Document:

EX-4.7

 Exhibit 4.7 

VALERO ENERGY CORPORATION 

2.150% Senior Notes due 2027 
 A
single series of Securities is hereby established pursuant to Section 301 of the Indenture dated as of March 10, 2015 (the “Indenture”), between Valero Energy Corporation, a Delaware corporation (the
“Company”), and U.S. Bank National Association, as Trustee (in such capacity, the “Trustee”), as follows (capitalized terms used and not defined herein shall have the meanings assigned to them in the Indenture, and
all references herein to a Section shall refer to the corresponding Section in the Indenture): 
 1.    The title of the
2.150% Senior Notes due 2027 shall be “2.150% Notes due 2027” (the “Notes”). 
 2.    The
initial limit upon the aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Sections 304, 305, 306, 906 or 1207) is $600,000,000, provided, however, that the authorized aggregate principal amount of the Notes may be increased above such amount by a Board Resolution to such effect. 

3.    The Notes shall be initially issued as Registered Securities in the form of one or more global securities under the
Indenture. The Depository Trust Company is hereby designated as the Depository for these global Securities under the Indenture. 

4.    As long as any Note is in global form, then, notwithstanding clause (11) of Section 301 and the provisions
of Section 302, any such global Note shall represent such of the outstanding Notes as shall be specified therein and may provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the
aggregate amount of outstanding Notes represented thereby may from time to time be reduced to reflect exchanges or redemptions. Any endorsement of a global Note to reflect the amount, or any increase or decrease in the amount, of outstanding Notes
represented thereby shall be made by the Trustee in such manner and upon instructions given by such Person or Persons as shall be specified in such Note or in a Company Order to be delivered to the Trustee pursuant to Section 303. Subject to
the provisions of Section 303 and, if applicable Section 304, the Trustee shall deliver and redeliver any Note in permanent global form in the manner and upon instructions given by the Person or Persons specified in such Note or in the
applicable Company Order. With respect to Notes that are represented by a global Note, the Company authorizes the execution and delivery by the Trustee of a letter of representations or other similar agreement or instrument in the form customarily
provided for by the Depository appointed with respect to such global Note. Any global Note may be deposited with the Depository or its nominee, or may remain in the custody of the Trustee pursuant to a FAST Balance Certificate Agreement or similar
agreement between the Trustee and the Depository. If a Company Order has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Note in global form shall be in writing but
need not comply with Section 102 and need not be accompanied by an Opinion of Counsel. 

 Members of, or participants in, the Depository (“Agent Members”) shall have
no rights under the Indenture with respect to any global Note held on their behalf by the Depository, or the Trustee as its custodian, or under such global Note and the Depository may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner of such global Note for all purposes whatsoever. Notwithstanding the foregoing, (i) the registered holder of a global Note may grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through an Agent Member, to take any action that a Holder is entitled to take under the Indenture or the Notes and (ii) nothing herein shall prevent the Company, the Trustee or any agent of the
Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by the Depository or shall impair, as between the Depository and its Agent Members, the operation of customary practices governing the
exercise of the rights of a beneficial owner of any Note. 
 Notwithstanding Section 305, and except as otherwise provided pursuant to
Section 301, transfers of a global Note shall be limited to transfers of such global Note in whole but not in part, to the Depository, its successors or their respective nominees. Interests of beneficial owners in a global Note may be
transferred in accordance with the rules and procedures of the Depository. In all other respects, Notes shall be transferred to all beneficial owners in exchange for their beneficial interest in a global Security solely as expressly provided in
Section 305. 
 In connection with any transfer of a portion of the beneficial interest in a global Note to beneficial owners pursuant
hereto and Section 305, the Security Registrar shall reflect on its books and records the date and a decrease in the principal amount of the global Note in an amount equal to the principal amount of the beneficial interest in the global Note to
be transferred, and the Company shall execute, and the Trustee upon receipt of a Company Order for the authentication and delivery of Notes shall authenticate and deliver, one or more Notes of like tenor and amount. 

In connection with the transfer of an entire global Note to beneficial owners pursuant hereto and Section 305, the global Security shall
be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the Depository in exchange for its beneficial interest in the global
Note, an equal aggregate principal amount of Notes of authorized denominations. 
 Neither the Company nor the Trustee will have any
responsibility or liability for any aspect of the records relating to, or payments made on account of, Notes by the Depository, or for maintaining, supervising or reviewing any records of the Depository relating to the Notes. Neither the Company nor
the Trustee shall be liable for any delay by the related global Note Holder or the Depository in identifying the beneficial owners, and each such Person may conclusively rely on, and shall be protected in relying on, instructions from such global
Note Holder or the Depository for all purposes (including with respect to the registration and delivery, and the principal amount, of the Notes to be issued). 

Notwithstanding the provisions of Sections 201 and 307, unless otherwise specified as contemplated by Section 301, payment of principal
of, premium (if any) or interest on any global Note shall be made to the Person or Persons specified in such global Note. 

  
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 5.    The date on which the principal of the Notes are payable shall be
September 15, 2027. 
 6.    The rate at which the Notes shall bear interest shall be 2.150% per annum. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. The date from which interest shall accrue for the Notes shall be September 10, 2020. The Interest
Payment Dates on which interest on the Notes shall be payable are March 15 and September 15, commencing March 15, 2021. Interest on the Notes shall be payable to the persons in whose name the Notes are registered at the close of business on the
Regular Record Date for such interest payment, except in the case of default interest, which will be payable as provided in the Indenture. The Regular Record Date for the interest payable on the Notes on any Interest Payment Date shall be the March
1 and September 1, as the case may be, immediately preceding such Interest Payment Date. No Additional Amounts shall be payable with respect to the Notes. 

7.    The place or places where the principal of, premium (if any) on and interest on the Notes shall be payable is at the
office or agency of the Paying Agent and Security Registrar in New York, New York or such other offices or agencies maintained for such purpose as the Company may from time to time and in accordance with the Indenture designate. If appropriate wire
transfer instructions have been received by the Trustee, not later than five Business Days prior to the record date for an applicable Interest Payment Date, then payments in respect of the Notes evidenced by a global Security (including principal,
premium, if any, and interest) shall be made by wire transfer of immediately available funds to the accounts specified by the Holder of such global Note. In all other cases, payment of interest on the Notes may be made at the option of the Company
by check mailed to the address of the person entitled thereto as such address shall appear in the Security Register. 

8.    The Notes will be redeemable at any time and from time to time prior to July 15, 2027, in whole or in part, at the
option of the Company, at a redemption price equal to the greater of (i) 100% of the principal amount of such Notes, and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any
portion of such payments of interest accrued as of the date of redemption) calculated as if the maturity date of the Notes was July 15, 2027, discounted to the date of redemption on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 30 basis points, as calculated by an Independent Investment Banker
(as defined below) plus, in each case, accrued and unpaid interest thereon to, but not including, the date of redemption; provided that the principal amount of a Security outstanding after redemption in part shall be $2,000 or an integral multiple
of $1,000 in excess thereof. 
 On or after July 15, 2027, the Notes will be redeemable at any time, in whole or in part, at the option of
the Company, at a redemption price equal to 100% of the principal amount of such Notes, plus accrued and unpaid interest to, but not including, the date of redemption. 

