Document:

Filed by Bowne Pure Compliance

 

EXHIBIT 4.5

WARRANT AGREEMENT

Agreement made as of June 8, 2006 between Community Bankers Acquisition Corp., a Delaware
corporation, with offices at 717 King Street, Alexandria, Virginia 22314, (the “Company”), and
Continental Stock Transfer & Trust Company, a New York corporation, with offices at 17 Battery
Place, 8th Floor, New York, New York 10004 (the “Warrant Agent”).

WHEREAS, the Company is engaged in a public offering (the “Public Offering”) of Units (the
“Units”) and, in connection therewith, has determined to issue and deliver up to (i) 7,500,000
Warrants (the “Public Warrants”) to the public investors, (ii) up to an additional 1,125,000 Public
Warrants in the event the Underwriters’ over-allotment option is exercised and (iii) an aggregate
of 525,000 Warrants to I-Bankers Securities Incorporated (the “Representative”) or its designees
(the “Representatives’ Warrants” and, together with the Public Warrants, the “Warrants”), each of
such Public Warrants evidencing the right of the holder thereof to purchase one share of common
stock, par value $0.01 per share (the “Common Stock”), for $5.00, subject to adjustment as
described herein; and

WHEREAS, the Company has filed with the Securities and Exchange Commission a Registration
Statement, No. 333-124240 on Form S-1, as amended (the “Registration Statement”), for the
registration, under the Securities Act of 1933, as amended (the “Act”) of, among other securities,
the Warrants and the Common Stock issuable upon exercise of the Warrants; and

WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, registration, transfer,
exchange, redemption and exercise of the Warrants; and

WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms
upon which they shall be issued and exercised, and the respective rights, limitation of rights, and
immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

WHEREAS, all acts and things have been done and performed which are necessary to make the
Warrants, when executed on behalf of the Company and countersigned by or on behalf of the Warrant
Agent, as provided herein, the valid, binding and legal obligations of the Company, and to
authorize the execution and delivery of this Agreement.

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as
agent for the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and
agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.

 

 

 

2. Warrants.

2.1 Form of Warrant. Each Warrant shall be issued in registered form only, shall be in
substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and
shall be signed by, or bear the facsimile signature of, the Chairman of the Board or President and
Treasurer, Secretary or Assistant Secretary of the Company and shall bear a facsimile of the
Company’s seal. In the event the person whose facsimile signature has been placed upon any Warrant
shall have ceased to serve in the capacity in which such person signed the Warrant before such
Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such
at the date of issuance.

2.2 Effect of Countersignature. Unless and until countersigned by the Warrant Agent pursuant
to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the
holder thereof.

2.3 Registration.

2.3.1 Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”), for
the registration of original issuance and the registration of transfer of the Warrants. Upon the
initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the
names of the respective holders thereof in such denominations and otherwise in accordance with
instructions delivered to the Warrant Agent by the Company.

2.3.2 Registered Holder. Prior to due presentment for registration of transfer of any
Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant
shall be registered upon the Warrant Register (the “registered holder”), as the absolute owner of
such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or
other writing on the Warrant Certificate made by anyone other than the Company or the Warrant
Agent), for the purpose of any exercise thereof, and for all other purposes, and neither the
Company nor the Warrant Agent shall be affected by any notice to the contrary.

2.4 Detachability of Warrants. The securities comprising the Units will not be separately
transferable until 90 days after the date hereof unless I-Bankers, on behalf of the
Representatives, informs the Company of the Representatives’ decision to allow earlier separate
trading, but in no event will the Representatives allow separate trading of the securities
comprising the Units until the Company files a Current Report on Form 8-K which includes an audited
balance sheet reflecting the receipt by the Company of the gross proceeds of the Public Offering
including the proceeds received by the Company from the exercise of the Underwriters’
over-allotment option, if the over-allotment option is exercised prior to the filing of the Form
8-K.

2.5 Warrants and Representatives’ Warrants. The Representatives’ Warrants shall have the same
terms and be in the same form as the Public Warrants except with respect to the Warrant Price as
set forth below in Section 3.1.

 

-2-

 

3. Terms and Exercise of Warrants

3.1 Warrant Price. Each Public Warrant shall, when countersigned by the Warrant Agent,
entitle the registered holder thereof, subject to the provisions of such Public Warrant and of this
Warrant Agreement, to purchase from the Company the number of shares of Common Stock stated
therein, at the price of $5.00 per whole share, subject to the adjustments provided in Section 4
hereof and in the last sentence of this Section 3.1. Each Representatives’ Warrant shall, when
countersigned by the Warrant Agent, entitle the registered holder thereof, subject to the
provisions of such Representatives’ Warrant and of this Warrant Agreement, to purchase from the
Company the number of shares of Common Stock stated therein, at the price of $7.50 per whole share,
subject to the adjustments provided in Section 4 hereof. The term “Warrant Price” as used in this
Warrant Agreement refers to the price per share at which Common Stock may be purchased at the time
a Warrant is exercised. The Company in its sole discretion may lower the Warrant Price at any time
prior to the Expiration Date.

3.2 Duration of Warrants. A Warrant may be exercised only during the period (the “Exercise
Period”) commencing on the later of the consummation by the Company of a merger, capital stock
exchange, asset acquisition or other similar business combination (the “Business Combination”) (as
described more fully in the Company’s Registration Statement) or June 4, 2007, and terminating at
5:00 p.m., New York City time on the earlier to occur of (i) June 4, 2011 or (ii) the date fixed
for redemption of the Warrants as provided in Section 6 of this Agreement (the “Expiration Date”).
Except with respect to the right to receive the Redemption Price (as set forth in Section 6
hereunder), each Warrant not exercised on or before the Expiration Date shall become void, and all
rights thereunder and all rights in respect thereof under this Agreement shall cease at the close
of business on the Expiration Date. The Company in its sole discretion may extend the duration of
the Warrants by delaying the Expiration Date.

