Document:

Exhibit 10.2

 

CHANGE-IN-CONTROL
SEVERANCE AGREEMENT

 

This CHANGE-IN-CONTROL
SEVERANCE AGREEMENT (this “Agreement”) is made and entered into this 29th day of October, 2018 by and by and
between (i) Southern National Bancorp of Virginia, Inc. (the “Company”) and Sonabank (the “Bank”)
(collectively, the Company and the Bank shall be referred to as the “Employer”), and Jeffrey L. Karafa (“Employee”),
to be effective as of October 29, 2018 (the “Effective Date”).

 

BACKGROUND

 

WHEREAS, Employee is
currently serving as the Chief Financial Officer of the Employer; and

 

WHEREAS, the Employer
desires to promote the retention of Employee by offering certain protections in the event his employment is involuntarily terminated
under certain circumstances in connection with a Change in Control (as defined herein).

 

NOW, THEREFORE, in
consideration of the payments, consents and acknowledgements described below, in consideration of Employee’s employment with
the Employer, and in consideration of other good and valuable consideration, the receipt and sufficiency of all of which is hereby
acknowledged, the parties agree as follows:

 

1.       Term
of Agreement. This Agreement shall terminate (subject to the survival of Section 6 hereof) on the earliest of (i) if Employee
is entitled to benefits under Section 3 hereof and complies with the terms thereof, the date that the Employer satisfies its obligations
pursuant to Section 3 hereof; (ii) the date of Employee’s termination of employment with the Employer for any reason other
than a Qualifying Termination; or (iii) the first anniversary of a Change in Control.

 

2.       Employment
At-Will. Employee shall continue to be employed at-will and for no definite term. This means that either party may terminate
the employment relationship at any time for any or no reason.

 

3.       Termination
of Employment due to a Qualifying Termination. In the event of Employee’s Qualifying Termination, Employer shall pay
to Employee in a lump sum in cash within thirty (30) days after the date of termination, Employee’s Base Salary and any earned
but unused paid-time off, in each case through the date of termination to the extent not theretofore paid (the “Accrued
Benefits”) and the following severance benefits (the benefits provided in Section 3(a)(i), (ii) and (iii) being collectively
referred to as the “Severance Benefits”):

 

(i) the Employer
shall pay to Employee an amount equal to one and one-quarter (11⁄4) times Employee’s annual base salary at the rate
in effect immediately prior to the Qualifying Termination, payable during the 15-month period immediately following Employee’s
date of termination in approximately equal installments in accordance with the Bank’s regular payroll practices, commencing
with the first regular payroll date to occur after the sixtieth (60th) day after the date of termination; provided that
the first such payment shall consist of all amounts payable to Employee pursuant to this Section 3(a)(i) between the date of termination
and the first payroll date to occur after the sixtieth (60th) day following the date of termination;

 

(ii) if Employee
elects to continue participation in any group medical, dental, vision and/or prescription drug plan benefits to which Employee
and/or Employee’s eligible dependents would be entitled under Section 4980B of the Code (COBRA), then for the 15-month period
following Employee’s date of termination (the “Group Health Benefits Continuation Period”), the Employer
shall pay the excess of (1) the COBRA cost of such coverage over (2) the amount that Employee would have had to pay for such coverage
if he had remained employed during the Group Health Benefits Continuation Period and paid the active employee rate for such coverage,
provided, however, that (A) if Employee becomes eligible to receive group health benefits under a program of a subsequent
employer or otherwise, the Employer’s obligation to pay any portion of the cost of health coverage as described herein shall
cease, except as otherwise provided by law; (B) the Group Health Benefits Continuation Period shall run concurrently with any period
for which Employee is eligible to elect health coverage under COBRA; (C) during the Group Health Benefits Continuation Period,
the benefits provided in any one calendar year shall not affect the amount of benefits provided in any other calendar year (other
than the effect of any overall coverage benefits under the applicable plans); (D) the reimbursement of an eligible taxable expense
shall be made as soon as practicable but not later than December 31 of the year following the year in which the expense was incurred;
and (E) Employee’s rights pursuant to this Section 3(a)(ii) shall not be subject to liquidation or exchange for another benefit.

 

     

     

    

 

(iii) Employee’s
unvested equity awards outstanding on the Date of Termination, shall become fully vested and exercisable on the Date of Termination
and shall otherwise remain subject to the terms and conditions of the equity plan pursuant to which they were granted and the award
agreements evidencing the grant thereof.

 

Notwithstanding
the foregoing, the Employer shall be obligated to provide the Severance Benefits only if (A) within forty-five (45) days after
the date of termination Employee shall have executed a separation and full release of claims/covenant not to sue agreement in the
form provided by the Employer (the “Release Agreement”) and such Release Agreement shall not have been revoked
within the revocation period specified in the Release Agreement, and (B) Employee fully complies with the obligations set forth
in Section 6 hereof. For the avoidance of doubt, if Employee does not comply with the obligations set forth in Section 6 hereof,
then any obligation of the Employer to pay the Severance Benefits shall cease immediately upon Employee’s breach thereof.

