Document:

EX-10.0

 Exhibit 10.0 

FORM OF 
 EMPLOYMENT
AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made as of
October             , 2014, by and between AMERICAN NATIONAL BANK AND TRUST COMPANY, a national banking association with its principal office at 628 Main Street, Danville,
Virginia 24543-0191 (the “Company”), and BRENDA H. SMITH (“Executive”). 
 WHEREAS, American National Bankshares, Inc.,
a Virginia corporation and the parent holding company of the Company (“AMNB”), and MainStreet Bankshares, Inc., a Virginia corporation (“MainStreet”), have entered into an Agreement and Plan of Reorganization, dated as of
August 24, 2014 (the “Merger Agreement”), pursuant to which MainStreet will merge with and into AMNB (the “Merger”); 

WHEREAS, the Executive has been a key executive of MainStreet and its subsidiary bank, Franklin Community Bank (“FCB”); and 

WHEREAS, the Company and Executive have agreed that upon consummation of the Merger, Executive shall become an employee of the Company on the
terms and subject to the conditions set forth. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants
contained, the Company and Executive agree as follows: 
 1. Employment. Conditional upon consummation of the Merger and Executive
continuing in the employment of MainStreet and FCB until the effective date of the Merger (the “Merger Date”), and effective at the Merger Date, Executive shall be employed by the Company on the terms and subject to the conditions set
forth in this Agreement. 
 For purposes of this Agreement, employment of the Executive by any affiliate of the Company, including FCB until
such time as it merges with and into the Company, shall be deemed to be employment by the Company under this Agreement. 
 2. Term.
The term of employment under this Agreement shall commence on the Merger Date and will end on the first anniversary of the Merger Date, unless sooner terminated as provided in this Agreement (the “Term of Employment”). 

3. Duties. Executive shall serve as Senior Vice President of the Company. Executive’s primary duties and responsibilities shall
involve the integration of FCB’s banking network and support functions with the Company, including the conversion of the operating systems of FCB to those of the Company, the realization of projected cost savings and customer retention and
development. Executive shall also render such additional services and duties consistent with the position as may be assigned to Executive 

 
from time to time by the Company. During the Term of Employment, Executive shall devote her full time, attention and efforts to the business of the Company and shall use her best efforts to
promote the interests of the Company at all times. This shall not be construed to prevent Executive from personally, and for Executive’s own account and benefit, trading in stocks, bonds, securities (including securities of publicly traded
financial institutions so long as, in the case of entities that are not affiliates of the Company, Executive’s holdings represent less than one percent of any such entity’s issued and outstanding securities), real estate, commodities or
other forms of investment so long as such activities do not interfere with Executive’s duties as an executive of the Company. 
 4.
Compensation and Benefits. 
 (a) The Company agrees to pay Executive, for services rendered in her capacity as Senior Vice President,
a salary at the annual base salary rate (exclusive of any profit sharing, bonus stock award, or incentive payments) of One Hundred Eighty Thousand Dollars ($180,000) during the Term of Employment. Such amount shall be payable in bi-weekly
installments, less any sums which may be required to be deducted or withheld under applicable law. Executive acknowledges and agrees that if, upon the expiration of this Agreement, the Company offers to continue her employment on an at-will
employment basis, Executive’s annual base salary rate will be subject to adjustment in order to be commensurate with the duties and responsibilities of her newly assigned position. 

(b) Executive shall be eligible to participate in the Company’s profit sharing plan, incentive compensation program, or other compensation
programs that may be implemented for officers, on the same basis as other officers of the Company. Profit sharing and incentive compensation plans are subject to the approval of the Company’s board of directors each calendar year. Although
subject to change, profit sharing and incentive compensation are currently paid following the end of the calendar year. Any profit sharing or incentive compensation benefits earned by Executive shall be paid no later than March 15 following the
year in which such benefits are earned. 
 (c) The Company agrees to provide benefits to Executive which are the same as those currently
provided to other officers of the Company holding positions commensurate with the office of Executive, and such other benefits as the Company may from time to time, in its discretion provide to Executive. 

(d) The Company shall reimburse Executive for all reasonable expenses incurred in connection with the performance of Executive’s duties
for the Company, within such limits and standards as may from time to time be set by the Company. Expenses that are reimbursable by the Company shall be paid to Executive no later than March 15 following the year in which such expense was
incurred. 
 (e) Executive shall be entitled to four weeks of vacation each calendar year (in addition to the established public or statutory
holidays). Upon termination of Executive’s employment, Executive shall be entitled to accrued vacation pay (to the extent such vacation time has not been used) for any vacation days not taken during the year of termination. Vacation days not
taken in any twelve-month period nor carried forward in accordance with the Company’s vacation policy shall be forfeited and not carried forward. 

