Document:

Exhibit 10.11

                THIS CONTRACT IS SUBJECT TO ARBITRATION PURSUANT
                  TO THE SOUTH CAROLINA UNIFORM ARBITRATION ACT

                              EMPLOYMENT AGREEMENT

         This  Agreement is entered  into as of the 1st day of January,  2005 by
and between COMMUNITY BANKSHARES, INC. (the "Company"), and SAMUEL L. ERWIN (the
"Employee").

                                    RECITALS:

         A. The Company wishes to employ Employee as an executive  officer,  and
to assure the Employee's continued employment with the Company, and the Employee
has agreed to accept such employment.

         B. The Company and the Employee  mutually desire that their  employment
relationship be set forth under the terms of a written employment agreement.

         In  consideration  of the  foregoing  and of the  promises  and  mutual
agreements  set forth  below,  and other good and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged,  the parties hereto do
hereby agree as follows :

         1.  Employment.  The  Company  agrees to employ the  Employee,  and the
Employee agrees to accept employment and to serve the Company,  on the terms and
conditions set forth herein.

         2. Term of  Employment.  The employment of the Employee by the Company,
as  provided  under  Section 1,  shall  commence  on the date  hereof and end on
January 1, 2008 (the "Term of  Employment")  unless further  extended in writing
with express  reference to this  Agreement or sooner  terminated as  hereinafter
provided. Commencing on the third anniversary of the date of this Agreement, and
on  each  annual   anniversary   thereafter,   the  Term  of  Employment   shall
automatically  be extended  for an  additional  year unless 90 days prior to the
anniversary the Company gives notice to the Employee that the Term of Employment
will not be  extended.  Except  as  otherwise  provided  expressly  herein,  the
provisions of this  Agreement  related to Employee's  employment  will not apply
after the Term of Employment  has expired and any  continuing  employment of the
Employee  thereafter will be at-will and not subject to the terms and conditions
of this Agreement.

         3. Position and Duties.  The Employee shall serve on a full-time  basis
as Chief  Executive  Officer of the Company and shall have the  authority and be
responsible  for all duties and  responsibilities  as set forth in Appendix A to
this Agreement and shall assume such additional  responsibilities  and authority
as may from time to time be  assigned  to him by the Board of  Directors  of the
Company.  The Employee shall perform his responsibilities and duties in the best
interests of the Company.

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         4. Place of Performance.  In connection with the Employee's  employment
hereunder,  the Employee  shall be based  initially at the  Company's  corporate
headquarters located in Orangeburg, South Carolina, subject to reasonable travel
or  relocation as necessary to the carry out the business of the Company and his
duties hereunder.

         5.  Compensation  and  Benefits.  In  consideration  of the  Employee's
performance of his duties hereunder, the Company shall provide the Employee with
the  following  compensation  and  benefits  during  the term of his  employment
hereunder.

                  a. Base Salary. During his first year of employment under this
         Agreement,   Employee   shall  receive  a  per  annum  base  salary  of
         $190,000.00; during his second year of employment under this Agreement,
         Employee  shall  receive a per annum base  salary of  $204,250.00;  and
         during his third year of  employment  under  this  Agreement,  Employee
         shall receive a per annum base salary of $219,570.00.  Such base salary
         shall be  payable in equal  installments  in arrears on the last day of
         the month or on such other  payroll  schedule as is used by the Company
         for other employees. After the first three years of his employment, and
         during the term of the Employee's employment under this Agreement,  the
         Company's Board of Directors  periodically will review and may increase
         (but not decrease) the  Employee's  base salary rate, all in accordance
         with the Company's  salary  administration  policies and  procedures in
         effect from time to time,  and each  change in the base  salary  amount
         listed in this  Section  shall become the new base salary  amount.  The
         Company shall have no obligation to increase the Employee's base salary
         rate at any particular time or in any particular  amount,  and any such
         increase  shall be in the sole and absolute  discretion of the Board of
         Directors of the Company.

                  b.  Bonus and  Incentive  Compensation.  For the first year of
         employment  under this Agreement,  the Employee shall be eligible for a
         potential  maximum  bonus  of  $35,000.00;   for  the  second  year  of
         employment  under this Agreement,  the Employee shall be eligible for a
         potential  maximum  bonus  of  $45,750.00;  and for the  third  year of
         employment  under this Agreement,  the Employee shall be eligible for a
         potential  maximum bonus of $55, 430.00.  The eligibility  criteria for
         such bonuses are set forth in Appendix B hereto.  After the first three
         years of employment under this Agreement,  the Company shall pay to the
         Employee with respect to each subsequent fiscal year during the term of
         the Employee's employment hereunder,  such cash bonus, if any, as shall
         be  determined  pursuant  to a  bonus  plan  adopted  by the  Board  of
         Directors of the Company for key  employees.  In addition,  and without
         diminution of any other  compensation  or benefit  provided for in this
         Agreement,  the Employee may be given the opportunity to participate in
         other incentive  compensation plans that may be adopted by the Company,
         which  participation  opportunity may be offered to the Employee in the
         sole discretion of the Board of Directors of the Company.

                  c.  Stock  Options.  Upon  execution  of this  Agreement,  the
         Company shall grant to Employee nonqualified options to purchase 10,000
         shares of the Company's  common stock.  On the one year  anniversary of
         this Agreement,  the Company shall grant to Employee  incentive options
         to purchase an additional  10,000 shares of the Company's  common stock
         if, in the sole discretion of the Board of Directors,  the Employee has

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         completed the year with a high performance  appraisal.  On the two year
         anniversary  of this  Agreement,  the  Company  shall grant to Employee
         incentive  options  to  purchase  an  additional  10,000  shares of the
         Company's  common  stock  if,  in the sole  discretion  of the Board of
         Directors,  the Employee has completed the year with a high performance
         appraisal.  The exercise  price of all of the options shall be equal to
         the fair  market  value of the  Company's  common  stock on the date of
         grant,  as determined  under the Company's 1997 Stock Option Plan. Each
         set of options  shall vest upon  grant and shall be  exercisable  for a
         period of five years after the date of grant.

                  d.  Automobile  Allowance.   The  Company  shall  provide  the
         Employee with a $9,000.00 annual automobile allowance.

                  e. Life Insurance. The Company shall provide the Employee with
         one or more life insurance  policies  insuring the life of the Employee
         with an aggregate  death  benefit of at least  $1,000,000  payable to a
         beneficiary  or  beneficiaries  designated  by the  Employee  or to the
         estate of the Employee.  Employee  shall  cooperate with the Company in
         obtaining  such policy or policies.  The Company and Employee shall use
         their best  efforts to obtain  such  policy or  policies by February 1,
         2005.

                  f.  Country  Club and Civic Club Dues.  The Company  shall pay
         reasonable dues on behalf of the Employee for one country club approved
         by the  Compensation  Committee  of the Board and shall pay  reasonable
         dues for civic  organizations  to which the  Employee  belongs  for the
         benefit of the Company and which have been approved by the Compensation
         Committee of the Board.

                  g. Deferred  Compensation.  The Employee  shall be entitled to
         participate  in the  Company's  401(k) Plan and the Company shall match
         100% of the first 3% of salary that the Employee defers each year.

                  h. Health and Dental  Insurance.  The Company will provide the
         Employee with health and dental insurance coverage on the same basis as
         such coverage is provided for other executive officers of the Company.

                  i. Expenses.  The Company shall reimburse the Employee for all
         proper and reasonable  out-of-pocket  expenses incurred by the Employee
         in his performance of services  hereunder,  including all such expenses
         of travel and living  expense  while away from home on  business of the
         Company and mileage for  out-of-town  business  use of his  automobile,
         provided   that  such  expenses  are  incurred  and  accounted  for  in
         accordance with the regular policies and procedures  established by the
         Company from time to time.

                  j.  Vacations.  The Employee  shall be entitled to 15 vacation
         days in each calendar year, as well as to all paid holidays provided by
         the Company to its employees.  The Employee will not be entitled to any
         additional pay for unused vacation.

