Document:

ex_106120.htm

Exhibit 10.1

 

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this “Agreement”), dated as of February 23, 2018, is entered into by and between Christos P. Traios (“Purchaser”) and Petrogress, Inc., a Delaware corporation (“Company”).

 

WHEREAS, during the fiscal year 2017, Purchaser made cash advances directly to or on behalf of the Company in the amount of $275,000, cash advances to or on behalf of Petrogress Oil & Gas Energy, Inc., a wholly owned subsidiary of the Company, in the amount of $7,500 and cash advances to or on behalf of Petrogress Int’l LLC, a wholly owned subsidiary of the Company, in the amount of $15,000, representing aggregate loans in the amount of $297,500 (the “Traios Loans”); 

 

WHEREAS, Purchaser desires to purchase from the Company, and the Company desires to issue and sell to Purchaser, 19,070,512 shares (the “Shares”) of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), in exchange for complete satisfaction, cancellation and forgiveness of the Traios Loans at a price of $0.0156 per share, on the terms and conditions set forth in this Agreement.

 

NOW THEREFORE, in consideration of the promises and respective mutual agreements herein contained, it is agreed by and between the parties hereto as follows.

 

1.            Sale and Purchase of the Shares.

 

1.1     Sale of the Shares. Subject to the terms and conditions herein set forth, on the basis of the representations, warranties and agreements herein contained, at the Closing (defined below) on the date hereof, Company hereby issues, sells, assigns, transfers and delivers the Shares to Purchaser, and Purchaser hereby purchases the Shares from the Company.

 

1.2     The Closing. The purchase of the Shares shall take place at the office of the Company or such other place as Purchaser and Company may mutually agree contemporaneous with the execution hereof “Closing Date”.

 

1.3     Delivery of Certificates. At the Closing, the Company shall deliver one or more certificates representing the Shares to Purchaser in form and substance satisfactory to Purchaser (“Certificates”), as shall be effective to vest in Purchaser all right, title and interest in and to all of the Shares. 

 

1.4     Consideration and Payment for the Shares. In consideration for the Shares, upon Closing, Purchaser agrees that the Traios Loans shall be deemed repaid in full, cancelled and forgiven, and all obligations with respect to the Traios Loans shall be deemed satisfied (the “Purchase Price”). 

 

2.            Representations and Warranties of the Company. The Company represents, warrants and undertakes to the Purchaser that:

 

2.1     Due Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware with full power and authority to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. All actions taken by the current directors and stockholders of the Company have been valid and in accordance with the laws of the State of Delaware, and all actions taken by the Company have been duly authorized by the current directors and stockholders of the Company as appropriate.

 

 

 

 

2.2     Company Authority. The Company has all requisite corporate power and authority to enter into and perform this Agreement and to consummate the transactions contemplated herein.

 

2.3     Due Authorization. The execution, delivery and performance by the Company of this Agreement has been duly and validly authorized and no further consent or authorization of the Company, its Board of Directors or its stockholders is required. 

 

2.4       Valid Execution. This Agreement has been duly executed and delivered by the Company.

 

2.5      Binding Agreement. This Agreement constitutes, and upon execution and delivery thereof by the Company will constitute, a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency or similar laws affecting creditor’s rights generally or the availability of equitable remedies.

 

2.6       No Violation of Corporate Documents or Agreements. The execution and delivery of this Agreement by the Company and the performance by the Company of its obligations hereunder will not cause, constitute, or conflict with or result in (i) any breach or violation, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any person under any of the provisions of, or constitute a default under, any license, indenture, mortgage, charter, instrument, certificate of incorporation, bylaw, judgment, order, decision, writ, injunction or decree or other agreement or instrument or proceeding to which the Company is a party, or by which it may be bound, nor will any consents or authorizations of any party other than those contemplated hereby be required, or (ii) an event that would result in the creation or imposition or any lien, charge or encumbrance on any asset of the Company or on the securities of the Company to be acquired by Purchaser.

