Document:

Warrant Agreement

 EXHIBIT 4.3 
  
 THIS WARRANT, AND THE SECURITIES FOR WHICH THIS WARRANT MAY BE EXERCISED, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES, OR “BLUE SKY,” LAWS OF ANY STATE OR OTHER DOMESTIC OR FOREIGN JURISDICTION. THIS WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION AND RESALE AND NEITHER THIS WARRANT NOR ANY
INTEREST HEREIN, OR IN THE SECURITIES FOR WHICH THIS WARRANT MAY BE EXERCISED, MAY BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A REGISTRATION STATEMENT IN EFFECT UNDER THE SECURITIES ACT
AND OTHER APPLICABLE LAWS OR A WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO COMMUNITY BANCSHARES, INC. THAT SUCH REGISTRATION IS NOT REQUIRED AND THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE FOR SUCH TRANSACTIONS UNDER THE
SECURITIES ACT AND OTHER APPLICABLE LAWS. 
  
 WARRANT TO
PURCHASE 
 SHARES OF COMMON STOCK 
 OF 
 COMMUNITY BANCSHARES, INC. 
  
 DATE OF INITIAL ISSUANCE: February 20, 2004 
  
 THIS CERTIFIES THAT, for value received, FIG Partners, L.L.C. (the “Holder”) is entitled to purchase,
subject to the exercise and other provisions of this Warrant, from Community Bancshares, Inc. (the “Company”) at any time prior to February 20, 2008, up to 140,187 shares (as such number of shares may be adjusted in accordance with
Section 2 hereof, the “Warrant Shares”) of the Company’s common stock, par value $0.10 per share (the “Common Stock” or “Shares”), at any time and from time to time, in whole or in part, at an
exercise price per share of $5.89 (subject to adjustment as provided in Section 2 hereof, the “Exercise Price”). The Holder may also, at any time and from time to time, in whole or it part, exercise this Warrant pursuant to a
“Cashless Exercise,” as defined and provided herein. This Warrant shall expire at 5:00 p.m. Eastern Standard Time on February 20, 2008 (the “Expiration Time”). 
  
 SECTION 1. EXERCISE OF WARRANT. 
  
 1.1. Vesting. The Holder’s rights under this Warrant are fully
vested as of the date hereof. 
  
 1.2. Exercisability. This
Warrant is exercisable as of date hereof to the Expiration Time. 
  
 1.3. Procedure for Exercise of Warrant. 
  
 (a)
Cash Exercise. The Holder may exercise this Warrant in whole or in part by delivering to the Company at any time prior to the Expiration Time: (i) a completed and signed Notice of Exercise, as attached hereto as Schedule A (including
the Substitute Form W-9, which forms a part thereof, the “Notice of Exercise”); (ii) cash or a certified or official bank check, payable to the order of the Company in an amount equal to the product of (x) the Exercise Price (as
this may be adjusted pursuant to Section 2 hereof), and (y) the number of Warrant Shares being purchased pursuant to such Notice of Exercise (such product, the “Aggregate Exercise Price”); and (iii) this Warrant to the following
address: 
  
 Community Bancshares, Inc. 
 68149 Main Street 
 P.O. Box 1000 
 Blountsville, Alabama 35031 
 Attention: Mr.
William H. Caughran 

 Upon irrevocable payment in good collected funds of the Aggregate Exercise Price (rounded up to the
nearest cent) for the Warrant Shares being purchased, the Holder shall be deemed to be the holder of record of such Warrant Shares for all purposes, notwithstanding that the stock transfer books of the Company may then be closed or that certificates
representing such Warrant Shares may not then be actually delivered to the Holder. 
  
 The Company shall, as promptly as practicable after completion of the actions specified in this Section 1.3(a), cause to be executed, and deliver to the Holder, a certificate representing the aggregate number of
Warrant Shares specified in the Notice of Exercise. Each stock certificate so delivered shall be in such denomination as may be requested by the Holder and shall be registered in the name of the Holder. If this Warrant shall have been exercised only
in part, then the Company shall, at the time of delivery of said stock certificate or certificates, also deliver to the Holder a new Warrant evidencing the remaining outstanding unexercised balance of Warrant Shares. The Company shall pay all
expenses, stock transfer taxes and other charges payable in connection with the preparation, execution and delivery of such certificates for Shares and new Warrants. 
  
