Document:

Exhibit 10.10

 Exhibit 10.10 
 2012 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS 2012
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 25th day of January, 2012, by and among Heritage Bankshares, Inc., a Virginia corporation (hereinafter referred to as “Bankshares”), Heritage Bank, a Virginia corporation (the “Bank”), and
Michael S. Ives (the “Executive”), and replaces and supersedes in its entirety the prior employment agreement among Bankshares, the Bank and the Executive, dated February 7, 2005, as subsequently amended. 

RECITALS 

Bankshares desires to employ Executive on the terms and conditions set forth herein, and Executive desires to be employed under the terms
and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and for other
good and valuable consideration, the receipt and adequacy whereof each party hereby acknowledges, Bankshares and Executive hereby agree as follows: 
 1. DEFINITIONS: Except as otherwise expressly provided in this Agreement, the following terms shall have the following meanings for all purposes of this Agreement: 

(a) Accounting Firm means Bankshares’ independent accounting firm immediately prior to a Change of Control or otherwise
approved by Bankshares under Section 10(d) below. 
 (b) Base Salary means the annual compensation specified in
Section 4 below. 
 (c) Cause means any of the reasons listed in Section 9(d) below for which this Agreement
may be terminated or Executive may be discharged prior to the end of the Term hereof. 
 (d) Change of Control means a
change in the ownership or effective control of Bankshares or in the ownership of a substantial portion of the assets of Bankshares and shall be deemed to have occurred upon the occurrence of any of the following events. 

(i) The acquisition by any “person” or “group” (as defined in or pursuant to Sections 13(d) and 14(d) of the
Exchange Act) (other than Bankshares, any Subsidiary or any Bankshares 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 Bankshares
representing thirty-five percent (35%) or more of either the then outstanding shares or the combined voting power of the then outstanding securities of Bankshares, but excluding for this purpose any such acquisition by any corporation with
respect to which, following the acquisition, the outstanding common stock of Bankshares immediately prior thereto continues to represent (either by remaining outstanding or being converted into

 
common stock of the surviving entity or a parent or affiliate thereof) more than fifty percent (50%) of the outstanding common stock of Bankshares or such surviving entity or a parent or
affiliate thereof outstanding immediately after the acquisition; 
 (ii) Either a majority of the directors of Bankshares
elected at Bankshares’ annual stockholders meeting shall have been nominated for election other than by or at the direction of the “incumbent directors” of Bankshares, or the “incumbent directors” shall cease to constitute a
majority of the directors of Bankshares. The term “incumbent director” shall mean any director who was a director of Bankshares on the date of this Agreement and any individual who becomes a director of Bankshares subsequent to the date of
this Agreement and who is elected or nominated by or at the direction of at least two-thirds of the then incumbent directors; 

(iii) The shareholders of Bankshares approve (x) a merger, consolidation or other business combination of Bankshares with any other
“person” or “group” (as defined in or pursuant to Sections 13(d) and 14(d) of the 1934 Act) or affiliate thereof, other than a merger or consolidation that would result in the outstanding common stock of Bankshares 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) more than fifty percent (50%) of the outstanding common stock of Bankshares
or such surviving entity or a parent or affiliate thereof outstanding immediately after such merger, consolidation or other business combination, or (y) a plan of complete liquidation of Bankshares or an agreement for the sale or disposition by
Bankshares of all or substantially all of Bankshares’ assets; 
 (iv) A Change of Control as defined in Section 280G
of the Code; or 
 (v) Any other event or circumstance which is not covered by the foregoing subsections but which the Board of
Directors of Bankshares determines to affect control of Bankshares and with respect to which the Board of Directors adopts a resolution that the event or circumstance constitutes a Change of Control for purposes of this Agreement. 

The date of a Change of Control described herein is the date on which an event described above in this Section 1(d) occurs.

 Notwithstanding the foregoing, a Change in Control shall be deemed to occur under the this Agreement only to the extent any
triggering business transaction constitutes a change in the ownership or effective control of Bankshares, or in the ownership of a substantial portion of the assets of Bankshares, as determined under Code Section 409A and Treasury Regulations
issued thereunder from time to time. 
 (e) Code means the Internal Revenue Code of 1986, as amended. 

(f) Exchange Act means the Securities Exchange Act of 1934, as amended. 

  
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 (g) Excise Tax means the excise tax imposed by Section 4999 of the Code,
together with any interest or penalties imposed with respect to that tax. 
 (h) Good reason means the occurrence of any
of the conditions listed in Section 9(f) below which is followed by the resignation of Executive within twelve (12) months after such occurrence. 
 (i) Gross-Up Payment means an amount paid to Executive with respect to the Excise Tax pursuant to Section 10(f). 
 (j) Health Coverage Continuation means continuation of Executive’s health insurance benefits coverage as described in Section 7 below and to the extent provided in Section 9 below
until Executive attains age sixty-five (65). This Health Coverage Continuation is subject to Executive’s payment of the cost of coverage at the rate that is in effect from time to time for continuation coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (“COBRA”), or if greater, the rate charged for Executive’s coverage under any applicable insurance policy. Bankshares shall use its best efforts to continue Executive’s health
insurance coverage, including, but not limited to, creating a new class of covered employees, consultants or retirees which includes the Executive, but in its efforts, Bankshares shall not be required to extend coverage to employees (other than
Executive) who have terminated employment with Bankshares or any Subsidiary. 
 (k) Payment means any payment or
distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of Executive, whether paid or payable pursuant to this Agreement or otherwise pursuant to any plan, agreement or
understanding between Executive and Bankshares. 
 (l) Protected Customer shall mean any person, business or entity who
or which: 
 (i) Was known by Executive to have purchased products or services from Bankshares, the Bank or any Subsidiary
other than the Bank during the two-year period immediately preceding Executive’s last day of employment with the Bank; or 

(ii) Purchased products or services from Bankshares, the Bank or any Subsidiary other than the Bank during the two-year period
immediately preceding Executive’s last day of employment with the Bank, and about whom Executive had access to confidential or proprietary information during this period; or 

(iii) Was known by Executive to have received (during the one-year period prior to Executive’s last day of employment with the
Bank) but not yet acted upon a proposal by Bankshares, the Bank or any Subsidiary other than the Bank for the purchase of products or performance of services. 

  
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 (m) Resignation for good reason means resignation by Executive in accordance with the
provisions of Section 9(f) below. 
 (n) Restricted Period means the Term of this Agreement and the period
thereafter ending on the later of (1) twelve (12) months after Executive’s resignation or other voluntary termination of employment pursuant to Section 9(c) below or Executive’s termination for cause pursuant to
Section 9(d) below; or (2) the end of any period during which Executive’s Base Salary is continued after his termination of employment with Bankshares. 
 (o) Severance pay means an amount paid to Executive pursuant to Section 10(a) in the event he is terminated without cause following a Change of Control or resigns for good reason following a
Change of Control. 
 (p) Subsidiary means any entity at least a majority of the outstanding equity interests of which
are owned by Bankshares, either directly or through one or more other Subsidiaries, and any other entity controlled, directly or indirectly, by Bankshares or any other Subsidiary, including, but not limited to, the Bank. 

(q) Term means the term of this Agreement specified in Section 3 below, and all renewals and extensions thereof. 

