DEF 14A
1
gb2002proxystmt.txt
GLEN BURNIE 2002 PROXY STATEMENT
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant |X| Filed by a Party other than the
the Registrant |_|
Check the appropriate box:
|_| Preliminary Proxy Statement |_| Confidential, for Use of the
Commission Only (as permitted
|X| Definitive Proxy Statement by Rule 14a-6(e)(2))
|_| Definitive Additional Materials
|_| Soliciting Material Pursuant to
Rule 14a-11(c) or Rule 14a-12
Glen Burnie Bancorp
(Name of Registrant as Specified in Its Charter)
N/A
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|X| No fee required.
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and
0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
|_| Fee paid previously with preliminary materials.
|_| Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which
the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the Form or Schedule
and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
[GLEN BURNIE BANCORP LETTERHEAD]
April 9, 2002
Dear Fellow Stockholder:
You are cordially invited to attend the 2002 Annual Meeting of Stockholders
of Glen Burnie Bancorp (the "Company") to be held at La Fontaine Bleu, 7514
Ritchie Highway, Glen Burnie, Maryland on Thursday, May 9, 2002 at 2:00 p.m.
The accompanying notice and proxy statement describe the formal business to
be transacted at the meeting which includes the election of directors and
authorization for the Board of Directors to select the Company's auditors for
the 2002 fiscal year.
Enclosed with this proxy statement are a proxy card and an Annual Report to
Stockholders for the 2001 fiscal year. During the meeting, we will report on the
operations of the Company's wholly-owned subsidiary, The Bank of Glen Burnie.
Directors and officers of the Company as well as representatives of Trice Geary
& Myers LLC, our independent auditors, will be present to respond to any
questions the stockholders may have.
ON BEHALF OF THE BOARD OF DIRECTORS, WE URGE YOU TO SIGN, DATE AND RETURN
THE ACCOMPANYING PROXY CARD AS SOON AS POSSIBLE EVEN IF YOU CURRENTLY PLAN TO
ATTEND THE ANNUAL MEETING. This will not prevent you from voting in person but
will assure that your vote is counted if you are unable to attend the meeting.
Your vote is important, regardless of the number of shares you own. If you plan
to attend the meeting, please check the box on the enclosed form of proxy.
Sincerely,
John E. Demyan F. William Kuethe, Jr.
Chairman President and Chief
Executive Officer
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GLEN BURNIE BANCORP
101 Crain Highway, S.E.
Glen Burnie, Maryland 21061
(410) 766-3300
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NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held on May 9, 2002
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NOTICE IS HEREBY GIVEN that the 2002 Annual Meeting of Stockholders (the
"Annual Meeting") of Glen Burnie Bancorp (the "Company") will be held at La
Fontaine Bleu, 7514 Ritchie Highway, Glen Burnie, Maryland on Thursday, May 9,
2002 at 2:00 p.m., Eastern Time.
A proxy statement and proxy card for the Annual Meeting accompany this
notice.
The Annual Meeting has been called for the following purposes:
1. To elect four directors;
2. To authorize the Board of Directors to select an outside auditing
firm for the 2002 fiscal year; and
3. To transact such other business as may properly come before the
Annual Meeting or any adjournments thereof.
Any action may be taken on any one of the foregoing proposals at the Annual
Meeting on the date specified above or on any date or dates to which, by
original or later adjournment, the Annual Meeting may be adjourned. Stockholders
of record at the close of business on April 1, 2002 are the only stockholders
entitled to notice of and to vote at the Annual Meeting and any adjournments
thereof.
You are requested to complete and sign the accompanying proxy card, which
is solicited by the Board of Directors and to mail it promptly in the
accompanying envelope. The proxy card will not be used if you attend and vote at
the Annual Meeting in person.
BY ORDER OF THE BOARD OF DIRECTORS
Dorothy A. Abel
SECRETARY
Glen Burnie, Maryland
April 9, 2002
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IMPORTANT: THE PROMPT RETURN OF PROXIES WILL SAVE YOUR COMPANY THE EXPENSE OF
FURTHER REQUESTS FOR PROXIES IN ORDER TO ENSURE A QUORUM. A SELF-ADDRESSED
ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE. NO POSTAGE IS REQUIRED IF MAILED IN
THE UNITED STATES.
