Document:

Employment Agreement, dated as of January 1, 2005

 EXHIBIT 10.5 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT is made by and between FIRST NATIONAL
CORPORATION, a Virginia corporation (First National Corporation and its wholly owned subsidiary, First Bank, hereinafter referred to as the “Bank”), and Marshall J. Beverley, Jr. (the “Employee”), and provides as follows:

 RECITALS 
 WHEREAS, the Bank is a bank holding company engaged in the operation of a bank; and 
 WHEREAS, the Employee has knowledge, skills
and expertise as a trust officer; and 
 WHEREAS, the Bank desires to employ Employee and Employee desires to accept such employment.

 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the sufficiency of which are hereby
acknowledged, the parties agree as follows: 
 TERMS OF AGREEMENT 
 Section 1. Employment. 
 (a) Employee shall be employed as “Executive Vice President – Senior Trust Officer” of the Bank and its wholly owned subsidiary, First Bank. He shall perform such services for the Bank upon the terms and conditions
hereinafter set forth. 
 (b) The parties recognize that the President of the Bank, with the advice and consent of the Board of Directors,
shall manage the business affairs of the Bank and that the relationship between the Bank and Employee shall be that of an employer and an employee. The President shall have the sole authority. 
 Section 2. Effective Date and Term. The effective date of this Agreement shall be December 16, 2004 (“Effective Date”).
The term of this Agreement shall at all times be two (2) years, which means that at the end of every day, the term of this Agreement shall be extended for one day. With thirty (30) days notice, however, either party may notify the other
that the term of this Agreement shall no longer be extended and that this Agreement will terminate two (2) years after the effective date of such notice. 
 Section 3. Exclusive Service. 
 (a) Employee shall devote his best efforts and full time
to rendering services on behalf of the Bank in furtherance of its best interests. Employee shall comply with all policies, standards and regulations of the Bank now or hereafter promulgated, and shall perform the duties of a Trust Officer, as
described below, to the best of his abilities and in accordance with standards of conduct applicable to trust officers in the banking industry. 
 (b) Employee and the Bank recognize and agree that Employee’s duties as a Trust Officer of the Bank shall be as follows: 
 i.
Employee shall be responsible for administration of personal/trust fiduciary relationship and/or duties related to fiduciary accounts, such as trusts, estates, agency accounts, investment management accounts, custody accounts, and bank power of
attorney accounts. 
 ii. In the performance of his duties, Employee shall ensure that fiduciary standards are being met and that Trust
Department policies and procedures are being observed. Employee shall participate in the creation and revision, as may be necessary from time to time, of the Bank’s Trust Department policies and procedures. 
 iii. Employee shall seek to contribute to the growth, profitability and retention of trust accounts through active participation in business development
for new business. 
 iv. Employee shall maintain good working relationships with clients, attorneys, CPAs and other related professionals to
assure quality service and enhance business development. 
  

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 v. Employee shall keep up to date on legal issues, regulations, investment and tax issues and
developments in the trust industry and shall inform the Bank of any changes in the legal environment pertaining to trusts of which Employee becomes aware which may cause the Bank to modify its Trust Department policies and procedures. 
 vi. Although the Employee will work with the Bank’s retail banking operation in a concerted effort to achieve overall banking growth, both Employee
and the Bank recognize that the Employee is a Trust Specialist and Employee shall not be directed to perform tasks directly related to retail banking (loans, deposit accounts, etc.). 
 vii. Employee shall have the responsibility to assist in the management and oversight of the Bank’s Trust Department and its employees. 

Section 4. Salary. (a) As compensation while employed hereunder, Employee, during his faithful performance of this Agreement, shall
receive an annual base salary of $125,000 payable on such terms and in such installments as the parties may from time to time mutually agree upon. The Board of Directors, in its discretion, may increase Employee’s base salary during the term of
this Agreement; provided, however, that Employee’s salary after being increased may not be decreased without Employee’s consent. 
 (b) The Bank shall withhold state and federal income taxes, social security taxes and such other payroll deductions as may from time to time be required by law or agreed upon in writing by Employee and the Bank. The Bank shall also withhold
and remit to the proper party any amounts agreed to in writing by the Bank and Employee for participation in any corporate sponsored benefit plans for which a contribution is required. 
 (c) Except as otherwise expressly set forth hereunder, no compensation shall be paid pursuant to this Agreement in respect of any month or portion
thereof subsequent to any termination of Employee’s employment by the Bank. 
 Section 5. Signing Bonus. Within 15
days after the later of Employee’s execution of this Agreement of the Effective Date, the Bank shall make a one-time signing bonus payment to the Employee in the amount of $10,000, less applicable withholding. 
 Section 6. Corporate Benefit Plans. Employee shall be entitled to participate in or become a participant in any employee benefit plan
maintained by the Bank for which he is or will become eligible on such terms as the Board of Directors may, in its discretion, establish, modify or otherwise change. 
 Section 7. Bonuses. Employee shall receive only such bonuses as the Board of Directors, in its discretion, decides to pay to Employee. 
 Section 8. Expense Account. The Bank shall reimburse Employee for reasonable and customary business expenses incurred in the conduct
of the Bank’s business. Such expenses will include business meals, out-of-town lodging and travel expenses. Employee agrees to timely submit records and receipts of reimbursable items and agrees that the Bank can adopt reasonable rules and
policies regarding such reimbursement. The Bank agrees to make prompt payment to Employee following receipt and verification of such reports. 
 Section 9. Personal and Sick Leave. Employee shall be entitled to the same personal and sick leave as the Board of Directors may from time to time designate for all full-time employees of the Bank. 
 Section 10. Vacations. Employee shall be entitled vacations in accordance with the most favorable plans, policies, and programs of the
Bank, but in no event less than four weeks of paid vacation per year. 
 Section 11. Country Club Dues. During
Employee’s active employment with the Bank, the Bank shall pay the Employee’s entrance and membership dues at the Winchester Country Club as well as the monthly charges as may be established by the Club from time to time. Employee shall be
responsible for the tax consequences of such benefits as may be required under the Internal Revenue Code. 
 Section 12.
Termination of Employment. 
 (a) Death. The Employee’s employment will terminate automatically upon the
Employee’s death. 
 (b) Disability. The Bank may terminate Employee’s employment under this Agreement, after having
established the Employee’s disability by giving to Employee written notice of its intention to terminate his employment for disability and his employment with the Bank shall terminate effective on the 90th day after receipt of such notice if within 90 days after such receipt Employee shall fail to return to the full-time performance of the essential
functions of his position (and if Employee’s disability has been established pursuant to the definition of “disability” set forth below). For purposes of this Agreement, “disability” means 

