Document:

Exhibit 4.2

 

SUBORDINATED NOTE

 

JOHN MARSHALL BANCORP, INC.

 

5.75%
FIXED TO FLOATING RATE Subordinated Note due July 15, 2027

 

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED
NOTE IS SUBORDINATED AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN SECTION 3 OF THIS SUBORDINATED NOTE)
OF JOHN MARSHALL BANCORP, INC., (THE “COMPANY”), INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL CREDITORS
AND SECURED CREDITORS, DEPOSIT OBLIGATIONS OF THE COMPANY’S DEPOSITARY INSTITUTION SUBSIDIARIES, AND IS UNSECURED. IT IS INELIGIBLE
AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ANY OF ITS SUBSIDIARIES. IN THE EVENT OF LIQUIDATION ALL HOLDERS OF SENIOR
INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT
SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS
OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A
PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT
OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY
OR OTHERWISE, SHALL BE MADE (i) with respect to any obligation that by its terms expressly
is junior to in the right of payment to the Subordinated Notes, (ii) ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES
OR AFFILIATES (OTHER THAN ANY INSURED DEPOSITARY INSTITUTION SUBSIDIARY OR AFFILIATE), or (iii) on account OF ANY SHARES OF
CAPITAL STOCK OF THE COMPANY.

 

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED
NOTE IS NOT A DEPOSIT, IS NOT AN OBLIGATION OF AN INSURED DEPOSITARY INSTITUTION AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION (THE “FDIC”) OR ANY OTHER GOVERNMENT AGENCY OR FUND.

 

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE
TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $1,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED
NOTE IN A DENOMINATION OF LESS THAN $1,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS
ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.

 

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THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN
COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES
LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

CERTAIN ERISA CONSIDERATIONS:

 

THE HOLDER OF THIS SUBORDINATED NOTE, OR ANY INTEREST
HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT
ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”),
OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO
PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN, UNLESS
SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SUBORDINATED NOTE, OR ANY INTEREST
HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING. ANY
PURCHASER OR HOLDER OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF
THAT EITHER: (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE,
A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLANS, OR ANY OTHER PERSON OR ENTITY USING THE “PLAN
ASSETS” OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLANS TO FINANCE SUCH PURCHASE OR (ii) SUCH PURCHASE OR HOLDING WILL NOT RESULT
IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE
UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING
THE ACQUISITION OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH SUCH FIDUCIARY’S LEGAL COUNSEL PRIOR TO ACQUIRING
THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN.

 

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	No. 2027-[ ]	CUSIP (Accredited Investors) 47805L AB7 / US47805LAB71
	 	CUSIP (QIBs) 47805L AA9 / US47805LAA98

 

JOHN MARSHALL BANCORP, INC.

 

5.75%
FIXED TO FLOATING RATE Subordinated Note due July 15, 2027

 

1.            Subordinated
Notes. This Subordinated Note is one of an issue of notes of John Marshall Bancorp, Inc., a Virginia corporation (the “Company”),
designated as the “5.75% Fixed to Floating Rate Subordinated Notes due July 15, 2027” (the “Subordinated Notes”).

 

2.            Payment.
The Company, for value received, promises to pay to _________ or its registered assigns, the principal sum of [ ] (U.S.) ($ ), plus accrued
but unpaid interest on July 15, 2027 (“Stated Maturity”) and to pay interest thereon (i) from and including
the original issue date of the Subordinated Notes to but excluding July 15, 2022 or the earlier redemption date contemplated by Section 4
of this Subordinated Note, at the rate of 5.75% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months
and payable semi-annually in arrears on January 15and July15 of each year (each, a
 “Fixed Interest Payment Date”), beginning January 15, 2018, and (ii) from and including July 15, 2022
to but excluding the Stated Maturity or the earlier redemption date contemplated by Section 4 of this Subordinated Note, at
the rate per annum, reset quarterly, equal to LIBOR determined on the determination date of the applicable interest period plus 388.0
basis points, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears on January 15,
April 15, July 15 and October 15 of each year (each, a “Floating Interest Payment Date”). An “Interest
Payment Date” is either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable. “LIBOR” means
the 3-month USD LIBOR, which will be the offered rate for 3-month deposits in U.S. dollars, as that rate appears on the Reuters Screen
LIBOR01 Page (or any successor page thereto) as of 11:00 a.m., London time, as observed two London banking days prior to the
first day of the applicable floating rate interest period. If 3-month USD LIBOR is not displayed as of such time with respect to any applicable
floating rate interest period, then the Company will request the principal London offices of at least two banks to provide a quotation
of their rates for deposits in U.S. dollars for a period comparable to the applicable floating rate interest period and the 3-month USD
LIBOR for such floating rate interest period shall be the arithmetic mean of such quotations. A London banking day is a day on which commercial
banks and foreign currency markets settle payments and are open for general business in London. Notwithstanding the foregoing, in the
event that 3-month USD LIBOR as determined in accordance with this Section 2 is less than zero, the 3-month USD LIBOR for
such interest period shall be deemed to be zero.

 

Any payment of principal of or interest on this
Subordinated Note that would otherwise become due and payable on a day which is not a Business Day shall become due and payable on the
next succeeding Business Day, with the same force and effect as if made on the date for payment of such principal or interest, and no
interest will accrue in respect of such payment for the period after such day. The term “Business Day” means any day
that is not a Saturday or Sunday and that is not a day on which banks in the Commonwealth of Virginia are generally authorized or required
by law or executive order to be closed.

 

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3.            Subordination.

 

(a)            The
indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall
be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Company and creditors,
including depositors, of John Marshall Bank (together with any insured depositary institution subsidiary of the Company hereinafter acquired,
the “Bank”), whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, “Senior
Indebtedness”), which shall consist of principal of (and premium, if any) and interest, if any, on: (i) all indebtedness
and obligations of, or guaranteed or assumed by, the Company for money borrowed, whether or not evidenced by bonds, debentures, securities,
notes or other similar instruments, and including, but not limited to, deposits and other liabilities of the Bank, and all obligations
to the Company’s general creditors and secured creditors; (ii) any deferred obligations of the Company for the payment of the
purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or
otherwise, of the Company in respect of any letters of credit, bankers’ acceptances, security purchase facilities and similar direct
credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest
rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts,
commodity contracts and other similar arrangements or derivative products; (vi) all obligations that are similar to those in clauses
(i) through (v) of other persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise
arising from an off-balance sheet guarantee; and (vii) all obligations of the types referred to in clauses (i) through (vi) of
other persons secured by a lien on any property or asset of the Company, and (viii) in the case of (i) through (vii) above,
all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; except “Senior Indebtedness”
does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in
right of payment with, the Subordinated Notes, or (C) any indebtedness between the Company and any of its subsidiaries or Affiliates
(other than any insured depositary institution subsidiary or Affiliate). This Subordinated Note is not secured by any assets of the Company
or any subsidiary or Affiliate. The term “Affiliate(s)” means, with respect to any Person, such Person’s immediate
family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled
by, or under common control with said Person and their respective Affiliates.

 

(b)            In
the event of liquidation of the Company, holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such
interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note.
Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of
or relating to the Company, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before
any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note. In the
event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders
of the Subordinated Notes from time to time (each a “Noteholder” and, collectively, the “Noteholders”),
together with the holders of any obligations of the Company ranking on a parity with the Subordinated Notes, shall be entitled to be paid
from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution,
whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior to
in the right of payment to the Subordinated Notes, (ii) any indebtedness between the Company and any of its subsidiaries or Affiliates
(other than any insured depositary institution subsidiary or Affiliate) or (iii) on account of any capital stock.

 

(c)            If
there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an
event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such
payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company
with respect to the Subordinated Notes. The provisions of this paragraph shall not apply to any payment with respect to which Section 3(b) would
be applicable.