“Adjusted Treasury Rate” means, with respect to any date of redemption, (i) the yield, under the heading which
represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15 Daily Update” or any successor publication which is published weekly by the Board of Governors of the
Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to 

  
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constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or
after the remaining life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight
line basis, rounding to the nearest month); or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such date of redemption. The
Adjusted Treasury Rate shall be calculated on the third Business Day preceding the date of redemption. 
 “Comparable Treasury
Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes (assuming, for this purpose, that the Notes matured on July 15, 2027) that
would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes (assuming, for this purpose, that the Notes
matured on July 15, 2027). 
 “Comparable Treasury Price” means, with respect to any date of redemption, (i) the
average of five Reference Treasury Dealer Quotations for such date of redemption, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than five such
Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations. 
 “Independent Investment
Banker” means one of the Reference Treasury Dealers appointed by the Company to act as the independent investment banker from time to time. 

“Reference Treasury Dealers” means (i) J.P. Morgan Securities LLC, Citigroup Global Markets Inc., a primary treasury
dealer selected by MUFG Securities Americas Inc. and Scotia Capital (USA) Inc. or their respective affiliates or successors; provided that, if any of the foregoing shall cease to be a primary U.S. Government securities dealer (a “Primary
Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the
average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such date of redemption. 
 Notice of
any redemption will be mailed at least 30 days but not more than 60 days before the date of redemption to each Holder of the Notes to be redeemed. Unless the Company defaults in payment of the redemption price, on and after the date of redemption,
interest will cease to accrue on the Notes or portions thereof called for redemption. 

  
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 9.    The Notes shall not be entitled to the benefit of any sinking
fund, any optional repurchase or redemption right in favor of any holder thereof or other mandatory repurchase or redemption provisions. 

10.    The Notes shall be in substantially the form of Attachment A hereto (the “Form of Note”).

 11.    Each Note that is a global Security shall bear the legend set forth on the face of the Form of Note. 

  
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 Attachment A – Form of Note 

[FORM OF FACE OF SECURITY] 

[THIS SECURITY IS A GLOBAL SECURITY AS PROVIDED FOR IN THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY
(OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED
CIRCUMSTANCES.]* 
 [Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York
corporation (“DTC”), to the issuer or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]* 
 VALERO ENERGY CORPORATION 

2.150% NOTES DUE 2027 
  

					
	 No. [     ]
	  	 	$[            ]	 
	 REGISTERED
	  	 	CUSIP No. 91913YBB5	 
		  	 	ISIN No. US91913YBB56	 

 VALERO ENERGY CORPORATION, a Delaware corporation (the “Company,” which term includes any successor
Person under the Indenture hereinafter referred to), for value received promises to pay to Cede & Co. or registered assigns, the principal sum of [             ] Dollars [or such
lesser amount as indicated on the schedule of exchanges of Securities,]* on September 15, 2027. 
 Interest Payment Dates: March 15
and September 15 
 Regular Record Dates: March 1 and September 1 

Reference is hereby made to the further provisions of this Security set forth in the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place. 
  

	*	 To be included only if the Security is a Global Security. 

  
 A-1 

 IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by
facsimile by its duly authorized officers. 
  

							
	Dated:             ,	 		 	VALERO ENERGY CORPORATION
				
		 		 	By:	 	  

		 		 		 	Jason W. Fraser
		 		 		 	Executive Vice President and 
Chief Financial Officer

  

			
	ATTEST:
		
	By:	 	  

		 	 J. Stephen Gilbert
 Secretary

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION: 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

							
	Dated:             ,	 		 	U.S. BANK NATIONAL ASSOCIATION, 
            as Trustee
				
		 		 	By:	 	  

		 		 		 	Authorized Signatory

  
 A-2 

 [FORM OF REVERSE OF SECURITY] 

VALERO ENERGY CORPORATION 
 2.150%
NOTES DUE 2027 
 This Security is one of a duly authorized issue of debentures, notes or other evidences of indebtedness of VALERO
ENERGY CORPORATION, a Delaware corporation (the “Company”), issued under the Indenture hereinafter referred to and is one of a series of such debentures, notes or other evidences of indebtedness designated pursuant thereto as
2.150% Notes due 2027 (the “Securities”) of the Company. 
 1.    Interest. The Company promises
to pay interest on the principal amount of this Security at 2.150% per annum from September 10, 2020 until September 15, 2027 (“Maturity”). The Company will pay interest semiannually on March 15 and September 15
of each year (each an “Interest Payment Date”) and on the Maturity of the Securities, or if any such day is not a Business Day, on the next succeeding Business Day. Interest on the Securities will accrue from the most recent
Interest Payment Date on which interest has been paid or, if no interest has been paid, from September 10, 2020; provided that if there is no existing Default in the payment of, or provisions for, interest, and if this Security is authenticated
between a Regular Record Date referred to on the face hereof (whether or not a Business Day) and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided, further, that the first
Interest Payment Date shall be March 15, 2021. The interest so payable, and punctually paid or provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest as set forth on the face hereof; provided, however, that interest payable at Maturity of this Security will be payable to the Person to whom
the principal hereof shall be payable. Any such interest which is so payable, but is not punctually paid or duly provided for on any Interest Payment Date, shall forthwith cease to be payable to the registered Holder on such Regular Record Date, and
may be paid as more fully provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

2.    Method of Payment. Payment of the principal of (and premium, if any) and interest on this Security will be
made at the office or agency of the Company maintained for that purpose in New York, New York, or at such other offices or agencies maintained for such purpose as the Company may from time to time and in accordance with the Indenture designate, in
such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that (i) payment of interest may, at the option of the Company, be made (subject to
collection) by check mailed to the address of the Person entitled thereto as such address shall appear on the Security Register or, with respect to Securities evidenced by a global Security, if appropriate wire transfer instructions have been
received in writing by the Trustee, not later than five Business Days prior to the record date for an applicable Interest Payment Date, be made by wire transfer of immediately available funds in accordance with such wire transfer instructions; and
(ii) payment of available funds upon surrender of this Security will be made at the office or agency of the Company maintained for that purpose in New York, New York or at such additional offices or agencies maintained for such purpose as the
Company may from time to time and in accordance with the Indenture designate. 

  
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 3.    Certain Office. Initially, U.S. Bank National Association
(in such capacities, the “Paying Agent” and the “Security Registrar”) will, at its offices located at 100 Wall Street, Suite 1600, New York, New York 10005, act as the Company’s office or agency solely for
purposes of where the Securities may be presented or surrendered for payment and where the Securities may be surrendered for registration of transfer or exchange. For all other purposes, including where notices and demands to or upon the Company in
respect of the Securities and the Indenture may be served, U.S. Bank National Association, the Trustee under the Indenture, will act at its offices located at 8 Greenway Plaza, Suite 1100, Houston, TX 77046-0892. 

4.    Indenture. The Company issued the Securities under an Indenture dated as of March 10, 2015 (the
“Indenture”) between the Company and the Trustee. The terms of the Securities include those stated in the Indenture (including terms defined therein, which terms when used herein, unless the context requires otherwise, shall have
the meanings assigned to such terms in the Indenture) and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “TIA”), as in effect on the date of execution of the Indenture. The
Securities are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. The Securities are unsecured general obligations of the Company initially limited to $600,000,000 in aggregate principal
amount and will rank on a parity with all other unsecured and unsubordinated indebtedness of the Company; provided, however, that the authorized aggregate principal amount of the Securities may be increased above such amount by a Board Resolution to
such effect. The Indenture provides for the issuance of other series of debentures, notes and other evidences of indebtedness (including the Securities, the “Debt Securities”) thereunder. 