  

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either (i) disability which after the expiration of more than 13 consecutive weeks after its commencement is determined to be total and permanent by a
physician selected and paid for by the bank or its insurers, and acceptable to Employee or his legal representative, which consent shall not be unreasonably withheld or (ii) disability as defined in the policy of disability insurance maintained
by the Bank for the benefit of Employee, whichever is more favorable to the Employee. Notwithstanding any other provision of this Agreement, the Bank shall comply with all requirements of the Americans with Disabilities Act, 42 U.S.C.
Section 12101 et seq. 
 (c) Cause. The Bank may terminate the Employee’s employment for Cause. Termination for
“Cause” shall mean a good faith determination by the Bank that Employee has committed acts of personal dishonesty, incompetence, willful misconduct, breach of a fiduciary duty involving personal profit, intentional failure to perform state
duties, willful violation of law (other than traffic violations or similar offenses) or final cease-and-desist order, conviction of a felony or of a misdemeanor involving moral turpitude, misappropriation of the Bank’s assets or material breach
of this Agreement. Termination for Cause also shall include termination as a result of Employee’s failure to correct a material deficiency in the performance of his duties within 60 days after a written notice from the Board of Directors or
such other reasonable period of time specified by the Board of Directors if such deficiency cannot be cured within 60 days. Any notice given under this subsection shall state that it is a notice pursuant Section 12(c) of this Agreement and
shall set forth the Board’s complaints in detail sufficient to allow Employee to understand and correct them. 
 (d) Good Reason.
The Employee’s employment may be terminated (i) by the Employee for Good Reason, or (ii) during the Window Period by the Employee without any reason. For purposes of this Agreement, the “Window Period” means the 12-month
period after a “Change of Control” as defined in Section 14. For purposes of this Agreement, “Good Reason” means: 
 (i) without the express written consent of the Employee, (A) the assignment to the Employee of any duties inconsistent in any substantial respect with the Employee’s position, authority or responsibilities as contemplated by
Section 3 of this Agreement, or (B) any other substantial change in such position (including titles), authority or responsibilities; 
 (ii) requiring Employee to maintain his principal office outside 25 miles proximity to the City of Winchester; 
 (iii) failure of
the Bank to provide the Employee with substantially the same fringe benefits that are provided to him at the inception to this Agreement; 
 (iv) failure of the Bank to comply with any material term of this Agreement; or 
 (v) failure of the Bank to obtain the assumption
of an agreement to perform this Agreement by any successor as contemplated by Section 17 of this Agreement. 
 Employee shall not be deemed to have
resigned for Good Reason hereunder unless with respect to each of (i-v) above, the Employee has provided written notice to the Bank within 90 days after the event that the Employee believes gives rise to Employee’s right to terminate employment
under this Section 12(d), describing in reasonable detail the facts that provide the basis for such belief, and the Bank has failed within 30 days from the date of such notice to cure any basis for the Employee’s resignation for Good
Reason. 
 (e) Without Cause or Good Reason. The Bank may terminate Employee’s employment other than for “Cause” at any
time upon written notice to Employee. Employee may resign without “Good Reason” upon 30 days written notice to the Bank. 
 (f)
Notice of Termination. Any termination by the Bank or the Employee shall be communicated by written Notice of Termination to the other party. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice
which shall indicate the specific termination provision in this Agreement upon which the party is relying. 
 (g) Date of Termination.
“Date of Termination” means (i) if the Employee’s employment is terminated by the Bank for Cause, or during the Window Period, the date of receipt of the Notice of Termination or any later date specified therein, as the case may
be, (ii) if the Employee’s employment is terminated by the Bank other than for Cause or Disability, or by the Employee other than for Good Reason or during the Window Period, the date specified in the Notice of Termination (which shall not
be less than 30 days after the Notice of Termination is given), and (iii) if the Employee’s employment is terminated by the Employee for Good Reason, the date which is 30 days after the date of receipt of the Notice of Termination if the
Bank has not, prior to such date, cured the basis for the notice as provide for in Section 12(d); and (iv) if the Employee’s employment is terminated for Disability, 30 days after Notice of Termination is given, provided that the
employee shall not have returned to full-time performance of his duties during such 30-day period. 
  

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 (h) If Employee is suspended and/or temporarily prohibited from participating in the conduct of the
Bank’s affairs by a notice served pursuant to the Federal Deposit Insurance Act, the Bank’s obligations under this Employment Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges
in the notice are dismissed, the Bank may in its discretion (i) pay Employee all or part of the compensation withheld while its contract obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were
suspended. 
 (i) If Employee is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an
order issued under the Federal Deposit Insurance Act or the Code of Virginia, all obligations of the Bank under this Employment Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected.

 Section 13. Compensation Upon Termination. 
 (a) Good Reason or Without Cause. If the Bank terminates the Employee’s employment without Cause or the Employee resigns for Good Reason and such
termination or resignation has not occurred within twelve (12) months following a Change of Control, then in either event: 
 (i)
Employee shall be paid for the remainder of the then current term of this Agreement, at such times as payment was theretofore made, the salary required under Section 4 of this Agreement had such termination not occurred; and 
 (ii) The Bank shall maintain in full force and effect for the continued benefit of the Employee for the remainder of the then current term of this
Agreement, all employee welfare benefit plans and programs or arrangements in which the Employee was entitled to participate immediately prior to such termination, provided that continued participation is possible under the general terms and
provisions of such plans and programs. In the event that Employee’s participation in any such plan or program is barred, the Bank shall arrange to provide the Employee with benefits substantially similar to those which the Employee was entitled
to receive under such plans and program; and 
 (iii) A lump sum payment in cash on the date of his employment terminates equal to the amount
of his Accrued Obligations. “Accrued Obligations” shall be defined as the sum of: 
 (1) the Executive’s Annual Base Salary
earned but not yet paid through the Date of Termination at the rate in effect just before a Notice of Termination is given; 
 (2) the
amount, if any, of any incentive or bonus compensation theretofore earned which has not yet been paid; 
 (3) a pro-rated bonus for the year
in which the termination occurs which equals the product of any bonus paid or payable, including by reason of deferral, for the most recently completed year multiplied by a fraction, the numerator of which is the number of days in the current year
through the Date of Termination and the denominator of which is 365; and
 (4) any benefits or awards (including both the cash and stock
components) which pursuant to the terms of any plans, policies or programs have been earned prior to the date of termination, but which have not yet been paid to the Employee (but not including amounts that previously had been deferred at the
Employee’s request, which amounts will be paid in accordance with the Employee’s existing directions, to the extent permitted by applicable law, including tax laws). 
 Notwithstanding anything in this Agreement to the contrary, if Employee breaches Section 14 or 15, Employee will not thereafter be entitled to
receive any further compensation or benefits pursuant to this Section 13(a). In addition, notwithstanding anything in this Agreement to the contrary, the Bank shall not be required to make any payment that is prohibited by the terms of the
regulations presently found at 12 C.F.R. part 359 or to the extent that any other governmental approval of the payment is not received. 
 (b) Death or Disability. If this Agreement terminates as a result of Employee’s death or disability, the Bank will have no further obligation under this Agreement other than for payment of the Accrued Obligations (as defined in
Section 13(a)(iii)). 
 (c) Cause; Voluntary Termination Without Good Reason. If the Employee’s employment is terminated for
Cause, this Agreement will terminate without further obligation to the Employee other than the payment to the Employee of salary earned but not yet paid through the Date of Termination. If the Employee terminates employment, excluding a termination
for Good Reason or during the Window Period, this Agreement will terminate without further obligation to the Employee other than the Accrued Obligations (as defined in Section 13(a)(iii) above), but not including the sum in 13(a)(iii)(3), which
will be paid in a lump sum in cash within 30 days of the Date of Termination, and any other benefits to which the Employee may be entitled pursuant to the terms of any plan, program or arrangement of the Bank. 
  