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                  k. Moving Expenses.  The Company shall either pay directly, or
         reimburse the Employee for, reasonable expenses of moving his residence
         to Orangeburg, South Carolina.

                  l. Other Benefits.  The Employee shall be entitled to share in
         any other employee  benefits  generally  provided by the Company to its
         most highly ranking executives for so long as the Company provides such
         benefits.  The Employee  shall also be entitled to  participate  in all
         other benefits accorded generally to Company employees.

         6. Compensation and Benefits in the Event of Termination.  In the event
of the  termination  of the  Employee's  employment  by  the  Company  or by the
Employee during the term of this Agreement,  compensation  and benefits shall be
paid as set forth below.

                  a. Definitions.  For purposes of this Agreement, the following
         terms shall have the meanings indicated:

                           (i) "Cause" shall mean

                                    (A) the breach by Employee  of any  material
                           provision of this  Agreement,  provided  that Company
                           gives the Employee written notice of such failure and
                           such  failure is not cured  within  thirty  (30) days
                           thereafter;

                                    (B) the willful and continued failure by the
                           Employee to  substantially  perform his duties  under
                           this Agreement  (other than the Employee's  inability
                           to perform, with or without reasonable accommodation,
                           resulting  from his  incapacity  due to  physical  or
                           mental  illness  or  impairment),  after a demand for
                           substantial  performance  is  delivered to him by the
                           Company,  which demand  specifically  identifies  the
                           manner in which the  Employee  is alleged to have not
                           substantially performed his duties;

                                    (C) the willful  engaging by the Employee in
                           misconduct (criminal,  immoral or otherwise) which is
                           materially injurious to the Company, its subsidiaries
                           or    their    respective    officers,     directors,
                           shareholders,  employees, or customers, monetarily or
                           otherwise;

                                    (D) the Employee's conviction of a felony;

                                    (E)  the  commission  in the  course  of the
                           Employee's   employment   of   an   act   of   fraud,
                           embezzlement,  theft  or  proven  dishonesty,  or any
                           other illegal act or practice, which would constitute
                           a  felony,  (whether  or not  resulting  in  criminal
                           prosecution or conviction),  or the commission of any
                           act or  practice  which  resulted  in the  Employee's
                           becoming  unbondable  under the  Company's  "banker's
                           blanket bond;" or

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                                    (F)  the   suspension   or  removal  of  the
                           Employee, or the issuance of an order prohibiting the
                           Employee from  associating with the Company or any of
                           its   subsidiaries,   by  federal  or  state  banking
                           regulatory  authorities acting under lawful authority
                           pursuant  to  provisions  of  federal or state law or
                           regulation which may be in effect from time to time.

                           (ii) A "Change of Control"  of the  Company  shall be
                  deemed to have been effected for purposes of this agreement if
                  either:

                                    (A)  voting  control  of  CBI  is  acquired,
                           directly or indirectly, by any person or group acting
                           in concert,

                                    (B) CBI is  merged  with or into  any  other
                           entity  and CBI is not the  surviving  entity  of the
                           merger,

                           (iii) "Date of Termination" shall mean:

                                    (A)  if   the   Employee's   employment   is
                           terminated by reason of his death, his date of death;

                                    (B)  if   the   Employee's   employment   is
                           terminated  for  Disability,  thirty  (30) days after
                           Notice of  Termination  is given  (provided  that the
                           Employee  shall not have returned to the  performance
                           of his duties as provided under sub-paragraph (iv) of
                           this paragraph 6.a); or

                                    (C)  if   the   Employee's   employment   is
                           terminated  by action  of either  party for any other
                           reason,   the  date   specified   in  the  Notice  of
                           Termination; provided, however, that if within thirty
                           (30) days after any Notice of  Termination  is given,
                           the  party   receiving  such  Notice  of  Termination
                           notifies  the  other  party  that  a  dispute  exists
                           concerning the  termination,  the Date of Termination
                           shall be the date on which  the  dispute  is  finally
                           resolved,  either by mutual written  agreement of the
                           parties, or by a final arbitration award or judgment,
                           order or decree of a court of competent  jurisdiction
                           (the time for appeal  therefrom having expired and no
                           appeal having been perfected).

                           (iv) "Disability"  shall mean the Employee's  failure
                  to  satisfactorily  perform  the  essential  functions  of his
                  office on a full-time  basis for one hundred and eighty  (180)
                  consecutive days, with or without accommodation,  by reason of
                  the  Employee's  incapacity  resulting from physical or mental
                  illness or  impairment,  except where within fifteen (15) days
                  after Notice of Termination  is given  following such absence,
                  the Employee  shall have  returned to the  satisfactory,  full
                  time  performance  of  such  duties.   Any   determination  of
                  Disability  hereunder  shall be made by the Board of Directors
                  of  the  Company  in  good  faith  and  on  the  basis  of the
                  certificates of at least three (3) qualified physicians chosen

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                  by it  for  such  purpose,  one  (1)  of  whom  shall  be  the
                  Employee's regular attending physician.

                           (v) "Good Reason" shall mean either:

                                    (A)  Failure by the  Company to comply  with
                           any  material  provision  of  this  Agreement  or the
                           material  diminution or alteration of the  Employee's
                           authority  and duties  hereunder,  provided  that the
                           Employee  gives the  Company  written  notice of such
                           failure and such failure is not cured  within  thirty
                           (30) days thereafter;

                                    (B)  Failure  by the  Company  to obtain the
                           assumption of its obligations under this Agreement by
                           any successor;

                                    (C) The  failure  by the  Company  to comply
                           with Section 5 of this Agreement; or

                                    (D)  Any   purported   termination   of  the
                           Employee's  employment by action of the Company which
                           is not effected pursuant to a Notice of Termination.

                           (vi)  "Notice  of  Termination"  shall mean a written
                  notice which shall include the specific termination  provision
                  under  this  Agreement  relied  upon,  and  shall set forth in
                  reasonable  detail  the facts  and  circumstances  claimed  to
                  provide a basis for termination of the Employee's  employment.
                  Any  purported   termination  of  the  Employee's   employment
                  hereunder by action of either party shall be  communicated  by
                  delivery of a Notice of Termination to the other party.

                           (vii)  "Retirement"  shall  mean  termination  of the
                  Employee's   employment  pursuant  to  the  Company's  regular
                  retirement  policy  applicable  to the  position  held  by the
                  Employee at the time of such termination.

                           (viii)  "Board of  Directors"  shall include any duly
                  authorized committee of the Board of Directors.

                  b. Termination Within Six Months After a Change of Control.

                           (i) If Employee  terminates his  employment  with the
                  Company  or is  terminated  by the  Company  with  a  Date  of
                  Termination  within six months following the effective date of
                  a Change of Control,  upon such termination  Employee shall be
                  entitled to a lump sum payment  equal to twice the  Employee's
                  annual   base   salary   amount  in  effect  at  the  Date  of
                  Termination.  If,  however,  the  amount  of any such lump sum
                  payment,  plus any other amount treated as a parachute payment
                  under  Section 280G of the Internal  Revenue Code, as amended,
                  (the  "Code")  equals or exceeds the base amount  described in
                  such  Section  280G,  then the amount due  hereunder  shall be

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                  adjusted to have a value of three times the base amount  under
                  Section 280G less $100.

                           (ii) This paragraph 6.b. shall initially be effective
                  for a period of five  years  from the  effective  date of this
                  Agreement;  provided,  however,  that  commencing on the first
                  anniversary  after  the  date of this  Agreement,  and on each
                  annual  anniversary  thereafter,  the  effectiveness  of  this
                  paragraph  6.b.  shall   automatically   be  extended  for  an
                  additional  year,  unless 30 days prior to the anniversary the
                  Company gives notice to the Employee that the effectiveness of
                  this paragraph 6.b. will not be extended.

                           (iii) Any amount paid under this  paragraph 6.b. will
                  be deemed  severance pay.  Employee will not be under any duty
                  to  mitigate  damages  and  no  income  received  by  employee
                  thereafter shall reduce the amount due Employee hereunder.