 

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(d)            Nothing
herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated
Notes or which may be junior or senior in rank to the Subordinated Notes. Each Noteholder, by its acceptance hereof, agrees to and shall
be bound by the provisions of this Section 3. Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the
foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness,
whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue
to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have
relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

 

4.            Redemption.

 

(a)            Redemption
Prior to Fifth Anniversary. This Subordinated Note shall not be redeemable by the Company in whole or in part prior to the fifth anniversary
of the date upon which this Subordinated Note was originally issued (the “Issue Date”), except in the event of: (i) a
Tier 2 Capital Event (as defined below); (ii) a Tax Event (as defined below); or (iii) an Investment Company Event (as defined
below). Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, the Company may redeem this Subordinated
Note in whole or in part at any time, upon giving not less than 10 calendar days’ notice to the holder of this Subordinated Note
at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption
date. “Tier 2 Capital Event” means the receipt by the Company of an opinion of counsel to the Company to the effect
that there is a material risk that this Subordinated Note no longer qualifies as “Tier 2” Capital (as defined by the Board
of Governors of the Federal Reserve System (the “Federal Reserve”)) (or its then equivalent) as a result of a change
in interpretation or application of law or regulation by any judicial, legislative or regulatory authority that becomes effective after
the date of issuance of this Subordinated Note. “Tax Event” means the receipt by the Company of an opinion of counsel
to the Company that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the
laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a
result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, there exists
a material risk that interest payable by the Company on the Subordinated Notes is not, or within 120 days after the receipt of such opinion
will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes. “Investment Company
Event” means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk
that the Company is or, within 120 days after the receipt of such opinion will be, required to register as an investment company pursuant
to the Investment Company Act of 1940, as amended.

 

(b)            Redemption
on or after Fifth Anniversary. On or after the fifth anniversary of the Issue Date, this Subordinated Note shall be redeemable at
the option of and by the Company, in whole or in part at any time and from time to time upon any Interest Payment Date, at an amount equal
to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date, but
in all cases in a principal amount with integral multiples of $1,000

 

(c)            Partial
Redemption. If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated
Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected
on a pro rata basis as to the Noteholders. For purposes of clarity, upon a partial redemption, a like percentage of the principal amount
of every Subordinated Note held by every Noteholder shall be redeemed.

 

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(d)            No
Redemption at Option of Noteholder. This Subordinated Note is not subject to redemption at the option of the holder of this Subordinated
Note.

 

(e)            Effectiveness
of Redemption. If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption
but has not yet been surrendered for cancellation, on and after the date fixed for redemption, interest shall cease to accrue on the portion
of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion
called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such
date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the
right of the holder hereof to receive the amount payable on such redemption, without interest.

 

(f)            Regulatory
Approvals. Any such redemption shall be subject to receipt of any and all required federal and state regulatory approvals, including,
but not limited to, the consent of the Federal Reserve. In the case of any redemption of this Subordinated Note pursuant to paragraphs
(b) and (c) of this Section 4, the Company will give the holder hereof notice of redemption, which notice shall
indicate the aggregate principal amount of Subordinated Notes to be redeemed, not less than 30 nor more than 60 calendar days prior to
the redemption date.

 

(g)            Purchase
and Resale of the Subordinated Notes. Subject to any required federal and state regulatory approvals and the provisions of this Subordinated
Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions
or otherwise. If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased
Subordinated Notes.

 

5.            Events
of Default; Acceleration; Compliance Certificate. Each of the following events shall constitute an “Event of Default”:

 

(a)            the
entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case
or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States or any
political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of 60 consecutive days;

 

(b)            the
commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in
effect of the United States or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for
relief in an involuntary case or proceeding under any such law;

 

(c)            the
Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors,
(iii) admits in writing its inability to pay its debts as they mature, or (iv) ceases to be a bank holding company or financial
holding company under the Bank Holding Company Act of 1956, as amended;

 

(d)            the
failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable,
and the continuation of such failure for a period of 30 days;

 

(e)            the
failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and
payable;

 

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(f)            the
liquidation of the Company (for avoidance of doubt, “liquidation” does not include any merger, consolidation, sale of equity
or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries); or

 

(g)            the
failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and
the continuation of such failure for a period of 60 days after the date on which notice specifying such failure, stating that such notice
is a “Notice of Default” hereunder and demanding that the Company remedy the same, will have been given, in the manner set
forth in Section 21, to the Company by Noteholders holding at least a majority in principal amount of the outstanding Subordinated
Notes.

 

If an Event of Default described
in Section 5(a) or Section 5(b) occurs, then the principal amount of all of the outstanding Subordinated
Notes, and accrued and unpaid interest, if any, on all outstanding Subordinated Notes will become and be immediately due and payable without
any declaration or other act on the part of any Noteholder, and the Company waives demand, presentment for payment, notice of nonpayment,
notice of protest, and all other notices. As the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an
Event of Default other than an Event of Default described in Section 5(a) or Section 5(b), the Noteholders
may not accelerate the Stated Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the
Subordinated Notes, immediately due and payable. The Company, within 45 calendar days after the receipt of written notice from any Noteholder
of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown
on the Security Register (as defined in Section 14 below), such written notice of Event of Default, unless such Event of Default
shall have been cured or waived before the giving of such notice as certified by the Company in writing.

 

6.            Failure
to Make Payments. In the event of an Event of Default under Section 5(d) or Section 5(e) above,
the Company will, upon demand of the holder of this Subordinated Note, pay to the holder of this Subordinated Note the amount then due
and payable on this Subordinated Note for principal and interest (without acceleration of the Note in any manner), with interest on the
overdue principal and interest at the rate borne by this Subordinated Note, to the extent permitted by applicable law. If the Company
fails to pay such amount upon such demand, the holders of at least a majority in principal amount of the outstanding Subordinated Notes
may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding
to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in
the manner provided by law out of the property of the Company.

 

Upon the occurrence of (x) a
failure by the Company to make any required payment of principal or interest on this Subordinated Note, or (y) an Event of Default,
until such Event of Default is cured by the Company, the Company shall not, except as required by any federal or state governmental agency:
(a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to,
any of the Company’s capital stock; (b) make any payment of principal of or interest or premium, if any, on or repay, repurchase
or redeem any indebtedness of the Company that ranks equal with or junior to the Subordinated Notes; or (c) make any payments under
any guarantee that ranks equal with or junior to the Subordinated Notes, other than (i) any dividends or distributions in shares
of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company’s common stock; (ii) any
declaration of a non-cash dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of stock
under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification
of the Company’s capital stock or the exchange or conversion of one class or series of the Company’s capital stock for another
class or series of the Company’s capital stock; (iv) the purchase of fractional interests in shares of the Company’s
capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or
(v) purchases of any class of the Company’s common stock related to the issuance of common stock or rights under any benefit
plans for the Company’s directors, officers or employees or any of the Company’s dividend reinvestment plans.

 

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7.            Affirmative
Covenants of the Company.

 

(a)            Notice
of Certain Events. To the extent permitted by applicable statute, rule or regulation, the Company shall provide written notice
to the Holder of the occurrence of any of the following events as soon as practicable, but in no event later than fifteen (15) Business
Days following the Company becoming aware of the occurrence of such event:

 

(i)            The
Bank is no longer “adequately capitalized” as contemplated by applicable federal banking laws and regulations; or

 

(ii)            The
Company, or any officer of the Company, becomes subject to any formal, written regulatory enforcement action (as defined by any federal
or state agency charged with the supervision or regulation of depositary institutions or holding companies of depositary institutions,
or engaged in the insurance of depositary institution deposits, or any court, administrative agency or commission or other authority,
body or agency having supervisory or regulatory authority with respect to the Company, or any of their subsidiaries).

 

(b)            Payment
of Principal and Interest. The Company covenants and agrees for the benefit of the holder of this Subordinated Note that it will duly
and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof. Principal and interest
will be considered paid on the date due if the Company or a subsidiary thereof holds, as of 11:00 A.M., Reston, Virginia time, on any
Interest Payment Date, an amount in immediately available funds provided by the Company that is designated for and sufficient to pay all
principal and interest then due.

 

(c)            Maintenance
of Office. The Company will maintain an office or agency in the city of Reston, Virginia where Subordinated Notes may be surrendered
for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes
may be served. The Company may also from time to time designate one or more other offices or agencies where the Subordinated Notes may
be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided that no such designation
or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the city of Reston, Virginia.
The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location
of any such other office or agency.

 

(d)            Corporate
Existence. The Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the
corporate existence of the Company; (ii) the existence (corporate or other) of each subsidiary; and (iii) the rights (charter
and statutory), licenses and franchises of the Company and each of its subsidiaries; provided, however, that the Company will not be required
to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any
of its subsidiaries if the Board of Directors of the Company determines that the preservation thereof is no longer desirable in the conduct
of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material
respect to the Noteholders.

 

(e)            Maintenance
of Properties. The Company will, and will cause each subsidiary to, cause all its properties used or useful in the conduct of its
business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause
to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company
may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this Section will prevent the Company or any subsidiary from discontinuing the operation and maintenance
of any of their respective properties if such discontinuance is, in the judgment of the Board of Directors of the Company or of any subsidiary,
as the case may be desirable in the conduct of its business.

