Employment Agreement



 Exhibit 10.16 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT is made and entered
into as of the 23rd day of March, 2012 by and between ALLIANCE BANK, a Virginia banking corporation, hereinafter called the “Bank”, and Jean Houpert, hereinafter called “Employee”, and provides as follows: 

RECITALS 
 WHEREAS, the Bank is a bank chartered under the laws of the Commonwealth of Virginia and engaged in the business of banking; and 
 WHEREAS, Employee has been involved in the management of the Bank and possesses managerial experience, knowledge, skills and expertise in such type of business; and 

WHEREAS, the employment of Employee by the Bank is in the best interests of the Bank and Employee; and 

WHEREAS, the parties have mutually agreed upon the terms and conditions of Employee’s continued employment by the Bank as
hereinafter set forth; 
 TERMS OF AGREEMENT 

NOW, THEREFORE, for and in consideration of the premises and of the mutual promises and undertakings of the parties as hereinafter set
forth, the parties covenant and agree as follows: 
 Section 1. Employment. (a) Employee shall be employed as
the Executive Vice President and Chief Financial Officer. She shall perform such services for the Bank and/or one or more Affiliates as may be assigned to Employee from time to time upon the terms and conditions hereinafter set forth. 

(b) References in this Agreement to services rendered for the Bank and compensation and benefits payable or provided by the Bank shall
include services rendered for and compensation and benefits payable or provided by any Affiliate. References in this Agreement to the “Bank” also shall mean and refer to each Affiliate for which Employee performs services. References in
this Agreement to “Affiliate” shall mean any business entity that, directly or indirectly, through one or more intermediaries, is controlled by or controls the Bank. 
 (c) The parties recognize that the Board of Directors of the Bank shall manage the business affairs of the Bank and that the relationship between the Bank and Employee shall be that of an employer and an
employee. The Board of Directors shall have the sole authority to set and establish the hours of operation of the business and to set and establish reasonable work schedules and standards applicable to Employee. 







 Section 2. Term. The term of this Agreement shall continue until March 22,
2013 unless sooner terminated under the terms of this Agreement (the “Initial Term”). This Agreement shall be renewed automatically for successive additional terms of one (1) year each unless either party gives the other notice of
nonrenewal at least sixty (60) days prior to the expiration of the Initial Term or any additional term, as the case may be. 
 Section 3. Exclusive Service. Employee shall devote his best efforts and full time to rendering services on behalf of the Bank in furtherance of its best interests. Employee shall comply with
all policies, standards and regulations of the Bank now or hereafter promulgated, and shall perform his duties under this Agreement to the best of his abilities and in accordance with standards of conduct applicable to chief executive officers of
banks. 
 Section 4. Salary. (a) As compensation while employed hereunder, Employee, during his faithful
performance of this Agreement, in whatever capacity rendered, shall receive an annual base salary of $185,000, payable on such terms and in such installments as the parties may from time to time mutually agree upon. The Board of Directors, in its
discretion, may increase Employee’s base salary during the term of this Agreement, but in no event shall the annual base salary be reduced. The annual base salary shall be paid in accordance with the Bank’s normal payroll practices, but
not less frequently than monthly. 
 (b) The Bank shall withhold state and federal income taxes, social security taxes and such
other payroll deductions as may from time to time be required by law or agreed upon in writing by Employee and the Bank. The Bank shall also withhold and remit to the proper party any amounts agreed to in writing by the Bank and Employee for
participation in any corporate sponsored benefit plans for which a contribution is required. 
 (c) Except as otherwise
expressly set forth hereunder, no compensation shall be paid pursuant to this Agreement in respect of any month or portion thereof subsequent to any termination of Employee’s employment by the Bank. 

Section 5. Corporate Benefit Plans. (a) Employee shall be entitled to participate in or become a participant in any
employee benefit plan maintained by the Bank for which he is or will become eligible on such terms as the Board of Directors may, in its discretion, establish, modify or otherwise change. 

(b) The Bank shall provide Employee with a disability insurance policy providing benefits commensurate with other employees as so amended
by the Board from time to time. 
 (c) The Bank shall pay the premiums on group term insurance on the life of Employee in an
amount equal to two and one-half times his base salary up to a maximum of $500,000 with a non-medical cap at $400,000, under a qualified group benefits plan as secured by the Bank. 

