Document:

Exhibit 4.4

CARDINAL FINANCIAL CORPORATION

 

Executive Deferred Income Plan

 

 

(A Plan
of Nonqualified Deferred Compensation)

 

Effective January 1, 2005

 

As amended April 21, 2006

 

 

TABLE OF CONTENTS

 

	
  I.

  	
  Introduction

  	
  3

  
	
   

  	
   

  	
   

  
	
  II.

  	
  Definitions

  	
  3

  
	
   

  	
   

  	
   

  
	
  III.

  	
  Eligibility &
  Participation

  	
  8

  
	
   

  	
   

  	
   

  
	
  IV.

  	
  Elections, Deferrals &
  Matching Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  V.

  	
  Accounts & Account
  Crediting

  	
  10

  
	
   

  	
   

  	
   

  
	
  VI.

  	
  Vesting

  	
  12

  
	
   

  	
   

  	
   

  
	
  VII.

  	
  Distributions

  	
  12

  
	
   

  	
   

  	
   

  
	
  VIII.

  	
  Administration &
  Claims Procedure

  	
  15

  
	
   

  	
   

  	
   

  
	
  IX.

  	
  Amendment, Termination
  & Reorganization

  	
  18

  
	
   

  	
   

  	
   

  
	
  X.

  	
  General Provisions

  	
  19

  

 

2

 

 

ARTICLE I—INTRODUCTION

 

1.1                                                                               Name.

 

The name of this Plan is the Cardinal Financial
Corporation Executive Deferred Income Plan (the Plan).

 

1.2                                                                               Purpose.

 

The
purpose of the Plan is to offer Participants the opportunity to defer
voluntarily current Compensation for retirement income and other significant
future financial needs for themselves, their families and other dependents, and
to provide the Employer, if appropriate, a vehicle to address limitations on
its contributions under any tax-qualified defined contribution plan. This Plan
is intended to be a nonqualified “top-hat” plan; that is, an unfunded plan of
deferred compensation maintained for a select group of management or highly
compensated employees pursuant to Sections 201(2), 301(a)(3), and 401(a)(1) of
ERISA, and an unfunded plan of deferred compensation under the Code.

 

1.3                                                                               Interpretation.

 

Throughout the Plan, certain words and phrases have
meanings, which are specifically defined for purposes of the Plan. These words
and phrases can be identified in that the first letter of the word or words in
the phrase is capitalized. The definitions of these words and phrases are set
forth in Article II and elsewhere in the Plan document. Wherever appropriate,
pronouns of any gender shall be deemed synonymous, as shall singular and plural
pronouns. Headings of Articles and Sections are for convenience or reference
only, and are not to be considered in the construction or interpretation of the
Plan. The Plan shall be interpreted and administered to give effect to its
purpose in Section 1.3 and to qualify as a nonqualified, unfunded plan of
deferred compensation.

 

ARTICLE II—DEFINITIONS 

 

2.1                                                                               Generally.

 

Certain words and phrases are defined when first used
in later paragraphs of this Agreement. Unless the context clearly indicates
otherwise, the following words and phrases when used in this Agreement shall
have the following respective meanings:

 

2.2                                                                               Account.

 

“Account” shall mean the interest of a Participant in
the Plan as represented by the hypothetical bookkeeping entries kept by the
Employer for each Participant. Each Participant’s interest may be divided into
one or more separate accounts or sub-accounts, including the Participant
Deferral Account and the Matching Contribution Account, which reflect not only
the Contributions into the Plan, but also gains and losses, and income and
expenses allocated thereto, as well as distributions or any other withdrawals.
The value of these accounts or sub-accounts shall be determined as of

 

3

 

 

the Valuation Date. The existence of an account or bookkeeping entries
for a Participant (or his Designated Beneficiary) does not create, suggest or
imply that a Participant, Designated Beneficiary, or other person claiming
through them under this Plan, has a beneficial interest in any asset of the
Employer.

 

2.3                                                                               Balance.

 

“Balance” shall mean the total of Contributions and
Deemed Earnings credited to a Participant’s Account under Article V, as
adjusted for distributions or other withdrawals in accordance with the terms of
this Plan and the standard bookkeeping rules established by the Employer.

 

2.4                                                                               Board
Committee.

 

“Board Committee” or “Committee” shall mean the
Compensation Committee of the Employer’s Board of Directors, or such other
Committee of the Board as may be delegated with the duty of determining
Participant eligibility under the Plan.

 

2.5                                                                               Board
of Directors.

 

“Board of Directors” or “Board” shall mean the Board
of Directors of the Employer.

 

2.6                                                                               Change
of Control.

 

“Change of Control” shall mean a change in the ownership or effective
control of the Employer, or in the ownership of a substantial portion of the
assets of the Employer, as provided in Treasury regulations.

 

2.7                                                                               Code.

 

“Code” shall mean the Internal Revenue Code of 1986
and the Regulations thereto, as amended from time to time.

 

2.8                                                                               Compensation.

 

“Compensation”
shall mean the base or regular cash salary payable to an Employee by the Employer,
as well as incentives or bonuses payable to an Employee by the Employer, commissions
payable to an Employee by the Employer, including any such amounts which are
not includible in the Participant’s gross income under Sections 125, 401(k),
402(h) or 403(b) of the Internal Revenue Code of 1986, as amended.

 

2.9                                                                               Contributions.

 

“Contributions” shall mean the total of Participant
Deferrals and Matching Contributions pursuant to Article IV, which represent
each Participant’s credits to his Account.

 

4

 

 

2.10                                                                        Deemed
Earnings.

 

“Deemed Earnings” shall mean the gains and losses
(realized and unrealized), and income and expenses credited or debited to
Contributions based upon the Deemed Crediting Options in a Participant’s
Account as of any Valuation Date.

 

2.11                                                                        Deemed
Crediting Options.

 

“Deemed Crediting Options” shall mean the hypothetical
options made available to Plan Participants by the Employer for the purposes of
determining the proper crediting of gains and losses, and income and expenses
to each Participant’s Account, subject to procedures and requirements
established by the Committee.  A
Participant may reallocate his Account among such Deemed Crediting Options
periodically at such frequency and upon such terms as the Committee may
determine from time to time.

 

2.12                                                                        Deferral
Election Form.

 

“Deferral
Election Form” or “Annual Deferral Election Form” shall mean that written
agreement of a Participant. The Deferral Election Form shall be in such form or
forms as may be prescribed by the Committee, filed annually with the Employer,
according to procedures and at such times as established by the Committee.
Among other information the Committee may require of the Participant for proper
administration of the Plan, such agreement shall establish the Participant’s
election to defer Compensation for a Plan Year under the Plan; the amount of
the deferral into the Plan for the Plan Year; the Participant’s elections as to
distribution of his Account, and the allocation of his Accounts among the
Deemed Crediting Options provided under the Plan; and the Designated
Beneficiary.

 

2.13                                                                        Designated
Beneficiary.

 

“Designated Beneficiary” or “Beneficiary” shall mean
the person, persons or trust specifically named to be a direct or contingent
recipient of all or a portion of a Participant’s benefits under the Plan in the
event of the Participant’s death prior to the distribution of his full Account
Balance. Such designation of a recipient or recipients may be made and amended,
at the Participant’s discretion, on the Deferral Election Form and according to
procedures established by the Committee. No beneficiary designation or change
of Beneficiary shall become effective until received and acknowledged by the
Employer. In the event a Participant does not have a beneficiary properly
designated, the beneficiary under this Plan shall be the Participant’s estate.

 

2.14                                                                        Disability.

 

 “Disability”
shall mean that a Participant (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than twelve months, or (ii) is, by reason
of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than

 

5

 

 

twelve 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.

 

2.15                                                                        Effective Date.

 

“Effective Date” of the Plan shall mean January 1,
2005.

 

2.16                                                                        Eligible
Employee.

 

“Eligible Employee” shall mean a person who (for any
Plan Year or portion thereof) is: (1) an Employee of the Employer; (2) a member
of a select group of management or a highly compensated employee of the
Employer; and (3) selected by the Board Committee to participate in the Plan.

 

2.17                                                                        Employee.

 

“Employee” shall mean a full time common law employee
of the Employer.