 

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(f)            Waiver
of Certain Covenants. The Company may omit in any particular instance to comply with any term, provision or condition set forth in
Section 7(a), Section 7(b), Section 7(c), Section 7(d) or Section 7(e) above,
with respect to this Subordinated Note if before the time for such compliance the Noteholders of at least a majority in principal amount
of the outstanding Subordinated Notes, by act of such Noteholders, either will waive such compliance in such instance or generally will
have waived compliance with such term, provision or condition, but no such waiver will extend to or affect such term, provision or condition
except to the extent so expressly waived, and, until such waiver will become effective, the obligations of the Company in respect of any
such term, provision or condition will remain in full force and effect.

 

(g)            Company
Statement as to Compliance. The Company will deliver to the Noteholders, within 120 days after the end of each fiscal year, an Officer’s
Certificate covering the preceding calendar year, stating whether or not, to the best of his or her knowledge, the Company is in default
in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements
or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which he
or she may have knowledge.

 

(h)            Tier
2 Capital. If all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the limitation
imposed on the capital treatment of subordinated debt during the five years immediately preceding the Stated Maturity of the Subordinated
Notes, the Company will immediately notify the Noteholders and thereafter the Company and the Noteholders will work together in good faith
to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced
by the Subordinated Notes to qualify as Tier 2 Capital; provided, however, that nothing contained in this Section 7(h) shall
limit the Company’s right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to Section 4(a) or
Section 4(b).

 

(i)            Compliance
with Laws. The Company shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties,
except for such noncompliance that would not reasonably be expected to result in a material adverse effect (i) in the condition (financial
or otherwise), or in the earnings of the Company, whether or not arising in the ordinary course of business, or (ii) on the ability
of the Company to perform its obligations under this Subordinated Note.

 

(j)            Taxes
and Assessments. The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or
levies imposed upon it or upon its income or upon any of its properties; provided, that no such taxes, assessments or other governmental
charges need be paid if they are being contested in good faith by the Company.

 

8.            Negative
Covenants of the Company.

 

(a)            Limitation
on Dividends. The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities
of any kind of the Company if the Company is not “well capitalized” for regulatory purposes immediately prior to the declaration
of such dividend or distribution, except for dividends payable solely in shares of common stock of the Company.

 

    	 	9	 

     

    

 

(b)            Merger
or Sale of Assets. The Company shall not merge into another entity or convey, transfer or lease substantially all of its properties
and assets to any person, unless:

 

(i)            the
continuing entity into which the Company is merged or the person which acquires by conveyance or transfer or which leases substantially
all of the properties and assets of the Company shall be a corporation, association or other legal entity organized and existing under
the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the due and punctual payment
of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance
of all covenants and conditions hereof on the part of the Company to be performed or observed; and

 

(ii)            immediately
after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become
an Event of Default, shall have happened and be continuing.

 

9.            Global
Subordinated Notes.

 

(a)            Provided
that applicable depository eligibility requirements are met, upon the written election of any Noteholder that is a Qualified Institutional
Buyer, as defined in Rule 144A under the Securities Act, the Company shall use its commercially reasonable efforts to provide that
the Subordinated Notes owned by Noteholders that are Qualified Institutional Buyers shall be issued in the form of one or more Global
Subordinated Notes (each a “Global Subordinated Note”) registered in the name of The Depository Trust Company or another
organization registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and designated as Depositary by the Company or any successor thereto (the “Depositary”) or a nominee thereof and delivered
to such Depositary or a nominee thereof.

 

(b)            Notwithstanding
any other provision herein, no Global Subordinated Note may be exchanged in whole or in part for Subordinated Notes registered, and no
transfer of a Global Subordinated Note in whole or in part may be registered, in the name of any person other than the Depositary for
such Global Subordinated Note or a nominee thereof unless (i) such Depositary advises the Company in writing that such Depositary
is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Subordinated Note, and
no qualified successor is appointed by the Company within 90 days of receipt by the Company of such notice, (ii) such Depositary
ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within 90 days after obtaining
knowledge of such event, (iii) the Company elects to terminate the book-entry system through the Depositary or (iv) an Event
of Default shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of
this Section 9(b) above, the Company or its agent shall notify the Depositary and instruct the Depositary to notify all
owners of beneficial interests in such Global Subordinated Note of the occurrence of such event and of the availability of Subordinated
Notes to such owners of beneficial interests requesting the same.

 

(c)            If
any Global Subordinated Note is to be exchanged for other Subordinated Notes or canceled in part, or if another Subordinated Note is to
be exchanged in whole or in part for a beneficial interest in any Global Subordinated Note, then either (i) such Global Subordinated
Note shall be so surrendered for exchange or cancellation as provided in this Section 9 or (ii) the principal amount
thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal
amount of such other Subordinated Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate
adjustment made on the records of the Company or, if applicable, the Company’s registrar and transfer agent (“Registrar”),
whereupon the Company or, if applicable, the Registrar, in accordance with the applicable rules and procedures of the Depositary
(“Applicable Depositary Procedures”), shall instruct the Depositary or its authorized representative to make a corresponding
adjustment to its records. Upon any such surrender or adjustment of a Global Subordinated Note by the Depositary, accompanied by registration
instructions, the Company shall execute and deliver any Subordinated Notes issuable in exchange for such Global Subordinated Note (or
any portion thereof) in accordance with the instructions of the Depositary.

 

    	 	10	 

     

    

 

(d)            Every
Subordinated Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Subordinated Note
or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Subordinated Note, unless such Subordinated
Note is registered in the name of a person other than the Depositary for such Global Subordinated Note or a nominee thereof.

 

(e)            The
Depositary or its nominee, as the registered owner of a Global Subordinated Note, shall be the holder of such Global Subordinated Note
for all purposes under this Subordinated Note, and owners of beneficial interests in a Global Subordinated Note shall hold such interests
pursuant to Applicable Depositary Procedures. Accordingly, any such owner’s beneficial interest in a Global Subordinated Note shall
be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee
or its Depositary participants. If applicable, the Registrar shall be entitled to deal with the Depositary for all purposes relating to
a Global Subordinated Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners
of beneficial interests therein and the giving of notices) as the sole holder of the Subordinated Note and shall have no obligations to
the owners of beneficial interests therein. The Registrar shall have no liability in respect of any transfers affected by the Depositary.

 

(f)            The
rights of owners of beneficial interests in a Global Subordinated Note shall be exercised only through the Depositary and shall be limited
to those established by law and agreements between such owners and the Depositary and/or its participants.

 

(g)            No
holder of any beneficial interest in any Global Subordinated Note held on its behalf by a Depositary shall have any rights with respect
to such Global Subordinated Note, and such Depositary may be treated by the Company and any agent of the Company as the owner of such
Global Subordinated Note for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or
liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Subordinated
Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing,
nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization
furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices
governing the exercise of the rights of the Depositary (or its nominee) as holder of any Subordinated Note.

 

(h)            Company,
within 30 calendar days after the receipt of written notice from the Noteholder or any other holder of the Subordinated Notes of
the occurrence of an Event of Default with respect to this Note, shall mail to all the Noteholders, at their addresses shown on the Security
Register (as defined in Section 14 below), such written notice of Event of Default, unless such Event of Default shall have
been cured or waived before the giving of such notice as certified by Company in writing.

 

10.            Denominations.
The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $1,000 and integral multiples
of $1,000 in excess thereof.

 

    	 	11	 

     

    

 

11.            Charges
and Transfer Taxes. No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any
redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities
or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that
may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.

 

12.            Payment
Procedures. Payment of the principal and interest payable on the Stated Maturity will be made by check, or by wire transfer in immediately
available funds to a bank account in the United States designated by the Noteholder of this Subordinated Note if such Noteholder shall
have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office
(as defined in Section 21 below) or at such other place or places as the Company shall designate by notice to the Noteholders
as the Payment Office, provided that this Subordinated Note is presented to the Company in time for the Company to make such payments
in such funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Stated Maturity) shall
be made by wire transfer in immediately available funds or check mailed to the registered Noteholder of this Subordinated Note, as such
person’s address appears on the Security Register (as defined below). Interest payable on any Interest Payment Date shall be payable
to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth calendar day prior to the
applicable Interest Payment Date, without regard to whether such date is a Business Day (such date being referred to herein as the “Regular
Record Date”), except that interest not paid on the Interest Payment Date, if any, will be paid to the Noteholder in whose name
this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a “Special Record
Date”), notice of which shall be given to the Noteholder of this Subordinated Note not less than 10 calendar days prior to such
Special Record Date. (The Regular Record Date and Special Record Date are referred to herein collectively as the “Record Dates”).
To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated
Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note shall
be applied first against interest due hereunder; and then against principal due hereunder. The Noteholder of this Subordinated Note acknowledges
and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon
shall be pari passu in right of payment and in all other respects to the other Subordinated Notes. In the event that the Noteholder
of this Subordinated Note receives payments in excess of its pro rata share of the Company’s payments to the Noteholders of all
of the Subordinated Notes, then the Noteholder of this Subordinated Note shall hold in trust all such excess payments for the benefit
of the Noteholders of the other Subordinated Notes and shall pay such amounts held in trust to such other Noteholders upon demand by such
Noteholders.

