Document:

EXHIBIT 10.11

                                 LIFE INSURANCE
                      ENDORSEMENT METHOD SPLIT DOLLAR PLAN
                                    AGREEMENT

Insurer:                         Jefferson Pilot Life Insurance Company
                                 ING Southland Life Insurance Company

Policy Number:                   JP5098260
                                 0660003207

Bank:                            The Fauquier Bank

Insured:                         C. Hunton Tiffany

Relationship of Insured to Bank: Executive

Trust:                           Rabbi Trust for The Fauquier Bank Rabbi Trust
                                 for the Executive Supplemental Retirement Plan
                                 Agreement and the Endorsement Method Split
                                 Dollar Plan Agreement

The respective rights and duties of the Bank and the Insured in the
above-referenced policy shall be pursuant to the terms set forth below:

I. DEFINITIONS

    Refer to the policy contract for the definition of all terms in this
    Agreement.

II. POLICY TITLE AND OWNERSHIP

    Title and ownership shall reside in the Trustee for the Rabbi Trust for the
    Executive Supplemental Retirement Plan Agreement and the Endorsement Method
    Split Dollar Plan Agreement for its use and for the use of the Insured all
    in accordance with this Agreement. The Trustee at the direction of the Bank
    may, to the extent of its interest, exercise the right to borrow or withdraw
    on the policy cash values. Where the Trustee at the direction of the Bank
    and the Insured (or assignee, with the consent of the Insured) mutually
    agree to exercise the right to increase the coverage under the subject Split
    Dollar policy, then, in such event,

<PAGE>

    the rights, duties and benefits of the parties to such increased coverage
    shall continue to be subject to the terms of this Agreement.

III. BENEFICIARY DESIGNATION RIGHTS

    The Insured (or assignee) shall have the right and power to designate a
    beneficiary or beneficiaries to receive the Insured's share of the proceeds
    payable upon the death of the Insured, and to elect and change a payment
    option for such beneficiary, subject to any right or interest the Trustee at
    the direction of the Bank or the Trust may have in such proceeds, as
    provided in this Agreement.

IV. PREMIUM PAYMENT METHOD

    The Bank or the Trustee at the direction of the Bank shall pay an amount
    equal to the planned premiums and any other premium payments that might
    become necessary to keep the policy in force.

V.  TAXABLE BENEFIT

    Annually the Insured will receive a taxable benefit equal to the assumed
    cost of insurance as required by the Internal Revenue Service. The Bank or
    the Trustee at the direction of the Bank will report to the Insured the
    amount of imputed income each year on Form W-2 or its equivalent.

VI. DIVISION OF DEATH PROCEEDS

    Subject to Paragraphs VII and IX herein, the division of the death proceeds
    of the policy is as follows:

    A. Upon the death of the Insured, the Insured's beneficiary(ies), designated
       in accordance with Paragraph III, shall be entitled to an amount equal to
       Two Hundred Seventy Five Thousand and NO/100 Dollars ($275,000.00), or,
       one hundred percent (100%) of the net at risk insurance portion of the
       proceeds, whichever amount is less. The net at risk insurance portion is
       the total proceeds less the cash value of the policy.

    B. The Bank shall be entitled to the remainder of such proceeds.

    C. The Bank and the Insured (or assignees) shall share in any interest due
       on the death proceeds on a pro rata basis as the proceeds due each
       respectively bears to the total proceeds, excluding any such interest.

                                       2
<PAGE>

VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Trust shall at all times be entitled to an amount equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash withdrawals previously incurred by the
     Trustee at the direction of the Bank and any applicable surrender charges.
     Such cash value shall be determined as of the date of surrender or death as
     the case may be.

VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy involves an endowment or annuity element, the
     Bank's or the Trust's right and interest in any endowment proceeds or
     annuity benefits, on expiration of the deferment period, shall be
     determined under the provisions of this Agreement by regarding such
     endowment proceeds or the commuted value of such annuity benefits as the
     policy's cash value. Such endowment proceeds or annuity benefits shall be
     considered to be like death proceeds for the purposes of division under
     this Agreement.

