Document:

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                                                                   EXHIBIT 10.22

                                     FORM OF

                             STOCK OPTION AGREEMENT
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                           COMMUNITY BANCSHARES, INC.
                    2001 NONQUALIFIED STOCK OPTION AGREEMENT

         THIS AGREEMENT is made and entered into as of December 18, 2001,
between grantor Community Bancshares, Inc., a Delaware corporation (the
"Corporation") and grantee, __________________- (the "Grantee").

                                   WITNESSETH:

         The Board of Directors of the Corporation (the "Board") on December 18,
2001 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
_______ shares ("Option Shares") of the $.10 par value common stock of the
Corporation (the "Common Stock") at the purchase price of $10.00 per share (the
"Option Price"). The Option Price is 100% of the fair market value of the Common
Stock on December 18, 2001, 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.
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         (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:

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                  (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.

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         (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

                                    Page 115
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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.

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

                              COMMUNITY BANCSHARES, INC.

                              By:
                                 -----------------------------------------------
                              Kennon R. Patterson, Sr.
                              Chairman, President and Chief Executive Officer

WITNESS:                                    GRANTEE:

---------------------------                 ----------------------------------
                                                     Signature

                                    Page 117<PAGE>
                                                                   EXHIBIT 10.23

                        STOCK PURCHASE AGREEMENT BETWEEN

                          COMMUNITY BANCSHARES, INC AND

                       DENNY G. KELLY AND ARLENE S. KELLY

                                    Page 118
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STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT ("Agreement") is entered into as of the
9th day of January, 2002 by and among Denny G. Kelly, Arlene S. Kelly (each, a
"Seller," and collectively, the "Sellers"), and Community Bancshares, Inc., a
Delaware corporation (the "Purchaser").

                                    RECITALS:

         WHEREAS, Denny G. Kelly and Purchaser have entered into a retirement
agreement dated of equal date herewith in connection with Mr. Kelly's retirement
as an executive officer and director of Purchaser and its subsidiary; and

         WHEREAS, each of the Sellers own issued and outstanding shares of
common stock, $.10 par value per share (the "Common Stock"), of the Purchaser;
and

         WHEREAS, each of the Sellers desires to sell, and the Purchaser desires
to acquire, all of the shares of Common Stock held by the Sellers, for the
consideration and on the terms set forth in this Agreement.

         NOW, THEREFORE, in consideration of the premises, the mutual covenants
set forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

                                   AGREEMENT:

1.       Sale and Purchase of the Shares. Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing (as defined below), each
of the Sellers shall sell, transfer, convey and assign to the Purchaser, and the
Purchaser shall acquire, the number of shares of Common Stock set forth opposite
the name of such Seller on Exhibit A hereto (collectively, the "Shares") and all
of the Sellers' rights, title and interests therein. In exchange therefor, at
the Closing the Purchaser shall remit to the Sellers as the purchase price
hereunder (the "Purchase Price") cash in the amount of $12.00 per Share by wire
transfer of immediately available funds to a bank account specified by the
applicable Seller, or by such other method as to which the Purchaser and each
Seller may agree.

2.       Closing.

         (a)      The Closing of the transactions contemplated by this Agreement
                  shall take place at the offices of Purchaser, or at such other
                  place as may be mutually agreed upon by the parties hereto,
                  following satisfaction (or waiver thereof) of all of the
                  conditions set forth in Sections 6 and 7 hereof at a date
                  established by the Purchaser which shall be no later than the
                  second anniversary of the date of this Agreement (the "Closing
                  Date"). Notwithstanding the preceding, the Purchaser may, in
                  its sole discretion, elect to purchase portions of the Shares
                  at various dates within the two-year period commencing on the
                  date hereof. In that event there will be more than one closing
                  date and each event that is to occur on the Closing Date shall
                  occur on each date set by the Purchaser as the closing date
                  with respect to the pro rata number of Shares being purchased
                  on such date.

