Document:

EX-10.3

 Exhibit 10.3 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”), is made as of the 2nd day of
November, 2016, between Bay Banks of Virginia, Inc., a Virginia corporation (the “Corporation”), Bank of Lancaster, a wholly-owned bank subsidiary of the Corporation (the “Bank”), and Douglas F. Jenkins, Jr.
(“Executive”). 
 WHEREAS, it is the desire of the Corporation to have the benefit of Executive’s loyalty, service and
counsel; 
 WHEREAS, the Corporation desires to protect its confidential information and guard against unfair competition; 

WHEREAS, Executive possesses certain valuable knowledge, professional skills and expertise which will contribute to the continued success of
the business of the Corporation and its affiliates; and 
 WHEREAS, the Corporation and the Executive desire to set forth, in writing, the
terms and conditions of their agreements and understandings, including with respect to the periods before and after the anticipated merger of the Corporation and Virginia BanCorp Inc. (“the Merger”). 

NOW, THEREFORE, in consideration of the mutual promises herein contained, and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending legally to be bound, agree as follows: 
  

	 	Section 1.	Employment. 

 (a) The parties hereto agree that Executive shall be employed as the
Executive Vice President and Chief Banking Officer of the Bank and Executive Vice President of the Corporation and shall perform such services as may be assigned to Executive by the Bank and Corporation from time to time upon the terms and
conditions herein provided. 
 (b) References in this Agreement to services rendered for the Bank and compensation and benefits payable or
provided by the Bank shall include services rendered for, and compensation and benefits payable or provided by, the Corporation or any Affiliate of the Corporation. References in this Agreement to the “Bank” also shall mean and refer to
each Affiliate of the Corporation for which Executive performs services. References in this Agreement to “Affiliate” shall mean any business entity that, directly or indirectly, through one or more intermediaries, is controlled by Bay
Banks of Virginia, Inc. 
 (c) The Executive shall devote his full time and attention to the discharge of the duties assigned to and
undertaken by him hereunder. Executive shall comply with all policies, standards and regulations of the Bank now or hereafter promulgated, and shall perform his duties under this Agreement to the best of his abilities and in accordance with general
business standards of conduct. 
 (d) Executive acknowledges that he is entering into this Agreement of his own free will and that he has
had the opportunity to obtain the advice of independent counsel of his own choice. 

  
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	 	Section 2.	Term of Employment. 

 The term of this Agreement shall be deemed to commence on the date
hereof and shall end on the second anniversary of the date hereof, unless earlier terminated as provided herein. This Agreement will automatically renew for successive two year terms unless either party notifies the other in writing, at least three
(3) months prior to the end of the original term, or the end of any additional two-year renewal term, that the Agreement shall not be extended beyond its current term. The term of this Agreement,
including any renewal term, is referred to as the “Term.” 
  

	 	Section 3.	Compensation. 

 (a) Base Salary. During the Term, the Bank shall pay Executive an
annual base salary not less than $205,700.00 as compensation for services rendered by Executive under this Agreement. The base salary shall be paid to Executive in accordance with established payroll practices of the Bank (but no less frequently
than twice per month). The Executive may receive base salary increases and incentive, bonus compensation or other compensation in the amounts determined by the Board of Directors of the Bank. 

(b) Annual Bonus. During the Term, Executive will be eligible to participate in any long-term or short-term incentive plans of the Bank
and Corporation on the same basis as other similarly situated employees of the Bank, pursuant to any such plans adopted by the Board of Directors of the Corporation or Bank or their Compensation Committees on an annual basis. 

(c) Tax Withholdings. The Bank shall withhold state and federal income taxes, social security taxes and such other payroll deductions
as may from time to time be required by law. The Bank shall withhold and remit to the proper party any amounts agreed to in writing by the Bank and the Executive for participation in any corporate sponsored benefit plans for which a contribution is
required. 
 (d) Compensation Following Termination. Except as otherwise expressly set forth herein, including without limitation, as
set forth in Section 7(d) and Section 7(i), no compensation shall be paid pursuant to this Agreement subsequent to any termination of Executive’s employment with the Bank. 

(e) Clawback. Executive agrees that any incentive compensation (as determined by the Bank or Corporation) that Executive receives from
the Bank, the Corporation or any Affiliate pursuant to this Agreement or otherwise is subject to repayment to (i.e., clawback by) the Bank, the Corporation or any Affiliate as required by federal law and on such basis as the Bank or

  
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Corporation determines. Except where offset of, or recoupment from, compensation covered by Code Section 409A (as defined in Section 11) is prohibited by Code Section 409A, to the
extent allowed by law and as determined by the Bank or Corporation, Executive agrees that such repayment may, in the discretion of the Bank or Corporation, be accomplished by withholding of future compensation to be paid to Executive by the Bank,
the Corporation or any Affiliate. Any recovery of compensation covered by Code Section 409A shall be implemented in a manner which complies with Code Section 409A. 
  

	 	Section 4.	Additional Benefits. 

 (a) Benefit Plans. Executive shall be entitled to
participate in all of the Corporation’s and Bank’s employee benefit plans and programs for which he is or will become eligible according to the terms of said plans or programs. It is understood that the Board of Directors of the
Corporation or Bank or their Compensation Committees may, in their sole discretion, establish, modify or terminate such plans or benefits. 

(b) Automobile. The Bank shall provide the Executive with the use of a Bank-owned vehicle during the Term. 

(c) Insurance and Indemnification. The Bank, as appropriate, shall maintain appropriate insurance to indemnify Executive from any and
all claims, suits, or causes of action that may arise from Executive’s employment with the Bank. Indemnification of Executive shall be according to the terms and conditions of the insurance policies covering Executive, the articles of
incorporation of the Corporation and Virginia law. 
  

	 	Section 5.	Expense Reimbursement. 

 The Bank shall reimburse Executive for reasonable and customary
business expenses incurred in the conduct of the Bank’s business in accordance with the Bank’s policy. The Bank reserves the right to review these expenses periodically and determine, in its sole discretion, whether future reimbursement of
such expenses to Executive will continue without prior approval by the Board of Directors or the Bank or its designee of the expenses. Executive agrees to timely submit records and receipts of reimbursable items and agrees that the Bank can adopt
reasonable rules and policies regarding such reimbursement. The Bank agrees to make prompt payment to Executive following receipt and verification of such reports. 
  

	 	Section 6.	Paid Time Off. 

 Executive shall be entitled to paid time off leave each year, according
to applicable provisions of the Bank’s leave policies, which shall be taken at such time or times as may be approved by the Bank and during which Executive’s compensation hereunder shall continue to be paid. 

  
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	 	Section 7.	Termination and Survival of Obligations. 