3.3 Exercise of Warrants.

3.3.1 Payment. Subject to the provisions of the Warrant and this Warrant Agreement, a
Warrant, when countersigned by the Warrant Agent, may be exercised by the registered holder thereof
by surrendering it, at the office of the Warrant Agent, or at the office of its successor as
Warrant Agent, in the Borough of Manhattan, City and State of New York, with the subscription form,
as set forth in the Warrant, duly executed, and (i) by paying in full, in lawful money of the
United States, in cash, good certified check or good bank draft payable to the order of the Company
(or as otherwise agreed to by the Company), the Warrant Price for each full share of Common Stock
as to which the Warrant is exercised and any and all applicable taxes due in connection with the
exercise of the Warrant, the exchange of the Warrant for the Common Stock, and the issuance of the
Common Stock or (ii) in the event the Company has called the Warrants for redemption pursuant to
Section 6 hereof and has given notice that it has elected to permit the exercise of the Warrants on
a “cashless basis,” by surrendering his or her Warrant for that number of shares of Common Stock
equal to the quotient obtained by dividing (x) the product of the number of shares of Common Stock
underlying the Warrant, multiplied by the difference between the Warrant Price and the “Fair Market
Value” (defined below) by (y) the Fair Market Value. The “Fair Market Value” shall mean the
average reported last sale price of the Common Stock for the 10 trading days ending on the third
trading day prior to the date on which the notice of redemption is sent to holders of Warrants pursuant to
Section 6 hereof.

 

-3-

 

3.3.2 Issuance of Certificates. As soon as practicable after the exercise of any Warrant and
the clearance of the funds in payment of the Warrant Price, the Company shall issue to the
registered holder of such Warrant a certificate or certificates for the number of full shares of
Common Stock to which he is entitled, registered in such name or names as may be directed by him,
her or it, and if such Warrant shall not have been exercised in full, a new countersigned Warrant
for the number of shares as to which such Warrant shall not have been exercised. Notwithstanding
the foregoing, the Company shall not be obligated to deliver any securities pursuant to the
exercise of a Warrant unless a registration statement under the Act with respect to the Common
Stock is effective. Warrants may not be exercised by, or securities issued to, any registered
holder in any state in which such exercise would be unlawful.

3.3.3 Valid Issuance. All shares of Common Stock issued upon the proper exercise of a Warrant
in conformity with this Agreement shall be validly issued, fully paid and nonassessable.

3.3.4 Date of Issuance. Each person in whose name any such certificate for shares of Common
Stock is issued shall for all purposes be deemed to have become the holder of record of such shares
on the date on which the Warrant was surrendered and payment of the Warrant Price was made,
irrespective of the date of delivery of such certificate, except that, if the date of such
surrender and payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of business on the
next succeeding date on which the stock transfer books are open.

3.3.5 Warrant Solicitation and Warrant Solicitation Fee.

a. The Company may engage the Representative, on a non-exclusive basis, as its
agent for the solicitation of the exercise of the Warrants. In such event, the
Company, at its cost, will (i) assist the Representative with respect to such
solicitation, if requested by the Representative, and (ii) provide the
Representative, and direct the Company’s transfer agent and the Warrant Agent to
deliver to the Representative, lists of the record and, to the extent known,
beneficial owners of the Company’s Warrants. The Company hereby instructs the
Warrant Agent to cooperate with the Representative in every respect in connection
with the Representative’ solicitation activities, including, but not limited to,
providing to the Representative, at the Company’s cost, a list of record holders of
the Warrants and circulating a prospectus or offering circular disclosing the
compensation arrangements referenced in Section 3.3.5(b) below to holders of the
Warrants at the time of exercise of the Warrants. In addition to the conditions set
forth in Section 3.3.5(b), the Representative shall accept payment of the warrant
solicitation fee provided in Section 3.3.5(b) only if it has provided bona fide
services to the Company in connection with the exercise of the Warrants and only to
the extent that an investor who exercises his Warrants specifically designates, in
writing, that the Representative solicited his exercise. In addition to soliciting,
either orally or in writing, the exercise of Warrants by a
Warrant holder, such services may also include disseminating information,
either orally or in writing, to Warrant holders about the Company or the market for
the Company’s securities, or assisting in the processing of the exercise of
Warrants.

 

-4-

 

b. In each instance in which a Warrant is exercised, the Warrant Agent shall
promptly give written notice of such exercise to the Company and the Representative
(the “Warrant Agent’s Exercise Notice”). If, upon the exercise of any Warrant more
than one year from the effective date of the Registration Statement, (i) the market
price of the Company’s Common Stock is greater than the Warrant Price, (ii)
disclosure of compensation arrangements between the Company and the Representative
with respect to the solicitation of the exercise of the Warrant was made both at the
time of the Public Offering and at the time of exercise (by delivery of the
Prospectus or as otherwise required by applicable law, rule or regulation), (iii)
the holder of the Warrant confirms in writing that the exercise of the Warrant was
solicited by the Representative, (iv) the Warrant was not held in a discretionary
account, and (v) the solicitation of the exercise of the Warrant was not in
violation of Regulation M (as such rule or any successor rule may be in effect as of
such time of exercise) promulgated under the Securities Exchange Act of 1934, as
amended, then the Warrant Agent, simultaneously with the distribution of the Common
Stock underlying the Warrants so exercised in accordance with the instructions from
the Company following receipt of the proceeds to the Company received upon exercise
of such Warrant, shall, on behalf of the Company, pay to the Representative that
solicited the exercise of such Warrant a fee of 5% of the cash proceeds received
upon exercise of the Warrant, and 5% of the value of the Common Stock (based on the
Fair Market Value of the Common Stock) received by the holder upon the cashless
exercise of the Warrant pursuant to Section 3.3.1, provided that the Representative
delivers to the Warrant Agent within ten (10) business days from the date on which
it received the Warrant Agent’s Exercise Notice, a certificate that the conditions
set forth in the preceding clauses (iii), (iv) and (v) have been satisfied.
Notwithstanding the foregoing, no fee will be paid to the Representative with
respect to the exercise by the Underwriters or their affiliates or the Company’s
officers or directors of Warrants purchased by them upon exercise of the
Representatives’ Warrants and still held by any of the Underwriters or them for its
or their own account. The Representative and the Company may at any time during
business hours, examine the records of the Warrant Agent, including its ledger of
original Warrant certificates returned to the Warrant Agent upon exercise of
Warrants.

c. The provisions of this Section 3.3.5. may not be modified, amended or
deleted without the prior written consent of I-Bankers on behalf of the
Representatives.

4. Adjustments.

4.1 Stock Dividends — Split-Ups. If after the date hereof, and subject to the provisions of
Section 4.6 below, the number of outstanding shares of Common Stock is increased
by a stock dividend payable in shares of Common Stock, or by a split-up of shares of Common
Stock, or other similar event, then, on the effective date of such stock dividend, split-up or
similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be
increased in proportion to such increase in outstanding shares of Common Stock.

