Document:

Exhibit 10.1

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (this “Agreement”) is made as of
January 1, 2005, by and between Virginia Savings Bank, F.S.B., a Federal savings bank (the “Bank”), and W. Michael Funk (the “Officer”). 
 The parties, intending to be legally bound, agree as follows: 
 1. Employment and Acceptance. The
Officer shall be employed as Executive Vice President and Chief Executive Officer of the Bank. The Officer shall have the duties and responsibilities that are commensurate with his position and shall also render such other services and duties as may
be reasonably assigned to him from time to time by the Bank, consistent with his position with the Bank. The Officer hereby accepts and agrees to such employment and agrees to carryout his duties and responsibilities to the best of his ability in a
competent, efficient and businesslike manner. 
 2. Term. This Agreement is
effective January 1, 2005 and will expire on December 31, 2007; provided that on December 31, 2005 and on each December 31st thereafter (each such December 31st is referred to as the
“Renewal Date”), this Agreement will be automatically extended for an additional calendar year so as to terminate three years from such Renewal Date. This Agreement will not, however, be extended if the Bank gives written notice
(“Nonrenewal Notice”) of such non-renewal to the Officer before the Renewal Date (the initial and any extended term of this Agreement is referred to as the “Employment Period”). The last day of the Employment Period is sometimes
referred to in this Agreement as the “Expiration Date.” 
 3. Compensation. 
 (a) Base Salary. During the Employment Period, the Officer shall receive for his services an annual base salary (the “Base Salary”) in an
amount to be determined by the Bank in accordance with the salary administration program of the Bank as it may from time to time be in effect. The Base Salary will be reviewed annually and may be adjusted upward or downward in the sole discretion of
the Compensation Committee or the Board of Directors. In no event, however, will the Base Salary be less than $125,000. 
 (b) Annual
Bonus. During the Employment Period, the Officer may be entitled to receive annual cash bonus payments in such amounts and at such times as may be determined by the Compensation Committee or the Board of Directors of the Bank. 
 (c) Insurance Benefits. The Bank shall provide to the Officer, at the Bank’s expense, family health, dental and supplemental disability
insurance benefits on the same basis as other similarly situated officers of the Bank. 
 (d) Other General Benefits; Vacation. The
Officer will be entitled to participate in any and all incentive, savings, retirement, life insurance, medical, sick leave, and other employee benefit plans and programs of the Bank that may be in effect from time 

 
to time, to the extent the Officer is eligible under the terms of those plans and programs. The Bank reserves the right to modify, add or eliminate benefits
for its employees as it deems appropriate. The Officer will be entitled to paid vacation each year in accordance with the vacation policies of the Bank as in effect from time to time. 
 (e) Business Expenses. The Bank will pay on behalf of the Officer (or reimburse the Officer for) reasonable expenses incurred by the Officer at
the request of, or on behalf of, the Bank in the performance of the Officer ‘s duties pursuant to this Agreement and in accordance with the Bank’s policies. 
 (f) Automobile. The Bank will provide the Officer with an appropriate automobile, as determined by the Board of Directors, and will cover all costs associated with the operation of the automobile, including
insurance, maintenance and fuel. 
 (g) Deferred Compensation Benefits. The Officer will be entitled to participation in a deferred
compensation plan or agreement with the Bank to provide for certain supplemental nonqualified cash benefits in such amounts and on such terms and conditions as the parties may agree. 
 4. Termination and Termination Benefits. Notwithstanding the provisions of Section 2, and in addition to the expiration of the existing term
of this Agreement following receipt by either party of a Nonrenewal Notice described in Section 2, the Officer’s employment will terminate under the following circumstances and will be subject to the following provisions: 
 (a) Termination as a Consequence of Death or Disability. If the Officer dies while employed
by the Bank, the Bank will pay his estate his Base Salary through the end of the calendar month in which his death occurs. If the Officer becomes “disabled” (as defined below), the Bank may give the Officer written notice of its intention
to terminate the Officer’s employment, in which event the Officer’s employment with the Bank will terminate on the 30th day after receipt of such notice by the Officer. 
 For purposes of this Section 4, the Officer is “disabled”
if he is unable to perform substantially all of his duties and responsibilities hereunder, which disability lasts for an uninterrupted period of at least 180 days or a total of at least 240 days out of any consecutive 360 day period, as a result of
the Officer’s incapacity due to physical or mental illness (as determined by the opinion of an independent physician selected by the Bank). 
 (b) Termination for Cause. The Officer’s employment may be terminated for Cause at any time without further liability on the part of the Bank. If the Bank terminates the Officer for Cause, the Officer shall have no right to
render services or to receive compensation or other benefits under this Agreement for any period after such termination. Only the following shall constitute “Cause” for such termination: 
 (i) continual or deliberate neglect by the Officer in the performance of his material duties and responsibilities as established from time
to 

