Document:

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                                 EXHIBIT 10.32

                                    FORM OF

                          CHANGE IN CONTROL AGREEMENT

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                          CHANGE IN CONTROL AGREEMENT

         THIS CHANGE IN CONTROL AGREEMENT (this "Agreement"), dated this 4th
day of December, 1999, by and between Community Bancshares, Inc. a Delaware
corporation (the "Company"), and ___________________ (the "Executive").

                                  WITNESSETH:

         WHEREAS, the Company wishes to assure itself and its key employees of
continuity of management and objective judgment in the event of any actual or
contemplated Change in Control of the Company, and the Executive is a key
employee of the Company or one of its subsidiaries and is an integral part of
management of the Company (for purposes hereof employment with any present or
future parent or subsidiary corporation of the Company shall be considered
employment by the Company); and

         WHEREAS, this Agreement is not intended to materially alter the
compensation and benefits that the Executive could reasonably expect to receive
in the absence of a Change in Control of the Company, and this Agreement
accordingly will be operative only upon circumstances relating to an actual or
anticipated change in control of the Company.

         NOW, THEREFORE, for and in consideration of the premises and the
mutual covenants herein contained, the parties hereby agree as follows:

         I.                OPERATION OF AGREEMENT

         This Agreement shall be effective immediately upon its execution by
the parties hereto, but anything in this Agreement to the contrary
notwithstanding, neither the Agreement nor any provision hereof shall be
operative unless, during the term of this Agreement, there has been a Change in
Control of the Company during the term of this Agreement, all of the provisions
hereof shall become operative immediately.

         II.               TERM OF AGREEMENT

                  The term of this Agreement shall be for an initial three (3)
year period commencing on the date hereof; provided however that this Agreement
shall be extended automatically for one (1) additional year at the end of this
initial term and at the end of each additional year thereafter, unless the
Compensation Committee delivers written notice twelve (12) months prior to the
end of such term, or extended term, to the Executive, that the Agreement will
not be extended. In such case, the Agreement will terminate at the end of the
term, or extended term, then in progress.

        However, in the event a Change in Control occurs during the original or
any extended term, this Agreement will remain in effect until all obligations
of the Company hereunder have been fulfilled, and until all benefits required
hereunder have been paid to the Executive.

         III.              DEFINITIONS

         1.       "BOARD" or "BOARD OF DIRECTORS" - the Board of Directors of
the Company.

         2.       "CAUSE" - either

         (I)      any act that constitutes, on the part of the Executive, (A)
fraud, dishonesty, a felony or gross malfeasance of duty, and (B) that directly
results in material injury to the Company; or

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                  (ii)     conduct by the Executive in his office with the
Company that is grossly inappropriate and demonstrably likely to lead to
material injury to the Company, as determined by the Board acting reasonably
and in good faith; provided, however, that in the case of (ii) above, such
conduct shall not constitute Cause unless the Board shall have delivered to the
Executive notice setting forth with specificity (A) the conduct deemed to
qualify as Cause, (B) reasonable action that would remedy such objection, and
(c) a reasonable time (not less than thirty (30) days) within which the
Executive may take such remedial action, and the Executive shall not have taken
such specified remedial action within such specified reasonable time.

         3.       "CHANGE IN CONTROL" - Either

         (i)      the acquisition, directly or indirectly, by any "person" (as
such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of
1937, as amended), other than those persons in control of the Company as of the
effective date of this Agreement, within any twelve (12) month period of
securities of the Company representing an aggregate of twenty percent (20%) or
more of the combined voting power of the Company's then outstanding securities;
or

         (ii)     during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board, cease for any reason to
constitute at least a majority thereof, unless the election of each new
director was approved in advance by a vote of at least a majority of the
directors then still in office who were directors at the beginning of the
period; or

         (iii)    consummation of (a) a merger, consolidation or other business
combination of the Company with any other "person" (as such term is used in
Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) or
affiliate thereof, other than a merger, consolidation or business combination
which would result in the outstanding common stock of the Company immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into common stock of the surviving entity or a parent or
affiliate thereof) at least sixty (60)% of the outstanding common stock of the
Company or such surviving entity or parent or affiliate thereof outstanding
immediately after such merger, consolidation or business combination, or (b) a
plan of complete liquidation of the Company or an agreement for the sale of
disposition by the Company of all or substantially all of the Company's assets;
or

         (iv)     the occurrence of any other event or circumstance which is
not covered by (i) through (iii) above which the Board determines affects
control of the Company and, in order to implement the purposes of this
Agreement as set forth above, adopts a resolution that such event or
circumstance constitutes a Change in Control of the purposes of this Agreement.

         4.       "CODE" - the Internal Revenue Code of 1986, as amended.

         5.       "COMPENSATION COMMITTEE" - the Executive Compensation
Committee of the Board of Directors of the Company, or any successor committee.