 

-5-

 

4.2 Aggregation of Shares. If after the date hereof, and subject to the provisions of Section
4.6, the number of outstanding shares of Common Stock is decreased by a consolidation, combination,
reverse stock split or reclassification of shares of Common Stock or other similar event, then, on
the effective date of such consolidation, combination, reverse stock split, reclassification or
similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be
decreased in proportion to such decrease in outstanding shares of Common Stock.

4.3 Adjustments in Exercise Price. Whenever the number of shares of Common Stock purchasable
upon the exercise of the Warrants is adjusted, as provided in Section 4.1 and 4.2 above, the
Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately
prior to such adjustment by a fraction (x) the numerator of which shall be the number of shares of
Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment,
and (y) the denominator of which shall be the number of shares of Common Stock so purchasable
immediately thereafter.

4.4 Replacement of Securities upon Reorganization, etc. In case of any reclassification or
reorganization of the outstanding shares of Common Stock (other than a change covered by Section
4.1 or 4.2 hereof or that solely affects the par value of such shares of Common Stock), or in the
case of any merger or consolidation of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the continuing corporation and that does not result
in any reclassification or reorganization of the outstanding shares of Common Stock), or in the
case of any sale or conveyance to another corporation or entity of the assets or other property of
the Company as an entirety or substantially as an entirety in connection with which the Company is
dissolved, the Warrant holders shall thereafter have the right to purchase and receive, upon the
basis and upon the terms and conditions specified in the Warrants and in lieu of the shares of
Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of
the rights represented thereby, the kind and amount of shares of stock or other securities or
property (including cash) receivable upon such reclassification, reorganization, merger or
consolidation, or upon a dissolution following any such sale or transfer, that the Warrant holder
would have received if such Warrant holder had exercised his, her or its Warrant(s) immediately
prior to such event; and if any reclassification also results in a change in shares of Common Stock
covered by Section 4.1 or 4.2, then such adjustment shall be made pursuant to Sections 4.1, 4.2,
4.3 and this Section 4.4. The provisions of this Section 4.4 shall similarly apply to successive
reclassifications, reorganizations, mergers or consolidations, sales or other transfers.

4.5 Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number
of shares issuable upon exercise of a Warrant, the Company shall give written notice thereof to the
Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment and the
increase or decrease, if any, in the number of shares purchasable at such price upon the exercise
of a Warrant, setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based. Upon the occurrence of any
event specified in Sections 4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company shall give
written notice to the Warrant holder, at the last address set forth for such holder in the warrant
register, of the record date or the effective date of the event. Failure to give such notice, or
any defect therein, shall not affect the legality or validity of such event.

 

-6-

 

4.6 No Fractional Shares. Notwithstanding any provision contained in this Warrant Agreement
to the contrary, the Company shall not issue fractional shares upon exercise of Warrants. If, by
reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would be
entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the
Company shall, upon such exercise, round up or down to the nearest whole number the number of
shares of Common Stock to be issued to the Warrant holder.

4.7 Form of Warrant. The form of Warrant need not be changed because of any adjustment
pursuant to this Section 4, and Warrants issued after such adjustment may state the same Warrant
Price and the same number of shares as is stated in the Warrants initially issued pursuant to this
Agreement. However, the Company may at any time in its sole discretion make any change in the form
of Warrant that the Company may deem appropriate and that does not affect the substance thereof,
and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an
outstanding Warrant or otherwise, may be in the form as so changed.

5. Transfer and Exchange of Warrants.

5.1 Registration of Transfer. The Warrant Agent shall register the transfer, from time to
time, of any outstanding Warrant upon the Warrant Register, upon surrender of such Warrant for
transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate
instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The
Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon
request.

5.2 Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent,
together with a written request for exchange or transfer, and thereupon the Warrant Agent shall
issue in exchange therefor one or more new Warrants as requested by the registered holder of the
Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however,
that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant
Agent shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant
Agent has received an opinion of counsel for the Company stating that such transfer may be made and
indicating whether the new Warrants must also bear a restrictive legend.

5.3 Fractional Warrants. The Warrant Agent shall not be required to effect any registration
of transfer or exchange which will result in the issuance of a warrant certificate for a fraction
of a Warrant.

 

-7-

 

5.4 Service Charges. No service charge shall be made for any exchange or registration of
transfer of Warrants.

5.5 Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to
countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required
to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by
the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the
Company for such purpose.

6. Redemption.

6.1 Redemption. Subject to Section 6.4 hereof, with the prior consent of I-Bankers on behalf
of the Representatives, not less than all of the outstanding Warrants may be redeemed, at the
option of the Company, at any time after they become exercisable and prior to their expiration, at
the office of the Warrant Agent, upon the notice referred to in Section 6.2., at the price of $.01
per Warrant (the “Redemption Price”), provided that the last sales price of the Common Stock has
been at least $11.50 per share (subject to appropriate adjustment in the event of adjustments in
the manner contemplated in Section 4), on each of twenty (20) trading days within any thirty (30)
trading day period ending on the third business day prior to the date on which notice of redemption
is given. The provisions of this Section 6.1 may not be modified, amended or deleted without the
prior written consent of I-Bankers on behalf of the Representatives.

6.2 Date Fixed for, and Notice of, Redemption. In the event the Company shall elect to redeem
all of the Warrants, the Company shall fix a date for the redemption. Notice of redemption shall be
mailed by first class mail, postage prepaid, by the Company not less than 30 days prior to the date
fixed for redemption to the registered holders of the Warrants to be redeemed at their last
addresses as they shall appear on the registration books. Any notice mailed in the manner herein
provided shall be conclusively presumed to have been duly given whether or not the registered
holder received such notice.

6.3 Exercise After Notice of Redemption. The Warrants may be exercised for cash in accordance
with Section 3 of this Agreement at any time after notice of redemption shall have been given by
the Company pursuant to Section 6.2 hereof and prior to the time and date fixed for redemption. If
the Company elects to permit the exercise of Warrants on a “cashless basis,” and so states in its
notice of redemption, the Warrants may thereupon be exercised on either basis in accordance with
Section 3 hereof. On and after the redemption date, the record holder of the Warrants shall have
no further rights except to receive, upon surrender of the Warrants, the Redemption Price.

6.4 Exclusion of Certain Warrants. The Company understands that the redemption rights
provided for by this Section 6 apply only to outstanding Warrants. To the extent a person holds
rights granted by the Company to purchase Warrants, such purchase rights shall not be extinguished
by redemption. However, once such purchase rights are exercised, the Company may redeem the
Warrants issued upon such exercise provided that the criteria for redemption are met. The
provisions of this Section 6.4 may not be modified, amended or deleted without the prior written
consent of I-Bankers on behalf of the Representatives.