                           (iv) If Employee should die after the occurrence of a
                  Change of Control and while any amount  would still be payable
                  to Employee  hereunder if Employee  had  continued to live but
                  not be in the employ of the Company, all such amounts,  unless
                  otherwise  provided  herein,  shall be paid in accordance with
                  the terms of this  Agreement  to  Employee's  devisee or other
                  designee  or,  if there be no such  devisee  or  designee,  to
                  Employee's estate.

                  c. Termination by the Company For Cause and Termination by the
         Employee  For Other Than for Good  Reason,  or  Disability,  Death,  or
         Retirement. If the Employee's employment hereunder is terminated during
         the Term of Employment by action of the Company for Cause; by action of
         the Employee not for Good Reason; or by reason of the Employee's death,
         Disability or Retirement  and the  provisions of paragraph 6.b above do
         not apply,  the following  compensation  and benefits shall be paid and
         provided the Employee (or his beneficiary):

                           (i)  The  Employee's   base  salary   provided  under
                  paragraph a. of Section 5 through the last day of the month in
                  which the Date of  Termination  occurs,  at the annual rate in
                  effect at the time  Notice of  Termination  is given (or death
                  occurs),   to  the  extent   unpaid  prior  to  such  Date  of
                  Termination;

                           (ii) Any bonus under  paragraph b. of Section 5 which
                  has been  awarded  prior to the  Date of  Termination,  to the
                  extent unpaid prior to such date;

                           (iii)  Any  benefits  to which the  Employee  (or his
                  beneficiary)  may be entitled as a result of such  termination
                  under the  terms  and  conditions  of the  pertinent  plans or
                  arrangements   in  effect  at  the  time  of  the   Notice  of
                  Termination under Section 5; and

                           (iv) Any amounts  due the  Employee  with  respect to
                  paragraphs  i.  and  k.  of  Section  5  as  of  the  Date  of
                  Termination.

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                  d.  Termination by the Employee for Good Reason or Disability,
         Death or Retirement  and  Termination by the Company for Other Than For
         Cause. In the event the Employee's  employment  hereunder is terminated
         during the Term of  Employment  other than by reason of the  Employee's
         death, Disability or Retirement, and by action of the Employee for Good
         Reason,  or by action of the  Company  other  than for  Cause,  and the
         provisions of paragraph 6.b. above do not apply,  the Company shall pay
         and provide the Employee the compensation and benefits stipulated under
         paragraph  6.c.  immediately  above;  provided,  however,  in  addition
         thereto and without setoff,  the following  compensation  shall be paid
         and provided the Employee:

                           (i) For the remaining  Term of Employment  under this
                  Agreement,

                                    (A) the Company shall continue to pay to the
                           Employee the base salary provided for in Section 5.a.
                           above (at the  Employee's  base salary rate  provided
                           for in that Section  immediately prior to the Date of
                           Termination), and

                                    (B)  at  its  sole  cost  and  expense,  the
                           Company will  continue to provide the  Employee  with
                           the  insurance  coverages  he  would  have had had he
                           remained  as an  employee  of  the  Company  or  with
                           insurance coverages substantially equivalent thereto,
                           or,  at the  Company's  request  (and so long as such
                           coverage  reasonably  can be obtained by the Employee
                           himself),  the  Employee  will  obtain  substantially
                           equivalent   insurance   coverages   from   insurance
                           companies chosen by him and the Company promptly will
                           reimburse   Employee  for  premium   costs   actually
                           incurred by him from time to time for the same.

                           (ii) If  termination  pursuant to this paragraph 6.d.
                  shall  occur  during  the last  twelve  months  of the Term of
                  Employment, the Employee shall be entitled to receive the base
                  salary  pursuant to Section  5.a. and the  insurance  benefits
                  discussed  immediately  above for a period  of  twelve  months
                  subsequent to such termination. The base salary shall continue
                  to be payable in equal installments in arrears on the last day
                  of the  month;  provided,  however if the  payment  under this
                  paragraph,  either alone or together with other payments which
                  the Employee has the right to receive from the Company,  would
                  constitute a  "parachute  payment" (as defined in Section 280G
                  of the Code) then the amount due  hereunder  shall be adjusted
                  to have a value of three times the base amount  under  Section
                  280G less $100.

         7.       Confidentiality.

                  a. The Employee  recognizes  that his  activities on behalf of
         the Company require  considerable  responsibility and trust. Relying on
         the ethical responsibilities and undivided loyalty of the Employee, the
         Company has and will and its  subsidiaries  have and will in the future
         entrust the Employee with highly sensitive confidential, restricted and
         proprietary information involving Confidential  Information (as defined
         below).

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                  b.  For  the   purposes  of  this   Agreement,   "Confidential
         Information"  means any data or  information,  that is  material to the
         Company or its subsidiaries,  and not generally known by the public. To
         the  extent  consistent  with the  foregoing  definition,  Confidential
         Information includes (without  limitation):  (i) the financial records,
         marketing,  profit and performance reports,  pricing manuals,  training
         manuals,  marketing and pricing  procedures,  financing  methods of the
         Company  or its  subsidiaries,  and all other  business  records of the
         Company or its  subsidiaries;  (ii) the  identities of the customers of
         the Company or its  subsidiaries,  their  specific  demands,  and their
         current and  anticipated  requirements  for the products or services of
         the Company or its subsidiaries;  (iii) the business plans and internal
         financial   statements   and   projections   of  the   Company  or  its
         subsidiaries;  and iv. the  specifics  of any  specialized  products or
         services the Company or its  subsidiaries may offer or provide to their
         customers.

                  c. The  Employee  recognizes  the  proprietary  and  sensitive
         nature of the Company's and its subsidiaries' Confidential Information.
         The  Employee  agrees  to  abide  by  all  of  the  Company's  and  its
         subsidiaries   rules  and   procedures   designed   to  protect   their
         Confidential   Information  and  to  preserve  and  maintain  all  such
         information in strict  confidence  during the Employee's  employment by
         the  Company and as long  thereafter  as the  Confidential  Information
         remains,  in the sole  opinion  of the  Company  and its  subsidiaries,
         proprietary and confidential to the Company and its  subsidiaries.  The
         Employee  agrees  not to  use,  disclose  or in any  other  way  use or
         disseminate  any  Confidential  Information  to any person not properly
         authorized by the Company or its subsidiaries.

         8. Return of  Materials.  Upon the request of the  Company,  and in any
event,  upon the  termination  of the Employee's  employment,  the Employee must
return to the  Company  or its  subsidiaries  and leave at the  disposal  of the
Company or its subsidiaries,  all memoranda, notes, records, and other documents
pertaining  to  the  business  of  the  Company  and  its  subsidiaries,  or the
Employee's  specific  duties  for such  entities  (including  all copies of such
materials).  The Employee must also return to the Company and its  subsidiaries,
and leave at the  disposal of the Company and its  subsidiaries,  all  materials
involving any Confidential Information of the respective entities.

         9. Implementation. The covenants contained herein shall be construed as
covenants independent of one another, and as obligations distinct from any other
contract  between the Employee and the Company.  Any claim the Employee may have
against the Company shall not constitute a defense to enforcement by the Company
of this  Agreement.  The  covenants  made by the Employee  herein shall  survive
termination  of  the  Employee's  employment,   regardless  of  who  causes  the
termination and under what circumstances.

         10. Restrictive  Covenant. In consideration of the Company's employment
of the Employee,  the Employee agrees that, in addition to any other limitation,
prior to the end of the Term of Employment hereunder, the Date of Termination or
the completion of base salary payments pursuant to Section 6.d. above, whichever
is later,  he will not,  within a twenty-five  (25) mile radius of any operating
office  of  the  Company,  or any of its  subsidiaries,  manage,  operate  or be

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employed by,  participate in, or be connected in any manner with the management,
operation,  or control of any business  engaged in the  businesses  in which the
Company and any or its subsidiaries are engaged on the Date of Termination.  The
Employee further agrees,  regardless of the  circumstances of the termination of
employment, that for a period of twelve (12) months after the termination of his
employment  hereunder,  or the  completion of base salary  payments  pursuant to
section 6.d. above,  he will not solicit the business or patronage,  directly or
indirectly, from any customers of the Company or any of its subsidiaries and the
Employee  will not seek to or assist  others to  persuade  any  employee  of the
Company  engaged in similar work or related to the Company's work to discontinue
employment  with the Company or seek employment or engage in any business of the
Company.  Furthermore,  the Employee will not communicate to any person, firm or
corporation any information related to customer lists, prices,  secrets or other
Confidential  Information  which he might from time to time acquire with respect
to the business of the Company or its subsidiaries,  or any of their affiliates.
The Employee agrees to disclose the contents of this Agreement to any subsequent
employer for a period of twelve (12) months  following the Date of  Termination,
or  completion  of base salary  payments  pursuant to 6.d.  above,  whichever is
later.

