Document:

Exhibit 10.26

 

CHANGE OF CONTROL SEVERANCE AGREEMENT

THIS CHANGE OF CONTROL SEVERANCE AGREEMENT (the “Agreement”), effective this 22nd day of February, 2018, by and between The Old Point National Bank of Phoebus (the “Bank”) and Donald S. Buckless (“Employee”).

W I T N E S S E T H:

WHEREAS, Employee is a valuable employee of the Bank;

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

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

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

1.             Definitions.

(a)           “Cause” shall mean:

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

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

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

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

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

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

 

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

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

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

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

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

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

 

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

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

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

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

(iii)          a material breach of this Agreement by the Bank involving Employee’s base salary.

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

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

 

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

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

(A)          An amount equal to 1.50 times Employee’s base salary as in effect at the time of termination, payable over a period of twelve (12) months in accordance with the regular pay periods of Old Point (but not less frequently than monthly and in equal installments) beginning on the first payroll following the date of termination of employment, provided, however, that all payments otherwise due during the first sixty (60) days following termination of employment shall be accumulated and, if the Release requirements have been met, paid on the sixtieth (60th) day following termination of employment.

(B)          An amount equal to 1.50 times the average annual bonus payable for the five years preceding the calendar year in which the termination occurs (or the average for the number of years the Agreement has been in effect if less than five (5) years.) If the Agreement was in effect and no bonus was paid for a calendar year, then the amount to be used for that year in computing the average shall be zero. The bonus amount shall be payable over a period of twelve (12) months in accordance with the regular pay periods of the Bank (but not less frequently than monthly and in equal installments), payable in the same manner and at the same time as the payments in Section 2(a)(A).

(C)          An amount equal to the product of twenty-four (24) times the monthly rate of the Bank’s subsidy for coverage in its medical, dental and vision plans for active employees (including any applicable coverage for spouses and dependents) in effect on the date of termination, payable in a lump sum on the sixtieth (60th) day following termination of employment.

(b)           Modified Cutback of Compensation Deemed to be Contingent on a Change of Control. If any benefits or payments are to be made under the terms of this Agreement or any other agreement between Employee and Old Point or a subsidiary following a transaction that constitutes a change in the ownership or effective control of Old Point or in the ownership of a substantial portion of the assets of Old Point such that the provisions of Section 280G of the Internal Revenue Code of 1986, as amended, and any regulations thereunder (“Code Section 280G”) or Section 4999 of the Internal Revenue Code and any regulations thereunder could potentially apply to such compensation, then the following provisions shall be applicable:

 

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(i)          In the event the independent accountants serving as auditors for Old Point on the date of a change of control within the meaning of Code Section 280G (or any other accounting firm designated by Old Point) determine that some or all of the payments or benefits scheduled under this Agreement, as well as any other payments or benefits on such change of control, would be nondeductible by Old Point or a subsidiary under Code Section 280G, then the payments scheduled under this Agreement and all other agreements between Employee and Old Point or a subsidiary will be reduced to one dollar less than the maximum amount which may be paid without causing any such payment or benefit to be nondeductible. Any reduction of benefits or payments required to be made under this Section 2(b)(i) shall be taken in the following order: first from cash compensation and then from payments or benefits not payable in cash, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the date of determination.

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

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

 

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3.             Covenants.

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

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

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

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

 

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

Federal law provides certain protections to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances. Specifically, federal law provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret under either of the following conditions:

		·	
Where the disclosure is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or

		·	
Where the disclosure is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

Federal law also provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

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

 

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

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

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

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

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

9.            Binding Effect. This Agreement shall be binding upon Employee and on the Bank, its successors and assigns, effective on the date first above written subject to the approval by the Boards of Directors of the Bank. 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 would be required to perform it if no such succession had taken place. This Agreement shall be freely assignable by the Bank.

10.           No Construction Against Any Party. This Agreement is the product of informed negotiations between Employee and the Bank. If any part of this Agreement is deemed to be unclear or ambiguous, it shall be construed as if it were drafted jointly by all parties. Employee and the Bank agree that neither party was in a superior bargaining position regarding the substantive terms of this Agreement.