 (a) Notwithstanding the termination of this
Agreement or the termination of Executive’s employment for any reason, the parties shall be required to carry out any provisions of this Agreement which contemplate performance by them subsequent to such termination. In addition, no termination
of this Agreement shall affect any liability or other obligation of either party which shall have accrued prior to such termination, including, but not limited to, any liability, loss or damage on account of breach. No termination of employment
shall terminate the obligation of the Bank to make payments of any vested benefits provided hereunder or the obligations of Executive under Sections 8, 9 and 10 of this Agreement (except as otherwise provided in those Sections). To the extent
applicable, payouts under this Section 7 shall be subject to the provisions of Section 11. 
 (b) Executive’s employment
hereunder may be terminated by Executive upon thirty (30) days written notice to the Bank or at any time by mutual agreement in writing. Upon such termination of employment, Executive shall have no right to receive compensation or other
benefits under this Agreement for any period after such termination. Upon notice of such termination of employment, the Bank, at its option, may relieve Executive of all duties. 

(c) This Agreement shall terminate upon death of Executive; provided, however, that in such event the Bank shall pay to the estate of
Executive, within sixty (60) days of his death, the compensation, including salary, which otherwise would be payable to Executive through the end of the month in which his death occurs and any earned but unpaid bonuses. 

(d)(l) The Bank may terminate Executive’s employment other than for “Cause”, as defined in Section 7(e), at any time upon
written notice to Executive, which termination shall be effective immediately. Executive may resign thirty (30) days after notice to the Corporation for “Good Reason”, as hereafter defined. Provided the Executive signs a release and
waiver of claims reasonably satisfactory to the Bank within thirty (30) days following his termination, in the event the Executive’s employment terminates pursuant to this Section 7(d)(1), Executive shall receive: 

 

	 	(i)	An amount equal to the greater of (A) a monthly amount equal to one-twelfth (1/12) his rate of annual base salary in effect immediately preceding such termination in
each month for the remainder of the term of this Agreement or (B) a monthly amount equal to one-twelfth (1/12) his rate of annual base salary in effect immediately preceding such termination for one (1) year; any such payments shall
be at the times such payments would have been made in accordance with Section 3(a) subject to the provision of Section 11(c), if applicable. 

  

	 	(ii)	Any bonus or other short term incentive compensation earned, but not yet paid, for the year prior to the year in which his employment terminates which shall be paid at the time such bonus or incentive compensation would
otherwise be payable if no termination had occurred; and 

  

	 	(iii)	If Executive timely elects coverage under the Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”), the continuance of Executive’s current benefits under group health and dental plans. In
such case for the period in which payments are made under Section 7(d)(i): (a) Executive will receive such benefits at the rates paid by active participants, and (b) the Bank will continue to pay its portion of such health and dental
premiums in effect at the date of termination. 

  
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 (d)(2) Notwithstanding anything in this Agreement to the contrary, if Executive breaches
Section 8 or 9 of this Agreement, Executive will not thereafter be entitled to receive any further compensation or benefits pursuant to Section 7(d)(1). 

(d)(3) For purposes of this Agreement, Good Reason shall mean: 
  

	 	(i)	The assignment of duties to the Executive by the Bank or the Corporation which result in the Executive having significantly less authority or responsibility than he has on the date hereof without his express written
consent; 

  

	 	(ii)	Requiring the Executive to maintain his principal office in a location that is more than fifty (50) miles from the Executive’s principal office at the Effective Time; 

 

	 	(iii)	A material reduction by the Bank or the Corporation of the Executive’s base salary, as the same may have been increased from time to time; or 

 

	 	(iv)	The Corporation’s or the Bank’s failure to comply with any material term of this Agreement; 

The Executive is required to provide notice to the Bank and the Corporation of the existence of a condition described in this
Section 7(d)(3) above within a ninety (90) day period beginning on the date of the initial existence of the condition, upon the notice of which the Bank or the Corporation, as applicable, shall have thirty (30) days to remedy the
condition without having to pay the amounts described in this section. 
 (e) The Corporation and the Bank shall have the right to terminate
Executive’s employment under this Agreement at any time for Cause, which termination shall be effective immediately. Termination for “Cause” shall mean material failure of the Executive to perform his duties and responsibilities under
this Agreement, incompetence, willful misconduct, dishonesty, breach of a fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or
similar minor offenses), misappropriation of the Bank’s or the Corporation’s assets (determined on a reasonable basis), commission of a felony or misdemeanor involving moral turpitude, a material violation of the Bank’s or the
Corporation’s work rules or policies; or a material breach of this Agreement. The term “Cause” also shall include conduct that results in, or that in the 

  
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reasonable judgment of the Board of Directors of the Bank, is likely to result in, material damage to the Bank, Corporation, or any Affiliate. In the event Executive’s employment under this
Agreement is terminated for Cause, Executive shall thereafter have no right to receive compensation or other benefits under this Agreement, except salary for services performed through the date of termination, and any other amounts required to be
paid by law. 
 (f) The Corporation or the Bank may terminate Executive’s employment under this Agreement, after having established
that the Executive is unable to perform his obligations under this Agreement because of the Executive’s disability by giving to Executive written notice of its intention to terminate his employment for disability. For purposes of this
Agreement, “disability” means Executive’s inability to perform his obligations under this Agreement, with or without reasonable accommodation, for a period of time expected to last more than 90 days. Notwithstanding any other
provision of this Agreement, the Corporation and the Bank shall comply with all requirements of the Americans with Disabilities Act, 42 U.S.C. § 12101 et. seq. Notwithstanding any other provision of this Agreement, if the Executive’s
employment is terminated due to a “disability”, then no payments shall be paid under Section 7(d) or 7(i); provided that Executive shall be paid salary for services performed through the date of termination, and any other amounts
required to be paid by law. 
 (g) If Executive is suspended and/or temporarily prohibited from participating in the conduct of the
Bank’s affairs by a notice served pursuant to the Federal Reserve Act, the Bank Holding Company Act of 1956 or the Federal Deposit Insurance Act or the Code of Virginia, each as amended, the obligations of the Bank and the Corporation under
this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion (i) pay Executive all or part of the compensation withheld while
its contract obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended. 
 (h)
If Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under the Federal Reserve Act, the Bank Holding Company Act of 1956, the Federal Deposit Insurance Act or the Code
of Virginia, each as amended, all obligations of the Bank and the Corporation under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected. 

