Document:

Exhibit 10.10

 

CHANGE OF CONTROL SEVERANCE AGREEMENT

(As Amended and Restated)

 

THIS CHANGE OF CONTROL
SEVERANCE AGREEMENT (the “Agreement”), originally dated and effective as of August 1, 2017, is effective this
20th day of November, 2020 (the “Effective Date”), by and between Carter Bankshares, Inc. (the “Holding
Company”) and Carter Bank & Trust (the “Bank”) and Tony E. Kallsen (“Employee”).

 

WITNESSETH:

 

WHEREAS, Employee
is a valuable employee of the Bank;

 

WHEREAS, the
Bank wishes to encourage Employee to continue Employee’s career and services with the Bank and to remain with the Bank during
any potential change of control of the Holding Company; and

 

WHEREAS, the
Holding Company, the Bank and Employee have agreed to enter into this Agreement, as amended and restated to reflect the formation
of the Holding Company to set forth the terms on which Employee may be entitled to severance pay from the Bank following a Change
of Control (as defined below).

 

NOW, THEREFORE,
it is hereby agreed by and between the parties hereto as follows:

 

1.             Definitions.

 

(a)           “Cause”
shall mean:

 

(i)            Employee’s
misconduct in connection with the performance of Employee’s duties;

 

(ii)           Employee’s
misappropriation or embezzlement of funds or property of the Bank or any affiliate;

 

(iii)          Employee’s
fraud or dishonesty with respect to the Bank or any affiliate;

 

(iv)          Employee’s
conviction of, indictment for (or the procedural equivalent), or entering of a guilty plea or plea of no contest with respect to
any felony or any misdemeanor involving moral turpitude;

 

(v)           Employee’s
breach of a material term of this Agreement, failure to perform the material duties and responsibilities of Employee’s position
or violation in any material respect of any policy, code or standard of behavior generally applicable to officers or employees
of the Bank, after being advised in writing of such breach or violation and being given a reasonable opportunity and period (as
determined by the Bank) to remedy such breach or violation (if such breach or violation is deemed by the Bank to be capable of
being remedied) which period shall be not less than thirty (30) days;

 

     

     

    

 

(vi)          Employee’s
material breach of any fiduciary duty owed to the Bank;

 

or

 

(vii)         Employee’s
engaging in conduct that, if it became known by any regulatory or governmental agency or the public, would be or is reasonably
likely to result, in the good faith judgment of the Bank, in injury to the Bank or Holding Company, monetarily or otherwise.

 

(b)           “Change
of Control” shall mean the date any one of the following events occurs after the Effective Date of this Agreement:

 

(i)            any
one person, or more than one person acting as a group, acquires ownership of stock of the Holding Company that, together with stock
held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of
the stock of the Holding Company. However, if any one person or group, is considered to own more than fifty percent (50%) of the
total fair market value or total voting power of the stock of the Holding Company, the acquisition of additional stock by the same
person or group is not considered to cause a Change of Control. An increase in the percentage of stock owned by any one person
or group, as a result of a transaction in which the Holding Company acquires its stock in exchange for property will be treated
as an acquisition of stock. This applies only when there is a transfer of stock of the Holding Company (or issuance of stock of
the Holding Company) and stock in the Holding Company remains outstanding after the transaction.

 

(ii)           any
one person, or more than one person acting as a group, acquires (or has acquired during the twelve-month period ending on the date
of the most recent acquisition by such person or group) ownership of stock of the Holding Company possessing thirty percent (30%)
or more of the total voting power of the stock of the Holding Company.

 

(iii)          a
majority of members of the Holding Company’s Board of Directors is replaced during any twelve-month period by directors whose
appointment or election is not endorsed by a majority of the members of the Holding Company’s Board of Directors prior to
the date of the appointment or election.

 

(iv)          any
one person, or more than one person acting as a group, acquires (or has acquired during the twelve-month period ending on the date
of the most recent acquisition by such person or group) assets from the Holding Company that have a total gross fair market value
equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Holding Company immediately
prior to such acquisition or acquisitions. For this purpose, “gross fair market value” shall mean the value of the
assets of the Holding Company, or the value of the assets being disposed of, determined without regard to any liabilities associated
with such assets. A transfer of assets by the Holding Company shall not be treated as a Change of Control if the assets are transferred
to: (A) a shareholder of the Holding Company (immediately before the asset transfer) in exchange for or with respect to its
stock; (B) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly,
by the Holding Company; (C) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty
percent (50%) or more of the total value or voting power of all the outstanding stock of the Holding Company; or (D) an entity,
at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described
in Section 1(b)(iv)(C) above. A person’s status is determined immediately after the transfer of the assets. For
example, a transfer to a corporation in which the Holding Company has no ownership interest before the transaction, but which is
a majority-owned subsidiary of the Holding Company after the transaction is not treated as a Change of Control.

 

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For purposes of Section 1(b)(ii) and
(iii) above, if any one person or more than one person acting as a group is considered to effectively control the Holding
Company (within the meaning of Section 1(b)(ii) or (iii) above), the acquisition of additional control of the Holding
Company by the same person or group is not considered to cause a Change of Control. For purposes of this Section 1, “more
than one person acting as a group” shall include the owners of a corporation that enters into a merger, consolidation, purchase
or acquisition of stock or assets, or similar business transaction with the Holding Company. If a person, including an entity,
owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock or assets, or similar
transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect
to the ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest
in the other corporation. Persons will not be considered to be acting as a group solely because they (I) purchase or own stock
of the same corporation at the same time, or as a result of the same public offering, or (II) purchase assets of the same
corporation at the same time.

 

(c)            “Good
Reason” shall mean within twenty-four (24) months after a Change of Control:

 

(i)            a
material diminution in Employee’s authority, duties or responsibilities;

 

(ii)           the
relocation of Employee to any other primary place of employment more than fifty (50) miles from the Bank headquarters in Martinsville,
Virginia, without Employee’s express written consent to such relocation; or

 

(iii)          a
material reduction in Employee’s base salary as it exists as of the date of the Change of Control.

 

Employee is required to provide notice
to the Bank of the existence of a condition described in Section 1(c) above within a sixty (60) day period of the initial
existence of the condition, and the Bank shall have thirty (30) days after notice to remedy the condition without liability. If
not remedied by the Bank, Employee shall have thirty (30) days after the end of such remedy period to terminate employment for
Good Reason.

 

(d)           “Incapacity”
shall mean Employee is suffering a physical or mental impairment that renders Employee unable to perform the essential functions
of Employee’s position, and such impairment exists for six months within any twelve-month period, as determined by the Bank
and in compliance with the requirements of the Americans with Disabilities Act.

 

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2.             Severance
Payments and Other Matters Related to Termination within Two (2) Years After a Change of Control.

 

(a)           Without
Cause or for Good Reason. If Employee’s employment is involuntarily terminated without Cause (and other than due to Employee’s
death or Incapacity) within two (2) years after a Change of Control shall have occurred or if Employee resigns for Good Reason
within two (2) years after a Change of Control shall have occurred, then the Bank shall pay to Employee (subject to any applicable
payroll or other taxes required to be withheld), (i) (A) any unpaid base salary for time worked through the date of termination
payable in a lump sum as soon as administratively feasible following termination, but not later than thirty (30) days thereafter;
(B) any annual incentive compensation earned during the calendar year preceding the calendar year of termination, but not
yet paid as of the date of termination, payable on the earlier of the thirtieth (30th) day after the date of termination,
or when otherwise due; and (C) any benefits or awards vested, due and owing pursuant to the terms of any other plans, policies
or programs, payable when otherwise due (hereinafter subsections (a)(i)(A) — (C) collectively are referred to as
the “Accrued Obligations”) and (ii) subject to Employee’s signing, delivering and not revoking a Release
Agreement in a form satisfactory to the Bank and the Holding Company that shall include the provisions attached as Exhibit A,
which Release Agreement must be signed, delivered and not revoked within the time period set forth therein, the following:

 

(A)          An
amount equal to one times Employee’s base salary as in effect at the time of termination, payable over a period of twelve
(12) months in accordance with the regular pay periods of the Bank (but not less frequently than monthly and in equal installments)
beginning on the first payroll following the date of termination of employment, provided, however, that all payments otherwise
due during the first sixty (60) days following termination of employment shall be accumulated and, if the Release requirements
have been met, paid on the sixtieth (60th) day following termination of employment.

 

(B)          An
amount equal to one times the average annual bonus payable for the three (3) years preceding the calendar year in which the
termination occurs (or the average for the number of years the Agreement has been in effect if less than three (3) years.)
If the Agreement was in effect and no bonus was paid for a calendar year, then the amount to be used for that year in computing
the average shall be zero. The bonus amount shall be payable over a period of twelve (12) months in accordance with the regular
pay periods of the Bank (but not less frequently than monthly and in equal installments), payable in the same manner and at the
same time as the payments in Section 2(a)(A).

 

(C)          An
amount equal to the product of twelve (12) times the monthly rate of the Bank’s subsidy for coverage in its medical, dental
and vision plans for active employees (including any applicable coverage for spouses and dependents) in effect on the date of termination,
payable in a lump sum on the sixtieth (60th) day following termination of employment.

 

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(b)           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 Holding Company and/or the Bank or a subsidiary following
a transaction that constitutes a change in the ownership or effective control of the Holding Company or in the ownership of a substantial
portion of the assets of the Holding Company 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:

 

(i)            In
the event the independent accountants serving as auditors for the Holding Company on the date of a change of control within the
meaning of Code Section 280G (or any other independent accounting firm designated by the Holding Company) 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 Holding Company or a subsidiary under Code Section 280G, then the payments scheduled
under this Agreement and all other agreements between Employee and the Holding Company or the Bank or a subsidiary 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 2(b)(i) 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.

 

(ii)           Notwithstanding
the foregoing Section 2(b)(i), in the event the independent accountants serving as auditors for the Holding Company on the
date of a change of control within the meaning of Code Section 280G (or any other independent accounting firm designated by
the Holding Company) determine that the net economic benefit to Employee after payment of all income and excise taxes is greater
without giving effect to Section 2(b)(i) than Employee’s net economic benefit after a reduction by reason of the
application of Section 2(b)(i), then Section 2(b)(i) 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 2(b)(i) shall be made
by the independent accountants serving as auditors for the Holding Company on the date of a change of control within the meaning
of Code Section 280G (or any other independent accounting firm designated by the Holding Company), shall be made at the Bank’s
expense and shall be binding on the parties.

 

(c)           Other
Terminations. If Employee’s employment is terminated for Cause or due to Employee’s death or Incapacity or if Employee
voluntarily terminates his employment other than for Good Reason, within two (2) years after a Change of Control shall have
occurred, this Agreement shall terminate without any further obligation of the Bank or Holding Company to Employee other than the
payment to Employee of any unpaid base salary for the time worked through the date of termination as soon as administratively feasible
after termination but not later than thirty (30) days thereafter and the payment of any benefits vested, due and owing pursuant
to the terms of any plans, policies or programs, payable when otherwise due.

 

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3.             Covenants.

 

(a)           Non-Competition.
Notwithstanding the foregoing, all such payments and benefits otherwise due under Section 2(a) shall cease to be paid,
and the Bank and Holding Company shall have no further obligation due with respect thereto, in the event Employee engages in any
conduct prohibited in this Section 3. In exchange for this Agreement and other valuable consideration, Employee agrees that
Employee will not engage in Competition for a period of twelve (12) months after Employee’s employment with the Bank ceases
for any reason, regardless of whether any benefits are due under Section 2(a). For purposes hereof, “Competition”
means Employee’s performing duties that are the same as or substantially similar to those duties performed by Employee for
the Bank during the last twelve (12) months of Employee’s employment, as an officer, a director, an employee, a partner or
in any other capacity, within twenty-five (25) miles of the headquarters of the Bank (or any Virginia headquarters of any successor)
or any branch office of the Bank (or any successor (as to its Virginia branches only) as they are located as of the date Employee’s
employment ceases, if those duties are performed for a bank, a bank holding company or other financial institution that provides
products or services that are the same as or substantially similar to, and competitive with, any of the products or services provided
by the Bank at the time Employee’s employment ceases.

 

(b)           Non-Piracy.
In exchange for the benefits promised in this Agreement and other valuable consideration, Employee agrees that for a period of
twelve (12) months after Employee’s employment ceases for any reason, Employee will not, directly or indirectly, solicit,
divert from the Bank or transact business with any “Customer” of the Bank with whom Employee had “Material Contact”
during the last twelve (12) months of Employee’s employment or about whom Employee obtained non-public information while
acting within the scope of Employee’s employment during the last twelve (12) months of employment, if the purpose of such
solicitation, diversion or transaction is to provide products or services that are the same as or substantially similar to, and
competitive with, those offered by the Bank at the time Employee’s employment ceases. “Material Contact” means
that Employee personally communicated with the Customer, either orally or in writing, for the purpose of providing, offering to
provide or assisting in providing products or services of the Bank. “Customer” means any person or entity with whom
the Bank had a depository or other contractual relationship, pursuant to which the Bank provided products or services during the
last twelve (12) months of Employee’s employment.

 

(c)           Non-Solicitation.
In exchange for the benefits promised in this Agreement and other valuable consideration, Employee agrees that for a period of
twelve (12) months after employment ceases, for any reason, Employee will not, directly or indirectly, hire, assist others in hiring
or solicit for hire or induce any person to terminate his or her employment with the Bank, if the purpose is to compete with the
Bank.

 

(d)           Confidentiality.
As an employee of the Bank, Employee will have access to and may participate in the origination of non-public, proprietary and
confidential information relating to the Bank and/or its affiliates, including the Holding Company, and Employee acknowledges a
fiduciary duty owed to the Bank and its affiliates not to disclose impermissibly any such information. Confidential information
may include, but is not limited to, trade secrets, customer lists and information, internal corporate planning, methods of marketing
and operation, and other data or information of or concerning the Holding Company or the Bank or its customers that is not generally
known to the public or generally in the banking industry. Employee agrees that during employment and for a period of five (5) years
following the cessation of employment, Employee will not use or disclose to any third party any such confidential information,
either directly or indirectly, except as may be authorized in writing specifically by the Bank; provided, however that to the extent
the information covered by this Section 8 is otherwise protected by the law, such as “trade secrets,” as defined
by the Virginia Uniform Trade Secrets Act, or customer information protected by banking privacy laws, that information shall not
be disclosed or used for however long the legal protections applicable to such information remain in effect.

