Document:

Exhibit 10.1

 

AGREEMENT REGARDING
AMENDMENTS TO CREDIT AGREEMENT

 

This  AGREEMENT
REGARDING AMENDMENTS TO CREDIT AGREEMENT (this “Agreement”) is made and entered into as of March
2, 2020, by and among OTELCO INC., a Delaware corporation (the “Borrower”), the guarantors party
thereto from time to time (collectively, the “Guarantors” and, together with the Borrower, the “Loan
Parties”), COBANK, ACB (“CoBank”), in its capacity as administrative agent under
the Credit Agreement (as defined below; CoBank, in such capacity, the “Administrative Agent”) and the
Lenders party thereto from time to time (collectively, the “Lenders”). Defined terms used but not otherwise
defined herein shall have the meanings when used herein as set forth in the Credit Agreement.

 

RECITALS

 

WHEREAS, the
Borrower, the Guarantors party thereto from time to time, the Lenders and the Administrative Agent have entered into that certain
Credit Agreement, dated as of November 2, 2017 (as the same has been and may be further amended, restated, or otherwise modified
from time to time, the “Credit Agreement”); and

 

WHEREAS, the
parties have hereby agreed to the following amendments to the Credit Agreement on the terms and subject to the conditions set forth
herein;

 

NOW, THEREFORE,
in consideration of the premises set forth herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

 

1.                  
Amendments to Credit Agreement. Subject to the conditions set forth below, the Credit Agreement is hereby
amended in the following particulars:

 

		a.	Section 1.1 of the Credit Agreement is hereby amended in the following particulars:

 

		i.	By adding the following definition thereto, in alphabetical order:

 

“Debt Service Coverage
Ratio” means the ratio derived by dividing (a) Consolidated EBITDA by (b) all scheduled principal and interest payments
made on Indebtedness (or scheduled reductions in commitments on lines of credit to the extent such reductions caused the repayment
of principal amounts then outstanding under such lines) for the then most recently completed four fiscal quarters.

 

		ii.	By deleting the definitions “Fixed Charge Coverage Ratio” and “Fixed Charges.”

 

		b.	Article VIII of the Credit Agreement is hereby amended in the following particulars:

 

		i.	By amending and restating Section 8.1 in its entirety, as follows:

 

8.1               
Capital Expenditures and Capital Leases. The Loan Parties shall not make, or permit their Subsidiaries to make, Capital
Expenditures except Capital Expenditures in the ordinary course of business and in an aggregate amount for all of the Loan Parties
and their Subsidiaries not exceeding the maximum amount specified below during any specified fiscal year:

 

	Fiscal Year	Maximum Annual Aggregate Capital expenditures
	2020	$10,500,000
	2021 and thereafter	$10,000,000

 

     

     

    

  

		ii.	By amending and restating the table set forth in Section 8.2 in its entirety, as follows:

 

	Period	Ratio
	October 1, 2019 through March 30, 2021	3.50:1.00
	April 1, 2021 through December 31, 2021	3.25:1.00
	January 1, 2022 and thereafter	3.00:1.00

 

		iii.	By adding a new Section 8.3 thereto, as follows:

 

8.3.       Minimum
Debt Service Coverage Ratio. The Loan Parties shall maintain at all times, measured at each fiscal quarter end and maintained
through the next measurement date, a Debt Service Coverage Ratio of the Borrower of not less than 1.75 to 1.0.

 

2.                  
Representations and Warranties of the Borrower. The Borrower represents and warrants to the Administrative
Agent and the Lenders that, as of the Effective Date: (a) the representations and warranties of the Borrower and its Subsidiaries
contained in Article V of the Credit Agreement and elsewhere in the Credit Agreement and the other Loan Documents are true and
correct in all material respects (unless such representation and/or warranty is qualified by materiality or Material Adverse Effect,
in which case such representation and/or warranty shall be true and correct in all respects as written), before and after giving
effect to this Agreement, as though made on and as of the date hereof (except for those representations and warranties that specifically
relate to a prior date, which were true and correct on such prior date), and as if each reference therein to “this Agreement”
or “the Credit Agreement” (or words of similar import) included reference to this Agreement; (b) each Loan Party has
taken all necessary limited liability company, corporate and other action to authorize the execution, delivery and performance
of this Agreement and each of the other Loan Documents to which it is a party; (c) this Agreement is the legally valid and binding
obligation of each Loan Party party hereto, enforceable against such Person in accordance with its terms, and (d) no event
has occurred and is continuing, or would result from the borrowing or the application of the proceeds contemplated by this Agreement,
that constitutes a Default or an Event of Default.

