Document:

EX-10.10

 Exhibit 10.10 

OYSTER POINT PHARMA, INC. 

EXECUTIVE INCENTIVE COMPENSATION PLAN 

(Adopted on October 2, 2019 and effective as of the Company’s initial public offering) 

1. Purposes of the Plan. The Plan is intended to increase stockholder value and the success of the Company by motivating Employees to
(i) perform to the best of their abilities and (ii) achieve the Company’s objectives. 
 2. Definitions. 

(a) “Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance
Period, subject to the Committee’s authority under Section 3(d) to modify the award. 
 (b) “Affiliate” means any
corporation or other entity (including, but not limited to, partnerships and joint ventures) controlled by the Company. 
 (c)
“Board” means the Board of Directors of the Company. 
 (d) “Bonus Pool” means the pool of funds available
for distribution to Participants. Subject to the terms of the Plan, the Committee establishes the Bonus Pool for each Performance Period. 

(e) “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation
thereunder will include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 

(f) “Committee” means the committee appointed by the Board (pursuant to Section 5) to administer the Plan. Unless and
until the Board otherwise determines, the Board’s Compensation Committee will administer the Plan. 
 (g) “Company”
means Oyster Point Pharma, Inc., a Delaware corporation, or any successor thereto. 
 (h) “Disability” means a permanent and
total disability determined in accordance with uniform and nondiscriminatory standards adopted by the Committee from time to time. 
 (i)
“Employee” means any executive, officer, or other employee of the Company or of an Affiliate, whether such individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 

(j) “Fiscal Year” means the fiscal year of the Company. 

(k) “Participant” means as to any Performance Period, an Employee who has been selected by the Committee for participation in
the Plan for that Performance Period. 

 (l) “Performance Period” means the period of time for the measurement of
the performance criteria that must be met to receive an Actual Award, as determined by the Committee in its sole discretion. A Performance Period may be divided into one or more shorter periods if, for example, but not by way of limitation, the
Committee desires to measure some performance criteria over 12 months and other criteria over 3 months. 
 (m) “Plan” means
this Executive Incentive Compensation Plan, as set forth in this instrument (including any appendix attached hereto) and as hereafter amended from time to time. 

(n) “Target Award” means the target award, at 100% of target level performance achievement, payable under the Plan to a
Participant for the Performance Period, as determined by the Committee in accordance with Section 3(b). 
 3. Selection of
Participants and Determination of Awards. 
 (a) Selection of Participants. The Committee, in its sole discretion, will select the
Employees who will be Participants for any Performance Period. Participation in the Plan is in the sole discretion of the Committee, on a Performance Period by Performance Period basis. Accordingly, an Employee who is a Participant for a given
Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Performance Periods. 

(b) Determination of Target Awards. The Committee, in its sole discretion, will establish a Target Award for each Participant (which may
be expressed as a percentage of a Participant’s average annual base salary for the Performance Period or a fixed dollar amount or such other amount or based on such other formula as the Committee determines). 

(c) Bonus Pool. Each Performance Period, the Committee, in its sole discretion, will establish a Bonus Pool, which pool may be
established before, during or after the applicable Performance Period. Actual Awards will be paid from the Bonus Pool. 
 (d) Discretion
to Modify Awards. Notwithstanding any contrary provision of the Plan, the Committee may, in its sole discretion and at any time, (i) increase, reduce or eliminate a Participant’s Actual Award, and/or (ii) increase, reduce or
eliminate the amount allocated to the Bonus Pool. The Actual Award may be below, at or above the Target Award, in the Committee’s discretion. The Committee may determine the amount of any increase, reduction or elimination on the basis of such
factors as it deems relevant, and will not be required to establish any allocation or weighting with respect to the factors it considers. 

(e) Discretion to Determine Criteria. Notwithstanding any contrary provision of the Plan, the Committee, in its sole discretion, will
determine the performance goals (if any) applicable to any Target Award (or portion thereof) which may include, without limitation, (i) attainment of research and development milestones, (ii) bookings, (iii) business divestitures and
acquisitions, (iv) cash flow, (v) cash position, (vi) contract awards or backlog, (vii) customer renewals, (viii) customer retention rates from an acquired company, subsidiary, business unit or division, (vi) earnings
(which may include earnings before interest and taxes, earnings before taxes, and net taxes), (vii) earnings per share, (viii) expenses, (ix) gross margin, (x) growth in 

