Document:

pjt-ex101_532.htm

Exhibit 10.1 

RESTRICTED STOCK UNIT GRANT NOTICE
UNDER THE
PJT Partners Inc. 2015 OMNIBUS INCENTIVE PLAN

(Restricted Stock Unit Grant Notice)

PJT Partners Inc. (the “Company”), pursuant to the PJT Partners Inc. 2015 Omnibus Incentive Plan (as amended, modified or supplemented from time to time, the “Plan”), hereby grants to the Participant set forth below the number of Restricted Stock Units (“RSUs”) set forth below.  The RSUs are subject to all of the terms and conditions as set forth herein, in the RSU Award Agreement (attached hereto) and the Plan, each of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan.

	
Participant:
	
[NAME]

	
Date of Grant: 
	
[DATE]

	
Number of RSUs: 
	
[#]

	
Normal Vesting Schedule:
	
Provided the Participant has not undergone a Termination, RSUs will vest:

	

	
 

 

provided, however, that unvested RSUs will become 100% vested upon a Change in Control that occurs prior to the Participant undergoing a Termination.  

	
Treatment upon Termination:
	
In the event of a Termination by the Company without Cause including as a result of the Participant’s Disability, then all of the Participant’s unvested RSUs will vest as of the date of Termination.

	

	
In the event of a Termination as a result of the Participant’s death, then all of the Participant’s unvested RSUs will vest as of the date of Termination.

	
Forfeiture Events:
	
In the event of the Participant’s Termination for any reason other than as set forth above, any then unvested RSUs shall be forfeited automatically without further action.

In the event of the Participant’s breach of any agreement not to compete, not to solicit employees or customers or not to solicit clients, any then unvested RSUs shall be forfeited automatically without further action.

 

 

 

	
Dividend Equivalent Rights:
	
Whenever any per share dividend or distribution is paid by the Company on Common Stock during the period between the Date of Grant and the date that the RSUs are settled, on the date that such dividend or distribution is paid, the Company shall credit to the Participant a number of additional RSUs equal to the quotient obtained by dividing (i) the product of the total number of the Participant’s RSUs (including any RSUs that have been previously credited to the Participant) as of the date thereof and the per share amount of such dividend or distribution by (ii) the Fair Market Value of one share of Common Stock on the date such dividend or distribution is paid by the Company, rounded down to the nearest whole share.  The additional RSUs so credited shall be or become vested to the same extent as the RSUs that resulted in the crediting of such additional RSUs. 

	
Definitions:
	
“Cause” shall have the meaning set forth in the Participant’s Partner Agreement or Contracting Employee Agreement, as applicable, any similar agreement or, if no such agreement or definition therein exists, “Cause” shall have the meaning set forth in the Plan.

	

	
“Restricted Stock Unit” shall have the meaning set forth in the Plan. 

	

	
“Termination” shall mean the Participant’s termination of service with the Company and its affiliates (including, for the avoidance of doubt, the Partnership and its affiliates).

***

 

 

 

 

THE UNDERSIGNED PARTICIPANT ACKNOWLEDGES RECEIPT OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RSU AWARD AGREEMENT, AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RSUS HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RSU AWARD AGREEMENT AND THE PLAN.
 

[NAME]

 

________________________________

 

 

 

 

PJT Partners inc. 

 

________________________________
By:
Title:

 

 

 

 

 

RSU AWARD AGREEMENT
UNDER THE
PJT Partners Inc.
2015 OMNIBUS INCENTIVE PLAN

 

(Restricted Stock Unit Grant)

Pursuant to the Restricted Stock Unit Grant Notice (the “Grant Notice”) delivered to the Participant (as defined in the Grant Notice), and subject to the terms of this RSU Award Agreement (this “RSU Award Agreement”) and the PJT Partners Inc. 2015 Omnibus Incentive Plan (as amended, modified or supplemented from time to time, the “Plan”), PJT Partners Inc. (the “Company”) and the Participant agree as follows.  Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan or the Grant Notice, as applicable. 

1. Grant of RSUs.  Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant the number of RSUs provided in the Grant Notice.  The Company reserves all rights with respect to the granting of additional RSUs hereunder and makes no implied promise to grant additional RSUs. 

2. Vesting.  Subject to the conditions contained herein and in the Plan, the RSUs granted under any Grant Notice shall vest and the restrictions on such RSUs shall lapse as provided in the applicable Grant Notice.  

3. Settlement of RSUs. Settlement of RSUs shall be made within 30 days following the applicable vesting date.  The provisions of Section 9(d) of the Plan are incorporated herein by reference and made a part hereof.  

4. Company; Participant. 

(a) The term “Company” as used in this RSU Award Agreement with reference to employment shall include the Company and its affiliates. 

(b) Whenever the word “Participant” is used in any provision of this RSU Award Agreement under circumstances where the provision should logically be construed to apply to the Permitted Transferees, the executors, the administrators, or the person or persons to whom the RSUs may be transferred as otherwise contemplated under the Plan, by will or by the laws of descent and distribution, the word “Participant” shall be deemed to include such person or persons. 

5. Non-Transferability. The RSUs are not transferable by the Participant except to the extent permitted under the terms of the Plan.  Except as otherwise provided herein, no assignment or transfer of the RSUs, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the RSUs shall terminate and become of no further effect. 

6. Rights as Stockholder. The Participant or a permitted transferee of the RSUs shall have no rights as a stockholder with respect to any share of Common Stock underlying a 

 

 

 

RSU unless and until the Participant shall have become the holder of record or the beneficial owner of such Common Stock, and no adjustment shall be made for dividends or distributions or other rights in respect of such share of Common Stock for which the record date is prior to the date upon which the Participant shall become the holder of record or the beneficial owner thereof.  