 

4.       Termination
of Employment other than a Qualifying Termination. If Employee’s employment is terminated for any reason other than a
Qualifying Termination, then the Employer shall have no further obligations to Employee or Employee’s legal representatives
under this Agreement, other than for payment of Accrued Benefits, which shall be paid to Employee or Employee’s estate or
beneficiary, as applicable, in a lump sum in cash within thirty (30) days after the date of termination.

 

5.       Definitions.

 

(a)       “Cause”
means a good faith determination by the Employer that any of the following has occurred: (i) Employee’s willful violation
of any laws, rules or regulations applicable to banks or the banking industry generally; (ii) Employee’s material failure
to comply with the Employer’s policies or guidelines of employment or corporate governance policies or guidelines, including,
without limitation, any business code of ethics adopted by the Employer, that, if capable of being cured, is not cured by Employee
within ten (10) days of written notice by the Employer of the failure; (iii) any act of fraud, misappropriation or embezzlement
by Employee; (iv) a material breach of this Agreement that, if such breach is capable of being cured, is not cured by Employee
within ten (10) days of written notice by the Employer of the breach; or (v) Employee’s conviction of, or Employee’s
pleading guilty or nolo contendere to, a felony or a crime involving moral turpitude (including pleading guilty or nolo contendere
to a felony or lesser charge which results from plea bargaining).

 

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(b)       “Change
in Control” shall have the same meaning as set forth in the Southern National Bancorp of Virginia, Inc. 2017 Equity Compensation
Plan, as such plan may be amended from time to time.

 

(c)       “Code”
means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Agreement, references to sections of
the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.

 

(d)       “Disability”
means the inability of Employee, as reasonably determined by the Employer, to perform the essential functions of his regular duties
and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which
has lasted (or can reasonably be expected to last) for a period of six (6) consecutive months.

 

(e)       “Good
Reason” means the occurrence of any of the following, without Employee’s consent: (i) a material diminution in
Employee’s Base Salary; (ii) a material diminution in Employee’s authority, duties, or responsibilities; (iii) the
relocation of Employee’s principal office to a facility or location more than fifty (50) miles away from Employee’s
principal place of work immediately prior to the relocation; provided, however, that Good Reason shall not include
(A) any relocation of Employee’s principal office which is proposed or initiated by Employee; or (B) any relocation that
results in Employee’s principal place office being closer to Employee’s then-principal residence; or (iv) any intentional,
material breach by the Employer of this Agreement. A termination by Employee shall not constitute termination for Good Reason unless
Employee shall first have delivered to the Employer written notice setting forth with specificity the occurrence deemed to give
rise to a right to terminate for Good Reason (which notice must be given no later than thirty (30) days after the initial occurrence
of such event), and there shall have passed a reasonable time (not less than thirty (30) days) within which the Employer may take
action to correct, rescind or otherwise substantially reverse the occurrence supporting termination for Good Reason as identified
by Employee. Good Reason shall not include Employee’s death or Disability.

 

(f)       “Qualifying
Termination” means Employee’s termination of employment during the Qualifying Termination Window by (A) the Employer
without Cause (other than by reason of Employee’s death or Disability), or (B) Employee for Good Reason within a period of
90 days after the occurrence of the event giving rise to Good Reason. For the avoidance of doubt, in no event shall Employee be
deemed to have experienced a Qualifying Termination as a result of Employee’s termination of employment with the Employer
for any reason or no reason outside of the Qualifying Termination Window or as a result of Employee’s termination of employment
with the Employer during the Qualifying Termination Window by reason of his (i) death, (ii) Disability, or (iii) voluntary resignation
for any reason or no reason.

 

(g)       “Qualifying
Termination Window” means the sixty (60) day period immediately preceding a Change in Control or the one-year period
immediately following a Change in Control.

 

6.       Restrictions
on Competition and Disclosure and Use of Confidential Information.

 

(a)       Confidential
Information. Employee agrees that Employee shall not, directly or indirectly, use any Confidential Information (as defined
herein) on Employee’s own behalf or on behalf of any Person (as defined herein) other than the Employer, or reveal, divulge,
or disclose any Confidential Information to any Person not expressly authorized by the Employer to receive such Confidential Information.
This obligation shall remain in effect for as long as the information or materials in question retain their status as Confidential
Information. Employee further agrees that he shall fully cooperate with the Employer in maintaining the Confidential Information
to the extent permitted by law. The parties acknowledge and agree that this Agreement is not intended to, and does not, alter either
the Employer’s rights or Employee’s obligations under any state or federal statutory or common law regarding trade
secrets and unfair trade practices. Anything herein to the contrary notwithstanding, Employee shall not be restricted from disclosing
information that is required to be disclosed by law, court order or other valid and appropriate legal process; provided,
however, that in the event such disclosure is required by law, Employee shall provide the Employer with prompt notice of
such requirement so that the Employer may seek an appropriate protective order prior to any such required disclosure by Employee.

 

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Employee understands
and acknowledges that nothing in this section limits his ability to initiate communications directly with, respond to any inquiry
from, volunteer information to, or provide testimony before any government agency or otherwise participate in any reporting of,
investigation into, or proceeding regarding suspected violations of law, or from making other disclosures that are protected under,
or from receiving an award for information provided under, the whistleblower provisions of state or federal law or regulation. 
Employee does not need the prior authorization of the Employer to engage in such communications with any government agency, respond
to such inquiries from any government agency, provide Confidential Information or documents containing Confidential Information
to any government agency, or make any such reports or disclosures to any government agency.  Employee is not required to notify
the Employer that Employee has engaged in such communications with a government agency. Employee recognizes and agrees that, in
connection with any such activity outlined above, Employee must inform the government agency that the information Employee is providing
is confidential.

