Document:

<PAGE>
                              EXHIBIT 10.3 SUMMARY

         The following officers and employees are participants in the First
Community Bancshares, Inc. Executive Retention Plan and as such are parties to
Executive Retention Agreements in the form attached hereto as part of this
Exhibit 10.3.

         OFFICER NAME                                       POSITION
         ------------                                       --------

Robert L. Buzzo                              Vice President & Secretary
                                             First Community Bancshares, Inc.
                                             President
                                             First Community Bank, N. A.

E. Stephen Lilly                             Chief Operating Officer
                                             First Community Bancshares, Inc.
                                             Senior Vice President & Chief
                                             Operating Officer, First Community
                                             Bank, N. A.

John M. Mendez                               President & Chief Executive Officer
                                             First Community Bancshares, Inc.
                                             Executive Vice President
                                             First Community Bank, N. A.

Janice K. Miller                             Senior Vice President - Marketing
                                             First Community Bank, N. A.

Robert L. Schumacher                         Chief Financial Officer
                                             First Community Bancshares, Inc.
                                             Senior Vice President - Finance &
                                             Secretary, First Community Bank,
                                             N. A.

Stephen H. Warden                            Senior Vice President & Senior
                                             Lending Officer, First Community
                                             Bank, N. A.

Ruth A. White                                Administrative Assistant
                                             First Community Bank, N. A.

<PAGE>

         Exhibit 10.3

         FIRST COMMUNITY BANCSHARES, INC. AND AFFILIATES

         EXECUTIVE RETENTION PLAN

         AND AGREEMENT

                  THIS PLAN AND AGREEMENT is made and entered into this 2nd day
         of February, 2000, by and between First Community Bancshares, Inc., a
         corporation, organized and existing under the laws of the State of
         Nevada, (hereinafter, collectively with its affiliates, referred to as
         the "Company"), and ____________________, an Executive of the Company
         (hereinafter referred to as the "Executive").

                  WHEREAS, the Executive has faithfully served the Company and
         it is the consensus of the Board of Directors (hereinafter referred to
         as the "Board"), that the Executive's services have been of exceptional
         merit, in excess of the compensation paid and an invaluable
         contribution to the profits and position of the Company in its field of
         activity. The Board further believes that the Executive's experience,
         knowledge of corporate affairs, reputation and industry contacts are of
         such value, and the Executive's continued services so essential to the
         Company's future growth and profits, that it would suffer severe
         financial loss should the Executive terminate his service with the
         Company.

                  WHEREAS, the Board has adopted this First Community
         Bancshares, Inc.. Executive Retention Plan and Agreement (hereinafter
         referred to as the "Retention Plan and Agreement") and it is the desire
         of the Company and Executive to enter into this plan and agreement by
         which the Company will agree to make certain payments to the Executive
         upon the Executive's retirement or disability and to the Executive's
         beneficiary(ies) in the event of the Executive's death.

                  WHEREAS, it is the intent of the parties hereto that this
         Retention Plan and Agreement be considered an unfunded arrangement
         maintained primarily to provide supplemental retirement benefits for
         the Executive, and to be considered a non-qualified benefit plan for
         purposes of the Employee Retirement Income Security Act of 1974, as
         amended ("ERISA"). The Executive is fully advised of the Company's
         financial status and has had substantial input in the design and
         operation of this benefit plan.

                  NOW THEREFORE, in consideration of services the Executive has
         performed in the past and those to be performed in the future, and
         based upon the mutual promises and covenants herein contained, the
         Company and the Executive agree as follows:

         I.       DEFINITIONS

                  A.       Effective Date:

                           The Effective Date of the Plan shall be February 2,
                           2000.

                  B.       Plan Year:

                           Any reference to the "Plan Year" shall mean a
                           calendar year from January 1st to December 31st.

                  C.       Retirement Date:

                           Retirement Date shall mean retirement from service
                           with the Company which becomes effective on the first
                           day of the calendar month following the month in
                           which the Executive reaches age sixty two (62) or
                           such later date as the Executive may actually retire.

                  D.       Termination of Service:

Termination of Service shall mean the Executive's voluntary resignation or the
Company's discharge of the Executive, in either case, prior to Normal Retirement
Age, death or disability.

                                       51
<PAGE>

                  E.       Pre-Retirement Account:

                           A Pre-Retirement Account shall be established as a
                           liability reserve account on the books of the Company
                           for the benefit of the Executive. Prior to the
                           Executive's Termination of Service or the Executive's
                           Retirement, whichever event shall first occur, or
                           Prior to the Executive's Retirement Date, such
                           liability reserve account shall be increased or
                           decreased each Plan Year, until the aforestated event
                           occurs, by the Index Retirement Benefit. For further
                           reference on the definition(s) as set forth herein,
                           please see Exhibit "A" attached hereto. Said Exhibit
                           "A" is referred to herein for illustrative purposes
                           only. The Company does not promise any amounts as set
                           forth in Exhibit "A".

