Document:

EX-10.3

 Exhibit 10.3 

ADMINISTRATION AGREEMENT 

ADMINISTRATION AGREEMENT, dated as of March 17, 2022 (this “Administration Agreement”), is entered into by and between DTE
ELECTRIC COMPANY, a Michigan corporation (“DTE Electric”), as administrator (in such capacity, the “Administrator”), and DTE ELECTRIC SECURITIZATION FUNDING I LLC, a Delaware limited liability company (the
“Issuer”). 
 Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms
in Appendix A to the Indenture (as defined below). Not all terms defined in Appendix A to the Indenture are used in this Administration Agreement. The rules of construction set forth in Appendix A to the Indenture
shall apply to this Administration Agreement. 
 W I T N E S S E T H: 

WHEREAS, the Issuer is issuing Securitization Bonds pursuant to that certain Indenture (including Appendix A thereto), dated as of the
date hereof (the “Indenture”), by and between the Issuer and The Bank of New York Mellon, in its capacity as indenture trustee (the “Indenture Trustee”) and in its separate capacity as a securities intermediary and
account bank (the “Securities Intermediary”), as the same may be amended, restated, supplemented or otherwise modified from time to time, and the Series Supplement; 

WHEREAS, the Issuer has entered into certain agreements in connection with the issuance of the Securitization Bonds, including (i) the
Indenture, (ii) the Securitization Property Servicing Agreement, dated as of March 17, 2022 (the “Servicing Agreement”), by and between the Issuer and DTE Electric, as Servicer, (iii) the Securitization Property Purchase
and Sale Agreement, dated as of March 17, 2022 (the “Sale Agreement”), between the Issuer and DTE Electric, as Seller, and (iv) the other Basic Documents to which the Issuer is a party; 

WHEREAS, pursuant to the Basic Documents, the Issuer is required to perform, or cause to be performed, certain duties in connection with the
Basic Documents, the Securitization Bonds and the Securitization Bond Collateral pledged to the Indenture Trustee pursuant to the Indenture; 

WHEREAS, the Issuer has no employees (other than its officers and managers) and does not intend to hire any employees, and consequently
desires to have the Administrator perform certain of the duties of the Issuer referred to in the preceding clauses and to provide such additional services consistent with the terms of this Administration Agreement and the Basic Documents as the
Issuer may from time-to-time request; and 
 WHEREAS, the
Administrator has the capacity to provide the services and the facilities required thereby and is willing to perform such services and provide such facilities for the Issuer on the terms set forth herein; 

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

Section 1. Duties of the Administrator; Management Services. The Administrator hereby agrees to provide the following corporate
management services to the Issuer and to cause third parties to provide professional services required for or contemplated by such services in accordance with the provisions of this Administration Agreement: 

(a) furnish the Issuer with ordinary clerical, bookkeeping and other corporate administrative services necessary and appropriate for the
Issuer, including, without limitation, the following services: 
 (i) maintain at the Premises (as defined below) general
accounting records of the Issuer (the “Account Records”), subject to year-end audit (if required by law), in accordance with generally accepted accounting principles, separate and apart from
its own accounting records, prepare or cause to be prepared such quarterly and annual financial statements as may be necessary or appropriate and, if required by law, arrange for year-end audits of the
Issuer’s financial statements by the Issuer’s independent accountants; 

  
 1 

 (ii) prepare and, after execution by the Issuer, file with the Securities
and Exchange Commission (the “SEC”) and any applicable state agencies documents required to be filed by the Issuer with the SEC and any applicable state agencies, including, without limitation, periodic reports required to be filed
under the Securities Exchange Act of 1934, as amended; 
 (iii) prepare for execution by the Issuer and cause to be filed
such income, franchise or other tax returns of the Issuer as shall be required to be filed by applicable law (the “Tax Returns”) and cause to be paid on behalf of the Issuer from the Issuer’s funds any taxes required to be paid
by the Issuer under applicable law; 
 (iv) prepare or cause to be prepared for execution by the Issuer’s Managers
minutes of the meetings of the Issuer’s Managers and such other documents deemed appropriate by the Issuer to maintain the separate limited liability company existence and good standing of the Issuer (the “Company Minutes”) or
otherwise required under the Basic Documents (together with the Account Records, the Tax Returns, the Company Minutes, the LLC Agreement, and the Certificate of Formation, the “Issuer Documents”); and any other documents deliverable
by the Issuer thereunder or in connection therewith; and 
 (v) hold, maintain and preserve at the Premises (or such other
place as shall be required by any of the Basic Documents) executed copies (to the extent applicable) of the Issuer Documents and other documents executed by the Issuer thereunder or in connection therewith; 