 

2.7     Authorized Capital, No Preemptive Rights, No Liens. As of the date hereof, the authorized capital of the Company is 490,000,000 shares of Common Stock, par value $0.001 per share, and 10,000,000 shares of Preferred Stock, par value $0.001 per share. No shares of capital stock of the Company are subject to preemptive rights or similar rights of the stockholders of the Company or any liens or encumbrances imposed through the actions or failure to act of the Company, or otherwise. The Company has furnished to Purchaser true and correct copies of the Company’s Articles of Incorporation, as amended, and Bylaws.

 

2.8     No Governmental Action Required. The execution and delivery by the Company of this Agreement does not and will not, and the consummation of the transactions contemplated hereby will not, require any action by or in respect of, or filing with, any governmental body, agency or governmental official.

 

2.9     Compliance with Applicable Law and Corporate Documents. The execution and delivery by the Company of this Agreement and the performance by the parties hereto of the transactions contemplated hereby does not and will not contravene or constitute a default under or violation of (i) any provision of applicable law or regulation, (ii) the Company’s Articles of Incorporation, as amended, or Bylaws, or (iii) any agreement, judgment, injunction, order, decree or other instrument binding upon the Company or any of its assets, or result in the creation or imposition of any lien on any asset of the Company. To the best of its knowledge, the Company is in compliance with and conforms to all statutes, laws, ordinances, rules, regulations, orders, restrictions and all other legal requirements of any domestic or foreign government or any instrumentality thereof having jurisdiction over the conduct of its businesses or the ownership of its properties.

 

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3.           Representations and Warranties of the Purchaser. Purchaser represents and warrants that the following are true and correct as of the date hereof and will be true and correct through the Closing Date as if made on that date: 

 

3.1     Agreement’s Validity. This Agreement has been duly executed and delivered by Purchaser and constitutes a legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally or the availability of equitable remedies. 

 

3.2     Investment Intent. Purchaser is acquiring the Shares for his own account for investment and not with a view to, or for sale or other disposition in connection with, any distribution of all or any part thereof.

 

3.3     Restricted Securities. Purchaser understands that the Shares have not been registered pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws, that the Shares will be characterized as “restricted securities” under federal securities laws, and that under such laws and applicable regulations the Shares cannot be sold or otherwise disposed of without registration under the Securities Act or an exemption therefrom.

 

3.4      Legend. It is agreed and understood by Purchaser that the Certificates representing the Shares shall each conspicuously set forth on the face or back thereof a legend in substantially the following form:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

3.5     Disclosure of Information. Purchaser is a director and executive officer of the Company and acknowledges that he has been furnished with information regarding the Company and its business, assets, results of operations, and financial condition to allow Purchaser to make an informed decision regarding an investment in the Shares. Purchaser represents that he has had an opportunity to ask questions of and receive answers from the Company regarding the Company and its business, assets, results of operation, and financial condition.

 

4.           Miscellaneous. 

 

4.1     Entire Agreement. This Agreement sets forth the entire agreement and understanding of the parties hereto with respect to the transactions contemplated hereby, and supersedes all prior agreements, arrangements and understanding related to the subject matter hereof. No understanding, promise, inducement, statement of intention, representation, warranty, covenant or condition, written or oral, express or implied, whether by statute or otherwise, has been made by any party hereto which is not embodied in this Agreement or the written statement, certificates, or other documents delivered pursuant hereto or in connection with the transactions contemplated hereby, and no party hereto shall be bound by or liable for any alleged understanding, promise, inducement, statement, representation, warranty, covenant or condition not set forth.

 

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4.2     Governing Law. This Agreement shall be governed in all respects, including validity, construction, interpretation and effect, by the laws of the State of Delaware (without regard to principles of conflicts of law). 

 

4.3     Counterparts. This Agreement may be executed by the parties hereto in separate counterparts each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

4.4     Binding Effect; No Assignment, No Third-Party Rights. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. This Agreement is not assignable without the prior written consent of each of the parties hereto or by operation of law. This Agreement is for the sole benefit of the parties hereto and their permitted assigns, and nothing herein, expressed or implied, shall give or be construed to give to any person, including any union or any employee or former employee of the Company, any legal or equitable rights, benefits or remedies of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement.