 

13.            Form of
Payment. Payments of principal and interest on this Subordinated Note shall be made in such coin or currency of the United States
of America as at the time of payment shall be legal tender for the payment of public and private debts.

 

14.            Registration
of Transfer, Security Register. Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part, and
may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the holder of this
Subordinated Note in person, or by his attorney duly authorized in writing, at the Payment Office. The Company shall maintain a register
providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the “Security Register”).
Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company shall execute and deliver
in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $1,000
or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory to
the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name
or names requested by the Noteholder. Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall
be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly
executed by the holder of this Subordinated Note or his attorney duly authorized in writing, with such tax identification number or other
information for each person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive
legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable
law. No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth day immediately
preceding the Stated Maturity or (ii) the due delivery of notice of redemption.

 

    	 	12	 

     

    

 

15.            Priority.
The Subordinated Notes rank pari passu among themselves and pari passu, in the event of any insolvency proceeding, dissolution,
assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding
or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the Company,
except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated
Notes.

 

16.            Ownership.
Prior to due presentment of this Subordinated Note for registration of transfer, the Company may treat the Noteholder in whose name this
Subordinated Note is registered in the Security Register as the absolute owner of this Subordinated Note for receiving payments of principal
and interest on this Subordinated Note and for all other purposes whatsoever, whether or not this Subordinated Note be overdue, and the
Company shall not be affected by any notice to the contrary.

 

17.            Waiver
and Consent.

 

(a)            Any
consent or waiver given by the Noteholder of this Subordinated Note shall be conclusive and binding upon such Noteholder and upon all
future Noteholders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange
therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note. Any holder of this
Subordinated Note or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of
such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to repayment of the
indebtedness evidenced thereby.

 

(b)            No
waiver or amendment of any term, provision, condition, covenant or agreement in the Subordinated Notes shall be effective except with
the consent of the holders of not less than more than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes
held by Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; provided, however, that without
the consent of each Noteholder of an affected Subordinated Note, no such amendment or waiver may: (i) reduce the principal amount
of any Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend
the maturity of any Subordinated Note, (iv) change the currency in which payment of the obligations of Company under the Subordinated
Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve
any amendment of the Subordinated Notes, (vi) make any changes to Section 6 (Failure to Make Payments) of the Subordinated
Notes that adversely affects the rights of any Noteholder; or (vii) disproportionately affect any of the Noteholders of the then
outstanding Subordinated Notes. Notwithstanding the foregoing, Company may amend or supplement the Subordinated Notes without the consent
of the Noteholders of the Subordinated Notes to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated
Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of
any Noteholder of any of the Subordinated Notes. No failure to exercise or delay in exercising, by any Noteholder of the Subordinated
Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right,
power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law, except
as restricted hereby. The rights and remedies provided in this Subordinated Note are cumulative and not exclusive of any right or remedy
provided by law or equity. No notice or demand on Company in any case shall, in itself, entitle Company to any other or further notice
or demand in similar or other circumstances or constitute a waiver of the rights of Noteholders to any other or further action in any
circumstances without notice or demand. No consent or waiver, expressed or implied, by Noteholders to or of any breach or default by Company
in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default
in the performance of the same or any other obligations of Company hereunder. Failure on the part of the Noteholders to complain of any
acts or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver
by the Noteholders of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by Company.

 

    	 	13	 

     

    

 

18.            Absolute
and Unconditional Obligation of the Company. No provisions of this Subordinated Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal and interest on this Subordinated Note at the times, places and rate, and in
the coin or currency, herein prescribed.

 

19.            No
Sinking Fund; Convertibility. This Subordinated Note is not entitled to the benefit of any sinking fund. This Subordinated Note is
not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary.

 

20.            No
Recourse Against Others. No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for
any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer,
or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or
successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or
equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note
by the holder of this Subordinated Note and as part of the consideration for the issuance of this Subordinated Note.

 

21.            Notices.
All notices to the Company under this Subordinated Note shall be in writing and addressed to the Company at 1943 Isaac Newton Square,
Reston, Virginia, 20190, Attention: Kent D. Carstater, Chief Financial Officer, or to such other address as the Company may notify to
the Holder (the “Payment Office”). All notices to the Noteholders shall be in writing and sent by first-class mail
to each Noteholder at his or its address as set forth in the Security Register.

 

22.            Further
Issues. The Company may, without the consent of the Noteholders of the Subordinated Notes, create and issue additional notes having
the same terms and conditions of the Subordinated Notes (except for the Issue Date) so that such further notes shall be consolidated and
form a single series with the Subordinated Notes.

 

23.            Governing
Law; Interpretation. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.
THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY
GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

 

[Signature Page Follows]

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF, the undersigned
has caused this Subordinated Note to be duly executed and attested.

 

	 	
    JOHN MARSHALL BANCORP, INC.

     

	 	 	 	 
	 	By:	 
	 	 	Name:	Kent D. Carstater
	 	 	Title:	
    Executive Vice President,

    Chief Financial Officer

 

	ATTEST:	 
	 	 
	 	 
	Name: Carl E. Dodson	 
	Title:   Assistant Secretary	 

 

[Signature Page to Subordinated Note]

 

    	 	 	 

     

    

 

ASSIGNMENT FORM

 

To assign this Subordinated Note, fill
in the form below: (I) or (we) assign and transfer this Subordinated Note to:

 

	(Print or type assignee’s name, address and zip code)
	 
	 
	(Insert assignee’s social security or tax I.D. No.)

 

and irrevocably appoint _______________________
agent to transfer this Subordinated Note on the books of the Company. The agent may substitute another to act for him.

 

	Date:                                      	Your signature:	
	 	(Sign exactly as your name appears on the face of this Subordinated Note)
	 
	 	Tax Identification No:	 

 

	Signature Guarantee: 	 
	(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

 

The undersigned certifies that it [is / is
not] an Affiliate of the Company and that, to its knowledge, the proposed transferee [is / is not] an Affiliate of the Company.

 

In connection with any transfer or exchange of
this Subordinated Note occurring prior to the date that is one year after the later of the date of original issuance of this Subordinated
Note and the last date, if any, on which this Subordinated Note was owned by the Company or any Affiliate of the Company, the undersigned
confirms that this Subordinated Note is being:

 

CHECK ONE BOX BELOW:

 

		 ̈	(1)	acquired for the undersigned’s own account, without transfer;

 

		 ̈	(2)	transferred to the Company;

 

		 ̈	(3)	transferred in accordance and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”);

 

		 ̈	(4)	transferred under an effective registration statement under the Securities Act;

 

		 ̈	(5)	transferred in accordance with and in compliance with Regulation S under the Securities Act;

 

		 ̈	(6)	transferred to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act)

 

    	 	 

     

    

 

		 ̈	(7)	transferred to an “accredited investor” (as defined in Rule 501(a)(4) under the Securities Act), not referred to
in item (6) that has been provided with the information designated under Section 4(d) of the Securities Act of 1933; or

 

		 ̈	(8)	transferred in accordance with another available exemption from the registration requirements of the Securities Act.

 

Unless one of the boxes is checked, the
Company will refuse to register this Subordinated Note in the name of any person other than the registered holder thereof; provided, however,
that if box (5), (6), (7) or (8) is checked, the Company may require, prior to registering any such transfer of this Subordinated
Note, in its sole discretion, such legal opinions, certifications and other information as the Company may reasonably request to confirm
that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act, such as the exemption provided by Rule 144 under such Act.

 

	 	Signature:	 

 

	Signature Guarantee:	 
	(Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-l5).

 

TO BE COMPLETED BY PURCHASER IF BOX (1) OR
(3) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it
is purchasing this Subordinated Note for its own account or an account with respect to which it exercises sole investment discretion and
that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and
that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

 

	Date:	 	 	Signature:Exhibit 10.1

 

JOHN MARSHALL BANCORP, INC.