 

3.                  
Conditions to Effectiveness. This Agreement shall be effective as of December 31, 2019 (the “Effective
Date”), subject to the receipt by the Administrative Agent of (i) this Agreement and all other documents required by
this Agreement in connection with the Borrower’s execution, delivery and performance of this Agreement, in each case, duly
authorized and executed by the Borrower, in form and substance satisfactory to the Administrative Agent and (ii) all fees described
in that certain Fee Letter, dated as of March 2, 2020, by and between CoBank and the Borrower.

 

4.                  
Reaffirmation of Security Interests. Each of the Borrower and each Guarantor hereby acknowledges its receipt of a
copy of this Agreement and its review of the terms and conditions hereof and consents to the terms and conditions of this Agreement
and the transactions contemplated thereby. Each of the Borrower and each Guarantor, as applicable, (a) affirms and confirms its
guarantees, pledges, grants and other undertakings under the Credit Agreement and the other Loan Documents to which it is a party
and (b) agrees that (i) each Loan Document to which it is a party shall continue to be in full force and effect and (ii) all guarantees,
pledges, grants and other undertakings thereunder shall continue to be in full force and effect and shall accrue to the benefit
of the Secured Parties.

 

5.                  
Expenses; Indemnity; Damage Waiver. Section 11.3 of the Credit Agreement is hereby incorporated, mutatis mutandis,
by reference as if such section was set forth in full herein.

 

6.                  
Miscellaneous.

 

a.       
Counterparts; Integrations; Effectiveness. This Agreement may be executed in counterparts (and by different parties
hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute
a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject
matter hereof. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf”
or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

 

    2 

     

    

 

b.      
Definitions. Capitalized terms used, but not defined, in this Agreement shall have the meaning set forth in the Credit
Agreement.

 

c.       
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Loan Parties, the Lender,
the Administrative Agent, and their respective successors and assigns, except that Borrower may not assign or transfer its
rights or obligations hereunder without the prior written consent of the Administrative Agent.

 

d.      
Governing Law. This Agreement shall be governed by and shall be construed and enforced in accordance with all provisions
of the Credit Agreement, including the governing law provisions thereof.

 

e.       
Severability. The provisions of this Agreement are intended to be severable. If any provision of this Agreement shall
be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability thereof in
any other jurisdiction or the remaining provisions hereof in any jurisdiction.

 

f.       
Headings. The headings of this Agreement are for purposes of reference only and shall not limit or otherwise
affect the meaning hereof.

 

g.      
Reference to and Effect on the Credit Agreement and the Other Loan Documents. On and after the Effective Date, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “herein” or words of like
import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”,
 “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference
to the Credit Agreement as amended by this Agreement. Except as specifically amended by this Agreement, the Credit Agreement and
the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed and this Agreement shall not
be considered a novation. The execution, delivery and performance of this Agreement shall not constitute a waiver of any provision
of, or operate as a waiver of any right, power or remedy of CoBank under, the Credit Agreement or any of the other Loan Documents.
This Agreement shall be deemed to be a Loan Document as defined in the Credit Agreement and is subject to the provisions thereof.

 

 

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blank]

 

 

    3

     

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be executed by a duly authorized officer as of the date first above written.

 

	 	OTELCO INC., as the Borrower	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Curtis L. Garner, Jr.	 
	 	 	Curtis L. Garner, Jr.	 
	 	 	Chief Financial Officer and Secretary	 
	 	 	 	 
	 	BLOUNTSVILLE TELEPHONE LLC, as a Guarantor
	 	BRINDLEE MOUNTAIN TELEPHONE LLC, as a Guarantor
	 	CRC COMMUNICATIONS LLC, as a Guarantor 
	 	GRANBY TELEPHONE LLC, as a Guarantor 
	 	I-LAND INTERNET SERVICES LLC, as a Guarantor
	 	MID-MAINE TELECOM LLC, as a Guarantor 
	 	MID-MAINE TELPLUS LLC, as a Guarantor
	 	OTELCO MID-MISSOURI LLC, as a Guarantor 
	 	OTELCO TELECOMMUNICATIONS LLC, as a Guarantor 
	 	OTELCO TELEPHONE LLC, as a Guarantor 
	 	PINE TREE TELEPHONE LLC, as a Guarantor 
	 	SACO RIVER TELEPHONE LLC, as a Guarantor 
	 	SHOREHAM TELEPHONE LLC, as a Guarantor
	 	HOPPER TELECOMMUNICATIONS LLC, as a Guarantor
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Curtis L. Garner, Jr.	 
	 	 	Curtis L. Garner, Jr.	 
	 	 	Chief Financial Officer and Secretary	 
	 	 	 	 

 

    
[Agreement Regarding Amendments to Credit Agreement – Otelco Inc.]

