Document:

Employment Agreement, dated August 3, 2007

 Exhibit 10.9(e) 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is made and entered into this 3rd day of August 2007, effective as of April 20, 2007 (the “Effective
Date”), between American Oriental Bioengineering, Inc., a Nevada corporation with its principal place of business located at No. 4018 Jintian Road, Anlian Plaza, 12F Suite B02, Futian, District Shenzhen, PRC 518026 (the
“Company”), and Wilfred Chow, residing in New York, New York (the “Executive”). 
 WHEREAS, the business of the Company
and its affiliates consists of the development and production of bioengineered products and traditional Chinese medicinal products that combine modern biotechnology and traditional Chinese medical technology, and activities incidental thereto (the
“Business”); 
 WHEREAS, the Company has expended considerable time, effort and resources in the development of certain
Confidential Information, as defined in paragraph 10 herein below, which must be maintained as confidential in order to ensure the success of the Business; 
 WHEREAS, prior to the Effective Date, the Executive has been employed by the Company in the position of, and has been performing the services required of, Vice President of Finance of the Company; 
 WHEREAS, the Executive and the Company desire to memorialize the terms and conditions of the Executive’s employment by the Company in the position
of Vice President of Finance; and 
 WHEREAS, the Executive has had, prior to the Effective Date, and will continue to have, as of the
Effective Date, access to such Confidential Information, as defined in paragraph 10 herein below. 
 NOW, THEREFORE, in consideration of the
covenants and promises contained herein, the compensation and benefits received by the Executive from the Company, and the access given the Executive to the aforesaid Confidential Information, as defined in paragraph 10 herein below, and for other
good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Company and the Executive agree as follows: 
 1. EMPLOYMENT PERIOD. The Company offers to employ the Executive, and the Executive agrees to be employed by the Company, in accordance with the terms and subject to the conditions of this Agreement commencing on the Effective Date and
terminating on the first anniversary of the Effective Date (the “Scheduled Termination Date”), unless terminated prior thereto in accordance with the provisions of paragraph 9 herein below. The term of this Agreement shall be automatically
renewed for successive one (1) year terms, unless either party gives the other party written notice of its intention not to renew the Agreement no later than 90 days prior to the expiration of the then current term. A determination by the
Company not to renew this Agreement without “Company Cause” shall be deemed a termination of employment for purposes of paragraph 9(d) and the terms thereof shall apply. 

 2. POSITION AND DUTIES. During the term of the Executive’s employment hereunder, the Executive will
serve in the position, and assume duties and responsibilities consistent with the position of Vice President of Finance unless and until otherwise instructed by the Company. The Executive agrees to devote substantially all of his working time,
skill, energy and best business efforts during the term of his employment with the Company. The Executive covenants and agrees that for so long as he is employed by the Company, the Executive shall inform the Company of each and every business
opportunity related to the business of the Company of which the Executive becomes aware, and that the Executive will not, directly or indirectly, exploit any such opportunity for the Executive’s own account, nor will the Executive render any
services to any other person or business, acquire any interest of any type in any other business or engage in any activities that conflict with the Company’s best interests or which is in competition with the Company. The Executive affirms that
no obligation exists between the Executive and any other entity which would prevent or impede the Executive’s immediate and full performance of every obligation of this Agreement. 
 3. HOURS OF WORK. The Executive’s normal days and hours of work shall coincide with the Company’s regular business hours. The nature of the
Executive’s employment with the Company requires flexibility in the days and hours that the Executive must work, and may necessitate that the Executive work on other or additional days and hours. The Company reserves the right to require the
Executive, and the Executive agrees, to work during other or further days or hours than the Company’s normal business hours. 
 4.
LOCATION. The locus of the Executive’s employment with Company shall be the Company’s office located at No. 4018 Jintian Road, Anlian Plaza, 12F Suite B02, Futian, District Shenzhen, PRC 518026. The Company may, in its sole
discretion, require the Executive to travel to and reside in, on a temporary, indefinite or permanent basis, in any other location throughout the world in which the Company or any of its affiliates has offices. 
 5. BASE SALARY. In consideration of the Executive’s services under this Agreement, the Company shall pay or cause to pay, and the Executive agrees
to accept, during the one year period following the Effective Date (the “First Year”), an annual base salary of US$160,000, less all applicable taxes and other appropriate deductions, paid in accordance with the Company’s standard
payroll practices. Following the First Year, the Executive’s base salary shall be reviewed annually by the Board of Directors of the Company. The decision to increase or decrease the Executive’s base salary and the amount of any such
increase or decrease are within the sole discretion of the Board of Directors. Nothing contained in this paragraph 5 is intended to be, or should be construed as, a promise or guarantee by the Company to increase the Executive’s base salary.
The Company reserves the right, in its sole discretion, and the Executive hereby acknowledges the Company’s right, to make no such payments or make reduced payments in connection with any periods of unauthorized or unjustified absence from work
or in the event that the Executive is unavailable or unable to perform the Executive’s duties for the Company without adequate justification, as determined by the Company in its sole discretion. 
 6. BONUS COMPENSATION. During the term hereof, the Executive shall have the opportunity to earn an annual performance based bonus equal to up to
US$40,000 based upon the Company’s attainment of certain annual net income targets, as set by the 

 
Board of Directors in its sole discretion on an annual basis. Such bonus amount may be increased in the event the annual net income target is exceeded,
however, shall not exceed 300% of the annual performance based bonus. The Board of Directors may, from time to time, also pay such other bonus or bonuses to the Executive as the Board of Directors, in its sole discretion, deems appropriate. In order
to receive the annual performance based bonus, the Executive must continue to be employed by the Company through the end of the period with respect to which the annual performance bonus has been earned. The annual performance based bonus will be
paid to the Executive at such time as bonuses for the applicable period are regularly paid to senior executives of the Company. 
 7. STOCK
OPTIONS. The Executive shall receive stock options to purchase 100,000 shares of common stock of the Company for the First Year. The exercise price per share shall be determined by the Compensation Committee of the Board and shall be at least equal
to the last closing price of the Company’s common stock, as reported by Bloomberg LP, on the New York Stock Exchange, or any such securities exchange on which the Company’s common stock is listed or quoted for trading, on April 20,
2007, the date of grant (the “Stock Options”). The Stock Options shall vest in five equal installments on each April 19 of the first, second, third, fourth and fifth anniversary of the grant, subject to the Executive’s continued
employment with the Company on each vesting date, and further to subject to accelerated vesting under the applicable incentive plan, the applicable grant agreement and the terms of this Agreement. The Stock Options shall be granted under the
Company’s 2006 Equity Incentive Plan and pursuant to the terms of the Company’s standard form of stock option agreement approved by the Board of Directors. The Compensation Committee shall determine, on an annual basis, the number of Stock
Options to be granted to the Executive for each renewal period. 
 8. REIMBURSEMENT OF EXPENSES. During the term of this Agreement, in
accordance with the Company’s expense reimbursement policy, the Executive shall be entitled to reimbursement for reasonable expenses (including, without limitation, reasonable travel expenses) paid or incurred by him, in connection with and
related to the performance of his duties and responsibilities hereunder for the Company. All requests by Executive for reimbursement for such expenses must be supported by appropriate invoices, vouchers, receipts or such other supporting
documentation in such form and containing such information as the Company may from time to time require, evidencing that the Executive, in fact, incurred or paid said expenses. 
 9. TERMINATION. 
 a. DEATH OR RESIGNATION. If
the Executive dies or resigns during the term of this Agreement, this Agreement shall automatically terminate on the date of the Executive’s death or resignation and, following the date of the Executive’s death or resignation, the Company
shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive (i) any earned but unpaid base salary
through the Executive’s date of death or resignation, (ii) for any unused accrued and unforfeited vacation, and (iii) subject to paragraph 8 hereinabove, for any unreimbursed business expenses incurred by the Executive prior to his
death or resignation. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions. 