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PROXY STATEMENT
OF
GLEN BURNIE BANCORP
101 Crain Highway, S.E.
Glen Burnie, Maryland 21061
ANNUAL MEETING OF STOCKHOLDERS
May 9, 2002
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GENERAL
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This proxy statement is furnished in connection with the solicitation of
proxies by the Board of Directors of Glen Burnie Bancorp (the "Company") to be
used at the 2002 Annual Meeting of Stockholders of the Company and any
adjournments or postponements thereof (hereinafter called the "Annual Meeting")
which will be held at La Fontaine Bleu, 7514 Ritchie Highway, Glen Burnie,
Maryland on Thursday, May 9, 2002 at 2:00 p.m., Eastern Time. The accompanying
Notice of Annual Meeting and form of proxy and this Proxy Statement are being
first mailed to stockholders on or about April 9, 2002.
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VOTING AND REVOCABILITY OF PROXIES
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Proxies solicited by the Board of Directors of the Company will be voted in
accordance with the directions given therein. Where no instructions are given,
proxies will be voted for the nominees named below and for the proposal to
authorize the Board of Directors to select an auditing firm. The proxy confers
discretionary authority on the persons named therein to vote with respect to the
election of any person as a director where the nominee is unable to serve or for
good cause will not serve, and with respect to matters incident to the conduct
of the Annual Meeting. If any other business is presented at the Annual Meeting,
proxies will be voted by those named therein in accordance with the
determination of a majority of the Board of Directors. Proxies marked as
abstentions will not be counted as votes cast. In addition, shares held in
street name which have been designated by brokers on proxy cards as not voted
will not be counted as votes cast. Proxies marked as abstentions or as broker no
votes, however, will be treated as shares present for purposes of determining
whether a quorum is present.
Stockholders who execute proxies retain the right to revoke them at any
time. Unless so revoked, the shares represented by properly executed proxies
will be voted at the Annual Meeting and all adjournments thereof. Proxies may be
revoked by written notice to Dorothy A. Abel, the Secretary of the Company, at
the address above or by the filing of a later dated proxy prior to a vote being
taken on a particular proposal at the Annual Meeting. A proxy will not be voted
if a stockholder attends the Annual Meeting and votes in person. The presence of
a stockholder at the Annual Meeting will not revoke such stockholder's proxy.
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VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF
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The securities entitled to vote at the Annual Meeting consist of the
Company's common stock, par value $1.00 per share (the "Common Stock").
Stockholders of record as of the close of business on April 1, 2002 (the "Record
Date") are entitled to one vote for each share then held. At the Record Date,
the Company had 1,663,560 shares of Common Stock issued and outstanding. The
presence, in person or by proxy, of at least a majority of the total number of
shares of Common Stock outstanding and entitled to vote will be necessary to
constitute a quorum at the Annual Meeting. Persons and groups beneficially
owning in excess of 5% of the Common Stock are required to file certain reports
with respect to such ownership pursuant to the Securities Exchange Act of 1934
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(the "Exchange Act"). The following table sets forth, as of the Record Date,
certain information as to the Common Stock beneficially owned by all persons who
were known to the Company to beneficially own more than 5% of the Common Stock
outstanding at the Record Date.
Amount and Nature Percent of Shares
Name and Address of Beneficial Of Common Stock
of Beneficial Owner Ownership 1 Outstanding
------------------- ----------------- -----------------
John E. and Margarette Z. Demyan 170,447 2 10.25%
101 Crain Highway, S.E.
Glen Burnie, Maryland 21061
F. William and Beverly F. Kuethe, Jr. 122,412 3 7.36%
101 Crain Highway, S.E.
Glen Burnie, Maryland 21061
Eugene P. Nepa 153,141 4 9.21%
36 Summerhill Trailer Park
Crownsville, Maryland 21032
Charles L. and Ruth G. Hein 95,373 5 5.73%
101 Crain Highway, S.E.
Glen Burnie, Maryland 21061
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1 Rounded to nearest whole share. For purposes of this table, a person is
deemed to be the beneficial owner of any shares of Common Stock if he or
she has or shares voting or investment power with respect to such Common
Stock or has a right to acquire beneficial ownership at any time within 60
days from the Record Date. As used herein, "voting power" is the power to
vote or direct the voting of shares and "investment power" is the power to
dispose or direct the disposition of shares. Except as otherwise noted,
ownership is direct, and the named individuals or group exercise sole
voting and investment power over the shares of the Common Stock.
2 Includes 155,938 shares held jointly, 6,854 shares held by Mr. Demyan
individually, and 7,655 shares held by Mrs. Demyan individually. Each
disclaims beneficial ownership to the shares owned individually by the
other.