5.    Denominations, Transfer, Exchange. The Securities are in registered form without coupons and, if not in
global form, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Security Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Security Registrar need not exchange or register the transfer of any Securities
during the period beginning on the opening of business 15 days before the day of mailing of a notice of redemption of the Securities and ending at the close of business on the day of such mailing or of any Securities selected for redemption, except
the unredeemed portion of any Securities being redeemed in part. 
 6.    Persons Deemed Owners. The registered
Holder of a Security shall be treated as its owner for all purposes. 
 7.    Redemption. The Securities will be
redeemable at any time and from time to time prior to July 15, 2027, in whole or in part, at the option of the Company, at a redemption price equal to the greater of (i) 100% of the principal amount of such Securities, and (ii) the sum of the
present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), calculated as if the Maturity of the Securities was July 15, 2027,
discounted to the date of redemption on a semi-annual 

  
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basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below)
plus 30 basis points, as calculated by the Independent Investment Banker (as defined below) plus, in each case, accrued and unpaid interest thereon to, but not including, the date of redemption; provided that the principal amount of a Security
outstanding after redemption in part shall be $2,000 or an integral multiple of $1,000 in excess thereof. 
 On or after July 15, 2027,
the Securities will be redeemable at any time, in whole or in part, at the option of the Company, at a redemption price equal to 100% of the principal amount of such Securities, plus accrued and unpaid interest to, but not including, the date of
redemption. 
 “Adjusted Treasury Rate” means, with respect to any date of redemption, (i) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15 Daily Update” or any successor publication which is published weekly by the Board of
Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months before or after the remaining life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury
Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not
contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the Comparable Treasury Price for such date of redemption. The Adjusted Treasury Rate shall be calculated on the third Business Day preceding the date of redemption. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term of the Notes (assuming, for this purpose, that the Securities matured on July 15, 2027) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term of the Notes (assuming, for this purpose, that the Securities matured on July 15, 2027). 

“Comparable Treasury Price” means, with respect to any date of redemption, (i) the average of five Reference Treasury
Dealer Quotations for such date of redemption, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the
average of all such Reference Treasury Dealer Quotations. 
 “Independent Investment Banker” means one of the Reference
Treasury Dealers appointed by the Company to act as the independent investment banker from time to time. 
 “Reference Treasury
Dealers” means (i) means (i) J.P. Morgan Securities LLC, Citigroup Global Markets Inc., a primary treasury dealer selected by MUFG Securities Americas Inc. and Scotia Capital (USA) Inc. or their respective affiliates or successors;
provided that, if any of the foregoing shall cease to be a primary U.S. Government securities dealer (a “Primary Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer; and (ii) any other
Primary Treasury Dealer selected by the Company. 

  
 A-5 

 “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any date of redemption, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such date of redemption. 

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the date of redemption to each Holder of the
Securities to be redeemed. Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Securities or portions thereof called for redemption. 

8.    Amendments and Waivers. Subject to certain exceptions and limitations, the Indenture or the Securities may be
supplemented with the consent of the Holders of not less than a majority in aggregate principal amount of the outstanding Securities, and any past default under the Indenture with respect to the Securities, and its consequences, may be waived (other
than a default in the payment of the principal of (or premium, if any) or interest on the Securities or in respect of a covenant or provision of the Indenture which under Article 9 thereof cannot be modified or amended without the consent of the
Holder of each outstanding Security) by the Holders of not less than a majority in principal amount of the outstanding Securities in accordance with the terms of the Indenture. Without the consent of any Holder, the Company and the Trustee may
supplement the Indenture or the Securities (i) to cure any ambiguity, omission, defect or inconsistency, in each case which shall not be inconsistent with the provisions of the Indenture and which shall not adversely affect the interest of the
Holders of the Securities in any material respect; (ii) to evidence the assumption by a successor Person of the obligations of the Company under the Indenture and this Security; (iii) to change or eliminate any restrictions on the payment
of principal (or premium, if any) on Registered Securities, to permit Registered Securities to be exchanged for Bearer Securities or to permit the issuance of Securities in uncertificated form, provided any such action shall not adversely affect the
interest of the Holders of the Securities in any material respect; (iv) to add to the covenants of the Company for the benefit of the Holders of the Securities or Holders of other series of Debt Securities, or to surrender any right or power
conferred by the Indenture upon the Company; (v) to add to, delete from or revise the conditions, limitations and restrictions on the authorized amount, terms or purpose of issue, authentication and delivery of the Securities as set forth in
the Indenture; or (vi) to evidence and provide for the acceptance of appointment under the Indenture by a successor Trustee with respect to the Securities and to add to or change any of the provisions of the Indenture as shall be necessary to
provide for or facilitate the administration of the trusts thereunder by more than one Trustee, pursuant to the requirements of the Indenture. 

The right of any Holder to participate in any consent required or sought pursuant to any provision of the Indenture (and the obligation of the
Company to obtain any such consent otherwise required from such Holder) may be subject to the requirement that such Holder shall have been the Holder of record of any Securities with respect to which consent is required or sought as of a date fixed
in accordance with the terms of the Indenture. 

  
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 Subject to certain exceptions and limitations set forth in the Indenture, without the
consent of each Holder affected, the Company may not (i) change the Stated Maturity of the principal of or any installment of interest on any Security, (ii) reduce the principal amount of, or any premium or interest on, any Security,
(iii) change any Place of Payment where, or the currency in which, any Security or any premium or interest thereon is payable, (iv) impair the right to institute suit for the enforcement of any payment with respect to any Security after
the Stated Maturity thereof (or, in the case of redemption, on or after the applicable Redemption Date), (v) reduce the percentage in principal amount of the outstanding Securities whose Holders must consent to a supplement or waiver, or reduce the
requirements in Section 1504 of the Indenture for quorum or voting, or make any change in the percentage of principal amount of Securities necessary to waive compliance with certain provisions of the Indenture or (vi) waive a continuing
Default or Event of Default in the payment of principal of or premium (if any) or interest on the Securities. 
 A supplemental indenture
that changes or eliminates any covenant or other provision of the Indenture which has expressly been included solely for the benefit of one or more particular series of Debt Securities under the Indenture, or which modifies the rights of the Holders
of Debt Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under the Indenture of the Holders of Debt Securities of any other series. 

9.    Defaults and Remedies. Events of Default are defined in the Indenture and generally include: (i) failure
to pay principal of or any premium on any Security when due and payable; (ii) failure to pay any interest on any Security when due and payable, and the continuation of the default for 30 days; (iii) failure to perform any other covenant,
or breach of any warranty, of the Company in the Indenture, continued for 60 days after written notice is given or received as provided in the Indenture; and (iv) certain events of bankruptcy, insolvency or reorganization. If any Event of
Default at any time outstanding occurs and is continuing, either the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Securities may declare the principal amount of all Securities to be due and payable
immediately. At any time after a declaration or occurrence of acceleration with respect to the Securities has been made, but before a judgment or decree based on acceleration has been obtained, the Event of Default giving rise to such declaration of
acceleration shall, under certain circumstances, be deemed to have been waived, and such declaration and its consequences shall be deemed to have been rescinded and annulled. 

Holders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require indemnity reasonably
satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Securities may direct the Trustee in its exercise of any trust or power with
respect to the Securities. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of principal, premium (if any) or interest) if in good faith it determines that withholding notice is in their interests.
The Company must furnish an annual compliance certificate to the Trustee. 
 10.    Discharge Prior to Maturity.
The Indenture with respect to the Securities shall be discharged and canceled upon the payment of all Securities and, as provided in the Indenture, shall be discharged except for certain obligations upon the irrevocable deposit with the Trustee of
funds sufficient for such payment. 