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 (d) Termination After a Change in Control. If the Employee terminates his employment with the Bank
for any reason during the Window Period after a Change in Control, the Employee will be entitled to the sum of Accrued Obligations (as defined in Section 13(a)(iii)) plus a cash amount (subject to any applicable payroll or other taxes required
to be withheld), equal to the excess, if any, of 299% of Employee’s “annualized includable compensation for the base period”, as defined in Section 280G of the Internal Revenue Code of 1986 (the “Code”), over the total
amount payable to Employee under Section 13(a)(i) provided that, at the option of Employee, the cash amount required to be paid hereby shall be paid by the Bank in equal monthly installments over the thirty-six (36) months succeeding the
Date of Termination, payable on the first day of each such month. 
 For purposes of this Agreement, a Change of Control occurs if, after the
date of this Agreement, (i) any person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the owner or beneficial owner of Bank securities having 50% or more of the combined voting
power of the then outstanding Bank securities that may be cast for the election of the Banks directors other than a result of an issuance of securities initiated by the Bank, or open market purchases approved by the Board of Directors, as long as
the majority of the Board of Directors approving the purchases is a majority at the time the purchases are made; or (ii) as the direct or indirect result of, or in connection with, a tender or exchange offer, a merger or other business
combination, a sale of assets, a contested election of directors, or any combination of these events, the persons who were directors of the Bank before such events cease to constitute a majority of the Bank’s Board, or any successor’s
board, within two years of the last of such transactions. For purposes of this Agreement, a Change of Control occurs on the date on which an event described in (i) or (ii) occurs. If a Change of Control occurs on account of a series of
transactions or events, the Change of Control occurs on the date of the last of such transactions or events. 
 It is the intention of the
parties that no payment be made or benefit provided to Employee pursuant to this Agreement that would constitute an “excess parachute payment” within the meaning of Section 280G of the Code and any regulations thereunder, thereby
resulting in a loss of an income tax deduction by the Bank or the imposition of an excise tax on Employee under Section 4999 of the Code. If the independent accountants serving as auditors for the Bank on the date of a Change of Control (or any
other accounting firm designated by the Bank) determine that some or all of the payments or benefits scheduled under this Agreement, as well as any other payments or benefits on a Change of Control, would be nondeductible by the Bank under
Section 280G of the Code, then the payments scheduled under this Agreement will be reduced to one dollar less than the maximum amount which may be paid without causing any such payment or benefit to be nondeductible. The determination made as
to the reduction of benefits or payments required hereunder by the independent accountants shall be binding on the parties. Employee shall have the right to designate within a reasonable period, which payments or benefits will be reduced; provided,
however, that if no direction is received from Employee, the Bank shall implement the reductions in its discretion. 
 Section 14.
Confidentiality/Nondisclosure. 
 Employee covenants and agrees that any and all information concerning the customers, businesses
and services of the Bank of which he has knowledge or access as a result of his association with the Bank in any capacity, shall be deemed confidential in nature and shall not, without the proper written consent of the Bank, be directly or
indirectly used, disseminated, disclosed or published by Employee to third parties other than in connection with the usual conduct of the business of the Bank. Such information shall expressly include, but shall not be limited to, information
concerning the Bank’s trade secrets, business operations, business records, customer lists or other customer information. Upon termination of employment Employee shall deliver to the Bank all originals and copies of documents, forms, records or
other information, in whatever form it may exist, concerning the Bank or its business, customers, products or services. This Section 14 shall not be applicable to any information which, through no misconduct or negligence of Employee, has
previously been disclosed to the public by anyone other than Employee. 
 Section 15. Covenant Not to Compete. 

If Employee resigns for Good Reason or during the Window Period of if the Bank terminates the Employee’s employment other than for Cause and
Employee receives the payments provided for in Section 13(a) or (d), then for a period of twelve (12) months from and after Employee is no longer employed by the Bank or for a period of twelve (12) months from the date of entry by a
court of competent jurisdiction of a final judgment enforcing this covenant in the event of a breach by Employee, whichever is later, Employee covenants and agrees that he will not, directly or indirectly, either as a principal, agent, employee,
employer, stockholder, co-partner or in any other individual or representative capacity whatsoever: (i) engage in a Competitive Business anywhere within a ten (10) mile radius of any office operated by the Bank as of the date of the
execution of this Agreement; or (ii) solicit, or assist any other person or business entity in soliciting, any depositors or other customers of the Bank to make deposits in or to become customers of any other financial institution conducting a
Competitive Business; or (iii) induce any individuals to terminate their employment with the Bank. 
 As used in this Agreement, the
terms “solicit” and “soliciting” shall include, but not be limited to contacting customers of the Bank for the purpose of advising them of Employee’s new contact information; however, it does not include placement of
announcements in a publication by a subsequent employer of the Employee announcing Employee’s new place of employment, nor does it include responding to inquiries initiated by a customer about Employee’s new contact information.