(r) Termination for cause means discharge of Executive prior to the end of the Term in accordance with the provisions of
Section 9(d) below for any of the reasons listed therein. 
 (s) Termination without cause means discharge of
Executive prior to the end of the Term in accordance with the provisions of Section 9(e) below. 
 2. EMPLOYMENT:

 (a) During the Term, Executive shall be employed as the President and Chief Executive Officer of Bankshares and the Bank and
shall perform such services for Bankshares and/or one or more Subsidiaries as may be assigned to Executive by Bankshares from time to time upon the terms and conditions hereinafter set forth. Executive’s services shall be rendered in a chief
executive capacity and shall be of the type for which Executive is suited by background and training. Executive’s duties shall include Executive’s serving as a director of Bankshares and the Bank for which Executive shall not be
compensated except pursuant to Executive’s compensation under this Agreement. Executive agrees that, during the Term of Executive’s employment under this Agreement, he will devote his full business time and energy to the business, affairs
and interests of Bankshares and serve diligently and to the best of his ability. Executive may serve as a director, trustee or officer of other corporations and entities, including without limitation charitable organizations, and engage in other
activities (including without limitation service with the Virginia Bankers Association) to the extent those activities and services do not inhibit the performance of Executive’s duties hereunder or conflict with the business of Bankshares or
any Subsidiary or any other affiliate of Bankshares or a Subsidiary. 

  
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 (b) References in this Agreement to services rendered for Bankshares and compensation,
benefits, indemnification and liability insurance payable or provided by Bankshares shall include services rendered for and compensation, benefits, indemnification and liability insurance payable or provided by any Subsidiary, and references in this
Agreement to “Bankshares” shall mean and refer to each “Subsidiary” for which Executive performs services, as the context may require. 
 3. TERM: The Term of this Agreement shall begin on the date of this Agreement and end on January 31, 2018. 
 4. BASE SALARY: Executive shall receive Base Salary at the rate of $400,000 per year for each calendar year of the Term, pro rated for any partial years. Base Salary shall be payable in
substantially equal installments no less frequently than monthly (less any amounts withheld as required by law or pursuant to any benefits plan). 
 5. ANNUAL INCENTIVE BONUS: Executive shall have the opportunity to earn an annual incentive bonus during each calendar year in the Term. Executive’s bonus, if any, shall be based upon
Executive’s performance during the applicable year as determined by the Board of Directors of Bankshares in its sole discretion on the basis of such performance factors as it deems appropriate, and any such bonus shall be no greater than 35% of
Executive’s Base Salary paid during the applicable year. The annual incentive bonus, if any, shall be paid to the Executive in a single lump sum no later than March 15th of the calendar year following the applicable performance year, subject to applicable tax withholding. 

6. RESTRICTED STOCK AWARD: Pursuant to Bankshares’ 2006 Equity Incentive Plan, Bankshares shall award to Executive a total of
16,100 shares of restricted Bankshares’ common stock, effective February 1, 2012. Bankshares and Executive shall enter into a restricted stock award agreement containing the material terms and conditions that govern such restricted stock
award, including, but not limited to, the vesting schedule for such shares of restricted stock. 
 7. OTHER BENEFITS AND
REIMBURSEMENTS: During the Term of employment under this Agreement, Executive shall participate or be entitled to participate in any pension, group insurance, hospitalization, incentive or deferred compensation and other benefit or compensation
plans of Bankshares presently in effect or hereafter adopted and generally available to all employees of senior executive status; provided, that Executive’s eligibility for any annual incentive bonus shall be governed by Section 5 above,
and Executive’s restricted stock award referenced above in Section 6 shall be governed by the 2006 Equity Incentive Plan and Executive’s restricted stock award agreement. Executive shall also be entitled to any additional
compensation, benefits or perquisites, if any, that may be provided specifically to or for Executive by Bankshares from time to time. During the Term, to the extent that Executive’s expenditures are substantiated by Executive as required

  
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by corporate policies, Executive shall be reimbursed promptly for all expenditures (including travel, entertainment, parking and business meetings) made in pursuance and furtherance of the
business and good will of Bankshares. Bankshares acknowledges that Executive’s principal duties include his serving as the face of Bankshares and its Subsidiaries to the community, and thus that Executive can be anticipated to incur and shall
be reimbursed for substantial expenditures arising from Executive’s marketing efforts. Bankshares further acknowledges that Executive’s civic involvement is of importance to its business and goodwill. Executive may employ Bankshares’
property, materials and personnel in community, cultural and similar matters, and in addition, in incidental private personal matters, subject in all cases to any reasonable limitations that the Board of Directors of Bankshares may prescribe.
Without limiting the foregoing, Executive shall be entitled to the following benefits and perquisites: 
 (a)(i) Executive shall
be entitled to six (6) weeks paid vacation per year, and Executive may accrue and carry over unused vacation time from year to year during the Term. Executive may accelerate one (1) week of paid vacation to a year from the next following
year. Executive shall be paid for his accrued and unused vacation time upon termination of employment for any reason. 
 (ii)
Executive shall accrue sick leave at the rate of 1.5 days of sick leave per month worked during the Term of this Agreement. Executive may carry over unused sick leave from year to year during the Term. Executive shall be paid for his accrued and
unused sick leave upon termination of employment for any reason. 
 (iii) The parties acknowledge and agree that, in addition
to the vacation time and sick leave that Executive will accrue during the Term of this Agreement, Executive’s accrued and unused vacation time and sick leave on Bankshares’ applicable books/records as of the date of this Agreement shall
remain on such books/records and shall be available for use by Executive until it is used by or otherwise paid out to Executive in accordance with the terms of this Agreement. 
 (b) During the Term, Bankshares shall provide Executive with (1) a $500 monthly automobile allowance; (2) payment of Executive’s membership dues at the Town Point Club and at the Town
Center City Club; and (3) a personal laptop computer for his exclusive use. 
 (c) Executive’s reasonable expenses for
attendance at meetings of the Virginia Bankers’ Association and similar trade groups shall be reimbursed by Bankshares. Executive’s time and attendance at any such meetings and at functions promoted or sponsored by other civic endeavors as
are approved by Bankshares’ Board of Directors, shall be considered as performance of the Executive’s duties and shall not be treated as a use of Executive’s vacation time, even if such meetings or functions span multiple days and are
held in locations outside of South Hampton Roads. 

  
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 (d) Executive shall be provided the services of an Executive Assistant. The duties of the
Executive Assistant shall include assisting the Executive with his duties as Chief Executive Officer, President and Director, his charitable and civic obligations, and incidental personal items. 