 b. DISABILITY. At any time during the term of this Agreement, the Company may terminate this Agreement
and the Executive’s employment with the Company because of the Executive’s “Disability,” by written notice to the Executive. For purposes of this Agreement, “Disability” shall mean, if at the end of any calendar month
during the term of this Agreement, the Executive, as a result of mental or physical illness or injury, is or has been unable to perform his duties under this Agreement, without or without reasonable accommodation, for (i) the four
(4) preceding consecutive calendar months, or (ii) any 180 days in the previous twelve (12) months. If this Agreement is terminated because of the Executive’s “Disability,” the Company shall have no further obligations
or liability to the Executive or his heirs, administrators or Executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive (x) any earned but unpaid base salary through the date of termination
for “Disability”, at the rate then in effect, (y) for any unused accrued and unforfeited vacation, and (z) subject to paragraph 8 hereinabove, for any unreimbursed business expenses incurred by the Executive prior to his last
date of employment with the Company. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions. 
 c. “CAUSE.” At any time during the term of this Agreement, the Company may terminate this Agreement and the Executive’s employment with
the Company, at any time, for “Company Cause.” For purposes of this Agreement, “COMPANY CAUSE” shall mean: (i) the good faith determination by the Company’s Board of Directors that there has been continued neglect by
the Executive of his duties hereunder, or (ii) willful misconduct on the Executive’s part in connection with the performance of his duties hereunder, PROVIDED HOWEVER, that the Executive shall have been given one (1) written notice of
such determination by the Company’s Board of Directors of continued neglect or willful misconduct and thereafter the Executive shall not have cured such neglect or willful misconduct to the satisfaction of the Company’s Board of Directors
within fifteen (15) days of the Executive’s receipt of such written notice, (iii) the Executive is convicted of or pleads guilty or no contest to a felony or other conduct involving moral turpitude. If this Agreement and the
Executive’s employment is terminated for “Company Cause,” following the Executive’s last date of employment with the Company, the Company shall have no further obligations or liability to the Executive or his heirs,
administrators or Executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive (x) any earned but unpaid base salary through the Executive’s last date of employment, at the rate then in
effect, (y) for any unused accrued and unforfeited vacation, and (z) subject to paragraph 8 hereinabove, for any unreimbursed business expenses incurred by the Executive prior to the last date of employment with the Company. The Company
shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions. 
 d. TERMINATION BY THE CHIEF EXECUTIVE OFFICER. At any time during the term of this Agreement, the Chief Executive Officer of the Company, in his sole discretion, may terminate this Agreement and the Executive’s employment with the
Company without “Company Cause” by delivering to the Executive written notice. If this Agreement and the Executive’s employment with the Company is terminated without “Company Cause,” following the Executive’s last date
of employment with 

 
the Company, the Company shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to
compensation and benefits thereafter, except for the obligation to pay the Executive (i) any earned but unpaid base salary through the Executive’s last date of employment, at the rate then in effect, (ii) for any unused accrued and
unforfeited vacation, (iii) his base salary in effect at the time of his termination in accordance with paragraph 5 hereinabove through the Scheduled Termination Date or renewal period, as the case may be, and (iv) subject to paragraph 8
hereinabove, for any unreimbursed business expenses incurred by the Executive prior to his last date of employment with the Company. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and
FUTA, and other appropriate deductions. 
 10. CONFIDENTIAL INFORMATION. 
 a. The Executive expressly acknowledges that, in the performance of his duties and responsibilities relating to his employment with the Company, he has
been exposed and will continue to be exposed to the trade secrets, business and/or financial secrets and confidential and proprietary information of the Company, its affiliates and/or its clients or customers (“Confidential Information”).
The term “Confidential Information” means information or material that has actual or potential commercial value to the Company, its affiliates and/or its clients or customers and is not generally known to and is not readily ascertainable
by proper means to persons outside the Company, its affiliates and/or its clients or customers, and includes, without limitation, the following, whether or not expressed in a document or medium, regardless of the form in which it is communicated,
whether or not such information is on the Company’s forms, memos, computer disc or tape, or otherwise, whether or not such information is in written or verbal form, and whether or not marked “trade secret” or “confidential”
or any similar legend: (i) sales information, (ii) operations information, (iii) financial information, (iv) administrative information, (v) research information, (vi) customer information, (vii) supplier
information, and (viii) any other information concerning the Company, its business, its properties or its affairs that the Company deems to be confidential or that is confidential according to industry practices. 
 b. Except as authorized in writing by the Company’s Chief Executive Officer, during the term of this Agreement, any renewal periods, and thereafter
until such time as any such Confidential Information becomes generally known to and readily ascertainable by proper means to persons outside the Company, its affiliates and/or its clients or customers, the Executive agrees to keep strictly
confidential and not use or disclose, cause to be used or disclosed, or permit to be used or disclosed, to any person or entity and/or for his personal benefit or the benefit to any other person or entity, any Confidential Information. 

c. The Executive agrees that upon termination of his employment with the Company for any reason, he will promptly return to the Company all
Confidential Information within his possession or within his power to control, including, without limitation all copies of such Confidential Information, all abstracts of such Confidential Information and any other information containing such
Confidential Information in whole or in part. 

 d. The Executive affirms that he did not and does not possess, and has not relied and will not rely upon
the protected trade secrets or confidential or proprietary information of the Executive’s prior employer(s) in providing services to the Company. 
 11. OWNERSHIP AND ASSIGNMENT OF INVENTIONS. 
 a. The Executive acknowledges that, in connection with his
duties and responsibilities relating to his employment with the Company, the Executive and/or other employees of the Company working with the Executive, without the Executive or under the Executive’s supervision, may have created, conceived of,
made, prepared, worked on or contributed to, and/or may create, conceive of, make, prepare, work on or contribute to, the creation of, or may have been or may be asked by the Company and/or its affiliates or customers to create, conceive of, make,
prepare, work on or contribute to the creation of, without limitation, lists, business diaries, business address books, documentation, ideas, concepts, inventions, designs, works of authorship, computer programs, audio/visual works, developments,
proposals, works for hire or other materials (“Inventions”). To the extent that any such Inventions related or relate to any actual or reasonably anticipated business of the Company or any of its affiliates or customers, or falls within,
is suggested by or results from any tasks assigned to the Executive for or on behalf of the Company or any of its affiliates or customers, the Executive expressly acknowledges that all of his activities and efforts relating to any Inventions,
whether or not performed during the Executive’s or the Company’s regular business hours, are within the scope of the Executive’s employment with the Company and that the Company owns all right, title and interest in and to all
Inventions, including, to the extent that they exist, all intellectual property rights thereto, including, without limitation, copyrights, patents and trademarks in and to all Inventions. The Executive also acknowledges and agrees that the Company
owns and is entitled to sole ownership of all rights and proceeds to all Inventions. 
 b. The Executive expressly acknowledges and agrees to
assign to the Company, and hereby assigns to the Company, all of the Executive’s right, title and interest in and to all Inventions, including, to the extent they exist, all intellectual property rights thereto, including, without limitation,
copyrights, patents and trademarks in and to all Inventions. 
 c. In connection with all Inventions, the Executive agrees to disclose any
Invention promptly to the Company and to no other person or entity. The Executive further agrees to execute promptly, at the Company’s request, specific written assignments of the Executive’s right, title and interest in any Inventions,
and do anything else reasonably necessary to enable the Company to secure or obtain a copyright, patent, trademark or other form of protection in or for any Invention in the United States or other countries. The Executive further agrees that the
Company is not required to designate the Executive as an author of or contributor to any Invention or to secure the Executive’s permission to change or otherwise alter any Invention. 
 d. The Executive acknowledges that all rights, waivers, releases and/or assignments granted herein and made by the Executive are freely assignable by the
Company and are made for the benefit of the Company and its affiliates, subsidiaries, licensees, successors and assigns. 