  
 A-7 

 11.    Trustee Dealings with Company. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not Trustee. 

12.    Authentication. This Security shall not be valid until authenticated by the manual signature of an
authorized signer of the Trustee. 
 13.    CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the correctness of such numbers as
printed on the Securities and reliance may be placed only on the other identification numbers printed thereon. 

14.    Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform gifts to Minors Act). 

The Company will furnish to any Holder upon written request and without charge a copy of the Indenture. Request may be made to: 

Valero Energy Corporation 
 One Valero Way 

San Antonio, Texas 78249 
 Telephone: (210) 345-2000 
 Attention: General Counsel 

  
 A-8 

 SCHEDULE OF EXCHANGES OF SECURITY* 

The following exchanges of a part of this global Security for definitive Securities have been made: 

 

																	
	 Date of exchange
	  	Amount of decrease in
principal amount of
this global Security	 	  	Amount of increase in
principal amount of
this global Security	 	  	Principal amount of
this global Security
following such
decrease (or increase)	 	  	Signature of
authorized officer of
Trustee or Security
Registrar	 
		  				  				  				  			
		  				  				  				  			
		  				  				  				  			

  

	*	 This schedule to be included only if the Security is a Global Security. 

  
 A-9 

 ASSIGNMENT FORM 

To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to (Insert assignee’s social security
or tax I.D. number) 
 (Print or type assignee’s name, address and zip code) 

                    ,
                                         
                                         
                   and irrevocably appoint
                                         
                             as agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him. 
  

							
	Date:	 		 	Your Signature:	 	  

		 		 		 	(Sign exactly as your name appears on the face of this Security)

  

			
	 Signature

Guarantee:
	 	                                     
                                         
                                      
		 	(Participant in a Recognized Signature Guaranty Medallion Program)

  
 A-10Exhibit
10.1

EMPLOYMENT AGREEMENT

 

 

THIS AGREEMENT is entered into and
made effective as of September 4, 2020, by and between Village Bank, a Virginia corporation (the “Corporation”), and
Max C. Morehead, Jr. (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Corporation desires
to retain the services of the Executive on the terms and conditions set forth herein and, for purpose of effecting the same, the
Board of Directors of the Corporation has approved this Employment Agreement and authorized its execution and delivery on the Corporation’s
behalf to the Executive;

 

WHEREAS, the Executive has significant
experience serving in senior bank management positions, and the Corporation desires to employ the Executive as a key executive
officer of the Corporation whose dedication, availability, advice and counsel to the Corporation is deemed important to the Board
of Directors of the Corporation, the Corporation and the shareholders of Village Bank and Trust Financial Corp., the holding company
for the Corporation (the “Holding Company”);

 

WHEREAS, the services of the Executive,
his experience and knowledge of the affairs of the Corporation, and his reputation and contacts in the industry are valuable to
the Corporation;

 

WHEREAS, the Corporation wishes to
attract and retain such well-qualified executives and it is in the best interests of the Corporation and of the Executive to secure
the services of the Executive;

 

WHEREAS, the Corporation considers
the establishment and maintenance of a sound management to be part of its overall corporate strategy and to be essential to protecting
and enhancing the best interests of the Corporation and the shareholders of the Holding Company; and

 

WHEREAS, the Corporation desires
to safeguard its proprietary confidential information, retain its employees and protect itself against unfair competition.

 

NOW, THEREFORE, to assure the Corporation
of the Executive’s dedication, the availability of his advice and counsel to the Corporation, and to induce the Executive
to remain and continue in the employ of the Corporation and for other good and valuable consideration, the receipt and adequacy
whereof each party hereby acknowledges, the Corporation and the Executive hereby agree as follows:

 

		1.	EMPLOYMENT: The Corporation agrees to, and does hereby employ, the Executive, and the Executive agrees to, and
does hereby accept such employment, for the period beginning on or before September 4, 2020, and ending on September 4, 2023, which
period of employment may be extended or terminated only upon the terms and conditions hereinafter set forth.

 

		2.	TERM, EXTENSIONS OF TERM, AND CONTINUING OBLIGATIONS: This Agreement will be effective on the date set forth
above and will expire on September 4, 2023; provided that on September 4, 2022 and on each September 4st thereafter
(each such September 4st is referred to as the “Renewal Date”), this Agreement will be automatically extended
for an additional twelve (12) month period. This Agreement will not, however, be extended if either party gives written notice
of non-renewal (“Nonrenewal Notice”) at least ninety (90) days before the Renewal Date. The parties intend that the
covenants and restrictions in Sections 11 and 18 be enforceable against Executive regardless of the reason that his employment
by the Corporation may terminate and that such covenants and restrictions shall be enforceable against Executive even if this Agreement
expires after a Nonrenewal Notice is given by the Executive. The existence of any claim or cause of action by the Executive against
the Corporation, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Corporation
of the restrictive covenants and confidentiality requirements set forth in Sections 11 and 18 of this Agreement.

 

     

     

    

 

		3.	EXECUTIVE DUTIES: The Executive agrees that, during the term of his employment under this Agreement and in his
capacity as Executive Vice President – Commercial Banking, he will devote his full business time and energy to the business,
affairs and interests of the Corporation and serve it diligently, to the best of his ability and in accordance with general business
standards. The Executive, however, may devote reasonable time and energy to charitable and civic activities that enhance the reputation
and good standing of the Executive and the Corporation in the community. The Executive shall comply with all policies, standards
and regulations of the Corporation now or hereafter promulgated. The services and duties to be performed by the Executive shall
be those appropriate to his office and title as currently and from time to time hereafter specified in the Corporation’s
Bylaws or otherwise specified by the Board of Directors of the Corporation.

 

		4.	COMPENSATION:

 

(a) Base Salary. The Corporation agrees to
pay the Executive, as compensation for all services rendered by him to the Corporation during the period of his employment under
this Agreement, base salary in an annual amount of no less than $202,000, which shall be payable in monthly, semi-monthly or bi-weekly
installments in conformity with Corporation’s payroll practices for salaried employees. Such salary may be increased in the
sole and absolute discretion of the Corporation’s Board of Directors or Compensation Committee thereof duly authorized by
the Board to so act. The Board of Directors shall review the Executive’s base salary at least annually during his employment
and may increase such salary as determined in its discretion.

 

(b) Annual Bonus. The Executive shall be entitled
to an annual performance bonus based on a target of 15% of his annual base salary, provided that the Executive meets the performance
goals established by the Corporation’s Board of Directors or Compensation Committee in its discretion.

 

(c) Stock Awards and Incentive Compensation.
The Corporation may make stock awards and provide such other incentive compensation to the Executive in such amounts and at such
time as may be determined by the Corporation’s Board of Directors or Compensation Committee.

 

(d) Supplemental Executive Retirement Benefit.
The Executive will continue to be a participant in the Supplemental Executive Retirement Plan. Under such plan, the Executive is
fully-vested in a supplemental nonqualified annual cash benefit of $25,000 per year for fifteen (15) years beginning at his retirement
or as otherwise provided under the plan.

 

(e) Employee Benefits. During the term of employment
under this Agreement, the Executive will be entitled to participate in all employee benefit plans, practices and programs maintained
by the Corporation, as in effect from time to time (collectively, the “Employee Benefit Plans”), on a basis which is
no less favorable than is provided to other similarly situated officers of the Corporation, to the extent consistent with applicable
law and the terms of the applicable Employee Benefit Plans. The Corporation reserves the right to amend or cancel any Employee
Benefit Plan at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.