8. INDEMNIFICATION: 
 (a) Bankshares, the Bank and any Subsidiary other than the Bank for which Executive provides services shall indemnify and hold Executive harmless from and against all liability and expense resulting from
(1) all acts or omissions of Executive while acting in the capacity of a director, officer, trustee, or fiduciary and/or employee of Bankshares, the Bank and any such Subsidiary during Executive’s employment as such director, officer,
and/or employee and (2) acts or omissions of Bankshares, the Bank and any such Subsidiary occurring or alleged to have occurred during or prior to Executive’s employment, on terms and conditions no less favorable to Executive than the
terms and conditions providing for indemnification of officers and directors under the Articles or Certificate of Incorporation and the Bylaws of Bankshares, the Bank and each such Subsidiary as in effect on the date of this Agreement. If the
Articles or Certificate of Incorporation or the Bylaws of Bankshares, the Bank and/or any such Subsidiary are hereafter amended to provide officers and directors with broader or greater rights of indemnification, Bankshares, the Bank and each such
Subsidiary acknowledge and agree that Executive shall be indemnified and held harmless under such broader or greater rights of indemnification and, further, that in no event shall Executive be entitled to any lesser rights of indemnification than
would be available to Executive under such Articles or Certificate of Incorporation and/or Bylaws on the date of this Agreement. 
 (b) To the maximum extent permitted by applicable law as in effect on the date of this Agreement and without abridging or limiting the right of indemnification provided under Section 8(a) above,
Bankshares, the Bank and each Subsidiary other than the Bank for which Executive provides services shall indemnify and hold Executive harmless from and against all liability and expense resulting from (1) all acts or omissions of Executive
while acting in the capacity of a director, officer, trustee, fiduciary and/or employee of Bankshares, the Bank and any such Subsidiary during Executive’s employment as such officer and director and (2) acts or omissions of Bankshares, the
Bank and any such Subsidiary occurring or alleged to have occurred during or prior to Executive’s employment. 
 (c) If
applicable laws relating to the indemnification of officers and directors (including, without limitation, the rules and regulations of the appropriate primary federal or state banking agency for Bankshares, the Bank and any Subsidiary other than the
Bank for which Executive provides services) are hereafter amended to provide officers and directors with broader or greater rights of indemnification than is provided under Section 8(a) or Section 8(b) above, Bankshares, the Bank and each
Subsidiary other than the Bank for which Executive provides services acknowledge and agree that Executive shall be indemnified and held harmless under such broader or greater rights of indemnification and, further, that in no event shall Executive
be entitled to any lesser rights of indemnification 

  
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than are presently available to Executive under Section 8(a) or Section 8(b) above on the date of this Agreement. Bankshares, the Bank and Executive further acknowledge and agree that
it is the intention of the parties that Executive shall be entitled to indemnification as set forth under Section 8(a) and Section 8(b) above to the greatest extent possible under either the Articles or Certificate of Incorporation and the
Bylaws of Bankshares, the Bank and each Subsidiary other than the Bank for which Executive performs services or applicable law as in effect on the date of this Agreement or as hereafter amended from time to time to provide broader or greater rights
of indemnification. 
 (d) The Bank shall carry Directors and Officers Liability Insurance in such amounts as the Bank in its
discretion deems appropriate, and any payments made under such policy to Executive or on Executive’s behalf shall be offset against the indemnification obligation set forth in Section 8(a), Section 8(b) and Section 8(c) above.

 (e) Notwithstanding the foregoing, (1) the indemnification provided by Section 8(a), Section 8(b) and
Section 8(c) above shall not apply, and Executive shall not be indemnified, with respect to any acts or omissions which constitute wanton or willful misconduct or willful gross negligence; and (2) the indemnity obligation set forth in this
Section 8 shall be subject to the prohibitions and limitations established by applicable law and as set forth in applicable regulations adopted by any federal or state bank regulatory agency having jurisdiction over Bankshares, the Bank or any
Subsidiary other than the Bank for which Executive performs services. 
 (f) The provisions of this Section 8 shall survive
termination of this Agreement. 
 9. TERMINATION: Executive’s employment under this Agreement may be terminated
under any of the following conditions. 
 (a) Disability: If Executive is unable to perform the essential functions of
Executive’s job (as described in this Agreement) on a full-time basis for a period of six (6) consecutive months (or for such shorter period ending with Executive’s eligibility for and receipt of long-term disability benefits under an
insurance policy or employee benefit plan provided or made available to Executive by Bankshares) by reason of illness or other physical or mental disability, Bankshares shall have the right to terminate Executive’s employment under this
Agreement by giving Executive thirty (30) days written notice thereof. If Executive’s employment is so terminated, Executive shall be paid any salary and benefits to which Executive may be entitled until the end of the payroll period in
which the date of termination occurs, and thereafter, Bankshares shall have no further obligation for additional compensation and benefits under this Agreement, except that Executive shall be entitled to Health Coverage Continuation and to payment
for accrued and unused vacation and sick leave. A condition of disability shall be determined by the Board of Directors of Bankshares on the basis of competent evidence. A written opinion of a licensed physician certified in his field of
specialization and acceptable to the Board, or Executive’s entitlement to or receipt of long-term disability benefits under any insurance policy or employee benefit plan provided or made available to Executive by Bankshares or under Federal
Social Security law, shall be conclusive evidence of disability. 

  
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 (b) Death: In the event of Executive’s death during the Term of this Agreement,
Executive’s estate, legal representatives or named beneficiaries (as directed by Executive in writing) shall be paid compensation at the rate in effect at the time of Executive’s death for a period of one (1) month after the date of
Executive’s death and shall be paid for accrued and unused vacation and sick leave. Such additional compensation and accrued and unused leave payments shall be made in a single lump sum within 30 days from Executive’s date of death.

 (c) Resignation By Executive: If Executive resigns or voluntarily leaves the employ of Bankshares, other than under
circumstances treated as resignation for good reason, then Executive shall be in breach of this Agreement and, without limiting the generality of the foregoing, the obligations of Bankshares to Executive shall terminate, except for the obligation to
pay any accrued and unpaid salary, vacation and sick leave as of the date of such resignation and to provide Health Coverage Continuation. Notwithstanding the preceding sentence, if Executive resigns or voluntarily leaves the employ of Bankshares
after attaining age fifty-five (55) and having provided Bankshares not less than ninety (90) days written notice thereof, other than under circumstances treated as resignation for good reason, Executive shall not be in breach of this
Agreement, and Bankshares shall have no further obligation for additional compensation and benefits under this Agreement, except that Executive shall be entitled to Health Coverage Continuation and to payment for accrued and unused vacation and sick
leave. 
 (d) Termination For Cause: The Board of Directors of Bankshares may, in its sole discretion and after
compliance with the notice and hearing procedures contained in this Section 9(d), terminate Executive’s employment for breach upon the occurrence of any of the following: 

(i) Continued and willful neglect by Executive of Executive’s duties for or on behalf of Bankshares or any of its Subsidiaries;

 (ii) Executive’s willful disregard of the directions of Bankshares’ Board of Directors in a matter material to the
operations of Bankshares; 
 (iii) Willful misconduct of Executive in connection with the performance of any of
Executive’s duties, including, by way of example, but not limitation, misappropriation of funds or property of Bankshares or its Subsidiaries or a Subsidiary’s depositors or borrowers, securing or attempting to secure personally any profit
in connection with any transaction entered into on behalf of Bankshares or its Subsidiaries to the prejudice of Bankshares or its Subsidiaries; 
 (iv) Conduct by Executive which results in Executive’s suspension and/or temporary prohibition or removal and/or permanent prohibition from participation in the conduct of the affairs of Bankshares
or a Subsidiary pursuant to the rules and regulations of the primary federal or state banking agency for Bankshares or the Subsidiary or any other federal or state banking agency having regulatory jurisdiction over Bankshares or the Subsidiary;

  
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 (v) Conviction of Executive of a felony or any misdemeanor involving moral turpitude;