 

Federal law provides
certain protections to individuals who disclose a trade secret to their attorney, a court, or a government official in certain,
confidential circumstances.  Specifically, federal law provides that an individual shall not be held criminally or civilly
liable under any state or federal trade secret law for the disclosure of a trade secret under either of the following conditions:

 

		·	Where the disclosure is made (A) in confidence to a federal, state or local government official,
either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation
of law; or

		·	Where the disclosure is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal. 

 

Federal law also provides that an individual
who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to
the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document
containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

 

For purposes of this
Section 6, “Confidential Information” means any and all data and information relating to the Employer, their activities,
business, or clients that (i) is disclosed to Employee or of which Employee becomes aware as a consequence of his employment with
the Employer; (ii) has value to the Employer; and (iii) is not generally known outside of the Employer. “Confidential Information”
shall include, but is not limited to the following types of information regarding, related to, or concerning the Employer: trade
secrets (as defined by Virginia Uniform Trade Secrets Act); financial plans and data; management planning information; business
plans; operational methods; market studies; marketing plans or strategies; pricing information; product development techniques
or plans; customer lists; customer files, data and financial information; details of customer contracts; current and anticipated
customer requirements; identifying and other information pertaining to business referral sources; past, current and planned research
and development; computer aided systems, software, strategies and programs; business acquisition plans; management organization
and related information (including, without limitation, data and other information concerning the compensation and benefits paid
to officers, directors, employees and management); personnel and compensation policies; new personnel acquisition plans; and other
similar information. “Confidential Information” also includes combinations of information or materials which individually
may be generally known outside of the Employer, but for which the nature, method, or procedure for combining such information or
materials is not generally known outside of the Employer. In addition to data and information relating to the Employer, “Confidential
Information” also includes any and all data and information relating to or concerning a third party that otherwise meets
the definition set forth above, that was provided or made available to the Employer by such third party, and that the Employer
has a duty or obligation to keep confidential. This definition shall not limit any definition of “confidential information”
or any equivalent term under state or federal law. “Confidential Information” shall not include information that has
become generally available to the public by the act of one who has the right to disclose such information without violating any
right or privilege of the Employer. For purposes of this Section 6, “Person” means any individual or any corporation,
partnership, joint venture, limited liability company, association or other entity or enterprise.

 

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(b)       Non-competition.
Beginning on the Effective Date and for a period continuing through the twelve (12) months following cessation of Employee’s
employment with the Employer (the “Restricted Period”), Employee shall not, directly or indirectly, within any
State in the United States where the Employer has a retail bank branch at the time Employee’s employment ceases, own any
interest in, control or participate in the ownership or control of, or perform services that are the same as or substantially similar
to the services Employee performed for the Employer pursuant to this Agreement for any company, person or entity engaged in a Competitive
Business (as defined herein). A “Competitive Business” shall mean any person or entity that is providing deposits,
money market accounts, certificates of deposit or other typical retail banking deposit-type services or loans on a retail level,
to individuals, businesses or non-profit entities in any State in the United States in which the Employer has a retail bank branch
at the time Employee’s employment ceases. Notwithstanding the foregoing, nothing in this Agreement shall prevent Employee
from owning for passive investment purposes not intended to circumvent this Agreement, less than five percent (5%) of the publicly-traded
voting securities of any company engaged in the banking, financial services, insurance, brokerage or other business similar to
or competitive with the Employer (so long as Employee has no power to manage, operate or control the competing enterprise and no
power, alone or in conjunction with other affiliated parties, to select a director, manager, general partner, or similar governing
official of the competing enterprise other than in connection with the normal and customary voting powers afforded Employee in
connection with any permissible equity ownership).

 

(c)       Non-solicitation
of Employees. During the Restricted Period, Employee shall not, directly or indirectly solicit, induce or hire, or attempt
to solicit, induce or hire, any person who is an employee of the Employer at the time Employee’s employment ceases or within
six (6) months prior thereto, to leave his or his employment with the Employer or join or become affiliated with any Competitive
Business.

 

(d)       Non-solicitation
of Customers. During the Restricted Period, Employee shall not, directly or indirectly solicit or induce or attempt to solicit
or induce, any customer, lender, supplier, licensee, licensor or other business relation of the Employer to terminate its relationship
or contracts with the Employer, to cease doing business with the Employer, or in any way interfere with the relationship between
any such customer, lender, supplier, licensee, licensor or business relation and the Employer.