  

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 As used in this Agreement, the term “Competitive Business” means establishing an office within
the restricted geographic area that provides banking and financial products and services that are substantially similar to those offered by the Bank on the date that Employee’s employment terminates. Nothing in this Section 15 is intended
to prohibit Employee from meeting with Employee’s clients within the restricted geographic area. 
 Section 16. Injunctive
Relief, Damages, Etc. 
 Employee agrees that given the nature of the positions to be held by Employee with the Bank, that each and
every one of the covenants and restrictions in Sections 14 and 15 above are reasonable in scope, length of time and geographic area and are necessary for the protection of the Bank in developing, maintaining and expanding its business. Accordingly,
the parties hereto agree that in the event of any breach by Employee of any of the provisions of Sections 14 or 15 that monetary damages alone will not adequately compensate the Bank for its losses and, therefore, that it may seek any and all legal
or equitable relief available to it, specifically including, but not limited to, injunctive relief and if relief is awarded in favor of the Bank, Employee shall be liable for all damages, including actual and consequential damages, costs and
expenses (excluding attorneys fees) incurred by the Bank as a result of taking to enforce, or recover for any breach of Sections 14 and 15. Should a court of competent jurisdiction determine that any provision of the covenants and restrictions set
forth in Section 15 above is unenforceable as being overbroad as to time, area or scope, the court may strike the offending provision or reform such provision to substitute such other terms as are reasonable to protect the Bank’s
legitimate business interests. 
 Section 17. Binding Effect/Assignability. 
 This Employment Agreement shall be binding upon and inure to the benefit of the Bank and Employee and their respective heirs, legal representatives,
executors, administrators, successors and assigns, but neither this Agreement, nor any of the rights hereunder, shall be assignable by Employee or any beneficiary or beneficiaries designated by Employee. The Bank will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business, stock or assets of the Bank, by agreement in form and substance reasonably satisfactory to the Employee, to expressly assume and agree
to perform this Agreement in its entirety. Failure of the Bank to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Employee to the compensation described in
Sections 13(a) and 13(d). As used in this Agreement, “Bank” shall mean First National Corporation, and its wholly owned subsidiaries, and any successor to its respective business, stock or assets as aforesaid which executes and
delivers the agreement provided for in this Section 17 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
 Section 18. Resignation and Release of Claims. 
 Nothwithstanding anything in this
Agreement to the contrary, in order to be eligible to receive the payments provided for under Section 13(a) as a result of termination by the Employee for Good Reason or by the Employer without Cause or payments provided for under
Section 13(d) as a result of a termination by the Employee during the Window Period after a Change of Control Employee must on his own behalf and on behalf of his estate, heirs and representatives, execute a release in form and substance
reasonably satisfactory to the Bank,. Releasing the Bank and its respective officers, Directors, employees, agents, representatives, shareholders, successors and assigns from any and all claims related to Employee’s employment with the Bank or
the termination of employment. 
 Section 19. Governing Law. 
 This Employment Agreement shall be subject to and construed in accordance with the laws of Virginia. 
 Section 20. Invalid Provisions. 
 The invalidity or unenforceability of any particular provision of this Employment Agreement shall not affect the validity or enforceability of any other provisions hereof, and this Employment Agreement shall be construed in all respects as
if such invalid or unenforceable provisions were omitted. 
 Section 21. Notices. 
 Any and all notices, designations, consents, offers, acceptance or any other communications provided for herein shall be given in writing and shall be
deemed properly delivered if delivered in person or by registered or certified mail, return receipt requested, addressed as follows: if to the Bank, to its President at the headquarters office of the Bank; if to the Employee, to his last known
address on record at the Bank. 
  

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 Section 22. Entire Agreement.  
 (a) This Employment Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes any and all
other agreements, either oral or in writing, among the parties. 
 (b) This Employment Agreement may be executed in one or more counterparts,
each of which shall be considered an original. 
 Section 23. Amendment and Waiver. 
 This Employment Agreement may not be amended except by an instrument in writing signed by or on behalf of each of the parties hereto. No waiver of any
provision of this Employment Agreement shall be valid unless in writing and signed by the party to be charged. 
 Section 24. Case
and Gender. 
 Wherever required by the context of this Employment Agreement, the singular or plural case and the masculine, feminine
and neuter genders shall be interchangeable. 
 Section 25. Captions. 
 The captions used in this Employment Agreement are intended for descriptive and reference purposes only and are not intended to affect the meaning of any
Section hereunder. 
 IN WITNESS WHEREOF, the Bank has caused this Employment Agreement to be executed by its duly authorized officer and
Employee has executed this Employment Agreement on the date specified below. 
  

			
	EMPLOYEE	 	FIRST NATIONAL CORPORATION
		
	 /s/ Marshall J. Beverley, Jr.
	 	 /s/ Harry S. Smith

		 	Title: President & CEO
		
	Dated: 12/16/04	 	Dated: 12/16/04

  

 75Articles of Incorporation of the Company, as amended

 EXHIBIT 4.1 
 ARTICLES OF INCORPORATION 
 OF 
 PIEDMONT NATURAL GAS COMPANY, INC. 
 AS OF MARCH 3, 2006 
 The undersigned, for the purpose of forming a business corporation under the laws of the State of North Carolina, does hereby make and acknowledge these
Articles of Incorporation. 
 ARTICLE 1: The name of the Corporation is “PIEDMONT NATURAL GAS COMPANY,
INC.”. 
 ARTICLE 2: The purposes for which the Corporation are organized are: (1) to transport, store, buy, manufacture, produce or in any
manner acquire, sell, exchange, deliver, distribute, dispose of, trade and deal in natural or manufactured gas or a mixture of both or their by-products and residual products; to construct, build, purchase, lease, equip or otherwise acquire and to
hold, own operate, improve, develop, manage and maintain pipe lines or systems of pipe lines for the transmission of natural gas; to purchase, build, construct, develop, improve, acquire, own, hold, lease, operate, manage and maintain works or
facilities for the manufacture, production, accumulation and distribution of natural or manufactured gas or a mixture of both or their by-products and residual products, together with all such buildings, pipe lines, mains, machinery, including
compressor units and compressor stations, apparatus, appliances, facilities, rights of way, easements, rights, privileges, and all such real and personal property as may be necessary, useful or convenient to the production, acquisition, storage and
distribution of the aforesaid products; and (2) to engage in any other lawful act or business for which a corporation may be organized under Chapter 55 of the General Statutes of North Carolina, as amended from time to time. 
 ARTICLE 3: The aggregate number of shares of capital stock which the corporation shall have authority to issue is two hundred million one hundred seventy-five
thousand (200,175,000), one hundred million (200,000,000) of which shall be common stock, without par value, and one hundred seventy-five thousand (175,000) of which shall be preferred stock, without par value. The shares of common stock
shall have unlimited voting rights and, after satisfaction of claims, if any, of the holders of shares of preferred stock, shall be entitled to receive pro rata the net assets of the Corporation upon distribution. The Board of Directors of the
Corporation shall have full power and authority to establish one or more series within the class of preferred stock, to define the designations, preferences, limitations and relative rights (including conversion rights) of shares within such class
and to determine all variations between series. 
 ARTICLE 4: The name of the initial registered agent is: Martin C. Ruegsegger. The street address
and county of the initial registered office of the Corporation is: 1915 Rexford Road, Charlotte, Mecklenburg County, North Carolina. The mailing address is: P.O. Box 33068, Charlotte, North Carolina 28233. 

