Document:

Stock Option Agreements

 EXHIBIT 10.53 
 COMMUNITY BANCSHARES, INC. 
 2005 NONQUALIFIED STOCK OPTION AGREEMENT 
 FOR SENIOR OFFICERS 
 THIS AGREEMENT is
made and entered into as of January 12, 2005, between grantor Community Bancshares, Inc., a Delaware corporation (the “Corporation”) and grantee, William H. Caughran (the “Grantee”). 
 W I T N E S S E T H: 
 The Board of
Directors of the Corporation (the “Board”) considers it in the best interests of the Corporation to issue from time to time to selected grantees options to purchase the Corporation’s stock so as to more closely align the interests of
such grantees with the interests of the Corporation’s stockholders and to provide additional inducement for such grantees to remain in the service of the Corporation with an increased incentive to work for its long-term success. This Agreement
establishes the terms and conditions applicable to Grantee’s award of options. 
 NOW, THEREFORE, the parties hereto agree as follows:

 1. Grant of Option. Grantee shall have the right and option to purchase on the terms and conditions set forth herein, all or any part of an
aggregate of 20,000 shares (“Option Shares”) of the $.10 par value common stock of the Corporation (the “Common Stock”) at the purchase price of $6.81 per share (the “Option Price”). The Option Price is 100% of the fair
market value of the Common Stock on January 12, 2005, the date of the grant of the option covered by this Agreement. 
 2. Terms and Conditions.
It is understood and agreed that the option evidenced hereby is subject to the following terms and conditions: 
 (a) Expiration
Date. The option shall expire five (5) years after the date of grant (the “Expiration Date”). After the Expiration Date, the parties shall have no further rights or obligations hereunder. 
 (b) Exercise of Option. The option covered by this Agreement may be exercised by Grantee from time to time, in whole or in part, at any time prior
to the Expiration Date subject to the restrictions in Section 2(d), (e) and (f) and Section 7. 
 (c) Method of
Exercise and Payment of Purchase Price Upon Exercise. The Grantee may elect to exercise the option by giving written notice of such election to the Corporation, in such form as the Board may require, accompanied by payment of the full purchase
price of the Option Shares for which the election is made. Payment of the Option Price shall be made in cash or Common Stock that was acquired at least six (6) months prior to the exercise of the option, or a combination thereof. To the extent
permitted by applicable law, the option may be exercised and the exercise price paid pursuant to arrangements with brokerage firms permitted under Regulation T of the Federal Reserve Board or successor regulations or statutes. Any federal or state
tax withholding requirements can be satisfied by shares of Common Stock acquired pursuant to the option exercise. 
 (d) Exercise Upon
Death. In the event that Grantee ceases to be employed by the Corporation or its subsidiaries by reason of death, the option may thereafter be exercised as to all shares subject to the option by the legal representative of the estate or by the
person or persons entitled to the option under the Grantee’s will or the laws of descent and distribution, as appropriate, until the earlier of (i) the expiration of the stated term of the option or (ii) the first anniversary of the
date of the Grantee’s death. 
 (e) Exercise Upon Termination of Affiliation by Reason of Disability. In the event that Grantee
ceases to be employed by the Corporation or its subsidiaries by reason of Disability (as defined below), the option may thereafter be exercised as to all shares subject to the option until the earlier of (i) the expiration of the stated term of
the option or (ii) the first anniversary of the date that Grantee is determined by the Corporation to be disabled. 

 (f) Exercise Upon Termination of Affiliation by Reason Other than Death or Disability. The option
or any unexercised portions thereof shall expire upon the earlier of (i) the expiration of the stated term of the option or (ii) the 60th day following the date of termination of Grantee’s employment by the Corporation and its subsidiaries for any reason other than death or Disability. Provided, however, if the Grantee’s
affiliation is terminated for Cause (as defined below), the option shall expire on the date of the termination of the Grantee’s affiliation. If Grantee resigns from his or her affiliation with the Corporation and its subsidiaries under
circumstances where Cause for termination exists, the resignation will be considered a termination for Cause and the option will expire on the date of such resignation. 
 3. No Rights as Shareholder or to Employment. No option granted hereunder shall entitle the holder thereof to any rights as a shareholder in the Corporation with respect to any shares to which the option
relates until such shares have been paid for in full and issued. Furthermore, the option shall not confer upon the Grantee any rights of employment with the Corporation or any of its subsidiaries or affect the right of the Corporation or its
subsidiaries to terminate the employment of the Grantee at any time, with or without cause. 
 4. Restrictions on Transfer of Shares and Option.
Grantee hereby agrees for himself or herself and his or her legal representative, heirs and distributees, that if a registration statement covering the shares issuable upon exercise of any option hereunder is not effective under the Securities Act
of 1933, as amended (the “Act”), at the time of such exercise, or if some other exemption from the provisions of the Act is not available, then all shares of Common Stock then received or purchased upon such exercise shall be acquired for
investment, and that the notice of exercise delivered to the Corporation shall be accompanied by a representation in writing acceptable in scope and form to counsel to the Corporation and signed by Grantee or Grantee’s legal representative,
heirs or distributees, as the case may be, to the effect that the shares are being acquired in good faith for investment and not with a view to distribution thereof. Any shares so acquired may be deemed restricted securities under Rule 144 as
promulgated by the Securities and Exchange Commission under the Act, and as the same may be amended or replaced and subject to restrictions upon sale or other disposition. This option has not been registered under the Act or any applicable state
securities laws in reliance upon registration exemptions in the Act and such laws. Grantee represents that Grantee is acquiring this option for Grantee’s own account for investment and not with a view to any resale or distribution thereof.
Grantee understands and agrees that the option (in addition to the restriction on transfer set forth in Section 6) this option may not be sold, transferred or otherwise disposed of without registration under the Act and applicable state
securities laws except in compliance with an exemption from such registration, the availability of which has been confirmed by an opinion of legal counsel or other evidence satisfactory to the Corporation. 
 5. Registration of Shares. If at any time the Board shall determine that the listing, registration or qualification of any shares subject to the option upon any
securities exchange, or under any state or federal law, or the consent or approval of any governmental or regulatory body is necessary or desirable as a condition of or in connection with the issuance or purchase of shares hereunder, the option may
not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval has been effected or obtained free of any conditions not acceptable to the Board. 
 6. Transfer of Rights. This option is not transferable except by will or by the laws of descent and distribution and shall be exercisable during Grantee’s
lifetime only by Grantee. After the death of Grantee, this option may be exercised only by Grantee’s estate or by the person or persons entitled to the option under Grantee’s will or the laws of descent and distribution, as appropriate. In
the event the option is transferred to the Grantee’s estate, the option may be exercised by the estate only to the extent that the Grantee would have been entitled had the option not been transferred. 
 7. Competition with Employer - Covenant Not to Compete. In consideration of the grant by the Corporation of the option, Grantee agrees with the Corporation as
follows: 
 (a) While Grantee is employed by the Corporation or one or more of its subsidiaries (hereinafter collectively referred to as the
“Company”), Grantee will devote his or her entire time, energy and skills to the service of the Company. Any employment shall be at the pleasure of the board of directors of each employing corporation. 

 (b) Grantee will not, during the term of his or her employment by the Company, or for a period of two
years after termination for any reason of his or her affiliation with the Company, directly or indirectly, either individually or as a stockholder (except for passive investments of less than one percent of the outstanding shares), director,
officer, consultant, independent contractor, employee, agent, member or otherwise of or through any corporation, partnership, association, joint venture, firm, individual or otherwise (hereinafter “Firm”), or in any other capacity:

 (i) Carry on or engage in a business like or similar to any business engaged in by the Company either (A) in the
county in which the Grantee has primarily been employed by the Company at the time of termination of employment or (B) within a 25-mile radius of the location where the Grantee has primarily been employed by the Company at the time of
termination of employment; or 
 (ii) Solicit or do business (like or similar to any business engaged in by the Company) with
any customer of the Company either (A) in the county in which the Grantee has primarily been employed by the Company at the time of termination of employment or (B) within a 25-mile radius of the location where the Grantee has primarily
been employed by the Company at the time of termination of employment; or 
 (iii) Solicit, directly or indirectly, any
employee of the Company to leave their employment with the Company for any reason. For purposes of this Agreement, the Company and Grantee agree that Grantee shall be deemed to have solicited any employee in violation of this Agreement if such
employee is hired by Grantee or his or her Firm within six (6) months of Grantee’s last date of affiliation (either as an employee or a director) with the Company. 
 The above two-year period shall be extended by any period of time during which Grantee is in default of the covenants contained in this Agreement.