11.           Code Section 409A Compliance.

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

 

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

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

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

 

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

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

(g)           Notwithstanding any of the provisions of this Agreement, the Bank shall not be liable to Employee if any payment or benefit which is to be provided pursuant to this Agreement and which is considered deferred compensation subject to Code Section 409A otherwise fails to comply with, or be exempt from, the requirements of Code Section 409A.

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

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

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

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

 

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

	
THE OLD POINT NATIONAL BANK OF PHOEBUS

	 	
DONALD S. BUCKLESS

	 	 	 	 
	 	 	 	
 

	
By

	
 

	 	 
	 	 	 	 
	
Title

	
 

	 	 

 

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EXHIBIT A

RELEASE

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

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

a.            The Release given by Employee is given solely in exchange for the consideration set forth in Section 2 of the Change of Control Severance Agreement by and between the Bank and Employee to which this Release was initially attached and such consideration is in addition to anything of value which Employee was entitled to receive prior to entering into this Release;

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

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

 

d.            Employee has been offered twenty-one (21) days [or forty-five (45) days, as applicable] from receipt of this Release within which to consider whether to sign this Release; and

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

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

	
 

	 	
 

	
Date

	 	
EmployeeExhibit 10.1

 

BUSINESS — TO - BUSINESS AGREEMENT

 

THIS AGREEMENT is made and entered into
this 7th day of March 2018 (the "Effective Date"), by and between Vitalibis, Inc., ("VITALIBIS")
a Nevada corporation, and VOTOCAST / DBA newkleus ("INDEPENDENT CONTRACTOR" or "IC") a California Corporation
(the "Agreement").

 

WHEREAS. VITALIBIS currently markets and
sells proprietary ingredients and products, including but not limited to CBD products, personal care products, nutritional products
and private label products (the "Products").

 

WHEREAS, VITALIBIS wishes to engage IC
as a consultant, key supplier and/or advisor to VITALIBIS.

 

NOW THEREFORE, in consideration of the
recitals and mutual covenants contained herein. the parties hereto mutually agree as follows:

 

1. Engagement

 

VITALIBIS engages IC to provide the business-related
services ("Services") set forth in Exhibit B, all pursuant to the terms and conditions set forth in this Agreement. IC
agrees to use commercially reasonable efforts to provide the Services, all in good faith, and deal fairly with VITALIBIS in providing
the Services.

 

2. Compensation

 

As consideration for the Services to be
rendered and the rights granted within this Agreement. VITALIBIS agrees to compensate IC as specified in Exhibit B.

 

3. Expenses

 

VITALIBIS shall reimburse IC any undisputed
expenses in accordance with VITALIBIS' policies for reimbursement of reasonable out-of-pocket travel and related expenses, as well
as telephone calls, incurred in the course of performing services hereunder, provided, however, that appropriate documentation
of such expenses must be provided in accordance with such policies and all expenses must be approved in advance, in writing, by
VITALIBIS.

 

4. Term: Termination

 

(a)       This Agreement is effective, binding and enforceable as of the Effective
Date and will continue for a period of two (2) years (the "Initial Tern?'). The Initial Term shall automatically
renew for subsequent one-year terms (each a "Renewal Term"), unless otherwise terminated in writing by
VITALIBIS or IC. After the first year of the Initial Term. and for any Renewal Term, the parties shall mutually agree on reasonable
compensation for IC. The Initial Term and any Renewal Term may be terminated earlier than the expiration of such Initial Term
or Renewal Term, as applicable, in accordance with Section 4(b) below.

 

(b)       This
Agreement may be terminated by either party at any time for any reason, or for no reason, upon 30 calendar days written notice
to the other party. Upon such termination, VITALIBIS will pay all undisputed outstanding expenses incurred by IC in good faith;
however, no future fees or compensation of whatsoever nature will be owed or paid to IC by VITALIBIS. In addition, as additional
consideration hereunder, IC shall, from and after the date of termination. remain bound by the terms and conditions of Sections
6 through 12, inclusive, and Sections 6 though 12 shall not terminate, but rather, shall perpetually remain in full force and effect.
IC expressly and unconditionally acknowledges and agrees that the terms and conditions, as well as the restrictions, set forth
in Sections 6 through 12, inclusive, are fair, just and reasonable.

