Document:

Exhibit 10.27

March 1, 2014

 

Mr. Stephen M. Bachelder

 

Dear Mr. Bachelder:

 

The purpose of this letter is to confirm
your continuing employment with Lakeland Industries, Inc. on the following terms and conditions:

 

		1.	THE PARTIES

 

This is an Agreement, effective as of March 1, 2014 (the “Effective
Date”), between Stephen M. Bachelder, (hereinafter referred to as
“you”), and Lakeland Industries, Inc., a Delaware corporation, with a principal place of business located at 701 Koehler
Avenue, Suite 7, Ronkonkoma, NY  11779-7410 (hereinafter the “Company”).

 

		2.	TERM

 

The term of the Agreement shall be for
a 3 year period from the Effective Date through and including March 1, 2017 unless sooner terminated as provided herein (the “Term”).

 

		3.	CAPACITY

 

You shall be employed in the capacity of
Chief Operating Officer of Lakeland Industries, Inc. with such responsibilities and duties as may be assigned from time to time
by the CEO as are consistent in all material respects with the responsibilities and duties typically assigned to a Chief Operating
Officer, and as addressed in Annex B attached hereto and made a part hereof.

 

You agree to devote your full time and
attention and best efforts to the faithful and diligent performance of your duties to the Company and shall serve and further the
best interests and enhance the reputation of the Company to the best of your ability.

 

		4.	COMPENSATION

 

As full compensation for your services,
you shall receive the following from the Company:

 

		(a)	An annual base salary of $290,000 payable bi-weekly (the “Base Salary”); and

 

		(b)	Participation, if and when eligible, in such pension plans, profit sharing plans, medical and disability
plans, stock appreciation rights plans, stock option plans, ESOP or 401(k) plans as are generally maintained by the Company for
its employees from time to time when any such plans are or become effective; and

 

		(c)	Such benefits as are provided from time to time by the
Company to its officers and employees; provided however that your annual vacation shall be for a period of three weeks, with no
more than two such weeks taken at any one time; and

 

    	 

    	 

    

 

		(d)	Reimbursement for any dues and expenses incurred by you
that are necessary and proper in the conduct of the Company’s business; and

 

		(e)	An annual bonus as set forth in Section 5 of this Agreement (the “Annual Bonus”).

 

		5.	ANNUAL BONUS

 

During the Term, in addition to Base Salary,
you have the opportunity to earn an Annual Bonus under an incentive compensation plan as determined by the Compensation Committee
of the Board of Directors of the Company (the “Board”). In May of each year during the Term commencing in 2014, you
may be awarded an Annual Bonus of between 80% and 120% of your target bonus amount of $85,000, subject to adjustment by the Compensation
Committee from time to time (the “Target Bonus Amount”). Such Annual Bonus shall be calculated based upon the Company’s
actual earnings per share (“EPS”) as compared to an EPS target amount (the “FY EPS Target”), EPS threshold
amount (the “FY EPS Threshold”) or EPS maximum amount (the “FY EPS Maximum”) for such year set by the Compensation
Committee with input from you; provided, however, the Compensation Committee shall have final decision-making authority. More particularly,
(i) 80% of the Target Bonus Amount will be awarded to you as an Annual Bonus if the Company’s actual EPS equals or exceeds
the FY EPS Threshold but is less than the FY EPS Target, (ii) 100% of the Target Bonus Amount will be awarded to you as an Annual
Bonus if the Company’s actual EPS equals or exceeds the FY EPS Target but is less than the FY EPS Maximum, and (iii) 120%
of the Target Bonus Amount will be awarded to you as an Annual Bonus if the Company’s actual EPS equals or exceeds the FY
EPS Maximum. Payment of the Annual Bonus, if any, due you, shall be made in accordance with the Company’s normal payroll
procedures, but no later than June 1 following the year for which the Annual Bonus was earned. The Annual Bonus will be calculated
each May during the Term.

 

		6.	NON-COMPETITION/SOLICITATION/CONFIDENTIALITY

 

In consideration for the severance provisions
granted herein, during your employment with the Company and for 18 months thereafter, you shall not, either directly or indirectly,
as an agent, employee, partner, stockholder, director, investor or otherwise, engage in any business in competition with the business
of the Company within the Company’s market area(s).  You shall also abide by the Code of Ethics Agreement and other
Corporate Governance Rules.  You shall disclose prior to the execution of this Agreement (or later on as the case may be)
all business relationships you presently have or contemplate entering into or enter into in the future that might affect your responsibilities
or loyalties to the Company.

 

During your employment with the Company
and for 18 months thereafter, you shall not, directly or indirectly, hire, offer to hire or otherwise solicit the employment or
services of, any employee of the Company on behalf of yourself or any other person, firm or entity.

 

Except as may be required to perform your
duties on behalf of the Company, you agree that during your employment with the Company and for a period of 18 months thereafter,
you shall not, directly or indirectly, solicit, service, or accept business from, on your own behalf or on behalf of any other
person, firm or entity, any customers or potential customers of the Company with whom you had contact during your employment or
about whom you acquired confidential information during your employment.

 

Except as required in your duties to the
Company, you shall not at any time for 5 years after your employment, directly or indirectly, use or disclose any confidential
or proprietary information relating to the Company or its business or customers which is disclosed to you or known by you as a
consequence of or through your employment by the Company and which is not otherwise generally obtainable by the public at large.

 

    	 

    	 

    

 

In the event that any of the provisions
in this Section 6 shall ever be adjudicated to exceed limitations permitted by applicable law, you agree that such provisions shall
be modified and enforced to the maximum extent permitted under applicable law.

 

		7.	TERMINATION

 

You or the Company may terminate your employment
prior to the end of the Term upon written notice to the other party in accordance with the following provisions:

 

		(a)	Voluntary Termination. You may terminate your employment voluntarily at any time during
the Term by providing the Company with 60 days prior written notice. If you do so, except for Good Reason (as defined below), you
shall be entitled to receive from the Company your (i) accrued and unpaid Base Salary through the date of termination (which shall
be on the date that is 60 days after the date on which you give notice of resignation to the Company), (ii) any Annual Bonus earned
for the year completed prior to the year of termination but not yet paid, and (iii) any other employee benefits generally paid
by the Company up to the date of termination (collectively (i), (ii), and (iii), the “Accrued Obligations”).