 (c) During the term of his or her employment by the Company and thereafter, Grantee shall not divulge, or furnish or make accessible to
any third party, company, corporation or other organization (including, but not limited to, customers, competitors or governmental agencies), without the Corporation’s prior written consent, any trade secrets, customer lists, information
regarding customers, or other confidential information concerning the Company or its business, including without limitation, confidential methods of operation and organization, trade secrets, confidential matters related to pricing, markups,
commissions and customer lists. 
 (d) In the event of a breach or threatened breach by Grantee of all or any part of the provisions of
subdivisions (b) or (c) of this Section 7, the Company shall be entitled to an injunction restraining Grantee from such breach without limiting any other rights or remedies available to the Company for such breach or threatened
breach. 
 (e) Grantee specifically recognizes and affirms that each of the covenants contained in subdivisions (b) and (c) of this
Section 7 is a material and important term of this Agreement which has induced the Company to provide for the award of the option granted hereunder, and Grantee further agrees that should all or any part or application of subdivisions
(b) or (c) of Section 7 of this Agreement be held or found invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction in an action between Grantee and the Company, the Corporation shall be entitled to
receive (but not obligated to acquire) from Grantee all Common Stock held by Grantee which was obtained by Grantee under this Agreement (including all shares obtained by virtue of any stock dividend or distribution, recapitalization, merger,
consolidation, split-up, combination, exchange of shares, or other transaction, hereinafter “stock dividends”) by returning to Grantee for each share received the Option Price paid by Grantee (as adjusted for stock dividends). If Grantee
has sold, transferred, or otherwise disposed of Common Stock obtained under this Agreement (including all shares obtained by virtue of any stock dividend), the Corporation shall be entitled to receive from Grantee the difference between the Option
Price paid by Grantee and the fair market value of the Common Stock (including all shares obtained by virtue of any stock dividends) on the date of sale transfer or other disposition. 

 (f) Notwithstanding any provision to the contrary herein contained, Section 7(b) shall not apply
upon the termination of the Grantee’s employment by the Corporation other than for Cause within one (1) year following a Change in Control of the Corporation. 
 8. Definitions. For the purposes of this Agreement, the following term shall have the definition set forth below: 
 (a) “Cause” means (i) any act (A) that constitutes, on the part of the Grantee, fraud, dishonesty, a felony or gross malfeasance of duty and (B) that directly results in a material injury to
the Corporation; or (ii) a material violation of the policies of the Corporation and/or its subsidiaries governing the conduct of Grantee; or (iii) conduct by the Grantee in his office with the Corporation that is grossly inappropriate and
demonstrably likely to lead to material injury to the Corporation, as determined by the Board acting reasonably and in good faith. 
 (b)
“Change in Control of the Corporation” means (i) the acquisition, directly or indirectly, by any “person” (within the meaning of Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) within any twelve-month period of securities of the Corporation representing an aggregate of twenty percent (20%) or more of the combined voting power of the Corporation’s then outstanding securities; or (ii) during any
period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Corporation, cease for any reason to constitute at least a majority thereof, unless the election of each new director was
approved in advance by a vote of at least a majority of the directors then still in office who were directors at the beginning of the period; or (iii) consummation of a merger or consolidation or other business combination of the Corporation
with any other person, other than a merger, consolidation or business combination which would result in the outstanding Common Stock immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into common
stock of the surviving entity or a parent or affiliate thereof) at least sixty percent (60%) of the outstanding common stock of the Corporation or such surviving entity or parent of affiliate thereof outstanding immediately after such merger,
consolidation or business combination; or (iv) a plan of complete liquidation of the Corporation or an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets; or (v) the
occurrence of any other event or circumstance which is not covered by (i) through (iv) above which the Board determines affects control of the Corporation and, in order to implement the purposes of this agreement, adopts a resolution that
such event or circumstance constitutes a Change in Control for purposes of this agreement. 
 (c) “Disability” means total and
permanent disability as determined under the Corporation’s long-term disability plan. 
 9. Disposition of Shares. Grantee agrees to notify the
Corporation promptly of the disposition of any shares of Common Stock purchased pursuant to this option which are disposed of within one year after transfer of such shares to Grantee, or within two years of the date of the grant of such option. For
purposes of such notification, “disposition” shall have the meaning assigned to it in Section 425(c) of the Code. 
 10. Adjustment of
Awards. In the event of any change in corporate capitalization, such as stock split, or a corporate transaction, such as a merger, consolidation, separation or other distribution of stock or property of the Corporation, any reorganization
(whether or not such reorganization comes within the definition of such term in Code Section 368) or any partial or complete liquidation of the Corporation, such adjustment shall be made in the number and class of and/or price of the Option
Shares as may be determined to be appropriate and equitable by the Corporation’s Board of Directors, in its sole discretion, to prevent dilution or enlargement of the benefits or potential benefits intended to be available under this agreement;
provided that the number of Option Shares shall always be a whole number. 
 11. Interpretation. Any question of interpretation or application of this
Agreement shall be resolved by the Corporation’s Board of Directors and its determination shall be final and binding on the Corporation and Grantee. 

 12. Notices. All notices hereunder shall be in writing and, if to the Corporation, shall be delivered personally
to the Chairman or mailed to the Corporation’s principal office at P.O. Box 1000, Blountsville, Alabama 35031, addressed to the attention of the Chairman; and if to Grantee, shall be delivered personally or mailed to him at the address for
Grantee found in the Corporation’s records. Such addresses may be changed at any time by notice from one party to the other. 
 13. Binding
Effect. This Agreement shall bind and inure to the benefit of the parties hereto, the successors and assigns of the Corporation and the person to whom the rights of Grantee are transferred by will or the laws of descent and distribution.

 14. Amendment. This Agreement may be amended from time to time by the Board, but no such amendment shall impair the rights of the Grantee without
the Grantee’s consent. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

  

					
		 	COMMUNITY BANCSHARES, INC.
			
		 	By:	 	 /s/ Patrick M. Frawley

		 		 	Patrick M. Frawley
		 		 	Chairman, CEO and President
		
	WITNESS:	 	GRANTEE:
			
	 /s/ Carol S. Murcks
	 		 	 /s/ William H. Caughran

		 		 	William H. Caughran

 AMENDMENT TO NONQUALIFIED STOCK OPTION AGREEMENTS 
 This Amendment is entered into on this 27th day of April, 2004 by and between Community Bancshares, Inc. (the “Company”) and the undersigned individual (“Grantee”). 
 WHEREAS, Grantee and the Company entered into Nonqualified Stock Option Agreements dated August 1, 2003 and April 2, 2003 (the “Agreements”); and 
 WHEREAS, Grantee and the Company desire to amend the Agreements as set forth below; 
 NOW, THEREFORE, in consideration of the mutual premises contained herein and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereby agree to amend the Agreements as follows: 
 1. By deleting paragraphs (e) and
(f) of Section 2 and amending paragraph (d) of Section 2 in its entirety to read as follows: 
  

	 	(e)	Exercise Upon Termination of Affiliation with the Corporation . If the Grantee’s affiliation in any capacity (i.e. as an employee or a director), but not necessarily in
all capacities, with the Corporation and/or its subsidiaries is terminated for Cause (as defined below), the option shall expire on the date of termination of Grantee’s affiliation with the Corporation. Except as provided in the preceding
sentence, the option may be exercised at any time during the stated term of the option notwithstanding the termination of Grantee’s affiliation with the Corporation due to death, disability, retirement or other reasons.

 2. By deleting the provisions of Section 7 (“Competition with Employer – Covenant not to Compete”) in
their entirety and replacing them with the following statement: “This Section is intentionally blank.” 
 The Agreements shall remain in full force
and effect unmodified except as provided above. 
 IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first
written above. 
  

					
	GRANTEE:	 	COMMUNITY BANCSHARES, INC.
			
	 /s/ William H. Caughran
	 	By:	 	 /s/ Patrick M. Frawley

	William H. Caughran	 	Its	 	Chairman and CEO

 COMMUNITY BANCSHARES, INC. 
 2004 NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS AGREEMENT is made and entered
into as of January 27, 2004, between grantor Community Bancshares, Inc., a Delaware corporation (the “Corporation”) and grantee, William H. Caughran (the “Grantee”). 
 W I T N E S S E T H: 
 The Board of Directors of the Corporation (the
“Board”) approved the grant to Grantee of awards under the Corporation’s long-term incentive program and established the terms and conditions of such awards, as contained in this Agreement. 