 

(e)       Rights
and Remedies Upon Breach. The parties specifically acknowledge and agree that the remedy at law for any breach of the covenants
in Section 6 will be inadequate, and that in the event Employee breaches any such covenant, the Employer shall have the right and
remedy, without the necessity of proving actual damage or posting any bond, to enjoin, preliminarily and permanently, Employee
from violating the covenant and to have the covenant specifically enforced by any court of competent jurisdiction, it being agreed
that any breach would cause irreparable injury to the Employer and that money damages would not provide an adequate remedy to the
Employer. Such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the
Employer at law or in equity. The Employer and Employee understand and agree that, if the parties become involved in legal action
regarding the enforcement of the covenants in Section 6, the prevailing party in such legal action will be entitled, in addition
to any other remedy, to recover its reasonable costs and attorneys’ fees incurred in enforcing or defending action with respect
to such covenants. The Employer’s ability to enforce its rights under the covenants in Section 6 or applicable law against
Employee shall not be impaired in any way by the existence of a claim or cause of action on the part of Employee based on, or arising
out of, this Agreement or any other event or transaction.

 

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7.       Non-exclusivity
of Rights. Nothing in this Agreement shall prevent or limit Employee’s continuing or future participation in any employee
benefit plan, program, policy or practice provided by the Employer or its affiliated companies and for which Employee may qualify.
Amounts that are vested benefits or which Employee is otherwise entitled to receive under any plan, policy, practice or program
of the Employer or any of its affiliated companies at or subsequent to the date of termination shall be payable in accordance with
such plan, policy, practice or program.

 

8.       Full
Settlement; No Mitigation. The Employer’s obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Employer may have against Employee or others. In no event shall Employee be obligated to seek other employment
or take any other action by way of mitigation of the amounts payable to Employee under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not Employee obtains other employment.

 

9.       Successors.
This Agreement is personal to Employee and shall not be assignable by Employee otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by Employee’s legal representatives. This Agreement
can be assigned by the Employer and shall be binding and inure to the benefit of the Employer, and their successors and assigns.

 

10.     Code
Section 409A.

 

(a)       General.
This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid
or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the Code and applicable
Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section
409A of the Code) (“Section 409A of the Code”). Nevertheless, the tax treatment of the benefits provided under
the Agreement is not warranted or guaranteed. Neither the Employer nor its directors, officers, employees or advisers, shall be
held liable for any taxes, interest, penalties or other monetary amounts owed by Employee as a result of the application of Section
409A of the Code.

 

(b)       Definitional
Restrictions. Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred
Compensation”) would otherwise be payable or distributable hereunder by reason of Employee’s termination of employment,
such Non-Exempt Deferred Compensation will not be payable or distributable to Employee by reason of such circumstance unless the
circumstances giving rise to such termination of employment meet any description or definition of “separation from service,”
in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available
under such definition). If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, then, subject
to subsection (c) below, such payment or distribution shall be made at the time and in the form that would have applied absent
the non-409A-conforming event.

 

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(c)       Six-Month
Delay in Certain Circumstances. Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would
constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of Employee’s
separation from service during a period in which he is a Specified Employee (as defined below), then, subject to any permissible
acceleration of payment by the Employer under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts
of interest), or (j)(4)(vi) (payment of employment taxes): (i) the amount of such Non-Exempt Deferred Compensation that would otherwise
be payable during the six-month period immediately following Employee’s separation from service will be accumulated through
and paid or provided on the first day of the seventh month following Employee’s separation from service (or, if Employee
dies during such period, within 30 days after Employee’s death) (in either case, the “Required Delay Period”);
and (ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the
Required Delay Period.

 

(d)       Timing
of Release of Claims. Whenever in this Agreement a payment or benefit is conditioned on Employee’s execution of a release
of claims, such release must be executed and all revocation periods shall have expired within 60 days after the date of termination;
failing which such payment or benefit shall be forfeited. If such payment or benefit constitutes Non-Exempt Deferred Compensation,
then such payment or benefit (including any installment payments) that would have otherwise been payable during such 60-day period
shall be accumulated and paid on the 60th day after the date of termination provided such release shall have been executed
and such revocation periods shall have expired. If such payment or benefit is exempt from Section 409A of the Code, the Employer
may elect to make or commence payment at any time during such period.

 

(e)       Timing
of Reimbursements and In-kind Benefits. If Employee is entitled to be paid or reimbursed for any taxable expenses under this
Agreement, and such payments or reimbursements are includible in Employee’s federal gross taxable income, the amount of such
expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement
of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred. No
right of Employee to reimbursement of expenses under this Agreement shall be subject to liquidation or exchange for another benefit.

 

11.       Modified
Cutback of Compensation Deemed to be Contingent on a Change of Control. If any benefits or payments are to be made under the
terms of this Agreement or any other agreement between Employee and the Employer following a transaction that constitutes a change
in the ownership or effective control of the Employer or in the ownership of a substantial portion of the assets of the Employer
such that the provisions of Section 280G of the Internal Revenue Code of 1986, as amended, and any regulations thereunder (“Code
Section 280G”) or Section 4999 of the Internal Revenue Code and any regulations thereunder could potentially apply to
such compensation, then the following provisions shall be applicable:

 

(a)       In
the event the independent accountants serving as auditors for the Employer on the date of a change of control within the meaning
of Code Section 280G (or any other accounting firm designated by the Employer) determine that some or all of the payments or benefits
scheduled under this Agreement, as well as any other payments or benefits on such change of control, would be nondeductible by
the Employer under Code Section 280G, then the payments scheduled under this Agreement and all other agreements between Employee
and the Employer will be reduced to one dollar less than the maximum amount which may be paid without causing any such payment
or benefit to be nondeductible. Any reduction of benefits or payments required to be made under this Section 11(a) shall be taken
in the following order: first from cash compensation and then from payments or benefits not payable in cash, in each case in reverse
order beginning with payments or benefits which are to be paid the farthest in time from the date of determination.

