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Exhibit 4.3
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DESCRIPTION OF VILLAGE BANK AND TRUST FINANCIAL CORP.’S SECURITIES
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As of December 31, 2020, the common stock of Village Bank and Trust Financial Corp. (the “Company”) was the only class of its securities registered under Section 12 of the Securities Exchange Act of 1934. The following summary description of the material features of the Company’s common stock does not purport to be complete and is subject to, and qualified in its entirety by reference to, the Company’s articles of incorporation and bylaws, each as amended. For more information, refer to the Company’s articles of incorporation and bylaws and any applicable provisions of relevant law, including the Virginia Stock Corporation Act and federal laws governing banks and bank holding companies.
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General
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The Company is authorized to issue 10,000,000 shares of common stock, par value $4.00 per share. Each share of the Company’s common stock has the same relative rights as, and is identical in all respects to, each other share of the Company’s common stock. The Company’s common stock is listed on the Nasdaq Capital Market under the symbol “VBFC.” Computershare, Inc., 250 Royall Street, Canton, Massachusetts, is the transfer agent for the Company’s common stock.
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Voting Rights
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Except as otherwise provided by law, each holder of the Company’s common stock has one vote per share on all matters voted upon by shareholders. Directors are elected by a plurality of the votes cast and shareholders do not have the right to accumulate their votes in the election of directors.
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Dividends
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Holders of shares of the Company’s common stock are entitled to receive dividends when and as declared by the Company’s board of directors out of funds legally available therefor. The payment of distributions by the Company is subject to the restrictions of Virginia law applicable to the declaration of distributions by a corporation. A Virginia corporation generally may not authorize and make distributions if, after giving effect to the distribution, it would be unable to meet its debts as they become due in the usual course of business or if the corporation’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if it were dissolved at that time, to satisfy the preferential rights of shareholders whose rights are superior to the rights of those receiving the distribution. In addition, the payment of distributions to shareholders is subject to any prior rights of outstanding preferred stock.
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As a bank holding company, the Company’s ability to pay dividends is affected by the ability of Village Bank, the Company’s bank subsidiary, to pay dividends to the Company. The ability of Village Bank to pay dividends is influenced by bank regulatory requirements and capital guidelines.
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Liquidation Rights
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In the event of the Company’s liquidation, dissolution or winding up, the holders of shares of the Company’s common stock are entitled to receive, in cash or in kind, the Company’s assets available for distribution remaining after payment or provision for payment of the Company debts and liabilities and after satisfaction of all liquidation preferences applicable to any preferred stock.
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Classes of Directors
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The Company’s board of directors is divided into three classes, apportioned as evenly as possible, with directors serving staggered three-year terms.
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No Preemptive or Conversion Rights; Redemption and Assessment
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Holders of shares of the Company’s common stock do not have preemptive rights to purchase additional shares of common stock and have no conversion or redemption rights. The Company’s common stock is not subject to redemption or any sinking fund and the outstanding shares are fully paid and nonassessable.
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Preferred Stock
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The Company’s board of directors may, from time to time, without shareholder approval, issue shares of the Company’s authorized, undesignated preferred stock, in one or more classes or series. In connection with any such issuance, the board of directors may by resolution determine the designation, voting rights, preferences as to dividends, in liquidation or otherwise, participation, redemption, sinking fund, conversion, dividend or other special rights or powers, and the limitations, qualifications and restrictions of such shares of preferred stock. The creation and issuance of any series of preferred stock, and the relative rights, designations and preferences of such series, if and when established, will depend upon, among other things, the future capital needs of the Company, then existing market conditions and other factors that, in the judgment of the Company’s board, might warrant the issuance of preferred stock.