(b) take such actions on behalf of the Issuer, as are necessary or desirable for the Issuer to keep in full effect its existence, rights and
franchises as a limited liability company under the laws of the State of Delaware and obtain and preserve its qualification to do business in each jurisdiction in which it becomes necessary to be so qualified; 

(c) take such actions on the behalf of the Issuer as are necessary for the issuance and delivery of Securitization Bonds and for the payment
of principal of, and interest on, the Securitization Bonds and Ongoing Other Qualified Costs, including to deliver the Distribution Instructions in accordance with Section 8.02(e) of the Indenture; 

(d) provide for the performance by the Issuer of its obligations under each of the Basic Documents, and prepare, or cause to be prepared, all
documents, reports, filings, instruments, notices, certificates and opinions that it shall be the duty of the Issuer to prepare, file or deliver pursuant to the Basic Documents; 

(e) to the full extent allowable under applicable law, enforce each of the rights of the Issuer under the Basic Documents, at the direction of
the Indenture Trustee; 
 (f) provide for the defense, at the direction of the Issuer’s Managers, of any action, suit or proceeding
brought against the Issuer or affecting the Issuer or any of its assets; 
 (g) provide office space (the “Premises”) for
the Issuer and such reasonable ancillary services as are necessary to carry out the obligations of the Administrator hereunder, including telecopying, duplicating and word processing services; 

(h) undertake such other administrative services as may be appropriate, necessary or requested by the Issuer; 

(i) provide the Indenture Trustee with copies of the filings by the Issuer under the Securities Exchange Act of 1934, as amended; and 

(j) provide such other services as are incidental to the foregoing or as the Issuer and the Administrator may agree. 

In providing the services under this Section 1 and as otherwise provided under this Administration Agreement, the
Administrator will not knowingly take any actions on behalf of the Issuer which (i) the Issuer is prohibited from taking under the Basic Documents, or (ii) would cause the Issuer to be in violation of any U.S. federal, state or local law
or the LLC Agreement. 

  
 2 

 In performing its duties, hereunder, the Administrator shall use the same degree of care and
diligence that the Administrator exercises with respect to performing such duties for its own account and, if applicable, for others. 

Section 2. Compensation. 

(a) As compensation for the performance of the Administrator’s obligations under this Administration Agreement (including the compensation
of Persons serving as Manager(s), other than the Independent Manager(s), and officers of the Issuer, but, for the avoidance of doubt, excluding the performance by DTE Electric of its obligations in its capacity as Servicer), the Administrator shall
be entitled to $50,000 annually (the “Administration Fee”), payable by the Issuer in installments of $25,000 on each Payment Date. In addition, the Administrator shall be entitled to be reimbursed by the Issuer for all costs and
expenses of services performed by unaffiliated third parties and actually incurred by the Administrator in connection with the performance of its obligations under this Administration Agreement in accordance with Section 3
(but, for the avoidance of doubt, excluding any such costs and expenses incurred by DTE Electric in its capacity as Servicer), to the extent that such costs and expenses are supported by invoices or other customary documentation and are reasonably
allocated to the Issuer (“Reimbursable Expenses”). 
 (b) In the event that one or more series of Additional Securitization
Bonds (i.e., other than the Securitization Bonds) is issued by the Issuer, the administration fees and other costs and expenses described above payable by the Issuer may be assessed to each series of securitization bonds (including the
Securitization Bonds) on a pro rata basis, based upon the respective outstanding principal amounts of each series of securitization bonds, and the Administration Agreement may be amended to provide that DTE Electric will provide administrative
services to the Issuer with respect to any such Additional Securitization Bonds. 
 Section 3. Third Party Services. Any
services required for or contemplated by the performance of the above-referenced services by the Administrator to be provided by unaffiliated third parties (including independent auditors’ fees and counsel fees) may, if provided for or
otherwise contemplated by the Financing Order and if the Issuer deems it necessary or desirable, be arranged by the Issuer or by the Administrator at the direction (which may be general or specific) of the Issuer. Costs and expenses associated with
the contracting for such third-party professional services may be paid directly by the Issuer or paid by the Administrator and reimbursed by the Issuer in accordance with Section 2, or otherwise as the Administrator and the
Issuer may mutually arrange. 
 Section 4. Additional Information to be Furnished to the Issuer. The Administrator shall furnish
to the Issuer from time to time such additional information regarding the Securitization Bond Collateral as the Issuer shall reasonably request. 