                  F.       Index Retirement Benefit:

The Index Retirement Benefit for each Executive in the Retention Plan for each
Plan Year shall be equal to the excess (if any) of the Index for that Plan Year
over the Cost of Funds Expense for that Plan Year. For further reference on the
definition(s) as set forth herein, please see Exhibit "A" attached hereto. Said
Exhibit "A" is referred to herein for illustrative purposes only. The Company
does not promise any amounts as set forth in Exhibit "A".

                  G.       Index:

                           The Index for any Plan Year shall be the aggregate
                           annual after-tax income from the life insurance
                           contract(s) described hereinafter as defined by FASB
                           Technical Bulletin 85-4. This Index shall be applied
                           as if such insurance contract(s) were purchased on
                           the Effective Date of the Executive Plan.

                           Insurance Company:
                           Policy Form:
                           Policy Name:
                           Insured's Age and Sex:
                           Riders:
                           Ratings:
                           Option:
                           Face Amount:
                           Premiums Paid:
                           Number of Premium Payments:
                           Purchase Date

                           If such contracts of life insurance are not purchased
                           or are subsequently surrendered or lapsed, then the
                           Bank shall receive annual policy illustrations that
                           assume the above-described policies were purchased or
                           had not subsequently been surrendered or lapsed,
                           which illustration will be received from the
                           respective insurance companies and will indicate the
                           increase in policy values for purposes of calculating
                           the amount of the Index.

                           In either case, references to the life insurance
                           contracts are merely for purposes of calculating a
                           benefit. The Bank has no obligation to purchase such
                           life insurance and, if purchased, the Executives and
                           their beneficiary(ies) shall have no ownership
                           interest in such policy and shall never have a
                           greater interest in the benefits under this Retention
                           Plan and Agreement than that of an unsecured creditor
                           of the Bank.

                  H.       Opportunity Cost :

The Opportunity Cost for any Plan Year shall be calculated by taking the sum of
the amount of premiums for the life insurance policies described in the
definition of "Index" plus the amount of any after- tax benefits paid to any
Executive pursuant to the Retention Plan and Agreement (Paragraph II
hereinafter) plus the amount of all previous years after-tax Opportunity Costs,
and multiplying that sum by the Average Opportunity Cost. For further reference
on the definition(s) as set forth herein, please see Exhibit "A" attached
hereto. Said Exhibit "A" is referred to herein for illustrative purposes only.
The Company does not promise any amounts as set forth in Exhibit "A".

                  I.       Change of Control:

For purposes of this Retention Plan and Agreement, change of control shall mean
the purchase or other acquisition by any person, entity or group of persons,
within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934
(the "Act"), or any comparable successor provision, of beneficial ownership
within the meaning of Rule 13d-3 promulgated under the Act, within any twelve
month period, of 30 percent or more of the outstanding shares of common stock of
First Community Bancshares, Inc. (the

                                       52
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"Holding Company"); or the approval by the stockholders of the Holding Company
of a reorganization, merger, consolidation, share exchange or similar
transaction pursuant to which persons who were stockholders of the Holding
Company immediately prior to the effective date of such transaction do not,
immediately after such date, own more than 60 percent of the combined voting
power entitled to vote generally in the election of directors of the surviving
or successor corporation; or a liquidation or dissolution of the Holding
Company; or the sale of all or substantially all of its assets.

                  J.       Normal Retirement Age:

Normal Retirement Age shall mean the date on which the Executive attains age
sixty-two (62).

                  K.       Average Opportunity Cost:

Average Opportunity Cost is the average annual after tax cost of
interest-bearing deposit liabilities computed on a calendar year basis.

                  L.       For Cause:

The term for "cause" shall mean the commission of acts or omissions by the
executive which constitute fraud, dishonesty, excessive absenteeism without
approval of the employer (provided such absenteeism is not caused by
disability), a criminal act involving the person or property of others or the
public generally, gross neglect of duty resulting in substantial loss to the
employer or any affiliate, or willful failure to carry out reasonable and legal
duties and responsibilities consistent with his duties. If a dispute arises as
to discharge for "cause", such dispute shall be resolved by arbitration as set
forth in this Retention Plan and Agreement.

         II.      INDEX BENEFITS

                  A.       Retirement Benefits:

An Executive who remains employed by the Company until the Normal Retirement Age
shall be entitled to receive the balance in the Pre-Retirement Account in one
hundred twenty (120) equal monthly installments commencing thirty (30) days
following the Executive's retirement. In addition to these payments and
commencing in conjunction therewith, the Index Retirement Benefit, if any, for
each Plan Year subsequent to the Executive's retirement, and including the
remaining portion of the Plan Year following said retirement, shall be paid to
the Executive until the Executive's death.

                  B.       Termination of Employment:

No benefits will be paid to the Executive or his beneficiary(ies) in the event
of termination of employment for any reason other than the retirement,
disability or death of the Executive or pursuant to Article IV, hereinafter.

                  C.       Death:

Should the Executive die prior to having received the balance of the
Pre-Retirement Account payable to the Executive under the terms of this
Retention Plan, the unpaid balance shall be paid in a lump sum to the individual
or individuals the Executive may have designated in writing and filed with the
Company. In the absence of any effective designation of beneficiary(ies), the
unpaid balance shall be paid as set forth herein to the duly qualified executor
or administrator of the Executive's estate. Said payment due hereunder shall be
made the first day of the second month following the death of the Executive.