 

2.18                                                                        Employer.

 

“Employer”
shall mean Cardinal Financial Corporation, its designated subsidiaries, and any
corporate successors and assigns, unless otherwise provided herein.

 

2.19                                                                        ERISA.

 

“ERISA” shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time.

 

2.20                                                                        Key Employee.

 

“Key Employee” shall mean
any Participant who is (i) one of the top-fifty most highly compensated
officers with annual compensation in excess of $130,000 (as adjusted from time
to time by Treasury regulations); (ii) a five percent owner of the Employer; or
(iii) a one percent owner of the Employer with annual compensation in excess of
$150,000 (as adjusted from time to time by Treasury regulations) of a publicly
traded corporation.

 

2.21                                                                        Leave of Absence.

 

“Leave of Absence” shall mean a period of time, not to
exceed twelve (12) consecutive calendar months during which time a Participant
shall not be an active Employee of the Employer, but shall be treated for
purposes of this Plan as in continuous service with the Employer. A Leave of
Absence may be either paid or unpaid, but must be agreed to in writing by both
the Employer and the Participant. A Leave Of Absence that continues beyond the
twelve (12) consecutive months shall be treated as a Termination of Service as
of the first business day of the thirteenth month for purposes of the Plan.

 

6

 

 

2.22                                                                        Matching Contribution.

 

“Matching Contribution” shall mean an amount credited
to a Participant’s Account in accordance with Section 4.4.

 

2.23                                                                        Matching Contribution Account.

 

“Matching Contribution Account” shall mean that
portion of a Participant’s Account established to record Matching Contributions
on behalf of a Participant.  Matching
Contributions shall be deemed to be invested in the Employer stock, and a
Participant shall not be permitted to elect a different Deemed Crediting Option
for such Matching Contributions.

 

2.24                                                                        Participant.

 

“Participant”
shall mean an Eligible Employee who participates in the Plan under Article III;
a former Eligible Employee who has participated in the Plan and continues to be
entitled to a benefit (in the form of an undistributed Account Balance) under
the Plan, and any former Eligible Employee who has participated in the Plan
under Article III and has not yet exceeded any Leave of Absence.

 

2.25                                                                        Participant Deferral.

 

“Participant Deferral” shall mean voluntary Participant
deferral amounts, which could have been received currently but for the election
to defer and are credited to his Account for later distribution, subject to the
terms of the Plan.

 

2.26                                                                        Participant Deferral Account.

 

“Participant Deferral Account” shall mean that portion
of a Participant’s Account established to record Participant Deferrals on
behalf of a Participant.

 

2.27                                                                        Performance Based Compensation.

 

“Performance-based compensation” shall mean
compensation that is (i) variable and contingent on the satisfaction of
pre-established organizational or individual performance criteria; (ii) not
readily ascertainable at the time; and (iii) based on services performed over a
period of at least twelve months.

 

2.28                                                                        Plan
Year.

 

“Plan Year” shall mean the twelve (12) consecutive
month period constituting a calendar year, beginning on January 1 and ending on
December 31. However, in any partial year of the Plan that does not begin on
January 1, “Plan Year” shall also mean the remaining partial year ending on
December 31.

 

7

 

 

2.29                                                                        Qualified Retirement Plan.

 

“Qualified Retirement Plan” shall mean the 401k Plan
sponsored by the Employer.

 

2.30                                                                        Retirement.

 

“Retirement” shall mean a Participant’s actual separation
from service from the Employer having attained age sixty-five (62).

 

2.31                                                                        Separation from Service.

 

“Separation
from Service” shall mean a Participant’s separation from service as an Employee
with the Employer, other than for death, Disability, or Leave of Absence.  A transfer of employment within and among the
Employer and any member of a controlled group, as provided in Code Section 409A
(d)(6), shall not be deemed a Separation from Service.

 

2.32                                                                        Unforeseeable Emergency.

 

“Unforeseeable
emergency” shall mean a severe financial hardship to the Participant, the
Participant’s spouse, or a dependent (as defined in Section 152(a) of the
Code)of the participant, loss of the Participant’s property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant.

 

2.33                                                                        Valuation Date.

 

“Valuation Date” shall mean the close of each business
day, as established and amended from time to time by guidelines and procedures
of the Committee in its sole and exclusive discretion.

 

ARTICLE III—ELIGIBILITY & PARTICIPATION

 

3.1                                                                               Eligibility
Requirements.

 

Only an Eligible Employee selected by the Board
Committee may become a Participant in this Plan. Moreover, a Participant shall
not be permitted to make new Participant Deferrals to the Plan, if he ceases to
be an Eligible Employee because he is no longer a member a select group of
management or highly compensated employees, or otherwise.   The Board Committee shall notify an Eligible
Employee of his eligibility for a Plan Year in such form as it may determine
most appropriate.  Current Participants
remain eligible until notified otherwise.

 

3.2                                                                               Participation.

 

An Eligible Employee shall become a Participant in the
Plan by the completion and timely filing with and subsequent acceptance by, the
Employer of the Deferral Election Form, in such form and according to the terms
and conditions established by the Committee. A Participant (or any

 

8

 

 

Designated Beneficiary who becomes entitled) remains a
Participant as to his Account until his Account Balance is fully distributed
under the terms of the Plan.

 

ARTICLE IV—ELECTIONS, DEFERRALS & MATCHING CONTRIBUTIONS

 

4.1                                                                               Participant
Election to Defer Compensation.

 

A.            Prior
to December 31 or an earlier date set by the Committee, a Participant may elect
to defer Compensation for services to be performed in the next following Plan
Year by the execution and timely filing, and Employer’s acceptance of, a Deferral
Election Form in such form and according to such procedures as the Committee
may prescribe from time to time. Each such Deferral Election Form shall be
effective for the Plan Year to which the Deferral Election Form pertains.

 

B.            Each
Participant may elect annually to have his Compensation for the Plan Year
reduced by a whole percentage that is not less than five percent (5%) ($2,000
minimum), and up to one hundred percent (100%), by timely filing, and the
acceptance by the Employer of, his Deferral Election Form detailing such
deferral. The amount of this Participant Deferral shall be deferred into the
Plan and credited to the Participant’s Account as provided in Article V

 

C.            An
election to defer Performance-Based Compensation may be made at such time and
in such manner as the Committee may specify, but in any event not later than
six months before the end of the period for which it is earned.

 

D.            Under
such Deferral Election Form, a Participant shall indicate the amount of such
Participant Deferral; designate and allocate such Participant Deferral in or
among the elective distribution Account option(s); and, allocate such Accounts
among the various Deemed Crediting Options; provided, however, that Matching
Contributions and earnings thereon must remain in the Employer stock Deemed
Crediting Option.  The Deferral Election
Form shall also permit a Participant to elect annually to receive a
distribution of his entire Account in the event of a Change of Control during
the forthcoming Plan Year. The Deferral Election Form may also request other
information, such as a Participant’s Designated Beneficiary, as may be required
or useful for the administration of the Plan.

 

4.2                                                                             New
Participants and Partial Years.

 

The
initial Deferral Election Form of a new Participant shall be filed with the
Employer on a date established by the Committee, but in any event not later
than 30 days following the date the Participant becomes eligible to participate
in the Plan and shall be effective only with respect to services to be
performed subsequent to the election. Such first Deferral Election Form shall
be applicable to a Participant’s Compensation beginning with the first payroll
in the month after such Form is filed and accepted by the Employer.

 

4.3                                                                               Irrevocable
Elections.

 

An
election in a Deferral Election Form to defer Compensation for a Plan Year,
once made by a Participant, shall be irrevocable.  The Committee, however, shall reduce or
eliminate Participant 

 

9

 

 

Deferrals
upon granting a Participant’s request for a distribution based upon an
Unforeseeable Emergency.

 

4.4                                                                               Matching
Contributions.

 

The Employer may, but shall not be required to,
provide a deemed match, in such amounts as it may determine from time to time,
for Participant Deferrals.  Such Matching
Contributions, if any, shall be credited to the Matching Contribution Account
of the Participant’s Account and shall be subject to the vesting requirements
set forth in Section 6.2.  Such Matching
Contributions shall not exceed the greater of 50% of the Participants deferral
of $50,000 per Participant per year.