Section 5. Independence of the Administrator. For all purposes of this Administration Agreement, the Administrator shall be an
independent contractor and shall not be subject to the supervision of the Issuer with respect to the manner in which it accomplishes the performance of its obligations hereunder. Unless expressly authorized by the Issuer, the Administrator shall
have no authority, and shall not hold itself out as having the authority, to act for or represent the Issuer in any way and shall not otherwise be deemed an agent of the Issuer. 

Section 6. No Joint Venture. Nothing contained in this Administration Agreement (a) shall constitute the Administrator and
the Issuer as partners or co-members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (b) shall be construed to impose any liability as such on
either of them or (c) shall be deemed to confer on either of them any express, implied or apparent authority to incur any obligation or liability on behalf of the other. 

Section 7. Other Activities of Administrator. Nothing herein shall prevent the Administrator or any of its shareholders,
directors, officers, employees, subsidiaries or affiliates from engaging in other businesses or, in its sole discretion, from acting in a similar capacity as an administrator for any other Person even though such Person may engage in business
activities similar to those of the Issuer. 

  
 3 

 Section 8. Term of Agreement; Resignation and Removal of Administrator. 

(a) This Administration Agreement shall continue in force until the Payment in Full of the Securitization Bonds and any other amount which may
become due and payable under the Indenture, upon which event this Administration Agreement shall automatically terminate. 
 (b) Subject to
Sections 8(e) and 8(f), the Administrator may resign its duties hereunder by providing the Issuer and the Rating Agencies with at least sixty (60) days’ prior written notice. 

(c) Subject to Sections 8(e) and 8(f), the Issuer may remove the Administrator without cause by providing the Administrator and the Rating
Agencies with at least sixty (60) days’ prior written notice. 
 (d) Subject to Sections 8(e) and 8(f), at the sole option of the
Issuer, the Administrator may be removed immediately upon written notice of termination from the Issuer to the Administrator and the Rating Agencies if any of the following events shall occur: 

(i) the Administrator shall default in the performance of any of its duties under this Administration Agreement and, after
notice of such default, shall fail to cure such default within ten (10) days (or, if such default cannot be cured in such time, shall (A) fail to give within ten (10) days such assurance of cure as shall be reasonably satisfactory to
the Issuer and (B) fail to cure such default within thirty (30) days thereafter); 
 (ii) a court of competent
jurisdiction shall enter a decree or order for relief, and such decree or order shall not have been vacated within sixty (60) days, in respect of the Administrator in any involuntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or such court shall appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the Administrator or any substantial part of its property or order the winding-up or liquidation of its affairs; or 
 (iii) the Administrator shall commence a
voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, shall consent to the appointment of a receiver,
liquidator, assignee, trustee, custodian, sequestrator or similar official for the Administrator or any substantial part of its property, shall consent to the taking of possession by any such official of any substantial part of its property, shall
make any general assignment for the benefit of creditors or shall fail generally to pay its debts as they become due. 
 The Administrator
agrees that if any of the events specified in clauses (ii) or (iii) of this Section 8(d) shall occur, it shall give written notice thereof to the Issuer and the Indenture Trustee as soon as practicable but in any
event within seven (7) days after the happening of such event. 
 (e) No resignation or removal of the Administrator pursuant to
this Section 8 shall be effective until a successor Administrator has been appointed by the Issuer, and such successor Administrator has agreed in writing to be bound by the terms of this Administration Agreement in
the same manner as the Administrator is bound hereunder. 
 (f) The appointment of any successor Administrator shall be effective only after
satisfaction of the Rating Agency Condition with respect to the proposed appointment. 
 Section 9. Action upon Termination,
Resignation or Removal. Promptly upon the effective date of termination of this Administration Agreement pursuant to Section 8(a), the resignation of the Administrator pursuant to Section 8(b) or
the removal of the Administrator pursuant to Section 8(c) or (d), the Administrator shall be entitled to be paid a pro-rated portion of the annual fee described in
Section 2 hereof through the date of termination and all Reimbursable Expenses incurred by it through the date of such termination, resignation or removal. The Administrator