         11. Remedies for Breach of Employment Contract.  Irreparable harm shall
be  presumed  if the  Employee  or the  Company  breaches  any  covenant of this
Agreement.  The faithful  observance  of all  covenants in this  Agreement is an
essential condition to the Employee's employment,  and the parties are depending
upon absolute compliance.  Damages would probably be very difficult to ascertain
if any nonmonetary  covenant in this Agreement were breached.  This Agreement is
intended to protect the proprietary  rights of the Company and its  subsidiaries
in many  important  ways.  In light of these facts,  the parties  agree that any
court of competent  jurisdiction  should  immediately  enjoin any breach of this
Agreement,  upon  the  request  of  the  nonbreaching  party,  and  the  parties
specifically  release the other party,  from the requirement to post any bond in
connection with a temporary or interlocutory  injunctive  relief,  to the extent
permitted by law.

         12.  Withholding.  Any  provision  of this  Agreement  to the  contrary
notwithstanding,  all payments made by the Company  hereunder to the Employee or
his estate or beneficiaries shall be subject to the withholding of such amounts,
if  any,  relating  to tax and  other  payroll  deductions  as the  Company  may
reasonably  determine  should be  withheld  pursuant  to any  applicable  law or
regulation.  In lieu of withholding  such amounts,  the Company may accept other
provisions to the end that they have sufficient  funds to pay all taxes required
by law to be withheld in respect of any or all such payments.

         13. Notices.  All notices,  requests,  demands and other communications
provided  for by this  Agreement  shall be in writing and shall be  sufficiently
given if and when  mailed in the  continental  United  States by  registered  or
certified mail, or personally  delivered to the party entitled  thereto,  at the
address stated below or to such changed  address as the addressee may have given
by a similar notice:

         To the Company:   Community Bankshares, Inc.
                           791 Broughton Street
                           Orangeburg, South Carolina 29115

                                       10
<PAGE>

         With a copy to:   George S. King, Jr., Esq.
                           Haynsworth Sinkler Boyd, P.A.
                           1201 Main Street
                           22nd  Floor
                           Columbia, South Carolina 29201

         To the Employee:  Samuel L. Erwin
                           6058 Robinwood Road
                           Columbia, South Carolina 29206

         14. Successors;  Binding  Agreement.  This Agreement shall inure to the
benefit  of  and  be   enforceable   by  the   Employee's   personal   or  legal
representatives,  executors,  administrators,  successors,  heirs, distributees,
devisees and legatees.  If the Employee  should die while any amount would still
be payable to him  hereunder  if he had  continued  to live,  all such  amounts,
except to the extent otherwise  provided under this Agreement,  shall be paid in
accordance with the terms of this Agreement to his devisee or other designee, or
if there be no such devisee or designee, to the Employee's estate.

         15. Modification,  Waiver or Discharge.  No provision of this Agreement
may be  modified,  waived or  discharged  unless such  waiver,  modification  or
discharge  is agreed to in  writing  signed by the  Employee  and an  authorized
officer  of the  Company.  No waiver by either  party  hereto at any time of any
breach by the other  party  hereto of, or  compliance  with,  any  condition  or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or  representations,  oral or otherwise,
express or implied,  with respect to the subject matter hereof have been made by
either  party which are not  expressly  set forth in this  Agreement;  provided,
however,  that this Agreement shall not supersede or in any way limit the right,
duties or obligations  that the Employee or the Company may have under any other
written agreement between such parties,  under any employee pension benefit plan
or employee welfare benefit plan as defined under the Employee Retirement Income
Security Act of 1974, as amended,  and  maintained by the Company,  or under any
established personnel practice or policy applicable to the Employee.

         16.  Governing  Law. The  validity,  interpretation,  construction  and
performance  of this  Agreement  shall be  governed  by the laws of the State of
South Carolina  without regard to the laws of such state governing  conflicts of
laws.

         17. Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not effect the  validity or  enforceability  of any other
provision of this Agreement, which latter shall remain in full force and effect.

                                       11
<PAGE>

         18. Miscellaneous.

                  (a) No  Right  of  Set-Off,  Etc.  There  shall be no right of
         set-off or  counterclaim,  in respect of any claim,  debt or obligation
         against any  payments to the  Employee,  his  beneficiaries  or estates
         provided for in this Agreement.

                  (b) No Adequate  Remedy At Law.  The Company and the  Employee
         recognize  that  each  party  will have no  adequate  remedy at law for
         breach by the other of any of the agreements  contained  herein and, in
         the event of any such breach, the Company and the Employee hereby agree
         and  consent  that the other  shall be  entitled  to decree of specific
         performance,   mandamus,   or  other  appropriate   remedy  to  enforce
         performance of such agreements.

                  (c)   Non-Assignability.   No  right,   benefit,  or  interest
         hereunder  shall  be  subject  to   anticipation,   alienation,   sale,
         assignment,  encumbrance,  charge, pledge, hypothecation,  or setoff in
         respect of any claim, debt or obligation, or to execution,  attachment,
         levy or  similar  process,  or  assignment  by  operation  of law.  Any
         attempt,  voluntary or involuntary,  to effect any action  specified in
         the immediately  preceding sentence shall, to the full extent permitted
         by law, be null,  void and of no effect.  Any of the  foregoing  to the
         contrary  notwithstanding,   this  provision  shall  not  preclude  the
         Employee  from  designating  one or more  beneficiaries  to receive any
         amount that may be payable after his death,  and shall not preclude the
         legal  representative of the Employee's estate from assigning any right
         hereunder to the person or persons  entitled thereto under his will or,
         in the case of intestacy applicable to his estate.

                  (d)  Enforcement of Agreement;  Attorneys'  Fees. In the event
         litigation  or  arbitration  is commenced  by the Employee  against the
         Company in seeking to obtain or enforce  any right,  benefit or payment
         under  this  Agreement  or to enforce  any  obligation  of the  Company
         described  herein,  then,  provided the Employee  shall prevail in such
         litigation  or  arbitration,  the Company shall be obligated to pay all
         reasonable   expenses(including   without   limitation  all  reasonable
         attorneys'  fees and court  costs) paid or incurred by the  Employee in
         connection with such litigation.

                  (e)  Arbitration.  Any  controversy or claim arising out of or
         relating  to this  Agreement  shall be settled  by binding  arbitration
         pursuant to the Federal  Arbitration Act or the South Carolina  Uniform
         Arbitration  Act,  as  applicable,  under the  applicable  rules of the
         American Arbitration  Association and judgment on any award rendered by
         the  arbitrator(s)  may be  entered  in any court  having  jurisdiction
         thereof;  provided  that  either  party may seek  injunctive  relief to
         enforce  provisions of this Agreement without initiating an arbitration
         proceeding. The location of any arbitration shall be Orangeburg,  South
         Carolina.  Any civil action seeking injunctive  relief,  challenging an
         arbitration  proceeding or award or otherwise related to this Agreement
         will be  instituted  and  maintained in the federal or state courts for
         Orangeburg County, South Carolina and the parties hereby consent to the
         personal jurisdiction of said courts.

                                       12
<PAGE>

                  (f)  Counterparts.  This  Agreement  may be executed in one or
         more counterparts, each of which shall be deemed to be an original, but
         of which together will constitute one and the same instrument.

                  (g) Survival.  The rights and remedies  provided by Sections 7
         through  18  of  this  Agreement   shall  survive  the  termination  of
         Employee's employment under this Agreement and the Term of Employment.

         IN WITNESS WHEREOF, the Employee and the Company (by action of its duly
authorized  officer)  have  executed  this  Agreement  on the date  first  above
written.