  
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stockholder value relative to the moving average of the S&P 500 Index or another index, (xi) internal rate of return, (xii) market share, (xiii) net income, (xiv) net
profit, (xv) net sales, (xvi) new product development, (xvii) new product invention or innovation, (xviii) number of customers, (xix) operating cash flow, (xx) operating expenses, (xxi) operating income,
(xxii) operating margin, (xxiii) overhead or other expense reduction, (xxiv) product defect measures, (xxv) product release timelines, (xxvi) productivity, (xxvii) profit, (xxviii) retained earnings, (xxxix) return
on assets, (xxx) return on capital, (xxxi) return on equity, (xxxii) return on investment, (xxxiii) return on sales, (xxxiv) revenue, (xxxv) revenue growth, (xxxvi) sales results, (xxxvii) sales growth,
(xxxviii) stock price, (xxxix) time to market, (xxxx) total stockholder return, (xxxxi) working capital, (xxxxii) individual objectives such as peer reviews or other subjective or objective criteria, and (xxxxiii) attainment of clinical
development milestones. As determined by the Committee, the performance goals may be based on generally accepted accounting principles (“GAAP”) or non-GAAP results and any actual results may be
adjusted by the Committee for one-time items or unbudgeted or unexpected items and/or payments of Actual Awards under the Plan when determining whether the performance goals have been met. The goals may be on
the basis of any factors the Committee determines relevant, and may be on an individual, divisional, business unit, segment or Company-wide basis. Any criteria used may be measured on such basis as the Committee determines, including but not limited
to, as applicable, (A) in absolute terms, (B) in combination with another performance goal or goals (for example, but not by way of limitation, as a ratio or matrix), (C) in relative terms (including, but not limited to, results for
other periods, passage of time and/or against another company or companies or an index or indices), (D) on a per-share basis, (E) against the performance of the Company as a whole or a segment of the
Company and/or (F) on a pre-tax or after-tax basis. The performance goals may differ from Participant to Participant and from award to award. Failure to meet the
goals will result in a failure to earn the Target Award, except as provided in Section 3(d). The Committee also may determine that a Target Award (or portion thereof) will not have a performance goal associated with it but instead will be
granted (if at all) in the sole discretion of the Committee. 
 4. Payment of Awards. 

(a) Right to Receive Payment. Each Actual Award will be paid solely from the general assets of the Company. Nothing in this Plan will be
construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 

(b) Timing of Payment. Payment of each Actual Award shall be made as soon as practicable after the end of the Performance Period to
which the Actual Award relates and after the Actual Award is approved by the Committee, but in no event later than the later of (i) the 15th day of the third month of the Fiscal Year immediately following the Fiscal Year in which the
Participant’s Actual Award is first no longer subject to a substantial risk of forfeiture, and (ii) March 15 of the calendar year immediately following the calendar year in which the Participant’s Actual Award is first no longer
subject to a substantial risk of forfeiture. Unless otherwise determined by the Committee, to earn an Actual Award a Participant must be employed by the Company or any Affiliate on the date the Actual Award is paid. 

  
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 It is the intent that this Plan be exempt from or comply with the requirements of Code
Section 409A so that none of the payments to be provided hereunder will be subject to the additional tax imposed under Code Section 409A, and any ambiguities herein will be interpreted to be so exempt or so comply. Each payment under this
Plan is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). 

(c) Form of Payment. Each Actual Award generally will be paid in cash (or its equivalent) in a single lump sum. The Committee reserves
the right, in its sole discretion, to settle an Actual Award with a grant of an equity award under the Company’s then-current equity compensation plan. 

(d) Payment in the Event of Death or Disability. If a Participant dies or is terminated due to his or her Disability prior to the
payment of an Actual Award the Committee has determined will be paid for a prior Performance Period, the Actual Award will be paid to his or her estate or to the Participant, as the case may be, subject to the Committee’s discretion to reduce
or eliminate any Actual Award otherwise payable. 
 5. Plan Administration. 

(a) Committee is the Administrator. The Plan will be administered by the Committee. The Committee will consist of not less than 2
members of the Board. The members of the Committee will be appointed from time to time by, and serve at the pleasure of, the Board. 
 (b)
Committee Authority. It will be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee will have all powers and discretion necessary or appropriate to administer the Plan and to control
its operation, including, but not limited to, the power to (i) determine which Employees will be granted awards, (ii) prescribe the terms and conditions of awards, (iii) interpret the Plan and the awards, (iv) adopt such
procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside of the United States, (v) adopt rules for the
administration, interpretation and application of the Plan as are consistent therewith, and (vi) interpret, amend or revoke any such rules. 

(c) Decisions Binding. All determinations and decisions made by the Committee, the Board, and/or any delegate of the Committee pursuant
to the provisions of the Plan will be final, conclusive, and binding on all persons, and will be given the maximum deference permitted by law. 

(d) Delegation by Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all
or part of its authority and powers under the Plan to one or more directors and/or officers of the Company. 
 (e)
Indemnification. Each person who is or will have been a member of the Committee will be indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably
incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any award,
and (ii) from any and all amounts paid by him or her in settlement 

  
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thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she will give
the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification will not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them
harmless. 
 6. General Provisions. 

(a) Tax Withholding. The Company (or the Affiliate employing the applicable Employee) will withhold all applicable taxes from any Actual
Award, including any federal, state and local taxes (including, but not limited to, the Participant’s FICA and SDI obligations). 
 (b)
No Effect on Employment or Service. Nothing in the Plan will interfere with or limit in any way the right of the Company (or the Affiliate employing the applicable Employee) to terminate any Participant’s employment or service at any
time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) will not be deemed a termination of employment. Employment with the Company and
its Affiliates is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time and without regard to when during a Performance Period such exercise occurs, to
terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant. 

