Document:

Elective Deferred Compensation Agreement with Michael S. Ives

 Exhibit 10.29 
 HERITAGE BANKSHARES, INC. 
 EXECUTIVE DEFERRED
COMPENSATION AGREEMENT 
 WITH MICHAEL S. IVES 
 THIS EXECUTIVE DEFERRED COMPENSATION AGREEMENT, (the “Agreement”) by and between HERITAGE BANKSHARES, INC., HERITAGE BANK,
(collectively, together with their affiliates and successors, the “Corporation”) and MICHAEL S. IVES (“Executive”), is made effective the 1st day of February, 2010. 
 INTRODUCTION 
 The Corporation has entered into this
Agreement with Executive for the purpose of permitting Executive to defer receipt of salary earned as an employee of the Corporation, in accordance with this Agreement. 
 This Agreement is intended to be unfunded and maintained primarily for the purpose of providing deferred compensation for the Executive who is included within the definition of a “select group of
management or highly compensated employees” (as such phrase is used in ERISA.) This Agreement must be administered and construed in a manner that is consistent with that intent. 
 This Agreement is intended to satisfy the requirements of Code section 409A and Treasury Regulations issued thereunder. Each provision and
term of this Agreement should be interpreted, and each action taken hereunder should be carried out, in accordance with that intent. 
 The Agreement is also intended, due to its structure and terms, to be exempt from the compensation restrictions under the provisions of the Emergency Economic Stabilization Act of 2008 as amended by the American Recovery and Reinvestment
Act of 2009 applicable to financial institutions under the Troubled Asset Relief Program. 
 ARTICLE I 
 DEFINITIONS 
 The following phrases or terms have the indicated meanings: 
  

	1.01	Account 

 Account
means the unfunded bookkeeping account established for Executive under Article II hereof. 
  

	1.02	Base Salary 

 Base
Salary means the base or regular salary paid to Executive by the Corporation. 

	1.03	Beneficiary 

 Beneficiary means the person or persons designated in writing by the Executive in a form attached hereto as Schedule A. If the Executive fails to designate a beneficiary in the manner prescribed by the Board, Beneficiary means the
Executive’s estate. The Executive may amend or change his Beneficiary designation by submitting a new Schedule A. 
  

	1.04	Board 

 Board means
the Board of Directors of the Corporation or, with respect to a particular role or duty under this Agreement, the person or committee, if any, to whom the Board of Directors of the Corporation has delegated responsibility for such role or duty.

  

	1.05	Change in Control 

 A Change in Control occurs on the first to occur of (i) the date that any one person, or more than one person, acting as a group, acquires ownership of stock of the Corporation that, together with stock held by such person or group
constitutes more than 50% of the total fair market value or total voting power of the stock of the Corporation; (ii) the date that any one person or group acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or persons) ownership of stock of the Corporation possessing 30% or more of the total voting power of the stock of the Corporation; (iii) a majority of the members of the Board’s being replaced during any
12 month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or (iv) the date that any one person or group acquires assets (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such person or group) from the Corporation that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all the assets of
the Corporation immediately before such acquisition. This definition of Change in Control shall be interpreted in a manner that is consistent with Treasury Regulation section 1.409A-3(i)(5). 
  

	1.06	Code 

 Code means
the Internal Revenue Code of 1986, as amended. 
  

	1.07	Deferral Election 

 Deferral Election means an irrevocable election in writing (or made through such other method permitted by the Board) and timely filed with the Chief Financial Officer of the Corporation to defer a portion of Executive’s Base Salary
with respect to a Deferral Year. A Deferral Election shall specify the time and form of payment of distributions from the Executive’s Account. 
  

	1.08	Deferral Year 

 Deferral Year means the calendar year in which the Executive’s Base Salary is earned. 
  

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	1.09	Disability or Disabled 

 Disability or Disabled means the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for
a continuous period of not less than 12 months. 
  

	1.10	Effective Date 

 The Effective Date of this Agreement is February 1, 2010. 
  

	1.11	ERISA 

 ERISA means
the Employee Retirement Income Security Act of 1974, as amended. 
  

	1.12	Separation from Service 

 Separation from Service means the Executive’s separation from service with the Corporation, within the meaning of Treasury Regulations under Code section 409A, for any reason. 
  

	1.13	Specified Employee 

 Specified Employee means the Executive if, as of December 31 of any calendar year, he satisfies the requirement of Code section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with Treasury Regulations thereunder and
disregarding Code section 416(i)(5)). If the Executive meets the criteria set forth in the preceding sentence as of a given December 31, he will be considered a Specified Employee for purposes of this Agreement for the 12-month period
commencing on the next following April 1. 
 ARTICLE II 
 DEFERRAL ELECTIONS 
  

	2.01	General 

 Executive
may elect to defer all or part of his Base Salary for a Deferral Year by filing a Deferral Election in the form attached hereto as Schedule B with the Chief Financial Officer of the Corporation no later than December 31 immediately prior to the
commencement of such Deferral Year. The amount of Base Salary deferred may be expressed as a percentage per pay period, or flat dollar amount per pay period or for the Deferral Year, or a combination thereof (e.g., 50% of Base Salary per pay period
up to a maximum of a specified dollar amount per pay period; 50% of Base Salary up to a maximum of a specified dollar amount for the Deferral Year). A Deferral Election shall become irrevocable on December 31 immediately prior to the Deferral
Year for which the Deferral Election is being made. 
  

