ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On June 30, 2008, Oak Ridge Financial Services, Inc. (the "Company") entered into a Loan Agreement with Silverton Bank, National Association ("Silverton"), whereby Silverton agreed to extend credit to the Company in an aggregate principal amount not exceeding at any time outstanding $9 million (the "Loans"), a copy of which is attached hereto. The proceeds of the Loans will be used for working capital and general corporate purposes, including funding loan growth and future fixed asset expansion of the Company's wholly-owned subsidiary, Bank of Oak Ridge (the "Bank") through contributions of capital to the Bank. In accordance with the Loan Agreement, payments of interest are due and payable on the first day of each fiscal quarter starting on October 1, 2008 and the entire principal balance of all outstanding Loans, all unpaid interest accrued thereon and all other sums and costs owed to Silverton by the Company is due and payable on June 30, 2010. As security for the Loans, the Company pledged all of the issued and outstanding stock of the Bank and executed a Stock Pledge Agreement dated June 30, 2008, a copy of which is attached hereto.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

Exhibit (10)(xviii) Loan Agreement by and between Oak Ridge Financial Services, Inc. and Silverton Bank, National Association dated June 30, 2008 Exhibit (10)(xix) Stock Pledge Agreement by and between Oak Ridge Financial Services, Inc. and Silverton Bank, National Association dated June 30, 2008