 

4.5     Further Assurances. Each party shall, at the request of the other party, at any time and from time to time following the Closing Date promptly execute and deliver, or cause to be executed and delivered, to such requesting party all such further instruments and take all such further action as may be reasonably necessary or appropriate to carry out the provisions and intents of this Agreement and of the instruments delivered pursuant to this Agreement.

 

4.6     Severability of Provisions. If any provision or any portion of any provision of this Agreement or the application of any such provision or any portion thereof to any person or circumstance, shall be held invalid or unenforceable, the remaining portion of such provision and the remaining provisions of the Agreement, or the application of such provision or portion of such provision is held invalid or unenforceable to person or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and such provision or portion of any provision as shall have been held invalid or unenforceable shall be deemed limited or modified to the extent necessary to make it valid and enforceable, in no event shall this Agreement be rendered void or unenforceable.

 

4.7     Captions. All section titles or captions contained in this Agreement are for convenience only, shall not be deemed a part of this Agreement and shall not affect the meaning or interpretation of this Agreement. All references herein to sections shall be deemed references to such parts of this Agreement, unless the context shall otherwise require.

 

***Signature Page Follows***

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as of the date first written herein above.

 

	
			 

				
			Petrogress, Inc.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Christos Traios, President

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Christos Traios	 

 

5cffi_MIP_Exhibit

		

			EXHIBIT 10.9

		

		

			 

		

		
			C&F FINANCIAL CORPORATION 
		

		
			Management Incentive Plan 
		

		
			  
		

		
			  
		

		
			ARTICLE I 
		

		
			OBJECTIVE OF THE PLAN 
		

		
			  
		

		
			The purpose of the Management Incentive Plan (“MIP”) is to attract, retain and motivate key employees, as approved by the Compensation Committee (“Committee”), of C&F Financial Corporation (“Company”) and its direct or indirect subsidiaries.    The MIP is not applicable to all employees nor to all incentive based compensation throughout the Company. 
		

		
			  
		

		
			The MIP is designed to link key employee interests more closely with the interests of the Company’s shareholders and to create value for the Company by maximizing achievement of corporate, business unit and individual performance goals, consistent with the Company’s risk management philosophy and safety and soundness goals. 
		

		
			  
		

		
			Each Participant’s awards under this MIP will take into account corporate performance as well as, where appropriate, his or her own business unit’s performance. Awards under the MIP may also reflect individual performance.  
		

		
			  
		

		
			ARTICLE II 
		

		
			PLAN ADMINISTRATION 
		

		
			  
		

		
			The MIP will be administered by the Committee, which will have the power and authority to interpret the MIP, select employees to participate in the MIP, establish target awards and performance objectives under the MIP, and establish guidelines for determining individual awards and rules for the operation and administration of the MIP.   Except as limited by Article V below, the Committee or, with respect to awards for certain non-executive officer participants, the Chief Executive Officer will also have the power and authority to adjust upward or downward any award earned, at its discretion, in light of such considerations as the Committee or Chief Executive Officer, as applicable, may deem relevant (but subject to applicable limitations of the Company’s 2013 Stock and Incentive Compensation Plan (“Stock Plan”) with respect to Equity Based Awards). 
		

		
			  
		

		
			Except as expressly otherwise provided herein in the case of Executive Officers (as defined in Rule 3b-7 under the Securities Exchange Act of 1934), who are the Chief Executive Officer, the President and the Chief Financial Officer of the Company and C&F Bank, the Chief Credit Officer of C&F Bank, the President of C&F Finance Company and the Chief Executive Officer of C&F Mortgage Corporation, or as prohibited by any national securities exchange or system on which the Company’s stock is then listed or reported, by any regulatory body having jurisdiction with respect thereto or under any other applicable laws, rules or regulations, the Committee may delegate one or more of its powers or responsibilities under the MIP to one or more of its members and/or to one or more of the Executive Officers of the Company. 
		