  
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 (f) In addition to the above amounts, the Company shall pay to Executive the following special
amounts, subject to the achievement of the performance metrics where applicable: 
 (i) $50,000 cash retention bonus payable
on the Merger Date; 
 (ii) $50,000 performance bonus payable upon the successful completion, as determined in the good faith
judgment of the Company, of (A) the integration of FCB’s banking network and support, administrative and back office functions with the corresponding Company banking network and functions, and (B) the conversion of the operating
systems of FCB and its Affiliates to those of the Company, which integration and conversion processes are targeted to be substantially completed on or about the six month anniversary of the Merger Date; 

(iii) $50,000 performance bonus payable on the first anniversary of the Merger Date conditioned upon the achievement, as
determined in the good faith judgment of the Company, of at least $             in annualized cost savings, with no offset for Merger specific or one-time expenses related to the Merger;
and 
 (iv) In settlement of all rights and benefits of Executive under the Employment Agreement, dated as April 25,
2014, by and between MainStreet and Executive and in consideration of Executive’s consent and agreement to the amendment of the Supplemental Retirement Plan adopted by FCB, effective January 11, 2007, for the benefit of Executive, which
amendment is set forth in substantially in the form of Schedule A, the Company shall pay Executive $100,000 on the Merger Date. 
 Payments pursuant to this
Section 4(f) shall be deemed to be compensation for payroll tax and income tax purposes, but shall not be deemed to be compensation or otherwise taken into account for purposes of determining benefits or contributions in behalf of Executive
under any retirement plan or program of the Company or any other plan, program, arrangement of the Company and shall not be taken into account in determining termination compensation of Executive as defined in Section 6(f) or otherwise in this
Agreement. 
 (g) If, prior to the date for payment of the performance bonuses set forth in subsections (f)(ii) and (f)(iii) above,
Executive’s employment is terminated for any reason, except (A) by the Company under the circumstances described in Section 6(c) or (B) on account of Executive’s death or disability as described in Section 6(d),
Executive shall not be entitled to receive the performance based payments with respect to the uncompleted tasks. A termination described in (A) or (B) shall retain Executive’s right to receive the above payments in (f)(ii) and
(f)(iii), and all of the above payments shall be made to Executive within twenty (20) days following the date of such termination. 

  
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 5. Covenants of the Executive. 

(a) Noncompetition. Subject to Section 5(c) below, Executive agrees that (1) during the Term of Employment, and (2) for a
twelve-month period following the expiration of this Agreement or, if sooner, the termination of Executive’s employment for any reason during the Term of Employment (the “Noncompete Period”), Executive will not directly or indirectly,
as a principal, agent, employee, employer, investor, co-partner or in any other individual or representative capacity whatsoever, engage in a Competitive Business anywhere in the Market Area (as such terms are defined below) in any capacity that
includes any of the significant responsibilities held or significant activities engaged in by Executive while employed with the Company or any of its Affiliates. Notwithstanding the foregoing, Executive may purchase or otherwise acquire up to (but
not more than) 1% of any class of securities of any business enterprise (but without otherwise participating in the activities of such enterprise) that engages in a Competitive Business in the Market Area and whose securities are listed on any
national or regional securities exchange or have been registered under Section 12 of the Securities Exchange Act of 1934, as amended. 

(b) Nonsolicitation. Subject to Section 5(c) below, Executive further agrees that during the Noncompete Period Executive will not
directly or indirectly: (i) solicit, or assist any other person in soliciting, any depositors or customers of the Company or its Affiliates to make deposits in, borrow money from, or become customers of any other company conducting a
Competitive Business in the Market Area; (ii) induce any customers of the Company or its Affiliates to terminate their relationship with the Company or its Affiliates; or (iii) contact, solicit or assist in the solicitation of any employee
to terminate his or her employment with the Company or any of its Affiliates. 
 (c) Applicability of Restrictive Covenants.
Notwithstanding the foregoing, the restrictive covenants set forth in Sections 5(a) and 5(b) will not apply to, and will have no legal force or effect on, Executive to the extent her primary duties and responsibilities do not involve regular and
frequent interaction with customers on a so-called “customer facing” basis with respect to business development, customer management and related matters. 

(d) Definitions. As used in this Agreement, the term “Competitive Business” means the financial services business, which
includes one or more of the following businesses: consumer and commercial banking, trust and asset management, residential and commercial mortgage lending, and any other business in which the Company or any of its Affiliates are engaged and in which
Executive is significantly engaged at the time of termination of her employment; the term “Market Area” means the area within a twenty-five (25) mile radius of the Town of Rocky Mount, Virginia; the term “Affiliate” means a
Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company; the term “Person” means any person, partnership, corporation, company, group or other
entity; the term “Customer” means customers or clients (including any prospective customers or clients) of the Company or its Affiliates that Executive contacted in any manner during the 

  
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preceding twelve (12) months of your employment in furtherance of the business of the Company and its Affiliates or about whom you have information that is confidential or that is not
publicly available; and the term “Confidential Information” shall include, but not be limited to, all financial and personnel data, computer software and all data base technologies, capital plans, customer lists and requirements, market
studies, know-how, processes, trade secrets, and any other information concerning the non-public business and affairs of the Company and its Affiliates. For purposes of clarity with respect to the scope of the provisions of this Section 5,
references in this Section 5 to the Company and its Affiliates shall be deemed to include MainStreet and FCB and their respective Affiliates. 

(e) Confidentiality. During the Term of Employment and thereafter, and except as required by any court, supervisory authority or
administrative agency or as may be otherwise required by applicable law, Executive shall not, without the written consent of a person duly authorized by the Company, disclose to any person (other than Executive’s personal attorney, or an
employee of the Company or an Affiliate, or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by Executive of Executive’s duties as an employee of the Company) or utilize in conducting a
business any Confidential Information obtained by Executive while in the employ of the Company, unless such information has become a matter of public knowledge at the time of such disclosure. On termination of employment, Executive will deliver to
the Company all Confidential Information and all records, reports, data, memoranda and notes of any nature that are in Executive’s possession or under Executive’s control and that are prepared or acquired in the course of her employment
relationship with the Company (whether in paper or electronic form), and will not knowingly retain or remove from Company premises any of the foregoing or any reproduction of that or any Confidential Information. 