         6.       "DISABILITY" - total and permanent disability under the
Corporation's long-term disability plan.

         7.       "EXCESS SEVERANCE PAYMENT" - the term "Excess Severance
Payment" shall have the same meaning as the term "excess parachute payment"
defined in Section 280G(b)(1) of the Code.

         8.       "INVOLUNTARY TERMINATION" - termination of the Executive's
employment by the Executive following a Change in Control which, in the
reasonable judgment of the Executive, is due to (i) a change of

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the Executive's responsibilities, position (including status, office, title,
reporting relationships or working conditions), authority or duties (including
changes resulting from the assignment to the Executive of any duties
inconsistent with his positions, duties or responsibilities as in effect
immediately prior to the Change in Control); or (ii) a reduction in the
Executive's compensation or benefits as in effect immediately prior to the
Change in Control, or (iii) a forced relocation of the Executive's primary
place of employment to a place more than fifty (50) miles from the Executive's
primary place of employment immediately prior to the Change in Control.
Involuntary Termination does not include Retirement, death or Disability of the
Executive.

         9.       "PRESENT VALUE" - The term "Present Value" shall have the
same meaning as provided in Section 280G(d)(4) of the Code.

         10.      "SEVERANCE PAYMENT" - The term "Severance Payment" shall have
the same meaning as the term "parachute payment" defined in Section 280G(b)(2)
of the Code.

         11.      "REASONABLE COMPENSATION" - The term "Reasonable
Compensation" shall have the same meaning as provided in Section 280G(b)(4) of
the Code.

         12.      "RETIREMENT" - termination of employment at or after the
Executive's 65th birthday.

         IV.      BENEFITS UPON TERMINATION FOLLOWING A CHANGE IN CONTROL

         1.       TERMINATION - The Executive shall be entitled to, and the
Company shall pay or provide to the Executive, the benefits described in
Section 2 below if (a) a Change in Control occurs during the term of this
Agreement, and (b) the Executive's employment is terminated within thirty (30)
months following the Change in Control either (i) by the Company (other than
for Cause or by reason of the Executive's Retirement, death or Disability) or
(ii) by the Executive pursuant to Involuntary Termination; provided, however,
that if:

         (a)      during the term of this Agreement there is a public
announcement of a proposal for a transaction that, if consummated, would
constitute a Change in Control or the Board receives and decides to explore an
expression of interest with respect to a transaction which, if consummated,
would lead to a Change in Control (either transaction being referred to herein
as the "Proposed Transaction"); and

         (b)      the Executive's employment is thereafter terminated by the
Company other than for Cause or by reason of the Executive's Retirement, death
or Disability; and

         (c)      the Proposed Transaction is consummated within one (1) year
after the date of termination of the Executive's employment.

then, for the purposes of this Agreement, a Change in Control shall be deemed
to have occurred during the term of this Agreement and the termination of the
Executive's employment shall be deemed to have occurred within thirty (30)
months following a Change in Control.

         An executive shall also be entitled to receive the benefits described
in Section 2 below if he terminates employment for any reason during a 30-day
period beginning twelve months after the occurrence of a Change in Control.

         2.       BENEFITS TO BE PROVIDED - If the Executive becomes eligible
for benefits under Section 1 above, the Company shall pay or provide to the
Executive the benefits set forth in this Section 2.

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         (a)      SALARY - The Executive will continue to receive his current
salary (subject to withholding of all applicable taxes and any amounts referred
to in Section 2(c) below) for a period of thirty (30) months from his date of
termination in the same manner as it was being paid as of the date of
termination; provided, however, that the salary payments provided for hereunder
shall be paid in a single lump sum payment, to be paid not later than thirty
(30) days after his termination of employment; provided further, that the
amount of such lump sum payment shall be determined by taking the salary
payments to be made and discounting them to their Present Value. For purposes
hereof, the Executive's "current salary" shall be the highest rate in effect
during the six-month period prior to the Executive's termination.

         (b)      BONUSES - The Executive shall receive payments from the
Company for the thirty (30) months following the month in which this employment
is terminated in an amount for each such month equal to one-twelfth of the
average of the bonuses earned by him for the two calendar years immediately
preceding the year in which such termination occurs. Any bonus amounts that the
Executive had previously earned from the Company but which may not yet have
been paid as of the date of termination shall not be affected by this
provision, other than to serve as a measurement for this portion of the
severance benefit. The bonus amounts determined herein shall be paid in a
single lump sum payment, to be paid not later than 30 days after termination of
employment; provided, further, that the amount of such lump sum payment shall
be determined by taking the bonus payments (as of the payment date) to be made
and discounting them to their Present Value.