(i)(1) If Executive’s employment is terminated without Cause within one year after a Change of Control shall have occurred or if he
resigns for Good Reason within one year after a Change of Control shall have occurred, then, the Bank shall pay to Executive as compensation for services rendered to the Bank a cash amount (subject to any applicable payroll or other taxes required
to be withheld) equal to two times (x) Executive’s base salary at the rate in effect (i) on the date of termination or, if greater, (ii) immediately prior to the Change of Control, plus (y) Executive’s
annual bonus for the most recent fiscal year of the Bank (i) that ends prior to Executive’s termination or, if greater, (ii) that ends prior to the Change of Control, to be paid in one lump sum on or before the Executive’s last
day of employment, subject to the provisions in Section 11(c), if applicable. In addition, if Executive timely elects coverage under COBRA, then, for the lesser of two years after Executive’s last day of employment with the Bank or the

  
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applicable COBRA coverage period, (a) the group health and dental plan coverage elected by Executive under COBRA will continue at the rates paid by active participants, and (b) the Bank
will continue to pay its portion of such health and dental premiums in effect at the date of termination. Amounts payable, if any, under this Section 7(i)(1) shall be in lieu of amounts payable under Section 7(d). In no event shall such
benefits continue beyond the period permitted by COBRA. 
 (i)(2) For purposes of this Agreement, a Change of Control occurs if, after the
date of this Agreement: (i) any person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), becomes the owner or beneficial owner of securities of
the Corporation having fifty percent (50%) or more of the combined voting power of the then outstanding securities of the Corporation that may be cast for the election of the Corporation’s directors other than a result of an issuance of
securities initiated by the Corporation, or open market purchases approved by the Corporation’s Board of Directors, as long as the majority of the Corporation’s Board of Directors approving the purchases is a majority at the time the
purchases are made; (ii) as the direct or indirect result of, or in connection with, a tender or exchange offer, a merger or other business combination, a sale of assets, a contested election of directors, or any combination of these events,
the persons who were directors of the Corporation before such events cease to constitute a majority of the Corporation’s Board of Directors, or any successor’s board, within the twelve (12) month period of the last of such
transactions; or (iii) the Corporation sells to an unaffiliated third party at least forty percent (40%) of the gross fair market value of the assets of the Corporation or securities of the Corporation having fifty (50%) or more of
the combined voting power of the then outstanding Corporation securities that may be cast for the election of the Corporation’s directors. For purposes of this Agreement, a Change of Control occurs on the date on which an event described in
clause (i), (ii) or (iii) of the preceding sentence occurs. If a Change of Control occurs on account of a series of transactions or events, the Change of Control occurs on the date of the last of such transactions or events. Executive and
the Corporation agree that the anticipated merger with Virginia BanCorp Inc. and its subsidiary Virginia Commonwealth Bank shall not be considered a Change of Control. 

(i)(3) It is the intention of the parties that no payment be made or benefit provided to Executive pursuant to this Agreement that would
constitute an “excess parachute payment” within the meaning of Section 280G of the Code and any regulations thereunder, thereby resulting in a loss of an income tax deduction by the Bank or the imposition of an excise tax on Executive
under Section 4999 of the Code. If the independent accountants serving as auditors for the Bank on prior to a Change of Control (or any other accounting firm or tax adviser designated by the Corporation prior to the Change of Control) determine
that some or all of the payments or benefits scheduled under this Agreement, as well as any other payments or benefits on a Change of Control, would be nondeductible by the Corporation or the Bank under Section 280G of the Code, then the
payments scheduled under this Agreement will be reduced to one hundred dollars less than the maximum amount which may be paid without causing any such payment or benefit to be nondeductible. The determination made as to the reduction of benefits or
payments required hereunder by the independent accountants shall be binding on the parties. 
 (j) If Executive is a director or officer of
the Corporation, the Bank or any other Affiliate at the time his employment terminates, Executive will immediately submit his resignation from such position. 

  
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	 	Section 8.	Confidentiality/Nondisclosure. 

 Executive covenants and agrees that any and all
information concerning the business, services, customers or affairs of the Corporation and Bank (“Confidential Information”) of which he has knowledge or access as a result of his association and employment with the Bank in any capacity
shall be deemed confidential in nature and the property of the Corporation and Bank, vital to their businesses, and shall not, without the proper written consent of the Corporation or Bank, directly or indirectly, at any time be used, disseminated,
disclosed or published by the Executive to third parties other than in connection with the usual conduct of the business of the Corporation or Bank. Such Confidential Information shall expressly include, but shall not be limited to, information
concerning the Corporation’s and Bank’s trade secrets, business operations, business records, customer lists or other customer information. Upon termination of employment, the Executive shall deliver to the Bank all property in his
possession which belongs to the Corporation or Bank including all originals and copies of documents, forms, records or other information, in whatever form it may exist, concerning the Corporation or Bank or their business, customers, products or
services. In construing this provision it is agreed that it shall be interpreted broadly so as to provide the Corporation and Bank with the maximum protection. This Section 8 shall not be applicable to any Confidential Information which
(i) has become generally known to and available for use by the public other than as a result of Executive’s acts or omissions or (ii) which Executive is required to disclose pursuant to an order of a court of competent jurisdiction;
provided that prior to making such disclosure Executive provides a copy of such order and the proposed disclosure to the Corporation and Bank and allows the Corporation and Bank reasonable opportunity to comment on the proposed disclosure. 

 

	 	Section 9.	Restrictive Covenants. 

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

	 	(i)	A period of two years from and after the date that Executive is, for any reason, no longer employed by the Bank; or 

  

	 	(ii)	A period of two years from the date of entry by a court of competent jurisdiction of a final judgment enforcing this covenant in the event of a breach by Executive, 

Executive covenants and agrees that he will not (x) engage in a business that provides Competitive Services (as defined below) within a twenty
(20) mile radius of the principal executive offices of the Bank or within twenty (20) miles of any banking office operated by the Bank in any capacity that includes any of the significant responsibilities held or significant activities
engaged in by Executive while employed by the Bank; (y) solicit, or assist any other 

  
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person or business entity in soliciting any Customers (as defined below) to become customers of any other business entity providing Competitive Services or (z) induce any individuals to
terminate their employment with the Corporation, Bank or of any Affiliate. Executive’s obligations under this Section 9 shall terminate on the date a Change of Control occurs. 

(b) The parties intend that the covenants and restrictions in this Section 9 be enforceable against Executive regardless of the reason
that his employment by the Bank may terminate. The existence of any claim or cause of action by the Executive against the Bank, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Bank of the
restrictive covenants set forth in Sections 8 and 9 of this Agreement. 
 (c) For purposes of this Agreement, the term “Competitive
Services” means providing financial products and services, which includes offering one or more of the following services and products: depository accounts, consumer and commercial lending, residential and commercial mortgage lending, cash
management services, trust and estate administration, asset management, and any other services and products offered by the Bank at the time of termination of Executive’s employment. “Competitive Services” does not include any products
or services in which Executive was not significantly engaged in providing such products or services in the last year of Executive’s employment. The term “Customer” means any individual or entity to whom or to which the Bank provided
Competitive Services within two years before the date on which the Executive’s employment terminates and with whom Executive has contact or about whom Executive obtained confidential information during his employment with the Bank. 