 

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(b)       Notwithstanding
the foregoing Section 11(a), in the event the independent accountants serving as auditors for the Employer on the date of a change
of control within the meaning of Code Section 280G (or any other accounting firm designated by the Employer) determine that the
net economic benefit to Employee after payment of all income and excise taxes is greater without giving effect to Section 11(a)
than Employee’s net economic benefit after a reduction by reason of the application of Section 11(a), then Section 11(a)
shall be a nullity and without any force or effect. Any decisions regarding the requirement or implementation of the reductions
to compensation described in Section 11(a) shall be made by the independent accountants serving as auditors for the Employer on
the date of a change of control within the meaning of Code Section 280G (or any other accounting firm designated by the Employer),
shall be made at the Employer’s expense and shall be binding on the parties.

 

12.       Regulatory
Action.

 

(a)       If
Employee is removed and/or permanently prohibited from participating in the conduct of the Employer’s affairs by an order
issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. 1818(e)(4)
and (g)(1)), all obligations of the Employer under this Agreement shall terminate, as of the effective date of such order.

 

(b)       If
Employee is suspended and/or temporarily prohibited from participating in the conduct of the Employer’s affairs by a notice
served under Section 8(e)(3) or 8(g)(1) of the FDIA (12 U.S.C. 1818(e)(3) and (g)(1)), all obligations of the Employer under this
Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice
are dismissed, the Employer shall reinstate (in whole or in part) any of its obligations which were suspended.

 

(c)       If
the Employer is in default (as defined in Section 3(x)(1) of the FDIA), all obligations under this Agreement shall terminate as
of the date of default.

 

(d)       All
obligations under this Agreement shall be terminated, except to the extent a determination is made that continuation of the Agreement
is necessary for the continued operation of the Employer (1) by the director of the FDIC or his or his designee (the “Director”),
at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained
in 13(c) of the FDIA; or (2) by the Director, at the time the Director approves a supervisory merger to resolve problems related
to operation of the Employer when the Employer is determined by the Director to be in an unsafe and unsound condition.

 

(e)       Notwithstanding
anything contained in this Agreement to the contrary, no payments shall be made pursuant to any provision herein in contravention
of the requirements of Section 2[18(k)] of the FDIA (12 U.S.C. 1828(k)). In particular, the provisions pertaining to the potential
for payments shall have no force or effect as long as either the agreement concerning the potential for payments or the actual
payment of such amounts would be considered a “golden parachute payment,” with the meaning of 12 C.F.R. Section 359.1(f).

 

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13.       Miscellaneous.

 

(a)       Applicable
Law; Forum Selection; Consent to Jurisdiction. The Employer and Employee agree that this Agreement shall be governed by and
construed and interpreted in accordance with the laws of the State of Virginia without giving effect to its conflicts of law principles.
Employee agrees that the exclusive forum for any action to enforce this Agreement, as well as any action relating to or arising
out of this Agreement, shall be the Circuit Court of Fairfax County or the federal court encompassing that jurisdiction, at the
option of the Employer. With respect to any such court action, Employee hereby irrevocably submits to the personal jurisdiction
of such courts. The parties hereto further agree that the courts listed above are convenient forums for any dispute that may arise
herefrom and that neither party shall raise as a defense that such courts are not convenient forums.

 

(b)       Non-Duplication.
Notwithstanding anything to the contrary in this Agreement, and except as specifically provided below, any severance payments or
benefits received by Employee pursuant to this Agreement shall be in lieu of any general severance policy or other severance plan
maintained by the Employer (other than a stock option, restricted stock, share or unit, performance share or unit, supplemental
retirement, deferred compensation or similar plan or agreement which may contain provisions operative on a termination of Employee’s
employment or may incidentally refer to accelerated vesting or accelerated payment upon a termination of employment).

 

(c)       Captions.
The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 

(d)       Amendments.
This Agreement may not be amended or modified otherwise than-by a written agreement executed by the parties hereto or their respective
successors and legal representatives.

 

(e)       Notices.
All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

	
        If to Employee:

        On file with the Employer
	
        If to the Employer:

        6830 Old Dominion Drive

        McLean, Virginia 22101

        Attention: CEO

 

or to such other address as either party
shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually
received by the addressee.

 

(f)       Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

 

(g)      Withholding.
The Employer may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

 

(h)      Waivers.
Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and
conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement or of the future
performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained
in a writing signed by the party making the waiver.

 

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(i)       Entire Agreement.
This Agreement contains the entire agreement between the Employer and Employee with respect to the subject matter hereof and, from
and after the date hereof, this Agreement shall supersede any other agreement, written or oral, between the parties relating to
the subject matter of this Agreement, including but not limited to any prior discussions, understandings, and/or agreements between
the parties, written or oral, at any time. 