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	2.02	First Year of Eligibility 

 For the 2010 Deferral Year, if Executive chooses to make a Deferral Election, he must make such Deferral Election within thirty (30) days after the Effective Date. Such Deferral Election shall be valid only with respect to Base Salary
paid for services rendered after the Deferral Election is made. Such Deferral Election shall be irrevocable when made. 
 ARTICLE III 
 ACCOUNT AND INVESTMENTS 
  

	3.01	Account 

 Executive’s Account shall be credited with Executive’s Base Salary deferred under this Agreement and any investment earnings and losses thereon. 
  

	3.02	Investments 

 Executive may direct by written instruction delivered to the Chief Financial Officer of the Corporation that this Account be valued as if it were invested in one or more of the Vanguard family of funds. Executive may select one or more
investment funds(s) at the time(s), and with respect to the percentage of his Account and may change his selection of investment funds. Any such change, which must be submitted to the Chief Financial Officer of the Corporation in writing, will
become effective as soon as administratively practicable. If Executive fails to make an investment selection with respect to all or part of his Account, he shall be deemed to have selected a one year certificate of deposit at the prevailing rate
offered by the Corporation to its customers. 
 The portion of Executive’s Account valued by reference to an investment
fund shall be valued daily based upon the performance of such investment fund. Such valuation shall reflect the net asset value expressed per share of the designated investment fund(s). 
 All investment funds referenced above are deemed investment measures and shall not represent an ownership interest in any investment fund or
other asset. 
  

	3.03	Equitable Adjustment in Case of Error of Omission 

 If an error or omission is discovered in Executive’s Account, the Board shall make such equitable adjustments as shall be necessary and permissible under Code section 409A to effect the intent of the
parties. 
  

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 ARTICLE IV 
 VESTING 
 Executive’s Account shall be fully
vested and nonforfeitable at all times. 
 ARTICLE V 
 TIME AND FORM OF PAYMENT OF BENEFITS 
  

	5.01	Time of Payment of Account 

 Executive may elect, at the time he completes his Deferral Election form for a Deferral Year, to have the portion of his Account attributable to Base Salary deferred for such Deferral Year paid (i) at the time of his Separation from
Service; (ii) on a specified date; or (iii) on the earliest of the Executive’s Separation from Service, Change in Control, upon an anniversary of a Change in Control or a specified date. In the event Executive fails to make an
election under this Section 5.01 on a Deferral Election form, the portion of his Account subject to such Deferral Election shall be paid in a lump sum within 30 days of Executive’s Separation from Service, subject to Section 5.03.

  

	5.02	Form of Payment 

 Executive shall elect on his Deferral Election form to receive the amounts subject to such Deferral Election form in a lump sum or in annual installments of two to 10 years, with the lump sum or first installment paid within 30 days of the
event specified by the Executive on his Deferral Election Form. One remaining installment, if any, shall be paid on each January 15 (or any later date in the same calendar year) following the Executive’s Separation from Service, Change in
Control, death, Disability or specified date until all installments are paid. 
  

	5.03	Delay for Specified Employees 

 If Executive is a Specified Employee on the date of his Separation from Service (other than death or Disability), the payments due under this Agreement shall be paid or begin on the first day of the month
immediately following the six-month anniversary of the Executive’s Separation from Service. Installments that would have been paid during such six-month period had Executive not been a Specified Employee will be included in the first payment.
Such delay shall apply only to the extent required by Code Section 409A and, thus, generally shall not apply to payments due only upon a specified date or Change in Control, death or Disability. 
  

	5.04	Payment in the Event of Executive’s Death or Disability 

 If Executive’s employment terminates due to his death, Disability or Executive dies after payments have commenced under this Agreement, any remaining payments shall be made to Executive’s
beneficiary in accordance with his Deferral Election forms or the default provisions of this Agreement (where no time or form of payment has been selected on a Deferral Election form). 
  

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	5.05	Change in the Time and Form of Payment 

 Executive may change his or her election to a subsequent payout by submitting a subsequent Deferral Election form to the Chief Financial Officer of the Corporation, which must comply with Code section
409A and Treasury Regulations thereunder. Such subsequent deferral election may not take effect until at least 12 months after the date on which the election is made and the election must be made at least 12 months before the payment is scheduled to
be made or commence (where required by Treasury Regulations under Code section 409A). The payment with respect to which such subsequent deferral election is made must be deferred for a period not less than five years from the date the payment would
otherwise be made or commence. The payment election forms most recently accepted by the Board shall govern the payout of benefits. 
  