2015 STOCK INCENTIVE PLAN

(as Amended and Restated on May 15, 2018)

 

1.            Purpose
of the Plan. The purpose of this Amended and Restated John Marshall Bancorp, Inc. 2015 Stock Incentive Plan (the “Plan”)
is to advance the interests of the Company by providing directors and selected key employees of the Company and its Affiliates with the
opportunity to acquire Shares. By encouraging stock ownership, the Company seeks to attract, retain and motivate the best available personnel
for positions of substantial responsibility; to provide additional incentive to directors and key employees of the Company and its Affiliates
to promote the success of the business as measured by the value of its Shares; and generally to increase the commonality of interests
among directors, key employees, and other shareholders.

 

2.            Definitions.
In this Plan:

 

(a)            “Affiliate”
means any “parent corporation” or “subsidiary corporation” of the Company as such terms are defined in Section 424(e) and
(f), respectively, of the Code.

 

(b)            “Agreement”
means a written agreement entered into in accordance with Section 5(c).

 

(c)            “Awards”
means, collectively Options, Restricted Stock and Restricted Stock Units, unless the context clearly indicates a different meaning.

 

(d)            “Bank”
means John Marshall Bank.

 

(e)            “Board”
means the Board of Directors of the Company.

 

(f)            “Company”
means John Marshall Bancorp, Inc.

 

(g)            “Change
in Control” means any one of the following events occurring after the Effective Date: (1) except as provided in Section 10(c),
any consolidation, merger, share exchange, or similar transaction relating to the Company, or pursuant to which shares of the Company’s
capital stock are converted into cash, securities of another entity and/or other property, other than a transaction in which the holders
of the Company’s voting stock immediately before such transaction shall, upon consummation of such transaction, own at least fifty
percent (50%) of the voting power of the surviving entity, (2) any sale of all or substantially all of the assets of the Company,
other than a transfer of assets to a related person which is not treated as a change in control event under §1.409A-3(i)(5)(vii)(B) of
the US Treasury Regulations, (3) the exercise of a controlling influence over the management or policies of the Company by any person
or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934),
or (4) where over a twelve month period, a majority of the members of the Board are replaced by directors whose appointment or election
was not endorsed by a majority of the members of the Board in office prior to such appointment or election. For purposes of this subsection
only, the term “person” refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate,
sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. The decision of the Committee
as to whether a Change in Control has occurred shall be conclusive and binding. A Change in Control does not include acquisition of ownership
or control of voting securities of the Company by an employee benefit plan sponsored by the Company or Bank or; acquisition of voting
securities by the Company through share repurchase or otherwise; or acquisition by an exchange of voting securities with a successor to
the Company in a reorganization, such as a reincorporation, that does not have the purpose or effect of significantly changing voting
power or control. The decision of the Committee as to whether a change in control has occurred is conclusive and binding, subject to the
terms of the Plan.

 

(h)            “Code”
means the Internal Revenue Code of 1986, as amended to date or hereafter.

 

(i)            “Committee”
means the Committee appointed by the Board in accordance with Section 5(a) hereof.

 

(j)            “Common
Stock” means the common stock, par value $0.01 per share, of the Company.

 

(k)            “Continuous
Service” means the absence of any interruption or termination of service as an Employee or Director of the Company or an Affiliate.
Continuous Service shall not be considered interrupted in the case of sick leave, military leave or any other leave of absence approved
by the Company or in the case of transfers between payroll locations of the Company or between the Company, an Affiliate or a successor.

 

    	 	 

     

    

 

(l)            “Director”
means a member of the Board.

 

(m)            “Effective
Date” means the date specified in Section 14 hereof.

 

(n)            “Employee”
means any person employed by the Company or by an Affiliate.

 

(o)            “Exercise
Price” means the price per Optioned Share at which an Option may be exercised.

 

(p)            “Independent
Director” means an independent director as defined for purposes other than audit committee service, but considering the additional
factors required for determining the independence of compensation committee members, in the listing standards and regulations of The NASDAQ
Stock Market, or if the Company’s Common Stock is primarily traded on a national securities exchange other than The NASDAQ Stock
Market (including any level or submarket thereof), then the listing standards and regulations of such other national securities exchange.
Not in limitation of the foregoing, all Independent Directors must be Non-Employee Directors.

 

(q)            “ISO”
means an option to purchase Common Stock that meets the requirements set forth in the Plan, and which is intended to be and is identified
as an “incentive stock option” within the meaning of Section 422 of the Code.

 

(r)            “Just
Cause” has the meaning set forth for “cause,” “just cause” or similar phrase, in any unexpired employment
or severance agreement between the Participant and the Company and/or any Affiliate, or, in the absence of any such agreement, means termination
because of (in the Board’s sole discretion) the Participant’s personal dishonesty, moral turpitude, incompetence, 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 misdemeanor traffic violations or similar offenses) or final cease-and-desist order.

 

(s)            “Market
Value” means the fair market value of the Common Stock, as determined under Section 7(b) hereof.

 

(t)            “Non-Employee
Director” means any member of the Board who, at the time discretion under the Plan is exercised, is a “Non-Employee Director”
within the meaning of Rule 16b-3.

 

(u)            “Non-ISO”
means an option to purchase Common Stock that meets the requirements set forth in the Plan but which is not intended to be, and is not
identified as, an ISO.

 

(v)            “Option”
means an ISO or Non-ISO.

 

(w)            “Optioned
Shares” means Shares subject to an Option or Award of Restricted Stock or Restricted Stock Units granted pursuant to this Plan.

 

(x)            “Outstanding
Shares” means the total shares of Common Stock which have been issued and which (a) are not held as treasury shares, and (b) have
not been cancelled or retired by the Company.

 

(y)            “Participant”
means any person who receives an Award pursuant to the Plan.

 

(z)            “Performance
Based Award” means an Award, the vesting, exercise or retention of which is subject to or based upon Performance Based Conditions.

 

(aa)     “Performance
Based Conditions” means the specific corporate, divisional, or individual performance or achievement standards or goals set forth
in an Agreement.

 

(bb)     “Permanent
and Total Disability” mean “permanent and total disability” as defined in Section 22(e)(3) of the Code.

 

(cc)     “Plan”
means the John Marshall Bancorp, Inc. 2015 Stock Incentive Plan.

 

(dd)     “Restricted
Stock” means Common Stock that is subject to forfeiture, restrictions against transfer, specific Performance Based Conditions, or
other conditions or restrictions set forth in an Agreement.

 

(ee)     “Restricted
Stock Unit” means an Award of the right to receive Shares of Common Stock, the grant, issuance or vesting of which is subject to
such conditions or restrictions, as set forth in an Agreement.

 

(ff)     “Rule 16b-3”
means Rule 16b-3 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended.

 

(gg)     “Share”
means one share of Common Stock.

 

    	 	2	 

     

    

 

(hh)     “Transaction”
means: (i) the liquidation or dissolution of the Company; (ii) a merger, consolidation, share exchange or similar transaction
in which the Company is not the surviving entity; or (iii) the sale or disposition of all or substantially all of the Company’s
assets.

 

3.            Term
of the Plan and Options.

 

(a)            Term
of the Plan. The Plan shall continue in effect for a term of ten years from the Effective Date unless sooner terminated pursuant to
Section 17. No Award may be granted under the Plan after ten years from the Effective Date.

 

(b)            Term
of Options. The Committee shall establish the term of each Option granted under the Plan. No Option may have a term that exceeds 10
years. No ISO granted to an Employee who owns Shares representing more than 10% of the outstanding shares of Common Stock at the time
an ISO is granted may have a term that exceeds five years.

 

4.            Shares
Subject to the Plan. Except as otherwise required by the provisions of Section 11, the aggregate number of Shares that
may be delivered upon the exercise or vesting of Awards shall be 976,211. Optioned Shares may either be authorized but unissued Shares
or Shares held in treasury to the extent allowed by Virginia law. If Awards should expire, become unexercisable or be forfeited for any
reason without having been exercised or become vested in full, the Optioned Shares shall be available for the grant of additional Awards
under the Plan, unless the Plan shall have been terminated.

 

5.            Administration
of the Plan.

 

(a)            Composition
of the Committee. The Plan shall be administered by the Committee, which shall consist of not less than three (3) members of
the Board who are Non-employee Directors. In the absence at any time of a duly appointed Committee, the Plan shall be administered by
the Non-Employee Directors serving on the Board’s Human Resources Committee. Members of the Committee shall serve at the pleasure
of the Board. Notwithstanding the foregoing, at any time when any class of security of Company is traded on any national securities exchange
or on the automated inter-dealer quotation system of national securities association, or the Company is otherwise subject to listing requirements
comparable to those provided in Rule 10A-3 under the Securities Exchange Act of 1934, then: (i) all members of the Committee
shall be Independent Directors; and (ii) In the absence at any time of a duly appointed Committee, the Plan shall be administered
by the members of the Board who are Independent Directors. The members of the Committee shall serve at the pleasure of the Board.

