SEVERANCE AGREEMENT AND RELEASE
THOMAS J. CHMELIK, MILLENNIUM BANKSHARES CORPORATION and MILLENNIUM BANK,
N.A. have reached the following Agreement. In this Agreement, "Employee" refers to Thomas J. Chmelik. The
"Bank" refers to Millennium Bankshares Corporation and Millennium Bank, N.A., collectively.
The Bank agrees to accept employee's resignation of employment and to pay Employee twelve weeks of salary
continuation and all unused vacation pay (156.00 hours) at Employee's last regular rate of pay. Employee may
continue to participate in his current health insurance plan under the same conditions as his last day of
employment through this twelve-week salary continuation period. This period will not count against his COBRA
Employee understands that the Bank will deduct appropriate federal withholding taxes and other payroll
deductions the Bank is required by law to make from wage payments to employees. Employee further
understands that these sums represent final compensation and benefits that the Employee is entitled to receive
from the Bank, except for payments from ERISA retirement benefits to which Employee may be entitled under
the Bank's standard retirement program. Employee will receive no further wage, vacation or other similar
payments from the Bank.
2. Date of Payment; No Obligation to Make Payment under Normal Policies.
Payment of the amount described in the First Paragraph will be made after the expiration of seven days after
Employee's signature on this Agreement and will be paid in the regular pay periods currently in effect at the Bank.
Employee agrees that this payment is an exception to the amount the Bank is required to pay under its normal
policies and procedures.
3. Extension of Time To Exercise Stock Options.
The parties acknowledge that as a participant in the Bank's stock option plan, Employee has the right and option
to purchase all or any part of an aggregate of 31,600 currently vested shares of common stock of