 

    	 	2	 

     

    

 

(f) Vacation; Paid Time-off. During the term
of employment under this Agreement, the Executive will be entitled to paid vacation on a basis which is no less favorable than
is provided to other similarly-situated officers of the Corporation, which in the Executive’s case will initially consist
of four (4) weeks of paid vacation. The Executive will also receive other paid time-off in accordance with the Corporation’s
policies as they may exist from time to time.

 

		5.	REIMBURSEMENT OF BUSINESS EXPENSES: During the term of this Agreement, to the extent that such expenditures are
substantiated by the Executive as required by the Internal Revenue Service and policies of the Corporation, the Corporation shall
reimburse the Executive promptly for all expenditures (including business related travel, business entertainment and business meetings)
made in accordance with written rules and policies established from time to time by the Board of Directors of the Corporation in
pursuance and furtherance of the Corporation’s business and good will, provided any permitted expenditures are objectively
determinable and nondiscretionary under such rules and policies. Any reimbursements hereunder shall be made by the end of the calendar
year following the calendar year in which the related expense is incurred, or on such earlier date as provided in the Corporation’s
rules and policies regarding such reimbursements.

 

		6.	ILLNESS: In the event the Executive is unable to perform the essential functions of his job, with or without
reasonable accommodations, for a period of four (4) consecutive months by reason of illness or other physical or mental disability,
the Corporation may terminate this Agreement without further or additional compensation being due the Executive from the Corporation
pursuant to this Agreement, except benefits accrued through the date of such termination under Employee Benefit Plans of the Corporation.
Executive will also be entitled to any long-term disability and other insurance or other benefits then regularly provided by the
Corporation to disabled employees of senior executive status, as well as any other insurance benefits so provided, for which Executive
qualifies. Notwithstanding any other provision in this Agreement, the Corporation will comply with the Americans with Disabilities
Act and Family Medical Leave Act.

 

		7.	DEATH: In the event of the Executive’s
death during the term of this Agreement, this Agreement shall terminate as of the end of the month in which the Executive dies.
This Section 7 shall not affect the rights of any person under other contracts between the Executive and the Corporation or under
any life insurance policy.

 

		8.	TERMINATION WITHOUT CAUSE/RESIGNATION FOR GOOD
REASON:

 

		(a)	Notwithstanding the provisions of Section 1 hereof, the Board of Directors of the Corporation may terminate the Executive’s
employment under this Agreement at any time by giving not less than thirty (30) days written notice to the Executive. The Executive
may resign for Good Reason (as hereafter defined) at any time by giving not less than thirty (30) days written notice to the Corporation.
It shall not constitute a breach of this Agreement for the Corporation to suspend Executive’s duties and to place the Executive
on a paid leave during the thirty (30) day notice period. If the Corporation terminates the Executive’s employment without
Cause (as hereafter defined) or the Executive resigns for Good Reason, then in either event the Executive shall receive the following,
provided that the Executive signs a release and waiver of claims reasonably satisfactory to the Corporation and such
release and waiver has become effective:

 

    	 	3	 

     

    

 

		(i)	The Executive shall be paid the Executive’s Final Compensation. For purposes of this Agreement, “Final Compensation”
means (a) the annual base salary in effect on the date of termination (or the annual base salary in effect immediately prior to
a reduction in the Executive’s base salary in the event the Executive resigns for Good Reason based on Section 8(b)(iii)
hereunder) and (b) an annual bonus amount equal to 15% of annual base salary. The payment of Final Compensation shall be made over
twelve (12) months in installments such that the Final Compensation payments are made at the same time as Executive would have
received his base salary.

 

		(ii)	Payments under (i) above shall be made or commence upon the Executive’s termination of employment, subject to the satisfaction
of the release and waiver condition set forth above.

 

		(iii)	If the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985
(“COBRA”), the Corporation shall reimburse the Executive for the difference between the monthly COBRA premium amount
paid by the Executive for his and his eligible dependents’ group health insurance coverage and the monthly premium amount
paid by similarly situated active employees of the Corporation. Such reimbursement shall be paid to the Executive by the tenth
day of the month immediately following the month in which the Executive timely remits the COBRA premium payment. The Executive
shall be eligible to receive such reimbursement until the earliest of: (A) twelve (12) months following the Executive’s termination;
or (B) the date on which the Executive becomes eligible to receive substantially similar coverage from another employer. If Executive
becomes ineligible for COBRA coverage before either of these events occur, the Corporation shall continue payments in the same
amount to Executive for the remainder of the applicable time period. Notwithstanding the foregoing, if the Corporation’s
payments under this Section 8(a)(iii) would violate the nondiscrimination rules applicable to non-grandfathered plans or would
result in the imposition of penalties under applicable law, the parties agree to reform this Section 8(a)(iii) in a manner as is
necessary to comply with applicable law.

 

		(iv)	The Executive shall thereon have no further recourse, and the Corporation shall have no further obligation, under this Agreement,
provided that if the Executive breaches or fails to comply with any of the covenants and restrictions in Sections 11 and 18 then
the Corporation shall have no obligation to make any payments under this Section 8(a), such remedy being in addition to any other
remedies available to the Corporation under this Agreement or applicable law in connection with such breach or failure.

 

		(b)	For purposes of this Agreement, “Good Reason”
shall mean:

 

		(i)	The assignment of duties to the Executive by the Corporation which (A) are materially different from the Executive’s
duties on the date hereof, or (B) result in the Executive having significantly less authority and/or responsibility than he has
on the date hereof, without his express written consent;

 

		(ii)	The removal of the Executive from, or any failure to re-elect him to, the position of Executive Vice President Commercial Banking
of the Corporation, except in connection with a termination of his employment by the Corporation for Cause or by reason of the
Executive’s death or disability;

 

		(iii)	A reduction by the Corporation of the Executive’s then current base salary without the Executive’s written consent;

 

    	 	4	 

     

    

 

		(iv)	A material reduction by the Corporation without the Executive’s written consent of the fringe benefits (including, without
limitation, paid vacations, Supplemental Executive Retirement Plan and short and long term incentive compensation arrangements,
including vesting provisions related to the Supplemental Executive Retirement Plan and short and long term incentive compensation
arrangements) that were provided to the Executive immediately prior to the date thereof, provided that a material reduction of
fringe benefits does not occur in connection with the elimination or reduction of a fringe benefit for which the Corporation substitutes
a fringe benefit or payment of substantially equal value;

 

		(v)	The failure of the Corporation to obtain the assumption of, and agreement to perform, this Agreement by any successor; or

 

		(vi)	The Corporation giving a Nonrenewal Notice to the Executive.

 

Notwithstanding the above, Good Reason shall not include
any resignation by the Executive where Cause for his termination by the Corporation exists.

 

		(c)	Resignation by the Executive for Good Reason shall be communicated by a written Notice of Resignation to the Corporation. A
 “Notice of Resignation” shall mean a notice which shall indicate the specific provision(s) in this Agreement relied
upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for a resignation for Good
Reason. The notice must be delivered to the Corporation within ninety (90) days of the initial occurrence of the event or condition
alleged to constitute Good Reason. Upon delivery of such notice by the Executive, the Corporation shall have a period of twenty
(20) days during which it may remedy in good faith the event or condition constituting Good Reason and the Executive’s employment
shall continue in effect during such time so long as the Corporation is making diligent efforts to cure. In the event the Corporation
shall remedy in good faith the event or condition constituting Good Reason, then such notice of termination shall be null and void,
and the Corporation shall not be required to pay the amount due to the Executive under Section 8(a).