 

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Notwithstanding the foregoing,
nothing in this Agreement is intended to prohibit Employee from performing any duty or obligation that shall arise as a matter
of law or limit Employee’s right to communicate with a government agency, as provided for, protected under or warranted by
applicable law. Specifically, Employee shall continue to be under a duty to truthfully respond to any legal and valid subpoena
or other legal process. In the event Employee is requested to disclose confidential information by subpoena or other legal process
or lawful exercise of authority, Employee shall promptly provide the Bank with notice of the same and cooperate with the Bank in
the Bank’s effort, at its sole expense, to avoid disclosure.

 

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 federal or state 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.

 

(e)           Remedies.
Employee acknowledges that the covenants set forth in Section 3 of this Agreement are just, reasonable, and necessary to protect
the legitimate business interests of the Holding Company and the Bank. Employee further acknowledges that if Employee breaches
or threatens to breach any provision of Section 3, the Holding Company’s and Bank’s remedies at law will be inadequate,
and the Holding Company and the Bank will be irreparably harmed. Accordingly, the Holding Company and the Bank shall be entitled
to their attorney’s fees, costs and an injunction, both preliminary and permanent, restraining Employee from such breach
or threatened breach, such injunctive relief not to preclude the Holding Company and the Bank from pursuing all available legal
and equitable remedies.

 

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4.             Documents.
All documents, records, tapes and other media of any kind or description relating to the business of the Bank or any of its affiliates
(the “Documents”), whether or not prepared by Employee, shall be the sole and exclusive property of the Bank. The Documents
(and any copies) shall be returned to the Bank upon Employee’s termination of employment for any reason or at such earlier
time or times as the Board of Directors of the Holding Company or its designee may specify.

 

5.             Severability.
If any provision of this Agreement, or part thereof, is determined to be unenforceable for any reason whatsoever, it shall be severable
from the remainder of this Agreement and shall not invalidate or affect the other provisions of this Agreement, which shall remain
in full force and effect and shall be enforceable according to their terms. No covenant shall be dependent upon any other covenant
or provision herein, each of which stands independently.

 

6.             Governing
Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia. The
parties further agree that venue in the event of any dispute shall be exclusively in the Circuit Court of the City of Martinsville,
Virginia, or the applicable federal court, at the sole option of the Holding Company or the Bank, and Employee agrees not to object
to venue.

 

7.             Notices.
All written notices required by this Agreement shall be deemed given when delivered personally or sent by registered or certified
mail, return receipt requested, to the parties at their addresses set forth on the signature page of this Agreement. Each
party may, from time to time, designate a different address to which notices should be sent.

 

8.             Amendment.
This Agreement may not be varied, altered, modified or in any way amended except by an instrument in writing executed by the parties
hereto or their legal representatives.

 

9.             Binding
Effect. This Agreement shall be binding upon Employee, on the Holding Company and on the Bank, their successors and assigns,
effective on the Effective Date. The Holding Company will require any successor to all or substantially all of the business and/or
assets of the Holding Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent
that the Holding Company or the Bank would be required to perform it if no such succession had taken place. This Agreement shall
be freely assignable by the Holding Company and the Bank.

 

10.           No
Construction Against Any Party. This Agreement is the product of informed negotiations between Employee, the Holding Company
and the Bank. If any part of this Agreement is deemed to be unclear or ambiguous, it shall be construed as if it were drafted jointly
by all parties. Employee, the Holding Company and the Bank agree that none of the parties was in a superior bargaining position
regarding the substantive terms of this Agreement.

 

11.           Code
Section 409A Compliance.

 

(a)           The
intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue
Code of 1986, as amended, and applicable guidance thereunder (“Code Section 409A”) or comply with an exemption
from the application of Code Section 409A and, accordingly, all provisions of this Agreement shall be construed in a manner
consistent with the requirements for avoiding taxes or penalties under Code Section 409A.

 

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(b)           Neither
Employee nor the Holding Company nor the Bank shall take any action to accelerate or delay the payment of any monies and/or provision
of any benefits in any matter which would not be in compliance with Code Section 409A.

 

(c)            A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
form or timing of payment of any amounts or benefits upon or following a termination of employment unless such termination is also
a “separation from service” (within the meaning of Code Section 409A) and, for purposes of any such provision
of this Agreement under which (and to the extent) deferred compensation subject to Code Section 409A is paid, references to
a “termination” or “termination of employment” or like references shall mean separation from service. A
 “separation from service” shall not occur under Code Section 409A unless such Employee has completely severed
Employee’s relationship with the Bank and its affiliates (as determined under Code Section 409A) or Employee has permanently
decreased Employee’s services to twenty percent (20%) or less of the average level of bona fide services over the immediately
preceding thirty-six (36) month period (or the full period if Employee has been providing services for less than thirty-six (36)
months). A leave of absence shall only trigger a termination of employment that constitutes a separation from service at the time
required under Code Section 409A. If Employee is deemed on the date of separation from service with the Bank to be a “specified
employee”, within the meaning of that term under Code Section 409A(a)(2)(B) and using the identification methodology
selected by the Bank from time to time, or if none, the default methodology, then with regard to any payment or benefit that is
required to be delayed in compliance with Code Section 409A(a)(2)(B), such payment or benefit shall not be made or provided
prior to the earlier of (i) the expiration of the six-month period measured from the date of Employee’s separation from
service or (ii) the date of Employee’s death. In the case of benefits required to be delayed under Code Section 409A,
however, Employee may pay the cost of benefit coverage, and thereby obtain benefits, during such six-month delay period and then
be reimbursed by the Bank thereafter when delayed payments are made pursuant to the next sentence. On the first day of the seventh
month following the date of Employee’s separation from service or, if earlier, on the date of Employee’s death, all
payments delayed pursuant to this Section 11(c) (whether they would have otherwise been payable in a single sum or in
installments in the absence of such delay) shall be paid or reimbursed to Employee in a lump sum, and any remaining payments and
benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
If any cash payment is delayed under this Section 11(c), then interest shall be paid on the amount delayed calculated at the
prime rate reported in The Wall Street Journal for the date of Employee’s termination to the date of payment.

 

(d)           With
regard to any provision herein that provides for reimbursement of expenses or in-kind benefits subject to Code Section 409A,
except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits is not subject to liquidation
or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided
during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other
taxable year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement
covered by Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement
is in effect. All reimbursements shall be reimbursed in accordance with the Bank’s reimbursement policies but in no event
later than the calendar year following the calendar year in which the related expense is incurred.

 

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(e)           If
under this Agreement, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment
shall be treated as a separate payment. In the event any payment payable upon termination of employment would be exempt from Code
Section 409A under Treas. Reg. § 1.409A-1(b)(9)(iii) but for the amount of such payment, the determination of the
payments to Employee that are exempt under such provision shall be made by applying the exemption to payments based on chronological
order beginning with the payments paid closest in time on or after such termination of employment.

 

(f)            When,
if ever, a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall
be made within ten (10) days following the date of termination”), the actual date of payment within the specified period
shall be within the sole discretion of the Bank.

 

(g)           Notwithstanding
any of the provisions of this Agreement, neither the Holding Company nor the Bank shall be liable to Employee if any payment or
benefit which is to be provided pursuant to this Agreement and which is considered deferred compensation subject to Code Section 409A
otherwise fails to comply with, or be exempt from, the requirements of Code Section 409A.

 

12.           Regulatory
Limitation. Notwithstanding any other provision of this Agreement, neither the Bank nor any affiliate shall be obligated to
make, and Employee shall have no right to receive, any payment, benefit or amount under this Agreement that would violate any law,
regulation or regulatory order applicable to the Bank or the affiliate at the time such payment is due, including without limitation,
any regulation or order of the Federal Deposit Insurance Corporation or the Board of Governors of the Federal Reserve System or
the Office of the Comptroller of the Currency.

 

13.           Entire
Agreement. Except as otherwise provided herein, this Agreement constitutes the entire agreement of the parties with respect
to the matters addressed herein and it supersedes all other prior agreements and understandings, both written and oral, express
or implied, including the Change of Control Severance Agreement dated August 1, 2017 between the Bank and Employee, with respect
to the subject matter of this Agreement. It is further specifically agreed and acknowledged that, except as provided herein, Employee
shall not be entitled to severance payments or benefits under any severance or similar plan, program, arrangement or agreement
of or the Bank for any cessation of employment occurring while this Agreement is in effect.

 

14.           Survivability.
The provisions of Section 3 shall survive the termination of this Agreement other than due to the expiration or non-renewal
of this Agreement.

 

15.           Title.
The titles and sub-headings of each Section and Sub-Section in the Agreement are for convenience only and should not
be considered part of the Agreement to aid in interpretation or construction.

 

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16.           Counterparts/Facsimile.
This Agreement may be executed and delivered in multiple counterparts (including by Docusign or a similarly accredited secure signature
service or other electronic transmission or signature), each of which when so executed and delivered shall be deemed to be an original,
and all of which together shall constitute one and the same instrument. Counterparts may be delivered by facsimile, e-mail (including
..pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and
shall be valid and effective for all purposes.

 

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IN WITNESS WHEREOF,
the Holding Company and the Bank have caused this Agreement to be executed by an officer thereunto duly authorized, and Employee
has signed this Agreement, all effective as of the date first above written.

 

	CARTER
    BANKSHARES, INC.	 	Tony E. Kallsen
	 	 	 
	By:	/s/ Litz H. Van Dyke	 	/s/ Tony E. Kallsen
	 	Litz H. Van Dyke	 	 
	 	Title: Chief Executive Officer	 	 
	 	 	 
	CARTER BANK &
    TRUST	 	 
	 	 	 
	By:	/s/ Litz H. Van Dyke	 	 
	 	Litz H. Van Dyke	 	 
	 	Title: Chief Executive Officer	 	 
	 	 	 
	 	Holding Company and Bank Address:	 	Employee Address:
	 	Chief Executive Officer	 	<<ADDRESS>>
	 	Carter Bankshares, Inc.	 	<<CITY, STATE ZIP>>
	 	1300 Kings Mountain Road	 	 
	 	Martinsville, VA 24117	 	 

 

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EXHIBIT A

 

RELEASE

 

For good and valuable consideration, the
receipt of which is hereby acknowledged, Tony E. Kallsen (“Employee”), hereby irrevocably and unconditionally releases,
acquits, and forever discharges Carter Bankshares, Inc. (“Holding Company”) and Carter Bank & Trust (the
 “Bank”) and each of their agents, directors, members, affiliated entities, officers, employees, former employees, attorneys,
successors, predecessors, parents, subsidiaries and all persons acting by, through, under or in concert with any of them (collectively
 “Releasees”) from any and all charges, complaints, claims, liabilities, grievances, obligations, promises, agreements,
controversies, damages, policies, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses of any nature
whatsoever, known or unknown, suspected or unsuspected, including, but not limited to, any rights arising out of alleged violations
or breaches of any contracts, express or implied, or any tort, or any legal restrictions on the Bank’s right to terminate
employees, or any federal, state or other governmental statute, regulation, law or ordinance, including without limitation (1) Title
VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991; (2) the Americans with Disabilities Act;
(3) 42 U.S.C. § 1981; (4) the federal Age Discrimination in Employment Act (age discrimination); (5) the Older
Workers Benefit Protection Act; (6) the Equal Pay Act; (7) the Family and Medical Leave Act; and (8) the Employee
Retirement Income Security Act (“ERISA”) (“Claim” or “Claims”), which Employee now has, owns
or holds, or claims to have, own or hold, or which Employee at any time heretofore had owned or held, or claimed to have owned
or held, against each or any of the Releasees at any time up to and including the date of the execution of this Release.

 

Employee hereby acknowledges and agrees
that the execution of this Release and the cessation of Employee’s employment and all actions taken in connection therewith
are in compliance with the federal Age Discrimination in Employment Act and the Older Workers Benefit Protection Act and that the
releases set forth above shall be applicable, without limitation, to any claims brought under these Acts. Employee further acknowledges
and agrees that:

 

a.             The
Release given by Employee is given solely in exchange for the consideration set forth in Section 2 of the Change of Control
Severance Agreement (As Amended and Restated) dated as of November 20, 2020, by and between the Holding Company, the Bank
and Employee to which this Release was initially attached and such consideration is in addition to anything of value which Employee
was entitled to receive prior to entering into this Release;

 

b.            By
entering into this Release, Employee does not waive rights or claims that may arise after the date this Release is executed;

 

c.             Employee
has been advised to consult an attorney prior to entering into this Release, and this provision of the Release satisfies the requirements
of the Older Workers Benefit Protection Act that Employee be so advised in writing;

 

    A-1 

     

    

 

d.            Employee
has been offered forty-five (45) days from receipt of this Release within which to consider whether to sign this Release;

 

e.            No
change to this Release, material or otherwise, shall restart the forty-five (45)-day period; and

 

f.            For
a period of seven (7) days following Employee’s execution of this Release, Employee may revoke this Release and it shall
not become effective or enforceable until such seven (7) day period has expired.

 

This Release shall be binding upon the
heirs and personal representatives of Employee and shall inure to the benefit of the successors and assigns of the Holding Company
and the Bank.