 

(b)            Powers
of the Committee. Except as limited by the express provisions of the Plan or by resolutions adopted by the Board, the Committee shall
have sole and complete authority and discretion: (i) to select Participants and grant Awards; (ii) to determine the form and
content of Awards to be issued in the form of Agreements under the Plan, including but not limited to Performance Based Conditions of
Performance Based Awards, which need not be identical among Participants granted Awards at the same time; (iii) to interpret the
Plan; (iv) to prescribe, amend and rescind rules and regulations relating to the Plan; and (v) to make other determinations
necessary or advisable for the administration of the Plan. The Committee shall have and may exercise such other power and authority as
may be delegated to it by the Board from time to time. A majority of the entire Committee shall constitute a quorum and the action of
a majority of the members present at any meeting at which a quorum is present, or acts approved in writing by a majority of the Committee
without a meeting, shall be deemed the action of the Committee.

 

(c)            Agreement.
Each Award shall be evidenced by a written agreement containing such provisions as may be approved by the Committee. Each such Agreement
shall constitute a binding contract between the Company and the Participant, and every Participant, upon acceptance of such Agreement,
shall be bound by the terms and restrictions of the Plan and of such Agreement. The terms of each such Agreement shall be in accordance
with the Plan, but each Agreement may include such additional provisions and restrictions determined by the Committee, in its discretion,
provided that such additional provisions and restrictions are not inconsistent with the terms of the Plan. In particular, the Committee
shall set forth in each Agreement: (i) the Exercise Price of an Option; (ii) the number of Shares subject to, and the expiration
date of, the Option; (iii) the Restriction Period of an Award of Restricted Stock or Restricted Stock Units; (iv) the amount,
if any, payable for the receipt or vesting of Shares of Restricted Stock or Shares subject to Restricted Stock Units; (v) the manner,
time and rate (cumulative or otherwise) of exercise or vesting of such Award; and (vi) the restrictions, if any, to be placed upon
such Award, or upon Shares which may be issued upon exercise or vesting of such Award. The Chairman of the Committee and such other officers
as shall be designated by the Committee are hereby authorized to execute Agreements on behalf of the Company and to cause them to be delivered
to the recipients of Awards.

 

    	 	3	 

     

    

 

 

(d)            Effect
of the Committee’s Decisions. All decisions, determinations, and interpretations of the Committee shall be final and conclusive
on all persons affected thereby. The Committee’s determination whether a Participant’s Continuous Service has ceased, the
effective date thereof, and whether a Performance Based Condition shall have been met in the event of the death or Permanent and Total
Disability shall be final and conclusive on all persons affected thereby.

 

(e)            Indemnification.
In addition to such other rights of indemnification as they may have, the members of the Committee shall be indemnified by the Company
in connection with any claim, action, suit or proceeding relating to any action taken or failure to act under or in connection with the
Plan or any Award, granted hereunder, to the full extent provided for under the Company’s Articles of Incorporation or Bylaws with
respect to the indemnification of Directors.

 

6.            Grant
of Options.

 

(a)            General
Rule. The Committee, in its sole discretion, may grant ISOs or Non-ISOs to Employees of the Company or its Affiliates and may grant
Non-ISOs to Company Directors and directors of Affiliates

 

(b)            Special
Rules for ISOs. The aggregate Market Value, as of the date the Option is granted, of the Shares with respect to which ISOs are
exercisable for the first time by an Employee during any calendar year (under all incentive stock option plans, as defined in Section 422
of the Code, of the Company or any present or future “parent” or “subsidiary” of the Company) shall not exceed
$100,000. Notwithstanding the prior provisions of this section, the Committee may grant Options in excess of the foregoing limitations,
in which case such Options granted in excess of such limitation shall be Options which are Non-ISOs.

 

7.            Exercise
Price for Options.

 

(a)            Limits
on Committee Discretion. The Exercise Price as to any particular Option granted under the Plan shall not be less than the Market Value
of the Optioned Shares on the date of grant. In the case of an Employee who owns Shares representing more than 10% of the Company’s
Outstanding Shares of Common Stock at the time an ISO is granted, the Exercise Price shall not be less than 110% of the Market Value of
the Optioned Shares at the time the ISO is granted.

 

(b)            Standards
for Determining Exercise Price. If the Common Stock is listed on a national securities exchange (including The NASDAQ Stock Market)
on the date in question, then the Market Value per Share shall be not less than the last reported selling price on such exchange on such
date, or if there were no sales on such date, then the Exercise Price shall be not less than the mean between the closing bid and asked
prices on such date. If the Common Stock is traded otherwise than on a national securities exchange on the date in question, then the
Market Value per Share shall be not less than the mean between the closing bid and asked price on such date. If no such bid and asked
price is available, then the Market Value per Share shall be its fair market value as determined by the Committee, in its sole and absolute
discretion in a manner consistent with the rules prescribed under Section 422 of the Code.

 

8.            Exercise
of Options.

 

(a)            Generally.
Any Option shall be exercisable at such times and under such conditions as shall be permissible under the terms of the Plan and of the
Agreement. An Option may not be exercised for a fractional Share. In the event that any adjustment of an Option pursuant to Section 11
or otherwise would result in an Optionee being entitled to exercise for a fractional Share, then upon such adjustment, the number of Shares
which may be acquired upon exercise of such Option shall be rounded down to the next whole share, and the Optionee shall not be entitled
to any payment, compensation or alternative Award in lieu thereof.

 

(b)            Procedure
for Exercise. A Participant may exercise Options, subject to provisions relative to its termination and limitations on its exercise,
only by: (1) written notice of intent to exercise the Option with respect to a specified number of Shares; and (2) payment to
the Company (contemporaneously with delivery of such notice) of the amount of the Exercise Price with respect to the Options being exercised
(i) in cash, (ii) in Common Stock, (iii) payment through a “net exercise” such that, without the payment of
any funds, the Participant may exercise the Option and receive the net number of shares of Common Stock equal to (A) the number of
shares as to which the Option is being exercised, multiplied by (B) a fraction, the numerator of which is the Market Value per share
less the Exercise Price per share, and the denominator of which is the Market Value per share (the number of net shares to be received
shall be rounded down to the nearest whole number of shares, without any payment or other compensation in lieu of such fractional share);
or (iv) any combination of the foregoing methods of payment. Each such notice (and payment where required) shall be delivered, or
mailed by prepaid registered or certified mail, addressed to the Treasurer of the Company at the Company’s executive offices. Common
Stock utilized in full or partial payment of the Exercise Price for Options shall be valued at its Market Value at the date of exercise.
In connection with the exercise of Options, a Participant shall also deliver to the Company, in accordance with the provisions of Section 19
hereof, an amount sufficient to satisfy all applicable federal, state and local income and employment tax withholding obligations, which
amount may be paid by any of the methods available for payment of the Exercise Price.

 

    	 	4	 

     

    

 

(c)            Period
of Exercisability-ISOs. An ISO may be exercised by a Participant only while the Participant is an Employee and has maintained Continuous
Service from the date of the grant of the ISO, or within three months after termination of such Continuous Service (but not later than
the date on which the Option would otherwise expire), except if the Employee’s Continuous Service terminates by reason of –

 

		(1)	Just Cause, in which case the Participant’s rights to exercise such ISO shall expire on the date
of such termination;

 

		(2)	death, in which case, to the extent that the Participant would have been entitled to exercise the ISO
immediately prior to his death, such ISO of the deceased Participant may be exercised within two years from the date of his death (but
not later than the date on which the Option would otherwise expire) by the personal representatives of his estate or person or persons
to whom his rights under such ISO shall have passed by will or by laws of descent and distribution;

 

		(3)	Permanent and Total Disability, in which case, to the extent that the Participant would have been entitled
to exercise the ISO immediately prior to his termination of service as a result of Permanent and Total Disability, such ISO may be exercised
within one year from the date of such termination of service as a result of Permanent and Total Disability, but not later than the date
on which the ISO would otherwise expire.