IX. TERMINATION OF AGREEMENT

     This Agreement shall terminate upon the occurrence of any one of the
     following:

     1.  The Insured shall be discharged from employment with the Bank for
         Cause. For the purposes of this Agreement, "Cause" shall mean the
         Executive's gross negligence or willful misconduct, which is
         detrimental to the best interests of the Bank's business operations.
         For purposes of this paragraph, no act, or failure to act, on the
         Executive's part shall be considered "willful" unless done, or omitted
         to be done, by him not in good faith and without reasonable belief that
         his act or omission was in the best interest of the Bank; provided that
         any act or omission to act on the Executive's behalf in reliance upon
         an opinion of counsel to the Bank or counsel to the Executive's shall
         not be deemed to be willful. Notwithstanding the foregoing, the
         Executive shall not be deemed to have been terminated for Cause unless
         and until there shall have been delivered to him a copy of a
         certification by a majority of the outside members of the Board of
         Directors of the Bank finding that, in the good faith opinion of such
         majority, the Executive was guilty of conduct which is deemed to be
         Cause within the meaning of the first sentence of this paragraph and
         specifying the particulars thereof in detail, after reasonable notice
         to the Executive and an opportunity for him, together with his counsel,
         heard before such majority.

                                        3
<PAGE>

     2.  Surrender, lapse, or other termination of the Policy by the Bank.

     Upon such termination, the Insured (or assignee) shall have a fifteen (15)
     day option to receive from the Bank or the Trustee at the direction of the
     Bank an absolute assignment of the policy in consideration of a cash
     payment to the Bank or the Trustee at the direction of the Bank, whereupon
     this Agreement shall terminate. Such cash payment referred to hereinabove
     shall be the greater of:

     1.  The Bank's or the Trust's share of the cash value of the policy on the
         date of such assignment, as defined in this Agreement; or

     2.  The amount of the premiums which have been paid by the Bank or the
         Trustee at the direction of the Bank prior to the date of such
         assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate, and the Insured (or assignee) agrees that all
     of the Insured's rights, interest and claims in the policy shall terminate
     as of the date of the termination of this Agreement.

     The Insured expressly agrees that this Agreement shall constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above, this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.

X.   INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual, trust or other organization, any right, title or interest in
     the subject policy nor any rights, any options, privileges or duties
     created under this Agreement.

XI.  AGREEMENT BINDING UPON THE PARTIES

     This Agreement shall bind the Insured and the Bank and the Trustee, their
     heirs, successors, personal representatives and assigns.

XII. ERISA PROVISIONS

     The following provisions are part of this Agreement and are intended to
     meet the requirements of the Employee Retirement Income Security Act of
     1974 ("ERISA"):

                                       4
<PAGE>

     A.  Named Fiduciary and Plan Administrator.
         ---------------------------------------

         The "Named Fiduciary and Plan Administrator" of this Endorsement Method
         Split Dollar Agreement shall be The Fauquier Bank until resignation or
         removal by the Board of Directors. As Named Fiduciary and Plan
         Administrator, the Bank or the Trustee at the direction of the Bank
         shall be responsible for the management, control, and administration of
         this Split Dollar Plan as established herein. The Named Fiduciary may
         delegate to others certain aspects of the management and operation
         responsibilities of the Plan, including the employment of advisors and
         the delegation of any ministerial duties to qualified individuals.

     B.  Funding Policy.
         ---------------

         The funding policy for this Split Dollar Plan shall be to maintain the
         subject policy in force by paying, when due, all premiums required.

     C.  Basis of Payment of Benefits.
         -----------------------------

         Direct payment by the Insurer is the basis of payment of benefits under
         this Agreement, with those benefits in turn being based on the payment
         of premiums as provided in this Agreement.

     D.  Claim Procedures.
         -----------------

         Claim forms or claim information as to the subject policy can be
         obtained by contacting Benmark, Inc. (770-952-l529). When the Named
         Fiduciary has a claim which may be covered under the provisions
         described in the insurance policy, they should contact the office named
         above, and they will either complete a claim form and forward it to an
         authorized representative of the Insurer or advise the name Fiduciary
         what further requirements are necessary. The Insurer will evaluate and
         make a decision as to payment. If the claim is payable, a benefit check
         will be issued in accordance with the terms of this Agreement.

