2010 Stock Awards and Incentive Plan


 Exhibit 4.2 

SOUTHERN NATIONAL BANCORP OF VIRGINIA, INC. 

2010 STOCK AWARDS AND INCENTIVE PLAN 

I. PURPOSE 

The purpose of the SOUTHERN NATIONAL BANCORP OF VIRGINIA, INC. 2010 STOCK AWARDS AND INCENTIVE PLAN (the “Plan”) is to
provide a means through which Southern National Bancorp of Virginia, Inc., a Virginia corporation (the “Company”), and its Affiliates, may attract able persons to enter the employ of the Company and its Affiliates and to provide a
means whereby those employees and directors, upon whom the responsibilities of the successful administration and management of the Company and its Affiliates rest, and whose present and potential contributions to the welfare of the Company and its
Affiliates are of importance, can acquire and maintain stock ownership, thereby strengthening their concern for the welfare of the Company and its Affiliates and their desire to remain in the Company’s and its Affiliates’ employ. A further
purpose of the Plan is to provide such employees and directors with additional incentive and reward opportunities designed to enhance the profitable growth of the Company. Accordingly, the Plan provides for granting Incentive Stock Options,
Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Performance Awards, Phantom Stock Awards, or any combination of the foregoing, as is best suited to the circumstances of the particular employee or director as provided
herein. 
 II. DEFINITIONS 

The following definitions shall be applicable throughout the Plan unless specifically modified by any paragraph: 

(a) “Affiliate” means any Parent Corporation and any Subsidiary Corporation. 

(b) “Award” means, individually or collectively, any Option, Restricted Stock Award, Phantom Stock Award, Performance Award or
Stock Appreciation Right. 
 (c) “Board” means the Board of Directors of the Company. 

(d) “Change of Control” means the occurrence of any of the following events: (i) the Company shall not be the surviving
entity in any merger, consolidation or other reorganization (or survives only as a subsidiary of an entity other than a previously wholly-owned subsidiary of the Company), (ii) the Company’s subsidiary bank is merged or consolidated into,
or otherwise acquired by, an entity other than a wholly-owned subsidiary of the Company, (iii) the Company sells, leases or exchanges all or substantially all of its assets to any other person or entity (other than a wholly-owned subsidiary of
the Company), (iv) the Company is to be dissolved and liquidated, (v) any person or entity, including a “group” as contemplated by Section 13(d)(3) of the 1934 Act, acquires or gains ownership or control (including, without
limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power), or (vi) as a result of or in connection with a contested election of directors, the persons who were directors
of the Company before such election shall cease to constitute a majority of the Board. Notwithstanding anything herein to the contrary, and only to the extent that an Award is subject to Code Section 409A and would not otherwise comply with
Code Section 409A, a “Change of Control” shall occur only to the extent that the definition of “Change of Control” set forth above may be interpreted to be consistent with Code Section 409A and the applicable Internal
Revenue Service and Treasury Department regulations thereunder. 






 (e) “Change of Control Value” shall mean with respect to a Change of Control
(i) the per share price offered to shareholders of the Company in any merger, consolidation, reorganization, sale of assets or dissolution transaction, (ii) the price per share offered to shareholders of the Company in any tender offer,
exchange offer or sale or other disposition of outstanding voting stock of the Company, or (iii) if such Change of Control occurs other than as described in clause (i) or clause (ii), the Fair Market Value per share of the shares into
which Awards are exercisable, as determined by the Committee, whichever is applicable. In the event that the consideration offered to shareholders of the Company consists of anything other than cash, the Committee shall determine the fair cash
equivalent of the portion of the consideration offered which is other than cash. 
 (f) “Code” means the Internal
Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to any section and any regulations under such section. 

(g) “Committee” means the Compensation Committee of the Board which shall be constituted entirely of not less than two
(2) non-employee directors (within the meaning of Rule 16b-3), each of whom shall be an “outside director,” within the meaning of Code Section 162(m) and applicable interpretive authority thereunder. The Committee shall be
appointed by and serve at the pleasure of the Board. 
 (h) “Company” means Southern National Bancorp of Virginia,
Inc. 
 (i) A “covered employee” means an individual described in Code Section 162(m)(3). 

(j) A “director” means an individual who is serving on the Board or on the board of directors of an Affiliate on the date the
Plan is adopted by the Board or who is elected to the Board or the board of directors of an Affiliate after such date. 
 (k) An
“employee” means any person (including an officer or a director) in an employment relationship with the Company or any Affiliate. 

(l) “Employer” means the Company or an Affiliate. 

(m) “Fair Market Value” means, as of any specified date, the mean of the high and low sales prices of the Stock
(i) reported by any interdealer quotation system on which the Stock is quoted on that date or (ii) if the Stock is listed on a national stock exchange, reported on the stock exchange composite tape on that date; or, in either case, if no
prices are reported on that date, on the last preceding date on which such prices of the Stock are so reported. If the Stock is traded over the counter at the time a determination of its fair market value is required to be made hereunder, its fair
market value shall be deemed to be equal to the average between the reported high and low or closing bid and asked prices of Stock on the most recent date on which Stock was publicly traded. In the event Stock is not publicly traded at the time a
determination of its value is required to be made hereunder, the determination of its fair market value shall be made by the Committee in such manner as it deems appropriate, consistent with Treasury regulations

  

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and other formal Internal Revenue Service guidance under Code Section 409A, with the intent that Options and Stock Appreciation Rights granted under this Plan shall not constitute deferred
compensation subject to Code Section 409A. 
 (n) “Holder” means an individual who has been granted an Award.