 (vi) Willful violation of any code of conduct or standards of ethics applicable to employees of Bankshares that results in
material and demonstrable damage to the business or reputation of Bankshares; or 
 (vii) The issuance of a permanent
injunction or similar remedy against Executive preventing Executive from executing or performing all or part of this Agreement. 
 Executive shall not be terminated for cause unless and until (x) there shall have been delivered to Executive a notice of termination from Bankshares (after reasonable notice to Executive and an
opportunity for Executive, together with Executive’s counsel, to be heard before Bankshares’ Board of Directors) accompanied by a resolution duly adopted by a majority of the directors (other than Executive) of Bankshares then in office,
finding that, in the good faith opinion of such directors, cause (as set forth above in this Section 9(d)) exists and specifying the particulars thereof in detail, and (y) Executive shall have failed to cure any such cause within thirty
(30) days after Executive’s receipt of the notice of termination. Nothing in such notice or such resolution or specifications shall be used by Executive as grounds for any claim (A) against any director who acts in good faith in
connection therewith or (B) against Bankshares unless one or more of the directors voting for such resolution has acted in bad faith in connection therewith (but nothing herein shall preclude Executive from contesting any allegation or finding
that cause existed or from pursuing any available remedy against Bankshares for breach of this Agreement). 
 If
Executive’s employment is terminated for cause or Bankshares has cause for termination and Executive voluntarily resigns, Executive shall not be entitled to any further compensation or benefits under this Agreement other than payment for
accrued and unused vacation and sick leave. Moreover, nothing in this Section 9 is intended to have any effect on any rights that are vested. 
 Notwithstanding anything herein to the contrary, except as “willful” may be otherwise defined by the rules and regulations of the primary federal or state banking agency for each such Subsidiary
or any other federal or state banking agency having regulatory jurisdiction over each such Subsidiary, (x) no act or failure to act on Executive’s part shall be considered “willful” unless done, or omitted to be done, by
Executive in bad faith and without reasonable belief that Executive’s action or omission was in the best interest of Bankshares and/or each bank Subsidiary for which Executive performs services, and (y) no failure to act on
Executive’s part shall be considered “willful” if such failure is a result of a condition of disability within the meaning of Section 9(a) of this Agreement. 

  
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 (e) Termination Without Cause: The Board of Directors of Bankshares may, in its sole
discretion, terminate Executive’s employment under this Agreement without cause at any time in any lawful manner on not less than thirty (30) days written notice to Executive. In the event of such termination: (i) Executive shall be
paid accrued and unused vacation and sick leave as of the date of termination, (ii) Executive shall continue to be paid, during the remainder of the Term that follows such termination, the Base Salary that Executive is entitled to receive as of
the date Executive is terminated without cause, and (iii) Executive shall be entitled to Health Coverage Continuation. Bankshares’ payment of such salary described in this Section 9(e) shall be contingent upon Executive executing and
delivering Bankshares’ standard form Release Agreement within thirty (30) days after the date of such termination, not revoking the Release Agreement and complying with the terms of the Release Agreement. Nothing in this Section shall
affect Executive’s rights to receive any benefit which has been earned but not paid with respect to Executive’s performance prior to the date of such termination. The salary and Health Coverage Continuation described in this
Section 9(e) will be due Executive regardless of any subsequent employment attained by Executive which is not in violation of this Agreement or the Release Agreement. 
 Notwithstanding the foregoing provisions of this Section 9(e), Bankshares shall not terminate Executive’s employment without cause (nor shall any decision previously made to terminate
Executive’s employment without cause be effective) during any period of time when Bankshares has knowledge that any person, entity or concern, whether acting independently, as part of a group or in concert with any other person, entity or
concern, has taken steps reasonably calculated to effect a Change of Control of Bankshares until, in the opinion of the Board of Directors of Bankshares, such person, entity or concern has abandoned or terminated such efforts to effect a Change of
Control. Any good faith determination by the Board of Directors of Bankshares that any such person, concern or entity has abandoned or terminated such efforts to effect a Change of Control shall be conclusive and binding on Executive. Such
determination shall be promptly communicated to Executive in writing by the Secretary of Bankshares. 
 (f) Resignation For
Good Reason: 
 (i) Executive may resign for good reason upon the occurrence of any of the following conditions: 

(a) Without Executive’s express written consent, Bankshares requires Executive to render services other than as chief executive
officer of the parent company and its principal operating subsidiary; 
 (b) A reduction by Bankshares of Executive’s Base
Salary or a reduction by Bankshares of Executive’s annual incentive bonus opportunities under Section 5 above or his restricted stock award under Section 6 above; 

(c) Any material breach of this Agreement by Bankshares; or 

  
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 (d) A Change of Control. 
 The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting good reason. 

(ii) Resignation for good reason shall be effected by delivering to Bankshares, within twelve (12) months after the occurrence of
one of the conditions described above, a written notice specifying a date for termination of employment which is not less than thirty (30) days after the date of the notice or more than ninety (90) days after the date of the notice. The
notice shall also state that Executive is resigning for good reason as contemplated by this Section 9(f) and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for resignation for good reason hereunder.
If within the notice period Bankshares cures or corrects any circumstances providing a basis for resignation for good reason, Executive shall not be entitled to resign for good reason. 

(iii) If Executive resigns for good reason at any time after the date of this Agreement (other than a resignation for good reason within
twelve (12) months after a Change of Control), then Executive shall continue to be paid, during the remainder of the Term that follows such resignation, the Base Salary that Executive is entitled to receive as of the date of the notice
announcing Executive’s resignation, and Executive shall be entitled to Health Continuation Coverage; provided that nothing in this Section 9(f) shall affect Executive’s rights to receive any benefit which has been earned but not paid
with respect to Executive’s performance prior to the date of termination. Bankshares’ payment of such salary described in this Section 9(f) shall be contingent upon Executive executing and delivering Bankshares’ standard form
Release Agreement within thirty (30) days after the date of such termination, not revoking the Release Agreement and complying with the terms of the Release Agreement. The salary and benefits described in this Section 9(f) shall be due
Executive regardless of any subsequent employment attained by Executive which is not in violation of this Agreement or the Release Agreement. 
 10. CHANGE OF CONTROL: Notwithstanding the provisions of Section 9 of this Agreement, if during the Term of this Agreement and within twelve (12) months after a Change of Control of
Bankshares, either Executive’s employment is terminated without cause or Executive resigns for good reason, in either case, Bankshares shall provide to Executive the following severance benefits: 

(a) Bankshares shall pay to Executive, in lieu of the compensation specified in Sections 9(e) and 9(f), severance pay (subject to
any applicable payroll or other taxes required to be withheld) equal to 2.99 times Executive’s average annual compensation from Bankshares and its Subsidiaries includable in Executive’s gross income for federal income tax purposes for
Executive’s most recent five (5) taxable years ending before the date on which the Change of Control occurs. For purposes of the preceding sentence, average annual compensation shall be determined in accordance with principles under
Section 280G of the Code. Severance pay shall be paid in cash (except to the extent that Executive and Bankshares agree that it shall be paid in other property) and shall be paid in one lump sum on or before Executive’s last day of
employment, subject to Section 22 of this Agreement. 

  
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 (b) Bankshares shall pay to Executive in a lump sum on or before Executive’s last day
of employment the amount of Executive’s accrued vacation and sick leave determined on the basis of his Base Salary then in effect or, if greater, in effect immediately preceding the Change of Control. 

(c) Bankshares shall provide Executive with Health Coverage Continuation. 