  

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time by the Board of Directors of the Bank, or the Officer’s willful failure to follow reasonable instructions or policies of the Bank after being
advised in writing of such failure and being given a reasonable opportunity and period (as determined by the Bank) to remedy such failure; 
 (ii) conviction of or entering of a guilty plea or plea of no contest with respect to a felony, a crime of moral turpitude or any other crime with respect to which imprisonment is a possible punishment, or the
commission of an act of embezzlement or fraud against the Bank or any subsidiary or affiliate thereof; 
 (iii) any breach by
the Officer of a material term of this Agreement, or violation in any material respect of any code or standard of behavior generally applicable to officers of the Bank, after being advised in writing of such breach or violation and being given a
reasonable opportunity and period (as determined by the Bank) to remedy such breach or violation; or 
 (iv) the willful
engaging by the Officer in conduct that is reasonably likely to result, in the good faith judgment of the Bank, in material injury to the Bank, monetarily or otherwise. 
 (c) Termination by the Officer. The Officer may terminate his employment hereunder by written notice to the Board effective 30 days after receipt of such notice by the Board. Upon termination of employment by
the Officer, the Officer shall have no right to render services or to receive compensation or other benefits under this Agreement for any period after such termination. 
 (d) Termination by the Bank Without Cause. The Officer’s employment may be terminated by the Bank without Cause upon 30 days’ prior written notice of such termination, in which case the Officer will
be entitled to the following benefits: 
 (i) For the period subsequent to the date of termination until the Expiration Date
or for two years following the date of termination, whichever period is greater, the Bank shall continue to pay the Officer his Base Salary in effect on the date of termination, such payments to be made on the same periodic dates as salary payments
would have been made to the Officer had his employment not been terminated, unless the Bank elects to make a lump sum severance payment in an equivalent amount within 30 days of the date of termination. The Bank and the Officer will use their best
efforts to accelerate the vesting of any nonvested benefits, if any, of the Officer under any employee stock-based or other benefit plan or arrangement to the extent permitted by the terms of such plan or arrangement. 
 (ii) For the period subsequent to the date of termination until the Expiration Date or for two years following the date of termination,
whichever period is greater, the Officer shall continue to receive medical and other insurance benefits pursuant to plans made available by the Bank to its officers and employees at the expense of the Bank to substantially the same extent the
Officer received such benefits 

  

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on the date of termination (it being acknowledged that the post-termination plans may be different from the plans in effect on the date of termination). For
purposes of the application of such benefits, the Officer shall be treated as if he had remained in the employ of the Bank, with an annual salary at the rate in effect on the date of termination. 
 (iii) The Bank’s obligation to provide the Officer with medical and insurance benefits pursuant to Section 4(d)(ii) hereof shall
terminate with respect to each particular type of insurance in the event the Officer becomes employed and has made available to him in connection with such employment that particular type of insurance, so long as such insurance is substantially
similar to the insurance provided by the Bank. 
 (iv) The obligation of the Bank to continue to make any further payments and
provide any further benefits to the Officer under this Agreement for the period after the Noncompete Period has expired and prior to the applicable date specified in (i) and (ii) above shall cease effective upon the Officer engaging in any
conduct or activity that otherwise would have been prohibited under Section 5. 
 5. Covenants of the Officer. 
 (a) Noncompetition and Nonsolicitation. The Officer agrees that during the Employment Period and for a three-year period following the expiration
of this Agreement or, if sooner, the termination of his employment for any reason during the Employment Period (the “Noncompete Period”), the Officer will not directly or indirectly, as a principal, agent, employee, employer, investor,
co-partner or in any other individual or representative capacity whatsoever: (i) engage in a Competitive Business anywhere in the Market Area (as defined below); (ii) solicit, or assist any other person in soliciting, any depositors or
customers of the Bank or its Affiliates to make deposits in, borrow money from, or become customers of any other company conducting a Competitive Business in the Market Area; (iii) induce any customers of the Bank or its Affiliates to terminate
their relationship with the Bank or its Affiliates; or (iv) contact, solicit, or assist in the solicitation of any employee to terminate his or her employment with the Bank or any of its Affiliates. Notwithstanding the foregoing, the Officer
may purchase or otherwise acquire up to (but not more than) 1% of any class of securities of any business enterprise (but without otherwise participating in the activities of such enterprise) that engages in a Competitive Business in the Market Area
and whose securities are listed on any national or regional securities exchange or have been registered under Section 12 of the Securities Exchange Act of 1934. 
 (b) Definitions. As used in this Agreement, the term “Competitive Business” means the financial services business, which includes one or more of the following businesses: consumer savings, commercial
banking, insurance brokerage, asset management, residential and commercial mortgage lending, and any other business in which the Bank or any of its Affiliates are engaged at the time of termination of the Officer’s employment; the term
“Market Area” means Warren County, Virginia, and any 