		
			  
		

		
			The Chief Executive Officer’s incentive awards (whether cash or in the form of Equity Based Awards) will be determined solely by the Committee and the Chief Executive Officer shall not be present during such deliberations or voting. 
		

		
			  
		

		
			The MIP is an annual plan and shall remain in effect until terminated by the Board of Directors. A new plan year shall commence on the first business day of each fiscal year of the Company.  The Committee shall review the MIP annually and recommend any amendments or revisions thereto, which it deems appropriate or desirable, for approval by the Board of Directors. 
		

		
			   
		

		
			   
		

		
			

		 

		

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			ARTICLE III 
		

		
			PARTICIPANTS 
		

		
			  
		

		
			Persons who may participate in the MIP are limited to key employees of the Company and its direct or indirect subsidiaries who are: (a) approved by the Committee (in the case of the Chief Executive Officer and the President of the Company and C&F Bank) and (b) for all others, recommended by the Chief Executive Officer and approved by the Committee (collectively, “Participants”). 
		

		
			  
		

		
			To be eligible for the MIP in any particular year, key employees must be employees of the Company or a subsidiary as of January 1st of the plan year for which an award is being made. In addition, employees who are either hired as key employees or are promoted and become key employees after the beginning of a plan year may be designated as Participants for the plan year and assigned a prorated target at the Committee’s discretion. 
		

		
			  
		

		
			  
		

		
			ARTICLE IV 
		

		
			PERFORMANCE OBJECTIVES 
		

		
			  
		

		
			In connection with the administration of the MIP, the Committee or the Chief Executive Officer, in the case of certain non-executive officer participants, shall establish: 
		

		
			  
		

		
			(i)MIP performance objectives for the Company and any subsidiary (“Corporate Goals”), and appropriate business units of the Company (“Business Unit Goals”) and individuals (“Individual Goals”) based upon such criteria as may be agreed upon by the Committee, and 
		

		
			  
		

		
			(ii)The award formula or matrix by which incentive awards under the MIP shall be calculated. 
		

		
			  
		

		
			Except as provided herein in the case of Executive Officers, the selection of such performance objective(s) and the award formula or matrix may vary on a Participant-by-Participant basis. 
		

		
			  
		

		
			Prior to or within the first 90 days of each plan year, the Committee or the Chief Executive Officer, as applicable, shall review the previously established Corporate Goals, Business Unit Goals and Individual Goals and make any changes to such performance objectives as it deems appropriate for the new plan year. 
		

		
			   
		

		
			   
		

		
			ARTICLE V 
		

		
			AWARDS 
		

		
			  
		

		
			The MIP provides for cash incentive awards (“Cash Awards”) and/or equity incentive awards (“Equity Based Awards”).  Except as provided herein in the case of  Executive Officers, target awards may be weighted between Corporate, Business Unit and Individual Goals on such basis as the Committee determines and the weighting may vary on a Participant-by-Participant basis.  Separate performance objectives and award formulas or matrixes may be established for Cash Awards and Equity Based Awards.  Cash Awards shall be settled in cash.  Equity Based Awards shall be settled in cash and/or Company stock, as determined by the Committee or the Chief Executive Officer, as applicable. 
		

		
			  
		

		
			Each Participant shall be assigned a Cash Award target, which shall be paid or provided if the Participant achieves his or her Cash Award targeted performance goal(s).  All cash incentive awards made to the President of C&F Mortgage Corporation (“C&F Mortgage”) shall be made pursuant to such President’s Employment Agreement, as in effect from time to time, with C&F Mortgage or the Company, and not pursuant to this MIP, for any year for which such Employment Agreement provides for an annual incentive arrangement. 
		