         (c)      HEALTH AND LIFE INSURANCE COVERAGE - The health and life
insurance benefits coverage provided to the Executive at his date of
termination shall be continued at the same level and in the same manner as if
his employment had not terminated (subject to the customary changes in such
coverages if the Executive retires or reaches age 65 or similar events),
beginning on the date of such termination and ending on the date thirty (30)
months from the date of such termination. Any additional coverages the
Executive had at termination, including dependent coverage, will also be
continued for such period at the same level and on the same terms as provided
to the Executive immediately prior to his termination, to the extent permitted
by the applicable policies or contract. Any costs Executive was paying for such
coverages at the time of termination shall be paid by the Executive by separate
check payable to the Company each month in advance. If the terms of any benefit
plan referred to in this Section do not permit continued participation by the
Executive, then the Company will arrange for other coverage at its expense
providing substantially similar benefits as it can find for other officers in
similar positions.

         (d)      EMPLOYEE RETIREMENT PLANS - To the extent permitted by the
applicable plan, the Executive will be fully vested in and will be entitled to
continue to participate, consistent with past practices, in all employee
retirement plans maintained by the Company in effect as of his date of
termination. The Executive's participation in such retirement plans shall
continue for a period of thirty (30) months from the date of termination of his
employment (at which point he will be considered to have terminated employment
within the meaning of the plans) and the compensation payable to the executive
under (a) and (b) above shall be treated (unless otherwise excluded) as
compensation under the plan. If full vesting and continued participation in any
plan is not permitted, the Company shall pay to the executive and, if
applicable, his beneficiary, a supplemental benefit equal to the Present Value
on the date of termination of employment of the excess of (i) the benefit the
Executive would have been paid under such plan if he had been fully vested and
had continued to be covered for the 30-month period as if the Executive had
earned compensation described under (a) and (b) above and had made
contributions sufficient to earn the maximum matching contribution, if any,
under such plan (less any amounts he would have been required to contribute),
over (ii) the benefit actually payable to or on behalf of the Executive under
such plan. For purposes of determining the benefit under (i) in the preceding
sentence, contributions deemed to be made under a defined contribution plan
will be deemed to be invested in the same manner as the Executive's account
under such plan at the time of termination of employment. The Company shall pay
such supplemental benefits (if any) in a lump sum.

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         (e)      CAREER COUNSELING - The Company will provide career
counseling and out placement services on an individual basis to the Executive
as the Company deems appropriate and for a reasonable period following the
Executive's termination of employment; provided, however, that the Company's
obligation to provide such services shall terminate at such time, if any, as
the cost of such services exceeds $5,000.

         (f)      EFFECT OF LUMP SUM PAYMENT - The lump sum payment under (a)
or (b) above shall not alter the amounts the Executive is entitled to receive
under the benefit plans described in (c) and (d) above. Benefits under such
plans shall be determined as if the Executive had remained employed and
received such payments over a period of thirty (30) months.

         (g)      EFFECT OF DEATH OR RETIREMENT - The benefits payable or to be
provided under this Agreement shall continue in the event of the Executive's
death and shall be payable to his estate or named beneficiary. The benefits
payable or to be provided under this Agreement shall cease in the event of the
Executive's election to commence Retirement benefits under the Company's
retirement plan.

         (h)      TOTAL BENEFIT - Notwithstanding anything in this Agreement to
the contrary, the Total Benefit payable or to be provided to the Executive by
the Company or an affiliate, whether pursuant to this Agreement or otherwise,
shall be calculated so as to provide the greatest total benefit after taxes.
The Company shall calculate, or authorize an independent third party to
calculate, the Executive's Total Benefit under three different methods and make
payment to the Executive according to the method that provides the Executive
with the greatest total benefit after taxes.

         (i)      TOTAL BENEFIT CALCULATION - The three methods of benefit
calculation shall include the Limited Benefit Method, the Unlimited Benefit
Method and the Grossed Up Unlimited Benefit Method, as each is defined herein.
Under the Limited Benefit Method, the Executive's Total Benefit shall be
determined as defined in this Section IV and then modified or reduced to the
extent necessary so that the benefits payable or to be provided to the
Executive under this Agreement that are treated as Severance Payments, as well
as any payments or benefits provided outside of this Agreement that are so
treated, shall not cause the Company to have paid an Excess Severance Payment.
In computing such amount, the parties shall take into account all provisions of
Internal Revenue Code Section 280G, including making appropriate adjustments to
such calculation for amounts established to be Reasonable Compensation. In the
event that the amount of any Severance Payments that would be payable to or for
the benefit of the Executive under this Agreement must be modified or reduced,
the Executive shall direct which Severance Payments are to be modified or
reduced; provided, however, that no increase in the amount of any payment or
change in the timing of the payment shall be made without the consent of the
Company. The Limited Benefit Method shall be interpreted so as to avoid the
imposition of excise taxes on the Executive under Section 4999 of the Code or
the disallowance of a deduction to the Company pursuant to Section 280G(a) of
the Code with respect to amounts payable under this Agreement or otherwise. The
Executive shall be responsible for any and all federal and state income taxes
associated with the Limited Benefit Method. Under the Unlimited Benefit Method,
the Total Benefit payable to the Executive shall be determined as defined in
this Section IV and shall not be reduced or modified in any manner. The
Executive shall be responsible for any and all income, excise and/or other
taxes associated with the Unlimited Benefit Method. Under the Grossed Up
Unlimited Benefit Method, the Executive's Total Benefit shall be determined as
defined in this Section IV with no reduction, and an additional payment shall
be made to the Executive by the Company with such additional payment equal to
the amount of any excise tax on the Total Benefit plus the estimated federal
and state income taxes and any excise tax associated with the additional
payment.