         (b)      At the Closing:

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                  (i)      Each of the Sellers (except as otherwise indicated
                           below) will deliver to the Purchaser:

                           (A)      certificates representing the number of
                  Shares set forth opposite the name of such Seller on Exhibit A
                  hereto, duly endorsed (or accompanied by duly executed stock
                  powers), with signatures guaranteed by a commercial bank or by
                  a member firm of the New York Stock Exchange, for transfer to
                  the Purchaser; and

                           (B)      a certificate executed by such Seller to the
                  effect that each of such Seller's representations and
                  warranties in this Agreement was true and correct in all
                  material respects as of the date of this Agreement and is true
                  and correct in all material respects as of the Closing Date as
                  if made on the Closing Date, and that such Seller has
                  performed all acts, obligations and conditions required to be
                  performed by such Seller at or prior to the Closing
                  (collectively, the "Sellers' Certificates").

                  (ii)     The Purchaser will deliver to the Sellers:

                           (A)      the Purchase Price in the respective amounts
                  set forth opposite the name of each Seller on Exhibit A hereto
                  by wire transfer to an account specified by such Seller or by
                  such other method as the Purchaser and each Seller may agree;
                  and

                           (B)      a certificate executed by the Purchaser to
                  the effect that each of the Purchaser's representations and
                  warranties in this Agreement was true and correct in all
                  material respects as of the date of this Agreement and is true
                  and correct in all material respects as of the Closing Date as
                  if made on the Closing Date, and that the Purchaser has
                  performed all acts, obligations and conditions required to be
                  performed by it at or prior to the Closing (the "Purchaser's
                  Certificate").

3.       Representations and Warranties of the Sellers. Each of the Sellers
represents and warrants, severally and not jointly, to the Purchaser as follows:

         (a)      Organization and Authority. Each of the Sellers is an
individual residing in the State of Alabama. Each of the Sellers has full power,
right, legal capacity and authority to enter into this Agreement and to carry
out the transactions contemplated hereby.

         (b)      Authorization and Binding Effect. The execution, delivery and
performance of this Agreement by each of the Sellers has been approved by all
requisite action and no other approval or authorization is required on the part
of the Sellers or any other person by law or otherwise in order to make this
Agreement a valid, binding and enforceable obligation of the Sellers. This
Agreement is and will constitute a valid and legally binding obligation of each
of the Sellers and will be enforceable against each of the Sellers in accordance
with the terms hereof, except as that enforceability may be (i) limited by any
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights generally and (ii) subject to
general principles of equity (regardless of whether that enforceability is
considered in a proceeding in equity or at law).

         (c)      Title to Shares. Each of the Sellers is and will be on the
Closing Date the record and beneficial owner and holder of the number of Shares
set forth opposite the name of such Seller on Exhibit A hereto, free and clear
of all liens, pledges, options, rights of first refusal, charges and
encumbrances except

                                    Page 120
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those liens and encumbrances listed on Exhibit B. None of the Shares is the
subject of any shareholder agreement, voting trust or other agreement or
understanding relating to the voting thereof or restricting in any way the sale
or transfer thereof.

         (d)      Conflicts. The execution of this Agreement by each of the
Sellers, the compliance by each of the Sellers with the provisions of this
Agreement and the consummation by each of the Sellers of the transactions
contemplated hereby (i) will not violate any provision of applicable law to
which any of the Sellers is subject, (ii) will not constitute a default under,
or are not events which, with notice, lapse of time, or both, would constitute a
default under, or result in the termination of, or accelerate the performance
required by any of the terms, conditions or provisions of, any contract,
agreement or other instrument binding on any of the Sellers, (iii) will not (due
to the action or inaction of any Seller) result in the creation of any
encumbrance upon any of the Shares, (iv) will not require the consent or
approval of, or registration, declaration or filing with, any court,
administrative agency or commission or other governmental authority or
instrumentality, and (v) do not violate any order, writ, injunction, decree or
arbitral award, statute, rule or regulation applicable to any of the Sellers.