 ARTICLE 5: The duration of the Corporation is to be perpetual. 
 ARTICLE 6: The business and affairs of the Corporation shall be managed by or under the direction of a Board of Directors. The number of directors (exclusive of
directors, if any, elected 2 by the holders of one or more classes of preferred stock, voting as a class pursuant to provisions as may be determined by the Board of Directors) which shall constitute the entire Board of Directors of the Corporation
shall be the number from time to time fixed by or in accordance with the By-Laws of the Corporation (which number shall not be less than nine), and such number of directors so fixed may be changed only by the affirmative vote of (i) at least
eighty per cent of the outstanding shares entitled to vote in the election of the directors or (ii) a majority of the entire Board of Directors. 
 The directors of the Corporation shall be divided into three classes, as nearly equal as possible in number as may be, to serve in the first instance for terms of one, two and three years, respectively, or until their
earlier death, resignation, retirement, removal or disqualification or until their successors shall be elected and shall qualify, and thereafter the successors in each class of directors shall be elected to serve for terms of three years or until
their earlier death, resignation, retirement, removal or disqualification or until their successors shall be elected and shall qualify. In the event of an increase or decrease in the number of directors, the additional or eliminated directorships
shall be so classified that all classes of directors remain or become as nearly equal in number as may be. 
 Subject to the rights of the
holders of any series of preferred stock, if any, then outstanding, newly-created directorships resulting from an increase in the authorized number of directors may be filled by vote of the Board of Directors. If the number of the directors then in
office is less than a quorum, such newly-created directorships and any then existing vacancies may be filled by a majority of the directors then in office. Any director elected to fill a vacancy shall hold office until the next annual meeting of
shareholders. In no case shall a decrease in the number of directors shorten the term of any incumbent director. 
 Subject to the rights of
the holders of any series of preferred stock, if any, then outstanding, any director, or the entire Board of Directors, may be removed from office at any time for cause by the affirmative vote of at least eighty per cent of the outstanding shares
entitled to vote in the election of directors. 
 Notwithstanding any other provisions of these Articles of Incorporation or the By-Laws of
the Corporation (and notwithstanding the fact that a lesser percentage may be specified by law, the Articles of Incorporation or the By-Laws of the Corporation), the affirmative vote of at least eighty per cent of the outstanding shares entitled to
vote in the election of directors shall be required for the shareholders of the Corporation to amend, repeal or adopt any By-Law of the Corporation or to adopt any amendment to these Articles of Incorporation inconsistent with the By-Laws of the
Corporation. 
 Notwithstanding any other provisions of law, these Articles of Incorporation or the By-Laws of the Corporation (and
notwithstanding the fact that a lesser percentage may 

 be specified by law, the Articles of Incorporation or the By-Laws of the Corporation), the affirmative vote of at least
eighty per cent of the outstanding shares entitled to vote in the election of directors shall be required to amend, alter, change or repeal this Article 6 or to adopt any provision inconsistent with this Article 6. 
 A special meeting of the shareholders may be called at any time and for any purpose or purposes by the Board of Directors and shall be called by the
Secretary upon the written request of the holders of at least eighty per cent of the outstanding shares entitled to vote in the election of directors. Each such request shall state the purpose or purposes of each meeting. 
 ARTICLE 7: The vote of shareholders of the Corporation required to approve any Business Combination (as hereinafter defined) shall be as set forth in this Article
7. 
 (a) In addition to any affirmative vote required by law, these Articles of Incorporation or the By-Laws of the
Corporation, and except as otherwise expressly provided in Section (b) of this Article 7, a Business Combination (as hereinafter defined) with, or proposed by or on behalf of, any Interested Shareholder (as hereinafter defined) or any Affiliate
or Associate (as hereinafter defined) of any Interested Shareholder or any person who thereafter would be an Affiliate or Associate of such Interested Shareholder shall require the affirmative vote of not less than sixty-six and two-thirds per cent
of the votes entitled to be cast by the holders of all of the then outstanding Voting Stock (as hereinafter defined), voting together as a single class, excluding Voting Stock beneficially owned by any Interested Shareholder or any Affiliate or
Associate of such Interested Shareholder. Such affirmative vote shall be required notwithstanding the fact that no vote may be required, or that a lesser percentage or separate class vote may be specified, by law or in any agreement with any
national securities exchange or otherwise. 
 (b) The provisions of Section (a) of this Article 7 shall not be applicable
to a Business Combination, and such Business Combination shall require only such affirmative vote, if any, as is required by law or any other provision of these Articles of Incorporation or the By-Laws of the Corporation, or any agreement with any
national securities exchange, which meets all of the conditions specified in either of the following Paragraphs (1) and (2), or, in the case of a Business Combination not involving the payment of consideration to the holders of the
Corporation’s outstanding Capital Stock (as hereinafter defined), which meets the conditions specified in the following Paragraph (1): 
 (1) The Business Combination shall have been approved (whether such approval is made prior to or subsequent to the acquisition of, or announcement or public disclosure of the intention to acquire, beneficial ownership
of the Voting Stock that caused the Interested Shareholder to become an Interested Shareholder), either specifically or as a transaction which is within an approved category of transactions, by the Board of Directors prior to the date on which the
Continuing Directors (as hereinafter defined) comprise less than a majority of the entire Board of Directors. 