  

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other county or municipality in which the Bank has established and is continuing to operate a banking office or a loan production office (excluding for
purposes of this Agreement an office providing residential mortgage loans) at the time of termination of the Officer’s employment; the term “Affiliate” means a Person that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the Bank; and the term “Person” means any person, partnership, corporation, company, group or other entity. 
 (c) Confidentiality. During the Employment Period and thereafter, and except as required by any court, supervisory authority or administrative
agency or as may be otherwise required by applicable law, the Officer shall not, without the written consent of a person duly authorized by the Bank, disclose to any person (other than his personal attorney, or an employee of the Bank or an
Affiliate, or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Officer of his duties as an employee of the Bank) or utilize in conducting a business any confidential information obtained by
him while in the employ of the Bank, unless such information has become a matter of public knowledge at the time of such disclosure. 
 (d)
Acknowledgment; Enforcement. The covenants contained in this Section 5 shall be construed and interpreted in any proceeding to permit their enforcement to the maximum extent permitted by law. The Officer agrees that the restraints
imposed herein are necessary for the reasonable and proper protection of the Bank and its Affiliates, and that each and every one of the restraints is reasonable in respect to length of time, geographic area and activities restricted. If, however,
the time, geographic and/or scope of activity restrictions set forth in Section 5 are found by an arbitrator or court to be unenforceable because the restrictions are overbroad, the arbitrator or court, as applicable, is empowered and directed
to modify the restriction(s) to the extent necessary to make them enforceable. The Officer further acknowledges that damages at law would not be a measurable or adequate remedy for breach of the covenants contained in this Section 5 and,
accordingly, the Officer agrees to submit to the equitable jurisdiction of any court of competent jurisdiction in connection with any action to enjoin the Officer from violating any such covenants. All the provisions of this Section 5 will
survive termination and expiration of this Agreement. 
 (e) Change in Control. Notwithstanding anything to the contrary contained in
this Agreement, in the event of a “Change in Control” of the Bank (as such term is defined in the Change in Control Employment Agreement, dated as of January 1, 2005, between the Bank and the Officer (the “CIC Agreement”))
the restrictions imposed by this Section 5 shall not apply to the Officer after he ceases to be employed by the Bank. 
 6.
Arbitration. 
 (a) Except as provided in Section 6(c) below, the Officer and the Bank acknowledge and agree that any dispute or
controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by binding arbitration unless otherwise 

  

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required by law, to be held in Front Royal, Virginia in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the
American Arbitration Association. The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered
on the arbitrator’s decision in any court having jurisdiction. The party against whom the arbitrator(s) shall render an award shall pay the other party’s reasonable attorneys’ fees and other reasonable costs and expenses in connection
with the enforcement of its rights under this Agreement (including the enforcement of any arbitration award in court), unless and to the extent the arbitrator(s) shall determine that under the circumstances recovery by the prevailing party of all or
a part of any such fees and costs and expenses would be unjust. 
 (b) The arbitrator(s) shall apply Virginia law to the merits of any
dispute or claim, without reference to rules of conflicts of law. The Officer hereby consents to the personal jurisdiction of the state and federal courts located in Virginia for any action or proceeding arising from or relating to this Agreement or
relating to any arbitration in which the parties are participants. 
 (c) The parties may apply to any court of competent jurisdiction for a
temporary restraining order, preliminary injunction, or other interim or conservatory relief, as necessary, without breach of this arbitration agreement and without abridgment of the powers of the arbitrator. 
 (d) THE EXECUTIVE HEREBY CONFIRMS HE HAS READ AND UNDERSTANDS THIS SECTION 6, WHICH DISCUSSES ARBITRATION, AND UNDERSTANDS THAT BY SIGNING THIS
AGREEMENT, HE AGREES, EXCEPT AS PROVIDED IN SECTION 6(c), TO SUBMIT ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING
ARBITRATION, UNLESS OTHERWISE REQUIRED BY LAW, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF HIS RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF HIS RELATIONSHIP WITH THE BANK. 
 7. Change in Control of the Bank. This Agreement will terminate in the event there is a “Change in Control” of the Bank (as such term is
defined in the CIC Agreement), provided the CIC Agreement continues to remain in effect at that time, and any termination benefits will be determined and paid solely pursuant to the CIC Agreement. 
 8. Miscellaneous. 
 (a)
Severability. If any clause or provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term hereof, then the remainder of this Agreement shall not be affected thereby, and
in lieu of each clause or provision of this Agreement which is illegal, invalid or unenforceable, there 