  
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 Section 6. Bonuses. Employee shall receive only such bonuses as the Board of
Directors, in its discretion, decides to pay to Employee. Any bonus due to Employee shall be paid to Employee no later than 2-1/2 months after the end of the Bank’s taxable year or the calendar year, whichever is later, in which such bonus is
no longer subject to a substantial risk of forfeiture (as determined in accordance with Internal Revenue Code (the “Code”) Section 409A and applicable guidance issued thereunder (“Code Section 409A”)). 

Section 7. Expense Account. The Bank shall reimburse Employee for reasonable and customary business expenses incurred in the
conduct of the Bank’s business. Such expenses will include business meals, out-of-town lodging and travel expenses, and membership dues and costs to attend meetings and conventions of business-appropriate organizations and associations.
Employee agrees to timely submit records and receipts of reimbursable items and agrees that the Bank can adopt reasonable rules and policies regarding such reimbursement. The Bank agrees to make prompt payment to Employee following receipt and
verification of such reports. 
 Section 8. Vacation and Sick Leave. Employee shall be entitled to 20 days of
vacation and such sick leave (prorated to date of hire), as the Board of Directors may from time to time designate for all full-time employees of the Bank. 
 Section 9. Termination. (a) Notwithstanding the termination of Employee’s employment pursuant to any provision of this Agreement, the parties shall be required to carry out any
provisions of this Agreement which contemplate performance by them subsequent to such termination. In addition, no termination shall affect any liability or other obligation of either party which shall have accrued prior to such termination,
including, but not limited to, any liability, loss or damage on account of breach. No termination of employment shall terminate the obligation of the Bank to make payments of any vested benefits provided hereunder or the obligations of Employee
under Sections 10, 11 and 12. 
 (b) Employee’s employment hereunder may be terminated by Employee upon thirty
(30) days written notice to the Bank or at any time by mutual agreement in writing. 
 (c) This Agreement shall terminate
upon the death of Employee; provided, however, that in such event the Bank shall pay to the estate of Employee the compensation including salary and accrued bonus, if any, which otherwise would be payable to Employee through the end of the month in
which his death occurs. Such amounts shall be paid within 60 days of Employee’s death. 
 (d) The Bank may terminate
Employee’s employment other than for “Cause”, as defined in Section 9(e), at any time upon written notice to Employee, which termination shall be effective immediately. Employee may resign thirty (30) days after notice to
the Bank for “Good Reason”, as hereafter defined. In the event the Employee’s employment terminates 

  
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pursuant to this Section 9(d), Employee shall receive a monthly amount equal to one-twelfth (1/12) his rate of annual base salary in effect immediately preceding such termination
(“Termination Compensation”) in each month for twelve (12) months or the remainder of the term of this Agreement, whichever is greater. Payments of the Termination Compensation shall be made at the times such payments would have been
made in accordance with Section 4(a). Notwithstanding anything in this Agreement to the contrary, if Employee breaches Section 10 or 11, Employee will not thereafter be entitled to receive any further compensation or benefits pursuant to
this Section 9(d). In addition, notwithstanding anything in this Agreement to the contrary, the Bank shall not be required to make payment of the Termination Compensation or any portion thereof to the extent such payment is prohibited by the
terms of the regulations presently found at 12 C.F.R. part 359 or to the extent that any other governmental approval of the payment required by law is not received. 
 For purposes of this Agreement, “Good Reason” shall mean: 
 (i) The
assignment of duties to the Employee by the Bank which result in the Employee having significantly less authority or responsibility than he has on the date hereof, without his express written consent; 

(ii) The removal of the Employee from his position as Executive Vice President- Chief Financial Officer; 

(iii) A reduction by the Bank of the Employee’s annual base salary (which shall also constitute a breach of Section 4(a)
hereof); 
 (iv) The failure of the Bank to obtain the assumption of and agreement to perform this Agreement by any successor as
contemplated in Section 13 hereof. 
 (e) The Bank shall have the right to terminate Employee’s employment under this
Agreement at any time for Cause, which termination shall be effective immediately. Termination for “Cause” shall include termination for Employee’s personal dishonesty, incompetence, willful misconduct, breach of a fiduciary duty
involving personal profit, failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, conviction of a felony or of a misdemeanor involving
moral turpitude, misappropriation of the Bank’s assets (determined on a reasonable basis) or those of its Affiliates, or material breach of any other provision of this Agreement. In the event Employee’s employment under this Agreement is
terminated for Cause, Employee shall thereafter have no right to receive compensation or other benefits under this Agreement. 