 (o) “Incentive Stock Option” means an incentive stock option within the meaning of Code Section 422(b).

 (p) “1934 Act” means the Securities Exchange Act of 1934, as amended. 

(q) “Nonqualified Stock Option” means an option granted under Paragraph VII of the Plan to purchase Stock which does not
constitute an Incentive Stock Option. 
 (r) “Option” means an Award granted under Paragraph VII of the Plan and
includes both Incentive Stock Options to purchase Stock and Nonqualified Stock Options to purchase Stock. 
 (s) “Option
Agreement” means a written agreement between the Company and a Holder with respect to an Option. 
 (t) “Parent
Corporation” means a “parent corporation” of the Company within the meaning of Code Section 424(e). 
 (u)
“Performance Award” means an Award granted under Paragraph X of the Plan. 
 (v) “Performance Award
Agreement” means a written agreement between the Company and a Holder with respect to a Performance Award. 
 (w)
“Phantom Stock Award” means an Award granted under Paragraph XI of the Plan. 
 (x) “Phantom Stock Award
Agreement” means a written agreement between the Company and a Holder with respect to a Phantom Stock Award. 
 (y)
“Plan” means the Southern National Bancorp of Virginia, Inc. 2010 Stock Awards and Incentive Plan, as amended from time to time. 

(z) “Restricted Stock Agreement” means a written agreement between the Company and a Holder with respect to a Restricted Stock
Award. 
 (aa) “Restricted Stock Award” means an Award granted under Paragraph IX of the Plan. 

(bb) “Rule 16b-3” means SEC Rule 16b-3 promulgated under the 1934 Act, as such may be amended from time to time, and any
successor rule, regulation or statute fulfilling the same or a similar function. 
  

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 (cc) “Spread” means, in the case of a Stock Appreciation Right, an amount equal to
the excess, if any, of the Fair Market Value of a share of Stock on the date such right is exercised over the exercise price of such Stock Appreciation Right. 

(dd) “Stock” means the common stock, $0.01 par value of the Company. 

(ee) “Stock Appreciation Right” means an Award granted under Paragraph VIII of the Plan. 

(ff) “Stock Appreciation Rights Agreement” means a written agreement between the Company and a Holder with respect to an Award
of Stock Appreciation Rights. 
 (gg) “Subsidiary Corporation” means a “subsidiary corporation” of the
Company within the meaning of Code Section 424(f). 
 III. EFFECTIVE DATE AND DURATION OF THE PLAN 

This Plan shall be effective on January 28, 2010 which is the date of its adoption by the Board (the “Effective Date”),
subject to the approval of the Plan by the Company’s shareholders within twelve months after the Effective Date. If the Plan is not so approved by the Company’s shareholders, (a) the Plan shall not be effective, and (b) any
grants of Awards under the Plan shall immediately expire and be of no force and effect. No Awards may be exercised or paid prior to the approval of the Plan by the Company’s shareholders. No Awards may be granted under the Plan after the tenth
anniversary of the Effective Date. The Plan shall remain in effect until all Awards granted under the Plan have been satisfied or expired. 

IV. ADMINISTRATION 

(a) Committee. The Plan shall be administered by the Committee. The Committee shall hold its meetings at such times and places as
it may determine. A majority of its members shall constitute a quorum, and all determinations of the Committee shall be made by not less than a majority of its members. Any decision or determination reduced to writing and signed by a majority of the
members shall be fully effective as if it had been made by a majority vote of its members at a meeting duly called and held. The Committee may designate the Secretary of the Company or other Company employees to assist the Committee in the
administration of this Plan, and may grant authority to such persons to execute Award agreements or other documents on behalf of the Committee and the Company. 

(b) Powers. Subject to the provisions of the Plan, the Committee shall have sole authority, in its discretion, to determine which
employees or directors shall receive an Award, the time or times when such Award shall be made, whether an Incentive Stock Option, Nonqualified Option or Stock Appreciation Right shall be granted, the number of shares of Stock which may be issued
under each Option, Stock Appreciation Right or Restricted Stock Award, and the value of each Performance Award and Phantom Stock Award. In making such determinations the Committee may take into account the nature of the services rendered by the
respective employees, their present and potential contributions to the Employer’s success and such other factors as the Committee in its discretion shall deem relevant. The Committee, in its sole discretion, and subject to Code
Section 409A and other applicable laws, may waive 
  

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compliance with any provision of any Award, or any related agreement, may extend the date through which any Award is exercisable, and/or may accelerate the earliest date on which such Award
becomes exercisable, vested, free from restrictions or payable, provided in each case such action does not adversely affect the rights of the Holder without the Holder’s consent. 

(c) Additional Powers. The Committee shall have such additional powers as are delegated to it by the other provisions of the Plan.
Subject to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective agreements executed thereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to carry out the
Plan, and to determine the terms, restrictions and provisions of each Award, including such terms, restrictions and provisions as shall be requisite in the judgment of the Committee to cause designated Options to qualify as Incentive Stock Options,
and to make all other determinations necessary or advisable for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any agreement relating to an Award in the manner and to the extent
it shall deem expedient to carry it into effect. The determinations of the Committee on the matters referred to in this Article IV shall be conclusive. 