(d) The Executive agrees that the covenants in this Section 9 are reasonably necessary to protect the legitimate interests of the Bank,
are reasonable with respect to the time and territory and do not interfere with the interests of the public. The Executive further agrees that the descriptions of the covenants contained in this Section 9 are sufficiently accurate and definite
to inform the Executive of the scope of the covenants. Finally, the Executive agrees that the consideration set forth in this Agreement is full, fair and adequate to support the Executive’s obligations hereunder and the Bank’s rights
hereunder. The Executive acknowledges that in the event the Executive’s employment with the Bank is terminated for any reason, the Executive will be able to earn a livelihood without violating such covenants. 

(e) The parties have attempted to limit the Executive’s right to compete only to the extent necessary to protect the Bank from unfair
competition. The parties recognize, however, that reasonable people may differ in making such a determination. Accordingly, the parties intend that the covenants contained in this Section 9 to be completely severable and independent, and any
invalidity or unenforceability of any one or more such covenants will not render invalid or unenforceable any one or more of the other covenants. The parties further agree that, if the scope or enforceability of a covenant contained in this
Section 9 is in any way disputed at any time, a court or other trier of fact may modify and reform such provision to substitute such other terms as are reasonable to protect the Bank’s legitimate business interests. 

  
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	 	Section 10.	Injunctive Relief, Damages. Etc. 

 The Executive agrees that, given the nature of the
positions held by Executive with the Bank, each and every one of the covenants and restrictions set forth in Sections 8 and 9 above are reasonable in scope, length of time and geographic area and are necessary for the protection of the significant
investment of the Bank in developing, maintaining and expanding its business. Accordingly, the parties hereto agree that in the event of any breach by Executive of any of the provisions of Sections 8 or 9 that monetary damages alone will not
adequately compensate the Bank for its losses and, therefore, that it shall be entitled to any and all legal or equitable relief available to it, specifically including, but not limited to, injunctive relief, and the Executive shall be liable for
all damages, including actual and consequential damages, costs and expenses, and legal costs and actual attorney’s fees incurred by the Bank as a result of taking action to enforce, or recover for any breach of Sections 8 or 9. The covenants
contained in Sections 8 and 9 shall be construed and interpreted in any judicial proceeding to permit their enforcement to the maximum extent permitted by law. Should a court of competent jurisdiction determine that any provision of the covenants
and restrictions set forth in Section 9 above is unenforceable as being overbroad as to time, area or scope, the court may strike the offending provision or reform such provision to substitute such other terms as are reasonable to protect the
Bank’s legitimate business interests. 
  

	 	Section 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. 

(b) Neither the Executive 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) If the Executive 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 the Executive’s separation from service or (ii) the date of the Executive’s death. In the case of benefits required to be delayed under Code
Section 409A, however, the Executive 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 the Executive’s separation from service or, if earlier, on the date of the Executive’s death, all payments delayed pursuant to this Section 11(c) (whether they
would have otherwise been payable in a single sum or in 

  
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installments in the absence of such delay) shall be paid or reimbursed to the Executive 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 the Executive’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 Corporation’s reimbursement policies but in no event later than the calendar year following the calendar year in which the related expense is incurred. 

(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. 
 (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 Corporation. 

(g) Notwithstanding any of the provisions of this Agreement, neither the Corporation nor the Bank shall be liable to the Executive 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. 

 

	 	Section 12.	Invalid Provisions. 

 The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be valid and enforceable to the fullest extent permitted by law without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. 

  
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	 	Section 13.	Entire Agreement. 

 This Agreement constitutes the entire agreement among the parties
with respect to the subject matter hereof and supersedes any and all other agreements, either oral or in writing (including but not limited to the Management Continuity Agreement between the parties, which is hereby terminated), among the parties
hereto with respect to the subject matter hereof. 

  
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	 	Section 14.	Notices. 

 Any and all notices, designations, consents, offers, acceptance or other
communications provided for herein shall be given in writing and shall be deemed properly delivered if delivered in person or by registered or certified mail, return receipt requested, addressed in the case of the Corporation, to its Chairman, in
the case of the Bank, to its Chairman, and in the case of the Executive, to his last known address. 
  

	 	Section 15.	Amendment and Waiver. 

 This Agreement may not be amended except by an instrument in
writing signed by or on behalf of each of the parties hereto. No waiver of any provision of this Employment Agreement shall be valid unless in writing and signed by the person or party to be charged. 

 

	 	Section 16.	Case and Gender. 

 Wherever required by the context of this Agreement, the singular or
plural case and the masculine, feminine and neuter genders shall be interchangeable. 
  

	 	Section 17.	Governing Law; Venue. 

 Except where preempted by federal law, the Agreement shall be
subject to and construed in accordance with the laws of the Commonwealth of Virginia. Executive consents to the personal jurisdiction of the Circuit Court for the County of Lancaster, Virginia (and of the appropriate appellate courts) for any action
or proceeding arising from or relating to this Agreement and waives any objection of venue laid therein. 
  

	 	Section 18.	Captions. 

 The captions used in this Agreement are intended for descriptive and
reference purposes only and are not intended to affect the meaning of any Section hereunder. 
  

	 	Section 19.	Binding Effect. 

 This Agreement shall be binding upon Executive and on the Bank and the
Corporation, and their successors and assigns effective on the date first above written. The Bank will require any successor to all or substantially all of the business and/or assets of the Bank to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Bank and Corporation would be required to perform it if no such succession had taken place. This Agreement shall be freely assignable by the Bank and the Corporation. 

 

	 	Section 20.	Regulatory Prohibition 

 Notwithstanding anything in this Agreement to the contrary, it
is understood and agreed that the Corporation (or any of its successors in interest) shall not be required to make any 

  
 13 

 
payment or take any action under this Agreement if: (i) such payment or action is prohibited by any governmental agency having jurisdiction over the Corporation or any of its subsidiaries (a
“Regulatory Authority”) because the Corporation or any of its subsidiaries is determined by such Regulatory Authority to be troubled, insolvent, in default or operating in an unsafe or unsound manner; or (ii) such payment or action
(A) would be prohibited by or would violate any provision of state or federal law applicable to the Corporation or any of its subsidiaries, including, without limitation, the Federal Deposit Insurance Act and the regulations thereunder
presently found at 12 C.F.R. Part 359, as now in effect or hereafter amended, (B) would be prohibited by or would violate any applicable rules, regulations, orders or statements of policy, whether now existing or hereafter promulgated, or any
Regulatory Authority or (C) otherwise would be prohibited by any Regulatory Authority. If any payment hereunder is alleged by any Regulatory Authority to be in violation of the foregoing, any payment alleged to have been made in violation of
the foregoing shall be immediately returned by Executive to the Corporation. 

  
 14 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above
written. 
  

			
	BAY BANKS OF VIRGINIA, INC.
		