		
			

		 

		

			

		

		

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			Unless otherwise provided by the Committee, the Cash Award targets for a plan year for the Chief Executive Officer and the President of the Company and C&F Bank will be based solely on achievement of the Corporate Goal, and the Corporate Goal for the Cash Awards is based on the Company’s return on equity (as defined by the Committee) (“ROE”) and return on assets (as defined by the Committee) (“ROA”) for the plan year for which the Cash Award is made compared to a peer group of banks selected by the Committee.  If 100% of the Cash Award Corporate Goal is achieved for a plan year, the Chief Executive Officer and the President will earn a Cash Award equal to his or her individual Cash Target Award designated by the Committee.  If greater than or less than 100% (but at least the Minimum Award Level designated by the Committee) of the Cash Award Corporate Goal is achieved for a plan year, the Chief Executive Officer and the President will earn a Cash Award equal to more or less than 100% of his or her individual Cash Target Award (but in no event more than the Maximum Award Percentage designated by the Committee) based on an award matrix established by the Committee.  Any award earned may be adjusted by the Committee, at its discretion, based on asset quality (loans) measures of the Company or any other measurement deemed relevant.  The measures are listed in the Cash Award Targets and Goals which are set pursuant to Article IV of this MIP.     
		

		
			  
		

		
			Unless otherwise provided by the Committee, the Cash Award target for a plan year for the Chief Financial Officer of the Company and C&F Bank will be based on the net income of the Company and other measurements deemed relevant, all of which are established by the Committee based on the recommendation of the Chief Executive Officer.  The Committee will determine the Cash Award earned based on an evaluation of these measures.   The measures are listed in the Cash Award Target and Goals which are set pursuant to Article IV of this MIP. 
		

		
			  
		

		
			Unless otherwise provided by the Committee, the Cash Award target for a plan year for the President of C&F Finance Company will be based on the ROA of C&F Finance Company (as defined by the Committee), as established by the Committee based on the recommendation of the Chief Executive Officer.  If achievement is more or less than the targeted performance, the amount of the Cash Award earned will be determined pursuant to an award matrix established by the Committee. Any award earned may be adjusted by the Committee, at its discretion, based on asset quality measures of C&F Finance Company and any other measurement deemed relevant. The measures are listed in the Cash Award Targets and Goals which are set pursuant to Article IV of this MIP.  
		

		
			  
		

		
			Unless otherwise provided by the Committee, the Cash Award target for a plan year for the Chief Credit Officer of C&F Bank will be based on the net income of C&F Bank and other C&F Bank-related measurements deemed relevant, all of which are established by the Committee based on the recommendation of the Chief Executive Officer. The Committee will determine the Cash Award earned based on an evaluation of these measures.  The measures are listed in the Cash Award Targets and Goals which are set pursuant to Article IV of this MIP.  
		

		
			  
		

		
			As mentioned above, all cash incentive awards made to the President of C&F Mortgage shall be made pursuant to such President’s Employment Agreement, as in effect from time to time, with C&F Mortgage or the Company, and not pursuant to this MIP, for any year for which such Employment Agreement provides for an annual incentive arrangement. 
		

		
			  
		

		
			Participants may also be awarded Equity Based Awards consisting of restricted stock, stock options, stock appreciation rights or other stock equivalent awards under the MIP.  Unless otherwise provided by the Committee, earned Equity Based Awards for a plan year will be granted to a Participant near or following the end of the plan year upon determination as provided in Article VI (the “Grant Date”), and in the case of Executive Officers will be in the form of time-based restricted stock with vesting terms established by the Committee, at its discretion.  The Committee will determine the appropriate valuation methodology for determining the fair market value of such Equity Based Awards on the Grant Date.  
		

		
			 
		

		
			

		 

		

			

		

		

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			Unless otherwise provided by the Committee, Equity Based Awards for the Executive Officers will have two components, a component that is based solely on continue service (the “Retention Equity Awards”) and a component that is based on performance (the “Performance-Based Equity Awards”).  Prior to or within the first 90 days of each plan year, the Committee shall determine the percentage of each Executive Officer’s Equity Based Awards that will consist of Retention Equity Awards and the percentage that will consist of Performance-Based Equity Awards.  
		

		
			 
		

		
			Unless otherwise provided by the Committee and unless in the exercise of its discretion, the Committee determines the award is not earned, a  Retention Equity Award will be earned (subject to additional time-based vesting conditions) if the Executive Officer is employed by the Company or any subsidiary on the Grant Date. 
		