(d) If any Payment to or in respect of Executive is determined to be subject to the Excise Tax, then Executive shall be entitled to
receive an additional Gross-Up Payment in an amount such that, after payment by Executive of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. The Accounting Firm shall make all determinations
required to be made under this Section 10, including whether and when a Gross-Up Payment is required, the amount of any such Gross-Up Payment and the assumptions to be utilized in arriving at such determination (except that Executive’s
Federal and state income taxes shall be assumed to be at the maximum marginal rates). In the event that the Accounting Firm is serving as accountant or auditor to the individual, entity or group effecting the Change of Control, unless otherwise
agreed in writing by Executive, Bankshares shall appoint another independent accounting firm reasonably acceptable to Executive to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm
hereunder). All fees and expenses of the Accounting Firm shall be borne solely by Bankshares. The Gross-Up Payment shall be paid to Executive concurrently with any payment of any Excise Tax (and/or any interest or penalties) by or for Executive to
the Internal Revenue Service in an amount equal to such Excise Tax payment with respect to which the Accounting Firm opines as to the liability and amount of the Excise Tax payment after the earlier of (x) the assertion of the liability
therefor by the Internal Revenue Service, (y) the final determination by a court of competent jurisdiction of the liability therefor, or (z) the receipt of an opinion of Executive’s accountant of the liability therefor. Any such
opinion of the Accounting Firm or Executive’s accountant shall be based upon the regulations under Sections 280G and 4999 of the Code and shall be supported with substantial authority as defined in Section 6661 of the Code and the
regulations thereunder, but in any event shall be consistent with any final determination by a court of competent jurisdiction of the Executive’s liability therefor. If any such opinion applies only to part of the Payments, Bankshares shall pay
Executive the Gross-Up Payment with respect to that part of the Payments covered by the opinion. Executive agrees (unless requested otherwise by Bankshares) to use reasonable efforts to contest in good faith any subsequent determination by the
Internal Revenue Service that Executive owes an amount of Excise Tax greater than the amount determined above; provided, that Executive shall be entitled to reimbursement by Bankshares of all fees and expenses reasonably incurred by Executive in

  
 13 

 
contesting such determination under this Section 10(d). In the event the Internal Revenue Service or any court of competent jurisdiction determines that Executive owes an amount of Excise
Tax that is either greater or less than the amount previously taken into account in the Gross-Up Payment paid under this Section 10, Bankshares shall promptly pay to Executive, or Executive shall promptly repay to Bankshares, as the case may
be, the amount of resulting shortfall or excess in the Gross-Up Payment. Any payment that Bankshares is required to make to Executive pursuant to the preceding sentence shall include an additional amount such that after payment by Executive of all
of Executive’s applicable Federal, state and local taxes on such additional amount, Executive shall retain an amount equal to the total of Executive’s applicable Federal, state and local taxes arising due to the later Payment.
Notwithstanding anything to the contrary in the foregoing, Executive agrees that Bankshares may, at Bankshares’ expense, contest any determination by the Internal Revenue Service regarding any Excise Tax assessed as a result of any payment to
or in respect of Executive, and subject to the following proviso Bankshares will not be required to make any Gross-Up Payment to Executive until such time as the matter is resolved by the Internal Revenue Service or by a final decision of a court of
competent jurisdiction; provided, if Bankshares contests any determination by the Internal Revenue Service regarding the assessment of any such Excise Tax and, prior to the resolution or final decision of such contest, Executive is required
to and does pay to the Internal Revenue Service such Excise Tax, then Bankshares shall be required to make the corresponding Gross-Up Payment to Executive, but such Gross-Up Payment shall be subject to repayment and shall be repaid by
Executive to the extent (i.e., in the corresponding amount) that Bankshares prevails in its contest of the determination regarding such Excise Tax. 
 (e) If Executive collects any part or all of the severance pay provided under this Section 10 by or through a lawyer or lawyers, following a Change of Control and a dispute with Bankshares regarding
the terms of this Section 10 and any related provision of this Agreement, Bankshares shall pay all costs of any such collection or enforcement, including reasonable legal fees and other out of pocket expenses incurred by the Executive, up to
that point when Bankshares offered to settle the dispute for an amount equal to the amount that Executive is entitled to recover. 
 (f) The payments described in this Section 10 shall be due Executive regardless of any subsequent employment obtained by Executive. 

11. NONCOMPETITION, NONSOLICITATION AND NONDISCLOSURE: 
 (a) Non-Competition: Except as otherwise provided in Section 11(e) below, during the Restricted Period, Executive shall not: 

(i) Provide services to a competitor of Bankshares or the Bank if such services are the same as or similar to the services performed by
Executive for Bankshares, the Bank or a Subsidiary other than the Bank. 

  
 14 

 (ii) Provide services to a competitor of Bankshares or the Bank if these services involve
the supervision or management of employees or other agents who provide services which are the same as or similar to the services performed by Executive for Bankshares, the Bank or a Subsidiary other than the Bank. 

(iii) Provide services to a competitor of Bankshares or the Bank if Executive’s performance of such services would be rendered less
difficult through Executive’s use, misappropriation, or disclosure of Bankshares’, the Bank’s or any Subsidiary other than the Bank’s confidential information, proprietary information, or trade secret information to which
Executive had access during Executive’s employment with Bankshares, the Bank or a Subsidiary other than the Bank. 
 The
restrictions contained in this Section 11(a) shall only prohibit Executive from providing services in South Hampton Roads (that is, the cities of Norfolk, Portsmouth, Chesapeake, Virginia Beach and Suffolk, Virginia) for a business or entity
which has a location within South Hampton Roads and competes with Bankshares or the Bank. 
 (b) Non-Solicitation of
Employees: Except as otherwise provided in Section 11(e) below, during the Restricted Period, Executive shall not induce or attempt to induce any employee of Bankshares, the Bank or any Subsidiary other than the Bank to leave such
employee’s position with Bankshares, the Bank or any Subsidiary other than the Bank to become associated with a business which competes with Bankshares, the Bank or any Subsidiary other than the Bank. 

(c) Non-Solicitation of Customers: Except as otherwise provided in Section 11(e) below, during the Restricted Period,
Executive shall not: 
 (i) Induce or attempt to induce any Protected Customer of Bankshares, the Bank or any Subsidiary other
than the Bank to cease transacting business with Bankshares, the Bank or any Subsidiary other than the Bank. 
 (ii) Induce or
attempt to induce any Protected Customer of Bankshares, the Bank or any Subsidiary other than the Bank to transfer any part of such Protected Customer’s business from Bankshares, the Bank or any Subsidiary other than the Bank to a competing
depository institution. 
 (d) Non-Disclosure: During the Restricted Period and for twelve (12) months after the end
of the Restricted Period, Executive shall hold in a fiduciary capacity for the benefit of Bankshares and its Subsidiaries all secret or confidential information, knowledge or data relating to Bankshares, the Bank and Subsidiaries other than the Bank
and their respective businesses, which shall have been obtained by Executive during Executive’s employment by Bankshares, the Bank and any Subsidiary other than the Bank and which shall not be or become public knowledge (other than by acts by
Executive or representatives of Executive in violation of this Agreement). During the Restricted Period and for twelve (12) months after the end of the Restricted Period, Executive shall not, without the prior written consent of as applicable,
Bankshares, the Bank and such other Subsidiary or as may 

  
 15 

 
otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than Bankshares, the Bank and such other Subsidiary and those
designated by them. After the end of the Restricted Period, the existence and identity of the customers and employees of Bankshares, the Bank, and any Subsidiaries other than the Bank shall not constitute secret or confidential information,
knowledge or data. 
 (e)(i) The provisions contained in Sections 11(a)-(c) shall not apply and shall have no force and
effect at any time following a Change of Control. In addition, solely and exclusively to the extent the provisions contained in Section 11(d) relate to customer-specific information acquired by Executive prior to or during his employment with
Bankshares and its Subsidiaries, such provisions of Section 11(d) shall not apply and shall have no force and effect at any time following a Change of Control. 
 (ii) During any period in which the provisions of Sections 11(a)-(d) are effective, those provisions shall not preclude Executive from (1) holding any publicly traded stock provided Executive
does not acquire any stock interest in any one company in excess of one percent (1%) of the outstanding voting stock of that company or (2) practicing law on behalf of clients who compete with Bankshares or any Subsidiary. 