7. Tax Withholding.  The provisions of Section 14(c) of the Plan are incorporated herein by reference and made a part hereof. 

8. Clawback/Forfeiture.  Notwithstanding anything to the contrary contained in the Plan, the Grant Notice or this RSU Award Agreement, if the Participant otherwise has engaged in or engages in any Detrimental Activity, (i) the Committee may in its sole discretion cancel the RSUs and (ii) the Participant will forfeit any gain realized on the vesting of such RSUs, and must repay the gain to the Company.  The Committee may also provide that if the Participant receives any amount in excess of what the Participant should have received under the terms of the RSUs for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), then the Participant shall be required to repay any such excess amount to the Company. Without limiting the foregoing, all RSUs shall be and remain subject to any clawback or similar policy, adopted by the Board or the Committee, as may be in effect from time to time.

9. Notice.  Every notice or other communication relating to this RSU Award Agreement between the Company and the Participant shall be in writing, and shall be mailed or delivered to the party for whom it is intended at such address as may from time to time be designated by such party in a notice mailed or delivered to the other party as herein provided; provided that, unless and until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed or delivered to the Company at its principal executive office, to the attention of the Office of the General Counsel, and all notices or communications by the Company to the Participant may be given to the Participant personally or may be mailed to the Participant at the Participant’s last known address, as reflected in the Company’s records.  Notwithstanding the above, all notices and communications between the Participant and any third-party plan administrator shall be mailed, delivered, transmitted or sent in accordance with the procedures established by such third-party plan administrator and communicated to the Participant from time to time. 

10. No Right to Continued Service.  This RSU Award Agreement does not confer upon the Participant any right to continue as an employee, partner or other service provider to the Company. 

11. Binding Effect.  This RSU Award Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto. 

12. Waiver and Amendments.  Except as otherwise set forth in Section 13 of the Plan, any waiver, alteration, amendment or modification of any of the terms of this RSU Award Agreement shall be valid only if made in writing and signed by the parties hereto; provided, however, that any such waiver, alteration, amendment or modification is consented to on the Company’s behalf by the Committee.  No waiver by either of the parties hereto of their rights 

 

 

 

 

hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.  

13. Governing Law. This RSU Award Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof.  Notwithstanding anything contained in this RSU Award Agreement, the Grant Notice or the Plan to the contrary, if any suit or claim is instituted by the Participant or the Company relating to this RSU Award Agreement, the Grant Notice or the Plan, the Participant hereby submits to the exclusive jurisdiction of and venue in the courts of Delaware. 

14. Plan. The terms and provisions of the Plan are incorporated by reference and made a part of this RSU Award Agreement as though set forth in full herein.  In the event of a conflict or inconsistency as between such documents, the Plan shall govern and control.  

15. Recapitalizations, Exchanges, Etc., Affecting RSUs.  The provisions of this RSU Award Agreement shall apply, to the full extent set forth herein with respect to RSUs, to any and all securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be granted in respect of, in exchange for, or in substitution of the RSUs, by reason of any dividend, distribution, combination, recapitalization, reclassification, merger, consolidation or otherwise.

16. Section 409A. To the extent that any provision of this Agreement is ambiguous as to its exemption from Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder are exempt from Section 409A of the Code. Notwithstanding the foregoing, if this award of RSUs is interpreted as not being exempt from Section 409A of the Code, it shall be interpreted to comply with the requirements of Section 409A of the Code. In this regard, if this award is payable upon Participant’s “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code (a “Separation”) and Participant is a “specified employee” of the Company or any affiliate thereof within the meaning of Section 409A(a)(2)(B)(i) of the Code on the date of Separation, then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after Separation, or (ii) Participant’s death, but only to the extent such delay is necessary so that this award is not subject to additional tax or interest under Section 409A of the Code.

17. Entire Agreement.  This RSU Award Agreement, including the Grant Notice, and Plan referenced herein constitute the complete, final and exclusive embodiment of the entire agreement between Participant and the Company with regard to the subject matter hereof, and supersedes any and all agreements related to the subject matter hereof.Exhibit 10.1

 

 

 

 

 

 

 

VILLAGE BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

 

 

 

 

 

 

 

 

 

 

 

As Amended and Restated 

Effective July 9, 2016

 

     

     

    

 

 

VILLAGE BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

As Amended and Restated Effective July 9, 2016

 

Table of Contents 

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS	1
	1.01	Administrator   	1
	1.02	Bank   	1
	1.03	Benefit Commencement Date   	1
	1.04	Board   	1
	1.05	Cause   	1
	1.06	Change in Control  	1
	1.07	Code   	1
	1.08	Committee   	1
	1.09	Disabled   	1
	1.10	Effective Date   	2
	1.11	Eligible Employee   	2
	1.12	Employer   	2
	1.13	ERISA   	2
	1.14	Named Fiduciary  	2
	1.15	Participant   	2
	1.16	Participating Employer  	2
	1.17	Period of Service or Service  	2
	1.18	Plan   	2
	1.19	Plan Year   	2
	1.20	Present Value   	2
	1.21	Regulations or Treasury Regulations  	3
	1.22	Retirement   	3
	1.23	Service Requirement  	3
	1.24	Specified Employee  	3
	1.25	Supplemental Benefit  	3
	1.26	Termination of Employment  	3
	1.27	Years of Service  	3
	 	 	 
	ARTICLE II GENERAL   	4
	2.01	Effective Date   	4
	2.02	Purpose   	4
	 	 	 
	ARTICLE III ELIGIBILITY AND PARTICIPATION  	5
	3.01	Eligibility   	5
	3.02	Participation   	5

 

    	 	i	 

     

    

 

VILLAGE BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

As Amended and Restated Effective July 9, 2016

 