 NOW, THEREFORE, the parties hereto agree as follows: 
 1. Grant of Option. Grantee shall have the right and option to purchase on the terms and conditions set forth herein, all or any part of an aggregate of 20,000
shares (“Option Shares”) of the $.10 par value common stock of the Corporation (the “Common Stock”) at the purchase price of $5.35 per share (the “Option Price”). The Option Price is 100% of the fair market value of the
Common Stock on January 27, 2004, the date of the grant of the option covered by this Agreement. 
 2. Terms and Conditions. It is understood and
agreed that the option evidenced hereby is subject to the following terms and conditions: 
 (a) Expiration Date. The option shall
expire five (5) years after the date of grant (the “Expiration Date”). After the Expiration Date, the parties shall have no further rights or obligations hereunder. 
 (b) Exercise of Option. The option covered by this Agreement may be exercised by Grantee from time to time, in whole or in part, at any time prior
to the Expiration Date subject to the restrictions in Section 2(d), (e) and (f). 
 (c) Method of Exercise and Payment of
Purchase Price Upon Exercise. The Grantee may elect to exercise the option by giving written notice of such election to the Corporation, in such form as the Board may require, accompanied by payment of the full purchase price of the Option
Shares for which the election is made. Payment of the Option Price shall be made in cash or Common Stock that was acquired at least six (6) months prior to the exercise of the option, or a combination thereof. To the extent permitted by
applicable law, the option may be exercised and the exercise price paid pursuant to arrangements with brokerage firms permitted under Regulation T of the Federal Reserve Board or successor regulations or statutes. Any federal or state tax
withholding requirements can be satisfied by shares of Common Stock acquired pursuant to the option exercise. 
 (d) Exercise Upon
Death. In the event that Grantee ceases to be affiliated with the Corporation or its subsidiaries (either as an employee or director) by reason of death, the option may thereafter be exercised as to all shares subject to the option by the legal
representative of the estate or by the person or persons entitled to the option under the Grantee’s will or the laws of descent and distribution, as appropriate, until the earlier of (i) the expiration of the stated term of the option or
(ii) the first anniversary of the date of the Grantee’s death. 
 (e) Exercise Upon Termination of Affiliation by Reason of
Disability. In the event that Grantee ceases to be affiliated with the Corporation or its subsidiaries (either as an employee or director) by reason of Disability (as defined below), the option may thereafter be exercised as to all shares
subject to the option until the earlier of (i) the expiration of the stated term of the option or (ii) the first anniversary of the date that Grantee is determined by the Corporation to be disabled. 
 (f) Exercise Upon Termination of Affiliation by Reason Other than Death or Disability. The option or any unexercised portions thereof shall expire
upon the earlier of (i) the expiration of the stated term of the option or (ii) the first anniversary of the date of termination of Grantee’s affiliation with the Corporation and its subsidiaries (both as an employee and as a
director) for any reason other than death or Disability. Provided, however, if the Grantee’s affiliation is terminated for Cause (as defined below), the option shall expire on the date of the termination of the Grantee’s affiliation.

 3. No Rights as Shareholder or to Employment or to Directorship. No option granted hereunder shall entitle the holder thereof to any rights as a
shareholder in the Corporation with respect to any shares to which the option relates until such shares have been paid for in full and issued. Furthermore, the option shall not confer upon the Grantee any rights of employment with the Corporation or
any of its subsidiaries or any rights to be a director of the Corporation or any of its subsidiaries or affect the right of the Corporation or its subsidiaries to terminate the affiliation of the Grantee at any time, with or without cause.

 4. Restrictions on Transfer of Shares and Option. Grantee hereby agrees for himself or herself and his or her
legal representative, heirs and distributees, that if a registration statement covering the shares issuable upon exercise of any option hereunder is not effective under the Securities Act of 1933, as amended (the “Act”), at the time of
such exercise, or if some other exemption from the provisions of the Act is not available, then all shares of Common Stock then received or purchased upon such exercise shall be acquired for investment, and that the notice of exercise delivered to
the Corporation shall be accompanied by a representation in writing acceptable in scope and form to counsel to the Corporation and signed by Grantee or Grantee’s legal representative, heirs or distributees, as the case may be, to the effect
that the shares are being acquired in good faith for investment and not with a view to distribution thereof. Any shares so acquired may be deemed restricted securities under Rule 144 as promulgated by the Securities and Exchange Commission under the
Act, and as the same may be amended or replaced and subject to restrictions upon sale or other disposition. This option has not been registered under the Act or any applicable state securities laws in reliance upon registration exemptions in the Act
and such laws. Grantee represents that Grantee is acquiring this option for Grantee’s own account for investment and not with a view to any resale or distribution thereof. Grantee understands and agrees that the option (in addition to the
restriction on transfer set forth in Section 6) this option may not be sold, transferred or otherwise disposed of without registration under the Act and applicable state securities laws except in compliance with an exemption from such
registration, the availability of which has been confirmed by an opinion of legal counsel or other evidence satisfactory to the Corporation. 
 5.
Registration of Shares. If at any time the Board shall determine that the listing, registration or qualification of any shares subject to the option upon any securities exchange, or under any state or federal law, or the consent or approval
of any governmental or regulatory body is necessary or desirable as a condition of or in connection with the issuance or purchase of shares hereunder, the option may not be exercised in whole or in part unless such listing, registration,
qualification, consent, or approval has been effected or obtained free of any conditions not acceptable to the Board. 
 6. Transfer of Rights. This
option is not transferable except by will or by the laws of descent and distribution and shall be exercisable during Grantee’s lifetime only by Grantee. After the death of Grantee, this option may be exercised only by Grantee’s estate or
by the person or persons entitled to the option under Grantee’s will or the laws of descent and distribution, as appropriate. In the event the option is transferred to the Grantee’s estate, the option may be exercised by the estate only to
the extent that the Grantee would have been entitled had the option not been transferred. 
 7. Definitions. For the purposes of this Agreement, the
following terms shall have the definitions set forth below: 
 (a) “Cause” means (i) any act (A) that constitutes, on the
part of the Grantee, fraud, dishonesty, a felony or gross malfeasance of duty and (B) that directly results in a material injury to the Corporation; or (ii) conduct by the Grantee in his office with the Corporation that is grossly
inappropriate and demonstrably likely to lead to material injury to the Corporation, as determined by the Board acting reasonably and in good faith; provided, however, that in the case of (ii) above, such conduct shall not constitute Cause
unless the Board shall have delivered to the Grantee notice setting forth with specificity (A) the conduct deemed to qualify as Cause, (B) reasonable action that would remedy such objection, and (C) a reasonable time (not less than 30
days) within which the Grantee may take such remedial action, and the Grantee shall not have taken such specified remedial action within such specified reasonable time. 
 (b) “Disability” means total and permanent disability as determined under the Corporation’s long-term disability plan. 
 8. Disposition of Shares. Grantee agrees to notify the Corporation promptly of the disposition of any shares of Common Stock purchased pursuant to this option which are disposed of within one year after
transfer of such shares to Grantee, or within two years of the date of the grant of such option. For purposes of such notification, “disposition” shall have the meaning assigned to it in Section 425(c) of the Code. 

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

10. Interpretation. Any question of interpretation or application of this Agreement shall be resolved by the Corporation’s Board of Directors and its
determination shall be final and binding on the Corporation and Grantee. 
 11. Notices. All notices hereunder shall be in writing and, if to the
Corporation, shall be delivered personally to the Chairman or mailed to the Corporation’s principal office at P.O. Box 1000, Blountsville, Alabama 35031, addressed to the attention of the Chairman; and if to Grantee, shall be delivered
personally or mailed to him at the address for Grantee found in the Corporation’s records. Such addresses may be changed at any time by notice from one party to the other. 
 12. Binding Effect. This Agreement shall bind and inure to the benefit of the parties hereto, the successors and assigns of the Corporation and the person to whom the rights of Grantee are transferred by will
or the laws of descent and distribution. 
 13. Amendment. This Agreement may be amended from time to time by the Board, but no such amendment shall
impair the rights of the Grantee without the Grantee’s consent. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first written above. 
  

					
		 	COMMUNITY BANCSHARES, INC.
			
		 	By:	 	 /s/ Patrick M. Frawley

		 		 	Patrick M. Frawley
		 		 	Chairman, Chief Executive Officer & President
		
	WITNESS:	 	GRANTEE:
			
	 /s/ Carol S. Murcks
	 		 	 /s/ William H. Caughran

		 		 	Signature

 COMMUNITY BANCSHARES, INC. 
 2003 NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS AGREEMENT is made and entered
into as of August 1, 2003, between grantor Community Bancshares, Inc., a Delaware corporation (the “Corporation”) and grantee, William Caughran (the “Grantee”). 
 W I T N E S S E T H: 
 The Board of Directors of the Corporation (the
“Board”) approved the grant to Grantee of awards under the Corporation’s long-term incentive program and established the terms and conditions of such awards, as contained in this Agreement. 
 NOW, THEREFORE, the parties hereto agree as follows: 
 1.
Grant of Option. Grantee shall have the right and option to purchase on the terms and conditions set forth herein, all or any part of an aggregate of 15,000 shares (“Option Shares”) of the $.10 par value common stock of the
Corporation (the “Common Stock”) at the purchase price of $7.00 per share (the “Option Price”). The Option Price is 100% of the fair market value of the Common Stock on August 1, 2003, the date of the grant of the option
covered by this Agreement. 
 2. Terms and Conditions. It is understood and agreed that the option evidenced hereby is subject to the following terms
and conditions: 
 (a) Expiration Date. The option shall expire five (5) years after the date of grant (the “Expiration
Date”). After the Expiration Date, the parties shall have no further rights or obligations hereunder. 
 (b) Exercise of Option.
The option covered by this Agreement may be exercised by Grantee from time to time, in whole or in part, at any time prior to the Expiration Date subject to the restrictions in Section 2(d), (e) and (f) and Section 7. 

