Document:

EX-4.1

 Exhibit 4.1 

NEITHER THE ISSUANCE NOR SALE OF THIS WARRANT NOR THE ORDINARY SHARES INTO WHICH THIS WARRANT IS EXERCISABLE HAS BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND THE ORDINARY SHARES INTO WHICH THIS WARRANT IS EXERCISABLE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN EXEMPTION FROM REGISTRATION UNDER THE ACT ACCOMPANIED BY, IF REASONABLY REQUESTED, AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE
COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. 
 QUOTIENT LIMITED

 (COMPANY NUMBER 109886) 

WARRANT TO PURCHASE 111,525 ORDINARY SHARES 

AUGUST 3, 2015 
 VOID AFTER AUGUST
3, 2025 
 THIS CERTIFIES THAT, for value received, MIDCAP FINANCIAL TRUST, with its address at c/o MidCap Financial Services, LLC,
as servicer, 7255 Woodmont Ave, Suite 200, Bethesda, MD 20814, or assigns (as permitted in accordance with Section 10 below) (together with its successors and permitted assigns, the “Holder”), is entitled to subscribe for and
purchase from Quotient Limited with registered number 109886, a limited liability company incorporated in Jersey, Channel Islands, with its registered office at Elizabeth House, 9 Castle Street, St Helier, Jersey JE2 3RT (the
“Company”), 111,525 Exercise Shares at the Exercise Price (each as defined below and each subject to adjustment as provided herein). This Warrant is being issued pursuant to the terms of a credit agreement (the “Credit
Agreement”) between, amongst others, Quotient Biodiagnostics, Inc. (as borrower), the Company and the Holder entered (or to be entered) into on or around the date hereof. 

 

	1.	Definitions. Capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement. As used herein, the following terms shall have the following respective meanings:

  

	 	(a)	“Exercise Period” shall mean the period commencing with the Closing Date and ending August 3, 2025, unless sooner terminated as provided below. 

 

	 	(b)	“Exercise Price” shall mean, with respect to each Exercise Share, a price per share equal to US$16.14 (subject to adjustment pursuant to Sections 5 and 7 below). 

	 	(c)	“Exercise Shares” shall mean the Ordinary Shares issuable upon exercise of this Warrant. 

  

	 	(d)	“Fair Market Value” means the per share volume-weighted average price of the Ordinary Shares on the Trading Market reported by Bloomberg L.P. in respect of the period from the scheduled open of trading
on the first Trading Day of the Valuation Period until the scheduled close of trading of the primary trading session on the last Trading Day of the Valuation Period, without regard to after-hours trading or any trading outside the regular trading
session of any Trading Day during the Valuation Period, or, if such volume-weighted average price for the Ordinary Shares during the Valuation Period is unavailable, the market value of one Ordinary Share during the Valuation Period as determined in
good faith by the Board of Directors of the Company and the Holder, using a volume-weighted average price method. 

  

	 	(e)	“Market Price” as of a particular valuation date shall mean the following: (i) if the Ordinary Shares are then listed or quoted on the Trading Market, the closing sale price of one Ordinary Share
on the Trading Market on the last trading day prior to such valuation date; or (ii) if the Ordinary Shares are not then listed or quoted on the Trading Market, the fair market value of one Ordinary Share as of such valuation date, as determined
in good faith by the Board of Directors of the Company and the Holder. 

  

	 	(f)	“Market Disruption Event” means (i) a failure by the Trading Market to open for trading during its regular trading session, or (ii) the occurrence or existence prior to 1:00 p.m., New York
City time on any scheduled trading day for Ordinary Shares for more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits
permitted by the relevant securities exchange or otherwise) in Ordinary Shares or in any options, contracts or futures contracts relating to the Ordinary Shares. 

  

	 	(g)	“Ordinary Shares” shall mean ordinary shares, of no par value per share, in the capital of the Company. 

  

	 	(h)	“Permitted Transferee” means a Person to whom shares in the capital of the Company may be transferred in accordance with the articles of association of the Company adopted on or about the date hereof.

  

	 	(i)	“Trading Day” means a day on which (i) there is no Market Disruption Event, and (ii) trading in the Ordinary Shares generally occurs on the Trading Market. 

 

	 	(j)	“Trading Market” means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for trading on the date in question: the NYSE MKT LLC, the Nasdaq Capital Market, the
Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing). 

  
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	 	(k)	“Valuation Period” means the 10 Trading Day period ending on, and including, the day immediately prior to the date of exercise of this Warrant pursuant to a cashless exercise election.

  

	2.	Exercise of Warrant. The purchase rights represented by this Warrant may be exercised in whole (but not in part) at any time during the Exercise Period, by delivery of the following to the Company at its address
set forth above (or at such other address as it may designate by notice in writing to the Holder): 

  

	 	(a)	An executed Notice of Exercise in the form attached hereto; 

  

	 	(b)	Payment of the Exercise Price either: 

  

	 	(i)	in cash or by check, or 

  

	 	(ii)	by cancellation of indebtedness (if any), 

 (unless this Warrant is exercised by cashless
exercise as provided below); and 
  

	 	(c)	This Warrant. 