	5.06	Hardship Distribution 

 (a) A distribution of a portion of Executive’s Account because of an Unforeseeable Emergency will be permitted only to the extent required by Executive to satisfy the emergency need. Whether an Unforeseeable Emergency has occurred will
be determined by the Board, in its sole discretion. Distributions in the event of an Unforeseeable Emergency may be made by and with the approval of the Board upon written request by Executive. A distribution because of an Unforeseeable Emergency
shall be paid in a single lump sum within 30 days after Board approval. 
 (b) An “Unforeseeable Emergency” is defined
as a severe financial hardship to Executive resulting from a sudden and unexpected illness or accident of Executive or of a dependent of Executive, loss of Executive’s property due to casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond Executive’s control. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but, in any event, any distribution under this Agreement section
shall not exceed the remaining amount required by Executive to resolve the hardship after (i) reimbursement or compensation through insurance or otherwise, (ii) obtaining liquidation of Executive’s assets, to the extent such
liquidation would not itself cause a severe financial hardship, or (iii) suspension of deferrals under this Agreement. If Executive claims hardship, he shall be required to submit to the Board documentation of the hardship and proof that the
loss is not covered by other means. 
  

	5.07	Prohibition on Acceleration 

 Except as provided in Code section 409A or Treasury Regulations thereunder, no acceleration in the time or schedule of any amount scheduled to be paid under this Agreement is permitted. 
 ARTICLE VI 
 FUNDING 
 The Corporation has only a contractual obligation to pay the benefits described in this Agreement.
All benefits are to be satisfied solely out of the general corporate assets of the Corporation and shall remain subject to the claims of its general creditors. No assets of the Corporation will be segregated or committed to the satisfaction of its
obligations to the Executive or any Beneficiary under this Agreement. If the Corporation, in its sole discretion, elects to

  

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purchase life insurance on the life of the Executive in connection with this Agreement, the Executive must submit to a physical examination, if required by the insurer, and otherwise cooperate in
the issuance of such policy or his rights under this Agreement will be forfeited. 
 The Corporation shall establish a grantor
trust which may be used to hold assets of the Corporation which are maintained as reserves against the Corporation’s unfunded, unsecured obligations hereunder. Such reserves shall at all times be subject to the claims of the Corporation’s
general creditors. To the extent such trust or other vehicle is established, and assets contributed, for the purpose of fulfilling the Corporation’s obligations hereunder, then such obligation of the Corporation shall be reduced to the extent
such assets are utilized to meet its obligations hereunder. Any such trust and the assets held thereunder are intended to conform in substance to the terms of the model trust described in Revenue Procedure 92-64. The Corporation is required to
deposit assets in such trust, equal to the amount of Base Salary deferred by the Executive, within five business days of the date such Base Salary would otherwise have been paid to the Executive. 
 ARTICLE VII 
 MODIFICATION OR TERMINATION OF AGREEMENT 
 This Agreement may be modified or terminated only by a written
instrument signed by both parties, and only in a manner that does not violate Code section 409A and the Treasury Regulations thereunder. 
 ARTICLE VIII 
 OTHER BENEFITS AND AGREEMENTS 
 The benefits provided for Executive and his Beneficiary under this Agreement are in addition to any other benefits available to such
Executive under any other Agreement or program of the Corporation for its employees. Except as may otherwise be expressly provided for, this Agreement shall supplement and shall not supersede, modify, or amend any other Agreement or program of the
Corporation in which the Executive is participating. 
 ARTICLE IX 
 RESTRICTIONS ON TRANSFER OF BENEFITS 
 No right or
benefit under this Agreement shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void. No right or benefit hereunder shall in any manner be liable for or subject to the
debts, contracts, liabilities, or torts of the person entitled to such benefit. If the Executive or any Beneficiary under this Agreement should become bankrupt or attempt to anticipate, alienate, sell, assign, pledge, encumber or charge any right to
a benefit hereunder, then such right or benefit, in the discretion of the Board, shall cease and terminate, and, in such event, the Board may hold or apply the same or any part thereof for the benefit of such Executive or Beneficiary, his or her
spouse, children, or other dependents, or any of them, in such manner and in such portion as the Board may deem proper. 
  

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 ARTICLE X 
 CLAIMS PROCEDURE 
 All claims for benefits shall be presented to the Board.
If the Board wholly or partially denies the Executive’s or a Beneficiary’s claim for benefits, the Board shall review the claim in accordance with applicable procedures described in ERISA. 
 ARTICLE XI 
 MISCELLANEOUS 
  

	11.01	No Guarantee of Employment 

 This Agreement does not in any way limit the right of the Corporation at any time and for any reason to terminate the Executive’s employment which termination may affect or preclude the Executive’s entitlement to an Account. In no
event shall this Agreement, by its terms or by implication, constitute an employment contract of any nature whatsoever between the Corporation and the Executive. 
  

	11.02	Binding Nature 

 This Agreement shall be binding upon the Corporation and its successors and assigns, subject to the provisions of Article VII, and upon the Executive, his Beneficiary, and either of their assigns, heirs, executors, and Boards. 

 

	11.03	Governing Law 

 To
the extent not preempted by federal law, this Agreement shall be governed and construed under the laws of the Commonwealth of Virginia (including its choice of law rules, except to the extent those rules would require the application of the law of a
state other than Virginia) as in effect at the time of their adoption and execution, respectively. 
  

	11.04	Entire Agreement 

 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior written and oral negotiations and understandings. 
  

	11.05	Severability 

 If
any provision of this Agreement should for any reason be declared invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall nevertheless remain in full force and effect. 
 [SIGNATURE PAGE TO FOLLOW] 
  

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 IN WITNESS WHEREOF, the Corporation and the Executive have caused this Agreement to be
executed on the dates set forth below. 
  