 

(d)            Period
of Exercisability-Non-ISOs. A Non-ISO may be exercised by a Participant only while the Participant is an Employee or Director and
has maintained Continuous Service from the date of the grant of the Non-ISO, or within three months after termination of such Continuous
Service in the case of an Employee who is not a Director, or one year after termination of Continuous Service in the case of a Director
(and in any case not later than the date on which the Option would otherwise expire), except if the Continuous Service terminates by reason
of –

 

		(i)	Just Cause, in which case the Participant’s rights to exercise such Non-ISO shall expire on the
date of such termination;

 

		(ii)	death, in which case, to the extent that the Participant would have been entitled to exercise the Non-ISO
immediately prior to his death, such Non-ISO of the deceased Participant may be exercised during the normal term of the Option by the
personal representatives of his estate or person or persons to whom his rights under such Non-ISO shall have passed by will or by laws
of descent and distribution;

 

		(iii)	Permanent and Total Disability, in which case, to the extent that the Participant would have been entitled
to exercise the Non-ISO immediately prior to his termination of service as a result of Permanent and Total Disability, such Non-ISO may
be exercised during the normal term of the Option.

 

(e)            Exercisability
at Death or Permanent and Total Disability. Notwithstanding the provisions of any Option that provides for its exercise in installments
as designated by the Committee, such Option shall become immediately exercisable upon the Participant’s death or termination of
service as a result of Permanent and Total Disability.

 

9.            Restricted
Stock and Restricted Stock Units.

 

The Committee, in its sole
discretion, may grant Awards of Restricted Stock or Restricted Stock Units to Directors or Employees of the Company or an Affiliate. Any
Share of Restricted Stock or Restricted Stock Unit which is the subject of an Award shall be subject to the following terms and conditions,
and otherwise to such other terms and conditions as are either applicable generally to Awards, or prescribed by the Committee in the applicable
Agreement.

 

(a)            Restriction
Period. At the time of each Award of Restricted Stock or a Restricted Stock Unit, there shall be established a restriction period
(the “Restriction Period”). Such Restriction Period may differ among Participants and may have different expiration dates
with respect to portions of the Shares covered by the same Award. In no event: (i) may the Performance Based Condition measurement
date for a Performance Based Award be less than one year from the date of grant; or (ii) may the Restriction Period for any other
Award of Restricted Stock or Restricted Stock Unit be less than three years, provided that restrictions may terminate ratably over the
vesting period.

 

    	 	5	 

     

    

 

(b)            Vesting
Restrictions. The Committee shall determine the conditions and restrictions applicable to the Award, including, but not limited to,
requirements of Continuous Service for a specified term, or, for Performance Based Awards of Restricted Stock or Restricted Stock Units,
the attainment of Performance Based Conditions, which condition and restrictions may differ with respect to each Participant granted an
Award at the same time. The Agreement shall provide for forfeiture of Shares covered thereby if the specified conditions and restrictions
are not met during the Restriction Period. Awards of Restricted Stock may provide for the issue of Shares upon grant, subject to forfeiture
if the specified conditions and restrictions are not met. Restricted Stock Units shall provide for the issuance of Shares only upon the
achievement of the conditions and restrictions at the end of the Restriction Period or upon the achievement of the Performance Based Conditions,
subject to earlier vesting as provided herein.

 

(c)            Vesting
upon Death or Permanent and Total Disability. The Committee shall set forth in the Agreement the percentage of an Award, if any, which
shall vest in the Participant in the event of death, or Permanent and Total Disability prior to the expiration of the Restriction Period
or the satisfaction of the conditions and restrictions applicable to an Award.

 

(d)            Acceleration
of Vesting. Notwithstanding the Restriction Period and the conditions or restrictions imposed on an Award of Restricted Stock or Restricted
Stock Units, as set forth in any Agreement, the Committee may shorten the Restriction Period or waive any conditions or restrictions,
if the Committee concludes that it is in the best interests of the Company to do so, provided that any such actions not done in connection
with a Change in Control or the death, Permanent and Total Disability, or termination of employment of a Participant shall not be effective
unless specifically approved or ratified by the affirmative votes of the holders of a majority of the Common Stock present or represented
and entitled to vote at a meeting duly held on date no later than the next annual meeting of shareholders.

 

(e) Ownership; Voting.
Where stock certificates are issued in respect of Awards of Restricted Stock, which are subject to forfeiture if the conditions or restrictions
are not satisfied, such certificates shall be registered in the name of the Participant, whereupon the Participant shall become a shareholder
of the Company with respect to such Restricted Stock and shall, to the extent not inconsistent with express provisions of the Plan, have
all the rights of a shareholder, including but not limited to the right to vote and to receive all dividends paid on such Shares, and
the certificates shall be deposited with the Company or its designee, together with a stock power endorsed in blank, and the following
legend shall be placed upon such certificates reflecting that the shares represented thereby are subject to restrictions against transfer
and forfeiture:

 

“The transferability of this certificate
and the shares of stock represented thereby are subject to the terms and conditions (including forfeiture) contained in the John Marshall
Bancorp, Inc. 2015 Stock Incentive Plan, and an agreement entered into between the registered owner and John Marshall Bancorp, Inc.
Copies of such Plan and Agreement are on file in the offices of the Secretary of John Marshall Bancorp, Inc.”

 

Where an Award of Restricted Stock Units is subject
to issuance upon the achievement of Performance Based Award standards or goals or other conditions, no certificates shall be issued until
satisfaction of such conditions.

 

(f)            Lapse
of Restrictions. At the expiration of the Restriction Period applicable to the Restricted Stock, or upon the satisfaction of conditions
to receipt of the Shares subject to Restricted Stock Units, as applicable, the Company shall deliver to the Participant, or the legal
representative of the Participant’s estate, or if the personal representative of the Participant’s estate shall have assigned
the estate’s interest in the Restricted Stock or Restricted Stock Units, to the person or persons to whom his rights under such
Restricted Stock or Restricted Stock Units shall have passed by assignment pursuant to his will or to the laws of descent and distribution,
the stock certificates deposited with it or its designee, or if no such certificates have been issued and deposited stock certificates
reflecting the Shares, as to which the Restriction Period has expired and the requirements of the restrictions have been met. If a legend
has been placed on such certificates, the Company shall cause such certificates to be reissued without the legend.

 

(g)            Forfeiture
of Restricted Stock. Any Shares of Restricted Stock which are not vested in the Participant or for which the restrictions have not
been satisfied during the Restriction Period shall be forfeited and cancelled without compensation, and shall thereafter not be considered
to be Outstanding Shares.

 

    	 	6	 

     

    

 

		10.	Conditions Upon Issuance of Shares.

 

(a)            Compliance
with Securities Laws. Shares of Common Stock shall not be issued with respect to any Award unless the issuance and delivery of such
Shares shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the rules and
regulations promulgated thereunder, any applicable state securities law, and the requirements of any stock exchange upon which the Shares
may then be listed. The Plan is intended to comply with Rule 16b-3, and any provision of the Plan that the Committee determines in
its sole and absolute discretion to be inconsistent with said Rule shall, to the extent of such inconsistency, be inoperative and
null and void, and shall not affect the validity of the remaining provisions of the Plan.

 

(b)            Special
Circumstances. The inability of the Company to obtain approval from any regulatory body or authority deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder shall relieve the Company of any liability in respect
of the non-issuance or sale of such Shares. As a condition to the grant or exercise of an Award, the Company may require the Participant
(or permitted successor) to make such representations and warranties as the Committee determines may be necessary to assure the availability
of an exemption from the registration requirements of federal or state securities law.

 

(c)            Committee
Discretion. The Committee shall have the discretionary authority to impose in Agreements such restrictions on Shares as it may deem
appropriate or desirable, including but not limited to the authority to impose a right of first refusal, to establish repurchase rights
or both of these restrictions, or to provide for the mandatory exercise or forfeiture of any outstanding Options in the event that the
Company’s primary federal regulator directs the Company to so require if the Company does not meet minimum regulatory capital requirements.

 

(d)            Construction;
Compliance with 409A, Delay in Payment. It is intended and anticipated that this Plan and Awards hereunder shall not be subject to,
or shall be in accordance with, 409A of the Code and the regulations and administrative guidance promulgated thereunder (“Section 409A”),
and thus avoid the imposition of any excise tax and interest on Participants pursuant to Section 409A(a)(1)(B) of the Code,
as a result of the grant, award, exercise, vesting or lapse of restrictions of any Award, and this Plan shall be interpreted and construed
consistent with this intent. Notwithstanding anything to the contrary contained herein, any Award or vesting, issuance or payment of an
Award hereunder or any Agreement that is considered “nonqualified deferred compensation” that is to be made to a Participant
while such Participant is a “specified employee,” in each case as defined and determined for purposes of Section 409A,
within six months following such Participant’s “separation from service” (as determined in accordance with Section 409A),
then to the extent that such Award, vesting, issuance or payment of an Award is not otherwise permitted under Section 409A such that
it would be exempt from the excise tax thereunder, such Award, vesting, issuance or payment of an Award shall be delayed and shall be
effected on the first business day of the seventh calendar month following the Participant’s separation from service, or, if earlier
upon Participant’s death. Notwithstanding anything to the contrary contained herein, the Company shall have no liability whatsoever
to any Participant or any other person in the event that any Award vesting, issuance or payment of an Award is determined to be subject
to, and is not in compliance with, Section 409A.

