Document:

Exhibit 10.1

 

 

UNSECURED PROMISSORY NOTE

 

	$1,600,000	Effective March 31, 2016

 

This Unsecured Promissory Note (this “Note”)
is effective as of March 31, 2016, by and between Vaccinogen, Inc., a Maryland corporation (“Vaccinogen”)
and Dolphin Offshore Partners, LP, a limited partnership formed under the laws of Delaware (the “Lender”).

 

RECITALS

 

WHEREAS, Vaccinogen and the Lender
entered into that certain unsecured promissory note dated as of August 12, 2015, as amended by that First Amendment to Promissory
Note, effective as of November 10, 2015 (as amended, the “First Note”), pursuant to which the Lender agreed
to lend, and Vaccinogen agreed to borrow, a principal amount of $800,000;

 

WHEREAS, Vaccinogen and the Lender
entered into that certain unsecured promissory note dated as of November 25, 2015 (the “Second Note”), pursuant
to which the Lender agreed to lend, and Vaccinogen agreed to borrow, a principal amount of $200,000;

 

WHEREAS, Vaccinogen and the Lender
entered into that certain unsecured promissory note dated as of February 24, 2016 (the “Third Note”, and together
with the First Note and the Second Note, the “Promissory Notes”), pursuant to which the Lender agreed to lend,
and Vaccinogen agreed to borrow, a principal amount of $200,000;

 

WHEREAS, Vaccinogen desires to borrow,
and the Lender desires to lend to Vacciongen, an additional principal amount of $400,000 minus the accrued interest under
the Promissory Notes in the amount of $54,550 (the “Interest Due”); and

 

WHEREAS, in exchange for a cash payment
to Vaccinogen of $345,450, payment of the Interest Due, the cancellation and delivery of the Promissory Notes and subject to the
other terms and conditions set forth herein, Vaccinogen desires to issue this Note to the Lender in the Principal Amount provided
herein;

 

NOW THERFORE, in consideration of
the mutual covenants, agreements, representations and warranties set forth herein, the parties hereby agree as follows:

 

Agreement

FOR VALUE RECEIVED,
the undersigned, (“Vaccinogen”), hereby promises to pay to the order of Dolphin Offshore Partners, LP
 (the “Lender”), the principal sum of One Million, Six Hundred Thousand Dollars ($1,600,000) (the “Principal
Amount”) in lawful money of the United States of America, and together with interest thereon at the rate hereinafter
specified and any and all other sums which may be due and owing hereunder to the Lender, which shall be paid at the address of
the Lender below, in accordance with the terms contained herein.

 

    	 		 

     

    

  

1.                 
Interest. Vaccinogen shall pay interest from the date of this Unsecured Promissory Note (this “Note”)
on the Principal Amount outstanding from time to time at a rate per annum equal to nine percent (9%). The interest shall be due
and payable on the Maturity Date (hereinafter defined).

 

2.                 
Calculation of Interest. Interest on the Principal Amount of this Note shall be calculated on the basis of a 360
day per year factor applied to the actual days on which there exists an unpaid principal balance due under this Note.

 

3.                 
Maturity. The entire Principal Amount and all accrued interest shall become fully due and payable on June 30, 2016
(the “Maturity Date”); provided that, at any time before the Maturity Date, the Lender may elect to convert
part or all of the outstanding principal and any interest due and payable under the Promissory Note at such time into shares of
Vaccinogen’s common stock, par value $0.0001 per share (the “Common Stock”), at a rate of $2.00 per share
by providing written notice to Vaccinogen of such election (the “Conversion Right”). Upon receipt of such written
notice, Vaccinogen shall issue the corresponding whole number of shares to the Lender within a commercially reasonable period of
time. For the avoidance of doubt, an issuance of the Common Stock pursuant to this paragraph shall not constitute a default under
this Note.

 

4.                 
Prepayment. Vaccinogen may prepay this Note, together with all then accrued interest, in whole or in part at any
time, or from time to time, without penalty or additional interest; provided that Vaccinogen must provide five days’
notice (the “Five Day Notice”) of such prepayment to the Lender and Lender shall have the right (but not the
obligation) to exercise the Lender’s Conversion Right prior to the expiration of such five day period. If Lender does not
exercise such Conversion Right prior to the expiration of such five day period, Vaccinogen shall prepay this Note in the manner
and to the extent provided in such Five Day Notice within three business days following the expiration of the period provided for
in the Five Day Notice. Any amounts prepaid hereunder shall be applied as provided in Section 5 below.

 

5.                 
Payments. Except as otherwise stated in Paragraph 3 hereof, all payments made hereunder shall be in lawful money
of the United States of America. All payments and prepayments shall be applied first to costs of collection, next, to accrued interest,
and thereafter to principal.

 

6.                 
Default and Remedies. The following shall be a default under this Note and shall entitle the Lender to all of the
rights and remedies specified herein or otherwise available under applicable law or in equity: (i) any failure to make any payment
due under this Note when due or upon the failure to comply with any other terms and provisions of this Note, if such failures remain
uncured for a period of ten (10) business days; (ii) a petition for relief in a bankruptcy court is filed by Vaccinogen or Vaccinogen
applies for, consents to or acquiesces in the appointment of a trustee, custodian or receiver for Vaccinogen or any of its assets
or property or make a general assignment for the benefit of its creditors or, in the absence of such application, consent or acquiescence,
a trustee, custodian or receiver is appointed for Vaccinogen or for a substantial part of its assets or property and is not discharged
within thirty (30) days thereafter; (iii) any bankruptcy, reorganization, debt arrangement or other proceeding or case under any
bankruptcy or insolvency law or any dissolution or liquidation proceeding is instituted against Vaccinogen and if instituted against
Vaccinogen is consented to or acquiesced in by Vaccinogen or remains undismissed for sixty (60) days thereafter; or (iv) Vaccinogen
takes any action to authorize any of the actions described in subsection (ii) or (iii). Vaccinogen hereby waives presentment, demand
for payment, notice of dishonor, notice of protest, and protest, and all other notices or demands in connection with the delivery,
acceptance and performance of this Note.

 

    	 	2	 

     

    

 

7.                 
Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed by and
construed in accordance with the laws of the State of Maryland.

 

8.                 
No Waiver. The delay or failure of the Lender to exercise its rights hereunder shall not be deemed a waiver thereof.
No waiver of any rights of the Lender shall be effective unless in writing and signed by the Lender and any waiver of any right
shall not apply to any other right or to such right in any subsequent event or circumstance not specifically included in such waiver.

 

9.                 
Successors and Assigns. This Note shall not be assignable by the Lender without the prior written consent of Vaccinogen.
This Note shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
For the avoidance of doubt, the right to receive the Common Stock described in Paragraph 3 above shall not be assignable by the
Lender without the prior written consent of Vaccinogen.

 

10.     
No Senior Debt. Vaccinogen does not currently have any indebtedness for borrowed money or any obligations evidenced
by notes or debentures or similar instruments (collectively, “Debt”), except indebtedness
owed to Organon Teknika Corporation (now Merck) in the amount of $3,000,000 (plus accrued interest calculated from October
31, 2007 based on a simple annual interest rate based on the prime lending rate in effect on the anniversary of October 31, 2007)
pursuant to that certain Letter Agreement, dated October 31, 2007, among Intracel Holdings Corporation, Intracel Acquisition Holdings
Company LLC, Organon Biosciences International B.V., and Organon Teknika Corp (the “Merck Debt”). The Merck
Debt is due one (1) year after the first marketing approval of OncoVax by the United States Food and Drug Administration or the
European Medicines Agency, whichever is first, in annual payments of $1,000,000 (plus accrued interest) until collection of the
entire outstanding amount (subject to certain acceleration provisions). From the date hereof and until the date that this Note
is paid in full, Vaccinogen shall not incur, create or assume any additional Debt, except: (a) Debt existing or arising under this
Note and any refinancing thereof; and (b) Debt that is subordinate to the prior payment in
full of the obligations evidenced by this Note.