     

    

 

	 	COBANK, ACB, as a Lender and Administrative Agent
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin Oliver	 
	 	 	Kevin Oliver	 
	 	 	Managing Director	 

 

    
[Agreement Regarding Amendments to Credit Agreement – Otelco Inc.]

     

    

 

	 	AGFIRST FARM CREDIT BANK, as a Voting  Participant

                                                       pursuant to the provisions of Section 11.7

	 	 	 	 	 
	 	 	 	 	 
	 	By: 	/s/ Christopher R. Reynolds	 
	 	 	Name: 	Christopher R. Reynolds	 
	 	 	Title: 	Assistant Vice President	 

 

    
[Agreement Regarding Amendments to Credit Agreement – Otelco Inc.]

     

    

 

	 	AMERICAN AGCREDIT, FLCA, as a Voting Participant

                                                       pursuant to the provisions of Section 11.7

	 	 	 	 	 
	 	 	 	 	 
	 	By: 	/s/ Daniel K. Hansen	 
	 	 	Name: 	Daniel K. Hansen 	 
	 	 	Title: 	Vice President	 

 

    
[Agreement Regarding Amendments to Credit Agreement – Otelco Inc.]

     

    

 

	 	FARM CREDIT SERVICES OF AMERICA, FLCA, as a

                                                       Voting
Participant pursuant to the provisions of Section 11.7

	 	 	 	 	 
	 	 	 	 	 
	 	By: 	/s/ Nicholas King	 
	 	 	Name: 	Nicholas King 	 
	 	 	Title: 	Assistant Vice President	 

 

    
[Agreement Regarding Amendments to Credit Agreement – Otelco Inc.]

     

    

 

	 	FARM CREDIT WEST, FLCA, as a Voting Participant

                                                       pursuant to the provisions of Section 11.7

	 	 	 	 	 
	 	 	 	 	 
	 	By: 	/s/ Robert Stornetta	 
	 	 	 Name: 	Robert Stornetta 	 
	 	 	Title: 	Senior Vice President	 

 

    
[Agreement Regarding Amendments to Credit Agreement – Otelco Inc.]

     

    

 

	 	NORTHWEST FARM CREDIT SERVICES, FLCA, as a

                                                       Voting
Participant pursuant to the provisions of Section 11.7

	 	 	 	 	 
	 	 	 	 	 
	 	By: 	/s/ Jeremy A. Roewe	 
	 	 	Name: 	Jeremy A. Roewe 	
	 	 	Title: 	V.P.	

 

    
[Agreement Regarding Amendments to Credit Agreement – Otelco Inc.]cffi_Ex_4_1

		

			EXHIBIT 4.1

		

		

			 

		

		
			DESCRIPTION OF COMMON STOCK
		

		
			
		

		
			The following summary description of the material features of the common stock, par value $1.00 per share (the “common stock”), of C&F Financial Corporation (“C&F”) does not purport to be complete and is in all respects subject to, and qualified in its entirety by reference to, the applicable provisions of Virginia law and by C&F’s Amended and Restated Articles of Incorporation, effective March 7, 1994 and further amended January 14, 2009 (the “Articles”) and C&F’s Amended and Restated Bylaws, as adopted February 23, 2016 (the “Bylaws”).  C&F’s Articles and Bylaws are included as exhibits to the Annual Report on Form 10-K of which this exhibit is a part.
		

		
			General. Each share of C&F common stock has the same relative rights as, and is identical in all respects to, each other share of C&F common stock. C&F common stock is traded on the Nasdaq Global Select Market under the symbol “CFFI.” The transfer agent and registrar for C&F common stock is American Stock Transfer & Trust Company, LLC, of P.O. Box 391, 59 Maiden Lane, Plaza Level, New York, New York 10038.  All of the outstanding shares of common stock are, and any common stock issued and sold under the prospectus will be, fully paid and nonassessable.
		