(c) Participation. No Employee will have the right to be selected to receive an award under this Plan, or, having been so selected, to
be selected to receive a future award. 
 (d) Successors. All obligations of the Company under the Plan, with respect to awards
granted hereunder, will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of
the Company. 
 (e) Beneficiary Designations. If permitted by the Committee, a Participant under the Plan may name a beneficiary or
beneficiaries to whom any vested but unpaid award will be paid in the event of the Participant’s death. Each such designation will revoke all prior designations by the Participant and will be effective only if given in a form and manner
acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death will be paid to the Participant’s estate. 

(f) Nontransferability of Awards. No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution, or to the limited extent provided in Section 6(e). All rights with respect to an award granted to a Participant will be available during his or her lifetime only to
the Participant. 

  
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 7. Amendment, Termination, and Duration. 

(a) Amendment, Suspension, or Termination. The Board or the Committee, in its sole discretion, may amend or terminate the Plan, or any
part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan will not, without the consent of the Participant, alter or impair any rights or obligations under any Actual Award theretofore earned by such
Participant. No award may be granted during any period of suspension or after termination of the Plan. 
 (b) Duration of Plan. The
Plan will commence on the date first adopted by the Board or the Committee, and subject to Section 7(a) (regarding the Board’s and/or the Committee’s right to amend or terminate the Plan), will remain in effect thereafter until
terminated. 
 8. Legal Construction. 

(a) Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also will include the feminine;
the plural will include the singular and the singular will include the plural. 
 (b) Severability. In the event any provision of the
Plan will be held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provision had not been included. 

(c) Requirements of Law. The granting of awards under the Plan will be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required. 
 (d) Governing Law. The Plan and
all awards will be construed in accordance with and governed by the laws of the State of New Jersey, but without regard to its conflict of law provisions. 

(e) Bonus Plan. The Plan is intended to be a “bonus program” as defined under U.S. Department of Labor regulation 2510.3-2(c) and will be construed and administered in accordance with such intention. 
 (f)
Captions. Captions are provided herein for convenience only, and will not serve as a basis for interpretation or construction of the Plan. 

  
 -6-Exhibit 10.1

 

Execution Copy

AMENDED
AND RESTATED Employment AGREEMENT

 

This
AMENDED AND RESTATED EMPLOYMENT Agreement (this “Agreement”) is made and entered into this 2nd day of
October, 2019 by and between Southern National Bancorp of Virginia, Inc. (“Company”), and Georgia S. Derrico
(“Executive”), to be effective as of the Effective Date (as defined below).

 

BACKGROUND

 

WHEREAS, Executive
and the Company are presently party to that certain Employment Agreement, dated June 23, 2017, as amended April 28, 2019 (the “Prior
Agreement”); and

 

WHEREAS, the Company
and Executive desire to amend and restate the Prior Agreement, effective as of October 2, 2019, as set forth herein.

 

NOW, THEREFORE,
in consideration of the payments, consents and acknowledgements described below, in consideration of Executive’s employment
with the Company, and in consideration of other good and valuable consideration, the receipt and sufficiency of all of which is
hereby acknowledged, the parties agree as follows:

 

1.       Effective
Date; Term.

 

(a)       Effective
Date. This Agreement shall be effective as of October 2, 2019 (the “Effective Date”).

 

(a)       Term.
Upon the terms and subject to the conditions set forth in this Agreement, the Company hereby employs Executive, and Executive hereby
accepts such employment, for the term commencing on the Effective Date and, unless otherwise earlier terminated pursuant to Section
4 hereof, expiring on the close of business on December 31, 2020 (the “Term”). If the Term expires and the parties
agree that Executive will remain employed by the Company but do not enter into a new employment agreement, then such employment
shall be at-will and this Agreement will be of no further force and effect, except that Section 6 hereof, as well as any other
provisions of this Agreement necessary to interpret or enforce Section 6 hereof, shall survive and continue to be in full force
and effect in accordance with their terms.

 

2.       Employment.
Executive is hereby employed on the Effective Date as the Executive Chairman of the Board. In her capacity as Executive Chairman
of the Board, Executive shall have the duties, responsibilities and authority commensurate with such position. During her employment
with the Company, and excluding any periods of vacation or sick leave to which Executive is entitled, Executive agrees to (i) devote
all of her business effort, time, energy, and skill to fulfill her employment duties; and (ii) faithfully, loyally and diligently
perform such duties. During her employment with the Company, Executive shall not be engaged in or provide services to any other
business or enterprise (whether engaged in for profit or not) which interferes with her obligations to the Company. In her capacity
as the Executive Chairman of the Board, Executive will report directly to the Board. Notwithstanding anything in this Agreement
to the contrary, Executive’s management role with respect to MGS Foundation or Port Kinsale Marina LLC and/or ownership thereof
shall not be a violation of this Section 2.

 

3.       Compensation
and Benefits.

 

(a)       Base
Salary. During the Term, the Company shall pay to Executive base salary at the rate equal to $517,708.42 (“Base Salary”),
less normal withholdings, payable in approximately equal bi-weekly or other installments as are or become customary under the Company’s
payroll practices for its Executives from time to time. The Compensation Committee of the Board (the “Compensation Committee”)
shall review Executive’s Base Salary at its first meeting immediately following the Effective Date and may increase, but
not decrease, such Base Salary in connection with such review.