(c) Method of Exercise and Payment of Purchase Price Upon Exercise. The Grantee may elect to exercise the option by giving written notice of
such election to the Corporation, in such form as the Board may require, accompanied by payment in cash or in such other manner as may be approved by the Board, of the full purchase price of the Option Shares for which the election is made. As
determined by the Board, in its sole discretion, payment of the Option Price shall be made in cash or Common Stock that was acquired at least six (6) months prior to the exercise of the option, or a combination thereof. To the extent permitted
by applicable law, the option may be exercised and the exercise price paid pursuant to arrangements with brokerage firms permitted under Regulation T of the Federal Reserve Board or successor regulations or statutes. Any federal or state tax
withholding requirements can be satisfied by shares of Common Stock acquired pursuant to the option exercise. 
 (d) Exercise Upon
Death. In the event that Grantee ceases to be affiliated with the Corporation or its subsidiaries (either as an employee or director) by reason of death, the option may thereafter be exercised as to all shares subject to the option by the legal
representative of the estate or by the person or persons entitled to the option under the Grantee’s will or the laws of descent and distribution, as appropriate, until the earlier of (i) the expiration of the stated term of the option or
(ii) the first anniversary of the date of the Grantee’s death. 
 (e) Exercise Upon Termination of Affiliation by Reason of
Disability. In the event that Grantee ceases to be affiliated with the Corporation or its subsidiaries (either as an employee or director) by reason of Disability (as defined below), the option may thereafter be exercised as to all shares
subject to the option until the earlier of (i) the expiration of the stated term of the option or (ii) the first anniversary of the date that Grantee is determined by the Corporation to be disabled. 

 (f) Exercise Upon Termination of Affiliation by Reason Other than Death or Disability. The option
or any unexercised portions thereof shall expire upon the earlier of (i) the expiration of the stated term of the option or (ii) the first anniversary of the date of termination of Grantee’s affiliation with the Corporation and its
subsidiaries (both as an employee and as a director) for any reason other than death or Disability. Provided, however, if the Grantee’s affiliation is terminated for Cause (as defined below), the option shall expire on the date of the
termination of the Grantee’s affiliation. 
 3. No Rights as Shareholder or to Employment or to Directorship. No option granted hereunder shall
entitle the holder thereof to any rights as a shareholder in the Corporation with respect to any shares to which the option relates until such shares have been paid for in full and issued. Furthermore, the option shall not confer upon the Grantee
any rights of employment with the Corporation or any of its subsidiaries or any rights to be a director of the Corporation or any of its subsidiaries or affect the right of the Corporation or its subsidiaries to terminate the affiliation of the
Grantee at any time, with or without cause. 
 4. Restrictions on Transfer of Shares and Option. Grantee hereby agrees for himself or herself and his
or her legal representative, heirs and distributees, that if a registration statement covering the shares issuable upon exercise of any option hereunder is not effective under the Securities Act of 1933, as amended (the “Act”), at the time
of such exercise, or if some other exemption from the provisions of the Act is not available, then all shares of Common Stock then received or purchased upon such exercise shall be acquired for investment, and that the notice of exercise delivered
to the Corporation shall be accompanied by a representation in writing acceptable in scope and form to counsel to the Corporation and signed by Grantee or Grantee’s legal representative, heirs or distributees, as the case may be, to the effect
that the shares are being acquired in good faith for investment and not with a view to distribution thereof. Any shares so acquired may be deemed restricted securities under Rule 144 as promulgated by the Securities and Exchange Commission under the
Act, and as the same may be amended or replaced and subject to restrictions upon sale or other disposition. This option has not been registered under the Act or any applicable state securities laws in reliance upon registration exemptions in the Act
and such laws. Grantee represents that Grantee is acquiring this option for Grantee’s own account for investment and not with a view to any resale or distribution thereof. Grantee understands and agrees that the option (in addition to the
restriction on transfer set forth in Section 6) this option may not be sold, transferred or otherwise disposed of without registration under the Act and applicable state securities laws except in compliance with an exemption from such
registration, the availability of which has been confirmed by an opinion of legal counsel or other evidence satisfactory to the Corporation. 
 5.
Registration of Shares. If at any time the Board shall determine that the listing, registration or qualification of any shares subject to the option upon any securities exchange, or under any state or federal law, or the consent or approval
of any governmental or regulatory body is necessary or desirable as a condition of or in connection with the issuance or purchase of shares hereunder, the option may not be exercised in whole or in part unless such listing, registration,
qualification, consent, or approval has been effected or obtained free of any conditions not acceptable to the Board. 
 6. Transfer of Rights. This
option is not transferable except by will or by the laws of descent and distribution and shall be exercisable during Grantee’s lifetime only by Grantee. After the death of Grantee, this option may be exercised only by Grantee’s estate or
by the person or persons entitled to the option under Grantee’s will or the laws of descent and distribution, as appropriate. In the event the option is transferred to the Grantee’s estate, the option may be exercised by the estate only to
the extent that the Grantee would have been entitled had the option not been transferred. 
 7. Competition with Employer - Covenant Not to Compete.
In consideration of the grant by the Corporation of the option, Grantee agrees with the Corporation as follows: 
 (a) While Grantee is
affiliated with the Corporation or one or more of its subsidiaries (hereinafter collectively referred to as the “Company”) either as an employee or a director, Grantee will devote his or her entire time, energy and skills to the service of
the Company. Any employment shall be at the pleasure of the board of directors of each employing corporation. Except as provided in Section 2 hereof, no option granted under this Agreement shall be exercised after the termination of
Grantee’s affiliation (both as an employee and a director) with the Company. 

 (b) Grantee will not, during the term of his or her affiliation (either as an employee or director) with
the Company, or for a period of two years after termination for any reason of his or her affiliation with the Company, directly or indirectly, either individually or as a stockholder (except for passive investments of less than one percent of the
outstanding shares), director, officer, consultant, independent contractor, employee, agent, member or otherwise of or through any corporation, partnership, association, joint venture, firm, individual or otherwise (hereinafter “Firm”), or
in any other capacity: 
 (i) Carry on or engage in a business like or similar to any business engaged in by the Company either (A) in
the county in which the Grantee has primarily been employed by the Company at the time of termination of employment or (B) within a 25-mile radius of the location where the Grantee has primarily been employed by the Company at the time of
termination of employment; or 
 (ii) Solicit or do business (like or similar to any business engaged in by the Company) with any customer of
the Company either (A)in the county in which the Grantee has primarily been employed by the Company at the time of termination of employment or (B) within a 25-mile radius of the location where the Grantee has primarily been employed by the
Company at the time of termination of employment; or 
 (iii) Solicit, directly or indirectly, any employee of the Company to leave their
employment with the Company for any reason. For purposes of this Agreement, the Company and Grantee agree that Grantee shall be deemed to have solicited any employee in violation of this Agreement if such employee is hired by Grantee or his or her
Firm within six (6) months of Grantee’s last date of affiliation (either as an employee or a director) with the Company. 
 If
Grantee is a nonemployee director, the restrictions in (i) and (ii) above shall apply with respect to either (A) the county in which the director resides at the time he ceases to be a director, or (B) within a 25-mile radius of
the location where the director resides at the time he ceases to be a director. 
 The above two-year period shall be extended by any period
of time during which Grantee is in default of the covenants contained in this Agreement. 
 (c) During the term of his or her affiliation
(either as an employee or a director) with the Company and thereafter, Grantee shall not divulge, or furnish or make accessible to any third party, company, corporation or other organization (including, but not limited to, customers, competitors or
governmental agencies), without the Corporation’s prior written consent, any trade secrets, customer lists, information regarding customers, or other confidential information concerning the Company or its business, including without limitation,
confidential methods of operation and organization, trade secrets, confidential matters related to pricing, markups, commissions and customer lists. 
 (d) In the event of a breach or threatened breach by Grantee of all or any part of the provisions of subdivisions (b) or (c) of this Section 7, the Company shall be entitled to an injunction restraining
Grantee from such breach without limiting any other rights or remedies available to the Company for such breach or threatened breach. 
 (e)
Grantee specifically recognizes and affirms that each of the covenants contained in subdivisions (b) and (c) of this Section 7 is a material and important term of this Agreement which has induced the Company to provide for the award
of the option granted hereunder, and Grantee further agrees that should all or any part or 