(f) The parties agree that the restrictions contained in this Section 11 are reasonable and fair. If Executive competes in violation
of the terms of this Section 11, the parties agree that Bankshares will be irreparably harmed without an adequate remedy at law. Accordingly, Executive acknowledges that if he breaches or threatens to breach any provision of this
Section 11, Bankshares shall be entitled to an injunction, both preliminary and permanent, restraining Executive from such breach or threatened breach, but such injunctive relief shall not preclude Bankshares from pursuing all other legal or
equitable remedies arising out of such a breach. 
 12. NOTICES: For the purposes of this Agreement, notices or other
communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when hand delivered to the party to whom directed or mailed by United States certified mail, return receipt requested, postage prepaid,
addressed to such party at such party’s address last known by the party giving such notice. Each party may, from time to time, and shall, upon request of another party, designate an address to which notices should be sent. Notices of change of
address shall be effective only upon receipt. 
 13. MODIFICATION - WAIVERS - APPLICABLE LAW: No provisions of this
Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing, signed by Executive and on behalf of Bankshares by such officers as may be specifically designated by the Board of Directors of
Bankshares. No waiver of any breach, condition or provision of this Agreement by any party hereto at any time shall be deemed a waiver of similar or dissimilar provisions 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 any party which are not set forth expressly in this Agreement. The validity, interpretation, construction and

  
 16 

 
performance of this Agreement shall be governed by the laws of the Commonwealth of Virginia. The parties hereby irrevocably submit to the venue of the Circuit Court of Norfolk, Virginia for any
action arising out of or relating to this Agreement. 
 14. INVALIDITY - ENFORCEABILITY: The invalidity or enforceability
of any provision 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. Any provision in this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 15. SUCCESSOR
RIGHTS: This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees, and shall be binding upon
Bankshares and any successor to Bankshares. If Executive should die while any amounts would still be payable to Executive hereunder all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to
Executive’s devisee, legatee or other designee or, if there is no such designee, to Executive’s estate. 
 16.
ATTORNEY’S FEES: Subject to Section 10(e), in the event that either party incurs costs and fees, including attorney’s fees, in enforcing its rights under this Agreement, the party substantially prevailing in such suit or action
including any appeal shall be entitled to recover from the other all such costs and reasonable attorney’s fees. 
 17.
COMPLIANCE WITH FEDERAL STATUTES AND REGULATIONS: 
 (a) If Executive is suspended and/or temporarily prohibited from
participating in the conduct of the affairs of Bankshares or any Subsidiary by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. Section 1818(e)(3) and (g)(1)), Bankshares’ obligations to
Executive under this Agreement pertaining to the applicable bank Subsidiary shall be suspended as of the date of service of any such notice unless stayed by appropriate proceedings. If the charges in the notice are dismissed, Bankshares may in its
discretion (i) pay Executive all or part of the compensation withheld while its obligations under this Agreement were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended. 

(b) If Executive is removed and/or permanently prohibited from participating in the conduct of a bank Subsidiary’s affairs by an
order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. Section 1818(e)(4) or (g)(1)), all obligations of Bankshares under this Agreement pertaining to the applicable bank Subsidiary shall terminate as
of the effective date of the order, but vested rights of the parties hereto shall not be affected. 

  
 17 

 (c) If a bank Subsidiary is in default (as defined in Section 3(x)(1) of the Federal
Deposit Insurance Act 12 U.S.C. Section 1813(x)(1)), all obligations under this Agreement shall terminate as of the date of default, but vested rights of the parties hereto shall not be affected. 

(d) All obligations under this Agreement pertaining to a bank Subsidiary shall be terminated, except to the extent that it is determined
that continuation of the contract is necessary to the continued operation of the applicable Subsidiary (i) by the appropriate federal banking agency, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide
assistance to or on behalf of the applicable Subsidiary under the authority contained in Section 13(c) of the Federal Deposit Insurance Act (18 U.S.C. Section 1823(c)); or (ii) by the appropriate federal banking agency, at the time
such agency approves a supervisory merger to resolve problems related to operation of the applicable Subsidiary or when the applicable Subsidiary is determined by such agency to be in an unsafe or unsound condition; but vested rights of the parties
hereto shall not be affected. 
 18. COMPLIANCE WITH VIRGINIA CODE SECTION 6.2-862: For so long as Executive serves
as a director of Bankshares, Executive shall continue to own the number of shares of Bankshares common stock as are necessary to comply with Virginia Code Section 6.2-862. 

19. 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. 
 20. LEGAL CONFLICT: In the event of any conflict between any of the
provisions of this Agreement and the provisions of any applicable statutes or regulations, as such statutes or regulations are in effect as of the date of this Agreement, the provisions of such statutes or regulations in effect as of the date of
this Agreement shall control. 
 21. CONSTRUCTION: This Agreement shall not be construed more strictly against one party
than the other by virtue of the fact that it may have been prepared by counsel for one of the parties, it being recognized that each party has been represented by counsel and has contributed substantially and materially to the preparation of this
Agreement. 
 22. INTERNAL REVENUE CODE SECTION 409A/CONTINUATION OF BENEFITS/REIMBURSEMENTS: This Agreement is intended
to and shall comply with Internal Revenue Code Section 409A. All references to a termination of employment and separation from service shall mean and be administered to comply with the definition of “separation from service” in Code
Section 409A. 

  
 18 

 All reimbursements provided under this Agreement shall comply with Code Section 409A
and shall be subject to the following requirements: 
 (a) The amount of expenses eligible for reimbursement during
Executive’s taxable year may not affect the expenses eligible for reimbursement to be provided in another taxable year, and 
 (b) The reimbursement of an eligible expense must be made by December 31 following the taxable year in which the expense was incurred. 

The right to reimbursement is not subject to liquidation or exchange for another benefit. 

To the extent that any amount payable under this Agreement constitutes “deferred compensation” under Code Section 409A
(and is not otherwise excepted from Code Section 409A coverage by virtue of being considered “separation pay” or a “short term deferral” or otherwise) and is payable to Executive based upon a separation from service (other
than death or “disability” as defined under Code Section 409A), such amount shall not be paid until the first day following the six-month anniversary of Executive’s separation from service. 

Any right to a series of installment payments shall be treated as a right to a series of separate payments for purposes of Code
Section 409A. 
 Payment of any unused vacation or sick leave, unless expressly provided otherwise herein, shall be made in
a single lump sum within 30 days of separation from service. 
 23. RECOVERY OF INCENTIVE COMPENSATION: Any cash or other
compensation received by Executive under this Agreement that constitutes incentive-based compensation may be subject to recovery by Bankshares under any compensation recovery, recoupment or clawback policy that Bankshares may adopt from time to
time, including, without limitation, any policy that Bankshares may be required to adopt under Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations of the U.S. Securities and Exchange
Commission promulgated thereunder or the requirements of any national securities exchange on which Bankshares stock may be listed. Executive shall promptly return any such incentive-based compensation that Bankshares determines it is required to
recover from Executive under any such policy. 
 [Remainder of page intentionally left blank – signature pages follow]

  
 19 

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

			
	EXECUTIVE
	
	 /s/ Michael S. Ives

	Michael S. Ives
	
	HERITAGE BANKSHARES, INC.
		