 

	 	 	 
	Date	 	Tony E. Kallsen

 

    A-2Exhibit 10.11

 

VIRGINIA BANKERS ASSOCIATION

  

MODEL NON-QUALIFIED DEFERRED COMPENSATION
PLAN

 

FOR EXECUTIVES

 

(As Restated Effective January 1,
2018 and Incorporating Amendments Through November 1, 2020)

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	ARTICLE I	 
	 	Definition of Terms	 
	 	 	 
	1.1	Act	1
	1.2	Administrator	1
	1.3	Adoption Agreement	1
	1.4	Affiliate	1
	1.5	Beneficiary	2
	1.6	Benefit Commencement Date	2
	1.7	Board	2
	1.8	Change in Control	2
	1.9	Code	2
	1.10	Compensation	2
	1.11	Deferral Account or Deferral Accounts	2
	1.11(a)	Employee Deferral Account	2
	1.11(b)	Employer Deferral Account	2
	1.11(c)	Predecessor Plan Account	3
	1.12	Deferral Benefit	3
	1.13	Deferred Compensation Election	3
	1.14	Deferral Contributions	3
	1.15	Effective Date of the Plan	3
	1.16	Effective Date of the Restatement of the Plan	3
	1.17	Eligible Employee	3
	1.18	Employee	3
	1.19	Employer	3
	1.20	Fund	3
	1.21	Participant	4
	1.22	Plan	4
	1.23	Plan Sponsor	4
	1.24	Plan Year	4
	1.25	Rabbi Trust	4
	1.26	Restated Plan	4
	1.27	Section 409A	4
	1.28	Separation from Service	4
	1.29	Termination of Employment	4
	1.30	Trustee	4
	1.31	Valuation Date	5
	1.32	VBA Plan	5

 

ARTICLE II

Eligibility and Participation

 

	2.1	Eligibility	5
	2.2	Notice Regarding Active Participation	5
	2.3	Length of Participation	5
	2.4	Termination of Active Participation	5

 

     

     

    

 

ARTICLE III

Employee Contributions

 

	3.1	Deferred Compensation Election	5
	3.2	Timing of Deferred Compensation Election	7
	3.3	Crediting of Employee Deferral Contributions	8
	3.4	Automatic Cancellation of Deferred Compensation
    Election upon Receipt of Hardship Withdrawal	8
	3.5	Cancellation of Deferred Compensation Election upon Disability	8

 

ARTICLE IV

Employer Contributions

 

	4.1	Employer Contribution Allocations	9
	4.2	Employment Taxes	9

 

ARTICLE V

Deemed Earnings and Accounting

 

	5.1	Fund Divisions	9
	5.2	Participant Investment Directions	10
	5.3	Crediting of Deemed Earnings	10
	5.4	Subtractions from Deferral Account	11
	5.5	Expenses Charged to Deferral Accounts	11
	5.6	Equitable Adjustment in Case of Error or Omission	11
	5.7	Statement of Benefits	11

 

ARTICLE VI

Vesting

 

	6.1	Vesting in Employee Deferral Account and Predecessor Plan Account	11
	6.2	Vesting in Employer Non-Elective Deferral Account	11
	6.3	Vesting in Employer Matching Deferral Account	11
	6.4	Forfeiture of Benefits	12
	6.5	No Restoration of Forfeited Benefits	13

 

ARTICLE VII

Beneficiary Designation

 

	7.1	Beneficiary Designation	13

 

ARTICLE VIII

Retirement Dates

 

	8.1	Normal Retirement Date	14
	8.2	Delayed Retirement Date	14
	8.3	Early Retirement Date	14
	8.4	Disability Retirement Date	14
	8.5	Use of Retirement Date Definitions	14

 

    	 	- ii -	 

     

    

 

ARTICLE IX

Time and Form of Payment

 

	9.1	Time of Payment	14
	9.2	Form of Payment	16
	9.3	Permissible Changes to Benefit Commencement Date
    and/or Form of Payment	16
	9.4	Lump-Sum Payments and Periodic Installments	16
	9.5	Permissible Cash Out by Lump-Sum Payment	17
	9.6	Benefit Determination and Payment Procedure	17
	9.7	Payments to Minors and Incompetents	18
	9.8	Distribution of Benefit When Distributee Cannot Be Located	18

 

ARTICLE X

Withdrawals

 

	10.1	Hardship Withdrawals	18
	10.2	Distributions in the Event of Income Inclusion	19
	10.3	No Other Withdrawals Permitted	19

 

ARTICLE XI

Claims Procedure

 

	11.1	Initial Claim	19
	11.2	Appeals	21
	11.3	Time Calculation	24
	11.4	Definitions	24
	11.5	Authorized Representatives	25

 

ARTICLE XII

Funding

 

	12.1	Funding	25
	12.2	Use of Rabbi Trust Permitted	25

 

ARTICLE XIII

Plan Administrator

 

	13.1	Appointment of Plan Administrator	25
	13.2	Plan Sponsor as Plan Administrator	25
	13.3	Procedure if a Committee	26
	13.4	Action by Majority Vote if a Committee	26
	13.5	Appointment of Successors	26
	13.6	Duties and Responsibilities of Plan Administrator	26
	13.7	Power and Authority	26
	13.8	Availability of Records	26
	13.9	No Action with Respect to Own Benefit	26

 

    	 	- iii -	 

     

    

 

ARTICLE XIV

Amendment and Termination of Plan

 

	14.1	Amendment or Termination of the Plan	27
	14.2	Effect of Employer Merger, Consolidation, or Liquidation	27

 

ARTICLE XV

Participation by Additional Employers

 

	15.1	Adoption by Additional Employers	28
	15.2	Termination Events with Respect to Employers Other Than the Plan Sponsor	28

 

ARTICLE XVI

Miscellaneous

 

	16.1	Nonassignability	28
	16.2	Right to Require Information and Reliance Thereon	28
	16.3	Notices and Elections	28
	16.4	Delegation of Authority	29
	16.5	Service of Process	29
	16.6	Governing Law	29
	16.7	Binding Effect	29
	16.8	Severability	29
	16.9	No Effect on Employment Agreement	29
	16.10	Gender and Number	29
	16.11	Titles and Captions	29
	16.12	Construction	29
	16.13	Nonqualified Deferred Compensation Plan Omnibus Provision	29

 

    	 	- iv -	 

     

    

 

 

VIRGINIA BANKERS ASSOCIATION

MODEL NON-QUALIFIED DEFERRED COMPENSATION
PLAN

FOR EXECUTIVES

(As Restated Effective January 1,
2018)

 

An employer desiring
to adopt the Plan should complete the necessary information in the Adoption Agreement. Any plan restatement using the form of this
Model Non-Qualified Deferred Compensation Plan affects amounts that were deferred or that became vested on or after January 1,
2005. The terms of this document are effective January 1, 2018. Unless otherwise elected in Option 3(b)(2)(C) of the
Adoption Agreement, all amounts deferred and vested prior to January 1, 2005 remain subject to the terms of the plan document
as in effect on December 31, 2004.

 

The Virginia Bankers
Association cannot guarantee that any Plan adopted by an employer will be deemed to satisfy, or will actually satisfy, the requirements
of the Internal Revenue Code or ERISA applicable to non-qualified "top-hat" deferred compensation plans. Employers considering
the use of the Plan must recognize that neither the Virginia Bankers Association nor its affiliates or any of their employees or
representatives can give any legal advice as to the acceptability or application of the Plan in any particular situation, and that
employers should consult their own attorney for such advice. The establishment, operation, and the related tax consequences of
the adoption and maintenance of a non-qualified "top-hat" deferred compensation plan are the responsibilities of the
employer and its own legal counsel.

 

ARTICLE I

Definition of Terms

 

The following words
and terms as used in this Plan shall have the meaning set forth below, unless a different meaning is clearly required by the context:

 

1.1            “Act”:
The Employee Retirement Income Security Act of 1974, as the same may be amended from time to time, or the corresponding sections
of any subsequent legislation which replaces it, and, to the extent not inconsistent therewith, the regulations issued thereunder.

 

1.2            “Administrator”:
The Plan Administrator named and serving in accordance with ARTICLE XIII hereof, and any successor or additional Administrator
appointed and serving in accordance herewith, all as selected in Option 2(b) of the Adoption Agreement or as appointed, resigned
or removed by separate instrument attached thereto.

 

1.3            “Adoption
Agreement”: The adoption agreement, and any amendment thereto, which sets forth certain elections and representations
of the Plan Sponsor and any participating Employer and by execution of which the Plan Sponsor and any participating Employer adopt
the Plan.

 

1.4            “Affiliate”:
Each of the following business entities or other organizations (whether or not incorporated) which during the relevant period is
treated (but only for the portion of the period so treated and for the purpose and to the extent required to be so treated) together
with the Employer as a single employer pursuant to the following sections of the Code (as modified where applicable by Section 415(h) of
the Code):

 

1.4(a)            Any
corporation which is a member of a controlled group of corporations (as defined in Section 414(b) of the Code) which
includes the Employer, and

 

1.4(b)            Any
trade or business (whether or not incorporated) which is under common control (as defined in Section 414(c) of the Code)
with the Employer.

 

     

     

    

 

1.5            “Beneficiary”:
The person or persons designated by a Participant or otherwise entitled pursuant to ARTICLE VII to receive benefits under
the Plan attributable to such Participant after the death of such Participant.

 

1.6            “Benefit
Commencement Date”: The date or dates designated or provided for in Option 8(a) of the Adoption Agreement. Notwithstanding
the foregoing, the Benefit Commencement Date for the Employer Non-Elective Deferral Account shall be the Participant’s Separation
from Service. If earlier than any Benefit Commencement Date designated or elected, a Participant’s Benefit Commencement Date
shall be the date such Participant is determined to be Disabled as that term is defined in subparagraph 8.4(b).

 

1.7            “Board”:
The present and any succeeding Board of Directors of the Plan Sponsor, unless such term is used with respect to a particular Employer
and its Employees or Participants, in which event it shall mean the present and any succeeding Board of Directors of that Employer.

 

1.8            “Change
in Control”: A change in the ownership, change in effective control, or change in the ownership of a substantial portion
of the assets of the Plan Sponsor as defined in Treasury Regulation Section 1.409A-3(i)(5) or its successor or as otherwise
defined as a special provision in Option 3(b)(3) of the Adoption Agreement.

 

1.9            “Code”:
The Internal Revenue Code of 1986, as the same may be amended from time to time, or the corresponding section of any subsequent
Internal Revenue Code, and, to the extent not inconsistent therewith, regulations issued thereunder.

 

1.10            “Compensation”:
A Participant’s (a) annual base salary as more specifically designated in Option 4(a) of the Adoption Agreement
(referred to as “Salary”) and (b) bonuses and incentive pay as more specifically designated in Option 4(a) of
the Adoption Agreement (together, referred to as “Bonus”) including that portion of such compensation which is electively
deferred under this Plan or any other plan of the Employer such as a 401(k) plan for such Plan Year or reduced pursuant to
a salary reduction election permitted under Section 125 of the Code, but excluding any such compensation deferred from a prior
period or any expense reimbursements, allowances, or benefits not normally paid in cash to the Participant.

 

1.11            “Deferral
Account” or “Deferral Accounts”: The unfunded, bookkeeping account(s) maintained on the books of the
Employer for each Participant which reflects his interest in amounts attributable to Deferral Contributions and the deemed earnings
or losses thereon determined pursuant to paragraph 5.3, consisting of the following:

 

1.11(a)    “Employee
Deferral Account”: The account or accounts attributable to Employee Deferral Contributions made pursuant to paragraph
3.1, subtractions pursuant to paragraph 5.4, and deemed earnings or losses thereon determined pursuant to paragraph 5.3. A separate
accounting shall be made for Employee Deferral Contributions for each Plan Year and earnings attributable thereto.

 

1.11(b)    “Employer
Deferral Account”: The account or accounts attributable to contributions made by the Employer, consisting of the following
subaccounts, for which a separate accounting shall be made for each contribution type for each Plan Year and earnings attributable
thereto:

 

(i)            “Employer
Non-Elective Deferral Account”: The subaccount attributable to Employer Non-Elective Contributions made pursuant to Option
5(a) of the Adoption Agreement and paragraph 4.1 of the Plan and the earnings attributable thereto. If applicable, a subdivision
of the Employer Non-Elective Deferral Account shall be maintained to reflect Employer Non-Elective Contributions and the earnings
attributable thereto until such time as the subaccount becomes fully vested.

 

    - 2 - 

     

    

 

(ii)            “Employer
Matching Deferral Account”: The subaccount attributable to Employer Matching Contributions made pursuant to Option 5(a) of
the Adoption Agreement and paragraph 4.1 of the Plan and the earnings attributable thereto. If applicable, a subdivision of the
Employer Matching Deferral Account shall be maintained to reflect Employer Matching Contributions and the earnings attributable
thereto until such time as the subaccount becomes fully vested.

 

1.11(c)    “Predecessor
Plan Account”: The account or accounts attributable to any elective or non-elective deferral of remuneration by or on
behalf of the Participant under any “top-hat” deferred compensation plan previously maintained by the Employer that
is merged into or transferred to the Plan.

 

For purposes of this restatement
of the Plan, unless elected in Option 3(b)(2)(C) of the Adoption Agreement, Deferral Accounts do not include accounts under
the Plan attributable to amounts deferred and vested before January 1, 2005. Such accounts are considered grandfathered and
are subject to the rules of Plan as in effect on December 31, 2004.

 

1.12            “Deferral
Benefit”: The sum of the vested balances of Participant’s Deferral Accounts as of the most recent Valuation Date
(or as otherwise provided herein).

 

1.13            “Deferred
Compensation Election”: The election made by the Participant pursuant to paragraph 3.1 of the Plan.

 

1.14            “Deferral
Contributions”: That portion of a Participant’s Compensation which is deferred under the Plan and/or the non-elective
or matching contributions made under the Plan by the Employer.

 

1.15            “Effective
Date of the Plan”: The date or dates specified in Option 3(a) (or in Option 1(f), in the case of an adopting Employer)
of the Adoption Agreement.

 

1.16            “Effective
Date of the Restatement of the Plan”: The date or dates specified in Option 3(b)(2) of the Adoption Agreement.

 

1.17            “Eligible
Employee”: Any Employee included within the definition of Eligible Employee as more specifically designated in Option 4(b) of
the Adoption Agreement; provided, however, in order to be an Eligible Employee, the Employee must be in the “highly
compensated group”. The term “highly compensated group” means a select group of management or highly compensated
employees as described and used in Sections 201(2), 301(a)(3), and 401(a)(1) of the Act.

 

1.18            “Employee”:
Any individual employed in the service of the Employer as a common law employee of the Employer.

 

1.19            “Employer”:
The Plan Sponsor and those Affiliates named in Option 1(f) of the Adoption Agreement as adopting the Plan, collectively, unless
the context indicates otherwise.

 

1.20            “Fund”:

 

1.20(a)    If
a Rabbi Trust is established and maintained for the Plan, that Rabbi Trust, which shall consist of the Fund divisions described
in paragraph 5.1. Notwithstanding the foregoing, any reference to the Fund is intended only for purposes of providing a measurement
of Deferral Benefits and Deferral Account balances and is not intended to segregate assets or identify assets that may or must
be used to satisfy benefit liabilities under the Plan.

 

    - 3 - 

     

    

 

1.20(b)    If
a Rabbi Trust is not established and maintained for the Plan, that separate bookkeeping account maintained by the Plan Sponsor
to make deemed investments of Deferral Contributions, which shall consist of the Fund divisions described in paragraph 5.1.

 

1.21            “Participant”:
An Eligible Employee or other person qualified to participate in the Plan for so long as he is considered a Participant as provided
in ARTICLE II hereof.

 

1.22            “Plan”:
This document, including the Appendices hereto, as contained herein or duly amended all as adopted by the Plan Sponsor through
the Adoption Agreement.