 

		(d)	If within thirty (30) days after any Notice of Resignation is given, the Corporation notifies the Executive that a dispute
exists concerning the resignation for Good Reason and that it is requesting arbitration pursuant to Section 17, the Corporation
shall continue to pay the Executive his full base salary as described in Section 4, when due and payable under the Corporation’s
payroll procedures, at least until such time as a final decision is reached by the panel of arbitrators, but subject to the limitation
in Section 8(a)(i) on the duration of such payments. If Good Reason for resignation by the Executive is ultimately determined not
to exist, then all sums paid by the Corporation to the Executive, from the date of such resignation to the date of the resolution
of such dispute shall be promptly repaid by the Executive to the Corporation with interest at the rate charged from time to time
by the Corporation to its most substantial customers for unsecured extensions of credit. Should it ultimately be determined that
Good Reason for resignation by the Executive exists, then the Executive shall be entitled to retain all sums paid to him, pending
the resolution of such dispute and he shall be entitled to receive the payments and other benefits provided for in Section 8(a).

 

A failure by the Corporation to notify the Executive
that a dispute exists concerning the resignation for Good Reason within thirty (30) days after any Notice of Resignation is given
shall constitute a final waiver by the Corporation of its right to contest either that such resignation was for Good Reason or
its obligations to the Executive under Section 8(a) hereof.

 

    	 	5	 

     

    

 

		(e)	If the Executive’s employment terminates after a Change of Control (as defined in Section 10 hereof), the payments to
which he is entitled pursuant to Section 10 shall be in lieu of any payment to which he might otherwise be entitled under the terms
of Section 8(a)(i).

 

		(f)	The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement under Section 8(a)
by seeking other employment or otherwise.

 

		9.	RESIGNATION, TERMINATION FOR CAUSE, REGULATORY TERMINATION: The Corporation or the Executive may terminate this
Agreement, with or without Cause, subject to the following conditions:

 

		(a)	Notwithstanding the provision of Section 1 of this
Agreement, the Board of Directors of the Corporation may, in its sole discretion, terminate the Executive’s employment for
Cause. For the purpose of this Agreement, “Cause” shall mean material failure of the Executive to perform his duties
under this Agreement, unlawful or unethical business conduct, dishonesty, willful violation of any law, rule, or regulation (other
than traffic violations or similar offenses), a material violation of the Corporation’s work rules, Code of Ethics or policies,
or a material breach of this Agreement. The Board of Directors shall not, however, terminate the Executive’s employment
based on the Executive’s material failure to perform his duties under this Agreement, his material violation of the Corporation’s
work rules, Code of Ethics or policies, or his material breach of this Agreement, without first providing him written notice of
any such failure or breach and a reasonable period of time, not less than ten (10) days, in which to remedy such failure or breach.

 

		(b)	In the event the Executive resigns from or otherwise voluntarily terminates his employment with the Corporation at any time
(other than for Good Reason), or if the Corporation terminates the Executive’s employment for Cause, the Corporation thereafter
shall have no obligation to make any further payments under this Agreement.

 

		(c)	If the Executive is suspended and/or prohibited from participating in the conduct of the Corporation’s affairs by a notice
served under the Federal Deposit Insurance Act or any other regulatory authority, the Corporation’s obligations under this
Agreement shall be terminated and the Corporation thereafter shall have no obligation to make any further payments under this Agreement.

 

		10.	CHANGE OF CONTROL:

 

		(a)	Notwithstanding any other provision in this Agreement, if the Executive’s employment is terminated by the Executive for
Good Reason, or by the Corporation on account of its giving a Nonrenewal Notice in accordance with Section 2, or by the Corporation
without Cause (other than on account of the Executive’s death or incapacity as described in Section 6), in each case within
twenty-four (24) months following a Change of Control, then the payments set forth in Section 8(a) shall be replaced by the following,
provided that the Executive signs a release and waiver of claims reasonably satisfactory to the Corporation and such
release and waiver has become effective:

 

    	 	6	 

     

    

 

		(i)	The Executive shall be paid a lump sum equal to two (2) times his Final Compensation, as defined in Section 8(a)(i).

 

		(ii)	Payments under (i) above shall be made within forty-five (45) days of the Executive’s termination of employment, subject
to the satisfaction of the release and waiver condition set forth above.

 

		(iii)	If the Executive timely and properly elects continuation coverage under COBRA, the Corporation shall reimburse the Executive
for the difference between the monthly COBRA premium amount paid by the Executive for his and his eligible dependents’ group
health insurance coverage and the monthly premium amount paid by similarly situated active employees. Such reimbursement shall
be paid to the Executive by the tenth day of the month immediately following the month in which the Executive timely remits the
COBRA premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (A) twelve (12) months
following the Executive’s termination; or (B) the date on which the Executive becomes eligible to receive substantially similar
coverage from another employer. If Executive becomes ineligible for COBRA coverage before either of these events occur, the Corporation
shall continue payments in the same amount to Executive for the remainder of the applicable time period. Notwithstanding the foregoing,
if the Corporation’s payments under this Section 8(a)(iii) would violate the nondiscrimination rules applicable to non-grandfathered
plans or would result in the imposition of penalties under applicable law, the parties agree to reform this Section 8(a)(iii) in
a manner as is necessary to comply with applicable law.

 

		(iv)	The Executive shall thereon have no further recourse, and the Corporation shall have no further obligation, under this Agreement.

 

		(b)	For purposes of this Agreement, a “Change of Control” shall mean (i) the acquisition by any “person”
or “group” (as defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), other than Kenneth R. Lehman, the Holding Company, any subsidiary of the Holding Company or any employee benefit
plan of the Holding Company or any Holding Company subsidiary, directly or indirectly, as “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act) of securities of the Holding Company representing fifty percent (50%) or more of either the
then outstanding shares of common stock or the combined voting power of the then outstanding securities of the Holding Company;
(ii) the acquisition by Kenneth R. Lehman, individually or as part of a group, as “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act) of securities of the Holding Company representing sixty-six and two-thirds percent (66 2/3%)
or more of either the then outstanding shares of common stock or the combined voting power of the then outstanding securities of
the Holding Company; (iii) either a majority of the directors of the Holding Company elected at the Holding Company’s most
recent annual shareholders meeting shall have been nominated for election other than by or at the direction of the “incumbent
directors” of the Holding Company, or the “incumbent directors” shall cease to constitute a majority of the directors
of the Holding Company (the term “incumbent director” shall mean any director who was a director of the Holding Company
on September 4, 2020 and any individual who becomes a director of the Holding Company subsequent to September 4, 2020 and who is
elected or nominated by or at the direction of at least two-thirds of the then incumbent directors); (iv) the Holding Company consummates
a reorganization, merger, share exchange, consolidation or other business combination (a “Reorganization”) with any
other “person” or “group” (as defined in Sections 13(d) and 14(d) of the Exchange Act) or affiliate
thereof, other than a Reorganization that would result in the outstanding common stock of the Holding Company immediately prior
thereto continuing to represent, either by remaining outstanding or by being converted into common stock of the surviving entity
or a parent or affiliate thereof, at least fifty percent (50%) of the common stock of the Holding Company or such surviving entity
or a parent or affiliate thereof outstanding immediately after the Reorganization; or (v) a plan of complete liquidation of the
Holding Company or an agreement for the sale or disposition by the Holding Company of all or substantially all of the Holding Company’s
assets.

 

    	 	7	 

     

    

 

		(c)	The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement under Section 10(a)
by seeking other employment or otherwise.