 (b) Cashless Exercise. The Holder hereof may elect to exercise this Warrant, in whole or in part, to receive, without
the payment by such Holder of any additional consideration (the “Cashless Exercise”), Shares equal to the value of this Warrant or any portion hereof by surrendering this Warrant or such portion thereof to the Company, along with
the Notice of Exercise providing such number of Warrant Shares to be surrendered in the Cashless Exercise, to the address provided above in Section 1.3(a). The Company shall then issue to the Holder such number of validly issued, fully paid and
nonassessable shares of Common Stock as is computed using the following formula: 
  
 X = Y (A-B) 
      A 
  

			
	 where   X   =
	  	the number of shares of Common Stock to be issued to the Holder pursuant to this Section 1.3(b).
		
	 Y  =
	  	the number of Warrant Shares to be surrendered according to the Notice of Exercise delivered to the Company pursuant to this Section 1.3(b).
		
	 A  =
	  	the Fair Market Value of one share of Common Stock at the time the Notice of Exercise is made pursuant to this Section 1.3(b).
		
	 B  =
	  	the Exercise Price in effect under this Warrant at the time the Notice of Exercise is made pursuant to this Section 1.3(b).

  
 The term “Fair
Market Value” of a share of Common Stock shall mean the fair market value of a share as determined in good faith by the Board of Directors of the Company, after considering recent third-party valuations of the Company’s Common Stock
and what the Board of Directors determines to be recent, negotiated, arms-length transactions in the Company’s Common Stock, or, if at any time such security is listed on any securities exchange or quoted in an over-the-counter market, the
“Fair Market Value” will be (i) the average of the closing prices of sales of Common Stock on all securities exchanges or automated quotation systems on which the Common Stock may at the time be listed, or, if there have been no sales on
any such exchange or system on any day, the average of the highest bid and lowest asked prices on all such exchanges or systems at the end of such day, or (ii) if on any day such security is not so listed and is instead quoted in the
over-the-counter market, the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation Bureau, Incorporated, or any similar successor organization, in each such case
averaged over a period of the 20 consecutive trading days prior to the day as of which “Fair Market Value” is being determined. 

 Upon irrevocable receipt of the executed Notice of Exercise by the Company, the Holder shall be deemed to
be the holder of record of Shares to be issued pursuant to the Cashless Exercise, notwithstanding that the Company’s stock transfer may be closed or that certificates representing such Shares have been actually delivered to the Holder.

  
 The Company shall, as promptly as practicable after completion
of the actions specified in this Section 1.3(b), cause to be executed, and delivered to the Holder, a certificate representing the aggregate number of Shares calculated pursuant to the Cashless Exercise. Each stock certificate so delivered shall be
in such denomination as may be requested by the Holder and shall be registered in the name of the Holder. If this Warrant shall have been exercised only in part, then the Company shall, at the time of delivery of said stock certificate or
certificates, also deliver to the Holder a new Warrant evidencing the remaining outstanding unexercised balance of Warrant Shares. The Company shall pay all expenses, stock transfer taxes and other charges payable in connection with the preparation,
execution and delivery of such certificates for Shares and new Warrants. 
  
 1.4. Restrictive Legend. Each certificate for Warrant Shares shall contain the following legend: 
  
 “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES, OR “BLUE
SKY,” LAWS OF ANY STATE OR OTHER DOMESTIC OR FOREIGN JURISDICTION. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION AND RESALE AND NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD, OFFERED FOR
SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A REGISTRATION STATEMENT IN EFFECT UNDER THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR A WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO COMMUNITY
BANCSHARES, INC. THAT SUCH REGISTRATION IS NOT REQUIRED AND THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE FOR SUCH TRANSACTIONS UNDER THE SECURITIES ACT AND OTHER APPLICABLE LAWS.” 
  