 Notwithstanding the foregoing, the Holder may elect to receive, without payment
by the Holder of the aggregate Exercise Price in respect of the Ordinary Shares to be acquired, Ordinary Shares of equal value to the value of this Warrant by the surrender of this Warrant together with a Notice of Exercise, duly executed, to the
Company. Thereupon, the Company shall issue to the Holder such number of Ordinary Shares as is computed using the following formula: 
  

	
	X = Y x (A-B)
	                A

 Where: 

X = the number of Ordinary Shares to which the Holder is entitled upon such cashless exercise; 

Y = the total number of Ordinary Shares covered by this Warrant for which the Holder has surrendered purchase rights at such time for cashless
exercise (including both shares to be issued to the Holder and shares as to which the purchase rights are to be canceled as payment therefor); 

A = the Fair Market Value of one Ordinary Share (at the date of exercise); and 

B = the Exercise Price in effect under this Warrant at the time the cashless exercise election is made. 

Subject to compliance with applicable laws and regulations, upon the exercise of the purchase rights represented by this Warrant, a
certificate or certificates for the number of Exercise Shares so purchased, registered in the name of the Holder or a Permitted Transferee of the Holder, if the Holder so designates, shall be issued and delivered to the Holder within a reasonable
time after the purchase rights represented by this Warrant shall have been so exercised (in whole). 

  
 - 3 - 

 The person in whose name any certificate or certificates for Exercise Shares are to be issued (if
the Exercise Shares are issued in certificated form) upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was exercised in respect of such Exercise Shares and payment of
the Exercise Price was made, irrespective of the date of delivery of such certificate or certificates, except that, if the date of such exercise and payment is a date when the share transfer books of the Company are closed, such person shall be
deemed to have become the holder of such shares at the close of business on the next succeeding date on which the share transfer books are open. The person in whose name any Exercise Shares are first registered (if the Exercise Shares are issued in
uncertificated form) upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was exercised in respect of such Exercise Shares and payment of the Exercise Price was made,
irrespective of the date that such person is registered as the holder of such Exercise Shares in the register of members of the Company, except that, if the date of such exercise and payment is a date when the share transfer books of the Company are
closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the share transfer books are open. 
  

	3.	Covenants of the Company 

  

	3.1	Covenants as to Exercise Shares. The Company covenants and agrees that all Exercise Shares that may be issued upon the exercise of the purchase rights represented by this Warrant will, upon issuance, be
validly issued and outstanding, and free from all taxes, liens and charges with respect to the issuance thereof. The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved,
free from preemptive rights, a sufficient number of shares of the series of equity securities comprising the Exercise Shares to provide for the exercise of the purchase rights represented by this Warrant. If at any time during the Exercise Period
the number of authorized but unissued shares of such series of the Company’s equity securities shall not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued shares of such series of the Company’s equity securities to such number of shares as shall be sufficient for such purposes. 

 

	3.2	Notices of Record Date. In the event of any taking by the Company of a record of the holders of the shares of the series of equity securities comprising the Exercise Shares for the purpose of determining the
holders thereof who are entitled to receive any dividend or other distribution, the Company shall mail to the Holder, at least ten (10) days prior to the Record Date (as defined below), a notice specifying the date on which any such record is
to be taken for the purpose of such dividend or distribution (the “Record Date”). 

  
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	4.	Representations of Holder 

  

	4.1	Acquisition of Warrant for Personal Account. The Holder represents and warrants that it is acquiring this Warrant and the Exercise Shares solely for its account for investment and not with a view to or for sale
or distribution of this Warrant or such Exercise Shares or any part thereof. The Holder also represents that the entire legal and beneficial interests of this Warrant and the Exercise Shares the Holder is acquiring is being acquired for, and will be
held for, its account only. 

  

	4.2	Securities Are Not Registered 

  

	 	(a)	The Holder understands that this Warrant and the Exercise Shares have not been registered under the U.S. Securities Act of 1933, as amended (the “Act”), on the basis that no distribution or public
offering of the securities of the Company is to be effected. The Holder realizes that the basis for the exemption may not be present if, notwithstanding its representations, the Holder has a present intention of acquiring the securities for a fixed
or determinable period in the future, selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the securities. The Holder has no such present intention. 

 

	 	(b)	The Holder recognizes that this Warrant and the Exercise Shares must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. The Holder recognizes
that the Company has no obligation to register this Warrant or the Exercise Shares, or to comply with any exemption from such registration. 

  

	 	(c)	The Holder acknowledges that this Warrant and the Exercise Shares acquired upon the exercise of this Warrant, if not registered for resale under the Act, will have restrictions upon resale imposed by state and federal
securities laws unless this Warrant or the Exercise Shares acquired upon exercise of this Warrant, as applicable, are sold under an exemption from registration, including, without limitation, Rule 144 under the Act (if available).

  

	 	(d)	The Holder acknowledges that the Company may cause the legend set forth on the first page of this Warrant to be set forth on this Warrant or any Warrant issued in place of this Warrant, and, if required, a similar
legend on any security issued or issuable upon exercise of this Warrant, unless, (i) in the reasonable opinion of counsel for the Company, such legend is unnecessary or (ii) Holder provides appropriate documentation to the Company
including, if reasonably requested, an opinion of counsel for the Holder, that such legend is unnecessary, and, in each case, the Company will cause such legend removed from the warrant or stock, as applicable. 

 

	5.	 Adjustment of Exercise Price and Number of Exercise Shares. In the event of changes in the series of equity securities of the Company
comprising the Exercise Shares by reason of share dividends, splits, recapitalizations, reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations, or the like, the number 

  
 - 5 - 

	 	
and class of Exercise Shares available under this Warrant in the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of this Warrant, on exercise for the same
Aggregate Exercise Price, the total number, class, and kind of shares as the Holder would have owned had this Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the event requiring adjustment. For
purposes of this Section 5 and Section 7, the “Aggregate Exercise Price” shall mean the aggregate Exercise Price payable in connection with the exercise in full of this Warrant (assuming no cashless exercise
election). The form of this Warrant need not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant. 