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Anti-takeover Considerations
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Certain provisions of the Company’s articles of incorporation and bylaws may discourage attempts to acquire control of the Company. These provisions also may render the removal of one or all directors more difficult or deter or delay corporate changes of control that the Company’s board of directors did not approve. These provisions include the following:
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Classified Board of Directors. The Company’s board of directors is divided into three classes of directors serving staggered three-year terms. As a result, approximately one-third of the board of directors will be elected at each annual meeting of shareholders. The classification of directors, together with the provision in the articles of incorporation that permits the remaining directors to fill any vacancies on the board of directors, will have the effect of making it more difficult for shareholders to change the composition of the board of directors. As a result, at least two annual meetings of shareholders may be required for the shareholders to change a majority of the directors, whether or not a change in the board of directors would be beneficial and whether or not a majority of shareholders believe that such a change would be desirable.
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Authorized Preferred Stock. The Company’s articles of incorporation authorize the board of directors, subject to applicable Virginia law and federal banking regulations, to authorize the issuance of preferred stock at such times, for such purposes and for such consideration as the board may deem advisable without further shareholder approval. The issuance of preferred stock under certain circumstances may have the effect of discouraging an attempt by a third party to acquire control of the Company by, for example, authorizing the issuance of a series of preferred stock with rights and preferences designed to impede the proposed transaction.
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Supermajority Voting Provisions. The Company’s articles of incorporation state that certain significant corporate actions must be approved by a majority of all the votes entitled to be cast on the action by each voting group entitled to vote at a meeting at which a quorum of the voting group is present, provided that the action has been approved and recommended by at least two-thirds of the directors in office at the time of such approval and recommendation. If the action is not so approved and recommended by two-thirds of the directors in office, then the action must be approved by the affirmative vote of 80% or more of all of the votes entitled to be cast on such action by each voting group entitled to vote. These significant corporate actions include: adoption of amendments to the Company’s articles of incorporation; adoption of plans of merger or share exchange; sales of all or substantially all of the Company’s assets other than in the ordinary course of business; and adoption of plans of dissolution.
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No Cumulative Voting. The Company’s articles of incorporation do not provide for cumulative voting for any purpose. The absence of cumulative voting may afford anti-takeover protection by making it more difficult for the Company’s shareholders to elect nominees opposed by the board of directors.
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Shareholder Meetings. Pursuant to the Company’s bylaws, special meetings of shareholders may be called only by the Company’s president or board of directors. As a result, shareholders are not able to act on matters other
than at annual shareholders’ meetings unless they are able to persuade the president or a majority of the board of directors to call a special meeting.
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Advance Notification Requirements. The Company’s bylaws require a shareholder who desires to raise new business, or nominate a candidate for election to the board of directors, at an annual meeting of shareholders to provide advance notice of at least 60 days and not more than 90 days before the date of the scheduled annual meeting; provided that in the event that less than 70 days’ notice or prior public disclosure of the date of the scheduled annual meeting is given or made, notice by a shareholder, to be timely, must be received not later than the close of business on the 10th day following the earlier of the date on which such notice of the meeting was mailed or the date public disclosure of the meeting was made. The bylaws require a shareholder who desires to raise new business to provide certain information to the Company concerning the nature of the new business, the shareholder and the shareholder’s interest in the business matter. Similarly, a shareholder wishing to nominate any person for election as a director must provide the Company with certain information concerning the nominee and the proposing shareholder. Such requirements may discourage the Company’s shareholders from submitting nominations and proposals.