		
			 
		

		
			Unless otherwise provided by the Committee,  for the Chief Executive Officer, President and Chief Financial Officer of the Company and C&F Bank, a Performance-Based Equity Award will be earned based on the achievement of a corporate goal, which is the Company’s 3‐year annual growth in tangible book value (as defined by the Committee) plus dividends paid compared to that of a peer group designated by the Committee. If achievement is more or less than the targeted performance, the amount of the Performance-Based Equity Award earned will be determined pursuant to an award matrix established by the Committee. 
		

		
			 
		

		
			Unless otherwise provided by the Committee,  for the President of C&F Finance Company, Chief Credit Officer of C&F Bank and President of C&F Mortgage, a Performance-Based Equity Award will be earned based on the achievement of a corporate goal, which is the Company’s 3‐year annual growth in tangible book value (as defined by the Committee) plus dividends paid compared to that of a peer group designated by the Committee, and the performance of the executive officer’s business unit as measured by net income and achievement of other strategic goals established for each such officer by the Committee. If achievement is more or less than the targeted performance, the amount of the Performance-Based Equity Award earned will be determined pursuant to an award matrix established by the Committee. 
		

		
			 
		

		
			The Committee will have the power and authority to adjust downward any Equity Based Award earned by an Executive Officer, at its discretion, in light of such considerations as the Committee may deem relevant.   
		

		
			  
		

		
			The Cash Award targets and Equity Based Award targets for certain non-Executive Officer Participants shall be determined by the Chief Executive Officer based on the applicable Corporate Goals, Business Unit Goals or Individual Goals or any combination thereof.  Such Business Unit Goals and Individual Goals established by the Chief Executive Officer shall be based on specific business unit and individual objectives annually.  These include, but are not limited to, net income, loan and deposit growth, asset quality, margins, productivity, soundness, and customer satisfaction.  The Chief Executive Officer will have the power and authority to adjust upward or downward any Cash Award or Equity Based Award earned by any Participant who is not an Executive Officer, at his discretion, in light of such considerations as he may deem relevant.  
		

		
			  
		

		
			  
		

		
			ARTICLE VI 
		

		
			ENTITLEMENT TO EARNED AWARDS 
		

		
			  
		

		
			Within 60 days following the end of each plan year, the Committee or the Chief Executive Officer, as applicable, will review performance against the Cash Award targets and Equity Based Award targets, certify in writing the extent to which applicable performance goals were satisfied, and determine the amount of Cash Award and Equity Based Award, if any, to be paid to each Participant under the MIP.
		

		
			 
		

		
			With respect to Cash Awards, except as provided below, no earned award shall be payable to a Participant unless that Participant is an employee of the Company and/or any subsidiary from January 1st of that plan year (or if later, the date he or she is designated as a Participant for that plan year) through either (a) the last day of that plan 

		 

		

			

		

		

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year or (b) if so provided by the Committee, prior to the end of the plan year to which the award relates through the date the award for that plan year is paid (the “Vesting Date”).  
		

		
			  
		

		
			With respect to Equity Based Awards, no grant evidencing the Equity Based Award will be granted unless the Participant is employed by the Company or any subsidiary on the Grant Date.  
		

		
			  
		

		
			In the event of a Participant’s death, total and permanent disability, retirement or involuntary termination without cause during a plan year, earned awards shall be calculated for that plan year and then pro-rated by multiplying the earned annual award by a fraction, the numerator of which is the number of full months, including the month in which the terminating event occurred, in the plan year preceding the terminating event and the denominator of which is twelve.  In such event, payout will occur at the same time all other earned and vested award payments are made for that plan year.  Otherwise, a Participant who is not employed by the Company or a subsidiary for any other reason on the Vesting Date for a plan year shall forfeit his or her award for that plan year unless otherwise determined by the Committee. 
		