 

     

     

    

 

(b)       Benefit
Plans. During the Term, Executive shall be entitled to participate in or become a participant in any employee benefit plan
maintained by the Company for which Executive is or will become eligible on such terms as the Board, or committee thereof, may,
in its discretion, establish, modify or otherwise change; provided, however, that Executive shall not be eligible to participate
in the Southern National Bancorp of Virginia, Inc. Supplemental Executive Retirement Plan (f/k/a the Eastern Virginia Bankshares,
Inc. Supplemental Executive Retirement Plan); and provided further that nothing herein shall limit the ability of the Company to
amend, modify or terminate any such plans at any time and from time to time.

 

(c)       Incentive
Compensation. Executive shall receive such incentive awards, including but not limited to equity awards, in such manner and
subject to such terms and conditions as the Board, or a committee thereof, in its sole discretion, may determine. Without limiting
the foregoing, the dollar value of Executive’s annual cash bonus with respect to performance during calendar year 2019, if
any, shall be no less than the dollar value of the annual cash bonus received by the Chief Executive Officer of the Company with
respect to calendar year 2019. Nothing herein shall require the Company to pay annual bonuses with respect to any calendar year.

 

(d)       Clawback.
Executive agrees that any incentive compensation (including both equity and cash incentive compensation) that Executive receives
from the Company or a related entity is subject to repayment (i.e., clawback) to the Company or such related entity as determined
by the Board or its Compensation Committee in the event (i) of a restatement of the Company’s financial results (other than
a restatement caused by a change in applicable accounting rules or interpretations) the result of which is that the financial statements
were materially inaccurate and any incentive compensation paid would have been a materially lower amount had it been calculated
based on such restated results or (ii) the repayment is otherwise required by applicable state or federal law or regulation or
stock exchange requirement, or by a separate “clawback” policy, as may be adopted from time to time by the Board. Except
where offset of, or recoupment from, incentive compensation covered by Section 409A of the Code (as defined below) is prohibited
by Section 409A of the Code, to the extent allowed by law and as determined by the Compensation Committee, Executive agrees that
such repayment may, in the discretion of the Compensation Committee, be accomplished by withholding of future compensation to be
paid to Executive by the Company. Any recovery of incentive compensation covered by Section 409A of the Code shall be implemented
in a manner which complies with Section 409A of the Code.

 

(e)       Expenses.
During the Term, and subject to Section 10 hereof, Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by Executive in the course of performing her duties and responsibilities under this Agreement, in accordance
with the policies, practices and procedures of the Company to the extent available to other similarly-situated employees with respect
to travel and other business expenses.

 

(f)       Club
Dues. During the Term, the Company shall pay (or reimburse Executive for) Executive’s membership dues at The New York
Yacht Club. To the extent the Company reimburses Executive for any such dues, such reimbursements shall be made no later than the
last day of the calendar month following the calendar month in which Executive submits the request for payment of the reimbursable
expense, which shall be submitted no later than sixty (60) days after the expense is incurred.

 

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(g)       Automobile
Allowance. During the Term, the Company shall pay Executive a monthly automobile allowance in an amount equal to the monthly
automobile allowance in effect for Executive immediately prior to the Effective Date.

 

(h)       Tax
Assistance. For calendar year 2019, the Company shall reimburse Executive for reasonable costs incurred for tax and estate
planning advice up to a maximum amount of $5,000.

 

4.       Termination
of Employment.

 

(a)       Death.
Executive’s employment shall terminate automatically upon her death.

 

(b)       Termination
by the Company. The Company may terminate Executive’s employment during the Term with or without Cause (as defined herein),
in each case immediately on written notice to Executive. For purposes of this Agreement, a termination shall be considered to be
for “Cause” if the Company determines that any of the following has occurred: (i) Executive’s willful
violation of any laws, rules or regulations applicable to banks or the banking industry generally; (ii) Executive’s material
failure to comply with the Company’s policies or guidelines of employment or corporate governance policies or guidelines,
including, without limitation, any business code of ethics adopted by the Company, that, if capable of being cured, is not cured
by Executive within ten (10) days of written notice by the Company of the failure; (iii) any act of fraud, misappropriation or
embezzlement by Executive; (iv) a material breach of this Agreement that, if such breach is capable of being cured, is not cured
by Executive within ten (10) days of written notice by the Company of the breach; or (v) Executive’s conviction of, or Executive’s
pleading guilty or nolo contendere to, a felony or a crime involving moral turpitude (including pleading guilty or nolo contendere
to a felony or lesser charge which results from plea bargaining). The parties acknowledge and agree that upon the hiring of an
executive officer who will assume the duties and responsibilities of Executive or otherwise replace Executive, the Company will
terminate Executive’s employment at such time (or at such later date as may be mutually agreeable to the parties), which
termination shall constitute a qualifying termination under the Severance Plan (as defined in Section 5(a) below).

 

(c)       Termination
by Executive. Executive’s employment may be terminated by Executive for any reason or no reason by delivering a notice
of termination to the Company thirty (30) days prior to the desired date of termination.

