Document:

Exhibit 10.1

 

FIRST
amendment TO EMPLOYMENT AGREEMENT

 

THIS FIRST AMENDMENT
TO EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this 24th day of May, 2016,
by and between MARTYN A. PELL, a resident of North Carolina (“Executive”), and FIRST COMMUNITY BANCSHARES, INC.,
a Nevada Corporation, including subsidiaries and affiliates (the “Corporation” or “FCB”), both of whom
together may be referred to herein as the “Parties.”

 

WITNESSETH:

 

WHEREAS, Executive
is employed by FCB pursuant to an employment agreement dated January 1, 2015, (the “Employment Agreement”) and currently
serves as President of FCB’s banking subsidiary, First Community Bank (hereinafter the “Bank”); and

 

WHEREAS, pursuant
to Section 19 of the Employment Agreement, the Employment Agreement may be amended in writing by FCB and Executive; and

 

WHEREAS, FCB and
Executive wish to amend the Employment Agreement, but only in and limited to the manner set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the above premises, the mutual covenants of the parties hereto, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree the Employment Agreement shall be amended as
follows:

 

1.Section 2 of the
Employment Agreement shall be modified so that the Term shall expire at such time as Executive finds Alternative Employment, provided
that such date shall not be later than January 1, 2017. For purposes of this Agreement, “Alternative Employment” is
defined as any employment or engagement whatsoever for which Executive receives compensation of any kind, specifically including
but not limited to the setting up of any business whether as a sole proprietor, in partnership with others, or through or for any
corporation or business entity, and expressly including becoming a consultant or doing free-lance, part-time, or per-diem work.
Executive agrees to not coordinate or delay Alternative Employment in order to foil or frustrate the intent of this provision or
prolong his employment with FCB. Executive further agrees to immediately notify FCB in the event he obtains Alternative Employment,
at which point his employment with the Bank will terminate, along with all employee benefits, executive benefits and perquisites.
In addition, section 9 of the Employment Agreement is amended to allow Executive to provide fourteen (14) days prior written notice
of resignation of his employment to the Corporation.

 

     

     

    

 

2.The Non-Compete
Restriction set forth in Section 15 of the Employment Agreement shall remain in full force and effect for twenty four (24) months
from the Date of Termination, and the definition of “Restricted Territory” in Section 15(a) of the Employment Agreement
shall be revised to exclude all territories in North Carolina except the following counties: Allegheny, Alexander, Surry, Wilkes,
Stokes, Yadkin and Catawba. Otherwise, the definition of “Restricted Territory” shall remain as set forth in Section
15(a) of the Employment Agreement, including the prohibitions against Executive not accepting employment with or provide services
to or on behalf of any “Competing Financial Services Organization” which operates, or is seeking to open one or more
branch facilities, within a fifty (50) mile radius of the Corporation’s headquarters or within a twenty-five (25) mile radius
of any facility operated by the Corporation in West Virginia, Virginia, or Tennessee. Provided, however, Executive may be employed
by a Competing Financial Services Organization in North Carolina so long as Executive is not personally present or personally providing
services, directly or remotely, within the North Carolina counties of Allegheny, Alexander, Surry, Wilkes, Stokes, Yadkin and Catawba
It is understood and agreed that the phrase “personally providing services, directly or remotely” does not include
Executive performing company-wide responsibilities and services on behalf of a Competing Financial Services Organization.

 

3.The Anti-Piracy
Restrictions set forth in Section 16 of the Employment Agreement shall be extended to Twenty-four (24) months from the Date of
Termination and shall include all employees, including “Transferred Employees” as that term is defined in the P&A
with First Bank.

 

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4.The Non-Solicitation
Restriction set forth in Section 14 of the Employment Agreement shall remain in full force and effect for twenty-four (24) months
from the Date of Termination and shall specifically include, for a period of twenty-four (24) months, customers whose banking relationships
were transferred to First Bank pursuant to the P&A.