3 Includes 44,746 shares held jointly, 24,494 shares held by Mr. Kuethe
individually, and 36,000 shares held by Mrs. Kuethe individually. Each
disclaims beneficial ownership to the shares owned individually by the
other. Also includes 17,172 shares held by Mr. Kuethe jointly with others.
4 Includes 6,624 shares held individually, 126,870 shares held by the Eugene
P. Nepa Revocable Trust, and 19,647 shares held in Mr. Nepa's Individual
Retirement Account ("IRA").
5 Includes 13,643 shares held jointly, 125 shares held by Mr. Hein
individually, and 15,898 shares held by Mr. and Mrs. Hein jointly with
others. Mrs. Hein disclaims beneficial ownership to the shares owned
individually by Mr. Hein. Also includes 32,554 shares held by Mr. Hein
jointly with others and 33,153 shares held by Mrs. Hein jointly with
others.
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PROPOSAL I -- ELECTION OF DIRECTORS
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The Board of Directors currently consists of 12 directors. Under the
Company's Articles of Incorporation, directors are divided into three classes
and elected for terms of three years each and until their successors are elected
and qualified. The Board has nominated Theodore L. Bertier, Jr., John E. Demyan,
Frederick W. Kuethe, III, and Mary L. Wilcox for election as directors to serve
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for terms of three years each and until their successors are elected and
qualified. Under Maryland law, directors are elected by a plurality of all votes
cast at a meeting at which a quorum is present.
Unless contrary instruction is given, the persons named in the proxies
solicited by the Board of Directors will vote each such proxy for the election
of the named nominees. If any of the nominees is unable to serve, the shares
represented by all properly executed proxies which have not been revoked will be
voted for the election of such substitute as the Board of Directors may
recommend or the Board of Directors may reduce the size of the Board to
eliminate the vacancy. At this time, the Board does not anticipate that any
nominee will be unavailable to serve.
The following table sets forth, for each nominee and each continuing
director, his or her name, age as of the Record Date, the year he or she first
became a director of the Company, and the expiration of his or her current term.
Each nominee and continuing director is also a member of the Board of Directors
of The Bank of Glen Burnie (the "Bank") and GBB Properties, Inc. ("GBB
Properties"). There are no known arrangements or understandings between any
director or nominee for director of the Company and any other person pursuant to
which such director or nominee has been selected as a director or nominee.
Director Current Term
Name Age Since to Expire
---- --- -------- ------------
Board Nominees for Term to Expire in 2005
John E. Demyan 54 1995 2002
Theodore L. Bertier, Jr. 73 1997 2002
F. W. Kuethe, III 42 1992 2002
Mary Lou Wilcox 53 1997 2002
Directors Continuing in Office
Charles L. Hein 80 1997 2003
Alan E. Hahn 66 1997 2003
Shirley E. Boyer 65 1995 2003
John I. Young 64 2000 2003
F. William Kuethe, Jr. 69 1995 2004
Thomas Clocker 67 1995 2004
William N. Scherer, Sr. 78 1995 2004
Karen B. Thorwarth 44 1995 2004
Presented below is certain information concerning the nominees and directors
continuing in office. Unless otherwise stated, all directors and nominees have
held the positions indicated for at least the past five years.
John E. Demyan has been Chairman of the Board of the Company, the Bank and
GBB Properties since 1995. He previously served as a director of the Company and
the Bank from 1990 through 1994. He completed the Maryland Banking School in
1994. He is the owner and manager of commercial and residential properties in
northern Anne Arundel County, Maryland. Mr. Demyan is also a commercial
multi-engine pilot and flight instructor. He is an active volunteer with Angel
Flight Mid-Atlantic, an organization which provides free air transportation for
medical treatments to individuals who have exhausted their resources as a result
of their medical condition.
Theodore L. Bertier, Jr.. retired as manager of the design and drafting
department of Westinghouse Electric Corp. in 1993. He has more than 40 years of
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business and financial management experience. He served as a director of the
Bank from 1970 through 1995. Mr. Bertier was a member of the Maryland General
Assembly from 1962 to 1970 where he served as both a delegate and a senator.
Frederick W. Kuethe, III has been a Vice President of the Company since
1995 and a director of the Bank since 1988. In addition to his active
participation on the board, he also works in software design and systems
integration at Northrop Grumman Corp. (formerly Westinghouse Electric
Corporation). He is a graduate of the Maryland Banking School. Frederick W.