 

(j)       Construction.
The parties understand and agree that because they both have been given the opportunity to have counsel review and revise this
Agreement, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement. Instead, the language of all parts of this Agreement shall be construed
as a whole, and according to its fair meaning, and not strictly for or against either of the parties.

 

(k)       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.

 

(Signatures on following page)

 

    10 

     

    

 

IN WITNESS WHEREOF,
Employee has hereunto set Employee’s hand and the Employer has caused these presents to be executed in its name on its behalf,
all as of the day and year first above written.

 

	 	/s/ Jeffrey L. Karafa	 
	 	JEFFREY L. KARAFA	 
	 	 	 	 
	 	 	 	 
	 	/s/ Joe A. Shearin	 
	 	SOUTHERN NATIONAL	 
	 	BANCORP OF VIRGINIA, INC.	 
	 	By:  	Joe A. Shearin	 
	 	Its:	President and Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	/s/ Joe A. Shearin	 
	 	SONABANK	 
	 	By:	Joe A. Shearin	 
	 	Its:	President and Chief Executive Officer	 

  

    11AMENDMENT
NO. 3 TO BUSINESS SERVICES AGREEMENT

 

This
Amendment No. 3, dated as of October 29, 2018 (“Amendment 3”), to the Business Services Agreement, dated
as of December 29, 2017 (“Agreement”), as amended by Amendment No. 1 and Amendment No. 2, is entered
into between ICOx Innovations, Inc., formerly AppCoin Innovations Inc., a corporation having its office located at 4101 Redwood
Avenue, Building F, Los Angeles, CA 90066 (“ACI”), and RYDE Holding Inc., formerly WENN Digital Inc.,
a corporation having its office located at 4155 Redwood Avenue, Building F, Los Angeles, CA 90066 (the “Client”).
Terms not otherwise defined in this Amendment shall have the meanings ascribed thereto in the Agreement.

 

	 	1.	Section
    18(a), is deleted and restated in its entirety with the following:

 

“ACI
may terminate this Agreement at any time upon the provision of thirty (30) days written notice to Client. Client may terminate
this Agreement at any time after December 31, 2019, upon the provision of thirty (30) days written notice to ACI.”

 

	 	2.	Section
    18(b), Termination on Notice, is deleted and restated in its entirety as follows:

 

“If
ACI provides such notice, Client shall, in its sole discretion, have the right to immediately terminate the Agreement and ICOx
will be entitled to no further compensation except for any Fees earned prior to the date of the termination of this Agreement,
and the other fees set forth on Schedule A, which are due regardless of such early termination.”

 

	 	3.	Section
    18(c), Termination on Notice, is deleted and restated in its entirety as follows:

 

“If
Client provides such notice, ICOx shall, in its sole discretion, have the right to immediately terminate the Agreement and ICOx
will be entitled to no further compensation except for any Fees earned prior to the date of the termination of this Agreement,
and the other fees set forth on Schedule A, which are due regardless of such early termination.”

 

    	 

    	-2 -

    

 

	 	4.	Section
    12, is deleted and restated in its entirety as follows:

 

“Company
may disclose to the public the existence of this Agreement and identify Client as a client of Company, through any medium, including,
but not limited, to electronic and print publications, Company’s website, interviews and press releases. Client agrees and
understands that Company shall have the authority, at its discretion, to issue press and media releases on behalf of Client as
related to the services and any ICO, with the approval of Client. In this regard, Client acknowledges that time is of the essence
with respect to such press and media releases, and agrees to respond to and provide any comments on any press or media releases
prepared by Company, within two (2) business days of receipt, and to diligently work with Company to finalize and approve any
such press releases. In accordance with all applicable laws, including the Client’s disclosure obligations under applicable
securities laws, the Client is expressly permitted to make any required disclosures of this Agreement, including the material
terms hereof.”

 

	 	5.	Schedule
    A of the Agreement is hereby deleted in its entirety and replaced with Amended and Restated Schedule A, which is
    attached hereto.

 

IN
WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first set forth above.

 

	 	ICOX
    INNOVATIONS, INC.
	 	 	 
	 	By:
    	/s/
    Michael A. Blum
	 	Name:
    	Michael
    A. Blum
	 	Title:
    	Chief
    Financial Officer
	 	 	 
	 	RYDE
    HOLDING INC.
	 	 	 
	 	By:
    	/s/
    Jan Denecke      10/29/2018
	 	 	Jan
    Denecke, CEO

 

    	 

    	-3 -

    

 

AMENDED
AND RESTATED 

 

SCHEDULE
A

 

BUSINESS
SERVICES, MONTHLY RATE, SCOPE OF WORK, AND TERM

 

All
capitalized terms not otherwise defined in this Amended and Restated Schedule A shall have the meaning ascribed to them
in the Business Services Agreement, as amended (“Agreement”) to which this Amended and Restated Schedule
A is attached. All figures in United States Dollars, applicable taxes are in addition.

 

	●                Scope
    of Work Activities	Fixed
    Fee	Monthly
    Fee
	1.
    Services (October 1, 2018 – 	1.
                                         Corporate Development and Governance

        
	$1,100,000
    (the 	N/A

        

	Dec
    31, 2019) (the “2018-19 Services”)	 	●	Board
                                         and Corporate Strategy Management via implementation of RIPKIT Process.