 

ARTICLE V—ACCOUNTS & ACCOUNT CREDITING

 

5.1                                                                               Establishment
of a Participant’s Account.

 

A.            Bookkeeping Account. The Committee
shall cause a deemed bookkeeping Account and appropriate sub-accounts, based
upon the primary elective distribution option(s) to be established and
maintained in the name of each Participant, according to his annual Deferral
Election Form for the Plan Year. This Account shall reflect the amount of
Participant Deferrals, Matching Contributions and Deemed Earnings credited on
behalf of each Participant under this Plan.

 

B.            Bookkeeping Activity. Participant
Deferrals shall be credited to a Participant’s Account on the business day they
would otherwise have been made available as cash to the Participant.  Matching Contributions shall be credited to a
Participant’s Account on the Valuation Date the Employer designates.  Deemed Earnings shall be credited or debited
to each Participant’s Account, as well as any distributions, any other
withdrawals under this Plan, as of a Valuation Date. Accounts shall continue on
each Valuation Date until the Participant’s Account is fully distributed under
the terms of the Plan.

 

5.2                                                                               Deemed
Crediting Options.

 

A.            General.  The Committee shall establish a portfolio
of two or more Deemed Crediting Options, among which a Participant may allocate
amounts credited to his Account, which are subject to Participant direction
under this Plan. The Committee reserves the right, in its sole and exclusive
discretion, to substitute, eliminate and otherwise change this portfolio of
Deemed Crediting Options, as well as the right to establish rules and
procedures for the selection and offering of these Deemed Crediting Options.

 

B.            Employer
Stock Deemed Crediting. One of the Deemed Crediting Options shall be
Employer Stock.  Amounts credited to this
option shall be deemed to be invested in shares of common stock of the
Employer.  A Participant’s Account will
be credited with deemed distributions if and when dividends are declared and
paid with respect to Employer common stock, and such deemed dividends will be
deemed to have been reinvested in Employer common stock as of the first
business day following the deemed payment. Fair market value of Employer common
stock means, as of any day, the average of the closing prices of sales of

 

10

 

 

shares of common stock on all national securities
exchanges on which the common stock may be listed.  If there have been no sales on such day, the
average of the highest bid and lowest asked prices on all such exchanges at the
end of such day shall be used.  If such
common stock is not listed on any national exchange, then the average of the
representative bid and asked prices quoted in the National Association of
Securities Dealers, Inc. Automated Quotation System for such date or the next
preceding date that the common stock was traded on such market shall be used.

 

5.3                                                                               Allocation
Of Account Among Deemed Crediting Options.

 

A.            Each
Participant shall elect the manner in which his Account is divided among the
Deemed Crediting Options by giving allocation instructions in a Deferral
Election Form supplied by and filed with the Committee, or by such other
procedure, including electronic communications, as the Committee may prescribe.
A Participant’s election shall specify the percentage of his Account (in any
whole percentage) to be deemed to be invested in any Deemed Crediting Option;
provided, however, that a Participant Matching Contribution Account must be
fully allocated to the Employer Stock Deemed Crediting Option.  Such election shall remain in effect until a
new election is made.

 

B.            Amounts
credited to a Participant’s Account shall be deemed to be invested in
accordance with the most recent effective Deemed Crediting Option election. As
of the effective date of any new Deemed Crediting Option election, all or a
portion of the Participant’s Account shall be reallocated among the designated
Deemed Crediting Options and according to the percentages specified in the new
instructions, until and unless subsequent instructions shall be filed and
become effective. If the Committee receives a Deemed Crediting Option election,
which is unclear, incomplete or improper, the Deemed Crediting Option election
then in effect shall remain in effect until the subsequent instruction is
clarified, completed or otherwise made acceptable to the Committee.

 

5.4                                                                               Valuation
and Risk of Decrease in Value.

 

The Participant’s Account will be valued on the
Valuation Date at fair market value. On such date, Deemed Earnings will be
allocated to each Participant’s Account. Each Participant and Designated
Beneficiary assumes the risk in connection with any decrease in the fair market
value of his Account.

 

5.5                                                                               Limited
Function of Committee.

 

By deferring compensation pursuant to the Plan, each
Participant hereby agrees that the Employer and Committee are in no way
responsible for or guarantor of the investment results of the Participant’s
Account. The Committee shall have no duty to review, or to advise the
Participant on, the investment of the Participant’s Account; and in fact, shall
not review or advise the Participant thereon. Furthermore, the Committee shall
have no power to direct the investment of the Participant’s Account other than
promptly to carry out the Participant’s deemed investment instructions when
properly completed and transmitted to the Committee and accepted according to
its rules and procedures.

 

11

 

 

ARTICLE VI—VESTING

 

6.1                                                                             Vesting
of Participant Deferrals.

 

A Participant shall be fully vested at all times in
Participant Deferrals, as well as Deemed Earnings upon Participant Deferrals,
credited to his Participant Deferral Account.

 

6.2                                                                               Vesting
of Matching Contributions.

 

A Participant shall vest in Matching Contributions, as
well as Deemed Earnings upon Matching Contributions, credited to his Matching
Contribution Account in accordance with the schedule below.

 

	
  Year of Matching
  Contribution:

  	
   

  	
  0

  	
  %

  
	
  The first year after the Matching Contribution

  	
   

  	
  0

  	
  %

  
	
  The second year after the Matching Contribution

  	
   

  	
  0

  	
  %

  
	
  The third year after the Matching Contribution

  	
   

  	
  0

  	
  %

  
	
  The forth year after the Matching Contribution

  	
   

  	
  100

  	
  %

  

 

Notwithstanding the above, a Participant shall become
fully vested in his Matching Contribution Account upon death, Disability,
Change of Control or Retirement.  Upon
Separation from Service, a Participant shall be entitled to the vested portion
of his Matching Contribution Account, and any non-vested portion shall be
forfeited.

 

ARTICLE VII—DISTRIBUTIONS

 

7.1                                                                               Distributions
Generally.

 

A Participant’s
Account shall be distributed only in accordance with the provisions of this
Article VII. All distributions from Accounts under the Plan shall be made in
cash in American currency. Distributions from the Plan shall be made in cash;
provided, however, that to the extent that all or a portion of a Participant’s
Account is deemed to be invested in common stock of Cardinal Financial
Corporation (“Common Stock”), such amounts shall be paid in shares of Common
Stock in an amount equal to the number of whole shares of Common Stock credited
to the Participant’s Account as of the date of distribution.  Any fractional share shall be paid in
cash.  

 

7.2                                                                               Automatic
Distributions.

 

A.            Participant’s Death. If the Participant
dies while employed by the Employer, his Account shall be valued as of the
Valuation Date next following his date of death and shall be distributed in
lump sum to his Designated Beneficiary as soon as administratively feasible.

 

B.            Participant’s Disability. If a
Participant becomes disabled while employed by the Employer, his Account shall
be valued as of the Valuation Date next following his date of Disability and
shall be distributed in lump sum to him as soon as administratively feasible.

 

C.            Separation from Service. If a Participant
incurs a Separation from Service, his vested Account shall be valued as of the
Valuation Date next following his official date of separation and shall be
distributed in lump sum to him as soon as administratively feasible; provided,

 

12

 

 

however, that the Account of a Key Employee shall not
be distributed until six months following Separation from Service.

 

7.3                                                                               Elective
Distributions.

 

A
Participant shall become entitled to receive a distribution from his Account at
such time or times and by such method of payment as elected and specified in
the Participant’s applicable annual Deferral Election Form, and/or as may be
mandated by the provisions of this Article VII based upon the following
distribution options:

 

A.            Retirement Distribution. Upon a
Participant’s Retirement from the Employer, his Account shall be distributed
according to the method of payment elected in his applicable Deferral Election
Form.  If the Participant dies while
receiving Retirement installment payments, his Designated Beneficiary shall
continue to receive the remaining installments. 
If subsequently, the Designated Beneficiary dies, any remaining
installments will be paid to the Designated Beneficiaries estate.