Kuethe, III is the son of F. William Kuethe, Jr.
Mary Lou Wilcox is a teacher at Belle Grove Elementary School in Brooklyn
Park, Maryland. She is an active member of the community and has served on the
Glen Burnie Improvement Association's Carnival Banking Committee for over 20
years.
Charles L. Hein is a Glen Burnie native. He has dedicated nearly 40 years
to the Episcopal Church, serving as Pastor of the St. Thomas Episcopal Church in
Towson, Maryland until his retirement in 1989. During his tenure, he served on
the Vestry (the parish governing body) as President and is currently the Supply
Clergyman at the Church of the Ascension in Scarboro, Maryland. He is also a
purchaser and restorer of residential properties and mortgagee of residential
properties in Baltimore County.
Alan E. Hahn has 10 years of experience managing electronic data in the
banking industry along with planning, administering and evaluating data systems.
He served 20 years with the United States Air Force before retiring and
continuing his work in information systems. He currently serves as Chairman of
the Bank's Data Processing Committee. Mr. Hahn is the owner/manager of various
residential properties in Anne Arundel County, Maryland.
Shirley E. Boyer is the owner/manager of a large number of residential
properties in Anne Arundel County, Maryland. She has 13 years experience in the
local banking industry where she was give progressive responsibilities, holding
positions from Teller to Assistant Branch Manager.
John I. Young serves as Executive Vice President and Chief Operating
Officer of the Bank, a position to which he was appointed in December 1999 after
joining the Bank as Senior Vice President in March 1999. Prior to joining the
Bank, he had been president of Young-Harris, Inc., a financial industry
consulting company since 1980. He is a member of several banking professional
organizations including the Independent Community Bankers Association and the
Maryland Bankers Association and currently holds the position of President of
the St. Andrew's Society of Baltimore.
F. William Kuethe, Jr. has served as President and Chief Executive Officer
of the Company and the Bank since 1995. He also served as a director of the Bank
from 1960 through 1989. He was formerly President of Glen Burnie Mutual Savings
Bank from 1960 through 1995. Mr. Kuethe, a former licensed appraiser and real
estate broker, has banking experience at all levels. F. William Kuethe, Jr. is
the father of Frederick W. Kuethe, III.
Thomas Clocker has been the owner/operator of Angel's Food Market in
Pasadena, Maryland since 1960. He served on the Mid-Atlantic Food Association's
board of directors for nine years and is a founding member of the Pasadena
Business Association. Mr. Clocker is actively involved in the community as a
supporter of local schools, athletic associations and scouting groups.
William N. Scherer, Sr. has been a member of the local business community
since 1952 when he owned and operated an accounting and tax business. After
graduating from law school in 1962, he opened a law practice in Glen Burnie. He
currently specializes in wills and estates. He has also operated Scherer's
Market in Jessup, Maryland since 1960. Mr. Scherer is chairman of the Audit
Committee.
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Karen B. Thorwarth is a Certified Insurance Counselor and licensed agent.
With 21 years of experience, she specializes in underwriting and marketing
private pleasure yacht insurance. From 1979-1997, she was employed by
Basil-Voges, Inc., an insurance agency in Annapolis, Maryland and she currently
serves that company on a contractual basis.
Meetings and Committees of the Board of Directors
The Board of Directors holds regular monthly meetings and special meetings
as needed. During the year ended December 31, 2001, the Board of Directors met
13 times. No director attended fewer than 84% of the total number of meetings of
the Board of Directors of the Company or the Bank held during 2001 and the total
number of meetings held by all committees on which the director served during
such year.
The Bank's Audit Committee acts as the audit committee for the Company and
currently consists of Directors William N. Scherer, Sr., Shirley E. Boyer, Karen
B. Thorwarth, Alan E. Hahn and Thomas Clocker. The Audit Committee monitors
internal accounting controls, meets with the Bank's Internal Auditor to review
internal audit findings, recommends independent auditors for appointment by the
Board, and meets with the Company's independent auditors regarding these
internal controls to assure full disclosure of the Company's financial
condition. During the year ended December 31, 2001, the Audit Committee met 12
times.
The Bank's Employee Compensation and Benefits Committee acts as the
compensation committee for the Company and is composed of Directors Shirley E.