  

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shall be added, as part of this Agreement, a clause or provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may be
possible and as may be legal, valid and enforceable. 
 (b) Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Virginia, without regard to its conflicts of law principles. 
 (c) Entire Agreement;
Amendments. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, between the parties. This Agreement may be amended
only by an agreement signed by the parties hereto. 
 (d) Waiver. The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay by either party in exercising, in whole or in part, any right, power, or privilege under this Agreement will operate as a waiver of such right, power, privilege. 
 (e) Binding Effect; Survival. This Agreement is binding upon and shall inure to the benefit of the parties and their respective successors, heirs
and assigns, provided that no part of this Agreement is assignable by the Officer. Except as otherwise expressly provided herein, upon the termination or expiration of this Agreement the respective rights and obligations of the parties hereto shall
survive such termination or expiration to the extent necessary to carry out the intentions of the parties embodied in the rights and obligations of the parties under this Agreement. 
  

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

			
	VIRGINIA SAVINGS BANK, F.S.B.
		
	By:	 	 /s/ Francis D. Hall

		 	Francis D. Hall
		 	Chairman of the Board
	
	OFFICER
	
	         /s/ W. Michael Funk

	        W. Michael Funk

  

 - 8 -Exhibit 10.2

 Exhibit 10.2 
 CHANGE IN CONTROL EMPLOYMENT AGREEMENT 
 This Agreement (“Agreement”) is made as of
January 1, 2005, by and between Virginia Savings Bank, F.S.B., a Federal savings bank (the “Bank”), and W. Michael Funk (the “Officer”). 
 The parties, intending to be legally bound, agree as follows: 
 1. Purpose. The Bank recognizes that
the possibility of a Change in Control exists, and the uncertainty and questions that it may raise among management may result in the departure or distraction of management personnel to the detriment of the Bank and its shareholders. Accordingly,
the purpose of this Agreement is to encourage the Officer to continue employment after a Change in Control by providing reasonable employment security to the Officer and to recognize the prior service of the Officer in the event of a termination of
employment under certain circumstances after a Change in Control. 
 2. Term of the
Agreement. This Agreement is effective January 1, 2005 and will expire on December 31, 2007; provided that on December 31, 2005 and on each December 31st thereafter (each such December 31st is referred to as the “Renewal Date”), this Agreement will be automatically extended for an additional calendar year so as to terminate three years from such Renewal Date. This Agreement will not, however, be extended if
the Bank gives written notice of such non-renewal to the Officer no later than 90 days before the Renewal Date (the original and any extended term of this Agreement is referred to as the “Change in Control Period”). 
 3. Employment after a Change in Control. If a Change in Control of the Bank (as defined in Section 13) occurs during the Change in Control
Period and the Officer is employed by the Bank on the date the Change in Control occurs (the “Change in Control Date”), the Bank will continue to employ the Officer in accordance with the terms and conditions of this Agreement for the
period beginning on the Change in Control Date and ending on the third anniversary of such date (the “Employment Period”). If a Change in Control occurs on account of a series of transactions, the Change in Control Date is the date of the
last of such transactions. 
 4. Terms of Employment. 
 (a) Position and Duties. During the Employment Period, (i) the Officer’s position, authority, duties and responsibilities will be at least commensurate in all material respects with the most
significant of those held, exercised and assigned at any time during the 90-day period immediately preceding the Change in Control Date and (ii) the Officer’s services will be performed at the location where the Officer was employed
immediately preceding the Change in Control Date or any office that is the headquarters of the Bank and is less than 35 miles from such location. 
  