 1.5. Character of Warrant Shares and Common Stock Issued. The Company
represents and warrants that all Warrant Shares, including any Shares issued pursuant to any Cashless Exercise, shall be duly authorized, validly issued, and, upon payment of the Exercise Price therefor, fully paid and nonassessable. 
  
 SECTION 2. CERTAIN ADJUSTMENTS 
  
 2.1. Stock Dividends, Subdivisions and Combinations. If at any time
the Company shall: 
  
 (i) establish a record
date for the determination of holders of record of its Common Stock for the purpose of entitling them to receive a dividend payable in, or other distribution of, additional shares of Common Stock, 
  
 (ii) subdivide its outstanding shares of Common Stock into a
larger number of shares of Common Stock, or 

 (iii) combine its outstanding shares of Common Stock into a smaller number of shares of
Common Stock, 
  
 then (I) the Warrant Shares, or Shares in the case of a Cashless
Exercise, for which this Warrant is exercisable immediately after the occurrence of any such event shall be adjusted to equal the number of Shares that a record holder of the same number of Shares for which this Warrant is exercisable immediately
prior to the occurrence of such event would be entitled to receive after such event, and (II) the Exercise Price shall be adjusted to equal (x) the Exercise Price multiplied by the Warrant Shares for which this Warrant is exercisable immediately
prior to the adjustment, divided by (y) the Warrant Shares for which this Warrant is exercisable immediately after such adjustment. 
  
 2.2. Adjustment Procedures. The following provisions shall be applicable to adjustments to be made pursuant to Section 2.1 hereof: 
  
 (a) When Adjustments to be Made. The adjustments
required by this Section 2 shall be made whenever and as often as any event requiring an adjustment shall occur. For the purpose of any such adjustment, any event shall be deemed to have occurred at the close of business on the date of its
occurrence. 
  
 (b) Fractional Interests.
In computing adjustments under this Section 2, fractional interests in the Common Stock shall be taken into account to the nearest 1/10th of a Share. In no event, however, shall fractional Shares or scrip representing fractional shares be issued
upon the exercise of this Warrant. In lieu thereof, a cash payment shall be made to the Holder in an amount equal to such fraction multiplied by the Fair Market Value per Share. 
  
 (c) When Adjustment Not Required. If the Company shall establish a record date for the determination
of the holders of record of the Common Stock for the purpose of entitling such holders to receive a dividend payable in Common Stock and shall, thereafter and before the distribution to stockholders thereof, legally abandon its plan to pay or
deliver such dividend, then no adjustment shall be required by reason of the establishment of such record date and any such adjustment previously made in respect thereof shall be rescinded and annulled. 
  
 2.3. Reorganization, Reclassification, Merger, Consolidation or Share
Exchange. If the Company at any time reorganizes or reclassifies its outstanding shares of Common Stock (other than a change in par value, or from no par value to par value, or from par value to no par value, or as a result of a subdivision or
combination) or consolidates with, merges into, or effects a share exchange with, another corporation (where the Company is not the continuing corporation after such merger or consolidation), then the Holder shall thereafter be entitled to receive
upon exercise of this Warrant in whole or in part, the same kind and number of shares of stock and other securities, cash or other property (and upon the same terms and with the same rights) as would have been distributed to the Holder upon such
reorganization, reclassification, consolidation, merger or share exchange had the Holder exercised this Warrant immediately prior to such reorganization, reclassification, consolidation, merger or share exchange (subject to subsequent adjustments
under this Section 2), and the Exercise Price shall be adjusted appropriately to reflect such action and adjustment. 
  
 If any such reorganization, reclassification, consolidation, merger or share exchange results in a cash distribution in excess of the Exercise Price
provided by this Warrant, then the Holder may, at the Holder’s option, exercise this Warrant without making payment of the Exercise Price, and in such case the Company or its successors and assigns shall, upon distribution to such Holder deduct
the aggregate Exercise from the cash payable to such Holder in full payment of the Exercise Price, and pay the balance of the distribution to such Holder. Notwithstanding anything herein to the contrary, the Company will not effect any such
reorganization, reclassification, merger, consolidation or share exchange unless prior to the consummation thereof, the corporation that may be required to deliver any stock, securities or other assets upon the exercise of this Warrant shall agree
by an instrument in writing to deliver such stock, cash, securities or other assets to the Holder. A sale, transfer or lease of all or substantially all of the assets of the Company to another person shall be deemed a reorganization,
reclassification, consolidation, merger or share exchange for the foregoing purposes. 

