, produced, or utilized by Millennium Mortgage, including, but not limited to, any such software,
hardware, firmware, created, developed, produced, or utilized by me during the period of or arising out of Executive’s services to Millennium Mortgage; 

  

	 	d.	the compilation of financial, purchasing and other data or information concerning Millennium Mortgage’s business; 

  

	 	e.	compiled lists or documents identifying Millennium Mortgage’s Customers or containing information describing the nature of Millennium Mortgage’s relationships with these
Customers; provided, however, that this provision shall not apply to with respect to pre-existing customer relationships or contacts which Executive had established prior to employment with Millennium Mortgage. 

  

	 	f.	confidential, proprietary or trade secret information submitted by Millennium Mortgage’s suppliers, consultants or co-venturers to Millennium Mortgage for study, evaluation or
use under the terms of an implicit or explicit non-disclosure agreement; and 

  

	 	g.	other Millennium Mortgage proprietary information not generally known to the public (including information about Millennium Mortgage’s operations, personnel, products, or
services), which, if misused or disclosed, could have a reasonable likelihood of adversely affecting the business of Millennium Mortgage. 

  

	7.	Representations and Acknowledgments 

  
 The Executive hereby represents and warrants to Millennium Mortgage that the execution, delivery and performance of this Agreement does not violate any
provision of 
  

 4 

 any agreement which the Executive has with any former employer (a “Former Employer”). The
Executive further acknowledges that to the extent the Executive has an obligation to the Former Employer not to disclose certain confidential information, Executive intends to honor such obligation and Millennium Mortgage hereby agrees not to
knowingly request the Executive to disclose such confidential information. 
  

	8.	General Provisions. 

  

	 	8.1	Notices. All notices and other communications required or permitted by this Agreement to be delivered by Millennium Mortgage or Executive to the other party shall be
delivered in writing to the address shown below, either personally, by facsimile transmission or by registered, certified or express mail, return receipt requested, postage prepaid, to the address for such party specified below or to such other
address as the party may from time to time advise the other party, and shall be deemed given and received as of actual personal delivery, on the first business day after the date of delivery shown on any such facsimile transmission or upon the date
or actual receipt shown on any return receipt if registered, certified or express mail is used, as the case may be. 

  

			
	Millennium Mortgage Inc.	 	Millennium Capital, Inc.
	 	 	Attn: Corporate Secretary
	 	 	1601 Washington Plaza
	 	 	Reston, Virginia 20190
		
	Executive:	 	James O’Brien
	 	 	11758 Valley Ridge
	 	 	Fairfax, VA 22033

  

	 	8.2	Amendments and Termination: Entire Agreement. This Agreement may not be amended or terminated except by a writing executed by all of the parties hereto. This Agreement
constitutes the entire agreement of Millennium Mortgage and Executive relating to the subject matter hereof and supersedes all prior oral and written understandings and agreements relating to such subject matter.. 

  

	 	8.3	Successors and Assigns. The rights and obligations of the parties hereunder are not assignable to another person without prior written consent; provided, however, that
Millennium Mortgage my assign its rights and obligations hereunder to a wholly-owned subsidiary without obtaining Executive’ s consent. 

  

	 	8.4	Severability: Provisions Subject to Applicable Law. All provisions of this Agreement shall be applicable only to the extent that they do not violate any applicable law, and
are intended to be limited to the extent necessary so that they will not render this Agreement invalid, illegal or unenforceable under any applicable law. If any provision of this Agreement or any application thereof shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of other provisions of this Agreement or of any other application of such provision shall in no way be affected thereby. 

  

 5 

	 	8.5	Waiver of Rights. No waiver by Millennium Mortgage or Executive of a right or remedy hereunder shall be deemed to be a waiver of any other right or remedy or of any
subsequent right or remedy of the same kind. 

  

	 	8.6	Definitions, Headings, and Number. A term defined in any part of this Employment Agreement shall have the defined meaning wherever such term is used herein. The headings
contained in this Agreement are for reference purposes only and shall not affect in any manner the meaning or interpretation of this Employment Agreement. Where appropriate to the context of this Agreement, use of the singular shall be deemed also
to refer to the plural, and use of the plural to the singular. 

  

	 	8.7	Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original but both of which taken together shall constitute but one and
the same instrument. 

  

	 	8.8	Governing Laws and Forum. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the Commonwealth of Virginia. The parties hereto further
agree that any action brought to enforce any right or obligation under this Agreement shall be subject to the exclusive jurisdiction of the courts of the Commonwealth of Virginia. 

  
 IN WITNESS WHEREOF, Millennium Capital, Inc. d/b/a Millennium Bank Mortgage
Company and Executive have executed and delivered this Agreement as of the date written below. 
  