	ARTICLE IV SUPPLEMENTAL BENEFIT	6
	4.01	Supplemental Benefit	6
	4.02	Termination of Employment	6
	4.03	Accelerated Vesting	6
	4.04	Normal Form and Timing of Supplemental Benefit	6
	4.05	General Limitations	7
	4.06	No Acceleration of Payment	7
	 	 	 
	ARTICLE V DEATH BENEFITS	8
	5.01	Pre-Retirement Survivor Benefit	8
	5.02	Post-Retirement Survivor Benefit	8
	5.03	Beneficiary Designation	8
	5.04	Suicide	8
	 	 	 
	ARTICLE VI ADMINISTRATION	9
	6.01	Bank as Administrator	9
	6.02	Appointment of Advisors	9
	6.03	Administrative Rules	9
	6.04	Duties	9
	6.05	Fees	10
	 	 	 
	ARTICLE VII CLAIMS PROCEDURE	10
	ARTICLE VIII AMENDMENT AND TERMINATION	11
	8.01	Amendment	11
	8.02	Termination	11
	 	 	 
	ARTICLE IX MISCELLANEOUS PROVISIONS	11
	9.01	Alienation	11
	9.02	Incapacity	11
	9.03	Successors and Assigns	11
	9.04	Limitation of Rights	11
	9.05	No Funding of the Plan	12
	9.06	Severability	12
	9.07	Notification of Addresses	12
	9.08	Receipt and Release for Payments	12
	9.09	Headings	12
	9.10	Indemnification	12
	9.11	Tax Withholding	12
	9.12	Responsibility for Legal Effect	13
	9.13	Successors, Acquisitions, Mergers, Consolidations	13
	9.14	Governing Law	13
	9.15	Bonding	13
	9.16	Usage	13
	9.17	Section 409A Provisions	13

 

	EXHIBIT A 	DESIGNATION OF BENEFICIARY	
	SCHEDULE A	EMPLOYEES APPROVED FOR PLAN PARTICIPATION	 
	SCHEDULE B	SCHEDULE OF BENEFITS	 
	SCHEDULE C	PARTICIPATING EMPLOYERS	 

  

 

    	 	ii	 

     

    

 

ARTICLE I 

DEFINITIONS 

 

Wherever
used in the Plan, the following words and phrases shall have the meanings set forth below unless the context plainly requires a
different meaning:

 

1.01 "Administrator"
means the person or persons described in Section 6.01 hereof.

 

1.02
"Bank" means Village Bank and any successor thereto. The Bank is the sponsor of the Plan.

 

1.03“Benefit
Commencement Date” means the date a Participant’s Plan benefit payments begin as specifically set out in Schedule
B or, if no such date is provided in Schedule B, the date provided in Section 4.04.

 

1.04 "Board" means the Board
of Directors of the Bank.

 

1.05
"Cause" means (i) the failure of a Participant to perform his duties or comply with reasonable directions
of the Board; (ii) the determination by the Board in the exercise of its reasonable judgment that the Participant has committed
an act or acts constituting (1) a felony or other crime involving moral turpitude, dishonesty or theft, (2) dishonesty or disloyalty
with respect to the Bank, or (3) fraud; or (iii) the Participant's gross negligence in the performance of his duties.

 

1.06
"Change in Control" means, after the Effective Date of this Plan, (1) any person, including a group as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934, who becomes the owner or beneficial owner of Bank securities having 50%
or more of the combined voting power of the then outstanding Bank securities that may be cast for the election of the Bank's directors
other than a result of an issuance of securities initiated by the Bank, or open market purchases approved by the Board, as long
as the majority of the Board approving the purchases is a majority at the time the purchases are made; or (ii) as the direct or
indirect result of, or in connection with, a tender or exchange offer, a merger or other business combination, a sale of assets,
contested election, or any combination of these events, the persons who were directors of the Bank before such events cease to
constitute a majority of the Bank's Board, or any successor's board, within two years of the last of such transactions. For purposes
of this Plan, the date of a Change in Control is the date on which an event described in (i) or (ii) occurs. If a Change in Control
occurs on account of a series of transactions, the date of the Change in Control is the date of the last of such transactions.

 

1.07
"Code" means the Internal Revenue Code of 1986, as amended from time to time.

 

1.08
"Committee" means the Personnel Committee appointed by the Board of Directors.

 

1.09
"Disabled" means the Participant is (a) unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, or (b) by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health plan covering employees of the Participant's Employer.

 

    	 	1	 

     

    

 

 

1.10 "Effective
Date" means October 20, 2003. The effective date of the prior amendment and restatement was January 1, 2008, and
the effective date of the most recent amendment and restatement is July 9, 2016.

 

1.11"Eligible
Employee" means any officer or other key employee of the Bank as defined by resolution of the Committee and approved by
the Board of Directors.

 

1.12 "Employer"
means the Bank or a Participating Employer thereof, as set forth in Schedule C hereto.

 

1.13"ERISA"
means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

1.14 "Named Fiduciary"
means the Bank.

 

1.15"Participant"
means an Eligible Employee who is participating in the Plan in accordance with Section 3.01 hereof, as shown on Schedule A,
and has not, for any reason, become ineligible to participate in the Plan.

 

1.16"Participating
Employer" means any subsidiary or affiliate of the Bank that the Bank has approved for participation in the Plan and that
otherwise has approved and adopted the Plan.

 

1.17"Period
of Service" or "Service" means the period commencing October 20, 2003, or, if later, the date an Eligible Employee
becomes a Participant in this Plan and ending on the Participant's Termination of Employment or Retirement. Each Participant's
required Period of Service is described in Schedule B.

 

1.18"Plan"
means the Village Bank Supplemental Executive Retirement Plan.

 

1.19
"Plan Year" means the calendar year.