 

5.Commencing with
the date of this Agreement, Executive hereby agrees to continue to serve as Bank’s President through the Date of Termination,
but without the current or customary duties associated with said office or the ability to bind the Bank or the Corporation in agreements
with third parties. Further, upon execution of this Agreement, Executive will resign from the Board of Directors of the Bank, and
will resign from other Boards and internal or external Committees associated with FCB and its affiliates when and as instructed
by FCB, and Executive agrees to serve under the direction and in consultation with the Chief Executive Officer of the Bank.

 

6.Executive shall
be entitled to no severance, continuing compensation, or other pay or benefits (other than as specifically and expressly set forth
in this Agreement) subsequent to the Date of Termination.

 

7.Subject to the
rights of Executive in paragraph 1 above, during the period from the date of this Agreement through July 31, 2016, Executive’s
primary responsibility shall be to transition his duties to other staff of the Bank as determined by the CEO and to provide assistance
with the Transactions and assist the closing of the Transactions and smooth transitions from and to the Bank, as appropriate, while
also being available to the Bank on an as needed basis. The Parties acknowledge that during this time Executive will be seeking
Alternative Employment. However, Executive is not obligated to stay employed with the Bank through July 31, 2016 in the event that
Executive finds Alternative Employment or provides notice to the Bank of his resignation as provided in paragraph 1.

 

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8.During the period
from August 1, 2016, through January 1, 2017, the Executive will primarily focus on seeking Alternative Employment, but will continue
to be available to the Bank on an as needed basis.

 

9.Executive shall
be eligible to be considered for annual incentive compensation earned as a result of 2015 performance, as awarded by the Corporation’s
Compensation and Retirement Committee (“CRC”), which is further subject to approval by the Corporation’s Board
of Directors (“Board”), but without the need for an annual performance evaluation. Seventy-Five Percent (75%) of any
such annual incentive compensation paid to Executive shall be paid in cash at the same time as is paid to other executives; the
remaining Twenty-Five Percent (25%) will be paid in cash immediately upon the execution of this Agreement.

 

10.Executive is eligible
to be considered for annual incentive compensation in 2017 based on 2016 performance, as awarded by the Corporation’s Compensation
and Retirement Committee (“CRC”), but only if the Executive has not obtained Alternative Employment by the time that
such incentive compensation, if any, is paid to other executives in 2017. This is at the sole discretion of the CRC and the Board
of Directors. Under the Company’s existing annual incentive compensation methodology, the CRC’s decision whether to
award any annual incentive compensation applies to the management team as a whole. If the CRC chooses to award such incentive compensation,
any amount awarded to Executive shall only consider time and other factors relevant to the period beginning January 1, 2016 and
ending July 31, 2016.

 

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11.FCB will reimburse
Executive for reasonable legal expenses of no more than Thirty-Five Hundred and 00/100 Dollars ($3,500.00) actually incurred by
Executive for an independent review of this Agreement by counsel of Executive’s choice.

 

12.Executive shall
execute a waiver and release of any and all claims against FCB. Such waiver and release, which shall be in substantially the same
form as Exhibit A hereof, shall be executed twice: once upon entering into this Agreement and again as of the Date of Termination;
however such waiver and release only becomes effective on the Date of Termination. It is understood and agreed that such waiver
and release by Executive does not apply to any right of Executive or obligation of the Corporation or FCB contained in this Agreement.

 

13.This Agreement
may be executed in one or more counterparts, which taken together shall constitute an original. This Agreement may not be modified
in whole or in part except by a written document executed by both Parties.

 

14.Except as expressly
modified or superseded by this Agreement, the Employment Agreement is hereby ratified and confirmed and all terms, conditions and
obligations of the Employment Agreement and all other documents executed in connection therewith shall remain unaltered and in
full force and effect as originally written therein, and each of said agreements are incorporated herein by reference. Whether
or not specifically amended by this Agreement, all of the terms and provisions of the Employment Agreement are hereby amended to
the extent necessary to give effect to the purpose and intent of this Agreement.

 

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IN WITNESS WHEREOF,
this First Amendment to Employment Agreement has been duly signed by an authorized officer of FCB and individually by Executive,
respectively, all as of date first above written.