									
	EXECUTIVE	 	 	 	MILLENNIUM CAPITAL, INC. d/b/a
	 	 	 	 	MILLENNIUM BANK MORTGAGE COMPANY
					
	 /s/ James O’Brien

	 	 1-6-04

	 	By:	 	 /s/ Carroll C. Markley

	 	 1-6-04

	James O’Brien	 	Date	 	 	 	Carroll C. Markley	 	Date
	 	 	 	 	 	 	Chairman of the Board	 	 

  

 6 

 Addendum A 
  
 Financial Arrangements between Millennium Mortgage and Millennium Bank 
  

	A.	Fees. On loans originated by Millennium Mortgage that are closed by Millennium Bank, Millennium Mortgage will pay the following fees 

  

	

					
	i.	 	Wholesale loans	 	$500.00 (no fee for 2nd’s done in conjunction with
1st)
	ii.	 	Retail loans	 	$500.00 (no fee for 2nd’s done in conjunction with
1st)
	iii.	 	Stand alone 2nd	 	$500.00
	iii.	 	Wire fees	 	$25.00
	iv.	 	Other fees as they occur. Such fees will be pass through fees only, including but not limited to: credit reports, wire fees, appraisals

  

	B.	Interest on Borrowed funds. The initial interest rate charged to Millennium Mortgage by Millennium Bank shall be 2.5% over the Bank’s cost of funds on the outstanding
amount. The Bank may modify this rate by giving Millennium Mortgage 15 days notice in writing of its intent to change the rate charged by the Bank to Millennium Mortgage for capital. 

  

	C.	Millennium Bank Mortgage Expenses. The expenses to run Millennium Mortgage, including but not limited to: rent, entertainment, training, fixed assets, equipment, are to be
expensed to its responsibility center. 

  

	D.	Compensation of Millennium Bank Mortgage Employees. Executive is to pay all employees of Millennium Bank Mortgage in accordance with their individual employment agreements
and commission schedules, from Millennium Bank Mortgage’s profit and responsibility center. 

  

	E.	Benefits for Millennium Bank Mortgage Employees. Executive is to reimburse Millennium Bank for all employee benefits that will be made available to said employees, as
governed by these individual plan documents, at 100% of the premium on a monthly basis. 

  

	F.	Executive’s Compensation and Benefits. Executive is to earn the net income of this consolidated responsibility center after the above expenses, after taxes, before
Millennium Bank’s inter-company allocations. This compensation includes, but is not limited to, Executive’s monthly salary of $1,000 and 100% of the monthly premiums for employee benefits in which Executive participates, that are
reimbursed to Millennium Bank.  

  

									
	EXECUTIVE	 	MILLENNIUM CAPITAL, INC. d/b/a
	 	 	MILLENNIUM BANK MORTGAGE COMPANY
					
	 /s/ James O’Brien

	 	 1-6-04

	 	By:	 	 /s/ Carroll C. Markley

	 	 1-6-04

	James O’Brien	 	Date	 	 	 	Carroll C. Markley	 	Date
	Chairman of the Board	 	 	 	 	 	 	 	 
			
	 	 	 	 	MILLENNIUM CAPITAL, INC. d/b/a
	 	 	 	 	MILLENNIUM BANK MORTGAGE COMPANY
					
	 	 	 	 	By:	 	 /s/ Janet A. Valentine

	 	 1-7-04

	 	 	 	 	 	 	Janet A. Valentine	 	Date
	 	 	 	 	 	 	Chief Financial Officer	 	 

  

 7 

 Addendum B 
  
 Commissions Structure of Participation Loan Relationships 
  
 For any new or existing participation line relationships generated by the Executive for the Company, similar to that of HSTM, Executive will
be compensated based on the following formula: 
  

	 	•	Twenty (20) percent of the net income received by the Bank, for that specific relationship, on a monthly basis 

  

	 	•	Commissions will be payable on all loan products on which the Company is approved 

  

	 	•	Commission is payable to Executive the month following Company’s receipt of net income on the participation relationship 

  

	 	•	Any errors or chargebacks in participation relationship loans will result in deductions/offset from any of Executive’s unpaid earned commissions 

  

	 	•	Total balances allowed in participation line relationships cannot exceed monthly target approved by ALCO committee 

  

									
	EXECUTIVE	 	MILLENNIUM CAPITAL, INC. d/b/a
	 	 	MILLENNIUM BANK MORTGAGE COMPANY
					
	 /s/ James O’Brien

	 	  

	 	By:	 	 /s/ Carroll C. Markley

	 	  

	James O’Brien	 	Date	 	 	 	Carroll C. Markley	 	Date
	 	 	 	 	 	 	Chairman of the Board	 	 
			
	 	 	 	 	MILLENNIUM CAPITAL, INC. d/b/a
	 	 	 	 	MILLENNIUM BANK MORTGAGE COMPANY
					
	 	 	 	 	By:	 	 /s/ Janet A. Valentine

	 	  

	 	 	 	 	 	 	Janet A. Valentine	 	Date
	 	 	 	 	 	 	Chief Financial Officer	 	 

  

 8

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