                                COMMUNITY BANKSHARES, INC.

                                By:
                                   ---------------------------------------------
                                   E. J. Ayers, Jr.
                                   Chairman of the Board of Directors

                                   ---------------------------------------------
                                   SAMUEL L. ERWIN

                                       13
<PAGE>

                                   APPENDIX A
                              AUTHORITY AND DUTIES

         Employee shall serve as the Chief Executive Officer of the Company.  He
shall serve at the  pleasure of the Board of  Directors  and shall report to the
Board of Directors.

         Employee shall exercise the authority and discharge the duties assigned
to the Chief Executive Officer by the bylaws.

         Employee  shall  carry  out  the  policies  approved  by the  Board  of
Directors.

         Employee shall chair an Executive  Management Committee composed of the
presidents of the Company's subsidiaries, the Chief Executive Officer, the Chief
Financial Officer,  the Chief Operating Officer and any other corporate officers
appointed by the Chief Executive Officer.

         Employee  shall have the  authority  and  responsibility  for decisions
regarding the employment,  termination,  performance appraisal and determination
of compensation for all corporate level employees.

         Employee shall have the authority and  responsibility  for creating and
implementing plans for the employment,  termination,  performance  appraisal and
determination of compensation of the presidents of the Company's subsidiaries in
conjunction with the boards of directors of such subsidiaries.

         Employee  shall exercise such  additional  authority and discharge such
additional duties as the Board of Directors shall, from time to time, reasonably
assign to Employee.

                                       14
<PAGE>

                                   APPENDIX B
                           BONUS ELIGIBILITY CRITERIA

         Year One

          1.   High quality  performance  appraisal by Board of Directors of the
               Company.
          2.   Affirmation   or   revision   of   Strategic   Plan  and  initial
               implementation thereof.
          3.   Internal organizational assessment and restructuring.
          4.   Assessment and implementation of actions necessary to comply with
               Sarbanes-Oxley Act.
          5.   Implementation of good governance structure and processes.

         Year Two

          1.   High quality  performance  appraisal by Board of Directors of the
               Company.
          2.   Metrics in alignment with Strategic Plan.

         Year Three

          1.   High quality  performance  appraisal by Board of Directors of the
               Company.
          2.   Metrics in alignment with the Strategic Plan.

                                       15Exhibit 10.12

                THIS CONTRACT IS SUBJECT TO ARBITRATION PURSUANT
                  TO THE SOUTH CAROLINA UNIFORM ARBITRATION ACT

                              EMPLOYMENT AGREEMENT

         This Agreement is entered into as of the 15th day of February,  2005 by
and between  COMMUNITY  BANKSHARES,  INC.  together with its  subsidiaries  (the
"Company"), and ___________________ (the "Employee").

                                    RECITALS:

         A. The Company wishes to employ Employee as an executive  officer,  and
to assure the Employee's continued employment with the Company, and the Employee
has agreed to accept such employment.

         B. The Company and the Employee  mutually desire that their  employment
relationship be set forth under the terms of a written employment agreement.

         In  consideration  of the  foregoing  and of the  promises  and  mutual
agreements  set forth  below,  and other good and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged,  the parties hereto do
hereby agree as follows:

         1.  Employment.  The  Company  agrees to employ the  Employee,  and the
Employee agrees to accept employment and to serve the Company,  on the terms and
conditions set forth herein.

         2. Term of  Employment.  The employment of the Employee by the Company,
as  provided  under  Section 1,  shall  commence  on the date  hereof and end on
February 15, 2008 (the "Term of Employment")  unless further extended in writing
with express  reference to this  Agreement or sooner  terminated as  hereinafter
provided. Commencing on the third anniversary of the date of this Agreement, and
on  each  annual   anniversary   thereafter,   the  Term  of  Employment   shall
automatically  be extended  for an  additional  year unless 90 days prior to the
anniversary the Company gives notice to the Employee that the Term of Employment
will not be  extended.  Except  as  otherwise  provided  expressly  herein,  the
provisions of this  Agreement  related to Employee's  employment  will not apply
after the Term of Employment  has expired and any  continuing  employment of the
Employee  thereafter will be at-will and not subject to the terms and conditions
of this Agreement.

         3. Position and Duties.  The Employee shall serve on a full-time  basis
as  ________________________________________ of the  Company  and shall have the
authority  and  be  responsible  for  general  oversight  of the  financial  and
operational   matters  of  the   Company  and  shall   assume  such   additional
responsibilities  and  authority  as may from time to time be assigned to him by
the Chief  Executive  Officer of the  Company.  The Employee  shall  perform his
responsibilities and duties in the best interests of the Company.

<PAGE>

         4. Place of Performance.  In connection with the Employee's  employment
hereunder,  the Employee  shall be based  initially at the  Company's  corporate
headquarters located in Orangeburg, South Carolina, subject to reasonable travel
or  relocation as necessary to the carry out the business of the Company and his
duties hereunder.

         5.  Compensation  and  Benefits.  In  consideration  of the  Employee's
performance of his duties hereunder, the Company shall provide the Employee with
the  following  compensation  and  benefits  during  the term of his  employment
hereunder.

                  a. Base Salary. During his first year of employment under this
         Agreement, Employee shall receive at a minimum, a per annum base salary
         of $_______. Such base salary shall be payable in equal installments in
         arrears on the last day of the month or on such other payroll  schedule
         as is used by the Company for other employees.  After the first year of
         his employment,  and during the term of the Employee's employment under
         this Agreement, the Chief Executive Officer of the Company periodically
         will review and may increase  (but not decrease)  the  Employee's  base
         salary rate, all in accordance with the Company's salary administration
         policies and procedures in effect from time to time, and each change in
         the base salary amount listed in this Section shall become the new base
         salary  amount.  The Company  shall have no  obligation to increase the
         Employee's base salary rate at any particular time or in any particular
         amount,  and any  such  increase  shall  be in the  sole  and  absolute
         discretion of the Chief Executive Officer of the Company.

                  b. Bonus and Incentive Compensation.  The Company shall pay to
         the  Employee  with respect to each  subsequent  fiscal year during the
         term of the Employee's employment  hereunder,  such cash bonus, if any,
         as shall be determined pursuant to a bonus plan adopted by the Board of
         Directors of the Company for key  employees.  In addition,  and without
         diminution of any other  compensation  or benefit  provided for in this
         Agreement,  the Employee may be given the opportunity to participate in
         other incentive  compensation plans that may be adopted by the Company,
         which  participation  opportunity may be offered to the Employee in the
         sole discretion of the Board of Directors of the Company.

                  c.  Country  Club and Civic Club Dues.  The Company  shall pay
         reasonable dues on behalf of the Employee for one country club approved
         by the Board of the  entity of which the  Employee  is an  officer  and
         shall pay reasonable dues for civic organizations to which the Employee
         belongs  for the  benefit  of the  entity of which the  Employee  is an
         officer and which have been approved by the Board of such entity.

                  d. Deferred  Compensation.  The Employee  shall be entitled to
         participate  in the  Company's  401(k) Plan and the Company shall match
         100% of the first 3% of salary that the Employee defers each year.

                  e. Health and Dental  Insurance.  The Company will provide the
         Employee with health and dental insurance coverage on the same basis as
         such coverage is provided for other executive officers of the Company.

                                       2
<PAGE>

                  f. Expenses.  The Company shall reimburse the Employee for all
         proper and reasonable  out-of-pocket  expenses incurred by the Employee
         in his performance of services  hereunder,  including all such expenses
         of travel and living  expense  while away from home on  business of the
         Company and mileage for  out-of-town  business  use of his  automobile,
         provided   that  such  expenses  are  incurred  and  accounted  for  in
         accordance with the regular policies and procedures  established by the
         Company from time to time.

                  g.  Vacations.  The Employee shall be entitled to a minimum of
         15 vacation days in each calendar year, as well as to all paid holidays
         provided  by the Company to its  employees.  The  Employee  will not be
         entitled to any additional pay for unused vacation.

                  h. Other Benefits.  The Employee shall be entitled to share in
         any other employee  benefits  generally  provided by the Company to its
         most highly ranking executives for so long as the Company provides such
         benefits.  The Employee  shall also be entitled to  participate  in all
         other benefits accorded generally to Company employees.