     In the event that a claim is not eligible under the policy, the Insurer
     will notify the Named Fiduciary of the denial pursuant to the requirements
     under the terms of the policy. If the Named Fiduciary is dissatisfied with
     the denial of the claim and wishes to contest such claim denial, they
     should contact the office named above and they will assist in making
     inquiry to the Insurer. All objections to the Insurer's actions should be
     in writing and submitted to the office named above for transmittal to the
     Insurer.

                                       5
<PAGE>

XIII. GENDER

      Whenever in this Agreement words are used in the masculine or neuter
      gender, they shall be read and construed as in the masculine, feminine or
      neuter gender, whenever they should so apply.

XIV. INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

      The Insurer shall not be deemed a party to this Agreement, but will
      respect the rights of the parties as herein developed upon receiving an
      executed copy of this Agreement. Payment or other performance in
      accordance with the policy provisions shall fully discharge the Insurer
      for any and all liability.

XV. CHANGE OF CONTROL

      For purposes of this Agreement, a Change of Control of the Bank occurs if,
      after the date of this Agreement, (i) any person, including a "group" as
      defined in Section 13(d)(3) of the Securities Exchange Act of 1934 (but
      excluding any group of which the Executive is a member), becomes the owner
      or beneficial owner of securities of the Bank or of Fauquier Bankshares,
      Inc. (the "Holding Company") having 20% or more of the combined voting
      power of the then outstanding Bank or Holding Company securities that may
      be cast for the election of the Bank or Holding Company directors other
      than a result of the issuance of securities initiated by the Bank or
      Holding Company, as long as the majority of the Board of Directors
      approving the purchases is a majority at the time the purchases are made;
      or (ii) as the direct or indirect result of, or in connection with, a
      tender or exchange offer, a merger or other business combination, a sale
      of assets, contested election, or any combination of these events, the
      persons who were directors of the Bank or Holding Company before such
      events cease to constitute a majority of the Bank's or Holding Company's
      Board, or any successor's board, within two years of the last date of such
      transactions. For purposes of this Agreement, the Control Change Date is
      the date on which an event described in (i) or (ii) occurs. If a Change of
      Control occurs on account of a series of transactions, the Control Change
      Date is the date of the last of such transactions. Upon a Change of
      Control, if the Insured's employment is subsequently terminated, except
      for cause, then the Insured shall be one hundred percent (100%) vested in
      the benefits promised in this Agreement and, therefore, upon the death of
      the Insured, the Insured's beneficiary(ies) (designated in accordance with
      Paragraph III) shall receive the death benefit provided herein as if the
      Insured had died while employed by the Bank [See Subparagraphs VI(A)
      & (B)].

                                       6
<PAGE>

XVI. AMENDMENT OR REVOCATION

      It is agreed by and between the parties hereto that, during the lifetime
      of the Insured, this Agreement may be amended or revoked at any time or
      times, in whole or in part, by the mutual written consent of the Insured
      and the Bank.

XVII. EFFECTIVE DATE

      The Effective Date of this Agreement shall be June 30, 2000.

XVIII. SEVERABILITY AND INTERPRETATION

      If a provision of this Agreement is held to be invalid or unenforceable,
      the remaining provisions shall nonetheless be enforceable according to
      their terms. Further, in the event that any provision is held to be over
      broad as written, such provision shall be deemed amended to narrow its
      application to the extent necessary to make the provision enforceable
      according to law and enforced as amended.

XIX. APPLICABLE LAW

      The validity and interpretation of this Agreement shall be governed by the
      laws of the Commonwealth of Virginia.

Executed at Warrenton, Virginia this 10th day of August, 2000.

                                            THE FAUQUIER BANK
                                            Warrenton, Virginia

/s/ [illegible]                             By: /s/ Rosanne T. Gorkowski
-----------------------------               ----------------------------
Witness                                     Title:  [illegible]

/s/ [illegible]                             /s/ C. Hunton Tiffany
-----------------------------               ----------------------------
Witness                                     C. Hunton Tiffany

                                       7EXHIBIT 10.12

                               THE FAUQUIER BANK
                               -----------------

                EXECUTIVE SPLIT DOLLAR LIFE INSURANCE AGREEMENT

         This EXECUTIVE SPLIT DOLLAR LIFE INSURANCE AGREEMENT is made this 26
day of November, 1996, between The Fauquier Bank, a Virginia banking corporation
(the "Bank") and Randy K. Ferrell, an executive employed by the Bank (the
"Executive").