(f) The Bank may terminate Employee’s employment under this Agreement, after having established the Employee’s disability by
giving to Employee written notice of its intention to terminate his employment for disability and his employment with the Bank shall terminate effective on the 90th day after receipt of such notice if within 90 days after such receipt Employee shall
fail to return to the full-time performance of the essential functions of his position (and if Employee’s disability has been established pursuant to the definition of “disability” set forth


  
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below). For purposes of this Agreement, “disability” means either (i) disability which after the expiration of more than 13 consecutive weeks after its commencement is determined
to be total and permanent by a physician selected and paid for by the Bank or its insurers, and acceptable to Employee or his legal representative, which consent shall not be unreasonably withheld or (ii) disability as defined in the policy of
disability insurance maintained by the Bank or its Affiliates for the benefit of Employee, whichever shall be more favorable to Employee. Notwithstanding any other provision of this Agreement, the Bank shall comply with all requirements of the
Americans with Disabilities Act, 42 U.S.C. § 12101 et. seq. 
 (g) If Employee is suspended and/or
temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served pursuant to the Federal Deposit Insurance Act, the Bank’s obligations under this Employment Agreement shall be suspended as of the date of
service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion (i) pay Employee all or part of the compensation withheld while its contract obligations were suspended, and
(ii) reinstate (in whole or in part) any of its obligations which were suspended. 
 (h) If Employee is removed and/or
permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under the Federal Deposit Insurance Act or the Code of Virginia, all obligations of the Bank under this Employment Agreement shall terminate as of
the effective date of the order, but vested rights of the parties shall not be affected. 
 (i)(1) If Employee’s employment
is terminated without Cause within one year after a Change of Control shall have occurred or if he resigns for Good Reason within one year after a Change of Control shall have occurred, then on or before Employee’s last day of employment with
the Bank, the Bank shall pay to Employee as compensation for services rendered to the Bank and its Affiliates the amount of $185,000; provided that such amount shall be paid by the Bank in equal installments over the twelve months succeeding the
date of termination. Payments of the above installments shall be made at the times Employee’s base salary payments would have been made in accordance with Section 4(a). 

(2) For purposes of this Agreement, a Change of Control occurs if, after the date of this Agreement, (i) any person, including a
“group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the owner or beneficial owner of Bank securities having 50% or more of the combined voting power of the then outstanding Bank securities that may
be cast for the election of the Bank’s directors other than a result of an issuance of securities initiated by the Bank, or open market purchases approved by the Board of Directors, as long as the majority of the Board of Directors approving
the purchases is a majority at the time the purchases are made; or (ii) as the direct or indirect result of, or in connection with, a tender or exchange offer, a merger or other business combination, a sale of assets, a contested election of
directors, or any combination of these events, the persons who were directors of the Bank before such events cease to constitute a majority of the Bank’s Board, or any successor’s board, within two years of the last of such transactions.
For purposes of this Agreement, a Change of Control occurs on the date on which an event described in (i) or (ii) occurs. If a Change of Control occurs on account of a series of transactions or events, the Change of Control occurs on the
date of the last of such transactions or events. 