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

		 	Chairman of the Board
	
	Date: February 1, 2010
	
	HERITAGE BANK
		
	By:	 	 /s/ Peter M. Meredith, Jr.

		 	Chairman of the Board
	
	Date: February 1, 2010
	
	MICHAEL S. IVES
	
	 /s/ Michael S. Ives

	
	Date: February 1, 2010

  

 9Deferred Compensation Plan Trust

 Exhibit 10.30 
 HERITAGE BANKSHARES, INC. 
 DEFERRED COMPENSATION
PLAN TRUST 
 Effective February 1, 2010 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

 TABLE OF CONTENTS 
  

					
	 Section
	  	 	  	 Page

			
	Article I	  	Establishment of Trust	  	2
	    1.01	  	Initial Deposit	  	2
	    1.02	  	Irrevocability	  	2
	    1.03	  	Trust Status	  	2
	    1.04	  	Exclusive Purpose	  	2
	    1.05	  	Additional Deposits	  	2
	    1.06	  	Change in Control	  	2
			
	Article II	  	Payments to Plan Participants and Their Beneficiaries	  	4
	    2.01	  	Payment Schedule	  	4
	    2.02	  	Benefit Determination	  	4
	    2.03	  	Payment to Participant or Beneficiary	  	4
			
	Article III	  	Trustee Responsibility Regarding Payments to Trust Beneficiary When the Company is Insolvent	  	5
	    3.01	  	Cessation of Payments	  	5
	    3.02	  	Determination of Insolvency	  	5
	    3.03	  	Reestablishment of Payments	  	6
			
	Article IV	  	Payments to the Company	  	7
			
	Article V	  	Investment Authority	  	8
	    5.01	  	Investment of Trust	  	8
	    5.02	  	Substitution of Assets	  	8
	    5.03	  	Investment Committee Direction	  	8
	    5.04	  	Powers of the Trustee	  	8
			
	Article VI	  	Disposition of Income	  	10
			
	Article VII	  	Accounting by Trustee	  	11
			
	Article VIII	  	Responsibility of Trustee	  	12
	    8.01	  	Standard of Care	  	12
	    8.02	  	Indemnification	  	12
	    8.03	  	Consultation with Legal Counsel	  	12
	    8.04	  	Agents and Other Professionals	  	12
	    8.05	  	Trustee Powers	  	12
	    8.06	  	Loans	  	13
	    8.07	  	Unlawful Gain	  	13

  

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 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

					
	Article IX	  	Compensation and Expenses of Trustee	  	14
			
	Article X	  	Resignation and Removal of Trustee	  	15
	    10.01	  	Resignation of Trustee	  	15
	    10.02	  	Removal of Trustee	  	15
	    10.03	  	Appointment of Successor Trustee	  	15
	    10.04	  	Appointment of Successor Trustee Following Change in Control	  	15
	    10.05	  	Transfer of Assets	  	15
			
	Article XI	  	Appointment of Successor	  	16
	    11.01	  	Appointment of Successor or Trustee	  	16
	    11.02	  	Indemnity of Successor Trustee	  	16
			
	Article XII	  	Amendment or Termination	  	17
	    12.01	  	Amendment	  	17
	    12.02	  	Termination	  	17
	    12.03	  	Approval of Termination	  	17
	    12.04	  	Amendment Following a Change in Control	  	17
			
	Article XIII	  	Miscellaneous	  	18
	    13.01	  	Severability	  	18
	    13.02	  	Non-assignability	  	18
	    13.03	  	Governing Law	  	18
			
	Article XIV	  	Effective Date	  	19
			
	Article XV	  	Signature Page	  	20
			
	Exhibit I	  	Plans Funded Through the Trust	  	21
			
	Exhibit II	  	Change in Control Definition	  	22

  

 ii 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

 This Agreement authorized by the Board of Directors of Heritage Bankshares, Inc., on January 27, 2010, and made
effective February 1, 2010, by and between Heritage Bankshares, Inc., Heritage Bank (collectively, together with their affiliates and successors, the “Company”) and John O. Guthrie (“Trustee”). 
 RECITALS: 
 WHEREAS, the Company has adopted the plans listed on Exhibit I to this Trust and may adopt additional nonqualified deferred compensation plans or arrangements after the date of this Agreement (the “Plans”); 
 WHEREAS, the Company has incurred or expects to incur liability under the terms of the Plans with respect to the individuals
participating therein; 
 WHEREAS, the Company wishes to establish a trust (hereinafter called the “Trust”) and
to contribute to the Trust assets that shall be held hereunder, subject to the claims of the Company’s general creditors in the event of the Company’s Insolvency (as defined herein), until paid to the Plans’ participants, and their
beneficiaries in such manner and at such times as specified in the Plans; 
 WHEREAS, it is the intention of the parties
that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plans as unfunded plans maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees
for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended (ERISA); and 
 WHEREAS,
it is the intention of the Company to make contributions to the Trust from time to time to provide itself a source of funds to assist it in meeting its obligations under the Plans, provided, however, that there shall be no additional plans
designated to participate in the Trust following a Change in Control (as defined herein). 
  