         1. Definitions. Where indicated by initial capital letters, the
following terms shall have the following meanings.

            (a) Agreement: This Executive Split Dollar Life Insurance Agreement
(including Schedules and Attachments) entered into between the Bank and the
Executive pursuant to the Plan.

            (b) Beneficiary: The person or persons designated in writing by the
Executive to receive the Executive Death Benefit.

            (c) Cause: Cause means a determination by the Bank that the
Executive may have been guilty of criminal conduct (regardless of whether proven
or admitted), gross negligence or willful misconduct in the performance of his
duties or otherwise, or has engaged in conduct which, if generally known, would
bring significant discredit to or give rise to significant adverse publicity to
the Bank. The cessation of employment of the Executive shall not be deemed to be
for Cause unless and until there shall have been delivered to the Executive a
copy of a resolution duly adopted by the affirmative vote of not less than
two-thirds of the entire membership of the Board at a meeting of the Board
called and held for such purpose (after reasonable notice is provided to the
Executive and the Executive is given an opportunity, together with counsel, to
be heard before the Board), finding that, in the good faith opinion of the
Board, the Executive is guilty of the conduct described above, and specifying
the particulars thereof in detail.

            (d) Compensation: Compensation means the Executive's annual rate of
salary as in effect when the Executive becomes eligible for initial
participation or subsequent increase of plan benefits.

            (e) Executive Death Benefit: The level of insurance payable to the
Executive from the Existing Policies as designated on Schedule A

            (f) Insurer: Massachusetts Mutual Life Insurance Company or any
other insurance company issuing a life insurance contract on the Executive's
life

            (g) Plan: The Fauquier Bank Executive Split Dollar Life Insurance
Plan.

<PAGE>

            (h) Policy: Either of two life insurance contracts issued on the
life of the Executive pursuant to the Plan as identified on Schedule A.

            (i) Recoverable Amount: The Bank's aggregate premiums for the Policy
(including any amount paid for an existing policy) less any amounts received
from the Executive in conjunction with the Plan.

            (j) Retirement: Any termination of employment other than for Cause
occurring after the Executive shall reach age 55 and has been employed for 10
years or more with the Bank.

            (k) Roll-Out: Division of the Policy into two separate policies, one
to be the sole property of Bank, and the other to be the sole property of the
Executive.

         2. Application for Insurance. The Bank has or will purchase two
existing Policies on the Executive's life from the Executive's prior employer
(the "Existing Policies") as identified on Schedule A. The Bank may apply for
additional insurance to assure recovery to the Bank of its costs associated with
the Plan. The Bank and the Executive agree to take any action necessary to cause
the Insurer to transfer the Existing Policies to the Bank. The Existing Policies
and any other Policy shall be subject to the terms of this Agreement.

         3. Amount of Insurance. The initial amount of insurance shall be as
provided in the Existing Policies.

         4. Ownership. The Bank shall be the owner of the Policy, and it may
exercise all ownership rights granted to the owner by the terms of the Policy
except as otherwise provided in this Agreement. The Bank shall keep possession
of the Policy.

         5. Dividend Option. All dividends declared by the Insurer on the Policy
shall be applied to purchase additional paid-up life insurance on the life of
the Executive, provided that such additional insurance shall not increase the
Executive Death Benefit.

         6. Payment of Premiums.

            (a) The Bank agrees to pay the total amount of each annual Policy
premium on or before the due date of such premium, or within the grace period
provided, if any.

            (b) Thirty (30) days prior to the due date of each annual Policy
premium, the Bank shall notify the Executive of the exact amount due from the
Executive to the Bank as a premium payment. The amount due shall not include any
premium resulting from any substandard insurance rating of the Executive. The
annual amount payable by the Executive may be deducted ratably from the
Executive's compensation during the year. The amount due shall be equal to the
lesser of:

                                    2
<PAGE>

               (i) the annual cost of the term life insurance protection on the
            life of the Executive as measured by the PS-58 rate (or substitute
            table) published from time to time by the Internal Revenue Service;
            and

               (ii) the term rates published from time to time by the Insurer,
            as determined by the Insurer, and selected by the Bank for use
            within the Plan.