 

		(b)	Death.  This Agreement shall automatically terminate on the date of your death without
further obligation to you other than for payment by the Company to your estate or designated beneficiaries, as designated in writing
to the Company, of (i) the Accrued Obligations through the last day of the month in which your death occurs, and (ii) a pro-rata
portion of the Annual Bonus, if any, for the year of termination up to and including the date of death which shall be determined
in good faith by the Compensation Committee of the Board. Your estate or beneficiaries, as applicable, shall also be entitled to
all other benefits generally paid by the Company on an employee’s death.

 

		(c)	Disability.  This Agreement and your employment shall terminate without any further
obligation to you if you become “totally disabled” (as defined below) other than for payment by the Company of (i)
the Accrued Obligations though the last day of the month in which you are deemed to be totally disabled and (ii) a pro-rata portion
of the Annual Bonus, if any, for the year of termination up to and including the date you are deemed to be totally disabled as
determined in good faith by the Compensation Committee of the Board.

 

			You shall be deemed to be “totally disabled” in you are unable, for any reason, to
perform any of your duties and obligations to the Company, with or without a reasonable accommodation, for a period of 90 consecutive
days or for periods aggregating 120 days in any period of 180 consecutive days.

 

		(d)	Cause.  The Company may terminate your employment at any time for “Cause”
(as defined below) and this Agreement shall terminate immediately with no further obligations to you other than the Company shall
pay you, within thirty days of such termination, the Accrued Obligations up to the date of such termination for Cause.

 

    	 

    	 

    

 

		(e)	Termination by the Company Without Cause or by you for Good Reason.  If, during the
Term, the Company terminates your employment without Cause or you terminate your employment for Good Reason (as defined below),
in either such case, other than within 24 months after a Change in Control (which is covered by Subsection (f) below), you shall
be entitled to receive from the Company, subject to your continued compliance with the restrictive covenants contained in Section
6 hereof and your execution and non-revocation of a release of claims substantially in the form attached hereto as Annex A,
(i) the Accrued Obligations payable within 15 days after the date of termination (or, in the case of the prior year’s Annual
Bonus, at such time such bonus is payable pursuant hereto), (ii) an additional 12 months of your then current Base Salary, payable
in equal monthly installments beginning with the first payroll date after the date on which the release of claims becomes effective
and can no longer be revoked, and (iii) a pro rata portion of the Annual Bonus, if any, for the year of termination up to and including
the date of termination which shall be determined in good faith by the Compensation Committee of the Board and paid at such time
as such bonus is payable pursuant hereto.

 

		(f)	Termination by the Company Without Cause or by you for Good Reason within 24 Months After a
Change in Control. If, during the Term, the Company terminates your employment without Cause or you terminate your employment
for Good Reason, in either such case, within 24 months after a Change in Control (as defined below), you shall be entitled to receive
from the Company, subject to your continued compliance with the restrictive covenants contained in Section 6 hereof and your execution
and non-revocation of a release of claims substantially in the form attached hereto as Annex A, (i) the Accrued Obligations
payable within fifteen days after termination (or, in the case of the prior year’s Annual Bonus, at such time such bonus
is payable pursuant hereto), (ii) a lump sum amount equal to 24 months of Base Salary in effect as of the date of termination of
employment or the year immediately prior to the Change in Control, whichever is higher, and (iii) two times the Target Bonus Amount
in effect as of the date of termination of employment or the year immediately prior to the Change in Control, whichever is higher.
The severance payments under sub-paragraphs (ii) and (iii) hereof shall be paid with the first payroll date after the date on which
the release of claims becomes effective and can no longer be revoked.

 

		(g)	Notwithstanding the foregoing, if your severance payments payable hereunder constitute nonqualified
deferred compensation subject to 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the period
in which you must execute the release begins in one calendar year and ends in another, the severance payments will be made in the
later calendar year.

 

		(h)	For purposes of this Agreement:

 

(i)          “Cause”
shall mean termination based upon: (A) your failure to substantially perform your material duties and responsibilities with the
Company, after a written demand for such performance is delivered to you by the Company, which identifies the manner in which
you have not performed your duties or responsibilities, (ii) your commission of an act of fraud, theft, misappropriation, dishonesty
or embezzlement, (iii) your conviction for a felony or pleading nolo contendere to a felony, (iv) your willful and continuing
failure or refusal to carry out, or comply with, in any material respect any reasonable directive of the President or the Board
consistent with the terms of this Agreement, or (v) your material breach of any provision of this Agreement.

 

(ii)          “Good
Reason” shall mean the occurrence of any of the following events without your prior written consent:

 

    	 

    	 

    

 

		(A)	the failure of the Company to pay your Base Salary or
Annual Bonus when due and if earned, other than an inadvertent administrative error or failure, within 10 days of receipt of notice
by you,

 

		(B)	a reduction by the Company in your Base Salary,

 

		(C)	a material diminution in your authority or responsibilities
from those described herein,

 

		(D)	any material breach of this Agreement by the Company,
or

 

		(E)	a failure of the Company to have any successor assume
in writing the obligations under this Agreement.

 

		(ii)	“Change in Control” shall mean the occurrence of any of the following events during
the Term:

 

		(A)	any person, or more than one person acting as a group within the meaning of Code Section 409A
and the regulations issued thereunder, acquires ownership of stock of the Company that, together with stock held by such person
or group, constitutes more than 50% of the total fair market value and total voting power of the stock of the Company; provided,
however, that for purposes of this subsection (A), the following acquisitions shall not be deemed to result in a Change in Control:
(1) any acquisition directly from the Company, (2) any acquisition by the Company or an affiliate of the Company, or
(3) any acquisition by (x) any employee benefit plan (or related trust) intended to be qualified under Section 401(a) of
the Code or (y) any trust established in connection with any broad-based employee benefit plan sponsored or maintained, in
each case, by the Company or any corporation controlled by the Company (collectively (1), (2) and (3), the “Exempt Acquisitions”);

 

		(B)	any person, or more than one person acting as a group within the meaning of Code Section 409A
and the regulations issued thereunder, acquires (or has acquired during the 12-month period ending on the date of the most recent
acquisition) ownership of stock of the Company possessing 30% or more of the total voting power of the Company’s stock; provided,
however, that none of the Exempt Acquisitions shall constitute a Change in Control.