Boyer, F. William Kuethe, Jr., John E. Demyan, Theodore L. Bertier, Jr., William
N. Scherer, Sr., John I. Young, Frederick W. Kuethe, III, Thomas Clocker and
Alan E. Hahn. The purpose of the Compensation Committee is to evaluate and
ascertain the appropriateness of compensation levels pertaining to the officers
of the Bank. This Committee met four times during 2001.
The Company's full Board of Directors acts as a nominating committee for
the annual selection of its nominees for election as directors. While the Board
of Directors will consider nominees recommended by stockholders, it has not
actively solicited recommendations from the Company's stockholders for nominees,
nor established any procedures for this purpose. The Board of Directors held one
meeting during 2002 in order to make nominations for directors.
Director Compensation
Director's Fees. Currently, all directors are paid a fee of $800 for each
combined regular or special meeting of the Company and the Bank attended, with
fees paid for one excused absence. In addition to the foregoing director's fees,
Mr. Demyan is compensated at the rate of $25,000 per annum for the additional
responsibilities of serving as the Chairman of the Board. Directors (other than
F. William Kuethe, Jr. and John I. Young who receive no fees for committee
meetings) are paid an additional fee of $125 for each committee meeting attended
with fees paid for up to two excused absences. The Chairman of each Committee is
paid $150 for each committee meeting attended.
Executive and Director Deferred Compensation Plan. The Bank's Board of
Directors has adopted The Bank of Glen Burnie Executive and Director Deferred
Compensation Plan pursuant to which participating directors may elect to defer
all or a portion of their fees on a pre-tax basis. Deferred fees are held in a
trust account and invested as directed by the participant. Participants are
fully vested in their accounts at all times and may elect to have their accounts
paid out in a lump sum or in equal installments over a period of five, ten or
fifteen years beginning on a date no earlier than three years after the initial
deferral election. Upon a participant's death, any amounts remaining in their
account will be paid to their beneficiaries.
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Director Health Plan. All directors have the right to participate in the
Bank's health insurance plan. Under the terms of the plan, the Bank pays 80% of
the premiums for participating directors and their spouses. For the 2001
calendar year, Thomas Clocker, Karen B. Thorwarth and Shirley E. Boyer
participated in the plan, and the Company paid $2,750, $8,441 and $5,767 of the
premiums, respectively.
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SECURITIES OWNERSHIP OF MANAGEMENT
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The following table sets forth information with respect to the
beneficial ownership of the shares of Common Stock as of the Record Date by (i)
each executive officer of the Company named in the Summary Compensation Table
included elsewhere in this Proxy Statement, (ii) each current director and each
nominee for election as a director and (iii) all directors and executive
officers of the Company as a group.
Amount And Nature of Percent of
Name Beneficial Ownership (1) Class
---- ------------------------ ----------
F. William Kuethe, Jr. 122,412 (2) 7.36%
Thomas Clocker 6,650 (3) 0.40%
William N. Scherer, Sr. 8,682 (4) 0.52%
Karen B. Thorwarth 1,265 0.08%
John E. Demyan 170,447 (5) 10.25%
Theodore L. Bertier, Jr. 15,388 (6) 0.93%
F. W. Kuethe, III 22,208 (7) 1.33%
Mary Lou Wilcox 1,153 0.07%
Charles L. Hein 95,373 (8) 5.73%
Alan E. Hahn 10,442 (9) 0.63%
Shirley E. Boyer 11,668 (10) 0.70%
John I. Young 5,847 (11) 0.35%
All directors, nominees and
executive officers as a group
(14 persons) 473,090 28.44%
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(1) Rounded to nearest whole share. For the definition of "beneficial
ownership," see footnote (1) to the table in the section entitled "Voting
Securities and Principal Holders Thereof." Unless otherwise noted,
ownership is direct and the named individual has sole voting and investment
power.
(2) See footnote (3) to the table in the section entitled "Voting Securities
and Principal Holders Thereof".
(3) Includes 5,338 shares as to which he shares voting and investment power.
(4) Includes 8,012 shares as to which he shares voting and investment power.
(5) See footnote (2) to the table in the section entitled "Voting Securities
and Principal Holders Thereof".
(6) Includes 608 shares as to which he shares voting and investment power and
1,553 shares beneficially owned by his spouse as to which he disclaims
beneficial ownership.
(7) Includes 14,096 shares as to which he shares voting and investment power
and 3,931 shares beneficially owned by his spouse as to which he disclaims
beneficial ownership.
