Community Bank
Salary Continuation Agreement




COMMUNITY BANK

SALARY CONTINUATION AGREEMENT


       THIS SALARY CONTINUATION AGREEMENT (the "Agreement") is adopted this 3rd day of March, 2004, by and between COMMUNITY BANK, a savings association located in Staunton, Virginia (the
"Company"), and BENNY N. WERNER (the "Executive").


       The purpose of this Agreement is to provide specified benefits to the Executive, a member of a select group of management or highly compensated employees who contribute
materially to the continued growth, development and future business success of the Company. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee
Retirement Income Security Act of 1974 ("ERISA"), as amended from time to time. The Company will pay the benefits from its general assets.


       The Company and the Executive agree as provided herein.


Article 1

Definitions


       Whenever used in this Agreement, the following words and phrases shall have the meanings specified:


	1.1	"Accrual Balance" means the liability accrued by the Company, under Generally Accepted Accounting Principles ("GAAP"), for the Company's obligation to the Executive under this Agreement, by
applying Accounting Principles Board Opinion Number 12 ("APB 12") as amended by Statement of Financial Accounting Standards Number 106 ("FAS 106") and the Discount Rate. The Accrual Balance shall be
reported by the Company to the Executive on an annual basis.


	1.2	"Beneficiary" means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive determined pursuant to Article 4.


	1.3	"Beneficiary Designation Form" means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the Plan Administrator to designate
one or more Beneficiaries.


	1.4	"Change in Control" has the meaning set forth in the Severance Agreement.


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


	1.6	"Disability" means the Executive's suffering a sickness, accident or injury which has been determined by the insurance carrier of any individual or group disability insurance








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Salary Continuation Agreement







		policy
covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Plan
Administrator of the insurance carrier's or Social Security Administration's determination upon the request of the Plan Administrator.


	1.7	"Discount Rate" means an annual rate of 7%. However, the Plan Administrator, in its sole discretion, may adjust the Discount Rate upward, but only to maintain the rate within reasonable
standards according to GAAP.


	1.8	"Effective Date" means January 1, 2004.


	1.9	"Final Pay" means the annual cash compensation relating to services performed by the Executive for the Company and its affiliates, including bonuses, paid during either (1) the calendar
year preceding the calendar year in which the Executive's Termination of Employment occurs, or (2) the calendar year in which the Executive's Termination of Employment occurs, whichever is greater,
excluding fringe benefits, stock options, other stock based compensation, relocation expenses, non-monetary awards, and automobile and other allowances paid to the Executive for employment services
rendered (whether or not such allowances are included in the Executive's gross income). Compensation shall be calculated before reduction for compensation voluntarily deferred or contributed by the
Executive pursuant to all qualified or non-qualified plans of the Company and its affiliates and shall be calculated to include amounts not otherwise included in the Executive's gross income;
provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash to the Executive.


	1.10	"GAAP" means U.S. generally accepted accounting principles.


	1.11	"Involuntary Early Termination" means that the Executive, prior to Normal Retirement Age, has (i) experienced a termination of employment by the Company without Cause; or (ii) experienced
an Involuntary Termination (in each case as such terms are defined in the Severance Agreement).


	1.12	"Normal Retirement Age" means the Executive's 65th birthday.


	1.13	"Normal Retirement Date" means the later of the Normal Retirement Age or Termination of Employment.


	1.14	"Plan Administrator" means the plan administrator described in Article 8.


	1.15	"Severance Agreement" means the written severance agreement between the Executive and the Company dated April 1, 2000, as the same may be thereafter amended prior to a Change in
Control.


	1.16	"Termination for Cause" has that meaning set forth in Article 5.








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Salary Continuation Agreement







	1.17	"Termination of Employment" means that the Executive ceases to be employed by the Company for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by
the Company.


	1.18	"Voluntary Early Termination" means that the Executive, prior to Normal Retirement Age has terminated employment with the Company for reasons other than Termination for Cause, Disability,
Involuntary Early Termination, or death.





Article 2

Benefits During Lifetime


	2.1	Normal Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this Article.


		2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is twenty-five percent (25%) of Final Pay.


		2.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following the
Executive's Normal Retirement Date. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.2	Disability Benefit. Upon Termination of Employment due to Disability prior to Normal Retirement Age, the Company shall pay to the Executive the benefit described in this
Section 2.2 in lieu of any other benefit under this Article.


		2.2.1	Amount of Benefit. The annual benefit under this Section 2.2 is twenty-five percent (25%) of Final Pay.


		2.2.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing with the month following Normal Retirement Age. The
annual benefit shall be paid to the Executive for fifteen (15) years.


	2.3	Involuntary Early Termination Benefit. Upon Involuntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Article.


		2.3.1	Amount of Benefit. The annual benefit under this Section 2.3 is twenty-five percent (25%) of Final Pay.


		2.3.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the 





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Salary Continuation Agreement







			month following the
Executive's Normal Retirement Age. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.4	Voluntary Early Termination Benefit. Upon Voluntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.4 in lieu of any other benefit
under this Article.


		2.4.1	Amount of Benefit. The single lump sum benefit under this Section 2.4 is the Accrual Balance as of the month end prior to the date of Termination of Employment.


		2.4.2	Payment of Benefit. The Company shall pay the benefit in a lump sum within thirty (30) days following the Executive's Termination of Employment.





Article 3

Death Benefits


	3.1	Death During Active Service. If the Executive dies while in the active service of the Company, the Company shall pay to the Beneficiary the benefit described in this Section 3.1. This
benefit shall be paid in lieu of the benefits under Article 2.


		3.1.1	Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1.


		3.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Beneficiary in twelve (12) equal monthly installments commencing with the month following the Executive's death.
The annual benefit shall be paid to the Beneficiary for a period of fifteen (15) years.


	3.2	Death During Payment of a Benefit. If the Executive dies after any benefit payments have commenced under Article 2 of this Agreement but before receiving all such payments, the Company
shall pay the remaining benefits to the Beneficiary at the same time and in the same amounts they would have been paid to the Executive had the Executive survived.


	3.3	Death After Termination of Employment But Before Payment of a Benefit Commences.If the Executive is entitled to any benefit payments under Sections 2.1, 2.2 or 2.3 of this
Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the same benefit payments to the Beneficiary that the Executive was entitled to receive after his Normal
Retirement Age except that the benefit payments shall commence without any discount on the first day of the month following the date of the Executive's death. If the Executive is entitled to a single
lump sum benefit under Section 2.4, but dies prior to the date of payment, the Company shall pay the same single lump sum benefit to the Beneficiary of the Executive.








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Salary Continuation Agreement




Article 4

Beneficiaries


	4.1	Beneficiary Designation. The Executive shall have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under this Agreement upon the death of the
Executive. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Company in which the Executive
participates.


	4.2	Beneficiary Designation: Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan Administrator or
its designated agent. The Executive's Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and
the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form
and the Plan Administrator's rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator prior to
the Executive's death.


	4.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or its
designated agent.


	4.4	No Beneficiary Designation. If the Executive dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Executive, then the Executive's spouse shall
be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made to the personal representative of the Executive's estate.


	4.5	Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of
handling the disposition of that person's property, the Plan Administrator may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor,
incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment
of a benefit shall be a payment for the account of the Executive and the Executive's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such
payment amount.








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Salary Continuation Agreement





Article 5

General Limitations


	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Company's Board of Directors
terminates the Executive's employment for personal dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation
of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or material breach of the Executive's employment agreement (a "Termination for
Cause"). No act or failure to act by the Executive shall be considered willful unless the Executive acted or failed to act with an absence of good faith and without a reasonable belief that his
action or failure to act was in the best interest of the Company. No act or failure to act by the Executive in reliance upon an opinion of counsel shall be deemed to be willful. The Executive shall
not be deemed to have experienced a Termination 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 a majority of the entire membership of the Board of Directors of the Company, at a meeting of the Board duly called and held for such purpose (after reasonable notice to the Executive and an
opportunity for the Executive, together with the Executive's counsel, to be heard before the Board), stating that in the good faith opinion of the Board of
Directors the Executive has engaged in conduct described above and specifying the particulars thereof in detail. If the Executive has commenced receiving his benefit under this Agreement and it is
subsequently determined that he experienced a Termination for Cause, then his benefit shall immediately cease and the Executive shall be obligated to return to the Company the cumulative amount of
the benefits previously paid under the Agreement.


	5.2	Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Executive commits suicide within two years after the Effective Date.


	5.3	Regulatory Provisions. The obligations of the Company to the Executive under this Agreement are subject to the following restrictions:


		(a)	Temporary Suspension or Prohibition. If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company's affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act ("FDIA"), 12 U.S.C. §1818(e)(3)
and (g)(1), the Company's obligations to the Executive under this Agreement shall be suspended as of the date of service of such notice, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion reinstate in whole or in part any of its obligations which were suspended.


		(b)	Permanent Suspension or Prohibition.  If the Executive is removed and/or permanently prohibited from participating in the conduct of the Company's affairs by an order issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C.





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Salary Continuation Agreement







			 §1818(e)(4) and (g)(1), all obligations of
the Company to the Executive under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.


		(c)	Default. If the Company is in default (as defined in Section 3(x)(1) of the FDIA), all obligations of the Company to the Executive and Beneficiaries under this Agreement shall terminate
as of the date of default, but this provision shall not affect any vested rights of the contracting parties.