 

1.20"Present
Value" means the present value of the Participant's Supplemental Benefit calculated for purposes of Section 5.01, (a)
using a present value discount rate determined under Section 7520(a)(2) of the Code based on applicable guidance published for
the month of the payment under Section 5.01, and (b) assuming the Supplemental Benefit otherwise would have been distributed in
a series of equal monthly payments for the period provided on Schedule B, commencing on the date payment is actually made under
Section 5.01, and continuing on the first day of each month thereafter during the applicable payment period.

 

 

    	 	2	 

     

    

  

VILLAGE BANK

SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN 

As Amended and Restated Effective July 9, 2016 

 

 

1.21"Regulations"
or "Treasury Regulations" means the federal income tax

 

regulations, as promulgated by the
Secretary of the Treasury or its delegate (as amended from time to time).

 

1.22"Retirement"
means a Participant's separation from service (within the meaning of Code section 409A) with the Bank and any Participating Employer,
without regard to age, on or after the date the Participant has met his Service Requirement described in Schedule B.

 

1.23“Service
Requirement” means the Period of Service or time (as applicable) specified in Schedule B, for purposes of determining
a Participant’s eligibility to commence receiving Plan benefits.

 

1.24"Specified
Employee" means an Eligible Employee who, as of December 31 of any calendar year, satisfies the requirement of Code Section
416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with Treasury Regulations thereunder and disregarding Code Section 416(i)(5)).
An Eligible Employee who meets the criteria set forth in the preceding sentence will be considered a Specified Employee for purposes
of the Plan for the 12-month period commencing on the next following April 1.

 

1.25"Supplemental
Benefit" means a Participant's benefit under this Plan as described at Schedule B. Except as otherwise provided herein,
the Supplemental Benefit of a Participant who experiences a Termination of Employment shall be determined in accordance with Section
4.02.

 

1.26"Termination
of Employment" means any termination of employment with the Bank prior to the Participant meeting his Service Requirement
described in Schedule B, including a termination of employment because of the Participant has been determined to be Disabled. For
purposes of this Plan, the employment status of the Participant and the date of termination of the Participant's employment shall
be determined by the Bank in accordance with Code section 409A and Treasury Regulations.

 

1.27"Years
of Service", for purposes of vesting, means the total number of whole years of a Participant's Periods of Service accrued
on or after October 20, 2003, or, if later, on and after the Eligible Employee becomes a Participant.

 

    	 	3	 

     

    

 

 

VILLAGE BANK 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN 

As Amended and Restated Effective July 9, 2016

 

ARTICLE II

GENERAL 

 

2.01
Effective Date. The provisions of the Plan were originally adopted as the Southern Community Bank & Trust
Supplemental Executive Retirement Plan effective October 20, 2003. The Plan was amended and restated as the Village Bank Supplemental
Executive Retirement Plan effective January 1, 2005. The Plan was amended and restated effective January 1, 2008, to make certain
changes to comply with Code Section 409A and Treasury Regulations and other guidance thereunder, including transition rules. The
Plan is again amended and restated effective July 9, 2016, to clarify provisions consistent
with the Bank’s original intent and the manner in which the Plan has been operated. The rights, if any, of any person whose
status as an employee of the Bank, and its subsidiaries or affiliates, if any, has terminated shall be determined pursuant to the
Plan as in effect on the date such employee terminated, unless subsequently adopted provisions of the Plan are made specifically
applicable to such person.

 

2.02
Purpose. The purpose of the Plan is to provide supplemental retirement income to a Participant. The Plan is intended
to be (and shall be construed and administered as) an "employee pension benefit plan" under the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA") which is unfunded and is maintained by the Bank solely to provide retirement
income to a select group of management or highly compensated employees. The Plan also is intended to comply with Code Section 409A
and Treasury Regulations thereunder. All provisions of the Plan, including elections, consents and modifications thereto, should
be interpreted consistent with that intent. If any provision of the Plan, including any election procedures, consents or modifications
thereto, would be prohibited by or inconsistent with Code section 409A, then such provision shall be amended to comply with Code
section 409A. The Administrator is authorized to adopt rules or regulations deemed necessary or appropriate to anticipate or comply
with Code section 409A and to declare any election, consent or modification thereto void if non-compliant with Code section 409A.

 

    	 	4	 

     

    

  

VILLAGE BANK 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN 

As Amended and Restated Effective July 9, 2016

 

ARTICLE III 

ELIGIBILITY AND PARTICIPATION

 

3.01
Eligibility. Eligibility for Plan participation shall be limited to those employees who otherwise constitute a select
group of management and highly compensated employees of the Employer. The Committee shall, with Board approval, designate whether
and when an employee is eligible to participate in the Plan.

 

3.02
Participation. An Eligible Employee, once designated Committee and approved by the Board in writing to participate in
the Plan, shall become a Participant sixty (60) days following the date of his or her designation and approval (unless an earlier
participation date for such Eligible Employee is specifically designated and approved) and shall be listed on Schedule A. An Eligible
Employee who becomes a Participant shall remain a Participant unless and until the Committee resolves that such employee is no
longer eligible to participate in the Plan. Any action to remove a previously Eligible Employee shall be effective as of the later
of: (i) the date the action is taken or (ii) the stated effective date of the action. An employee whose participation in the Plan
is revoked and terminated shall be provided only those benefits to which he otherwise is entitled, under the terms of Article IV,
as to participation through his or her termination of participation.

 

    	 	5	 

     

    

 

 

VILLAGE BANK 

SUPPLEMENTAL EXECUTIVE RETIREMENT
PLAN 

As Amended and Restated Effective July 9, 2016

 

ARTICLE IV 

SUPPLEMENTAL BENEFIT

 

4.01
Supplemental Benefit. Except as otherwise provided herein, each Participant shall be entitled to a Supplemental Benefit
beginning after his Retirement, in accordance with Section 4.04, pursuant to the Schedule of Benefits attached hereto as Schedule
B.