 (b) Compensation. 
 (i) Base Salary. During the Employment Period, the Officer will receive an annual base salary (the “Annual Base Salary”)
at least equal to the base salary paid or payable to the Officer by the Bank and its affiliated companies for the twelve-month period immediately preceding the Change in Control Date. During the Employment Period, the Annual Base Salary will be
reviewed at least annually and will be increased at any time and from time to time as will be substantially consistent with increases in base salary generally awarded in the ordinary course of business to other peer executives of the Bank and its
affiliated companies. Any increase in the Annual Base Salary will not serve to limit or reduce any other obligation to the Officer under this Agreement. The Annual Base Salary will not be reduced after any such increase, and the term Annual Base
Salary as used in this Agreement will refer to the Annual Base Salary as so increased. The term “affiliated companies” includes any company controlled by, controlling or under common control with the Bank. 
 (ii) Annual Bonus. In addition to the Annual Base Salary, the Officer will be awarded for each year ending during the Employment
Period an annual bonus (the “Annual Bonus”) in cash at least equal to the highest annual bonus paid or payable, including by reason of any deferral, for the two years immediately preceding the year in which the Change in Control Date
occurs. Each such Annual Bonus will be paid no later than the end of the third month of the year next following the year for which the Annual Bonus is awarded. 
 (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Officer will be entitled to participate in all
incentive (including stock incentive), savings and retirement, insurance plans, policies and programs applicable generally to other peer executives of the Bank and its affiliated companies, but in no event will such plans, policies and programs
provide the Officer with incentive opportunities, savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than those provided by the Bank and its affiliated companies for the Officer under such
plans, policies and programs as in effect at any time during the six months immediately preceding the Change in Control Date. 
 (iv) Welfare Benefit Plans. During the Employment Period, the Officer and his eligible dependents will be eligible to participate in and will receive all benefits under the welfare benefit plans, policies and programs provided by the
Bank and its affiliated companies to the extent applicable generally to other peer executives of the Bank and its affiliated companies, but in no event will such plans, policies and programs provide the Officer and his dependents with benefits that
are less favorable, in the aggregate, than the most favorable of such plans, policies and programs in effect at any time during the six months immediately preceding the Change in Control Date. 
  

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 (v) Fringe Benefits. During the Employment Period, the Officer will be entitled to
fringe benefits in accordance with the most favorable plans, policies and programs of the Bank and its affiliated companies in effect for the Officer at any time during the six months immediately preceding the Change in Control Date or, if more
favorable to the Officer, as in effect generally from time to time after the Change in Control Date with respect to other peer executives of the Bank and its affiliated companies. 
 (vi) Vacation. During the Employment Period, the Officer will be entitled to paid vacation in accordance with the most favorable
plans, policies and programs of the Bank and its affiliated companies in effect for the Officer at any time during the six months immediately preceding the Change in Control Date or, if more favorable to the Officer, as in effect generally from time
to time after the Change in Control Date with respect to other peer executives of the Bank and its affiliated companies. 
 5. Termination
of Employment Following Change in Control. 
 (a) Death or Disability. The Officer’s employment will terminate automatically
upon the Officer’s death during the Employment Period. If the Bank determines in good faith that the Disability of the Officer has occurred during the Employment Period, it may terminate the Officer’s employment. For purposes of this
Agreement, “Disability” means the Officer’s inability to perform substantially all of his duties and responsibilities hereunder for an uninterrupted period of at least 180 days or a total of at least 240 days out of any consecutive
360-day period as a result of the Officer’s incapacity due to physical or mental illness (as determined by an independent physician selected by the Board). 
 (b) Cause. The Bank may terminate the Officer’s employment during the Employment Period for Cause. For purposes of this Agreement, “Cause” means (i) gross incompetence, gross negligence,
willful misconduct in office or breach of a material fiduciary duty owed to the Bank or any affiliated company; (ii) conviction of or entering of a guilty plea or plea of no contest with respect to a felony or a crime of moral turpitude or
commission of an act of embezzlement or fraud against the Bank or any affiliated company; (iii) any material breach by the Officer of a material term of this Agreement, including, without limitation, material failure to perform a substantial
portion of his duties and responsibilities hereunder; or (iv) deliberate dishonesty of the Officer with respect to the Bank or any affiliated company. 
 (c) Good Reason; Window Period. The Officer’s employment may be terminated (i) during the Employment Period by the Officer for Good Reason or (ii) during the Window Period by the Officer without
any reason. For purposes of this Agreement, the “Window Period” means the 90-day period beginning on the later of the one-year anniversary of the Change in Control Date or the date of closing of the corporate transaction that is the
subject of shareholder approval in Section 13. For purposes of this Agreement, “Good Reason” means: 
 (i) a
material reduction in the Officer’s duties or authority; 
  

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 (ii) a material adverse change in the Officer’s overall working environment;

 (iii) a failure by the Bank to comply with any of the provisions of Section 4(b); 
 (iv) the Bank’s requiring the Officer to be based at any office or location other than that described in Section 4(a)(ii);