 

B.    In-Service Distributions. If a Participant
elects in his annual Deferral Election Form, he can receive a distribution from
his Account, as soon as three (3) years after the end of the deferral Plan
Year, all of his annual deferral amount, plus amounts credited/debited based on
the performance of the Participant’s elected Deemed Crediting Options. The
election is made on an annual basis, applies only to the Participant’s current
Plan Year contributions, is irrevocable and is payable according to the method
of payment elected in the Participant’s applicable annual Deferral Election
Form. If the Participant dies while receiving In-Service installment payments, his
Designated Beneficiary shall continue to receive the remaining installments. If
subsequently, the Designated Beneficiary dies; any remaining installments will
be paid to the Designated Beneficiary’s estate.

 

C.            Change of Control Distribution. If a
Participant shall so elect in his annual Deferral Election Form, a
Participant’s elective distribution election(s) shall be overridden and his
entire Account shall be distributed to him as set forth in Section 7.4 C if a
Change of Control should occur during the Plan Year.

 

7.4                                                                               Timing
and Method of Payment for Elective Distributions.

 

A.            Retirement Distribution. At the
election of a Participant in the applicable Deferral Election Form, a
Participant may receive a Retirement distribution in a lump sum or in payments
of up to ten (10) annual installments (10 years) with the first installment to
begin within ten (10) days of the first business day on or after January 1 in
the calendar year following the Participant’s date of Retirement and to be paid
thereafter within ten (10) days of the first business day on or after January 1
of each calendar year until the Account has been fully distributed; provided,
however, that a Participant who is a Key Employee shall not begin to receive
payment earlier than six months following his retirement.

 

B.            In-Service Distributions.  At the election of a Participant in the
applicable Deferral Election Form, an In-Service distribution may be selected
for payment as soon as three (3)

 

13

 

 

years after the end of the deferral Plan Year.  Distribution will be either in the form of a
lump-sum, occurring no later than thirty (30) days following the distribution
date elected on the Deferral Election Form, or in annual installment payments
beginning with the first business day on or after the commencement date as
selected by the Participant in the annual Deferral Election Form and for a
duration as selected by the Participant in the annual Deferral Election Form
and to be paid thereafter within ten (10) days of the anniversary of the
distribution date of each calendar year until the In-Service Distribution
amount has been fully distributed.  A
Participant’s Account shall be valued as of such distribution date elected on
the Deferral Election Form.

 

C.            Change of Control Distribution. If
so elected by the Participant in his Annual Distribution Election Form, a
distribution of all of a Participant’s Account shall be made to him in a lump
sum within thirty (30) days of the effective date of a Change of Control,
overriding any prior Participant election(s) for distribution. Notwithstanding
the foregoing provision, no distribution shall be made to any Participant until
the earliest date and upon such conditions as may be set forth under Treasury
regulations issued pursuant to Code Section 409A (e). A Participant’s Account
shall be valued as of such effective date of the Change of Control.  If no such election was made by the
Participant in his Annual Distribution Election Form, his distribution
election(s) will not be overridden.

 

D.            Installment Payments. In any
distribution in which a Participant has elected or will receive distribution in
periodic installments, the amount of each periodic installment shall be
determined by applying a formula to the Account in which the numerator is the
number one and the denominator is the number of remaining installments to be
paid. For example, if a Participant elects ten (10) annual installments for a
Retirement distribution, the first payment will be 1/10 of the Account, the
second will be 1/9, the third will be 1/8; the fourth will be 1/7 and so on
until the Account is entirely distributed.

 

E.              Failure to Designate a Method of Payment. In
any situation in which the Committee is unable to determine the method of
payment because of incomplete, unclear, or uncertain instructions in a
Participant’s Deferral Election Form, the Participant will be deemed to have
elected a lump sum distribution.

 

F.              Subsequent
Elections.  A Participant who has
made an In-Service distribution or a Retirement distribution election may make
one or more subsequent elections to postpone the distribution date or to change
the form of payment to another form permitted by the Plan.  Such Subsequent Election shall be made in
writing is such form as is acceptable to the Committee and (i) is made at least
twelve months prior to the original distribution date; (ii) provides for an
effective date at least twelve months following the Subsequent Election; and
(iii) postpones the commencement of payment for a period of not less than five
years from the previous distribution date.

 

7.5                                                                               Distributions
Resulting from Unforeseeable Emergency.

 

A Participant may
request that all or a portion of his Account be distributed at any time prior
to separation from service from the Employer by submitting a written request to
the Committee,

 

14

 

 

provided that the
Participant has incurred an Unforeseeable Emergency, and the distribution is necessary
to alleviate such Unforeseeable Emergency.

 

Such distribution
shall be limited to an amount that does not exceed the amount necessary to satisfy
such emergency, plus amounts necessary to pay taxes reasonably anticipated as a
result of the distribution, after taking into account the extent to which such
hardship is or may be relieved through reimbursement or compensation by
insurance or otherwise or by liquidation of the Participant’s assets (to the
extent the liquidation of such assets would not itself cause severe financial
hardship).  Such distribution shall be
made as soon as administratively practicable. The Balance not distributed from
the Participant’s Account shall remain in the Plan.

 

7.6                                                                               Distributions
of Small Accounts.

 

If at any time the value of the Participant’s Account
is less than $5,000 (or such other greater or lesser amount as may be specified
as “minimal” under Treasury regulations), the Committee, in its sole and
exclusive discretion, may make a distribution in lump sum of the value of the
entire Account. If the value of a Participant’s Account is zero upon the
Valuation Date of any distribution, the Participant shall be deemed to have
received a distribution of such Account and his participation in the Plan
terminates.

 

ARTICLE VIII—ADMINISTRATION & CLAIMS PROCEDURE

 

8.1                                                                               Duties
of the Employer.

 

The Employer shall have overall responsibility for the
establishment, amendment, termination, administration, and operation of the
Plan. The Employer shall discharge this responsibility by the appointment and
removal (with or without cause) of the members of the Committee, to which is
delegated overall responsibility for administering, managing and operating the
Plan.

 

8.2                                                                               The
Committee.

 

The
Committee shall consist of one or more members who shall be appointed by, and
may be removed by, the Employer, and one of whom (who must be an officer of the
Employer) shall be designated by the Employer as Chairman of the Committee. In
the absence of such appointment, the Employer shall serve as the Committee. The
Committee shall consist of officers or other Employees of the Employer, or any
other persons who shall serve at the request of the Employer. Any member of the
Committee may resign by delivering a written resignation to the Employer and to
the Committee, and this resignation shall become effective upon the date
specified therein. The members of the Committee shall serve at the will of the
Employer, and the Employer may from time to time remove any Committee member
with or without cause and appoint their successors. In the event of a vacancy
in membership, the remaining members shall constitute the Committee with full
order to act.

 

15

 

 

8.3                                                                               Committee’s
Powers and Duties to Enforce Plan.

 

The Committee shall be the “Administrator” and “Named
Fiduciary” only to the extent required by ERISA for top-hat plans and shall
have the complete control and authority to enforce the Plan on behalf of any
and all persons having or claiming any interest in the Plan in accordance with
its terms. The Committee, in its sole and absolute discretion, shall interpret
the Plan and shall determine all questions arising in the administration and
application of the Plan. Any such interpretation by the Committee shall be
final, conclusive and binding on all persons.

 

8.4                                                                               Organization
of the Committee.

 

The Committee shall act by a majority of its members
at the time in office. Committee action may be taken either by a vote at a
meeting or by written consent without a meeting. The Committee may authorize
any one or more of its members to execute any document or documents on behalf
of the Committee. The Committee shall notify the Employer, in writing, of such
authorization and the name or names of its member or members so designated in
such cases. The Employer thereafter shall accept and rely on any documents
executed by said member of the Committee or members as representing action by
the Committee until the Committee shall file with the Employer a written
revocation of such designation.  The
Committee may adopt such by-laws and regulations, as it deems desirable for the
proper conduct of the Plan and to change or amend these by-laws and regulations
from time to time. With the permission of the Employer, the Committee may
employ and appropriately compensate accountants, legal counsel, benefit
specialists, actuaries, plan administrators and record keepers and any other
persons as it deems necessary or desirable in connection with the
administration and maintenance of the Plan. Such professionals and advisors
shall not be considered members of the Committee for any purpose.