(d) Expenses. All expenses and liabilities incurred by the Committee in the administration of this Plan shall be borne by the
Company. The Committee may employ attorneys, consultants, accountants or other persons to assist the Committee in the carrying out of its duties hereunder. 

V. STOCK SUBJECT TO THE PLAN 

(a) Stock Grant and Award Limits. The Committee may from time to time grant Awards to one or more employees or directors
determined by it to be eligible for participation in the Plan in accordance with the provisions of Paragraph VI. Subject to Paragraph XII, the maximum aggregate number of shares of Stock that may be issued under the Plan is 700,000, any or
all of which may be issued through Incentive Stock Options. Shares of Stock shall be deemed to have been issued under the Plan only to the extent actually issued and delivered pursuant to an Award. To the extent that an Award (other than an Award of
Restricted Stock) lapses or is canceled or the rights of its Holder terminate or the Award is settled in cash, any Stock subject to such Award shall again be available for grant under an Award. Should any shares of Restricted Stock be forfeited,
such shares may not again be subject to an Award under the Plan. Any shares of Stock which may remain unissued and which are not subject to outstanding Awards at the termination of this Plan shall cease to be reserved for the purpose of this Plan,
but until termination of this Plan or the termination of the last of the Awards granted under this Plan, whichever last occurs, the Company shall at all times reserve a sufficient number of shares to meet the requirements of this Plan. 

Notwithstanding any provision in the Plan to the contrary, no more than 100,000 shares of Stock may be subject to Options granted under
the Plan to any one individual during any one year period, no more than 100,000 shares of Stock may be subject to Stock Appreciation Rights granted under the Plan to any one individual during any one year period, and no more than 100,000 shares of
Stock may be granted under the Plan as a Restricted Stock Award to any one individual during any one year period. The number of shares of Stock that may be issued to 

 

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individuals as set forth in the preceding sentence shall be subject to adjustment in the same manner as provided in Section XII hereof with respect to shares of Stock subject to Options,
Stock Appreciation Rights or Restricted Stock Awards then outstanding. The limitations set forth in this paragraph shall be applied in a manner which will permit compensation generated under the Plan with respect to “covered employees” to
constitute “performance-based” compensation for purposes of Code Section 162(m), including, without limitation, counting against such maximum number of shares of Stock, to the extent required under Code Section 162(m) and
applicable interpretive authority thereunder, any shares of Stock subject to Options or Stock Appreciation Rights that expire, are canceled or repriced or Restricted Stock Awards that are forfeited. 

(b) Stock Offered. The stock to be offered pursuant to the grant of an Award may be authorized but unissued Stock or Stock
previously issued and outstanding and reacquired by the Company. 
 VI. ELIGIBILITY 

The Committee, in its sole discretion, shall determine who shall receive Awards under the Plan. Awards other than Incentive Stock Options
may be granted to all employees and directors of the Company or its Affiliates, including Affiliates that become such after adoption of the Plan. Incentive Stock Options may be granted to all employees of the Company or its Affiliates, including
Affiliates that become such after adoption of the Plan. A recipient of an Award must be an employee or director at the time the Award is granted. An Award may be granted on more than one occasion to the same person, and, subject to the limitations
set forth in the Plan, such Award may include an Incentive Stock Option or a Nonqualified Stock Option, a Stock Appreciation Right, a Restricted Stock Award, a Performance Award, a Phantom Stock Award or any combination thereof. 

VII. STOCK OPTIONS 

(a) Option Period. The term of each Option shall be as specified by the Committee at the date of grant. 

(b) Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as
determined by the Committee. 
 (c) Special Limitations on Incentive Stock Options. Except as otherwise provided under
the Code or applicable regulations, to the extent that the aggregate Fair Market Value (determined at the time the option is granted) of the Stock with respect to which Incentive Stock Options (determined without regard to this sentence) are
exercisable for the first time by any Holder during any calendar year under all plans of the Company and its Parent Corporation or Subsidiary Corporations exceeds $100,000, such options shall be treated as Nonqualified Stock Options. The Committee
shall determine, in accordance with applicable provisions of the Code, Treasury Regulations and other administrative pronouncements, which of a Holder’s Incentive Stock Options will not constitute Incentive Stock Options because of such
limitation and shall notify the Holder of such determination as soon as practicable after such determination. No Incentive Stock Option shall be granted to an individual if, at the time the Option is granted, such

  