 

1.23            “Plan
Sponsor”: The employer named in Option 1(a) of the Adoption Agreement.

 

1.24            “Plan
Year”: The twelve consecutive month period commencing upon the first day of January of each year; provided,
however, in the event that this is a Restated Plan which was maintained previously on the basis of a different plan year,
the prior plan year and short plan year needed to effect the plan year change shall be as set forth in Option 4(c) of
the Adoption Agreement.

 

1.25            “Rabbi
Trust”: A trust fund described in paragraph 12.2 and established or maintained for the Plan.

 

1.26            “Restated
Plan”: The Plan, if it is elected in Option 3(b)(2) of the Adoption Agreement that the Plan is adopted as an
amendment or restatement of a “top-hat” deferred compensation plan previously maintained by the Employer.

 

1.27            “Section 409A”:
Section 409A of the Code, including the regulations promulgated thereunder, and any other applicable published guidance of
the Internal Revenue Service for Section 409A of the Code.

 

1.28            “Separation
from Service”: The death, retirement or other Termination of Employment with the Employer and all Affiliates (whether
or not the Affiliate is an adopting Employer) for reasons other than Disability as defined in subparagraph 8.4(b). For purposes
hereof the employment relationship is treated as continuing intact while the individual is on military leave, sick leave or other
bona fide leave of absence if the period of leave does not exceed six (6) months, so long as the individual’s right
to reemployment is provided either by statute or by contract. If the period exceeds six (6) months and the individual’s
right to reemployment is not provided by contract or statute, then the employment relationship is deemed to terminate on the first
date immediately following such six-month period.

 

1.29            “Termination
of Employment”: Facts and circumstances indicating a date beyond which the Employer does not intend for the Employee
to provide more than insignificant services for the Employer (regardless of whether provided as an Employee or as an independent
contractor) and Affiliates (whether or not the Affiliate is a participating Employer). For purposes hereof, whether any services
are more than insignificant will be determined in accordance with the provisions of Section 409A. Unless otherwise stated
in Option 3(b)(3) of the Adoption Agreement, if the level of bona fide service the Employee would perform after such date
will permanently decrease to no more than twenty percent (20%) of the average level of bona fide service over the preceding thirty-six
(36) months, such services shall be treated as insignificant and a Termination of Employment will be deemed to occur, unless facts
and circumstances indicate that the Employee continues to be treated as an Employee for other purposes. With respect to a Participant
who provides services for the Employer both as an Employee and a member of the Board, services as a member of the Board shall not
be taken into account in determining whether a Participant has experienced a Separation from Service under this Plan.

 

1.30            “Trustee”:
The person(s) serving from time to time as trustee of any Rabbi Trust.

 

    - 4 - 

     

    

 

1.31            “Valuation
Date”: Each business day (based on the days the underlying investment funds are valued and transactions are effectuated
in the applicable financial markets) of the Plan Year (which Valuation Date is sometimes referred to as a “daily” valuation
date), or such other dates as the Administrator may designate from time to time.

 

1.32            “VBA
Plan”: The Virginia Bankers Association Master Defined Contribution Plan and Trust.

 

ARTICLE II

Eligibility and Participation

 

2.1            Eligibility.
Each Eligible Employee shall be eligible to participate in the Plan effective as provided for in Option 4(d) of the Adoption
Agreement.

 

2.2            Notice
Regarding Active Participation. The Administrator shall give notice of eligibility to each Eligible Employee.

 

2.3            Length
of Participation. Each Eligible Employee shall automatically become a Participant upon his timely filing a Deferred Compensation
Election or other election to participate and remain a Participant as long as he is entitled to future benefits under the terms
of the Plan.

 

2.4            Termination
of Active Participation. Subject to compliance with Section 409A and paragraphs 3.4 or 3.5, a Participant who is an
active Participant for an applicable contribution election period (that is, the calendar year generally or the period for which
Bonuses are determined, as applicable) shall cease to be an active Participant for the applicable year or period, as the case may
be, if and when he ceases to be an Eligible Employee during the applicable year or period, in which case he may not again become
an active Participant until a subsequent calendar year or period for which Bonuses are determined, as applicable. A leave of absence
(whether paid or unpaid) which does not result in a Separation from Service shall not be considered cessation of status as an Eligible
Employee for this purpose.

 

ARTICLE III

Employee Contributions

 

3.1            Deferred
Compensation Election.

 

3.1(a)       Subject
to the restrictions and conditions hereinafter provided, an Eligible Employee shall be entitled to elect to defer, as an Employee
Deferral Contribution with respect to a Plan Year, an amount of his Compensation which is specified by and in accordance with his
direction in his Deferred Compensation Election for such Plan Year. Any such election must be filed with the Administrator at the
time required under paragraph 3.2.

 

3.1(b)       Deferred
Compensation Elections shall be subject to the following rules:

 

(i)             A
separate Deferred Compensation Election must be filed for each Plan Year;

 

(ii)            Each
Deferred Compensation Election must specify the following:

 

(A)            The
Plan Year to which it relates;

 

(B)            The
amount or percentage of Compensation to be deferred;

 

    - 5 - 

     

    

 

(C)            The
Compensation from which the Employee Deferral Contribution shall be withheld, if appropriate;

 

(D)            If
Option 8(a)(2) of the Adoption Agreement is selected, the Benefit Commencement Date, which date (I) may be one of the
dates permitted in Option 8(a)(2)(A) of the Adoption Agreement and (II) shall be irrevocable;

 

(E)            If
permitted in Option 8(a)(2)(A)(vi), whether the Benefit Commencement Date shall be accelerated upon a Change in Control, if a
Change in Control occurs prior to the Benefit Commencement Date otherwise elected;

 

(F)            If
Option 8(b)(2) of the Adoption Agreement is selected, the form of payment (and if periodic installments are elected, the duration
and frequency of the installments), which election shall be irrevocable; and

 

(G)            Such
other information as the Administrator may require.

 

(iii)            A
Participant shall have no unilateral right to change or terminate his Deferred Compensation Election once the annual filing deadline
established by the Administrator has passed, which deadline shall be no later than the dates prescribed in paragraph 3.2.

 

(iv)            The
Benefit Commencement Date and form of payment election made in the Deferred Compensation Election with respect to the Employee
Deferral Account for any Plan Year shall also apply to each subdivision of the Employer Matching Deferral Account for the same
Plan Year.

 

3.1(c)       Each
Employee Deferral Contribution is intended to be an elective salary reduction amount which shall be deducted from a Participant’s
Compensation otherwise payable to him for a Plan Year by way of Salary or Bonus. Unless otherwise approved by the Administrator:

 

(i)            Employee
Deferral Contribution of Salary shall be withheld from annual salary on a pro rata basis throughout the Plan Year (or remainder
of the Plan Year, in the case of an Eligible Employee who first becomes a Participant after the first day of the Plan Year or if
the Effective Date of the Plan is after the first day of the Plan Year); and

 

(ii)            Unless
otherwise specifically stated in the Deferred Compensation Election filed by the Participant, Employee Deferral Contributions of
Bonus shall be withheld on a first dollar basis from the Bonus before any part is paid to the Participant. However, the Deferred
Compensation Election filed by the Participant may, if permitted by the Administrator, provide that the Employee Deferral Contribution
of Bonus be withheld after a threshold level of Bonus has been paid to the Participant in cash.

 

3.1(d)       Paired
Plan. Notwithstanding any provision of the Plan to the contrary, if the Plan Sponsor has elected in Option 3(c) of the
Adoption Agreement that this Plan is intended to be paired with a qualified deferred compensation plan (a “Paired Plan”),
then the Employee Deferral Contribution and any associated Employer Matching Contribution for a Plan Year of a Participant who
is also a participant in such Paired Plan shall be transferred to the Paired Plan by the Employer no later than March 15 following
the Plan Year, subject to the following provisions:

 

(i)            The
election to participate in a paired arrangement must be made in the Deferred Compensation Election for the Plan Year and shall
be irrevocable.

 

    - 6 - 

     

    

 

(ii)            The
amount of the Employee Deferral Contribution transferred shall not exceed the lesser of the limit with respect to elective deferrals
under Section 402(g)(1)(A), (B) and (C) of the Code, taking into account catch-up contributions allowed under Section 414(v)(2)(B)(i) of
the Code, or the amount of the elective deferral permitted after application of the actual deferral percentage limitation or any
other applicable limitation in such Paired Plan.

 

(iii)            The
amount of the Employer Matching Contribution transferred shall not exceed the lesser of the limit with respect to elective deferrals
under Section 402(g)(1)(A), (B) and (C) imposed on the Paired Plan or the amount of matching contributions permitted
after application of the actual contribution percentage limitation or any other applicable limitation in such Paired Plan.

 

3.1(e)       Employment
taxes required to be withheld on any Employee Deferral Contributions shall be withheld from Compensation that is not being deferred
in a manner determined by the Employer. However, if necessary, the Administrator may reduce the Employee Deferral Contribution
as needed to comply with applicable employment tax withholding requirements.

 

3.2            Timing
of Deferred Compensation Election.

 

3.2(a)       With
respect to the Plan Year in which the Effective Date of the Plan or the effective date of coverage as described in Option 4(d) of
the Adoption Agreement occurs (“first year of eligibility”), in order to make Employee Deferral Contributions
with respect to such Plan Year, an Eligible Employee who is a newly Eligible Employee must file a Deferred Compensation Election
with the Administrator within thirty (30) days of such Effective Date of the Plan or effective date of coverage. The Deferred Compensation
Election shall be effective to defer Compensation for services performed in pay periods after the pay period in which it is filed.
For this purpose:

 

(i)            Compensation
based on a performance period (such as an annual bonus) is deemed earned ratably throughout the period for which earned.

 

(ii)            An
Eligible Employee’s first year of eligibility is the year in which he first becomes eligible to participate in any account
balance type deferred compensation plan, within the meaning of Section 409A, maintained by the Employer or any Affiliate.

 

(iii)            If
all amounts owed an Employee from all account balance plans maintained by the Plan Sponsor and its Affiliates subject to Section 409A
have been paid to the Employee and if the Employee has become ineligible to accrue further benefits, then if he thereafter becomes
an Eligible Employee, the year in which he again becomes an Eligible Employee may be treated as his first year of eligibility.

 

(iv)            If
a Participant is not an Eligible Employee for at least twenty-four (24) consecutive months, then if he thereafter becomes an Eligible
Employee, the year in which he again becomes an Eligible Employee may be treated as his first year of eligibility.

 

3.2(b)      With
respect to Plan Years beginning on or after the first year of eligibility, in order to make Employee Deferral Contributions of
Salary with respect to such a Plan Year, an Eligible Employee must file a Deferred Compensation Election with the Administrator
prior the annual filing deadline established by the Administrator, which deadline must be in the calendar year immediately preceding
the year in which the Salary relates. The Deferred Compensation Election for Salary shall be effective as of the first day of the
Plan Year in which the services that give rise to the Salary to be deferred are rendered.

 

    - 7 - 

     

    

 

3.2(c)       With
respect to Plan Years beginning on or after the first year of eligibility, in order to make Employee Deferral Contributions of
Bonus with respect to the Plan Year, an Eligible Employee must file a Deferred Compensation Election with the Administrator prior
to the annual filing deadline established by the Administrator, which deadline must be in the calendar year or, if different and
permitted by the Administrator (as evidenced by the applicable Deferred Compensation Election form) where the Bonus is earned on
the basis of the Plan Sponsor’s fiscal year, the Plan Sponsor’s fiscal year immediately preceding the applicable year
in which the period to which the Bonus relates commences.

 

3.2(d)      Notwithstanding
subparagraph 3.2(c), if elected in Option 4(e) of the Adoption Agreement, the Administrator may permit a Deferred Compensation
Election relating to a Bonus which is Performance-Based Compensation (within the meaning of Section 409A(a)(4)(B)(iii) of
the Code) based on services performed over a period of at least twelve (12) consecutive months to be made prior to the annual
filing deadline established by the Administrator, which deadline must be not later than six (6) months prior to the end of
the period for which the Bonus is earned, so long as the Eligible Employee has been continuously employed by the Employer from
the later of the date the performance criteria are established or the performance period begins through the date of the election.
For this purpose, performance-based compensation must be based on pre-established organizational or individual performance criteria
relating to a performance period of at least twelve (12) consecutive months, provided the criteria are established in writing
no later than ninety (90) days after the beginning of the period of service to which the Bonus and performance relate and the
outcome is substantially uncertain at the time the performance criteria are established, as more specifically described in Treasury
Regulation Section 1.409A-1(e).

 

3.3            Crediting
of Employee Deferral Contributions. Employee Deferral Contributions shall be credited to an Employee Deferral Account as
of the date an amount equal to each Employee Deferral Contribution is credited on the accounting records of the Plan as directed
by the Administrator, which date shall be no later than the end of the calendar month following the month the Compensation from
which such contribution is deducted would otherwise have been paid to the Participant and may be as soon as the date as of which
the amount would otherwise have been paid to the Participant.

 

3.4            Automatic
Cancellation of Deferred Compensation Election upon Receipt of Hardship Withdrawal.

 

3.4(a)       In
the event of an Unforeseeable Emergency withdrawal (as described in paragraph 10.1), any Deferred Compensation Election shall be
cancelled (rather than postponed or delayed) prospectively so that no further deferrals from Salary or Bonus shall be made during
the remainder of the Plan Year in which the withdrawal occurred.

 

3.4(b)      [RESERVED].

 

3.4(c)       The
Participant whose Deferred Compensation Election is cancelled pursuant to this paragraph must file a new Deferred Compensation
Election in order to commence or recommence making deferrals under the Plan from his Salary or Bonus.

 

3.5            Cancellation
of Deferred Compensation Election upon Disability.

 

3.5(a)       If
elected in Option 4(f) of the Adoption Agreement, in the event of Disability, any Deferred Compensation Election shall be
cancelled (rather than postponed or delayed) prospectively so that no further deferrals from Salary or Bonus shall be made during
the remainder of the Plan Year provided such cancellation occurs by the later of the end of the Participant’s taxable year
or the fifteenth (15th) day of the third (3rd) month following the date the Participant incurs the Disability.

 

    - 8 - 

     

    

 

3.5(b)      For
purposes hereof, “Disability” shall mean any medically determinable physical or mental impairment which results
in the Participant’s inability to perform the duties of his position or any substantially similar position and can be expected
to result in death or to last for a continuous period of not less than six (6) months. The determination of Disability shall
be made by the Administrator, on the advice of one or more physicians appointed and approved by the Employer, and the Administrator
shall have the right to require further medical examinations from time to time to determine whether there has been any change in
the Participant’s condition.