  
 4 

 
shall forthwith upon such termination pursuant to Section 8(a) deliver to the Issuer all property and documents of or relating to the Securitization Bond Collateral then
in the custody of the Administrator. In the event of the resignation of the Administrator pursuant to Section 8(b) or the removal of the Administrator pursuant to Section 8(c) or (d),
the Administrator shall cooperate with the Issuer and take all reasonable steps requested to assist the Issuer in making an orderly transfer of the duties of the Administrator. 

Section 10. Administrator’s Liability. Except as otherwise provided herein, the Administrator assumes no liability other than
to render or stand ready to render the services called for herein, and neither the Administrator nor any of its shareholders, directors, officers, employees, subsidiaries or affiliates shall be responsible for any action of the Issuer or any of the
members, managers, officers, employees, subsidiaries or affiliates of the Issuer (other than the Administrator itself). The Administrator shall not be liable for nor shall it have any obligation with regard to any of the liabilities, whether direct
or indirect, absolute or contingent, of the Issuer or any of the members, managers, officers, employees, subsidiaries or affiliates of the Issuer (other than the Administrator itself). 

Section 11. Indemnity. 

(a) Subject to the priority of payments set forth in the Indenture, the Issuer shall indemnify the Administrator, its shareholders, directors,
officers, employees and affiliates against all losses, claims, damages, penalties, judgments, liabilities and expenses (including, without limitation, all expenses of litigation or preparation therefor whether or not the Administrator is a party
thereto) which any of them may pay or incur arising out of or relating to this Administration Agreement and the services called for herein; provided, however, such indemnity shall not apply to any such loss, claim, damage, penalty,
judgment, liability or expense resulting from the Administrator’s gross negligence or willful misconduct in the performance of its obligations hereunder. 

(b) The Administrator shall indemnify the Issuer, its members, managers, officers and employees against all losses, claims, damages,
penalties, judgments, liabilities and expenses (including, without limitation, all expenses of litigation or preparation therefor whether or not the Issuer is a party thereto) that any of them may incur as a result of the Administrator’s gross
negligence or willful misconduct in the performance of its obligations hereunder. 
 Section 12. Notices. Any notice, report or
other communication given hereunder shall be in writing and addressed as follows: 
 (a) if to the Issuer, to DTE Electric Securitization
Funding I LLC, at One Energy Plaza, Detroit, Michigan 48226-1279, Attention: Timothy J. Lepczyk, Secretary, Telephone: (313) 235-6118, Email: timothy.lepczyk@dteenergy.com; 

(b) if to the Administrator, to DTE Electric Company, at One Energy Plaza, Detroit, Michigan 48226-1279, Attention: Timothy J. Lepczyk,
Assistant Treasurer, Telephone: (313) 235-6118, Email: timothy.lepczyk@dteenergy.com; and 
 (c) if
to the Indenture Trustee, to the Corporate Trust Office; 
 or to such other address as any party shall have provided to the other parties in writing. Any
notice required to be in writing hereunder shall be deemed given if such notice is mailed by certified mail, postage prepaid, delivered via overnight courier, or hand-delivered or delivered by electronic means of communication (including email) to
the address of such party as provided above. 
 Section 13. Amendments. This Administration Agreement may be amended from time
to time by a written amendment duly executed and delivered by each of the Issuer and the Administrator, with ten Business Days’ prior written notice given to the Rating Agencies, but without the consent of any of the Holders, (i) to cure
any ambiguity, to correct or supplement any provisions in this Administration Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in this Administration Agreement or of modifying in
any manner the rights of the Holders; provided, however, that the Issuer and the Indenture Trustee shall receive an Officer’s Certificate stating that the execution of such amendment shall not adversely affect in any material respect the
interests of any Holder and that all conditions precedent have been satisfied or (ii) to conform the provisions hereof to the description of this Administration Agreement in the Prospectus. 