(f) Acknowledgment. The covenants contained in this Section 5 shall be construed and interpreted in any proceeding to permit their
enforcement to the maximum extent permitted by law. Executive agrees that the restrictions imposed in this Agreement are necessary for the reasonable and proper protection of the Company and its Affiliates, and that each and every one of the
restrictions is reasonable in respect to length of time, geographic area and scope of prohibited activities, and that the restrictions are neither overly restrictive on Executive’s post-employment activity nor overly burdensome for Executive to
abide by. Executive covenants that Executive will not make any contention contrary to any of the foregoing representations in the future and agrees that Executive will be estopped to deny or contradict the truth or accuracy of these representations.
If, however, the time, geographic and/or scope of activity restrictions set forth in Section 5 are found by an arbitrator or court to exceed the standards deemed enforceable, the arbitrator or court, as applicable, is empowered and directed to
modify the restriction(s) to the extent necessary to make them enforceable. Notwithstanding anything to the contrary , nothing in this Agreement shall be construed to prohibit any activity that cannot reasonably be construed to further in any
meaningful way any actual or potential competition against the Company or an Affiliate. 
 (g) Enforcement. Executive acknowledges
that damages at law would not be a measurable or adequate remedy for breach of the covenants contained in this 

  
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Section 5 and, accordingly, Executive agrees to submit to the equitable jurisdiction of any court of competent jurisdiction in connection with any action to enjoin Executive from violating
any such covenants. In any legal, equitable, or arbitration action in connection with the enforcement of the covenants included in this Section 5, each party shall be responsible for its own costs, including reasonable attorneys’ fees. In
the event legal action is commenced with respect to the provisions of this Section 5 and Executive has not strictly observed the restrictions set forth in this Section 5, then the restricted periods described in Paragraphs (a) and
(b) shall begin to run anew from the date of any Final Determination of such legal action. “Final Determination” shall mean the expiration of time to file any possible appeal from a final judgment in such legal action or, if an appeal
be taken, the final determination of the final appellate proceeding. Except as may be otherwise provided, all the provisions of this Section 5 will survive termination and expiration of this Agreement. 

6. Termination. 
 (a)
Notwithstanding the provisions of Section 2, and in addition to the expiration of the term of this Agreement, Executive’s employment may be terminated by the Company or by the Executive at any time or for any reason, consistent with the
other terms of this Agreement. 
 (b) Executive may terminate employment by written notice to the Company effective thirty days after receipt
of such notice by the Company, and upon such termination, Executive shall have no right to render services or receive compensation or other benefits under this Agreement for any period after such termination. 

(c) The Company may terminate Executive’s employment without “good cause” at any time upon written notice to Executive, which
termination shall be effective immediately or on such later date as specified in the written notice. If the Company terminates Executive’s employment and such termination is not on account of death or disability of Executive or for “good
cause,” the Company shall pay Executive a “termination payment” as described below, provided Executive signs a release and waiver of claims in favor of the Company, its Affiliates and their respective officers and directors in a form
provided by the Company and such release is commercially reasonable and has become effective. In the event of a termination for death, disability or good cause, other than amounts payable with respect to services rendered, consistent with
Section 4(g), the Company shall owe Executive no further salary, benefits or other compensation of any kind after the Company provides notice to Executive of termination, except as set forth in Section 4(g) in the case of a termination for
death, disability or without “good cause”. The obligations of Executive under Paragraph 5 shall survive such termination, whether made by the Company or by Executive. 

(d) Disability shall mean Executive is unable to perform the customary duties of Executive’s position for a consecutive period of six
months due to a physical or mental illness. In the event a dispute arises between Executive and the Company concerning Executive’s physical or mental ability to continue or return to the 

  
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performance of Executive’s duties, Executive shall submit to examination by a competent physician mutually agreeable to the parties, and the physician’s opinion as to Executive’s
capability to so perform will be final and binding. 
 (e) The Company shall be deemed to have “good cause” to terminate
Executive’s employment if the Company determines that Executive: 
 (i) has materially violated Section 3 or 5,
provided that Executive has received written notice from the Company of such material violation and such violation remains uncured thirty days after the delivery of such notice; 

(ii) has materially refused or failed to perform the duties of her position or other reasonable duties which have been assigned
to her, provided that Executive has received written notice from the Company of such material refusal or failure and such refusal or failure remains uncured thirty days after the delivery of such notice; 

(iii) is guilty of personal dishonesty, gross incompetence, willful misconduct, a breach of a fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses), unethical business practices in connection with the Company’s business, misappropriation
of the Company’s or any affiliate’s assets (determined on a reasonable basis) or is subject to a final cease-and-desist order, or has been convicted of a felony or a misdemeanor involving moral turpitude; or 

(iv) is guilty of a material breach of any other provision of this Agreement, provided that Executive has received written
notice from the Company of such material breach and such breach remains uncured thirty days after the delivery of such notice. 
 (f)
“Termination payment” means the continuation of Executive’s base salary (as in effect on the date that Executive’s employment terminates) during the period beginning on the date of Executive’s termination of employment and
ending on the end of the Term of Employment. The termination payments shall be paid in accordance with the Company’s regular payroll procedure commencing with Executive’s “separation from service” (as defined in Treas. Reg.
§ 1.409A-1(h)). The termination payment is intended to qualify for the exception for separation pay, described in Treas. Reg. § 1.409A-1(b)(9)(iii), to Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), which provides that (i) the amount of termination payments shall not exceed the lesser of (A) two times Executive’s annualized compensation from the Company for the calendar year preceding the year in which the
“separation from service” (as defined above) occurs and (B) two times the maximum amount of compensation that may be taken into account under Section 401(a)(17) of the Code as in effect for the year in which the “separation
from service” (as defined above) occurs, and (ii) all termination payments shall be paid by the end of the second year following the year of separation from service. 