         (j)      NO OBLIGATION TO FUND - The agreement of the Company (or its
successor) to make payments to the Executive hereunder shall represent solely
the unsecured obligation of the Company (and

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its successor), except to the extent the Company (or its successors) in its
sole discretion elects in whole or in part to fund its obligations under this
Agreement pursuant to a trust arrangement or otherwise.

         V.       MISCELLANEOUS

         1.       CONTRACT NON-ASSIGNABLE - The parties acknowledge that this
Agreement has been entered into due to, among other things, the special skills
of the Executive, and agree that this Agreement may not be assigned or
transferred by the Executive, in whole or in part, without the prior written
consent of the Company. Any business entity succeeding to all or substantially
all of the business of the Company by purchase, merger, consolidation, sale of
assets or otherwise, shall be bound by this Agreement.

         2.       OTHER AGENTS - Nothing in this Agreement is to be interpreted
as limiting the Company from employing other personnel on such terms and
conditions as may be satisfactory to the Company.

         3.       NOTICES - All notices, requests, demands and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given if delivered or seven days after mailing if
mailed, first class, certified mail, postage prepaid:

To the Company:                  Community Bancshares, Inc.
                                 P. O. Box 1000
                                 Blountsville, Alabama 35031

To the Executive:
                                 ---------------------------

                                 ---------------------------

                                 ---------------------------

Any party may change the address to which notices, requests, demands and other
communications shall be delivered or mailed by giving notice thereof to the
other party in the same manner provided herein.

         4.       PROVISIONS SEVERABLE - If any provision or covenant, or any
part thereof, of this Agreement should be held by any court to be invalid,
illegal or unenforceable, either in whole or in part, such invalidity,
illegality or unenforceability shall not affect the validity, legality or
enforceability of the remaining provisions or covenants, or any part thereof,
of this Agreement, all of which shall remain in full force and effect.

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

         6.       AMENDMENTS AND MODIFICATIONS - This Agreement may be amended
or modified only by a writing signed by both parties hereto, which makes
specific reference to this Agreement.

         7.       GOVERNING LAW - The validity and effect of this Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of Alabama.

         8.       ARBITRATION OF DISPUTES; EXPENSES - The parties agree that
all disputes that may arise between them relating to the interpretation or
performance of this Agreement, including matters relating to any funding
arrangements for the benefits provided under this Agreement, shall be
determined by binding arbitration through an arbitrator approved by the
American Arbitration Association or other arbitrator

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mutually acceptable to the parties. The award of the arbitrator shall be final
and binding upon the parties and judgment upon the award rendered may be
entered in any court having jurisdiction. In the event the Executive incurs
legal fees and other expenses in seeking to obtain or to enforce any such
rights or benefits through settlement, arbitration or otherwise, the Company
shall promptly pay the Executive's reasonable legal fees and expenses incurred
in enforcing this Agreement. Except to the extent provided in the preceding
sentence, each party shall pay its own legal fees and other expenses associated
with the arbitration, provided that the fee for the arbitrator shall be shared
equally.

         9.       INDEMNITY - The Executive shall be entitled to the benefits
of the indemnity currently applicable to the Executive, if any, as provided by
the Company's articles of incorporation or bylaws. Any changes to the articles
of incorporation or bylaws reducing the indemnity granted to officers shall not
affect the rights granted hereunder. The Company may not reduce these indemnity
benefits confirmed to the Executive hereunder without the written consent of
the Executive.

         10.      TERMINATION OF PRIOR AGREEMENTS - The Executive hereby agrees
to a mutual termination, effective as of the effective date of this Agreement,
of any prior existing change in control agreements (by whatever name),
providing benefits to the Executive upon a termination of employment following
a Change in Control of the Company, to which he and the Company are parties,
and as to such prior agreements, if any, the Executive releases all claims,
rights and entitlements.

         11.      REGULATORY APPROVALS - The Agreement, and the rights and
obligations of the parties hereto, shall be subject to approval of the same by
any and all regulatory authorities having jurisdiction over the Company, to the
extent such approval is required by law, regulation, or order.

