Document:

<PAGE>

Exhibit 10.1

                              EMPLOYMENT AGREEMENT
                        (As Amended on October 17, 2000)

         THIS EMPLOYMENT AGREEMENT made and entered into as of the 1st day of
January, 2000, and amended on October 17, 2000, by and between JOHN M. MENDEZ,
hereinafter referred to as "Employee," and FIRST COMMUNITY BANCSHARES, INC.,
hereinafter referred to as "the Corporation."

W I T N E S S E T H

                           WHEREAS, Employee has been employed by the
Corporation or its affiliates for 14 years as its Vice President and Chief
Financial Officer, pursuant to an agreement entered into between Employee and
the Corporation or its affiliates, on April 21, 1992, and currently serves as
the President and Chief Executive Officer; and

                           WHEREAS, the latest of such Employee Agreements, as
renewed in accordance with its terms, would otherwise terminate on the 21st of
April, 2002; and

                           WHEREAS, the Board of Directors of the Corporation
recognizes the significant contributions which Employee has made to the
Corporation and its affiliates during his tenure, and believes it to be in the
best interests of the Corporation to provide for stability in its senior
management;

                           NOW, THEREFORE, in consideration of the mutual
covenants herein set forth, Employee and the Corporation do agree to amended
terms of employment as follows:

         1.       Employment and Term. The Corporation hereby hires Employee,
                  and Employee hereby agrees to serve as its President and Chief
                  Executive Officer, with such duties as normally attach to such
                  position. Employee shall also serve in such offices for
                  affiliates of the Corporation as its Board of Directors may
                  specify. The term of this Agreement shall be for three years
                  effective February 25, 2000.

         2.       Compensation and Benefits.

                  a.       Employee's cash compensation shall not be less than
                           $210,000.00, subject to adjustment at each
                           anniversary date. Such adjustment of annual
                           compensation shall be comprised of i) an increase
                           equivalent to the base compensation times the annual
                           percentage increase in the Consumer Price Index for
                           the preceding twelve months and ii) any discretionary
                           increase deemed appropriate by the Compensation
                           Committee to reflect changes in scope of duties and
                           operation, size, and complexity of the Corporation
                           and/or changes in market conditions for executive
                           salaries based on review and analysis of compensation
                           to

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                           executives of companies of similar size, scope and
                           operation. Such cash compensation shall be paid
                           biweekly during the term hereof, and if applicable,
                           during the severance pay period, less all customary
                           withholding.

                  b.       Employee shall be awarded incentive compensation, if
                           any, in an amount determined appropriate by the
                           Compensation Committee of the Corporation based upon
                           an annual evaluation of achievement of key objectives
                           as may be established from time to time by such
                           Committee.

                  c.       Employee shall be entitled to vacation of four (4)
                           weeks per year during the term of this Agreement. He
                           shall be provided the fringe benefits provided all
                           other full-time employees in addition to the use of a
                           Company provided vehicle.

         3.       Termination for Cause. The Corporation may terminate the
                  employment of Employee only for "Cause," defined herein as the
                  commission of acts, or omissions, by Employee which constitute
                  fraud, dishonesty, excessive absenteeism without approval of
                  the Corporation (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 Corporation, or willful
                  failure to carry out reasonable and legal duties and
                  responsibilities consistent with his duties as President and
                  Chief Executive Officer of the Corporation, and assigned to
                  him. In the event the Corporation terminates Employee's
                  employment for Cause, then the Corporation shall not be
                  obligated to pay Employee any further compensation after the
                  date of termination.

         4.       Termination Without Cause. In the event the Corporation shall
                  desire to terminate Employee's employment without Cause, then
                  Employee shall be paid a salary and provided benefits of like
                  kind and equal to his total base compensation at the time of
                  his termination, which said compensation after termination
                  shall be provided for the greater of the balance of the term
                  of this Agreement, as it may be renewed from time to time
                  pursuant to paragraph 9, or 30 months.

