Document:

Stock Option Agreement dated November 11, 2004

 EXHIBIT 10.22 
 INCENTIVE STOCK OPTION AGREEMENT 
 THIS AGREEMENT, made this the 11th day of November 2004, between VALLEY FINANCIAL CORPORATION, A Virginia corporation, (the “Company”), and John T.
McCaleb, an employee of the Company or its subsidiary, Valley Bank, (hereinafter called “Employee”); 
 WITNESSETH 
 THAT, WHEREAS, the Human Resources Committee of the Board of Directors of the Company has determined that the fair market value of the Company’s
Common Stock, no par value (“Common Stock”), on this date is $14.23; and 
 WHEREAS, the Human Resources Committee has authorized
the execution and delivery of this Agreement; 
 NOW, THEREFORE, in consideration of the premises, it is hereby agreed: 
 (1) INCENTIVE STOCK OPTION GRANTED. The Company hereby grants to the Employee the option to purchase 6500 shares of the Common Stock of the company at a
purchase price of $14.23 per share during the ten (10) year period beginning with the date of this agreement. 
 (2) EXERCISE OF OPTION.
This INCENTIVE STOCK OPTION shall be exercisable by the Employee only when such option becomes vested in accordance with the vesting schedule attached as Exhibit A. This INCENTIVE STOCK OPTION is not exercisable during the first six months following
its grant, except in the event of the death of the Employee. 
 Notwithstanding the language in the preceding paragraph, the aggregate fair
market value (determined as of the date of this Agreement) of Common Stock exercisable for the first time by the Employee under this INCENTIVE STOCK OPTION during any calendar year is limited to $100,000. Accordingly, the option, subject to the
requirements of the preceding paragraph, is first exercisable by the Employee as follows: 
 2005 - $18,499.00; 2006 - $36,998.00; 2007 - $55,497.00; 2008 -
$73,996.00; 2009 - $92,495.00. 
 The Employee may exercise this INCENTIVE STOCK OPTION by giving written notice of exercise to the Company
on a form or forms supplied by the Company, specifying the number of shares with regard to which this INCENTIVE STOCK OPTION is being exercised. 
 The exercise of this INCENTIVE STOCK OPTION and the issuance of Common Stock hereunder are expressly conditioned upon, and subject to, a registration statement covering such shares being filed with the Securities and Exchange Commission
(the “Commission”) pursuant to the Securities Act of 1933 and such registration statement being declared effective by order of the Commission and satisfaction of all state securities law requirements. 
 The Employee acknowledges receipt of a copy of the Plan dated January 19, 1995, and all amendments thereto, and Company’s Annual Report for the
last fiscal year and any current Quarterly Report. The Employee hereby accepts this INCENTIVE STOCK OPTION subject to all terms and provisions of the Plan and agrees to accept as binding, conclusive and final all decisions and interpretations of the
Human Resources Committee. 

 In the event the undersigned Employee is a member of Company’s Control Group, the undersigned shall,
at and after the time that the Company’s Common Stock is registered under Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”), be subject to the reporting requirements of Section 16(a) of the Exchange Act,
as well as the short-swing profit limitations of Section 16(b) of the Exchange Act. The Employee acknowledges that the grant of this INCENTIVE STOCK OPTION will constitute a “purchase” or “acquisition” under
Section 16(b) of the Exchange Act if (i) less than six months elapses between the date of this option grant and the date of the sale of the option stock, or (ii) upon exercise of this INCENTIVE STOCK OPTION, the exercise price is
greater than the market price of the Common Stock acquired. 
 (3) TERMINATION OF OPTION. All rights to exercise this INCENTIVE STOCK OPTION
shall terminate three (3) months after the Employee ceases to be an employee for any reason other than death or retirement, but in any event ten (10) years from the date of this Agreement. The employment relationship, however, will be
treated as continuing intact while the Employee is on military or sick leave if the period of such leave does not exceed ninety (90) days, or, if longer, so long as the Employee’s right to reemployment is guaranteed either by statute or
contract. 
 (4) TRANSFERABILITY OF OPTION. This INCENTIVE STOCK OPTION is not transferable other than by will or by the laws of descent and
distribution or pursuant to a qualified domestic relations order as defined by the Internal Revenue Code of 1986, as amended, and during the Employee’s lifetime is exercisable only by him or by his guardian or legal representative. 