                  D.       Death Benefits:

Except as set forth above, there is no death benefit provided under this
Agreement.

         III.     RESTRICTION UPON FUNDING

                  The Company shall have no obligation to set aside, earmark or
                  entrust any fund or money with which to pay its obligations
                  under this Retention Plan and Agreement. The Executive,
                  his/her beneficiary(ies), or any successor in interest shall
                  be and remain simply a general creditor of the Company in the
                  same manner as any other creditor having a general claim for
                  matured and unpaid compensation. The Company reserves the
                  absolute right, at its sole discretion, to either fund the
                  obligations undertaken by this Retention Plan and Agreement or
                  to refrain from funding the same and to determine the extent,
                  nature and method of such funding. Should the Company elect to
                  fund this Retention Plan, in whole or in part, at no time
                  shall any Executive be deemed to have any lien nor right,
                  title or interest in or to any specific funding investment or
                  to any assets of the Company.

                                       53
<PAGE>

                  If the Company elects to invest in a life insurance,
                  disability or annuity policy upon the life of the Executive,
                  then the Executive shall assist the Company by freely
                  submitting to a physical exam and supplying such additional
                  information necessary to obtain such insurance or annuities.

         IV.      TERMINATION OF SERVICE AFTER A CHANGE OF CONTROL

                  If the Executive suffers a Termination of Service, other than
                  for cause, during the twelve months prior to a Change in
                  Control, or at anytime thereafter, (unless the Executive
                  voluntarily terminates his employment within 90 days following
                  the effective date of the change in control), then the
                  Executive shall receive all benefits provided for in this
                  Retention Plan and Agreement upon death (if applicable),
                  disability or attaining Normal Retirement Age, as if the
                  Executive had been continuously employed by the Company until
                  such event.

         V.       COMPETITION AFTER TERMINATION OF SERVICE

                  No benefits shall be payable if, at anytime within three (3)
                  years following the Executive's Termination of Service or
                  Retirement, the Executive, without the prior written consent
                  of the Company, engages in, becomes interested in, directly or
                  indirectly, as a sole proprietor, as a partner in a
                  partnership, or as a substantial shareholder in a corporation,
                  or becomes associated with, in the capacity of employee,
                  director, officer, principal, agent, trustee or in any other
                  capacity whatsoever, any enterprise conducted in the trading
                  area (within a 50 mile radius from the Company's main office
                  and 25 miles from any branch office) of the business of the
                  Company, which enterprise is, or may be deemed to be,
                  competitive with any business carried on by the Company as of
                  the date of the Executive's Termination of Employment or
                  retirement.

         VI.      SOLICIATION AFTER TERMINATION OF EMPLOYMENT

                  No benefits shall be payable if, at anytime within five (5)
                  years following the Executive's Termination of Service or
                  Retirement, the Executive, without prior written consent of
                  the Company, solicits any employee of the Company for the
                  purpose of hiring such employee away from the Company.
                  Likewise, no benefits shall be payable if, during such five
                  year period, the Executive, without the prior written consent
                  of the Company, solicits any entity or person that was a
                  customer of the Company within twelve months prior to such
                  termination for the purpose of obtaining such customer's
                  business relationship. VII. MISCELLANEOUS

                  A.       Alienability and Assignment Prohibition:

Neither the Executive, nor the Executive's surviving spouse, nor any other
beneficiary(ies) under this Retention Plan shall have any power or right to
transfer, assign, anticipate, hypothecate, mortgage, commute, modify or
otherwise encumber in advance any of the benefits payable hereunder nor shall
any of said benefits be subject to seizure for the payment of any debts,
judgments, alimony or separate maintenance owed by the Executive or the
Executive's beneficiary(ies), nor be transferable by operation of law in the
event of bankruptcy, insolvency or otherwise. In the event the Executive or any
beneficiary attempts assignment, commutation, hypothecation, transfer or
disposal of the benefits hereunder, the Company's liabilities hereunder shall
forthwith cease and terminate.

                  B.       Binding Obligation of the Bank and any Successor in
                           Interest:

The Company shall not merge or consolidate into or with another bank or holding
company or sell substantially all of its assets to another bank, firm or person
until such bank, firm or person expressly agrees, in writing, to assume and
discharge the duties and obligations of the Company under this Retention Plan.
This Retention Plan shall be binding upon the parties hereto, their successors,
beneficiaries, heirs and personal representatives.

                  C.       Amendment or Revocation:

It is agreed by and between the parties hereto that, during the lifetime of the
Executive, this Retention Plan may be amended or revoked at any time or times,
in whole or in part, by the mutual written consent of the Executive and the
Company.

                  D.       Gender:

Whenever in this Retention Plan and Agreement words are used in the masculine or
feminine gender, they shall be read and construed as in the masculine or
feminine gender, whenever they should so apply.

                                       54
<PAGE>

                  E.       Effect on Other Bank Benefit Plans:

Nothing contained in this Retention Plan and Agreement shall affect the right of
the Executive to participate in or be covered by any qualified or non-qualified
pension, profit-sharing, group, bonus or other supplemental compensation or
fringe benefit plan constituting a part of the Company's existing or future
compensation structure.