 

		(C)	individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, as a member of the Incumbent Board, any such individual whose initial assumption
of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or other actual or threatened
solicitation of proxies or consents by or on behalf of an individual, entity or group (a “Person” within the meaning
of the Exchange Act) other than the Board; or

 

    	 

    	 

    

 

		(D)	a person, or more than one person acting as a group within the meaning of Code Section 409A
and the regulations issued thereunder (other than a subsidiary or an affiliate of the Company), acquires (or has acquired during
the 12-month period ending on the date of the most recent acquisition) assets of the Company that have a total gross fair market
value equal to or more than 50% of the total gross fair market value of all assets of the Company immediately before such acquisition(s).

 

Notwithstanding
the foregoing, a Change in Control shall not include any event, circumstance or transaction that results from an action of any
Person, entity or group which includes, is affiliated with or is wholly or partly controlled by one or more executive officers
of the Company and in which you participate directly or actively (other than a renegotiation of your employment arrangements or
in your capacity as an employee of the Company or any successor entity thereto or to the business of the Company).

 

		8.	NOTICES

 

Any notices required to be given under
this Agreement shall, unless otherwise agreed to by you and the Company, be in writing and delivered either personally, by overnight
courier service (such as Federal Express) or sent by certified mail, return receipt requested and addressed as follows: if to the
Company, at its headquarters at 701 Koehler Avenue, Suite 7, Ronkonkoma, NY  11779-7410, or if to you, at your address or to such other address as either party shall have furnished to the other in writing
in accordance herewith. Notice shall be effective when actually received by the addressee.

 

		9.	ASSIGNMENT AND SUCCESSORS

 

The rights and obligations of the Company
under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Company.  This
Agreement may not be assigned by the Company unless the assignee or successor (as the case may be) expressly assumes the Company’s
obligations hereunder in writing.  In the event of a successor to the Company or the assignment of the Agreement, the term
“Company” as used herein shall include any such successor or assignee.

 

		10.	AMENDMENT, WAIVER OR MODIFICATION

 

No amendment, waiver or modification in
whole or in part of this Agreement or any term or condition hereof shall be effective against any party unless in writing and duly
signed by the party sought to be bound.  Any waiver of any breach of any provision hereof or right or power by any party on
one occasion shall not be construed as a waiver of or a bar to the exercise of such right or power on any other occasion or as
a waiver of any subsequent breach.

 

		11.	SEPARABILITY

 

Any provision of this Agreement which is
unenforceable or invalid in any respect in any jurisdiction shall be ineffective in such jurisdiction to the extent that it is
unenforceable or invalid without effecting the remaining provisions hereof, which shall continue in full force and effect. 
The unenforceability or invalidity of any provision of the Agreement in one jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

    	 

    	 

    

 

		12.	GOVERNING LAW AND ARBITRATION

 

This Agreement shall be interpreted and
construed in accordance with the laws of the State of New York without regard to its choice of law principles.  Any dispute,
controversy or claim of any kind arising under, in connection with, or relating to this Agreement or your employment with the Company
shall be resolved exclusively by binding arbitration.  Such arbitration shall be conducted in New York City in accordance
with the rules of the American Arbitration Association (“AAA”) then in effect.  The costs of the arbitration (fees
to the AAA and for the arbitrator(s)) shall be shared equally by the parties, subject to apportionment or shifting in the arbitration
award.  In addition, the prevailing party in arbitration shall be entitled to reimbursement by the other party for its reasonable
attorney’s fees incurred.  Judgment may be entered on the arbitration award in any court of competent jurisdiction.

 

		13.	SECTION 409A

 

It is the intent of the parties to this
Agreement that all compensation and benefits payable or provided to you under this Agreement not be subject to the additional tax
imposed pursuant to Section 409A of the Code. To the extent such potential payments or benefits could become subject to Section
409A of the Code, the parties shall cooperate to amend this Agreement with the goal of giving you the economic benefits described
herein in a manner that does not result in such tax being imposed.

 

		14.	HEADINGS

 

The headings contained in this Agreement
are for convenience only and shall not effect, restrict or modify the interpretation of this Agreement.

 

This Agreement may be signed by facsimile
or electronically, and may be signed in one or more counterparts.

 

[Signature Page Follows]

 

    	 

    	 

    

 

	 	LAKELAND INDUSTRIES, INC.
	 	 	 
	AGREED AND ACCEPTED	By:	/s/ Thomas McAteer
	 	 	Thomas McAteer
	 	 	Chairman of the Compensation
	 	 	Committee of the Board
	/s/ Stephen M. Bachelder	 	 	 
	Stephen M. Bachelder	 	 
	Chief Operating Officer	 	 

 

	 	By:	/s/ Duane Albro
	 	 	Duane Albro
	 	 	Director-Compensation Committee Member

 

	 	By:	/s/ A. John Kreft
	 	 	A. John Kreft
	 	 	Director-Compensation Committee Member

 

    	 

    	 

    

 

ANNEX A

 

General Release

 