 

11.             
Separate Counsel. Each of the parties hereto acknowledges that (i) he/she/it has read this Note in its entirety and
understands all of its terms and conditions, (ii) he/she/it has had the opportunity to consult with any individuals of their choice
regarding their agreement to the provisions contained herein, including legal counsel of their choice, and any decision not to
was theirs alone, and (iii) he/she/it is entering into this Note of their own free will, without coercion from any source. Each
of Lender and Vaccinogen acknowledges and agrees that Venable LLP is representing Vaccinogen in connection with this Note, and
does not represent Lender.

 

    	 	3	 

     

    

  

12.             
Subscription Agreement. The Lender acknowledges and agrees that Vaccinogen’s obligation to issue the Common
Stock pursuant to Paragraph 3 above is conditioned upon Vaccinogen and the Lender entering into a mutually agreed subscription
agreement prior to such issuance, which agreement will be substantially in the form set forth in Annex A hereto.

 

13.             
Notices. Any notices or other communication required hereunder shall be deemed properly given if delivered in person
or if mailed by registered or certified mail, postage prepaid, return receipt requested to the parties at the following addresses:

 

 

if to Vaccinogen,
to:

 

Vaccinogen, Inc.

949 Fell Street

2nd Floor

Baltimore, MD 21231

Attn: President

 

with a copy to:

 

Venable LLP

750 E. Pratt Street

Baltimore, Maryland 21202

Attn: Eric R. Smith, Esq.

 

if to the Lender:

 

Dolphin Offshore Partners, LP

PO Box 16867

Fernandina Beach, FL  32035

Attn: Peter Salas

 

 

 

 

[Signatures
on following page]

 

    	 	4	 

     

    

  

IN WITNESS WHEREOF, Vaccinogen has
caused this Note to be executed on its behalf by its duly authorized officer as of April 5, 2016.

 

	VACCINOGEN, INC.
	 	 	 
	 	 	 
	By:	 	 
	Name:	Andrew L. Tussing	 
	Title:	Chairman and Chief Executive Officer	 
	 	 	 
	 	 	 
	 	 	 
	AGREED TO AND ACKNOWLEDGED
	 	 	 
	DOLPHIN OFFSHORE PARTNERS, LP
	 	 	 
	 	 	 
	By:	 	 
	Name:	Peter Salas	 
	Title:	General Partner	 

 

    	 	5	 

     

    

ANNEX A

 

Subscription Agreement

 

THE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. THERE ARE FURTHER
RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN.

 

THE PURCHASE OF THE
SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE
INVESTMENT.

 

Ladies and Gentlemen:

 

The undersigned understands
that VACCINOGEN, INC., a corporation organized under the laws of Maryland (the “Company”), is offering shares
of its common stock, par value $0.0001 per share in a private placement. The undersigned further understands that the offering
is being made without registration of the Securities under the Securities Act of 1933, as amended (the “Securities Act”),
or any securities law of any state of the United States or of any other jurisdiction, and is being made only to “Accredited
Investors” (as defined in Rule 501 of Regulation D under the Securities Act).

 

1.                 
Subscription. Subject to the terms and conditions of this Subscription Agreement (this “Subscription Agreement”),
on the date of the Closing referred to in Section 3 hereof, the undersigned shall purchase from the Company and the Company
shall sell to the undersigned [ ] shares of common stock, par value $0.0001 per share (the “Securities”), for the aggregate
purchase price of [$ ], at [$ ] per share.

 

2.                 
Acceptance of Subscription and Issuance of Securities. Notwithstanding anything in this Subscription Agreement to
the contrary, the Company shall have no obligation to issue any of the Securities to any person who is a resident of a jurisdiction
in which the issuance of the Securities to such person would constitute a violation of the securities, “blue sky” or
other similar laws of such jurisdiction (collectively referred to as the “State Securities Laws”).

 

3.                 
The Closing. The closing of the purchase and sale of the Securities (the “Closing”) shall take
place at the offices of the Company on the date the Company countersigns this Subscription Agreement, or at such other time and
place as the Company may designate.

 

4.                 
Payment for Securities. Consideration for the issuance of the Securities having already been received by the Company,
the Company shall deliver certificates or other appropriate evidence of the Securities to the undersigned at the Closing bearing
an appropriate legend referring to the fact that the Securities were sold in reliance upon an exemption from registration under
the Securities Act.

 

    	 	6	 

     

    

  

5.                 
Representations and Warranties of the Company. As of the Closing, the Company represents and warrants that the Company
is duly formed and validly existing under the laws of Maryland, with full power and authority to conduct its business as it is
currently being conducted and to own its assets; and has secured any other authorizations, approvals, permits and orders required
by law for the conduct by the Company of its business as it is currently being conducted.

 

6.                 
Representations and Warranties of the Undersigned. The undersigned hereby represents and warrants to and covenants
with the Company that:

 

(a)          General.

 

(i)          The
undersigned has all requisite authority to receive the Securities, enter into this Subscription Agreement and to perform all the
obligations required to be performed by the undersigned hereunder, and such purchase will not contravene any law, rule or regulation
binding on the undersigned or any investment guideline or restriction applicable to the undersigned.

 

(ii)         The
undersigned is a resident of the state set forth on the signature page hereto and is not acquiring the Securities as a nominee
or agent or otherwise for any other person.

 

(iii)        The
undersigned will comply with all applicable laws and regulations in effect in any jurisdiction in which the undersigned purchases
or sells the Securities and obtain any consent, approval or permission required for such purchases or sales under the laws and
regulations of any jurisdiction to which the undersigned is subject or in which the undersigned makes such purchases or sales,
and the Company shall have no responsibility therefor.

 

(b)          Information Concerning the Company.

 

(i)          The undersigned has been given the opportunity to ask questions and receive answers concerning the terms and conditions
of the issuance of the Securities. The undersigned has been given the opportunity to obtain material and relevant information from
the Company enabling it to make an informed investment decision. All data that the undersigned has requested has been furnished
to it. The undersigned is aware of and has access to the Company’s public filings with the Securities and Exchange Commission
(the “Public Filings”).

 

(ii)         The
undersigned understands and accepts that the purchase of the Securities involves various risks, including the risks outlined in
this Subscription Agreement and the Public Filings. The undersigned represents that it is able to bear any loss associated with
an investment in the Securities.

 

    	 	7	 

     

    

 

(iii)         The
undersigned confirms that it is not relying on any communication (written or oral) of the Company or any of its affiliates, as
investment advice or as a recommendation to purchase the Securities. It is understood that information and explanations related
to the terms and conditions of the Securities provided by the Company or any of its affiliates shall not be considered investment
advice or a recommendation to purchase the Securities, and that neither the Company nor any of its affiliates is acting or has
acted as an advisor to the undersigned in deciding to invest in the Securities. The undersigned acknowledges that neither the
Company nor any of its affiliates has made any representation regarding the proper characterization of the Securities for purposes
of determining the undersigned’s authority to invest in the Securities.

 

(iv)        The
undersigned is familiar with the business and financial condition and operations of the Company. The undersigned has had access
to such information concerning the Company and the Securities as it deems necessary to enable it to make an informed investment
decision concerning the purchase of the Securities.

 

(v)         The
undersigned understands that, unless the undersigned notifies the Company in writing to the contrary at or before the Closing,
each of the undersigned’s representations and warranties contained in this Subscription Agreement will be deemed to have
been reaffirmed and confirmed as of the Closing, taking into account all information received by the undersigned.

 

(vi)        The
undersigned understands that no federal or state agency has passed upon the merits or risks of an investment in the Securities
or made any finding or determination concerning the fairness or advisability of this investment.

 

(c)           Non-reliance.

 

(i)          The
undersigned represents that it is not relying on (and will not at any time rely on) any communication (written or oral) of the
Company, as investment advice or as a recommendation to purchase the Securities, it being understood that information and explanations
related to the terms and conditions of the Securities shall not be considered investment advice or a recommendation to purchase
the Securities.

 

(ii)          The
undersigned confirms that the Company has not (A) given any guarantee or representation as to the potential success, return, effect
or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Securities or (B) made
any representation to the undersigned regarding the legality of an investment in the Securities under applicable legal investment
or similar laws or regulations. In deciding to purchase the Securities, the undersigned is not relying on the advice or recommendations
of the Company and the undersigned has made its own independent decision that the investment in the Securities is suitable and
appropriate for the undersigned.