 (v) the failure by the Bank to comply with and satisfy Section 7(b); 
 (vi) the Officer is directed by the Board of Directors or an officer of the Bank or any affiliated company to engage in conduct that is
unethical, illegal or contrary to the Bank’s good business practices; or 
 (vii) the Bank fails to honor any term or
provision of this Agreement; 
 Any good faith determination of Good Reason made by the Officer shall be conclusive. 
 (d) Notice of Termination. Any termination during the Employment Period by the Bank or by the Officer for Good Reason or during the Window Period
shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement
relied upon. 
 (e) Date of Termination. “Date of Termination” means (i) if the Officer’s employment is terminated
by the Bank for Cause, or by the Officer during the Window Period or for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if the Officer’s employment is terminated
by the Bank other than for Cause or Disability, the date specified in the Notice of Termination (which shall not be less than 30 nor more than 60 days from the date such Notice of Termination is given), and (iii) if the Officer’s
employment is terminated for Disability, 30 days after Notice of Termination is given, provided that the Officer shall not have returned to the full-time performance of his duties during such 30-day period. 
 6. Compensation Upon Termination.  
 (a) Termination Without Cause or for Good Reason or During Window Period. The Officer will be entitled to the following benefits if, during the Employment Period, the Bank terminates his employment without Cause or the Officer
terminates his employment with the Bank or any affiliated company for Good Reason or during the Window Period: 
 (i)
Accrued Obligations. The Accrued Obligations are the sum of: (1) the Officer’s Annual Base Salary through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given; (2) the amount, if
any, of any incentive or bonus compensation theretofore earned which has not yet been paid; (3) the product of the Annual Bonus paid or payable, including by reason of deferral, for the most recently completed year and a fraction, the numerator
of which is the number of days in the current year through the Date of Termination and the denominator of which is 365; and (4) any benefits or awards (including both the cash and stock components) which pursuant to the terms of any plans,
policies or programs have been earned or become payable, but which have not yet been paid to the Officer (but not including amounts that previously had been deferred at the Officer’s request, which amounts will be paid in accordance with the
Officer’s existing directions). The Accrued Obligations will be paid to the Officer in a lump sum cash payment within ten days after the Date of Termination; 
  

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 (ii) Salary Continuance
Benefit. The Salary Continuance Benefit is an amount equal to 2.99 times the Officer’s Final Compensation. For purposes of this Agreement, “Final Compensation” means the Annual Base Salary in effect at the Date of Termination,
plus the highest Annual Bonus paid or payable for the two most recently completed years and any amount contributed by the Officer during the most recently completed year pursuant to a salary reduction agreement or any other program that provides for
pre-tax salary reductions or compensation deferrals. The Salary Continuance Benefit will be paid to the Officer in a lump sum cash payment not later than the 45th day following the Date of Termination; 
 (iii) Welfare Continuance
Benefit. For 24 months following the Date of Termination, the Officer and his eligible dependents will continue to be covered under all health and dental plans, disability plans, life insurance plans and all other welfare benefit plans (as
defined in Section 3(1) of ERISA) (“Welfare Plans”) in which the Officer and his eligible dependents were participating immediately prior to the Date of Termination (the “Welfare Continuance Benefit”). The Bank will pay all
or a portion of the cost of the Welfare Continuance Benefit for the Officer and his dependents under the Welfare Plans on the same basis as in effect immediately before the Date of Termination, and the Officer will pay any additional costs. If
participation in any one or more of the Welfare Plans included in the Welfare Continuance Benefit is not possible under the terms of the Welfare Plan or any provision of law would create an adverse tax effect for the Officer or the Bank due to such
participation, the Bank will provide substantially identical benefits directly or through a separate insurance arrangement. The Welfare Continuance Benefit as to any Welfare Plan will cease if and when the Officer has obtained coverage under one or
more welfare benefit plans of a subsequent employer that provides for equal or greater benefits to the Officer and his dependents with respect to the specific type of benefit. 
 (b) Death. If the Officer dies during the Employment Period, this Agreement will terminate without any further obligation on the part of the Bank
under this 

  

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Agreement, other than for (i) payment of the Accrued Obligations and six months of the Officer’s Base Salary (which shall be paid to the
Officer’s beneficiary designated in writing or his estate, as applicable, in a lump sum cash payment within 30 days of the date of death); (ii) the timely payment or provision of the Welfare Continuance Benefit to the Officer’s spouse
and eligible dependents for 24 months following the date of death; and (iii) the timely payment of all death and retirement benefits pursuant to the terms of any plan, policy or arrangement of the Bank and its affiliated companies. 