		
			Dividends and Liquidation Rights. Holders of C&F common stock are entitled to receive dividends as may be declared by C&F’s Board of Directors (the “Board”) out of funds legally available therefor. The payment of distributions by C&F is subject to the restrictions of Virginia law applicable to the declaration of distributions by a corporation. A Virginia corporation generally may not authorize and make distributions if, after giving effect to the distribution, it would be unable to meet its debts as they become due in the usual course of business or if the corporation’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if it were dissolved at that time, to satisfy the preferential rights of shareholders whose rights are superior to the rights of those receiving the distribution. In addition, the payment of distributions to common shareholders is subject to any prior rights of outstanding preferred stock.
		

		
			Consequently, upon liquidation, dissolution or winding up of C&F, holders of shares of C&F common stock may receive pro rata assets, in cash or kind, if any, available for distribution after the payment of creditors and satisfaction of the preferences of any class or series of preferred stock outstanding at the time of liquidation. 
		

		
			In addition, as a bank holding company, C&F’s ability to pay dividends is affected by the ability of C&F Bank, its Virginia-chartered banking subsidiary, to pay dividends to the holding company. The ability of C&F Bank, as well as C&F, to pay dividends in the future is, and could be further, influenced by bank regulatory requirements and capital guidelines.
		

		
			Voting Rights. The holders of C&F common stock are entitled to one vote per share. A quorum at any meeting of C&F shareholders is a majority of the votes entitled to be cast, represented in person or by proxy. If a quorum exists, action on a matter is approved by a majority of the votes cast within the voting group, unless a greater vote is required by law or C&F’s Articles, except that in elections of directors those receiving the greatest number of votes shall be elected even though less than a majority. C&F shareholders are not entitled to cumulative voting rights in the election of C&F directors. 
		

		
			Directors and Classes of Directors.  C&F’s Board is divided into three classes, apportioned as evenly as possible, with directors serving staggered three-year terms.  Currently, the C&F Board consists of 11 directors.  Under C&F’s Articles, the C&F Board must consist of a minimum of five and a maximum of 15 directors, and the C&F Board may increase the number of directors without shareholder approval.  Any director of C&F may be removed only for cause and with the affirmative vote of at least two-thirds of the outstanding shares of C&F common stock entitled to vote.
		

		
			

		 

		

		
			No Preemptive Rights; Redemption and Assessment. Holders of C&F common stock have no preemptive rights to subscribe for any additional securities of any class that C&F may issue, nor any conversion, redemption or sinking fund rights. The outstanding shares of C&F common stock are fully paid and nonassessable. The rights and privileges of holders of C&F common stock are subject to any preferences that the C&F Board may set for any series of C&F preferred stock that may be issued by C&F in the future. 
		

		
			Certain Anti-Takeover Provisions of C&F’s Articles and Bylaws
		

		
			General. Certain provisions of the Virginia Stock Corporation Act (the “Virginia SCA”) and C&F’s Articles and Bylaws may discourage attempts to acquire control of C&F, respectively, that the majority of C&F’s shareholders may determine was in their best interests. These provisions also may render the removal of one or all directors more difficult or deter or delay corporate changes of control that the C&F Board did not approve.
		

		
			Classified Board. The provisions of C&F's Articles providing for classification of the Board into three separate classes may have certain anti-takeover effects.
		

		
			Authorized Preferred Stock. C&F's Articles authorize the issuance of preferred stock. The C&F Board may, subject to application of Virginia law and federal banking regulations, authorize the issuance of preferred stock at such times, for such purposes, and for such consideration as it may deem advisable without further shareholder approval. The issuance of preferred stock under certain circumstances may have the effect of discouraging an attempt by a third party to acquire control of C&F by, for example, authorizing the issuance of a series of preferred stock with rights and preferences designed to impede the proposed transaction.
		

		
			Supermajority Voting Provisions. The Virginia SCA provides that, unless a corporation's articles of incorporation provide for a greater or lesser vote, certain significant corporate actions must be approved by the affirmative vote of more than two-thirds of all the votes entitled to be cast on the matter. Certain corporate actions requiring a more than two-thirds vote include:
		

		
			• adoption of plans of merger or share exchange; 
		

		
			• sales of all or substantially all of a corporation's assets other than in the ordinary course of business; and 
		

		
			• adoption of plans of dissolution. 
		

		
			        The Virginia SCA provides that a corporation's articles may either increase the vote required to approve those actions or may decrease the vote required to not less than a majority of all the votes cast by each voting group entitled to vote at a meeting at which a quorum of the voting group exists. 
		