        
	“2018-19
    Service Fees”)	 
	 	 	●	Board
                                         and Corporate governance management.

                                                                               
	 	 
	 	2.
                                         Business Development and Technical Services

        
	 	 
	 	 	●	Business
                                         Modeling and Scoping and Development.

        
	 	 
	 	 	●	Advisory
                                         services surrounding token models, deployment, utilization and liquidity.

        
	 	 
	 	 	●	Advisory
                                         services of sourcing and guidance surrounding creation of company applications for token
                                         usage and customer integration of such.

        
	 	 
	 	 	●	Introductions
                                         and relationships development to create and support use cases for the network and token.

         
	 	 
	 	3.
    Business Awareness	 	 
	 	 	●	Public
                                         relations and strategies maximizing physical and digital outreach, including traditional
                                         and social media channels and management of agencies if engaged by or on behalf of the
                                         company (Services will not include any distribution or marketing related services, or
                                         assistance regarding the offer or sale of any Tokens or any services in connection with
                                         any financing by the Client, unless in compliance with applicable government and regulatory
                                         body laws and regulations);

        
	 	 
	 	 	●	Presentation
                                         materials;

        
	 	 
	 	 	●	Initial
                                         Community Development & Management Strategy;

        
	 	 
	 	 	●	Whitepaper,
    Presentation decks, Infographics preparation and continued iterative reviews;	 	 
	 	 	●	Legal
    services and sourcing (within scope).	 	 
	 	 	 	 	 	 
	 	4.
                                         Financial and Administrative

        
	 	 
	 	 	●	CFO
                                         Function

        
	 	 
	 	 	●	North
    America Office Management	 	 
	 	 	●	North
                                         America Administrative

        
	 	 
	 	 	 	 	 	 
	 	5.
                                         Media Management

        
	 	 
	 	 	●	News
                                         release management

        
	 	 
	 	 	●	Social
                                         media

        
	 	 
	 	 	●	Social
    media monitoring	 	 

 

    	 

    	-4 -

    

 

	●                Scope
    of Work Activities	Fixed
    Fee	Monthly
    Fee 
	2.
    Additional Fees for 2018-19 Services	 	●	ICOx
                                         will be entitled to receive additional fees for 2018-19 Services upon the occurrence
                                         of the following events: The Client engages an Investment Banker for a financing round
                                         of $10M+

         
	$250,000.00

         

        Minimum
        cash of $300.000,00 to be raised for this fee of $250,000 to be payable.

         
	N/A

         

	 	 	●	The
                                         Client receives an injection of capital from any source of Financing (including Equity,
                                         JV, SAFTs, token financing, revenue royalty financing or any other sources of financing
                                         other than Debt Financing) in an Aggregate amount in excess of $18,000,000.

         
	$500,000

         
	N/A

         

	 	 	●	For
                                         every $5,000,000 over $18,000,000 in financing as defined above

                                                                               
	$500,000

         
	N/A

         

	 	 	●	For
                                         every $500,000 of new Debt Financing

         
	$15,000	N/A

         

	3.
    Monthly Services (January 1, 2020 – December 31, 2020) (the “2020	 	●	Board
                                         and Corporate Strategy Management via implementation of RIPKIT Process.

        
	N/A

         
	$35,000.00
    (“2020 Monthly
	Monthly
    Services”)	 	●	Board
                                         and Corporate governance management.

        
	 	Service
    Fees”)
	 	 	 	 	 

        
	 
	4.
                                         Additional Fees and Milestones

         

         
	Completion
                                         of an aggregate of $1M net revenue as defined in the Kodak Licence Agreement in transaction
                                         volume on the network through transactions brought to the network by Company either directly,
                                         through strategic partnerships, or other business development efforts. ACI has to provide
                                         Client notice before engaging with a new partner. Client needs to approve in writing
                                         the new partner as an approved partner for the purposes of earning this fees by ACI.

         
	$100,000.00	N/A
	Creation,
                                         or introduction of a third party that results in, a business development relationship
                                         or business initiative, including, but not limited to, a joint venture partner, that
                                         results in an aggregate of $1,000,000 or more net revenue as defined in the Kodak Licence
                                         Agreement or more in transaction volume or revenue. ACI has to give client notice before
                                         starting any reach out or discussion with a potential partner. Client needs to approve
                                         if he is willing to onboard the partner through ACI.

         
	$100.000.00	N/A
	Creation
    of any business relationship that quantitatively or qualitatively (as determined by the board in its reasonable discretion)
    increases the value of the company by $1M.	$35,000.00
    per $1M increase, up to an aggregate fee of $1,015,000.	N/A

         

         

		 	 

                                                                              
	 	 

 

    	 

    	-5 -

    

 

	●                Scope
    of Work Activities	Fixed
    Fee	Monthly
    Fee 
	5.
    Token Fee 	 	 	 	20,000,000
    in Tokens based upon 100M tokens issued, which number shall be increased on a pro rata basis, if, at any time, Client issues
    more than 100 million tokens (the “Token Fee”). 	Previously
    Earned and shall be issued in connection with the first release of any Tokens to any party. 