  

	6.	Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) to be issued upon
exercise of this Warrant shall be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company
shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current Market Price on the date of exercise by such fraction.

  

	7.	Reorganization. In the event, at any time during the Exercise Period, (i) any capital reorganization of the share capital of the Company (other than a change in par value or from par value to no par value or
no par value to par value or as a result of a transaction covered by Section 5 above) is consummated, (ii) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or
into another Person (as defined below) in which the Company is not the surviving entity or the shareholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least 50% of the outstanding voting
securities of the surviving entity, (iii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related
transactions, or (iv) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which all or substantially all of the holders of Ordinary Shares are permitted to
sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Ordinary Shares (each a “Corporate Change”), then, as a condition of such Corporate
Change, lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the Exercise Shares of the Company immediately theretofore purchasable and receivable
upon the exercise of the purchase rights represented hereby) such shares in the capital, securities or other assets or property as would have been issuable or payable with respect to or in exchange for a number of Exercise Shares equal to the number
of Exercise Shares immediately theretofore purchasable and receivable upon the exercise of the purchase rights represented hereby, and the Exercise Price shall be appropriately adjusted so that the Aggregate Exercise Price after such Corporate
Change shall be equal to the Aggregate Exercise Price immediately prior to such Corporate Change. For purposes of this Section 7, “Person” means an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

  
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	8.	[RESERVED]. 

  

	9.	No Shareholder Rights. This Warrant in and of itself shall not entitle the Holder to any voting rights or other rights as a shareholder of the Company with respect to the Exercise Shares.

  

	10.	Transfer of Warrant. This Warrant may be transferred only pursuant to a registration statement filed under the Act, or an exemption from such registration. Subject to such restrictions and to applicable
laws, and provided that the number of holders of this Warrant shall not exceed 10 (joint holders being counted as one person) or such greater number as may be permitted from time to pursuant to a consent issued to the Company pursuant to the Control
of Borrowing (Jersey) Order 1958, this Warrant and all rights hereunder are transferable in full by the Holder to any Permitted Transferee upon delivery of this Warrant and the form of assignment attached hereto to the Company, duly executed
and delivered directly or by duly authorized attorney. This Warrant shall not be exercised in part. 

  

	11.	Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the
case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone. 

  

	12.	Amendment. Any term of this Warrant may be amended or waived with the written consent of the Company and the Holder. Upon the effectuation of such amendment or waiver in conformance with this Section 12, the
Company shall promptly give written notice thereof to the record holders of this Warrant who have not previously consented thereto in writing. 

  

	13.	Notices, Etc. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed
electronic mail if sent during normal business hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or
(d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at the address listed on the signature page
and to Holder at the address listed in Article 11 of the Credit Agreement or at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other parties hereto. 

 

	14.	Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein. 

  
 - 7 - 

	15.	Governing Law. This Warrant and all rights, obligations and liabilities hereunder shall be governed by and construed under the laws of Jersey as applied to agreements among Jersey residents, made and to be
performed entirely within Jersey without giving effect to conflicts of laws principles. 

  
 - 8 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized
officer as of August 3, 2015. 
  

					
	QUOTIENT LIMITED
		
	By:		 /s/ D.J.P.E. Cowan

			Name:		D.J.P.E. Cowan
			Title:		 Chairman & Chief
 Executive
Officer

			
	 Agreed and Acknowledged:
  

	MIDCAP FINANCIAL TRUST
		
	By:	 	Apollo Capital Management, L.P.,
		 	its investment manager
		
	By:	 	Apollo Capital Management GP, LLC,
		 	its general partner
		
	By:	 	 /s/ Maurice Amsellem

	Name: Maurice Amsellem
	Title: Authorized Signatory

 NOTICE OF EXERCISE 

TO: Quotient Limited 
 (1) The undersigned
(the “Holder”) hereby elects to purchase ordinary shares (the “Exercise Shares”) of Quotient Limited (the “Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full, in the manner set forth in (2) below, together with all applicable transfer taxes, if any. 
 (2) The
Holder elects to exercise its purchase rights under the Warrant as set forth below: 

(            ) Cash Exercise. 

(            ) Cashless Exercise. 

(            ) Cancellation of Indebtedness. 

(3) If the Holder has elected a Cash Exercise, the Holder shall pay the sum of
$             to the Company in accordance with the terms of the Warrant (the “Exercise Price”). 

(4) If the Holder has elected a Cancellation of Indebtedness, the Holder has provided the Company with such documents as may be reasonably
required by the Company to establish that indebtedness of the Company to the holder in an aggregate amount equal to the Exercise Price has been cancelled. 

Please issue a certificate or certificates representing said Exercise Shares in the name of the undersigned or in such other name as is
specified below: 
  

	
	  
 (Name)

 
  

	  

(Address)

 (5) The undersigned represents that (i) the aforesaid Exercise Shares are being acquired for the account of the
undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the
Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in
making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned’s own interests;
(iv) the undersigned understands that Exercise Shares issuable upon exercise of this Warrant have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption
from the registration provisions of the Securities Act, which 

 
exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Securities Act, they
must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid Exercise Shares may not be sold pursuant to Rule 144
adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by such Rule 144; and (vi) the undersigned expressly agrees that any transfer of all or any
part of the aforesaid Exercise Shares must be undertaken in accordance with the requirements of the Warrant, including Section 10 thereof. 
 . 