		(d)	Termination by Regulators. All obligations of the Company to the Executive and Beneficiaries under this Agreement shall be terminated, except to the extent determined that continuation
of this Agreement is necessary for the continued operation of the Company: (i) by the Director of the Office of Thrift Supervision (the "OTS Director")
or his designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Company under the authority contained in Section 13(c) of
the FDIA; or (ii) by the OTS Director or his designee, at the time the OTS Director or his designee approves a supervisory merger to resolve problems related to operation of the Company or when
the Company is determined by the OTS Director to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by any such action.


		(e)	Other Regulatory Restrictions on Payment. Notwithstanding anything herein to the contrary, (1) any payments made by the Company under this Agreement shall be subject to and conditioned
upon compliance with 12 U.S.C. §1828(k) and any regulations promulgated thereunder and (2) payments contemplated to be made by the Company under this
Agreement shall not be immediately payable to the extent such payments are barred or prohibited by an action or order issued by the Federal Deposit Insurance Corporation.





Article 6

Claims And Review Procedures


	6.1	Claims Procedure. An Executive or Beneficiary ("claimant") who has not received benefits under the Agreement that he or she believes should be paid shall make a claim for such benefits
as follows:


		6.1.1	Initiation - Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.


		6.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines
that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior
to the end of the initial 90-day 








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Salary Continuation Agreement







			period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects
to render its decision.


		6.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall
write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;


			(a)	An explanation of this Agreement's review procedures and the time limits applicable to such procedures; and


			(a)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.





	6.2	Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial,
as follows:


		6.2.1	Initiation - Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a
written request for review.


		6.2.2	Additional Submissions - Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.
The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits.


		6.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit determination.


		6.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within 60 days after receiving the request for review. If 








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			the Plan
Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 60 days by notifying the
claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Plan Administrator expects to render its decision.


		6.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated
to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits; and


			(d)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a).





Article 7

Amendments and Termination


This Agreement may only be amended, modified or terminated by the written consent of the Company and the Executive. Notwithstanding the foregoing, if the Plan Administrator
determines in good faith that the Executive, while employed by the Company, no longer qualifies as a member of a select group of management or highly compensated employees, as membership in such
group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, the Plan Administrator shall have the right, in its
sole discretion, to immediately distribute in a lump sum the present value of the Executive's benefits (determined by applying the Discount Rate), determined as if the Executive experienced a
Voluntary Early Termination, and terminate the Executive's participation herein.


Article 8

Administration of Agreement


	8.1	Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator which shall consist of the Board of Directors of the Company, or such committee or
person(s) as the Board shall appoint. The Executive may be a member of 








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Salary Continuation Agreement







		the Plan Administrator. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and
enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in
connection with the Agreement.


	8.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a
duly appointed representative), and may from time to time consult with counsel who may be counsel to the Company.


	8.3	Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and
application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. Neither the
Executive nor any Beneficiary shall be deemed to have any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the Discount
Rate.


	8.4	Indemnity of Plan Administrator. The Company shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members.


	8.5	Company Information. To enable the Plan Administrator to perform its functions, the Company shall supply full and timely information to the Plan Administrator on all matters relating to
the date and circumstances of the retirement, Disability, death, or Termination of Employment of the Executive, and such other pertinent information as the Plan Administrator may reasonably
require.





Article 9

Miscellaneous


	9.1	Binding Effect. This Agreement shall bind the Executive and the Company, and their beneficiaries, survivors, executors, successors, administrators and transferees.


	9.2	No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Company, nor does it interfere
with the Company's right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive's right to terminate employment at any time.


	9.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.








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Salary Continuation Agreement







	9.4	Tax Withholding. The Company shall withhold any taxes that, in its reasonable judgment, are required to be withheld from the benefits provided under this Agreement. The Executive
acknowledges that the Company's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).


	9.5	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Virginia, except to the extent preempted by the laws of the United States of
America.


	9.6	Unfunded Arrangement. The Executive and Beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere
promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive's life is a general asset of the Company to which the Executive and Beneficiary have no preferred or secured claim.


	9.7	Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm, or person
unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term "Company"
as used in this Agreement shall be deemed to refer to the successor or survivor company.


	9.8	Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue
of this Agreement other than those specifically set forth herein.


	9.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires, and the context will permit, the use of the masculine gender includes the feminine and use
of the singular includes the plural.


	9.10	Alternative Action. In the event it shall become impossible for the Company or the Plan Administrator to perform any act required by this Agreement, the Company or Plan Administrator
may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Company.


	9.11	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any of its provisions.


	9.12	Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Agreement shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.








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Salary Continuation Agreement







	9.13	Notice. Any notice or filing required or permitted to be given to the Company or Plan Administrator under this Agreement shall be sufficient if in writing and hand-delivered, or sent
by registered or certified mail, to the address below:


		Corporate Secretary
Community Bank
38 North Central Avenue
Staunton, Virginia 24401


		Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.


		Any notice or filing required or permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Executive.





       The Executive and a duly authorized representative of the Company have signed this Agreement as of the day and year first above written.



	DIRECTOR:



/s/ Benny N. Werner
		COMPANY:

Community Bank

By  /s/ P. Douglas Richard


Title  President & CEO












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Salary Continuation Agreement
BENEFICIARY DESIGNATION FORM








I designate the following as beneficiary of benefits under the Agreement payable following my death:


Primary: _________________________________________________________________


_____________________________________________________________________________


Contingent: _________________________________________________________________


_____________________________________________________________________________


Note: To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.


I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator. I further understand that the designations will be automatically
revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.


Name: _______________________________


Signature: _______________________________ Date: _______



	SPOUSAL CONSENT (Required if Spouse not named beneficiary):


I consent to the beneficiary designation above, and acknowledge that if I am named beneficiary and our marriage is subsequently dissolved, the designation will be automatically revoked.


Spouse Name: _______________________________


Signature: _______________________________ Date: _______







Received by the Plan Administrator this ________ day of ___________________, 20___.


By: _________________________________


Title: _________________________________


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Community Bank
Salary Continuation Agreement




COMMUNITY BANK

SALARY CONTINUATION AGREEMENT


       THIS SALARY CONTINUATION AGREEMENT (the "Agreement") is adopted this 3rd day of March, 2004, by and between COMMUNITY BANK, a savings association located in Staunton, Virginia (the
"Company"), and R. JERRY GILES (the "Executive").


       The purpose of this Agreement is to provide specified benefits to the Executive, a member of a select group of management or highly compensated employees who contribute
materially to the continued growth, development and future business success of the Company. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee
Retirement Income Security Act of 1974 ("ERISA"), as amended from time to time. The Company will pay the benefits from its general assets.


       The Company and the Executive agree as provided herein.


Article 1

Definitions


       Whenever used in this Agreement, the following words and phrases shall have the meanings specified:


	1.1	"Accrual Balance" means the liability accrued by the Company, under Generally Accepted Accounting Principles ("GAAP"), for the Company's obligation to the Executive under this Agreement, by
applying Accounting Principles Board Opinion Number 12 ("APB 12") as amended by Statement of Financial Accounting Standards Number 106 ("FAS 106") and the Discount Rate. The Accrual Balance shall be
reported by the Company to the Executive on an annual basis.


	1.2	"Beneficiary" means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive determined pursuant to Article 4.


	1.3	"Beneficiary Designation Form" means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the Plan Administrator to designate
one or more Beneficiaries.


	1.4	"Change in Control" has the meaning set forth in the Severance Agreement.


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


	1.6	"Disability" means the Executive's suffering a sickness, accident or injury which has been determined by the insurance carrier of any individual or group disability insurance








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Salary Continuation Agreement







		policy
covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Plan
Administrator of the insurance carrier's or Social Security Administration's determination upon the request of the Plan Administrator.


	1.7	"Discount Rate" means an annual rate of 7%. However, the Plan Administrator, in its sole discretion, may adjust the Discount Rate upward, but only to maintain the rate within reasonable
standards according to GAAP.


	1.8	"Effective Date" means January 1, 2004.


	1.9	"Final Pay" means the annual cash compensation relating to services performed by the Executive for the Company and its affiliates, including bonuses, paid during either (1) the calendar
year preceding the calendar year in which the Executive's Termination of Employment occurs, or (2) the calendar year in which the Executive's Termination of Employment occurs, whichever is greater,
excluding fringe benefits, stock options, other stock based compensation, relocation expenses, non-monetary awards, and automobile and other allowances paid to the Executive for employment services
rendered (whether or not such allowances are included in the Executive's gross income). Compensation shall be calculated before reduction for compensation voluntarily deferred or contributed by the
Executive pursuant to all qualified or non-qualified plans of the Company and its affiliates and shall be calculated to include amounts not otherwise included in the Executive's gross income;
provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash to the Executive.


	1.10	"GAAP" means U.S. generally accepted accounting principles.


	1.11	"Involuntary Early Termination" means that the Executive, prior to Normal Retirement Age, has (i) experienced a termination of employment by the Company without Cause; or (ii) experienced
an Involuntary Termination (in each case as such terms are defined in the Severance Agreement).


	1.12	"Normal Retirement Age" means the Executive's 65th birthday.


	1.13	"Normal Retirement Date" means the later of the Normal Retirement Age or Termination of Employment.


	1.14	"Plan Administrator" means the plan administrator described in Article 8.


	1.15	"Severance Agreement" means the written severance agreement between the Executive and the Company dated April 1, 2000, as the same may be thereafter amended prior to a Change in
Control.


	1.16	"Termination for Cause" has that meaning set forth in Article 5.








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	1.17	"Termination of Employment" means that the Executive ceases to be employed by the Company for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by
the Company.