 

5.       Obligations
of the Company upon Termination.

 

(a)       Executive
shall be a participant in the Southern National Bancorp of Virginia, Inc. Executive Severance Plan as in effect as of the Effective
Date (the “Severance Plan”), notwithstanding anything to the contrary in the Severance Plan, and, in the event
of Executive’s qualifying termination under the Severance Plan, Executive shall be eligible to receive severance benefits
pursuant to the Severance Plan as in effect as of the Effective Date, subject to the terms and conditions thereof, in lieu of any
severance benefits under this Agreement. Without limiting the foregoing, in the event of Executive’s qualifying termination
under the Severance Plan, Executive shall also be entitled to the following additional benefits (collectively, the “Additional
Severance Benefits”):

 

(i) Executive’s
unvested stock options and restricted shares outstanding on the Date of Termination shall become fully vested and, in the case
of stock options, exercisable, on the Date of Termination and shall otherwise remain subject to the terms and conditions of the
equity plan pursuant to which they were granted and the award agreements evidencing the grant thereof;

 

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(ii) Executive
shall continue to have the use of a personal assistant provided by the Company for two (2) years following the Date of Termination,
with such personal assistant having a base salary at a rate not to exceed $60,000; and

 

(iii) Executive
shall become fully vested in Executive’s “Normal Retirement Benefit” under the Supplemental Retirement Plan Agreement
entered into effective as of the 2nd day of April 2018 by and between Sonabank, a wholly-owned subsidiary of the
Company, and Executive.

 

Notwithstanding
the foregoing, the Company shall be obligated to provide the Additional Severance Benefits only if (A) within forty-five (45) days
after the date of termination Executive shall have executed a full release of claims/covenant not to sue agreement substantially
in the form attached as Exhibit A to the Severance Plan (the “Release Agreement”) and such Release Agreement
shall not have been revoked within the revocation period specified in the Release Agreement, and (B) Executive fully complies with
the obligations set forth in Section 6 hereof. For the avoidance of doubt, if Executive does not comply with the obligations set
forth in Section 6 hereof, then any obligation of the Company to provide the Additional Severance Benefits shall cease immediately
upon Executive’s breach thereof.

 

(b)       If
during the Term Executive’s employment is terminated by the Company for Cause or by Executive for any reason (other than
a “Constructive Discharge” following a Change in Control, as such terms and conditions are defined in the Severance
Plan), or in the event of Executive’s death, then the Company shall have no further obligations to Executive or Executive’s
legal representatives under this Agreement, other than for payment of Accrued Salary, which shall be paid to Executive or Executive’s
estate or beneficiary, as applicable, in a lump sum in cash within thirty (30) days after the date of termination.

 

(c)       If
Executive’s employment terminates following the expiration of the Term, then the Company shall have no further obligations
to Executive or Executive’s legal representatives under this Agreement, other than for payment of Accrued Salary, which shall
be paid to Executive in a lump sum in cash within thirty (30) days after the date of termination.

 

(f)       Any
termination of Executive’s employment shall not in and of itself affect Executive’s ability to continue as a director
of the Company and/or Sonabank.

 

6.       Restrictions
on Competition and Disclosure and Use of Confidential Information.

 

(a)       Confidential
Information. Executive agrees that Executive shall not, directly or indirectly, use any Confidential Information (as defined
herein) on Executive’s own behalf or on behalf of any Person (as defined herein) other than the Company, or reveal, divulge,
or disclose any Confidential Information to any Person not expressly authorized by the Company to receive such Confidential Information.
This obligation shall remain in effect for as long as the information or materials in question retain their status as Confidential
Information. Executive further agrees that she shall fully cooperate with the Company in maintaining the Confidential Information
to the extent permitted by law. The parties acknowledge and agree that this Agreement is not intended to, and does not, alter either
the Company’s rights or Executive’s obligations under any state or federal statutory or common law regarding trade
secrets and unfair trade practices. Anything herein to the contrary notwithstanding, Executive shall not be restricted from disclosing
information that is required to be disclosed by law, court order or other valid and appropriate legal process; provided, however,
that in the event such disclosure is required by law, Executive shall provide the Company with prompt notice of such requirement
so that the Company may seek an appropriate protective order prior to any such required disclosure by Executive.

 

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Executive understands
and acknowledges that nothing in this section limits her ability to initiate communications directly with, respond to any inquiry
from, volunteer information to, or provide testimony before any government agency or otherwise participate in any reporting of,
investigation into, or proceeding regarding suspected violations of law, or from making other disclosures that are protected under,
or from receiving an award for information provided under, the whistleblower provisions of state or federal law or regulation. 
Executive does not need the prior authorization of the Company to engage in such communications with any government agency, respond
to such inquiries from any government agency, provide Confidential Information or documents containing Confidential Information
to any government agency, or make any such reports or disclosures to any government agency.  Executive is not required to
notify the Company that Executive has engaged in such communications with a government agency. Executive recognizes and agrees
that, in connection with any such activity outlined above, Executive must inform the government agency that the information Executive
is providing is confidential.

 

Federal law provides
certain protections to individuals who disclose a trade secret to their attorney, a court, or a government official in certain,
confidential circumstances.  Specifically, federal law provides that an individual shall not be held criminally or civilly
liable under any state or federal trade secret law for the disclosure of a trade secret under either of the following conditions:

 

		·	Where the disclosure is made (A) in confidence to a federal, state or local government official,
either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation
of law; or

		·	Where the disclosure is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal. 