         (e)      Litigation. There is no litigation, arbitration, claim,
investigation or proceeding pending or, to the best knowledge of each of the
Sellers, threatened against any of the Sellers at law or in equity, before any
court, arbitration tribunal or governmental agency that questions (i) the
validity of this Agreement, the Sellers' Releases, the Standstill Agreement or
the Stipulation, or (ii) the right of the Sellers to enter into such agreements
and releases or to consummate the purchase and sale of the Shares and other
transactions contemplated herein or therein. To the best of each of the Seller's
knowledge, there is no reasonable basis for any such litigation, arbitration,
claim, investigation or proceeding against any of the Sellers.

         (f)      Securities Laws. Each of the Sellers has held the Shares owned
by such Seller of record and beneficially for more than one year except those
Shares issued by the Purchaser upon the exercise of stock options by Denny G.
Kelly in accordance with those certain Nonqualified Stock Option Agreements
dated March 28, 1996 and March 27, 1997. None of the Sellers purchased any of
the Shares from the Purchaser with a view to the distribution of such Shares or
engages, either full-time or part-time, directly or indirectly, as agent,
broker, or principal, in the business of offering, buying, selling or otherwise
dealing or trading in the Shares.

         (g)      Information. Each Seller has had the opportunity to ask for,
and has received all information requested from the Purchaser, that such Seller
deems, based on the representations and warranties made by the Purchaser herein,
necessary or desirable in order to make such Seller's decision to sell the
Shares to the Purchaser in accordance with the terms of this Agreement.

         (h)      Absence of Brokers. The Sellers have incurred no obligation or
liability, contingent or otherwise, for brokerage or finder's fees or
commissions or other similar payments in connection with this Agreement or the
transactions provided for herein.

4.       Representations and Warranties of the Purchaser. The Purchaser
represents and warrants to the Sellers as follows:

         (a)      Organization and Authority. The Purchaser is a corporation
duly organized and validly existing in good standing under the laws of the State
of Delaware. The Purchaser has full power, right, legal capacity and authority
to enter into this Agreement and to carry out the transactions contemplated
hereby.

                                    Page 121
<PAGE>

         (b)      Authorization and Binding Effect. The execution, delivery and
performance of this Agreement by the Purchaser has been approved by all
requisite corporate action on the part of the Purchaser and no other corporate
approval or authorization is required on the part of the Purchaser or any other
person by law or otherwise in order to make this Agreement a valid, binding and
enforceable obligation of the Purchaser. This Agreement is and will constitute a
valid and legally binding obligation of the Purchaser and will be enforceable
against it in accordance with the terms hereof, except as that enforceability
may be (i) limited by any applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors' rights
generally and (ii) subject to general principles of equity (regardless of
whether that enforceability is considered in a proceeding in equity or at law).

         (c)      Conflicts. The execution by the Purchaser of this Agreement,
the compliance by it with the provisions of this Agreement and the consummation
by it of the transactions contemplated hereby (assuming any required regulatory
approvals are obtained) (i) will not violate any provision of applicable law to
which the Purchaser is subject, (ii) will not conflict with any of the terms of
the Purchaser's Certificate of Incorporation, Bylaws or any amendments thereto,
(iii) will not constitute a default under, or are not events which, with notice,
lapse of time, or both, would constitute a default under, or result in the
termination of, or accelerate the performance required by any of the terms,
conditions or provisions of any contract, agreement or other instrument binding
on the Purchaser, and (iv) do not violate any order, writ, injunction, decree or
arbitral award, statute, rule or regulation applicable to the Purchaser.