IN CONSIDERATION OF
good and valuable consideration, the receipt of which is hereby acknowledged, and in consideration of the terms and conditions
contained in the Employment Agreement, effective as of March 1, 2014 (the “Agreement”), by and between Stephen Bachelder
(the “Executive”) and Lakeland Industries, Inc. (the “Company”), the Executive on behalf of himself and
his heirs, executors, administrators, and assigns, releases and discharges the Company and its past present and future subsidiaries,
divisions, affiliates and parents, and their respective current and former officers, directors, employees, agents, and/or owners,
and their respective successors, and assigns and any other person or entity claimed to be jointly or severally liable with the
Company or any of the aforementioned persons or entities (the “Released Parties”) from any and all manner of actions
and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, charges, claims, and demands
whatsoever (“Losses”) which the Executive and his heirs, executors, administrators, and assigns have, had, or may hereafter
have, against the Released Parties or any of them arising out of or by reason of any cause, matter, or thing whatsoever from the
beginning of the world to the date hereof, relating to the Executive’s employment by the Company and the cessation thereof,
and any and all matters arising under any federal, state, or local statute, rule, or regulation, or principle of contract law or
common law relating to the Executive’s employment by the Company and the cessation thereof, including but not limited to,
the Family and Medical Leave Act of 1993, as amended, 29 U.S.C. §§ 2601 et seq., Title VII of the Civil Rights Act of
1964, as amended, 42 U.S.C. §§ 2000 et seq., the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.
§§ 621 et seq. (the “ADEA”), the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§
12101 et seq., the Worker Adjustment and Retraining Notification Act of 1988, as amended, 29 U.S.C. §§2101 et seq., the
Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq., the New York State and New York
City Human Rights Laws, the New York Labor Laws, and any other equivalent or similar federal, Oregon state, or local statute; provided,
however, that the Executive does not release or discharge the Released Parties from (i) any rights to any payments, benefits
or reimbursements due to the Executive under the Agreement; or (ii) any rights to any vested benefits due to the Executive
under any employee benefit plans sponsored or maintained by the Company.  It is understood that nothing in this general release
is to be construed as an admission on behalf of the Released Parties of any wrongdoing with respect to the Executive, any such
wrongdoing being expressly denied.

 

The Executive represents
and warrants that he fully understands the terms of this General Release, that he has been encouraged to seek, and has sought,
the benefit of advice of legal counsel, and that he knowingly and voluntarily, of his own free will, without any duress, being
fully informed, and after due deliberation, accepts its terms and signs below as his own free act. Except as otherwise provided
herein, the Executive understands that as a result of executing this General Release, he will not have the right to assert that
the Company or any other of the Released Parties unlawfully terminated his employment or violated any of his rights in connection
with his employment or otherwise.

 

    	 

    	 

    

 

The Executive further
represents and warrants that he has not filed, and will not initiate, or cause to be initiated on his behalf any complaint, charge,
claim, or proceeding against any of the Released Parties before any federal, state, or local agency, court, or other body relating
to any claims barred or released in this General Release thereof, and will not voluntarily participate in such a proceeding. 
However, nothing in this General Release shall preclude or prevent the Executive from filing a claim, which challenges the validity
of this General Release solely with respect to the Executive’s waiver of any Losses arising under the ADEA. The Executive
shall not accept any relief obtained on his behalf by any government agency, private party, class, or otherwise with respect to
any claims covered by this General Release.

 

The Executive may take
twenty-one (21) days to consider whether to execute this General Release.  Upon the Executive’s execution of this general
release, the Executive will have seven (7) days after such execution in which he may revoke such execution. In the event of
revocation, the Executive must present written notice of such revocation to the office of the Company.  If seven (7) days
pass without receipt of such notice of revocation, this General Release shall become binding and effective on the eighth (8th)
day after the execution hereof (the “Effective Date”).

 

INTENDING TO BE LEGALLY BOUND, I hereby
set my hand below:

 

	 	/s/ Stephen M. Bachelder
	 	Stephen M. Bachelder
	 	 
	 	 
	 	Dated:	3/1/14EXHIBIT 10.12

Employment Agreement

 

THIS EMPLOYMENT AGREEMENT, dated as of this
25th day of April, 2014 (“Effective Date”), by and between MainStreet BankShares, Inc., a Virginia corporation (the
“Company”), and Brenda H. Smith (the “Executive”).

 

WHEREAS, the Company considers the availability
of the Executive’s services to be important to the management and conduct of the Company’s business and desires to
secure the continued availability of the Executive’s services for itself and its wholly owned subsidiary, Franklin Community
Bank (“Bank”); and

 

WHEREAS, the Executive is willing to make
his services available to the Company and Bank on the terms and subject to the conditions set forth herein.

 

In consideration of the mutual covenants
and agreements set forth herein, the parties agree as follows:

 

Part I: General Employment Terms

 

1.           Employment and Duties. The
Executive shall be employed by the Company as its President and Chief Executive Officer. The Executive accepts such employment
and agrees to perform the managerial duties and responsibilities of President and Chief Executive Officer. The Executive agrees
to devote her time and attention on a full-time basis to the discharge of such duties and responsibilities of an executive nature
as may be assigned her by the Board of Directors of the Company. The Executive may accept any elective or appointed positions or
offices with any duly recognized associations or organizations whose activities or purposes are closely related to the banking
business or service and which would generate good will for the Company and Bank.

 

2.           Term. The term of this Agreement
shall commence at the Effective Date and shall continue for two (2) years (“Initial Term”) unless terminated or extended
as hereinafter provided (If and as extended, the “Term”). This Agreement and the Initial Term shall be extended for
successive two-year periods following the initial term (as such a “Renewal Term”) unless either party notifies the
other in writing at least ninety (90) days prior to the end of the Initial Term, or the end of any additional Renewal Term, that
the Agreement shall not be extended beyond its current Term; provided, however, the Company may not notify Executive that it will
not extend the Agreement while an event which would if consummated constitute a Change in Control is under consideration or pending.

 

3.           Compensation. For the Initial
Term of this Agreement, the Company shall pay the Executive an annual base salary not less than $182,000. Such base salary shall
be paid to the Executive in accordance with established payroll practices of the Company. For each Renewal Term if any, the Company
agrees to review the Executive’s base salary and to consider implementing changes to such base salary as it may deem appropriate;
however, such base salary shall not be less than the base salary for the Initial Term.

 

    	 

    	 

    

 

4.           Benefits.

 

(a)           During the Term, the Executive shall
be eligible to participate in any plans, programs or forms of compensation or benefits that the Company or the Bank provides employees
generally or to executive employees as a class, on a basis not less favorable than that provided to such class of employees, including,
without limitation, group medical, disability and life insurance, vacation and sick leave, and a retirement plan; provided however,
a reasonable transition period following any change in control, merger, statutory share exchange, consolidation, acquisition or
transaction involving the Company or any of its subsidiaries shall be permitted in order to make appropriate adjustments in compliance
with this Section 4(a).

 

(b)           The Executive shall be entitled to
four weeks vacation annually without loss of pay.

 

(c)           During the Term, the Company shall
provide the Executive with an appropriate automobile or automobile allowance as determined by the Board of Directors of the Company.