         12.      REGULATOR INTERVENTION - Notwithstanding any term of this
Agreement to the contrary, this Agreement is subject to the following terms and
conditions:

         (a)      The Company's obligations to provide compensation or other
benefits to Executive under this Agreement may be suspended if the Company has
been served with a notice of charges by the appropriate federal banking agency
under provisions of Section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818) directing the Company to cease making payments required hereunder;
provided, however, that

         (I)      The Company shall seek in good faith with its best efforts to
oppose such notice of charges as to which there are reasonable defenses;

         (ii)     In the event the notice of charges is dismissed or otherwise
resolved in a manner that will permit the Company to resume its obligations to
provide compensation or other benefits hereunder, the Company shall immediately
resume such payments and shall also pay Executive the compensation withheld
while the contract obligations were suspended, except to the extent precluded
by such notice; and

         (iii)    During the period of suspension, the vested rights of the
contracting parties shall not be affected, except to the extent precluded by
such notice.

         (b)      The Company's obligations to provide compensation or other
benefits to Executive under this Agreement shall be terminated to the extent a
final order has been entered by the appropriate federal banking agency under
provisions of Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818)
directing the Company not to make the payments required hereunder; provided,
however, that the vested rights of the contracting parties shall not be
affected by such order, except to the extent precluded by such order.

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         (c)      The Company's obligations to provide compensation or other
benefits to Executive under this Agreement shall be terminated or limited to
the extent required by the provisions of any final regulation or order of the
Federal Deposit Insurance Company promulgated under Section 18(k) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(k)) limiting or prohibiting any
"golden parachute payment" as defined therein, but only to the extent that the
compensation or payments to be provided under this Agreement are so prohibited
or limited.

         (d)      Notwithstanding the foregoing, the Company shall not be
required to make any payments under this Agreement prohibited by law.

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         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed on its behalf by its duly authorized officers and the Executive has
hereunto set his hand, as of the date and year first above written.

                                      COMMUNITY BANCSHARES, INC.

                                      By:
                                         --------------------------------------
                                         Chairman, President and
                                         Chief Executive Officer

Attest:

------------------------------
Secretary

(CORPORATE SEAL)

                                      EXECUTIVE

                                                                         (SEAL)
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                                 EXHIBIT 10.33

                                    FORM OF

                               1999 NONQUALIFIED

                             STOCK OPTION AGREEMENT

                           FOR NON-EMPLOYEE DIRECTORS

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                           COMMUNITY BANCSHARES, INC.
                    1999 NONQUALIFIED STOCK OPTION AGREEMENT
                           FOR NON-EMPLOYEE DIRECTORS

         THIS AGREEMENT is made and entered into as of December 4, 1999,
between grantor Community Bancshares, Inc., a Delaware corporation (the
"Corporation") and grantee, ________________ (the "Director").

                                  WITNESSETH:

         The Board of Directors of the Corporation (the "Board") on December 4,
1999 approved the grant to Director of awards under the Corporation's long-term
incentive program and established the terms and conditions of such awards, as
contained in this Agreement.

         NOW, THEREFORE, the parties hereto agree as follows:

         1.       GRANT OF OPTION. Director shall have the right and option to
purchase on the terms and conditions set forth herein, all or any part of an
aggregate of ______ shares ("Option Shares") of the $.10 par value common stock
of the Corporation (the "Common Stock") at the purchase price of $20.00 per
share (the "Option Price"). The Option Price is 100% of the fair market value
of the Common Stock on December 4, 1999, the date of the grant of the option
covered by this Agreement.

         2.       TERMS AND CONDITIONS. It is understood and agreed that the
option evidenced hereby is subject to the following terms and conditions:

         (a)      Expiration Date. The option shall expire five (5) years after
the date of grant (the "Expiration Date"). After the Expiration Date, the
parties shall have no further rights or obligations hereunder.

         (b)      Exercise of Option. The option covered by this Agreement may
be exercised by Director from time to time, in whole or in part, at any time
prior to the Expiration Date subject to the restrictions in Section 2(d), (e)
and (f) and Section 8.

         (c)      Method of Exercise and Payment of Purchase Price Upon
Exercise. The Director may elect to exercise the option by giving written
notice of such election to the Corporation, in such form as the Board may
require, accompanied by payment in cash or in such other manner as may be
approved by the Board, of the full purchase price of the Option Shares for
which the election is made. As determined by the Board, in its sole discretion,
payment in full or in part may be made in the form of unrestricted Common Stock
already owned by the Director (provided that the shares of Common Stock which
are tendered must have been held by the Director for at least six (6) months
prior to their tender to satisfy the exercise price) or in the form of a
withholding of sufficient shares of Common Stock otherwise issuable upon the
exercise of the option to constitute payment of the purchase price, based, in
each case, on the fair market value of the Common Stock on the date the option
is exercised. Further, upon written request and authorization of the Director
and to the extent permitted by applicable law, the Board may allow arrangements
whereby an option may be exercised and the exercise price (together with any
tax withholding obligations of the Director) paid pursuant to arrangements with
brokerage forms permitted under Regulation T of the Board of Governors of the
Federal Reserve System (or successor regulations or statutes).