 

8.5                                                                               Limitation
of Liability.

 

A.            No member of the Board of Directors,
the Employer and no officer or Employee of the Employer shall be liable to any
Employee, Participant, Designated Beneficiary or any other person for any
action taken or act of omission in connection with the administration or
operation of this Plan unless attributable to his own fraud or willful
misconduct. Nor shall the Employer be liable to any Employee, Participant,
Designated Beneficiary or any other person for any such action taken or act of
omission unless attributable to fraud, gross negligence or willful misconduct
on the part of a Director, officer or Employee of the Employer.  Moreover, each Participant, Designated
Beneficiary, and any other person claiming a right to payment under the Plan
shall only be entitled to look to the Employer for payment, and shall not have
the right, claim or demand against the Committee (or any member thereof), any
Director, Officer or Employee of the Employer.

 

B.            To the fullest extent permitted by the
law and subject to the Employer’s Certificate of Incorporation and By-laws, the
Employer shall indemnify the Committee, each of its members, and the Employer’s
officers and Directors (and any Employee involved in carrying out the functions
of the Employer under the Plan) for part or all expenses, costs, or liabilities
arising out of the performance of duties required by the terms of the Plan
agreement, except for those expenses, costs, or liabilities arising out of a
member’s fraud, willful misconduct or gross negligence.

 

16

 

 

8.6                                                                               Committee
Reliance on Records and Reports.

 

The Committee shall be entitled to rely upon
certificates, reports, and opinions provided by an accountant, tax or pension
advisor, actuary or legal counsel employed by the Employer or Committee. The
Committee shall keep a record of all its proceedings and acts, and shall keep
all such books of account, records, and other data as may be necessary for the
proper administration of the Plan. The regularly kept records of the Committee
and the Employer shall be conclusive evidence of the service of a Participant,
Compensation, age, marital status, status as an Employee, and all other matters
contained therein and relevant to this Plan. The Committee, in any of its
dealings with Participants hereunder, may conclusively rely on any Deferral
Election Form, written statement, representation, or documents made or provided
by such Participants.

 

8.7                                                                               Costs
of the Plan.

 

All the costs and expenses for maintaining the
administration and operation of the Plan shall be borne by the Employer unless
the Employer shall give notice (that Plan Participants bear this expense, in
whole or in part) to: (a) Eligible Participants at the time they become a
Participant by completion and filing of a Deferral Election Form; or (b) to
existing Participants during annual re-enrollment.  Such notice shall detail the administrative
expense to be assessed a Plan Participant, how that expense will be assessed
and allocated to the Participant Accounts, and any other important information
concerning the imposition of this administrative expense. This administration
charge, if any, shall operate as a reduction to the bookkeeping Account of a
Participant or his designated Beneficiary, and in the absence of specification
otherwise shall reduce the Account, and be charged annually during the month of
January.

 

8.8                                                                               Claims
Procedure.

 

A.            Claim. Benefits shall be paid in
accordance with the terms of this Plan. A Participant, Designated Beneficiary
or any person who believes that he is being denied a benefit to which he is
entitled under the Plan (hereinafter referred to as a “Claimant”) may file a
written request for such benefit with the Employer, setting forth his claim.
The request must be addressed to the Committee care of Secretary of the
Employer at its then principal place of business.

 

B.            Claim Decision. Upon the receipt of a
claim, the Committee shall advise the Claimant that a reply will be forthcoming
within ninety (90) days and shall, in fact, deliver such reply within such
period. However, the Committee may extend the reply period for an additional
ninety (90) days for reasonable cause. Any claim not granted or denied within
such time period shall be deemed to have been denied.  If the claim is denied in whole or in part,
the Committee shall adopt a written opinion, using language calculated to be
understood by the Claimant, setting forth:

 

(1)         The
specific reason or reasons for such denial;

 

(2)         The
specific reference to pertinent provisions of this Agreement on which such
denial is based;

 

17

 

 

(3)         A
description of any additional material or information necessary for the Claimant
to perfect his claim and an explanation why such material or such information
is necessary;

 

(4)         Appropriate information as to the steps to
be taken if the Claimant wishes to submit the claim for review; and

 

(5)         The
time limits for requesting a review under Subsection C and for review under
Subsection D hereof.

 

C.            Request for Review. Within sixty (60)
days after the receipt by the Claimant of the written opinion described above,
the Claimant may request in writing that the Secretary of the Employer review
the determination of the Committee. Such request must be addressed to the
Secretary of the Employer, at its then principal place of business. The
Claimant or his duly authorized representative may, but need not, review the
pertinent documents and submit issues and comments in writing for consideration
by the Employer. If the Claimant does not request a review of the Committee’s
determination by the Secretary of the Employer within such sixty (60) day
period, he shall be barred and estopped from challenging the Committee’s
determination.

 

D.            Review of Decision. Within sixty (60)
days after the Secretary’s receipt of a request for review, he will review the
Committee’s determination. After considering all materials presented by the
Claimant, the Secretary will render a written opinion, written in a manner
calculated to be understood by the Claimant, setting forth the specific reasons
for the decision and containing specific references to the pertinent provisions
of this Agreement on which the decision is based. If special circumstances
require that the sixty (60) day time period be extended, the Secretary will so
notify the Claimant and will render the decision as soon as possible, but no
later than one hundred twenty (120) days after receipt of the request for
review. Any claim not granted or denied within such time period shall be deemed
to have been denied.

 

8.9                                                                               Litigation.

 

It shall only be necessary to join the Employer as a
party in any action or judicial proceeding affecting the Plan. No Participant or
Designated Beneficiary or any other person claiming under the Plan shall be
entitled to service of process or notice of such action or proceeding, except
as may be expressly required by law. Any final judgment in such action or
proceeding shall be binding on all Participants, Designated Beneficiaries or
persons claiming under the Plan.

 

ARTICLE IX—AMENDMENT, TERMINATION & REORGANIZATION

 

9.1                                                                               Amendment.

 

The Employer by action of its Board of Directors, or
duly authorized Committee thereof, in accordance with its by-laws, reserves the
right to amend the Plan, by resolution of the Employer, to the extent permitted
under the Code and ERISA. However, no amendment to the Plan shall be

 

18

 

 

effective to the extent that it has the effect of
decreasing a Participant’s (or Designated Beneficiary’s) accrued benefit prior
to the date of the amendment.

 

9.2                                                                               Amendment
Required By Law.

 

Notwithstanding Section 9.1, the Plan may be amended
at any time, if in the opinion of the Employer, such amendment is necessary to
ensure the Plan is treated as a nonqualified plan of deferred compensation
under the Code and ERISA, or to bring it into conformance with Treasury or SEC
regulations or requirements for such plans. This includes the right to amend
this Plan, so that any Trust, if applicable, created in conjunction with this
Plan, will be treated as a grantor Trust under Sections 671 through 679 of the
Code, and to otherwise conform the Plan provisions and such Trust, if applicable,
to the requirements of any applicable law.

 

9.3                                                                               Termination.

 

The Employer intends to continue the Plan
indefinitely. However, the Employer by action of its Board of Directors or a
duly authorized Committee thereof, in accordance with its by-laws, reserves the
right to terminate the Plan at any time. However, no such termination shall
deprive any participant or Designated Beneficiary of a right accrued under the
Plan prior to the date of termination.

 

9.4                                                                               Consolidation/Merger.

 

The Employer shall not enter into any consolidation or
merger without the guarantee and assurance of the successor or surviving
company or companies to the obligations contained under the Plan. Should such
consolidation or merger occur, the term “Employer” as defined and used in this
Agreement shall refer to the successor or surviving company.

 

ARTICLE X—GENERAL PROVISIONS

 

10.1                                                                        Applicable
Law.

 

Except insofar as the law has been superseded by
Federal law, Virginia law shall govern the construction, validity and
administration of this Plan as created by this Agreement. The parties to this
Agreement intend that this Plan shall be a nonqualified unfunded plan of
deferred compensation without plan assets and any ambiguities in its
construction shall be resolved in favor of an interpretation which will effect
this intention.