 

-8-

 

7. Other Provisions Relating to Rights of Holders of Warrants.

7.1 No Rights as Stockholder. A Warrant does not entitle the registered holder thereof to any
of the rights of a stockholder of the Company, including, without limitation, the right to receive
dividends, or other distributions, exercise any preemptive rights to vote or to consent or to
receive notice as stockholders in respect of the meetings of stockholders or the election of
directors of the Company or any other matter.

7.2 Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen,
mutilated, or destroyed, the Company and the Warrant Agent may on such terms as to indemnity or
otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant,
include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the
Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a
substitute contractual obligation of the Company, whether or not the allegedly lost, stolen,
mutilated, or destroyed Warrant shall be at any time enforceable by anyone.

7.3 Reservation of Common Stock. The Company shall at all times reserve and keep available a
number of its authorized but unissued shares of Common Stock that will be sufficient to permit the
exercise in full of all outstanding Warrants issued pursuant to this Agreement.

7.4 Registration of Common Stock. The Company agrees that prior to the commencement of the
Exercise Period, it shall file with the Securities and Exchange Commission a post-effective
amendment to the Registration Statement, or a new registration statement, for the registration,
under the Act, of, and it shall take such action as is necessary to qualify for sale, in those
states in which the Warrants were initially offered by the Company, the Common Stock issuable upon
exercise of the Warrants. In either case, the Company will use its commercially reasonable efforts
to cause the same to become effective and to maintain the effectiveness of such registration
statement until the expiration of the Warrants in accordance with the provisions of this Agreement.
The provisions of this Section 7.4 may not be modified, amended or deleted without the prior
written consent of I-Bankers on behalf of the Representatives.

8. Concerning the Warrant Agent and Other Matters.

8.1 Payment of Taxes. The Company will from time to time promptly pay all taxes and charges
that may be imposed upon the Company or the Warrant Agent in respect of the issuance or delivery of
shares of Common Stock upon the exercise of Warrants, but the Company shall not be obligated to pay
any transfer taxes in respect of the Warrants or such shares.

 

-9-

 

8.2 Resignation, Consolidation, or Merger of Warrant Agent.

8.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it
hereafter appointed, may resign its duties and be discharged from all further duties and
liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office
of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise,
the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent.
If the Company shall fail to make such appointment within a period of thirty (30) days after it has
been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of
the Warrant (who shall, with such notice, submit his Warrant for inspection by the Company), then
the holder of any Warrant may apply to the Supreme Court of the State of New York for the County of
New York for the appointment of a successor Warrant Agent at the Company’s cost. Any successor
Warrant Agent, whether appointed by the Company or by such court, shall be a corporation organized
and existing under the laws of the State of New York, in good standing and having its principal
office in the Borough of Manhattan, City and State of New York, and authorized under such laws to
exercise corporate trust powers and subject to supervision or examination by federal or state
authority. After appointment, any successor Warrant Agent shall be vested with all the authority,
powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like
effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if
for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and
deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent
all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request
of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and
all instruments in writing for more fully and effectually vesting in and confirming to such
successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

8.2.2 Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be
appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the transfer
agent for the Common Stock not later than the effective date of any such appointment.

8.2.3 Merger or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent
may be merged or with which it may be consolidated or any corporation resulting from any merger or
consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent
under this Agreement without any further act.

8.3 Fees and Expenses of Warrant Agent.

8.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for
its services as such Warrant Agent hereunder and will reimburse the Warrant Agent upon demand for
all expenditures that the Warrant Agent may reasonably incur in the execution of its duties
hereunder.

8.3.2 Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or
cause to be performed, executed, acknowledged, and delivered all such further and other acts,
instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying out
or performing of the provisions of this Agreement.

 

-10-

 

8.4 Liability of Warrant Agent.

8.4.1 Reliance on Company Statement. Whenever in the performance of its duties under this
Warrant Agreement, the Warrant Agent shall deem it necessary or desirable
that any fact or matter be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect thereof be herein
specifically prescribed) may be deemed to be conclusively proved and established by a statement
signed by the President or Chairman of the Board of the Company and delivered to the Warrant Agent.
The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it
pursuant to the provisions of this Agreement.

8.4.2 Indemnity. The Warrant Agent shall be liable hereunder only for its own negligence,
willful misconduct or bad faith. The Company agrees to indemnify the Warrant Agent and save it
harmless against any and all liabilities, including judgments, costs and reasonable counsel fees,
for anything done or omitted by the Warrant Agent in the execution of this Agreement except as a
result of the Warrant Agent’s negligence, willful misconduct, or bad faith.

8.4.3 Exclusions. The Warrant Agent shall have no responsibility with respect to the validity
of this Agreement or with respect to the validity or execution of any Warrant (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible to
make any adjustments required under the provisions of Section 4 hereof or responsible for the
manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that
would require any such adjustment; nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares of Common Stock to
be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock
will when issued be valid and fully paid and nonassessable.

8.5 Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this
Agreement and agrees to perform the same upon the terms and conditions herein set forth and among
other things, shall account promptly to the Company with respect to Warrants exercised and
concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the
purchase of shares of the Company’s Common Stock through the exercise of Warrants.

9. Miscellaneous Provisions.

9.1 Successors. All the covenants and provisions of this Agreement by or for the benefit of
the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors
and assigns.

9.2 Notices. Any notice, statement or demand authorized by this Warrant Agreement to be given
or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be
sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail
or private courier service within five days after deposit of such notice, postage prepaid,
addressed (until another address is filed in writing by the Company with the Warrant Agent), as
follows:

 

-11-

 

Community Bankers Acquisition Corp.

717 King Street

Alexandria, Virginia 22314

Attn: President

Any notice, statement or demand authorized by this Agreement to be given or made by the holder of
any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given when so
delivered if by hand or overnight delivery or if sent by certified mail or private courier service
within five days after deposit of such notice, postage prepaid, addressed (until another address is
filed in writing by the Warrant Agent with the Company), as follows:

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor

New York, New York 10004

Attn: Compliance Department

with a copy in each case to:

Dilworth Paxson LLP 

1133 Connecticut Avenue, N.W.

Suite 620 

Washington, DC 20036

Attn: Kathleen L. Cerveny,

Esq.

and

I-Bankers Securities Incorporated

1560 East Southlake Boulevard

Suite 232

Southlake, Texas 76092

Attn: Shelley Gluck, Chief Financial Officer

and

Greenberg Traurig, LLP

600 Three Galleria Tower

13155 Noel Road

Dallas, TX 75240

Attn: Phillip Kushner, Esq.