	By:	 	 /s/ Robert F. Hurliman

	Name:	 	Robert F. Hurliman
	Title:	 	Chairman of the Board
	
	BANK OF LANCASTER
		
	By:	 	 /s/ Randal R. Greene

	Name:	 	Randal R. Greene
	Title:	 	President and Chief Executive Officer
	
	EXECUTIVE
	
	 /s/ Douglas F. Jenkins, Jr.

	Douglas F. Jenkins, Jr.

  
 15mrns_Exhibit 101

		
			EXHIBIT 10.1
		

		
			MARINUS PHARMACEUTICALS, INC.
CHANGE IN CONTROL SEVERANCE PLAN
		

		
			The Company has adopted this Marinus Pharmaceuticals, Inc. Change in Control Severance Plan for the benefit of certain employees of the Company, on the terms and conditions hereinafter stated.  All capitalized terms used herein are defined in Section 1 hereof.  The Plan, as set forth herein, is intended to help retain qualified employees, maintain a stable work environment and provide economic security to eligible employees in the event of certain terminations of employment.  
		

			
	
			
				 SECTION 1.
			

			
	
			
			DEFINITIONS.  As hereinafter used:

			
	
			
				 1.1.
			“Affiliate” means, with respect to any individual or entity, any other individual or entity who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such individual or entity.

			
	
			
				 1.2.
			“Board” means the Board of Directors of the Company.

			
	
			
				 1.3.
			“Cause” shall mean that the Eligible Employee has:  (a) willfully and continually failed to substantially perform, or been willfully grossly negligent in the discharge of, his or her duties to the Company or any of its subsidiaries (in any case, other than by reason of a disability, physical or mental illness or analogous condition); (b) committed or engaged in an act of theft, embezzlement or fraud, or committed a willful and material breach of confidentiality with respect to the Company or any of its subsidiaries or a willful unauthorized disclosure or use of inside information, customer lists, trade secrets or other confidential information of the Company or any of its subsidiaries; (c) willfully breached a fiduciary duty, or willfully and materially violated any other duty, law, rule, regulation or policy of the Company or any of its subsidiaries; or (d) been convicted of a felony or a misdemeanor with respect to which fraud or dishonesty is a material element.  No act or failure to act on the part of the Eligible Employee shall be deemed “willful” unless done, or omitted to be done, by the Eligible Employee not in good faith or without reasonable belief that the Eligible Employee’s act or failure to act was in the best interests of the Company.  For the avoidance of doubt, this definition of Cause shall control for all purposes of determining the rights to benefits for Eligible Employees under the Plan, regardless of any inconsistency between this definition and a definition of “Cause” that is set forth in any employment, severance or other agreement between the Eligible Employee on the one hand, and the Company or any subsidiary of the Company or any Affiliate of the Company or any subsidiary of the Company, on the other hand.  In addition to the foregoing (but without limitation of the rights of any Eligible Employee), this definition of Cause shall also apply for purposes of each other plan, program, agreement or arrangement between the Company or an Affiliate and any Eligible Employee which includes the concept of “cause” but does not define such term and each such plan, program, agreement or arrangement shall be deemed amended to so provide upon the Effective Date.

			
	
			
				 1.4.
			A “Change in Control” shall be deemed to mean the first of the following events to occur after the Effective Date:

		
			

		 

		

			 

		

		

			 

		

 

		

			
	
			
				 (a)
			The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (1) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then- outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this Section 1.4(a), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate of the Company or a successor, or (D) any acquisition by any entity pursuant to a transaction that complies with Section (c)(l) or (c)(2) below;

			
	
			
				 (b)
			Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

			
	
			
				 (c)
			The consummation of a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than (1) a merger or consolidation which results in the directors of the Company immediately prior to such merger or consolidation continuing to constitute at least a majority of the board of directors of the Company, the surviving entity or any parent thereof or (2) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person acquires beneficial ownership, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company) representing 50% or more of the Outstanding Company Common Stock or the Outstanding Company Voting Securities; or

			
	
			
				 (d)
			The sale or other disposition by the Company of all or substantially all of the Company’s assets, other than a sale or other disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

			
	
			
				 1.5.
			“Change in Control Protection Period” shall mean the period commencing on the first date a Change in Control occurs and ending twenty-four (24) months following such date.  

			
	
			
				 1.6.
			“Code” means the Internal Revenue Code of 1986, as amended.

			
	
			
				 1.7.
			“Committee” means the Compensation Committee of the Board.

		
			

		 

		

			-2-

		

 

		

			
	
			
				 1.8.
			“Company” means Marinus Pharmaceuticals, Inc. and any successors thereto.

			
	
			
				 1.9.
			“Disability” means a physical or mental condition entitling the Eligible Employee or Former Employee to benefits under the applicable long-term disability plan of the Company or any its subsidiaries, or if no such plan exists, a “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code).

			
	
			
				 1.10.
			“Effective Date” shall mean November 7, 2016

			
	
			
				 1.11.
			 “Eligible Employee” means any employee of the Company who is regularly scheduled to work at least 30 hours per week.

			
	
			
				 1.12.
			“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

			
	
			
				 1.13.
			“Exchange Act” means the Securities Exchange Act of 1934, as amended.

			
	
			
				 1.14.
			“Former Employee” means any former employee of the Company whose employment with the Company was terminated by the Company without Cause and who while employed was regularly scheduled to work at least 30 hours per week.

			
	
			
				 1.15.
			“Good Reason” means any of the following events or conditions that occur during the Change in Control Protection Period without the Eligible Employee’s consent: (i) a material adverse alteration in the nature or status of an Eligible Employee’s responsibilities with the Company or any subsidiary thereof from those in effect immediately prior to the Change in Control, (ii) a reduction in salary or target bonus opportunity of an Eligible Employee from those in effect immediately prior to the Change in Control, or (iii) a relocation of an Eligible Employee’s principal place of business of more than 50 miles.  However, none of the foregoing events or conditions will constitute Good Reason unless the Eligible Employee provides the Company with written objection to the event or condition within 30 days following the occurrence thereof, the Company does not reverse or otherwise cure the event or condition within 30 days of receiving that written objection, and the Eligible Employee resigns his employment within 30 days following the expiration of that cure period.

			
	
			
				 1.16.
			“Plan” means the Marinus Pharmaceuticals, Inc. Change in Control Severance Plan, as set forth herein, as it may be amended from time to time.

			
	
			
				 1.17.
			“Plan Administrator” means the Committee or such other person or persons appointed from time to time by the Committee to administer the Plan.

			
	
			
				 1.18.
			“Safe Harbor Amount” shall mean the greatest pre-tax amount of Payments (as defined in Section 4) that could be paid to an Eligible Employee or Former Employee without causing that Eligible Employee or Former Employee to become liable for any Excise Tax (as defined in Section 4) in connection therewith.