 

							
	  
 (Date)
	 		 		 	  
 (Signature)

 

		 		 		 	(Print Name)

 ASSIGNMENT FORM 

(To assign the foregoing Warrant, execute this form and 

supply required information. Do not use this form to purchase shares.) 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 

 

			
	Name:	 	  

 

			
	Address:	 	  

 

			
	Dated:	 	  

 

			
	Holder’s Signature:	 	  

 

			
	Holder’s Address:	 	  

 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant,
without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant. 

The undersigned assignee (the “Assignee”) hereby acknowledges, agrees and confirms that, by signing below, the Assignee shall be deemed to have
made all of the representations and warranties of the “Holder” under Section 4 of the Warrant as if the Assignee had executed the Warrant, and all of such representations and warranties are true and correct as of the date hereof as if
such representations and warranties were made by the Assignee. 
  

			
	Assignee’s Signature:Exhibit_10_34

		
			Exhibit 10.34
		

		
			 
		

		
			CHANGE IN CONTROL AGREEMENT
		

		
			 
		

		
			 
		

		
			THIS CHANGE IN CONTROL AGREEMENT is entered into as of the 5th day of August, 2015, by and between C&F FINANCIAL CORPORATION, a Virginia corporation (the “Company”), and S. Dustin Crone (the “Executive”).
		

		
			RECITALS
		

		
			I.The Executive currently serves as President of C&F Finance Company, a significant subsidiary of the Company; is a key member of management of the Company and its affiliates, and; his services and knowledge are valuable to the Company and its affiliates.
		

		
			II.The Board (as defined below) has determined that it is in the best interest of the Company and its shareholders to assure that the Company and its affiliates will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change in Control (as defined below) of the Company.  The Board believes it is imperative to diminish the inevitable distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change in Control and to encourage the Executive’s full attention and dedication to the Company and its affiliates currently and in the event of any threatened or pending Change in Control.  Therefore, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement.
		

		
			NOW, THEREFORE, it is hereby agreed as follows: 
		

		
			1.CERTAIN DEFINITIONS.
		

			
	
			
				 (a)
			“Agreement Effective Date” means the date first set out above.

			
	
			
				 (b)
			The “Agreement Term” means the period commencing on the Agreement Effective Date and ending on the earlier of (i) the Agreement Regular Termination Date or (ii) the date this Agreement terminates pursuant to Section 8.  The “Agreement Regular Termination Date” means the third anniversary of the Agreement Effective Date, provided, however, that commencing on the first anniversary of the Agreement Effective Date, and on each subsequent anniversary (such date and each subsequent anniversary shall be hereinafter referred to as the “Renewal Date”), unless this Agreement is previously terminated, the Agreement Regular Termination Date shall be automatically extended for three years from the latest Renewal Date, unless at least one month prior to the latest Renewal Date, the Company shall give notice to the Executive in accordance with Section 11(c) of this Agreement that the Agreement Regular Termination Date shall not be so extended.

			
	
			
				 (c)
			“Board” means the Board of Directors of the Company.

			
	
			
				 (d)
			“Cause” means:

			
	
			
				 (i)
			the willful and continued failure of the Executive to substantially perform his duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board, pursuant to a vote of a majority of the Directors of the Company, which specifically identifies the manner in which the Directors of the Board believe that the Executive has not substantially performed his duties, or

			
	
			
				 (ii)
			the willful engaging by the Executive in illegal conduct or gross misconduct which is 
		

		 

		

			1

		

 

			materially and demonstrably injurious to the Company.

		
			For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interest of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.  The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the members of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive in accordance with Section 11(c) of this Agreement and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive has engaged in the conduct described in paragraph (i) or (ii) above, and specifying the particulars thereof in detail.
		

			
	
			
				 (e)
			The “Change in Control Date” means the first date during the Agreement Term on which a Change in Control (as defined in Section 2) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change in Control occurs and if the Executive’s employment with the Company is terminated prior to the date on which the Change in Control occurs, and if it is reasonably demonstrated by the Executive that such termination of employment either (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or anticipation of a Change in Control, then for all purposes of this Agreement except for the time and form of payment of the Change in Control Benefits payable under Section 4(c) the “Change in Control Date” shall mean the date immediately prior to the date of such termination of employment.

			
	
			
				 (f)
			“Company” means C&F Financial Corporation, a Virginia corporation.

			
	
			
				 (g)
			“Coverage Period” means the period of time beginning with the Change in Control Date and ending on the earliest to occur of (i) the Executive’s death or (ii) the sixty-first day after the second anniversary of the Change in Control Date.

			
	
			
				 (h)
			“Disability” means the absence of the Executive from his duties with the Company on a full-time basis for six months as a result of incapacity to serve as the President of C&F Finance Company, including substantially all duties normally considered a part thereof, due to mental or physical illness or injury which is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative.  If the Company determines in good faith that the Disability of the Executive has occurred, it may give to the Executive written notice in accordance with Section 11(c) of this Agreement of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, the Executive shall not have returned to full-time performance of his duties.