 

    	 	8	 

     

    

 

(d)          Status
of Undersigned.

 

(i)           The
undersigned has such knowledge, skill and experience in business, financial and investment matters that the undersigned is capable
of evaluating the merits and risks of an investment in the Securities. With the assistance of the undersigned’s own professional
advisors, to the extent that the undersigned has deemed appropriate, the undersigned has made its own legal, tax, accounting and
financial evaluation of the merits and risks of an investment in the Securities and the consequences of this Subscription Agreement.
The undersigned has considered the suitability of the Securities as an investment in light of its own circumstances and financial
condition and the undersigned is able to bear the risks associated with an investment in the Securities and its authority to invest
in the Securities.

 

(ii)         The
undersigned is an “accredited investor” as defined in Rule 501(a) under the Securities Act. The undersigned agrees
to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S.
federal and state securities laws in connection with the purchase and sale of the Securities. The undersigned acknowledges that
the undersigned has completed the Investor Questionnaire contained in Appendix A (the “Questionnaire”)
and that the information and representations contained therein is complete and accurate as of the date thereof and is hereby affirmed
as of the date hereof and as of the Closing. Any information that has been furnished or that will be furnished by the undersigned
to evidence its status as an accredited investor is accurate and complete, and does not contain any misrepresentation or material
omission.

 

(e)          Restrictions on Transfer or Sale of Securities.

 

(i)           The
undersigned is acquiring the Securities solely for the undersigned’s own beneficial account, for investment purposes, and
not with a view to, or for resale in connection with, any distribution of the Securities. The undersigned understands that the
Securities have not been registered under the Securities Act or any State Securities Laws by reason of specific exemptions under
the provisions thereof which depend in part upon the investment intent of the undersigned and of the other representations made
by the undersigned in this Subscription Agreement and the Questionnaire. The undersigned understands that the Company is relying
upon the representations and agreements contained in this Subscription Agreement and the Questionnaire (and any supplemental information)
for the purpose of determining whether this transaction meets the requirements for such exemptions.

 

(ii)          The undersigned understands that the Securities are “restricted securities” under applicable federal securities
laws and that the Securities Act and the rules of the U.S. Securities and Exchange Commission (the “Commission”)
provide in substance that the undersigned may dispose of the Securities only pursuant to an effective registration statement under
the Securities Act or an exemption therefrom, and the undersigned understands that the Company has no obligation or intention to
register any of the Securities, or to take action so as to permit sales pursuant to the Securities Act (including Rule 144 thereunder).
Consequently, the undersigned understands that the undersigned must bear the economic risks of the investment in the Securities
for an indefinite period of time.

 

    	 	9	 

     

    

 

(iii)        The
undersigned agrees: (A) that the undersigned will not sell, assign, pledge, give, transfer or otherwise dispose of the Securities
or any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration of the Securities
under the Securities Act and all applicable State Securities Laws, or in a transaction which is exempt from the registration provisions
of the Securities Act and all applicable State Securities Laws; (B) that the certificates or book entries representing the Securities
will bear a legend making reference to the foregoing restrictions; and (C) that the Company and its affiliates shall not be required
to give effect to any purported transfer of such Securities except upon compliance with the foregoing restrictions.

 

(iv)        The undersigned acknowledges that neither the Company nor any other person offered to sell the Securities to it by means
of any form of general solicitation or advertising, including but not limited to: (A) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over television or radio or (B) any seminar or
meeting whose attendees were invited by any general solicitation or general advertising.

 

7.                 
Conditions to Obligations of the Undersigned and the Company. The obligations of the undersigned to purchase and
pay for the Securities specified in Section 1 and of the Company to sell the Securities are subject to the satisfaction
at or prior to the Closing of the following conditions precedent: the representations and warranties of the Company contained in
Section 5 hereof and of the undersigned contained in Section 6 hereof shall be true and correct as of the Closing
in all respects with the same effect as though such representations and warranties had been made as of the Closing.

 

8.                 
Obligations Irrevocable. The obligations of the undersigned shall be irrevocable.

 

9.                 
Legend. Any certificates representing the Securities sold pursuant to this Subscription Agreement will be imprinted
with a legend in substantially the following form:

“THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE
LAWS.”

 

    	 	10	 

     

    

  

10.             
Waiver, Amendment. Neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged
or terminated except by an instrument in writing, signed by the party against whom any waiver, change, discharge or termination
is sought.

 

11.             
Assignability. Neither this Subscription Agreement nor any right, remedy, obligation or liability arising hereunder
or by reason hereof shall be assignable by either the Company or the undersigned without the prior written consent of the other
party.

 

12.             
Waiver of Jury Trial. THE UNDERSIGNED IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL
PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT. Each
party to this Subscription Agreement certifies and acknowledges that (a) no representatives of any other party has represented,
expressly or otherwise, that such other party would not seek to enforce the foregoing waiver in the event of a legal action; (b)
such party has considered the implications of this waiver; (c) such party makes this waiver voluntarily; and (d) such party has
been induced to enter into this Subscription Agreement by, among other things, the mutual waivers and certifications in this section.

 

13.             
Submission to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases or sales
of the Securities by the undersigned (“Proceedings”), the undersigned irrevocably submits to the jurisdiction
of the federal or state courts located in the State of Maryland, which submission shall be exclusive unless none of such courts
has lawful jurisdiction over such Proceedings.

 

14.             
Governing Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the
State of Maryland.

 

15.             
Section and Other Headings. The section and other headings contained in this Subscription Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Subscription Agreement.

 

16.             
Counterparts. This Subscription Agreement may be executed in any number of counterparts, each of which when so executed
and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

 

17.             
Notices. All notices and other communications provided for herein shall be in writing and shall be deemed to have
been duly given if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the
following addresses (or such other address as either party shall have specified by notice in writing to the other):

 

    	 	11	 

     

    

  

	If to the Company:	
        Vaccinogen, Inc.

        949 Fell Street

        Baltimore, MD 21231

        Attention: Chief Executive
        Officer

	with a copy to:	
        Venable LLP

        750 E. Pratt Street,
        Suite 900

        Baltimore, MD 21202

        Attention:Eric
        R. Smith, Esq.

	If to the Purchaser:	
        Dolphin Offshore Partners,
        L.P.

        PO Box 16867

        Fernandina Beach, FL
        32035

 

18.             
Binding Effect. The provisions of this Subscription Agreement shall be binding upon and accrue to the benefit of
the parties hereto and their respective heirs, legal representatives, successors and assigns.

 

19.             
Survival. All representations, warranties and covenants contained in this Subscription Agreement shall survive (i)
the acceptance of the subscription by the Company and the Closing, and (ii) the death, disability, or dissolution of the undersigned.

 

20.             
Notification of Changes. The undersigned hereby covenants and agrees to notify the Company upon the occurrence of
any event prior to the closing of the purchase of the Securities pursuant to this Subscription Agreement, which would cause any
representation, warranty, or covenant of the undersigned contained in this Subscription Agreement to be false or incorrect.

 

21.             
Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or
render unenforceable such term or provision in any other jurisdiction.

 

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

    	 	12	 

     

    

 

IN WITNESS
WHEREOF, the undersigned has executed this Subscription Agreement this ____ of ______________________, 2016

 

	 	PURCHASER (if an individual):
	 	 
	 	By:	 
	 	Name:	 

 

The offer
to purchase Securities as set forth above is confirmed and accepted by the Company as to [ ] shares of common stock.

 

	 	Vaccinogen, Inc.
	 	 	 
	 	By:	 
	 	Name:	Andrew L. Tussing
	 	Title:	Chief Executive Officer

 

    	 	13	 

     

    

 

APPENDIX A

 

INVESTOR QUESTIONNAIRE

 

This Questionnaire
is being distributed to the undersigned investor (the “Investor”) by Vaccinogen, Inc., a Maryland corporation (the
“Issuer”) in connection with the Subscription Agreement of the Investor to which this Questionnaire is a part (the
“Subscription Agreement”), to enable the Issuer to determine whether the Investor is qualified to invest in the Securities
(as defined in the Subscription Agreement). To be qualified to invest in the Securities, the Investor must be an “Accredited
Investor” (as that term is defined in Rule 501(a) of Regulation D promulgated under Section 4(a)(2) of the Securities Act
of 1933, as amended (the “Securities Act”)).