			
	
			
				 1.19.
			“Severance” means (a) the involuntary termination of an Eligible Employee’s employment by the Company or any Affiliate, other than for Cause, death or 

		 

		

			-3-

		

 

	Disability during the Change in Control Protection Period or (b) a termination of employment with the Company or any Affiliate as a result of a resignation by an Eligible Employee for Good Reason which termination becomes effective during the Change in Control Protection Period; provided that, in any case, such termination of employment constitutes a “separation from service” within the meaning of Section 409A of the Code and regulations and other guidance issued thereunder (“Section 409A”).

			
	
			
				 1.20.
			“Severance Benefit” means the payment and benefits described in Section 2.3 below.  

			
	
			
				 1.21.
			“Severance Date” means (i) with respect to an Eligible Employee, the date on which an Eligible Employee incurs a Severance and (ii) with respect to a Former Employee, the date on which the Former Employee’s employment was terminated by the Company without Cause.

			
	
			
				 1.22.
			“Severance Period”  and “Bonus Multiplier”  means, for each classification of Eligible Employee, the duration of time as set forth on Exhibit A hereto.  

			
	
			
				 1.23.
			“Tier I Employee” means any Eligible Employee or Former Employee included within the classification of a Tier I Employee as set forth on Exhibit A hereto.

			
	
			
				 1.24.
			“Tier II Employee” means any Eligible Employee or Former Employee included within the classification of a Tier II Employee as set forth on Exhibit A hereto.

			
	
			
				 1.25.
			“Tier III Employee” means any Eligible Employee or Former Employee included within the classification of a Tier III Employee as set forth on Exhibit A hereto.

			
	
			
				 1.26.
			“Tier IV Employee” means any Eligible Employee or Former Employee included within the classification of a Tier IV Employee as set forth on Exhibit A hereto.

			
	
			
				 1.27.
			 “Year of Service” shall mean each completed continuous 12 month period of employment with the Company or an Affiliate, measured from the Eligible Employee’s or Former Employee’s most recent hire or rehire date until the Eligible Employee’s Severance Date or the date that the employment of the Former Employee was terminated, as applicable.  For purposes of this definition, authorized leaves of absence shall not be deemed to have interrupted an Eligible Employee’s or Former Employee’s continuous employment.

			
	
			
				 SECTION 2.
			

			
	
			
			CHANGE IN CONTROL SEVERANCE BENEFITS.

			
	
			
				 2.1.
			Generally.  Subject to Sections 2.6, 2.7, 2.8, 2.9 and Section 4, each Eligible Employee and Former Employee shall be entitled to severance payments and benefits pursuant to applicable provisions of this Section 2 if (i) the Eligible Employee incurs a Severance during the Change in Control Protection Period or (ii) the Severance Date with respect to a Former Employee occurs within the ninety (90) day period ending on the date that the Change in Control is consummated.  For purposes of calculating severance payments pursuant to this Section 2, any reduction in an Eligible Employee’s annual base salary during the Change in Control Protection Period shall be disregarded (unless the Eligible Employee consented to such reduction).  For avoidance of any doubt, with respect to Former Employees, no Former 

		 

		

			-4-

		

 

	Employee will be entitled to the severance payments and benefits pursuant to the applicable provisions of this Section 2 if a Change in Control does not occur within the ninety (90) day following such Former Employee's Severance Date.

			
	
			
				 2.2.
			Payment of Accrued Obligations.  The Company shall pay to each Eligible Employee who incurs a Severance during the Change in Control Protection Period a lump sum payment in cash, paid as soon as practicable but no later than 10 days after the Severance Date, equal to the sum of (a) the Eligible Employee’s accrued but previously unpaid annual base salary and any accrued vacation pay through the Severance Date, and (b) the Eligible Employee’s annual bonus earned for the fiscal year immediately preceding the fiscal year in which the Severance Date occurs (if such bonus has not been paid as of the Severance Date).

			
	
			
				 2.3.
			Severance Benefit.  Subject to Sections 2.6, 2.7, 2.8, 2.9 and Section 4 hereof, each Eligible Employees who incurs a Severance during the Change in Control Protection Period and each Former Employee whose Severance Date occurred within the ninety (90) day period ending on the date that the Change in Control is consummated will be entitled to the following payments and benefits (the “Change in Control Benefit”): (i) a lump sum payment equal to the Eligible Employee’s or Former Employee’s monthly rate of base salary (at the rate in effect immediately prior to the Change in Control or immediately prior to the Severance Date, whichever is higher) multiplied by the Severance Period applicable to such Eligible Employee or Former Employee listed on Exhibit A; (ii) a lump-sum payment equal to the Eligible Employee’s prorated bonus target plus the annual target bonus multiplied by the Bonus Multiplier applicable to such Eligible Employee’s or Former Employee’s target bonus percent (at the rate in effect immediately prior to the Change in Control or immediately prior to the Severance Date, whichever is higher) listed on Exhibit A,  and (iii) a lump-sum payment, of an amount equal to the aggregate dollar amount that the Company otherwise would have contributed towards the Eligible Employee’s or Former Employee’s (and, to the extent covered immediately prior to the Severance Date, his or her eligible dependents) group health insurance coverage for the greater of twelve months or the Severance Period applicable to such Eligible Employee or Former Employee listed on Exhibit A.

			
	
			
				 2.4.
			Equity Treatment.   Subject to Sections 2.6, 2.7, 2.8, 2.9 and Section 4 hereof, without limitation of an Eligible Employee’s rights under any other plan, program or agreement, all unvested equity and equity-based awards for each Eligible Employee who incurs a Severance during the Change in Control Protection Period (including stock options, Restricted Stock and RSU’s and, for the avoidance of doubt, any equity or equity-based awards of either the Company or a successor into which unvested equity of the Company held by an Eligible Employee at the time of a Change in Control is converted in connection with the Change in Control) shall become fully vested immediately prior to such Severance.  

			
	
			
				 2.5.
			Outplacement Services.  Subject to Sections 2.6, 2.7, 2.8, 2.9 and Section 4 hereof, each Eligible Employee who incurs a Severance during the Change in Control Protection Period and each Former Employee whose Severance Date occurred within the ninety (90) day period ending on the date that the Change in Control is consummated will be eligible to receive outplacement services for the duration of the Severance Period, provided that the cost for such outplacement services shall not exceed $10,000.

		
			

		 

		

			-5-

		

 

		

			
	
			
				 2.6.
			Participation Agreement.  With respect to any employee of the Company who is otherwise eligible to participate in the Plan (other than an employee who is a Tier IV Employee), no such Eligible Employee or Former Employee shall be entitled to receive benefits under the Plan unless and until such Eligible Employee or Former Employee has executed a participation agreement in the form approved by the Board of Directors.