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 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 NOW, THEREFORE, the parties do hereby establish the Trust and agree that the
Trust shall be comprised, held and disposed as of follows: 
 ARTICLE I 
 Establishment of Trust 
 1.01. Initial Deposit 
 The Company hereby deposits with the Trustee in trust $1.00, which shall
become the principal of the Trust to be held, administered and disposed of by the Trustee as provided in this Trust Agreement. 
 1.02.
Irrevocability  
 The Trust hereby established is irrevocable. 
 1.03. Trust Status  
 The Trust is intended to be a grantor trust, of which the Company is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended (the Code), and shall be
construed accordingly. 
 1.04. Exclusive Purpose  
 The principal of the Trust, and any earnings thereon shall be held separate and apart from other funds of the Company and shall be used exclusively for the uses and purposes of the Plans’
participants and general creditors as herein set forth. Plan participants and their beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any asset of the Trust. Any rights created under the Plans and this Trust
Agreement shall be mere unsecured contractual rights of Plan participants and their beneficiaries against the Company. Any assets held by the Trust will be subject to the claims of the Company’s general creditors under federal and state law in
the event of Insolvency, as defined in Trust section 3.01. 
 1.05. Additional Deposits  
 The Company shall make additional deposits of cash or other property in trust with the Trustee to augment the principal to be held,
administered and disposed of by Trustee as required by the Plans and provided in this Trust Agreement. Neither the Trustee nor any of the Plans’ participants or beneficiaries shall have any right to compel such additional deposits,
provided, however, that following a Change in Control the Trustee may compel additional deposits necessary for the administration of the Trust, including, but not limited to, legal, accounting and other similar fees. 
 1.06. Change in Control  
 Upon a Change in Control (as defined in Exhibit II to this Trust), the Company shall, as soon as possible, but in no event longer than ten days following the Change in Control, make an irrevocable contribution to the Trust in an amount that
is sufficient to pay each of the Plans’

  

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 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 
participants or beneficiaries the benefits to which the Plans’ participants or their beneficiaries would be entitled pursuant to the terms of the Plans as of the Change in Control. The
Company may engage an independent actuary who shall determine the amount of such irrevocable contribution. The Trustee may compel additional deposits necessary to pay each of the Plans’ participants or their beneficiaries the benefits to which
the Plans’ participants or the beneficiaries would be entitled pursuant to the terms of the Plans as of the Change in Control. The Trustee also may compel any additional deposits necessary to pay benefits to which the Plans’ participants
or beneficiaries would be entitled following a Change in Control. All of such benefits shall be determined, both as to amount and entitlement, by the Trustee in its sole and absolute discretion. 
  

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 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE II 
 Payments to Plan Participants and Their Beneficiaries 
 2.01.
Payment Schedule  
 To the extent that benefits under the Plans are being paid from the Trust, the Company shall
deliver to Trustee annually and upon a Change in Control a schedule (the “Payment Schedule”) that indicates the amounts payable in respect of each of the Plans’ participants (and their beneficiaries), that provides a formula or other
instructions acceptable to the Trustee for determining the amounts so payable, the form in which such amount is to be paid (as provided for or available under the Plans), and the time of commencement for payment of such amounts. Except as otherwise
provided herein, the Trustee shall make payments to each of the Plans’ participants and their beneficiaries in accordance with such Payment Schedule. The Trustee shall make provision for the reporting and withholding of any federal, state or
local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plans and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported,
withheld and paid by the Company. 
 2.02. Benefit Determination  
 The entitlement of a Plan participant or his or her beneficiaries to benefits under the Plans shall be determined by the Company or such
party as it shall designate under the Plans, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plans, provided, however, that following a Change in Control, the final benefit determination
with respect to both the entitlement and the amount and timing of benefits for the Plans’ participants and beneficiaries shall rest with the Trustee in its sole and absolute discretion, in accordance with the terms of the Plans. 
 2.03. Payment to Participant or Beneficiary  
 The Company may make payment of benefits directly to the Plans’ participants or their beneficiaries as they become due under the terms of the Plans. The Company shall notify the Trustee of its
decision to make payment of benefits directly prior to the time amounts are payable to participants or their beneficiaries. In addition, if the principal of the Trust, and any earnings thereon, are not sufficient to make payments of benefits in
accordance with the terms of the Plans, the Company shall make the balance of each such payment as it falls due. The Trustee shall notify the Company when principal and earnings are not sufficient. In such case when the principal of the Trust, and
any earnings thereon are insufficient to make payments in accordance with the terms of the Plans, the Trustee shall make payments first to those participants and beneficiaries in pay status (on a pro rata basis if necessary) and on a pro rata basis
to any additional participants and beneficiaries in the order in which they become entitled to benefits. 
  