(5) OPTION RIGHTS IN EVENT OF DEATH OR RETIREMENT. In the event of the death of the Employee before the exercise or expiration of this INCENTIVE STOCK
OPTION, such person or persons as shall be entitled by Employee’s will or the laws of descent and distribution to exercise it or, if there be no such person, then the executors or administrators of the estate of the deceased Employee, may
exercise the option at any time within one (1) year following the Employee’s death, but only on the terms and conditions contained in the option and in any event prior to the expiration date of the option period. In any such case, payment
shall be made in full at the time of the exercise. 
 (6) ADJUSTMENTS. Should the Company effect one or more stock dividends, stock
split-ups, combinations, reclassifications, recapitalizations or the like, or be a party to any plan of merger, consolidation, recapitalization, reorganization, combination or exchange of shares, separation or liquidation, then the Employee shall be
entitled to an adjustment in the terms of this INCENTIVE STOCK OPTION to the extent permitted by the applicable provisions of the Internal Revenue Code (relating to qualified stock options), in order to prevent the Employee’s rights under this
Agreement from being materially adversely affected or impaired. 
 (7) PAYMENT FOR STOCK. Payment for shares purchased upon the exercise of
this INCENTIVE STOCK OPTION in whole or in part shall be made in cash, except that if authorized by the Human Resources Committee in writing, the exercise price may also be paid by (i) the delivery of shares of Company Common Stock with a fair
market value equal to the exercise price or (ii) a combination of cash and Company Common Stock equal to the exercise price. 
 Notification of the amount due and prior to, or concurrently with, the delivery of the Employee of a certificate representing any shares purchased pursuant to the exercise of this INCENTIVE STOCK OPTION, the Employee shall promptly pay to
the Company any amount necessary to satisfy applicable federal, state or local tax requirements. Further, upon disposition of shares of Common Stock acquired pursuant to the exercise of this INCENTIVE STOCK OPTION, the Company shall require the
payment of the amount of taxes, if any, which are required by law to be withheld or otherwise paid with regard to such disposition. 

 (8) OPTION HOLDER NOT STOCKHOLDER. The Employee or his legal representatives, as the case might be, shall
not have any of the rights or privileges of a stock holder of the Company in respect of any of the shares issuable upon the exercise of this INCENTIVE STOCK OPTION unless and until certificates representing such shares shall have been issued and
delivered. 
 (9) SURRENDER FOR STOCK APPRECIATION RIGHT. Any part or all of this INCENTIVE STOCK OPTION which has to be surrendered for
exercise of a related Stock Appreciation Right shall no longer be exercisable to the extent the related Stock Appreciation Right has been exercised. 
 (10) EARLY DISPOSITION. If the Employee disposes of any share or shares acquired by the Employee within two years from the date of this Agreement or within one year following the transfer of such share or shares to
the Employee by the Company, whichever is later, the Employee shall not be qualified for favorable tax treatment under the Internal Revenue Code and must include in his taxable income for the year of such disposition the difference between the fair
market value of the share or shares disposed of at the time of this acquisition under this Agreement and the exercise price paid for such share or shares by the Employee at said time of acquisition. If the Employee makes an early disposition of any
such share or shares in violation of the preceding sentence, the Employee shall promptly pay to the Company the amount of any federal, state, or local taxes, if any, which are required to be withheld or otherwise paid by the Employee with regard to
such early disposition. 
 (11) GOVERNING LAW. This Agreement shall be governed by Virginia law and shall be binding upon the parties hereto,
their heirs, successors and assigns. 
  

			
	 VALLEY FINANCIAL CORPORATION

		
	 By:
	 	 /s/ Ellis L. Gutshall

		 	 President and CEO

  

	
	
	 /s/ John T. McCaleb

	 John T. McCaleb

 EXHIBIT “A” 
 VESTING SCHEDULE 
 The INCENTIVE STOCK OPTION as granted hereunder shall vest in accordance with the
following schedule: 
  

			
	 Vesting Percentage
	  	 Date Upon Which Vesting Percentage Applies

	 20%
	  	First year anniversary of the grant of the Incentive Stock Options hereunder (“Date of Grant”)
	 40%
	  	Second year anniversary of date of grant
	 60%
	  	Third year anniversary of date of grant
	 80%
	  	Fourth year anniversary of date of grant
	 100%  
	  	Fifth year anniversary of date of grantRestricted Stock Agreement Dated July 5, 2005