 application of subdivisions (b) or (c) of Section 7 of this Agreement be held or found invalid or
unenforceable for any reason whatsoever by a court of competent jurisdiction in an action between Grantee and the Company, the Corporation shall be entitled to receive (but not obligated to acquire) from Grantee all Common Stock held by Grantee
which was obtained by Grantee under this Agreement (including all shares obtained by virtue of any stock dividend or distribution, recapitalization, merger, consolidation, split-up, combination, exchange of shares, or other transaction, hereinafter
“stock dividends”) by returning to Grantee for each share received the Option Price paid by Grantee (as adjusted for stock dividends). If Grantee has sold, transferred, or otherwise disposed of Common Stock obtained under this Agreement
(including all shares obtained by virtue of any stock dividend), the Corporation shall be entitled to receive from Grantee the difference between the Option Price paid by Grantee and the fair market value of the Common Stock (including all shares
obtained by virtue of any stock dividends) on the date of sale transfer or other disposition. 
 (f) Notwithstanding any provision to the
contrary herein contained, Section 7(b) shall not apply: 
 (i) Upon the termination of the Grantee’s affiliation with the
Corporation (either as an employee or a director) other than for Cause within one (1) year following a Change in Control of the Corporation; or 
 (ii) Upon the voluntary termination of Grantee’s affiliation with the Corporation (either as an employee or a director) for any reason within the thirty (30) day period immediately after the one (1) year period following a
Change in Control of the Corporation. 
 8. Definitions. For the purposes of this Agreement, the following terms shall have the definitions set forth
below: 
 (a) “Cause” means (i) any act (A) that constitutes, on the part of the Grantee, fraud, dishonesty, a felony or
gross malfeasance of duty and (B) that directly results in a material injury to the Corporation; or (ii) conduct by the Grantee in his office with the Corporation that is grossly inappropriate and demonstrably likely to lead to material
injury to the Corporation, as determined by the Board acting reasonably and in good faith; provided, however, that in the case of (ii) above, such conduct shall not constitute Cause unless the Board shall have delivered to the Grantee notice
setting forth with specificity (A) the conduct deemed to qualify as Cause, (B) reasonable action that would remedy such objection, and (C) a reasonable time (not less than 30 days) within which the Grantee may take such remedial
action, and the Grantee shall not have taken such specified remedial action within such specified reasonable time. 

 (b) “Change in Control of the Corporation” means (i) the acquisition, directly or
indirectly, by any “person” (within the meaning of Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) within any twelve-month period of securities of the Corporation representing an
aggregate of twenty percent (20%) or more of the combined voting power of the Corporation’s then outstanding securities; or (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Corporation, cease for any reason to constitute at least a majority thereof, unless the election of each new director was approved in advance by a vote of at least a majority of the directors then still in office who
were directors at the beginning of the period; or (iii) consummation of a merger or consolidation or other business combination of the Corporation with any other person, other than a merger, consolidation or business combination which would
result in the outstanding Common Stock immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into common stock of the surviving entity or a parent or affiliate thereof) at least sixty percent
(60%) of the outstanding common stock of the Corporation or such surviving entity or parent of affiliate thereof outstanding immediately after such merger, consolidation or business combination; or (iv) a plan of complete liquidation of
the Corporation or an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets; or (v) the occurrence of any other event or circumstance which is not covered by (i) through
(iv) above which the Board determines affects control of the Corporation and, in order to implement the purposes of this agreement, adopts a resolution that such event or circumstance constitutes a Change in Control for purposes of this
agreement. 
 (c) “Disability” means total and permanent disability as determined under the Corporation’s long-term disability
plan. 
 (d) “Retirement” means termination of employment under circumstances in which the Grantee is entitled to a benefit from
the Corporation’s defined benefit pension plan. 
 9. Disposition of Shares. Grantee agrees to notify the Corporation promptly of the disposition
of any shares of Common Stock purchased pursuant to this option which are disposed of within one year after transfer of such shares to Grantee, or within two years of the date of the grant of such option. For purposes of such notification,
“disposition” shall have the meaning assigned to it in Section 425(c) of the Code. 
 10. Adjustment of Awards. In the event of any
change in corporate capitalization, such as stock split, or a corporate transaction, such as a merger, consolidation, separation or other distribution of stock or property of the Corporation, any reorganization (whether or not such reorganization
comes within the definition of such term in Code Section 368) or any partial or complete liquidation of the Corporation, such adjustment shall be made in the number and class of and/or price of the Option Shares as may be determined to be
appropriate and equitable by the Corporation’s Board of Directors, in its sole discretion, to prevent dilution or enlargement of the benefits or potential benefits intended to be available under this agreement; provided that the number of
Option Shares shall always be a whole number. 
 11. Interpretation. Any question of interpretation or application of this Agreement shall be resolved
by the Corporation’s Board of Directors and its determination shall be final and binding on the Corporation and Grantee. 
 12. Notices. All
notices hereunder shall be in writing and, if to the Corporation, shall be delivered personally to the Chairman or mailed to the Corporation’s principal office at P.O. Box 1000, Blountsville, Alabama 35031, addressed to the attention of the
Chairman; and if to Grantee, shall be delivered personally or mailed to him at the address for Grantee found in the Corporation’s records. Such addresses may be changed at any time by notice from one party to the other. 
 13. Binding Effect. This Agreement shall bind and inure to the benefit of the parties hereto, the successors and assigns of the Corporation and the person to whom
the rights of Grantee are transferred by will or the laws of descent and distribution. 

 14. Amendment. This Agreement may be amended from time to time by the Board, but no such amendment shall impair
the rights of the Grantee without the Grantee’s consent. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above. 
  

					
		 	COMMUNITY BANCSHARES, INC.
			
		 	By:	 	 /s/ Patrick M. Frawley

		 		 	Patrick M. Frawley
		 		 	Chairman, Chief Executive Officer and President
		
	WITNESS:	 	GRANTEE:
			
	 /s/ Carol S. Murcks
	 		 	 /s/ William H. Caughran

		 		 	Signature

 COMMUNITY BANCSHARES, INC. 
 2003 NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS AGREEMENT is made and entered
into as of April 2, 2003, between grantor Community Bancshares, Inc., a Delaware corporation (the “Corporation”) and grantee, William H. Caughran (the “Grantee”). 
 W I T N E S S E T H: 
 The Board of Directors of the Corporation (the
“Board”) on April 2, 2003 approved the grant to Grantee of awards under the Corporation’s long-term incentive program and established the terms and conditions of such awards, as contained in this Agreement. 
 NOW, THEREFORE, the parties hereto agree as follows: 
 1.
Grant of Option. Grantee shall have the right and option to purchase on the terms and conditions set forth herein, all or any part of an aggregate of 12,500 shares (“Option Shares”) of the $.10 par value common stock of the
Corporation (the “Common Stock”) at the purchase price of $7.00 per share (the “Option Price”). The Option Price is 100% of the fair market value of the Common Stock on April 2, 2003, the date of the grant of the option
covered by this Agreement. 
 2. Terms and Conditions. It is understood and agreed that the option evidenced hereby is subject to the following terms
and conditions: 
 (a) Expiration Date. The option shall expire five (5) years after the date of grant (the “Expiration
Date”). After the Expiration Date, the parties shall have no further rights or obligations hereunder. 
 (b) Exercise of Option.
The option covered by this Agreement may be exercised by Grantee from time to time, in whole or in part, at any time prior to the Expiration Date subject to the restrictions in Section 2(d), (e) and (f) and Section 7. 

(c) Method of Exercise and Payment of Purchase Price Upon Exercise. The Grantee may elect to exercise the option by giving written notice of
such election to the Corporation, in such form as the Board may require, accompanied by payment in cash or in such other manner as may be approved by the Board, of the full purchase price of the Option Shares for which the election is made. As
determined by the Board, in its sole discretion, payment of the Option Price shall be made in cash or Common Stock that was acquired at least six (6) months prior to the exercise of the option, or a combination thereof. To the extent permitted
by applicable law, the option may be exercised and the exercise price paid pursuant to arrangements with brokerage firms permitted under Regulation T of the Federal Reserve Board or successor regulations or statutes. Any federal or state tax
withholding requirements can be satisfied by shares of Common Stock acquired pursuant to the option exercise. 
 (d) Exercise Upon
Death. In the event that Grantee ceases to be affiliated with the Corporation or its subsidiaries (either as an employee or director) by reason of death, the option may thereafter be exercised as to all shares subject to the option by the legal
representative of the estate or by the person or persons entitled to the option under the Grantee’s will or the laws of descent and distribution, as appropriate, until the earlier of (i) the expiration of the stated term of the option or
(ii) the first anniversary of the date of the Grantee’s death. 
 (e) Exercise Upon Termination of Affiliation by Reason of
Disability. In the event that Grantee ceases to be affiliated with the Corporation or its subsidiaries (either as an employee or director) by reason of Disability (as defined below), the option may thereafter be exercised as to all shares
subject to the option until the earlier of (i) the expiration of the stated term of the option or (ii) the first anniversary of the date that Grantee is determined by the Corporation to be disabled. 