  
 5 

 In addition, this Administration Agreement may be amended from time to time by a written
amendment duly executed and delivered by each of the Issuer and the Administrator with the prior written consent of the Indenture Trustee and the satisfaction of the Rating Agency Condition; provided that any such amendment may not adversely affect
the interest of any Holder in any material respect without the consent of the Holders of a majority of the outstanding principal amount of the Securitization Bonds. Promptly after the execution of any such amendment or consent, the Issuer shall
furnish copies of such amendment or consent to each of the Rating Agencies. 
 The Administration Agreement may also be amended in
accordance with the provisions of Section 2(b) hereof. 
 Prior to the execution of any amendment to this
Administration Agreement, the Issuer and the Indenture Trustee shall be entitled to receive and conclusively rely upon an Opinion of Counsel of external counsel stating that such amendment is authorized or permitted by this Administration Agreement
and that all conditions precedent have been satisfied. 
 Section 14. Successors and Assigns. This Administration Agreement may
not be assigned by the Administrator unless such assignment is previously consented to in writing by the Issuer and the Indenture Trustee and subject to the satisfaction of the Rating Agency Condition in connection therewith. Any assignment with
such consent and satisfaction, if accepted by the assignee, shall bind the assignee hereunder in the same manner as the Administrator is bound hereunder. Notwithstanding the foregoing, this Administration Agreement may be assigned by the
Administrator without the consent of the Issuer or the Indenture Trustee and without satisfaction of the Rating Agency Condition to a corporation or other organization that is a successor (by merger, reorganization, consolidation or purchase of
assets) to the Administrator, including without limitation any Permitted Successor; provided, that such successor or organization executes and delivers to the Issuer an agreement in which such corporation or other organization agrees to
be bound hereunder by the terms of said assignment in the same manner as the Administrator is bound hereunder. Subject to the foregoing, this Administration Agreement shall bind any successors or assigns of the parties hereto. Upon satisfaction of
all of the conditions of this Section 14, the preceding Administrator shall automatically and without further notice be released from all of its obligations hereunder. 

Section 15. GOVERNING LAW. THIS ADMINISTRATION AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

Section 16. Headings. The Section headings hereof have been inserted for convenience of reference only and shall not be construed
to affect the meaning, construction or effect of this Administration Agreement. 
 Section 17. Counterparts. This Administration
Agreement may be executed in counterparts, each of which when so executed shall be an original, but all of which together shall constitute but one and the same Administration Agreement. 

Section 18. Severability. Any provision of this Administration Agreement that is prohibited or unenforceable in any jurisdiction
shall be ineffective to the extent of such prohibition or unenforceability without invalidating 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. 
 Section 19. Nonpetition Covenant. Notwithstanding any prior termination of this
Administration Agreement, the Administrator covenants that it shall not, prior to the date which is one year and one day after Payment in Full of the Securitization Bonds, acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or sustaining an involuntary case against the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Issuer or any substantial part of its property or ordering the winding up or liquidation of the affairs of the Issuer. 

Section 20. Assignment to Indenture Trustee. The Administrator hereby acknowledges and consents to any mortgage, pledge,
assignment and grant of a security interest by the Issuer to the Indenture Trustee for the benefit of the Secured Parties pursuant to the Indenture of any or all of the Issuer’s rights hereunder and the assignment of any or all of the
Issuer’s rights hereunder to the Indenture Trustee for the benefit of the Secured Parties. For the avoidance of doubt, the Indenture Trustee is a third party beneficiary of this Administration Agreement and is entitled to the rights and
benefits hereunder and may enforce the provisions hereof as if it were a party hereto. 
 {REMAINDER OF PAGE INTENTIONALLY LEFT BLANK} 

  
 6 

 IN WITNESS WHEREOF, the parties have caused this Administration Agreement to be duly
executed and delivered by their respective duly authorized officers as of the day and year first above written. 
  