 (2) All of the following conditions shall have been met: 
 (A) The aggregate amount of cash and the Fair Market Value (as hereinafter defined), as of the date of the consummation of the Business
Combination, of consideration other than cash to be received per share by holders of Common Stock in such Business Combination shall be at least equal to the higher of the following: 
 (i) (if applicable) the highest per share price (including any brokerage commissions, transfer taxes and soliciting dealers’ fees)
paid by or on behalf of the Interested Shareholder for any share of Common Stock in connection with the acquisition by the Interested Shareholder of beneficial ownership of shares of Common Stock (x) within the two-year period immediately prior
to the first public announcement of the proposed Business Combination (the “Announcement Date”) or (y) in the transaction in which it became an Interested Shareholder, whichever is higher, in either case as adjusted for any subsequent
stock split, stock dividend, subdivision or reclassification with respect to Common Stock; 
 (ii) the Fair Market Value per
share of Common Stock on the Announcement Date or on the date on which the Interested Shareholder became an Interested Shareholder (such latter date is referred to in this Article 7 as the “Determination Date”), whichever is higher, as
adjusted for any subsequent stock split, stock dividend, subdivision or reclassification with respect to Common Stock; and 
 (iii) (if applicable) the price per share equal to the Fair Market Value per share of Common Stock determined pursuant to the immediately preceding clause (ii), multiplied by the ratio of (x) the highest per share price (including any
brokerage commissions, transfer taxes and soliciting dealers’ fees) paid by or on behalf of the Interested Shareholder for any share of Common Stock in connection with the acquisition by the Interested Shareholder of beneficial ownership of
shares of Common Stock within the two-year period immediately prior to the Announcement Date, as adjusted for any subsequent stock split, stock dividend, subdivision or reclassification with respect to Common Stock, to (y) the Fair Market Value
per share of Common Stock, on the first day in such two-year period on which the 

 Interested Shareholder acquired beneficial ownership of any share of Common Stock, as adjusted for any
subsequent stock split, stock dividend, subdivision or reclassification with respect to Common Stock. 
 (B) The aggregate
amount of cash and the Fair Market Value, as of the date of the consummation of the Business Combination, of consideration other than cash to be received per share by holders of shares of any class or series of outstanding Capital Stock, other than
Common Stock, shall be at least equal to the higher of the following: 
 (i) (if applicable) the highest per share price
(including any brokerage commissions, transfer taxes and soliciting dealers’ fees) paid by or on behalf of the Interested Shareholder for any shares of such class or series of Capital Stock in connection with the acquisition by the Interested
Shareholder of beneficial ownership of shares of such class or series of Capital Stock (x) within the two-year period immediately prior to the Announcement Date or (y) in the transaction in which it became an Interested Shareholder,
whichever is higher, in either case as adjusted for any subsequent stock split, stock dividend, subdivision or reclassification with respect to such class or series of Capital Stock; 
 (ii) the Fair Market Value per share of such class or series of Capital Stock on the Announcement Date or on the Determination Date,
whichever is higher, as adjusted for any subsequent stock split, stock dividend, subdivision or reclassification with respect to such class or series of Capital Stock; 
 (iii) (if applicable) the price per share equal to the Fair Market Value per share of such class or series of Capital Stock determined
pursuant to the immediately preceding clause (ii), multiplied by the ratio of (x) the highest per share price (including any brokerage commissions, transfer taxes and soliciting dealers’ fees) paid by or on behalf of the Interested
Shareholder for any share of such class or series of Capital Stock in connection with the acquisition by the Interested Shareholder of beneficial ownership of shares of such class or series of Capital Stock within the two-year period immediately
prior to the Announcement Date, as adjusted for any subsequent stock split, stock dividend, subdivision or reclassification with respect to such class or series of Capital Stock, to (y) the Fair Market Value per share of such class or series of
Capital Stock on the first day 

 in such two-year period on which the Interested Shareholder acquired beneficial ownership of any share
of such class or series of Capital Stock, as adjusted for any subsequent stock split, stock dividend, subdivision or reclassification with respect to such class or series of Capital Stock; and 
 (iv) (if applicable) the highest preferential amount per share to which the holders of shares of such class or series of Capital Stock
would be entitled in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation regardless of whether the Business Combination to be consummated constitutes such an event. 
 The provisions of this Paragraph (2) shall be required to be met with respect to every class or series of outstanding Capital Stock, whether or not
the Interested Shareholder has previously acquired beneficial ownership of any shares of a particular class or series of Capital Stock. 
 (C) The consideration to be received by holders of a particular class or series of outstanding Capital Stock shall be in cash or in the same form as previously has been paid by or on behalf of the Interested
Shareholder in connection with its direct or indirect acquisition of beneficial ownership of shares of such class or series of Capital Stock. If the consideration so paid for shares of any class or series of Capital Stock varied as to form, the form
of consideration for such class or series of Capital Stock shall be either cash or the form used to acquire beneficial ownership of the largest number of shares of such class or series of Capital Stock previously acquired by the Interested
Shareholder. 
 (D) After the Determination Date and prior to the consummation of such Business Combination: (i) there
shall have been no failure to declare and pay at the regular date therefor any full quarterly dividends (whether or not cumulative) payable in accordance with the terms of any outstanding Capital Stock; (ii) there shall have been no reduction
in the annual rate of dividends paid on the Common Stock (except as necessary to reflect any stock split, stock dividend or subdivision of the Common Stock); (iii) there shall have been an increase in the annual rate of dividends paid on the
Common Stock as necessary to reflect any reclassification (including any reverse stock split, recapitalization, reorganization or any similar transaction that has the effect of reducing the number of outstanding shares of the Common Stock); and
(iv) such Interested Shareholder shall have not become the beneficial owner of any additional shares of Capital Stock except as part of the transaction which results in such Interested Shareholder 