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individual owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its Parent Corporation or Subsidiary Corporation, within the meaning
of Code Section 422(b)(6), unless (i) at the time such Option is granted the exercise price is at least 110% of the Fair Market Value of the Stock subject to the Option and (ii) such Option by its terms is not exercisable after the
expiration of five years from the date of grant. 
 (d) Option Agreement. Each Option shall be evidenced by an Option
Agreement in such form and containing such provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve, including, without limitation, provisions to qualify an Incentive Stock Option under Code
Section 422. An Option Agreement may provide for the payment of the exercise price, in whole or in part, by (i) cash, cashier’s check, bank draft, or postal or express money order payable to the order of the Company, (ii) subject
to the approval by the Committee, certificates representing shares of Stock theretofore owned by the Holder duly endorsed for transfer to the Company, (iii) for Nonqualified Stock Options, an election by the Holder for the Company to issue only
a number of shares of Stock equal to (A) the number of shares with respect to which the Option is being exercised, less (B) a number of shares having an aggregate Fair Market Value as of the date of exercise equal to the aggregate exercise
price, or (iv) any combination of the preceding, equal in value to the full amount of the exercise price. Each Option shall specify the effect of termination of employment or service as a director (by retirement, disability, death or otherwise)
on the exercisability of the Option. An Option Agreement may also include, without limitation, provisions relating to (i) vesting of Options, subject to the provisions hereof accelerating such vesting on a Change of Control, (ii) tax
matters (including provisions (y) permitting the delivery of additional shares of Stock or the withholding of shares of Stock from those acquired upon exercise to satisfy federal or state income tax withholding requirements and (z) dealing
with any other applicable employee wage withholding requirements), and (iii) any other matters not inconsistent with the terms and provisions of this Plan that the Committee shall in its sole discretion determine. The terms and conditions of
the respective Option Agreements need not be identical. 
 (e) Exercise Price and Payment. The price at which a share of
Stock may be purchased upon exercise of an Option shall be determined by the Committee, but (i) such exercise price shall never be less than the Fair Market Value of Stock on the date the Option is granted and (ii) such exercise price
shall be subject to adjustment as provided in Paragraph XII. The Option or portion thereof may be exercised by delivery of an irrevocable notice of exercise to the Company. The exercise price of the Option or portion thereof shall be paid in
full in the manner set forth in the Option Agreement. 
 (f) Shareholder Rights and Privileges. The Holder shall be
entitled to all the privileges and rights of a shareholder only with respect to such shares of Stock as have been purchased under the Option and for which certificates of stock have been registered in the Holder’s name. 

(g) Options and Rights in Substitution for Stock Options Granted by Other Corporations. Options and Stock Appreciation Rights may
be granted under the Plan from time to time in substitution for stock options held by individuals employed by corporations who become employees as a result of a merger or consolidation of the employing corporation with the Company or an Affiliate,
or the acquisition by the Company or an Affiliate of the assets of the 
  

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employing corporation, or the acquisition by the Company or an Affiliate of stock of the employing corporation with the result that such employing corporation becomes a Subsidiary Corporation.

 (h) All Options granted under this Plan are subject to, and may not be exercised before, the approval of this Plan by the
shareholders of the Company prior to the first anniversary date of the Board meeting held to approve this Plan, by the affirmative vote of the holders of a majority of the outstanding shares of the Company present, or represented by proxy, and
entitled to vote at a meeting at which a quorum is present, or by written consent in accordance with the laws of the Commonwealth of Virginia. 

VIII. STOCK APPRECIATION RIGHTS 

(a) Stock Appreciation Rights. A Stock Appreciation Right is the right to receive an amount equal to the Spread with respect to a
share of Stock upon the exercise of such Stock Appreciation Right. Stock Appreciation Rights may be granted in connection with the grant of an Option, in which case the Option Agreement will provide that exercise of Stock Appreciation Rights will
result in the surrender of the right to purchase the shares under the Option as to which the Stock Appreciation Rights were exercised. Alternatively, Stock Appreciation Rights may be granted independently of Options in which case each Award of Stock
Appreciation Rights shall be evidenced by a Stock Appreciation Rights Agreement which shall contain such terms and conditions as may be approved by the Committee. The Spread with respect to a Stock Appreciation Right may be payable either in cash,
shares of Stock with a Fair Market Value equal to the Spread or in a combination of cash and shares of Stock. With respect to Stock Appreciation Rights that are subject to Section 16 of the 1934 Act, however, the Committee shall, except as
provided in Paragraph XII(c), retain sole discretion (i) to determine the form in which payment of the Stock Appreciation Right will be made (i.e., cash, securities or any combination thereof) or (ii) to approve an election by
a Holder to receive cash in full or partial settlement of Stock Appreciation Rights. Each Stock Appreciation Rights Agreement shall specify the effect of termination of employment or service as a director (by retirement, disability, death or
otherwise) on the exercisability of the Stock Appreciation Rights. 
 (b) Other Terms and Conditions. At the time of such
Award, the Committee may, in its sole discretion, prescribe additional terms, conditions or restrictions relating to Stock Appreciation Rights. Such additional terms, conditions or restrictions shall be set forth in the Stock Appreciation Rights
Agreement made in conjunction with the Award. Such Stock Appreciation Rights Agreements may also include, without limitation, provisions relating to (i) vesting of Awards, subject to the provisions hereof accelerating vesting on a Change of
Control, (ii) tax matters (including provisions covering applicable wage withholding requirements), and (iii) any other matters not inconsistent with the terms and provisions of this Plan, that the Committee shall in its sole discretion
determine. The terms and conditions of the respective Stock Appreciation Rights Agreements need not be identical. 
 (c)
Exercise Price. The exercise price of each Stock Appreciation Right shall be determined by the Committee, but such exercise price (i) shall never be less than the Fair Market Value of a share of Stock on the date the Stock Appreciation
Right is granted (or such greater exercise price as may be required if such Stock Appreciation Right is granted in connection with 

 

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an Incentive Stock Option that must have an exercise price equal to 110% of the Fair Market Value of the Stock on the date of grant pursuant to Paragraph VII(c)) and (ii) shall be subject to
adjustment as provided in Paragraph XII. 
 (d) Exercise Period. The term of each Stock Appreciation Right shall be
as specified by the Committee at the date of grant. 
 (e) Limitations on Exercise of Stock Appreciation Right. A Stock
Appreciation Right shall be exercisable in whole or in such installments and at such times as determined by the Committee. 