			
	
			
				 2.7.
			Release.  No Eligible Employee who incurs a Severance during the Change in Control Protection Period or any Former Employee whose Severance Date occurred within the ninety (90) day period ending on the date that the Change in Control is consummated shall be eligible to receive any payments or other benefits under the Plan (other than payment of accrued obligations under Section 2.2 hereof) unless he or she first executes and delivers to the Company a general release in favor of the Company in substantially the form attached hereto as Exhibit C (the “Release”), and all applicable statutory revocation periods related to such Release shall expire, within sixty (60) days following such Eligible Employee’s Severance Date or, with respect to a Former Employee, the date of the Change in Control.  Subject to Section 2.8 below, the payments and benefits described in Sections 2.3, 2.4 and 2.5 will be paid or provided (or begin to be paid or provided as applicable) as soon as administratively practicable following the date the Release becomes irrevocable, provided that if the 60-day period begins in one taxable year and ends in a second taxable year such payments or benefits shall not commence until the second taxable year.

			
	
			
				 2.8.
			Section 409A.  It is intended that payments and benefits under this Plan not subject Eligible Employees or Former Employees to taxation under Section 409A of the Code and, accordingly, this Plan shall be interpreted and administered to be in compliance therewith. Notwithstanding anything to the contrary, no portion of the benefits or payments to be made under the Plan will be payable until the applicable Eligible Employee or Former Employee has a “separation from service” from the Company within the meaning of Section 409A.  In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Code to payments and benefits due to the Eligible Employee or Former Employee upon or following his “separation from service”, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments and benefits that are otherwise due within six months following the Eligible Employee’s or Former Employee’s “separation from service” will be deferred without interest and paid to the Eligible Employee or Former Employee in a lump sum immediately following that six month period (or upon the Eligible Employee’s or Former Employee’s death, if earlier). For purposes of the application of Section 409A, each payment in a series of payments pursuant to the Plan will be deemed a separate payment.  Notwithstanding anything herein to the contrary or otherwise, except to the extent any expense, reimbursement or in-kind benefit provided to an Eligible Employee or Former Employee does not constitute a “deferral of compensation” within the meaning of Section 409A, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to the Eligible Employee during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Eligible Employee or Former Employee in any other calendar year, (ii) the reimbursements for expenses for which the Eligible Employee or Former Employee is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is 

		 

		

			-6-

		

 

	incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

			
	
			
				 2.9.
			Nonduplication; Coordination with Other Arrangements.  This Plan shall not be deemed to impair any rights of an Eligible Employee or Former Employee pursuant to any other agreement, plan or arrangement with the Company or an Affiliate (an “Alternative Arrangement”); provided however that the compensation and benefits provided under this Plan shall be coordinated with similar compensation and benefits provided under other Company-sponsored plans and individual agreements with Eligible Employees or Former Employee so as to avoid the duplication of any such compensation and benefits.  For the avoidance of doubt, in the event that an Eligible Employee or Former Employee is party to an Alternative Arrangement which provides one or more of the types of payments and benefits provided under Sections 2.3 through 2.5 of this Plan, upon a termination of employment giving rise to such payments or benefits, the Eligible Employee or Former Employee shall be entitled to the payment or benefit pursuant to either the Plan or the Alternative Arrangement, whichever provides the more favorable payment or benefit to the Eligible Employee or Former Employee, as determined on a per-payment or per-benefit basis, as applicable.  For avoidance of doubt, an Eligible Employee or Former Employee will not be entitled to a payment or benefit under both the Plan and an Alternative Arrangement.

			
	
			
				 SECTION 3.
			

			
	
			
			PLAN ADMINISTRATION.

			
	
			
				 3.1.
			The Plan Administrator shall administer the Plan and may interpret the Plan, prescribe, amend and rescind rules and regulations under the Plan and make all other determinations necessary or advisable for the administration of the Plan, subject to all of the provisions of the Plan.  All decisions made by the Plan Administrator pursuant to the Plan shall be made in its sole and absolute discretion and shall be final and binding on the Eligible Employees, Former Employees and the Company.   

			
	
			
				 3.2.
			The Plan Administrator may delegate any of its duties hereunder to such person or persons from time to time as it may designate.

			
	
			
				 3.3.
			The Plan Administrator is empowered, on behalf of the Plan, to engage accountants, legal counsel and such other personnel as it deems necessary or advisable to assist it in the performance of its duties under the Plan.  The functions of any such persons engaged by the Plan Administrator shall be limited to the specified services and duties for which they are engaged, and such persons shall have no other duties, obligations or responsibilities under the Plan.  Such persons shall exercise no discretionary authority or discretionary control respecting the management of the Plan.  All reasonable expenses thereof shall be borne by the Company.

			
	
			
				 SECTION 4.
			

			
	
			
			EXCISE TAX.

		
			Unless a more favorable treatment is otherwise provided in an individual agreement with an Eligible Employee or Former Employee, in the event it shall be determined that any payment or benefit whether paid or payable pursuant to the terms of this Plan or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement (collectively, a “Payment”), to or for the benefit of an Eligible Employee or Former Employee, 

		 

		

			-7-

		

 

would be subject to the excise tax imposed by Section 4999 of the Code, or any successor provision thereto, or any similar tax imposed by state or local law, or any interest or penalties with respect to such excise tax (such tax or taxes, together with any such interest and penalties, are hereafter collectively referred to as the “Excise Tax”), then the aggregate amount of Payments payable to the Eligible Employee or Former Employee shall be reduced to the Safe Harbor Amount, with such reduction being applied first to the cash payments under Section 2.3 hereof and then to other benefits provided hereunder; provided however that such reduction shall not be effected in the event that the net amount of Payments received or receivable by the Eligible Employee or Former Employee, after giving effect to the imposition of the Excise Tax (and all other applicable taxes) exceeds the net amount of such Payments received or receivable by the Eligible Employee or Former Employee after giving effect to the reduction.
		

			
	
			
				 SECTION 5.
			

			
	
			
			PLAN MODIFICATION OR TERMINATION.

		
			The Plan may be terminated or amended by the Board at any time; provided, however, that during the Change in Control Protection Period, (a) the Plan may not be terminated and (b) the Plan may not be amended if such amendment would in any manner be adverse to the interests of any Eligible Employee or Former Employee.  For the avoidance of doubt, (a) any action taken by the Company or the Plan Administrator to cause an Eligible Employee or Former Employee to no longer be designated as a Tier I Employee, Tier II Employee, Tier III Employee, or Tier IV Employee, as the case may be, or to decrease the benefits for which an Eligible Employee or Former Employee is eligible, and (b) any amendment to this Section 5 following the occurrence of a Change in Control shall be treated as an amendment to the Plan which is adverse to the interests of any Eligible Employee or Former Employee.
		

			
	
			
				 SECTION 6.
			

			
	
			
			GENERAL PROVISIONS.