		
			  
		

		
			  
		

		
			ARTICLE VII 
		

		
			PAYMENT OR PROVISION OF EARNED AND VESTED AWARDS 
		

		
			  
		

		
			Earned and vested Cash Awards shall be paid as soon as practicable following the end of the plan year; however, in no event shall such awards be paid later than March 15th following the end of each plan year, allowing the Company adequate time to formally analyze its financial results according to the regulations and procedures of a public company. 
		

		
			  
		

		
			Earned Equity Based Awards that are payable in or entail the issuance of Company stock will be awarded pursuant to the Company’s Stock Plan, unless the Committee specifically determines otherwise.  Earned Equity Based Awards shall be evidenced by an equity compensation grant under the Stock Plan made at such times as may be determined by the Committee, but in no event later than March 15th following the end of each plan year.  Such grants may include such further service-based and/or performance based vesting as the Committee may determine.  
		

		
			   
		

		
			   
		

		
			   
		

		
			ARTICLE VIII 
		

		
			NO ENTITLEMENT TO BONUS 
		

		
			  
		

		
			Participants are entitled to a distribution under the MIP only upon the determination by the Committee or the  Chief Executive Officer, as applicable, that the award is earned, vested and payable.  
		

		
			  
		

		
			  
		

		
			ARTICLE IX 
		

		
			CLAWBACK 
		

		
			  
		

		
			All Cash Awards and Equity Based Awards granted under the MIP (whether vested or unvested) shall be subject to the terms of the Company’s recoupment, clawback or similar policy as such may be in effect from time to time, as well as any similar provisions of applicable law, Securities and Exchange Commission rule or regulation or stock exchange requirement, which could in certain circumstances require repayment or forfeiture of Cash Awards and Equity Based Awards (including any value received from a disposition of the stock acquired upon payment of the Equity Based Awards). 
		

		
			  
		

		
			

		 

		

			

		

		

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			ARTICLE X 
		

		
			AMENDMENT OR TERMINATION OF PLAN 
		

		
			  
		

		
			The Board of Directors reserves the right to amend or terminate the MIP at any time, based on the recommendation of the Committee.  
		

		
			  
		

		
			In the event the MIP is amended by the Board of Directors more than 90 days after the beginning of a plan year in a manner which could reduce the award payable to a Participant for that plan year, the Participant shall continue to be eligible for incentive awards, if earned, for the plan year in which the amendment of the MIP occurs, with incentive awards being prorated as of the date of the MIP amendment based on the old and new provision of the MIP, unless otherwise agreed by the Participant. 
		

		
			  
		

		
			In the event the MIP is terminated by the Board of Directors, unless otherwise agreed by a Participant, Participants shall continue to be eligible for incentive awards, if earned, for the plan year in which the termination of the MIP occurs, with incentive awards being prorated as of the date of the MIP termination. 
		

		
			  
		

		
			  
		

		
			ARTICLE XI 
		

		
			NO RIGHT OF ASSIGNABILITY 
		

		
			  
		

		
			Participant awards shall not be subject to assignment, pledge or other disposition, nor shall such amounts be subject to garnishment, attachment, transfer by operation of law, or any legal process. 
		

		
			   
		

		
			Nothing contained in the MIP shall confer upon employees any right to continued employment, nor interfere with the right of the Company to terminate a MIP Participant’s employment with the Company or any subsidiary.  Participation in the MIP does not confer rights to participation in other Company programs, including non-qualified retirement or deferred compensation plans or other executive perquisite programs. 
		

		
			  
		

		
			The MIP is intended to constitute an “unfunded” plan for incentive compensation.  With respect to any award as to which a Participant has an earned and vested interest but which is not yet paid to the Participant, nothing contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the Company. 
		

		
			  
		

		
			  
		

		
			ARTICLE XII 
		

		
			GOVERNING LAW 
		

		
			  
		

		
			The MIP shall be governed, construed, and administered in accordance with the laws of the Commonwealth of Virginia. 
		

		
			  
		

		
			In the event any provision of the MIP shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the MIP. 
		

		
			  
		

		
			  
		

		
			As amended by the Board of Directors on February 20,  2018.     
		

		
			
		

		 

		

			

		

		

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