         6. Compensation and Benefits in the Event of Termination.  In the event
of the  termination  of the  Employee's  employment  by  the  Company  or by the
Employee during the term of this Agreement,  compensation  and benefits shall be
paid as set forth below.

                  a. Definitions.  For purposes of this Agreement, the following
         terms shall have the meanings indicated:

                           (i) "Cause" shall mean

                                    (A) the breach by Employee  of any  material
                           provision of this  Agreement,  provided  that Company
                           gives the Employee written notice of such failure and
                           such  failure is not cured  within  thirty  (30) days
                           thereafter;

                                    (B) the willful and continued failure by the
                           Employee to  substantially  perform his duties  under
                           this Agreement  (other than the Employee's  inability
                           to perform, with or without reasonable accommodation,
                           resulting  from his  incapacity  due to  physical  or
                           mental  illness  or  impairment),  after a demand for
                           substantial  performance  is  delivered to him by the
                           Company,  which demand  specifically  identifies  the
                           manner in which the  Employee  is alleged to have not
                           substantially performed his duties;

                                    (C) the willful  engaging by the Employee in
                           misconduct (criminal,  immoral or otherwise) which is
                           materially injurious to the Company, its subsidiaries
                           or    their    respective    officers,     directors,
                           shareholders,  employees, or customers, monetarily or
                           otherwise;

                                    (D) the Employee's conviction of a felony;

                                       3
<PAGE>

                                    (E)  the  commission  in the  course  of the
                           Employee's   employment   of   an   act   of   fraud,
                           embezzlement,  theft  or  proven  dishonesty,  or any
                           other illegal act or practice, which would constitute
                           a  felony,  (whether  or not  resulting  in  criminal
                           prosecution or conviction),  or the commission of any
                           act or  practice  which  resulted  in the  Employee's
                           becoming  unbondable  under the  Company's  "banker's
                           blanket bond;" or

                                    (F)  the   suspension   or  removal  of  the
                           Employee, or the issuance of an order prohibiting the
                           Employee from  associating with the Company or any of
                           its   subsidiaries,   by  federal  or  state  banking
                           regulatory  authorities acting under lawful authority
                           pursuant  to  provisions  of  federal or state law or
                           regulation which may be in effect from time to time.

                           (ii) A "Change of Control"  of the  Company  shall be
                  deemed to have been effected for purposes of this agreement if
                  either:

                                    (A)  voting  control  of  CBI  is  acquired,
                           directly or indirectly, by any person or group acting
                           in concert,

                                    (B) CBI is  merged  with or into  any  other
                           entity  and CBI is not the  surviving  entity  of the
                           merger,

                           (iii) "Date of Termination" shall mean:

                                    (A)  if   the   Employee's   employment   is
                           terminated by reason of his death, his date of death;

                                    (B)  if   the   Employee's   employment   is
                           terminated  for  Disability,  thirty  (30) days after
                           Notice of  Termination  is given  (provided  that the
                           Employee  shall not have returned to the  performance
                           of his duties as provided under sub-paragraph (iv) of
                           this paragraph 6.a); or

                                    (C)  if   the   Employee's   employment   is
                           terminated  by action  of either  party for any other
                           reason,   the  date   specified   in  the  Notice  of
                           Termination; provided, however, that if within thirty
                           (30) days after any Notice of  Termination  is given,
                           the  party   receiving  such  Notice  of  Termination
                           notifies  the  other  party  that  a  dispute  exists
                           concerning the  termination,  the Date of Termination
                           shall be the date on which  the  dispute  is  finally
                           resolved,  either by mutual written  agreement of the
                           parties, or by a final arbitration award or judgment,
                           order or decree of a court of competent  jurisdiction
                           (the time for appeal  therefrom having expired and no
                           appeal having been perfected).

                           (iv) "Disability"  shall mean the Employee's  failure
                  to  satisfactorily  perform  the  essential  functions  of his
                  office on a full-time  basis for one hundred and eighty  (180)
                  consecutive days, with or without accommodation,  by reason of

                                       4
<PAGE>

                  the  Employee's  incapacity  resulting from physical or mental
                  illness or  impairment,  except where within fifteen (15) days
                  after Notice of Termination  is given  following such absence,
                  the Employee  shall have  returned to the  satisfactory,  full
                  time  performance  of  such  duties.   Any   determination  of
                  Disability  hereunder  shall be made by the Board of Directors
                  of  the  Company  in  good  faith  and  on  the  basis  of the
                  certificates of at least three (3) qualified physicians chosen
                  by it  for  such  purpose,  one  (1)  of  whom  shall  be  the
                  Employee's regular attending physician.

                           (v) "Good Reason" shall mean either:

                                    (A)  Failure by the  Company to comply  with
                           any  material  provision  of  this  Agreement  or the
                           material  diminution or alteration of the  Employee's
                           authority  and duties  hereunder,  provided  that the
                           Employee  gives the  Company  written  notice of such
                           failure and such failure is not cured  within  thirty
                           (30) days thereafter;

                                    (B)  Failure  by the  Company  to obtain the
                           assumption of its obligations under this Agreement by
                           any successor;

                                    (C) The  failure  by the  Company  to comply
                           with Section 5 of this Agreement; or

                                    (D)  Any   purported   termination   of  the
                           Employee's  employment by action of the Company which
                           is not effected pursuant to a Notice of Termination.

                           (vi)  "Notice  of  Termination"  shall mean a written
                  notice which shall include the specific termination  provision
                  under  this  Agreement  relied  upon,  and  shall set forth in
                  reasonable  detail  the facts  and  circumstances  claimed  to
                  provide a basis for termination of the Employee's  employment.
                  Any  purported   termination  of  the  Employee's   employment
                  hereunder by action of either party shall be  communicated  by
                  delivery of a Notice of Termination to the other party.

                           (vii)  "Retirement"  shall  mean  termination  of the
                  Employee's   employment  pursuant  to  the  Company's  regular
                  retirement  policy  applicable  to the  position  held  by the
                  Employee at the time of such termination.

                           (viii)  "Board of  Directors"  shall include any duly
                  authorized committee of the Board of Directors.

                  b. Termination Within Six Months After a Change of Control.

                           (i) If Employee  terminates his  employment  with the
                  Company  or is  terminated  by the  Company  with  a  Date  of
                  Termination  within six months following the effective date of

                                       5
<PAGE>

                  a Change of Control,  upon such termination  Employee shall be
                  entitled to a lump sum payment  equal to twice the  Employee's
                  annual   base   salary   amount  in  effect  at  the  Date  of
                  Termination.  If,  however,  the  amount  of any such lump sum
                  payment,  plus any other amount treated as a parachute payment
                  under  Section 280G of the Internal  Revenue Code, as amended,
                  (the  "Code")  equals or exceeds the base amount  described in
                  such  Section  280G,  then the amount due  hereunder  shall be
                  adjusted to have a value of three times the base amount  under
                  Section 280G less $100.

                           (ii) This paragraph 6.b. shall initially be effective
                  for a period of five  years  from the  effective  date of this
                  Agreement;  provided,  however,  that  commencing on the first
                  anniversary  after  the  date of this  Agreement,  and on each
                  annual  anniversary  thereafter,  the  effectiveness  of  this
                  paragraph  6.b.  shall   automatically   be  extended  for  an
                  additional  year,  unless 30 days prior to the anniversary the
                  Company gives notice to the Employee that the effectiveness of
                  this paragraph 6.b. will not be extended.

                           (iii) Any amount paid under this  paragraph 6.b. will
                  be deemed  severance pay.  Employee will not be under any duty
                  to  mitigate  damages  and  no  income  received  by  employee
                  thereafter shall reduce the amount due Employee hereunder.