                  F.       Headings:

Headings and subheadings in this Retention Plan and Agreement are inserted for
reference and convenience only and shall not be deemed a part of this Retention
Plan and Agreement.

                  G.       Applicable Law:

The validity and interpretation of this Retention Plan and Agreement shall be
governed by the laws of the Commonwealth of Virginia.

                  H.       12 U.S.C.Section 1828(k):

Any payments made to the Executive pursuant to this Retention Plan and
Agreement, or otherwise, are subject to and conditioned upon their compliance
with 12 U.S.C.Section 1828(k) or any regulations promulgated thereunder.

                  I.       Partial Invalidity:

If any term, provision, covenant, or condition of this Retention Plan and
Agreement is determined by an arbitrator or a court, as the case may be, to be
invalid, void, or unenforceable, such determination shall not render any other
term, provision, covenant, or condition invalid, void, or unenforceable, and the
Retention Plan and Agreement shall remain in full force and effect
notwithstanding such partial invalidity.

                  J.       Employment:

No provision of this Retention Plan and Agreement shall be deemed to restrict or
limit any existing employment agreement by and between the Company and the
Executive, nor shall any conditions herein create specific employment rights to
the Executive nor limit the right of the Employer to discharge the Executive
with or without cause. In a similar fashion, no provision shall limit the
Executive's rights to voluntarily sever the Executive's employment at any time.

                  K.       Exhibit A:

For further reference on the definition(s) as set forth herein, please see
Exhibit "A" attached hereto. Said Exhibit "A" is referred to herein for
illustrative purposes only. The Company does not promise any amounts as set
forth in Exhibit "A".

         VIII.    ERISA PROVISION

                  A.       Named Fiduciary and Plan Administrator:

The "Named Fiduciary and Plan Administrator" of this Retention Plan and
Agreement shall be First Community Bank, N.A., until its resignation or removal
by the Board. As Named Fiduciary and Plan Administrator, the Bank shall be
responsible for the management, control and administration of the Retention Plan
and Agreement. The Named Fiduciary may delegate to others certain aspects of the
management and operation responsibilities of the Retention Plan and Agreement
including the employment of advisors and the delegation of ministerial duties to
qualified individuals.

                  B.       Claims Procedure and Arbitration:

In the event a dispute arises over benefits under this Retention Plan and
Agreement and benefits are not paid to the Executive (or to the Executive's
beneficiary(ies) in the case of the Executive's death) and such claimants feel
they are entitled to receive such benefits, then a written claim must be made to
the Named Fiduciary and Plan Administrator named above within sixty (60) days
from the date payments are refused. The Named Fiduciary and Plan Administrator
shall review the written claim and if the claim is denied, in whole or in part,
they shall provide in writing within sixty (60) days of receipt of such claim
its specific reasons for such denial, reference to the provisions of this
Retention Plan and Agreement upon which the denial is based and any additional
material or information necessary to perfect the claim. Such written notice
shall further indicate the additional steps to be taken by claimants if a
further review of the claim denial is desired. A claim shall be deemed denied if
the Named Fiduciary and Plan Administrator fail to take any action within the
aforesaid sixty-day period.

                                       55
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If claimants dispute the benefit denial based upon completed performance of this
Retention Plan and Agreement or the meaning and effect of the terms and
conditions thereof, then claimants may submit the dispute to an Arbitrator for
final arbitration. The Arbitrator shall be selected by mutual agreement of the
Company and the claimants. The Arbitrator shall operate under any generally
recognized set of arbitration rules. The parties hereto agree that they and
their heirs, personal representatives, successors and assigns shall be bound by
the decision of such Arbitrator with respect to any controversy properly
submitted to it for determination.

Where a dispute arises as to the Company's discharge of the Executive for
"Cause", such dispute shall likewise be submitted to arbitration as
above-described; and the parties hereto agree to be bound by the decision
thereunder.
                  IN WITNESS WHEREOF, the parties hereto acknowledge that each
         has carefully read this Retention Plan and Agreement and executed the
         original thereof on the ______ day of _________, ______, and that, upon
         execution, each has received a conforming copy.

                                   FIRST COMMUNITY BANCSHARES, INC.
                                   BLUEFIELD, VIRGINIA

                                   BY:
                                       -----------------------------------
                                       CHAIRMAN OF THE BOARD OF DIRECTORS

                                   BY:
                                       -----------------------------------
                                       EXECUTIVE

-------------------------------
WITNESS

-------------------------------
WITNESS

                                    AMENDMENT
                     TO THE FIRST COMMUNITY BANCSHARES, INC.
                   AND AFFILIATES EXECUTIVE RETENTION PLAN AND
                                    AGREEMENT

         This Amendment made and entered into on the 11th day of May 2000, by
and between First Community Bancshares, Inc., a Bank organized and existing
under the laws of the State of Nevada, hereinafter referred to as the, "Bank",
and _______________, a Key Employee and Executive of the Bank, hereinafter
referred to as the, "Executive", shall effectively amend the First Community
Bancshares, Inc. and Affiliates Executive Retention Plan Agreement as
specifically set forth herein pursuant to Subparagraph VII(C) of said Agreement.
Subparagraph I(G) titled, "Index", of the agreement shall be amended to include
the following information:

Insurance Company               Jefferson Pilot Life Insurance Company
Policy Form:                    Flexible Premium Adjustable Life
Policy Name:                    Executive Security Plan VI
Insured's Age and Sex:          __/______
Riders:                         None
Ratings:                        According to the health of the proposed insured
Option:                         Level
Face Amount:                    $768,000
Premiums Paid:                  $300,000
Number of Premium Payments      Single
Purchase Date                   February 2, 2000

Insurance Company               Massachusetts Mutual Life Insurance Company
Policy Form:                    Flexible Premium Adjustable Life
Policy Name:                    Strategic Life Exec
Insured's Age and Sex:          __/_____
Riders:                         None
Ratings:                        According to the health of the proposed insured
Option:                         Level
Face Amount:                    $804,000
Premiums Paid:                  $300,000
Number of Premium Payments      Single
Purchase Date                   February 3, 2000

         This Amendment shall be effective the 11th day of May, 2000, and the
information set forth hereinabove shall be inserted in Subparagraph I(G) of said
participant agreement. To the extent that any term, provision, or paragraph of
said agreement is not specifically amended herein, or in any other amendment
thereto, said term, provision or paragraph shall remain in full force and effect
as set forth in said agreement.

         IN WITHNESS WHEREOF, the parties hereto acknowledge that each has
carefully read this Amendment and executed the original thereof on the 11th day
of May, 2000, and that, upon execution, each has received a conforming copy.

                                         First Community Bancshares, Inc.

--------------------------               ----------------------------------
Witness                                  By

--------------------------               ----------------------------------
Witness                                  Executive

                                       56
<PAGE>

BENEFICIARY DESIGNATION FORM
FOR THE EXECUTIVE
RETENTION PLAN AND AGREEMENT

PRIMARY DESIGNATION:

     NAME                       ADDRESS            RELATIONSHIP
     ----                       -------            ------------

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

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

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

SECONDARY (CONTINGENT) DESIGNATION:

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

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

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

All sums payable under the Executive Retention Plan and Agreement, by reason of
my death, shall be paid to the Primary Beneficiary, if he, she or they survive
me, and if no Primary Beneficiary shall survive me, then to the Secondary
(Contingent) Beneficiary.

----------------------------------    ------------------------------------
SIGNATURE OF PARTICIPANT              DATE

                                       57
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         FIRST COMMUNITY BANCSHARES, INC.
         LIFE INSURANCE
         ENDORSEMENT METHOD SPLIT DOLLAR PLAN
         AND AGREEMENT

         Insurer:                    Jefferson Pilot Life Insurance Company
                                     Massachusetts Mutual Life Insurance

         Policy Number:              JP5098233
                                     0 036 131

         Company:                    First Community Bancshares, Inc.
                                     and it's Affiliates

         Insured:

         Relationship of Insured
         to Company:                 Executive

         The respective rights and duties of the Company and the Insured in the
         above-referenced policy shall be pursuant to the terms set forth below:

         I.       DEFINITIONS

                  Refer to the policy contract for the definition of all terms
                  in this Plan and Agreement not defined herein.

         II.      POLICY TITLE AND OWNERSHIP

Title and ownership shall reside in the Company for its use and for the use of
the Insured all in accordance with this Plan and Agreement. Where the Company
and the Insured (or assignee, with the consent of the Insured) mutually agree to
exercise the right to increase the coverage under the subject Split Dollar
policy, then, in such event, the rights, duties and benefits of the parties to
such increased coverage shall continue to be subject to the terms of this Plan
and Agreement.

         III.     BENEFICIARY DESIGNATION RIGHTS

The Insured (or assignee) shall have the right and power to designate a
beneficiary or beneficiaries to receive the Insured's share of the proceeds
payable upon the death of the Insured, and to elect and change a payment option
for such beneficiary, subject to any right or interest the Company may have in
such proceeds, as provided in this Plan and Agreement.

         IV.      PREMIUM PAYMENT METHOD

The Company shall pay, in a single deposit, an amount equal to the premiums
calculated under provisions of the Executive Retention Plan and Agreement.

         V.       TAXABLE BENEFIT

Annually the Insured will receive a taxable benefit equal to the assumed cost of
insurance as required by the Internal Revenue Service. The Company (or its
administrator) will report to the Insured the amount of imputed income each year
on Form W-2 or its equivalent.

         VI.      ENTITLEMENT TO THE CASH SURRENDER VALUE OF THE POLICY

The Company shall be entitled to an amount equal to the policy's cash value, as
that term is defined in the policy contract, less any applicable surrender
charges. Such cash value shall be determined and paid as of the date of death.

         VII.     DIVISION OF DEATH PROCEEDS

Subject to Paragraphs VI, IX, and XIV herein, the division of the death proceeds
of the policy is as follows:

                  A.       Should the Insured be employed by the Company,
                           disabled or retired on the date of death, the
                           Insured's beneficiary(ies), designated in accordance
                           with Paragraph III, shall be entitled to an

                                       58
<PAGE>

                           amount equal to eighty percent (80%) of the net at
                           risk insurance portion of the proceeds. The net at
                           risk insurance portion is the total proceeds less the
                           cash value of the policy.

