On April 6, 2021, MainStreet Bancshares, Inc. entered into a Subordinated Note Purchase Agreement with the purchasers signatory thereto providing for a private placement of $30.0 million in aggregate principal amount of 3.75% Fixed-to-Floating Rate Subordinated Notes Due 2031. The Notes were issued by the Company to the purchasers at a price equal to 100% of their face amount. Interest on the Notes will accrue from April 6, 2021, and the Company will pay interest semi-annually on April 15 and October 15 of each year, beginning October 15, 2021, until the Notes mature. Except as provided below, the Notes will bear interest at a fixed rate of 3.75% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months, from and including April 6, 2021 to, but excluding, April 15, 2026. From and including April 15, 2026, but excluding the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month term SOFR plus 302 basis points. The Notes may not be redeemable by the Company, in whole or in part, prior to April 15, 2026. From and after April 15, 2026, The Company may redeem the Notes, in whole or in part, at an amount equal to 100% of the outstanding principal amount being redeemed (plus accrued but unpaid interest) to but excluding the redemption date. Any such redemption shall be subject to receipt of any and all required federal and state regulatory approvals or non-objections, including, but not limited to, the consent of the Federal Reserve. The Notes may also be redeemed by the Company at any time after the occurrence of an event that would preclude the Notes from being included in the Tier 2 Capital of the Company.