	By:	 	 /s/ Peter M. Meredith, Jr.

		 	Chairman of the Board
	
	HERITAGE BANK
		
	By:	 	 /s/ Peter M. Meredith, Jr.

		 	Chairman of the BoardSeverance Agreement and General Release

 Exhibit 10.1 
 SEVERANCE AGREEMENT AND GENERAL RELEASE 
 This Severance Agreement and Release (this
“Agreement”) is made and entered into between the undersigned Thomas Carey (referred to herein as “you” or “your”) and Orchard Supply Hardware LLC (“Orchard” or the “Company”) 

1. Separation. Your last day of work with the Company and your employment termination date will be January 23, 2012 (the
“Separation Date”). 
 2. Severance Benefits. As part of this Agreement, the Company will pay you, as
severance, the equivalent of thirty-nine (39) weeks of your base salary in effect as of the Separation Date, subject to standard payroll deductions and withholdings. This amount will be paid in a lump sum within ten (10) days after the
Effective Date, as defined below (the “Severance”). 
 3. Health Insurance. To the extent provided by the
federal COBRA law or, if applicable, state insurance laws, and by the Company’s current group health insurance policies, you will be eligible to continue your group health insurance benefits at your own expense. Later, you may be able to
convert to an individual policy through the provider of the Company’s health insurance, if you wish. You will be provided with a separate notice of your COBRA rights. If you timely elect continued coverage under COBRA, the Company, as part of
this Agreement, will pay your COBRA premiums through October 2012. 
 4. Outplacement Services. In further consideration
of this Agreement, the Company agrees to provide you with reasonable outplacement services as of the Separation Date, at the expense of Orchard. You and Orchard will mutually agree on which outplacement firm, among current vendors used by Orchard,
will provide these services. You must contact a representative of the provider within sixty (60) days after the Separation Date in order to make use of these services. Such services will be provided for up to six (6) months following the
Separation Date or until employment is obtained, whichever occurs first. 
 5. Incentive Stock Option Plan. The Company
granted you an option to purchase shares of the Company’s Class B Common Stock (the “Option”) under the Company’s Equity Incentive Plan (the “Plan”). Under the terms of the Plan, you may exercise any shares that were
vested as of the Separation Date for ninety (90) days after the Separation Date (the “Exercise Deadline”), after which time the Option will terminate. 
 If you wish to exercise any vested shares, you must elect to do so in writing on or before the Exercise Deadline (the “Exercise Notice”), and tender a check in the amount of the exercise price
for any vested shares you are purchasing with your Exercise Notice. The Exercise Notice will be irrevocable unless otherwise agreed by the Company and, if you are purchasing less than the total number of vested shares, will immediately terminate the
Option as to any remaining shares. 
 6. Annual Incentive Plan. Upon your Separation Date, your entitlement to any award
under the applicable annual incentive plan (“AIP”) sponsored by Orchard shall be determined in accordance with the terms and conditions of the AIP document regarding termination of employment. 

  
 1 

 7. Other Compensation or Benefits. You acknowledge that, except as expressly
provided in this Agreement, you are not entitled to and will not receive any additional compensation, bonus, severance or benefits after the Separation Date, other than accrued salary and all accrued and unused vacation earned through the Separation
Date, subject to standard payroll deductions and withholdings. 
 8. Release of Claims. In exchange for the severance
benefits and other consideration under this Agreement to which you would not otherwise be entitled, you, on behalf of yourself, your descendants, ancestors, dependents, heirs, executors, administrators, personal representatives, assigns, and
successors, past and present, and each of them, hereby fully release, acquit and forever discharge the Company and its officers, directors, employees, stockholders, representatives, agents, attorneys, insurers, successors, assigns and affiliates,
past and present, and each of them, in their individual and business capacities, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind and
nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the execution date of this
Agreement, including but not limited to: all such claims and demands arising out of or in any way connected with your employment with the Company or the termination of that employment; claims or demands related to salary, bonuses, commissions, tips,
vacation pay, fringe benefits, expense reimbursements, stock, stock options or any other ownership interest in the Company (including claims for fraud, misrepresentation, breach of fiduciary duty, or breach of any duty imposed by state corporate or
federal securities laws), severance pay, or any other form of compensation; and claims for damages, attorneys’ fees, costs or other relief pursuant to any federal, state or local law, statute, or cause of action including, but not limited to,
the federal Civil Rights Act of 1964, as amended, the federal Americans with Disabilities Act of 1990; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”), the Civil Rights Act of 1991; the Employee Retirement
Security Act of 1974; the Worker Adjustment and Retraining Notification Act; those provisions of the California Labor Code which may lawfully be released; the California Business & Professions Code; the California Fair Employment and
Housing Act, as amended; tort law, contract law, common law, public policy and the law of wrongful discharge, discrimination, harassment, fraud, defamation, emotional distress, and breach of the implied covenant of good faith and fair dealing; any
claim under any other federal, state or local law, regulation or ordinance which may lawfully be released; any claim for costs, fees or other expenses including attorneys’ fees incurred in any of these matters (collectively, “Released
Claims”). 
 You represent and warrant to the Company that there are no other individuals or entities to whom or to which you have assigned
any of the Released Claims and you are the sole and lawful owner of all right, title and interest in and to the Released Claims. 
 9. Section 1542 Waiver. You acknowledge that you have read and understand Section 1542 of the California Civil Code, which reads as follows: 

 

	 	(1)	“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his or her settlement with the debtor.” 

  
 2 

 You expressly waive and relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to the release of any unknown or unsuspected claims that you may have against the Company. 
 10. ADEA Waiver. You acknowledge and agree that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA. You also acknowledge that the consideration given for
the waiver and release in this Agreement is in addition to anything of value to which you were already entitled. You further acknowledge that you have been advised by this writing, as required by the ADEA, that: (a) your waiver and release do
not apply to any rights or claims that may arise after the execution date of this Agreement; (b) you have been advised hereby that you have the right to consult with an attorney prior to executing this Agreement; (c) you have twenty-one
(21) days to consider this Agreement (although you may choose to voluntarily execute this Agreement earlier); (d) you have seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; and
(e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Agreement is executed by you (“Effective Date”). 

11. Expense Reimbursements. You agree that, within ten (10) days of the Separation Date, you will submit your final
documented expense reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any, for which you seek reimbursement. The Company will reimburse you for these expenses pursuant to its regular business
practice. 
 12. Return of Company Property. By the Separation Date, you agree to return to the Company all Company
documents (and all copies thereof) and other Company property that you have had in your possession at any time, including, but not limited to, Company files, notes, drawings, records, business plans and forecasts, financial information,
specifications, computer- recorded information, tangible property (including, but not limited to, computers), credit cards, entry cards, identification badges and keys and any materials of any kind that contain or embody any proprietary or
confidential information of the Company (and all reproductions thereof). 
 13. Proprietary Information Obligations. You
acknowledge your continuing obligations not to use or disclose any confidential or proprietary information of the Company without prior written authorization from a duly authorized representative of the Company. You further acknowledge that, prior
to the execution of this Agreement you did not at any time use or reveal, either directly or indirectly, to any person, company, business, firm or any other entity, any trade secret or any confidential or proprietary information about the Company,
including but not limited to any information about the Company’s service, its customers or its methods of doing business. 