 

10.2                                                                        Benefits
Not Transferable or Assignable.

 

A.            Benefits under the Plan shall not be
subject to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber or charge such benefits shall be void, nor shall any
such benefits be in any way liable for or subject to the debts, contracts,
liabilities, engagements or torts of any person entitled to them. However, a
Participant may name a recipient for any benefits payable or which would become
payable to a Participant upon his death. This Section

 

19

 

 

shall also apply to the creation, assignment or
recognition of a right to any benefit payable with respect to a Participant
pursuant to a domestic relations order, including a qualified domestic
relations order under Section 414(p) of the Code. In addition, the following
actions shall not be treated or construed as an assignment or alienation: (a)
Plan Contribution or distribution tax withholding; (b) recovery of distribution
overpayments to a Participant or Designated Beneficiary; (c) direct deposit of
a distribution to a Participant’s or Designated Beneficiary’s banking institution
account; or (d) transfer of Participant rights from one Plan to another Plan,
if applicable.

 

B.            The Employer may bring an action for a
declaratory judgment if a Participant’s, Designated Beneficiary’s or any
Beneficiary’s benefits hereunder are attached by an order from any court. The
Employer may seek such declaratory judgment in any court of competent
jurisdiction to:

 

(1)         determine
the proper recipient or recipients of the benefits to be paid under the Plan;

 

(2)         protect
the operation and consequences of the Plan for the Employer and all
Participants; and

 

(3)         request
any other equitable relief the Employer in its sole and exclusive judgment may
feel appropriate.

 

Benefits which may become payable during the pendency
of such an action shall, at the sole discretion of the Employer, either be:

 

(1)         paid
into the court as they become payable or

 

(2) held in the Participant’s or
Designated Beneficiary’s Account subject to the court’s final distribution
order.

 

10.3                                                                        Not
an Employment Contract.

 

The Plan is not and shall not be deemed to constitute
a contract between the Employer and any Employee, or to be a consideration for,
or an inducement to, or a condition of, the employment of any Employee. Nothing
contained in the Plan shall give or be deemed to give an Employee the right to
remain in the employment of the Employer or to interfere with the right to be
retained in the employ of the Employer, any legal or equitable right against
the Employer, or to interfere with the right of the Employer to discharge any
Employee at any time. It is expressly understood by the parties hereto that
this Agreement relates to the payment of deferred compensation for the
Employee’s services, generally payable after separation from employment with
the Employer, and is not intended to be an employment contract.

 

10.4                                                                        Notices.

 

A.            Any
notices required or permitted hereunder shall be in writing and shall be deemed
to be sufficiently given at the time when delivered personally or when mailed
by certified or registered first class mail, postage prepaid, addressed to
either party hereto as follows:

 

20

 

 

If to the Employer:

 

Cardinal Financial Corporation

8270 Greensboro Drive

Suite 500

McLean, VA 22102

 

If to the Participant:

 

At his last known address, as indicated by the records
of the Employer.

 

or
to such changed address as such parties may have fixed by notice. However, any
notice of change of address shall be effective only upon receipt.

 

B.            Any
communication, benefit payment, statement of notice addressed to a Participant
or Designated Beneficiary at the last post office address as shown on the
Employer’s records shall be binding on the Participant or Designated
Beneficiary for all purposes of the Plan. The Employer shall not be obligated
to search for any Participant or Designated Beneficiary beyond sending a
registered letter to such last known address.

 

10.5                                                                        Severability.

 

The Plan as contained in the provisions of this
Agreement constitutes the entire Agreement between the parties. If any
provision or provisions of the Plan shall for any reason be invalid or
unenforceable, the remaining provisions of the Plan shall be carried into
effect, unless the effect thereof would be to materially alter or defeat the
purposes of the Plan. All terms of the plan and all discretion granted
hereunder shall be uniformly and consistently applied to all the Employees,
Participants and Designated Beneficiaries.

 

10.6                                                                        Participant
is General Creditor with No Rights to Assets.

 

A.            The
payments to the Participant or his Designated Beneficiary or any other
beneficiary hereunder shall be made from assets which shall continue, for all
purposes, to be a part of the general, unrestricted assets of the Employer, no
person shall have any interest in any such assets by virtue of the provisions
of this Agreement. The Employer’s obligation hereunder shall be an unfunded and
unsecured promise to pay money in the future. To the extent that any person
acquires a right to receive payments from the Employer under the provisions
hereof, such right shall be no greater than the right of any unsecured general
creditor of the Employer; no such person shall have nor require any legal or
equitable right, or claim in or to any property or assets of the Employer. The
Employer shall not be obligated under any circumstances to fund obligations
under this Agreement.

 

21

 

 

B.            The Employer at its sole discretion and
exclusive option, may acquire and/or set-aside assets or funds, in a trust or
otherwise, to support its financial obligations under this Plan. No such trust
established for this purpose shall be established in or transferred to a
location that would cause it to be deemed to be an “offshore trust” for
purposes of Code Section 409A (b)(1).  No
such acquisition or set-aside shall impair or derogate from the Employer’s
direct obligation to a Participant or Designated Beneficiary under this Plan.
However, no Participant or Designated Beneficiary shall be entitled to receive
duplicate payments of any Accounts provided under the Plan because of the
existence of such assets or funds.

 

C.            In
the event that, in its discretion, the Employer purchases an asset(s) or
insurance policy or policies insuring the life of the Participant to allow the
Employer to recover the cost of providing benefits, in whole or in part
hereunder, neither the Participant, Designated Beneficiary nor any other
beneficiary shall have any rights whatsoever therein in such assets or in the
proceeds therefrom. The Employer shall be the sole owner and beneficiary of any
such assets or insurance policy and shall possess and may exercise all
incidents of ownership therein. No such asset or policy, policies or other
property shall be held in any trust for the Participant or any other person nor
as collateral security for any obligation of the Employer hereunder. Nor shall
any Participant’s participation in the acquisition of such assets or policy or
policies be a representation to the Participant, Designated Beneficiary or any
other beneficiary of any beneficial interest or ownership in such assets,
policy or policies. A Participant may be required to submit to medical
examinations, supply such information and to execute such documents as may be
required by an insurance carrier or carriers (to whom the Employer may apply
from time to time) as a precondition to participate in the Plan.

 

10.7                                                                        No
Trust Relationship Created.

 

Nothing contained in this Agreement shall be deemed to
create a trust of any kind or create any fiduciary relationship between the
Employer and the Participant, Designated Beneficiary, other beneficiaries of
the Participant, or any other person claiming through the Participant. Funds
allocated hereunder shall continue for all purposes to be part of the general
assets and funds of the Employer and no person other than the Employer shall,
by virtue of the provisions of this Plan, have any beneficial interest in such
assets and funds.  The creation of a
grantor Trust (so called “Rabbi Trust”) under the Code (owned by and for the
benefit of the Employer) to hold such assets or funds for the administrative
convenience of the Employer shall not give nor be a representation to a
Participant, Designated Beneficiary, or any other person, of a property or
beneficial ownership interest in such Trust assets or funds even though the
incidental advantages or benefits of the Trust to Plan Participants may be
communicated to them.

 

10.8                                                                        Limitations
on Liability of the Employer.

 

Neither the establishment of the Plan nor any modification
hereof nor the creation of any Account under the Plan nor the payment of any
benefits under the Plan shall be construed as giving to any Participant or any
other person any legal or equitable right against the Employer or any Director,
officer or Employee thereof except as provided by law or by any Plan provision.

 

22

 

 

 

10.9                                                                        Agreement
Between Employer and Participant Only.

 

This Agreement is solely between the Employer and
Participant. The Participant, Designated Beneficiary, estate or any other
person claiming through the Participant, shall only have recourse against the
Employer for enforcement of this Agreement. This Agreement shall be binding
upon and inure to the benefit of the Employer and its successors and assigns,
and the Participant, successors, heirs, executors, administrators and
beneficiaries.

 

10.10                                                                 Independence
of Benefits.

 

The benefits payable under this Agreement are for
services already rendered and shall be independent of, and in addition to, any
other benefits or compensation, whether by salary, bonus, fees or otherwise,
payable to the Participant under any compensation and/or benefit arrangements
or plans, incentive cash compensations and stock plans and other retirement or
welfare benefit plans, that now exist or may hereafter exist from time to time.