 

5.           Reimbursement of Expenses.
The Company shall reimburse the Executive promptly, upon presentation of adequate substantiation, including receipts, for the reasonable
travel, entertainment, lodging and other business expenses incurred by the Executive, including, without limitation, those expenses
incurred by the Executive and her spouse in attending trade and professional association conventions, meetings and other related
functions. However, Company reserves the right to review these expenses periodically and determine, in its sole discretion, whether
future reimbursement of such expenses to the Executive will continue without prior Board approval of the expenses.

 

6.           Termination of Employment.

 

(a)           Death or Incapacity. The Executive’s
employment under this Agreement and the Term shall terminate automatically upon the Executive’s death. In the event of termination
due to the death of the Executive, her survivors, designees or estate shall continue to receive, in addition to all other benefits
accruing upon death, full compensation hereunder for a period of six (6) months following the month in which her death occurred.
If the Company determines that the Incapacity, as hereinafter defined, of the Executive has occurred, it may terminate the executive’s
employment, the Term and this Agreement upon sixty (60) days’ written notice provided that within sixty (60) days after receipt
of such notice, the Executive shall not have returned to full-time performance of her assigned duties. “Incapacity”
shall mean the failure of the Executive to perform her assigned duties with the Company on a full-time basis as a result of mental
or physical illness or injury as determined by a physician selected by the Company for the greater of ninety (90) consecutive calendar
days or the longest waiting period under any long term disability insurance contract or program provided to her as an employee.

 

(b)           Termination by Company With or Without
Cause. The Company may terminate the Executive’s employment under this Agreement and the Term, with or without Cause.
For purposes of this Agreement, “Cause” shall mean:

 

(1)           The continued failure by Executive
to perform her duties hereunder (other than any such failure resulting from her incapacity due to physical or mental illness) or
otherwise to comply with her obligations hereunder after a written demand for performance with respect thereto is delivered to
the Executive by the Board (excluding Executive, if a member of the Board at such time, in each case), and which failure has not
been cured as hereinafter provided, which demand specifically identifies the manner in which the Board believes that Executive
has not performed her duties or is otherwise in breach of her obligations hereunder; or

 

    	 

    	 

    

 

(2)           the engaging by the Executive in
illegal conduct or any conduct which is demonstrably and materially injurious to the Company in the sole discretion and judgment
of the Board; or

 

(3)           the issuance of a removal order or
similar order by a governmental regulatory agency with appropriate jurisdiction prohibiting Executive from participating in the
affairs of the Company. Any act or failure to act by Executive based upon authority given pursuant to a resolution duly adopted
by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done,
by the Executive in good faith and in the best interests of the Company, as the case may be, and shall not be a basis for termination
for Cause. It is also expressly understood that the Executive’s attention to matters not directly related to the business
of the Company shall not provide a basis for termination for Cause so long as the Board has approved Executive’s engagement
in such activities. Upon the issuance of a written demand for performance under Section 6(b)(1), Executive shall have thirty (30)
days in which to correct the deficiency and if the Executive corrects such deficiency within this period, the deficiency shall
not constitute Cause. If the Executive does not correct the deficiency, in the sole discretion and judgment of the Board (without
Executive if a member of the Board at such time, in either case), within the thirty (30) day period, such deficiency shall constitute
the Cause for purposes of the termination of this Agreement. The conditions constituting the Cause under Section 6(b)(2) and (3)
above shall not require prior notice, a written demand for performance or an opportunity to cure.

 

(c)           Termination by Executive for Good
Reason. The Executive may terminate her employment and the Term for Good Reason. For purposes of this Agreement, “Good
Reason” shall mean:

 

(i)           the continued assignment to the Executive
of duties inconsistent with the Executive’s position, authority, duties or responsibilities as contemplated by Section 1
hereof or, in the event of a Change in Control (as hereinafter defined), Section 10(a);

 

(ii)           any action taken by the Company
which results in a substantial reduction in the status of the Executive as President and Chief Executive Officer of the Company
(but not with respect to any changes in Executive’s status at the Bank prior to a Change In Control only), including a diminution
in her position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and/or inadvertent
action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

(iii)           the relocation of the Executive
to any other primary place of employment which might require her to move her residence which, for this purpose, includes any reassignment
to a place of employment located more than 50 miles from the Executive’s initially assigned place of employment, without
the Executive’s express written consent to such relocation; provided, however, this subsection (iii) shall not apply in connection
with the relocation of the Executive if the Company decides to relocate its headquarters; or

 

    	 

    	 

    

 

(iv)           any failure by the Company to comply
with the provisions of Sections 3 and 4 or Section 10(b) hereof or to honor any other term or provision of this Agreement, other
than an isolated, insubstantial or inadvertent failure not occurring in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by the Executive.

 

(d)           Incapacity. If payments under a long
term disability policy or plan shall cease due to discontinuance of the plan for failure for any reason of the provider of such
policy to continue to make payments, the Company will provide the benefits to the Executive in accordance with terms of such policy
or plan as if it were still in full force and effect. Notwithstanding the above, in no event shall the Company’s obligation
under this subparagraph be for more than two years.

 

7.           Obligations of the Company Upon
Termination.

 

(a)           Without Cause; Good Reason.
Except as set forth in Sections 7(b) and 7(c) below, if, during the Term, the Company shall terminate the Executive’s employment
and the Term without Cause or the Executive shall terminate employment and the Term for Good Reason, the Company will pay to the
Executive in a lump sum within thirty (30) days after the termination of employment the sum of the Executive’s annual base
salary established under Section 3 through the date of termination to the extent not theretofore paid and the balance of the Executive’s
annual base salary for a period equal to the remainder of the terminated Term plus twelve (12) months. In addition, the Company
shall maintain in full force and effect for the Executive’s continued, benefit for the same period, all health and insurance
plans and provided that the Executive’s continued participation is possible under the general terms and provisions of such
plans and programs. If the Company reasonably determines that maintaining such health and insurance plans in full force and effect
for the benefit of the Executive for such period is not feasible, the Company shall pay the Executive a lump sum equal to the estimated
cost of maintaining such plans for the Executive for such period. Failure to extend the Term of this Agreement as permitted by
Section 2 shall not be deemed a termination of employment within the meaning of this Section.