                           (iv) If Employee should die after the occurrence of a
                  Change of Control and while any amount  would still be payable
                  to Employee  hereunder if Employee  had  continued to live but
                  not be in the employ of the Company, all such amounts,  unless
                  otherwise  provided  herein,  shall be paid in accordance with
                  the terms of this  Agreement  to  Employee's  devisee or other
                  designee  or,  if there be no such  devisee  or  designee,  to
                  Employee's estate.

                  c. Termination by the Company For Cause and Termination by the
         Employee  For Other Than for Good  Reason,  or  Disability,  Death,  or
         Retirement. If the Employee's employment hereunder is terminated during
         the Term of Employment by action of the Company for Cause; by action of
         the Employee not for Good Reason; or by reason of the Employee's death,
         Disability or Retirement  and the  provisions of paragraph 6.b above do
         not apply,  the following  compensation  and benefits shall be paid and
         provided the Employee (or his beneficiary):

                           (i)  The  Employee's   base  salary   provided  under
                  paragraph a. of Section 5 through the last day of the month in
                  which the Date of  Termination  occurs,  at the annual rate in
                  effect at the time  Notice of  Termination  is given (or death
                  occurs),   to  the  extent   unpaid  prior  to  such  Date  of
                  Termination;

                           (ii) Any bonus under  paragraph b. of Section 5 which
                  has been  awarded  prior to the  Date of  Termination,  to the
                  extent unpaid prior to such date;

                           (iii)  Any  benefits  to which the  Employee  (or his
                  beneficiary)  may be entitled as a result of such  termination
                  under the  terms  and  conditions  of the  pertinent  plans or

                                       6
<PAGE>

                  arrangements   in  effect  at  the  time  of  the   Notice  of
                  Termination under Section 5; and

                           (iv) Any amounts  due the  Employee  with  respect to
                  paragraphs  i.  and  k.  of  Section  5  as  of  the  Date  of
                  Termination.

                  d.  Termination by the Employee for Good Reason or Disability,
         Death or Retirement  and  Termination by the Company for Other Than For
         Cause. In the event the Employee's  employment  hereunder is terminated
         during the Term of  Employment  other than by reason of the  Employee's
         death, Disability or Retirement, and by action of the Employee for Good
         Reason,  or by action of the  Company  other  than for  Cause,  and the
         provisions of paragraph 6.b. above do not apply,  the Company shall pay
         and provide the Employee the compensation and benefits stipulated under
         paragraph  6.c.  immediately  above;  provided,  however,  in  addition
         thereto and without setoff,  the following  compensation  shall be paid
         and provided the Employee:

                           (i) For the remaining  Term of Employment  under this
                  Agreement,

                                    (A) the Company shall continue to pay to the
                           Employee the base salary provided for in Section 5.a.
                           above (at the  Employee's  base salary rate  provided
                           for in that Section  immediately prior to the Date of
                           Termination), and

                                    (B)  at  its  sole  cost  and  expense,  the
                           Company will  continue to provide the  Employee  with
                           the  insurance  coverages  he  would  have had had he
                           remained  as an  employee  of  the  Company  or  with
                           insurance coverages substantially equivalent thereto,
                           or,  at the  Company's  request  (and so long as such
                           coverage  reasonably  can be obtained by the Employee
                           himself),  the  Employee  will  obtain  substantially
                           equivalent   insurance   coverages   from   insurance
                           companies chosen by him and the Company promptly will
                           reimburse   Employee  for  premium   costs   actually
                           incurred by him from time to time for the same.

                           (ii) If  termination  pursuant to this paragraph 6.d.
                  shall  occur  during  the last  twelve  months  of the Term of
                  Employment, the Employee shall be entitled to receive the base
                  salary  pursuant to Section  5.a. and the  insurance  benefits
                  discussed  immediately  above for a period  of  twelve  months
                  subsequent to such termination. The base salary shall continue
                  to be payable in equal installments in arrears on the last day
                  of the  month;  provided,  however if the  payment  under this
                  paragraph,  either alone or together with other payments which
                  the Employee has the right to receive from the Company,  would
                  constitute a  "parachute  payment" (as defined in Section 280G
                  of the Code) then the amount due  hereunder  shall be adjusted
                  to have a value of three times the base amount  under  Section
                  280G less $100.

                                       7
<PAGE>

         7.       Confidentiality.

                  a. The Employee  recognizes  that his  activities on behalf of
         the Company require  considerable  responsibility and trust. Relying on
         the ethical responsibilities and undivided loyalty of the Employee, the
         Company has and will and its  subsidiaries  have and will in the future
         entrust the Employee with highly sensitive confidential, restricted and
         proprietary information involving Confidential  Information (as defined
         below).

                  b.  For  the   purposes  of  this   Agreement,   "Confidential
         Information"  means any data or  information,  that is  material to the
         Company or its subsidiaries,  and not generally known by the public. To
         the  extent  consistent  with the  foregoing  definition,  Confidential
         Information includes (without  limitation):  (i) the financial records,
         marketing,  profit and performance reports,  pricing manuals,  training
         manuals,  marketing and pricing  procedures,  financing  methods of the
         Company  or its  subsidiaries,  and all other  business  records of the
         Company or its  subsidiaries;  (ii) the  identities of the customers of
         the Company or its  subsidiaries,  their  specific  demands,  and their
         current and  anticipated  requirements  for the products or services of
         the Company or its subsidiaries;  (iii) the business plans and internal
         financial   statements   and   projections   of  the   Company  or  its
         subsidiaries;  and iv. the  specifics  of any  specialized  products or
         services the Company or its  subsidiaries may offer or provide to their
         customers.

                  c. The  Employee  recognizes  the  proprietary  and  sensitive
         nature of the Company's and its subsidiaries' Confidential Information.
         The  Employee  agrees  to  abide  by  all  of  the  Company's  and  its
         subsidiaries   rules  and   procedures   designed   to  protect   their
         Confidential   Information  and  to  preserve  and  maintain  all  such
         information in strict  confidence  during the Employee's  employment by
         the  Company and as long  thereafter  as the  Confidential  Information
         remains,  in the sole  opinion  of the  Company  and its  subsidiaries,
         proprietary and confidential to the Company and its  subsidiaries.  The
         Employee  agrees  not to  use,  disclose  or in any  other  way  use or
         disseminate  any  Confidential  Information  to any person not properly
         authorized by the Company or its subsidiaries.

         8. Return of  Materials.  Upon the request of the  Company,  and in any
event,  upon the  termination  of the Employee's  employment,  the Employee must
return to the  Company  or its  subsidiaries  and leave at the  disposal  of the
Company or its subsidiaries,  all memoranda, notes, records, and other documents
pertaining  to  the  business  of  the  Company  and  its  subsidiaries,  or the
Employee's  specific  duties  for such  entities  (including  all copies of such
materials).  The Employee must also return to the Company and its  subsidiaries,
and leave at the  disposal of the Company and its  subsidiaries,  all  materials
involving any Confidential Information of the respective entities.

         9. Implementation. The covenants contained herein shall be construed as
covenants independent of one another, and as obligations distinct from any other
contract  between the Employee and the Company.  Any claim the Employee may have
against the Company shall not constitute a defense to enforcement by the Company
of this  Agreement.  The  covenants  made by the Employee  herein shall  survive
termination  of  the  Employee's  employment,   regardless  of  who  causes  the
termination and under what circumstances.

                                       8
<PAGE>

         10. Restrictive  Covenant. In consideration of the Company's employment
of the Employee,  the Employee agrees that, in addition to any other limitation,
prior to the end of the Term of Employment hereunder, the Date of Termination or
the completion of base salary payments pursuant to Section 6.d. above, whichever
is later, he will not, within a twenty-five  (25) mile radius of the location of
his office with the Company, or any of its subsidiaries,  manage,  operate or be
employed by,  participate in, or be connected in any manner with the management,
operation,  or control of any business  engaged in the  businesses  in which the
Company and any or its subsidiaries are engaged on the Date of Termination.  The
Employee further agrees,  regardless of the  circumstances of the termination of
employment, that for a period of twelve (12) months after the termination of his
employment  hereunder,  or the  completion of base salary  payments  pursuant to
section 6.d. above,  he will not solicit the business or patronage,  directly or
indirectly, from any customers of the Company or any of its subsidiaries and the
Employee  will not seek to or assist  others to  persuade  any  employee  of the
Company  engaged in similar work or related to the Company's work to discontinue
employment  with the Company or seek employment or engage in any business of the
Company.  Furthermore,  the Employee will not communicate to any person, firm or
corporation any information related to customer lists, prices,  secrets or other
Confidential  Information  which he might from time to time acquire with respect
to the business of the Company or its subsidiaries,  or any of their affiliates.
The Employee agrees to disclose the contents of this Agreement to any subsequent
employer for a period of twelve (12) months  following the Date of  Termination,
or  completion  of base salary  payments  pursuant to 6.d.  above,  whichever is
later.