 

10.11                                                                 Unclaimed
Property.

 

Except as may be required by law, the Employer may
take any of the following actions if it gives notice to a Participant or
Designated Beneficiary of an entitlement to benefits under the Plan, and the
Participant or Designated Beneficiary fails to claim such benefit or fails to
provide their location to the Employer within three (3) calendar years of such
notice:

 

(1)         Direct
distribution of such benefits, in such proportions as the Employer may
determine, to one or more or all, of a Participant’s next of kin, if their
location is known to the Employer;

 

(2)         Deem
this benefit to be a forfeiture and paid to the Employer if the location of a
Participant’s next of kin is not known. 
However, the Employer shall pay the benefit, unadjusted for gains or
losses from the date of such forfeiture, to a Participant or Designated
Beneficiary who subsequently makes proper claim to the benefit.

 

The Employer shall not be liable to any person for
payment pursuant to applicable state unclaimed property laws.

 

10.12                                                                 Required
Tax Withholding and Reporting.

 

The Employer shall withhold and report Federal, state
and local income and payroll tax amounts on all Contributions to and
distributions and withdrawals from a Participant’s Account as may be required
by law from time to time.

 

CARDINAL FINANCIAL CORPORATION

 

 

	
  BY

  	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  	
   

  
				

 

23Exhibit 4.5

 

CARDINAL FINANCIAL CORPORATION

 

NON-EMPLOYEE
DIRECTORS DEFERRED

INCOME PLAN

AS AMENDED APRIL 21, 2006

 

SECTION I -
INTRODUCTION

 

Effective January 1, 2005, Cardinal
Financial Corporation (“Company”) hereby establishes this Non-Employee Directors
Deferred Income Plan for members of its Board of Directors (“Board”), who are
not employees of the Company or an affiliate (“Non-Employee Directors”). The
Plan is intended to comply fully with the requirements of Section 409A of the
Internal Revenue Code. 

 

SECTION II
– PLAN PARTICIPANTS

 

Each Non-Employee Director shall
become a Participant under the Plan by filing the written Election Form
described in Section III below with the Plan Administrator appointed by the
Compensation Committee of the Board (“Committee”) with respect to the Retainers
and Meeting Fees payable to the Non-Employee Director for his services as a
member of the Board. 

 

SECTION III
- DEFERRAL ELECTIONS AND MATCHING CONTRIBUTIONS

 

(a) Each Participant may elect to
defer receipt of his entire Retainer and/or Meeting Fees until his service on
the Board terminates for any reason and have the cash value of such
Retainer/Meeting Fees credited to the Participant Account established for him
under the Plan, pursuant to the provisions of paragraph (a) of Section IV
below.

 

(b) Each election with respect to a
Retainer and Meeting Fee for a calendar year shall be set forth on an Election
Form provided by the Plan Administrator. Such Election Form shall be in writing
and shall specify the elections described above with respect to Retainers and
Meeting Fees.

 

(c) An Election Form effective for
a calendar year shall be delivered to the Plan Administrator prior to the first
day of such calendar year. An Election Form shall remain in effect for subsequent
calendar years until a written notice to revise the Election Form is delivered
to the Plan Administrator on or before the first day of the calendar year in
which the revision is to become effective. Except as provided in paragraph (d)
below, an initial Election Form or a revised Election Form shall apply only to
a Retainer or Meeting Fee otherwise payable to a Participant after the end of
the calendar year in which such initial or revised Election Form is delivered
to the Plan Administrator. Any Election Form delivered by a Participant shall
be irrevocable with respect to any Retainer or Meeting Fee covered by the
elections set forth therein.

 

 

(d) Notwithstanding the provisions
of paragraph (c) above, an election made by a Participant in the calendar year
in which he first becomes eligible to participate in the Plan may be made
pursuant to an Election Form delivered to the Plan Administrator within 30 days
after the date on which he initially becomes eligible to participate, and such
Election Form shall be effective with respect to Retainers and Meeting Fees
earned from and after the date such Election Form is delivered to the Plan
Administrator.

 

(e) The Company may, but shall not
be required to, provide a deemed match, in such amounts as it may determine
from time to time, to the Participant Account. Such Matching Contributions, if
any, shall be credited to the Matching Contribution Account of the
Participant’s Account and shall be subject to the vesting requirements set
forth in subsection (f) below. Such Matching Contributions shall not exceed the
greater of 50% of the Participant’s deferral or $10,000 annually.

 

(f) A Participant shall vest in
Matching Contributions, as well as Deemed Earnings upon Matching Contributions,
immediately.

 

SECTION IV
- PARTICIPANT ACCOUNTS

 

(a) Each Participant’s Account
interest may be divided into one or more separate accounts or sub-accounts,
including the Participant Deferral Account and the Matching Contribution
Account, which reflect not only the deferrals and contributions into the Plan,
but also gains and losses, and income and expenses allocated thereto, as well
as distributions or any other withdrawals. The value of these accounts or
sub-accounts shall be determined as of the Valuation Date. The existence of an account
or bookkeeping entries for a Participant (or his Designated Beneficiary) does
not create, suggest or imply that a Participant, Designated Beneficiary, or
other person claiming through them under this Plan, has a beneficial interest
in any asset of the Company

 

(b) The Committee shall establish a
portfolio of two or more Deemed Crediting Options, among which a Participant
may allocate amounts credited to his Account, which are subject to Participant
direction under this Plan. The Committee reserves the right, in its sole and
exclusive discretion, to substitute, eliminate and otherwise change this
portfolio of Deemed Crediting Options, as well as the right to establish rules
and procedures for the selection and offering of these Deemed Crediting Options.

 

(c) One of the Deemed Crediting
Options shall be Company Stock. Amounts credited to this option shall be deemed
to be invested in shares of common stock of the Company. A Participant’s
Account will be credited with deemed distributions if and when dividends are
declared and paid with respect to Company common stock, and such deemed
dividends will be deemed to have been reinvested in Company common stock as of
the first business day following the deemed payment. Fair market value of
Company common stock means, as of any day, the average of the closing prices of
sales of shares of common stock on all national securities exchanges on which
the common stock may be listed. If there have been no sales on such day, the
average of the highest bid and lowest asked prices on all such exchanges at the
end of such day shall be used. If such

 

2

 

 

common stock is not listed on any national exchange, then the
average of the representative bid and asked prices quoted in the National
Association of Securities Dealers, Inc. Automated Quotation System for such
date or the next preceding date that the common stock was traded on such market
shall be used.

 

(d) Each Participant shall elect
the manner in which his Account is divided among the Deemed Crediting Options
by giving allocation instructions in a Deferral Election Form supplied by and
filed with the Committee, or by such other procedure, including electronic
communications, as the Committee may prescribe. Such election shall remain in
effect until a new election is made. A Participant’s election shall specify the
percentage of his Account (in any whole percentage) to be deemed to be invested
in any Deemed Crediting Option; provided, however, that a Participant Matching
Contribution Account must be fully to the Company Stock Deemed Crediting
Option.

 

(e) Amounts credited to a
Participant’s Account shall be deemed to be invested in accordance with the
most recent effective Deemed Crediting Option election. As of the effective date
of any new Deemed Crediting Option election, all or a portion of the
Participant’s Account shall be reallocated among the designated Deemed
Crediting Options and according to the percentages specified in the new
instructions, until and unless subsequent instructions shall be filed and
become effective. If the Committee receives a Deemed Crediting Option election,
which is unclear, incomplete or improper, the Deemed Crediting Option election
then in effect shall remain in effect until the subsequent instruction is
clarified, completed or otherwise made acceptable to the Committee.

 

SECTION V -
DISTRIBUTION OF ACCOUNTS

 

(a) The Balance of a Participant’s
Account shall be paid to him (or to his beneficiaries in the event of his
death) according to the method of payment elected in his applicable Deferral
Election Form. Distributions from the Plan shall be made in cash; provided,
however, that to the extent that all or a portion of a Participant’s Account is
deemed to be invested in common stock of Cardinal Financial Corporation
(“Common Stock”), such amounts shall be paid in shares of Common Stock in an
amount equal to the number of whole shares of Common Stock credited to the
Participant’s Account as of the date of distribution.  Any fractional share shall be paid in
cash.  