 

5. Independent Contractor

 

(a)       IC's
relationship with VITALIBIS is solely and exclusively limited to that of an independent contractor, and nothing in this Agreement
is intended to, or should be construed to, create an agency, joint venture, employee relationship, partnership or any other type
of relationship. Except as specifically provided herein, IC will not be entitled to any of the benefits that VITALIBIS may make
available to its employees, including, but not limited to, group health or life insurance, profit sharing or retirement benefits.
IC is not authorized to make any representation, contract or commitment on behalf of VITALIBIS unless specifically requested or
authorized in writing to do so by an authorized officer of VITALIBIS. IC is solely responsible for, and will file, on a timely
basis, (a) all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority with respect
to the performance of Services and receipt of compensation under this Agreement, as well as, (b) any and all reports and forms,
and (c) shall comply with all other regulatory, licensing and compliance requirements of state, federal and/or local regulatory
agencies. IC is solely responsible for, and must maintain adequate written records of, expenses incurred in the course of performing
Services under this Agreement. No part of IC's compensation will be subject to withholding by VITALIBIS for the payment of any
social security. federal, state or any other employee payroll taxes.

 

 

 

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(b)      IC will not be authorized to make any representation, contract or commitment on behalf of VITALIBIS unless specifically
requested or authorized in writing to do so by an authorized officer or employee of VITALIBIS.

 

(c)      IC will be solely responsible for, and will timely file and pay, all tax returns and personal income tax payments required
to be filed with, or made to, any federal, state or local tax authority (each a "Tax Authority") with respect to the
performance of Services and receipt of fees under this Agreement. No part of IC's fees will be subject to payroll tax withholding
and payment by VITALIBIS, including, but not limited to, federal income tax, state income tax, federal and state employment taxes,
federal social security tax, and federal Medicare tax (collectively, the "Taxes").

 

(d)       IC
agrees to perform all Services hereunder in accordance with all applicable laws and regulations.

 

(e)       IC
reserves the right to determine the method, manner and means by which the Services will be performed. VITALIBIS shall have no
right to, and shall not, control the manner or determine the method of performing the Services. IC is not required to perform
the Services during a fixed hourly or daily time and if the Services are performed at VITALIBIS' premises, then IC's time spent
at the premises is to be at the discretion of IC, subject to VITALIBIS' normal business hours and security requirements.

 

(f)       IC hereby confirms to VITALIBIS that VITALIBIS will not be required to furnish or provide any training to IC to enable IC
to provide the Services required hereunder. IC shall perform the Services, and VITALIBIS shall not be required to hire, supervise
or pay any assistants to help IC to perform the Services under this Agreement.

 

(g)      IC
shall not be required to devote IC's full time to the performance of the Services required hereunder.

 

6. Nondisclosure
of Confidential Information

 

(a)       Agreement Not to Disclose - IC. IC agrees not to, directly or indirectly, use any Confidential Information (as defined
below) disclosed to IC by VITALIBIS for IC's own use or for any purpose other than to carry out discussions concerning, and the
undertaking of, the Services. IC shall not disclose or permit disclosure of any Confidential Information of VITALIBIS to third
parties. IC expressly and unconditionally agrees to take all reasonable measures to protect the secrecy of and avoid disclosure
or use of Confidential Information of VITALIBIS in order to prevent it from falling into the public domain or the possession of
persons other than those persons authorized under this Agreement to have any such information. IC further agrees to notify VITALIBIS
in writing of any actual or suspected misuse, misappropriation or unauthorized disclosure of VITALIBIS' Confidential Information.

 

(b)       Agreement Not to Disclose - VITALIBIS. VITALIBIS agrees not to, directly or indirectly, use any Confidential Information
(as defined below) disclosed to VITALIBIS by IC for VITALIBIS's own use or for any purpose other than to carry out discussions
concerning, and the undertaking of, the Services. VITALIBIS shall not disclose or permit disclosure of any Confidential Information
of IC to third parties. VITALIBIS expressly and unconditionally agrees to take all reasonable measures to protect the secrecy of
and avoid disclosure or use of Confidential Information of IC in order to prevent it from falling into the public domain or the
possession of persons other than those persons authorized under this Agreement to have any such infonnation. VITALIBIS further
agrees to notify IC in writing of any actual or suspected misuse, misappropriation or unauthorized disclosure of IC's Confidential
Information.