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VILLAGE BANK
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OUTSIDE DIRECTORS DEFERRAL PLAN
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Amended and Restated Effective November 19, 2013
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VILLAGE BANK
OUTSIDE DIRECTORS DEFERRAL PLAN
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INTRODUCTION‌1
ARTICLE I DEFINITIONS‌1

1.01Administrator1
1.02Affiliate1
		1.03	Bankl

		1.04	Beneficiary1

		1.05	Benefit Commencement Date1

		1.06	Board]

1.07Code2
		1.08	Coi11pa11y2

		1.09	Company Stock2

		1.10	Compensation2

		1.11	Death Benefit2

		1.12	Deferral Amount2

		1.13	Deferral Contributions2

		1.14	Deferral Election2

		1.15	Deferred Account3

		1.16	Deferred Benefit3

		1.17	Deferred Cash Subaccount.3

		1.18	Deferred Company Stock Subaccount3

1.19Director3
		1.20	Eligible Director.3

		1.21	Fund3

		1.22	Participant3

1.23Plan4
1.24Plan Year4
		1.25	Rabbi Trust.4

		1.26	Rate ofReturn4

		1.27	Retirement4

		1.28	Trustee4

ARTICLE II ELIGIBILITY AND PARTICIPATION‌4
2.0IEligibility‌4

		2.02	Notice and Election Regarding Active Participation4

		2.03	Commencement of Active Participation5

		2.04	Length of Participation5

ARTICLE III DETERMINATION OF DEFERRAL.‌5
		3.01	Deferred Benefit.5

		3.02	Deferral Election5

		3.03	Crediting ofEarnings6

		3.04	Equitable Adjustment in Case of Error or Omission6

ARTICLE IV DEFERRED ACCOUNTS AND INVESTMENTS‌6

ARTICLE V VESTING?
ARTICLE VI DEATH BENEFITS‌7

		6.01	Pre-Benefit Commencement Date Death Benefit.?

		6.02	Post-Benefit Commencement Date Death Benefit7

ARTICLE VII PAYMENT OF BENEFITS‌8

		7.01	Payment of Deferred Benefit8

		7.02	Payment of Death Benefit8

		7.03	Form of Payment of Deferred Benefit8

7.04Benefit Determination and Payment Procedure8
		7.05	Payments to Minors and Incompetents8

7.06Distribution of Benefit When Distributee Cannot Be Located8
		7.07	Beneficiary Designation9

		7.08	Delay for Specified Employees9

ARTICLE VIII FUNDING‌9

		8.01	Funding9

		8.02	Purchase of Life Insurance10

		8.03	Rabbi Trust.l 0

		8.04	Fund Divisions10

		8.05	Participant Investment Directions10

ARTICLE IX PLAN ADMINISTRATOR‌11

		9.01	Appointment of Administrator11

		9.02	Duties and Responsibilities of Plan Administrator11

ARTICLE X AMENDMENT OR TERMINATION OF PLAN‌11
ARTICLE XI MISCELLANEOUS‌11

		11.01	Non-assignability11

		11.02	Notices and Elections12

		11.03	Delegation of Authority12

		11.04	Service of Process12

		11.05	Governing Law12

		11.06	Binding Effect12

		11.07	Severability12

		11.08	Gender and Number12

		11.09	Titles and Captions13

11.10 Code Section 409A‌13
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INTRODUCTION
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Effective January I, 2005, the Board of Directors of Village Bank adopted the Outside Directors Deferral Plan (the "Plan"), under which non-employee directors of Village Bank have the opportunity to defer receipt of certain compensation until retirement or departure from the Board. The Plan has been amended and restated effective November 19, 2013 to permit Participants to elect to have all or a portion of their Plan benefit invested in Company Stock to be held in a Rabbi Trust.
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ARTICLE I DEFINITIONS
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		1.01	Administrator

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Administrator means the Compensation Committee of the Board unless responsibility is delegated as provided for in Article IX.
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		1.02	Affiliate

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Affiliate means any subsidiary, parent, affiliate, or other related business entity to the
Bank.
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		1.03	Bank

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Bank means Village Bank, or any successor thereto.
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		1.04	Beneficiary

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Beneficiary means the person or persons designated by a Participant or otherwise entitled pursuant to Section 7.07 to receive benefits under the Plan attributable to such Participant after the death of such Participant.
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1.05Benefit Commencement Date
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Benefit Commencement Date means the first day of the month following the Participant's Retirement.
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		1.06	Board

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Board means the present and any succeeding Board of Directors of the Company and/the Bank, unless such term is used with respect to a particular Affiliate and its Directors, in which event it shall mean the present and any succeeding Board of Directors of that Affiliate.
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		1.07	Code

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Code means the Internal Revenue Code of 1986, as amended from time to time.
Reference to a particular section of the Code includes reference to any regulations issued by the Department of Treasury and any notices and other releases issued by the Internal Revenue Service interpreting or implementing that Code Section.
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		1.08	Company