         7. Death Benefits. Upon the Executive's death, the Bank will promptly
take the appropriate action to obtain the death benefits provided under the
Policy, and

            (a) the Bank shall be entitled to receive the excess of the total
Policy proceeds over the Executive Death Benefit. The receipt by the Bank of the
excess over the amount shall constitute satisfaction of the Executive's
obligation to the Bank under this Agreement; and

            (b) the beneficiary or beneficiaries named under the Policy shall be
entitled to receive the Executive Death Benefit which shall be paid in
accordance with the settlement option elected by the Bank at the Executive's
request.

         8. Policy Loans.

            (a) The Bank shall have the right to obtain loans secured by the
Policy from the Insurer or from others. The Bank also has the right to assign
the Policy as security for the repayment of such loans. The amount of such loans
together with interest thereon shall at no time exceed the Bank's Recoverable
Amount. All interest charges with respect to any loans shall be paid by the Bank
promptly upon billing from the Insurer or other lender and such interest charges
shall not be part of the Bank's Recoverable Amount.

            (b) If the Policy is assigned or encumbered in any way, other than a
Policy Loan, on the date of the Executive's death, the Bank shall secure a
release or discharge of the assignment or encumbrance to ensure the prompt
payment of the Executive Death Benefit under the Policy to the Executive's
beneficiary or beneficiaries.

         9. Timing of Roll-Out: Roll-Out shall occur on the first policy
anniversary on which:

            (a) the Bank may retain a policy with cash surrender value equal to
the Bank's Recoverable Amount and with the death benefits at least equal to that
amount as would be provided by a single premium equal to the Recoverable Amount,
and

            (b) the Executive may retain a policy with death benefits at least
equal to the Executive Death Benefit, with no outlays required to sustain this
amount based on the dividend schedule in effect on the Roll-Out date, and with
no loans.

                                       3
<PAGE>

         10. Amendment and Termination of Agreement.

            (a) This Agreement may not be amended, altered, or modified except
in writing and signed by the Bank and the Executive

            (b) This Agreement shall terminate upon the earliest to occur of any
of the following events:

               (i) termination of the Executive's employment other than by
            reason of death or disability (unless the Committee determines that
            Executive shall be treated as an active employee after a termination
            of employment);

               (ii) termination of the Agreement by the Executive upon written
            notice to the Bank;

               (iii) cessation of the Bank's business or the bankruptcy,
            receivership or dissolution of the Bank, unless the Bank's business
            is continued by a successor corporation or business entity.

         Termination of the Plan by the Bank shall not constitute a termination
of this Agreement.

            (c) If the Executive's termination of employment with the Bank is by
reason of disability (as determined by the Bank), this Agreement shall remain in
full force and effect.

            (d) If the Executive's termination of employment with the Bank is by
reason of Retirement, this Agreement shall remain in force and effect.

         11. Disposition of Policy on Termination of Agreement.

            (a) As of the Executive's Roll-Out date, the Bank shall act to cause
the Insurer to divide the policy as provided in Section 9 of this Agreement.

            (b) If this Agreement is terminated because of the Executive's
termination of employment for Cause, the Executive shall have no rights to the
Policy or any of its values, and shall not be permitted to effectuate a Roll-out
at any time.

            (c) If this Agreement is terminated because of the Executive's
termination of employment for a reason other than Cause, Retirement, or
disability, or pursuant to Section 10(ii), the Executive, at the next Policy
anniversary date after his termination of employment (or a future Policy
anniversary date as allowed by the Bank), shall have the absolute right to
purchase all of the Bank's right, title and interest in the Policy free and
clear of all liens, claims or encumbrances (including any Policy loans) for
cash, by tendering to the Bank an amount equal to the Bank's Recoverable Amount.
The Executive may direct the Bank to borrow against the

                                       4
<PAGE>

cash value of the  Policy or  surrender  any  portion of the Policy and may then
purchase the Policy, subject to any such Policy loan, for an amount equal to the
Bank's Recoverable Amount less such borrowed or cashed-in values.