 SECTION 3. OWNERSHIP AND TRANSFER. 
  
 3.1. Ownership. The Company may deem and treat the person in whose name this Warrant is registered as the sole
Holder and the sole owner hereof (notwithstanding any notations of ownership or writing hereon made by anyone other than the Company) for all purposes and shall not be affected by any notice to the contrary until presentation of this Warrant to the
Company for registration of transfer in accordance with its terms. This Warrant may be transferred, in whole or in part, to any person or business entity, by presentation of the Warrant to the Company with written instructions for such transfer;
provided that such transfer is made pursuant to either a registration statement in effect under the Securities Act and other applicable laws or a written opinion of counsel reasonably satisfactory to the Company that such registration is not
required and that an exemption from such registration is available for such transfer under the Securities Act and other applicable laws. Upon presentation of the Warrant to the Company for transfer and satisfaction of the proviso contained in the
immediately preceding sentence, the Company shall promptly execute and deliver a new Warrant or Warrants in the form hereof in the name of the transferee or transferees and in the denominations specified in such instructions. 
  
 3.2. Replacement. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft or destruction of this Warrant, and of indemnity and/or security reasonably satisfactory to it, or upon surrender of this Warrant if mutilated, the Company will make and deliver a new Warrant of like tenor, in
lieu of this Warrant. This Warrant shall be promptly canceled by the Company upon the surrender hereof in connection with any transfer or replacement. Except as otherwise provided above in the case of the loss, theft or destruction of a Warrant, the
Company shall pay all expenses, taxes and other charges payable in connection with any transfer or replacement of this Warrant. 
  
 SECTION 4. MISCELLANEOUS. 
  
 4.1 Reservation of Shares. The Company covenants that during the entire period this Warrant is outstanding and any part thereof remains
unexercised, it will reserve a sufficient number of its authorized and unissued Shares to provide for the issuance of Common Stock upon the exercise of this Warrant. 
  
 4.2 No Rights as Stockholder; Limitation of Liability. This Warrant shall not entitle the Holder to any of the rights
of a stockholder of the Company prior to exercise of this Warrant and (i) irrevocable payment in good, collected funds of the Exercise Price therefore, or (ii) a Cashless Exercise in accordance with Section 1.3(b) above. 
  
 4.3 Amendment. This Warrant may only be modified or amended and any
provision hereof may only be waived by a writing executed by the Company and the Holder of this Warrant. 
  
 4.4 Successors and Assigns. This Warrant shall be binding upon, and inure to the benefit of, the parties hereto and their respective success and
assigns permitted hereunder, and no other parties shall have any rights hereunder. 
  
 4.5 Governing Law. This Warrant shall be governed by, and construed and enforced in accordance with, the laws of the State of Alabama. 
  
 4.6 Entire Agreement. Except as otherwise expressly provided herein, this Warrant (including the documents and
instruments referred to herein) constitutes the entire agreement between the parties hereto with respect to the transactions contemplated hereunder and supersedes all prior arrangements or understandings with respect thereto, written or oral.

 IN WITNESS WHEREOF, the parties hereto have set their hands as of the date first written above.

  

			
	 	 	 COMMUNITY BANCSHARES, INC.

		
	By:	 	 /s/ Patrick M. Frawley

	 	 	

	 	 	 Name:        Patrick M. Frawley

	 	 	 Title:          Chief Executive Officer, President and Chairman

		
	 	 	 THE HOLDER

		
	 	 	 /s/ Ronald W. Goff for FIG Partners, LLC

	 	 	 FIG Partners, L.L.C.