	1.18	"Voluntary Early Termination" means that the Executive, prior to Normal Retirement Age has terminated employment with the Company for reasons other than Termination for Cause, Disability,
Involuntary Early Termination, or death.





Article 2

Benefits During Lifetime


	2.1	Normal Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this Article.


		2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is twenty-five percent (25%) of Final Pay.


		2.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following the
Executive's Normal Retirement Date. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.2	Disability Benefit. Upon Termination of Employment due to Disability prior to Normal Retirement Age, the Company shall pay to the Executive the benefit described in this
Section 2.2 in lieu of any other benefit under this Article.


		2.2.1	Amount of Benefit. The annual benefit under this Section 2.2 is twenty-five percent (25%) of Final Pay.


		2.2.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing with the month following Normal Retirement Age. The
annual benefit shall be paid to the Executive for fifteen (15) years.


	2.3	Involuntary Early Termination Benefit. Upon Involuntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Article.


		2.3.1	Amount of Benefit. The annual benefit under this Section 2.3 is twenty-five percent (25%) of Final Pay.


		2.3.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the 





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			month following the
Executive's Normal Retirement Age. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.4	Voluntary Early Termination Benefit. Upon Voluntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.4 in lieu of any other benefit
under this Article.


		2.4.1	Amount of Benefit. The single lump sum benefit under this Section 2.4 is the Accrual Balance as of the month end prior to the date of Termination of Employment.


		2.4.2	Payment of Benefit. The Company shall pay the benefit in a lump sum within thirty (30) days following the Executive's Termination of Employment.





Article 3

Death Benefits


	3.1	Death During Active Service. If the Executive dies while in the active service of the Company, the Company shall pay to the Beneficiary the benefit described in this Section 3.1. This
benefit shall be paid in lieu of the benefits under Article 2.


		3.1.1	Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1.


		3.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Beneficiary in twelve (12) equal monthly installments commencing with the month following the Executive's death.
The annual benefit shall be paid to the Beneficiary for a period of fifteen (15) years.


	3.2	Death During Payment of a Benefit. If the Executive dies after any benefit payments have commenced under Article 2 of this Agreement but before receiving all such payments, the Company
shall pay the remaining benefits to the Beneficiary at the same time and in the same amounts they would have been paid to the Executive had the Executive survived.


	3.3	Death After Termination of Employment But Before Payment of a Benefit Commences.If the Executive is entitled to any benefit payments under Sections 2.1, 2.2 or 2.3 of this
Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the same benefit payments to the Beneficiary that the Executive was entitled to receive after his Normal
Retirement Age except that the benefit payments shall commence without any discount on the first day of the month following the date of the Executive's death. If the Executive is entitled to a single
lump sum benefit under Section 2.4, but dies prior to the date of payment, the Company shall pay the same single lump sum benefit to the Beneficiary of the Executive.








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Article 4

Beneficiaries


	4.1	Beneficiary Designation. The Executive shall have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under this Agreement upon the death of the
Executive. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Company in which the Executive
participates.


	4.2	Beneficiary Designation: Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan Administrator or
its designated agent. The Executive's Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and
the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form
and the Plan Administrator's rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator prior to
the Executive's death.


	4.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or its
designated agent.


	4.4	No Beneficiary Designation. If the Executive dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Executive, then the Executive's spouse shall
be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made to the personal representative of the Executive's estate.


	4.5	Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of
handling the disposition of that person's property, the Plan Administrator may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor,
incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment
of a benefit shall be a payment for the account of the Executive and the Executive's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such
payment amount.








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Article 5

General Limitations


	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Company's Board of Directors
terminates the Executive's employment for personal dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation
of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or material breach of the Executive's employment agreement (a "Termination for
Cause"). No act or failure to act by the Executive shall be considered willful unless the Executive acted or failed to act with an absence of good faith and without a reasonable belief that his
action or failure to act was in the best interest of the Company. No act or failure to act by the Executive in reliance upon an opinion of counsel shall be deemed to be willful. The Executive shall
not be deemed to have experienced a Termination 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 a majority of the entire membership of the Board of Directors of the Company, at a meeting of the Board duly called and held for such purpose (after reasonable notice to the Executive and an
opportunity for the Executive, together with the Executive's counsel, to be heard before the Board), stating that in the good faith opinion of the Board of
Directors the Executive has engaged in conduct described above and specifying the particulars thereof in detail. If the Executive has commenced receiving his benefit under this Agreement and it is
subsequently determined that he experienced a Termination for Cause, then his benefit shall immediately cease and the Executive shall be obligated to return to the Company the cumulative amount of
the benefits previously paid under the Agreement.


	5.2	Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Executive commits suicide within two years after the Effective Date.


	5.3	Regulatory Provisions. The obligations of the Company to the Executive under this Agreement are subject to the following restrictions:


		(a)	Temporary Suspension or Prohibition. If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company's affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act ("FDIA"), 12 U.S.C. §1818(e)(3)
and (g)(1), the Company's obligations to the Executive under this Agreement shall be suspended as of the date of service of such notice, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion reinstate in whole or in part any of its obligations which were suspended.


		(b)	Permanent Suspension or Prohibition.  If the Executive is removed and/or permanently prohibited from participating in the conduct of the Company's affairs by an order issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C.





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			 §1818(e)(4) and (g)(1), all obligations of
the Company to the Executive under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.


		(c)	Default. If the Company is in default (as defined in Section 3(x)(1) of the FDIA), all obligations of the Company to the Executive and Beneficiaries under this Agreement shall terminate
as of the date of default, but this provision shall not affect any vested rights of the contracting parties.


		(d)	Termination by Regulators. All obligations of the Company to the Executive and Beneficiaries under this Agreement shall be terminated, except to the extent determined that continuation
of this Agreement is necessary for the continued operation of the Company: (i) by the Director of the Office of Thrift Supervision (the "OTS Director")
or his designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Company under the authority contained in Section 13(c) of
the FDIA; or (ii) by the OTS Director or his designee, at the time the OTS Director or his designee approves a supervisory merger to resolve problems related to operation of the Company or when
the Company is determined by the OTS Director to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by any such action.


		(e)	Other Regulatory Restrictions on Payment. Notwithstanding anything herein to the contrary, (1) any payments made by the Company under this Agreement shall be subject to and conditioned
upon compliance with 12 U.S.C. §1828(k) and any regulations promulgated thereunder and (2) payments contemplated to be made by the Company under this
Agreement shall not be immediately payable to the extent such payments are barred or prohibited by an action or order issued by the Federal Deposit Insurance Corporation.





Article 6

Claims And Review Procedures


	6.1	Claims Procedure. An Executive or Beneficiary ("claimant") who has not received benefits under the Agreement that he or she believes should be paid shall make a claim for such benefits
as follows:


		6.1.1	Initiation - Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.


		6.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines
that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior
to the end of the initial 90-day 








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			period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects
to render its decision.


		6.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall
write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;


			(a)	An explanation of this Agreement's review procedures and the time limits applicable to such procedures; and


			(a)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.





	6.2	Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial,
as follows:


		6.2.1	Initiation - Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a
written request for review.


		6.2.2	Additional Submissions - Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.
The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits.


		6.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit determination.


		6.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within 60 days after receiving the request for review. If 








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			the Plan
Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 60 days by notifying the
claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Plan Administrator expects to render its decision.


		6.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated
to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits; and


			(d)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a).





Article 7

Amendments and Termination


This Agreement may only be amended, modified or terminated by the written consent of the Company and the Executive. Notwithstanding the foregoing, if the Plan Administrator
determines in good faith that the Executive, while employed by the Company, no longer qualifies as a member of a select group of management or highly compensated employees, as membership in such
group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, the Plan Administrator shall have the right, in its
sole discretion, to immediately distribute in a lump sum the present value of the Executive's benefits (determined by applying the Discount Rate), determined as if the Executive experienced a
Voluntary Early Termination, and terminate the Executive's participation herein.


Article 8

Administration of Agreement


	8.1	Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator which shall consist of the Board of Directors of the Company, or such committee or
person(s) as the Board shall appoint. The Executive may be a member of 








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		the Plan Administrator. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and
enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in
connection with the Agreement.


	8.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a
duly appointed representative), and may from time to time consult with counsel who may be counsel to the Company.


	8.3	Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and
application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. Neither the
Executive nor any Beneficiary shall be deemed to have any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the Discount
Rate.


	8.4	Indemnity of Plan Administrator. The Company shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members.


	8.5	Company Information. To enable the Plan Administrator to perform its functions, the Company shall supply full and timely information to the Plan Administrator on all matters relating to
the date and circumstances of the retirement, Disability, death, or Termination of Employment of the Executive, and such other pertinent information as the Plan Administrator may reasonably
require.





Article 9

Miscellaneous


	9.1	Binding Effect. This Agreement shall bind the Executive and the Company, and their beneficiaries, survivors, executors, successors, administrators and transferees.


	9.2	No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Company, nor does it interfere
with the Company's right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive's right to terminate employment at any time.


	9.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.








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	9.4	Tax Withholding. The Company shall withhold any taxes that, in its reasonable judgment, are required to be withheld from the benefits provided under this Agreement. The Executive
acknowledges that the Company's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).


	9.5	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Virginia, except to the extent preempted by the laws of the United States of
America.


	9.6	Unfunded Arrangement. The Executive and Beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere
promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive's life is a general asset of the Company to which the Executive and Beneficiary have no preferred or secured claim.