                  B.       The Company shall be entitled to the remainder of
                           such proceeds.

                  C.       Should the Insured not be employed by the Company for
                           reasons other than disability or retirement at the
                           time of his death, no benefits will be paid the
                           insured's beneficiary(ies).

                  D.       The Company and the Insured (or assignees) shall
                           share in any interest due on the death proceeds on a
                           pro rata basis as the proceeds due each respectively
                           bears to the total proceeds, excluding any such
                           interest.

         VIII.    TERMINATION OF PLAN AND AGREEMENT

This Plan and Agreement shall terminate upon the insured leaving the employment
of the Company (voluntarily or involuntarily).

Except as provided above, this Plan and Agreement shall terminate upon
distribution of the death benefit proceeds and the cash value in accordance with
Paragraph VI and VII above.

         IX.      INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

The Insured may not, without the written consent of the Company, assign to any
individual, trust or other organization, any right, title or interest in the
subject policy nor any rights, options, privileges or duties created under this
Plan and Agreement.

         X.       PLAN AND AGREEMENT BINDING UPON THE PARTIES

This Plan and Agreement shall bind the Insured and the Company, their heirs,
successors, personal representatives and assigns.

         XI.      ERISA PROVISIONS

The following provisions are part of this Plan and Agreement and are intended to
meet the requirements of the Employee Retirement Income Security Act of 1974
("ERISA"):
                  A.       Named Fiduciary and Plan Administrator.

The "Named Fiduciary and Plan Administrator" of this Endorsement Method Split
Dollar Plan and Agreement shall be First Community Bank, N.A. until resignation
or removal by the Board of Directors. As Named Fiduciary and Plan Administrator,
the Bank shall be responsible for the management, control and administration of
this Split Dollar Plan and Agreement as established herein. The Named Fiduciary
may delegate to others certain aspects of the management and operation
responsibilities of the Plan, including the employment of advisors and the
delegation of any ministerial duties to qualified individuals.
                  B.       Funding Policy.

The funding policy for this Split Dollar Plan and Agreement shall be to maintain
the subject policy in force by purchasing a single premium insurance product.
                  C.       Basis of Payment of Benefits.

Direct payment by the Insurer is the basis of payment of benefits under this
Plan and Agreement, with those benefits in turn being based on the payment of
premiums as provided in the Executive Retention Plan and Agreement.
                  D.       Claim Procedures.

Claim forms or claim information as to the subject policy can be obtained by
contacting Benmark, 1100 Circle 75 Parkway, Suite 300, Atlanta, Georgia 30339.
When the Named Fiduciary has a claim which may be covered under the provisions
described in the insurance policy, they should contact the office named above,
and they will either complete a claim form and forward it to an authorized
representative of the Insurer or advise the named Fiduciary what further
requirements are necessary. The Insurer will evaluate and make a decision as to
payment. If the claim is payable, a benefit check will be issued in accordance
with the terms of this Plan and Agreement.

In the event that a claim is not eligible under the policy, the Insurer will
notify the Named Fiduciary of the denial pursuant to the requirements under the
terms of the policy. If the Named Fiduciary is dissatisfied with the denial of
the claim and wishes to contest such claim denial, they should contact the
office named above and they will assist in making inquiry to the Insurer. All
objections to the Insurer's actions should be in writing and submitted to the
office named above for transmittal to the Insurer.

                                       59
<PAGE>

         XII.     GENDER

Whenever in this Plan and Agreement words are used in the masculine or neuter
gender, they shall be read and construed as in the masculine, feminine or neuter
gender, whenever they should so apply.

         XIII.    INSURANCE COMPANY NOT A PARTY TO THIS PLAN AND AGREEMENT

The Insurer shall not be deemed a party to this Plan and Agreement, but will
respect the rights of the parties as herein developed upon receiving an executed
copy of this Plan and Agreement. Payment or other performance in accordance with
the policy provisions shall fully discharge the Insurer for any and all
liability.

         XIV.     CHANGE OF CONTROL

For purposes of this Plan and Agreement, Change of Control shall mean the
purchase or other acquisition by any person, entity or group of persons, within
the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 (the
"Act"), or any comparable successor provision, of beneficial ownership within
the meaning of Rule 13d-3 promulgated under the Act, within any twelve month
period, of 30 percent or more of the outstanding shares of common stock of First
Community Bancshares, Inc. (the "Holding Company"); or the approval by the
stockholders of the Holding Company of a reorganization, merger, consolidation,
share exchange or similar transaction pursuant to which persons who were
stockholders of the Holding Company immediately prior to the effective date of
such transaction or series of transactions do not, immediately after such date,
own more than 60 percent of the combined voting power entitled to vote generally
in the election of directors of the surviving or successor corporation; or a
liquidation or dissolution of the Holding Company; or the sale of all or
substantially all of its assets.