         (d)      Exercise Upon Death. In the event that Director ceases to
serve as a director of Corporation or its subsidiaries by reason of death, the
option may thereafter be exercised as to all shares subject to the option by
the legal representative of the estate or by the person or persons entitled to
the option under the

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Director's will or the laws of descent and distribution, as appropriate, until
the earlier of (i) the expiration of the stated term of the option or (ii) the
first anniversary of the date of the Director's death.

         (e)      Exercise Upon Termination of Directorship by Reason of
Disability. In the event that Director ceases to be a director of the
Corporation or its subsidiaries by reason of Disability (as defined below), the
option may thereafter be exercised as to all shares subject to the option until
the earlier of (i) the expiration of the stated term of the option or (ii) the
first anniversary of the date that Director is determined by the Corporation to
be disabled.

         (f)      Exercise Upon Termination of Directorship by Reason Other
than Death or Disability. The option or any unexercised portions thereof shall
expire upon the earlier of (i) the expiration of the stated term of the option
or (ii) the 90th day after the Director ceases to be a director of the
Corporation and its subsidiaries for any reason other than death or Disability.
Provided, however, if the Director ceases to be a director for Cause (as
defined below), the option shall expire on the date the Director ceases to be a
director.

         3.       TAX LIABILITY. Upon exercise of the option and request by the
Director of the Corporation, the Corporation shall pay to Director the
applicable federal and state income tax liability resulting from any gain to be
recognized by the Director from the exercise. The Corporation shall have the
right to base payment upon the highest marginal tax rates annualizing the
Director's compensation from the Corporation and adding the gain recognized
from the exercise assuming a standard deduction and the most favorable filing
status for the minimization of tax liability to the Director. If, upon
subsequent filing of the Director's tax returns for the tax year encompassing
the date of the exercise of the option, the amount paid to Director by the
Corporation varies by more that $500.00, the Director shall have the right to
make written demand upon the Corporation for additional reimbursement within 90
days of the date of filing of the returns. Such written demand shall be
accompanied by a certified copy of the filed tax returns and all supporting
forms and schedules thereto for review by the Corporation. The Corporation
shall pay any additional amounts due within 30 days of receipt of proper demand
from the Director. Provided, however, that nothing in this Section 3 shall
apply to the Director if at the time the option is exercised the Director has
ceased to be a director of the Corporation or its subsidiaries unless the
termination of his status as a director is on account of the Director's
Retirement (as defined below), death or Disability or occurs following a Change
in Control of the Corporation.

         4.       NO RIGHTS AS SHAREHOLDER OR TO EMPLOYMENT OR DIRECTORSHIP. No
option granted hereunder shall entitle the holder thereof to any rights as a
shareholder in the Corporation with respect to any shares to which the option
relates until such shares have been paid for in full and issued. Furthermore,
the option shall not confer upon the Director any rights of employment with the
Corporation of any of its subsidiaries or any rights to continue as a director
of the Corporation or any of its subsidiaries or affect the right of the
Corporation or its subsidiaries to terminate the directorship of the Director
at any time, with or without cause.

         5.       RESTRICTIONS ON TRANSFER OF SHARES. Director hereby agrees
for himself or herself and his or her legal representative, heirs and
distributees, that if a registration statement covering the shares issuable
upon exercise of any option hereunder is not effective under the Securities Act
of 1933, as amended (the "Act"), at the time of such exercise, or if some other
exemption from the provisions of the Act is not available, then all shares of
Common Stock then received or purchased upon such exercise shall be acquired
for investment, and that the notice of exercise delivered to the Corporation
shall be accompanied by a representation in writing acceptable in scope and
form to counsel to the Corporation and signed by Director or Director's legal
representative, heirs or distributees, as the case may be, to the effect that
the shares are being acquired in good faith for investment and not with a view
to distribution thereof. Any shares so acquired may be deemed restricted
securities under Rule 144 as promulgated by the Securities and

<PAGE>   4

Exchange Commission under the Act, and as the same may be amended or replaced
and subject to restrictions upon sale or other disposition.

         6.       REGISTRATION OF SHARES. If at any time the Board shall
determine that the listing, registration or qualification of any shares subject
to the option upon any securities exchange, or under any state or federal law,
or the consent or approval of any governmental or regulatory body is necessary
or desirable as a condition of or in connection with the issuance or purchase
of shares hereunder, the option may not be exercised in whole or in part unless
such listing, registration, qualification, consent, or approval has been
effected or obtained free of any conditions not acceptable to the Board.