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Company means Village Bank and Trust Financial Corp.
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		1.09	Company Stock

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Company Stock means shares of Common Stock of the Village Bank and Trust Financial
Corp.
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1.10Compensation
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Compensation means fees payable to a Participant for service as a member of the Board, including (i) an annual retainer fee ("Retainer") and (ii) meeting or committee fees (collectively referred to as "Additional Fees") paid by the Bank to an Eligible Director, but excluding any such compensation deferred from a prior period, expense reimbursement and allowances and benefits not normally paid in cash to the Participant.
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1.llDeath Benefit
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Death Benefit means the benefit with respect to a Participant due a Participant's Beneficiary, determined in accordance with Article VI.
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		1.12	Deferral Amount

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Deferral Amount means, with respect to each Plan Year, the sum of the Deferral Contributions of a Participant with respect to his Retainer and/or his Additional Fees to be paid during the Plan Year.
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		1.13	Deferral Contributions

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Deferral Contributions means that portion of a Participant's Compensation which is deferred under the Plan.
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		1.14	Deferral Election

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Deferral Election means an irrevocable election of a Deferral Amount in writing executed by the Eligible Director or Participant and timely filed with the Administrator.
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		1.15	Deferred Account

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Subject to Plan section 1.20 and Article VIII, Account means the unfunded, bookkeeping account maintained on the books of the Bank for a Participant which reflects his interest in amounts attributable to his Deferral Contributions under the Plan.
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		1.16	Deferred Benefit

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Deferred Benefit means the balance in a Participant's Deferred Account.
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		1.17	Deferred Cash Subaccount

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Deferred Cash Subaccount means, with respect to a Participant, the Deferred Cash Subaccount established for the Participant pursuant to Article IV.
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		1.18	Deferred Company Stock Subaccount

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Deferred Company Stock Subaccount means, with respect to a Participant, the Deferred Company Stock Subaccount established for the Participant pursuant to Article IV.
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		1.19	Director

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Director means an individual who serves as a member of the Board.
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		1.20	Eligible Director

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Eligible Director means a Director who is not an employee of the Company or the Bank.
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		1.21	Fund

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If a trust fund is established  and maintained  for  the Plan, Fund means that trust fund, which shall consist of the Fund divisions described in Plan Section 8.04. Notwithstanding the foregoing, any reference to the Fund is intended only for purposes of providing a measurement of benefits and account balances under the Plan and is not intended to segregate assets or identify assets that may or must be used to satisfy benefit liabilities under the Plan.
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		1.22	Participant

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Participant means an Eligible Director who elects to participate in the Plan, and further differentiated as follows:
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(a)"Active Participant": A Participant who has an election to make Deferral Contributions to the Plan in effect at the time in question.
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(b)"Inactive Participant": A Participant who does not have an election to make Deferral Contributions to the Plan in effect at the time in question.
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		1.23	Plan

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Plan means the Village Bank Outside Directors Deferral Plan.
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		1.24	Plan Year

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Plan Year means the calendar year.
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		1.25	Rabbi Trust

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Rabbi Trust means a trust fund described in Plan Section 8.03 and established or maintained for the Plan.
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1.26Rate of Return
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Rate of Return means the fixed rate of return for allocations made by a Participant to his Deferred Cash Subaccount.   Such rate of return shall be established by the Board of Directors in its sole discretion prior to the beginning of each Plan Year.
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		1.27	Retirement

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Retirement means a Participant's termination of service from the Board, provided such event constitutes a separation from service within the meaning of Treasury Regulation
Section 1.409A-1(h).
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		1.28	Trustee

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Trustee means the entity serving from time to time as trustee of the Fund pursuant to any Rabbi Trust.
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ARTICLE II ELIGIBILITY AND PARTICIPATION
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		2.01	Eligibility

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Each Eligible Director shall be eligible to participate in the Plan and to defer Compensation hereunder for such Plan Year.
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		2.02	Notice and Election Regarding Active Participation