(c) Disability. If the Officer’s employment is terminated because of the Officer’s Disability during the Employment Period, this
Agreement will terminate without any further obligation on the part of the Bank under this Agreement, other than for (i) payment of the Accrued Obligations and six months of the Officer’s Base Salary (which shall be paid to the Officer in
a lump sum cash payment within 30 days of the Date of Termination); (ii) the timely payment or provision of the Welfare Continuance Benefit for 24 months following the Date of Termination; and (iii) the timely payment of all disability and
retirement benefits pursuant to the terms of any plan, policy or arrangement of the Bank and its affiliated companies. 
 (d) Cause; Other
than for Good Reason. If the Officer’s employment is terminated for Cause during the Employment Period, this Agreement will terminate without further obligation to the Officer other than the payment to the Officer of the Annual Base Salary
through the Date of Termination, plus the amount of any compensation previously deferred by the Officer. If the Officer terminates employment during the Employment Period, excluding a termination either for Good Reason or during the Window Period,
this Agreement will terminate without further obligation to the Officer other than for the Accrued Obligations (which will be paid in a lump sum in cash within 30 days of the Date of Termination) and any other benefits to which the Officer may be
entitled pursuant to the terms of any plan, program or arrangement of the Bank and its affiliated companies. 
 (e) Gross-Up Payment.
In the event any payment or distribution by the Bank to or for the benefit of the Officer (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 6(e)) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986 (the “Code”) or any interest or penalties are incurred by the
Officer with respect to such excise tax (collectively, the “Excise Tax”), then the Officer will be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Officer of all taxes
(including any income taxes and interest or penalties imposed with respect to such taxes) and the Excise Tax imposed on the Gross-Up Payment, the Officer retains an amount of the Gross-Up Payment equal to the Excise Tax imposed on the Payments. All
determinations required to be made under this Section 6(e), including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment, will be made by the independent accounting firm of the Bank immediately prior to the
Officer’s termination of employment (the “Accounting Firm”). All fees and expenses of the Accounting Firm will be borne solely by the Bank, and any determination by the Accounting Firm will be binding upon the Bank and the Officer.
Any Gross-Up Payment, as determined pursuant to this Section 6(e), will be paid by the Bank to the Officer within ten days of the receipt of the Accounting Firm’s determination. 
  

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 (i) If the Accounting Firm determines that no Excise Tax is payable by the Officer, it
shall so indicate to the Officer in writing. 
 (ii) In the event there is an under-payment of the Gross-Up Payment due to the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm and the Officer thereafter is required to make a payment of any Excise Tax, the Accounting Firm will determine the amount
of any such under-payment that has occurred and such amount will be promptly paid by the Bank to or for the benefit of the Officer. 
 7.
Binding Agreement; Successors. 
 (a) This Agreement will be binding upon and inure to the benefit of the Officer (and his personal
representative), the Bank and any successor organization or organizations which shall succeed to substantially all of the business and property of the Bank, whether by means of merger, consolidation, acquisition of all or substantially of all of the
assets of the Bank or otherwise, including by operation of law. 
 (b) The Bank will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Bank to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to
perform it if no such succession had taken place. 
 (c) For purposes of this Agreement, the term “Bank” includes any subsidiaries
of the Bank and any corporation or other entity which is the surviving or continuing entity in respect of any merger, consolidation or form of business combination in which the Bank ceases to exist. 
 8. Fees and Expenses; Mitigation. 
 (a) The Bank will pay or reimburse the Officer, on a current basis, for all costs and expenses, including without limitation court costs and reasonable attorneys’ fees, incurred by the Officer (i) in contesting or disputing any
termination of the Officer’s employment or (ii) in seeking to obtain or enforce any right or benefit provided by this Agreement, in each case regardless of whether or not the Officer’s claim is upheld by a court of competent
jurisdiction; provided, however, the Officer will be required to repay any such amounts to the Bank to the extent that a court issues a final and non-appealable order setting forth the determination that the position taken by the Officer was
frivolous or advanced by him or her in bad faith. 
 (b) The Officer shall not be required to mitigate the amount of any payment the Bank
becomes obligated to make to the Officer in connection with this 

  

 7 

 
Agreement, by seeking other employment or otherwise. Except as specifically provided above with respect to the Welfare Continuance Benefit, the amount of any
payment provided for in Section 6 shall not be reduced, offset or subject to recovery by the Bank by reason of any compensation earned by the Officer as the result of employment by another employer after the Date of Termination, or otherwise.