 

(c)       Definition
of Confidential Information. "Confidential Information" means any information, technical data or know-how
(whether disclosed before or after the date of this Agreement), including, but not limited to, information relating to: VITALIBIS's
or IC's business and product or service plans, financial projections, strategies, customer lists, business forecasts, sales and
merchandising, human resources, patents, patent applications, computer object or source code, research, inventions, processes,
formulas, identity and/or compilation of ingredients, designs, pricing, identity or sources of profits, drawings, engineering,
marketing or financial information or data. Confidential information also includes any and all material disclosed and/or identified
to be confidential or proprietary, or which information would, under the circumstances, appear to a reasonable person to be confidential
or proprietary. Confidential Information does not include information, technical data or know-how which: (a) is in the possession
of IC or VITALIBIS at the time of disclosure, as shown by IC's or VITALIBIS' files and records immediately prior to the time of
disclosure; or (b) becomes part of the public knowledge or literature, not as a direct or indirect result of any improper inaction
or action of IC or VITALIBIS.

 

 

 

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(d)       Exceptions.
Notwithstanding the above, neither party shall not have liability to the other party or any of its subsidiaries with regard to
any Confidential Information of said party can prove (a) is disclosed with the prior written approval of such party. or (b) is
disclosed pursuant to the order or requirement of a court, administrative agency, or other governmental body: provided, however.
that a party shall provide prompt notice of such court order or requirement to the other party to enable that party or its appropriate
subsidiary to seek a protective order or otherwise prevent or restrict such disclosure.

 

7. No Duplication; Return of Materials

 

Each party agrees, except as otherwise
expressly authorized by the other party, not to make any copies or duplicates of any Confidential Information. Any materials or
documents that have been furnished by either party in connection with the Services shall be promptly returned by the other party,
accompanied by all copies of such documentation, within five (5) calendar days after (a) the Services have been concluded or (b)
the written request of the other party or (c) this Agreement has been terminated by either party.

 

8. No Rights Granted

 

Nothing in this Agreement shall be construed
as granting any rights under any patent, copyright or other intellectual property right of VITALIBIS to IC, nor shall this Agreement
grant IC any rights in or to VITALIBIS' Confidential Information, except the limited right to use the Confidential Information
in connection with the Services.

 

9. No Conflicts; Representations and Warranties

 

(a)       Current
Affiliations. During the term of this Agreement, IC agrees not to engage in any activities, directly or indirectly, which
could lead to a conflict of interest (for example. IC shall not be employed by, consult for, own, manage, control or participate
in the ownership, management, operation or control of any business entity that is competitive with VITALIBIS or otherwise undertake
any obligation inconsistent with the terms hereof), provided that IC may continue IC's current employment and other current relationships
as described and with the entity or entities listed on Exhibit A (all of which entities are referred to collectively as
-Current Affiliations"). IC represents that IC's compliance with the terms of this Agreement and provision
of Services hereunder do not and will not violate any duty or obligation which IC may have to any Current Affiliations or any
other person or entity, including obligations concerning providing services to others, confidentiality of proprietary information
and assignment of inventions, ideas, patents or copyrights, and IC acknowledges and agrees that (a) IC will not do anything in
the performance of Services hereunder that would violate any such duty or obligation and (b) nothing in this Agreement is intended
to be or will be construed to inhibit or limit any of IC's obligations to Current Affiliations. IC represents and warrants that
IC has obtained any and all required consents from IC's Current Affiliations to perform the Services.

 

(b)       Future
Affiliations. During the term of this Agreement and prior to performing any services (whether as an employee, consultant,
advisor, director or otherwise) for, or participating in or controlling the ownership, management, or operation of, any business
entity that may be competitive with VITALIBIS (all of which entities are referred to collectively as Future Affiliation(s)"),
or otherwise undertaking any obligation inconsistent with the terms hereof, IC shall first notify VITALIBIS in writing
of such Future Affiliation(s). It is understood that in such event, VITALIBIS will review whether IC's activities are consistent
with IC remaining a business IC with VITALIBIS.