 

Federal law also provides that an individual
who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to
the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document
containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

 

For purposes of this
Section 6, “Confidential Information” means any and all data and information relating to the Company or the Bank, their
activities, business, or clients that (i) is disclosed to Executive or of which Executive becomes aware as a consequence of her
employment with the Company; (ii) has value to the Company; and (iii) is not generally known outside of the Company or the Bank.
 “Confidential Information” shall include, but is not limited to the following types of information regarding, related
to, or concerning the Company or the Bank: trade secrets (as defined by Virginia Uniform Trade Secrets Act); financial plans and
data; management planning information; business plans; operational methods; market studies; marketing plans or strategies; pricing
information; product development techniques or plans; customer lists; customer files, data and financial information; details of
customer contracts; current and anticipated customer requirements; identifying and other information pertaining to business referral
sources; past, current and planned research and development; computer aided systems, software, strategies and programs; business
acquisition plans; management organization and related information (including, without limitation, data and other information concerning
the compensation and benefits paid to officers, directors, employees and management); personnel and compensation policies; new
personnel acquisition plans; and other similar information. “Confidential Information” also includes combinations of
information or materials which individually may be generally known outside of the Company or the Bank, but for which the nature,
method, or procedure for combining such information or materials is not generally known outside of the Company or the Bank. In
addition to data and information relating to the Company or the Bank, “Confidential Information” also includes any
and all data and information relating to or concerning a third party that otherwise meets the definition set forth above, that
was provided or made available to the Company or the Bank by such third party, and that the Company or the Bank has a duty or obligation
to keep confidential. This definition shall not limit any definition of “confidential information” or any equivalent
term under state or federal law. “Confidential Information” shall not include information that has become generally
available to the public by the act of one who has the right to disclose such information without violating any right or privilege
of the Company or the Bank. For purposes of this Section 6, “Person” means any individual or any corporation, partnership,
joint venture, limited liability company, association or other entity or enterprise.

 

    	 	5	 

     

    

  

(b)       Non-competition.
Beginning on the Effective Date and for a period continuing through the twelve (12) months following cessation of Executive’s
employment with the Company (the “Restricted Period”), Executive shall not, directly or indirectly, within any
State in the United States where the Company or the Bank has a retail bank branch at the time Executive’s employment ceases,
own any interest in, control or participate in the ownership or control of, or perform services that are the same as or substantially
similar to the services Executive performed for the Company pursuant to this Agreement for any company, person or entity engaged
in a Competitive Business (as defined herein). A “Competitive Business” shall mean any person or entity that is providing
deposits, money market accounts, certificates of deposit or other typical retail banking deposit-type services or loans on a retail
level, to individuals, businesses or non-profit entities in any State in the United States in which the Company or the Bank has
a retail bank branch at the time Executive’s employment ceases. Notwithstanding the foregoing, nothing in this Agreement
shall prevent Executive from owning for passive investment purposes not intended to circumvent this Agreement, less than five percent
(5%) of the publicly-traded voting securities of any company engaged in the banking, financial services, insurance, brokerage or
other business similar to or competitive with the Company or the Bank (so long as Executive has no power to manage, operate or
control the competing enterprise and no power, alone or in conjunction with other affiliated parties, to select a director, manager,
general partner, or similar governing official of the competing enterprise other than in connection with the normal and customary
voting powers afforded Executive in connection with any permissible equity ownership).

 

(c)Non-solicitation
of Employees. During the Restricted Period, Executive shall not, directly or indirectly solicit, induce or hire, or attempt
to solicit, induce or hire, any person who is an employee of the Company or the Bank at the time Executive’s employment ceases
or within six (6) months prior thereto, to leave his or her employment with the Company or the Bank or join or become affiliated
with any Competitive Business.

 

(d)Non-solicitation
of Customers. During the Restricted Period, Executive shall not, directly or indirectly solicit or induce or attempt to solicit
or induce, any customer, lender, supplier, licensee, licensor or other business relation of the Company or the Bank to terminate
its relationship or contracts with the Company or the Bank, to cease doing business with the Company or the Bank, or in any way
interfere with the relationship between any such customer, lender, supplier, licensee, licensor or business relation and the Company
or the Bank.

 

(e)       Rights
and Remedies Upon Breach. The parties specifically acknowledge and agree that the remedy at law for any breach of the covenants
in Section 6 will be inadequate, and that in the event Executive breaches any such covenant, the Company shall have the right and
remedy, without the necessity of proving actual damage or posting any bond, to enjoin, preliminarily and permanently, Executive
from violating the covenant and to have the covenant specifically enforced by any court of competent jurisdiction, it being agreed
that any breach would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the
Company. Such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company
at law or in equity. The Company and Executive understand and agree that, if the parties become involved in legal action regarding
the enforcement of the covenants in Section 6, the prevailing party in such legal action will be entitled, in addition to any other
remedy, to recover its reasonable costs and attorneys’ fees incurred in enforcing or defending action with respect to such
covenants. The Company’s ability to enforce its rights under the covenants in Section 6 or applicable law against Executive
shall not be impaired in any way by the existence of a claim or cause of action on the part of Executive based on, or arising out
of, this Agreement or any other event or transaction.