The Issuer will rely
upon the accuracy and completeness of the information provided in this Questionnaire in establishing that the issuance of the Securities
is exempt from the registration requirements of the Securities Act.

 

ACCORDINGLY, THE
INVESTOR IS OBLIGATED TO READ THIS QUESTIONNAIRE CAREFULLY AND TO ANSWER THE ITEMS CONTAINED HEREIN COMPLETELY AND ACCURATELY.

 

ALL INFORMATION CONTAINED
IN THIS QUESTIONNAIRE WILL BE TREATED CONFIDENTIALLY. However, the Investor understands and agrees that the Issuer may present,
upon giving prior notice to the Investor, this Questionnaire to such parties as the Issuer deems appropriate if called upon to
establish that the issuance of the Securities (i) is exempt from the registration requirements of the Securities Act or (ii) meets
the requirements of applicable state securities laws; provided, however, that the Issuer need not give prior notice to the
Investor of its presentation of this Questionnaire to the Issuer’s regularly employed legal, accounting and financial advisors.

 

The Investor understands
that this Questionnaire is merely a request for information and is not an offer to sell, a solicitation of an offer to buy, or
a sale of the Securities. The Investor also understands that the Investor may be required to furnish additional information.

 

PLEASE NOTE THE FOLLOWING
INSTRUCTIONS BEFORE COMPLETING THIS INVESTOR QUESTIONNAIRE.

 

Unless instructed otherwise,
the Investor should answer each question on the Questionnaire. If the answer to a particular question is “None” or
“Not Applicable,” please so state. If the Questionnaire does not provide sufficient space to answer a question, please
attach a separate schedule to your executed Questionnaire that indicates which question is being answered thereon. Persons having
questions concerning any of the information requested in this Questionnaire should consult with their purchaser representative
or representatives, lawyer, accountant or broker or may call Amanda C. E. Knab, Esq., Venable LLP, at 410.244.6514.

 

    	 	14	 

     

    

 

1. General Information

 

Name of Entity: Dolphin
Offshore Partners, L.P.

 

Address of Principal
Office: 4828 First Coast Hwy., Suite 5

 

Fernandina Beach, FL
32034

 

Type of Organization:
Limited Partnership

 

Date and State of Organization:
July 21, 1989 Delaware

 

 2. Accredited
Investor Status

 

To be qualified to
invest in the Securities, the Investor must be an Accredited Investor.

 

Please check the appropriate
description which applies to you.

 

(a) ____________ A
bank, as defined in Section 3(a)(2) of the Securities Act or any savings and loan association or other institution as defined in
Section 3(a)(5)(A) of the Securities Act, whether acting in an individual or a fiduciary capacity.

 

(b) ____________ A
broker or dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended.

 

(c) ____________ An
insurance company, as defined in Section 2(13) of the Securities Act.

 

(d) ____________ An
investment company registered under the Investment Company Act of 1940 or a business development company, as defined in Section
2(a)(48) of that act.

 

(e) ____________ A
Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958.

 

    	 	15	 

     

    

  

(f) ____________ A
plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political
subdivisions for the benefit of its employees, if the plan has total assets in excess of $5 million.

 

(g) ____________ An
employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, if the investment decision
is being made by a plan fiduciary, as defined in Section 3(21) of such act, and the plan fiduciary is either a bank, a savings
and loan association, an insurance company, or a registered investment adviser, or if the employee benefit plan has total assets
in excess of $5 million or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors.

 

(h) ____________ A
private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

 

(i) ____________ A
corporation, Massachusetts or similar business trust, or partnership, or an organization described in Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended, that was not formed for the specific purpose of acquiring the Securities, and that has
total assets in excess of $5 million.

 

(j) _____________ A
trust with total assets in excess of $5 million not formed for the specific purpose of acquiring the Securities, whose purchase
is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the Securities Act.

 

(k) _____________ An
entity in which all of the equity owners are accredited investors and meet the criteria listed in Part I, Item 2 of this Questionnaire.

 

3. Representations

 

The undersigned entity
represents that:

 

(a) The entity understands
that the Issuer will rely upon the completeness and accuracy of the entity’s responses to the questions in this Questionnaire
in establishing that the contemplated transactions are exempt from the Securities Act, and hereby affirms that all such responses
are accurate and complete. The entity will notify the Issuer immediately of any changes in any of such information occurring prior
to the acceptance of its subscription.

 

(b) The entity is not
a retirement plan, employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”) or Section 4975 of the IRS Code (or an entity whose assets are deemed to include assets of those plans under
the Department of Labor’s “plan asset regulation”), a corporate pension and profit-sharing plan, a “simplified
employee pension plan,” a “Keogh” plan, an Individual Retirement Account,  or retirement or employee benefit
plan not subject to ERISA.

 

    	 	16	 

     

    

 

 

	
        Individual

        
	 	 
	 	 
	 	 
	Name

	 
	 	 	 
	 	 	 
	 	 
	Signature

	 
	 	 
	 	 	 
	
        Date:

        
	 	 
	 	 	 
	 	 	 
	Partnership, Corporation or Other Entity
	 	 
	Dolphin Offshore Partners, L.P.
	 	 
	Print or Type Name
	 	 
	By:	 	 
	 	 	 
	Name:  	Peter E. Salas	 
	 	 	 
	Title: 	General Partner	 
	 	 	 
	Date:		 
	 	 

 

    	 	17Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

  THIS AGREEMENT is entered into as of the date
set forth below, by and between VILLAGE BANK, a Virginia chartered bank (the “Corporation”), and James E. Hendricks,
Jr. (the “Executive”) and is made effective April 5, 2016.

 

W I T N E S S E T H:

 

WHEREAS, the Corporation desires to retain the
services of the Executive on the terms and conditions set forth herein and, for purpose of effecting the same, the Board of Directors
of the Corporation has approved this Employment Agreement and authorized its execution and delivery on the Corporation’s
behalf to the Executive; and

 

WHEREAS, the Executive has significant experience
serving in senior bank management positions, and the Corporation desires to employ the Executive as a key executive officer of
the Corporation whose dedication, availability, advice and counsel to the Corporation is deemed important to the Board of Directors
of the Corporation, the Corporation and its stockholders;

 

WHEREAS, the services of the Executive, his experience
and knowledge of the affairs of the Corporation, and his reputation and contacts in the industry are valuable to the Corporation;
and

 

WHEREAS, the Corporation wishes to attract and
retain such well-qualified executives and it is in the best interests of the Corporation and of the Executive to secure the services
of the Executive; and

 

WHEREAS, the Corporation considers the establishment
and maintenance of a sound management to be part of its overall corporate strategy and to be essential to protecting and enhancing
the best interests of the Corporation and its stockholders;

 

WHEREAS, the Corporation desires to safeguard
its proprietary confidential information, retain its employees and protect itself against unfair competition;

 

NOW, THEREFORE, to assure the Corporation of
the Executive’s dedication, the availability of his advice and counsel to the Corporation, and to induce the Executive
to remain and continue in the employ of the Corporation and for other good and valuable consideration, the receipt and adequacy
whereof each party hereby acknowledges, the Corporation and the Executive hereby agree as follows:

 

		1.	EMPLOYMENT: The Corporation agrees to, and does hereby employ, the Executive, and the Executive agrees to, and
does hereby accept such employment, for the period beginning on or before April 5, 2016, and ending on March 31, 2019, which period
of employment may be extended or terminated only upon the terms and conditions hereinafter set forth.