 

ARTICLE IV

Employer Contributions

 

4.1            Employer
Contribution Allocations.

 

4.1(a)       If
elected in Option 5(a)(2) of the Adoption Agreement, the Employer Non-Elective Contributions for each Plan Year shall be allocated
to the Employer Non-Elective Deferral Accounts of Participants described in Option 5(a)(2) of the Adoption Agreement in the
manner and as of the date set forth in Option 5(a)(2) of the Adoption Agreement.

 

4.1(b)       If
elected in Option 5(a)(3) of the Adoption Agreement, the Employer Matching Contributions for each Plan Year shall be allocated
to the Employer Matching Deferral Accounts of Participants described in Option 5(a)(3) of the Adoption Agreement in the manner
and as of the date set forth in Option 5(a)(3) of the Adoption Agreement.

 

4.1(c)       Notwithstanding
anything to the contrary herein, each Deferral Contribution of the Employer is not intended to be an actual contribution by the
Employer, but rather is only a bookkeeping amount credited for benefit determination purposes under the Plan.

 

4.1(d)       The
Employer may from time to time make a discretionary contribution to the Plan on behalf of one or a group of Participants. At the
time the contribution is made the Employer will specify how such amounts are allocated among the Participants accounts and the
timing of such allocation.

 

4.2            Employment
Taxes. Employment taxes required to be withheld on any Employer Contributions shall be withheld from Compensation that
is not being deferred in a manner determined by the Employer. However, if necessary, the Administrator may reduce the Employer
Contributions needed to comply with applicable employment tax withholding requirements.

 

ARTICLE V

Deemed Earnings and Accounting

 

5.1            Fund
Divisions.

 

5.1(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
Deferral Benefit shall be subdivided to reflect its deemed interest in each Fund division.

 

5.1(b)      The
Administrator shall establish from time to time the Fund divisions which shall be maintained in the Fund, which are designed to
mirror the investment options available under the VBA Plan, to the extent legally practical, with alternate funds designated where
collective investment funds may not be offered under a nonqualified plan.

 

    - 9 - 

     

    

 

5.1(c)       If
the Plan Sponsor 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 and to the Administrator.

 

5.2            Participant
Investment Directions. The Deferral 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 his Deferral Account, but any such direction shall not give the Participant any right, title
or interest in any specific asset or assets of the Fund.

 

5.2(a)       If
and to the extent permitted in Option 10(a) of the Adoption Agreement, upon becoming a Participant without a contribution
investment direction in force, a Participant may direct that future contributions and Deferral Account balances shall be invested
in the funds available for directed investment as selected in Option 10(b) of the Adoption Agreement by filing an “investment
direction” with the Administrator in accordance with the procedures established by the Administrator. The Administrator
(or its designee) generally will process investment directions on a current basis after received, but shall not be obligated to
process any investment directions on a retroactive basis.

 

5.2(b)       If
or to the extent a Participant (or if deceased, his Beneficiary) has no investment direction in effect, his Deferral Accounts shall
be invested in the default fund designated by the Administrator from time to time.

 

5.2(c)       The
Administrator may, on a uniform and non-discriminatory basis from time to time, set or change the advance notice requirement for
effecting investment directions, may limit the number of investment direction changes made in a Plan Year, may limit investment
directions, if any, which can be made by telephone, electronically or through the internet, may impose blackout periods for changes,
may temporarily or permanently suspend the offering of an investment fund, and generally may change any of the investment direction
procedures or options from time to time and at any time.

 

5.3            Crediting
of Deemed Earnings.

 

5.3(a)       As
of each Valuation Date, there shall be credited to each Participant’s Deferral Account an amount representing deemed earnings
or loss on the “valuation balance” of each such account in accordance with procedures adopted by the Administrator
from time to time.

 

5.3(b)      Such
deemed earnings or loss shall be determined as follows:

 

(i)            For
periods during which a Fund is maintained and Plan benefits may be paid therefrom because the Plan Sponsor or any other Employer
is not insolvent, such earnings or loss shall be based on the net investment rate of return or loss of the Fund division(s) in
which the Participant’s Deferral Benefit under the Plan is considered invested for the period, determined separately for
each Fund division and the portion of the Participant’s Deferred Benefit considered invested in each such Fund division,
based on the Participant’s applicable or deemed investment directions pursuant to paragraph 5.2. The net investment rate
of return or loss means earnings or loss (including valuation changes and charges for expenses) for the period of the Fund compared
to the aggregate valuation balances sharing in those earnings or loss.

 

(ii)            For
periods during which the Fund is not maintained or Plan benefits may not be paid therefrom because the Plan Sponsor or any other
Employer is insolvent, such earnings or loss shall be based on an annual rate determined for each Plan Year and equal to the 1
year U.S. Treasury Rate as of the December 31 immediately preceding the Plan Year.

 

    - 10 - 

     

    

 

5.3(c)      Notwithstanding
the other provisions of this ARTICLE V, whenever the Plan accounting is based on daily Valuation Dates, the valuation adjustments
to Participants’ accounts shall be effected on such basis and subject to such rules and procedures as the Administrator
may determine to reflect daily accounting.

 

5.4            Subtractions
from Deferral Account. All distributions (including any withheld income or other taxes) and withdrawals shall be subtracted
from a Participant’s Deferral Account and the applicable subdivision thereof when made.

 

5.5            Expenses
Charged to Deferral Accounts. Notwithstanding any other provision of the Plan to the contrary, expenses incurred in the
administration of the Plan and the Rabbi Trust may be charged to Deferral Accounts on either a pro rata basis or a per capita
basis, and/or may be charged to the Deferral Account of the affected Participant(s) and Beneficiary(ies) (which term is intended
to include any alternate payee(s)) on a usage basis (rather than to all Deferral Accounts), as directed by the Administrator.
Without limiting the foregoing, some or all of the reasonable expenses attendant to the determinations needed with respect to
and making of withdrawals, the calculation of benefits payable under different Plan distribution options and the distribution
of Plan benefits may be charged directly to the Deferral Account of the affected Participant and Beneficiary, and different rules (i.e.,
pro rata, per capita, or direct charge to Deferral Accounts) may apply to different groupings of Participants and Beneficiaries.

 

5.6            Equitable
Adjustment in Case of Error or Omission. Where an error or omission is discovered in the Deferral Account of a Participant,
the Administrator shall be authorized to make such equitable adjustment as the Administrator deems appropriate.

 

5.7            Statement
of Benefits. Within a reasonable time after the end of each calendar quarter and at the date a Participant’s Deferral
Benefit or death benefit becomes payable under the Plan, the Administrator shall provide to each Participant (or, if deceased,
to his Beneficiary) a statement of the benefit under the Plan.

 

ARTICLE VI

Vesting

 

6.1            Vesting
in Employee Deferral Account and Predecessor Plan Account. A Participant’s rights to the balance in his Employee
Deferral Account and, unless provided otherwise in Option 3(b)(3) of the Adoption Agreement, in his Predecessor Plan Account
shall be fully vested and nonforfeitable at all times, and his Separation from Service shall not diminish the amount payable to
the Participant or his Beneficiary.

 

6.2            Vesting
in Employer Non-Elective Deferral Account. A Participant shall have a vested interest in a percentage of his Employer Non-Elective
Deferral Account determined in accordance with the vesting provisions selected in Option 6(a)(1) of the Adoption Agreement.

 

6.3            Vesting
in Employer Matching Deferral Account. A Participant shall have a vested interest in a percentage of his Employer Matching
Deferral Account determined in accordance with the vesting provisions selected in Option 6(a)(2) of the Adoption Agreement.

 

    - 11 - 

     

    

 

6.4            Forfeiture
of Benefits.

 

6.4(a)       Notwithstanding
any contrary provision hereof, a Participant’s Employer Deferral Account shall be irrevocably forfeited upon the occurrence
of any the following events (as defined in subparagraph 6.4(b)):

 

(i)            The
Participant’s termination of employment with the Employer for “cause”;

 

(ii)            The
Participant’s entering into “competition”, or his making an “unauthorized disclosure of confidential information”,
after his termination of or retirement from employment with the Employer, in which case all payments to, or with respect to, the
Participant shall cease and all payments made to the Participant or his Beneficiary under the Plan since the occurrence of such
event of forfeiture shall be returned to the Employer (provided however, forfeiture shall not occur upon a Participant’s
entering into competition following a Change in Control); or

 

(iii)            The
discovery, after the Participant’s termination of or retirement from employment with Employer or death, of “cause”
for his termination or of his “unauthorized disclosure of confidential information” prior to his termination, retirement
or death, in which case all payments under the Plan to, or with respect to, the Participant shall cease and all payments previously
made to the Participant or his Beneficiary under the Plan shall be returned to the Employer.

 

All determinations
hereunder shall be made by the Administrator, in its sole and absolute discretion.

 

6.4(b)      For
purposes of subparagraph 6.4(a):

 

(i)            “Cause”
means the willful gross misconduct of the Participant which is materially injurious to the Employer or any Affiliate, including
but not limited to the Participant’s knowingly or intentionally providing the Employer with materially false reports concerning
the Participant’s business interests or employment-related activities, making materially false representations relied on
by the Employer in furnishing information to shareholders and the Securities Exchange Commission, willfully concealing unauthorized
material conflicts of interest in the discharge of duties owed by the Participant to the Employer, willfully causing a serious
violation by the Employer of state or federal laws, theft or misappropriation of the assets of the Employer, or conviction of a
felony (excluding traffic violations).

 

(ii)            “Competition”
means engaging by the Participant, without the written consent of the Board or a person authorized thereby, in a business as a
more than one percent (1%) stockholder, an officer, a director, an employee, a partner, an agent, a consultant, or any other individual
or representative capacity (unless the Participant’s duties, responsibilities, and activities, including supervisory activities,
for or on behalf of such business, are not related in any way to such “competitive activity”) if it involves:

 

(A)            Engaging
in, or entering into services or providing advice pertaining to, any line of business that the Employer or any Affiliate actively
conducts or develops in the same geographic area (generally, within a one hundred (100) mile radius of the Employer’s principal
place of business), or

 

(B)            Employing
or soliciting for employment any employees of the Employer or any Affiliate.

 

    - 12 - 

     

    

 

(iii)            “Unauthorized
disclosure of confidential information” means the disclosure by the Participant, without the written consent of the Board
or a person authorized thereby, to any person other than as required by law or court order, or other than to an authorized employee
of the Employer or an Affiliate, or to a person to whom disclosure is necessary or appropriate in connection with the performance
by the Participant of his duties as an employee or director of the Employer or an Affiliate (including, but not limited to, disclosure
to the Employer’s or an Affiliate’s outside counsel, accountants or bankers of financial data properly requested by
such persons and approved by an authorized officer of the Employer), any confidential information of the Employer or any Affiliate
with respect to any of the products, services, customers, suppliers, marketing techniques, methods or future plans of the Employer
or any Affiliate; provided, however, that:

 

(A)            Confidential
information shall not include any information known generally to the public (other than as a result of unauthorized disclosure
by the Participant) or any information of a type not otherwise considered confidential by persons engaged in the same business
or a business similar to that conducted by the Employer or any Affiliate; and

 

(B)            The
Participant shall be allowed to disclose confidential information to his attorney solely for the purpose of ascertaining whether
such information is confidential within the intent of the Plan, but only so long as the Participant both discloses to his attorney
the provisions of this paragraph and agrees not to waive the attorney-client privilege with respect thereto.

 

6.5            No
Restoration of Forfeited Benefits. There shall be no restoration of forfeited benefits.

 

ARTICLE VII

Beneficiary Designation

 

7.1            Beneficiary
Designation.

 

7.1(a)       Each
Participant shall be entitled to designate a Beneficiary to receive any unpaid Deferral Benefit hereunder by filing a designation
in writing with the Administrator on the form provided for such purpose. Any Beneficiary designation shall be effective only if
signed and dated by the Participant and delivered to the Administrator prior to the time of the Participant’s death. Any
Beneficiary designation shall remain effective until changed or revoked hereunder.

 

7.1(b)      Any
Beneficiary designation may include multiple, contingent or successive Beneficiaries and may specify the proportionate distribution
to each Beneficiary. If multiple Beneficiaries are designated, absent any other provision by the Participant, those named or the
survivor of them shall share equally in any amounts payable hereunder.

 

7.1(c)      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.

 

7.1(d)      If
a Participant dies without having designated a Beneficiary, or if the Beneficiary so designated has predeceased the Participant
or cannot be located by the Administrator, then the Participant’s spouse or, if none, the executor or the administrator of
his estate shall be deemed to be his Beneficiary.

 

7.1(e)      If
a Beneficiary shall survive the Participant but die before the Participant’s remaining benefit under the Plan has been distributed,
then, absent any other provision by the Participant, the unpaid balance thereof shall be distributed to the such other beneficiary
named by the deceased Beneficiary to receive his interest or, if none, to the estate of the deceased Beneficiary.

 

    - 13 - 

     

    

 

ARTICLE VIII

Retirement Dates

 

8.1            Normal
Retirement Date. The Normal Retirement Date designated in Option 7(a) of the Adoption Agreement.

 

8.2            Delayed
Retirement Date. A Participant who continues in the active employment of the Employer beyond his Normal Retirement Date
shall continue to participate in the Plan, and his Delayed Retirement Date shall be the first day of the calendar month coinciding
with or next following the date of his Separation from Service.

 

8.3            Early
Retirement Date. If elected in Option 7(b) of the Adoption Agreement, a Participant who has satisfied the age and
service requirements selected in Option 7(b) of the Adoption Agreement may retire from the employment of the Employer prior
to his Normal Retirement Date and his Early Retirement Date shall be the first day of the calendar month coinciding with or next
following the date of such Separation from Service.

 

8.4            Disability
Retirement Date.

 

8.4(a)       If
elected in Option 7(c) of the Adoption Agreement, a Participant who, while an Eligible Employee, is totally and permanently
disabled, as hereinafter determined, and who has satisfied the age and service requirements selected in Option 7(c) of the
Adoption Agreement, may retire from the employment of the Employer prior to his Normal Retirement Date and his Disability Retirement
Date shall be the first day of the calendar month coinciding with or next following the date as of which he is determined to be
totally and permanently disabled.