         5.       Change in Control. Employee, upon a change in the ownership or
                  control of the Corporation, may terminate this Agreement at
                  his sole option. In the event of any termination by either
                  party within three years following such a change in ownership
                  or control, Employee shall continue to receive his salary and
                  benefits as in effect at the time of such change in control or
                  ownership, or on the date of termination, if greater, for a
                  period of 35 months after termination. For purposes of this
                  Agreement, change in 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 and Exchange
                  Act of 1934 (the "Act"), or any comparable successor
                  provision, of beneficial ownership within the meaning of Rule
                  13(d)(3) promulgated under the Act, of 30 percent or more of
                  the outstanding shares of common stock of Bancshares; or the
                  approval by the stockholders of the Corporation of a
                  reorganization, merger, consolidation, share exchange or
                  similar transaction pursuant to which persons who were
                  stockholders of the Corporation immediately prior to the
                  effective date of such transaction do not, immediately after
                  such date, own more than 60 percent of the combined voting

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                  power entitled to vote generally in the election of directors
                  of the surviving or successor corporation; or a liquidation or
                  dissolution of the Corporation; or the sale of all or
                  substantially all of its assets.

         6.       Covenant Not to Compete; Full-time Employment. During the term
                  of employment and for 36 months after termination of
                  employment (by either party, whether or not for Cause), except
                  with the prior written consent of the Corporation, Employee
                  shall not directly or indirectly engage or participate in, or
                  become a director or officer of, or render advisory or other
                  services to, or become interested in, become an employee of,
                  or make any material financial investment in any firm,
                  corporation, holding company, business entity or other
                  business enterprise competing in any respect with the business
                  of the Corporation or any of its affiliates, whether presently
                  being conducted or hereafter undertaken, from a location
                  within 50 miles of the headquarters of the Corporation, or
                  within 25 miles of any other office of the Corporation or any
                  affiliate from which business is conducted at the time of
                  termination, and shall not, during such period, solicit
                  business or otherwise call on any person or entity which was a
                  customer of the Corporation or any affiliate at the date of
                  termination or at any time within 12 months prior to such
                  date. Employee shall serve the Corporation on a full-time
                  basis, and during the term of this Agreement, shall have no
                  employment contract or other written or oral agreement
                  concerning employment nor perform any services for any entity
                  or person, whether as employee, consultant or otherwise other
                  than the Corporation or its affiliates.

         7.       Proprietary Information. Employee acknowledges that while
                  providing services hereunder, he 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. He 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.       Amendments. The parties shall not make any modification to
                  this Agreement unless the same is in writing, signed by both
                  parties hereto.

         9.       Renewals. This Agreement shall be automatically renewed for
                  successive additional three-year periods on January 1 in each
                  year hereafter beginning in 2001, in the absence of notice of
                  non-renewal by either party given in writing to the other
                  party no later than September 15 of the preceding year.

         10.      Applicable Law. This Agreement shall be construed and applied
                  in accordance with the laws of the Commonwealth of Virginia.

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         WITNESS the following signatures:

         FIRST COMMUNITY BANCSHARES, INC.

         By: /s/ William P. Stafford, Sr.
             -------------------------------
         Chairman of the Board
         (As Amended on October 17, 2000)

         By: /s/ John M. Mendez
             -------------------------------
         John M. Mendez
         (As Amended on October 17, 2000)

                                       42<PAGE>
                              EXHIBIT 10.2 SUMMARY

         The following directors are participants in the First Community
Bancshares, Inc. Director Supplemental Retirement Plan and as such are parties
to Director Supplemental Retirement Plan in the form attached hereto as part of
this Exhibit 10.2.

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 10.2 DIRECTOR SUPPLEMENTAL RETIREMENT PLAN

AGREEMENT

         This Agreement, made and entered into this ____ day of ______________,
2001, by and between First Community Bancshares, Inc., a Holding Company
organized and existing under the laws of the United States, (hereinafter
referred to as the "Company"), and _____________________, a Director of the
Company, (hereinafter referred to as the "Director").