 

      

     

    

 

		2.	TERM, EXTENSIONS OF TERM, AND CONTINUING OBLIGATIONS: This Agreement will be effective on the date set forth
above and will expire on March 31, 2019; provided that on March 31, 2019 and on each March 31st thereafter (each such
March 31st is referred to as the “Renewal Date”), this Agreement will be automatically extended for an additional
twelve (12) month period from such Renewal Date. This Agreement will not, however, be extended if either party gives written notice
of non-renewal (“Nonrenewal Notice”) at least ninety (90) days before the Renewal Date. The parties intend that the
covenants and restrictions in Sections 11 and 18 be enforceable against Executive regardless of the reason that his employment
by the Corporation may terminate and that such covenants and restrictions shall be enforceable against Executive even if this Agreement
expires after a Nonrenewal Notice is given by the Executive or the Corporation, except as set forth in Section 11(k) in connection
with a Change of Control. The existence of any claim or cause of action by the Executive against the Corporation, whether predicated
on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Corporation of the restrictive covenants
and confidentiality requirements set forth in sections 11 and 18 of this Agreement.

 

		3.	EXECUTIVE DUTIES: The Executive agrees that, during the term of his employment under this Agreement and in his
capacity of Executive Vice President, he will devote his full business time and energy to the business, affairs and interests of
the Corporation and serve it diligently, to the best of his ability and in accordance with general business standards. The Executive,
however, may devote reasonable time and energy to charitable and civic activities that enhance the reputation and good standing
of the Executive and the Corporation in the community. The Executive shall comply with all policies, standards and regulations
of the Corporation now or hereafter promulgated. The services and duties to be performed by the Executive shall be those appropriate
to his office and title as currently and from time to time hereafter specified in the Corporation’s Bylaws or otherwise specified
by the President of the Corporation.

 

		4.	COMPENSATION:

 

(a) Base Salary. The Corporation agrees to
pay the Executive, as compensation for all services rendered by him to the Corporation during the period of his employment under
this Agreement, base salary in an annual amount of no less than $180,000, which shall be payable in monthly, semi-monthly or bi-weekly
installments in conformity with Corporation’s policy relating to salaried employees. Such salary may be increased in the
sole and absolute discretion of the Corporation’s Board of Directors or Compensation Committee thereof duly authorized by
the Board to so act. The Board of Directors shall review the Executive’s base salary at least annually during his employment
and make such adjustments as determined in its discretion.

 

    2 

     

    

 

(b) Annual Bonus. The Corporation may make
annual cash bonus payments to the Executive in such amounts and at such time as may be determined by the Corporation’s Board
of Directors or Compensation Committee.

 

(c) Stock Awards and Incentive Compensation.
The Corporation may make stock awards and provide such other incentive compensation to the Executive in such amounts and at such
time as may be determined by the Corporation’s Board of Directors or Compensation Committee.

 

(d) Supplemental Executive Retirement Benefit.
The Executive will be a participant in the Supplemental Executive Retirement Plan. Under the plan, the Executive will be eligible
to receive a supplemental nonqualified annual cash benefit over a fifteen (15) year period beginning at his retirement or as otherwise
provided under the plan.

 

(e) Employee Benefits. During the term of employment
under this Agreement, the Executive will be entitled to participate in all employee benefit plans, practices and programs maintained
by the Corporation, as in effect from time to time (collectively, the “Employee Benefit Plans”), on a basis which is
no less favorable than is provided to other similarly situated officers of the Corporation, to the extent consistent with applicable
law and the terms of the applicable Employee Benefit Plans. The Corporation reserves the right to amend or cancel any Employee
Benefit Plan at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.

 

(f) Vacation; Paid Time-off. During the term
of employment under this Agreement, the Executive will be entitled to paid vacation on a basis which is no less favorable than
is provided to other similarly-situated officers of the Corporation, which in the Executive’s case will initially consisit
of four (4) weeks of paid vacation. The Executive will also receive other paid time-off in accordance with the Corporation’s
policies as they may exist from time to time.

 

		5.	REIMBURSEMENT OF BUSINESS EXPENSES: During the term of this Agreement, to the extent that such expenditures are
substantiated by the Executive as required by the Internal Revenue Service and policies of the Corporation, the Corporation shall
reimburse the Executive promptly for all expenditures (including business related travel, business entertainment and business meetings)
made in accordance with written rules and policies established from time to time by the Board of Directors of the Corporation in
pursuance and furtherance of the Corporation’s business and good will, provided any permitted expenditures are objectively
determinable and nondiscretionary under such rules and policies. Any reimbursements hereunder shall be made by the end of the calendar
year following the calendar year in which the related expense is incurred, or on such earlier date as provided in the Corporation’s
rules and policies regarding such reimbursements.

 

		6.	ILLNESS: In the event the Executive is unable to perform the essential functions of his job on a consistent basis,
with or without reasonable accommodations, for a period of four (4) consecutive months by reason of illness or other physical or
mental disability, the Corporation may terminate this Agreement without further or additional compensation being due the Executive
from the Corporation pursuant to this Agreement, except benefits accrued through the date of such termination under Employee Benefit
Plans of the Corporation. These benefits shall include long-term disability and other insurance or other benefits then regularly
provided by the Corporation to disabled employees of senior executive status, as well as any other insurance benefits so provided,
for which Executive qualifies. Notwithstanding any other provision in this Agreement, the Corporation will comply with the Americans
with Disabilities Act.

 

    3 

     

    

 

		7.	DEATH: In the event of the Executive’s death during the term of this Agreement, this Agreement shall terminate
as of the end of the month in which the Executive dies. This Section 7 shall not affect the rights of any person under other contracts
between the Executive and the Corporation or under any life insurance policy.

 

		8.	TERMINATION WITHOUT CAUSE/RESIGNATION FOR GOOD
REASON:

 

		(a)	Notwithstanding the provisions of Section 1 hereof, the Board of Directors of the Corporation may terminate the Executive’s
employment under this Agreement at any time by giving not less than thirty (30) days written notice to the Executive. The Executive
may resign for Good Reason (as hereafter defined) at any time by giving not less than thirty (30) days written notice to the Corporation.
It shall not constitute a breach of this Agreement for the Corporation to suspend Executive’s duties and to place the Executive
on a paid leave during the thirty (30) day notice period. If the Corporation terminates the Executive’s employment without
Cause (as hereafter defined) or the Executive resigns for Good Reason, then in either event the Executive shall receive the following,
provided that the Executive signs a release and waiver of claims reasonably satisfactory to the Corporation and such
release and waiver has become effective:

 

		(i)	The Executive shall be paid for twelve (12) months following the Executive’s termination, at such times as payment was
theretofore made, the Executive’s Final Compensation. For purposes of this Agreement, “Final Compensation” means
the annual base salary in effect on the date of termination (or the annual base salary in effect immediately prior to a reduction
in the Executive’s base salary in the event the Executive resigns for Good Reason based on Section 8(b)(iii) hereunder),
plus the highest annual bonus paid or payable for the two most recently completed years.

 

		(ii)	Payments under (i) above shall be made or commence upon the Executive’s termination of employment, subject to the satisfaction
of the release and waiver condition set forth above.

 

		(iii)	If the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985
(“COBRA”), the Corporation shall reimburse the Executive for the difference between the monthly COBRA premium amount
paid by the Executive for his and his eligible dependents’ group health insurance coverage and the monthly premium amount
paid by similarly situated active employees of the Corporation. Such reimbursement shall be paid to the Executive by the tenth
day of the month immediately following the month in which the Executive timely remits the COBRA premium payment. The Executive
shall be eligible to receive such reimbursement until the earliest of: (A) twelve (12) months following the Executive’s termination;
(B) the date the Executive is no longer eligible to receive COBRA continuation coverage; or (C) the date on which the Executive
becomes eligible to receive substantially similar coverage from another employer. Notwithstanding the foregoing, if the Corporation’s
payments under this Section 8(a)(iii) would violate the nondiscrimination rules applicable to non-grandfathered plans or would
result in the imposition of penalties under the Patient Protection and Affordable Care Act of 2010 and the related regulations
and guidance promulgated thereunder (the “PPACA”), the parties agree to reform this Section 8(a)(iii) in a manner as
is necessary to comply with the PPACA.

 

    4 

     

    

 

		(iv)	The Executive shall thereon have no further recourse, and the Corporation shall have no further obligation, under this Agreement,
provided that if the Executive breaches or fails to comply with any of the covenants and restrictions in Sections 11 and 18 then
the Corporation shall have no obligation to make any payments under this Section 8(a), such remedy being in addition to any other
remedies available to the Corporation under this Agreement or applicable law in connection with such breach or failure.