	9.7	Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm, or person
unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term "Company"
as used in this Agreement shall be deemed to refer to the successor or survivor company.


	9.8	Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue
of this Agreement other than those specifically set forth herein.


	9.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires, and the context will permit, the use of the masculine gender includes the feminine and use
of the singular includes the plural.


	9.10	Alternative Action. In the event it shall become impossible for the Company or the Plan Administrator to perform any act required by this Agreement, the Company or Plan Administrator
may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Company.


	9.11	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any of its provisions.


	9.12	Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Agreement shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.








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	9.13	Notice. Any notice or filing required or permitted to be given to the Company or Plan Administrator under this Agreement shall be sufficient if in writing and hand-delivered, or sent
by registered or certified mail, to the address below:


		Corporate Secretary
Community Bank
38 North Central Avenue
Staunton, Virginia 24401


		Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.


		Any notice or filing required or permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Executive.





       The Executive and a duly authorized representative of the Company have signed this Agreement as of the day and year first above written.



	DIRECTOR:



/s/ R. Jerry Giles
		COMPANY:

Community Bank

By  /s/ P. Douglas Richard


Title  President & CEO












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BENEFICIARY DESIGNATION FORM








I designate the following as beneficiary of benefits under the Agreement payable following my death:


Primary: _________________________________________________________________


_____________________________________________________________________________


Contingent: _________________________________________________________________


_____________________________________________________________________________


Note: To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.


I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator. I further understand that the designations will be automatically
revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.


Name: _______________________________


Signature: _______________________________ Date: _______



	SPOUSAL CONSENT (Required if Spouse not named beneficiary):


I consent to the beneficiary designation above, and acknowledge that if I am named beneficiary and our marriage is subsequently dissolved, the designation will be automatically revoked.


Spouse Name: _______________________________


Signature: _______________________________ Date: _______







Received by the Plan Administrator this ________ day of ___________________, 20___.


By: _________________________________


Title: _________________________________


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Salary Continuation Agreement




COMMUNITY BANK

SALARY CONTINUATION AGREEMENT


       THIS SALARY CONTINUATION AGREEMENT (the "Agreement") is adopted this 3rd day of March, 2004, by and between COMMUNITY BANK, a savings association located in Staunton, Virginia (the
"Company"), and CHRIS KYRIAKIDES (the "Executive").


       The purpose of this Agreement is to provide specified benefits to the Executive, a member of a select group of management or highly compensated employees who contribute
materially to the continued growth, development and future business success of the Company. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee
Retirement Income Security Act of 1974 ("ERISA"), as amended from time to time. The Company will pay the benefits from its general assets.


       The Company and the Executive agree as provided herein.


Article 1

Definitions


       Whenever used in this Agreement, the following words and phrases shall have the meanings specified:


	1.1	"Accrual Balance" means the liability accrued by the Company, under Generally Accepted Accounting Principles ("GAAP"), for the Company's obligation to the Executive under this Agreement, by
applying Accounting Principles Board Opinion Number 12 ("APB 12") as amended by Statement of Financial Accounting Standards Number 106 ("FAS 106") and the Discount Rate. The Accrual Balance shall be
reported by the Company to the Executive on an annual basis.


	1.2	"Beneficiary" means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive determined pursuant to Article 4.


	1.3	"Beneficiary Designation Form" means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the Plan Administrator to designate
one or more Beneficiaries.


	1.4	"Change in Control" has the meaning set forth in the Severance Agreement.


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


	1.6	"Disability" means the Executive's suffering a sickness, accident or injury which has been determined by the insurance carrier of any individual or group disability insurance








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		policy
covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Plan
Administrator of the insurance carrier's or Social Security Administration's determination upon the request of the Plan Administrator.


	1.7	"Discount Rate" means an annual rate of 7%. However, the Plan Administrator, in its sole discretion, may adjust the Discount Rate upward, but only to maintain the rate within reasonable
standards according to GAAP.


	1.8	"Effective Date" means January 1, 2004.


	1.9	"Final Pay" means the annual cash compensation relating to services performed by the Executive for the Company and its affiliates, including bonuses, paid during either (1) the calendar
year preceding the calendar year in which the Executive's Termination of Employment occurs, or (2) the calendar year in which the Executive's Termination of Employment occurs, whichever is greater,
excluding fringe benefits, stock options, other stock based compensation, relocation expenses, non-monetary awards, and automobile and other allowances paid to the Executive for employment services
rendered (whether or not such allowances are included in the Executive's gross income). Compensation shall be calculated before reduction for compensation voluntarily deferred or contributed by the
Executive pursuant to all qualified or non-qualified plans of the Company and its affiliates and shall be calculated to include amounts not otherwise included in the Executive's gross income;
provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash to the Executive.


	1.10	"GAAP" means U.S. generally accepted accounting principles.


	1.11	"Involuntary Early Termination" means that the Executive, prior to Normal Retirement Age, has (i) experienced a termination of employment by the Company without Cause; or (ii) experienced
an Involuntary Termination (in each case as such terms are defined in the Severance Agreement).


	1.12	"Normal Retirement Age" means the Executive's 65th birthday.


	1.13	"Normal Retirement Date" means the later of the Normal Retirement Age or Termination of Employment.


	1.14	"Plan Administrator" means the plan administrator described in Article 8.


	1.15	"Severance Agreement" means the written severance agreement between the Executive and the Company dated April 1, 2000, as the same may be thereafter amended prior to a Change in
Control.


	1.16	"Termination for Cause" has that meaning set forth in Article 5.








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	1.17	"Termination of Employment" means that the Executive ceases to be employed by the Company for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by
the Company.


	1.18	"Voluntary Early Termination" means that the Executive, prior to Normal Retirement Age has terminated employment with the Company for reasons other than Termination for Cause, Disability,
Involuntary Early Termination, or death.





Article 2

Benefits During Lifetime


	2.1	Normal Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this Article.


		2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is twenty-five percent (25%) of Final Pay.


		2.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following the
Executive's Normal Retirement Date. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.2	Disability Benefit. Upon Termination of Employment due to Disability prior to Normal Retirement Age, the Company shall pay to the Executive the benefit described in this
Section 2.2 in lieu of any other benefit under this Article.


		2.2.1	Amount of Benefit. The annual benefit under this Section 2.2 is twenty-five percent (25%) of Final Pay.


		2.2.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing with the month following Normal Retirement Age. The
annual benefit shall be paid to the Executive for fifteen (15) years.


	2.3	Involuntary Early Termination Benefit. Upon Involuntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Article.


		2.3.1	Amount of Benefit. The annual benefit under this Section 2.3 is twenty-five percent (25%) of Final Pay.


		2.3.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the 





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			month following the
Executive's Normal Retirement Age. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.4	Voluntary Early Termination Benefit. Upon Voluntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.4 in lieu of any other benefit
under this Article.


		2.4.1	Amount of Benefit. The single lump sum benefit under this Section 2.4 is the Accrual Balance as of the month end prior to the date of Termination of Employment.


		2.4.2	Payment of Benefit. The Company shall pay the benefit in a lump sum within thirty (30) days following the Executive's Termination of Employment.





Article 3

Death Benefits


	3.1	Death During Active Service. If the Executive dies while in the active service of the Company, the Company shall pay to the Beneficiary the benefit described in this Section 3.1. This
benefit shall be paid in lieu of the benefits under Article 2.


		3.1.1	Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1.


		3.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Beneficiary in twelve (12) equal monthly installments commencing with the month following the Executive's death.
The annual benefit shall be paid to the Beneficiary for a period of fifteen (15) years.


	3.2	Death During Payment of a Benefit. If the Executive dies after any benefit payments have commenced under Article 2 of this Agreement but before receiving all such payments, the Company
shall pay the remaining benefits to the Beneficiary at the same time and in the same amounts they would have been paid to the Executive had the Executive survived.


	3.3	Death After Termination of Employment But Before Payment of a Benefit Commences.If the Executive is entitled to any benefit payments under Sections 2.1, 2.2 or 2.3 of this
Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the same benefit payments to the Beneficiary that the Executive was entitled to receive after his Normal
Retirement Age except that the benefit payments shall commence without any discount on the first day of the month following the date of the Executive's death. If the Executive is entitled to a single
lump sum benefit under Section 2.4, but dies prior to the date of payment, the Company shall pay the same single lump sum benefit to the Beneficiary of the Executive.








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Article 4

Beneficiaries


	4.1	Beneficiary Designation. The Executive shall have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under this Agreement upon the death of the
Executive. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Company in which the Executive
participates.


	4.2	Beneficiary Designation: Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan Administrator or
its designated agent. The Executive's Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and
the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form
and the Plan Administrator's rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator prior to
the Executive's death.


	4.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or its
designated agent.


	4.4	No Beneficiary Designation. If the Executive dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Executive, then the Executive's spouse shall
be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made to the personal representative of the Executive's estate.


	4.5	Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of
handling the disposition of that person's property, the Plan Administrator may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor,
incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment
of a benefit shall be a payment for the account of the Executive and the Executive's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such
payment amount.