 

Term

 

This
Agreement will continue to until December 31, 2020, unless earlier terminated by either ICOx or the Client in accordance with
Section 18 of the Agreement. ICOx will provide the 2018-19 Services for the period commencing October 1, 2018 and ending December
31, 2019. ICOx will provide the 2020 Monthly Services for the period commencing January 1, 2020, and ending on December 31, 2020;
provided, however, the term of the 2020 Monthly Services shall automatically renew for successive one (1) year periods (each a
“Renewal Term”) after December 31, 2020; provided, Client continues paying the 2020 Monthly Service Fees during
such renewal periods. Either party may terminate a Renewal Term by providing the other party with 30 days advance written notice.

 

The
2018-19 Service Fees are deemed earned as of the date hereof, however, subject to the termination provisions set forth herein,
shall not be due and payable until the Client, or any of its affiliates, closes on the sale of SAFTs, equity, or token financings,
joint venture financings, in a minimum aggregate amount of $12M, including closings occurring prior to the date hereof. The 2020
Monthly Service Fees will be due at the beginning of each month commencing January 1, 2020.

 

Notwithstanding
anything to the contrary set forth in the Agreement, if this Agreement is terminated early (early means before 31. 12. 2019),
(a) the 2018-19 Service Fees shall be immediately due in full (but only under the condition precedent that the aggregate amount
of $12M (see above) is achieved either before or after the termination date), (b) any additional fees and milestone fees earned
shall be immediately paid in full (if the condition precedent / milestones defined above are achieved) (c) the Token Fee shall
be immediately transferred to ICOx, and (d) any future adjustment in the number of Tokens issued by Client, to over 100 million,
shall result in the immediately issuance to ICOx of 20% of such additional Tokens.

 

Client
acknowledges that all fees and other amounts paid to Company with respect to Services provided prior to the date hereof, have
been earned in connection with prior Services, and shall not be credited against any Monthly Service Fees or other amounts due
hereunder.

 

    	 

    	-6 -

    

 

Broker-Dealer

 

It
is understood that the Client intends to engage in an exempt offer and sale of convertible debt, equity, SAFTs and/or Tokens (“SAFT
Sale”) in compliance with U.S. federal and state securities laws and the laws of any other applicable jurisdiction, and
in connection with any SAFT Sale, that such SAFTs and/or Tokens may be deemed to be securities under applicable law. The parties
acknowledge and agree that ICOx is not engaged in the business of effecting transactions in securities for the account of others
and is not a registered broker-dealer with the Securities and Exchange Commission (the “SEC”), any Canadian securities
commissions, the securities regulatory authorities of any other foreign jurisdiction, or any other Canadian, United States or
foreign governmental agency or self-regulatory organization. The parties further acknowledge and agree that ICOx will not be involved
in the introduction of any investors or the offer and sale of any securities in the SAFT Sale and that nothing herein is intended
to create any obligation on the part of ICOx to perform any services that might require ICOx to register as a broker-dealer with
the SEC, any Canadian securities commissions, securities regulatory authorities of any other country, or any other Canadian, or
US federal, state or provincial agency, or self-regulatory organization. In the event that ICOx or its personnel are asked to
participate in any activities on behalf of the Client that would require broker-dealer registration, participating personnel will
be properly licensed and registered with a broker-dealer and the activities will be conducted in compliance with the laws of the
appropriate jurisdiction. 

 

The
Client further acknowledges that it has retained the services of a registered broker-dealer and member firm of the Financial Industry
Regulatory Authority, Inc. to conduct the offer and sale of SAFTs and/or Tokens in the SAFT Sale. The Client acknowledges and
warrants that it has engaged such broker-dealer in its sole discretion. The Client shall have the authority to control all discussions
and negotiations regarding any proposed or actual offering or sale of any SAFTs and/or Tokens. Nothing in this Agreement shall
obligate the Client to actually offer or sell any of its SAFTs and/or Tokens or consummate any transaction. The Client may terminate
any negotiations or discussions at any time and reserves the right not to proceed with any offering or sale of its SAFTs and/or
Tokens.

 

    	 

    	-7 -

    

 

Client
shall maintain full and accurate books of account, records and other relevant data pertaining to amounts due to Company hereunder.
Company shall be entitled during business hours and on reasonable notice, to inspect and examine Client’s books of account,
records, and other pertinent data that is relevant to the calculation of amounts due to Company hereunder. In the event that any
such audit shows that there was a deficiency in payment of amounts due to Company hereunder, the deficiency shall become immediately
due and payable, subject to Client’s right to dispute the audit. The costs of an audit performed by Company or its agents
or representatives shall be paid by Company unless Client understated amounts due hereunder by more than Five Percent (5%) for
any quarterly period covered by such audit, in which case Client shall pay the reasonable costs of the audit, including reasonable
fees and expenses.

 

IN
WITNESS WHEREOF, the undersigned have executed this Schedule as of the date first set forth above.

 

	 	ICOX
    INNOVATIONS, INC.
	 	 	 
	 	By:
    	/s/
    Michael A. Blum
	 	Name:
    	Michael
    A. Blum
	 	Title:
    	Chief
    Financial Officer
	 	 	 
	 	RYDE
    HOLDING INC.
	 	 	 
	 	By:
    	/s/
    Jan Denecke
	 	 	Jan
    Denecke, CEO

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