			
	
			
				 (i)
			“Good Reason” means any good faith determination made by the Executive (which determination shall be conclusive) that any of the following has occurred:

			
	
			
				 (i)
			the occurrence, on or after the Agreement Effective Date and during the Coverage Period, of any of the following:

			
	
			
				 (A)
			the assignment to the Executive of any duties inconsistent in any material adverse respect with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities immediately prior to the Change in Control, or any other action by the Company or its affiliates which results in a diminution in such position, 
		

		 

		

			2

		

 

			authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive in accordance with Section 11(c) of this Agreement;

			
	
			
				 (B)
			a reduction by the Company or its affiliates in the Executive’s rate of annual base salary, benefits (including, without limitation, incentive or bonus pay arrangements, stock plan benefit arrangements, and retirement and welfare plan coverage) and perquisites as in effect immediately prior to the Change in Control or as the same may be increased from time to time thereafter, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive in accordance with Section 11(c) of this Agreement;

			
	
			
				 (C)
			the Company’s requiring the Executive to be based  at any office or location more than 35 miles from the facility where the Executive is located at the time of the Change in Control or the Company’s requiring the Executive to travel on Company business to a substantially greater extent than required immediately prior to the Change in Control Date (but determined without regard to travel necessitated by reason of any anticipated Change in Control);

			
	
			
				 (D)
			any purported termination by the Company or its affiliates of the Executive’s employment otherwise than as expressly permitted by this Agreement;

			
	
			
				 (E)
			any failure by the Company or its affiliates to comply with and satisfy Section 10(c) of this Agreement by obtaining satisfactory agreement from any successor to assume and perform this Agreement; or

			
	
			
				 (F)
			so long as no Cause for Executive’s termination by the Company exists (or would exist assuming the Board made a determination of Cause), a voluntary cessation by the Executive of his employment for any reason during any Window Period.

		
			(ii)any event or condition described in paragraph (i) of this Section 1(i) which occurs on or after the Agreement Effective Date, but prior to a Change in Control, but was at the request of a third party who effectuates the Change in Control, notwithstanding that it occurred prior to the Change in Control, but such event or condition shall not be considered to actually have occurred until the Change in Control Date.
		

			
	
			
				 (j)
			“Covered Termination” means a termination of Executive’s employment during the Coverage Period (i) by the Company for any reason other than Cause or the Executive’s Disability or death, or (ii) by the Executive for Good Reason.

			
	
			
				 (k)
			“Noncovered Termination” means a cessation of Executive’s employment which is not a Covered Termination.

			
	
			
				 (l)
			“Window Period” means any of (i) the 60-day period commencing on the Change in Control Date, (ii) the 60-day period commencing on the first anniversary of the Change in Control Date, and (iii) the 60-day period commencing on the second anniversary of the Change in Control Date.

		
			2.CHANGE IN CONTROL.  
		

		
			 
		

		
			A “Change in Control” means a change in the ownership of the Company, a change in the effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, consistent with and interpreted in accordance with Code Section 409A and regulations issued thereunder, and specifically defined as follows: 
		

		

		

		 

		

			3

		

 

		 
		

		
			(a)General Rules.  In order to constitute a Change in Control as to the Executive, the Change in Control shall relate to: 
		

		
			 
		

		
			(i)The corporation for whom the Executive is performing services at the time of the Change in Control; or
		

		
			 
		

		
			(ii)The corporation that is liable for the payment of the deferred compensation (or all corporations liable for the payment if more than one corporation is liable) but only if either the deferred compensation is attributable to the performance of service by the Executive for such corporation (or corporations) or there is a bona fide business purpose for such corporation or corporations to be liable for such payment and, in either case, no significant purpose of making such corporation or corporations liable for such payment is the avoidance of Federal income tax; or
		

		
			 
		

		
			(iii)A corporation that is a majority shareholder of a corporation identified in either paragraph (i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in either paragraph (i) or (ii) above. 
		

		
			 
		

		
			(b)Change In Ownership.  A change in the ownership of a corporation shall occur on the date that any one person, or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation.  However, if any person, or more than one person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of a corporation, then the acquisition of additional stock by the same person or persons shall not be considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation). 
		

		
			 
		

		
			(c)Change In Effective Control.  Notwithstanding the fact that a corporation has not undergone a change in ownership as described above, a change in the effective control of a corporation shall occur only on the date that either: 
		

		
			 
		

		
			(i)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 persons) ownership of stock of the corporation possessing 30% or more of the total voting power of the stock of such corporation; or
		

		
			 
		

		
			(ii)A majority of members of the corporation’s Board of Directors is replaced during any 12-month period by Directors whose appointment or election is not endorsed by a majority of the members of the corporation’s Board of Directors prior to the date of the appointment or election, provided that for purposes of this paragraph (ii), the term “corporation” refers solely to the relevant corporation identified above, for which no other corporation is a majority shareholder. 
		

		
			 
		

		
			(d)Change In Ownership of Assets.  A change in the ownership of a substantial portion of the assets of a corporation shall occur on the date that 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 persons) assets from the corporation that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions.  For this purpose, “gross fair market value” shall mean the value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 
		

		
			 
		

		
			A transfer of assets by a corporation shall not be treated as a change in the ownership of such assets if the assets are transferred to: 
		

		
			 
		

		
			(i)A shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock; or
		

		
			 
		

		

		

		 

		

			4

		

 

		(ii)An entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the corporation; or
		

		
			 
		

		
			(iii)A person, or more than one person acting as a group, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the corporation; or
		

		
			 
		

		
			(iv)An entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a person who is a “related person” under applicable Treasury Regulations. 
		

		
			 
		

		
			There shall be no Change in Control when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer.
		