 (f) Exercise Upon Termination of Affiliation by Reason Other than Death or Disability. The option
or any unexercised portions thereof shall expire upon the earlier of (i) the expiration of the stated term of the option or (ii) the 90th day after the termination of Grantee’s affiliation with the Corporation and its subsidiaries (both as an employee and as a director) for any reason other than death or Disability. Provided,
however, if the Grantee’s affiliation is terminated for Cause (as defined below), the option shall expire on the date of the termination of the Grantee’s affiliation. 
 3. No Rights as Shareholder or to Employment or to Directorship. No option granted hereunder shall entitle the holder thereof to any rights as a shareholder in the Corporation with respect to any shares to
which the option relates until such shares have been paid for in full and issued. Furthermore, the option shall not confer upon the Grantee any rights of employment with the Corporation or any of its subsidiaries or any rights to be a director of
the Corporation or any of its subsidiaries or affect the right of the Corporation or its subsidiaries to terminate the affiliation of the Grantee at any time, with or without cause. 
 4. Restrictions on Transfer of Shares. Grantee hereby agrees for himself or herself and his or her legal representative, heirs and distributees, that if a registration statement covering the shares issuable
upon exercise of any option hereunder is not effective under the Securities Act of 1933, as amended (the “Act”), at the time of such exercise, or if some other exemption from the provisions of the Act is not available, then all shares of
Common Stock then received or purchased upon such exercise shall be acquired for investment, and that the notice of exercise delivered to the Corporation shall be accompanied by a representation in writing acceptable in scope and form to counsel to
the Corporation and signed by Grantee or Grantee’s legal representative, heirs or distributees, as the case may be, to the effect that the shares are being acquired in good faith for investment and not with a view to distribution thereof. Any
shares so acquired may be deemed restricted securities under Rule 144 as promulgated by the Securities and Exchange Commission under the Act, and as the same may be amended or replaced and subject to restrictions upon sale or other disposition.

 5. Registration of Shares. If at any time the Board shall determine that the listing, registration or qualification of any shares subject to the
option upon any securities exchange, or under any state or federal law, or the consent or approval of any governmental or regulatory body is necessary or desirable as a condition of or in connection with the issuance or purchase of shares hereunder,
the option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval has been effected or obtained free of any conditions not acceptable to the Board. 
 6. Transfer of Rights. This option is not transferable except by will or by the laws of descent and distribution and shall be exercisable during Grantee’s
lifetime only by Grantee. After the death of Grantee, this option may be exercised only by Grantee’s estate or by the person or persons entitled to the option under Grantee’s will or the laws of descent and distribution, as appropriate. In
the event the option is transferred to the Grantee’s estate, the option may be exercised by the estate only to the extent that the Grantee would have been entitled had the option not been transferred. 
 7. Competition with Employer - Covenant Not to Compete. In consideration of the grant by the Corporation of the option, Grantee agrees with the Corporation as
follows: 
 (a) While Grantee is affiliated with the Corporation or one or more of its subsidiaries (hereinafter collectively referred to as
the “Company”) either as an employee or a director, Grantee will devote his or her entire time, energy and skills to the service of the Company. Any employment shall be at the pleasure of the board of directors of each employing
corporation. Except as provided in Section 2 hereof, no option granted under this Agreement shall be exercised after the termination of Grantee’s affiliation (both as an employee and a director) with the Company. 

 (b) Grantee will not, during the term of his or her affiliation (either as an employee or director) with
the Company, or for a period of two years after termination for any reason of his or her affiliation with the Company, directly or indirectly, either individually or as a stockholder (except for passive investments of less than one percent of the
outstanding shares), director, officer, consultant, independent contractor, employee, agent, member or otherwise of or through any corporation, partnership, association, joint venture, firm, individual or otherwise (hereinafter “Firm”), or
in any other capacity: 
 (i) Carry on or engage in a business like or similar to any business engaged in by the Company either (A) in
the county in which the Grantee has primarily been employed by the Company at the time of termination of employment or (B) within a 25-mile radius of the location where the Grantee has primarily been employed by the Company at the time of
termination of employment; or 
 (ii) Solicit or do business (like or similar to any business engaged in by the Company) with any customer of
the Company either (A)in the county in which the Grantee has primarily been employed by the Company at the time of termination of employment or (B) within a 25-mile radius of the location where the Grantee has primarily been employed by the
Company at the time of termination of employment; or 
 (iii) Solicit, directly or indirectly, any employee of the Company to leave their
employment with the Company for any reason. For purposes of this Agreement, the Company and Grantee agree that Grantee shall be deemed to have solicited any employee in violation of this Agreement if such employee is hired by Grantee or his or her
Firm within six (6) months of Grantee’s last date of affiliation (either as an employee or a director) with the Company. 
 If
Grantee is a nonemployee director, the restrictions in (i) and (ii) above shall apply with respect to either (A) the county in which the director resides at the time he ceases to be a director, or (B) within a 25-mile radius of
the location where the director resides at the time he ceases to be a director. 
 The above two-year period shall be extended by any period
of time during which Grantee is in default of the covenants contained in this Agreement. 
 (c) During the term of his or her affiliation
(either as an employee or a director) with the Company and thereafter, Grantee shall not divulge, or furnish or make accessible to any third party, company, corporation or other organization (including, but not limited to, customers, competitors or
governmental agencies), without the Corporation’s prior written consent, any trade secrets, customer lists, information regarding customers, or other confidential information concerning the Company or its business, including without limitation,
confidential methods of operation and organization, trade secrets, confidential matters related to pricing, markups, commissions and customer lists. 
 (d) In the event of a breach or threatened breach by Grantee of all or any part of the provisions of subdivisions (b) or (c) of this Section 7, the Company shall be entitled to an injunction restraining
Grantee from such breach without limiting any other rights or remedies available to the Company for such breach or threatened breach. 
 (e)
Grantee specifically recognizes and affirms that each of the covenants contained in subdivisions (b) and (c) of this Section 7 is a material and important term of this Agreement which has induced the Company to provide for the award
of the option granted hereunder, and Grantee further agrees that should all or any part or application of subdivisions (b) or (c) of Section 7 of this Agreement be held or found invalid or unenforceable for 

 any reason whatsoever by a court of competent jurisdiction in an action between Grantee and the Company, the Corporation
shall be entitled to receive (but not obligated to acquire) from Grantee all Common Stock held by Grantee which was obtained by Grantee under this Agreement (including all shares obtained by virtue of any stock dividend or distribution,
recapitalization, merger, consolidation, split-up, combination, exchange of shares, or other transaction, hereinafter “stock dividends”) by returning to Grantee for each share received the Option Price paid by Grantee (as adjusted for
stock dividends). If Grantee has sold, transferred, or otherwise disposed of Common Stock obtained under this Agreement (including all shares obtained by virtue of any stock dividend), the Corporation shall be entitled to receive from Grantee the
difference between the Option Price paid by Grantee and the fair market value of the Common Stock (including all shares obtained by virtue of any stock dividends) on the date of sale transfer or other disposition. 
  

	 	(f)	Notwithstanding any provision to the contrary herein contained, Section 7(b) shall not apply: 

 (i) Upon the termination of the Grantee’s affiliation with the Corporation (either as an employee or a director) other than for Cause within one
(1) year following a Change in Control of the Corporation; or 
 (ii) Upon the voluntary termination of Grantee’s affiliation with
the Corporation (either as an employee or a director) for any reason within the thirty (30) day period immediately after the one (1) year period following a Change in Control of the Corporation. 
 8. Definitions. For the purposes of this Agreement, the following terms shall have the definitions set forth below: 
 (a) “Cause” means (i) any act (A) that constitutes, on the part of the Grantee, fraud, dishonesty, a felony or gross malfeasance of
duty and (B) that directly results in a material injury to the Corporation; or (ii) conduct by the Grantee in his office with the Corporation that is grossly inappropriate and demonstrably likely to lead to material injury to the
Corporation, as determined by the Board acting reasonably and in good faith; provided, however, that in the case of (ii) above, such conduct shall not constitute Cause unless the Board shall have delivered to the Grantee notice setting forth
with specificity (A) the conduct deemed to qualify as Cause, (B) reasonable action that would remedy such objection, and (C) a reasonable time (not less than 30 days) within which the Grantee may take such remedial action, and the
Grantee shall not have taken such specified remedial action within such specified reasonable time. 
 (b) “Change in Control of the
Corporation” means (i) the acquisition, directly or indirectly, by any “person” (within the meaning of Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) within any
twelve-month period of securities of the Corporation representing an aggregate of twenty percent (20%) or more of the combined voting power of the Corporation’s then outstanding securities; or (ii) during any period of two consecutive
years, individuals who at the beginning of such period constitute the Board of Directors of the Corporation, cease for any reason to constitute at least a majority thereof, unless the election of each new director was approved in advance by a vote
of at least a majority of the directors then still in office who were directors at the beginning of the period; or (iii) consummation of a merger or consolidation or other business combination of the Corporation with any other person, other
than a merger, consolidation or business combination which would result in the outstanding Common Stock immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into common stock of the surviving
entity or a parent or affiliate thereof) at least sixty percent (60%) of the outstanding common stock of the Corporation or such surviving entity or parent of affiliate thereof outstanding immediately after such merger, consolidation or
business combination; or (iv) a plan of complete liquidation of the Corporation or an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets; or (v) the occurrence of any other
event or circumstance which is not covered by (i) through (iv) above which the Board determines affects control of the Corporation and, in order to implement the purposes of this agreement, adopts a resolution that such event or
circumstance constitutes a Change in Control for purposes of this agreement. 