			
	DTE ELECTRIC SECURITIZATION FUNDING I LLC
	as Issuer
		
	By:	 	  

		 	Name: Timothy J. Lepczyk
		 	Title:   Secretary
	
	 DTE ELECTRIC COMPANY,

as Administrator

		
	By:	 	  

		 	Name: Timothy J. Lepczyk
		 	Title:   Assistant Treasurer

 Signature Page to Administration Agreement 

  
 7​
Exhibit 4.5
​
DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED
PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
​
As of March 4, 2022, Primis Financial Corp. (“PRIMIS”) has one class of securities, our common stock, registered under Section 12 of the Securities Exchange Act of 1934, as amended.
​
DESCRIPTION OF COMMON STOCK
The following description of the terms and provisions of our common stock is qualified in its entirety by reference to our amended Articles of Incorporation, Amended and Restated Bylaws or Virginia law applicable to us. For a more thorough understanding of the terms of our capital stock, you should refer to our amended Articles of Incorporation and Amended and Restated Bylaws, which are included as exhibits to this Annual Report on Form 10-K.
General
We are authorized to issue 50,000,000 shares of capital stock of which 45,000,000 are shares of common stock and 5,000,000 are shares of preferred stock, par value $0.01 per share. As of March 4, 2022, there were 24,575,835 shares of common stock outstanding held by 1,238 holders of record and no shares of preferred stock issued and outstanding. 
Common Stock
General.   Each share of PRIMIS common stock has the same relative rights as, and is identical in all respects to, each other share of PRIMIS common stock. PRIMIS’ common stock is traded on the NASDAQ Global Market under the symbol “FRST” 
Dividends.   PRIMIS’ shareholders are entitled to receive dividends or distributions that its board of directors may declare out of funds legally available for those payments. The payment of distributions by PRIMIS is subject to the restrictions of Virginia law applicable to the declaration of distributions by a corporation. A Virginia corporation generally may not authorize and make distributions if, after giving effect to the distribution, it would be unable to meet its debts as they become due in the usual course of business or if the corporation’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if it were dissolved at that time, to satisfy the preferential rights of shareholders whose rights are superior to the rights of those receiving the distribution. In addition, the payment of distributions to shareholders is subject to any prior rights of outstanding preferred stock.
As a bank holding company, PRIMIS’ ability to pay dividends is affected by the ability of Primis Bank, its bank subsidiary, to pay dividends to the holding company. The ability of Primis Bank, as well as PRIMIS, to pay dividends in the future is, and could be further, influenced by bank regulatory requirements and capital guidelines.
Liquidation Rights.   In the event of any liquidation, dissolution or winding up of PRIMIS, the holders of shares of its common stock will be entitled to receive, after payment of all debts and liabilities of PRIMIS and after satisfaction of all liquidation preferences applicable to any preferred stock, all remaining assets of PRIMIS available for distribution in cash or in kind.
Voting Rights.   The holders of PRIMIS common stock are entitled to one vote per share and, in general, a majority of votes cast with respect to a matter is sufficient to authorize action upon routine matters. Holders of PRIMIS common stock are not entitled to cumulative voting rights. Directors are 