 

    	 	6	 

     

    

 

7.       Non-exclusivity
of Rights. Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in any employee
benefit plan, program, policy or practice provided by the Company or its affiliated companies and for which Executive may qualify.
Amounts that are vested benefits or which Executive is otherwise entitled to receive under any plan, policy, practice or program
of the Company or any of its affiliated companies at or subsequent to the date of termination shall be payable in accordance with
such plan, policy, practice or program.

 

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

 

9.       Successors.
This Agreement is personal to Executive and shall not be assignable by Executive otherwise than by will or the laws of descent
and distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives. This
Agreement can be assigned by the Company and shall be binding and inure to the benefit of the Company, and their successors and
assigns.

 

10.       Code
Section 409A.

 

(a)       General.
This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid
or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the Internal Revenue Code
of 1986, as amended, and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable
transition relief under Section 409A of the Code) (“Section 409A of the Code”). Nevertheless, the tax treatment
of the benefits provided under the Agreement is not warranted or guaranteed. Neither the Company nor its directors, officers, employees
or advisers, shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Executive as a result of
the application of Section 409A of the Code.

 

(b)       Definitional
Restrictions. Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred
Compensation”) would otherwise be payable or distributable hereunder by reason of Executive’s termination of employment,
such Non-Exempt Deferred Compensation will not be payable or distributable to Executive by reason of such circumstance unless the
circumstances giving rise to such termination of employment meet any description or definition of “separation from service,”
in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available
under such definition). If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, then, subject
to subsection (c) below, such payment or distribution shall be made at the time and in the form that would have applied absent
the non-409A-conforming event.

 

(c)       Six-Month
Delay in Certain Circumstances. Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would
constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of Executive’s
separation from service during a period in which she is a Specified Employee (as defined below), then, subject to any permissible
acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts
of interest), or (j)(4)(vi) (payment of employment taxes): (i) the amount of such Non-Exempt Deferred Compensation that would otherwise
be payable during the six-month period immediately following Executive’s separation from service will be accumulated through
and paid or provided on the first day of the seventh month following Executive’s separation from service (or, if Executive
dies during such period, within 30 days after Executive’s death) (in either case, the “Required Delay Period”);
and (ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the
Required Delay Period.

 

    	 	7	 

     

    

 

(d)       Timing
of Release of Claims. Whenever in this Agreement a payment or benefit is conditioned on Executive’s execution of a release
of claims, such release must be executed and all revocation periods shall have expired within 60 days after the date of termination;
failing which such payment or benefit shall be forfeited. If such payment or benefit constitutes Non-Exempt Deferred Compensation,
then such payment or benefit (including any installment payments) that would have otherwise been payable during such 60-day period
shall be accumulated and paid on the 60th day after the date of termination provided such release shall have been executed
and such revocation periods shall have expired. If such payment or benefit is exempt from Section 409A of the Code, the Company
may elect to make or commence payment at any time during such period.

 

(e)       Timing
of Reimbursements and In-kind Benefits. If Executive is entitled to be paid or reimbursed for any taxable expenses under this
Agreement, and such payments or reimbursements are includible in Executive’s federal gross taxable income, the amount of
such expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the
reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was
incurred. No right of Executive to reimbursement of expenses under this Agreement shall be subject to liquidation or exchange for
another benefit.

 

11.       Modified
Cutback of Compensation Deemed to be Contingent on a Change of Control. If any benefits or payments are to be made under the
terms of this Agreement or any other agreement between Executive and the Company or the Bank following a transaction that constitutes
a change in the ownership or effective control of the Company or the Bank or in the ownership of a substantial portion of the assets
of the Company or the Bank such that the provisions of Section 280G of the Internal Revenue Code of 1986, as amended, and any regulations
thereunder (“Code Section 280G”) or Section 4999 of the Internal Revenue Code and any regulations thereunder could
potentially apply to such compensation, then the following provisions shall be applicable:

 

(a)       In
the event the independent accountants serving as auditors for the Company on the date of a change of control within the meaning
of Code Section 280G (or any other accounting firm designated by the Company) determine that some or all of the payments or benefits
scheduled under this Agreement, as well as any other payments or benefits on such change of control, would be nondeductible by
the Company or the Bank under Code Section 280G, then the payments scheduled under this Agreement and all other agreements between
Executive and the Company will be reduced to one dollar less than the maximum amount which may be paid without causing any such
payment or benefit to be nondeductible. Any reduction of benefits or payments required to be made under this Section 11(a) shall
be taken in the following order: first from cash compensation and then from payments or benefits not payable in cash, in each case
in reverse order beginning with payments or benefits which are to be paid the farthest in time from the date of determination.