         11. Remedies for Breach of Employment Contract.  Irreparable harm shall
be  presumed  if the  Employee  or the  Company  breaches  any  covenant of this
Agreement.  The faithful  observance  of all  covenants in this  Agreement is an
essential condition to the Employee's employment,  and the parties are depending
upon absolute compliance.  Damages would probably be very difficult to ascertain
if any nonmonetary  covenant in this Agreement were breached.  This Agreement is
intended to protect the proprietary  rights of the Company and its  subsidiaries
in many  important  ways.  In light of these facts,  the parties  agree that any
court of competent  jurisdiction  should  immediately  enjoin any breach of this
Agreement,  upon  the  request  of  the  nonbreaching  party,  and  the  parties
specifically  release the other party,  from the requirement to post any bond in
connection with a temporary or interlocutory  injunctive  relief,  to the extent
permitted by law.

         12.  Withholding.  Any  provision  of this  Agreement  to the  contrary
notwithstanding,  all payments made by the Company  hereunder to the Employee or
his estate or beneficiaries shall be subject to the withholding of such amounts,
if  any,  relating  to tax and  other  payroll  deductions  as the  Company  may
reasonably  determine  should be  withheld  pursuant  to any  applicable  law or
regulation.  In lieu of withholding  such amounts,  the Company may accept other
provisions to the end that they have sufficient  funds to pay all taxes required
by law to be withheld in respect of any or all such payments.

         13. Notices.  All notices,  requests,  demands and other communications
provided  for by this  Agreement  shall be in writing and shall be  sufficiently
given if and when  mailed in the  continental  United  States by  registered  or

                                       9
<PAGE>

certified mail, or personally  delivered to the party entitled  thereto,  at the
address stated below or to such changed  address as the addressee may have given
by a similar notice:

         To the Company:   Community Bankshares, Inc.
                           791 Broughton Street
                           Orangeburg, South Carolina 29115
                           Attn: Chief Executive Officer

         To the Employee:  William W. Traynham
                            _________________
                           Orangeburg, SC 29118

         14. Successors;  Binding  Agreement.  This Agreement shall inure to the
benefit  of  and  be   enforceable   by  the   Employee's   personal   or  legal
representatives,  executors,  administrators,  successors,  heirs, distributees,
devisees and legatees.  If the Employee  should die while any amount would still
be payable to him  hereunder  if he had  continued  to live,  all such  amounts,
except to the extent otherwise  provided under this Agreement,  shall be paid in
accordance with the terms of this Agreement to his devisee or other designee, or
if there be no such devisee or designee, to the Employee's estate.

         15. Modification,  Waiver or Discharge.  No provision of this Agreement
may be  modified,  waived or  discharged  unless such  waiver,  modification  or
discharge  is agreed to in  writing  signed by the  Employee  and an  authorized
officer  of the  Company.  No waiver by either  party  hereto at any time of any
breach by the other  party  hereto of, or  compliance  with,  any  condition  or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or  representations,  oral or otherwise,
express or implied,  with respect to the subject matter hereof have been made by
either  party which are not  expressly  set forth in this  Agreement;  provided,
however,  that this Agreement shall not supersede or in any way limit the right,
duties or obligations  that the Employee or the Company may have under any other
written agreement between such parties,  under any employee pension benefit plan
or employee welfare benefit plan as defined under the Employee Retirement Income
Security Act of 1974, as amended,  and  maintained by the Company,  or under any
established personnel practice or policy applicable to the Employee.

         16.  Governing  Law. The  validity,  interpretation,  construction  and
performance  of this  Agreement  shall be  governed  by the laws of the State of
South Carolina  without regard to the laws of such state governing  conflicts of
laws.

         17. Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not effect the  validity or  enforceability  of any other
provision of this Agreement, which latter shall remain in full force and effect.

                                       10
<PAGE>

         18. Miscellaneous.

                  (a) No  Right  of  Set-Off,  Etc.  There  shall be no right of
         set-off or  counterclaim,  in respect of any claim,  debt or obligation
         against any  payments to the  Employee,  his  beneficiaries  or estates
         provided for in this Agreement.

                  (b) No Adequate  Remedy At Law.  The Company and the  Employee
         recognize  that  each  party  will have no  adequate  remedy at law for
         breach by the other of any of the agreements  contained  herein and, in
         the event of any such breach, the Company and the Employee hereby agree
         and  consent  that the other  shall be  entitled  to decree of specific
         performance,   mandamus,   or  other  appropriate   remedy  to  enforce
         performance of such agreements.

                  (c)   Non-Assignability.   No  right,   benefit,  or  interest
         hereunder  shall  be  subject  to   anticipation,   alienation,   sale,
         assignment,  encumbrance,  charge, pledge, hypothecation,  or setoff in
         respect of any claim, debt or obligation, or to execution,  attachment,
         levy or  similar  process,  or  assignment  by  operation  of law.  Any
         attempt,  voluntary or involuntary,  to effect any action  specified in
         the immediately  preceding sentence shall, to the full extent permitted
         by law, be null,  void and of no effect.  Any of the  foregoing  to the
         contrary  notwithstanding,   this  provision  shall  not  preclude  the
         Employee  from  designating  one or more  beneficiaries  to receive any
         amount that may be payable after his death,  and shall not preclude the
         legal  representative of the Employee's estate from assigning any right
         hereunder to the person or persons  entitled thereto under his will or,
         in the case of intestacy applicable to his estate.

                  (d)  Enforcement of Agreement;  Attorneys'  Fees. In the event
         litigation  or  arbitration  is commenced  by the Employee  against the
         Company in seeking to obtain or enforce  any right,  benefit or payment
         under  this  Agreement  or to enforce  any  obligation  of the  Company
         described  herein,  then,  provided the Employee  shall prevail in such
         litigation  or  arbitration,  the Company shall be obligated to pay all
         reasonable   expenses(including   without   limitation  all  reasonable
         attorneys'  fees and court  costs) paid or incurred by the  Employee in
         connection with such litigation.

                  (e)  Arbitration.  Any  controversy or claim arising out of or
         relating  to this  Agreement  shall be settled  by binding  arbitration
         pursuant to the Federal  Arbitration Act or the South Carolina  Uniform
         Arbitration  Act,  as  applicable,  under the  applicable  rules of the
         American Arbitration  Association and judgment on any award rendered by
         the  arbitrator(s)  may be  entered  in any court  having  jurisdiction
         thereof;  provided  that  either  party may seek  injunctive  relief to
         enforce  provisions of this Agreement without initiating an arbitration
         proceeding. The location of any arbitration shall be Orangeburg,  South
         Carolina.  Any civil action seeking injunctive  relief,  challenging an
         arbitration  proceeding or award or otherwise related to this Agreement
         will be  instituted  and  maintained in the federal or state courts for
         Orangeburg County, South Carolina and the parties hereby consent to the
         personal jurisdiction of said courts.

                                       11
<PAGE>

                  (f)  Counterparts.  This  Agreement  may be executed in one or
         more counterparts, each of which shall be deemed to be an original, but
         of which together will constitute one and the same instrument.

                  (g) Survival.  The rights and remedies  provided by Sections 7
         through  18  of  this  Agreement   shall  survive  the  termination  of
         Employee's employment under this Agreement and the Term of Employment.

                  (h)  Attribution of Payments.  Any payment made to Employee by
         or on behalf of any  subsidiary  of the Company shall be deemed to have
         been made by the Company for purposes of this Agreement.

         IN WITNESS WHEREOF, the Employee and the Company (by action of its duly
authorized  officer)  have  executed  this  Agreement  on the date  first  above
written.

                              [SIGNATURES OMITTED]

                                       12

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