         WHEREAS, the Director has been in the service of the Company for
several years and has now and for years faithfully served the Company. It is the
consensus of the Board of Directors of the Company (hereinafter referred to as
the "Board") that the Director'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 Director's experience, knowledge of corporate affairs, reputation and
industry contacts are of such value and his continued services are so essential
to the Company's future growth and profits that it would suffer severe financial
loss should the Director terminate the Director's services.

         ACCORDINGLY, the Board has adopted the First Community Bancshares, Inc.
Director Supplemental Retirement Plan (hereinafter referred to as the "Director
Plan") and it is the desire of the Company and the Director to enter into this
Agreement under which the Company will agree to make certain payments to the
Director upon the Director's retirement or to the Director's beneficiary(ies) in
the event of the Director's death pursuant to the Director Plan;

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

         NOW THEREFORE, in consideration of services the Director 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 Director agree as
follows:

I.       DEFINITIONS

         A.       Effective Date:

                  The Effective Date of the Director Plan shall be November 2,
                  2001.

         B.       Plan Year:

                  Any reference to "Plan Year" shall mean a calendar year from
                  January 1 to December 31. In the year of implementation, the
                  term "Plan Year" shall mean the period from the Effective Date
                  to December 31 of the year of the Effective Date.

         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 Director
                  reaches the Director's seventy-fifth (75th) birthday or such
                  later date as the Director may actually retire.

         D.       Termination of Service:

                  Termination of Service shall mean voluntary resignation of
                  service by the Director or the Company's discharge of the
                  Director without cause, prior to the Retirement Date
                  (Subparagraph I [C]).

         E.       Index Retirement Benefit:

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                  The Index Retirement Benefit for the Director for each plan
                  year shall be equal to the excess (if any) of the Index
                  (Subparagraph I [F]) for that Plan Year over the Cost of Funds
                  Expense (Subparagraph I [G]) for that Plan Year, divided by a
                  factor equal to 1.06 minus the marginal tax rate.

         F.       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 contracts were
                  purchased on the Effective Date hereof.

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

                  If such contracts of life insurance are actually purchased by
                  the Company, then the actual policies as of the dates they
                  were purchased shall be used in calculations under this
                  Director Plan. If such contracts of life insurance are not
                  purchased or are subsequently surrendered or lapsed, then the
                  Company shall receive annual policy illustrations that assume
                  the above-described policies were purchased or had not
                  subsequently surrendered or lapsed. Said illustrations shall
                  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 contract are
                  merely for purposes of calculating a benefit. The Company has
                  no obligation to purchase such life insurance and, if
                  purchased, the Director and the Director's beneficiary(ies)
                  shall have no ownership interest in such policy and shall
                  always have no greater interest in the benefits under this
                  Agreement than that of an unsecured general creditor of the
                  Company.

         G.       Cost of Funds Expense:

                  The Cost of Funds Expense 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 the Director
                  pursuant to the Director Plan (Paragraph II hereinafter) plus
                  the amount of all previous years' after-tax Costs of Funds
                  Expense, and multiplying that sum by the Average After-Tax
                  Cost of Funds (Subparagraph I [K]).

         H.       Change of Control:

                  For purposes of this Supplemental Retirement Plan 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 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.

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         I.       Normal Retirement Age:

                  Normal Retirement Age shall mean the date on which the
                  Director attains age seventy-five (75).

         J.       Benefit Accounting:
                  The Company shall account for the benefit provided herein
                  using the regulatory accounting principles of the Company's
                  primary federal regulator. The Company shall establish an
                  accrued liability retirement account for the Director into
                  which appropriate reserves shall be accrued.