(8) See footnote (5) to the table in the section entitled "Voting Securities
and Principal Holders Thereof".
(9) Includes 5,169 shares to which he shares voting and investment power and
5,273 shares held in his IRA.
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(10) Includes 10,567 shares as to which she shares voting and investment power.
(11) Includes 1,510 shares as to which he shares voting and investment power.
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EXECUTIVE COMPENSATION
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Summary Compensation Table. The following table sets forth information
regarding the cash and noncash compensation awarded to or earned during the past
three fiscal years by the Company's Chief Executive Officer and by each
executive officer whose salary and bonus earned in fiscal year 2001 exceeded
$100,000 for services rendered in all capacities to the Company and its
subsidiaries.
Annual Compensation
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Name and Other Annual All Other
Principal Position Year Salary Bonus Compensation Compensation
------------------ ---- ------ ----- ------------ ------------
F. William Kuethe, Jr. 2001 $30,000 $15,000 $ -- $13,064 (1)
President and Chief 2000 34,348 12,000 -- 11,817 (1)
Executive Officer 1999 80,000 12,000 -- 15,354 (1)
John I. Young 2001 $109,192 $10,000 $ -- $16,040 (2)
Executive Vice President 2000 92,750 7,000 -- $12,338 (2)
and Chief Operating Officer 1999 71,635 6,000 -- 0
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(1) Mr. Kuethe's "Other Compensation" for 2001 consisted of $9,600 in
directors' fees, $2,765 in Company contributions to its defined
contribution pension plan on his behalf, and $699 representing the dollar
value to Mr. Kuethe of the premiums on a term life insurance policy for his
benefit; for 2000 consisted of $8,400 in directors' fees, $2,770 in Company
contributions to its defined contribution pension plan on his behalf, and
$647 representing the dollar value to Mr. Kuethe of the premiums on a term
life insurance policy for his benefit; and for 1999 consisted of $9,600 in
directors' fees, $5,112 in Company contributions to its defined
contribution pension plan on his behalf, and $642 representing the dollar
value to Mr. Kuethe of the premiums on a term life insurance policy for his
benefit.
(2) Mr. Young's "Other Compensation" for 2001 consisted of $9,600 in directors'
fees and $6,440 in Company contributions to its defined contribution
pension plan on his behalf; and for 2000 consisted of $7,000 in directors'
fees and $5,338 in Company contributions to its defined contribution
pension plan on his behalf.
Change in Control Severance Plan
In August 2001, the Board of Directors of the Company and the Bank approved
amendments to the Company's and the Bank's Change-in-Control Severance Plan, to
include the named executive officers in the Plan's coverage. Under the terms of
the Plan, in the event the executive voluntarily terminates his employment
within two years following a change in control, or in the event the Executive's
employment is terminated by the Bank (or its successor) for any reason, other
than cause, within two years following a change in control, the executive is
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entitled to receive an amount equal to the aggregate present value of 2.99 times
the executive's average annual taxable compensation from the Bank and the
Company for the prior five complete years (or the number of years during which
the executive was employed by the Bank, if less). The payment will be made
either in a lump sum or in installments, at the option of the executive.
Transactions with Management
All currently outstanding loans to directors and executive officers were
made in the ordinary course of business of the Bank and on substantially the
same terms, including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons and did not involve more
than the normal risk of collectibility or present other unfavorable features.
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REPORT OF THE AUDIT COMMITTEE
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The Audit Committee has reviewed and discussed with management the annual
audited financial statements of the Company and its subsidiaries.
The Audit Committee has discussed with Trice Geary & Myers LLC, the
independent auditors for the Company for 2001, the matters required to be
discussed by Statement on Auditing Standards 61. The Audit Committee has
received the written disclosures and the letter from the independent auditors
required by Independent Standards Board Standard No. 1 and has discussed with
the independent auditors the independent auditors' independence.
Based on the foregoing review and discussions, the Audit Committee
recommended to the Company's Board of Directors that the audited financial
statements be included in the Company's Annual Report on Form 10-K for the year
2001 for filing with the Securities and Exchange Commission.
Each member of the Audit Committee is independent, as independence is
defined in Rule 4200(a)(15) of the listing standards of the National Association
of Securities Dealers (NASD).
The Board of Directors of the Company has adopted a written charter for the
Audit Committee.