 

8.4(b)      A
Participant shall be totally and permanently disabled if the Participant is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than twelve (12) months. The determination of total and permanent disability shall
be made by the Administrator, on the advice of one or more physicians appointed and approved by the Employer, and the Administrator
shall have the right to require further medical examinations from time to time to determine whether there has been any change in
the Participant’s condition. A Participant shall be deemed disabled if determined to be totally disabled by the Social Security
Administration.

 

8.5            Use
of Retirement Date Definitions. Retirement Date definitions, other than Normal Retirement Date, are set forth in the Plan
for the sole purpose of defining Participants entitled to share in Employer Contributions if elected in Option 5(a)(2)(B) or
5(a)(3)(B) of the Adoption Agreement.

 

ARTICLE IX

Time and Form of Payment

 

9.1            Time
of Payment.

 

9.1(a)       A
Participant’s Deferral Benefit, if any, shall become payable to the Participant, if then alive, on his Benefit Commencement
Date.

 

    - 14 - 

     

    

 

(i)            The
Benefit Commencement Date for the Employer Non-Elective Deferral Account shall be the Participant’s Separation from Service.

 

(ii)            If
Option 8(a)(1) of the Adoption Agreement is selected, the Benefit Commencement Date for all other Deferral Accounts (excluding
the Employer Non-Elective Deferral Account) shall be the first day of the calendar quarter next following the date selected in
Option 8(a)(1) of the Adoption Agreement.

 

(iii)            If
Option 8(a)(2) of the Adoption Agreement is selected, the Participant may select the Benefit Commencement Date for all other
Deferral Accounts (excluding the Employer Non-Elective Deferral Account) within the guidelines set forth in Option 8(a)(2) of
the Adoption Agreement. The Benefit Commencement Date for any subdivision of the Employer Matching Deferral Account related to
a Plan Year shall be the same as that provided for or elected under the Plan for the subdivision of a Participant’s Employee
Deferral Account related to the same Plan Year.

 

(iv)            In
the absence of any valid Benefit Commencement Date election, payment will be made on the Participant’s Separation from Service.

 

9.1(b)      In
the event of the Participant’s death before his Benefit Commencement Date, the Participant’s Deferral Benefit shall
become payable to the Beneficiary on the first day of the calendar quarter following the date of the Participant’s death
or as soon as practicable thereafter, but in no case later than December 31 of the first year following the year of the Participant’s
death.

 

9.1(c)       Notwithstanding
the foregoing provisions of this paragraph:

 

(i)            Payment
to a Participant shall be delayed as required by Section 409A in the case of a Participant who, with respect to the Employer,
is a “specified employee” of a corporation any stock of which is publicly traded on an established securities market
or otherwise as provided in Section 409A(2)(B)(i) of the Code. For this purpose, specified employees shall be identified
on the date and the identification shall be effective as provided in Option 4(g)(1) of the Adoption Agreement. The delayed
payment requirement will be applied as provide in Option 4(g)(2) of the Adoption Agreement.

 

(ii)            Payment
may be delayed for a reasonable period in the event the payment is not administratively practical due to events beyond the recipient’s
control such as where the recipient is not competent to receive the benefit payment, there is a dispute as to amount due or the
proper recipient of such benefit payment, additional time is needed to calculate the payment, or the payment would jeopardize the
solvency of the Employer.

 

(iii)            Payment
shall be delayed in the following circumstances:

 

(A)            Where
the Administrator reasonably anticipates that a delay in payment is necessary to comply with Federal securities laws or other applicable
laws; or

 

(B)            Where
the Administrator reasonably determines that a delay is permissible for other events or conditions under applicable published
guidance of the Internal Revenue Service for Section 409A; provided that any payment delayed by operation of this clause
(iii) will be made at the earliest date at which the Administrator reasonably anticipates that the payment will not be
limited or will cease to be so delayed.

 

    - 15 - 

     

    

 

9.2            Form of
Payment.

 

9.2(a)       Payment
of any Employer Non-Elective Deferral Account will be made in a single lump sum.

 

9.2(b)      If
Option 8(b)(1) of the Adoption Agreement is selected, a Participant shall be paid the Deferral Benefit (excluding the Employer
Non-Elective Deferral Account), if any, to which he is entitled, commencing at the applicable time provided in paragraph 9.1, in
the form selected in Option 8(b)(1) of the Adoption Agreement and, if applicable, over a period selected in Option 8(b)(1) of
the Adoption Agreement.

 

9.2(c)       If
Option 8(b)(2) of the Adoption Agreement is selected, a Participant shall be paid the Deferral Benefit (excluding the Employer
Non-Elective Deferral Account), if any, to which he is entitled, commencing at the applicable time provided in paragraph 9.1, in
the form selected by the Participant within the guidelines set forth in Option 8(b)(2) of the Adoption Agreement.

 

9.2(d)      If
Option 8(c)(1) of the Adoption Agreement is selected, in the event of the Participant’s death before his Benefit Commencement
Date, the Beneficiary shall be paid the Deferral Benefit (excluding the Employer Non-Elective Deferral Account), if any, to which
he is entitled, commencing at the applicable time provided in paragraph 9.1, in the form selected in Option 8(c)(1) of the
Adoption Agreement and, if applicable, over a period selected in Option 8(c)(1) of the Adoption Agreement.

 

9.2(e)       If
Option 8(c)(2) of the Adoption Agreement is selected, in the event of the Participant’s death before his Benefit Commencement
Date, the Beneficiary shall be paid the Deferral Benefit (excluding the Employer Non-Elective Deferral Account), if any, to which
he is entitled, commencing at the applicable time provided in paragraph 9.1, in the form selected by the Participant within the
guidelines set forth in Option 8(c)(2) of the Adoption Agreement.

 

9.2(f)       In
the absence of any valid form of payment election, payment will be made in a single lump sum.

 

9.3            Permissible
Changes to Benefit Commencement Date and/or Form of Payment. Any election of a Benefit Commencement Date applicable
to a subdivision of a Deferral Account or a form of payment applicable to a subdivision of a Deferral Account may be changed only
if the election to change: (a) is not effective until at least twelve (12) months after the date filed, (b) delays the
Benefit Commencement Date for at least five (5) years, and (c) is filed at least twelve (12) months before benefits would
otherwise commence. Notwithstanding the above, the requirement to delay the Benefit Commencement Date for at least five (5) years
in (b) above shall not apply in the case of any election to change a payment on account of Disability (as defined in paragraph
8.4(b)), death or Unforeseeable Emergency (as defined in paragraph 10.1). For purposes of changes to the time or form of payment,
in the event a Participant elects to receive payment of his benefit in periodic installments, the installment payment as a whole
will be treated as a single payment.

 

9.4            Lump-Sum
Payments and Periodic Installments.

 

9.4(a)      If
a lump-sum payment is permitted under the Plan, the amount of a lump-sum payment to or with respect to a Participant shall be determined
by reference to the Deferral Benefit as of the last Valuation Date (or other time of valuation hereunder) immediately preceding
the date of payment.

 

    - 16 - 

     

    

 

9.4(b)      If
periodic installment payments are permitted under the Plan, the amount of each periodic installment payment shall be the lesser
of:

 

(i)            The
quotient obtained by dividing (A) the amount of such Participant’s vested Deferral Account held in the applicable subdivision,
determined, in the case of installment payments made on or after January 1, 2020, as though a lump-sum payment were being
made as of the last Valuation Date of the prior Plan Year by (B) the number of installment payments then remaining to be made;
or

 

(ii)            The
amount of such vested Deferral Benefit at such time.

 

Notwithstanding
the forgoing, for installment payments made on or after September 1, 2019 and before January 1, 2020, the installment
payment shall be equal to the August 1, 2019 payment amount.

 

9.4(c)       In
the event that a Participant who has begun to receive periodic installment payments again becomes an Employee of the Employer,
his periodic installments shall continue regardless of his return to employment with the Employer.

 

9.4(d)      In
the event that a Participant who has begun to receive periodic installment payments dies, the amounts of any periodic installments
remaining unpaid shall be paid to his Beneficiary over the remaining term certain for such installments.

 

9.5            Permissible
Cash Out by Lump-Sum Payment. Notwithstanding the time and form of benefit payment provisions of paragraphs 9.1 and 9.2,
a Participant’s vested Deferral Benefit may be cashed out in a lump-sum payment in an amount equal to the vested balance
in the Participant’s Deferral Accounts if (a) the payment will constitute a payout of the Participant’s entire
interest in this Plan and all similar arrangements that are treated as a single plan under Treasury Regulation Section 1.409A-1(c)(2);
(b) the payment is made on or before the later of December 31 of the calendar year in which the Participant’s
Separation from Service occurs, or the fifteenth (15th) day of the third (3rd) month following the Participant’s
Separation from Service; and (iii) the payment of the entire vested Deferral Benefit is not over the limit set forth in Section 402(g) of
the Code applicable to the Plan Year in which the cash out occurs.

 

9.6            Benefit
Determination and Payment Procedure.

 

9.6(a)       The
Administrator shall make all determinations concerning eligibility for benefits under the Plan, the time or terms of payment, and
the form or manner 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 Employer and, where payments are to be made from a Rabbi Trust, the Trustee thereof
of each such determination that benefit payments are due and provide to the Employer and, where applicable, such Trustee all other
information necessary to allow the Employer or such Trustee, as the case may be, to carry out said determination, whereupon the
Employer or such Trustee, as the case may be, shall pay such benefits in accordance with the Administrator’s determination.

 

9.6(b)      Benefit
payments shall normally be made from the Fund to such payee(s), in such amounts, at such times and in such manner as the Administrator
shall from time to time direct; provided, however, that the Employer may advance any payment due subject to a right
of reimbursement from the Fund.

 

9.6(c)       Notwithstanding
any other provision of the Plan, the Administrator shall delay any benefit payment (including any withdrawal pursuant to ARTICLE X)
if in the Administrator’s judgment the payment would not be deductible under Section 162(m) of the Code and the
delay will permit the deductibility of the payment, in which case the delayed payment shall be made as soon as it is possible to
do so within the deduction limits of Section 162(m) of the Code but in no event later then the end of the Employer’s
fiscal year in which the Employer or the Administrator reasonably anticipates, or should reasonable anticipate, that the payment
would be deductible or, any earlier time required under Section 409A.

 

    - 17 - 

     

    

 

9.6(d)      The
Employer or Trustee may deduct from payments under the Plan such reasonable amount as it shall deem necessary, based upon information
provided by the Administrator upon which the payor may rely, to pay any federal, state, or local income, employment, or other taxes
attributable to the payment or required to be withheld from the payment.

 

9.7            Payments
to Minors and Incompetents. 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.

 

9.8            Distribution
of Benefit When Distributee Cannot Be Located. If any payment made under the Plan is returned unclaimed, the payor shall
notify the Administrator and shall dispose of the payment as the Administrator shall direct. The Administrator shall make all
reasonable attempts to determine the whereabouts of a Participant or Beneficiary entitled to benefits under the Plan, including
the mailing by certified mail of a notice to the last known address shown on the Employer’s or the Administrator’s
records. If the Administrator is unable to locate such a Participant or Beneficiary entitled to benefits hereunder, the Employer
will issue a payment in the appropriate amount and in the name of the Participant or Beneficiary, and the Employer will retain
such benefit payment on behalf of the Participant or Beneficiary, without any adjustment for interest or deemed earnings, subject
to any applicable statute of escheats not preempted by the Act.

 

ARTICLE X

Withdrawals

 

10.1            Hardship
Withdrawals. If permitted in Option 9(a) of the Adoption Agreement, in the event of any Unforeseeable Emergency and
upon written request of the Participant (or, if subsequent to his death, his Beneficiary), the Administrator in its sole discretion
may direct the payment in one lump sum to the Participant or his Beneficiary of all or any portion of the Participant’s vested
Deferral Benefit which the Administrator determines is necessary to alleviate the financial need related to the Unforeseeable Emergency.
For purposes hereof:

 

10.1(a)    An
 “Unforeseeable Emergency” means an unforeseeable emergency as defined in Section 409A and generally means
a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s
spouse, the Participant’s Beneficiary, or the Participant’s dependent (as defined in Section 152 of the Code,
without regard to Section 152(b)(1), (b)(2), and (d)(1)(B)) thereof); loss of the Participant’s or the Participant’s
Beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered
by insurance, for example, not as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant or Beneficiary.

 

10.1(b)    Examples
of what may be considered an Unforeseeable Emergency include the imminent foreclosure of or eviction from the Participant’s
or Participant’s Beneficiary’s primary residence, the need to pay for medical expenses, including non-refundable deductibles,
as well as for the costs of prescription drug medication, the need to pay for the funeral expenses of the Participant’s spouse,
Beneficiary, or the Participant’s dependent (as defined in Section 152 of the Code, without regard to Section 152(b)(1),
(b)(2), and (d)(1)(B)) thereof). Except as otherwise provided this subparagraph 10.1(b), the purchase of a home and the payment
of college tuition are not Unforeseeable Emergencies.

 

    - 18 - 

     

    

 

10.1(c)    The
existence of an Unforeseeable Emergency shall be determined by the Administrator on the basis of the facts and circumstances of
each case.

 

10.1(d)    Distributions
because of an Unforeseeable Emergency must be limited to the amount reasonably necessary to satisfy the need (which may include
amounts necessary to pay any Federal, state, local, or foreign income taxes or penalties reasonably anticipated to result from
the distribution), taking in to account the potential that the need is or may be relieved through reimbursement or compensation
by insurance or otherwise, by liquidation of the Participant’s, to the extent the liquidation of such assets would not cause
an Unforeseeable Emergency, or by cessation of deferrals under the Plan (if the Plan provides for cancellation of a Deferred Compensation
Election upon a payment due to an Unforeseeable Emergency). The determination of amounts reasonably necessary to satisfy the need
is not required to take into account any additional compensation that, due to the Unforeseeable Emergency, is available under another
nonqualified deferred compensation plan but has not actually been paid, or that is available, due to the Unforeseeable Emergency,
under another plan that would provide for deferred compensation except due to the application of the effective date provisions
of Section 409A.

 

10.2            Distributions
in the Event of Income Inclusion. If any portion of a Deferral Account under the Plan is required to be included in income
by the Participant or Beneficiary prior to receipt due to a failure of the Plan to comply with the requirements of Section 409A,
the Administrator may determine that such Participant shall receive a distribution from the Plan in an amount equal to the lesser
of (a) the portion of the Deferral Account required to be included in income as a result of such failure or (b) the unpaid
vested Deferral Account.

 

10.3            No
Other Withdrawals Permitted. No withdrawals or other distributions shall be permitted except as provided in ARTICLE IX
or this ARTICLE X.