 (c) “Disability” means total and permanent disability as determined under the
Corporation’s long-term disability plan. 
 (d) “Retirement” means termination of employment under circumstances in which the
Grantee is entitled to a benefit from the Corporation’s defined benefit pension plan. 
 9. Disposition of Shares. Grantee agrees to notify the
Corporation promptly of the disposition of any shares of Common Stock purchased pursuant to this option which are disposed of within one year after transfer of such shares to Grantee, or within two years of the date of the grant of such option. For
purposes of such notification, “disposition” shall have the meaning assigned to it in Section 425(c) of the Code. 
 10. Adjustment of
Awards. In the event of any change in corporate capitalization, such as stock split, or a corporate transaction, such as a merger, consolidation, separation or other distribution of stock or property of the Corporation, any reorganization
(whether or not such reorganization comes within the definition of such term in Code Section 368) or any partial or complete liquidation of the Corporation, such adjustment shall be made in the number and class of and/or price of the Option
Shares as may be determined to be appropriate and equitable by the Corporation’s Board of Directors, in its sole discretion, to prevent dilution or enlargement of the benefits or potential benefits intended to be available under this agreement;
provided that the number of Option Shares shall always be a whole number. 
 11. Interpretation. Any question of interpretation or application of this
Agreement shall be resolved by the Corporation’s Board of Directors and its determination shall be final and binding on the Corporation and Grantee. 
 12. Notices. All notices hereunder shall be in writing and, if to the Corporation, shall be delivered personally to the Chairman or mailed to the Corporation’s principal office at P.O. Box 1000, Blountsville, Alabama 35031,
addressed to the attention of the Chairman; and if to Grantee, shall be delivered personally or mailed to him at the address for Grantee found in the Corporation’s records. Such addresses may be changed at any time by notice from one party to
the other. 
 13. Binding Effect. This Agreement shall bind and inure to the benefit of the parties hereto, the successors and assigns of the
Corporation and the person to whom the rights of Grantee are transferred by will or the laws of descent and distribution. 
 14. Amendment. This
Agreement may be amended from time to time by the Board, but no such amendment shall impair the rights of the Grantee without the Grantee’s consent. 

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

  

					
		 	COMMUNITY BANCSHARES, INC.
			
		 	By:	 	 /s/ Patrick M. Frawley

		 		 	Patrick M. Frawley
		 		 	Chairman, President and Chief Executive Officer
		
	WITNESS:	 	GRANTEE:
			
	 /s/ Carol S. Murcks
	 		 	 /s/ William H. Caughran

		 		 	William H. CaughranBenefit Restoration Plan

 EXHIBIT 10.54 
 COMMUNITY BANCSHARES, INC. 
 BENEFIT RESTORATION PLAN 
 EFFECTIVE JANUARY 1, 1995 
 ARTICLE 1 - ESTABLlSHMENT AND PURPOSE 
 1.1 Establishment. Community Bancshares, Inc. (the “Bank”), hereby establishes, effective as of January 1, 1995, a nonqualified
retirement benefit plan to be known as the “Community Bancshares Benefit Restoration Plan” (the “Plan”). 
 1.2
Purpose. The general purpose of this Plan is to provide the amount of the benefit which would otherwise be paid under the Bank’s pension plan but which cannot be paid under that plan on account of the limitations imposed by the Internal
Revenue Code of ‘1987 (“Code”). 
 ARTICLE II - DEFINITIONS AND CONSTRUCTION 
 2.1 Definitions. Unless otherwise indicated, the terms used in this Plan shall have the same meaning as they have under the Bank’s qualified
defined benefit pension plan in effect on the applicable date with two exceptions: 
 (1) definition of “compensation” shall also
include (a) amounts in excess of the “Section 401 Limits” that specify the maximum amount of employee compensation that can be taken into account for determining qualified retirement plan benefits and (b) amounts, if any,
deferred by a participant under the terms of any nonqualified deferred compensation plan maintained by the Bank, and 
 (2) the amount of
retirement benefit shall include the amount in excess of the “Section 415 Limits” that specify the maximum benefit that can be paid from a qualified retirement plan. 
 2.2 Gender and Number. Except when otherwise indicated by the context, any masculine terminology when used in the Plan shall also include the
feminine gender, and the definition of any term in the singular shall also include the plural. 
 2.3 Severability. In the event any
provision of the Plan shall be held invalid or illegal for any reason, any illegality or invalidity shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if the illegal or invalid provision had never been
inserted, and the Bank shall have the privilege and opportunity to correct and remedy such questions of illegality or invalidity by amendment as provided in the Plan. 
 2.4 Applicable Law. This Plan shall be governed and construed in accordance with the laws of the State of Alabama. 
 2.5 Plan Not an Employment Contract. This Plan is not an employment contract. It does not give to any person the right to be continued in employment, and all employees remain subject to change of salary,
transfer, change of job, discipline, layoff, discharge, or any other change of employment status. 
 ARTICLE III - PARTICIPATION IN THE
PLAN 
 3.1 Participants. A person who is in a select group of management and an officer of the Bank and who has been extended
coverage under the Plan by the Bank shall become a participant in this Plan when his annual pension benefit under the pension plan is reduced on account of the limitations of the Internal Revenue Code. The Committee shall determine if an employee of
the Bank is eligible to participate in the Plan. 

 ARTICLE lV - BENEFITS 
 4.1 Amount of Benefits. If benefits under the pension plan commence at the normal retirement date in the form of a single life annuity, the
monthly benefit payable under this Plan to the participant shall be equal to the difference between the amount in (1) and the amount in (2) where — 
 (1) is the amount of the monthly benefit that would be payable under the pension plan before the application of the limitations imposed by the Code and by using the definition of compensation as provided in this Plan;
and 
 (2) is the amount of the monthly benefit actually payable under the pension plan. 
 4.1 (a) Deferred Annuity. If the Bank discharges all or a portion of its obligation to pay benefits to a participant under the terms of this
Plan by purchasing a deferred annuity payable to the participant, any benefit payable under Sections 4.1 and 4.4 shall be reduced by the actuarial equivalent of the pre-tax value of such annuity. 
 4.1 (b) Payments at Other Times and Other Forms. If benefits under the pension plan commence at a time other than the normal retirement date
or in a form of payment other than a single life annuity, the amount of the benefit payable under this Plan shall be the amount specified in subsection (a), adjusted using the same factors and assumptions used to compute the benefit payable under
the pension plan. 
 4.2 Form of Payment. Benefits payable under this Plan shall be paid in the same manner as benefits payable under
the pension plan. However, if the lump sum actuarial equivalent of any benefits payable is $10,000 or less, in its sole discretion, the Executive Committee may direct the payment of such benefits due a participant, spouse, or beneficiary under this
Plan in the form of such lump sum amount. The actuarial assumptions for computing the lump sum amount shall be the same assumptions used to compute a lump sum payable under the pension plan. The payment of the lump sum shall be in full discharge of
the Bank’s obligations under the Plan to the participant, his spouse, or beneficiaries. 
 4.3 Commencement Date. Benefits
payable under this Plan shall commence on or about the same date that benefits commence under the pension plan. 
 4.4 Death Benefits.
A death benefit shall be payable to a surviving spouse or other designated beneficiary of the participant if a death benefit is payable under the terms of the pension plan. Such death benefit shall be computed using the same factors and assumptions
used to compute the applicable death benefit under the pension plan and shall be paid in the same form as such death benefit, except that the amount of the death benefit shall be computed with respect to the amount of the benefit the participant
accrues under this Plan. 
 4.5 Disability Benefits. A disability benefit shall be paid to a participant if a disability benefit is
payable under the terms of the pension plan and shall be computed and paid in the same form as such disability benefit, except that the amount shall be based on the benefit the participant accrues under this Plan. 
 4.6 Vesting. A participant shall become vested in the benefit payable under Section 4.1 at the same time he becomes vested under the pension
plan. 
 4.7 Funding. All amounts paid under this Plan shall be paid in cash from the general assets of-the Bank. Benefits shall be
reflected on the accounting records of the Bank but shall not be construed to create, or require the creation of, a trust, custodial or escrow account. No employee shall have any right, title, or interest whatever in or to any investment reserves,
accounts, or funds that the Bank may purchase, establish, or accumulate to aid in providing the benefits described in this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, 