 

(b)       Notwithstanding
the foregoing Section 11(a), in the event the independent accountants serving as auditors for the Company on the date of a change
of control within the meaning of Code Section 280G (or any other accounting firm designated by the Company) determine that the
net economic benefit to Executive after payment of all income and excise taxes is greater without giving effect to Section 11(a)
than Executive’s net economic benefit after a reduction by reason of the application of Section 11(a), then Section 11(a)
shall be a nullity and without any force or effect. Any decisions regarding the requirement or implementation of the reductions
to compensation described in Section 11(a) shall be made by the independent accountants serving as auditors for the Company on
the date of a change of control within the meaning of Code Section 280G (or any other accounting firm designated by the Company),
shall be made at the Company’s expense and shall be binding on the parties.

 

    	 	8	 

     

    

 

12.       Regulatory
Action.

 

(a)       If
Executive is removed and/or permanently prohibited from participating in the conduct of the Company’s affairs by an order
issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. 1818(e)(4)
and (g)(1)), all obligations of the Company under this Agreement shall terminate, as of the effective date of such order.

 

(b)       If
Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company’s affairs by a notice
served under Section 8(e)(3) or 8(g)(1) of the FDIA (12 U.S.C. 1818(e)(3) and (g)(1)), all obligations of the Company under this
Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice
are dismissed, the Company shall reinstate (in whole or in part) any of its obligations which were suspended.

 

 

(c)       If
the Company is in default (as defined in Section 3(x)(1) of the FDIA), all obligations under this Agreement shall terminate as
of the date of default.

 

(d)       All
obligations under this Agreement shall be terminated, except to the extent a determination is made that continuation of the Agreement
is necessary for the continued operation of the Company (1) by the director of the FDIC or his or her designee (the “Director”),
at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Company under the authority contained
in 13(c) of the FDIA; or (2) by the Director, at the time the Director approves a supervisory merger to resolve problems related
to operation of the Company when the Company is determined by the Director to be in an unsafe and unsound condition.

 

(e)       Notwithstanding
anything contained in this Agreement to the contrary, no payments shall be made pursuant to any provision herein in contravention
of the requirements of Section 2[18(k)] of the FDIA (12 U.S.C. 1828(k)). In particular, the provisions pertaining to the potential
for payments shall have no force or effect as long as either the agreement concerning the potential for payments or the actual
payment of such amounts would be considered a “golden parachute payment,” with the meaning of 12 C.F.R. Section 359.1(f).

 

13.       Miscellaneous.

 

(a)       Applicable
Law; Forum Selection; Consent to Jurisdiction. The Company and Executive agree that this Agreement shall be governed by and
construed and interpreted in accordance with the laws of the State of Virginia without giving effect to its conflicts of law principles.
Executive agrees that the exclusive forum for any action to enforce this Agreement, as well as any action relating to or arising
out of this Agreement, shall be the Circuit Court of Fairfax County or the federal court encompassing that jurisdiction, at the
option of the Company. With respect to any such court action, Executive hereby irrevocably submits to the personal jurisdiction
of such courts. The parties hereto further agree that the courts listed above are convenient forums for any dispute that may arise
herefrom and that neither party shall raise as a defense that such courts are not convenient forums.

 

    	 	9	 

     

    

 

(b)       Non-Duplication.
Notwithstanding anything to the contrary in this Agreement, and except as specifically provided below, any severance payments or
benefits received by Executive pursuant to this Agreement shall be in lieu of any general severance policy or other severance plan
maintained by the Company (other than a stock option, restricted stock, share or unit, performance share or unit, supplemental
retirement, deferred compensation or similar plan or agreement which may contain provisions operative on a termination of Executive’s
employment or may incidentally refer to accelerated vesting or accelerated payment upon a termination of employment).

 

(c)       Captions.
The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 

(d)       Amendments.
This Agreement may not be amended or modified otherwise than-by a written agreement executed by the parties hereto or their respective
successors and legal representatives.

 

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

 

	
        If to Executive:

        On file with the Company
	 	
        If to the Company:

        6830 Old Dominion Drive

        McLean, Virginia 22101

        Attention: CEO 

 

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

 

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

 

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

 

(h)       Waivers.
Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and
conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement or of the future
performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained
in a writing signed by the party making the waiver.

 

(i)Entire Agreement.
This Agreement contains the entire agreement between the Company and Executive with respect to the subject matter hereof and, from
and after the date hereof, this Agreement shall supersede any other agreement, written or oral, between the parties relating to
the subject matter of this Agreement, including but not limited to the Prior Agreement and any other prior discussions, understandings,
and/or agreements between the parties, written or oral, at any time. 

 

    	 	10	 

     

    

 

(j)       Construction.
The parties understand and agree that because they both have been given the opportunity to have counsel review and revise this
Agreement, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement. Instead, the language of all parts of this Agreement shall be construed
as a whole, and according to its fair meaning, and not strictly for or against either of the parties.

 

(k)       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.

 

(Signatures on following page)

 

    	 	11	 

     

    

 

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

 

 

	 	/s/ Georgia S. Derrico	 
	 	Georgia S. Derrico 	 
	 	 	 
	 	 	 
	 	 	 
	 	/s/ Joe A. Shearin	 
	 	SOUTHERN NATIONAL 	 
	 	BANCORP OF VIRGINIA, INC.	 
	 	By: Joe A. Shearin	 
	 	Its:  President and Chief Executive Officer	 

 

 

 

 

[Derrico Employment Agreement]

 

    	 	12

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