 

	 	FIRST COMMUNITY BANK:
	 	 	 
	 	By:  	/s/ Gary R. Mills
	 	        	Gary R. Mills, Chief Executive Officer
	 	 	 
	 	 	 
	 	EXECUTIVE:
	 	 
	 	/s/ Martyn A. Pell
	 	Martyn A. Pell

 

    	 	6Exhibit 10.1

 

FORM OF

WELLESLEY BANK

EMPLOYEE SEVERANCE COMPENSATION PLAN

 

		A.	Purpose.

 

The primary purpose of
the Wellesley Bank Employee Severance Compensation Plan is to ensure the successful continuation of the business of Wellesley Bank
and the fair and equitable treatment of the employees of Wellesley Bank following a Change in Control.

 

		B.	Definitions.

 

In this Plan, whenever the context so indicates,
the singular or the plural number and the masculine or feminine gender shall be deemed to include the other, the terms “he,”
“his,” and “him,” shall refer to an employee and, except as otherwise provided, or unless the context otherwise
requires, the capitalized terms shall have the following meanings:

 

“Bank” means Wellesley Bank and its successors.

 

“Base Compensation” means

 

(a) For salaried
employees, the employee’s annual base salary at the rate in effect on his termination date or, if greater, the rate in effect
on the date immediately preceding the Change in Control.

 

(b) For employees
whose compensation is determined in whole or in part on the basis of commission income, the employee’s base salary at his
termination date (or, if greater, the employee’s base salary on the date immediately preceding the effective date of the
Change in Control), if any, plus the commissions earned by the employee in the twelve (12) full calendar months preceding his termination
of employment (or, if greater, the commissions earned in the twelve (12) full calendar months immediately preceding the effective
date of the Change in Control).

 

(c) For hourly
employees, the employee’s total hourly wages for the twelve (12) full calendar months preceding his termination of employment
or, if greater, the twelve (12) full calendar months preceding the effective date of the Change in Control.

 

“Board of Directors” means the Board of Directors
of the Bank.

 

“Cause”
means grounds for termination of employment due to the employee’s personal dishonesty, willful misconduct, breach
of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule,
or regulation (other than traffic violations or similar offenses) or final cease-and-desist order.

 

“Change in Control”
means a change in control of the Bank or the Corporation, as defined in Section 409A of the Code and rules, regulations,
and guidance of general application thereunder issued by the Department of the Treasury, including:

 

(a)Change
in ownership: a change in ownership of the Corporation occurs on the date any one person or group accumulates ownership
of Corporation stock constituting more than 50% of the total fair market value or total voting power of Corporation stock;

 

     

     

    

 

(b)Change
in effective control: (x) any one person or more than one person acting as a group acquires within a 12-month period ownership
of Corporation stock possessing 30% or more of the total voting power of Corporation stock, or (y) a majority of the Corporation’s
board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed in advance
by a majority of the Corporation’s board of directors; or

 

(c)Change
in ownership of a substantial portion of assets: a change in ownership of a substantial portion of the Corporation’s
assets occurs if in a 12-month period any one person or more than one person acting as a group acquires from the Corporation assets
having a total gross fair market value equal to or exceeding 40% of the total gross fair market value of all of the Corporation’s
assets immediately before the acquisition or acquisitions. For this purpose, gross fair market value means the value of the Corporation’s
assets, or the value of the assets being disposed of, determined without regard to any liabilities associated with the assets.

 

“Change in Control Severance Benefit”
means the benefit provided for in Paragraph D of the Plan.

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Comparable Position”
means a position that would (i) provide the employee with base compensation and benefits that are comparable in the
aggregate to those provided to the employee prior to the Change in Control; (ii) provide the employee with an opportunity for variable
bonus compensation that is comparable to the opportunity provided to the employee prior to the Change in Control; (iii) be in a
location that would not require the employee to increase his daily one-way commuting distance by more than thirty-five (35) miles
as compared to the employee’s commuting distance immediately prior to the Change in Control; and (iv) have job skill requirements
and duties that are comparable to the requirements and duties of the position held by the employee immediately prior to the Change
in Control.