         K.       Average After-Tax Cost of Funds:
                  Average After-Tax Cost of Funds means, at any particular time,
                  a ratio, the numerator of which is the total annualized
                  interest expense as set forth on Schedule RI-Income Statement
                  of the Company's most recently filed Consolidated Report of
                  Condition and Income (the "Call Report") and the denominator
                  of which is an amount equal to: (i) the amount of deposits in
                  domestic offices (sum of total of columns A and C from
                  Schedule RC-E of the Call Report), plus (ii) the amount of
                  Federal funds purchased and securities sold under agreements
                  to repurchase, as set forth on Schedule RC-Balance Sheet of
                  the Call Report, times the inverse of the Company's combined
                  marginal income tax rate. However, if the Company is being
                  taxed as an S-corporation, the ratio as set forth hereinabove,
                  shall be times the inverse of the highest combined personal
                  federal and state income tax rate as determined for the state
                  where the Company is located.

II.      BENEFITS

         A.       Retirement Benefits:

                  Subject to Subparagraph II (D), hereinafter, should the
                  Director continue to serve the Company until "Normal
                  Retirement Age" defined in Subparagraph I (I), the Director
                  shall be entitled to receive an annual benefit equal to the
                  amount set forth in Exhibit "A-1". Said payments shall be made
                  monthly (1/12th of the annual benefit) and shall commence
                  thirty (30) days following the Director's retirement and shall
                  continue until the Director attains age eighty-one (81). Upon
                  completion of the aforestated payments and commencing
                  subsequent thereto and subject to Subparagraph II (A)(i)
                  hereinbelow, the Index Retirement Benefit (Subparagraph I [E])
                  shall be paid to the Director until the Director's death. Said
                  benefits set forth in this Subparagraph II (A) may continue
                  after the Director's death to the Director's beneficiary(ies)
                  as set forth in Subparagraph II (B) hereinafter.

                  (i)      Index Retirement Benefit Adjustment:

                  The Index Retirement Benefit payment as set forth hereinabove
              for the first Plan Year subsequent to the Director attaining age
              eighty-one (81) shall be adjusted according to a number equal to
              the aggregate of the Index Retirement Benefit (Subparagraph I [E])
              for each Plan Year from the Effective Date of this agreement until
              the Plan Year subsequent to the Director attaining age eighty-one
              (81) over the aggregate of the benefit payments the Director
              actually received under the terms of this Director Plan through
              that date. For example, if the Director retires at age sixty-five
              (65) and the aggregate annual benefits received by the Director
              until the Plan Year the Director attains age eighty-one (81) were
              $900,000.00, and the aggregate Index Retirement Benefits for each
              Plan Year from the Effective Date of this agreement to the Plan
              Year the Director's attains age eighty-one (81) were $1,000,000.00
              then the Director's Index Retirement Benefit in the first Plan
              Year said payment is payable to the Director would be increased by
              $100,000.00. If said number is a deficit, then the Index
              Retirement Benefit for the Plan Year when the Director attains age
              eighty-one (81) and each subsequent Plan Year's benefit (if
              necessary) shall be reduced until the entire deficit has been
              recovered by the Company. For each year thereafter, the Index
              Retirement Benefit payment shall be paid as set forth in
              Subparagraph I (E). For example, if the Director retires at age
              sixty-five (65) and the aggregate annual benefits to be received
              by the Director until the Plan Year the Director attains age
              eighty-one (81) were $1,000,000.00, and the aggregate Index
              Retirement Benefits for each Plan year from the Effective Date of
              this agreement to the Plan Year the Director attains age
              eighty-one (81) were $900,000.00 and the Director's Index
              Retirement Benefit was $90,000.00 in the first year, then the
              Director would not receive any Index Retirement Benefit in the
              first year, and the second years' Index Retirement benefit would
              be reduced by $10,000.00.

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         B.       Death:

                  Should the Director die prior to having received a total of
                  ten (10) annual benefit payments as set forth in Subparagraph
                  II (A) (i.e. defined benefit payments solely or combined with
                  Index Retirement Benefit Payments for a total of ten (10)
                  annual benefit payments) then the Director's designated
                  beneficiary shall receive an amount of money equal to what the
                  Director's benefits would have been had the Director received
                  a total of ten (10) benefit plan payments. This amount of
                  money shall be paid at the times and in the amounts that the
                  Director would have received said benefit payments. In any
                  event, in the absence of or a failure to designate a
                  beneficiary, the amounts described herein shall be paid to the
                  personal representative of the Director's estate.