IX. RESTRICTED STOCK AWARDS 

(a) Forfeiture Restrictions to be Established by the Committee. Shares of Stock that are the subject of a Restricted Stock Award
shall be subject to restrictions on disposition by the Holder and an obligation of the Holder to forfeit and surrender the shares to the Company under certain circumstances (the “Forfeiture Restrictions”). The Forfeiture
Restrictions shall be determined by the Committee in its sole discretion and set forth in the Restricted Stock Agreement, and the Committee may provide that the Forfeiture Restrictions shall lapse upon (i) the attainment of one or more
performance goals established by the Committee that are based on (1) the price of a share of Stock, (2) the Company’s earnings per share, (3) the Company’s net earnings, (4) the return on shareholders’ equity
achieved by the Company, (5) the Company’s return on assets, (6) the Company’s net interest margin, or (7) the Company’s efficiency ratio, (ii) the Holder’s continued employment with the Employer for a
specified period of time, or (iii) a combination of the factors listed in clauses (i) and (ii) of this sentence. Each Restricted Stock Award may have different Forfeiture Restrictions, in the discretion of the Committee. The
Forfeiture Restrictions applicable to a particular Restricted Stock Award shall not be changed except as permitted by Paragraph IX(b) or Paragraph XII. 

(b) Other Terms and Conditions. Stock awarded pursuant to a Restricted Stock Award shall be represented by a
stock certificate registered in the name of the Holder of such Restricted Stock Award. Unless otherwise provided in the Restricted Stock Agreement, the Holder shall have the right to receive dividends with respect to Stock subject to a Restricted
Stock Award, to vote Stock subject thereto and to enjoy all other shareholder rights, except that (i) the Holder shall not be entitled to delivery of the stock certificate until the Forfeiture Restrictions shall have expired, (ii) the
Company shall retain custody of the Stock until the Forfeiture Restrictions shall have expired, (iii) the Holder may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Stock until the Forfeiture Restrictions shall
have expired, and (iv) a breach of the terms and conditions established by the Committee pursuant to the Restricted Stock Agreement shall cause a forfeiture of the Restricted Stock Award. Unless otherwise provided in a Restricted Stock
Agreement, dividends payable with respect to a Restricted Stock Award will be paid to a Holder in cash on the day on which the corresponding dividend on shares of Stock is paid to shareholders, or as soon as administratively practicable thereafter,
but in no event later than the fifteenth (15th) day
of the third calendar month following the day on which the corresponding dividend on shares of Stock is paid to shareholders. The Committee may provide in a Restricted Stock Agreement that payment of dividends with respect to a Restricted Stock
Award shall be subject to the attainment of one or more performance goals established by the Committee that are based on the criteria set forth in paragraph (a) above. 

 

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 At the time of such Award, the Committee may, in its sole discretion, prescribe additional
terms, conditions or restrictions relating to Restricted Stock Awards, including, but not limited to, rules pertaining to the termination of employment or service as a director (by retirement, disability, death or otherwise) of a Holder prior to
expiration of the Forfeiture Restrictions. Such additional terms, conditions or restrictions shall be set forth in a Restricted Stock Agreement made in conjunction with the Award. Such Restricted Stock Agreement may also include, without limitation,
provisions relating to (i) vesting of Awards, subject to any provisions hereof accelerating vesting on a Change of Control, (ii) tax matters (including provisions (y) covering any applicable employee wage withholding requirements and
(z) requiring or prohibiting an election by the Holder under Code Section 83(b)), and (iii) any other matters not inconsistent with the terms and provisions of this Plan that the Committee shall in its sole discretion determine. A
Restricted Stock Award granted to a “covered employee” that is intended to constitute “performance-based” compensation under Code Section 162(m) may provide for vesting of the Award prior to the attainment of the applicable
performance goals only upon death or disability of the Holder or a Change of Control. The terms and conditions of the respective Restricted Stock Agreements need not be identical. 

(c) Payment for Restricted Stock. The Committee shall determine the amount and form of any payment for Stock received pursuant to
a Restricted Stock Award, provided that in the absence of such a determination, a Holder shall not be required to make any payment for Stock received pursuant to a Restricted Stock Award, except to the extent otherwise required by law. 

(d) Agreements. At the time any Award is made under this Paragraph IX, the Company and the Holder shall enter into a
Restricted Stock Agreement setting forth each of the matters as the Committee may determine to be appropriate. The terms and provisions of the respective Restricted Stock Agreements need not be identical. 

(e) Certification. With respect to a Restricted Stock Award granted to a “covered employee” that is intended to
constitute “performance-based” compensation under Code Section 162(m), if the lapse of the Forfeiture Restrictions imposed upon such Restricted Stock Award, or the payment of dividends with respect to such Restricted Stock Award, is
conditioned in whole or in part on the attainment of performance goals, the Committee shall certify in writing that such performance goals and any other conditions on the lapse of Forfeiture Restrictions or payment of dividends have been satisfied
prior to vesting the Award or paying such dividends. 
 X. PERFORMANCE AWARDS 

(a) Performance Period. The Committee shall establish, with respect to and at the time of grant of each Performance Award, a
performance period over which the performance of the Holder shall be measured. 
 (b) Performance Awards. Each
Performance Award shall have a maximum value established by the Committee at the time of such Award. 
  