 e. The Executive agrees to waive, and hereby does waive, for the benefit of all persons, any and all
right, title and interest in the nature of “moral rights” or “droit moral” granted to the Executive in any country in the world. 
 12. NON-COMPETITION AND NON-SOLICITATION. Because of the nature of the Company’s Business, and because, as a result of his employment with the Company, the Executive has been and will continue to be exposed to
Confidential Information, the Executive acknowledges that the Company would sustain grievous harm in the event that he were to disclose Confidential Information, engage in business activities that compete with the Business, appropriate or divert
business or customers of the Company or its affiliates and/or induce employees or consultants of the Company or its affiliates to leave the employment of the Company or its affiliates. The Executive acknowledges that the Company has a legitimate
business interest in protecting itself from the aforementioned harm and in the protection and maintenance of the Confidential Information and of the good will and customer relationships of the Company and its affiliates. Therefore, the Executive
hereby agrees and covenants to be bound by the non-competition and non-solicitation restrictions set forth herein below, which restrictions the Executive agrees and acknowledges are reasonable and necessary and do not impose undue hardship or
burdens on the Executive. 
 a. The Executive agrees that, during his employment with the Company and for a period of three (3) years
following the termination of his employment with the Company, he and his affiliates shall not directly or indirectly own, manage, operate, control, be employed by, consult for, be a shareholder of, be an officer of, participate in, contract with or
be connected in any capacity or any manner with any person or entity whose business activities directly or indirectly (whether through related persons, entities or otherwise) compete with the Business anywhere in the United States, Canada and the
People’s Republic of China, where the Company or its affiliates is engaged in the Business, PROVIDED HOWEVER, that the Executive shall not be prevented from owning an interest in a publicly traded company so long as the fair market value of
such interest at the date of acquisition is less than US$100,000. 
 b. The Executive agrees that during the period of his employment with
the Company and for a period of three (3) years following the termination of his employment with the Company, for any reason, he will not, within the United States, Canada and the People’s Republic of China, where the Company or its
affiliates is engaged in the Business, directly or indirectly recruit, induce, divert, supervise, employ, manage, hire or entice, or cause to be recruited, induced, diverted, supervised, employed, managed, hired or enticed, any employee, consultant
or independent contractor of the Company or its affiliates to leave or terminate the employment or other relationship thereof, for any reason. 
 c. The Executive agrees that during the period of his employment with the Company and for a period of three (3) years following the termination of his employment with the Company, he will not, within the United States, Canada and the
People’s Republic of China, where the Company or its affiliates is engaged in the Business, directly or indirectly appropriate, call on, induce, divert or solicit, or assist another to appropriate, call on, induce, divert or solicit any actual
or potential business or customer away from the Company or its affiliates, or attempt to do any of the foregoing, or otherwise induce or attempt to induce any actual or potential business or customer of the Company or its affiliates, to terminate or
adversely modify its relationship with the Company or 

 
its affiliates, or to enter into a relationship with or conduct business with the Company or its affiliates, which actual or potential business or customer
the Executive was involved with or had a relationship with or whose identity became known to the Executive in connection with the Executive’s employment with the Company. 
 d. If any of the restrictive covenants set forth in paragraphs 12(a), (b) and (c) of this Agreement is held to be invalid, illegal or
unenforceable (in whole or in part), such restrictive covenant shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and a court of competent jurisdiction shall have the power to modify,
any such restrictive covenant to the extent necessary to render such provision enforceable, and the remaining restrictive covenant shall not be affected thereby. 
 e. In the event of a violation of any of the restrictive covenants set forth in paragraphs 12(a), (b) and (c) of this Agreement, if the Executive is prevented by a court or arbitrator from committing any
further violation, whether by a temporary restraining order, injunction or otherwise, the time periods set forth in paragraphs 12(a), (b) and (c) of this Agreement shall be computed by commencing the periods on the date of the applicable
court or arbitrators’ order and continuing them from that date for the full period provided. 
 f. The Executive shall have the right to
request a waiver of all or part of the restrictive covenants contained in paragraphs 12(a), (b) and (c) of this Agreement by providing the Company with a written request for such a waiver that contains all relevant details. The Company
may, in its sole discretion, waive all or part of the restrictive covenants contained in paragraphs 12(a), (b) and (c) of this Agreement on such terms and conditions, and to such extent, as it, in its sole discretion, deems appropriate.
Such waiver must be in writing. 
 g. The parties acknowledge that this Agreement would not have been entered into, that the benefits
described in paragraphs 5, 6 and 7 would not have been promised to the Executive by the Company, in the absence of the Executive’s covenants and promises set forth in paragraphs 12(a), (b) and (c) of this Agreement. 
 13. DISPUTE RESOLUTION. The Executive and the Company agree that any dispute or claim, whether based on contract, tort, discrimination, retaliation, or
otherwise, relating to, arising from, or connected in any manner with this Agreement or with the Executive’s employment with Company shall be resolved exclusively through final and binding arbitration under the auspices of the Hong Kong Chamber
of Commerce (“HKCC”) in accordance with the commercial arbitration rules and supplementary procedures for international commercial arbitration of the HKCC. The arbitration shall be held in Hong Kong. There shall be three arbitrators: one
arbitrator shall be chosen by each party to the dispute and those two arbitrators shall choose the third arbitrator. Each party shall cooperate with the other in making full disclosure of and providing complete access to all information and
documents requested by the other party in connection with the arbitration proceedings. Arbitration shall be the sole, binding, exclusive and final remedy for resolving any dispute between the parties. The arbitrators shall have jurisdiction to
determine any claim, including the arbitrability of any claim, submitted to them. The arbitrators may grant any relief authorized by law for any properly established claim. The interpretation and enforceability of this paragraph of this Agreement
shall be governed and construed in accordance with the United 

 
States Federal Arbitration Act, 9. U.S.C. ss.1, ET SEQ. More specifically, the parties agree to submit to binding arbitration any claims for unpaid wages or
benefits, or for alleged discrimination, harassment, or retaliation, arising under Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the National Labor Relations Act, the Age Discrimination in Employment Act, the Americans With
Disabilities Act, the Executive Retirement Income Security Act, the Civil Rights of 1991, the Family and Medical Leave Act, the Fair Labor Standards Act, Sections 1981 through 1988 of Title 42 of the United States Code, COBRA, and any other federal,
state, or local law, regulation, or ordinance, and any common law claims, claims for breach of contract, or claims for declaratory relief. The Executive acknowledges that the purpose and effect of this paragraph is solely to elect private
arbitration in lieu of any judicial proceeding he might otherwise have available to his in the event of an employment-related dispute between his and the Company. Therefore, the Executive hereby waives his right to have any such employment-related
dispute heard by a court or jury, as the case may be, and agrees that his exclusive procedure to redress any employment-related claims will be arbitration. 
 14. MISCELLANEOUS. 
 a. Telephones, stationery, postage, e-mail, the internet and other resources made
available to the Executive by the Company, are solely for the furtherance of the Company’s business. 
 b. All issues concerning,
relating to or arising out of this Agreement and from the Executive’s employment by the Company, including, without limitation, the construction and interpretation of this Agreement, shall be governed by and construed in accordance with the
internal laws of the State of New York, without giving effect to that State’s principles of conflicts of law. 
 c. The Executive and
the Company agree that any provision of this Agreement deemed unenforceable or invalid may be reformed to permit enforcement of the objectionable provision to the fullest permissible extent. Any provision of this Agreement deemed unenforceable after
modification shall be deemed stricken from this Agreement, with the remainder of the Agreement being given its full force and effect. 
 d.
The Company shall be entitled to equitable relief, including injunctive relief and specific performance as against the Executive, for the Executive’s threatened or actual breach of paragraphs 10, 11 or 12 of this Agreement, as money damages for
a breach thereof would be incapable of precise estimation, uncertain, and an insufficient remedy for an actual or threatened breach of paragraphs 10, 11 or 12 of this Agreement. The Executive and the Company agree that any pursuit of equitable
relief in respect of paragraphs 10, 11 or 12 of this Agreement shall have no effect whatsoever regarding the continued viability and enforceability of paragraph 13 of this Agreement. 
 e. Any waiver or inaction by the Company for any breach of this Agreement shall not be deemed a waiver of any subsequent breach of this Agreement.

 f. The Executive and the Company independently have made all inquiries regarding the qualifications and business affairs of the 

 
other which either party deems necessary. The Executive affirms that he fully understands this Agreement’s meaning and legally binding effect. Each
party has participated fully and equally in the negotiation and drafting of this Agreement. Each party assumes the risk of any misrepresentation or mistaken understanding or belief relied upon by his or it in entering into this Agreement.

 g. The Company and the Executive agree that the Executive’s obligations to the Company during the Executive’s employment with
the Company, as well as any other obligation of the Executive under this Agreement, may be assigned to any successor in interest to the Company or any division or affiliate of the Company in its sole discretion and without additional consideration
or prior notice to the Executive, but that nothing requires the Company to do so. The Executive’s obligations under this Agreement are personal in nature and may not be assigned by the Executive to any other person or entity. 
 h. The Company and the Executive acknowledge and agree that future alterations to the Executive’s work hours, working title, management or
supervisory responsibilities, number of subordinate employees, sales or promotional budgets, reporting relationships within the Company or with businesses affiliated with the Company, management responsibilities or duties, or similar changes or
alterations may occur periodically during the Executive’s employment with the Company. The Company and the Executive agree that the Company, in its sole discretion, may implement such alterations or adjustments for any or no reason and that any
such action shall not constitute a breach of this Agreement so long as the Company continues to perform its remaining obligations as provided by this Agreement. 
 i. This instrument constitutes the entire Agreement between the parties regarding its subject matter. When signed by all parties, this Agreement supersedes and nullifies all prior or contemporaneous conversations,
negotiations, or agreements, oral and written, regarding the subject matter of this Agreement. In any future construction of this Agreement, this Agreement should be given its plain meaning. This Agreement may only be amended only by a writing
signed by the Company and the Executive. 
 j. Notwithstanding the termination of this Agreement and of the Executive’s employment with
the Company for any reason, paragraphs 10, 11 and 12 of this Agreement shall continue in full force and effect in accordance with their terms following such termination. 
 k. This Agreement may be executed in counterparts, a counterpart transmitted via facsimile, and all executed counterparts, when taken together, shall constitute sufficient proof of the parties’ entry into this
Agreement. The parties agree to execute any further or future documents which may be necessary to allow the full performance of this Agreement. This Agreement contains headings for ease of reference. The headings have no independent meaning.