 

4.02
Termination of Employment. The Supplemental Benefit of a Participant who has a Termination of Employment shall be determined
by multiplying the amount of his Supplemental Benefit, provided in Schedule B, by a fraction in which the Participant's total Years
of Service (up to a maximum of his Service Requirement) is the numerator and the Participant's Service Requirement, as provided
on Schedule B, is the denominator.

  

4.03 Accelerated
Vesting. Notwithstanding the Participant's Service Requirement described in Schedule B, if a Participant becomes Disabled
or has a Termination of Employment due to death, vesting will accelerate and the Participant will be entitled to the full amount
of his Supplemental Benefit as if he has satisfied the requirements for Retirement. In addition, upon a Change in Control, vesting
will accelerate, and the Participant will be entitled to the full amount of his Supplemental Benefit, without regard to his Service
Requirement, upon Termination of Employment or Retirement.

 

 4.04 Normal
Form and Timing of Supplemental Benefit.

 

(a)                     
A Participant's Supplemental Benefit shall be paid in a series of equal monthly payments for the period provided
on Schedule B, on the first day of each applicable month.

 

(b)                    
Except as otherwise provided in this Section 4.04 or unless a different Benefit Commencement Date is set forth on
Schedule B, Supplemental Benefit payments shall commence on the first day of the month following the Participant's Retirement.
A Supplemental Benefit payment made to a Specified Employee shall commence on the first day of the month following the six-month
anniversary of the Specified Employee's Retirement, unless an exception to this delay applies under Code section 409A — e.g.,
in the case of Disability or payment beginning on a specified Benefit Commencement Date. The initial payment made under the
preceding sentence shall include amounts that would have been paid through the date of such initial payment had the Participant
not been a Specified Employee.

 

    	 	6	 

     

    

 

VILLAGE BANK 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN 

As Amended and Restated Effective July 9, 2016

 

(c)Except
as provided in the following sentence, if a Participant has a Termination of Employment, then payments shall commence on the first
day of the month following the date on which the Participant would have fulfilled the Service Requirement had he or she remained
employed by the Bank or any Participating Employer. No payment shall be made to a Specified Employee prior to the first day of
the month following the six-month anniversary of the Specified Employee's Termination of Employment, however, unless an exception
to this delay applies under Code section 409A — e.g., in
the case of Disability or payment beginning on a specified Benefit Commencement Date. In the event of such a delay, the initial
payment shall include amounts that would have been paid through the date of such initial payment had the Participant not been a
Specified Employee.

 

4.05 General
Limitations. Notwithstanding any provision of this Plan to the contrary, the Bank shall not pay any benefit under this
Plan if such payment would result in the violation of any banking law, regulation or regulatory order.

 

4.06 No Acceleration
of Payment. Except as provided in Code section 409A and Treasury Regulations thereunder, no acceleration in the time or
schedule of any payment or amount scheduled to be paid under the Plan is permitted.

 

    	 	7	 

     

    

 

VILLAGE BANK 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN 

As Amended and Restated Effective July 9, 2016

 

ARTICLE V 

DEATH BENEFITS

 

5.01 Pre-Termination
Survivor Benefit. If a Participant dies while employed by the Bank, the Participant's spouse, or the Participant's designated
beneficiary in the event the Participant has no spouse or the spouse fails to survive the Participant, shall be entitled to receive
the amount by which (i) the Present Value of the full amount of the Participant's Supplemental Benefit (taking into account any
accelerated vesting applicable under Section 4.03) exceeds (ii) the death benefits payable to a beneficiary designated by the Executive
under a life insurance contract owned by the Bank and subject to a split dollar insurance agreement between the Bank and the Participant.
Payment due under this Section 5.01 shall be made within ninety (90) days following the Participant's death, in a lump sum.

 

5.02 Post-Termination
Survivor Benefit. If a Participant dies after his Retirement or Termination of Employment, the Participant's spouse, or
the Participant's designated beneficiary in the event the Participant has no spouse or the spouse fails to survive the Participant,
shall be entitled to receive the remaining installments of his Supplemental Benefit at the time or times such installments would
have been paid under Article IV.

 

5.03 Beneficiary
Designation. A Participant shall designate a primary and contingent beneficiary on the form furnished by the Bank (attached
hereto as Exhibit A), which may be changed by the Participant from time to time by written notice to the Bank and upon such change
the rights of all previously designated beneficiaries to receive any benefits under this Plan shall cease. If the Participant's
spouse fails to survive him and (i) the Participant has failed to make a beneficiary designation, (ii) no person designated as
beneficiary is alive, (iii) no trust has been established, or (iv) no successor beneficiary has been designated who is alive, the
beneficiary shall be the Participant's surviving children, or if no children are alive, the Participant's parent or parents, or
if no parent is alive, the legal representative of the deceased Participant's estate.

 

5.04 Suicide.
Notwithstanding anything to the contrary in this Plan, the benefits otherwise provided herein shall not be payable if the Participant's
death results from suicide, whether sane or insane, within two (2) years and three months after the date of the Participant's entry
into the Plan.

 

    	 	8	 

     

    

 

VILLAGE BANK 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

As Amended and Restated Effective July 9, 2016

 

ARTICLE VI 

ADMINISTRATION

 

6.01 Committee
as Administrator. The Bank has appointed the Committee to administer the Plan. Any action by the Committee shall be determined
by a vote of a majority of its members. Either the Chairman or the Secretary may produce or execute any certificate or other written
action or direction on behalf of the Committee. The Chairman or any two (2) members may call meetings. A majority of the members
of the Committee at the time in office shall constitute a quorum for the transaction of business.