 

-12-

 

9.3 Applicable law. The validity, interpretation, and performance of this Agreement shall be
governed in all respects by the laws of the State of New York, without giving effect to conflict of
laws. The Company hereby agrees that any action, proceeding or claim against it arising out of or
relating in any way to this Agreement shall be brought and enforced in the courts of the State of
New York or the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be
exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such
courts represent an inconvenient forum. Any such process or summons to be served upon the Company
may be served by transmitting a copy thereof by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the Company in any
action, proceeding or claim.

9.4 Persons Having Rights under this Agreement. Nothing in this Agreement expressed and
nothing that may be implied from any of the provisions hereof is intended, or shall be construed,
to confer upon, or give to, any person or corporation other than the parties hereto and the
registered holders of the Warrants and, for the purposes of Sections 3.3.5, 6.1, 6.4, 7.4 and 9.2
hereof, the Representatives, any right, remedy, or claim under or by reason of this Warrant
Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. The
Representatives shall be deemed to be a third-party beneficiary of this Agreement with respect to
Sections 3.3.5, 6.1, 6.4, 7.4 and 9.2 hereof. All covenants, conditions, stipulations, promises,
and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit of
the parties hereto (and the Representatives with respect to the Sections 3.3.5, 6.1, 6.4, 7.4 and
9.2 hereof) and their successors and assigns and of the registered holders of the Warrants.

9.5 Examination of the Warrant Agreement. A copy of this Agreement shall be available at all
reasonable times at the office of the Warrant Agent in the Borough of Manhattan, City and State of
New York, for inspection by the registered holder of any Warrant. The Warrant Agent may require
any such holder to submit his Warrant for inspection by it.

9.6 Counterparts. This Agreement may be executed in any number of counterparts and each of
such counterparts shall for all purposes be deemed to be an original, and all such counterparts
shall together constitute but one and the same instrument.

9.7 Effect of Headings. The Section headings herein are for convenience only and are not part
of this Warrant Agreement and shall not affect the interpretation thereof.

 

-13-

 

IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day
and year first above written.

	 	 	 	 	 
	Attest:	 	COMMUNITY BANKERS ACQUISITION CORP.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gary A. Simanson
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gary A. Simanson
	 
	 	 	 	 
	 

	 	Title:
	 	President
	 
	 	 	 	 
	Attest:	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Felix Orihuela
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Felix Orihuela
	 
	 	 	 	 
	 

	 	Title:
	 	Vice President

 

-14-Filed by Bowne Pure Compliance

 

Exhibit 10.2

INVESTMENT MANAGEMENT TRUST AGREEMENT

This Agreement is made as of June 8, 2006 by and between Community Bankers Acquisition Corp.
(the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”).

WHEREAS, the Company’s Registration Statement on Form S-1, as amended, No. 333-124240
(together with any registration statement filed pursuant to Rule 462(b), the “Registration
Statement”), for its initial public offering of securities (the “IPO”) has been declared effective
as of the date hereof by the Securities and Exchange Commission (the “Effective Date”); and

WHEREAS, I-Bankers Securities Incorporated (“I-Bankers”), Maxim Group LLC and Legend Merchant
Group, Inc. (the “Representatives”) are acting as the representatives of the underwriters in the
IPO; and

WHEREAS, as described in the Registration Statement, and in accordance with the Company’s
Certificate of Incorporation, $56,450,000 of the gross proceeds of the IPO ($65,090,000 if the
underwriters’ over-allotment option is exercised in full) will be delivered to the Trustee to be
deposited and held in a trust account for the benefit of the Company and the holders of the
Company’s common stock, par value $.01 per share, issued in the IPO (the amount to be delivered to
the Trustee will be referred to herein as the “Property”; the stockholders for whose benefit the
Trustee shall hold the Property will be referred to as the “Public Stockholders,” and the Public
Stockholders and the Company will be referred to together as the “Beneficiaries”); and

WHEREAS, a portion of the Property consists of $2,100,000 (or $2,415,000 if the underwriters’
over-allotment option is exercised in full) attributable to the underwriters’ discount which the
Representatives have agreed to deposit in the Trust Account (defined below); and

WHEREAS, the Company and the Trustee desire to enter into this Agreement to set forth the
terms and conditions pursuant to which the Trustee shall hold the Property;

IT IS AGREED:

1. Agreements and Covenants of Trustee. The Trustee hereby agrees and covenants to:

(a) Hold the Property in trust for the Beneficiaries in accordance with the terms of this
Agreement, in a segregated trust account (“Trust Account”) established by the Trustee at a branch
of JPMorgan Chase NY Bank or Morgan Stanley selected by the Trustee;

(b) Manage, supervise and administer the Trust Account subject to the terms and conditions set
forth herein;

(c) In a timely manner, upon the written instruction of the Company, to invest and reinvest
the Property in any “Government Security” or in money market funds selected by the Company meeting
the conditions specified in Rule 2a-7 promulgated under the Investment
Company Act of 1940, as amended, as determined by the Company. As used herein, “Government
Security” means any Treasury Bill issued by the United States, having a maturity of one hundred and
eighty days or less;

 

1

 

(d) Collect and receive, when due, all principal and income arising from the Property,
one-half of which income, net of taxes, shall become part of the “Property,” as such term is used
herein; and the remaining income arising from the Property, net of taxes, up to $1,129,000
($1,302,000 in the event of the exercise of the over allotment option in full) may be released to
the Company periodically to fund its working capital requirements;

(e) Notify the Company of all communications received by it with respect to any Property
requiring action by the Company;

(f) Supply any necessary information or documents as may be requested by the Company in
connection with the Company’s preparation of the tax returns relating to income from the Property
in the Trust Account or otherwise;

(g) Participate in any plan or proceeding for protecting or enforcing any right or interest
arising from the Property if, as and when instructed by the Company in writing to do so;

(h) Render to the Company and to I-Bankers on behalf of the Representatives, and to such other
person as the Company may instruct, monthly written statements of the activities of and amounts in
the Trust Account reflecting all receipts and disbursements of the Trust Account;

(i) If there is any income or other tax obligation relating to the income from the Property in
the Trust Account or otherwise, in each case as determined by the Company, then, from time to time,
at the written instruction of the Company, the Trustee shall promptly to the extent there is not
sufficient cash in the Trust Account to pay such tax obligation, liquidate such assets held in the
Trust Account as shall be designated by the Company in writing, and disburse to the Company by wire
transfer, out of the Property in the Trust Account, the amount indicated by the Company as owing in
respect of such income tax obligation; and

(j) Commence liquidation of the Trust Account only upon receipt of and only in accordance with
the terms of a letter (the “Termination Letter”), in a form substantially similar to that attached
hereto as either Exhibit A or Exhibit B, signed on behalf of the Company by its President or
Chairman of the Board and Secretary, and complete the liquidation of the Trust Account and
distribute the Property in the Trust Account only as directed in the Termination Letter and the
other documents referred to therein.