		
			        C&F’s Articles state that the actions outlined above must be approved by the vote of a majority of all the votes entitled to be cast on such transactions by each voting group entitled to vote on the transaction at a meeting at which a quorum of the voting group is present, provided that the transaction has been approved and recommended by at least two-thirds of the directors in office at the time of such approval and recommendation. If the transaction is not so approved and recommended by two-thirds of the directors in office, then the transaction must be approved by the affirmative vote of 80% or more of all of the votes entitled to be cast on such transaction by each voting group entitled to vote. 
		

		
			Anti-takeover Statutes.  Virginia has two anti-takeover statutes in force, the Affiliated Transactions Statute and the Control Share Acquisitions Statute. 
		

		
			        The Affiliated Transaction Statute of the Virginia SCA (Va. Code § 13.1-725 et seq.) contains provisions governing "affiliated transactions." These include various transactions such as mergers, share exchanges, sales, leases, or other dispositions of material assets, issuances of securities, dissolutions, and similar transactions with an "interested shareholder." An interested shareholder is generally the beneficial owner of more than 10% of any class of a corporation's outstanding voting shares. During the three years following the date a shareholder becomes an 

		 

interested shareholder, any affiliated transaction with the interested shareholder must be approved by both a majority (but not less than two) of the "disinterested directors" (those directors who were directors before the interested shareholder became an interested shareholder or who were recommended for election by a majority of the disinterested directors) and by the affirmative vote of the holders of two-thirds of the corporation's voting shares other than shares beneficially owned by the interested shareholder. These requirements do not apply to affiliated transactions if, among other things, a majority of the disinterested directors approve the interested shareholder's acquisition of voting shares making such a person an interested shareholder before such acquisition. Beginning three years after the shareholder becomes an interested shareholder, the corporation may engage in an affiliated transaction with the interested shareholder if:
		

		
			• the transaction is approved by the holders of two-thirds of the corporation's voting shares, other than shares beneficially owned by the interested shareholder; 
		

		
			 
		

		
			• the affiliated transaction has been approved by a majority of the disinterested directors; or 
		

		
			 
		

		
			• subject to certain additional requirements, in the affiliated transaction the holders of each class or series of voting shares will receive consideration meeting specified fair price and other requirements designed to ensure that all shareholders receive fair and equivalent consideration, regardless of when they tendered their shares. 
		

		
			        Under the Virginia SCA's Control Share Acquisitions Statute (Va. Code § 13.1-728.1 et seq.), voting rights of shares of stock of a Virginia corporation acquired by an acquiring person or other entity at ownership levels of 20%, 331/3%, and 50% of the outstanding shares may, under certain circumstances, be denied. The voting rights may be denied:
		

		
			• unless conferred by a special shareholder vote of a majority of the outstanding shares entitled to vote for directors, other than shares held by the acquiring person and officers and directors of the corporation; or 
		

		
			 
		

		
			• among other exceptions, such acquisition of shares is made pursuant to a merger agreement with the corporation or the corporation's articles of incorporation or bylaws permit the acquisition of such shares before the acquiring person's acquisition thereof. 
		

		
			        If authorized in the corporation's articles of incorporation or bylaws, the statute also permits the corporation to redeem the acquired shares at the average per share price paid for such shares if the voting rights are not approved or if the acquiring person does not file a "control share acquisition statement" with the corporation within 60 days of the last acquisition of such shares. If voting rights are approved for control shares comprising more than 50% of the corporation's outstanding stock, objecting shareholders may have the right to have their shares repurchased by the corporation for "fair value." 
		

		
			        A corporation may elect to opt out of the application of both the Affiliated Transactions Statute and the Control Share Acquisitions Statute by adopting a provision in its articles of incorporation or bylaws. Further, the Affiliated Transactions Statute does not apply to any corporation that has fewer than 300 shareholders of record (unless the reduction in the number of shareholders is the result of action by an interested shareholder). 
		

		
			      C&F has not elected to opt out of the Affiliated Transactions Statute or the Control Share Acquisitions Statute.  
		

		
			Amendments to C&F’s Articles and Bylaws.   The Virginia SCA generally requires that in order for an amendment to the articles of incorporation to be adopted it must be approved by each voting group entitled to vote on the proposed amendment by more than two-thirds of all the votes entitled to be cast by that voting group, unless the Virginia SCA otherwise requires a greater vote, or the articles of incorporation provide for a greater or lesser vote, or a vote by separate voting groups. However, under the Virginia SCA, no amendment to the articles of incorporation may be approved by a vote that is less than a majority of all the votes cast on the amendment by each voting group entitled to vote at a meeting at which a quorum of the voting group exists. 
		