         C.       Termination of Service and Discharge for Cause:

                  Should the Director suffer a Termination of Service
                  (Subparagraph I [D]) or be Discharged for Cause at any time,
                  all benefits under this Director Plan shall be forfeited. The
                  term "for cause" shall mean any of the following that result
                  in an adverse effect on the Company: (i) gross negligence or
                  gross neglect; (ii) the conviction of a felony or misdemeanor
                  involving moral turpitude, fraud, or dishonesty; (iii) the
                  willful violation of any law, rule, or regulation (other than
                  a traffic violation or similar offense); (iv) an intentional
                  failure to perform stated duties; or (v) a breach of fiduciary
                  duty involving personal profit. If a dispute arises as to
                  discharge "for cause," such dispute shall be resolved by
                  arbitration as set forth in this Director Plan.

         D.       Death Benefit:

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

III.     RESTRICTIONS 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
         Agreement. The Director, the Director's beneficiary(ies) or any
         successor in interest to the Director 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 Agreement or to refrain
         from funding the same and to determine the exact nature and method of
         such funding. Should the Company elect to fund this Agreement, in whole
         or in part, through the purchase of life insurance, mutual funds,
         disability policies or annuities, the Company reserves the absolute
         right, in its sole discretion, to terminate such funding at any time,
         in whole or in part. At no time shall the Director be deemed to have
         any lien or right, title or interest in or to any specific funding
         investment or to any assets of the Company.

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

IV.      CHANGE OF CONTROL

         Upon a Change of Control (Subparagraph I [H]), if the Director
         subsequently suffers a Termination of Service (Subparagraph I [D]),
         then the Director shall be entitled to receive the amount in the
         Director's Accrued Liability Retirement Account as of the date of
         Termination of Service paid in a lump sum thirty (30) days following
         said Termination of Service. The Director will also remain eligible for
         all promised death benefits in this Director Plan. In addition, no
         sale, merger, or consolidation of the Company shall take place unless
         the new or surviving entity expressly acknowledges the obligations of
         this Director Plan and agrees to abide by its terms.

V.       MISCELLANEOUS

         A.       Alienability and Assignment Prohibition:

                  Neither the Director, his/her surviving spouse nor any other
                  beneficiary under this Agreement 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

                                       46
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                  said benefits be subject to seizure for the payment of any
                  debts, judgments, alimony or separate maintenance owed by the
                  Director or the Director's beneficiary(ies), nor be
                  transferable by operation of law in the event of bankruptcy,
                  insolvency or otherwise. In the event the Director or any
                  beneficiary attempts assignment, commutation, hypothecation,
                  transfer or disposal of the benefits hereunder, the Company's
                  liabilities shall forthwith cease and terminate.

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

                  The Company shall not merge or consolidate into or with
                  another company or sell substantially all of its assets to
                  another company, firm or person until such company, firm or
                  person expressly agree, in writing, to assume and discharge
                  the duties and obligations of the Company under this Director
                  Plan. This Director 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 Director, this Director Plan may be
                  amended or revoked at any time or times, in whole or in part,
                  by the mutual written consent of the Director and the Company.

         D.       Gender:

                  Whenever in this Director Plan 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.

         E.       Effect on Other Company Benefit Plans:

                  Nothing contained in this Director Plan shall affect the right
                  of the Director 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 Director Plan are inserted
                  for reference and convenience only and shall not be deemed a
                  part of this Director Plan.

         G.       Applicable Law:

                  The validity and interpretation of this Agreement shall be
                  governed by the laws of the Commonwealth of Virginia
                  notwithstanding the conflict of any other laws.

         H.       12 U.S.C. Section 1828(k):
                  Any payments made to the Director pursuant to this Director
                  Plan, 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
                  Director Plan 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 Director Plan shall remain in full force and effect
                  notwithstanding such partial invalidity.