 

(b)  For purposes of this Agreement,
“Good Reason” shall mean:

 

		(i)	The assignment of duties to the Executive by the Corporation which (A) are materially different from the Executive’s
duties on the date hereof, or (B) result in the Executive having significantly less authority and/or responsibility than he has
on the date hereof, without his express written consent;

 

		(ii)	The removal of the Executive from, or any failure to re-elect him to, the position of Executive Vice President of the Corporation,
except in connection with a termination of his employment by the Corporation for Cause or by reason of the Executive’s death
or disability;

 

		(iii)	A reduction by the Corporation of the Executive’s base salary to less than $180,000;

 

		(iv)	A material reduction by the Corporation of the fringe benefits (including paid vacations) that were provided to the Executive
immediately prior to the date thereof, provided that a material reduction of fringe benefits does not occur in connection with
the elimination or reduction of a fringe benefit for which the Corporation substitutes a fringe benefit or payment of substantially
equal value or where such materal reduction affects all, or substantially all, of the similarly-situated officers of the Corporation;
or

 

    5 

     

    

 

		(v)	The failure of the Corporation to obtain the assumption of, and agreement to perform, this Agreement by any successor.

 

Notwithstanding the above, Good Reason shall not include
any resignation by the Executive where Cause for his termination by the Corporation exists.

 

		(c)	Resignation by the Executive for Good Reason shall be communicated by a written Notice of Resignation to the Corporation. A
“Notice of Resignation” shall mean a notice which shall indicate the specific provision(s) in this Agreement relied
upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for a resignation for Good
Reason. The notice must be delivered to the Corporation within ninety (90) days of the initial occurrence of the event or condition
alleged to constitute Good Reason. Upon delivery of such notice by the Executive, the Corporation shall have a period of twenty
(20) days during which it may remedy in good faith the event or condition constituting Good Reason and the Executive’s employment
shall continue in effect during such time so long as the Corporation is making diligent efforts to cure. In the event the Corporation
shall remedy in good faith the event or condition constituting Good Reason, then such notice of termination shall be null and void,
and the Corporation shall not be required to pay the amount due to the Executive under this Section 8(a).

 

		(d)	If within thirty (30) days after any Notice of Resignation is given the Corporation notifies the Executive that a dispute exists
concerning the resignation for Good Reason and that it is requesting arbitration pursuant to Section 17, the Corporation shall
continue to pay the Executive his full base salary as described in Section 4, when due and payable under the Corporation’s
payroll procedures, at least until such time as a final decision is reached by the panel of arbitrators, but subject to the limitation
in Section 8(a)(i) on the duration of such payments. If Good Reason for resignation by the Executive is ultimately determined not
to exist, then all sums paid by the Corporation to the Executive, from the date of such resignation to the date of the resolution
of such dispute shall be promptly repaid by the Executive to the Corporation with interest at the rate charged from time to time
by the Corporation to its most substantial customers for unsecured extensions of credit. Should it ultimately be determined that
Good Reason for resignation by the Executive exists, then the Executive shall be entitled to retain all sums paid to him, pending
the resolution of such dispute and he shall be entitled to receive the payments and other benefits provided for in Section 8(a).

 

A failure by the Corporation to notify the Executive
that a dispute exists concerning the resignation for Good Reason within thirty (30) days after any Notice of Resignation is given
shall constitute a final waiver by the Corporation of its right to contest either that such resignation was for Good Reason or
its obligations to the Executive under Section 8(a) hereof.

 

    6 

     

    

 

		(e)	If the Executive’s employment terminates after a Change of Control (as defined in Section 10 hereof), the payments to
which he is entitled pursuant to Section 10 shall be in lieu of any payment to which he might otherwise be entitled under the terms
of Section 8(a)(i).

 

		(f)	The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement under Section 8(a)
by seeking other employment or otherwise; provided, if the Executive secures other full-time employment after a termination without
Cause or a resignation for Good Reason (other than self-employment or employment by an entity he owns or controls), the obligations
of the Corporation under Section 8(a)(i)shall be reduced dollar-for-dollar by the cash compensation received by the Executive from
such other employment. This Section 8(f) shall not be interpreted to require or permit any reduction of benefits to which the Executive
may be entitled under this Agreement.

 

		9.	RESIGNATION, TERMINATION FOR CAUSE, REGULATORY TERMINATION: The Corporation or the Executive may terminate this
Agreement, with or without Cause, subject to the following conditions:

 

		(a)	Notwithstanding the provision of Section 1 of this Agreement, the Board of Directors of the Corporation may, in its sole discretion,
terminate the Executive’s employment for Cause. For the purpose of this Agreement, “Cause” shall mean material
failure of the Executive to perform his duties under this Agreement, unlawful or unethical business conduct, dishonesty, willful
violation of any law, rule, or regulation (other than traffic violations or similar offenses), a material violation of the Corporation’s
work rules, Code of Ethics or policies, or a material breach of this Agreement. The Board of Directors shall not, however, terminate
the Executive’s employment based on the Executive’s material failure to perform his duties under this Agreement, his
material violation of the Corporation’s work rules, Code of Ethics or policies, or his material breach of this Agreement,
without first providing him written notice of any such failure or breach and a reasonable period of time, not less than ten (10)
days, in which to remedy such failure or breach.

 

		(b)	In the event the Executive resigns from or otherwise voluntarily terminates his employment with the Corporation at any time
(other than for Good Reason), or if the Corporation terminates the Executive’s employment for Cause, the Corporation thereafter
shall have no obligation to make any further payments under this Agreement.

 

		(c)	If the Executive is suspended and/or prohibited from participating in the conduct of the Corporation’s affairs by a notice
served under the Federal Deposit Insurance Act or any other regulatory authority, the Corporation’s obligations under this
Agreement shall be terminated and the Corporation thereafter shall have no obligation to make any further payments under this Agreement.

 

    7 

     

    

 

		10.	CHANGE OF CONTROL:

 

		(a)	Notwithstanding any other provision in this Agreement, if the Executive’s employment is terminated by the Executive for
Good Reason, or by the Corporation on account of its giving a Nonrenewal Notice in accordance with Section 2, or by the Corporation
without Cause (other than on account of the Executive’s death or incapacity as described in Section 6), in each case within
twenty-four (24) months following a Change of Control, then in such event the Executive shall receive the following, provided
that the Executive signs a release and waiver of claims reasonably satisfactory to the Corporation and such release and
waiver has become effective:

 

		(i)	The Executive shall be paid a lump sum equal to two (2) times his Final Compensation, as defined in Section 8(a)(i).

 

		(ii)	Payments under (i) above shall be made within forty-five (45) days of the Executive’s termination of employment, subject
to the satisfaction of the release and waiver condition set forth above.

 

		(iii)	If the Executive timely and properly elects continuation coverage under COBRA, the Corporation shall reimburse the Executive
for the difference between the monthly COBRA premium amount paid by the Executive for his and his eligible dependents’ group
health insurance coverage and the monthly premium amount paid by similarly situated active employees. Such reimbursement shall
be paid to the Executive by the tenth day of the month immediately following the month in which the Executive timely remits the
COBRA premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (A) eighteen (18) months
following the Executive’s termination; (B) the date the Executive is no longer eligible to receive COBRA continuation coverage;
or (C) the date on which the Executive becomes eligible to receive substantially similar coverage from another employer. Notwithstanding
the foregoing, if the Corporation’s payments under this Section 8(a)(iii) would violate the nondiscrimination rules applicable
to non-grandfathered plans or would result in the imposition of penalties under the Patient Protection and Affordable Care Act
of 2010 and the related regulations and guidance promulgated thereunder (the “PPACA”), the parties agree to reform
this Section 8(a)(iii) in a manner as is necessary to comply with the PPACA.

 

		(iv)	The Executive shall thereon have no further recourse, and the Corporation shall have no further obligation, under this Agreement.