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(a)In order to become an Active Participant and to make Deferral Contributions with respect to a Plan Year, an Eligible Director must file with the Administrator a Deferral Election, as provided in Plan section 3.02, which is effective as of the first day of the Plan Year. Such election must be filed by the date established by the Administrator, which date shall be no
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later than the December 31 preceding such Plan Year. An individual who becomes an Eligible Director during a Plan Year must file a Deferral Election with the Administrator within 30 days after becoming an Eligible Director.
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(b)By executing and filing such election with the Administrator, an Eligible Director consents and agrees to the following:
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(i)To execute such applications and take such physical examinations and to supply truthfully and completely such information as may be requested by any health questionnaire provided by the Administrator;
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thereto.

	(ii)	

To be bound by all terms and conditions of the Plan and all amendments
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		2.03	Commencement of Active Participation

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An Eligible Director shall become an Active Participant with respect to a Plan Year only ifhe is expected to have Compensation during such Plan Year, and he timely files and has in effect a Deferral Election for such Plan Year.
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		2.04	Length of Participation

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An individual who is or becomes a Participant shall be or remain an Active Participant as long as he has a Deferral Election in effect; and he shall be or remain an Inactive Participant as long as he is entitled to future benefits under the terms of the Plan and is not considered an Active Participant.
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ARTICLE III DETERMINATION OF DEFERRAL
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		3.01	Deferred Benefit

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A Participant's Deferred Benefit shall be the balance in his Deferred Account as of the date of determination.
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3.02Deferral Election
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(a)Subject to the restrictions and conditions provided in this Plan section, a Participant may irrevocably elect, as a Deferral Contribution with respect to a Plan Year, to defer all or a portion of his Compensation in and accordance with his Election for such Plan Year. Any such election must be filed with the Administrator at the time required under Plan
section 2.02(a).
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		(b)	The following conditions apply:

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(i)The maximum Deferral Contribution of Retainer with respect to any Participant for a Plan Year shall be one hundred percent (100%) of his Retainer for such Plan Year and such election shall be made in ten percent (10%) increments or in a flat dollar amount in fifty dollar ($50) increments.
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(ii)The maximum Deferral Contribution of Additional Fees with respect to any Participant for a Plan Year shall be one hundred percent (I 00%) of his Additional Fees for such Plan Year and such election shall be made in ten percent (10%) increments or in a flat dollar amount in fifty dollar ($50) increments.
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(iii)A Participant's Deferral Election shall remain in effect from year to year unless revised or amended. A Participant may revoke or amend his Deferral Election effective as of the beginning of a Plan Year in accordance with the procedures described in Plan
section 2.02(a).
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(iv)Each Deferral Election shall be made on a form provided by the Administrator and shall specify the Deferral Amount, the source of deferrals, the extent to which the Participant selects a Bank Stock investment election, and such additional information as the Administrator may require.   Effective as of November 19, 2013, the Participant may submit a Deferral Election or other form provided by the Administrator to elect that all or a portion of the Participant's current Deferred Account balance be invested in whole shares of Company Stock.
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3.03Crediting of Earnings
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(a)There shall be credited to each Participant's Deferred Cash Subaccount an amount representing interest on the balance of such Subaccount. Interest shall be credited as earned. Such interest shall be based on the applicable Rate of Return for the Plan Year.
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(b)Earnings on a Participant's Deferred Bank Stock Subaccount shall be determined in accordance with procedures adopted for the Plan by the Administrator from time to time.
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		3.04	Equitable Adjustment in Case of Error or Omission