 THE EXECUTIVE STATES THAT HE HAS FREELY AND VOLUNTARILY ENTERED INTO THIS AGREEMENT AND THAT HE HAS READ AND UNDERSTOOD EACH AND EVERY PROVISION THEREOF.
THIS AGREEMENT IS EFFECTIVE UPON THE EXECUTION OF THIS AGREEMENT BY BOTH PARTIES. 
 UNDERSTOOD, AGREED, AND ACCEPTED: 
  

							
	 WILFRED CHOW
	 	AMERICAN ORIENTAL BIOENGINEERING, INC.
				
	Name:	 	 /s/ Wilfred Chow
	 	By:	 	 /s/ Tony Liu

		 		 	Name:	 	Tony Liu
		 		 	Title:	 	Chairman and Chief Executive Officer
		
	Date: August 3, 2007	 	Date: August 3, 2007Supplemental Executive Retirement Agreement

 Exhibit 10.4 
 SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT WITH LARRY A. HEATON 
 THIS SUPPLEMENTAL RETIREMENT PLAN
(hereinafter the “Plan”) is adopted by Franklin Community Bank, National Association, organized and existing under the laws of the United States of America (hereinafter sometimes referred to as the “Bank” and sometimes referred
to as the “Plan Sponsor”) and is effective January 11, 2007 (the “Effective Date” of the Plan for the benefit of LARRY A. HEATON (hereinafter referred to as the “Employee”). 
 WITNESSETH: 
 WHEREAS, Employee is employed
by and/or in an executive officer of the Plan Sponsor; and 
 WHEREAS, the Plan Sponsor desires to retain the services of Employee and deems
it appropriate to provide for additional supplemental retirement income for Employee pursuant to the terms of the Plan in consideration of his services and as an incentive to remain in the employ of the Plan Sponsor; 
 WITNESSETH: 
 ARTICLE 1 
 Definition of Terms 
 The following
words and terms as used in this Plan shall have the meaning set forth below, unless a different meaning is clearly required by the context: 
 1.1 “Act”: The Employee Retirement Income Security Act of 1974, as the same may be amended from time to time, or the corresponding sections of any, subsequent legislation which replaces it, and, to the extent not inconsistent
therewith, the regulations issued thereunder. 
 1.2 “Administrator”: The plan administrator provided for in Article VIII hereof.

 1.3 “Bank”: Franklin Community Bank, National Association, a bank organized under the laws of the United States of America.

 1.4 “Affiliate”: Any subsidiary, affiliate or other related business entity to the Corporation. 
 1.5 “Beneficiary”: The person or persons designated by Participant or otherwise entitled pursuant to Article IV to receive benefits under the
Plan attributable to such Participant after the death of such Participant. 
 1.6 “Board”: The present and any succeeding Board of
Directors of the Bank. 
 1.7 “Change of Control Event”: A change in the ownership of the Bank, a change in the effective control
of the Bank, or a change in the ownership of a substantial portion of the assets of the Bank, consistent with and interpreted in accordance with Code Section 409A and regulations issued thereunder, and specifically defined as follows:

 In order to constitute a Change in Control Event as to the Employee, the Change in Control Event shall relate to: 
 (i) the corporation for whom the Employee is performing services at the time of the Change in Control Event; or 
 (ii) the corporation that is liable for the payment of the deferred compensation (or all corporations liable for the payment if more than one corporation
is liable) but only if either the deferred compensation is attributable to the performance of service by the Employee for such corporation (or corporations) or there is a bona fide business purpose for such corporation or corporations to be liable
for such payment and, in either case, no significant purpose of making such corporation or corporations liable for such payment is the avoidance of Federal income tax; or 
  

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 (iii) a corporation that is a majority shareholder of a corporation identified in either subparagraph
(i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in either subparagraph (i) or (ii) above.

 (a) Change In Ownership. A change in the ownership of a corporation shall occur on the date that any one person, or more than one person
acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation. However, if
any person, or more than one person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of a corporation, then the acquisition of additional stock by the same person or persons
shall not be considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation). 
 (b) Change In Effective Control. Notwithstanding the fact that a corporation has not undergone a change in ownership as described above, a change in the effective control of a corporation shall occur only on the date that either:

 (i) any one person or more than one person acting as a group acquires (or has acquired during the twelve month period ending on the date of
the most recent acquisition by such person or persons) ownership of stock of the corporation possessing 30% or more of the total voting power of the stock of such corporation; or 
 (ii) a majority of members of the corporation’s Board of Directors is replaced during any 12-month period by Directors whose appointment or election
is not endorsed by a majority of the members of the corporation’s Board of Directors prior to the date of the appointment or election, provided that for purposes of this subparagraph, the term “corporation” refers solely to the
relevant corporation identified above, for which no other corporation is a majority shareholder. 
 (c) Change In Ownership of Assets. A
change in the ownership of a substantial portion of the assets of a corporation shall occur on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the twelve-month period ending on the date of
the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the corporation immediately prior to
such acquisition or acquisitions. For this purpose, “gross fair market value” shall mean the value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with
such assets. 
 A transfer of assets by a corporation shall not be treated as a change in the ownership of such assets if the assets are
transferred to: 
 (i) a shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock;

 (ii) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the corporation; or

 (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, 50% or more of the total value or voting
power of all the outstanding stock of the corporation; or 
 (iv) an entity, at least 50% of the total value or voting power of which is
owned, directly or indirectly, by a person who is a “related person” under applicable Treasury Regulations. 
 There shall be no
Change in Control Event when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer. 
 1.8 “Code”: The Internal Revenue Code of 1986, as the same may be amended from time to time, or the corresponding section of any subsequent Internal Revenue Code, and, to the extent not inconsistent
therewith, regulations issued thereunder. 
 1.9 “Corporation”: MainStreet BankShares, Inc., the parent corporation owning the
Bank. 
 1.10 “Delayed Retirement Date”: In the event Participant continues in the active employment of the Bank beyond his Normal
Retirement Date, the date Participant retires from employment with the Bank. 
  

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 1.11 “Disability Retirement Date”: The date Participant retires as a result of a Disability.
For purposes hereof, the existence of a “Disability” or the status of being “Disabled” shall be considered present during the period for which Participant either: 
 (i) Is determined by the Federal Social Security Administration to be totally disabled, as that term is defined for purposes of Federal
Social Security disability benefits, and for which he receives such benefits after the required waiting period prior to his Normal Retirement Date, or 
 (ii) Is determined by the applicable fiduciary to be disabled for purposes of entitlement to disability benefits under any long term disability plan which is maintained by the Bank and under which Participant is
covered, and for which Participant receives such benefits (so long as the definition of disability under such plan complies with the requirements of 26 CFR 31.409 A-3(g)) prior to his Normal Retirement Date, 
 provided the cause of such disability occurred when Participant was participating in this Plan. The Administrator shall have the right to require proof of continuing
Disability. Failure by Participant to provide such evidence as may, from. time to time, be required by the Administrator prior to Participant’s attainment of his Normal Retirement Date shall result in the discontinuance of his Disability
Retirement status and the termination of his Status as Disabled under the Plan. The determination of Disability shall be made by the Administrator in accordance with standards uniformly applied to all other employees of the Bank participating in
similar plans, on the advice of one or more physicians appointed or approved by the Bank if deemed necessary or advisable by the Administrator, and the Administrator shall have the right to require further medical examinations from time to time to
determine whether there has been any change in the Participant’s physical condition. 
 1.12 “Early Retirement Date”: In the
event Participant is in active employment and has been for at least 5 Plan Years after the Effective Date, is at least 55 years of age but not 65 years of age, the date Participant retires from employment with the Bank. 