 

    8 

     

    

 

		(b)	For purposes of this Agreement, a “Change of Control” shall mean (i) the acquisition by any “person”
or “group” (as defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (“Exchange Act”)),
other than the Corporation, any subsidiary of the Corporation or any Corporation’s or subsidiary’s employee benefit
plan, directly or indirectly, as “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of securities
of the Corporation representing fifty percent (50%) or more of either the then outstanding shares or the combined voting power
of the then outstanding securities of the Corporation; (ii) either a majority of the directors of the Corporation elected at the
Corporation’s most recent annual stockholders meeting shall have been nominated for election other than by or at the direction
of the “incumbent directors” of the Corporation, or the “incumbent directors” shall cease to constitute
a majority of the directors of the Corporation (the term “incumbent director” shall mean any director who was a director
of the Corporation on January 1, 2016 and any individual who becomes a director of the Corporation subsequent to January 1, 2016
and who is elected or nominated by or at the direction of at least two-thirds of the then incumbent directors; (iii) the Corporation
consummates a reorganization, merger, share exchange, consolidation or other business combination (a “Reorganization”)
with any other “person” or “group” (as defined in Sections 13(d) and 14(d) of the Exchange Act) or affiliate
thereof, other than a Reorganization that would result in the outstanding common stock of the Corporation immediately prior thereto
continuing to represent, either by remaining outstanding or by being converted into common stock of the surviving entity or a parent
or affiliate thereof, at least fifty percent (50%) of the common stock of the Corporation or such surviving entity or a parent
or affiliate thereof outstanding immediately after the Reorganization; (iv) a plan of complete liquidation of the Corporation or
an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets.

 

		11.	COVENANTS:

 

		(a)	During the term of this Agreement and throughout any further period that he is an employee of the Corporation, and for the
longer of:

 

(x) twelve (12) months from and
after the date that Executive is (for any reason) no longer employed by the Corporation; or

 

(y) for a period of twelve (12)
months from the date of entry by a court of competent jurisdiction of a final judgment enforcing this covenant in the event of
a breach by the Executive,

 

the Executive covenants and agrees that he will not,
directly or indirectly, compete with the Corporation by performing job functions similar to those he is performing under this Agreement,
including the supervision of employees engaged in banking operations similar to those in which the Corporation is engaged, for
any bank or bank holding company within thirty-five (35) miles of the headquarters of the Corporation or within five (5) miles
of any bank branch that was in operation at the time the Executive’s employment with the Corporation ceased.

 

    9 

     

    

 

		(b)	During the term of this Agreement and throughout any further period that he is an employee of the Corporation, and for the
longer of:

 

(x) twelve (12) months from and
after the date that the Executive is (for any reason) no longer employed by the Corporation; or

 

(y) for a period of twelve (12)
months from the date of entry by a court of competent jurisdiction of a final judgment enforcing this covenant in the event of
a breach by the Executive,

 

the Executive will not, directly or indirectly, on
behalf of the Executive or any other person or entity, solicit or induce, or attempt to solicit or induce, any person currently
employed by the Corporation to terminate the employee’s employment with the Corporation. 

 

		(c)	During the term of this Agreement and throughout any further period that he is an employee of the Corporation, and for the
longer of:

 

(x) twelve (12) months from and
after the date that the Executive is (for any reason) no longer employed by the Corporation; or

 

(y) for a period of twelve (12)
months from the date of entry by a court of competent jurisdiction of a final judgment enforcing this covenant in the event of
a breach by the Executive,

 

the Executive will not, except to the extent necessary
to carry out his duties as an employee of the Corporation, directly or indirectly provide Competitive Services (as defined below)
to any Customer (as defined below), and shall not, directly or indirectly, on behalf of the Executive or any other person or entity,
solicit or divert away or attempt to solicit or divert away any Customer of the Corporation for the purpose of selling or providing
Competitive Services, provided the Corporation is then still engaged in the sale or provision of Competitive Services.

 

		(d)	It is agreed that notwithstanding the above to the contrary, Executive may engage in business ventures as long as they are
not competitive with the Corporation.

 

		(e)	For purposes of this Agreement, the term “Customer” means any individual or entity to whom or to which the Corporation
provided Competitive Services, and with whom or with which the Executive had contact in connection with the delivery of such Competitive
Services, within two years of the date on which the Executive’s employment terminates.

 

    10 

     

    

 

		(f)	For purposes of this Agreement, “Competitive Services” means providing commercial and consumer financial products
and services that, as of the date of this Agreement or as of the date of termination of employment, as the case may be, are provided
to Customers of the Corporation, whether such services are provided directly by the Corporation or by others under a contractual
arrangement with the Corporation.

 

		(g)	The Executive agrees that the covenants in this Section 11 are reasonably necessary to protect the legitimate interests of
the Corporation, are reasonable with respect to the time and territory and do not interfere with the interests of the public. The
Executive further agrees that the descriptions of the covenants contained in this Section 11 are sufficiently accurate and definite
to inform the Executive of the scope of the covenants. Finally, the Executive agrees that the consideration set forth in this Agreement
is full, fair and adequate to support the Executive’s obligations hereunder and the Corporation’s rights hereunder.
The Executive acknowledges that in the event the Executive’s employment with the Corporation is terminated for any reason,
the Executive will be able to earn a livelihood without violating such covenants.

 

		(h)	The parties have attempted to limit the Executive’s right to compete only to the extent necessary to protect the Corporation
from unfair competition. The parties recognize, however, that reasonable people may differ in making such a determination. Accordingly,
the parties intend that the covenants contained in this Section 11 to be completely severable and independent, and any invalidity
or unenforceability of any one or more such covenants will not render invalid or unenforceable any one or more of the other covenants.
The parties further agree that, if the scope or enforceability of a covenant contained in this Section 11 is in any way disputed
at any time, and if permitted by applicable law and public policy, a court or other trier of fact may modify and reform such provision
to substitute such other terms as are reasonable to protect the Corporation’s legitimate business interests.

 

		(i)	The Executive agrees that, given the nature of the positions held by the Executive with the Corporation, each and every one
of the covenants and restrictions set forth in this Agreement above are reasonable in scope, length of time and geographic area
and are necessary for the protection of the significant investment of the Corporation in developing, maintaining and expanding
its business. Accordingly, the parties hereto agree that in the event of any breach by the Executive of any of the provisions of
Sections 11 and/or 18 of this Agreement that monetary damages alone will not adequately compensate the Corporation for its losses
and, therefore, that it shall be entitled to any and all legal or equitable relief available to it, specifically including, but
not limited to, injunctive relief, and the Executive shall be liable for all damages, including actual and consequential damages,
costs and expenses, and legal costs and actual attorneys fees incurred by the Corporation as a result of taking action to enforce,
or recover for any breach of Section 11 or 18.

 

		(j)	The Executive covenants that he is not the subject of any contract that prevents him from executing this Agreement and performing
the duties of Executive Vice President. The Executive further covenants that he is not subject to any covenants or obligations
not to compete and is not subject to any other restrictions or obligations which would prevent him from fulfilling the duties specified
in this Agreement.

 

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		(k)	If the Corporation terminates the employment of the Executive without Cause, the Executive terminates this Agreement for Good
Reason, or the Corporation terminates this Agreement by giving a Nonrenewal Notice, in each case within twenty-four (24) months
following a Change of Control , then the covenants set forth in Sections 11(a) and 11(c) shall not apply.

 

		12.	NOTICES: For the purposes of this Agreement, notices and all other communications provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

 

	If to the Executive: 	James E. Hendricks, Jr.
	 	8429 Sleepy Duck Place
	 	Richmond, Virginia 23229

 

	If to the Corporation:	William G. Foster, President and Chief Executive Officer
		Village Bank 
	 	P. O. Box 330
		Midlothian, Virginia 23112

 

	With a copy to:	Craig D. Bell, Esquire
	 	Chairman of the Board of Directors
	 	McGuireWoods LLP
	 	901 East Cary Street
	 	Richmond, Virginia  23219-4030

 

or at such other address as any party may have furnished
to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

		13.	MODIFICATION, WAIVERS, APPLICABLE LAW: This Agreement supercedes and replaces the Employment Agreement between
the Corporation and the Executive, dated May 16, 2014. No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing, signed by the Executive and on behalf of the Corporation by such
officer as may be specifically designated by the Board of Directors of the Corporation. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar provision or conditions at the same or at any prior or subsequent
time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been
made by either party, which are not set forth expressly in this Agreement. The validity, interpretation, construction and performance
of this Agreement shall be governed by the laws of the Commonwealth of Virginia.