		
			

		 

		

		
			Under the Virginia SCA, unless another process is set forth in the articles of incorporation or bylaws, a majority of the directors or, if a quorum exists, a majority of the shareholders present and entitled to vote may adopt, amend or repeal the bylaws. C&F’s Articles state that an amendment to the Articles must be approved by the vote of a majority of all the votes entitled to be cast on the amendment by each voting group entitled to vote on the amendment at a meeting at which a quorum of the voting group is present, provided that the amendment has been approved and recommended by at least two-thirds of the directors in office at the time of such approval and recommendation. If the amendment is not so approved and recommended, then the amendment must be approved by the vote of 80% or more of all votes entitled to be cast on the amendment by each voting group entitled to vote thereon. 
		

		
			C&F's Bylaws may be amended or repealed by the C&F Board except to the extent that (i) such power is reserved exclusively to the shareholders by law or C&F's Articles or (ii) the shareholders in adopting or amending particular bylaws provide expressly that the C&F Board may not amend or repeal the same. C&F's Bylaws may be amended or repealed by the shareholders even though the same also may be amended or repealed by its Board. 
		

		
			Dissenters’ Appraisal Rights.  The Virginia SCA provides appraisal rights to shareholders of a Virginia corporation in certain circumstances, including upon consummation of a merger to which the corporation is a party if shareholder approval is required for the merger under the Virginia SCA. The Virginia SCA further provides that appraisal rights are not available to holders of shares of any class or series of shares of a Virginia corporation in a merger when the stock is either listed on a national securities exchange, such as the Nasdaq Global Select Market, or is held by at least 2,000 shareholders of record and has a public float of at least $20 million. Despite this exception, appraisal rights will be available to holders of common stock of a Virginia corporation in a merger if:
		

		
			• the articles of incorporation provide for appraisal rights regardless of an available exception; 
		

		
			 
		

		
			• in the case of a merger or share exchange, shareholders are required by the terms of the merger to accept anything for their shares other than cash, shares of the surviving or acquiring corporation, or shares of another corporation that are either listed on a national securities exchange or held by more than 2,000 shareholders of record having a public float of at least $20 million, or a combination of cash or such shares; 
		

		
			or 
		

		
			 
		

		
			• the merger is an "affiliated transaction," as described in the section above entitled "—Anti-takeover Provisions," and it has not been approved by a majority of the disinterested directors. 
		

		
			 
		

		
			C&F’s common stock is listed on the NASDAQ Global Select Market. Therefore, unless one of the exceptions outlined above applies to a given transaction, holders of C&F’s common stock are not entitled to dissenters’ appraisal rights.
		

		
			Director and Officer Exculpation. The Virginia SCA provides that in any proceeding brought by or in the right of a corporation or brought by or on behalf of shareholders of the corporation, the damages assessed against an officer or director arising out of a single transaction, occurrence or course of conduct may not exceed the lesser of (a) the monetary amount, including the elimination of liability, specified in the articles of incorporation or, if approved by the shareholders, in the bylaws as a limitation on or elimination of the liability of the officer or director, or (b) the greater of (i) $100,000 or (ii) the amount of cash compensation received by the officer or director from the corporation during the twelve months immediately preceding the act or omission for which liability was imposed. The liability of an officer or director is not limited under the Virginia SCA or a corporation's articles of incorporation and bylaws if the officer or director engaged in willful misconduct or a knowing violation of the criminal law or of any federal or state securities law. 
		

		
			C&F’s Articles provide that, to the full extent that the Virginia SCA permits the limitation or elimination of liability of directors or officers, a director or officer of C&F is not liable to C&F or its shareholders for monetary damages. 
		

		
			

		 

		

		
			Indemnification. C&F’s Articles provide that, to the full extent permitted by the Virginia SCA, C&F is required to indemnify a director or officer against liabilities, fines, penalties and claims imposed upon or asserted against him or her by reason of having been a director or officer and against all expenses reasonably incurred by him or her in connection therewith, except in relation to matters as to which he or she is liable by reason of his or her willful misconduct or knowing violation of criminal law. C&F’s Board is empowered, by a majority vote of a quorum of disinterested directors, to contract in advance to indemnify any director or officer, as set forth above.

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