THE AUDIT COMMITTEE
William N. Scherer, Sr., Chairman
Shirley E. Boyer
Thomas Clocker
Alan E. Hahn
Karen B. Thorwarth
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PROPOSAL II -- AUTHORIZATION FOR APPOINTMENT OF AUDITORS
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Selection of Auditors
Trice Geary & Myers LLC, which was the Company's independent auditing firm
for the 2001 fiscal year, is expected to be retained by the Board of Directors
to be the Company's independent auditors for the 2002 fiscal year. A
representative of Trice Geary & Myers LLC is expected to be present at the
Annual Meeting to respond to appropriate questions from stockholders and will
have the opportunity to make a statement if he or she so desires. The Board of
Directors recommends a vote FOR the proposal to authorize the Board of Directors
to select an outside auditing firm for the ensuing year.
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Auditing Fees
The aggregate fees and disbursements billed by Trice Geary & Myers LLC to
the Company for the annual audit of the Company's financial statements and for
the review of the Company's three Forms 10-Q for the fiscal year 2001 totaled
$81,839.
Financial Information Systems Design and Implementation Fees
During fiscal year 2001, Trice Geary & Myers LLC did not provide to the
Company any services with respect to financial information systems design and
implementation.
All Other Fees
The aggregate fees and disbursements billed by Trice Geary & Myers LLC to
the Company for all other non-audit services for fiscal year 2001 totaled
$48,649. These non-audit services consisted primarily of tax-related services,
multiple year, multiple plan benefit audits, and an information technology
regulatory audit. The Audit Committee has considered whether the provision of
these services are compatible with maintaining the independence of Trice Geary &
Myers LLC.
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OTHER MATTERS
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The Board of Directors is not aware of any business to come before the
Annual Meeting other than those matters described above in this proxy statement
and matters incident to the conduct of the Annual Meeting. However, if any other
matters should properly come before the Annual Meeting, it is intended that
proxies in the accompanying form will be voted in respect thereof in accordance
with the determination of a majority of the named proxies.
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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
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Pursuant to regulations promulgated under the Exchange Act, the Company's
officers, directors and persons who own more than ten percent of the outstanding
Common Stock ("Reporting Person") are required to file reports detailing their
ownership and changes of ownership in such Common Stock, and to furnish the
Company with copies of all such reports. Based on the Company's review of such
reports which the Company received during the last fiscal year, or written
representations from Reporting Persons that no annual report of change in
beneficial ownership was required, the Company believes that, with respect to
the last fiscal year, all persons subject to such reporting requirements have
complied with the reporting requirements.
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MISCELLANEOUS
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The cost of soliciting proxies will be borne by the Company. The Company
will reimburse brokerage firms and other custodians, nominees and fiduciaries
for reasonable expenses incurred by them in sending proxy materials to the
beneficial owners of Common Stock. In addition to solicitations by mail,
directors, officers and regular employees of the Company may solicit proxies
personally or by telegraph or telephone without additional compensation
therefor.
The Company's 2001 Annual Report to Stockholders, including financial
statements, has been mailed to all stockholders of record as of the close of
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business on the Record Date with this Proxy Statement. Any stockholder who has
not received a copy of such Annual Report may obtain a copy by writing to the
Secretary of the Company. Such Annual Report is not to be treated as a part of
the proxy solicitation material or as having been incorporated herein by
reference. A copy of the Company's Form 10-K for the fiscal year ended December
31, 2001 as filed with the Securities and Exchange Commission will be furnished
without charge to stockholders as of the Record Date upon written request to
Chief Financial Officer, Glen Burnie Bancorp, 101 Crain Highway, S.E., Glen
Burnie, Maryland 21061.
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STOCKHOLDER PROPOSALS
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Any stockholder desiring to present a proposal at the 2003 Annual Meeting
of Stockholders and wishing to have that proposal included in the proxy
statement for that meeting must submit the same in writing to the Secretary of
the Company at 101 Crain Highway, S.E., Glen Burnie, Maryland 21061, in time to
be received by December 10, 2002. The persons designated by the Company to vote
proxies given by stockholders in connection with the Company's 2003 Annual
Meeting of Stockholders will not exercise any discretionary voting authority
granted in such proxies on any matter not disclosed in the Company's 2003 proxy
statement with respect to which the Company has received written notice no later
than February 23, 2003 that a stockholder (i) intends to present such matter at
the 2003 Annual Meeting, and (ii) intends to and does distribute a proxy
statement and proxy card to holders of such percentage of the shares of Common
Stock required to approve the matter. If a stockholder fails to provide evidence
that the necessary steps have been taken to complete a proxy solicitation on
such matter, the Company may exercise its discretionary voting authority if it
discloses in its 2003 proxy statement the nature of the proposal and how it
intends to exercise its discretionary voting authority.