  
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 7. Binding Effect; Survival. This Agreement shall be binding on and inure to the benefit
of the parties and their respective successors, heirs and assigns, provided that no part of this Agreement is assignable by Executive. No assignment by the Company shall release the Company from its obligations pursuant to Paragraph 4 in the event
the Company’s successor fails to satisfy those obligations. Except as otherwise expressly provided, upon termination or expiration of this Agreement the respective rights and obligations of the parties shall survive such termination or
expiration to the extent necessary to carry out the intention of the parties embodied in this Agreement. 
 8. Severability. The
failure of any court to enforce any clause, paragraph or provision of this Agreement shall not adversely affect the validity or enforceability of any other clause or provision. 

9. Entire Agreement. This Agreement sets forth the entire agreement of the parties with respect to the employment contemplated by this
Agreement and supersedes all prior agreements, arrangements and understandings with respect to this matter between Executive and the Company, MainStreet and FCB relating to Executive’s employment, including without limitation the Employment
Agreement, dated April 25, 2014, between Executive and MainStreet. All such agreements, understandings, and arrangements will terminate and be of no force or effect as of the Merger Date. Executive expressly disclaims any rights under any
prior agreements, understandings and arrangements on and after the Merger Date. The provisions of this Section 9 shall not apply to the Supplemental Retirement Plan adopted by FCB in behalf of Executive, as it is proposed to be amended and
modified as contemplated by this Agreement. No modification, amendment, addition to or termination of this Agreement, or waiver of any of its provisions shall be valid or enforceable unless in writing and signed by both parties. 

10. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of
which constitute one instrument. 
 11. Headings. The underlined headings are for convenience only and shall not affect the
interpretation of this Agreement. 
 12. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the Commonwealth of Virginia. 

  
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 13. Notice. Any notice to be delivered under this Agreement shall be given in writing and
delivered personally or by leaving the same at or by sending the same first-class mail, postage prepaid: 
 (a) in the case
of the Company: 
       American National Bank and Trust Company 

      P. O. Box 191 

      Danville, Virginia 24543-0191 

      Attention: Jeffrey V. Haley 

                     
  President & Chief Executive Officer 
 (b) in the case of Executive, at her most recent address as shown
in the Company’s records, which on the date of this Agreement is: 
       Brenda H. Smith

       115 Farmingdale Drive 

      Martinsville, Virginia 24112; 

(c) in the case of either party, such other address as shall have been notified in writing to the other of them for the
purposes of service. 
 Executive agrees to notify the Company, in writing, of any change in address after this Agreement is executed. 

[Signatures appear on the following page] 

  
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 WITNESS the following signatures as of the indicated dates. 

 

							
		 		 	AMERICAN NATIONAL BANK AND TRUST COMPANY
				
	                    , 2014	 		 	By:	 	 
		 		 		 	Jeffrey V. Haley
		 		 		 	President & Chief Executive Officer
				
	                    , 2014	 		 		 	 
		 		 		 	Brenda H. Smith

  
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 Schedule A 

Form of Amendment to Supplemental Retirement Plan 

AMENDMENT, dated as of October             , 2014, to the Supplemental
Retirement Plan (the “Plan”) originally adopted by Franklin Community Bank, N.A. effective January 11, 2007, and now maintained by MainStreet Bankshares, Inc. (“MainStreet”) for Brenda H. Smith
(the “Executive”). MainStreet has the authority under Plan Section 9.1(b) to amend the Plan and now wishes to do so to freeze the Plan as provided in Section 5.9(e) of the Agreement and Plan of Reorganization, dated as of
August 24, 2014, between American National Bankshares Inc. (“AMNB”) and MainStreet, pursuant to which MainStreet will merge with and into AMNB (the “Merger”). 

NOW, THEREFORE, the Plan is amended as follows: 

I. Conditional upon consummation of the Merger and effective as of the effective date of the Merger (the “Merger
Date”), Plan Section 3.1 is amended by adding a new subsection 3.1(c) to read as follows: 
 3.1(c)
Notwithstanding any other provision of the Plan, Participant’s Retirement Benefit under the Plan is frozen as of the Merger Date (the “Freeze Date”) at the amount accrued as of the Freeze Date, which amount shall become 100% vested in
accordance with Section 5.1(a)(ii). The Retirement Benefit reduction provisions in Section 3.1(b) will apply, resulting in a Retirement Benefit equal to 100% of 33% of final five year average Compensation determined as of the Freeze Date,
and reduced by Participant’s Primary Social Security Benefit, as defined in Section 3.2(b), after age 66. Accordingly, on and after the Freeze Date, Participant’s Retirement Benefit shall be determined as of the Freeze Date without
regard to any Compensation or service completed after the Freeze Date. After the Freeze Date, the death benefit provisions of Article IV and the time and manner of payment provisions of Article VI will continue to apply. Accordingly, upon retirement
or termination, Participant’s Retirement Benefit will be $47,991 per year until age 66, after which the benefit will be reduced by Participant’s Primary Social Security Benefit, resulting in an annual payment estimated to equal $17,152
after age 66. 
 II. In all respects not amended, the Plan is hereby ratified and confirmed. 