2. Limited Distributions Of Income From Trust Account.

(a) If there is any income tax obligation relating to the income from the Property in the
Trust Account, then, at the written instruction of the Company, the Trustee shall disburse to the
Company by wire transfer, out of the Property in the Trust Account, the amount indicated by the
Company as required to pay income taxes; and

 

2

 

(b) Upon written request from the Company in a form substantially similar to that attached
hereto as Exhibit C, which may be given not more than once in any calendar quarter, the
Trustee shall distribute to the Company by wire transfer an amount equal to one-half of the
income collected on the Property through the last day of the calendar quarter immediately preceding
the date of receipt of the Company’s request; provided, however, that the maximum amount of
distributions, net of taxes, that the Company may request and the Trustee shall distribute pursuant
to this Section 2(b) shall be $1,129,000 or $1,302,000 if the over-allotment is exercised by the
underwriters. The first such distribution shall include income through the first full calendar
quarter following the effective date of the IPO, with the Company’s request made after such date.
It is understood that the Trustee’s only responsibility under this section is to follow the
instructions of the Company; and

(c) Except as provided in Section 2(a) and 2(b) above, no other distributions from the Trust
Account shall be permitted except in accordance with Sections 1(i) and 1(j) hereof.

3. Agreements and Covenants of the Company. The Company hereby agrees and covenants to:

(a) Give all instructions to the Trustee hereunder in writing, signed by the Company’s
President or Chairman of the Board. In addition, except with respect to its duties under Section
1(i) above, the Trustee shall be entitled to rely on, and shall be protected in relying on, any
verbal or telephonic advice or instruction which it in good faith believes to be given by any one
of the persons authorized above to give written instructions, provided that the Company shall
promptly confirm such instructions in writing;

(b) Hold the Trustee harmless and indemnify the Trustee from and against, any and all
expenses, including reasonable counsel fees and disbursements, or loss suffered by the Trustee in
connection with any action, suit or other proceeding brought against the Trustee involving any
claim, or in connection with any claim or demand which in any way arises out of or relates to this
Agreement, the services of the Trustee hereunder, or the Property or any income earned from
investment of the Property, except for expenses and losses resulting from the Trustee’s gross
negligence or willful misconduct. Promptly after the receipt by the Trustee of notice of demand or
claim or the commencement of any action, suit or proceeding, pursuant to which the Trustee intends
to seek indemnification under this paragraph, it shall notify the Company in writing of such claim
(hereinafter referred to as the “Indemnified Claim”). The Trustee shall have the right to conduct
and manage the defense against such Indemnified Claim, provided, that the Trustee shall obtain the
consent of the Company with respect to the selection of counsel, which consent shall not be
unreasonably withheld. The Company may participate in such action with its own counsel;

(c) Pay the Trustee an initial acceptance fee, an annual fee and a transaction processing fee
for each disbursement made pursuant to Sections 2(a) and 2(b) as set forth on Schedule A hereto,
which fees shall be subject to modification by the parties from time to time. It is expressly
understood that the Property shall not be used to pay such fees and further agreed that said
transaction processing fees shall be deducted by the Trustee from the disbursements made to the
Company pursuant to Section 2(b). The Company shall pay the Trustee the initial acceptance fee and
first year’s fee at the consummation of the IPO and thereafter on the anniversary of the Effective
Date. The Trustee shall refund to the Company the annual fee (on a pro rata basis) with respect to
any period after the liquidation of the Trust Fund. The Company
shall not be responsible for any other fees or charges of the Trustee except as set forth in
this Section 3(c) and as may be provided in Section 3(b) hereof (it being expressly understood that
the Property shall not be used to make any payments to the Trustee under such Sections);

 

3

 

(d) Provide to the Trustee a copy of any letter of intent, agreement in principle or
definitive agreement that is executed by the Company prior to the conclusion of 18 months following
consummation of the IPO; and

(e) Provide to the Trustee a copy of the certified oath and report of an independent inspector
of election in respect of the stockholder vote at the meeting called by the Company to consider and
act upon any proposed Business Combination.

4. Limitations of Liability. The Trustee shall have no responsibility or liability to:

(a) Take any action with respect to the Property, other than as directed in Section 1 hereof
and the Trustee shall have no liability to any party except for liability arising out of its own
gross negligence or willful misconduct;

(b) Institute any proceeding for the collection of any principal and income arising from, or
institute, appear in or defend any proceeding of any kind with respect to, any of the Property
unless and until it shall have received written instructions from the Company given as provided
herein to do so and the Company shall have advanced or guaranteed to it funds sufficient to pay any
expenses incident thereto;

(c) Change the investment of any Property, other than in compliance with Section 1(c);

(d) Refund any depreciation in principal of any Property;

(e) Assume that the authority of any person designated by the Company to give instructions
hereunder shall not be continuing unless provided otherwise in such designation, or unless the
Company shall have delivered a written revocation of such authority to the Trustee;

(f) The other parties hereto or to anyone else for any action taken or omitted by it, or any
action suffered by it to be taken or omitted, in good faith and in the exercise of its own best
judgment, except for its gross negligence or willful misconduct. The Trustee may rely conclusively
and shall be protected in acting upon any order, judgment, instruction, notice, demand,
certificate, opinion or advice of counsel (including counsel chosen by the Trustee), statement,
instrument, report or other paper or document (not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and acceptability of any information
therein contained) which is believed by the Trustee, in good faith, to be genuine and to be signed
or presented by the proper person or persons. The Trustee shall not be bound by any notice or
demand, or any waiver, modification, termination or rescission of this agreement or any of the
terms hereof, unless evidenced by a written instrument delivered to the Trustee signed by the
proper party or parties and, if the duties or rights of the Trustee are affected, unless it shall
give its prior written consent thereto;

 

4

 

(g) Verify the correctness of the information set forth in the Registration Statement or to
confirm or assure that any acquisition made by the Company or any other action taken by it is as
contemplated by the Registration Statement;

(h) As and to the extent requested from time to time by the Company, prepare, execute and file
such tax reports, income or other tax returns and pay any taxes with respect to income and
activities relating to the Trust Account, regardless of whether such tax is payable by the Trust
Account or the Company (including but not limited to income tax obligations), it being expressly
understood that as set forth in Section 1(i), if there is any income or other tax obligation
relating to the Trust Account or the Property in the Trust Account, as determined from time to time
by the Company and regardless of whether such tax is payable by the Company or the Trust, at the
written instruction of the Company, the Trustee shall issue a check directly to the taxing
authorities designated by the Company, out of the Property in the Trust Account, for the amount
indicated by the Company as owing to each such taxing authority; and

(i) Verify calculations, qualify or otherwise approve Company requests for distributions
pursuant to Section 1(i), 2(a) or 2(b) above.