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Article 5

General Limitations


	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Company's Board of Directors
terminates the Executive's employment for personal dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation
of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or material breach of the Executive's employment agreement (a "Termination for
Cause"). No act or failure to act by the Executive shall be considered willful unless the Executive acted or failed to act with an absence of good faith and without a reasonable belief that his
action or failure to act was in the best interest of the Company. No act or failure to act by the Executive in reliance upon an opinion of counsel shall be deemed to be willful. The Executive shall
not be deemed to have experienced a Termination 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 a majority of the entire membership of the Board of Directors of the Company, at a meeting of the Board duly called and held for such purpose (after reasonable notice to the Executive and an
opportunity for the Executive, together with the Executive's counsel, to be heard before the Board), stating that in the good faith opinion of the Board of
Directors the Executive has engaged in conduct described above and specifying the particulars thereof in detail. If the Executive has commenced receiving his benefit under this Agreement and it is
subsequently determined that he experienced a Termination for Cause, then his benefit shall immediately cease and the Executive shall be obligated to return to the Company the cumulative amount of
the benefits previously paid under the Agreement.


	5.2	Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Executive commits suicide within two years after the Effective Date.


	5.3	Regulatory Provisions. The obligations of the Company to the Executive under this Agreement are subject to the following restrictions:


		(a)	Temporary Suspension or Prohibition. If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company's affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act ("FDIA"), 12 U.S.C. §1818(e)(3)
and (g)(1), the Company's obligations to the Executive under this Agreement shall be suspended as of the date of service of such notice, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion reinstate in whole or in part any of its obligations which were suspended.


		(b)	Permanent Suspension or Prohibition.  If the Executive is removed and/or permanently prohibited from participating in the conduct of the Company's affairs by an order issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C.





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			 §1818(e)(4) and (g)(1), all obligations of
the Company to the Executive under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.


		(c)	Default. If the Company is in default (as defined in Section 3(x)(1) of the FDIA), all obligations of the Company to the Executive and Beneficiaries under this Agreement shall terminate
as of the date of default, but this provision shall not affect any vested rights of the contracting parties.


		(d)	Termination by Regulators. All obligations of the Company to the Executive and Beneficiaries under this Agreement shall be terminated, except to the extent determined that continuation
of this Agreement is necessary for the continued operation of the Company: (i) by the Director of the Office of Thrift Supervision (the "OTS Director")
or his designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Company under the authority contained in Section 13(c) of
the FDIA; or (ii) by the OTS Director or his designee, at the time the OTS Director or his designee approves a supervisory merger to resolve problems related to operation of the Company or when
the Company is determined by the OTS Director to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by any such action.


		(e)	Other Regulatory Restrictions on Payment. Notwithstanding anything herein to the contrary, (1) any payments made by the Company under this Agreement shall be subject to and conditioned
upon compliance with 12 U.S.C. §1828(k) and any regulations promulgated thereunder and (2) payments contemplated to be made by the Company under this
Agreement shall not be immediately payable to the extent such payments are barred or prohibited by an action or order issued by the Federal Deposit Insurance Corporation.





Article 6

Claims And Review Procedures


	6.1	Claims Procedure. An Executive or Beneficiary ("claimant") who has not received benefits under the Agreement that he or she believes should be paid shall make a claim for such benefits
as follows:


		6.1.1	Initiation - Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.


		6.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines
that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior
to the end of the initial 90-day 








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			period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects
to render its decision.


		6.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall
write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;


			(a)	An explanation of this Agreement's review procedures and the time limits applicable to such procedures; and


			(a)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.





	6.2	Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial,
as follows:


		6.2.1	Initiation - Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a
written request for review.


		6.2.2	Additional Submissions - Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.
The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits.


		6.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit determination.


		6.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within 60 days after receiving the request for review. If 








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			the Plan
Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 60 days by notifying the
claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Plan Administrator expects to render its decision.


		6.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated
to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits; and


			(d)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a).





Article 7

Amendments and Termination


This Agreement may only be amended, modified or terminated by the written consent of the Company and the Executive. Notwithstanding the foregoing, if the Plan Administrator
determines in good faith that the Executive, while employed by the Company, no longer qualifies as a member of a select group of management or highly compensated employees, as membership in such
group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, the Plan Administrator shall have the right, in its
sole discretion, to immediately distribute in a lump sum the present value of the Executive's benefits (determined by applying the Discount Rate), determined as if the Executive experienced a
Voluntary Early Termination, and terminate the Executive's participation herein.


Article 8

Administration of Agreement


	8.1	Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator which shall consist of the Board of Directors of the Company, or such committee or
person(s) as the Board shall appoint. The Executive may be a member of 








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		the Plan Administrator. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and
enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in
connection with the Agreement.


	8.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a
duly appointed representative), and may from time to time consult with counsel who may be counsel to the Company.


	8.3	Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and
application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. Neither the
Executive nor any Beneficiary shall be deemed to have any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the Discount
Rate.


	8.4	Indemnity of Plan Administrator. The Company shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members.


	8.5	Company Information. To enable the Plan Administrator to perform its functions, the Company shall supply full and timely information to the Plan Administrator on all matters relating to
the date and circumstances of the retirement, Disability, death, or Termination of Employment of the Executive, and such other pertinent information as the Plan Administrator may reasonably
require.





Article 9

Miscellaneous


	9.1	Binding Effect. This Agreement shall bind the Executive and the Company, and their beneficiaries, survivors, executors, successors, administrators and transferees.


	9.2	No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Company, nor does it interfere
with the Company's right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive's right to terminate employment at any time.


	9.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.








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	9.4	Tax Withholding. The Company shall withhold any taxes that, in its reasonable judgment, are required to be withheld from the benefits provided under this Agreement. The Executive
acknowledges that the Company's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).


	9.5	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Virginia, except to the extent preempted by the laws of the United States of
America.


	9.6	Unfunded Arrangement. The Executive and Beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere
promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive's life is a general asset of the Company to which the Executive and Beneficiary have no preferred or secured claim.


	9.7	Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm, or person
unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term "Company"
as used in this Agreement shall be deemed to refer to the successor or survivor company.


	9.8	Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue
of this Agreement other than those specifically set forth herein.


	9.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires, and the context will permit, the use of the masculine gender includes the feminine and use
of the singular includes the plural.


	9.10	Alternative Action. In the event it shall become impossible for the Company or the Plan Administrator to perform any act required by this Agreement, the Company or Plan Administrator
may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Company.


	9.11	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any of its provisions.


	9.12	Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Agreement shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.








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	9.13	Notice. Any notice or filing required or permitted to be given to the Company or Plan Administrator under this Agreement shall be sufficient if in writing and hand-delivered, or sent
by registered or certified mail, to the address below:


		Corporate Secretary
Community Bank
38 North Central Avenue
Staunton, Virginia 24401


		Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.


		Any notice or filing required or permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Executive.





       The Executive and a duly authorized representative of the Company have signed this Agreement as of the day and year first above written.



	DIRECTOR:



/s/ Chris Kyriakides
		COMPANY:

Community Bank

By  /s/ P. Douglas Richard


Title  President & CEO












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BENEFICIARY DESIGNATION FORM








I designate the following as beneficiary of benefits under the Agreement payable following my death:


Primary: _________________________________________________________________


_____________________________________________________________________________


Contingent: _________________________________________________________________


_____________________________________________________________________________


Note: To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.


I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator. I further understand that the designations will be automatically
revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.


Name: _______________________________


Signature: _______________________________ Date: _______



	SPOUSAL CONSENT (Required if Spouse not named beneficiary):


I consent to the beneficiary designation above, and acknowledge that if I am named beneficiary and our marriage is subsequently dissolved, the designation will be automatically revoked.


Spouse Name: _______________________________


Signature: _______________________________ Date: _______







Received by the Plan Administrator this ________ day of ___________________, 20___.


By: _________________________________


Title: _________________________________


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Salary Continuation Agreement




COMMUNITY BANK

SALARY CONTINUATION AGREEMENT


       THIS SALARY CONTINUATION AGREEMENT (the "Agreement") is adopted this 3rd day of March, 2004, by and between COMMUNITY BANK, a savings association located in Staunton, Virginia (the
"Company"), and NORMAN C. SMILEY, III (the "Executive").


       The purpose of this Agreement is to provide specified benefits to the Executive, a member of a select group of management or highly compensated employees who contribute
materially to the continued growth, development and future business success of the Company. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee
Retirement Income Security Act of 1974 ("ERISA"), as amended from time to time. The Company will pay the benefits from its general assets.


       The Company and the Executive agree as provided herein.


Article 1

Definitions


       Whenever used in this Agreement, the following words and phrases shall have the meanings specified:


	1.1	"Accrual Balance" means the liability accrued by the Company, under Generally Accepted Accounting Principles ("GAAP"), for the Company's obligation to the Executive under this Agreement, by
applying Accounting Principles Board Opinion Number 12 ("APB 12") as amended by Statement of Financial Accounting Standards Number 106 ("FAS 106") and the Discount Rate. The Accrual Balance shall be
reported by the Company to the Executive on an annual basis.


	1.2	"Beneficiary" means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive determined pursuant to Article 4.


	1.3	"Beneficiary Designation Form" means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the Plan Administrator to designate
one or more Beneficiaries.


	1.4	"Change in Control" has the meaning set forth in the Severance Agreement.


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


	1.6	"Disability" means the Executive's suffering a sickness, accident or injury which has been determined by the insurance carrier of any individual or group disability insurance








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		policy
covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Plan
Administrator of the insurance carrier's or Social Security Administration's determination upon the request of the Plan Administrator.


	1.7	"Discount Rate" means an annual rate of 7%. However, the Plan Administrator, in its sole discretion, may adjust the Discount Rate upward, but only to maintain the rate within reasonable
standards according to GAAP.


	1.8	"Effective Date" means January 1, 2004.