14. Non-Solicitation of Employees. For six (6) months following your Separation Date, you agree that you will not, directly
or indirectly, solicit or encourage any person to leave her/his employment with Orchard for or on behalf of any future employer or other entity. 
 15. Nondisparagement. You agree not to disparage the Company or its officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business
reputation or personal reputation, not to make derogatory statements, either written or oral, to any third party, and not to authorize others to make derogatory or disparaging statements on your behalf; provided, however that you will respond
accurately and fully to any question, inquiry or request for information when required by legal process. 

  
 3 

 16. Cooperation. After the Separation Date, you agree to cooperate fully with the
Company in connection with its actual or contemplated defense, prosecution, or investigation of any claims, demands, or other matters arising from events, acts or failures to act which occurred during the time period in which you were employed by
the Company. Cooperation includes, without limitation, making yourself available upon reasonable notice at the Company’s request for interviews, depositions and trial testimony. Orchard will reimburse you for reasonable travel and out-of-pocket
expenses incurred in connection with any such investigations, potential litigation or litigation. 
 17. Confidentiality.
The provisions of this Agreement will be held in strictest confidence by you and will not be publicized or disclosed in any manner whatsoever; provided, however, that: you may disclose this Agreement to your immediate family, attorneys,
accountants, tax preparers and financial advisors, all of whom shall agree to keep such information confidential, and you may also disclose this Agreement as may be required by law. In particular, and without limitation, you agree not to disclose
the terms of this Agreement to any current or former Company employee. 
 18. Irreparable Harm. You acknowledge that
irreparable harm would result from any breach by you of the provisions of this Agreement, and that monetary damages alone would not provide adequate relief for any such breach. Accordingly, if you breach or threaten to breach this Agreement, you
consent to injunctive relief in favor of Orchard without the necessity of Orchard posting a bond. Moreover, any award of injunctive relief shall not preclude Orchard from seeking or recovering any lawful compensatory damages which may have resulted
from a breach of this Agreement, including a forfeiture of any future payments and a return of any payments and benefits already received by you. 
 19. Arbitration. Both you and the Company agree that any and all disputes, claims, and causes of action arising from or relating to this Agreement or its enforcement, performance, breach, or
interpretation will be resolved by final, binding and confidential arbitration before JAMS, according to the Federal Rules of Civil Procedure. The Company agrees to pay the arbitrator’s expenses. Both you and the Company agree that the
arbitrator shall award the prevailing party its reasonable attorneys’ fees and costs incurred in connection with the arbitration. Nothing in this paragraph is intended to prevent either you or the Company from obtaining injunctive relief in
court to prevent irreparable harm pending the conclusion of any such arbitration. 
 20. Future Enforcement or Remedy.
Any waiver, or failure to seek enforcement or remedy for any breach or suspected breach, of any provision of this Agreement by Orchard or you in any instance shall not be deemed a waiver of such provision in the future. 

21. Entire Agreement. This Agreement constitutes the complete, final and exclusive embodiment of the entire agreement between you
and the Company with regard to this subject matter. It supersedes any and all agreements entered into by and between you and the Company. It is entered into voluntarily, without reliance on any promise or representation, written or oral, other than
those expressly contained herein. It may be amended only by a writing signed by the Senior Vice President, Human Resources of Orchard. If any provision of this Agreement 

  
 4 

 
conflicts with any other plan, programs, policy, practice or other Orchard document, then the provisions of this Agreement will control, except as otherwise specified herein or precluded by law.

 22. Severability. If any provision(s) of this Agreement shall be found invalid, illegal, or unenforceable, in whole or
in part, then such provision(s) shall be modified or restricted so as to effectuate as nearly as possible in a valid and enforceable way the provisions hereof, or shall be deemed excised from this Agreement, as the case may require, and this
Agreement shall be construed and enforced to the maximum extent permitted by law, as if such provision(s) had been originally incorporated herein as so modified or restricted or as if such provision(s) had not been originally incorporated herein, as
the case may be. 
 23. Successors and Assigns. This Agreement will bind the descendants, ancestors, dependents, heirs,
executors, administrators, personal representatives, assigns, and successors of both you and the Company, and inure to the benefit of the Company, and its officers, directors, employees, agents, successors and assigns. 

24. Non-Admission of Liability. This Agreement shall not in any way be construed as an admission of liability by either the
Company or you or that either the Company or you have acted wrongfully with respect to the other, and the Company and you specifically disclaim any liability to or wrongful acts against one another. 

25. No Future Employment. You promise not to seek employment or any other business relationship at any time in the future with the
Company and you forsake any right to be employed or to have any other business relationship in the future with the Company. 

26. Voluntary Execution; Consultation with Attorney. You have executed this Agreement voluntarily and you fully understand it. You
have been encouraged by the Company to review this Agreement with an outside lawyer, if you so desire, prior to signing it. 

27. Applicable Law. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with
the laws of the State of California as applied to contracts made and to be performed entirely within California. 
 28.
Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other parties or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

  

					
	        If to you:	  	At the most recent address on file at Orchard	  	 
			
	        If to Orchard:	  	Orchard Supply Hardware LLC	  	
		  	6450 Via Del Oro	  	
		  	San Jose, California 95119	  	

  

					
			
		  	Attention to both:	 	Senior Vice President, Human Resources
		  		 	Senior Vice President, General Counsel
		  		 	

  

  
 5 

 29. Dismissal of Proceedings; No Filing of Claims. You shall, within ten days of the
date you sign this Agreement, withdraw any pending claims, lawsuits, or administrative charges you have made against the Company and will authorize any administrative agency to dismiss those charges. You shall not file or assist in the filing of any
administrative charges, complaints, lawsuits or claims against the Company or assist any other person in pursuing any claim, suit, or action at law or in equity against the Company as a result of or arising out of your or another person’s
employment by the Company. 
 30. Counterparts. This Agreement may be executed in one or more counterparts, which
together shall constitute a valid and binding agreement. 
 [Remainder of page intentionally left blank] 

  
 6 

 31. This Agreement supersedes in its entirety that certain Executive Severance Agreement
dated July 23, 2007. 
 THE SIGNATORIES HAVE CAREFULLY READ THIS ENTIRE AGREEMENT, AND HAD THE OPPORTUNITY TO HAVE ITS CONTENTS FULLY
EXPLAINED TO THEM BY THEIR ATTORNEYS. THE SIGNATORIES FULLY UNDERSTAND THE FINAL AND BINDING EFFECT OF THIS AGREEMENT. THE ONLY PROMISES MADE TO ANY SIGNATORY ABOUT THIS AGREEMENT ARE CONTAINED IN THIS AGREEMENT. THE SIGNATORIES ARE SIGNING THIS
AGREEMENT VOLUNTARILY. 
 PLEASE READ CAREFULLY. 
 THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE 
 INCLUDES A RELEASE OF
KNOWN AND UNKNOWN CLAIMS. 
 The parties having read the Agreement and accept and agree to the provisions it contains and hereby execute it
with full understanding of its consequences. 
 Orchard Supply Hardware LLC 

By: /s/ David Bogage 
 Print Name: David Bogage 
 Title: Senior Vice
President, Human Resources 
 Date:1-30-12 
 /s/ Thomas Carey 
 Your Signature 

Thomas Carey 
 Your Full Name (print) 
 Date: 1-28-12 

  
 7

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