BY ORDER OF THE BOARD OF DIRECTORS
Dorothy A. Abel
SECRETARY
Glen Burnie, Maryland
April 9, 2002
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|X| PLEASE MARK VOTES REVOCABLE PROXY
AS IN THIS EXAMPLE GLEN BURNIE BANCORP
2002 ANNUAL MEETING OF STOCKHOLDERS
The undersigned hereby constitutes and appoints F. William Kuethe, John I.
Young, and William N. Scherer, Sr., or a majority of them, with full powers of
substitution, as attorneys-in-fact and agents for the undersigned, to vote all
shares of Common Stock of Glen Burnie Bancorp which the undersigned is entitled
to vote at the Annual Meeting of Stockholders, to be held at La Fontaine Bleu,
7514 Ritchie Highway, Glen Burnie, Maryland on Thursday, May 9, 2002 at 2:00
p.m., Eastern Time (the "Annual Meeting"), and at any and all adjournments
thereof, as indicated below and as determined by a majority of the named proxies
with respect to any other matters presented at the Annual Meeting.
VOTE FOR
FOR WITHHELD EXCEPT
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1. To elect as directors all nominees listed below: [ ] [ ] [ ]
John E. Demyan
Theodore L. Bertier, Jr.
F.W. Kuethe, III
Mary Lou Wilcox
INSTRUCTION: TO WITHHOLD YOUR VOTE FOR ANY LISTED NOMINEE, MARK THE FOR EXCEPT
BOX AND INSERT THAT NOMINEE'S NAME ON THE LINE PROVIDED BELOW.
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FOR AGAINST ABSTAIN
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2. To authorize the Board of Directors to select auditors for [ ] [ ] [ ]
the 2002 fiscal year
The Board of Directors recommends a vote "FOR" the above listed propositions.
IF YOU PLAN TO ATTEND THE ANNUAL MEETING, PLEASE CHECK THIS BOX [ ]
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO INSTRUCTIONS ARE SPECIFIED, THIS
PROXY WILL BE VOTED FOR EACH OF THE ABOVE NOMINEES AND FOR PROPOSAL 2. IF ANY
OTHER BUSINESS IS PROPERLY PRESENTED AT THE ANNUAL MEETING, THIS PROXY WILL BE
VOTED BY THOSE NAMED IN THIS PROXY IN ACCORDANCE WITH THE DETERMINATION OF A
MAJORITY OF THE NAMED PROXIES. THIS PROXY CONFERS DISCRETIONARY AUTHORITY ON THE
HOLDERS THEREOF TO VOTE WITH RESPECT TO THE ELECTION OF ANY PERSON AS DIRECTOR
WHERE THE NOMINEE IS UNABLE TO SERVE OR FOR GOOD CAUSE WILL NOT SERVE AND
MATTERS INCIDENT TO THE CONDUCT OF THE ANNUAL MEETING.
Please be sure to sign and date this Proxy in the box below.
Date _________________
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Stockholder sign above Co-holder (if any) sign above
Detach above card, sign, date and mail in postage paid envelope provided.
GLEN BURNIE BANCORP
Should the above signed be present and elect to vote at the Annual Meeting or at
any adjournment thereof and after notification to the Secretary of the Company
at the Annual Meeting of the stockholder's decision to terminate this proxy,
then the power of said attorneys and proxies shall be deemed terminated and of
no further force and effect. The above signed hereby revokes any and all proxies
heretofore given with respect to the shares of Common Stock held of record by
the above signed. The above signed acknowledges receipt from the Company prior
to the execution of this proxy of notice and a proxy statement and a 2001 Annual
Report to stockholders for the annual meeting.
Please sign exactly as your name appears on the envelope in which this proxy was
mailed. When signing as attorney, executor, administrator, trustee or guardian,
please give your full title. If shares are held jointly, each holder should
sign.
PLEASE ACT PROMPTLY
SIGN, DATE & MAIL YOUR PROXY CARD TODAY
IF YOUR ADDRESS HAS CHANGED, PLEASE CORRECT THE ADDRESS IN THE SPACE PROVIDED
BELOW AND RETURN THIS PORTION WITH THE PROXY IN THE ENVELOPE PROVIDED.
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