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If an error or omission is discovered in a Participant's Deferred Account, the Administrator shall make such equitable adjustment as the Administrator deems appropriate.
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ARTICLE IV
DEFERRED ACCOUNTS AND INVESTMENTS
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A separate Deferred Account under the Plan shall be established for each Participant.
Such Deferred Account shall be (a) credited with the amounts deferred in accordance with Plan Section 3.02, (b) credited with investment earnings, and (c) charged with the amounts paid by the
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Plan to or on behalf of the Participant in accordance with Article VII. With each Participant's Deferred Account, separate subaccounts shall be maintained to the extent that the Board determines them necessary or useful in the administration of the Plan, including a Deferred Company Stock Subaccount for Participants who select Company Stock as an investment on their Deferral Election.
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ARTICLEV VESTING
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A Participant's Deferred Account shall be fully vested and non-forfeitable at all times.
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ARTICLE VI DEATH BENEFITS
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6.01Pre-Benefit Commencement Date Death Benefit
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In the event that a Participant dies prior to his Benefit Commencement Date, the Beneficiary of such Participant shall be entitled to receive as a Death Benefit an amount equal to the Deferred Benefit that the Participant would have received as of his date of death. This Death Benefit shall be calculated by (a) increasing the Participant's Account by any amounts that have been deferred and amounts not yet credited to the Account, and (b) increasing the value of the Participant's Deferred Cash Subaccount and/or Deferred Company Stock Subaccount, as applicable, by the amount that would have been credited as interest at the Rate of Return (for the Deferred Cash Subaccount) or gains and losses on the underlying Company Stock (for the Deferred Company Stock Subaccount) from the date of death through the Beneficiary's Benefit Commencement Date. This Death Benefit shall begin to be paid on the first of January after the Participant's date of death. The Participant's Deferred Cash Subaccount shall accrue interest thereafter at the Rate of Return, and the Participant's Deferred Company Stock Subaccount, if applicable, shall be credited with gains and losses on the underlying Company Stock.
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		6.02	Post-Benefit Commencement Date Death Benefit

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In the event that a Participant dies after his Benefit Commencement Date, then the Beneficiary of such Participant shall be entitled to receive as a Death Benefit a continuation of the payment of the Deferred Benefit in the same manner and in the same amount that the Participant would have received had the Participant lived to receive the Deferred Benefit.
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ARTICLE VII PAYMENT OF BENEFITS
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		7.01	Payment of Deferred Benefit

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A Participant's Deferred Benefit, if any, shall become payable to the Participant as of the Benefit Commencement Date. Each of the Participant's installment payments shall be comprised of accrued interest, if any, and that portion of the Participant's Deferred Benefit equal to the balance in the Participant's Deferred Account.
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		7.02	Payment of Death Benefit

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A Participant's pre-benefit commencement Death Benefit shall be payable to his Beneficiary as set forth in Article VI and shall be paid in installments payable over a ten-year period beginning as of the January 1 following the Participant's date of death.
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		7.03	Form of Payment of Deferred Benefit

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A Participant's Deferred Account shall be paid in cash and/or Company Stock, in accordance with the applicable Deferral Election form.
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		7.04	Benefit Determination and Payment Procedure

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The Administrator shall make all determinations concerning eligibility for benefits under the Plan, the time or terms of payment, and the form or mariner of payment to the Participant or the Participant's Beneficiary, in the event of the death of the Participant. The Administrator shall promptly notify the Bank of each such determination that benefit payments are due and provide to the Bank all other information necessary to allow the Bank to carry out such determination, whereupon the Bank shall pay such benefits in accordance with the Administrator's determination.
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		7.05	Payments to Minors and Incompetents

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If a Participant or Beneficiary entitled to receive any benefits hereunder is a minor or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, or is deemed so by the Administrator, benefits will be paid to such person as the Administrator may designate for the benefit of such Participant or Beneficiary. Such payments shall be considered a payment to such Participant or Beneficiary and shall, to the extent made, be deemed a complete discharge of any liability for such payments under the Plan.
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		7.06	Distribution of Benefit When Distributee Cannot Be Located

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The Administrator shall make all reasonable attempts to determine the identity and/or whereabouts of a Participant or a Participant's Beneficiary entitled to benefits under the Plan, including the mailing by certified mail of a notice to the last known address shown on the Bank's or the Administrator's records. If  the Administrator is unable to locate such a person entitled to
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benefits hereunder, or if there has been no claim made for such benefits, the Bank shall continue to hold the benefit due such person, subject to any applicable statute of escheats.
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		7.07	Beneficiary Designation