	1.9	"Final Pay" means the annual cash compensation relating to services performed by the Executive for the Company and its affiliates, including bonuses, paid during either (1) the calendar
year preceding the calendar year in which the Executive's Termination of Employment occurs, or (2) the calendar year in which the Executive's Termination of Employment occurs, whichever is greater,
excluding fringe benefits, stock options, other stock based compensation, relocation expenses, non-monetary awards, and automobile and other allowances paid to the Executive for employment services
rendered (whether or not such allowances are included in the Executive's gross income). Compensation shall be calculated before reduction for compensation voluntarily deferred or contributed by the
Executive pursuant to all qualified or non-qualified plans of the Company and its affiliates and shall be calculated to include amounts not otherwise included in the Executive's gross income;
provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash to the Executive.


	1.10	"GAAP" means U.S. generally accepted accounting principles.


	1.11	"Involuntary Early Termination" means that the Executive, prior to Normal Retirement Age, has (i) experienced a termination of employment by the Company without Cause; or (ii) experienced
an Involuntary Termination (in each case as such terms are defined in the Severance Agreement).


	1.12	"Normal Retirement Age" means the Executive's 65th birthday.


	1.13	"Normal Retirement Date" means the later of the Normal Retirement Age or Termination of Employment.


	1.14	"Plan Administrator" means the plan administrator described in Article 8.


	1.15	"Severance Agreement" means the written severance agreement between the Executive and the Company dated April 1, 2000, as the same may be thereafter amended prior to a Change in
Control.


	1.16	"Termination for Cause" has that meaning set forth in Article 5.








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	1.17	"Termination of Employment" means that the Executive ceases to be employed by the Company for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by
the Company.


	1.18	"Voluntary Early Termination" means that the Executive, prior to Normal Retirement Age has terminated employment with the Company for reasons other than Termination for Cause, Disability,
Involuntary Early Termination, or death.





Article 2

Benefits During Lifetime


	2.1	Normal Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this Article.


		2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is twenty-five percent (25%) of Final Pay.


		2.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following the
Executive's Normal Retirement Date. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.2	Disability Benefit. Upon Termination of Employment due to Disability prior to Normal Retirement Age, the Company shall pay to the Executive the benefit described in this
Section 2.2 in lieu of any other benefit under this Article.


		2.2.1	Amount of Benefit. The annual benefit under this Section 2.2 is twenty-five percent (25%) of Final Pay.


		2.2.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing with the month following Normal Retirement Age. The
annual benefit shall be paid to the Executive for fifteen (15) years.


	2.3	Involuntary Early Termination Benefit. Upon Involuntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Article.


		2.3.1	Amount of Benefit. The annual benefit under this Section 2.3 is twenty-five percent (25%) of Final Pay.


		2.3.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the 





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			month following the
Executive's Normal Retirement Age. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.4	Voluntary Early Termination Benefit. Upon Voluntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.4 in lieu of any other benefit
under this Article.


		2.4.1	Amount of Benefit. The single lump sum benefit under this Section 2.4 is the Accrual Balance as of the month end prior to the date of Termination of Employment.


		2.4.2	Payment of Benefit. The Company shall pay the benefit in a lump sum within thirty (30) days following the Executive's Termination of Employment.





Article 3

Death Benefits


	3.1	Death During Active Service. If the Executive dies while in the active service of the Company, the Company shall pay to the Beneficiary the benefit described in this Section 3.1. This
benefit shall be paid in lieu of the benefits under Article 2.


		3.1.1	Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1.


		3.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Beneficiary in twelve (12) equal monthly installments commencing with the month following the Executive's death.
The annual benefit shall be paid to the Beneficiary for a period of fifteen (15) years.


	3.2	Death During Payment of a Benefit. If the Executive dies after any benefit payments have commenced under Article 2 of this Agreement but before receiving all such payments, the Company
shall pay the remaining benefits to the Beneficiary at the same time and in the same amounts they would have been paid to the Executive had the Executive survived.


	3.3	Death After Termination of Employment But Before Payment of a Benefit Commences.If the Executive is entitled to any benefit payments under Sections 2.1, 2.2 or 2.3 of this
Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the same benefit payments to the Beneficiary that the Executive was entitled to receive after his Normal
Retirement Age except that the benefit payments shall commence without any discount on the first day of the month following the date of the Executive's death. If the Executive is entitled to a single
lump sum benefit under Section 2.4, but dies prior to the date of payment, the Company shall pay the same single lump sum benefit to the Beneficiary of the Executive.








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Article 4

Beneficiaries


	4.1	Beneficiary Designation. The Executive shall have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under this Agreement upon the death of the
Executive. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Company in which the Executive
participates.


	4.2	Beneficiary Designation: Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan Administrator or
its designated agent. The Executive's Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and
the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form
and the Plan Administrator's rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator prior to
the Executive's death.


	4.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or its
designated agent.


	4.4	No Beneficiary Designation. If the Executive dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Executive, then the Executive's spouse shall
be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made to the personal representative of the Executive's estate.


	4.5	Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of
handling the disposition of that person's property, the Plan Administrator may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor,
incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment
of a benefit shall be a payment for the account of the Executive and the Executive's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such
payment amount.








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Article 5

General Limitations


	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Company's Board of Directors
terminates the Executive's employment for personal dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation
of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or material breach of the Executive's employment agreement (a "Termination for
Cause"). No act or failure to act by the Executive shall be considered willful unless the Executive acted or failed to act with an absence of good faith and without a reasonable belief that his
action or failure to act was in the best interest of the Company. No act or failure to act by the Executive in reliance upon an opinion of counsel shall be deemed to be willful. The Executive shall
not be deemed to have experienced a Termination 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 a majority of the entire membership of the Board of Directors of the Company, at a meeting of the Board duly called and held for such purpose (after reasonable notice to the Executive and an
opportunity for the Executive, together with the Executive's counsel, to be heard before the Board), stating that in the good faith opinion of the Board of
Directors the Executive has engaged in conduct described above and specifying the particulars thereof in detail. If the Executive has commenced receiving his benefit under this Agreement and it is
subsequently determined that he experienced a Termination for Cause, then his benefit shall immediately cease and the Executive shall be obligated to return to the Company the cumulative amount of
the benefits previously paid under the Agreement.


	5.2	Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Executive commits suicide within two years after the Effective Date.


	5.3	Regulatory Provisions. The obligations of the Company to the Executive under this Agreement are subject to the following restrictions:


		(a)	Temporary Suspension or Prohibition. If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company's affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act ("FDIA"), 12 U.S.C. §1818(e)(3)
and (g)(1), the Company's obligations to the Executive under this Agreement shall be suspended as of the date of service of such notice, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion reinstate in whole or in part any of its obligations which were suspended.


		(b)	Permanent Suspension or Prohibition.  If the Executive is removed and/or permanently prohibited from participating in the conduct of the Company's affairs by an order issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C.





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			 §1818(e)(4) and (g)(1), all obligations of
the Company to the Executive under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.


		(c)	Default. If the Company is in default (as defined in Section 3(x)(1) of the FDIA), all obligations of the Company to the Executive and Beneficiaries under this Agreement shall terminate
as of the date of default, but this provision shall not affect any vested rights of the contracting parties.


		(d)	Termination by Regulators. All obligations of the Company to the Executive and Beneficiaries under this Agreement shall be terminated, except to the extent determined that continuation
of this Agreement is necessary for the continued operation of the Company: (i) by the Director of the Office of Thrift Supervision (the "OTS Director")
or his designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Company under the authority contained in Section 13(c) of
the FDIA; or (ii) by the OTS Director or his designee, at the time the OTS Director or his designee approves a supervisory merger to resolve problems related to operation of the Company or when
the Company is determined by the OTS Director to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by any such action.


		(e)	Other Regulatory Restrictions on Payment. Notwithstanding anything herein to the contrary, (1) any payments made by the Company under this Agreement shall be subject to and conditioned
upon compliance with 12 U.S.C. §1828(k) and any regulations promulgated thereunder and (2) payments contemplated to be made by the Company under this
Agreement shall not be immediately payable to the extent such payments are barred or prohibited by an action or order issued by the Federal Deposit Insurance Corporation.





Article 6

Claims And Review Procedures


	6.1	Claims Procedure. An Executive or Beneficiary ("claimant") who has not received benefits under the Agreement that he or she believes should be paid shall make a claim for such benefits
as follows:


		6.1.1	Initiation - Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.


		6.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines
that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior
to the end of the initial 90-day 








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			period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects
to render its decision.


		6.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall
write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;


			(a)	An explanation of this Agreement's review procedures and the time limits applicable to such procedures; and


			(a)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.





	6.2	Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial,
as follows:


		6.2.1	Initiation - Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a
written request for review.


		6.2.2	Additional Submissions - Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.
The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits.


		6.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit determination.


		6.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within 60 days after receiving the request for review. If 








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			the Plan
Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 60 days by notifying the
claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Plan Administrator expects to render its decision.


		6.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated
to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits; and


			(d)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a).





Article 7

Amendments and Termination


This Agreement may only be amended, modified or terminated by the written consent of the Company and the Executive. Notwithstanding the foregoing, if the Plan Administrator
determines in good faith that the Executive, while employed by the Company, no longer qualifies as a member of a select group of management or highly compensated employees, as membership in such
group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, the Plan Administrator shall have the right, in its
sole discretion, to immediately distribute in a lump sum the present value of the Executive's benefits (determined by applying the Discount Rate), determined as if the Executive experienced a
Voluntary Early Termination, and terminate the Executive's participation herein.