			
	
			
				 3.
			OBLIGATIONS OF THE EXECUTIVE TO REMAIN EMPLOYED.  

		
			
		

		
			The Executive agrees that in the event any person or group attempts a Change in Control, he shall not voluntarily leave the employ of the Company without Good Reason (i) until such attempted Change in Control terminates or (ii) if a Change in Control shall occur, until the Change in Control Date.  For purposes of the foregoing clause (i), Good Reason shall be determined as if a Change in Control had occurred when such attempted Change in Control became known to the Board.
		

		
			 
		

			
	
			
				 4.
			OBLIGATIONS UPON THE EXECUTIVE’S TERMINATION.

		
			(a)Notice of Termination.   Any termination of the Executive’s employment by the Company or by the Executive, other than by reason of death, shall be communicated by Notice of Termination to the other party hereto given.  For purposes hereof:
		

			
	
			
				 (i)
			“Notice of Termination” means a written notice given in accordance with Section 11(c)of this Agreement which (A) states whether such termination is for Cause, Good Reason or Disability, (B) indicates the specific termination provision in this Agreement relied upon, if any, (C) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (D) if the Date of Termination is other than the date of receipt of such notice, specifies the termination date. The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason, Cause or Disability shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

			
	
			
				 (ii)
			“Date of Termination” means (A) if the Executive’s employment is terminated by reason of Disability, the Disability Effective Date, (B) if the Executive’s employment is terminated by the Company for any reason other than Disability, the date of the Executive’s receipt of the Notice of Termination or any later date specified therein, as the case may be, and (C) if the Executive’s employment is terminated by the Executive for any reason, the date of the Company’s receipt of the Notice of Termination or any later date specified therein, as the case may be. 

		
			(b)Obligations of the Company in a Covered Termination.  If the Executive’s employment shall cease by reason of a Covered Termination, then the following shall be paid or provided (the payments and benefits described in (i), (ii) and (iii) below may hereinafter sometimes be referred to as the “Change in Control Benefit” or “Change in Control Benefits”):
		

			
	
			
				 (i)
			the Company shall pay or cause to be paid in cash to the Executive a lump sum within 30 days after the Date of Termination and with the lump sum payment totaling an amount equal to the sum of the Executive’s (1) highest aggregate annual base salary from the Company and its affiliated companies in effect at any time during the 24 month period ending on the Change in Control Date and (2) highest 
		

		 

		

			5

		

 

			annual bonus (including any deferrals thereof) from the Company and its affiliated companies payable for the Company’s three fiscal years immediately preceding the fiscal year which includes the Change in Control Date;

			
	
			
				 (ii)
			for one year after the Executive’s Date of Termination, the Company shall continue or cause to be continued benefits to the Executive and/or the Executive’s family at least equal to those under the Welfare Benefit Plans.  (Nothing in an Agreement shall limit the Executive’s right to additional retiree or other welfare benefits provided under the applicable benefit plan subject to any and all limitations in such plan.) If the Executive becomes reemployed with another employer and is eligible to receive medical or other welfare benefits under another employer-provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility.  For purposes of determining eligibility (but not the time of commencement of benefits) of the Executive for any retiree benefits pursuant to such plans, practices, programs and policies, the Executive shall be considered to have remained employed until one year after the Date of Termination and to have retired on the last day of such period.  For purposes hereof, the term “Welfare Benefit Plan” means the welfare benefit plans, practices, policies and programs provided by the Company and its affiliates (including, without limitation, any medical, prescription, dental, vision, disability, life, accidental death and travel accident insurance plans and split dollar insurance programs) to the extent applicable generally to other peer executives of the Company and its affiliates, but in no event shall such plans, practices, policies and programs provide the Executive with benefits which are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for the Executive at any time during the one year period immediately preceding the Change in Control Date or, if more favorable to the Executive, those provided generally at any time after the Change in Control Date to other peer executives of the Company and its affiliated companies;

			
	
			
				 (iii)
			to the extent not theretofore paid or provided, the Company shall timely pay or cause to be paid or provide or cause to be provided to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any compensation arrangement, plan, program, policy or practice or contract or agreement of the Company and its affiliated companies with such payments being made in accordance with the terms of any such arrangement, plan, program or policy (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”).

		
			(c)Notwithstanding any other provision of this Agreement, if the requirements of Section 1(e) are met regarding the Executive’s termination prior to a Change in Control, the Change in Control Benefits shall be paid within thirty (30) days after the date of a Change in Control (not the Date of Termination). 
		

		
			(d)Obligations of the Company in a Noncovered Termination.  If the Executive’s employment shall cease by reason of a Noncovered Termination, this Agreement shall terminate without further obligations to the Executive other than the obligation timely to pay or cause to be paid or provide or cause to be provided to the Executive his Other Benefits.
		

			
	
			
				 5.
			FULL SETTLEMENT.

			
	
			
				 (a)
			No Offset or Mitigation.  The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive obtains other employment.

			
	
			
				 (b)
			Executive’s Expense in Dispute Resolution.  The Company agrees to pay, to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of a contest (in 
		

		 

		

			6

		

 

			which the Executive substantially prevails) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the lower of (i) the Wall Street Journal Prime Rate or (ii) the applicable Federal midterm rate provided for in Section 1274(d), compounded semi-annually, of the Code.