* * * * * * * * 

  
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 To record the adoption of the Amendment as set forth above, MainStreet has caused this Amendment
to be signed and dated as follows. 
  

							
		 		 	MAINSTREET BANKSHARES, INC.
				
	 	 		 	By:	 	 
	Date	 		 		 	

 ACKNOWLEDGEMENT AND AGREEMENT 

I, Brenda H. Smith, hereby acknowledge and agree to the terms of the foregoing Amendment to my Supplemental Retirement Plan. 

 

							
		 		 	BRENDA H. SMITH
			
	 	 		 	 
	Date	 		 		 	

  
 12Offer Letter

 Exhibit 10.1 
  

 
 October 8, 2014 
 Fran
Horowitz 
 7935 Lambton Park Road 
 New Albany, Ohio 43054 

Dear Fran: 
 We are thrilled that you are considering joining
Abercrombie & Fitch (A&F) and we are pleased to extend the following offer of employment: 
  

			
	Position	  	President – Hollister Co. brand
		
	Start Date	  	This offer is contingent upon your ability to commence your employment with A&F by the earlier of 366 days from your last day of employment with Ann, Inc. (“ANN”) or the date on which you are contractually free to
begin work, but in no event later than October 26, 2015. If you are unable or unwilling to commence employment with A&F by October 26, 2015 this offer, even if accepted by you, is null and void and you will not be entitled to any of the terms or
remuneration set forth herein.
		
		  	This offer will remain open and must be accepted within 10 calendar days of the date set forth above unless the date for acceptance has been extended by mutual agreement of the parties. You must tender your resignation to your
current employer on or before October 21, 2014 unless the date for doing so is extended by mutual agreement of the parties.
		
	Base Salary	  	$995,000 annually; paid bi-weekly
		
		  	Annual salary adjustments based on:
		
		  	 (1)    Your performance

 
 (2)    Economic factors (i.e.
business conditions, inflation, job market, etc.)
  
 The next salary review will be in
March 2016.

		
	Benefits	  	You will be eligible to participate in various A&F benefit programs as set forth in this letter and other relevant documents. All benefit programs are subject to change in accordance with A&F’s policies and
procedures.

			
		
	Sign-On Bonus	  	 Upon your commencement of employment, A&F will provide you a one-time sign-on bonus of $450,000 less any financial benefit received
from:
  
 •    The
vesting of your November tranche of restricted stock and stock options from ANN
  

•    Any repayment or forfeiture amounts forgiven by ANN relating to prior sign-on bonuses or
relocation expenses.
  
 This sign-on bonus (less applicable taxes and other withholdings)
will be made along with your first regular paycheck. In order to obtain this payment, you will be required to sign an agreement to repay the sign-on bonus in full if you resign without Good Reason (as defined later) or are terminated for Cause
within thirty-six (36) months of your first day of employment.

		
	Bonus Program	  	You will be eligible to participate in A&F’s Bonus Program at a target payout level of 125% (“Target”) of your annual base earnings and a maximum payout of 250% of your annual base earnings. At the base salary
quoted in this offer, your Target annual payout is $1,243,750, and your maximum annual payout is $2,487,500.
		
		  	 •    Bonus payouts will be based on the financial results achieved in the
Hollister Co. brand and at the total Company level and can vary from 0% to 200% of Target payout level.
  

•    Your eligibility and participation level are dependent on your start date.

		
		  	 •    Annual payouts, if any, are generally paid following the completion of the twelve-month performance
period. Except as otherwise provided herein, you must be an active associate on the payment date to receive a payout.

			
		
	Guaranteed Bonus Payout	  	Except as otherwise provided herein assuming that you are an active associate on the payout date, and you did not receive a Fall 2014 bonus from ANN, you will be guaranteed a Bonus payout of $262,500 for Fiscal Year 2014. This
Guaranteed Bonus will be paid at the same time payment is made to similarly situated executives under the A&F Bonus Program for Fiscal Year 2014.
		
	Change of Control	  	 In the event that the Company undergoes a Change of Control within the first year of your employment and your employment is not terminated by
the Company, the Company agrees that your compensation and benefits in this offer will not be decreased or diminished prior to the one-year anniversary of your employment with the Company as long as you remain actively employed by the Company, its
successor or assign.
  
 In the event that the Company undergoes a Change in Control
within the first year of your employment and your employment is subsequently terminated by the Company or your duties are diminished or your compensation is reduced from what is outlined in this letter, the following will apply:

 
 •   The Company will continue
your salary from your separation date through the first anniversary of your employment date. This salary shall be paid in bi-weekly installments, less applicable taxes and other withholdings, consistent with the Company’s payroll practices. You
will be guaranteed a minimum of six months salary, even if your termination occurs less than six months prior to your first anniversary of employment.
  

•   During the period in which salary continuation is in effect, the Company will also provide you
with medical benefits and life insurance on the same basis as applies to similarly situated active associates.
  

•   If your employment is terminated during Fiscal Year 2014, the Company shall pay you the
Guaranteed Bonus Payout set forth in this offer.
  

•   If your employment is terminated during Fiscal Year 2015, the Company shall pay you a
pro-rated bonus calculated at Target.