5. Termination. This Agreement shall terminate as follows:

(a) If the Trustee gives written notice to the Company that it desires to resign under this
Agreement, the Company shall use its reasonable efforts to locate a successor trustee. At such time
that the Company notifies the Trustee that a successor trustee has been appointed by the Company
and has agreed to become subject to the terms of this Agreement, the Trustee shall transfer the
management of the Trust Account to the successor trustee, including but not limited to the transfer
of copies of the reports and statements relating to the Trust Account, whereupon this Agreement
shall terminate; provided, however, that, in the event that the Company does not locate a successor
trustee within ninety days of receipt of the resignation notice from the Trustee, the Trustee may
submit an application to have the Property deposited with the United States District Court for the
Southern District of New York and upon such deposit, the Trustee shall be immune from any liability
whatsoever;

(b) At such time that the Trustee has completed the liquidation of the Trust Account in
accordance with the provisions of Section 1(j) hereof, and distributed the Property in accordance
with the provisions of the Termination Letter, this Agreement shall terminate except with respect
to Section 3(b).

6. Miscellaneous.

(a) The Company and the Trustee each acknowledge that the Trustee will follow the security
procedures set forth below with respect to funds transferred from the Trust Account. Upon receipt
of written instructions, the Trustee will confirm such instructions with an Authorized Individual
at an Authorized Telephone Number listed on the attached Exhibit D. The Company and the Trustee
will each restrict access to confidential information relating to such security procedures to
authorized persons. Each party must notify the other party immediately if it has reason to believe
unauthorized persons may have obtained access to such information, or of any change in its
authorized personnel. In executing funds transfers, the Trustee will rely upon
account numbers or other identifying numbers of a beneficiary, beneficiary’s bank or
intermediary bank, rather than names. The Trustee shall not be liable for any loss, liability or
expense resulting from any error in an account number or other identifying number, provided it has
accurately transmitted the numbers provided.

 

5

 

(b) This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of New York, without giving effect to conflict of laws. It may be executed in several
counterparts, each one of which shall constitute an original, and together shall constitute but one
instrument.

(c) This Agreement contains the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof. The parties hereto may change, waive, amend or modify any
provision contained herein that may be defective or inconsistent with any other provision contained
herein only upon the written consent of each of the parties hereto; provided that such action shall
not materially adversely affect the interests of the Public Stockholders. Any other change,
waiver, amendment or modification to this Agreement shall be subject to approval by a majority of
the Public Stockholders. As to any claim, cross-claim or counterclaim in any way relating to this
Agreement, each party waives the right to trial by jury.

(d) The parties hereto consent to the jurisdiction and venue of any state or federal court
located in the City of New York for purposes of resolving any disputes hereunder.

(e) Any notice, consent or request to be given in connection with any of the terms or
provisions of this Agreement shall be in writing and shall be sent by express mail or similar
private courier service, by certified mail (return receipt requested), by hand delivery or by
facsimile transmission:

if to the Trustee, to:

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York 10004

Attn: Mr. Frank Di Paolo, CFO

Fax: (212) 616-7620

if to the Company, to:

Community Bankers Acquisition Corp.

717 King Street

Alexandria, Virginia 22314

Attn: Mr. Gary A. Simanson, President

Fax: (703) 757-8202

with a copy to:

Dilworth Paxson LLP

1133 Connecticut Avenue, N.W., Suite 620

Washington, DC 20036

Attn: Kathleen L. Cerveny, Esq.

Fax: (202) 452-0930

 

6

 

in either case with a copy on behalf of the Representatives to:

I-Bankers Securities Incorporated

125 E. John Carpenter Freeway

Suite 260

Irving, Texas 75062

Attn: Shelley Gluck, Chief Financial Officer

Fax: (214) 687-0023

Greenberg Traurig, LLP

600 Three Galleria Tower

13155 Noel Road

Dallas, TX 75240

Attn: Phillip Kushner, Esq.

Fax: (972) 419-1251

(f) This Agreement may not be assigned by the Trustee without the prior consent of the
Company. This agreement may be assigned by the Company to a wholly-owned subsidiary of the Company
upon written notice to the Trustee.

(g) Each of the Trustee and the Company hereby represents that it has the full right and power
and has been duly authorized to enter into this Agreement and to perform its respective obligations
as contemplated hereunder. The Trustee acknowledges and agrees that it shall not make any claims or
proceed against the Trust Account, including by way of set-off, and shall not be entitled to any
part of the Property under any circumstance.

(h) The Trustee hereby consents to the inclusion of Continental Stock Transfer & Trust Company
in the Registration Statement and other materials relating to the IPO.

[Signature page follows]

 

7

 

IN WITNESS WHEREOF, the parties have duly executed this Investment Management Trust Agreement
as of the date first written above.

	 	 	 	 	 
	 	 	CONTINENTAL STOCK TRANSFER

& TRUST COMPANY, as Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Felix Orihuela
	 

	 	 	 	 
	 

	 	Name:
	 	Felix Orihuela
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COMMUNITY BANKERS ACQUISITION CORP.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gary A. Simanson
	 

	 	 	 	 
	 

	 	Name:
	 	Gary A. Simanson
	 

	 	 	 	 
	 

	 	Title:
	 	President
	 

	 	 	 	 

 

8

 

EXHIBIT A

[LETTERHEAD OF COMPANY]

[INSERT DATE]

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York 10004

Attn: Steven Nelson, President

			
	Re:	 	Trust Account No. [___________]

Termination Letter

Gentlemen:

Pursuant to Section 1(i) of the Investment Management Trust Agreement between Community
Bankers Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the
“Trustee”), dated as of
 _____ 
, 2006 (the “Trust Agreement”), this is to advise you that the
Company has entered into an agreement (“Business Agreement”) with
 _____ 
(the “Target
Business”) to consummate a business combination with Target Business (a “Business Combination”) on
or about [INSERT DATE]. The Company shall notify you at least 48 hours in advance of the actual
date of the consummation of the Business Combination (the “Consummation Date”).