 

6.02 Appointment
of Advisors. The Bank may appoint such legal counsel, consultants, accountants, record keepers, actuaries, auditors and
other persons, as the Bank deem necessary or appropriate for the proper administration of the Plan.

 

6.03 Administrative
Rules.  The Administrator may adopt such rules of procedure as it deems desirable for the conduct of its affairs, except
to the extent that such rules conflict with the provisions of the Plan.

 

6.04 Duties.  The Administrator
shall have the following rights, powers and duties:

 

(a)                 
The decision of the Administrator in matters within its jurisdiction shall be final, binding and conclusive upon
the Bank and upon any other person affected by such decision, subject to the claims procedure hereinafter set forth.

 

(b)                 
The Administrator shall have the duty and authority to interpret and construe the provisions of the Plan, to decide
any question that may arise regarding the rights of employees, Participants and beneficiaries, and the amounts of their respective
interests, to adopt such rules and to exercise such powers as the Administrator may deem necessary for the administration of the
Plan, and to exercise any other rights, powers or privileges granted to the Administrator by the terms of the Plan. No benefit
shall be payable under the Plan unless the Administrator in its sole discretion determined that such benefit is due.

 

(c)                 
The Administrator shall keep a record of any formal actions taken, and shall keep such other records and accounts
as may be necessary for the proper administration of the Plan. The Administrator shall be responsible for supplying such information
and reports to the Internal Revenue Service, the U.S. Department of Labor and the Participants as required by law.

 

(d)                 
The Administrator shall cause the principal provisions of the Plan to be communicated to the Participants, and a
copy of the Plan and other documents to be available at the principal office of the Bank for inspection by the Participants at
reasonable times determined by the Administrator.

 

    	 	9	 

     

    

 

 VILLAGE BANK 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

As Amended and Restated Effective July 9, 2016

 

(e)                 
The Administrator shall periodically report to the Board, no less frequently than annually, with respect to the status of the
Plan.

 

6.05
Fees. Notwithstanding any compensation arrangements entered into between the Bank and any Administrator member, no
fee or compensation shall be paid to any person for service on the Committee with respect to the administration of the Plan. 

 

ARTICLE VII 

CLAIMS PROCEDURE

 

Claims for benefits
under the Plan must be filed with the Administrator on forms supplied by the Bank. The Administrator shall be responsible for deciding
whether such claim is within the scope provided by the Plan (a "Covered Claim") and for providing full and fair review
of the decision with respect to such claim. In addition, the Administrator shall provide a full and fair review in accordance with
ERISA and applicable U.S. Department of Labor Regulations, including without limitation Section 503 thereof.

 

Each Claimant or other
interested person shall file with the Administrator such pertinent information as the Administrator may specify, and in such manner
and form as the Administrator may specify and provide, and such person shall not have any rights or be entitled to any benefits
or further benefits hereunder, as the case may be, unless such information is filed by the Claimant or on behalf of the Claimant.
Each Claimant shall supply at such times and in such manner as may be required, written proof that the benefit is covered under
the Plan. If it is determined that a Claimant has not incurred a Covered Claim or if the Claimant shall fail to furnish such proof
as is requested, no benefits or no further benefits hereunder, as the case may be, shall be payable to such Claimant.

 

For all purposes under
the Plan, the decision with respect to a claim if no review is requested and the decision with respect to a claim if review is
requested shall be final, binding and conclusive on all interested parties as to matters relating to the Plan.

 

    	 	10	 

     

    

 

 

VILLAGE BANK 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN 

As Amended and Restated Effective July 9, 2016

 

ARTICLE VIII 

AMENDMENT AND TERMINATION

 

8.01 Amendment.
The Bank reserves the right to amend the Plan in any manner that it deems advisable by a resolution of the Board. No amendment
shall, without the Participant's consent, affect the amount of the Participant's Supplemental Benefit at the time the amendment
becomes effective or the right of the Participant to receive a Supplemental Benefit to which the Participant has become entitled
in accordance with Article IV of the Plan.

 

8.02 Termination.
The Bank reserves the right to terminate the Plan at any time by resolution of the Board. No termination shall, without the
consent of the Participant, affect the amount of the Participant's Supplemental Benefit prior to the termination of the right of
the Participant to receive a Supplemental Benefit to which the Participant has become entitled in accordance with Article IV of
the Plan. Any termination of the Plan shall be carried out in accordance with Code section 409A and Treasury Regulation section
l.409A-3(j)(4)(ix).

 

ARTICLE IX 

MISCELLANEOUS PROVISIONS 

 

9.01 Assignment and Aienation.

 

(a)         
Subject to the exceptions provided below or as required by applicable law, no benefit that shall be payable hereunder to
any person (including a Participant, Spouse or Beneficiary) shall be subject in any manner to anticipation, alienation, sale, transfer,
assign, pledge, encumbrance, charge or attachment. Subject to the exceptions provided below or as required by applicable law, any
attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or attach any benefit payable hereunder shall
be void. Subject to the exceptions provided below or as required by applicable law, no such benefit shall be liable for, or subject
to, the debts, contracts, liabilities, engagements or torts of any person.

 

(b)        
Section 9.01(a) above shall not apply to any valid lien or offset imposed by the United States Internal Revenue Service
in accordance with Code Section 6331.

 

(c)         
Section 9.01(a) above shall not apply to any valid lien or offset imposed by the Bank or other Employer with respect to
a debt owed to the Bank or other Employer by the Participant, spouse or designated beneficiary.

 

9.02 Incapacity.
 If the Administrator determines, or concurs with a determination by a competent professional presented to it, that any person
to whom such benefit is payable is incompetent by reason of physical or mental disability, the Administrator may cause the payments
becoming due to such person to be made to another for his benefit. Payments made pursuant to this Section shall, as to such payment,
operate as a complete discharge of the Plan, the Bank and the Administrator.