 
shall create or be construed to create a trust or a fiduciary relationship of any kind between the Bank and an employee or any other person. Neither an
employee nor a beneficiary of an employee shall acquire any interest greater than that of an unsecured creditor. 
 4.8 Tax
Withholding. The Bank may withhold from a payment any federal, state, or local taxes required by law to be withheld with respect to such payment and such sum as the Bank may reasonably estimate as necessary to cover any taxes for which the Bank
may be liable and which may be assessed with regard to such payment. 
 4.9 Nontransferabilitv. An employee or his beneficiary shall
have no rights by way of anticipation or otherwise to assign or otherwise dispose of any interest under this Plan, nor shall rights be assigned or transferred by operation of law. 
 ARTICLE V - ADMINISTRATION 
 5.1 Administration. The Plan shall be
administered by the Executive Committee of the board. The Committee shall have the authority to interpret the Plan, to adopt and review rules relating to the Plan and to make any other determinations for the administration of the Plan. 

Subject to the terms of the Plan, the Committee shall have exclusive jurisdiction to (a) select the employees eligible to become participants, (b) determine
the eligibility for, and form and method of any benefit payments, (c) establish the timing of benefit distributions, and (d) settle claims according to the provisions in Article VI. 
 5.2 Costs. The Committee may employ such counsel, accountants, actuaries, and other agents as it shall deem advisable. The Employer shall pay the
compensation of such counsel, accountants, actuaries, and other agents and any other expenses incurred by the Committee in the administration of the Plan. 
 5.3 Finality of Determination The determination of the Committee as to any disputed questions arising under this Plan, including questions of construction and interpretation, shall be final, binding, and
conclusive upon all persons. 
 5.4 Indemnification and Exculpation. The members of the Committee, its agents, and officers,
directors, and employees of the Bank and its affiliates shall be indemnified and held harmless by the Bank against and from any and all loss, cost, liability, or expense that may be imposed upon or reasonably incurred by them in connection with or
resulting from any claim, action, suit, or proceeding to which they may be a party or in which they may be involved by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by them in settlement
(with the Bank’s written approval) or paid by them in satisfaction of a judgment in any such action, suit, or proceeding. The foregoing provision shall not be applicable to any person if the loss, cost, liability, or expense is due to such
person’s gross negligence or willful misconduct. 
 ARTICLE VI – CLAIMS PROCEDURE 
 6.1 Written Claim. Benefits shall be paid in accordance with the provisions of this agreement. The participant, or a designated recipient or any
other person claiming through the participant, shall make a written request for benefits under this agreement. This written claim shall be mailed or delivered to the named fiduciary. Such claim shall be reviewed by the named fiduciary or his
delegate. The named fiduciary for this Plan shall be the same as the named fiduciary of the Bank’s pension plan. 
 6.2 Denied
Claim. If the claim is denied, in full or in part, the named fiduciary shall provide a written notice within ninety (90) days setting forth the specific reasons for denial, and any additional material or information necessary to perfect the
claim, and an explanation of why such material or information is necessary, and appropriate information and explanation of the steps to be taken if a review of the denial is desired. 

 6.3 Review Procedure. If the claim is denied and a review is desired, the participant (or
beneficiary) shall notify the named fiduciary in writing within sixty (60) days (a claim shall be deemed denied if the named fiduciary does not take any action within the aforesaid ninety (90) day period) after receipt of the written
notice of denial. In requesting a review, the participant or his beneficiary may request a review of the plan document or other pertinent documents with regard to the employee benefit plan created under this agreement, may submit any written issues
and comments, may request an extension of time for such written submission of issues and comments, and may request that a hearing be held, but the decision to hold a hearing shall be within the sole discretion of the Committee. 
 6.4 Committee Review. The decision on the review of the denied claim shall be rendered by the Committee within sixty (60) days after the
receipt of the request for review (if no hearing is held) or within sixty (60) days after the hearing if one is held. The decision shall be written and shall state the specific reasons for the decision including reference to specific provisions
of this Plan on which the decision is based. 
 ARTICLE VII MERGER, AMENDMENT. AND TERMINATION 
 7.1 Merger-Consolidation, or Acquisition. The Plan shall be binding upon the Bank, its assigns, and any successor Bank which shall succeed to
substantially all of its assets and business through merger, consolidation or acquisition. 
 7.2 Amendment and Termination. The Board
of Directors of the Bank may amend, modify, or terminate the Plan at any time. in the event of a termination of the Plan pursuant to this section, unpaid benefits of a participant who has retired or benefits of a participant who is eligible for
retirement under the terms of the Bank’s pension plan shall continue to be an obligation of the Bank and shall be paid as scheduled. 
 ARTICLE VIII - SPECIAL RULES IN THE EVENT OF A CHANGE IN CONTROL 
 8.1 Change in Control. Notwithstanding anything to
the contrary in any other section of this Plan. in the event a change in control shall occur (as defined below), neither the Bank nor its Board of Directors shall thereafter remove a participant from the Plan nor shall the Bank or its Board of
Directors terminate, modify, or amend, in whole or in part, any or all of the provisions of this Plan, unless all of the participants covered by the Plan at the time of the change in control give their written consent to such termination,
modification or amendment. In no event shall such action reduce the benefits of any disabled or retired participant or his beneficiary. In the event of a change in control, participants shall immediately become vested in benefits payable from this
Plan. ‘Change in Control” means any one of the events specified in the following clauses (a) through (d) occurring after the adoption of this Plan: 
 (a) any third person, including a “group’ as defined in Section 13(d)(3) of the Securities Exchange Act of 1 934, shall become the beneficial owner of shares of the Corporation with respect to which 20%
or more of the total number of votes for the election of the Board of Directors of the Bank may be cast, 
 (b) as a result of, or in
connection with, any cash tender offer, exchange offer, merger or other business combination, sale of assets or contested election, or combination of the foregoing, the persons who were directors of the Bank shall cease to constitute a majority of
the Board of Directors of the Bank, 
 (c) the shareholders of the Bank shall approve an agreement providing either for a transaction in
which the Bank will cease to be an independent publicly-owned corporation or for a sale or other disposition of all or substantially all the assets of the Bank, or 
 (d) with respect to any period of two consecutive years commencing with or after the Date of Grant, individuals, who at the beginning of such period constitute the Board of Directors of the Bank, cease for any reason
to constitute at least a majority thereof, unless the election of each Director who was not a Director at the beginning of such period has been approved in advance by Directors representing at least two-thirds of the Directors then in office who
were Directors at the beginning of such period; 

 provided, however, that the occurrence of any of such events specified in the foregoing clauses (a) through
(c) shall not be deemed a “change in control” if, prior to such occurrence, a resolution specifically exempting such event specified in the foregoing clauses (a) through (c) shall have been adopted by at least a majority of
the Board of Directors of the Bank, provided further, that a “change in control” shall not be deemed to occur by reason of any subsequent acquisition or shares by a person or group (including any member or members of such group) which as
of the date of the adoption of the Plan was the beneficial owner of shares with respect to which twenty percent (20%) or more of the total number of votes for the election of the Board of Directors be cast. 
 8.2 Severance Pay. Payment of any benefits to a participant who is also entitled to receive severance pay (due to termination of employment after
a change of control) shall not be offset by said severance pay. 
 8.3 Timing of Benefit Payments. In the event of termination of
employment prior to retirement benefits payable under this section shall commence on or about the same date that pension plan benefits commence to be paid to the participant. 
 8.4 Legal Fees. The legal fees incurred by any participant (or former participant who was a participant when the change of control occurred) to
enforce his rights under this article shall be paid by the Bank in addition to sums due under this Plan. 
 lN WITNESS WHEREOF, The Bank has caused this
Instrument to be executed by its duly authorized officer on this 12th day of April, 1994, effective as of the 1st day of January, 1995. 
  

			
	COMMUNITY BANCSHARES, INC.
		
	By:	 	 /s/ Kennon R. Patterson, Sr.

		 	Kennon R. Patterson, Sr. Chairman & CEO

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