 

(b)           Non-Competition. Notwithstanding
the foregoing, all such payments and benefits under Section 7(a) otherwise continuing for periods after the Executive’s termination
of employment shall cease to be paid, and the Company shall have no further obligation due with respect thereto, in the event the
Executive engages in “Competition” or makes any “Unauthorized Disclosure of Confidential Information.”
In addition, in exchange for the payments on termination as provided herein, other provisions of this Agreement and other valuable
consideration hereby acknowledged, the Executive agrees that she will not engage in competition for a period of twelve (12) months
after the Executive’s employment with the Company ceases for any reason, including the expiration or nonrenewal of the Term
(but not including termination by Executive for Good Reason) of this Agreement. For purposes hereof:

 

(i)           “Competition” means the
Executive’s engaging without the written consent of the Board or a person authorized thereby, in an activity as an officer
(or comparable position as agent or consultant) or a director within twenty-five (25) miles of the Bank’s headquarters if
it involves:

 

(A)           having direct contact with customers
of a bank or of another financial institution or of any other business activity in which the Company or Bank is actively engaged
at the time the Executive’s employment ceases, or

 

    	 

    	 

    

 

(B)           directly soliciting or contacting any
of the customers or clients of the Company or Bank for the purpose of offering products or services provided by the Company or
Bank.

 

(ii)           For purposes of this Agreement,
“customers” or “clients” of the Company or Bank means individuals or entities to whom the Company or Bank
has provided banking, lending, or other similar financial services at any time from the Effective Date through the date the Executive’s
employment with the Company ceases.

 

(c)           Death or Incapacity. If the
Executive’s employment is terminated during the Term by reason of death or incapacity in accordance with Section 6(a) hereof,
this Agreement and the Term shall terminate without further obligation to the Executive or his legal representatives under this
Agreement except as otherwise specified in Section 6(a).

 

(d)           Cause; Other Than for Good Reason.
If the Executive’s employment shall be terminated during the Term for Cause or for other than Good Reason, this Agreement
shall terminate without any further obligation of the Company to the Executive other than to pay to the Executive her annual base
salary established under Section 3 through the date of termination. The Executive will still be required to comply with the non-competition
and confidentiality covenants set forth in Section 7(b).

 

(e)           Remedies. The Executive acknowledges
that the restrictions set forth in paragraph 7(b) of this Agreement are just, reasonable, and necessary to protect the legitimate
business interests of the Company. The Executive further acknowledges that if she breaches or threatens to breach any provision
of paragraph 7(b), the Company’s remedies at law will be inadequate, and the Company will be irreparably harmed. Accordingly,
the Company shall be entitled to an injunction, both preliminary and permanent, restraining the Executive from such breach or threatened
breach, such injunctive relief not to preclude the Company from pursuing all available legal and equitable remedies. In addition
to all other available remedies, if the Executive violates the provisions of paragraph 7(b), the Executive shall pay all costs
and fees, including attorneys’ fees, incurred by the Company in enforcing the provisions of that paragraph. If, on the other
hand, it is finally determined by a court of competent jurisdiction that a breach or threatened breach did not occur under paragraph
7(b) of this Agreement, the Company shall reimburse the Executive for reasonable legal fees incurred to defend that claim.

 

8.           Confidentiality. The Executive
recognizes that as an employee of the Company, she will have access to and may participate in the origination of non-public proprietary
and confidential information and that she owes a fiduciary duty to the Company. Confidential information may include, but is not
limited to, trade secrets, customer lists and information, internal corporate planning, methods of marketing and operation, and
other data or information of or concerning the Company or its customers that is not generally known to the public or in the banking
industry. The Executive agrees that she will never use or disclose to any third party any confidential information, either directly
or indirectly, except as may be authorized in writing specifically by the Company.

 

    	 

    	 

    

 

PART II. Change in Control

 

9.           Employment After a Change in Control.
If a Change in Control of the Company occurs during the Term, and the Executive is employed by the Company on the date the Change
in Control occurs (the “Change in Control Date”), the Company (which after a Change in Control Event shall include
any Successor as hereinafter defined) will continue to employ the Executive 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 “Change
in Control Employment Period”). Notwithstanding the immediately preceding sentence, if Executive’s employment was terminated
by the Company without Cause or by the Executive for Good Reason during the Term but within 120 days prior to the Change in Control
Date (a “Pre-Change in Control Termination”), the “Change in Control Employment Period “ shall be deemed
the period beginning at the Change in Control Date and ending on the third anniversary of such date for purposes of Section 12
only. 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. Nothwithstanding any other term or provision of this Agreement, in the event of a Change in Control of the
Company, Sections 9 through 15 in this Part II shall become effective and govern the terms and conditions of the Executive’s
employment. The term “Successor” shall mean any person or entity (corporate or otherwise) into which, in connection
with a Change in Control Event, MainStreet or Bank is merged or which is merged into MainStreet or Bank or consolidated with MainStreet
or Bank or to which all or substantially all of MainStreet or Bank’s assets shall be transferred in any manner or which by
law or agreement assumes, take assignment of or becomes obligated for MainStreet’s or Bank’s obligations. “Successor”
shall include any Successor of a preceding Successor.

 

10.           Terms of Employment.

 

(a)           Position and Duties. During
the Change in Control Employment Period if Executive is employed by the Company on the Change in Control Date, (i) the Executive’s
position, authority, duties and responsibilities will be at least commensurate in all material respects with 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 Executive’s services will be performed at the location where the Executive was employed immediately preceding the Change
in Control Date or any office that is the headquarters of the Company and is less than twenty-five (25) miles from such location;
it being understood and agreed that this subsection (ii) shall superceded the provisions of Section 6(c)(iii) dealing with the
relocation of the Executive following a Change in Control.

 

(b)           Compensation and Benefits. If
Executive is employed by the Company on the Change in Control Date:

 

(i)           Base Salary. During the Change
in Control Employment Period, the Executive will receive an annual base salary (the “Annual Base Salary”) at least
equal to the base salary paid or payable to the Executive by the Company and its affiliated companies for the twelve-month period
immediately preceding the Change of Control Date. During the Change in Control 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 Company and its affiliated
companies. Any increase in the Annual Base Salary will not serve to limit or reduce any other obligation to the Executive under
this Agreement. The Annual Base Salary will not be reduced after any such increase, and the term 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 Company.