 

ARTICLE XI

Claims Procedure

 

11.1            Initial
Claim. A Participant or Beneficiary (the “claimant”) shall have the right to request any benefit under
the Plan by filing a written claim for any such benefit with the Administrator on a form provided or approved by the Administrator
for such purpose. The Administrator (or a claims administrator appointed by the Administrator) shall give such claim due consideration
and shall either approve or deny it in whole or in part. The following procedure shall apply:

 

11.1(a)     The
Administrator (or a claims administrator appointed by the Administrator) may schedule and hold a hearing.

 

11.1(b)    If
the claim is not a Disability Benefit Claim, within ninety (90) days following receipt of such claim by the Administrator, notice
of any approval or denial thereof, in whole or in part, shall be delivered to the claimant or his duly authorized representative
or such notice of denial shall be sent by mail (postage prepaid) to the claimant or his duly authorized representative at the address
shown on the claim form or such individual’s last known address. The aforesaid ninety (90) day response period may be extended
to one hundred eighty (180) days after receipt of the claimant’s claim if special circumstances exist and if written notice
of the extension to one hundred eighty (180) days indicating the special circumstances involved and the date by which a decision
is expected to be made is furnished to the claimant or his duly authorized representative within ninety (90) days after receipt
of the claimant’s claim.

 

    - 19 - 

     

    

 

11.1(c)     If
the claim is a Disability Benefit Claim, within forty-five (45) days following receipt of such claim by the Administrator, notice
of any approval or denial thereof, in whole or in part, shall be delivered to the claimant or his duly authorized representative
or such notice of denial shall be sent by mail to the claimant or his duly authorized representative at the address shown on the
claim form or such individual’s last known address. The aforesaid forty-five (45) day response period may be extended to
seventy-five (75) days after receipt of the claimant’s claim if it is determined that such an extension is necessary due
to matters beyond the control of the Plan and if written notice of the extension to seventy-five (75) days indicating the circumstances
involved and the date by which a decision is expected to be made is furnished to the claimant or his duly authorized representative
within forty-five (45) days after receipt of the claimant’s claim. Thereafter, the aforesaid seventy-five (75) day response
period may be extended to one hundred five (105) days after receipt of the claimant’s claim if it is determined that such
an extension is necessary due to matters beyond the control of the Plan and if written notice of the extension to one hundred five
(105) days indicating the circumstances involved and the date by which a decision is expected to be made is furnished to the claimant
or his duly authorized representative within seventy-five (75) days after receipt of the claimant’s claim. In the event of
any such extension, the notice of extension shall specifically explain, to the extent applicable, the standards on which entitlement
to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve
those issues, and the claimant shall be afforded at least forty-five (45) days within which to provide any specified information
which is to be provided by the claimant.

 

11.1(d)    Any
notice of denial shall be written in a manner calculated to be understood by the claimant and shall:

 

(i)            Set
forth a specific reason or reasons for the denial,

 

(ii)            Make
reference to the specific provisions of the Plan document or other relevant documents, records or information on which the denial
is based,

 

(iii)            Describe
any additional material or information necessary for the claimant to perfect the claim and explain why such material or information
is necessary,

 

(iv)            Explain
the Plan’s claim review procedures, including the time limits applicable to such procedures (which are generally contained
in paragraph 11.2), and provide a statement of the claimant’s right to bring a civil action in state or federal court under
Section 502(a) of the Act following an adverse determination on review of the claim denial,

 

(v)            In
the case of a Disability Benefit Claim filed before January 1, 2018 (and thereafter if the final regulation published in 81
Fed. Reg. 92316 (Dec. 19, 2016) is not yet effective for claims filed as of such date):

 

(A)            If
an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either provide
the specific rule, guideline, protocol or other similar criterion, or provide a statement that such a rule, guideline, protocol
or other similar criterion was relied upon in making the adverse determination and that a copy of such rule, guideline, protocol
or other criterion will be provided free of charge to the claimant or his duly authorized representative upon request in writing,
and

 

(B)            If
the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either
provide an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant’s
medical circumstances, or provide a statement that such explanation will be provided free of charge upon request in writing; and

 

    - 20 - 

     

    

 

 

(vi)         In
the case of a Disability Benefit Claim filed on or after January 1, 2018 (to the extent the final regulation published in
81 Fed. Reg. 92316 (Dec. 19, 2016) is effective for claims filed on and after such date):

 

(A)            Provide
a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (1) the views,
presented by the claimant to the Plan, of health care professionals treating the claimant and vocational professionals who evaluated
the claimant, (2) the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection
with the initial claim, without regard to whether the advice was relied upon in making the benefit determination, and (3) a
disability determination regarding claimant, presented by claimant to the Plan, made by the Social Security Administration,

 

(B)            If
the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either
provide an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant’s
medical circumstances, or provide a statement that such explanation will be provided free of charge upon request in writing,

 

(C)            Either
provide the specific internal rules, guidelines, protocols, standards or other similar criteria relied upon in making the adverse
determination, or, alternatively, provide a statement that such rules, guidelines, protocols, standards or other similar criteria
do not exist,

 

(D)            Provide
a statement that reasonable access to and copies of, all documents, records and other information relevant to the claimant’s
claim will be provided free of charge to the claimant or his duly authorized representative upon request in writing, and

 

(E)            Be
provided in a culturally and linguistically appropriate manner as described in applicable regulations.

 

11.2        Appeals.
A Participant or Beneficiary whose claim filed pursuant to paragraph 11.1 has been denied, in whole or in part, may, within sixty
(60) days (or one hundred eighty (180) days in the case of a Disability Benefit Claim) following receipt of notice of such denial,
make written application to the Administrator for a review of such claim, which application shall be filed with the Administrator.
For purposes of such review, the following procedure shall apply:

 

11.2(a)     The
Administrator (or a claims administrator appointed by the Administrator) may schedule and hold a hearing.

 

11.2(b)    The
claimant or his duly authorized representative shall be provided the opportunity to submit written comments, documents, records,
and other information relating to the claim for benefits.

 

11.2(c)     The
claimant or his duly authorized representative shall be provided, upon request in writing and free of charge, reasonable access
to, and copies of, all documents, records, and other information relevant to such claim and may submit to the Administrator written
comments, documents, records, and other information relating to such claim.

 

    - 21 -

     

    

 

11.2(d)    The
Administrator (or a claims administrator appointed by the Administrator) shall make a full and fair review of any denial of a claim
for benefits, which shall include:

 

(i)           Taking
into account all comments, documents, records, and other information submitted by the claimant or his duly authorized representative
relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination,

 

(ii)           In
the case of a Disability Benefit Claim filed before January 1, 2018 (and thereafter if the final regulation published in 81
Fed. Reg. 92316 (Dec. 19, 2016) is not yet effective for claims filed as of such date):

 

(A)            Providing
for a review that does not afford deference to the initial claim denial and that is conducted by an appropriate named fiduciary
of the Plan who is neither the individual who made the claim denial that is the subject of the review, nor the subordinate of such
individual,

 

(B)            In
making its decision on a review of any claim denial that is based in whole or in part on a medical judgment, including determinations
with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary
or appropriate, consulting with a health care professional who has appropriate training and experience in the field of medicine
involved in the medical judgment,

 

(C)            Providing
to the claimant or his authorized representative, either upon request in writing and free of charge or automatically, the identification
of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the claim denial that is the
subject of the review, without regard to whether the advice was relied upon in making the benefit determination, and

 

(D)            Ensuring
that the health care professional engaged for purposes of a consultation under clause (iv)(B)(II) of this subparagraph shall
be an individual who is neither an individual who was consulted in connection with the claim denial that is the subject of the
review, nor the subordinate of any such individual,

 

(iii)          In
the case of a Disability Benefit Claim filed on or after January 1, 2018 (to the extent the final regulation published in
81 Fed. Reg. 92316 (Dec. 19, 2016) is effective for claims filed on and after such date):

 

(A)            Provide
that before the Plan can issue an adverse benefit determination on review, the Administrator shall provide the claimant, free of
charge, with any new or additional evidence considered, relied upon, or generated by the Plan, insurer, or other person making
the benefit determination (or at the direction of the Plan, insurer or such other person) in connection with the claim; such evidence
must be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination
on review is required to be provided under subparagraph 11.2(f) to give the claimant a reasonable opportunity to respond prior
to that date; and

 

(B)            Provide
that, before the Plan can issue an adverse benefit determination on review based on a new or additional rationale, the Administrator
shall provide the claimant, free of charge, with the rationale; the rationale must be provided as soon as possible and sufficiently
in advance of the date on which the notice of adverse benefit determination on review is required to be provided under subparagraph
11.2(f) to give the claimant a reasonable opportunity to respond prior to that date.

 

    - 22 -

     

    

 

11.2(e)     If
the claim is not a Disability Benefit Claim, the decision on review shall be issued promptly, but no later than sixty (60) days
after receipt by the Administrator of the claimant’s request for review, or one hundred twenty (120) days after such receipt
if a hearing is to be held or if other special circumstances exist and if written notice of the extension to one hundred twenty
(120) days indicating the special circumstances involved and the date by which a decision is expected to be made on review is furnished
to the claimant or his duly authorized representative within sixty (60) days after the receipt of the claimant’s request
for a review.

 

11.2(f)      If
the claim is a Disability Benefit Claim, the decision on review shall be issued promptly, but no later than forty-five (45) days
after receipt by the Administrator of the claimant’s request for review, or ninety (90) days after such receipt if a hearing
is to be held or if other special circumstances exist and if written notice of the extension to ninety (90) days indicating the
special circumstances involved and the date by which a decision is expected to be made on review is furnished to the claimant or
his duly authorized representative within forty-five (45) days after the receipt of the claimant’s request for a review.

 

11.2(g)    The
decision on review shall be in writing, shall be delivered or mailed by the Administrator to the claimant or his duly authorized
representative in the manner prescribed in subparagraph 11.1 for notices of approval or denial of claims, shall be written in a
manner calculated to be understood by the claimant and shall in the case of an adverse determination:

 

(i)            Include
the specific reason or reasons for the adverse determination,

 

(ii)           Make
reference to the specific provisions of the Plan on which the adverse determination is based,

 

(iii)         Include
a statement that the claimant is entitled to receive, upon request in writing and free of charge, reasonable access to, and copies
of, all documents, records, and other information relevant to the claimant’s claim for benefits,

 

(iv)          Include
a statement of the claimant’s right to bring a civil action in state or federal court under Section 502(a) of the
Act following the adverse determination on review,

 

(v)           In
the case of a Disability Benefit Claim filed before January 1, 2018 (and thereafter if the final regulation published in 81
Fed. Reg. 92316 (Dec. 19, 2016) is not yet effective for claims filed as of such date):

 

(A)            If
an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either provide
the specific rule, guideline, protocol or other similar criterion, or provide a statement that such a rule, guideline, protocol
or other similar criterion was relied upon in making the adverse determination and that a copy of such rule, guideline, protocol
or other criterion will be provided free of charge to the claimant or his duly authorized representative upon request in writing,

 

(B)            If
the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either
provide an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant’s
medical circumstances, or provide a statement that such explanation will be provided free of charge upon request in writing, and

 

    - 23 -

     

    

 

(vi)          In
the case of a Disability Benefit Claim filed on or after January 1, 2018 (to the extent the final regulation published in
81 Fed. Reg. 92316 (Dec. 19, 2016) is effective for claims filed on and after such date):

 

(A)            Provide
a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (1) the views,
presented by the claimant to the Plan, of health care professionals treating the claimant and vocational professionals who evaluated
the claimant, (2) the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection
with the adverse determination review, without regard to whether the advice was relied upon in making the benefit determination,
and (3) a disability determination regarding claimant, presented by claimant to the Plan, made by the Social Security Administration,

 

(B)            If
the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either
provide an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant’s
medical circumstances, or provide a statement that such explanation will be provided free of charge upon request in writing,

 

(C)            Either
provide the specific internal rules, guidelines, protocols, standards or other similar criteria relied upon in making the adverse
determination, or, alternatively, provide a statement that such rules, guidelines, protocols, standards or other similar criteria
do not exist, and

 

(D)            Be
provided in a culturally and linguistically appropriate manner as described in applicable regulations.

 

The Administrator’s decision made
in good faith shall be final.

 

11.3        Time
Calculation. The period of time within which a benefit determination initially or on review is required to be made shall
begin at the time the claim or request for review is filed in accordance with the procedures of the Plan, without regard to whether
all the information necessary to make a benefit determination accompanies the filing. In the event that a period of time is extended
as permitted pursuant to this paragraph due to the failure of a claimant or his duly authorized representative to submit information
necessary to decide a claim or review, the period for making the benefit determination shall be tolled from the date on which the
notification of the extension is sent to the claimant or his duly authorized representative until the date on which the claimant
or his duly authorized representative responds to the request for additional information.

 

11.4        Definitions.
For purposes of the Plan’s claims procedure:

 

11.4(a)     A
 “Disability Benefit Claim” is a claim for a Plan benefit whose availability is conditioned on a determination
of disability and where the Plan’s claim’s adjudicator must make a determination of disability in order to decide the
claim. A claim is not a Disability Benefit Claim where the determination of disability is made by a party (other than the Plan’s
claim’s adjudicator or other fiduciary) outside the Plan for purposes other than making a benefit determination under the
Plan (such as a determination of disability by the Social Security Administration or under the Employer’s long term disability
plan).

 

11.4(b)     A
document, record, or other information shall be considered “relevant” to a claimant’s claim if such document,
record, or other information (i) was relied upon in making the benefit determination, (ii) was submitted, considered,
or generated in the course of making the benefit determination, without regard to whether such document, record, or other information
was relied upon in making the benefit determination, (iii) demonstrates compliance with the administrative processes and safeguards
required in making the benefit determination, or (iv) in the case of a Disability Benefit Claim, constitutes a statement of
policy or guidance with respect to the Plan concerning the denied treatment option or benefit for the claimant’s diagnosis,
without regard to whether such advice or statement was relied upon in making the benefit determination.

 

    - 24 -

     

    

 

11.5        Authorized
Representatives. The Administrator may establish reasonable procedures for determining whether a person has been authorized
to act on behalf of a claimant.

 

ARTICLE XII

Funding

 

12.1        Funding.

 

12.1(a)     The
undertaking to pay benefits hereunder shall be an unfunded obligation payable solely from the general assets of the Employer and
subject to the claims of the Employer’s creditors. The Deferral Accounts shall be maintained as book reserve accounts solely
for accounting purposes.