  
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 Section 10. Confidentiality/Nondisclosure. Employee covenants and agrees that
any and all information concerning the customers, businesses and services of the Bank of which he has knowledge or access as a result of his association with the Bank in any capacity, shall be deemed confidential in nature and shall not, without the
proper written consent of the Bank, be directly or indirectly used, disseminated, disclosed or published by Employee to third parties other than in connection with the usual conduct of the business of the Bank. Such information shall expressly
include, but shall not be limited to, information concerning the Bank’s trade secrets, business operations, business records, customer lists or other customer information. Upon termination of employment Employee shall deliver to the Bank all
originals and copies of documents, forms, records or other information, in whatever form it may exist, concerning the Bank or its business, customers, products or services. In construing this provision it is agreed that it shall be interpreted
broadly so as to provide the Bank with the maximum protection. This Section 10 shall not be applicable to any information which, through no misconduct or negligence of Employee, has previously been disclosed to the public by anyone other than
Employee. 
 Section 11. Covenant Not to Compete. During the term of this Agreement and throughout any further
period that he is an officer or employee of the Bank, and for a period of twelve (12) months from and after the date that Employee is (for any reason) no longer employed by the Bank or for a period of twelve (12) months from the date of
entry by a court of competent jurisdiction of a final judgment enforcing this covenant in the event of a breach by Employee, whichever is later, Employee covenants and agrees that he will not, directly or indirectly, either as a principal, agent,
employee, employer, stockholder, co-partner or in any other individual or representative capacity whatsoever: (i) engage in a Competitive Business anywhere within a twenty-five (25) mile radius of any office operated by the Bank on the
date Employee’s employment terminates; or (ii) solicit, or assist any other person or business entity in soliciting, or doing business with, any depositors or other customers of the Bank to make deposits in or to become customers of any
other financial institution conducting a Competitive Business; or (iii) induce any individuals to terminate their employment with the Bank or its Affiliates. As used in this Agreement, the term “Competitive Business” means all banking
and financial products and services that are substantially similar to those offered by the Bank on the date that Employee’s employment terminates. 
 Section 12. Injunctive Relief, Damages, Etc. Employee agrees that given the nature of the positions held by Employee with the Bank, that each and every one of the covenants and restrictions
set forth in Sections 10 and 11 above are reasonable in scope, length of time and geographic area and are necessary for the protection of the significant investment of the Bank in developing, maintaining and expanding its business. Accordingly, the
parties hereto agree that in the event of any breach by Employee of any of the provisions of Sections 10 or 11 that monetary damages alone will not adequately compensate the Bank for its losses and, therefore, that it may seek any and all legal or
equitable relief available to it, specifically including, but not limited to, injunctive relief and Employee shall be liable for all damages, including actual and consequential damages, costs and expenses, including legal costs and actual
attorneys’ fees, incurred by the Bank as a result of taking action to enforce, or recover for any breach of, Section 10 or Section 11. The covenants contained in Sections 10 and 11 shall be construed and interpreted in any judicial


  
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proceeding to permit their enforcement to the maximum extent permitted by law. Should a court of competent jurisdiction determine that any provision of the covenants and restrictions set forth in
Section 11 above is unenforceable as being overbroad as to time, area or scope, the court may strike the offending provision or reform such provision to substitute such other terms as are reasonable to protect the Bank’s legitimate
business interests. 
 Section 13. Binding Effect/Assignability. This Employment Agreement shall be binding upon and
inure to the benefit of the Bank and Employee and their respective heirs, legal representatives, executors, administrators, successors and assigns, but neither this Agreement, nor any of the rights hereunder, shall be assignable by Employee or any
beneficiary or beneficiaries designated by Employee. The Bank will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business, stock or assets of the Bank, by
agreement in form and substance reasonably satisfactory to the Employee, to expressly assume and agree to perform this Agreement in its entirety. Failure of the Bank to obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Employee to the compensation described in Section 9(d). As used in this Agreement, “Bank” shall mean Alliance Bankshares Bank, a Virginia Bank, and any successor to its respective
business, stock or assets as aforesaid which executes and delivers the agreement provided for in this Section 13 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 

Section 14. Governing Law. This Employment Agreement shall be subject to and construed in accordance with the laws of the
Commonwealth of Virginia, without giving effect to its principles of conflict of laws. 
 Section 15. Litigation. In
the event of any dispute between the parties concerning this Agreement, each party shall be responsible for obtaining counsel at its own expense; however, in the event that the Bank does not substantially prevail in any litigation arising under this
Agreement, the Bank shall promptly reimburse the Employee for all reasonable attorneys’ fees and expenses incurred in connection with such litigation. 
 Section 16. Invalid Provisions. The invalidity or unenforceability of any particular provision of this Employment Agreement shall not affect the validity or enforceability of any other
provisions hereof, and this Employment Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 
 Section 17. Notices. Any and all notices, designations, consents, offers, acceptance or any other communications provided for herein shall be given in writing and shall be deemed properly
delivered if delivered in person or by registered or certified mail, return receipt requested, addressed in the case of the Bank to its registered office or in the case of Employee to his last known address. 