         7.       TRANSFER OF RIGHTS. This option is not transferable except by
will or by the laws of descent and distribution and shall be exercisable during
Director's lifetime only by Director. After the death of Director, this option
may be exercised only by Director's estate or by the person or persons entitled
to the option under Director's will or the laws of descent and distribution, as
appropriate. In the event the option is transferred to the Director's estate,
the option may be exercised by the estate only to the extent that the Director
would have been entitled had the option not been transferred.

         8.       COMPETITION WITH THE CORPORATION - COVENANT NOT TO COMPETE.
In consideration of the grant by the Corporation of the option, Director agrees
with the Corporation as follows:

         (a)      While Director is a director of the Corporation or one or
more of its subsidiaries (hereinafter collectively referred to as the
"Company"), Director will devote his or her entire time, energy and skills to
the service of the Company. Except as provided in Section 2 hereof, no option
granted under this Agreement shall be exercised after the Director ceases to be
a director of the Company.

         (b)      Director will not, while he is a director of the Company, or
for a period of two years after he ceases to be a director of the Company for
any reason, directly or indirectly, either individually or as a stockholder
(except for passive investments of less than one percent of the outstanding
shares), director, officer, consultant, independent contractor, employee,
agent, member or otherwise of or through any corporation, partnership,
association, joint venture, firm, individual or otherwise (hereinafter "Firm"),
or in any other capacity:

                  (i) Carry on or engage in a business like or similar to any
                  business engaged in by the Company either (A) in the county
                  in which the Director resides at the time he ceases to be a
                  director of the Company or (B) within a 25-mile radius of the
                  location where the Director resides at the time he ceases to
                  be a director of the Company; or

                  (ii) Solicit or do business (like or similar to any business
                  engaged in by the Company) with any customer of the Company
                  either (A) in the county in which the Director resides at the
                  time he ceases to be a director of the Company or (B) within
                  a 25-mile radius of the location where the Director resides
                  at the time he ceases to be a director of the Company; or

                  (iii) Solicit, directly or indirectly, any employee of the
                  Company to leave their employment with the Company for any
                  reason. For purposes of this Agreement, the Company and
                  Director agree that Director shall be deemed to have
                  solicited any employee in violation of this Agreement if such
                  employee is hired by Director or his or her Firm within six
                  (6) months of Director's last employment date with the
                  Company.

<PAGE>   5

         The above two-year period shall be extended by any period of time
during which Director is in default of the covenants contained in this
Agreement.

         (c)      During the term Director is a director of the Company and
thereafter, Director shall not divulge, or furnish or make accessible to any
third party, company, corporation or other organization (including, but not
limited to, customers, competitors or governmental agencies), without the
Corporation's prior written consent, any trade secrets, customer lists,
information regarding customers, or other confidential information concerning
the Company or its business, including without limitation, confidential methods
of operation and organization, trade secrets, confidential matters related to
pricing, markups, commissions and customer lists.

         (d)      In the event of a breach or threatened breach by Director of
all or any part of the provisions of subdivisions (b) or (c) of this Section 8,
the Company shall be entitled to an injunction restraining Director from such
breach without limiting any other rights or remedies available to the Company
for such breach or threatened breach.

         (e)      Director specifically recognizes and affirms that each of the
covenants contained in subdivisions (b) and (c) of this Section 8 is a material
and important term of this Agreement which has induced the Company to provide
for the award of the option granted hereunder, and Director further agrees that
should all or any part or application of subdivisions (b) or (c) of Section 8
of this Agreement be held or found invalid or unenforceable for any reason
whatsoever by a court of competent jurisdiction in an action between Director
and the Company, the Corporation shall be entitled to receive (but not
obligated to acquire) from Director all Common Stock held by Director which was
obtained by Director under this Agreement (including all shares obtained by
virtue of any stock dividend or distribution, recapitalization, merger,
consolidation, split-up, combination, exchange of shares, or other transaction,
hereinafter "stock dividends") by returning to Director for each share received
the Option Price paid by Director (as adjusted for stock dividends). If
Director has sold, transferred, or otherwise disposed of Common Stock obtained
under this Agreement (including all shares obtained by virtue of any stock
dividend), the Corporation shall be entitled to receive from Director the
difference between the Option Price paid by Director and the fair market value
of the Common Stock (including all shares obtained by virtue of any stock
dividends) on the date of sale transfer or other disposition, and all payments
made by the Corporation for payment of federal and state income tax liability
under the provisions of paragraph "3" herein.

          (f)      Notwithstanding any provision to the contrary herein
contained, Section 8(b) shall not apply:

                  (i) Upon the termination of the Director's directorship by
                  the Corporation other than for Cause within one (1) year
                  following a Change in Control of the Corporation; and

                  (ii) Upon the voluntary termination of the directorship by
                  the Director for any reason within the thirty (30) day period
                  immediately after the one (1) year period following a Change
                  in Control of the Corporation.