Article 8

Administration of Agreement


	8.1	Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator which shall consist of the Board of Directors of the Company, or such committee or
person(s) as the Board shall appoint. The Executive may be a member of 








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		the Plan Administrator. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and
enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in
connection with the Agreement.


	8.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a
duly appointed representative), and may from time to time consult with counsel who may be counsel to the Company.


	8.3	Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and
application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. Neither the
Executive nor any Beneficiary shall be deemed to have any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the Discount
Rate.


	8.4	Indemnity of Plan Administrator. The Company shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members.


	8.5	Company Information. To enable the Plan Administrator to perform its functions, the Company shall supply full and timely information to the Plan Administrator on all matters relating to
the date and circumstances of the retirement, Disability, death, or Termination of Employment of the Executive, and such other pertinent information as the Plan Administrator may reasonably
require.





Article 9

Miscellaneous


	9.1	Binding Effect. This Agreement shall bind the Executive and the Company, and their beneficiaries, survivors, executors, successors, administrators and transferees.


	9.2	No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Company, nor does it interfere
with the Company's right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive's right to terminate employment at any time.


	9.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.








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	9.4	Tax Withholding. The Company shall withhold any taxes that, in its reasonable judgment, are required to be withheld from the benefits provided under this Agreement. The Executive
acknowledges that the Company's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).


	9.5	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Virginia, except to the extent preempted by the laws of the United States of
America.


	9.6	Unfunded Arrangement. The Executive and Beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere
promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive's life is a general asset of the Company to which the Executive and Beneficiary have no preferred or secured claim.


	9.7	Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm, or person
unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term "Company"
as used in this Agreement shall be deemed to refer to the successor or survivor company.


	9.8	Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue
of this Agreement other than those specifically set forth herein.


	9.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires, and the context will permit, the use of the masculine gender includes the feminine and use
of the singular includes the plural.


	9.10	Alternative Action. In the event it shall become impossible for the Company or the Plan Administrator to perform any act required by this Agreement, the Company or Plan Administrator
may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Company.


	9.11	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any of its provisions.


	9.12	Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Agreement shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.








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	9.13	Notice. Any notice or filing required or permitted to be given to the Company or Plan Administrator under this Agreement shall be sufficient if in writing and hand-delivered, or sent
by registered or certified mail, to the address below:


		Corporate Secretary
Community Bank
38 North Central Avenue
Staunton, Virginia 24401


		Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.


		Any notice or filing required or permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Executive.





       The Executive and a duly authorized representative of the Company have signed this Agreement as of the day and year first above written.



	DIRECTOR:



/s/ Norman C. Smiley
		COMPANY:

Community Bank

By  /s/ P. Douglas Richard


Title  President & CEO












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BENEFICIARY DESIGNATION FORM








I designate the following as beneficiary of benefits under the Agreement payable following my death:


Primary: _________________________________________________________________


_____________________________________________________________________________


Contingent: _________________________________________________________________


_____________________________________________________________________________


Note: To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.


I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator. I further understand that the designations will be automatically
revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.


Name: _______________________________


Signature: _______________________________ Date: _______



	SPOUSAL CONSENT (Required if Spouse not named beneficiary):


I consent to the beneficiary designation above, and acknowledge that if I am named beneficiary and our marriage is subsequently dissolved, the designation will be automatically revoked.


Spouse Name: _______________________________


Signature: _______________________________ Date: _______







Received by the Plan Administrator this ________ day of ___________________, 20___.


By: _________________________________


Title: _________________________________


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Salary Continuation Agreement




COMMUNITY BANK

SALARY CONTINUATION AGREEMENT


       THIS SALARY CONTINUATION AGREEMENT (the "Agreement") is adopted this 3rd day of March, 2004, by and between COMMUNITY BANK, a savings association located in Staunton, Virginia (the
"Company"), and P. DOUGLAS RICHARD (the "Executive").


       The purpose of this Agreement is to provide specified benefits to the Executive, a member of a select group of management or highly compensated employees who contribute
materially to the continued growth, development and future business success of the Company. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee
Retirement Income Security Act of 1974 ("ERISA"), as amended from time to time. The Company will pay the benefits from its general assets.


       The Company and the Executive agree as provided herein.


Article 1

Definitions


       Whenever used in this Agreement, the following words and phrases shall have the meanings specified:


	1.1	"Accrual Balance" means the liability accrued by the Company, under Generally Accepted Accounting Principles ("GAAP"), for the Company's obligation to the Executive under this Agreement, by
applying Accounting Principles Board Opinion Number 12 ("APB 12") as amended by Statement of Financial Accounting Standards Number 106 ("FAS 106") and the Discount Rate. The Accrual Balance shall be
reported by the Company to the Executive on an annual basis.


	1.2	"Beneficiary" means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive determined pursuant to Article 4.


	1.3	"Beneficiary Designation Form" means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the Plan Administrator to designate
one or more Beneficiaries.


	1.4	"Change in Control" has the meaning set forth in the Severance Agreement.


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


	1.6	"Disability" means the Executive's suffering a sickness, accident or injury which has been determined by the insurance carrier of any individual or group disability insurance








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		policy
covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Plan
Administrator of the insurance carrier's or Social Security Administration's determination upon the request of the Plan Administrator.


	1.7	"Discount Rate" means an annual rate of 7%. However, the Plan Administrator, in its sole discretion, may adjust the Discount Rate upward, but only to maintain the rate within reasonable
standards according to GAAP.


	1.8	"Effective Date" means January 1, 2004.


	1.9	"Final Pay" means the annual cash compensation relating to services performed by the Executive for the Company and its affiliates, including bonuses, paid during either (1) the calendar
year preceding the calendar year in which the Executive's Termination of Employment occurs, or (2) the calendar year in which the Executive's Termination of Employment occurs, whichever is greater,
excluding fringe benefits, stock options, other stock based compensation, relocation expenses, non-monetary awards, and automobile and other allowances paid to the Executive for employment services
rendered (whether or not such allowances are included in the Executive's gross income). Compensation shall be calculated before reduction for compensation voluntarily deferred or contributed by the
Executive pursuant to all qualified or non-qualified plans of the Company and its affiliates and shall be calculated to include amounts not otherwise included in the Executive's gross income;
provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash to the Executive.


	1.10	"GAAP" means U.S. generally accepted accounting principles.


	1.11	"Involuntary Early Termination" means that the Executive, prior to Normal Retirement Age, has (i) experienced a termination of employment by the Company without Cause; or (ii) experienced
an Involuntary Termination (in each case as such terms are defined in the Severance Agreement).


	1.12	"Normal Retirement Age" means the Executive's 65th birthday.


	1.13	"Normal Retirement Date" means the later of the Normal Retirement Age or Termination of Employment.


	1.14	"Plan Administrator" means the plan administrator described in Article 8.


	1.15	"Severance Agreement" means the written severance agreement between the Executive and the Company dated April 1, 2000, as the same may be thereafter amended prior to a Change in
Control.


	1.16	"Termination for Cause" has that meaning set forth in Article 5.








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	1.17	"Termination of Employment" means that the Executive ceases to be employed by the Company for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by
the Company.


	1.18	"Voluntary Early Termination" means that the Executive, prior to Normal Retirement Age has terminated employment with the Company for reasons other than Termination for Cause, Disability,
Involuntary Early Termination, or death.





Article 2

Benefits During Lifetime


	2.1	Normal Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this Article.


		2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is twenty-five percent (25%) of Final Pay.


		2.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following the
Executive's Normal Retirement Date. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.2	Disability Benefit. Upon Termination of Employment due to Disability prior to Normal Retirement Age, the Company shall pay to the Executive the benefit described in this
Section 2.2 in lieu of any other benefit under this Article.


		2.2.1	Amount of Benefit. The annual benefit under this Section 2.2 is twenty-five percent (25%) of Final Pay.


		2.2.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing with the month following Normal Retirement Age. The
annual benefit shall be paid to the Executive for fifteen (15) years.


	2.3	Involuntary Early Termination Benefit. Upon Involuntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Article.


		2.3.1	Amount of Benefit. The annual benefit under this Section 2.3 is twenty-five percent (25%) of Final Pay.


		2.3.2	Payment of Benefit. The Company shall pay the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the 





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			month following the
Executive's Normal Retirement Age. The annual benefit shall be paid to the Executive for fifteen (15) years.


	2.4	Voluntary Early Termination Benefit. Upon Voluntary Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.4 in lieu of any other benefit
under this Article.


		2.4.1	Amount of Benefit. The single lump sum benefit under this Section 2.4 is the Accrual Balance as of the month end prior to the date of Termination of Employment.


		2.4.2	Payment of Benefit. The Company shall pay the benefit in a lump sum within thirty (30) days following the Executive's Termination of Employment.





Article 3

Death Benefits


	3.1	Death During Active Service. If the Executive dies while in the active service of the Company, the Company shall pay to the Beneficiary the benefit described in this Section 3.1. This
benefit shall be paid in lieu of the benefits under Article 2.


		3.1.1	Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1.


		3.1.2	Payment of Benefit. The Company shall pay the annual benefit to the Beneficiary in twelve (12) equal monthly installments commencing with the month following the Executive's death.
The annual benefit shall be paid to the Beneficiary for a period of fifteen (15) years.


	3.2	Death During Payment of a Benefit. If the Executive dies after any benefit payments have commenced under Article 2 of this Agreement but before receiving all such payments, the Company
shall pay the remaining benefits to the Beneficiary at the same time and in the same amounts they would have been paid to the Executive had the Executive survived.