 9. No Employment Contract. Nothing in this Agreement will be construed as creating an employment contract between the Officer and
the Bank prior to a Change in Control. 
 10. Outplacement Services. If the Officer is entitled to the severance benefits under
Section 6(a), the Officer will be entitled to receive complete outplacement services, including job search services, paid by the Bank up to a total of $25,000. The services will be provided by a recognized outplacement organization selected by
the Officer with the approval of the Bank (which approval will not be unreasonably withheld). The services will be provided for up to two years after the Date of Termination. 
 11. Continuance of Welfare Benefits Upon Death. If the Officer dies while receiving a Welfare Continuation Benefit, the Officer’s spouse and
eligible dependents will continue to be covered under all applicable Welfare Plans during the remainder of the 24-month coverage period. 
 12. Notice. Any notices and other communications provided for by this Agreement will be sufficient if in writing and delivered in person or sent by registered or certified mail, postage prepaid (in which case notice will be deemed to
have been given on the third day after mailing), or by overnight delivery by a reliable overnight courier service (in which case notice will be deemed to have been given on the day after delivery to such courier service). Notices to the Bank shall
be directed to the Secretary of the Bank, with a copy directed to the Chairman of the Board of the Bank. Notices to the Officer shall be directed to his last known address. 
 13. Definition of a Change in Control. For purposes of this Agreement, a “Change in Control” means: 
 (a) The acquisition by any Person of beneficial ownership of 20% or more of the then outstanding shares of common stock of the Bank; 
 (b) Individuals who constitute the Board on the date of this Agreement (the “Incumbent Board”) cease to constitute a majority of the Board,
provided that any director whose nomination was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board will be considered a member of the Incumbent Board, but excluding any such individual whose initial
assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Bank; 
 (c) Approval by the shareholders of the Bank of a reorganization, merger, share exchange or consolidation (a “Reorganization”), provided that shareholder approval of a Reorganization will not constitute a Change in Control if,
upon consummation of the Reorganization, each of the following conditions is satisfied: 
 (i) more than 60% of the then
outstanding shares of common stock of the corporation resulting from the Reorganization is beneficially owned by all or substantially all of the former shareholders of the Bank in substantially the same proportions as their ownership existed in the
Bank immediately prior to the Reorganization; 
  

 8 

 (ii) no Person beneficially owns 20% or more of either (1) the then outstanding
shares of common stock of the corporation resulting from the transaction or (2) the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors; and 
 (iii) at least a majority of the members of the board of directors of the corporation resulting from the Reorganization were members of
the Incumbent Board at the time of the execution of the initial agreement providing for the Reorganization. 
 (d) Approval by the
shareholders of the Bank of a complete liquidation or dissolution of the Bank, or of the sale or other disposition of all or substantially all of the assets of the Bank. 
 (e) For purposes of this Agreement, “Person” means any individual, entity or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 (the “Exchange Act”)), other
than any employee benefit plan (or related trust) sponsored or maintained by the Bank or any affiliated company, and “beneficial ownership” has the meaning given the term in Rule 13d-3 under the Exchange Act. 
 14. Confidentiality. The Officer will hold in a fiduciary capacity for the benefit of the Bank all secret or confidential information, knowledge
or data relating to the Bank or any of its affiliated companies and their respective businesses, which was obtained by the Officer during the Officer’s employment by the Bank or any of its affiliated companies and which will not be or become
public knowledge. After termination of the Officer’s employment with the Bank, the Officer will not, without the prior written consent of the Bank or except as may otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Bank and those designated by it. In no event shall an asserted violation of the provisions of this Section 14 constitute a basis for deferring or withholding any amounts otherwise payable
to the Officer under this Agreement. 
 15. Miscellaneous. No provision of this Agreement may be amended, modified, waived or
discharged unless such amendment, modification, waiver or discharge is agreed to in a writing signed by the Officer and the Chairman of the Board or President of the Bank. No waiver by either party hereto at any time of any breach by the other party
hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or 

  

 9 

 
at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been
made by either party which are not expressly set forth in this Agreement. 
 16. Governing Law; Forum Selection. The validity,
interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Virginia. The Bank and the Officer hereby submit to the jurisdiction and venue of any state or federal court located within the
Commonwealth of Virginia for resolution of any such claims, causes of action or disputes arising out of or relating to or concerning this Agreement. 
 17. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and
effect. 
 18. Survival. Except as otherwise expressly provided herein, upon the Date of Termination or expiration of this Agreement
at the completion of the Employment Period, the respective rights and obligations of the parties hereto shall survive such Date of Termination or expiration to the extent necessary to carry out the intentions of the parties embodied in the rights
and obligations of the parties under this Agreement. 
  

 10 

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

					
	VIRGINIA SAVINGS BANK, F.S.B.
			
	By:	 	 /s/ Francis D. Hall
	 	
		 	Francis D. Hall	 	
		 	Chairman of the Board	 	
	
	OFFICER
			
		 	 /s/ W. Michael Funk
	 	
		 	W. Michael Funk	 	

  

 11

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