Upon a Change of Control, if the Insured's employment is subsequently
terminated, except for Cause, then the Insured shall be one hundred percent
(100%) vested in the benefits promised in this Plan and Agreement. Therefore,
upon the death of the Insured, the Insured's beneficiary(ies) (designated in
accordance with Paragraph III) shall receive the death benefit provided herein
as if the Insured had died while employed by the Company, whether or not such
Insured remains employed by the Company.

Cause for this Plan and Agreement shall mean, any of the following that result
in a material adverse effect on the Company: (i) gross negligence or gross
neglect; (ii) conviction for a felony involving fraud or dishonesty; (iii) a
breach of fiduciary duty involving personal profit; or (iv) excessive
absenteeism without approval of the employer (provided such absenteeism is not
caused by disability). If a dispute arises as to discharge for "cause", such
dispute shall be resolved by arbitration as set forth in the Executive Retention
Plan and Agreement.

         XV.      AMENDMENT OR REVOCATION

It is agreed by and between the parties hereto that, during the lifetime of the
Insured, this Plan and Agreement may be amended or revoked at any time or times,
in whole or in part, by the mutual written consent of the Insured and the
Company.

         XVI.     EFFECTIVE DATE

The Effective Date of this Plan and Agreement shall be ____________________.

XVII.    SEVERABILITY AND INTERPRETATION

If a provision of this Plan and Agreement is held to be invalid or
unenforceable, the remaining provisions shall nonetheless be enforceable
according to their terms. Further, in the event that any provision is held to be
overbroad as written, such provision shall be deemed amended to narrow its
application to the extent necessary to make the provision enforceable according
to law and enforced as amended.

         XVIII.   APPLICABLE LAW

The validity and interpretation of this Plan and Agreement shall be governed by
the laws of the Commonwealth of Virginia.

Executed at ____________, ____________ this ______ day of _____________, ______.

                                            FIRST COMMUNITY BANCSHARES, INC.
                                            Bluefield, Virginia

                                 By:
---------------------------         ---------------------------------
Witness                                                          Title

--------------------------        ------------------------------------
Witness                              Insured

                                       60
<PAGE>

BENEFICIARY DESIGNATION FORM
FOR THE INSURANCE ENDORSEMENT METHOD
SPLIT DOLLAR PLAN AND AGREEMENT

PRIMARY DESIGNATION:

     NAME                      ADDRESS            RELATIONSHIP
     ----                      -------            ------------

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

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

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

SECONDARY (CONTINGENT) DESIGNATION:

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

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

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

All sums payable under the Life Insurance Endorsement Method Split Dollar Plan
and Agreement by reason of my death shall be paid to the Primary Beneficiary, if
he or she survives me, and if no Primary Beneficiary shall survive me, then to
the Secondary (Contingent) Beneficiary.

----------------------------------    ------------------------------------
Signature of Participant              Date

                                       61<PAGE>
                              EXHIBIT 10.4 SUMMARY

         The following directors are participants in the First Community
Bancshares, Inc. 2001 Director Stock Option Plan. As part of the Plan, each of
the listed directors have executed a Stock Option Agreement (in the form
attached hereto as part of Exhibit 10.4) pursuant to the Plan which Agreement
grants 5,500 options to each director listed below at the option price of $23.91
with a grant date of November 12, 2001:

Director Name
-------------

Sam Clark

Allen T. Hamner

B. W. Harvey

I. Norris Kantor

A. A. Modena

Robert E. Perkinson, Jr.

William P. Stafford

William P. Stafford, II

W. W. Tinder, Jr.

<PAGE>

Exhibit 10.4

THE SECURITIES ISSUABLE PURSUANT TO THIS OPTION AGREEMENT MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED EXCEPT IN A TRANSACTION WHICH IN THE OPINION OF COUNSEL
FOR THE OPTIONEE REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, IS
IN COMPLIANCE WITH THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES
LAWS.

                        FIRST COMMUNITY BANCSHARES, INC.

                        DIRECTOR'S STOCK OPTION AGREEMENT

         THIS DIRECTOR'S STOCK OPTION AGREEMENT, effective as of the close of
business November 12, 2001, by and between First Community Bancshares, Inc., a
Nevada corporation (herein referred to as the "Corporation") and _________
(herein referred to as the "Optionee").

                               W I T N E S S E T H

WHEREAS, the Board of Directors of the Corporation (hereinafter referred to as
the "Board") has adopted the First Community Bancshares, Inc. 2001 Directors
Stock Option Plan (hereinafter the "Plan") to encourage and facilitate
investment in the common stock of the Corporation by nonemployee directors of
the Corporation, whose efforts are expected to contribute to its future growth
and continued success;

         WHEREAS, the Plan is administered by the Board; and

         WHEREAS, the Board has voted to grant the Optionee options to purchase
common stock in the Corporation pursuant to the terms of the Plan; and has
further authorized the execution and delivery of this Agreement.

         NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, it is hereby agreed as follows:

         1.       Grant of Option. Subject to the provisions set forth herein
and the terms and conditions of the Plan, the terms of which are hereby
incorporated by reference, the Corporation hereby grants to the Optionee an
option to purchase from the Corporation the number of shares of common stock,
par value $1.00 per share (the "Shares"), at the option price per share, and on
the schedule, all as set forth below. At the time of exercise of the option,
payments of the purchase price must be made in cash, or if the Board in its
discretion agrees to so accept, then by the delivery to the Corporation of other
common stock owned by the Optionee, valued at its fair market value on the date
of exercise, or in some combination of cash and such common stock so valued.