            (d) If this Agreement is terminated pursuant to Section 10(b)(iii),
the Executive, at the next Policy anniversary date after the termination (or a
subsequent Policy anniversary date as allowed by the Bank), shall have the
absolute right to purchase all of the Bank's right, title and interest in the
Policy free and clear of all liens, claims or encumbrances (including any Policy
loans) for cash, by tendering to the Bank an amount equal to the lesser of:

               (i) the Bank's Recoverable Amount, and,

               (ii) the Cash Surrender Value, as defined by the Insurer, of any
            policy subject to this Agreement.

The Executive may direct the Bank to borrow against the cash value of the Policy
or surrender any portion of the Policy and purchase the Policy, subject to any
such Policy loan for an amount equal to the lesser of the Bank's Recoverable
Amount or the Cash Surrender Value less such borrowed or cashed-in values.

            (e) Notwithstanding anything contained in this Section to the
contrary, upon termination of this Agreement, the Bank may divide the Policy
such that the Bank can retain the portion of the Policy having a total cash
value equal to the Bank's Recoverable Amount and the Executive can retain the
balance of the policy and the paid-up additions on the Policy.

        12. Miscellaneous.

            (a) This Agreement shall not affect any rights the Executive may
otherwise have under any pension, profit sharing or other employee benefit plan
(except group term life insurance) established by the Bank.

            (b) This Agreement shall be binding on the Bank, its successors and
assigns, and it shall be interpreted in accordance with the laws of the
Commonwealth of Virginia.

            (c) Except as permitted by law or by the Bank's written consent, any
benefits to which the Executive or his beneficiaries may become entitled under
this Agreement shall not be subject to anticipation, alienation, sale, transfer,
assignment, or pledge. The Bank shall not be liable for, or subject to, the
debts, contracts, liabilities, or torts of any person entitled to benefits under
this Agreement.

            (d) This Agreement shall not confer upon the Executive any legal or
equitable right against the Bank or the Administrator except as expressly
provided in this Agreement, the Plan and the Policy.

                                       5
<PAGE>

            (e) Neither this Agreement, the Plan nor the Policy shall constitute
an inducement or consideration for the employment of the Executive and shall not
give the Executive any right to be retained in the employ of the Bank, and the
Bank hereby retains the right to discharge the Executive at any time, with or
without cause.

            (f) The Executive's interest under this Agreement, the Plan and the
Policy, may be assigned by the Executive upon written notice to the Bank.

            (g) Under no circumstances shall the Insurer be deemed to be a party
to this Agreement.

            (h) If a provision of this Agreement is not valid or enforceable,
that fact in no way affects the validity of enforceability of any other
provision.

         In consideration of the foregoing, the Bank ad the Executive have
executed this Agreement in duplicate, all as of the day and year first written
above.

THE FAUQUIER BANK

By: /s/ H. Frances Stringfellow
    ----------------------------

Title: Sup. HK
       -------------------------

EXECUTIVE

/s/ Randy K. Ferrell
--------------------------------
    Randy K. Ferrell

                                        6
<PAGE>

                                THE FAUQUIER BANK
                                -----------------

                 EXECUTIVE SPLIT DOLLAR LIFE INSURANCE AGREEMENT
                                      WITH
                                RANDY K. FERRELL

                                   SCHEDULE A

1.   Massachusetts Mutual Life Insurance Company Policy Number 7 246 280

     Executive Death Benefit $325,000

2.   Massachusetts Mutual Life Insurance Company Policy Number 6 952 533

     Executive Death Benefit $120,000
<PAGE>

                               THE FAUQUIER BANK
                               -----------------

                   EXECUTIVE SPLIT DOLLAR LIFE INSURANCE PLAN

         1. Plan Name and Purpose. This Plan shall be known as the "The Fauquier
Bank Executive Split Dollar Life Insurance Plan" (the "Plan"). The purpose of
this Plan is to provide certain senior executive employees of The Fauquier Bank
(the "Bank") and its subsidiary corporations with life insurance protection
under life insurance policies acquired pursuant to the Plan.