 

(b) If a Participant’s service on
the Board shall terminate by reason of his death, or if he shall die after
becoming entitled to distribution hereunder, but prior to receipt of his entire
distribution, Participant’s entire Account balance shall be distributed to such
beneficiary or beneficiaries as such Participant shall have designated by an
instrument in writing last filed with the Committee prior to his death, or in
the absence of such designation or of any living beneficiary, to his spouse, or
if not to the personal representative of his estate.

 

SECTION VI
- ADMINISTRATION OF THE PLAN

 

(a) The Committee shall appoint one
or more employees of the Company to act as the Plan Administrator. The Plan
Administrator shall be responsible for the general

 

3

 

 

operation and administration of the Plan, and shall have such powers as
are necessary to discharge its duties under the Plan, including, without
limitation, the following:

 

(i) With the advice of the general
counsel of the Company, to construe and interpret the Plan, to decide all
questions of eligibility, to determine the amount, manner and time of payment
of any benefits hereunder, to prescribe rules and procedures to be followed by
Participants and their beneficiaries under the Plan, and to otherwise carry out
the purposes of the Plan; and

 

(ii) To appoint or employ
individuals to assist in the administration of the Plan and any other agents
deemed advisable. The decisions of the Plan Administrator shall be binding and
conclusive upon all Participants, beneficiaries and other persons.

 

(b) Any Participant claiming a
benefit, requesting an interpretation or ruling, or requesting information,
under the Plan, shall present the request in writing to the Plan Administrator,
which shall respond in writing as soon as practicable. If the claim or request
is denied, the written notice of denial shall state the following:

 

(i) The reasons for denial, with
specific reference to the Plan provisions upon which the denial is based;

 

(ii) A description of any
additional material or information required and an explanation of why it is
necessary; and

 

(iii) An explanation of the Plan’s
review procedure. The initial notice of denial shall normally be given within
90 days after receipt of the claim. If special circumstances require an
extension of time, the claimant shall be so notified and the time limit shall
be 180 days. Any person whose claim or request is denied, or who has not
received a response within 30 days, may request review by notice in writing to
the Plan Administrator. The original decision shall be reviewed by the Plan
Administrator, which may, but shall not be required to, grant the claimant a
hearing. On review, whether or not there is a hearing, the claimant may have
representation, examine pertinent documents and submit issues and comments in
writing. The decision on review shall ordinarily be made within 60 days. If an
extension of time is required for a hearing or other special circumstances, the
claimant shall be so notified and the time limit shall be extended to 120 days.
The decision on review shall be in writing and shall state the reasons and the
relevant Plan provisions. All decisions on review shall be final and bind all
parties concerned. 

 

SECTION VII - AMENDMENT OR TERMINATION

 

(a) The Company intends the Plan to
be permanent but reserves the right to amend or terminate the Plan when, in the
sole opinion of the Company, such amendment or termination is advisable. Any
such amendment or termination shall be made pursuant

 

4

 

 

to a resolution of the Board and shall be effective as of the date of
such resolution or such later date as the resolution may expressly state.

 

(b) No amendment or termination of
the Plan shall (i) directly or indirectly deprive any current or former
Participant or his beneficiaries of all or any portion of his Account as
determined as of the effective date of such amendment or termination, or (ii)
directly or indirectly reduce the balance of any Account held hereunder as of
the effective date of such amendment or termination. Upon termination of the
Plan, distribution of balances in all Accounts shall be made to Participants or
their beneficiaries in the manner and at the time described in Section V as if
each Participant’s service on the Board had then terminated. No additional
deferred Retainers or Meeting Fees shall be credited to the Accounts of
Participants after termination of the Plan, but the Company shall continue to
credit earnings, gains and losses to Accounts pursuant to Section IV until the
balances of such Accounts have been fully distributed to Participants or their
beneficiaries.

 

SECTION VIII - GENERAL PROVISIONS

 

(a) The Plan at all times shall be
entirely unfunded and no provision shall at any time be made with respect to
segregating any assets of the Company for payment of any benefits hereunder.
The right of a Participant or his beneficiary to receive a benefit hereunder
shall be an unsecured claim against the general assets of the Company, and
neither the Participant nor a beneficiary shall have any rights in or against
any specific assets of the Company. All amounts credited to Accounts shall
constitute general assets of the Company.

 

(b) Nothing contained in the Plan
shall constitute a guaranty by the Company, the Committee, the Plan
Administrator, or any other person or entity, that the assets of the Company
will be sufficient to pay any benefit hereunder. No Participant or beneficiary
shall have any right to receive a distribution under the Plan except in
accordance with the terms of the Plan.

 

(c) Establishment of the Plan shall
not be construed to give any Participant the right to be retained as a member
of the Board.

 

(d) No interest of any person or
entity in, or right to receive a distribution under, the Plan, shall be subject
in any manner to sale, transfer, assignment, pledge, attachment, garnishment,
or other alienation or encumbrance of any kind; nor may such interest or right
to receive a distribution be taken, either voluntarily or involuntarily, for
the satisfaction of the debts of, or other obligations or claims against, such
person or entity, including claims for alimony, support, separate maintenance
and claims in bankruptcy proceedings.

 

(e) The Plan shall be construed and
administered under the laws of the Commonwealth of Virginia, except to the
extent preempted by federal law.

 

5

 

 

(f) If any person entitled to a
payment under the Plan is deemed by the Company to be incapable of personally
receiving and giving a valid receipt for such payment, then, unless and until
claim therefore shall have been made by a duly appointed guardian or other
legal representative of such person, the Company may provide for such payment
or any part thereof to be made to any other person or institution that is
contributing toward or providing for the care and maintenance of such person.
Any such payment shall be a payment for the account of such person and a complete
discharge of any liability of the Company, the Committee, the Plan
Administrator and the Plan therefore.

 

(g) The Plan shall be continued,
following a transfer or sale of assets of the Company, or following the merger
or consolidation of the Company into or with any other corporation or entity,
by the transferee, purchaser or successor entity, unless the Plan has been
terminated by the Company pursuant to the provisions of Section VII prior to
the effective date of such transaction.

 

(h) Each Participant or beneficiary
shall keep the Plan Administrator informed of his current address. The Plan
Administrator shall not be obligated to search for the whereabouts of any
person. If the location of a Participant is not made known to the Plan
Administrator within three years after the date on which payment of the
Participant’s benefits under the Plan may first be made, payment may be made as
though the Participant had died at the end of the three year period. If, within
one additional year after such three year period has elapsed, or, within three
years after the actual death of a Participant, the Plan Administrator is unable
to locate any beneficiary of the Participant, then the Company shall have no
further obligation to pay any benefit hereunder to such Participant, or
beneficiary or any other person and such benefit shall be forfeited. If such
Participant, or his beneficiary or any other person, subsequently makes a valid
claim for distribution of the amount forfeited, such amount, without gains or
earnings thereon, shall be distributed to such Participant or his beneficiary
or such other person pursuant to Section V.

 

(i) Notwithstanding any of the
preceding provisions of the Plan, none of the Company, any member of the
Committee, any Plan Administrator or any individual acting as an employee or
agent of the Company, the Committee or the Plan Administrator, shall be liable
to any Participant, former Participant, or any beneficiary or other person for
any claim, loss, liability or expense incurred by such Participant, or
beneficiary or other person in connection with the Plan.

 

(j) Any notice under the Plan shall
be in writing, or by electronic means, and shall be received when actually
delivered, or mailed postage paid as first class U.S. Mail. Notices shall be directed
to the Company at its principal business office at:

 

Cardinal Financial Corporation 

8270 Greensboro Drive 

Suite 500 

McLean, Virginia 22102

 

6

 

 

 

or to a Non-Employee Director at the latest address on record with the
Company, or to a beneficiary entitled to benefits at the address stated in the
Participant’s beneficiary designation, or to such other addresses any party may
specify by notice to the other parties.

 

IN WITNESS WHEREOF, the Plan
has been executed on behalf of the Company on this                  day
of                             ,
2004.

 

Cardinal Financial Corporation

 

 

	
  By:

  	
   

  	
   

  

 

7

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