                  (a)      Number of Shares Subject to Option: _________.

                  (b)      Option Price Per Share: $______.

                  (c)      Date of Grant: _____________.

                  (d)      Vesting: 100 percent on December 17, 2001.

         2.       Conditions to Exercise of Option. The exercise of the option
is conditioned upon the acceptance by the Optionee of the terms hereof as
evidenced by his or her execution of this Agreement in the space provided
therefor at the end hereof and the return of an executed copy to the Secretary
of the Corporation no later than December 31, 2001. Notwithstanding any other
provision of this Plan, no option may be exercised after the tenth anniversary
of the Date of Grant.

         3.       Exercise of Option. Subject to paragraph 2 hereof, this Option
may be exercised at any time through the period ending two years after the date
the Optionee ceases to serve as a director of the Corporation.

In the event of a change in control, all options previously granted to a
noncontinuing director but not vested shall continue to vest as if the Optionee
had remained a director. All options held by such person shall be exercisable at
any time after such termination (subject to any vesting requirements) until the
second anniversary of the date the Optionee ceases to serve as a director or one
year after his or her death, whichever first occurs. Upon the conclusion of such
post-termination exercise period, this option shall be deemed cancelled with
respect to all remaining Shares.

Written notice of an election to exercise any portion of the option specifying
the portion thereof being exercised and the exercise date, shall be given by the
Optionee or his lawfully appointed personal representative in the event of the
Optionee's death (a) by delivering such notice to the principal executive
offices of the Corporation no later than the exercise date, or (b) by mailing
such notice, postage prepaid, addressed to the Secretary of the Corporation at
the principal executive offices of the

                                       62
<PAGE>

Corporation, at least three business days prior to the exercise date, in either
case accompanied by payment in full of the exercise price.

         4.       Limitation of Exercise of Option. The option may be exercised
only by the Optionee or in the event of death, by his or her personal
representative, and may not be transferred other than by will or the applicable
laws of descent or distribution. The option shall not otherwise be transferred,
assigned, pledged, or hypothecated for any purpose whatsoever and is not
subject, in whole or in part, to execution, attachment, or similar process. Any
attempted assignment, transfer, pledge or hypothecation or other disposition of
the option other than in accordance with the terms set forth herein, shall be
null and void and of no effect.

         5.       Option Holder Not Stockholder. Neither the Optionee nor any
other person entitled to exercise the option under the terms hereof shall be, or
have any of the rights or privileges of, a shareholder of the Corporation in
respect to any of the Shares issuable on exercise of the option, unless and
until the purchase price for such Shares is paid in full and certificates
representing such Shares are issued.

         6.       Adjustment To Stock Option Agreement. In the event the option
shall be exercised in whole, this Agreement shall be surrendered to the
Corporation for cancellation. In the event the option shall be exercised in
part, or a change in the number or designation of the common stock shall be
made, this Agreement shall be delivered by the Optionee to the Corporation for
the purpose of making appropriate notation thereon, reflecting the partial
exercise or the change in the number or designation of the Shares.

         7.       Proprietary Information. The Optionee, while providing
services as a director hereunder, will have access to information, including
without limitation customer information, strategic plans, management and
operating policies and procedures, and similar information, which constitute
proprietary information or trade secrets of the Corporation or its affiliates.
The Optionee shall not, at any time, whether during the term of this Agreement
or otherwise, disclose any of such proprietary information to any person or
entity other than the Corporation, its affiliates and employees.

         8.       Plan and Plan Interpretations as Controlling. This option and
the terms and conditions herein set forth are subject in all respects to the
definitions, terms and conditions of the Plan, which are incorporated herein by
reference as if set forth herein and shall be controlling. All determinations
and interpretations of the Board shall be binding and conclusive upon the
Optionee or his or her legal representatives with regard to any question arising
hereunder or under the Plan, to the extent not inconsistent with Section 83 of
the Internal Revenue Code and regulations issued thereunder.

         9.       Legending of Shares. Each certificate representing any Shares
issuable upon exercise of this option shall bear a legend indicating that such
shares may not be transferred in the absence of an opinion of counsel that such
transfer complies with all applicable securities laws.

         11.      Governing Law. The option and this agreement shall be
construed and applied in accordance with the laws of the State of Nevada as to
corporate law issues, and otherwise by the laws of the Commonwealth of Virginia,
in each case to the extent not inconsistent with Section 83 of the Internal
Revenue Code and regulations issued thereunder.

         IN WITNESS WHEREOF, the Corporation has caused this option to be
granted and this agreement to be executed on behalf of the Corporation on the
date first above written.

                                       First Community Bancshares, Inc.

                                       By:
                                           -------------------------------------
                                           Chairman of the Board of Directors

         The undersigned hereby accepts the option granted hereby and agrees to
comply fully with the terms and conditions hereof.

---------------------------------------
                                   Optionee
-----------------------------------

                                       63

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