 

10. Noninterference with Business

 

During the term of this Agreement, and
for a period of one (1) year immediately following its termination, both parties agree not to interfere with the business of the
other party in any manner. By way of example and not of limitation. both parties agree not to solicit or induce any employee, consultant,
customer, independent contractor or other IC to terminate or breach an employment, contractual or other relationship with the other
party.

 

11. Limited Liability

 

In no event shall either party be liable
to the other or any third party in contract, tort or otherwise for incidental or consequential damages of any kind, including,
without limitation, punitive or economic damages or lost profits, regardless of whether either party shall be advised, shall have
other reason to know or, in fact, shall know of the possibility of any such damages.

 

 

 

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At no time will the total damages of any
kind exceed the total compensation paid by VITALIBIS to IC during the last two (2) calendar months.

 

12. Notices

 

Any notices, requests, demands or other
communications provided for by this Agreement shall be solely and exclusively in writing and shall be sufficiently given when
and if sent by personal delivery or overnight courier to the party entitled thereto at the address stated below or at such other
address as the parties may have given by similar notice:

 

Vitalibis. Inc.

5348 Vegas Drive

Las Vegas, NV 89108

Attn: Tom Raack

Phone: 702-944-9620

Email: traack@vitalibis.com

 

VOTOCAST / DBA newkleus

Attn: Steve Raack

PO Box 7302

Newport Beach, CA 92658

Phone No: 310-259-1248

Email: sraack@newkleus.com

 

13. Entire
Agreement

 

This Agreement contains the entire agreement
between the parties hereto with respect to matters herein and supersedes all prior agreements and understandings, oral or written,
between the parties hereto relating to any such matters.

 

14. Headings

 

The headings contained in this Agreement
are not to be used for interpretation of this Agreement, but rather, have been placed herein solely for the convenience of the
parties.

 

15. Severability

 

In the event that any provision or portion
of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions and portions of this
Agreement shall be unaffected thereby and shall remain in full force and effect, to the fullest extent permitted by law.

 

16. Applicable Law and Venue

 

(a)       Governing Law. This Agreement shall be governed solely and exclusively by the laws of the State of California (excepting
any conflict of laws or provisions which would serve to defeat application of California substantive law). Each of the parties
to this Agreement hereby irrevocably and unconditionally: (a) consents to submit to the exclusive jurisdiction of the courts of
Orange County, California, for enforcement of any dispute resolution decision ("Decision") arising in connection with
this Agreement, and each such Party agrees not to commence any proceeding of any nature, in any court, anywhere, except a proceeding
in the courts of Orange County, California. to enforce such Decision, and (b) waives any objection to the laying of venue of any
such proceeding in the courts of Orange County, California.

 

 

 

    	 	4	 

     

    

 

(b)       Venue.
The venue of any action brought arising out of or related to this Agreement shall be exclusively in Orange County, California.

 

(c)       
Attorneys' Fees. The prevailing party shall have the right to collect from the other party its reasonable costs and
necessary disbursements and attorneys' fees incurred in enforcing this Agreement. by any means.

 

17. Amendment or Modification; Waiver

 

(a)        
No provision of this Agreement may be amended unless such amendment is in a writing signed by both parties.

 

(b)        
The failure by VITALIBIS or IC to enforce at any time or for any period of time any one or more of the terms or conditions
of this Agreement shall not constitute a waiver of such terms or conditions or of VITALIBIS" or IC's right thereafter to enforce
each and every term and condition of this Agreement.

 

18. Force Majeure.

 

Whenever
performance by a party of any of its obligations hereunder, other than the payment of money due. is substantially or completely
interrupted or prevented by reason of an Act of God, strike, lockout, labor trouble or other industrial disturbance, transportation
dislocation, shortage of supply, casualty, civil strife or a circumstance beyond the reasonable and good faith control of the
party required to act, such performance shall be excused for the period during which such state of affairs continues.

 

19. Remedies.

 

Notwithstanding other provisions of this
Agreement regarding dispute resolution, IC agrees that violation of any of Sections 5 through 12, inclusive, of this Agreement
would cause the VITALIBIS irreparable harm which would not be adequately compensated by monetary damages and that an injunction
may be granted by any court or courts having jurisdiction, restraining IC from violation of the terms of this Agreement, upon
any breach or threatened breach of tenure of the obligations set forth in any of Sections 5 through 12, inclusive. The preceding
sentence shall not be construed to limit VITALIBIS from any other relief or damages to which it may be entitled as a result of
IC's breach of any provision of this Agreement, including Sections 5 through 12, inclusive. IC also agrees that a violation of
any of Sections 5 through 12, inclusive. would entitle VITALIBIS, in addition to all other remedies available at law or equity,
to recover from IC any and all damages suffered by VITALIBIS.