			
	
			
				 (c)
			Payment Prior to Dispute Resolution.  If there shall be any dispute between the Company and the Executive in the event of any termination of Executive’s employment, then, unless and until there is a final, nonappealable judgment by a court of competent jurisdiction declaring that such termination was a Noncovered Termination, that the determination by the Executive of the existence of Good Reason was not made in good faith, or that the Company is not otherwise obligated to pay any amount or provide any benefit to the Executive and his dependents or other beneficiaries, as the case may be, under Section 4(b), the Company shall pay all amounts, and provide all benefits, to the Executive and his dependents or other beneficiaries, as the case may be, that the Company would be required to pay or provide pursuant to Section 4(b) as though such termination were not a Noncovered Termination. Notwithstanding the foregoing, the Company shall not be required to pay any disputed amounts pursuant to this Section 5(c) except upon receipt of an adequate bond, letter of credit or undertaking by or on behalf of the Executive to repay all such amounts to which the Executive is ultimately adjudged by such court not to be entitled.

			
	
			
				 6.
			PAYMENT LIMITATIONS.

			
	
			
				 (a)
			Excise Tax Payment Limitation.    Notwithstanding anything contained in this Agreement or any other agreement or plan to the contrary, the payments and benefits provided to, or for the benefit of, the Executive under this Agreement or under any other plan or agreement which became payable or are taken into account as a result of the Change in Control (the “Payments”) shall be reduced (but not below zero) to the extent necessary so that no payment to be made, or benefit to be provided, to the Executive or for his benefit under this Agreement or any other plan or agreement shall be subject to the imposition of an excise tax under Section 4999 of the Code (such reduced amount is hereinafter referred to as the “Limited Payment Amount”). The Company shall reduce or eliminate the Payments to the Executive by first reducing or eliminating those payments or benefits which are payable in cash and then by reducing or eliminating payments not payable in cash, in each case pro-rata and in reverse order beginning with payments or benefits which are to be paid or provided the farthest in time from the Determination (as hereinafter defined).  The reductions in the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing Executive’s rights and entitlements to any benefits or compensation.

			
	
			
				 (b)
			Excise Tax Payment Limitation Determinations.  All determinations required to be made under this Section 6 shall be made by the Company’s public accounting firm (the “Accounting Firm”).  The Accounting Firm shall provide its calculations, together with detailed supporting documentation, both to the Company and the Executive within fifteen days after the receipt of notice from the Company that there has been a Payment (or at such earlier times as is requested by the Company) and, with respect to any Limited Payment Amount, a reasonable opinion to the Executive that he is not required to report any excise tax on his federal income tax return with respect to the Limited Payment Amount (collectively the “Determination”). In the event that the Accounting Firm is serving as an accountant or auditor for the individual, entity or group effecting the Change in Control, the Executive shall appoint another nationally recognized public accounting firm to make the determination required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder).  All fees, costs and expenses (including, but not limited to, the costs of retaining experts) of the Accounting Firm shall be borne by the Company.  The Determination by the Accounting Firm shall be binding upon the Company and the Executive (except as provided in Section 6(c) below).

			
	
			
				 (c)
			Excise Tax Excess Payments Considered a Loan.    If it is established pursuant to a final determination of a court or an Internal Revenue Service (the “IRS”) proceeding which has been finally and 
		

		 

		

			7

		

 

			conclusively resolved, that Payments have been made to, or provided for the benefit of, the Executive by the Company, which are in excess of the limitations provided in Section 6(a) (hereinafter referred to as an “Excess Payment”), such Excess Payment shall be deemed for all purposes to be a loan to the Executive made on the date the Executive received the Excess Payment and the Executive shall repay the Excess Payment to the Company on demand, together with interest on the Excess Payment at the applicable federal rate (as defined in Section 1274(d) of the Code) from the date of Executive’s receipt of such Excess Payment until the date of such repayment. As a result of the uncertainty in the application of Section 4999 of the Code at the time of Determination, it is possible that Payments which will not have been made by the Company should have been made (an “Underpayment”), consistent with the calculations required to be made under this Section 6.  In the event that it is determined (i) by the Accounting Firm, the Company (which shall include the position taken by the Company, or together with its consolidated group. on its federal income tax return) or the IRS or (ii) pursuant to a determination by a court, that an Underpayment has occurred, the Company shall pay an amount equal to such Underpayment to the Executive within ten days of such determination together with interest on such amount at the applicable federal rate from the date such amount would have been paid to the Executive until the date of payment.  Any payments or reimbursements to or payments on behalf of the Executive shall be paid as provided above but in no event later than the end of the calendar year following the calendar year in which the related taxes are paid. 

			
	
			
				 (d)
			Banking Payment Limitation.  Notwithstanding anything contained in this Agreement or any other agreement or plan to the contrary, the payments and benefits provided to, or for the benefit of, the Executive under this Agreement or under any other plan or agreement shall be reduced (but not below zero) to the extent necessary so that no payment to be made, or benefit to be provided, to the Executive or for his benefit under this Agreement or any other plan or agreement shall be in violation of the golden parachute and indemnification payment limitations and prohibitions of 12 CFR Section 359.

			
	
			
				 7.
			CODE SECTION 409A COMPLIANCE.

		
			(a) The intent of the parties is that payments and benefits under this Agreement comply with 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. 
		

		
			(b)Neither the Executive nor the Company 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 (including any transition or grandfather rules thereunder). 
		

		
			(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.  If the Executive is deemed on the date of separation from service with the Company 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 Company 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 the Executive’s separation from service or (ii) the date of the Executive’s death.  In the case of benefits, however, the Executive may pay the cost of benefit coverage, and thereby obtain benefits, during such six month delay period and then be reimbursed by the Company thereafter when delayed payments are made pursuant to the next sentence.  On the first day of the seventh month following the date of the Executive’s separation from service or, if earlier, on the date of the Executive’s death, all payments delayed pursuant to this Section 7(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 the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid 
		

		 

		

			8

		

 

		or provided in accordance with the normal payment dates specified for them herein.
		