			
		
		  	For the purposes of this paragraph, a Change of Control will be defined consistent with the definition set forth in the 2005 Long-Term Incentive Plan.
		
	Termination Without Cause or for Good Reason	  	 In the event of your termination by the Company without Cause (as defined below) or by you for “Good Reason” (as defined below)
before the first anniversary date of your employment date, the following will apply:
  

•   The Company will continue your salary from your separation date through the first anniversary
of your employment date. This salary shall be paid in bi-weekly installments, less applicable taxes and other withholdings, consistent with the Company’s payroll practices. You will be guaranteed a minimum of six months salary, even if your
termination occurs less than six months prior to your first anniversary of employment.
  

•   During the period in which salary continuation is in effect, the Company will also provide you
with medical benefits and life insurance on the same basis as applies to similarly situated active associates.
  

•   If your employment is terminated without Cause during Fiscal Year 2014, the Company shall pay
you the Guaranteed Bonus Payout set forth in this offer.
  

•   If your employment is terminated by you for Good Reason, the Company shall pay you a lump sum
cash payment that is calculated as follows: $1,250,000 multiplied by a fraction where the numerator is the number of days in the fiscal year through the separation date and where the denominator is the total number of days in the fiscal year.

 
 •   If your employment is
terminated without Cause during Fiscal Year 2015, the Company shall pay you a pro-rated bonus calculated at Target.
  

•   Subject to the execution of a release on a form satisfactory to the Company, on the first
anniversary date of your employment date, the Company will provide you with a $3.0 million payment, less normal taxes and other withholdings, in lieu of the Equity Replacement Grant which will be forfeited as a result of the termination of your
employment.

			
		
		  	 “Cause” shall mean: (I) your conviction of, or entrance of a plea of guilty or nolo contendere to, a felony under federal or state
law; or (ii) fraudulent conduct by you in connection with the business affairs of the Company; or (iii) your willful refusal to materially perform your executive duties hereunder; or (iv) your willful misconduct which has, or would have if generally
known, a materially adverse effect on the business or reputation of the company; or (v) your material breach of a covenant, representation, warranty or obligation of you to the Company. As to the grounds stated in the above mentioned clauses (iii),
(iv), and (v), such grounds will only constitute “Cause” once the Company has provided you written notice and you have failed to cure such issue within 30 days.
  

“Good Reason” shall mean, without your written consent: (i) a reduction in your base salary or target bonus as in effect from time to time; or (ii)
the Company materially reduces (including as a result of any co-sharing of responsibilities arrangement) your authority, responsibilities, or duties such that you no longer have the title of, or serve or function as, President – Abercrombie
& Fitch/kids brand or President – Hollister brand of the Company, or (iii) the Company requires you to be based at a location in excess of thirty miles from the location of its principal executive office as of the effective date of your
employment; or (iv) the Company fails to obtain the written assumption of its obligations to you by a successor no later than the consummation of a merger, consolidation or sale of the company; or (v) a material breach by the Company of its
obligations to you; which in each of the circumstances described above, is not remedied by the Company within thirty days of receipt of written notice by you to the Company.
  

In the event of your termination by the Company without Cause (as defined above) or by you for “Good Reason” (as defined above) after the first
anniversary date of your employment date, but prior to the date when the equity replacement grant and the inducement equity grant referenced later in this letter would fully vest, the following will apply subject to the execution of a release on a
form satisfactory to the Company:
  

•   The Company will continue your salary from your separation date through the six month
anniversary of your separation date. This salary shall be paid in bi-weekly installments, less applicable taxes and other withholdings, consistent with the Company’s payroll
practices.

			
		
		  	 •   During the period in which salary continuation is in effect, the Company
will also provide you with medical benefits and life insurance on the same basis as applies to similarly situated active associates.
  

•   If your employment is terminated without Cause, the Company shall pay you a pro-rated bonus
that is calculated as follows: your Target bonus for the fiscal year in which the termination occurs multiplied by a fraction where the numerator is the number of days in the fiscal year through the separation date and where the denominator is the
total number of days in the fiscal year. This bonus will be paid on the six month anniversary of your separation date.
  

•   If your employment is terminated by you for Good Reason, the Company shall pay you a lump sum
cash payment that is calculated as follows: $1,250,000 multiplied by a fraction where the numerator is the number of days in the fiscal year through the separation date and where the denominator is the total number of days in the fiscal year.

 
 •   An additional amount,
less normal taxes and other withholdings, which would be in lieu of the Equity Replacement Grant which will be forfeited as a result of the termination of your employment. This additional amount will vary based on your separation date. If your
separation date occurs after 25% of your Equity Replacement Grant, but before 50% of such grant has vested, then the additional amount will be $2.25 million. If your separation date occurs after 50% of such grant has vested, but before 75% of such
grant has vested, then the additional amount will be $1.5 million. If your separation date occurs after 75% of such grant has vested, but before 100% of such grant has vested, then the additional amount would be $0.75 million.

 
 Should A&F provide Change in Control, No Cause and/or Good Reason termination benefits
to the Chief Operating Officer and Executive Vice Presidents during your first four years of employment, you would have a one-time right to waive participation in the above program and substitute the program that is made available to similarly
situated associates. If you elect to remain with the above program, A&F would offer you a one-time opportunity following the completion of four years of employment to participate in
a

			
		
		  	Change in Control, No Cause and/or Good Reason termination benefits program that would then be available to newly hired, but otherwise similarly situated, associates. Please note that there is no guarantee that A&F would have a
Change in Control, No Cause and/or Good Reason termination benefits program in effect at the point in time when you would complete four years of employment.
		