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(a)A Participant may designate a Beneficiary. Any Beneficiary designation made hereunder shall be effective only if properly signed and dated by the Participant and delivered to the Administrator prior to the time of the Participant's death. The most recent Beneficiary designation received by the Administrator shall be the effective Beneficiary designation for all Plan Years and shall supersede all prior Beneficiary designations unless specifically designated otherwise.. Any Beneficiary designation hereunder shall remain effective until changed or revoked hereunder.
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(b)A Beneficiary designation may be changed by the Participant at any time, or from time to time, by filing a new designation in writing with the Administrator.
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(c)If the Participant dies without having designated a Beneficiary, or if the Beneficiary so designated has predeceased him, then his estate shall be deemed to be his Beneficiary.
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(d)Ifa Beneficiary of the Participant shall survive the Participant but shall die before the Participant's entire benefit under the Plan has been distributed, then the unpaid balance thereof shall be distributed to any other beneficiary named by the deceased Beneficiary to receive his interest or, if none, to the estate of the deceased Beneficiary.
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		7.08	Delay For Specified Employees

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Because the Plan is only for Eligible Directors (those who are not employees of the Bank), it is not expected that any Participants will be Specified Employees under Code
Section 409A. However, in the event that a Participant is a Specified Employee at the time of his separation from service, then notwithstanding any other provision of the Plan, unless the Participant's separation from service is by reason of the Participant's death, then any amount that becomes payable under the Plan due to the Participant's separation from service will be paid on the first day that is six months after the date on which the Participant's separation from service occurs.
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ARTICLE VIII
FUNDING
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		8.01	Funding

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All Plan Participants and Beneficiaries are general unsecured creditors of the Bank with respect to the benefits due hereunder and the Plan constitutes a mere promise by the Bank to make benefit payments in the future. It is the intention of the Bank that the Plan be considered unfunded for tax purposes.
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		8.02	Purchase of Life Insurance

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The Bank may, but is not required to, purchase life insurance in amounts sufficient to provide some or all of the benefits provided under this Plan or may otherwise segregate assets for such purpose.
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		8.03	Rabbi Trust

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The Bank may, but is not required to, establish a Rabbi Trust which may be used to hold assets of the Bank which are maintained as reserves against the Bank's unfunded, unsecured obligations hereunder. Such reserves shall at all times be subject to the claims of the Bank's creditors. To the extent such trust or other vehicle is established, and assets contributed, for the purpose of fulfilling the Bank's obligation hereunder, then such obligation of the Bank shall be reduced to the extent such assets are utilized to meet its obligations hereunder. To the extent any benefits provided under the Plan are paid from a Rabbi Trust, the Bank will have no further obligation to pay Plan benefits. Any Plan benefits not paid from the Rabbi Trust will remain the Bank's obligation.
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		8.04	Fund Divisions

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(a)It is contemplated that the Fund will be considered to be held in divisions (sometimes referred to as "divisions of the Fund", "Fund divisions" or "investments funds" herein) as hereinafter provided, and each Participant's Deferred Benefit shall be subdivided to reflect its deemed interest in each Fund division.
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(b)The Administrator shall establish from time to time the Fund divisions which shall be maintained in the fund.
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(c)If the Bank permits investment in a Company Stock Fund, the availability, restrictions, limitations and special rules relating to such investment shall be established by the Plan Sponsor from time to time and communicated to Participants.
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8.5Participant Investment Directions
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The Deferred Benefit of a Participant in the Plan shall be divided or allocated to reflect the amount of each such Participant's deemed  interest in each Fund division as hereinafter provided for the purpose of determining the earnings or loss to be credited to the Participant's Deferred Account, but any such direction shall  not give the Participant  any right, title or interest in any specific asset or assets of the Fund.
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ARTICLE IX PLAN ADMINISTRATOR
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		9.01	Appointment of Administrator