 

9.03 Successors
and Assigns. The provisions of the Plan are binding upon and inure to the benefit of the Bank, its respective successors
and assigns, and the Participant and his beneficiaries, heirs, legal representatives, and assigns.

 

9.04 Limitation
of Rights. This Plan shall not be deemed to constitute a contract of employment between any Employer and any Participant
or employee (or be deemed consideration or an inducement for the employment of any Participant or employee). Nothing contained
in this Plan shall be deemed to give any Participant or employee the right to be retained in the service of any Employer or interfere
with the right of any Employer to discharge any Participant or employee at any time, regardless of the effect that such discharge
may have upon such Participant or employee under this Plan.

 

 

    	 	11	 

     

    

 

 

VILLAGE BANK 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

As Amended and Restated Effective July 9, 2016

 

9.05 No Funding
of the Plan. Any liability of the Bank to any Participant with respect to any benefit payable hereunder shall be based
solely upon any contractual obligation created under the Plan. No obligation hereunder shall be deemed secured by any pledge or
encumbrance upon any specific assets of the Bank. No Participant shall have any rights under the Plan, other than those of a general,
unsecured creditor of the Bank. The Bank may reserve (through a "rabbi trust" or similar arrangement) such funds as
the Bank may determine is necessary to provide the benefits accrued under the Plan. Any funds the Bank so reserved may be kept
in cash, invested or reinvested. Any assets that may be segregated, reserved, or otherwise identified by the Bank for the purpose
of paying benefits under the Plan nevertheless remain general assets of the Bank (and subject to the claims of the general creditors
of the Bank).

 

9.06 Severability.
If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the
remaining provisions of the Plan, but the Plan shall be construed and enforced as if such illegal or invalid provision had never
been included herein.

 

9.07 Notification
of Addresses. Each Participant shall file with the Administrator, from time to time, in writing, the post office address
of the Participant, the post office address of each Beneficiary, and each change of post office address. Any communication, statement
or notice addressed to the last post office address filed with the Administrator (or if no such address was filed with the Administrator,
then to the last post office address of the Participant or beneficiary as shown on the Bank's records) shall be binding on the
Participant and each beneficiary for all purposes of the Plan and neither the Administrator nor any Bank shall be obliged to search
for or ascertain the whereabouts of any Participant or beneficiary.

 

9.08 Receipt
and Release for Payments. Any payment to a Participant, spouse or beneficiary, or his or her legal representative, guardian
or committee, in accordance with the provisions of the Plan, shall, to the extent thereof, be in full satisfaction of all claims
hereunder against the Administrator or the Bank (either or whom may require such person, as a condition precedent to payment, to
execute a receipt and release of the Administrator and the Bank in a form determined by the Administrator and the Bank).

 

9.09 Headings.
The headings and subheadings of this Plan have been inserted for convenience of reference (and are to be ignored in
any construction of the provisions hereof).

 

9.10 Indemnification.
The Bank shall indemnify and hold harmless each person who may serve on the Committee from any and all claims, loss,
damages, expenses (including attorney's fees) and liability (including any amounts paid in settlement) arising from any act or
omission of such person or persons, except when the same is judicially determined to be due to the gross negligence or willful
misconduct of such person.

 

9.11 Tax Withholding.
The Bank shall withhold from any payment made by it under the Plan such amount or amounts as may be required for purposes
of complying with the tax withholding or other provisions of the Code, the Social Security Act, as amended, or any federal, state
or local income or employment tax provision; or otherwise, for purposes of paying any estate, inheritance or other tax attributable
to any amounts payable hereunder.

 

    	 	12	 

     

    

 

VILLAGE BANK 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

As Amended and Restated Effective July 9, 2016

 

9.12 Responsibility
for Legal Effect. Neither the Administrator nor the Bank makes any representations or warranties, express or implied, or
assumes any responsibility concerning the legal, tax, or other implications or effects of this Plan.

 

9.13 Successors,
Acquisitions, Mergers, Consolidations. The terms and conditions of the Plan inure to the benefit of, and bind, the Bank
and the Participants, and their successors, assigns and personal representatives.

 

9.14 Governing
Law. The Plan shall be subject to and construed in accordance with the laws of the Commonwealth of Virginia to the
extent not preempted by the provisions of ERISA.

 

9.15 Bonding.
The Committee and all agents and advisors employed by it shall not be required to be bonded, except as otherwise required by
ER1SA.

 

9.16 Usage.
Except where otherwise indicated by the context, any masculine terminology used herein shall also include the feminine and
vice versa, and the definition of any term herein in the singular shall also include the plural and vice versa.

 

9.17 Section 409A Provisions.

 

(a)                 
Any benefit, payment or other right provided by the Plan shall be provided or made in a manner, and at such time,
in such form and subject to such election procedures (if any), as complies with the applicable requirements of Code section 409A
to avoid a plan failure described in Code section 409A(a)(1), including without limitation, deferring payment until the occurrence
of a specified payment event described in Code section 409A(a)(2). Notwithstanding any other provision hereof or document pertaining
hereto, the Plan shall be so construed and interpreted to meet the applicable requirements of Code section 409A to avoid a plan
failure described in Code section 409A(a)(1).

 

(b)                 
It is specifically intended that all elections, consents and modifications thereto under the Plan will comply with
the requirements of Code section 409A (including any transition or grandfather rules thereunder). The Bank is authorized to adopt
rules or regulations deemed necessary or appropriate in connection therewith to anticipate and/or comply the requirements of Code
section 409A (including any transition or grandfather rules thereunder and to declare any election, consent or modification thereto
void if non-compliant with Code section 409A.