 

12.1(b)     Except
as provided in the Rabbi Trust established as permitted in paragraph 12.2, nothing contained in the Plan and no action taken pursuant
to the provisions of the Plan shall create or be construed to create a trust of any kind or a fiduciary relationship between the
Employer and the Participant or his Beneficiary or any other person. To the extent that any person acquires a right to receive
payments from the Employer under the Plan, such rights shall be no greater than the right of any unsecured general creditor of
the Employer.

 

12.1(c)     Where
more than one Employer participates in the Plan, the funding and payment provisions hereof shall apply separately to each such
Employer.

 

12.1(d)     The
Plan Sponsor may in its discretion make the payment of any or all benefits under the Plan in lieu of payment by one or more Employer.
Where the Plan Sponsor makes payments on behalf of other Employers, the Plan Sponsor may require contributions by participating
Employers to the Plan Sponsor at such times (whether before, at or after the time of payment), in such amounts and or such basis
as it may from time to time determine in order to defray the cost of benefits and administration of the Plan.

 

12.2         Use
of Rabbi Trust Permitted. Notwithstanding any provision herein to the contrary, the Plan Sponsor may in its sole discretion
elect to establish and fund a Rabbi Trust for the purpose of providing benefits under the Plan.

 

ARTICLE XIII

Plan Administrator

 

13.1        Appointment
of Plan Administrator. The Plan Sponsor may appoint one or more persons to serve as the Plan Administrator (the “Administrator”)
for the purpose of carrying out the duties specifically imposed on the Administrator by the Plan and the Code. 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 Plan Sponsor, and may,
by thirty (30) days prior written notice to the Plan Sponsor, terminate such appointment. The Plan Sponsor shall inform the Trustee
of any such appointment or termination, and the Trustee may assume that any person appointed continues in office until notified
of any change.

 

13.2        Plan
Sponsor as Plan Administrator. In the event that no Administrator is appointed or in office pursuant to paragraph 13.1,
the Plan Sponsor shall be the Administrator.

 

    - 25 -

     

    

 

13.3        Procedure
if a Committee. If the Administrator is a committee, it shall appoint from its members a Chair and a Secretary. The Secretary
shall keep records as may be necessary of the acts and resolutions of such committee and be prepared to furnish reports thereof
to the Plan Sponsor and the Trustee. Except as otherwise provided, all instruments executed on behalf of such committee may be
executed by its Chair or Secretary, and the Trustee may assume that such committee, its Chair or Secretary are the persons who
were last designated as such to them in writing by the Plan Sponsor or its Chair or Secretary.

 

13.4        Action
by Majority Vote if a Committee. If the Administrator is a committee, its action in all matters, questions and decisions
shall be determined by a majority vote of its members qualified to act thereon. They may meet informally or take any action without
the necessity of meeting as a group.

 

13.5        Appointment
of Successors. Upon the death, resignation or removal of a person serving as, or on a committee which is, the Administrator,
the Employer may, but need not, appoint a successor.

 

13.6        Duties
and Responsibilities of Plan Administrator. The Administrator shall have the following duties and responsibilities under
the Plan:

 

13.6(a)     The
Administrator shall be responsible for the fulfillment of all relevant reporting and disclosure requirements set forth in the Plan,
the Code, and the Act, the distribution thereof to Participants and their Beneficiaries and the filing thereof with the appropriate
governmental officials and agencies.

 

13.6(b)    The
Administrator shall maintain and retain necessary records respecting its administration of the Plan and matters upon which disclosure
is required under the Plan, the Code, and the Act.

 

13.6(c)     The
Administrator shall make any elections for the Plan required to be made by it under the Plan, the Code, and the Act.

 

13.7        Power
and Authority.

 

13.7(a)     The
Administrator is hereby vested with all the power and authority necessary in order to carry out its duties and responsibilities
in connection with the administration of the Plan imposed hereunder. For such purpose, the Administrator shall have the power to
adopt rules and regulations consistent with the terms of the Plan.

 

13.7(b)    The
Administrator shall exercise its power and authority in its discretion. The Administrator has the discretionary authority to construe
the Plan, correct defects, supply omissions, or reconcile inconsistencies to the extent necessary to effectuate the Plan and such
action shall be conclusive. It is intended that a court review of the Administrator’s exercise of its power and authority
with respect to matters relating to claims for benefits by, and to eligibility for participation in and benefits of, Participants
and Beneficiaries shall be made only on an arbitrary and capricious standard. Benefits under the Plan will be paid only if the
Administrator decides in its discretion that the applicant is entitled to them.

 

13.7(c)    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.

 

13.8        Availability
of Records. The Employer and the Trustee shall, at the request of the Administrator, make available necessary records or
other information they possess which may be required by the Administrator in order to carry out its duties hereunder.

 

13.9        No
Action with Respect to Own Benefit. No Administrator who is a Participant shall take any part as the Administrator in any
discretionary action in connection with his participation as an individual. Such action shall be taken by the remaining Administrator,
if any, or otherwise by the Plan Sponsor.

 

    - 26 -

     

    

 

ARTICLE XIV

Amendment and Termination of Plan

 

14.1        Amendment
or Termination of the Plan.

 

14.1(a)     The
Plan may be terminated at any time by the Board, subject to the restrictions imposed by and consistent with applicable provisions
of Section 409A. The Plan may be amended in whole or in part from time to time by the Board effective as of any date specified,
subject to the restrictions imposed by and consistent with applicable provisions of Section 409A. No amendment or termination
shall operate to decrease a Participant’s vested Deferral Benefit as of the earlier of the date on which the amendment or
termination is approved by the Board or the date on which an instrument of amendment or termination is signed on behalf of the
Plan Sponsor. No amendment shall increase the Trustee’s duties or obligations or decrease its compensation unless contained
in an amendment of, or document expressly pertaining to, the Rabbi Trust which includes the Trustee’s written consent or
for which the Trustee’s written consent is separately obtained. Any such termination of or amendment to the Plan may provide
for the acceleration of payment of benefits under the Plan to one or more Participants or Beneficiaries. Any such termination of
or amendment to the Plan shall be in writing and shall be adopted pursuant to action by the Board (including pursuant to any standing
authorization for any officer, director or committee to adopt amendments) in accordance with its applicable procedures, including
where applicable by majority vote or consent in writing.

 

14.1(b)     In
addition, and as an alternative, to amendment of the Plan by action of the Board, but subject to the limitations on amendment contained
in subparagraph 14.1(a), the Administrator shall be and is hereby authorized to adopt on behalf of the Board and to execute any
technical amendment or amendments to the Plan which in the opinion of counsel for the Plan Sponsor are required by law and are
deemed advisable by the Administrator and to so adopt and execute any other discretionary amendment or amendments to the Plan which
are deemed advisable by the Administrator so long as any such amendments do not, in view of the Administrator, materially affect
the eligibility, vesting or benefit accrual or allocation provisions of the Plan.

 

14.1(c)     Termination
of the Plan shall mean termination of active participation by Participants, but shall not mean immediate payment of all vested
Deferral Benefits unless the Plan Sponsor so directs, subject to the restrictions imposed by and consistent with applicable provisions
of Section 409A. On termination of the Plan, the Board of the Plan Sponsor may provide for the acceleration of payment of
the vested Deferral Benefits of all affected Participants on such basis as it may direct.

 

14.2        Effect
of Employer Merger, Consolidation, or Liquidation. Notwithstanding the foregoing provisions of this ARTICLE XIV, the
merger or liquidation of any Employer into any other Employer or the consolidation of two (2) or more of the Employers shall
not cause the Plan to terminate with respect to the merging, liquidating or consolidating Employers, provided that the Plan has
been adopted or is continued by and has not terminated with respect to the surviving or continuing Employer.

 

    - 27 -

     

    

 

ARTICLE XV

Participation by Additional Employers

 

15.1        Adoption
by Additional Employers. Any Affiliate of the Plan Sponsor may adopt the Plan with the consent of the Board of the Plan
Sponsor and approval by its Board.

 

15.2        Termination
Events with Respect to Employers Other Than the Plan Sponsor.

 

15.2(a)    The
Plan shall terminate with respect to any Employer other than the Plan Sponsor, and such Employer shall automatically cease to be
a participating Employer in the Plan, upon the happening of any of the following events, subject to the restrictions imposed by
and consistent with applicable provisions of Section 409A:

 

(i)     The
Employer ceasing to be an Affiliate; or

 

(ii)    Action
by the Board or Chief Executive Officer of the Plan Sponsor terminating an Employer’s participation in the Plan and specifying
the date of such termination. Notice of such termination shall be delivered to the Administrator and the former participating Employer.

 

15.2(b)    Termination
of the Plan with respect to any Employer shall mean termination of active participation in the Plan of the Participants employed
by such Employer, but shall not mean immediate payment of all vested Deferral Benefits with respect to the Employees of such Employer
unless the Plan Sponsor so directs consistent with applicable provisions of Section 409A. On termination of the Plan with
respect to any Employer, the Administrator may provide for the acceleration of payment of the vested Deferral Benefits of all affected
Participants and Beneficiaries of that former participating Employer on such basis as it may direct.

 

ARTICLE XVI

Miscellaneous

 

16.1        Nonassignability.
The interests of each Participant or Beneficiary under the Plan are not subject to claims of the Participant’s or Beneficiary’s
creditors; and neither the Participant, nor his Beneficiary, shall have any right to sell, 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 nonassignable and nontransferable and any attempt to assign or transfer any benefit hereunder shall be void ab initio.

 

16.2        Right
to Require Information and Reliance Thereon. The Employer and Administrator shall have the right to require any Participant,
Beneficiary or other person receiving benefit payments to provide it with such information, in writing, and in such form as it
may deem necessary to the administration of the Plan and may rely thereon in carrying out its duties hereunder. Any payment to
or on behalf of a Participant or Beneficiary in accordance with the provisions of the Plan in good faith reliance upon any such
written information provided by a Participant or any other person to whom such payment is made shall be in full satisfaction of
all claims by such Participant and his Beneficiary; and any payment to or on behalf of a Beneficiary in accordance with the provision
so the Plan in good faith reliance upon any such written information provided by such Beneficiary or any other person to whom such
payment is made shall be in full satisfaction of all claims by such Beneficiary.

 

16.3        Notices
and Elections.

 

16.3(a)      Except
as provided in subparagraph 16.3(b), all notices required to be given in writing and all elections, consents, applications and
the like 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, election, consent or application by a Participant or Beneficiary,
unless executed by the Participant or Beneficiary giving such notice or making such election, consent or application.

 

16.3(b)     Subject
to limitations under applicable provisions of the Code or the Act, the Administrator is authorized in its discretion to accept
other means for receipt of effective notices, elections, consents, applications and/or other forms or communications by Participants
and/or Beneficiaries, including but not limited to electronic transmissions through interactive on-line transmissions, e-mail,
voice mail, recorded messages on electronic telephone systems, and other permissible methods, on such basis and for such purposes
as it determines from time to time.

 

    - 28 -

     

    

 

16.4        Delegation
of Authority. Whenever the Plan Sponsor or any other Employer is permitted or required to perform any act, such act may
be performed by its President or Chief Executive Officer or other person duly authorized by its President or Chief Executive Officer
or the Board of the Employer.

 

16.5        Service
of Process. The Administrator shall be the agent for service of process on the Plan.

 

16.6        Governing
Law. The Plan shall be construed, enforced, and administered in accordance with the laws of the Commonwealth of Virginia,
and any federal law which preempts the same.

 

16.7        Binding
Effect. The Plan shall be binding upon and inure to the benefit of the Employer, its successors and assigns, and the Participant
and his Beneficiary (and their heirs, executors, administrators and legal representatives).

 

16.8        Severability.
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.

 

16.9        No
Effect on Employment Agreement. The Plan shall not be considered or construed to modify, amend, or supersede any employment
or other agreement between the Employer and the Participant heretofore or hereafter entered into unless so specifically provided.

 

16.10      Gender
and Number. 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.

 

16.11      Titles
and Captions. 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.

 

16.12      Construction.
The Plan and Fund are intended to be construed as a “plan which is unfunded and is maintained by the employer primarily for
the purpose of providing deferred compensation for a select group of management or highly compensated employees,” within
the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of the Act, and shall be interpreted and administered accordingly.

 

16.13      Nonqualified
Deferred Compensation Plan Omnibus Provision.

  

16.13(a)   It
is intended that any compensation, benefits or other remuneration which is provided pursuant to or in connection with the Plan
which is considered to be nonqualified deferred compensation subject to Section 409A shall be provided and paid in a manner,
and at such time and in such form, as complies with the applicable requirements of Section 409A to avoid a plan failure described
in Section 409A(a)(1) of the Code, including without limitation, deferring payment until the occurrence of a specified
payment event described in Section 409A(a)(2) of the Code and to avoid the unfavorable tax consequences provided therein
for non-compliance, and that, notwithstanding any other provision thereof or document pertaining to any such compensation, benefit
or other remuneration subject to the provisions of Section 409A, each provision of any plan, program or arrangement (including
without limitation the Plan) relating to the provision of such compensation, benefit or other remuneration to or with respect to
the Eligible Employee, shall be so construed and interpreted.

 

    - 29 -

     

    

 

16.13(b)   It
is specifically intended that all elections, consents and modifications thereto under the Plan will comply with the requirements
of Section 409A (including any transition or grandfather rules thereunder). The Administrator is authorized to adopt
rules or regulations deemed necessary or appropriate in connection therewith to anticipate and/or comply the requirements
of Section 409A (including any transition or grandfather rules thereunder).

 

16.13(c)   It
is also intended that if any compensation, benefits or other remuneration which is provided pursuant to or in connection with the
Plan is considered to be nonqualified deferred compensation subject to Section 409A but for being earned and vested as of
December 31, 2004, then no material modification of the Plan after October 3, 2004 shall apply to such Plan benefits
which are earned and vested as of December 31, 2004 unless such modification expressly so provides.

 

16.14(d)   Notwithstanding
the foregoing, the Participant, the Beneficiary, and any successor in interest shall be solely responsible and liable for the satisfaction
of all taxes and penalties that may be imposed on the Participant, the Beneficiary, or any successor in interest in connection
with this Plan (including any taxes and penalties under Section 409A); and neither the Plan Sponsor, the Employer, the Administrator
nor any Affiliate shall have any obligation to indemnify or otherwise hold the Participant, the Beneficiary, or any successor in
interest harmless from any or all of such taxes or penalties.

 

 

September 1, 2017

    - 30 -

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