elected by a plurality of the votes cast, and shareholders do not have the right to cumulate their votes in the election of directors.
Directors and Classes of Directors.   PRIMIS’ board of directors is divided into three classes with directors serving staggered three-year terms. Any newly created directorships or any decrease in directorships are apportioned among the classes as evenly as possible. Under PRIMIS’ articles of incorporation, directors may be removed for cause upon the affirmative vote of not less than 75% of the outstanding shares entitled to vote generally in an election of directors. Cause for removal exists only if a director whose removal is proposed has been either declared incompetent by an order of a court, convicted of a felony or of an offense punishable by imprisonment for a term of more than one year, or deemed liable by a court for gross negligence or misconduct in the performance of such director’s duties to PRIMIS.
No Preemptive Rights; Redemption and Assessment.   Holders of shares of PRIMIS will not be entitled to preemptive rights with respect to any shares that may be issued. PRIMIS common stock is not subject to redemption or any sinking fund and the outstanding shares are fully paid and nonassessable.
Anti-Takeover Effects of Certain Provisions in Our Amended Articles of Incorporation and Amended and Restated Bylaws and Virginia Law
Subject to the application of the Virginia Stock Corporation Act (VSCA), the affirmative vote of the holders of more than two thirds of all votes entitled to be cast is generally required with respect to a merger, exchange offer or the sale of all or substantially all of our assets. Under the VSCA and our amended Articles of Incorporation, any action required or permitted to be taken by our shareholders may be taken without a meeting and without a shareholder vote if a written consent is signed by the holders of the shares of outstanding stock having not less than the minimum number of votes that would be necessary to authorize such action at a meeting of shareholders at which all shares entitled to vote on such matter were present and voted.
Virginia law provides for certain restrictions on extraordinary corporate transactions that may discourage the acquisition of control of Virginia corporations. We elected to “opt out” of those protective provisions.
The provisions described below, to the extent applicable, will have the general effect of discouraging, or rendering more difficult, unfriendly takeover or acquisition attempts. Consequently, such provisions would be beneficial to current management in an unfriendly takeover attempt, but could have an adverse effect on shareholders who might wish to participate in such a transaction. However, we believe that such provisions are advantageous to our shareholders in that they will permit management and our shareholders to carefully consider and understand a proposed acquisition, lead to higher offering prices, and require a higher level of shareholder participation in the decision if the transaction is not approved by our board of directors.
Staggered Board and Removal of Directors
One class of our three classes of directors is elected annually. Directors serve for three-year terms. There is no cumulative voting for directors provided for in the amended Articles of Incorporation. As permitted by Virginia law, our amended Articles of Incorporation provide that where a corporation’s directors are elected in classes that a director, or the entire board of directors, only may be removed for cause by the affirmative vote of not less than 75% of the shares entitled to vote generally in an election of directors. The provisions contained in our amended Articles of Incorporation relating to election of directors in staggered three-year classes and the supermajority vote required to remove a director tend to discourage attempts by third parties to acquire us because of the extra time and expense involved and a greater possibility of failure. This also can affect the price that a potential purchaser would be willing to 

2

pay for our common stock, thereby reducing the amount a shareholder would receive in, for example, a tender offer for our common stock.
Special Shareholder Meetings
Our amended Articles of Incorporation also restrict the manner in which special meetings may be called. Under the VSCA, a corporation is permitted to provide for calling of special meetings either in its bylaws or articles of incorporation. Our amended Articles of Incorporation specify that special meetings may be called by our Chairman of the Board or President or by the affirmative vote of three-fourths of the board of directors or by holders of record of not less than 40% of our then outstanding voting shares.
Evaluation of Change in Control Offers
Our amended Articles of Incorporation also provide that when evaluating any offer that may result in a change in control of our company, the board of directors may consider, consistent with the exercise of its fiduciary duties and in connection with the exercise of its judgment in determining what is in the best interests of our company and our shareholders, not only the price or other consideration being offered, but also all other relevant factors including, without limitation, the financial and management resources and future prospects of the other party, the possible effect on our business and the business of our subsidiaries and on our employees, customers, suppliers and creditors and those of our subsidiaries, the effects on the ability of our company to fulfill its corporate objectives as a holding company and on the ability of Primis Bank to fulfill its objectives as a bank, and the effects on the communities in which our facilities are located.
Blank Check Preferred Stock
In addition to common stock, our amended Articles of Incorporation permit the board of directors to issue up to 5,000,000 shares of “blank check” preferred stock. Among other things, the board of directors in issuing a series of preferred stock has the power to determine voting powers, if any, of such series. Such issuance of preferred stock having voting rights could dilute the voting and ownership interest of existing shareholders. Such issuance may have the effect of discouraging unilateral attempts by third parties to obtain control of our company, since the issuance of additional shares of capital stock could be used to dilute the voting power of, or increase the cost to, any person seeking to obtain control of us. This may occur by virtue of the fact that the preferred stock may be issued in a series having rights in excess of one vote per share or having the right to vote separately by class respecting some matters.
Transfer Agent and Registrar
​
The transfer agent for PRIMIS’ common stock is Computershare Inc., 250 Royall Street, Canton, Massachusetts 02021.

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}]]