	 	 	 Name:   Ronald W. Goff

	 	 	 Title:     Principal

 SCHEDULE A 
  
 NOTICE OF EXERCISE 
 OF WARRANT TO PURCHASE COMMON STOCK OF 
 COMMUNITY BANCSHARES, INC. 
  
  

			
	 To:
	  	Community Bancshares, Inc.
		
	 (1)
	  	The undersigned, the registered owner of this Warrant, hereby:
		
	   •
	  	irrevocably elects to exercise the purchase rights represented thereby for, and to purchase as set forth in Section 1.3(a) thereunder,
                 shares of common stock of Community Bancshares, Inc. (the “Common Stock”) and herewith makes payment of
$             therefor;
		
	   •
	  	irrevocably elects to exercise without payment therefor the rights represented thereby to receive              shares of
Common Stock, calculated pursuant to the “Cashless Exercise” formula set forth in Section 1.3(b) thereunder;

  
 (2) The undersigned requests that the
certificates evidencing such shares of Common Stock be issued in the name of and be delivered to: 
  

			
	 Name:
	  	  

	 Address:
	  	  

	 	  	  

	 	  	  

	 Social Security or
     Tax I.D. Number:
	  	  

  
 and if such shares shall not be all of
the shares purchasable hereunder, that a new Warrant of like tenor for the balance of the shares purchasable hereunder be delivered to the undersigned. 
  
 (3) The undersigned confirms that the Common Stock received pursuant to this Notice of Exercise is being acquired for the account of the undersigned for investment only
and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or selling the Common Stock received. 
  
 Dated:
                                 
  

					
	 NAME OF HOLDER
	 	  

		
	 By:
	 	  

	 	 	 Name:
	 	 

 SUBSTITUTE FORM W-9 
  
 Under the penalties of perjury, I certify that: 
  
 (1) the Social Security Number or Taxpayer Identification Number given below is correct; and 
  
 (2) I am not subject to backup withholding either because I have not been
notified that I am subject to backup withholding as a result of a failure to report all interest or dividends, or because the Internal Revenue Service has notified me that I am no longer subject to backup withholding. 
  
 Important Instructions: You must cross out #2 above if you have been
notified by the Internal Revenue Service that you are subject to backup withholding because of under reporting interest or dividends on your tax return and if you have not received a notice from the Internal Revenue Service advising you that backup
withholding due to notified payee under reporting has terminated. For additional instructions, please refer to the attached “Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9.” 
  
 Signature*                                    
     
  
 Date:                                     
    
  

	*	If a corporation, please sign in full corporate name by president or other authorized officer. When signing as officer, attorney, custodian, trustee, administrator, guardian, etc.,
please give your full title as such. In case of joint tenants, each person must sign. 

  
 THIS NOTICE OF EXERCISE SHALL NOT BE GIVEN EFFECT 
 BY THE COMPANY UNLESS THE
HOLDER OF THE UNDERLYING 
 WARRANT HAS PROPERLY COMPLETED AND SIGNED BOTH 
 THE NOTICE OF EXERCISE FORM AND THE SUBSTITUE FORM W-9.Nonqualified Stock Option Agreement, January 27, 2004

 EXHIBIT 10.30 
  
 COMMUNITY BANCSHARES, INC. 
 2004 NONQUALIFIED STOCK OPTION AGREEMENT 
  
 THIS AGREEMENT is made and entered into as of January 27, 2004, between grantor Community Bancshares, Inc., a Delaware corporation (the “Corporation”) and grantee,
                                 (the “Grantee”). 
  
 W I T N E S S E T H: 
  
 The Board of Directors of the Corporation (the “Board”) approved
the grant to Grantee 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. Grantee shall have the right and option to purchase on the terms and conditions set forth herein, all or any part
of an aggregate of 25,000 shares (“Option Shares”) of the $.10 par value common stock of the Corporation (the “Common Stock”) at the purchase price of $5.35 per share (the “Option Price”). The Option Price is 100% of
the fair market value of the Common Stock on January 27, 2004, 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 Grantee 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). 
  