 

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		14.	INVALIDITY, ENFORCEABILITY: The invalidity or unenforceability of any provisions of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

		15.	SUCCESSOR RIGHTS: 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 while any amounts would still be payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid
in accordance with the terms of this Agreement to his executor or, if there is no such executor, to his estate.

 

		16.	HEADINGS: Descriptive headings contained in this Agreement are for convenience only and shall not control or
affect the meaning or construction of any provision hereof.

 

		17.	ARBITRATION: With the exception of Sections 11 and 18 and the enforcement of these sections in accordance with
Section 11(i), all other claims under this Agreement will be resolved by binding arbitration. Any dispute, controversy or claim
arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three
arbitrators, in Richmond, Virginia in accordance with the Employment Arbitration Rules and Mediation Procedures Rules of the American
Arbitration Association then in effect. The Corporation shall pay all administrative fees associated with such arbitration. Judgment
may be entered on the arbitrator’s award in any court having jurisdiction. Unless otherwise provided in the rules of the
American Arbitration Association, the arbitrators shall, in their award, allocate between the parties the costs of arbitration,
which shall include reasonable attorneys’ fees and expenses of the parties, as well as the arbitrator’s fees and expenses,
in such proportions as the arbitrators deem just.

 

		18.	CONFIDENTIALITY: Executive covenants and agrees that any and all proprietary information maintained as confidential
by the Corporation and concerning the customers or businesses and services of the Corporation of which he has knowledge as a result
of his association with the Corporation in any capacity, shall be deemed confidential in nature and shall not, without the proper
written consent of the Corporation, be directly or indirectly used, disseminated, disclosed or published by the Executive to third
parties other than in connection with the usual conduct of the business of the Corporation, or as required by law or the Corporation’s
Code of Ethics. Such information shall expressly include, but shall not be limited to, confidential and proprietary information
concerning the Corporation’s trade secrets within the meaning of the Virginia Trade Secrets Act, business operations, business
records, documented customer lists or other confidential customer information. Upon termination of employment, the Executive shall
deliver to the Corporation all property in his possession which belongs to the Corporation including all originals and copies of
documents, forms, records or other information, in whatever form it may exist, concerning the Corporation or its business, customers,
products or services. This Section 18 shall not be applicable to any information which, through no misconduct or negligence of
Executive, has been disclosed to the public by anyone other than Executive.

 

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		19.	409A COMPLIANCE:

 

		(a)	The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code (“Code”)
Section 409A. Accordingly, to the maximum extent permitted under Code Section 409A, the terms of this Agreement, including, without
limitation, “termination” and “termination of employment,” and similar terms, shall be interpreted to be
in compliance with Code Section 409A. In no event whatsoever shall the Corporation be liable for any additional tax, interest or
penalty that may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A.

 

		(b)	Notwithstanding any other payment schedule provided herein to the contrary, if the Executive is deemed on the date of termination
to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then each of the following
shall apply:

 

		(i)	With regard to any payment that is considered deferred compensation under Code Section 409A payable on account of a “separation
from service,” such payment shall be made on the date which is the earlier of (x) the expiration of the six (6)-month period
measured from the date of such ‘separation from service’ of the Executive, and (y) the date of the Executive’s
death (the “Delay Period”) to the extent required under Code Section 409A. Upon the expiration of the Delay Period,
all payments delayed pursuant to this Section 19 (whether they would have otherwise been payable in a single sum or in installments
in the absence of such delay) shall be paid to the Executive in a lump sum, and all remaining payments due under this Agreement
shall be paid or provided in accordance with the normal payment dates specified for them herein; and

 

		(ii)	To the extent that any benefits to be provided during the Delay Period is considered deferred compensation under Code Section
409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Code Section
409A, the Executive shall pay the cost of such benefits during the Delay Period, and the Corporation shall reimburse the Executive,
to the extent that such costs would otherwise have been paid by the Corporation or to the extent that such benefits would otherwise
have been provided by the Corporation at no cost to the Executive, the Corporation’s share of the cost of such benefits upon
expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Corporation in accordance with
the procedures specified herein.

 

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		(c)	All expenses or other reimbursements under this Agreement shall be made promptly and in any event on or prior to the last day
of the taxable year following the taxable year in which such expenses were incurred by the Executive (provided that if any such
reimbursements constitute taxable income to the Executive, such reimbursements shall be paid no later than March 15th
of the calendar year following the calendar year in which the expenses to be reimbursed were incurred), no such reimbursement or
expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any
other taxable year and the Executive’s right to reimbursement shall not be subject to liquidation in exchange for any other
benefit.

 

		(d)	For purposes of Code Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement
shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies
a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days”), the actual
date of payment within the specified period shall be within the sole discretion of the Corporation.

 

		(e)	In no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Code
Section 409A be offset by any other payment pursuant to this Agreement or otherwise.

 

		20.	REGULATORY REQUIREMENTS AND CLAWBACK: Notwithstanding anything contained in this Agreement to the contrary, it
is understood and agreed that the Corporation (or any of its successors in interest) shall not be required to make any payment
or take any action under this Agreement if:

 

		(a)	such payment or action is prohibited by any governmental agency having jurisdiction over the Corporation or any of its subsidiaries
(hereinafter referred to as “Regulatory Authority”) because the Corporation or any of its subsidiaries is declared
by such Regulatory Authority to be insolvent, in default or operating in an unsafe or unsound manner; or

 

		(b)	such payment or action (i) would be prohibited by or would violate any provision of state or federal law applicable to the
Corporation, including, without limitation, the Emergency Economic Stabilization Act of 2008 and the Federal Deposit Insurance
Act, each as now in effect or hereafter amended, (ii) would be prohibited by or would violate any applicable rules, regulations,
orders or statements of policy, whether now existing or hereafter promulgated, of any Regulatory Authority, or (iii) otherwise
would be prohibited by any Regulatory Authority.

 

		(c)	Executive agrees that any incentive based compensation or award that he receives, or has received, from the Corporation under
this Agreement or otherwise, will be subject to clawback by the Corporation as may be required by applicable law or stock exchange
listing requirement and on such basis as the Board of Directors of the Corporation determines, but in no event with a look-back
period of more than three years, unless required by applicable law or stock exchange listing requirement.

 

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		21.	POSSIBLE REDUCTION IN PAYMENT AND BENEFITS:  No amounts will be payable and no benefits will be provided under
this Agreement to the extent that such payments or benefits, together with other payments or benefits under other plans, agreements
or arrangements, would make the Executive liable for the payment of an excise tax under Code Section 4999 or any successor provision.
The amounts otherwise payable and the benefits otherwise to be provided under this Agreement shall be reduced in a manner determined
by the Corporation (by the minimum possible amount) that is consistent with the requirements of Code Section 409A until no amount
payable to the Executive will be subject to such excise tax. All calculations and determinations under this Section 21 shall be
made by an independent accounting firm or independent tax counsel appointed by the Corporation (the “Tax Advisor”)
whose determinations shall be conclusive and binding on the Corporation and the Executive for all purposes. The Tax Advisor may
rely on reasonable, good faith assumptions and approximations concerning the application of Code Section 280G and Code Section
4999. The Corporation shall bear all costs of the Tax Advisor.

 

 

 

 

 

 

 

 

 

(Signatures
appear on the following page)

 

 

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

 

	 	EXECUTIVE
	 	 
	ATTEST: /s/ Debbie Golding	By:	/s/ James E. Hendricks, Jr. 	 
	 	 	James E. Hendricks, Jr. 
	 	 
	 	Date: April 5, 2016
	 	 
	 	 
	 	 
	 	VILLAGE BANK 
	 	 
	ATTEST: /s/ Debbie Golding	By: 	/s/ William G. Foster	 
	 	 	William G. Foster
	 	 	President and Chief Executive Officer
	 	 
	 	Date: April 5, 2016
	 	 

 

 

 

 

    17

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