			
	
			
				 6.1.
			Except as otherwise provided herein or by law, no right or interest of any Eligible Employee or Former Employee under the Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective; and no right or interest of any Eligible Employee or Former Employee under the Plan shall be liable for, or subject to, any obligation or liability of such Eligible Employee or Former Employee.  When a payment is due under this Plan to a severed employee who is unable to care for his or her affairs, payment may be made directly to his or her legal guardian or personal representative.

			
	
			
				 6.2.
			Neither the establishment of the Plan, nor any modification thereof, nor the creation of any fund, trust or account, nor the payment of any benefits shall be construed as giving any Eligible Employee or Former Employee, or any person whomsoever, the right to be retained in the service of the Company or any subsidiary thereof, and all Eligible Employees or Former Employees shall remain subject to discharge to the same extent as if the Plan had never been adopted.

			
	
			
				 6.3.
			If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included.

		
			

		 

		

			-8-

		

 

		

			
	
			
				 6.4.
			This Plan shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each Eligible Employee or Former Employee and any successor to the Company.  If a severed employee shall die while any amount would still be payable to such severed employee hereunder if the severed employee had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to the executor, personal representative or administrators of the severed employee’s estate.

			
	
			
				 6.5.
			The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be employed in the construction of the Plan.

			
	
			
				 6.6.
			The Plan shall not be required to be funded. However, the Company may decide to use a “rabbi trust” to anticipate its potential Plan liabilities.  Regardless of whether the Plan is funded, no Eligible Employee or Former Employee shall have any right to, or interest in, any assets of any Company which may be applied by the Company to the payment of benefits or other rights under this Plan.

			
	
			
				 6.7.
			Any notice or other communication required or permitted pursuant to the terms hereof shall have been duly given when delivered or mailed by United States Mail, first class, postage prepaid, addressed to the intended recipient at his, her or its last known address.

			
	
			
				 6.8.
			This Plan shall be construed and enforced according to the laws of the State of Delaware, to the extent not preempted by federal law.

			
	
			
				 6.9.
			All benefits hereunder shall be reduced by applicable withholding and shall be subject to applicable tax reporting, as determined by the Plan Administrator.

			
	
			
				 6.10.
			The Plan is intended to be a "severance pay arrangement" within the meaning of Section 3(2)(B)(i) of ERISA and is intended to meet the descriptive requirements of a plan constituting a "severance pay plan" within the meaning of regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations § 2510.3-2(b).  To the extent that, with respect to any Eligible Employee or Former Employee, the Plan does not meet the requirements of being a "severance pay plan", then, solely with respect to that Eligible Employee or Former Employee, the Plan shall constitute an unfunded "top-hat" plan as described in Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA.  

			
	
			
				 SECTION 7.
			

			
	
			
			CLAIMS; APPEALS.

			
	
			
				 7.1.
			Applications for Benefits and Inquiries.  Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted to the Plan Administrator in writing, as follows:

		
			Plan Administrator
c/o Marinus Pharmaceuticals, Inc.
170 North Radnor Chester Road, Suite 250
Radnor, PA 19087
		

		
			

		 

		

			-9-

		

 

		

			
	
			
				 7.2.
			Denial of Claims.  In the event that any application for benefits is denied in whole or in part, the Plan Administrator must notify the applicant, in writing, of the denial of the application, and of the applicant’s right to review the denial.  The written notice of denial will be set forth in a manner designed to be understood by the employee, and will include specific reasons for the denial, specific references to the Plan provision upon which the denial is based, a description of any information or material that the Plan Administrator needs to complete the review and an explanation of the Plan’s review procedure.

		
			This written notice will be given to the employee within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan Administrator has up to an additional ninety (90) days for processing the application.  If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial ninety (90)-day period.  This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render his or her decision on the application.  If written notice of denial of the application for benefits is not furnished within the specified time, the application shall be deemed to be denied.  The applicant will then be permitted to appeal the denial in accordance with the Review Procedure described below.
		

			
	
			
				 7.3.
			Request for a Review.  Any person (or that person’s authorized representative) for whom an application for benefits is denied (or deemed denied), in whole or in part, may appeal the denial by submitting a request for a review to the Plan Administrator within 60 days after the application is denied (or deemed denied).  The Plan Administrator will give the applicant (or his or her representative) an opportunity to review pertinent documents in preparing a request for a review and submit written comments, documents, records and other information relating to the claim.  A request for a review shall be in writing and shall be addressed to:

		
			Plan Administrator
c/o Marinus Pharmaceuticals, Inc., Suite 250
170 North Radnor Chester Road
Radnor, PA 19087
		

		
			A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent.  The Plan Administrator may require the applicant to submit additional facts, documents or other material as he or she may find necessary or appropriate in making his or her review.
		

			
	
			
				 7.4.
			Decision on Review.  The Plan Administrator will act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for a review.  If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial sixty (60)-day period.  The Plan Administrator will give prompt, written notice of his or her decision to the applicant.  In the event that the Plan Administrator confirms the denial of the application for benefits in whole or in part, the notice will outline, in a manner calculated to be understood by the applicant, the specific Plan provisions upon which the decision is based.

		
			

		 

		

			-10-

		

 

		

			
	
			
				 7.5.
			Rules and Procedures.  The Plan Administrator may establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out his or her responsibilities in reviewing benefit claims.  The Plan Administrator may require an applicant who wishes to submit additional information in connection with an appeal from the denial (or deemed denial) of benefits to do so at the applicant’s own expense.

			
	
			
				 7.6.
			Exhaustion of Remedies.  No legal action for benefits under the Plan may be brought until the claimant (a) has submitted a written application for benefits in accordance with the procedures described by Section 7.1 above, (b) has been notified by the Plan Administrator that the application is denied (or the application is deemed denied due to the Plan Administrator’s failure to act on it within the established time period), (c) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 7.3 above and (d) has been notified in writing that the Plan Administrator has denied the appeal (or the appeal is deemed to be denied due to the Plan Administrator’s failure to take any action on the claim within the time prescribed by Section 7.4 above).

		
			 
		

		
			 
		

		
			

		 

		

			-11-

		

 

		

		
			EXHIBIT A
		

		
			Tier I Employees
		

		
			Chief Executive Officer of the Company
		

		
			Severance Period- 24 months
		

		
			Bonus Multiplier 1.25
		

		
			Tier II Employees
		

		
			Named Officers (C.F.O., C.M.O.) and Vice Presidents;  
		

		
			Severance Period- 18 months
		

		
			Bonus Multiplier 1.0
		

		
			Tier III Employees
		

		
			Senior Directors, Directors
		

		
			Severance Period- 9 months
		

		
			Bonus Multiplier 0.75
		

		
			Tier IV Employee
		

		
			All Other Eligible Employees
		

		
			Severance Period- 4 months
		

		
			Bonus Multiplier 0.33
		

		
			 
		

		 

		

			A-1

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