 

		11.	COVENANTS:

 

		(a)	During the term of this Agreement and throughout any further period that he is an employee of the Corporation, and for the
longer of:

 

(x)       twelve
(12) months from and after the date that Executive is (for any reason) no longer employed by the Corporation; or

 

(y)       for
a period of twelve (12) months from the date of entry by a court of competent jurisdiction of a final judgment enforcing this covenant
in the event of a breach by the Executive,

 

the Executive covenants and agrees that he will not,
directly or indirectly, compete with the Corporation by performing job functions similar to those he is performing under this Agreement,
including the supervision of employees engaged in banking operations similar to those in which the Corporation is engaged, for
any bank or bank holding company within thirty-five (35) miles of the headquarters of the Corporation or within five (5) miles
of any bank branch that was in operation at the time the Executive’s employment with the Corporation ceased.

 

		(b)	During the term of this Agreement and throughout any further period that he is an employee of the Corporation, and for the
longer of:

 

(x)       twelve
(12) months from and after the date that the Executive is (for any reason) no longer employed by the Corporation; or

 

(y)       for
a period of twelve (12) months from the date of entry by a court of competent jurisdiction of a final judgment enforcing this covenant
in the event of a breach by the Executive,

 

the Executive will not, directly or indirectly, on behalf
of the Executive or any other person or entity, solicit or induce, or attempt to solicit or induce, any person then employed by
the Corporation to terminate the employee’s employment with the Corporation.

 

		(c)	During the term of this Agreement and throughout any further period that he is an employee of the Corporation, and for the
longer of:

 

(x)       twelve
(12) months from and after the date that the Executive is (for any reason) no longer employed by the Corporation; or

 

    	 	8	 

     

    

 

(y)       for
a period of twelve (12) months from the date of entry by a court of competent jurisdiction of a final judgment enforcing this covenant
in the event of a breach by the Executive,

 

the Executive will not, except to the extent necessary
to carry out his duties as an employee of the Corporation, directly or indirectly provide Competitive Services (as defined below)
to any Customer (as defined below), and shall not, directly or indirectly, on behalf of the Executive or any other person or entity,
solicit or divert away or attempt to solicit or divert away any Customer of the Corporation for the purpose of selling or providing
Competitive Services, provided the Corporation is then still engaged in the sale or provision of Competitive Services.

 

		(d)	It is agreed that notwithstanding the above to the contrary, Executive may engage in business ventures as long as they are
not competitive with the Corporation.

 

		(e)	For purposes of this Agreement, the term “Customer” means any individual or entity to whom or to which the Corporation
provided Competitive Services, and with whom or with which the Executive had contact in connection with the delivery of such Competitive
Services, within two (2) years of the date on which the Executive’s employment terminates.

 

		(f)	For purposes of this Agreement, “Competitive Services” means providing commercial and consumer financial products
and services that, as of the date of this Agreement or as of the date of termination of employment, as the case may be, are provided
to Customers of the Corporation, whether such services are provided directly by the Corporation or by others under a contractual
arrangement with the Corporation.

 

		(g)	The Executive agrees that the covenants in this Section 11 are reasonably necessary to protect the legitimate interests of
the Corporation, are reasonable with respect to the time and territory and do not interfere with the interests of the public. The
Executive further agrees that the descriptions of the covenants contained in this Section 11 are sufficiently accurate and definite
to inform the Executive of the scope of the covenants. Finally, the Executive agrees that the consideration set forth in this Agreement
is full, fair and adequate to support the Executive’s obligations hereunder and the Corporation’s rights hereunder.
The Executive acknowledges that in the event the Executive’s employment with the Corporation is terminated for any reason,
the Executive will be able to earn a livelihood without violating such covenants.

 

		(h)	The parties have attempted to limit the Executive’s right to compete only to the extent necessary to protect the Corporation
from unfair competition. The parties recognize, however, that reasonable people may differ in making such a determination. Accordingly,
the parties intend that the covenants contained in this Section 11 to be completely severable and independent, and any invalidity
or unenforceability of any one or more such covenants will not render invalid or unenforceable any one or more of the other covenants.
The parties further agree that, if the scope or enforceability of a covenant contained in this Section 11 is in any way disputed
at any time, and if permitted by applicable law and public policy, a court or other trier of fact may modify and reform such provision
to substitute such other terms as are reasonable to protect the Corporation’s legitimate business interests.

 

    	 	9	 

     

    

 

		(i)	The Executive agrees that, given the nature of the positions held by the Executive with the Corporation, each and every one
of the covenants and restrictions set forth in this Agreement above are reasonable in scope, length of time and geographic area
and are necessary for the protection of the significant investment of the Corporation in developing, maintaining and expanding
its business. Accordingly, the parties hereto agree that in the event of any breach by the Executive of any of the provisions of
Sections 11 and/or 18 of this Agreement that monetary damages alone will not adequately compensate the Corporation for its losses
and, therefore, that it shall be entitled to any and all legal or equitable relief available to it, specifically including, but
not limited to, injunctive relief, and the Executive shall be liable for all damages, including actual and consequential damages,
costs and expenses, and legal costs and actual attorney’s fees incurred by the Corporation as a result of taking action to
enforce, or recover for any breach of Section 11 or 18.

 

		(j)	The Executive covenants that he is not the subject of any contract that prevents him from executing this Agreement and performing
the duties of Executive Vice President Commercial Banking. The Executive further covenants that he is not subject to any covenants
or obligations not to compete and is not subject to any other restrictions or obligations which would prevent him from fulfilling
the duties specified in this Agreement.

 

		(k)	Notwithstanding anything in this Agreement to the contrary, in the event that the Corporation gives the Executive a Nonrenewal
Notice pursuant to Section 2 of this Agreement, the restrictive covenants described in subparagraphs (a), (b) and (c) of this Section
11 shall apply only during the term of this Agreement and throughout any further period that Executive is an employee of the Corporation.

 

		12.	NOTICES: For the purposes of this Agreement, notices and all other communications provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

 

		If to the Executive:	Max C. Morehead, Jr.

16525
Saville Chase Road

Midlothian, VA 23112 

 

		If to the Corporation:	James E. Hendricks, Jr.,

President
and Chief Executive Officer

Village Bank

P.O. Box 330

Midlothian, Virginia 23112

 

		With a copy to:	Craig D. Bell Esquire

Chairman of the Board of Directors

McGuire Woods, LLP

901 East Cary Street

Richmond, Virginia 23219-4030

 

or at such other address as any party may have furnished
to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

    	 	10	 

     

    

 

		13.	MODIFICATION, WAIVERS, APPLICABLE LAW: No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing, signed by the Executive and on behalf of the Corporation by such
officer as may be specifically designated by the Board of Directors of the Corporation. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar provision or conditions at the same or at any prior or subsequent
time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been
made by either party, which are not set forth expressly in this Agreement. The validity, interpretation, construction and performance
of this Agreement shall be governed by the laws of the Commonwealth of Virginia.

 

		14.	INVALIDITY, ENFORCEABILITY: The invalidity or unenforceability of any provisions of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

		15.	SUCCESSOR RIGHTS: This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should
die while any amounts would still be payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid
in accordance with the terms of this Agreement to his executor or, if there is no such executor, to his estate.

 

		16.	HEADINGS: Descriptive headings contained in this Agreement are for convenience only and shall not control or
affect the meaning or construction of any provision hereof.