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 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE III 
 Trustee Responsibility Regarding Payments 
 to
Trust Beneficiary When the Company is Insolvent 
 3.01. Cessation of Payments  
 The Trustee shall cease payment of benefits to the Plans’ participants and their beneficiaries if the Company is Insolvent. The Company
shall be considered “Insolvent” for purposes of this Trust Agreement if (i) the Company is unable to pay its debts as they become due or (ii) the Company is subject to a pending proceeding as a debtor under the United States
Bankruptcy Code. 
 3.02. Determination of Insolvency  
 At all times during the continuance of this Trust, as provided in Trust section 1.03, the principal and income of the Trust shall be
subject to claims of general creditors of the Company under federal and state law as set forth below. 
 (a) The Board of
Directors or the Chief Executive Officer of the Company shall have the duty to inform the Trustee in writing of the Company’s Insolvency. If a person claiming to be a creditor of the Company alleges in writing to the Trustee that the Company
has become Insolvent, the Trustee shall determine whether the Company is Insolvent and, pending such determination, the Trustee shall discontinue payment of benefits to the Plans’ participants and their beneficiaries. The insolvency of any
member of the controlled group (as defined in Code section 414) of the Company shall not in and of itself, cause the Company or any other member of the Company’s controlled group to be deemed Insolvent. 
 (b) Unless the Trustee has actual knowledge of the Company’s Insolvency, or has received notice from the Company or a person claiming
to be a creditor alleging that the Company is Insolvent, the Trustee shall have no duty to inquire whether the Company is Insolvent. The Trustee may in all events rely on such evidence concerning the Company’s solvency as may be furnished to
the Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the Company’s solvency. 
 (c) If at any time the Trustee has determined that the Company is Insolvent, the Trustee shall discontinue payments to the Plans’ participants or their beneficiaries and shall hold the assets of the Trust for the benefit of the
Company’s general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of the Plans’ participants or their beneficiaries to pursue their rights as general creditors of the Company with respect to benefits due
under the Plans or otherwise. 
 (d) The Trustee shall resume the payment of benefits to the Plans’ participants or their
beneficiaries in accordance with Article II of this Trust Agreement only after the Trustee has determined that the Company is not Insolvent (or is no longer Insolvent). 
  

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 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 3.03. Reestablishment of Payments 
 Provided that there are sufficient assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to Trust
section 3.02 and subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to the Plans’ participants or their beneficiaries under the terms of the Plans for
the period of such discontinuance, less the aggregate amount of any payments made to the Plans’ participants or their beneficiaries by the Company in lieu of the payments provided for hereunder during any such period of
discontinuance plus earnings on such difference based on the average interest rate in effect for 30-day Treasury bills over such period of discontinuance. 
  

 6 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE IV 
 Payments to the Company 
 Except as provided in
Article III hereof, the Company shall have no right or power to direct the Trustee to return to the Company or to divert to others any of the Trust assets before all payment of benefits have been made to the Plans’ participants and their
beneficiaries pursuant to the terms of the Plans. 
  

 7 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE V 
 Investment Authority 
 5.01. Investment of Trust 

 The Trustee may invest in securities (including stock or rights to acquire stock) or obligations issued by the Company. All
rights associated with assets of the Trust shall be exercised by the Trustee or the person designated by the Trustee, and shall in no event be exercisable by or rest with Plan participants, except that voting rights and dividend rights with respect
to Trust assets will be exercised by the Company. 
 5.02. Substitution of Assets 
 The Company shall have the right at anytime, and from time to time in its sole discretion, to substitute assets of equal fair market value
for any asset held by the Trust. This right is exercisable by the Company in a nonfiduciary capacity without the approval or consent of any person in a fiduciary capacity. Provided, however, that following a Change in Control, the substitution of
assets may be made only with the approval of the Trustee. 
 5.03. Investment Committee Direction  
 The authority of the Trustee described in Trust sections 5.01 and 5.04 shall be exercised in accordance with the guidelines and directions
issued to the Trustee by the Company’s Board of Directors or by the Chief Financial Officer of the Company provided, however, that following a Change in Control, the authority of the Trustee described in Trust sections 5.01 and 5.04 shall be
exercised by the Trustee in its sole and absolute discretion. 
 5.04. Powers of the Trustee  
 The Trustee shall have the following powers: 
 (a) to invest and reinvest the Trust in such investments as it may deem proper and suitable for the purposes of the Trust including, by way of example and not limitation: notes, bonds, obligations, stock
either common or preferred, warrants, rights, securities convertible into common stock, mutual funds either open or closed end, obligations of the United States, any state of the United States or any municipality or agency thereof, mortgages and
real estate whether developed or undeveloped, interests in real estate investment trusts, leaseholds of any duration, savings accounts, certificates of deposit and other types of time deposits with any financial institution (including a corporate
trustee, where applicable), individual and group insurance policies or contracts, and annuity contracts; 
 (b) to keep, retain
and safeguard any and all investments properly constituting the Trust and to dispose of such property by sale, exchange or otherwise; 
 (c) to sell, assign, exchange, transfer, convey or otherwise dispose of any or all of the investments or property constituting the Trust at either public or private sale for cash or other

  