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 (c) Performance Measures. Prior to or upon the commencement of each performance
period (or at such later time as may be permitted for qualified performance-based compensation under Section 162(m) and the regulations thereunder), the Committee shall establish written performance goals for each Performance Award granted to a
Holder for such performance period. The performance goals shall be based on one or more of the following criteria: (1) the price of a share of Stock, (2) the Company’s earnings per share, (3) the Company’s net earnings,
(4) the return on shareholders’ equity achieved by the Company, (5) the Company’s return on assets, (6) the Company’s net interest margin, or (7) the Company’s efficiency ratio. 

At the time of establishing the performance goals, the Committee shall specify (i) the formula to be used in calculating the
compensation payable to a Holder if the performance goals are obtained, and (ii) the individual employee or class of employees to which the formula applies. The Committee may also specify a minimum acceptable level of achievement of the
relevant performance goals, as well as one or more additional levels of achievement, and a formula to determine the percentage of the Performance Award deemed to have been earned by the Holder upon attainment of each such level of achievement, which
percentage may exceed 100%. The performance goals and amount of each Performance Award need not be the same as those relating to any other Performance Award, whether made at the same or a different time. Notwithstanding the terms of any Performance
Award, the maximum payout under this Plan pursuant to a Performance Award to any individual for any calendar year shall not exceed $500,000. 

Notwithstanding the terms of any Performance Award, the Committee, in its sole and absolute discretion, may reduce the amount of the
Performance Award payable to any Holder for any reason, including the Committee’s judgment that the performance goals have become an inappropriate measure of achievement, a change in the employment status, position or duties of the Holder,
unsatisfactory performance of the Holder, or the Holder’s service for less than the entire performance period. Notwithstanding the foregoing, the reduction of a Performance Award payable to a Holder may not result in an increase in the amount
of a Performance Award payable to another Holder. 
 (d) Awards Criteria. In determining the value of Performance Awards,
the Committee shall take into account a Holder’s responsibility level, contributions, performance, potential, other Awards and such other considerations as it deems appropriate. 

(e) Certification. Promptly after the date on which the necessary information for a particular performance period becomes
available, the Committee shall determine, and certify in writing (with respect to each Holder who is a “covered employee”), the extent to which the Performance Award for such performance period has been earned, through the achievement of
the relevant performance goals, by each Holder for such performance period. 
 (f) Payment. After the Committee has
determined and certified in writing (if required with respect to a “covered employee”) the extent to which a Performance Award has been earned, the Holder of a Performance Award shall be entitled to receive payment of an amount, not
exceeding the maximum value of the Performance Award, based on the achievement of the performance measures for such performance period, as determined by the Committee. Payment of a Performance Award will be made in the calendar year immediately
following the 
  

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calendar year in which the performance period ends, and may be made in cash, Stock or a combination thereof, as determined by the Committee. Payment shall be made in a lump sum. Any payment to be
made in Stock shall be based on the Fair Market Value of the Stock on the payment date. 
 (g) Termination of Employment or
Service. A Performance Award shall terminate if the Holder does not remain continuously in the employ of the Employer or in service as a director of the Company or its Affiliates at all times during the applicable performance period, except as
may be determined by the Committee or as may otherwise be provided in the Award at the time granted. 
 (h) Agreements.
At the time any Award is made under this Paragraph X, the Committee may require the Holder to enter into a Performance Award Agreement with the Company setting forth each of the matters contemplated hereby, and, in addition, matters similar to
those set forth in Paragraph IX(b) as the Committee may determine to be appropriate. The terms and provisions of the respective agreements need not be identical. 

XI. PHANTOM STOCK AWARDS 

(a) Phantom Stock Awards. Phantom Stock Awards are rights to receive shares of Stock (or cash in an amount equal to the Fair
Market Value thereof), or rights to receive an amount equal to any appreciation in the Fair Market Value of Stock (or portion thereof) over a specified period of time, which vest over a period of time or upon the occurrence of an event (including
without limitation a Change of Control) as established by the Committee, without payment of any amounts by the Holder thereof (except to the extent otherwise required by law) or satisfaction of any performance criteria or objectives. Each Phantom
Stock Award shall have a maximum value established by the Committee at the time of such Award. 
 (b) Award Period. The
Committee shall establish, with respect to and at the time of each Phantom Stock Award, a period over which or the event upon which the Award shall vest with respect to the Holder. 

(c) Awards Criteria. In determining the value of Phantom Stock Awards, the Committee shall take into account an employee’s
responsibility level, performance, potential, other Awards and such other considerations as it deems appropriate. 
 (d)
Payment. Following the end of the vesting period for a Phantom Stock Award, but in no event later than March 15 of the calendar year immediately following the calendar year in which the vesting period ends, the Holder of a Phantom Stock
Award shall be entitled to receive payment of an amount, not exceeding the maximum value of the Phantom Stock Award, based on the then vested value of the Award. Payment of a Phantom Stock Award may be made in cash, Stock or a combination thereof as
determined by the Committee. Payment shall be made in a lump sum. Any payment to be made in Stock shall be based on the Fair Market Value of the Stock on the payment date. Cash dividend equivalents may be paid during or after the vesting period with
respect to a Phantom Stock Award, as determined by the Committee, in a lump sum payment no later than March 15 of the calendar year immediately following the calendar year in which the Holder vests in such dividend equivalent. 