         9.       DEFINITIONS. For the purposes of this Agreement, the
following terms shall have the definitions set forth below:

         (a)      "Cause" means (i) any act (A) that constitutes, on the part
of the Director, fraud, dishonesty, a felony or gross malfeasance of duty and
(B) that directly results in a material injury to the Corporation; or (ii)
conduct by the Director in his capacity as a director that is grossly
inappropriate and demonstrably likely to lead to material injury to the
Corporation, as determined by the Board acting reasonably and in good faith;
provided, however, that in the case of (ii) above, such conduct shall not
constitute Cause unless

<PAGE>   6

the Board shall have delivered to the Director notice setting forth with
specificity (A) the conduct deemed to qualify as Cause, (B) reasonable action
that would remedy such objection, and (C) a reasonable time (not less than 30
days) within which the Director may take such remedial action, and the Director
shall not have taken such specified remedial action within such specified
reasonable time.

         (b)      "Change in Control of the Corporation" means (i) the
acquisition, directly or indirectly, by any "person" (within the meaning of
Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") within any twelve-month period of securities of the Corporation
representing an aggregate of twenty percent (20%) or more of the combined
voting power of the Corporation's then outstanding securities; or (ii) during
any period of two consecutive years, individuals who at the beginning of such
period constitute the Board of Directors of the Corporation, cease for any
reason to constitute at least a majority thereof, unless the election of each
new director was approved in advance by a vote of at least a majority of the
directors then still in office who were directors at the beginning of the
period; or (iii) consummation of a merger or consolidation or other business
combination of the Corporation with any other person, other than a merger,
consolidation or business combination which would result in the outstanding
Common Stock immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into common stock of the surviving
entity or a parent or affiliate thereof) at least sixty percent (60%) of the
outstanding common stock of the Corporation or such surviving entity or parent
of affiliate thereof outstanding immediately after such merger, consolidation
or business combination; or (iv) a plan of complete liquidation of the
Corporation or an agreement for the sale or disposition by the Corporation of
all or substantially all of the Corporation's assets; or (v) the occurrence of
any other event or circumstance which is not covered by (i) through (iv) above
which the Board determines affects control of the Corporation and, in order to
implement the purposes of this agreement, adopts a resolution that such event
or circumstance constitutes a Change in Control for purposes of this agreement.

         (c)      "Disability" means total and permanent disability as
determined under the Corporation's long-term disability plan (whether or not
the Director is covered under the terms of such plan).

         (d)      "Retirement" means termination of the Director's status as a
director pursuant to the mandatory retirement provisions of the Directors
Policy or under such circumstances as the Corporation's Board of Directors
shall determine.

         10.      DISPOSITION OF SHARES. Director agrees to notify the
Corporation promptly of the disposition of any shares of Common Stock purchased
pursuant to this option which are disposed of within one year after transfer of
such shares to Director, or within two years of the date of the grant of such
option. For purposes of such notification, "disposition" shall have the meaning
assigned to it in Section 425(c) of the Code.

         11.      ADJUSTMENT OF AWARDS. In the event of any change in corporate
capitalization, such as stock split, or a corporate transaction, such as a
merger, consolidation, separation or other distribution of stock or property of
the Corporation, any reorganization (whether or not such reorganization comes
within the definition of such term in Code Section 368) or any partial or
complete liquidation of the Corporation, such adjustment shall be made in the
number and class of and/or price of the Option Shares as may be determined to
be appropriate and equitable by the Corporation's Board of Directors, in its
sole discretion, to prevent dilution or enlargement of the benefits or
potential benefits intended to be available under this agreement; provided that
the number of Option Shares shall always be a whole number.

         12.      INTERPRETATION. Any question of interpretation or application
of this Agreement shall be resolved by the Corporation's Board of Directors and
its determination shall be final and binding on the Corporation and Director.

<PAGE>   7

         13.      NOTICES. All notices hereunder shall be in writing and, if to
the Corporation, shall be delivered personally to the Chairman or mailed to the
Corporation's principal office at P.O. Box 1000, Blountsville, Alabama 35031,
addressed to the attention of the Chairman; and if to Director, shall be
delivered personally or mailed to him at the address noted below. Such
addresses may be changed at any time by notice from one party to the other.

         14.      BINDING EFFECT. This Agreement shall bind and inure to the
benefit of the parties hereto, the successors and assigns of the Corporation
and the person to whom the rights of Director are transferred by will or the
laws of descent and distribution.

         15.      AMENDMENT. This Agreement may be amended from time to time by
the Board, but no such amendment shall impair the rights of the Director
without the Director's consent.

<PAGE>   8

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                COMMUNITY BANCSHARES, INC.

                                By:
                                   --------------------------------------------
                                Kennon R. Patterson, Sr.
                                Chairman, President and Chief Executive Officer

WITNESS:                        DIRECTOR:

------------------------------  -----------------------------------------------
                                Signature

                                -----------------------------------------------
                                Address

                                -----------------------------------------------
                                City                      State        Zip Code

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