 

“Corporation” means
Wellesley Bancorp, Inc. and its successors.

 

“Plan” means this Wellesley
Bank Employee Severance Compensation Plan, as may be amended from time to time.

 

“Year of Service”
means each 12-month period of service following an employee’s date of hire during which the employee completes at least one
hour of service each month. The taking of a leave of absence shall not eliminate a period of time from being a Year of Service
if the period of time otherwise qualifies as a year of service. A “leave of absence” means (i) the taking of an authorized
or approved leave of absence under the provisions of the federal Family and Medical Leave Act (“FMLA”), (ii) any state
law providing qualitatively similar benefits as the FMLA, or (iii) a leave of absence authorized under the policies of the Bank.

 

		C.	Covered Employees.

 

(a) Any employee of the Bank with
at least one Year of Service as of the date of his termination of employment shall receive a Change in Control Severance Benefit
if, within the period beginning on the effective date of a Change in Control and ending on the first anniversary of the effective
date of the Change in Control, (i) the Bank terminates the employee’s employment without Cause, or (ii) the employee terminates
employment with the Bank voluntarily after being offered continued employment in a position that is not a Comparable Position.

 

(b) Notwithstanding the foregoing,
no employee shall be eligible for a Change in Control Severance Benefit if, at the time of his termination of employment, the employee
is a party to an individual employment agreement or change in control agreement with the Bank and/or the Corporation pursuant to
which he is entitled to severance benefits.

 

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		D.	Determination and Payment of the Change in Control
Severance Benefit.

 

(a) The Change in Control Severance Benefit payable
to an eligible employee under this Plan shall be determined under as follows:

 

(1) Except
as provided for in Paragraph D(a)(2), an eligible employee shall receive a Change in Control Severance Benefit equal to the product
of (i) the employee’s Years of Service from his hire date (including partial years and years prior to the adoption of this
Plan) through the date of the termination of his employment and (ii) an amount equal to the employee’s Base Compensation
for two (2) weeks. The maximum payment to an eligible employee shall be an amount equal to fifty-two (52) week’s of Base
Compensation and the minimum payment shall be an amount equal to four (4) week’s of Base Compensation.

 

(2)An
eligible employee who is designated as a Vice President or above shall receive a Change in Control Severance Benefit equal to fifty-two
week’s of Base Compensation, regardless of the employees Years of Service.

 

(b) The
Change in Control Severance Benefit shall be paid in a lump sum not later than five (5) business days after the date of the eligible
employee’s termination of employment.

 

(c) All payments under this Plan will
be subject to required withholding for federal, state and local tax purposes.

 

		E.	Parachute Payment.

 

Notwithstanding anything in this Plan to
the contrary, if a Change in Control Severance Benefit that is otherwise payable to an employee who is a “disqualified individual”
would constitute an “excess parachute payment,” taking into account payments under this Plan and otherwise, then the
benefit payable under this Plan shall be reduced to the maximum amount which does not include an excess parachute payment. The
terms “disqualified individual” and “excess parachute payment” shall have the same meanings as under Section
280G of the Code.

 

		F.	Adoption by Affiliates.

 

Upon approval by the
Board of Directors, this Plan may be adopted by any “subsidiary” or “parent” of the Bank. Upon such adoption,
the provisions of the Plan shall be fully applicable to the employees of that subsidiary or parent. The term “subsidiary”
means any corporation in which the Bank, directly or indirectly, holds a majority of the voting power of its outstanding shares
of capital stock. The term “parent” means any corporation which holds a majority of the voting power of the outstanding
shares of capital stock of the Bank.

 

		G.	Administration.

 

The Plan shall be administered
by the Board of Directors, which shall have the discretion to interpret the terms of the Plan and to make all determinations about
eligibility and payment of benefits. All decisions of the Board of Directors, any action taken by the Board of Directors with respect
to the Plan and within the powers granted to the Board of Directors under the Plan, and any interpretation by the Board of Directors
of any term or condition of the Plan, shall be conclusive and binding on all persons, and will be given the maximum possible deference
allowed by law. The Board of Directors may delegate and reallocate any authority and responsibility with respect to the Plan.