 

    	 

    	 

    

 

(ii)           Annual Bonus. During the
Change in Control Employment Period, the Executive will be entitled to participate in an annual incentive plan generally applicable
to other peer executives of the Company and its affiliated companies.

 

(iii)           Incentive, Savings and Retirement
Plans. During the Change in Control Employment Period, the Executive will be entitled to participate in all incentive (including
any stock incentive), savings and retirement, insurance plans, policies and programs applicable generally to other peer executives
of the Company and its affiliated companies, but in no event will such plans, policies and programs provide the Executive with
incentive opportunities (including savings opportunities and retirement benefit opportunities) in each case, less favorable, in
the aggregate, than those provided by the Company and its affiliated companies for the Executive 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 Change in Control Employment Period, the Executive and/or the Executive’s family, as the case may be, will be eligible
for participation in and will receive all benefits under welfare benefit plans, policies and programs provided by the Company and
its affiliated companies to the extent applicable generally to other peer executives of the Company and its affiliated companies,
but in no event will such plans, policies and programs provide the Executive 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.

 

(v)           Fringe Benefits. During the
Change in Control Employment Period, the Executive will be entitled to fringe benefits in accordance with the comparable plans,
policies and programs of the Company and its affiliated companies in effect for the Executive at any time during the six months
immediately preceding the Change in Control Date or, if more favorable to the Executive, as in effect generally from time to time
after the Change in Control Date with respect to other peer executives of the Company and its affiliated companies.

 

(vi)           Vacation. During the Change
in Control Employment Period, the Executive will be entitled to paid vacation in accordance with the comparable plans, policies
and programs of the Company and its affiliated companies in effect for the Executive at any time during the six months immediately
preceding the Change in Control Date or, if more favorable to the Executive, as in effect generally from time to time after the
Change in Control Date with respect to other peer executives of the Company and its affiliated companies.

 

11.           Termination of Employment Following
Change in Control.

 

(a)           Death or Incapacity. The Executive’s
employment will terminate automatically upon the Executive’s death or Incapacity during the Change in Control Employment
Period.

 

    	 

    	 

    

 

(b)           Cause. The Company may terminate
the Executive’s employment during the Change in Control Employment Period for Cause (as defined in Section 6(b)).

 

(c)           Good Reason. The Executive’s
employment may be terminated during the Change in Control Employment Period by the Executive for Good Reason (as defined in Section
6(c)). Any good faith determination of Good Reason made by the Executive during the Change in Control Employment Period shall be
conclusive.

 

(d)           Notice of Termination. Any termination
during the Change in Control Employment Period by the Company regardless of the basis or by the Executive for Good Reason 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 Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein after the Change in Control
Date, (ii) if the Executive’s employment is terminated after the Change in Control Date by the Company other than for Cause
or Incapacity, 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), (iii) if a Pre-Change in Control Termination has occurred, the day following the Change
in Control Date, and(iv) if the Executive’s employment is terminated for Incapacity after the Change in Control Date, 60
days after Notice of Termination is given, provided that the Executive shall not have returned to the full-time performance of
her duties during such 60-day period.

 

12.           Compensation Upon Termination.

 

(a)           Termination Without Cause or for
Good Reason. The Executive will be entitled to the following benefits (“Change in Control Benefits”) if, during
the Change in Control Employment Period, the Company terminates her employment without Cause or the Executive terminates her employment
with the Company or any affiliated company for Good Reason or if a Pre-Change in Control Termination has occurred:

 

(i)           Accrued Obligations. The Accrued
Obligations are the sum of: (1) the Executive’s unpaid Annual Base Salary through the Date of Termination at the rate in
effect just prior to the time a Notice of Termination is given or if a Pre-Change in Control Termination has occurred any unpaid
but earned compensation during the Term pursuant to Section 3; (2) the amount, if any, of any incentive or bonus compensation earned
prior to the Notice of Termination or if a Pre-Change in Control Termination has occurred prior to the date thereof which has not
yet been paid; (3) the product of any bonus 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 (or in the case of
a Pre-Change in Control Termination through the date of the Pre-Change in Control 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 Executive (but not including amounts that
previously had been deferred at the Executive’s request, which amounts will be paid in accordance with the Executive’s
existing directions). The Accrued Obligations will be paid to the Executive in a lump sum cash payment within ten days after the
Date of Termination.

 

    	 

    	 

    

 

(ii)           Salary Continuance Benefit.
The Salary Continuance Benefit is an amount equal to 2.99 times the Executive’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
bonus paid or payable for the two most recently completed years (or in the case of a Pre-Change in Control Termination, the annual
base salary in effect under Section 3 at the Pre-Change in Control Termination date) and any amount contributed by the Executive
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 minus, in the case of a Pre-Change in Control Termination, the amount paid to the Executive
for the remainder of the terminated Term plus the additional twelve (12) months as provided in Section 7(a). The Salary Continuance
Benefit will be paid to the Executive in a lump sum cash payment not later than the 45th day following the Date of Termination;

 

(iii)           Welfare Continuance Benefit.
For 36 months following the Date of Termination, the Executive and his dependents will 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 Executive of her dependents were participating immediately prior to the Date of Termination (the “Welfare
Continuance Benefit”). The Company will pay all or a portion of the cost of the Welfare Continuance Benefit for the Executive
and her dependents under the Welfare Plans on the same basis as applicable, from time to time, to active employees covered under
the Welfare Plans and the Executive 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 Executive or the Company due to such participation, the Company will provide substantially identical
benefits directly or through an insurance arrangement. The Welfare Continuance Benefit as to any Welfare Plan will cease if and
when the Executive has obtained coverage under one or more welfare benefit plans of a subsequent employer that provides for equal
or greater benefits to the Executive and his dependents with respect to the specific type of benefit. The Executive or her dependents
will become eligible for COBRA continuation coverage as of the date the Welfare Continuance Benefit ceases for all health and dental
benefits.