VI.      ERISA PROVISION

         A.       Named Fiduciary and Plan Administrator:

                  The "Named Fiduciary and Plan Administrator" of this Director
                  Plan shall be First Community Bank, N.A., until its
                  resignation or removal by the Board. As Named Fiduciary and
                  Plan Administrator, the Company shall be responsible for the
                  management, control and administration of the Director Plan.
                  The Named Fiduciary may delegate to others certain aspects of
                  the

                                       47
<PAGE>

                  management and operation responsibilities of the Director Plan
                  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
                  Director Plan and benefits are not paid to the Director (or to
                  the Director's beneficiary(ies) in the case of the Director'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 the
                  specific reasons for such denial, reference to the provisions
                  of this Director Plan 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.

                  If claimants desire a second review they shall notify the
                  Named Fiduciary and Plan Administrator in writing within sixty
                  (60) days of the first claim denial. Claimants may review this
                  Director Plan or any documents relating thereto and submit any
                  written issues and comments it may feel appropriate. In their
                  sole discretion, the Named Fiduciary and Plan Administrator
                  shall then review the second claim and provide a written
                  decision within sixty (60) days of receipt of such claim. This
                  decision shall likewise state the specific reasons for the
                  decision and shall include reference to specific provisions of
                  the Plan Agreement upon which the decision is based.

                  If claimants continue to dispute the benefit denial based upon
                  completed performance of this Director Plan 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
                  Director "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.

VII.     TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE
         LAW, RULES OR REGULATIONS

         The Company is entering into this Agreement upon the assumption that
         certain existing tax laws, rules and regulations will continue in
         effect in their current form. If any said assumptions should change and
         said change has a detrimental effect on this Director Plan, then the
         Company reserves the right to terminate or modify this Agreement
         accordingly. Upon a Change of Control (Subparagraph I [J]), this
         paragraph shall become null and void effective immediately upon said
         Change of Control.

         IN witness whereof, the parties hereto acknowledge that each has
carefully read this Agreement and executed the original thereof on the first day
set forth hereinabove, and that upon execution, each has received a conforming
copy.

                                           FIRST COMMUNITY BANCSHARES, INC.
                                           Bluefield, VA

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

-------------------------------------      -------------------------------------
Witness                                                                Director

                                       48
<PAGE>

BENEFICIARY DESIGNATION FORM
FOR THE DIRECTOR SUPPLEMENTAL
RETIREMENT PLAN AGREEMENT

PRIMARY DESIGNATION:

         Name                 Address                    Relationship
         ----                 -------                    ------------

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

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

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

SECONDARY (CONTINGENT) DESIGNATION:

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

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

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

All sums payable under the Director Supplemental Retirement Plan 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.

-------------------------------------             ------------------------------
Director                                   Date

AMENDMENT
TO THE LIFE INSURANCE ENDORSEMENT
METHOD SPLIT DOLLAR PLAN AGREEMENT
DATED November 26, 2001

         This Amendment, made and entered into this ______ day of _____________,
2002, by and between First Community Bancshares, Inc., a Bank Holding Company
organized and existing under the laws of State of Nevada, hereinafter referred
to as "Bancshares," and William P. Stafford, II, a Director of Bancshares,
hereinafter referred to as the "Director," shall effectively amend the Life
Insurance Endorsement Method Split Dollar Agreement dated November 26, 2001, as
specifically set forth herein. Said Agreement shall be amended as follows:

         1.)      The following "Policy Number" for Jefferson Pilot Life
Insurance Company shall be deleted in its entirety on page (1) of said
agreement, JP5145732, and replaced with the following:

Policy Number: JP5145733

         This Amendment shall be effective the 26th day of November, 2001. 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 November 26, 2001 Agreement.

                                       49
<PAGE>

         IN WITNESS WHEREOF, the parties hereto acknowledge that each has
carefully read this Amendment and executed the original thereof on the first day
set forth hereinabove, and that, upon execution, each has received a conforming
copy.

FIRST COMMUNITY BANCSHARES, INC.
                                                     Bluefield, Virginia

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

-------------------------------------   ----------------------------------------
Witness                                 William P. Stafford, II

                                       50

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