		
			(d)With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits, 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 Section 105(b) of the Code 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 Company’s reimbursement policies but in no event later than the calendar year following the calendar year in which the related expense is incurred.
		

		
			(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.
		

		
			(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 Company. 
		

		
			(g)Notwithstanding any of the provisions of this Agreement, the Company shall not be liable to the Executive 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.
		

			
	
			
				 8.
			TERMINATION OF AGREEMENT.  

		
			This Agreement shall be effective as of the Agreement Effective Date and shall normally continue until the later of the Agreement Regular Termination Date or, if a Change in Control has occurred, until the end of the Coverage Period.  Notwithstanding the foregoing, this Agreement shall terminate in any event upon the Executive’s cessation of employment in a Noncovered Termination.
		

			
	
			
				 9.
			CONFIDENTIAL INFORMATION.

			
	
			
				 (a)
			No Disclosure by Executive.    The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Executive during the Executive’s employment by the Company or any of its affiliated companies and which shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive’s employment with the Company, the Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it.

			
	
			
				 (b)
			Remedies for Breach.  It is recognized that damages in the event of breach of Section 9(a) above by the Executive would be difficult, if not impossible, to ascertain, and it is therefore specifically agreed that the Company, in addition to and without limiting any other remedy or right it may have, shall have the right to an injunction or other equitable relief in any court of competent jurisdiction, enjoining any such breach. The existence of this right shall not preclude the Company from pursuing any other rights and remedies at law or in equity which it may have.

			
	
			
				 (c)
			Breach Not Basis to Withhold Payment.    In no event shall an asserted violation of the provisions of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement.

			
	
			
				 10.
			BENEFIT AND SUCCESSORS.

		 

		

			9

		

 

			
	
			
				 (a)
			Executive’s Benefit.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive should die and any amount remains payable thereunder after his death, any such amount, unless otherwise agreed by the Company or provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee or other designee of such payment or, if there is no such designee, the Executive’s estate.

			
	
			
				 (b)
			Company’s Benefit.   This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

			
	
			
				 (c)
			Assumption by Successor to Company.   The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

			
	
			
				 11.
			MISCELLANEOUS.

			
	
			
				 (a)
			Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

			
	
			
				 (b)
			Amendment.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives which complies with the requirements of Code Section 409A.

			
	
			
				 (c)
			Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

		
			If to the Executive:
		

		
			S. Dustin Crone
		

		
			1313 East Main Street
		

		
			Suite 400
		

		
			Richmond, Virginia 23219
		

		
			 
		

		
			If to the Company:
		

		
			President, C&F Financial Corporation
		

		
			P. O. Box 391
		

		
			8th & Main Streets
		

		
			West Point, Virginia 23181
		

		
			Copy to:
		

		
			James H. Hudson III
		

		
			Hudson Law PLC
		

		
			826 Main Street - P.O. Box 231 
		

		
			West Point, VA 23181
		

		
			 
		

		
			or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.
		

		 

		

			10

		

 

			
	
			
				 (d)
			Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

			
	
			
				 (e)
			Tax Withholding.  The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

			
	
			
				 (f)
			Waiver.  The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

			
	
			
				 (g)
			Executive’s Employment.  The Executive and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Executive and the Company, the employment of the Executive by the Company is “at will” and, subject to paragraph (ii) of Section 1(i) hereof deeming a termination to have occurred on or after the occurrence of a Change in Control Date, the Executive’s employment and/or this Agreement may be terminated by either the Executive or the Company at any time prior to the Change in Control Date, in which case the Executive shall have no further rights under this Agreement.

			
	
			
				 (h)
			Nonexclusivity of Rights.  Except as expressly provided in Section 6, nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies and for which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company or any of its affiliated companies.  Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company or any of its affiliated companies at or subsequent to the Executive’s termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.

			
	
			
				 (i)
			Statutory References.  Any reference in this Agreement to a specific statutory provision shall include that provision and any comparable provision or provisions of future legislation amending, modifying, supplementing or superseding the referenced provision.

			
	
			
				 (j)
			Nonassignability.  This Agreement is personal to the Executive, and without the prior written consent of the Company, no right, benefit or interest hereunder shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, except by will or the laws of descent and distribution, and any attempt thereat shall be void; and no right, benefit or interest hereunder shall, prior to receipt of payment, be in any manner liable for or subject to the recipient’s debts, contracts, liabilities, engagements or torts.

			
	
			
				 (k)
			Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be considered an original and all of which together shall constitute one agreement.

			
	
			
				 (l)
			Employment with Affiliates.   Except as otherwise required by this Agreement or Code Section 409A, employment with the Company for purposes of this Agreement shall include employment with any corporation or other entity in which the Company has a direct or indirect ownership interest of 50% or more of the total combined voting power of the then outstanding securities of such corporation or other entity entitled to vote generally in the election of directors or which has a direct or indirect ownership interest of 50% or more of the total combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors.

		

		

		 

		

			11

		

 

		IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						C&F FINANCIAL CORPORATION

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						/s/ Thomas F. Cherry

				
	
					
						 

					
					
						 

					
					
						Thomas F. Cherry, President

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						/s/ S. Dustin Crone

				
	
					
						 

					
					
						 

					
					
						S. Dustin Crone, President-C&F Finance Company

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		 

		

			12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]