 

 

    	 	13	 

     

    

 

VILLAGE BANK 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN 

As Amended and Restated Effective July 9, 2016

 

IN WITNESS
WHEREOF, the Bank has caused this Plan to be executed by its duly authorized officer.

 

	 	VILLAGE BANK
	 	 	 
	 	By: 	/s/ William
G. Foster, Jr.
	 	 	 
	 	Date:	7/9/2016

 

 

    	 	14	 

     

    

 

 

EXHIBIT A

 

DESIGNATION OF BENEFICIARY

 

Pursuant to the terms of the VILLAGE BANK SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN, in which I am a Participant, I hereby designate the following beneficiary(ies) to receive any payment which
may be due under the Plan after my death:

 

Primary Individual Beneficiary(ies):

 

	Name 
 Percent	 	Relationship 	 	 
	 	 	 	 	 
	Contingent Individual Beneficiary (ies):	 	 	 
	Name 
 Percent	 	Relationship	 	 
	 	 	 	 	 
	 	 	 	 	 	 

  

This designation hereby revokes any prior designation which
may have been in effect.

 

		 	Date:	 
	 	 	 	 
	 	 	 	 
	Witness	 	 	Executive Officer
	Acknowledged by:  ___________________________	 	 	 

 

 

    	 	15	 

     

    

  

Last Updated July 9, 2016

 

 

 

SCHEDULE A

 

 

EMPLOYEES APPROVED FOR PLAN PARTICIPATION

 BY BOARD COMMITTEE RESOLUTION

 

	Eligible Employee	Functional Title	Participation Date
	 	 	 
	Thomas W. Winfree	Chief Executive Officer	10/20/03
	Jack M. Robeson	Senior Vice President, Lending	
        1/1/05 through 1/1/10 

	Raymond E. Sanders	
        Executive Vice President and Chief

        Operating Officer and Chief Risk Officer 
	1/1/05
	C. Harril Whitehurst, Jr.	Executive Vice President and Chief Financial Officer	1/1/05
	Dennis J. Falk	Executive Vice President, Chief Administrative Officer and Treasurer	
        7/1/06 through 8/15/15 

	William D. Stegeman	Senior Vice President, Retail	1/1/09 through 8/19/09
	Rebecca L. Kline	Executive Vice President, Retail Banking	
        9/1/09 through 6/30/15 

	Chris P. Kyriakides	Senior Vice President, Chief Lending Officer	11/1/09 through 2/15/12
	James Thomas Powell	Senior Vice President, Investment Services	
        4/1/10 through  8/1/11 

	William G. Foster	President and CEO	8/1/12
	Katherine K. Wagner	Senior Vice President, Chief Lending Officer	8/1/12 through 10/21/13
	James E. Hendricks, Jr.	Executive Vice President, Chief Credit Officer	11/1/13
	Max C. Morehead, Jr.	
        Executive Vice President, Commercial Banking 
	5/1/14

 

 

    	 	16	 

     

    

 

Last Updated
July 9, 2016

 

 

 

SCHEDULE B 

SCHEDULE OF BENEFITS 

 

	Eligible Employee	Date of Plan Participation	Fully Vested Benefit Amount, Payment Period and Benefit Commencement Date1	Service Requirement	Amount of Annual Supplemental Benefit Earned/Year of Service
	Thomas W. Winfree	October 20, 2003	$4,166.67/month for 240 months ($50,000/yr for 20 years), October 20, 2013	6 years	$8,333.33
	Jack M. Robeson	January 1, 2005 through January 1, 20102 	$1,041.67/month for 180 months ($12,500.04/yr for 15 years); July 1, 2015	10 years	$2,500.00
	Raymond E. Sanders	January 1, 2005	$2,083.33/month for 180 months ($25,000/yr for 15 years)	10 years	$2,500.00
	C. Harril Whitehurst, Jr.	January 1, 2005	$2,083.33/month for 180 months ($25,000/yr for 15 years)	10 years	$2,500.00
	Dennis J. Falk	July 1, 2006 through August 15, 20155	$2,083.33/month for 180 months ($25,000/yr for 15 years)	10 years	$2,500.00
	Rebecca L. Kline	September 1, 2009 through June 30, 20156 June 30, 2016	$2,083.33/month for 180 months ($25,000/yr for 15 years)	10 years	$2,500.00
	Chris P. Kyriakides	November 1, 2009 through February 15, 20123 	$2,083.33/month for 180 months ($25,000/yr for 15 years)	10 years	$2,500.00
	James T. Powell	April 1, 2010 through August 1, 20114 	$2,083.33/month for 180 months ($25,000/yr for 15 years)	10 years	$2,500.00
	William G. Foster	August 1, 2012	$4,166.67/month for 240 months ($50,000/yr for 20 years)	10 years	$5,000.00

	James E. Hendricks, Jr.	November 1, 2013	
        $2,083.33/month for 180  months ($25,000/yr
for  15 years)

         
	10 years	$2,500.00
	
        Max C. Morehead, Jr.

         
	May 1, 2014	$2,083.33/month for 180 months ($25,000/yr for 15 years)	10 years	$2,500.00

   

 

		1	If no Benefit Commencement Date is indicated above for
the Participant, then the Participant's benefit shall commence in accordance with Article IV.

 

		2	Participant had completed five (5) years of service when
his employment terminated.

 

		3	Participant had completed two (2) years of service when
his participation was terminated by the Committee.

 

		4	Participant had completed one (1) year of service when
his participation was terminated by the Committee.

 

		5	Participant had completed nine (9) years of service when
his employment terminated.

 

		6	Participant had completed five (5) years of service when
her participation was terminated by the Committee.

    	 	17	 

     

    

 

 

SCHEDULE C

 

PARTICIPATING EMPLOYERS

 

 

 

		1.	VILLAGE BANK

 

 

 

 

 

 

 

 

    	 	18

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