	Relocation	  	You will be eligible for reimbursement of relocation expenses in accordance with the terms and conditions of the A&F Relocation Policy. All relocation benefits must be used within four months of your start date.
		
		  	 •   A&F will provide the following relocation assistance (up to a maximum of
$80,000):
  
 •   Movement of
household goods
  
 •   Lease
break assistance
  

•   Relocation expenses will be “grossed up” to offset Federal and State taxes.

 
 •   If you wish to have
A&F pay your relocation expenses, you must sign an agreement to repay those expenses in full if you resign without Good Reason or are terminated for Cause within thirty-six (36) months of your first day of employment.

		
	2014 Inducement Grant – Performance Share Awards (PSAs) and Stock Appreciation Rights (SARs)	  	Subject to the approval of the Compensation Committee of the Board of Directors or its designee and subject to the terms and conditions of the grant, you will receive an inducement grant with an approximate total value of $2.5
million, which will be pro-rated based on the following schedule relating to your start date with A&F:
		
		  	 •   On or before November 1, 2014– 5/12 or $1.042 million

 
 •   November 2, 2014 to
December 1, 2014– 4/12 or $0.833 million

			
		  	  

•   December 2, 2014 to January 1, 2015- 3/12 or $0.625 million

 
 •   January 2, 2014 to
February 1, 2015– 2/12 or $0.417 million
  

•   On or after February 2, 2015– no 2014 Inducement Grant

 
 The final inducement grant value, as determined above will be split with 75% of the grant
value in the form of Performance Share Awards (PSAs) and 25% of the grant value in the form of Stock Appreciation Rights (SARs). The date of the grant will be determined according to Abercrombie & Fitch’s Equity Grant Policy.

 
 Upon vesting, one PSA converts to one share of A&F stock. Subject to continued
employment with A&F, the vesting schedule will be consistent with other grants made during the Spring 2014 annual grant policy.
 Subject to continued
employment with A&F, the SARs will vest and become exercisable on each anniversary of the grant date in accordance with the following schedule:
  

Year 1     Year 2     Year 3     Year 4

    25%       25%       25%
      25%

		
	Annual Grant (2015 and beyond)	  	 If you have commenced your employment prior to March 1, 2015, subject to satisfactory performance and continued employment, Management
will recommend to the Compensation Committee of the Board of Directors an equity grant:
  

•   consistent with others at similar levels to the position described in this offer; and,

 
 •   based on your performance
rating and the Company’s stock price.
  
 If your employment commences on or after
March 1, 2015, subject to satisfactory performance and continued employment, you will receive a pro-rated amount of the annual grant discussed in this section above, based on the following schedule relating to your start date with A&F:

 
 •   March 1, 2015 to
March 31, 2015—11/12 of the Annual Grant
  

•   April 1, 2015 to April 30, 2015—10/12 of the Annual
Grant

			
		
		  	 •   May 1, 2015 to May 31, 2015—9/12 of the Annual Grant

 
 •   June 1, 2015 to
June 30, 2015—8/12 of the Annual Grant
  

•   July 1, 2015 to July 31, 2015—7/12 of the Annual Grant

 
 •   August 1, 2015 to
August 31, 2015—6/12 of the Annual Grant
  

•   September 1, 2015 to September 30, 2015—5/12 of the Annual Grant

 
 •   October 1, 2015 to
October 26, 2015—4/12 of the Annual Grant
  

•   After October 26, 2015: Not Applicable

 
 Grants in the past have included a mixture of Restricted Stock Units, Stock Appreciation
Rights and Performance Share Awards, although we anticipate that, based on current best practices in senior executive compensation, your grant will largely or completely consist of Performance Share Awards. The vesting schedules will be consistent
with other grants made during the 2015 Annual Equity Grant process. Assuming that you are in good standing on the equity award date, Management will recommend an award with an approximate value of $2.5 million.

 
 After 2015, subject to satisfactory performance and continued employment, Management will
recommend to the Compensation Committee of the Board of Directors, grants consistent with others at similar levels to the position described in this offer. These grants will also be based on your performance rating and the Company’s stock
price. The vesting schedules will be consistent with other grants made during each Equity Grant process.
  

	 Equity Replacement Grant –

Restricted Stock Units (RSUs)
	  	Subject to the approval of the Compensation Committee of the Board of Directors or its designee and subject to the terms and conditions of the grant, Management will recommend an award of RSUs with an approximate grant date fair
value of $3.0 million. The date of the grant will be determined according to Abercrombie & Fitch’s Equity Grant Policy. Upon vesting, one RSU converts to one share of A&F stock. Subject to continued employment with A&F, these RSUs
will vest on each anniversary of the vest from date in accordance with the following 4-year vesting schedule:

  

			
		  	Year 1     Year 2     Year 3     Year 4
		  	    25%       25%        25%        25%
		
	A&F Qualified Savings	  	After one year of employment, you will be eligible to participate in the Abercrombie & Fitch Co. Savings and Retirement Plan. As a participant in this plan, you will be eligible to defer up to 50% of your base salary and Bonus
payouts, or up to the IRS maximum annual deferral limit ($17,500 plus “catch-up” contributions, if applicable for 2014), whichever is less. The first 3% of your base salary and Bonus payouts that you defer into this plan will be matched by
A&F at 100%. The next 2% of your base salary and Bonus payouts that you defer into this plan will be matched at 50%.
		