	1.13	“Effective Date”: The Effective Date of the Plan is January 11, 2007. 

 1.14 “Normal Retirement Date”: The day of the calendar month coinciding with or next following date on which the Participant attains age sixty-five (65). 
 1.15 “Participant”: LARRY A. HEATON. 
 1.16 “Plan”: This document as contained herein or as duly amended. 
 1.17 “Plan Sponsor”: Franklin Community
Bank, National Association. 
 1.18 “Plan Year”: A year twelve (12) month period commencing on January 11 and ending on
January 10 of each next following year. 
 1.19 “Retirement Benefit”: The amount due Participant or his designated Beneficiary
under the Plan, as determined pursuant to Article III hereof. 
 ARTICLE II 
 Eligibility for Benefits 
 2.1 Eligibility. Subject to the further
provisions of this Plan, Participant shall be eligible to receive a benefit determined under Article III, IV or V of this Plan following his termination of employment with the Plan Sponsor as provided therein; said payment of benefits to be paid in
accordance with the provisions of Article VI. 
 ARTICLE III 
 Supplemental Retirement Benefit 
 3.1 Determination of Supplemental Retirement Benefit.

 3.1(a) Subject to the terms and conditions set forth herein, upon Participant’s retirement or termination of employment with Bank on
or after his Normal Retirement Date, Participant shall receive a yearly benefit equal to the vested percentage of an amount equal to sixty five percent (65%) of the Participant’s final five (5) years average Compensation, reduced by
the Employer’s share of Participant’s Primary Social Security Benefit. Said yearly benefit shall be paid in annual installments for the life of the Participant in accordance with Section 6.1. 
  

 55 

 3.1(b) Subject to the terms and conditions set forth herein, upon Participant’s retirement or
termination of employment with Bank on or after his Early Retirement Date but prior to his Normal Retirement Date, Participant shall receive a yearly benefit equal to the vested percentage of an amount equal to 65% (reduced by 5% for each full or
partial year Participant’s age as of the Early Retirement Date is less than his age at the Normal Retirement Date) of Participant’s final five (5) years average compensation, reduced by Participant’s Primary Social Security
Benefit. Said yearly benefit shall be paid in annual installments for the life of the Participant in accordance with Section 6.1. If Participant receives benefits under this Section 3.1(b), Participant shall not be eligible for benefits
under Section 3.1(a). 
 3.2 Definitions. For purposes hereof the following terms shall have the following meaning: 

3.2(a) “Compensation” shall mean Participant’s total base salary, wages and bonus received by or made available to him by the Bank for a
Fiscal Year. Compensation shall be determined for Participant prior to any withholding or deductions and prior to any reduction for employee elective contributions to a Cafeteria Plan described in Section 125 of the Code or a qualified cash or
deferred arrangement described in Section 401(k) of the Code. However, Compensation shall exclude items of compensation as expense reimbursements and allowances, amounts contributed to or on behalf of Participant pursuant to this Plan or
any other employee benefit plan or program of the Bank or Corporation in which Participant is eligible to participate, or any other similar extraordinary remuneration. 
 3.2(b) “Primary Social Security Benefit” means the annual income to which Participant. is entitled at normal retirement under the provisions of the Federal Social Security Act as in effect on the first day
of the Plan Year in which he attains age sixty-six (66). If Participant does not qualify for, or loses, Social Security benefits to which he is entitled under the Federal Social Security Act because of failure to make application therefore, or for
any other reason, such Social Security benefits shall nevertheless be considered, for purposes of the Plan, as being received by Participant. It is the intent of this definition that Participant’s Supplemental Retirement Benefit shall be offset
by the actual social security benefits payable at that time. If Participant begins to receive the social security benefits earlier, such paid benefits will be used as an offset, and the offset will reflect the fact that the actual payments to the
Participant are less (because of the early payment) than the social security benefits used to determine the offset 
 ARTICLE IV 

Death Benefit 
 4.1 Death after
Commencement of Payment If Participant dies after his Supplemental Retirement Benefit commences to be paid and before Participant has received fifteen (15) annual payments pursuant to Section 3.1, the only benefits payable under the
Plan to his Beneficiary after his death shall be the remaining annual payments needed to ensure that fifteen (15) annual payments are made. 
 4.2 Supplemental Death Benefit. 
 4.2(a) If Participant dies before his Normal Retirement Date and while an employee of the
Bank but has not elected the Early Retirement Benefit and provided that Participant has designated a Beneficiary in anticipation of death, a Supplemental Death Benefit shall be paid for a period of 15 years to the Beneficiary in lieu of any other
benefits which would have been payable under this Plan in an annual amount equal to the excess of: 
 (i) 65% of the Participant’s
final five year average Compensation as if Participant’s date of death were his Normal Retirement Date and Participant retired on his Normal Retirement Date, over 
 (ii) One-half of the Primary Social Security Benefit. 
 The Supplemental Death Benefit shall be paid each year in fifteen
(15) annual installments commencing on the first day of the month following Participant’s death and on each anniversary thereof until fully paid. The Supplemental Death Benefit shall be paid in lieu of any Supplemental Retirement Benefit.

  

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 4.3 Beneficiary Designation. 
 4.3(a) Participant shall be entitled to designate a Beneficiary hereunder by filing a designation in writing with the Administrator on the form provided
for such purpose. Any Beneficiary designation made hereunder shall he effective only if signed and dated by Participant and delivered to the Administrator prior to the time of Participant’s death. Any Beneficiary designation hereunder shall
remain effective until changed or revoked hereunder. 
 4.3(b) Any Beneficiary designation may include multiple, contingent or successive
Beneficiaries and may specify the proportionate distribution to each Beneficiary. 
 4.3(c) A Beneficiary designation may be changed by
Participant at any time, or from time to time, by filing a new designation in writing with the Administrator. 
 4.3(d) If Participant dies
without having designated a Beneficiary, or if the Beneficiary so designated has predeceased him, then his estate shall be deemed to be his Beneficiary. 
 4.3(e) If a Beneficiary of Participant shall survive Participant but shall die before the Participant’s entire benefit under the Plan has been distributed, then, absent any other provision by Participant, the
unpaid balance thereof shall be distributed to the such other beneficiary named by the deceased Beneficiary to receive his interest or if none, to the estate of the deceased Beneficiary. If multiple beneficiaries are designated, absent any other
provision by the Participant, those named or the survivor of them shall share equally any amounts payable hereunder. 
 ARTICLE V 

Vesting Schedule 
 5.1 Vesting
Generally. 
 5.1(a) Except as set forth below and subject to the forfeiture events described in paragraph 5.2 hereof, Participant shall
be fully vested in his Supplemental Retirement Benefit upon the first to occur of: 
 (i) A Participant’s having reached his Normal
Retirement Date while employed by the Employer; or 
 (ii) The occurrence of a Change of Control Event; or 
 (iii) Participant’s Disability. 
 5.1(b) Vesting. 
 Absent an event described in Section 5.1(a) or 5.2, Participant’s Supplemental Retirement
Benefit under Section 3.1 shall vest in accordance with the following schedule: 
  

							
	 Plan Year Completed
	 	Vested %	 	Plan Year	 	Vested %
	1	 	0	 	8	 	50%
	2	 	0	 	9	 	50%
	3	 	0	 	10	 	75%
	4	 	0	 	11	 	75%
	5	 	50%	 	12	 	75%
	6	 	50%	 	13	 	75%
	7	 	50%	 	14	 	75%
		 		 	15	 	100%

 Participant shall be deemed to have ceased employment for purposes of the vesting schedule as of
the last day of the Plan Year immediately preceding the Plan Year during which Participant ceases employment. 
 5.1(c) Termination of
Employment Due to Disability. 
 In the event of termination of Participant’s employment on account of Disability, the Participant
will have a vested right to the Supplemental Retirement Benefit described in section 3.1(a) or 3.1(b), as the case may be. 
  