 

11.            Effect
of Changes in Control and Changes in Common Stock Subject to the Plan.

 

		(a)	Effects of Change in Control.

 

		(1)	Notwithstanding the provisions of any Award that provides for its exercise or vesting in installments,
all Awards shall be immediately exercisable and fully vested upon a Change in Control.

 

		(2)	At the time of a Change in Control which does not constitute a Transaction, any or all outstanding Options
may, in the discretion of the Board and without the individual consent of a Participant, be cancelled, in exchange for which cancellation
the Participant shall receive a cash payment in an amount equal to the excess of the Market Value at the time of the Change in Control
of the Shares subject to such Option over the Exercise Price of such Options, provided that in no event may an Option be cancelled in
exchange for cash within the six-month period following the date of its grant.

 

		(3)	In the event there is a Transaction, all outstanding Awards shall be surrendered. With respect to each
Award so surrendered, the Board of Directors shall in its sole and absolute discretion determine whether the holder of each Award so surrendered
shall receive—

 

    	 	7	 

     

    

 

		(A)	for each Share then subject to an outstanding Award, an Award for the number and kind of shares (or amount
of cash or other property, or combination thereof) into which each Outstanding Share (other than Shares held by dissenting shareholders)
is changed or exchanged, together with an appropriate adjustment to the Exercise Price in the case of an Option, or other amount, if any,
payable in the event of an Award of Restricted Stock or Shares subject to a Restricted Stock Unit; or

 

		(B)	the number and kind of shares (or amount cash or other property, or combination thereof) into which each
Outstanding Share (other than Shares held by dissenting shareholders) is changed or exchanged in the Transaction that are equal in market
value to the excess of the Market Value on the date of the Transaction of the Shares subject to the Award, over the Exercise Price of
the Option, or other amount, if any, payable in the event of an Award of Restricted Stock or Shares subject to a Restricted Stock Unit;
or

 

		(C)	a cash payment (from the Company or the successor corporation), in an amount equal to the excess of the
Market Value on the date of the Transaction of the Shares subject to the Award, over the Exercise Price of the Option, or other amount,
if any, payable in the event of an Award of Restricted Stock or Shares subject to a Restricted Stock Unit.

 

(b)            Recapitalizations;
Stock Splits, Etc. The number and kind of shares reserved for issuance under the Plan, and the number and kind of shares subject to
outstanding Awards and the Exercise Price of Options or the amount, if any, payable in respect of an Award of Shares of Restricted Stock
or Restricted Stock Units, shall be proportionately adjusted for any increase, decrease, change or exchange of Shares for a different
number or kind of shares or other securities of the Company which results from a merger, consolidation, recapitalization, reorganization,
reclassification, stock dividend, split-up, combination of shares, or similar event in which the number or kind of shares is changed without
the receipt or payment of consideration by the Company. In the event that any such adjustment would result in a Participant being entitled
to exercise for or receive a fractional Share, then upon such adjustment, the number of Shares which may be acquired upon exercise or
vesting of such Award shall be rounded down to the next whole share, and such fraction cancelled, and the Participant shall not be entitled
to any payment, compensation or alternative award in lieu thereof.

 

(c)            Special
Rule for ISOs. Any adjustment made pursuant to subsections (a)(3)(A) or (b) of this section shall be made in such a
manner as not to constitute a modification, within the meaning of Section 424(h) of the Code, of outstanding ISOs.

 

(d)            Conditions
and Restrictions on New, Additional, or Different Shares or Securities. If, by reason of any adjustment made pursuant to this Section,
a Participant becomes entitled to new, additional, or different shares of stock or securities, such new, additional, or different shares
of stock or securities shall thereupon be subject to all of the conditions and restrictions which were applicable to the Shares issued
pursuant to the Award before the adjustment was made.

 

(e)            Other
Issuances. Except as expressly provided in this Section, the issuance by the Company or an Affiliate of shares of stock of any class,
or of securities convertible into Shares or stock of another class, for cash or property or for labor or services either upon direct sale
or upon the exercise of rights or warrants to subscribe therefor, shall not affect, and no adjustment shall be made with respect to, the
number, class, Exercise Price, in the case of Options, or other amount, if any, payable in the case of an Award of Restricted Stock or
Shares subject to a Restricted Stock Unit, then subject to Awards or reserved for issuance under the Plan.

 

12.            Non-Transferability
of Awards.

 

(a)            ISOs,
and prior to their vesting, Restricted Stock and Restricted Stock Units, may not be sold, pledged, assigned, hypothecated, transferred
or disposed of in any manner other than by will or by the laws of descent and distribution.

 

    	 	8	 

     

    

 

(b)            Non-ISO’s
may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent
and distribution, pursuant to the terms of a “qualified domestic relations order” (within the meaning of Section 414(p) of
the Code and the regulations and rulings thereunder), or, in the sole discretion of the Committee, in connection with a transfer for estate
or retirement planning purposes to a trust established for such purposes.

 

13.            Time
of Granting Awards. The date of grant of an Award shall, for all purposes, be the later of the date on which the Committee
makes the determination of granting such Award and the Effective Date. Notice of the determination shall be given to each Participant
to whom an Award is so granted within a reasonably prompt period after the date of such grant.

 

14.            Effective
Date. The Plan shall be effective as of the date on which the Plan is approved by the shareholders of the Company.

 

15.            Approval
by Stockholders. The Plan shall be approved by shareholders of the Company within twelve (12) months of the date on which this
Plan is approved by the Board.

 

16.            Modification
of Awards. At any time, and from time to time, the Board may authorize the Committee to direct execution of an instrument providing
for the modification of any outstanding Award, provided no such modification shall confer on the holder of said Award any right or benefit
which could not be conferred on him by the grant of a new Award at such time, or impair the Award without the consent of the holder of
the Award. Regardless of any other provision of this Plan or an Agreement, neither the Board or the Committee may reprice (as defined
under rules of the New York Stock Exchange or The NASDAQ Stock Market) any Award unless the repricing is approved in advance by the
shareholders of the Company.

 

17.     Amendment
and Termination of the Plan.     The Board may from time to time amend the terms of the Plan and,
with respect to any Shares at the time not subject to Awards, suspend or terminate the Plan; provided that shareholder approval shall
be required to increase the number of Shares subject to the Plan provided in Section 4 or to extend the term of the Plan, or to make
any other change which may be required under the listing requirements of any national securities exchange upon which the Company’s
common stock is listed. No amendment, suspension, or termination of the Plan shall, without the consent of any affected holders of an
Award, alter or impair any rights or obligations under any Award theretofore granted.

 

18.            Reservation
of Shares. The Company, during the term of the Plan, will reserve and keep available a number of Shares sufficient to satisfy the
requirements of the Plan.

 

19.            Withholding
Tax. The Company’s obligation to deliver Shares upon exercise or vesting of Awards (or such earlier time that the Participant
makes an election under Section 83(b) of the Code) shall be subject to the Participant’s satisfaction of all applicable
federal, state and local income and employment tax withholding obligations. The Committee, in its discretion, may permit the Participant
to satisfy the obligation, in whole or in part, by irrevocably electing to have the Company withhold Shares, or to deliver to the Company
Shares that he already owns, having a value equal to the amount required to be withheld. The value of Shares to be withheld, or delivered
to the Company, shall be based on the Market Value of the Shares on the date the amount of tax to be withheld is to be determined. As
an alternative, the Company may retain, or sell without notice, a number of such Shares sufficient to cover the amount required to be
withheld.

 

20.            No
Employment or Other Rights. In no event shall a Director’s or Employee’s eligibility to participate or participation
in the Plan create or be deemed to create any legal or equitable right of the Director or Employee or any other party to continue service
with the Company or any Affiliate of such corporations. No Director or Employee shall have a right to be granted an Award or, having received
an Award, the right to be granted an additional Award.

 

21.     Governing
Law.     The Plan shall be governed by and construed in accordance with the laws of the Commonwealth
of Virginia, except to the extent that federal law shall be deemed to apply.

 

    	 	9

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