 being an Interested Shareholder and except in a transaction that, after giving effect thereto, would not
result in any increase in the Interested Shareholder’s percentage beneficial ownership of any class or series of Capital Stock. 
 (E) A proxy or information statement describing the proposed Business Combination and complying with the requirements of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (the
“Act”) (or any subsequent provisions replacing the Act, rules or regulations) shall be mailed to all shareholders of the Corporation at least thirty days prior to the consummation of such Business Combination (whether or not such proxy or
information statement is required to be mailed pursuant to the Act or subsequent provisions). The proxy or information statement shall contain on the first page thereof, in a prominent place, any statement as to the advisability (or inadvisability)
of the Business Combination that the Continuing Directors, or any of them, may choose to make and, if deemed advisable by a majority of the Continuing Directors, the opinion of an investment banking firm selected by a majority of the Continuing
Directors as to the fairness (or not) of the terms of the Business Combination from a financial point of view to the holders of the outstanding shares of Capital Stock other than the Interested Shareholder and its Affiliates or Associates, such
investment banking firm to be paid a reasonable fee for its services by the Corporation. 
 (F) Such Interested Shareholder
shall not have made any major change in the Corporation’s business or equity capital structure. 
 (c) The following definitions shall
apply with respect to this Article 7: 
 (1) The terms “Affiliate” and “Associate” shall have the
respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as in effect on January 1, 1993 (the term “registrant” in said Rule 12b-2 meaning in this case
the Corporation). 
 (2) A person shall be a “beneficial owner” of any Capital Stock: 
 (A) which such person or any of its Affiliates or Associates beneficially owns, directly or indirectly; or 
 (B) which such person or any of its Affiliates or Associates has, directly or indirectly, (i) the right to acquire (whether such
right is exercisable immediately or only after the passage of time), pursuant to any agreement, arrangement or understanding or upon 

 the exercise of conversion rights, exchange rights, warrants or options, or otherwise, or (ii) the
right to vote pursuant to any agreement, arrangement or understanding; or 
 (C) which is beneficially owned, directly or
indirectly, by any other person with which such person or any of its Affiliates or Associates has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of any shares of Capital Stock. 
 (3) The term “Business Combination” shall mean: 
 (A) any merger or consolidation of the Corporation or any Subsidiary (as hereinafter defined) with (i) any Interested Shareholder or
(ii) any other corporation (whether or not itself an Interested Shareholder) which is, or after such merger or consolidation would be, an Affiliate or Associate of an Interested Shareholder; or 
 (B) any sale, lease, exchange, mortgage, pledge, transfer or other disposition or security arrangement, investment, loan, advance,
guarantee, agreement to purchase, agreement to pay, extension of credit, joint venture participation or other arrangement (in one transaction or a series of transactions) with or for the benefit of any Interested Shareholder or any Affiliate or
Associate of any Interested Shareholder involving any assets, securities or commitments of the Corporation, any Subsidiary or any Interested Shareholder or any Affiliate or Associate of any Interested Shareholder which (except for any arrangement,
whether as employee, consultant or otherwise, other than as a director, pursuant to which any Interested Shareholder or any Affiliate or Associate thereof shall directly or indirectly, have any control over or responsibility for management of any
aspect of the business or affairs of the Corporation, with respect to which arrangements the value tests set forth below shall not apply), together with all such other arrangements (including all contemplated future events), has an aggregate Fair
Market Value and/or involves aggregate commitments of $10,000,000 or more or constitutes five per cent of the book value of the total assets (in the case of transactions involving assets or commitments other than Capital Stock) or five per cent of
the shareholders’ equity (in the case of transactions in Capital Stock) of the entity in question (the “Substantial Part”), as reflected in the most recent fiscal year-end consolidated balance sheet of such entity existing at the time
the shareholders of the Corporation would be required to approve or authorize the Business Combination involving the assets, securities and/or commitments constituting any Substantial Part, except for transactions made in the ordinary course of the
Corporation’s business, consistent with past practices; or 

 (C) the adoption of any plan or proposal for the liquidation or dissolution of the
Corporation; or 
 (D) any reclassification of securities (including any reverse stock split), or recapitalization of the
Corporation, or any merger or consolidation of the Corporation with any of its Subsidiaries or any other transaction (whether or not with or into or otherwise involving an Interested Shareholder) that has the effect, directly or indirectly, of
increasing the proportionate share of the outstanding shares of any class or series of Capital Stock, or any securities convertible into Capital Stock or into equity securities of any Subsidiary, that is beneficially owned by any Interested
Shareholder or any Affiliate or Associate of any Interested Shareholder; or 
 (E) any agreement, contract or other
arrangement providing for any one or more of the actions specified in the foregoing clauses (A) to (D). 
 (4) The term
“Capital Stock” shall mean all capital stock of the Corporation authorized to be issued from time to time under Article 3 of these Articles of Incorporation. 
 (5) In the event of any Business Combination in which the Corporation survives, the phrase “consideration other than cash to be
received” as used in Paragraphs (2)(A) and (2)(B) of Section (b) of this Article 7 shall include the shares of Common Stock and/or the shares of any other class of Capital Stock retained by the holders of such shares. 

(6) The term “Continuing Director” means any member of the Board of Directors, while such person is a member of the Board of
Directors, who is not an Affiliate or Associate or representative of the Interested Shareholder and was a member of the Board of Directors prior to the time that the Interested Shareholder became an Interested Shareholder, and any successor of a
Continuing Director, while such successor is a member of the Board of Directors, who is not an Affiliate or Associate or representative of the Interested Shareholders and is recommended or elected to succeed the Continuing Director by the majority
of Continuing Directors. 
 (7) The term “Fair Market Value” means: (i) in the case of cash, the amount of such
cash; (ii) in the case of stock, the highest closing sale price during the thirty-day period immediately preceding the date in question of a share of such stock on the Composite Tape on the New York Stock Exchange for listed stocks, or if such
stock is not quoted on the Composite Tape on the New York Stock Exchange or if such stock is not 

 listed on such Exchange, on the principal United States securities exchange registered under the
Securities Exchange Act of 1934 on which such stock is listed, or if such stock is not listed on any such exchange, the highest closing bid quotation with respect to a share of such stock during the thirty-day period preceding the date in question
on the National Market System of the National Association of Securities Dealers Automated Quotations System or any similar system then in use, or if no such quotations are available, the fair market value on the date in question of a share of such
stock as determined by a nationally recognized investment banking firm selected by a majority of the Continuing Directors; and (iii) in the case of property other than cash or stock, the fair market value of such property on the date in
question as determined by a nationally recognized investment banking firm selected by a majority of the Continuing Directors. 
 (8) The term “Interested Shareholder” shall mean any person (other than the Corporation or any Subsidiary and other than any profit-sharing, employee stock ownership or other employee benefit plan of the Corporation or any
Subsidiary or any trustee or fiduciary with respect to any such plan when acting in such capacity) who or which: 
 (A) is,
or has announced or publicly disclosed a plan or intention to become, the beneficial owner of Voting Stock representing ten per cent or more of the votes entitled to be cast by the holders of all then outstanding shares of Voting Stock; or

 (B) is an Affiliate or Associate of the Corporation and at any time within the two-year period immediately prior to the
date in question was the beneficial owner of Voting Stock representing ten per cent or more of the votes entitled to be cast by the holders of all then outstanding shares of Voting Stock. 
 For the purpose of determining whether a person is an Interested Shareholder, the number of shares of Capital Stock deemed to be outstanding shall include
shares beneficially owned by such person through application of Paragraph (2) of this Section (c), but shall not include any other shares of Capital Stock which may be issuable pursuant to any agreement, arrangement or understanding, or upon
exercise of conversion rights, warrants or options, or otherwise. 
 (9) The term “person” shall mean any
individual, firm, corporation or other entity and shall include any group comprised of any person and any other person with whom such person or any Affiliate or Associate of such person has any agreement, arrangement or understanding, directly or
indirectly, for the purpose of acquiring, holding, voting or disposing of Capital Stock. 