  
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 Section 18. Entire Agreement. 

(a) This Employment Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes
any and all other agreements, either oral or in writing, among the parties hereto with respect to the subject matter hereof. 

(b) This Employment Agreement may be executed in one or more counterparts, each of which shall be considered an original copy of this
Agreement, but all of which together shall evidence only one agreement. 
 Section 19. Amendment and Waiver. This
Employment Agreement may not be amended except by an instrument in writing signed by or on behalf of each of the parties hereto. No waiver of any provision of this Employment Agreement shall be valid unless in writing and signed by the person or
party to be charged. 
 Section 20. Case and Gender. Wherever required by the context of this Employment Agreement,
the singular or plural case and the masculine, feminine and neuter genders shall be interchangeable. 
 Section 21.
Captions. The captions used in this Employment Agreement are intended for descriptive and reference purposes only and are not intended to affect the meaning of any Section hereunder. 
 Section 22. Code Section 409A Compliance. 
 (a) The intent of the
parties is that payments and benefits under this Agreement comply with Code Section 409A or comply with an exemption from the application of Code Section 409A and, accordingly, all provisions of this Agreement shall be construed in a
manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A. 
 (b) Neither Employee
nor the Bank shall take any action to accelerate or delay the payment of any monies and/or provision of any benefits in any matter which would not be in compliance with Code Section 409A. 

(c) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
form or timing of payment of any amounts or benefits that are subject to Code Section 409A and that are paid upon or following a termination of employment unless such termination is also a “separation from service” (within the meaning
of Code Section 409A) and, for purposes of any such provision of this Agreement under which (and to the extent) deferred compensation subject to Code Section 409A is paid, references to a “termination” or “termination of
employment” or like references shall mean separation from service. If Employee is deemed on the date of separation from service with the Bank to be a “specified employee”, within the meaning of that term under Code
Section 409A(a)(2)(B) and using the identification methodology selected by the Bank from time to time, or if none, the default methodology, then with regard to any payment or benefit that is required


  
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to be delayed in compliance with Code Section 409A(a)(2)(B), such payment or benefit shall not be made or provided prior to the earlier of (i) the expiration of the six-month period
measured from the date of Employee’s separation from service or (ii) the date of Employee’s death. In the case of benefits, however, Employee may pay the cost of benefit coverage, and thereby obtain benefits, during such six month
delay period and then be reimbursed by the Bank thereafter when delayed payments are made pursuant to the next sentence. On the first day of the seventh month following the date of Employee’s separation from service or, if earlier, on the date
of Employee’s death, all payments delayed pursuant to this Section 22 (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Employee in a lump sum,
and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 
 (d) With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits that are subject to Code Section 409A, except as permitted by Code Section 409A,
(i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not
affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by
Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect. All reimbursements shall be reimbursed in accordance with the Bank’s reimbursement policies but in no event later
than the calendar year following the calendar year in which the related expense is incurred. 
 (e) If under this Agreement, an
amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment. 
 (f) When, if ever, a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within ten (10) days following the date of
termination”), the actual date of payment within the specified period shall be within the sole discretion of the Bank. 

(g) Notwithstanding any of the provisions of this Agreement, the Bank shall not be liable to Employee if any payment or benefit which is
to be provided pursuant to this Agreement and which is considered deferred compensation subject to Code Section 409A otherwise fails to comply with, or be exempt from, the requirements of Code Section 409. 

  
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 IN WITNESS WHEREOF, the Bank has caused this Employment Agreement to be signed by its duly
authorized officer and Employee has hereunto set his hand and seal on the day and year first above written. 
  

			
	ALLIANCE BANK
		
	By:	 	 /s/ William E. Doyle, Jr.

	Title: President & CEO


  

	
	ATTEST:
	
	 /s/ Brenda I. Harrell


  

			
	EMPLOYEE
		
	 /s/ Jean S. Houpert
	 	(SEAL)


  

	
	ATTEST:
	
	 /s/ Brenda I. Harrell



  
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