 

20. Counterparts

 

This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
This Agreement may be executed on signature pages exchanged by facsimile or other electronic means, in which event each party shall
promptly deliver to the others such number of original executed copies as the others may reasonably request.

 

Signatures on the following page.

 

 

 

    	 	5	 

     

    

 

	 	VOTOCAST / DBA newkleus
	 	Name of Independent Contracor
	 	 
	 	By: /s/ Steven P. Raack
	 	Steven P. Raack
	 	 
	 	Its: CEO, Votocast, Inc. (DBA newkleus)

 

	 	VITABILIS, INC.
	 	 
	 	By: /s/ Markus Frick
	 	  Markus Frick
	 	 
	 	Its: Director

 

 

 

 

    	 	6	 

     

    

 

 

Exhibit A

 

CURRENT AFFILIATIONS

 

 

Below is a list of Current Affiliations, as required under Section
11(a) of Agreement.

 

BC Craft Growers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	7	 

     

    

 

Exhibit B

 

DESCRIPTION OF SERVICES AND COMPENSATION

 

SERVICES

 

1. Business Development Services

 

	a.		IC will provide advice and opinions on product development, business development,
strategic relationships, marketing strategies, international expansion, etc.

 

2. Operations Services

 

	a.		IC will provide advice and opinions on process optimization while scaling products,
ingredients and the overall business.

 

3. Product Services

 

	a.		IC will provide VITALIBIS a license for the newkleus technology free of charge until
such times as VITALIBIS receives over 10,000 video views per month, at which point, the monthly fees will be assessed per Section
3(d) below. The newkleus technology consists of the following:

	i.		A dedicated VITALIBIS database

	ii.		A dedicated. web-enabled VITALIBIS administration module to manage campaigns, user
contact data, user content, etc.

	iii.		APIs and SDKs related to the VITALIBIS instance integrated into the VITALIBIS website
and/or mobile app

	b.		IC will provide VITALIBIS a license for an exclusive arrangement within the cannabis
industry for as long as this Agreement is not terminated by either party. IC will inform VITALIBIS of any potential clients who
have business within the cannabis industry prior to full engagement of such client and will only engage in a licensing agreement
with a cannabis related client with prior written approval by VITALIBIS.

	c.		IC and VITALIBIS will execute a formal licensing agreement which covers additional
terms of use.

	d.		Fees

	i.		Set-up fees are waived

	ii.		10,000 — 24,999 video views per month = $1,000

	iii.		25,000 — 49,999 video views per month = $1,500

	iv.		Over 50,000 video views per month = $2,000

	v.		Fees will be invoiced 15 days after the month has closed and all undisputed fees are
due 30 days after invoice receipt

 

COMPENSATION

 

4. Compensation for Services

 

	a.		VITALIBIS will issue to IC a total of 200,000 shares of VITALIBIS Common Stock.

	b.		Issued Common Stock will be restricted for a minimum of six (6) months prior to being
eligible to have the restriction removed and are subject to all applicable state and federal securities laws, rules and regulations.

	c.		Any issuance of Common Stock will be accompanied by the appropriate documentation,
terms and conditions, as approved by Securities Counsel for VITALIBIS, and execution of such documentation as may be deemed necessary•
and appropriate/required by Securities Counsel.

	d.		VITALIBIS has not and will not provide any legal or financial/tax advice or information
to IC in connection with the referenced compensation paid to IC.

	e.		IC shall be forever prohibited from selling, encumbering, pledging, transferring or
granting any form of right, title or interest, directly or indirectly, any of the Shares of VITALIBIS to any person or party affiliated,
directly or indirectly, to any person or entity engaged, directly or indirectly, in or with IC and/or in or with a business or
product competitive with the business and/or product(s) of VITALIBIS.

	f.		The fair market value for the Shares is agreed by the parties to be par value.

 

    	 	8

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