 

(b)           Death. If the Executive dies
during the Change in Control Employment Period and has been entitled to Change in Control Benefits hereunder, this Agreement will
terminate without any further obligation on the part of the Company under this Agreement, other than for (i) payment of the Accrued
Obligations and three months of the Executive’s Base Salary (or in the case of a Pre-Change in Control Termination three
months of the Executive’s base salary in effect on the date thereof) (which shall be paid to the Executive’s beneficiary
designated in writing or her estate, as applicable, in a lump sum cash payment within 30 days of the date of death); (ii) the timely
payment of provision of the Welfare Continuance Benefit to the Executive’s spouse and other dependents for 36 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 Company and its affiliated companies.

 

(c)           Incapacity. If the Executive’s
employment is terminated because of the Executive’s Incapacity during the Change in Control Employment Period and while the
Executive has been entitled to Change in Control Benefits, this Agreement will terminate without any further obligation on the
part of the Company under this Agreement, other than for (i) payment of the Accrued Obligations and three months of the Executive's
Base Salary (or in the case of a Pre-Change in Control Termination three months of the Executive’s base salary in effect
on the date thereof) (which shall be paid to the Executive 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 36 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 Company
and its affiliated companies.

 

    	 

    	 

    

 

(d)           Cause; Other than for Good Reason.
If the Executive's employment is terminated for Cause during the Change in Control Employment Period or the Executive is receiving
Change in Control Benefits and breaches any obligation under this Agreement, the Executive shall be entitled to no further Change
in Control Benefits other than the payment to the Executive of the Annual Base Salary through the Date of Termination, plus the
amount of any compensation previously deferred by the Executive. If the Executive terminates employment during the Change in Control
Employment Period, excluding a termination either for Good Reason, this Agreement will terminate without further obligation to
the Executive 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 Executive may be entitled pursuant to the terms of any plan, program or arrangement of the
Company and its affiliated companies.

 

13.           Fees and Expenses; Mitigation;
Noncompetition.

 

(a)           The Company will pay or reimburse the
Executive for all costs and expenses, including without limitation court costs and reasonable attorneys' fees, incurred by the
Executive (i) in contesting or disputing any termination of the Executive's employment or (ii) in seeking to obtain or enforce
any right or benefit provided by this Agreement, in each case provided the Executive's claim is substantially upheld by a court
of competent jurisdiction.

 

(b)           The Executive shall not be required
to mitigate the amount of any payment the Company becomes obligated to make to the Executive in connection with this 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 12 shall not be reduced, offset or subject to recovery by the Company by reason
of any compensation earned by the Executive as the result of employment by another employer after the Date of Termination, or otherwise.

 

(c)           The Executive will not be required
to comply with the noncompetition covenant in Section 7(b) if her employment is terminated during the Change in Control Employment
Period without Cause or she terminates for Good Reason.

 

14.           Continuance of Welfare Benefits
Upon Death. If the Executive dies while receiving a Welfare Continuation Benefit, the Executive’s spouse and other dependents
will continue to be covered under all applicable Welfare Plans during the remainder of the 36-month coverage period. The Executive’s
spouse and other dependents will become eligible for COBRA continuation coverage for health and dental benefits at the end of such
36-month period.

 

    	 

    	 

    

 

15.           Change in Control Defined.
For purposes of this Agreement, a “Change in Control” shall mean:

 

(a)           a change in the ownership of the Company,
a change in the effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company,
consistent with and interpreted in accordance with Internal Revenue Code Section 409A and regulations issued thereunder, and specifically
defined as follows:

 

In order to constitute a Change in Control
as to the Executive, the Change in Control shall relate to:

 

(1)           the corporation for whom the Executive
is performing services at the time of the Change in Control; or

 

(2)           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 Executive 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

 

(3)           a corporation that is a majority
shareholder of a corporation identified in either subparagraph (1) or (2), 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
(1) or (2) above.

 

(i)           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).

 

(ii)           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:

 

(a)           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

 

    	 

    	 

    

 

(b)           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.

 

(iii)           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:

 

(a)           a shareholder of the corporation
(immediately before the asset transfer) in exchange for or with respect to its stock;

 

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

 

(c)           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

 

(d)           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 when
there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer.

 

16.           Documents. All documents,
record, tapes and other media of any kind or description relating to the business of the Company or any of its affiliates (the
"Documents"), whether or not prepared by the Executive, shall be the sole and exclusive property of the Company. The
Documents (and any copies) shall be returned to the Company upon the Executive's termination of employment for any reason or at
such earlier time or times as the Board of Directors or its designee may specify.

 

17.           Severability. If any provision
of this Agreement, or part thereof, is determined to be unenforceable for any reason whatsoever, it shall be severable from the
remainder of this Agreement and shall not invalidate or affect the other provisions of this Agreement, which shall remain in full
force and effect arid shall be enforceable according to their terms. No covenant shall be dependent upon any other covenant or
provision herein, each of which stands independently.

 

    	 

    	 

    

 

18.           Governing Law. This agreement
shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia.

 

19.           Notices. All written notices
required by this Agreement shall be deemed given when delivered personally or sent by registered or certified mail, return receipt
requested, to the parties at their addresses set forth on the signature page of this Agreement. Each party may, from time to time,
designate a different address to which notices should be sent.

 

20.           Amendment. This Agreement
may not be varied, altered, modified or in any way amended except by an instrument in writing executed by the parties hereto or
their legal representatives.

 

21.           Binding Effect. This Agreement
shall be binding upon the Executive and on the Company, its successors and assigns effective on the date first above written subject
to the approval by the board of directors of the Company. The Company will require any successor to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place.

 

22.           No Construction Against Any Party.
This Agreement is the product of informed negotiations between the Executive and the Company. If any part of this Agreement is
deemed to he unclear or ambiguous, it shall be construed as if it were drafted jointly by all parties. The Executive and the Company
agree that neither party was in a superior bargaining position regarding the substantive terms of this Agreement.

 

23.           Entire Agreement. This Agreement
constitutes the entire agreement of the parties with respect to the matters addressed herein and it supersedes all other prior
agreements and understandings, both written and oral, express or implied, with respect to the subject matter of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first written herein.

 

	 	MAINSTREET BANKSHARES, INC.	 
	 	 	 	 
	 	By:	/s/ Joel R. Shepherd 	 
	 	Name:	Joel R. Shepherd	 
	 	Title:	Chairman of the Board of Directors 	 
	 	 	 	 
	 	/s/ Brenda H. Smith	 
	 	Brenda H. Smith

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}]]