 

		17.	ARBITRATION: With the exception of Sections 11 and 18 and the enforcement of these sections in accordance with
Section 11(i), all other claims under this Agreement will be resolved by binding arbitration. Any dispute, controversy or claim
arising under or in connection with this Agreement shall be settled exclusively by arbitration, in Richmond, Virginia in accordance
with the Employment Arbitration Rules and Procedures Rules of JAMS then in effect. The Corporation shall pay all administrative
fees associated with such arbitration. Judgment may be entered on the arbitrator’s award in any court having jurisdiction.
Unless otherwise provided in the rules of the American Arbitration Association, the arbitrators shall, in their award, allocate
between the parties the costs of arbitration, which shall include reasonable attorneys’ fees and expenses of the parties,
as well as the arbitrator’s fees and expenses, in such proportions as the arbitrator deems just.

 

		18.	CONFIDENTIALITY: Executive covenants and agrees that any and all proprietary information maintained as confidential
by the Corporation and concerning the customers or businesses and services of the Corporation of which he has knowledge as a result
of his association with the Corporation in any capacity, shall be deemed confidential in nature and shall not, without the proper
written consent of the Corporation, be directly or indirectly used, disseminated, disclosed or published by the Executive to third
parties other than in connection with the usual conduct of the business of the Corporation, or as required by law or the Corporation’s
Code of Ethics. Such information shall expressly include, but shall not be limited to, confidential and proprietary information
concerning the Corporation’s trade secrets within the meaning of the Virginia Trade Secrets Act, business operations, business
records, documented customer lists or other confidential customer information. Upon termination of employment, the Executive shall
deliver to the Corporation all property in his possession which belongs to the Corporation including all originals and copies of
documents, forms, records or other information, in whatever form it may exist, concerning the Corporation or its business, customers,
products or services. This Section 18 shall not be applicable to any information which, through no misconduct or negligence of
Executive, has been disclosed to the public by anyone other than Executive.

 

    	 	11	 

     

    

 

		19.	409A COMPLIANCE:

 

		(a)	The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code (“Code”)
Section 409A. Accordingly, to the maximum extent permitted under Code Section 409A, the terms of this Agreement, including, without
limitation, “termination” and “termination of employment,” and similar terms, shall be interpreted to be
in compliance with Code Section 409A. In no event whatsoever shall the Corporation be liable for any additional tax, interest or
penalty that may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A.

 

		(b)	Notwithstanding any other payment schedule provided herein to the contrary, if the Executive is deemed on the date of termination
to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then each of the following
shall apply:

 

		(i)	With regard to any payment that is considered deferred compensation under Code Section 409A payable on account of a “separation
from service,” such payment shall be made on the date which is the earlier of (x) the expiration of the six (6)-month period
measured from the date of such ‘separation from service’ of the Executive, and (y) the date of the Executive’s
death (the “Delay Period”) to the extent required under Code Section 409A. Upon the expiration of the Delay Period,
all payments delayed pursuant to this Section 19 (whether they would have otherwise been payable in a single sum or in installments
in the absence of such delay) shall be paid to the Executive in a lump sum, and all remaining payments due under this Agreement
shall be paid or provided in accordance with the normal payment dates specified for them herein; and

 

		(ii)	To the extent that any benefits to be provided during the Delay Period is considered deferred compensation under Code Section
409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Code Section
409A, the Executive shall pay the cost of such benefits during the Delay Period, and the Corporation shall reimburse the Executive,
to the extent that such costs would otherwise have been paid by the Corporation or to the extent that such benefits would otherwise
have been provided by the Corporation at no cost to the Executive, the Corporation’s share of the cost of such benefits upon
expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Corporation in accordance with
the procedures specified herein.

 

		(c)	All expenses or other reimbursements under this Agreement shall be made promptly and in any event on or prior to the last day
of the taxable year following the taxable year in which such expenses were incurred by the Executive (provided that if any such
reimbursements constitute taxable income to the Executive, such reimbursements shall be paid no later than March 15th
of the calendar year following the calendar year in which the expenses to be reimbursed were incurred), no such reimbursement or
expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any
other taxable year and the Executive’s right to reimbursement shall not be subject to liquidation in exchange for any other
benefit.

 

		(d)	For purposes of Code Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement
shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies
a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days”), the actual
date of payment within the specified period shall be within the sole discretion of the Corporation.

 

    	 	12	 

     

    

 

		(e)	In no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Code
Section 409A be offset by any other payment pursuant to this Agreement or otherwise.

 

		20.	REGULATORY REQUIREMENTS AND CLAWBACK: Notwithstanding anything contained in this Agreement to the contrary, it
is understood and agreed that the Corporation (or any of its successors in interest) shall not be required to make any payment
or take any action under this Agreement if:

 

		(a)	such payment or action is prohibited by any governmental agency having jurisdiction over the Corporation or any of its subsidiaries
(hereinafter referred to as “Regulatory Authority”) because the Corporation or any of its subsidiaries is declared
by such Regulatory Authority to be insolvent, in default or operating in an unsafe or unsound manner; or

 

		(b)	such payment or action (i) would be prohibited by or would violate any provision of state or federal law applicable to the
Corporation, including, without limitation, the Emergency Economic Stabilization Act of 2008 and the Federal Deposit Insurance
Act, each as now in effect or hereafter amended, (ii) would be prohibited by or would violate any applicable rules, regulations,
orders or statements of policy, whether now existing or hereafter promulgated, of any Regulatory Authority, or (iii) otherwise
would be prohibited by any Regulatory Authority.

 

		(c)	Executive agrees that any incentive based compensation or award that he receives, or has received, from the Corporation under
this Agreement or otherwise, will be subject to clawback by the Corporation as may be required by applicable law or stock exchange
listing requirement and on such basis as the Board of Directors of the Corporation determines, but in no event with a look-back
period of more than three years, unless required by applicable law or stock exchange listing requirement.

 

		21.	POSSIBLE REDUCTION IN PAYMENT AND BENEFITS: No amounts will be payable and no benefits will be provided under
this Agreement to the extent that such payments or benefits, together with other payments or benefits under other plans, agreements
or arrangements, would make the Executive liable for the payment of an excise tax under Code Section 4999 or any successor provision.
The amounts otherwise payable and the benefits otherwise to be provided under this Agreement shall be reduced in a manner determined
by the Corporation (by the minimum possible amount) that is consistent with the requirements of Code Section 409A until no amount
payable to the Executive will be subject to such excise tax. All calculations and determinations under this Section 21 shall be
made by an independent accounting firm or independent tax counsel appointed by the Corporation (the “Tax Advisor”)
whose determinations shall be conclusive and binding on the Corporation and the Executive for all purposes. The Tax Advisor may
rely on reasonable, good faith assumptions and approximations concerning the application of Code Section 280G and Code Section
4999. The Corporation shall bear all costs of the Tax Advisor. In the event that the payment to the Executive under Sections 8(a)(i)
or 10(a)(i) is reduced in accordance with this paragraph, the length of the noncompete and nonsolicitation periods described in
Sections 11(a), 11(b) and 11(c) shall be reduced proportionally. For example and for illustrative purposes, if the payment is reduced
by 50%, the noncompete and nonsolicitation periods shall be reduced by 50%.

 

 

(Signatures
appear on the following page)

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF, the parties have
executed this Agreement effective as of the date first above written.

 

 

	 	EXECUTIVE	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/
    Max C. Morehead, Jr.	 
	 	 	Max C. Morehead, Jr. 	 
	 	 	 	 
	 	Date:  	September
    4, 2020	 
	 	 	 	 
	 	 	 	 
	 	VILLAGE BANK	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/
    James E. Hendricks, Jr.	 
	 	 	James E. Hendricks, Jr.	 
	 	 	President and Chief Executive Officer	 
	 	 	 	 
	 	Date:	September
    4, 2020	 

 

 

    	 	14

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