	3.3	Death After Termination of Employment But Before Payment of a Benefit Commences.If the Executive is entitled to any benefit payments under Sections 2.1, 2.2 or 2.3 of this
Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the same benefit payments to the Beneficiary that the Executive was entitled to receive after his Normal
Retirement Age except that the benefit payments shall commence without any discount on the first day of the month following the date of the Executive's death. If the Executive is entitled to a single
lump sum benefit under Section 2.4, but dies prior to the date of payment, the Company shall pay the same single lump sum benefit to the Beneficiary of the Executive.








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Article 4

Beneficiaries


	4.1	Beneficiary Designation. The Executive shall have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under this Agreement upon the death of the
Executive. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Company in which the Executive
participates.


	4.2	Beneficiary Designation: Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan Administrator or
its designated agent. The Executive's Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and
the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form
and the Plan Administrator's rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator prior to
the Executive's death.


	4.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or its
designated agent.


	4.4	No Beneficiary Designation. If the Executive dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Executive, then the Executive's spouse shall
be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made to the personal representative of the Executive's estate.


	4.5	Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of
handling the disposition of that person's property, the Plan Administrator may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor,
incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment
of a benefit shall be a payment for the account of the Executive and the Executive's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such
payment amount.








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Article 5

General Limitations


	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Company's Board of Directors
terminates the Executive's employment for personal dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation
of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or material breach of the Executive's employment agreement (a "Termination for
Cause"). No act or failure to act by the Executive shall be considered willful unless the Executive acted or failed to act with an absence of good faith and without a reasonable belief that his
action or failure to act was in the best interest of the Company. No act or failure to act by the Executive in reliance upon an opinion of counsel shall be deemed to be willful. The Executive shall
not be deemed to have experienced a Termination 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 a majority of the entire membership of the Board of Directors of the Company, at a meeting of the Board duly called and held for such purpose (after reasonable notice to the Executive and an
opportunity for the Executive, together with the Executive's counsel, to be heard before the Board), stating that in the good faith opinion of the Board of
Directors the Executive has engaged in conduct described above and specifying the particulars thereof in detail. If the Executive has commenced receiving his benefit under this Agreement and it is
subsequently determined that he experienced a Termination for Cause, then his benefit shall immediately cease and the Executive shall be obligated to return to the Company the cumulative amount of
the benefits previously paid under the Agreement.


	5.2	Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Executive commits suicide within two years after the Effective Date.


	5.3	Regulatory Provisions. The obligations of the Company to the Executive under this Agreement are subject to the following restrictions:


		(a)	Temporary Suspension or Prohibition. If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company's affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act ("FDIA"), 12 U.S.C. §1818(e)(3)
and (g)(1), the Company's obligations to the Executive under this Agreement shall be suspended as of the date of service of such notice, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion reinstate in whole or in part any of its obligations which were suspended.


		(b)	Permanent Suspension or Prohibition.  If the Executive is removed and/or permanently prohibited from participating in the conduct of the Company's affairs by an order issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C.





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			 §1818(e)(4) and (g)(1), all obligations of
the Company to the Executive under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.


		(c)	Default. If the Company is in default (as defined in Section 3(x)(1) of the FDIA), all obligations of the Company to the Executive and Beneficiaries under this Agreement shall terminate
as of the date of default, but this provision shall not affect any vested rights of the contracting parties.


		(d)	Termination by Regulators. All obligations of the Company to the Executive and Beneficiaries under this Agreement shall be terminated, except to the extent determined that continuation
of this Agreement is necessary for the continued operation of the Company: (i) by the Director of the Office of Thrift Supervision (the "OTS Director")
or his designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Company under the authority contained in Section 13(c) of
the FDIA; or (ii) by the OTS Director or his designee, at the time the OTS Director or his designee approves a supervisory merger to resolve problems related to operation of the Company or when
the Company is determined by the OTS Director to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by any such action.


		(e)	Other Regulatory Restrictions on Payment. Notwithstanding anything herein to the contrary, (1) any payments made by the Company under this Agreement shall be subject to and conditioned
upon compliance with 12 U.S.C. §1828(k) and any regulations promulgated thereunder and (2) payments contemplated to be made by the Company under this
Agreement shall not be immediately payable to the extent such payments are barred or prohibited by an action or order issued by the Federal Deposit Insurance Corporation.





Article 6

Claims And Review Procedures


	6.1	Claims Procedure. An Executive or Beneficiary ("claimant") who has not received benefits under the Agreement that he or she believes should be paid shall make a claim for such benefits
as follows:


		6.1.1	Initiation - Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.


		6.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines
that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior
to the end of the initial 90-day 








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			period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects
to render its decision.


		6.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall
write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;


			(a)	An explanation of this Agreement's review procedures and the time limits applicable to such procedures; and


			(a)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.





	6.2	Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial,
as follows:


		6.2.1	Initiation - Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a
written request for review.


		6.2.2	Additional Submissions - Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.
The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits.


		6.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit determination.


		6.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within 60 days after receiving the request for review. If 








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			the Plan
Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 60 days by notifying the
claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Plan Administrator expects to render its decision.


		6.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated
to be understood by the claimant. The notification shall set forth:





			(a)	The specific reasons for the denial;


			(b)	A reference to the specific provisions of this Agreement on which the denial is based;


			(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant's claim for benefits; and


			(d)	A statement of the claimant's right to bring a civil action under ERISA Section 502(a).





Article 7

Amendments and Termination


This Agreement may only be amended, modified or terminated by the written consent of the Company and the Executive. Notwithstanding the foregoing, if the Plan Administrator
determines in good faith that the Executive, while employed by the Company, no longer qualifies as a member of a select group of management or highly compensated employees, as membership in such
group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, the Plan Administrator shall have the right, in its
sole discretion, to immediately distribute in a lump sum the present value of the Executive's benefits (determined by applying the Discount Rate), determined as if the Executive experienced a
Voluntary Early Termination, and terminate the Executive's participation herein.


Article 8

Administration of Agreement


	8.1	Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator which shall consist of the Board of Directors of the Company, or such committee or
person(s) as the Board shall appoint. The Executive may be a member of 








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		the Plan Administrator. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and
enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in
connection with the Agreement.


	8.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a
duly appointed representative), and may from time to time consult with counsel who may be counsel to the Company.


	8.3	Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and
application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. Neither the
Executive nor any Beneficiary shall be deemed to have any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the Discount
Rate.


	8.4	Indemnity of Plan Administrator. The Company shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members.


	8.5	Company Information. To enable the Plan Administrator to perform its functions, the Company shall supply full and timely information to the Plan Administrator on all matters relating to
the date and circumstances of the retirement, Disability, death, or Termination of Employment of the Executive, and such other pertinent information as the Plan Administrator may reasonably
require.





Article 9

Miscellaneous


	9.1	Binding Effect. This Agreement shall bind the Executive and the Company, and their beneficiaries, survivors, executors, successors, administrators and transferees.


	9.2	No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Company, nor does it interfere
with the Company's right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive's right to terminate employment at any time.


	9.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.








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	9.4	Tax Withholding. The Company shall withhold any taxes that, in its reasonable judgment, are required to be withheld from the benefits provided under this Agreement. The Executive
acknowledges that the Company's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).


	9.5	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the Commonwealth of Virginia, except to the extent preempted by the laws of the United States of
America.


	9.6	Unfunded Arrangement. The Executive and Beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere
promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive's life is a general asset of the Company to which the Executive and Beneficiary have no preferred or secured claim.


	9.7	Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm, or person
unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term "Company"
as used in this Agreement shall be deemed to refer to the successor or survivor company.


	9.8	Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue
of this Agreement other than those specifically set forth herein.


	9.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires, and the context will permit, the use of the masculine gender includes the feminine and use
of the singular includes the plural.


	9.10	Alternative Action. In the event it shall become impossible for the Company or the Plan Administrator to perform any act required by this Agreement, the Company or Plan Administrator
may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Company.


	9.11	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any of its provisions.


	9.12	Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Agreement shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.








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Salary Continuation Agreement







	9.13	Notice. Any notice or filing required or permitted to be given to the Company or Plan Administrator under this Agreement shall be sufficient if in writing and hand-delivered, or sent
by registered or certified mail, to the address below:


		Corporate Secretary
Community Bank
38 North Central Avenue
Staunton, Virginia 24401


		Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.


		Any notice or filing required or permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Executive.





       The Executive and a duly authorized representative of the Company have signed this Agreement as of the day and year first above written.



	DIRECTOR:



/s/ P. Douglas Richard
		COMPANY:

Community Bank

By  /s/ James R. Cooke, Jr.


Title  Chairman of the Board












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Salary Continuation Agreement
BENEFICIARY DESIGNATION FORM








I designate the following as beneficiary of benefits under the Agreement payable following my death:


Primary: _________________________________________________________________


_____________________________________________________________________________


Contingent: _________________________________________________________________


_____________________________________________________________________________


Note: To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.


I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator. I further understand that the designations will be automatically
revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.


Name: _______________________________


Signature: _______________________________ Date: _______



	SPOUSAL CONSENT (Required if Spouse not named beneficiary):


I consent to the beneficiary designation above, and acknowledge that if I am named beneficiary and our marriage is subsequently dissolved, the designation will be automatically revoked.


Spouse Name: _______________________________


Signature: _______________________________ Date: _______







Received by the Plan Administrator this ________ day of ___________________, 20___.


By: _________________________________


Title: _________________________________


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