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The Plan shall be administered by the Compensation Committee. The Compensation Committee may appoint one or more persons to serve as the Administrator for the purpose of administering the Plan. In the event more than one person is appointed, the persons shall form a committee for the purpose of functioning as the Administrator of the Plan. The person or committeemen serving as Administrator shall serve for indefinite terms at the pleasure of the Compensation Committee, and may, by 30 days prior written notice to the Compensation Committee, terminate such appointment.
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		9.02	Duties and Responsibilities of Plan Administrator

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(a)The Administrator shall maintain and retain necessary records regarding its administration of the Plan.
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(b)The Administrator is empowered to settle claims against the Plan and to make such equitable adjustments in a Participant's or Beneficiary's rights or entitlements under the Plan as it deems appropriate in the event an error or omission is discovered or claimed in the operation or administration of the Plan.
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(c)The Administrator may construe the Plan, correct defects, supply omissions or reconcile inconsistencies to the extent necessary to effectuate the Plan, and such action shall be conclusive.
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ARTICLEX
AMENDMENT OR TERMINATION OF PLAN
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The Board may amend or terminate the Plan from time to time, effective as of any date specified. Any such action taken by the Board shall be evidenced by a resolution and shall be communicated to Participants and Beneficiaries prior to the effective date thereof. No amendment or termination shall decrease a Participant's Deferred Benefit accrued prior to the effective date of the amendment or termination.
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ARTICLE XI MISCELLANEOUS
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		11.01	Nonassignability

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The interests of each Participant under the Plan are not subject to claims of the Participant's creditors; and neither the Participant nor his Beneficiary shall have any right to sell,
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assign, transfer or otherwise convey the right to receive any payments hereunder or any interest under the Plan, which payments and interest are expressly declared to be non-assignable and nontransferable.
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		11.02	Notices and Elections

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All notices required to be given in writing and all elections required to be made in writing under any provision  of the  Plan shall  be invalid  unless made on such forms as may be  provided or approved by the Administrator and, in the case of a notice or election by a Participant or Beneficiary, unless executed by the Participant or Beneficiary giving such notice or making such election. Notices and elections shall be deemed given or made when received by any member of the committee that serves as Administrator.
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		11.03	Delegation of Authority

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Whenever the Bank is permitted or required to perform any act, such act may be performed by its Chief Executive Officer or President or other person duly authorized by its Chief Executive Officer or President or its Board.
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		11.04	Service of Process

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The Administrator shall be the agent for service of process on the Plan.
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		11.05	Governing Law

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The Plan shall be construed, enforced and administered in accordance with the laws of the Commonwealth of Virginia.
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		11.06	Binding Effect

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The Plan shall be binding upon and inure to the benefit of the Bank, its successors and assigns, and the Participant and his heirs, executors, administrators and legal representatives.
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		11.07	Severability

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If any provision  of the  Plan should for any reason be declared invalid or unenforceable  by a court of competent jurisdiction, the remaining provisions shall nevertheless remain in full force and effect.
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		11.08	Gender and Number

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In the construction of the Plan, the masculine shall include the feminine or neuter and the singular shall include the plural and vice-versa in all cases where such meanings would be appropriate.
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		11.09	Titles and Captions

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Titles and captions and headings herein have been inserted for convenience of reference only and are to be ignored in any construction of the provisions hereof.
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11.10 Code Section 409A
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The Plan is intended to comply with Code Section 409A, and it will be construed and administered accordingly. The provisions of the Plan and all Deferral Elections under the Plan will be effected, construed, interpreted, and applied in a manner consistent with Code
Section 409A. To the extent that any terms of the Plan or a Deferral Election would subject any Participant to gross income inclusion, interest, or additional tax pursuant to Code Section 409A, those terms are to that extent superseded by the applicable Section.
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IN WITNESS WHEREOF, the Company and the Bank have caused this Plan to be executed by their duly authorized officers.
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VILLAGE BANK AND TRUST
FINANCIAL CORP.

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