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 Solely for purposes of determining Participant’s final five (5) years average Compensation in order to compute
the benefit payable to him under this section 5.1(c), the Participant’s Disability Retirement Date shall be deemed to be the Participant’s Normal Retirement Date. The Supplemental Retirement Benefit payable to Participant as a result of
his Disability shall begin on the first day of the month next following the month Participant attains the age of 65 and shall be paid in accordance with the provisions of Article VI set forth below. 
 5.2 Forfeiture of Benefits. 
 5.2(a)
Notwithstanding any contrary provision hereof, the Supplemental Retirement Benefit with respect to Participant shall be forfeited upon the occurrence of any the following events: 
 (i) Participant’s voluntary termination of employment or a termination of employment by mutual agreement of Participant and Bank
prior to the earlier of Participant’s Normal Retirement Date or Participant’s election of an Early Retirement Benefit; 
 (ii) Termination of Participant’s employment with the Bank for “cause”; 
 (iii) Participant’s
entering “competition”, his making an “unauthorized disclosure of confidential information”, after his termination of or retirement from employment with the Bank, in which case all payments to or with respect to Participant shall
cease and all payments made to Participant or his Beneficiary under the Plan since the occurrence of such event of forfeiture shall be returned to the Bank (provided however, forfeiture shall not occur upon Participant’s entering into
competition following a Change of Control Event); or 
 (iv) The discovery by the Bank following Participant’s
termination of or retirement from employment with the Bank or following his death, that an event constituting “cause” sufficient for his termination of employment or discovery of Participant’s previous “unauthorized disclosure of
confidential information” prior to his termination, retirement or death before termination or retirement, in which case all payments under the Plan to or with respect to Participant shall cease and all payments previously made to Participant or
his Beneficiary under the Plan shall be returned to the Bank. 
 All determinations relative to the forfeiture of Supplemental Retirement Benefits hereunder
shall be made by the Board of Directors of the Bank. 
 5.2(b) For purposes of this Section 5.2: 
 (i) “Cause” means (a) the continued failure by Participant to perform his duties hereunder (other than any such failure resulting from his
incapacity due to physical or mental illness) or otherwise to comply with his obligations hereunder (which shall include, but not be limited to, compliance with policies and procedures applicable to employees of the Bank generally or to Participant
in his capacity as President and Chief Executive Officer and with Participant’s responsibilities as provided in any Employment Agreement with Bank or Corporation) after a written demand for performance with respect thereto is delivered to the
Participant by the Board (excluding Participant, if a member of the Board at such time) and which failure has not been cured as hereinafter provided, which demand specifically identifies the manner in which the Board believes that Participant has
not performed his duties or is otherwise in breach of his obligations hereunder; or (b) the engaging by the Participant in illegal conduct or any conduct which is demonstrably and materially injurious to the Bank or Corporation; or (c) the
issuance of a removal order or similar order by a governmental regulatory agency with appropriate jurisdiction prohibiting Participant from participating in the affairs of the Bank or Corporation. It is expressly understood that the
Participant’s attention to matters not directly related to the business of the Bank shall not provide a basis for termination for Cause by Bank so long as the Board has approved Participant’s engagement in such activities. Upon the
issuance of a written demand for performance pursuant hereto, Participant shall correct the deficiency diligently and promptly but in any event within 30 days, and if the Participant corrects such deficiency within this period, in the sole and
absolute discretion and judgment of the Board (without Participant if a member of the Board at such time), the deficiency shall not constitute Cause. If the Participant does not correct the deficiency, in the sole and absolute discretion and
judgment of the Board (without Participant if a member of the Board at such time), such deficiency shall constitute Cause for purposes of the termination of this Agreement. The conditions constituting Cause under Section 5.2(b)(i)(b) or
(c) above shall not require prior notice, a written demand for performance or an opportunity to cure. Notwithstanding anything to the contrary in this Agreement, in the event that Corporation believes that Participant is engaged in conduct
which may be a basis for “Cause” under Section 5.2(b)(i)(a) or (b), it may provide the Board with notice thereof and the Board shall promptly – but in any event within 5 days of receipt of such notice – review 

  

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the same and determine whether to make a written demand for performance under Section 5.2(b)(i)(a) or take employment action under
Section 5.2(b)(i)(b) and, in either case, shall promptly – but in no event later than 10 days after the notice from Corporation which originated the same – provide Corporation with a written explanation of the action taken or not
taken by the Board and the specific reason(s) therefor. If the action taken is to provide a written demand for performance, the Board shall report promptly, but in any event within 5 days after the conclusion of the 30 day cure period, the
Board’s determination as to whether the deficiencies for which such demand was given have been cured and the specific actions taken by the Participant which the Board has deemed sufficient to cure the deficiencies and, if the deficiencies have
not been cured, the action(s) proposed to be taken in respect to the Participant and the specific reasons for any such action(s) or inaction as determined by the Board. 
 (ii) “Competition” means engaging by Participant, without the written consent of the Board or a person authorized thereby, in
activity which violates any then applicable covenant not to compete of Participant in favor of Bank or, irrespective thereof, in a business as a more than one percent (1%) stockholder, an officer, a director, an employee, a partner, an agent, a
consultant, or any other individual or representative capacity if it involves: 
 (A) Engaging in, or entering into services
or providing advice to such other business of the type provided to Bank by Participant as an employee within a year prior to termination of Participant’s employment and pertaining to any line of business that the Bank conducted while
Participant was employed by Bank and continues to conduct and which such other business then conducts within a one hundred (100) mile radius of Rocky Mount, Virginia, or 
 (B) Employing or soliciting for employment any employees of the Bank, the Corporation or any Affiliate. 
 (iii) “Unauthorized disclosure of confidential information” means the disclosure, without the written consent of the Board or a
person authorized thereby by Participant which violates any then applicable confidentiality obligation of Participant to Bank or, irrespective thereof, any disclosure by Participant to any person other than as required by law or court order, or
other than to an authorized employee of the Bank, the Corporation or an Affiliate, or to a person to whom disclosure is necessary or appropriate in connection with the performance by Participant of his duties as an employee or director of the Bank,
the Corporation or an Affiliate (including, but not limited to, disclosure to the Corporation’s or an Affiliate’s outside counsel, accountants or bankers of financial data properly requested by such persons and approved by an authorized
officer of the Bank or the Corporation), any confidential information of the Bank or the Corporation or any Affiliate with respect to any of the products, services, customers, suppliers, marketing techniques, methods or future plans of the Bank, the
Corporation or any Affiliate; provided, however, that: 
 (A) Confidential information shall not include any information known
generally to and available for use by the public (other than as a result of unauthorized disclosure by Participant); and 
 (B) Participant shall be allowed to disclose confidential information to his attorney solely for the purpose of ascertaining whether such information is confidential within the intent of the Plan, but only so long as Participant both
discloses to his attorney the provisions of this paragraph and agrees not to waive the attorney-client privilege with respect thereto. 
 ARTICLE VI 
 Payment of Benefits 
 6.1 Time and Manner for Payment of Supplemental Benefit. 
 6.1(a) Participant’s Supplemental
Retirement Benefit to which Participant becomes entitled pursuant to Article III shall be payable commencing the first day of the seventh month following Participant’s Early, Normal or Delayed Retirement Date as the case may be, and annually on
the same day of the same month in each subsequent year thereafter until the benefit has been full paid. Subject to the forfeiture events of paragraph 5.2, benefits shall be payable to Participant in the amounts and for the periods as provided in
Article III. 
 6.1(b) Any Supplemental Death Benefit to which Participant becomes entitled pursuant to Article IV shall be payable to
Participant’s designated Beneficiary beginning on the first day of the month immediately following the date of Participant’s death and shall be payable on the same day of the same month in each subsequent year for fourteen (14) years
thereafter. 
  