 EXHIBIT 10.23 
 VALLEY FINANCIAL CORPORATION 
 RESTRICTED STOCK
AGREEMENT 
 July 5, 2005 
 John T. McCaleb 
 Valley Bank 
 Dear John, 

I am pleased to inform you that effective as of July 5, 2005, Valley Financial Corporation (the “Company”) approved a grant to you of
shares of Company common stock, subject to the restrictions described below (the “Restricted Shares”). The grant is subject to the terms and conditions of this letter agreement (the “Agreement”) and the Valley Financial
Corporation 2005 Key Employee Equity Award Plan (the “Plan”), a copy of which has been provided to you, receipt of which is hereby acknowledged. The terms of the Plan are incorporated into this Agreement by reference. In the case of any
inconsistency between the Plan and this Agreement, the terms of the Plan shall control. Any term used in this Agreement that is defined in the Plan shall have the same meaning given to that term in the Plan. 
 5. Restricted Stock Award. The Company shall transfer 500 Restricted Shares to you as of July 5, 2005, (the “Grant Date”). The fair
market value of the Restricted Shares as of the Grant Date has been determined by the Company to be $12.50 per share. You have the right to elect to include the value of the Restricted Shares in gross income in the year of transfer pursuant to
Internal Revenue Code section 83(b) by completing the “Election to Include Value of Restricted Property in Gross Income in Year of Transfer Under Code Section 83(b)” form (the “83(b) Election Form”), attached as Exhibit A to
this Agreement. 
 6. Restrictions. Except as provided in this Agreement, the Restricted Shares are nontransferable and are subject to
a substantial risk of forfeiture. Your interest in the Restricted Shares shall become transferable and non-forfeitable (“Vested”) as of the date provided in Section 3 of this Agreement (the “Vesting Date”), if you are an
employee of the Company as of the applicable Vesting Date and have been so employed throughout the period beginning on the date of this Agreement and ending on the applicable Vesting Date and all of the following conditions have been satisfied in
their entirety based on the Company’s financial statements for the years ending December 31, 2005, 2006 and 2007, respectively: 
  

	 	a)	The Company shall have total assets of at least $600,000,000.00 as of December 31, 2007; and 

	 	b)	The Company shall have achieved at least 15% average annual earnings per share growth year to year for each of the three fiscal years ending December 31, 2005, 2006 and 2007;
and 

  

	 	c)	The Company shall have at least a 15% return on average equity for fiscal year 2007. 

  

	 	d)	If any one of the above conditions are not satisfied in their entirety, the Restricted Shares will not vest and will be automatically forfeited on January 31, 2008

 3. Vesting 
 (a) Vesting Dates: January 31, 2008 
 (b) Death or Disability. If you die
or become Disabled (as defined below) before all of the Restricted Shares become Vested, all of the Restricted Shares shall be transferable and non-forfeitable as of the date of your death or Disability. For purposes of this Agreement, the term
“Disabled” or “Disability” means a condition resulting from bodily injury or disease that renders you unable to perform any and every duty pertaining to your employment with the Company. The Board of Directors of the Company, in
its sole discretion, will determine whether you are Disabled based on medical evidence and your eligibility for benefits under the long-term disability policy maintained by the Company, if any. The date of the Board of Director’s determination
will be considered your date of Disability for purposes of this Agreement. 
 (c) The Company, in its sole discretion, may
accelerate the vesting of your Restricted Shares. 
 4. Custody of Certificates. The Company shall retain custody of all stock
certificates evidencing Restricted Shares. You shall not be entitled to obtain custody of your stock certificate until you become Vested in your Restricted Shares. The stock certificate shall bear a legend referencing this Agreement and describing
the terms and conditions of the applicable restrictions on transfer. 
 5. Restrictions on Transfer of Restricted Shares. By signing
the Agreement, you agree that you will not sell or transfer your Vested Restricted Shares to a third party unless the Company does not agree to purchase such stock, as provided under Section 6 below, and the Company approves the sale to the
third party. As a consequence of the foregoing, the certificates for Restricted Shares shall contain a legend substantially in the following form: 
 The sale or other transfer of the Shares of Stock represented by this certificate, whether voluntary, involuntary or by operation of law, is subject to certain restrictions on transfer set forth in the 2005 Valley Financial Corporation Key
Employee Equity Plan, in the rules and administration procedures adopted pursuant to such Plan and in an Agreement dated April 27, 2005. A copy of the Plan, such rules and procedures and such Restricted Stock Agreement may be obtained from the
Secretary of Valley Financial Corporation. 