 

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 (e) Termination of Employment or Service. A Phantom Stock Award shall terminate if
the Holder does not remain continuously in the employ of the Employer or in service as a director of the Company or its Affiliates at all times during the applicable vesting period, except as may be determined by the Committee or as may otherwise be
provided in the Award at the time granted. 
 (f) Agreements. At the time any Award is made under this Paragraph XI,
the Company and the Holder shall enter into a Phantom Stock Award Agreement setting forth each of the matters contemplated hereby and, in addition, matters similar to those set forth in Paragraph IX(b) as the Committee may determine to be
appropriate. The terms and provisions of the respective agreements need not be identical. 
 XII. RECAPITALIZATION OR
REORGANIZATION 
 (a) The shares with respect to which Awards may be granted are shares of Stock as presently constituted,
but if, and whenever, prior to the expiration of an Award theretofore granted, the Company shall effect a subdivision or consolidation by the Company, the number of shares of Stock with respect to which such Award may thereafter be exercised or
satisfied, as applicable, (i) in the event of an increase in the number of outstanding shares shall be proportionately increased, and the exercise price per share of an Option or Stock Appreciation Right shall be proportionately reduced, and
(ii) in the event of a reduction in the number of outstanding shares shall be proportionately reduced, and the exercise price per share of an Option or Stock Appreciation Right shall be proportionately increased. 

(b) If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any exercise or satisfaction, as applicable,
of an Award theretofore granted the Holder shall be entitled to (or entitled to purchase, if applicable) under such Award, in lieu of the number of shares of Stock then covered by such Award, the number and class of shares of stock and securities to
which the Holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the Holder had been the holder of record of the number of shares of Stock then covered by such Award. 

(c) In the event of a Change of Control, all outstanding Awards shall immediately vest and become exercisable or satisfiable, as
applicable, and the Committee, in its discretion, may take any other action with respect to outstanding Awards that it deems appropriate, which action may vary among Awards granted to individual Holders; provided, however, that such action shall not
reduce the value of an Award. In particular, with respect to Options, the actions the Committee may take upon a Change of Control include, but are not limited to, the following: (i) accelerating the time at which Options then outstanding may be
exercised so that such Options may be exercised in full for a limited period of time on or before a specified date (before or after such Change of Control) fixed by the Committee, after which specified date all unexercised Options and all rights of
Holders thereunder shall terminate, (ii) requiring the mandatory surrender to the Company by selected Holders of some or all of the outstanding Options held by such Holders (irrespective of whether such Options are then exercisable) as of a
date, before or after such Change of Control, specified by the Committee, in which event the Committee shall thereupon cancel such Options and the Company shall pay to each such Holder an amount of cash per share equal to the excess, if any, of the
Change of Control Value of the 
  

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shares subject to such Option over the exercise price(s) under such Options for such shares, (iii) make such adjustments to Options then outstanding as the Committee deems appropriate to
reflect such Change of Control (provided, however, that the Committee may determine in its sole discretion that no adjustment is necessary to Options then outstanding), or (iv) provide that the number and class of shares of Stock covered by an
Option theretofore granted shall be adjusted so that such Option shall thereafter cover the number and class of shares of Stock or other securities or property (including, without limitation, cash) to which the Holder would have been entitled
pursuant to the terms of the agreement of merger, consolidation or sale of assets and dissolution if, immediately prior to such merger, consolidation or sale of assets and dissolution, the Holder had been the holder of record of the number of shares
of Stock then covered by such Option. The provisions contained in this paragraph shall not terminate any rights of the Holder to further payments pursuant to any other agreement with the Company following a Change of Control. 

(d) In the event of changes in the outstanding Stock by reason of recapitalization, reorganizations, mergers, consolidations,
combinations, exchanges or other relevant changes in capitalization occurring after the date of the grant of any Award and not otherwise provided for by this Paragraph XII, any outstanding Awards and any agreements evidencing such Awards shall
be subject to adjustment by the Committee at its discretion as to the number and price of shares of Stock or other consideration subject to such Awards. In the event of any such change in the outstanding Stock, the aggregate number of shares
available under the Plan may be appropriately adjusted by the Committee, whose determination shall be conclusive. 
 (e) The
existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the
Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease,
exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding. 
 (f) Any
adjustment provided for in Subparagraphs (a), (b), (c) or (d) above shall be subject to any required shareholder action. 