In accordance with the terms of the Trust Agreement, we hereby authorize you to commence
liquidation of the Trust Account to the effect that, on the Consummation Date, all of funds held in
the Trust Account will be immediately available for transfer to the account or accounts that the
Company shall direct in writing on the Consummation Date.

On the Consummation Date (i) counsel for the Company shall deliver to you written notification
that the Business Combination has been consummated and (ii) the Company shall deliver to you
written instructions with respect to the transfer of the funds held in the Trust Account (the
“Instruction Letter”). You are hereby directed and authorized to transfer the funds held in the
Trust Account immediately upon your receipt of the counsel’s letter and the Instruction Letter. In
the event that certain deposits held in the Trust Account may not be liquidated by the Consummation
Date without penalty, you will notify the Company of the same and the Company shall direct you as
to whether such funds should remain in the Trust Account and distributed after the Consummation
Date to the Company. Upon the distribution of all the funds in the Trust Account pursuant to the
terms hereof, the Trust Agreement shall be terminated.

In the event that the Business Combination is not consummated on the Consummation Date
described in the notice thereof and we have not notified you on or before the original Consummation
Date of a new Consummation Date, then the funds held in the Trust Account shall be reinvested as
provided in the Trust Agreement on the business day immediately following the Consummation Date as
set forth in the notice.

 

 

 

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	COMMUNITY BANKERS ACQUISITION CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Gary A. Simanson, President

 

 

 

EXHIBIT B

[LETTERHEAD OF COMPANY]

[INSERT DATE]

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York 10004

Attn: Steven Nelson, President

			
	Re:	 	Trust Account No. [_________] Termination Letter

Gentlemen:

Pursuant to paragraph 1(i) of the Investment Management Trust Agreement between Community
Bankers Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the
“Trustee”), dated as of
 _____ 
, 2006 (the “Trust Agreement”), this is to advise you that the
Company has been dissolved due to the Company’s inability to effect a Business Combination within
the time frame specified in the Company’s prospectus relating to its IPO. Attached hereto is a
certified copy of the Certificate of Dissolution as filed with the Delaware Secretary of State.

In accordance with the terms of the Trust Agreement, we hereby authorize you to commence
liquidation of the Trust Account. You will notify the Company and JPMorgan Chase NY Bank (the
“Designated Paying Agent”) in writing as to when all of the funds in the Trust Account will be
available for immediate transfer (the “Transfer Date”). The Designated Paying Agent shall
thereafter notify you as to the account or accounts of the Designated Paying Agent that the funds
in the Trust Account should be transferred to on the Transfer Date so that the Designated Paying
Agent may commence distribution of such funds in accordance with the Company’s instructions. You
shall have no obligation to oversee the Designated Paying Agent’s distribution of the funds. Upon
the payment to the Designated Paying Agent of all the funds in the Trust Account, the Trust
Agreement shall terminate in accordance with the terms thereof.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	COMMUNITY BANKERS ACQUISITION CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Gary A. Simanson, President

 

 

 

EXHIBIT C

[LETTERHEAD OF COMPANY]

[Insert Date]

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven Nelson, President

Re: Trust Account No. [ ] — Distribution of Income on Property

Gentlemen:

Pursuant to Section 2(b) of the Investment Management Trust Agreement between Community Bankers
Acquisition Corporation (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”),
dated as of
 _____ 
, 2006 (“Trust Agreement”), we are requesting for our working capital purposes
that you deliver to us $
 _____ 
representing income earned on the Property from
 _____ 

to
 _____ 
.. In accordance with the terms of the Trust Agreement, you are hereby directed and
authorized to transfer said amount, less any fees due the Trustee pursuant to Section 3(c) of the
Trust Agreement, immediately upon your receipt of this letter to the Company’s operating account
at:

	 	 	 
	Bank:

	 	[
 _____ 
] 
	ABA #:

	 	[
 _____ 
] 
	Account Name:

	 	                    . 
	Account Number:

	 	[
 _____ 
] 
	Reference:

	 	Distribution of Income Earned on Trust Property

Very truly yours,

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 

 

 

 

EXHIBIT D

AUTHORIZED INDIVIDUAL(S) and telephone numbers

AUTHORIZED FOR TELEPHONE CALL BACK

	 	 	 
	COMPANY:

	 	Community Bankers Acquisition Corp.
	 

	 	717 King Street
	 

	 	Alexandria, Virginia 22314
	 

	 	Attn: Gary A. Simanson, President
	 

	 	Telephone: (703) 759-2502
	 
	 	 
	TRUSTEE:

	 	Continental Stock Transfer & Trust Company
	 

	 	17 Battery Place
	 

	 	8th Floor
	 

	 	New York, New York 10004
	 

	 	Attn: Steven Nelson, President or Frank Di Paolo, CFO
	 

	 	Telephone: (212) 845-3270

 

 

 

SCHEDULE A

Schedule of fees pursuant to Section 3(c) of Investment Management Trust Agreement

between Community Bankers Acquisition Corp. and

Continental Stock Transfer & Trust Company

	 	 	 	 	 
	Fee Item	 	Time and method of payment	 	Amount
	Initial acceptance fee

	 	Initial closing of IPO by
wire transfer
	 	$1,000 
	 
	 	 	 	 
	Annual fee

	 	First year, initial closing
of IPO by wire transfer;
thereafter on the anniversary
of the effective date of the
IPO by wire transfer or check
	 	$3,000 
	 
	 	 	 	 
	Transaction processing fee for
disbursements to Company under
Sections 2(a) and 2(b)

	 	Deduction by Trustee from
disbursement made to Company
under Section 2(b)
	 	$250 

	 	 	 	 	 
	 	 	Agreed:
	Dated: June 8, 2006
	 	 	 	 
	 	 	Community Bankers Acquisition Corp.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gary A. Simanson
	 

	 	 	 	 
	 

	 	 	 	Authorized Officer
	 
	 	 	 	 
	 	 	Continental Stock Transfer & Trust Co.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Felix Orihuela
	 

	 	 	 	 
	 

	 	 	 	Authorized Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]