 6. Effect of Termination of Employment. If your employment with the Company terminates for any or
no reason (other than retirement, Disability or death), all Restricted Shares that are not then Vested shall be forfeited. You shall not be entitled to any payment for or compensation with respect to such unvested Restricted Shares. 
 7. Tax Liability and Income Tax Withholding. You agree as a condition of this Restricted Stock award to pay to the Company, or make arrangements
satisfactory to the Company regarding the payment to the Company of, the aggregate amount of any federal, state or local income taxes of any kind required by law to be withheld with respect to the Restricted Shares when the fair market value of the
Restricted Shares become taxable. You hereby authorize the Company to sell all or any part of the Restricted Shares if necessary to protect the Company from incurring a withholding tax liability. 
 8. Adjustments. If the number of outstanding shares of Company stock is increased or decreased as a result of a subdivision or consolidation of
shares, the payment of a stock dividend, stock split, or any other similar changes in capitalization, the number of Restricted Shares shall be appropriately adjusted by the Company, whose determination shall be binding. 
 9. Employment Rights. The award of Restricted Shares under this Agreement does not confer upon you any right to continue as an employee of the
Company or limit in any respect the right of the Company to terminate your employment. 
 10. Shareholder Rights. You will have the
right to receive dividends and distributions and will have the right to vote Restricted Shares, both unvested and Vested. If any such dividends or distributions are paid in share of the Company’s stock, the shares will be subject to the same
restrictions on transferability and the other provisions of this Agreement as are the Restricted Shares with respect to which they were distributed. 
 11. Governing Law. This Agreement shall be governed by the laws of Virginia. 
 12. Acceptance of
Award. You may accept this award and elect to receive the Restricted Shares by signing and returning the enclosed copy of this Agreement. Your signature will evidence your agreement to the terms and conditions set forth in this Agreement and the
Plan. This Agreement will not be effective until is signed and returned. 
 13. Entire Agreement, Amendment. This Agreement
constitutes the entire agreement between you and the Company and shall be binding upon your legatees, distributees, and personal representatives and the successors of the Company. This Agreement may only be amended by a writing signed by both you
and the Company. 
  

			
	Valley Financial Corporation
		
	 By:
	 	 /s/ Ellis L. Gutshall

	 Its:
	 	 President / Chief Executive Officer

	 Date:
	 	 July 5, 2005

  

			
		
	 Signature:
	 	 /s/ John T. McCaleb

 Exhibit A 
 VALLEY FINANCIAL CORPORATION 
 RESTRICTED STOCK AWARD

 Election to Include Value of Restricted Property in Gross Income 
 in Year of Transfer Under Code Section 83(b) 
 The undersigned hereby
elects to have the provisions of Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), apply to purchases and grants of the property described below. The undersigned provides the following information in
accordance with Treasury Regulation Section 1.83-2: 
 1. The name, address and taxpayer identification number of the undersigned
are: 
  

					
		  	Name_________________________________________	  	
			
		  	Address_______________________________________	  	
			
		  	_____________________________________________	  	
			
		  	Social Security No. ________-________-_____________	  	

 2. Description of property with respect to which the election is being made:

 __________ shares of restricted common stock of Valley Financial Corporation (the “Company”) awarded to
the taxpayer pursuant to an Agreement between the taxpayer and the Company dated as of _____________, 2005. 
 3. The date on which
property is transferred and the taxable year for which the election is made: 
 The shares of restricted stock were
awarded and transferred to the taxpayer as of _____________, 2005. The taxable year to which this election relates is calendar year 2005. 
 4. The nature of the restriction(s) to which the property is subject: 
 The shares of restricted stock
are forfeitable and not transferable until the Vesting date and only then if all of the conditions set forth in Section 2 off the Restricted Stock Agreement have occurred or been satisfied. 
 5. Fair market value: 
 The aggregate fair market value of shares of restricted common stock subject to this election, as described in Section 2 above (determined with regard to nonlapse restrictions only), is
$                    . 
 6.
Amount paid for property: 
 Except for services to be rendered, no consideration was paid for the shares of
restricted stock. 

 7. Furnishing statement to employer: 
 A copy of this statement has been furnished to Valley Financial Corporation. 
  

	
	 Dated: _____________________

	
	   
	 Signature

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