 (10) The term “Subsidiary” means any corporation of which a majority of any
class of equity security is beneficially owned by the Corporation; provided, however, that for the purposes of the definition of Interested Shareholder set forth in Paragraph (8) of this Section (c), the term “Subsidiary” shall mean
only a corporation of which a majority of each class of equity security is beneficially owned by the Corporation. 
 (11) The
term “Voting Stock” shall mean all Capital Stock which by its terms may be voted on matters submitted to shareholders of the Corporation generally. 
 (d) The Board of Directors shall have the power and duty to determine for the purpose of this Article 7, on the basis of information known
to them after reasonable inquiry, all questions arising under this Article 7, including, without limitation, (1) whether a person is an Interested Shareholder, (2) the number of shares of Capital Stock or other securities beneficially
owned by any person, (3) whether a person is an Affiliate or Associate of another, (4) whether a Proposed Action (as defined in Section (g) of this Article 7) is with, or proposed by, or on behalf of, an Interested Shareholder or an
Affiliate or Associate of an Interested Shareholder, (5) whether the assets that are the subject of any Business Combination have, or the consideration to be received for the issuance or transfer of securities by the Corporation or any
Subsidiary in any Business Combination has, an aggregate Fair Market Value of $10,000,000 or more, and (6) whether the assets or securities that are the subject of any Business Combination constitute a Substantial Part. Any such determination
made in good faith shall be binding and conclusive on all parties. 
 (e) Nothing contained in this Article 7 shall be
construed to relieve any Interested Shareholder from any fiduciary obligation imposed by law. 
 (f) The fact that any
Business Combination complies with the provisions of Section (b) of this Article 7 shall not be construed to impose any fiduciary duty, obligation or responsibility on the Board of Directors, or any member thereof, to approve such Business
Combination or recommend its adoption or approval to the shareholders of the Corporation, nor shall such compliance limit, prohibit or otherwise restrict in any manner the Board of Directors, or any member thereof, with respect to evaluations of or
actions and responses taken with respect to such Business Combination. 
 (g) For the purposes of this Article 7, a
(i) Business Combination, (ii) any proposal to amend or repeal any provision of this Article 7, or (iii) any proposal to amend or repeal any provision of these Articles of Incorporation, or to add any provision to these Articles of
Incorporation, which is inconsistent with this Article 7 (collectively “Proposed Action”) is presumed to have been proposed by, or on behalf of, an Interested Shareholder or an Affiliate or Associate of an Interested Shareholder or a
person who thereafter would become such if (1) after the Interested Shareholder became such, the Proposed Action is proposed following the election of any director of the Corporation who, with respect to such 

 Interested Shareholder, would not qualify to serve as a Continuing Director or (2) such Interested
Shareholder, Affiliate, Associate or person votes for or consents to the adoption of any such Proposed Action, unless as to such Interested Shareholder, Affiliate, Associate or person a majority of the Continuing Directors make a good faith
determination that such Proposed Action is not proposed by or on behalf of such Interested Shareholder, Affiliate, Associate or person, based on information known to them after reasonable inquiry. 
 (h) Notwithstanding any other provisions of these Articles of Incorporation or the Bylaws of the Corporation (and notwithstanding the fact
that a lesser percentage or a separate class vote may be specified by law, these Articles of Incorporation or the Bylaws of the Corporation), any proposal to amend or repeal this Article 7 or to add any provision to these Articles of Incorporation
inconsistent with this Article 7 which is proposed by or on behalf of an Interested Shareholder or an Affiliate or Associate of an Interested Shareholder shall require the affirmative vote of the holders of not less than sixty-six and two-thirds per
cent of the votes entitled to be cast by the holders of all of the outstanding shares of Voting Stock, voting together as a single class, excluding Voting Stock beneficially owned by any Interested Shareholder and any Affiliate or Associate of such
Interested Shareholder; provided, however, that prior to the time such number of persons constituting a quorum of the Board of Directors are nominated by or on behalf of the Interested Shareholder and elected to the Board of Directors, this Section
(h) shall not apply to, and such sixty-six and two-thirds per cent vote shall not be required for, any such amendment, repeal or addition recommended by the Board of Directors prior to the date on which the Continuing Directors comprise less
than a majority of the Board of Directors. 
 (i) The provision of the North Carolina Business Corporation Act entitled
“The North Carolina Shareholder Protection Act” and “The North Carolina Control Share Acquisition Act” shall not be applicable to the Corporation. 
 ARTICLE 8: A director of the Corporation shall not be personally liable to the Corporation or any of its shareholders for monetary damages for any breach of duty as a director, except for liability with respect
to (i) acts or omissions not made in good faith that the director at the time of such breach knew or believed were in conflict with the best interests of the Corporation, (ii) any liability under N.C.G.S. Sec. 55-8-33 (liability for
unlawful distributions), (iii) any transaction from which such director derived an improper personal benefit, or (iv) acts or omissions occurring prior to the date on which this Article 8 became effective. As used herein, the term
“improper personal benefit” does not include a director’s compensation or other incidental benefit for or on account of service as a director, officer, employee, independent contractor, attorney or consultant of the Corporation. If
the North Carolina General Statutes are amended after approval by the Corporation’s shareholders of this Article 8 to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a
director of the Corporation shall be eliminated or limited to the fullest extent permitted by the North Carolina General Statutes, as so amended. No amendment or repeal of the provisions of this Article 8 shall apply to or have any effect on the
liability or alleged liability of any director of the Corporation for or with respect to any act or failure to act 

 on the part of such director occurring prior to such amendment or repeal. The provisions of this Article 8 shall not be
deemed to limit or preclude indemnification of a director by the Corporation for any liability which has not been eliminated by the provisions of this Article 8.

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