 

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		H.	Source of Payments.

 

Unless otherwise determined by the Board
of Directors, all payments and benefits provided under this Agreement shall be paid solely by the Bank or, if applicable, any affiliate
that adopts the Plan.

 

		I.	Inalienability.

 

In no event may any employee sell, transfer,
anticipate, assign or otherwise dispose of any right or interest under the Plan. At no time will any such right or interest be
subject to the claims of creditors, nor liable to attachment, execution or other legal process.

 

		J.	Governing Law.

 

The provisions of the
Plan will be construed, administered and enforced in accordance with the laws of the Commonwealth of Massachusetts, except to the
extent that federal law applies.

 

		K.	Severability.

 

If any provision of the
Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan, and
the Plan will be construed and enforced as if such provision had not been included.

 

		L.	No Employment Rights.

 

Neither the establishment
nor the terms of this Plan shall be held or construed to confer upon any employee the right to a continuation of employment, nor
constitute a contract of employment, express or implied. The Bank and, if applicable, any affiliate that adopts the Plan, reserves
the right to dismiss or otherwise deal with any employee to the same extent and on the same basis as though this Plan had not been
adopted. Nothing in this Plan is intended to alter the at-will status of an employee’s employment status, it being understood
that, except to the extent otherwise expressly set forth to the contrary in an individual employment-related agreement, the employment
of any employee may be terminated at any time by the Bank or, if applicable, any affiliate that adopts the Plan.

 

		M.	Amendment and Termination.

 

The Board of Directors
may terminate or amend the Plan in any respect, unless a Change in Control has previously occurred. If a Change in Control occurs,
the Plan no longer shall be subject to amendment, change, substitution, deletion, revocation or termination in any respect whatsoever.
The form of any proper amendment or termination of the Plan shall be a written instrument signed by a duly authorized officer or
officers of the Bank, certifying that the amendment or termination has been approved by the Board of Directors. A proper amendment
of the Plan automatically shall effect a corresponding amendment to each Participant’s rights hereunder. A proper termination
of the Plan automatically shall effect a termination of all employees’ rights and benefits hereunder.

 

		N.	Required Provisions.

 

(1)            
In the event any of the provisions of this Paragraph N are in conflict with the terms of this Plan, this Paragraph N shall
prevail.

 

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(2)            
The Bank may terminate an employee’s employment at any time, but any termination by the Bank, other than termination
for Cause, shall not prejudice an employee’s right to compensation or other benefits under this Plan. An employee shall not
have the right to receive compensation or other benefits for any period after termination for Cause.

 

(3)            
If an employee is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s
affairs by a notice served under Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(3) or
(g)(1); the Bank’s obligations under this Plan shall be suspended as of the date of service, unless stayed by appropriate
proceedings. If the charges in the notice are dismissed, the Bank may in its discretion: (i) pay the employee all or part of the
compensation withheld while their contract obligations were suspended; and (ii) reinstate (in whole or in part) any of the obligations
which were suspended.

 

(4)            
If an employee is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by
an order issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or (g)(1), all
obligations of the Bank under this Plan shall terminate as of the effective date of the order, but vested rights of the contracting
parties shall not be affected.

 

(5)            
If the Bank is in default as defined in Section 3(x)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1813(x)(1)
all obligations under this Plan shall terminate as of the date of default, but this paragraph shall not affect any vested rights
of the contracting parties.

 

(6)            
Any payments made to employees pursuant to this Plan, or otherwise, are subject to and conditioned upon their compliance
with 12 U.S.C. §1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

 

[signature page to
follow]

 

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This plan has been approved
and adopted by the Board of Directors of the Bank and is effective as of ______________, 2016.

 

 

	 	 	 	WELLESLEY BANK
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Attest: 	 	 	By: 	 
	 	 	 	 	For the Entire Board of Directors

 

 

    	 	6

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