         2. Effective Date. The effective date of the Plan is January 1, 1996

         3. Eligibility. Participation in this Plan is limited to the senior
executive employees ("Executives") approved from time to time by the Bank's
Chief Executive Officer as eligible to participate in the Plan. No person shall
participate in this Plan who is not insurable or is not an active employee (or
treated as an active employee with the consent of the Bank) of the Bank or one
of its subsidiary corporations.

         4. Participation. An eligible Executive will commence participation in
this Plan by executing a split dollar life insurance agreement (a "Split Dollar
Agreement") and agreeing to pay a portion of the premium for the purchase of
life insurance to the extent required by, and in accordance with, the terms of
the Split Dollar Agreement. If an Executive does not elect to participate in the
Plan when first eligible, such Executive may elect to participate on any
subsequent date if the Bank approves the Executive's participation.

         5. Amount of Insurance. The amount of insurance which can be purchased
initially under the Plan on an Executive shall be the amount provided under the
Split Dollar Agreement for the Executive. To the extent provided in the Split
Dollar Agreement, an Executive may increase the death benefit payable to the
Executive as of the anniversary of the Split Dollar Agreement in any subsequent
year, provided the Executive is then insurable. Increases in the amount shall be
not less than a minimum amount established by the insurance company.

         6. Administration. The Bank is the named fiduciary under the Plan. It
has the authority to interpret this Plan to resolve ambiguities, inconsistencies
and omissions, to determine any questions of fact, to determine the eligibility
and rights of an Executive under the Plan and the right to benefits, and amount
of benefits, if any, payable to the Executive's named beneficiary in accordance
with the provisions of the split dollar life insurance agreement executed by the
Executive. The Bank shall be the administrator unless it shall appoint an
administrator and delegate its administrative and fiduciary responsibilities to
such administrator.
<PAGE>

         7. Claims Procedure.

              (a) Right to File Claim. Every Executive, former Executive, or
beneficiary (a "Claimant") shall be entitled to file a claim for benefits under
the Plan. The claim is required to be in writing, and must be filed with the
administrator.

              (b) Notice of Denial. If the claim is denied by the administrator,
either in whole or in part, the Claimant shall be furnished a written notice of
denial of the claim containing the following information: (i) the specific
reason or reasons for denial; (ii) a specific reference to pertinent Plan
provisions on which the denial is based; (iii) a description of any additional
material or information necessary for the Claimant to perfect the claim, and an
explanation of why the material or information is necessary; and (iv) an
explanation of the claims review procedure. The notice shall be furnished within
a reasonable time after receipt of the claim. If the notice is not furnished
within 90 days following the date the claim is filed, the claim shall be deemed
denied and the review procedure shall apply

              (c) Review Procedure.

                  (i) Upon denial of a claim, the Claimant may submit a written
         application requesting a review by the administrator. The Claimant also
         may review pertinent documents and submit issues and comments in
         writing.

                  (ii) A review may be requested at any time within 60 days
         following the date of denial of the claim. Any action required or
         authorized to be taken by the claimant may be taken by a representative
         authorized in writing by the Claimant to represent him. The decision on
         review shall be in writing and shall be issued within 60 days following
         receipt of the request for review. The period for decision may be
         extended to a date not later than 120 days after receipt of a request
         for review if it is determined that special circumstances require
         extension. The decision on review shall include specific reasons for
         the decision and specific references to the pertinent Plan provisions
         on which the decision is based.

         8. Amendment and Termination. Subject to any right which may exist
under individual Split Dollar Agreements executed by Executives pursuant to this
Plan, the Bank may, in its sole discretion, amend or terminate this Plan at any
time.

         9. Successors and Assigns. The obligations under this Plan and any
Split Dollar Agreement entered into pursuant to this Plan shall be binding on
the Bank's successors and assigns.

         10. Governing Law. Except as otherwise provided by federal law, this
Plan shall be construed in accordance with the governed by the laws of the
Commonwealth of Virginia.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the Bank by its duly authorized officers, has
caused this Plan to be executed this 26th day of November, 1996.

                                                 THE FAUQUIER BANK

                                                 By /s/ H. F. Stringfellow
                                                    ----------------------

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