(g) Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or securities convertible into
shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares of obligations of the Company convertible into such shares or other
securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the exercise price per share, if
applicable. 
 XIII. AMENDMENT AND TERMINATION OF THE PLAN 

(a) The Board in its discretion may terminate the Plan at any time with respect to any shares for which Awards have not theretofore been
granted. The Board shall have the right to alter or amend the Plan or any part thereof from time to time; provided that, except as provided 

 

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herein or in an agreement governing an Award, no change in any Award theretofore granted may be made which would impair the rights of the Holder without the consent of the Holder (unless such
change is required in order to cause the benefits under the Plan to qualify as performance-based compensation within the meaning of Code Section 162(m), if applicable, and applicable interpretive authority thereunder), and provided, further,
that the Board may not amend the Plan without approval of the shareholders if such approval is required to comply with Rule 16b-3, if applicable, any rule of any stock exchange or automated quotation system on which Stock may then be listed or
quoted, or any applicable provisions of the Code or other laws. 
 XIV. MISCELLANEOUS 

(a) No Right to An Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall be
deemed to give an employee or director any right to be granted an Award to purchase Stock, a right to a Stock Appreciation Right, a Restricted Stock Award, a Performance Award or a Phantom Stock Award or any of the rights hereunder except as may be
evidenced by an Award or by an Option Agreement, Stock Appreciation Rights Agreement, Restricted Stock Agreement, Performance Award Agreement or Phantom Stock Award Agreement on behalf of the Company, and then only to the extent and on the terms and
conditions expressly set forth therein. 
 (b) Rights Unsecured. The right of an employee or director to receive Stock,
cash or any other payment under this Plan shall be an unsecured claim against the general assets of the Company. The Company may, but shall not be obligated to, acquire shares of Stock from time to time in anticipation of its obligations under this
Plan, but a Holder shall have no right in or against any shares of Stock so acquired. All Stock shall constitute the general assets of the Company and may be disposed of by the Company at such time and for such purposes as it deems appropriate. The
Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of funds or assets to assure the payment of any Award. 

(c) No Employment Rights Conferred. Nothing contained in the Plan shall (i) confer upon any individual any right with respect
to continuation of employment or service with any Employer or (ii) interfere in any way with the right of any Employer to terminate an individual’s employment or service at any time. Any questions as to whether and when there has been a
termination of employment or service and the cause of such termination shall be determined by the Committee, and its determination shall be final. 

(d) Other Laws; Withholding. The Company shall not be obligated to issue any Stock pursuant to any Award granted under the Plan at
any time when the shares covered by such Award have not been registered under the Securities Act of 1933 and such other state and federal laws, rules or regulations as the Company or the Committee deems applicable and, in the opinion of legal
counsel for the Company, there is no exemption from the registration requirements of such laws, rules or regulations available for the issuance and sale of such shares. Unless the Awards and Stock covered by this Plan have been registered under the
Securities Act of 1933, or the Company has determined that such registration is unnecessary, each Holder exercising an Award under this Plan may be required by the Company to give representation in writing that such Holder is acquiring such shares
for his or her own account for investment and not with a 
  

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view to, or for sale in connection with, the distribution of any part thereof. No fractional shares of Stock shall be delivered, nor shall any cash in lieu of fractional shares be paid. The
Company shall have the right to deduct in connection with all Awards any taxes required by law to be withheld and to require any payments required to enable it to satisfy its withholding obligations. 

(e) No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company, an Affiliate or
any subsidiary from taking any corporate action which is deemed by the Company, an Affiliate or any subsidiary to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any Award made under the
Plan. No employee, director, beneficiary or other person shall have any claim against the Company, an Affiliate or any subsidiary as a result of any such action. 

(f) Restrictions on Transfer. An Award shall not be transferable otherwise than by will or the laws of descent and distribution
and shall be exercisable during the Holder’s lifetime only by such Holder or the Holder’s guardian or legal representative. 

(g) Beneficiary Designation. Each Holder may name, from time to time, any beneficiary or beneficiaries (who may be named
contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each designation will revoke all prior designations by the same Holder, shall be in a
form prescribed by the Committee, and will be effective only when filed by the Holder in writing with the Committee during his lifetime. In the absence of any such designation, benefits remaining unpaid at the Holder’s death shall be paid to
his estate. 
 (h) Rule 16b-3. It is intended that the Plan and any grant of an Award made to a person subject to
Section 16 of the 1934 Act meet all of the requirements of Rule 16b-3. If any provision of the Plan or any such Award would disqualify the Plan or such Award under, or would otherwise not comply with, Rule 16b-3, such provision or
Award shall be construed or deemed amended to conform to Rule 16b-3. 
 (i) Section 162(m). If the Company is
subject to Code Section 162(m), it is intended that the Plan comply fully with and meet all the requirements of Code Section 162(m) so that Awards may, if intended, constitute “performance-based” compensation within the meaning
of such section. If any provision of the Plan would disqualify the Plan or would not otherwise permit the Plan to comply with Code Section 162(m) as so intended, such provision shall be construed or deemed amended to conform to the requirements
or provisions of Code Section 162(m); provided that no such construction or amendment shall have an adverse effect on the economic value to a Holder of any Award previously granted hereunder. 

(j) Code Section 409A. It is intended that any grant of an Award to which Code Section 409A is applicable shall satisfy
all of the requirements of such Code section and the applicable regulations issued thereunder to the extent necessary. 
 (k)
Indemnification. Each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by him in connection with or resulting from any claim, action, suit, or proceeding to which he may 

 

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be a party or in which he may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him in settlement thereof, with the
Company’s approval, or paid by him in satisfaction of any judgment in any such action, suit, or proceeding against him, provided he shall give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to
handle and defend it on his own behalf. The foregoing right of indemnification shall not be exclusive of any other rights or indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a
matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
 (l) Governing
Law. This Plan shall be construed in accordance with the laws of the Commonwealth of Virginia. 
  

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