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 6.2 Benefit Determination and Payment Procedure. The Administrator shall make all determinations
concerning eligibility for benefits under the Plan, the time or terms of payment, to Participant or Participant’s Beneficiary, in the event of Participant’s death. 
 6.3 Payments to Minors and Incompetents. If Participant or his designated Beneficiary is a minor or is adjudged to be legally incapable of giving
valid receipt and discharge for such benefits, or is deemed so by the Administrator, benefits will be paid to such person as the Administrator may designate for the benefit of Participant or Beneficiary. Such payments shall be considered a direct
payment to such Participant or Beneficiary and shall, to the extent made, be deemed a complete discharge of any liability for such payments under the Plan. 
 6.4 Distribution of Benefit When Distributee Cannot Be Located. The Administrator shall make all reasonable attempts to determine the identity and/or whereabouts of Participant or his Beneficiary entitled to
benefits under the Plan, including the mailing by certified mail of a notice to the last known address shown on the Bank’s records. If the Administrator is unable to locate such a person entitled to benefits hereunder, or if there has been no
claim made for such benefits, the Bank shall continue to hold the benefit due such person, subject to any applicable statute of escheats. 
 6.5 Claims Procedure. 
 6.5(a) Participant or his designated Beneficiary (the “claimant”) shall have the right to
request any benefit under the Plan by filing a written claim for any such benefit with the Administrator on a form provided by the Administrator for such purpose. The Administrator shall give such claim due consideration and shall either approve or
deny it in whole or in part. Within ninety (90) days following receipt of such claim by the Administrator, notice of any denial thereof, in whole or in part, shall he delivered to, and a receipt therefor shall be obtained from, the claimant or
his duly authorized representative or such notice of denial shall be sent by registered mail to the claimant, or his duly authorized representative, at the address shown on the claim form or such individual’s last known address. The ninety
(90) day response period may he extended to one hundred eighty (180) days after receipt of the claimant’s claim if special circumstances exist and if written notice of the extension to one hundred eighty (180) days indicating the
special circumstances involved and the date by which a decision is expected to he made is furnished to the claimant within ninety (90) days after receipt of the claimant’s claim. Such notice of denial shall be written in a manner
calculated to be understood by the claimant and shall: 
 (i) Set forth a specific reason or reasons for the denial,

 (ii) Make specific reference to the pertinent provisions of the Plan on which any denial of benefits is based, 

(iii) Describe any additional material or information necessary for the claimant to perfect the claim and explain why such material or
information is necessary, and 
 (iv) Explain the claim review procedure of subparagraph 6.5(b). 
 If such notice of denial is not provided to the claimant within the applicable ninety (90) day or one hundred eighty (180) day period, the claimant’s
claim shall be considered denied for purposes of the claim review procedure of subparagraph 6.5(b). 
 6.5(b) A Participant or Beneficiary
whose claim filed pursuant to subparagraph 6.5(a) has been denied, in whole or in part, may, within sixty (60) days following receipt of notice of such denial, or following the expiration of the applicable period provided for in
subparagraph 6.5(a) for notifying the claimant of the decision on the claim if no notice of denial is provided, make written application to the Board for a review of such claim, which application shall be filed with the Board. For purposes of such
review, the claimant or his duly authorized representative may review Plan documents pertinent to such claim and may submit to the Board written issues and comments respecting such claim. The Board may schedule and hold a hearing. The Board shall
make a full and fair review of any denial of a claim for benefits and issue its decision thereon promptly, but in no event later than sixty (60) days after receipt by the Board of the claimant request for review, or one hundred twenty
(120) days after such receipt if a hearing is to be held or if other special circumstances exist and if written notice of the extension to one hundred twenty (120) days is furnished to the claimant within sixty (60) days after the
receipt of the claimant’s request for a review, Such decision shall be in writing, delivered to the claimant and shall: 
 (i) Include
specific reasons for the decision, 
  

 60 

 (ii) Be written in a manner calculated to be understood by the claimant, and 
 (iii) Contain specific references to the pertinent Plan provisions on which the decision is based. 
 The Board’s decision made in good faith shall be final. 
 ARTICLE VII 
 Funding 
 7.1 Funding. 
 7.1(a) The undertaking to pay the benefits hereunder shall be an unfunded obligation payable solely from the
general assets of the Bank and shall be subject to the claims of the Bank’s creditors. 
 7.1(b) Except as provided in any Trust that
may be established as provided in paragraph 7.2, nothing contained in the Plan and no action taken pursuant to the provisions of the Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Bank and
Participant or his designated Beneficiary or any other person or to give Participant or his Beneficiary any right, title or interest in any specific asset or assets of the Bank. To the extent that Participant or a Beneficiary acquires a right to
receive payments from the Bank under the Plan, such rights shall be no greater than the right of any unsecured general creditor of the Bank. 
 7.2 Use of Rabbi Trust Permitted. Subject to the limitations and obligations described in paragraph 7.3, the Bank may in its sole discretion elect to establish and fund a “Rabbi” Trust for the purpose of providing benefits
under the Plan provided that the Rabbi Trust is consistent with Code Section 409A and the regulations issued thereunder and provided that the creation or funding of such trust will not cause the benefits payable hereunder to become immediately
taxable. 
 7.3 Obligations upon Change of Control Event. Upon the occurrence of a Change of Control Event, the Bank shall be
obligated to establish (if one does not already exist) and deposit into a “Rabbi” trust the actuarially determined present value of’ Participants vested Supplemental Retirement Benefits determined as of the effective date of the
Change of Control Event. Alternatively, the Bank may obtain a written and binding obligation from the party or parties that will exercise effective control following the Change of Control Event, that the obligations to Participant under this Plan
will be assumed and continued by such party. Notwithstanding the foregoing provisions, no such trust shall be created or funded based on a change in the financial health of the Bank or Corporation. 
 ARTICLE VIII 
 Plan Administration

 8.1 Appointment of Plan Administrator. The Board of Directors of the Bank shall be the initial Plan Administrator. The Bank may
change the Plan Administrator at any time or from time to time. The Bank may appoint its Board of Directors, the Human Resources Committee of the Board of Directors or one or more persons who may or may not also be members of the Board of Directors
to serve as the Plan Administrator (the “Administrator”) for the purpose of carrying out the duties specifically imposed on the Administrator by this Plan, the Act and the Code. In the event more than one person is appointed, the persons
shall form an administrative committee for the Plan. The person or committeemen serving as Administrator shall serve for indefinite terms at the pleasure of the Bank, and may, by sixty (60) days prior written notice to the Bank, resign or
otherwise terminate such appointment. 
 8.2 Bank as Plan Administrator. In the event that no Administrator is appointed or in office
pursuant to paragraph 8.1, the Board of Directors of the Bank shall be the Administrator. 
 8.3 Compensation and Expenses. Unless
otherwise determined and paid by the Board of Directors, the person or committeemen serving as the Administrator shall serve without compensation for service as such. All expenses of the Administrator shall be paid by the Bank. 
 8.4 Procedure if a Committee. If the Administrator is a committee of the Board other than the Human Resources Committee or other standing
subcommittee established by the Board of Directors, it shall appoint from its members a Chairman and a Secretary. The Secretary shall keep records as may be necessary of the acts and resolutions of such committee and be prepared to furnish reports
thereof to the Bank. Except as otherwise provided, all instruments executed on behalf of such committee may be executed by its Chairman or Secretary. 
  

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 8.5 Action by Majority Vote if a Committee. If the Administrator is a committee of the Board, its
action in matters, questions and decisions shall be determined by a majority vote of its members qualified to act thereon. They may meet informally or take any action without the necessity of meeting as a group. 
 8.6 Appointment of Successors. Upon the death, resignation or removal of a person serving as, or on a committee of the Board which serves as the
Administrator of the Plan, the Bank, by its Board of Directors may but need not, appoint a successor. 
 8.7 Additional Duties and
Responsibilities. The Administrator shall have the following duties and responsibilities in addition to those expressly provided elsewhere in the Plan: 
 8.7(a) The Administrator shall be responsible for the fulfillment of all relevant reporting and disclosure requirements set forth in the Act and the Code, the distribution thereof to Participant and his Beneficiaries
and the filing thereof with the appropriate governmental officials and agencies. 
 8.7(b) The Administrator shall maintain and retain
necessary records respecting administration of the Plan and matters upon which disclosure is required under the Act and the Code. 
 8.7(c)
The Administrator shall make any elections for the Plan under the Act or the Code. 
 8.7(d) The Administrator shall make all determinations
regarding eligibility for benefits under the Plan. 
 8.7(e) The Administrator shall have the right to settle claims against the Plan and to
make such equitable adjustments in Participant’s or his Beneficiary’s rights or entitlements under the Plan as it deems appropriate in the event an error or omission is discovered or claimed in the operation or administration of the Plan.