 8 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 
consideration or for deferred payments, and for the purpose of selling, assigning, transferring or conveying the same, to make, execute, acknowledge and deliver any and all instruments of
conveyance or assignments in such form and with such warranties and covenants as the Trustee may deem proper; and in the event of any sale, conveyance, exchange or other disposition of any asset of the Trust, the purchaser shall not be required in
any way to see to the application of the purchase money or other consideration passing in connection therewith; 
 (d) to vote
any stocks, bonds or other securities held in the Trust at any meeting of stockholders, bondholders, or other security holders, and to delegate the power so to vote to attorneys-in-fact or by proxies under power of attorney, restricted or
unrestricted, and to join in or dissent from or oppose the reorganization, recapitalization, consolidation, sale or merger of a corporation or properties in which the Trustee may hold stocks, bonds, or other securities, or in which it may be
interested; 
 (e) to take up or subscribe for any rights or exercise any subscription or conversion privilege in any stocks,
bonds, notes or other securities constituting the Trust; 
 (f) to compromise, adjust, arbitrate, sue or defend, abandon or
otherwise deal with and settle claims in favor of or against the Trust or relating to any of the assets of the Trust; 
 (g) to
hold property in the name of the Trustee or the name of nominees, or to retain such investments unregistered or in a form permitting transfer by delivery; provided that the books and records of the Trustee shall at all times show that such
investments are a part of the Trust and the Trustee shall be liable for the acts of its nominees; 
 (h) to make and execute all
instruments necessary or proper to carry out the powers conferred herein; 
 (i) to write covered call options and utilize
similar investment techniques to the extent it deems such techniques prudent under the circumstances; and 
 (j) to do all other
things which shall be necessary to carry out the powers specified herein and perform its duties under this Trust. 
  

 9 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE VI  
 Disposition of Income 
 During the term of this
Trust, all income received by the Trust, net of expenses and taxes unless otherwise paid by the Company, shall be accumulated and reinvested. 
  

 10 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE VII 
 Accounting by Trustee 
 The Trustee shall keep
accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such specific records as shall be agreed upon in writing between the Company and the Trustee. Within 60 days
following the close of each calendar year and within 30 days after the removal or resignation of the Trustee, the Trustee shall deliver to the Company a written account of its administration of the Trust during such year or during the period from
the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased and
sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately), and showing all cash, securities and other property held in the Trust at the end of such year or as of the date of such
removal or resignation, as the case may be. 
  

 11 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE VIII 
 Responsibility of Trustee 
 8.01. Standard of Care
 
 The Trustee shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a
prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims, provided, however, that the Trustee shall incur no liability to any person for any action taken
pursuant to a direction, request or approval given by the Company which is contemplated by, and in conformity with, the terms of the Plans or this Trust and is given in writing by an authorized employee of the Company. In the event of a dispute
between the Company and a party, the Trustee may apply to a court of competent jurisdiction to resolve the dispute. 
 8.02.
Indemnification  
 If the Trustee undertakes or defends any litigation arising in connection with this Trust,
other than litigation arising from actions taken by the Trustee in conflict with the terms of this Trust or as a result of the Trustee’s negligence or willful misconduct, the Company agrees to indemnify the Trustee against the Trustee’s
costs, expenses and liabilities (including, without limitation, attorneys’ fees and expenses) relating thereto and to be primarily liable for such payments. If the Company does not pay such costs, expenses and liabilities in a reasonably timely
manner, the Trustee may obtain payment from the Trust. 
 8.03. Consultation with Legal Counsel  
 The Trustee may consult with legal counsel (who may also be counsel for the Company generally) with respect to any of its duties or
obligations hereunder. 
 8.04. Agents and Other Professionals  
 The Trustee may hire and rely on advice given by agents, accountants, actuaries, investment advisors, financial consultants or other
professionals to assist it in performing any of its duties or obligations hereunder. 
 8.05. Trustee Powers  
 The Trustee shall have, without exclusion, all powers conferred on trustees by applicable law, unless expressly provided otherwise herein,
provided, however, that if an insurance policy is held as an asset of the Trust, the Trustee shall have no power to name a beneficiary of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy to a different
form) other than to a successor trustee, or to loan to any person (other than the Company) the proceeds of any borrowing against such policy. 
  

 12 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 8.06. Loans 
 However, notwithstanding the provisions of Trust section 8.05, the Trustee may loan to the Company the proceeds of any borrowing against an insurance policy held as an asset of the Trust. 
 8.07. Unlawful Gain 
 Notwithstanding any powers granted to the Trustee pursuant to this Trust Agreement or applicable law, the Trustee shall not have any power that could give this Trust the objective of carrying on a business and dividing the gains therefrom,
within the meaning of section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the Code. 
  

 13 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE IX 
 Compensation and Expenses of Trustee 
 The
Company shall pay all administrative and Trustees’ fees and expenses. If not so paid, the fees and expenses shall be paid from the Trust. 
  

 14 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE X 
 Resignation and Removal of Trustee 
 10.01. Resignation
of Trustee 
 The Trustee may resign at any time by written notice to the Company, which shall be effective 60 days after
receipt of such notice unless the Company and the Trustee agree otherwise. 
 10.02. Removal of Trustee 
 The Trustee may be removed by the Company or a successor entity on 60 days notice or upon shorter notice accepted by Trustee; provided,
however, that upon a Change in Control, as defined herein, the Trustee may not be removed by the Company for one year. 
 10.03.
Appointment of Successor Trustee 
 If the Trustee resigns or is removed, a successor shall be appointed, in
accordance with Article XI hereof, by the effective date of resignation or removal under Trust section 10.01 or 10.02. If no such appointment has been made, the Trustee may apply to a court of competent jurisdiction for appointment of a successor or
for instructions. All expenses of the Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust. 
 10.04. Appointment of Successor Trustee Following Change in Control 
 If the Trustee resigns within one
year of a Change in Control, the Company or a successor entity shall select a successor trustee in accordance with the provisions of Trust section 11.01 prior to the effective date of the Trustee’s resignation. 
 10.05. Transfer of Assets 
 Upon resignation or removal of the Trustee and appointment of a successor trustee, all assets shall subsequently be transferred to the successor trustee. The transfer shall be completed within 60 days after receipt of notice of resignation,
removal or transfer, unless the Company extends the time limit. 
  