 (c) Method of Exercise and Payment of Purchase Price Upon Exercise. The Grantee 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 of the full purchase price of the Option Shares for which the election is made. Payment of the Option Price shall be made in cash or Common Stock that was acquired at least six (6) months prior to the exercise of the
option, or a combination thereof. To the extent permitted by applicable law, the option may be exercised and the exercise price paid pursuant to arrangements with brokerage firms permitted under Regulation T of the Federal Reserve Board or successor
regulations or statutes. Any federal or state tax withholding requirements can be satisfied by shares of Common Stock acquired pursuant to the option exercise. 
  

(d) Exercise Upon Death. In the event that Grantee ceases to be affiliated with the Corporation or its subsidiaries (either as an employee or
director) 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 Grantee’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 Grantee’s death. 
  
 (e) Exercise Upon Termination of Affiliation by Reason of Disability. In the event that Grantee ceases to be
affiliated with the Corporation or its subsidiaries (either as an employee or director) 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 Grantee is determined by the Corporation to be disabled. 

 (f) Exercise Upon Termination of Affiliation 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 first anniversary of the date of termination of Grantee’s affiliation with the Corporation and its subsidiaries
(both as an employee and as a director) for any reason other than death or Disability. Provided, however, if the Grantee’s affiliation is terminated for Cause (as defined below), the option shall expire on the date of the termination of the
Grantee’s affiliation. 
  
 3. No Rights as Shareholder or to Employment or
to 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 Grantee any rights of employment with the Corporation or any of its subsidiaries or any rights to be a director of the Corporation or any of its subsidiaries or affect the right of the Corporation or
its subsidiaries to terminate the affiliation of the Grantee at any time, with or without cause. 
  
 4. Restrictions on Transfer of Shares and Option. Grantee 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 Grantee or Grantee’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 Exchange Commission under the Act, and as the same may be amended or replaced and subject to restrictions upon sale or other
disposition. This option has not been registered under the Act or any applicable state securities laws in reliance upon registration exemptions in the Act and such laws. Grantee represents that Grantee is acquiring this option for Grantee’s own
account for investment and not with a view to any resale or distribution thereof. Grantee understands and agrees that the option (in addition to the restriction on transfer set forth in Section 6) this option may not be sold, transferred or
otherwise disposed of without registration under the Act and applicable state securities laws except in compliance with an exemption from such registration, the availability of which has been confirmed by an opinion of legal counsel or other
evidence satisfactory to the Corporation. 
  
 5. 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. 
  
 6.
Transfer of Rights. This option is not transferable except by will or by the laws of descent and distribution and shall be exercisable during Grantee’s lifetime only by Grantee. After the death of Grantee, this option may be exercised
only by Grantee’s estate or by the person or persons entitled to the option under Grantee’s will or the laws of descent and distribution, as appropriate. In the event the option is transferred to the Grantee’s estate, the option may
be exercised by the estate only to the extent that the Grantee would have been entitled had the option not been transferred. 
  
 7. 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 Grantee, 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 Grantee in his office with the Corporation 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 the Board
shall have delivered to the Grantee 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 Grantee
may take such remedial action, and the Grantee shall not have taken such specified remedial action within such specified reasonable time. 
  
 (b) “Disability” means total and permanent disability as determined under the Corporation’s long-term disability plan. 
  
 8. Disposition of Shares. Grantee 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 Grantee, 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. 
  
 9. 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. 
  
 10. 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 Grantee. 
  
 11.
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 Grantee, shall be delivered personally or mailed to him at the address for Grantee found in the Corporation’s records. Such addresses may be changed at any time by notice from one party to the other.

  
 12. 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 Grantee are transferred by will or the laws of descent and distribution. 
  
 13. Amendment. This Agreement may be amended from time to time by the Board, but no such amendment shall impair the rights of the
Grantee without the Grantee’s consent. 
  
 IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 
  

					
	 	 	 COMMUNITY BANCSHARES, INC.

			
	 	 	 By:
	 	 /s/ Patrick M. Frawley

		
	 WITNESS:
	 	 GRANTEE:

		
	 /s/ Witness

	 	 /s/ Grantee

	 	 	 Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]