 8.8 Power and Authority. The Administrator is hereby vested with all the power and authority necessary in order to carry out its
duties and responsibilities in connection with the administration of the Plan, including the power to interpret the provisions of the Plan. For such purpose, the Administrator shall have the power to adopt rules and regulations consistent with the
terms of the Plan. 
 8.9 Availability of Records. The Bank shall, at the request of the Administrator, make available necessary
records or other information they possess which may be required by the Administrator in order to carry out its duties hereunder. 
 8.10
No Action with Respect to Own Benefit. If Participant also serves as a member of the Administrative Committee, such Participant shall not take any part as the Administrator in any discretionary action in connection with his participation as
an individual. Such action shall be taken by the remaining Administrator, if any, or otherwise by the Bank Board of Directors. 
 8.11
Plan Interpretation. The Administrator may construe the Plan, correct defects, supply omissions or reconcile inconsistencies to the extent necessary to effectuate the Plan and such action shall be conclusive. 
 ARTICLE IX 
 Amendment and Termination of
Plan 
 9.1 Amendment or Termination of the Plan. 
 9.1(a) The Plan may be terminated at any time by the Board. Upon termination of the Plan and subject to the forfeiture events described in paragraph 5.2, the Supplemental Retirement Benefit or, if applicable, the
Supplemental Death Benefit of each Participant shall become vested and non-forfeitable. The Bank may accelerate the time and term of payments under the Plan where the acceleration of the payment is made pursuant to a termination or liquidation of
the Plan in accordance with one of the following: 
 (i) The service recipient’s termination and liquidation of the plan within 12 months
of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts deferred under the plan are included in the participants’ gross incomes
in the latest of the following years (or, if earlier, the taxable year in which the amount is actually or constructively received). 
  

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 (a) The calendar year in which the plan termination and liquidation occurs. 

(b) The first calendar year in which the amount is no longer subject to a substantial risk of forfeiture. 
 (c) The first calendar year in which the payment is administratively practicable. 
 (ii) The service recipient’s termination and liquidation of the plan pursuant to irrevocable action taken by the service recipient within the
30 days preceding or the 12 months following a Change in Control Event (as defined in paragraph 1.7), provided that this paragraph will only apply to a payment under a plan if all agreements, methods, programs, and other arrangements sponsored by
the service recipient immediately after the time of the change in control event with respect to which deferrals of compensation are treated as having been deferred under a single plan under Treasury Regulation §1.409A-1(c)(2) are terminated and
liquidated with respect to each participant that experienced the Change in Control Event, so that under the terms of the termination and liquidation all such participants are required to receive all amounts of compensation deferred under the
terminated agreements, methods, programs, and other arrangements within 12 months of the date the service recipient irrevocably takes all necessary action to terminate and liquidate the agreements, methods, programs, and other arrangements. Solely
for purposes of this paragraph, where the Change in Control Event results from an asset purchase transaction, the applicable service recipient with the discretion to liquidate and terminate the agreements, methods, programs, and other arrangements
is the service recipient that is primarily liable immediately after the transaction for the payment of the deferred compensation. 
 (iii) The service recipient’s termination and liquidation of the plan, provided that— 
 (a) The termination and
liquidation does not occur proximate to a downturn in the financial health of the service recipient; 
 (b) The service recipient terminates
and liquidates all agreements, methods, programs, and other arrangements sponsored by the service recipient that would be aggregated with any terminated and liquidated agreements, methods, programs, and other arrangements under Treasury Regulation
§1.409A-1(c) if the same service provider had deferrals of compensation under all of the agreements, methods, programs, and other arrangements that are terminated and liquidated; 
 (c) No payments in liquidation of the plan are made within 12 months of the date the service recipient takes all necessary action to irrevocably
terminate and liquidate the plan other than payments that would be payable under the terms of the plan if the action to terminate and liquidate the plan had not occurred; 
 (d) All payments are made within 24 months of the date the service recipient takes all necessary action to irrevocably terminate and liquidate the plan; and 
 (e) The service recipient does not adopt a new plan that would be aggregated with any terminated and liquidated plan under Treasury Regulation
§1.409A-1(c) if the same service provider participated in both plans, at any time within three years following the date the service recipient takes all necessary action to irrevocably terminate and liquidate the plan. 
 (iv) Such other events and conditions as the Commissioner at the Internal Revenue Service may prescribe in generally applicable guidance published in the
Internal Revenue Bulletin. 
 9.1(b) The Plan may be amended in whole or in part from time to time by the Board effective as of any date
specified so long as such amendment is permitted by Code Section 409A and the regulations issued thereunder. No amendment shall operate to decrease Participant’s vested Supplemental Retirement Benefit or, if applicable, Supplemental Death
Benefit determined as though Participant had terminated employment as of the earlier of the date on which the amendment is approved by the Board or the date on which an instrument of amendment is signed on behalf of the Bank. 
 9.1(c) The Bank hereby delegates to the Administrator the right to modify, alter, or amend the Plan in whole or in part to make any technical
modification, alteration or amendment which in the opinion of counsel for the Bank is required by law and is deemed advisable by the Administrator and to make any other modification, alteration or amendment which does not, in the
Administrator’s view, substantially increase costs, contributions or benefits and does not materially affect the eligibility, vesting or benefit accrual or allocation provisions of the Plan. 
  

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 ARTICLE X 
 Miscellaneous 
 10.1 Non-assignability. The interest of Participant under the Plan are not
subject to claims of the Participants’ creditors; and neither Participant, nor his Beneficiary, shall have any right to sell, assign, transfer or otherwise convey the right to receive any payments hereunder or any interest under the Plan, which
payments and interest are expressly declared to be non-assignable and non-transferable. 
 10.2 Right to Requirement Information and
Reliance Thereon. The Bank or the Administrator shall have the right to require Participant, his Beneficiary or other person receiving benefit payments to provide it with such information, in writing, and in such form as to may deem necessary to
the administration of the Plan and may relay thereon in carrying out its duties hereunder. Any payment to or on behalf of Participant or his Beneficiary in accordance with the provisions of the Plan in good faith reliance upon any such written
information provided by Participant or any other person to whom such payment is made shall be in full satisfaction of all claims by Participant and his Beneficiary; and any payment to or on behalf of a Beneficiary in accordance with the provision so
the Plan in good faith reliance upon any such written information provided by such Beneficiary or any other person to whom such payment is made shall be in full satisfaction of all claims by such Beneficiary. 
 10.3 Notices and Elections. All notices required to be given in writing and all elections required to be made in writing, under any provision of
the Plan, shall be invalid unless made on such forms as may be provided or approved by the Administrator and, in the case of a notice or election by Participant or his Beneficiary, unless executed by Participant or his Beneficiary giving such notice
or making such election. 
 10.4 Delegation of Authority. Whenever the Bank is permitted or required to perform any act, such act may
be performed by its Chief Executive Officer or other person duly authorized by its Chief Executive Officer or the Board. 
 10.5 Service
of Process. The Administrator shall be the agent for service of process on the Plan. 
 10.6 Governing Law. The Plan shall be
construed, enforced and administered in accordance with the laws of the Commonwealth of Virginia, and any federal law which preempts the same. 
 10.7 Binding Effect. The Plan shall be binding upon and inure to the benefit of the Bank, its successors and assigns, and the Participant and his heirs, executors, administrators and legal representatives. 
 10.8 Severability. If any provision of the Plan should for any reason be declared invalid or unenforceable by a court of competent jurisdiction,
the remaining provisions shall nevertheless remain in full force and effect. 
 10.9 No Effect on Employment Agreement. The Plan shall
not be considered or construed to modify: amend or supersede any employment agreement between the Bank and Participant heretofore or hereafter entered into unless so specifically provided. 
 10.10 Gender and Number. In the construction of the Plan, the masculine shall include the feminine or neuter and the singular shall include the
plural and vice-versa in all cases where such meanings would be appropriate. 
 10.11 Titles and Captions. Titles and captions and
headings herein have been inserted for convenience of reference only and are to be ignored in any construction of the provisions hereof. 
 10.12 Construction. The Plan has been designed to be an unfunded plan maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees as described in the Act,
and shall be interpreted and administered as such. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Plan as of the date and year first written above. 

 

			
	FRANKLIN COMMUNITY BANK, N.A.
		
	By:	 	 /s/ Larry A. Heaton

		 	President and Chief Executive Officer

			
		
	Employee:	 	 /s/ Larry A. Heaton

		 	Larry A. Heaton

  

 65

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