 15 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE XI 
 Appointment of Successor 
 11.01. Appointment of
Successor or Trustee 
 If the Trustee resigns or is removed in accordance with the provisions of Trust sections 10.01 or
10.02, the Company may appoint any unaffiliated third party that may be granted trustee powers under state law as a successor to replace the Trustee upon resignation or removal. Notwithstanding the foregoing, if the Trustee resigns within one year
of a Change in Control in accordance with the provisions of Trust section 10.04, the Company may appoint any third party, such as a national bank trust department, that may be granted corporate trustee powers under state law as a successor to
replace the Trustee upon resignation or removal. The appointment shall be effective when accepted in writing by the new trustee, who shall have all of the rights and powers of the former Trustee, including ownership rights in the Trust assets. The
former Trustee shall execute any instrument necessary or reasonably requested by the Company or the successor trustee to evidence the transfer. 
 11.02. Indemnity of Successor Trustee 
 The successor Trustee need not examine the records and acts of
any prior Trustee and may retain or dispose of existing Trust assets, subject to Articles VII and VIII hereof. A successor Trustee shall not be responsible for and the Company shall indemnify and defend a successor Trustee from any claim or
liability resulting from any action or inaction of any prior Trustee or from any other past event, or any condition existing at the time it becomes successor Trustee. 
  

 16 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE XII 
 Amendment or Termination 
 12.01. Amendment

 The Trust Agreement may be amended by a written instrument executed by the Trustee and the Company. Notwithstanding the
foregoing, no such amendment shall conflict with the terms of the Plan or shall make the Trust revocable after it has become irrevocable in accordance with Trust section 1.02. 
 12.02. Termination 
 The Trust shall not terminate until the date on
which Plan participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plans and all administrative expenses of the Trust shall have been paid, unless sooner revoked in accordance with Trust
section 1.02. Upon termination of the trust any assets remaining in the Trust shall be returned to the Company. 
 12.03. Approval of
Termination 
 Upon written approval of all participants or beneficiaries entitled to payment of benefits pursuant to the
terms of the Plan, the Company may terminate this Trust prior to the time all benefit payments under the Plan have been made. All assets in the Trust at termination shall be returned to the Company. 
 12.04. Amendment Following a Change in Control 
 Any other provision of this Trust to the contrary notwithstanding, the Trust may not be amended by the Company for one year following a Change in Control, except to the extent necessary to satisfy any
legal or regulatory requirements under federal or state law and to retain current tax status with respect to payments to the Plans’ participants and beneficiaries. 
  

 17 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE XIII 
 Miscellaneous 
 13.01. Severability 

Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating
the remaining provisions hereof. 
 13.02. Non-assignability 
 Benefits payable to Plan participants and their beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or
in equity), alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process. 
 13.03. Governing Law 
 This Trust Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Virginia. 
  

 18 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE XIV 
 Effective Date 
 The effective date of this
Trust Agreement shall be February 1, 2010. 
  

 19 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 ARTICLE XV 
 Signature Page 
 As
evidence of its adoption of the Trust, the Company and the Trustee have caused this document to be executed by their duly authorized officers as of the 1st day of February 2010. 
  

			
	Heritage Bankshares, Inc.
		
	By:	 	 /s/ Peter M. Meredith, Jr.

		 	Chairman of the Board
	
	Heritage Bank
		
	By:	 	 /s/ Peter M. Meredith, Jr.

		 	Chairman of the Board
	
	TRUSTEE
		
	By:	 	 /s/ John O. Guthrie

		 	John O. Guthrie, Trustee

  

 20 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 EXHIBIT I 
 Plans Funded Through the Trust 
 Heritage Bankshares, Inc.
Supplemental Executive Retirement Agreement with Michael S. Ives, effective September 23, 2009 
 Heritage Bankshares, Inc. Executive
Deferred Compensation Agreement with Michael S. Ives, effective February 1, 2010 
  

 21 

 Heritage Bankshares, Inc. 
 Deferred Compensation Plan Trust 
 Effective February 1, 2010

  

 EXHIBIT II 
 Change in Control Definition 
 For purposes of this Trust
Agreement, Change in Control shall mean: 
 A Change in Control occurs on the first to occur of (i) the date that any one person, or more
than one person, acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group constitutes more than 50% of the total fair market value or total voting power of the stock of the Company;
(ii) the date that any one person or group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 30% or more of the total
voting power of the stock of the Company; (iii) a majority of the members of the Board’s being replaced during any 12 month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before
the date of the appointment or election; or (iv) the date that any one person or group acquires assets (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or group) from the Company that
have a total gross fair market value equal to or more than 40% of the total gross fair market value of all the assets of the Company immediately before such acquisition. This definition of Change in Control shall be interpreted in a manner that is
consistent with Treasury Regulation section 1.409A-3(i)(5). 
  

 22

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