		  	The maximum level of pensionable compensation allowed by the IRS is $260,000 for 2014. At the base salary and Bonus target quoted in this offer, and assuming at least a 5% base salary and Bonus target deferral into the plan, this
would result in an annual company match of $10,400. Company matching contributions and earnings are always 100% vested.
		
	 A&F Non-Qualified

Savings Plan
	  	After 30 days of employment, you will be eligible to participate in the Abercrombie & Fitch Co. Non-Qualified Savings Plan. This plan will allow you to defer up to 75% of your base salary each year, and up to 75% of your Bonus
payouts. The company will match the first 3% that you defer on a dollar for dollar basis. At the base salary and Bonus target quoted in this offer, this would result in a company match of $67,163 on a 3% base and Bonus target deferral. Company
contributions and earnings vest 100% after 5 years of continuous service on the anniversary date of employment.
		
	Healthcare Coverage	  	After one month of employment you will be eligible to participate in our Healthcare Benefit plans. The current associate contribution required for these benefits is as follows:

  

					
	 	  	 Medical/Dental
	  	Vision
	 Single Coverage
	  	$ 31.95 bi-weekly	  	$ 2.20 bi-weekly                            
	 Single (+) One
	  	$ 66.95 bi-weekly            	  	$ 4.40 bi-weekly
	 Family Coverage
	  	$ 103.95 bi-weekly	  	$ 6.80 bi-weekly

			
		
	Life & Disability Insurance	  	After one month of employment, you will automatically be enrolled in A&F’s Life & Disability Insurance plans.
		
	Flexible Spending Account (FSA)	  	After one month of employment, you will be eligible to participate in A&F’s Flexible Spending Account (FSA) plan. FSAs allow you to save money by paying for certain healthcare and childcare expenses with pre-tax dollars via
automatic payroll deductions.
		
	 Associate Assistance

Program (AAP)
	  	After one month of employment, you will automatically be enrolled in A&F’s AAP. The AAP gives you or any covered dependents access to free, confidential psychological, financial or legal counseling through our AAP provider.
Up to 8 free visits, per specific issue, are available through the AAP.
		
	A&F Gym	  	Effective upon hire, you will be eligible to join The A&F Gym, our state of the art 8,000 square foot on-site fitness facility. The cost of membership is only $5.00 per bi-weekly pay period, which is paid via automatic payroll
deduction after you enroll.
		
	Merchandise Discount	  	You will receive a discount of 40% on qualifying purchases at all Abercrombie & Fitch and abercrombie stores. You will also receive a discount of 30% on qualifying purchases at all Hollister Co. stores.
		
	Vacation/Personal Holidays	  	You will be eligible for 25 vacation days and 3 personal days per fiscal year. Vacation and personal days will be pro-rated for the first year based on your start date. The Company also grants 5 sick days and 7 paid holidays to all
Home Office associates annually.
		
	Indemnification	  	A&F shall indemnify, defend, and hold you harmless to the maximum extent permitted by law and the A&F by-laws against all judgments, fines, amounts paid in settlement and all reasonable expenses, including attorneys’
fees incurred by you, in connection with the defense of or as a result of any action or proceeding (or any appeal from any action or proceeding) in which you are made or are threatened to be made a party by reason of the fact that you are or were an
officer or director of A&F. Subject to the terms of the A&F D&O policies then in effect, A&F acknowledges that you will be covered and insured up to the full limits provided by all directors’ and officers’ insurance which
A&F then maintains to indemnify its directors and officers.

			
		
	Section 409A	  	To the extent applicable, this offer letter shall incorporate the terms and conditions required by Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) and this offer letter is consistent with
Section 409A and Department of Treasury regulations and other interpretative guidance issued hereunder, including without limitation any such regulations or other guidance that may be issued after the date of this offer letter.
		
	Background Inquiry	  	This offer of employment is contingent on the successful completion of background and reference checks.

 This offer, if accepted, is for employment with the Company that is at-will, and nothing in this offer letter is to be
construed as altering that at-will status or promising employment for a definite term. 
 Fran, we look forward to working with you and are convinced that
you will be an outstanding addition to the A&F team. To indicate your acceptance of this offer, please sign below and return this letter to Human Resources. 
  

					
	 Sincerely,
  
	  		  	
			
	 /s/ Michael Jeffries
	  	 /s/ Ron Grzymkowski
	  	
	Michael Jeffries	  	Ron Grzymkowski	  	
	Chief Executive Officer	  	Senior Vice President	  	
		  	Human Resources	  	

 I have disclosed to you the document entitled “Confidentiality, Non-Solicitation of Associates and Non-Competition
Agreement” that I entered into with Ann Taylor, Inc. in or about October 2013. I represent that, with the exception of that document, I am not subject to any restriction, covenant or limitation with any prior employer which could be construed
as preventing me from working for Abercrombie & Fitch in the capacity described in this offer letter. I further represent that to the extent I am subject to an agreement that allows me to work for Abercrombie & Fitch, but that
forbids me to solicit employees of another company or to share another company’s confidential information, I agree that I will not breach any such agreement while employed by Abercrombie & Fitch. I accept Abercrombie &
Fitch’s offer of employment as outlined in this letter, and I am returning a signed copy to Human Resources. 
  

					
	 /s/ Fran Horowitz Bonadies
	  		  	October 9, 2014
	Fran Horowitz	  		  	Date

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