         (d)      Litigation. There is no litigation, arbitration, claim,
investigation or proceeding pending or, to the best knowledge of the Purchaser,
threatened against the Purchaser at law or in equity, before any court,
arbitration tribunal or governmental agency that questions (i) the validity of
this Agreement, or (ii) the right of the Purchaser to enter into such agreements
and release or to consummate the purchase and sale of the Shares and other
transactions contemplated herein or therein. To the best of the Purchaser's
knowledge, there is no reasonable basis for any such litigation, arbitration,
claim, investigation or proceeding against the Purchaser.

         (e)      Rights Plan. The execution by the Sellers and the Purchaser of
this Agreement does not, and the consummation of the transactions contemplated
herein in accordance with the terms hereof will not, contravene or trigger the
exercise of preferred share purchase rights granted under the Purchaser's Share
Purchase Rights Plan or that certain Rights Agent Agreement, dated as of January
13, 1999, between the Purchaser and the Bank of New York.

         (f)      Absence of Brokers. The Purchaser has incurred no obligation
or liability, contingent or otherwise, for brokerage or finder's fees or
commissions or other similar payments in connection with this Agreement or the
transactions provided for herein.

5.       Covenants.

         (a)      Best Efforts; Cooperation. Upon the terms and subject to the
conditions set forth in this Agreement, each of the parties agrees to use such
party's reasonable best efforts to take, or cause to be taken, all actions, and
to do, or cause to be done, and to assist and cooperate with the other parties
in doing, all things necessary, proper or advisable to consummate and make
effective the transactions contemplated by this Agreement, including (i) the
obtaining of all necessary actions or nonactions, waivers, consents and
approvals from governmental entities and the making of all necessary
registrations and filings and the taking of all steps as may be necessary to
obtain an approval or waiver from, or to avoid an action or proceeding by, any
governmental entity, (ii) the obtaining of all necessary consents, approvals or
waivers from third parties, (iii) the execution and delivery of any additional
instruments necessary to consummate the transactions

                                    Page 122
<PAGE>

contemplated by, and to fully carry out the purposes of, this Agreement, and
(iv) causing the conditions in Sections 6 and 7 of this Agreement to be
satisfied.

         (b)      No Negotiation. Until such time, if any, as this Agreement is
terminated pursuant to Section 9 hereof, the Sellers will not, and will cause
each of their agents or representatives not to, directly or indirectly, solicit,
initiate, participate in or encourage any inquiries or proposals from, discuss
or negotiate with, provide any non-public information to, or consider the merits
of any unsolicited inquiries or proposals from, any person, individual or entity
(other than the Purchaser) relating to any transaction involving the sale,
transfer, encumbrance or pledge of the Shares.

         (c)      Notification. (i) Between the date of this Agreement and the
Closing Date, each Seller will promptly notify the Purchaser in writing if such
Seller becomes aware of any fact or condition that causes or constitutes a
breach of any of the Sellers' representations and warranties herein as of the
date of this Agreement, or if such Seller becomes aware of the occurrence after
the date of this Agreement of any fact or condition that would (except as
expressly contemplated by this Agreement) cause or constitute a breach of any
such representation or warranty had such representation or warranty been made as
of the time of occurrence or discovery of such fact or condition. During the
same period, each Seller will promptly notify the Purchaser of the occurrence of
any breach of any covenant of the Sellers in this Section 5 or of the occurrence
of any event that may make the satisfaction of the conditions in Section 6
impossible or unlikely. Each of the Sellers acknowledges that the Purchaser is
under no obligation to provide information of a non-public nature to the Sellers
based on events that occur after the execution of this Agreement, except to the
extent that such information is otherwise made available through the Purchaser's
public filings with the Securities and Exchange Commission.

         (ii)     Between the date of this Agreement and the Closing Date, the
Purchaser will promptly notify the Sellers in writing if the Purchaser becomes
aware of any fact or condition that causes or constitutes a breach of any of the
Purchaser's representations and warranties herein as of the date of this
Agreement, or if the Purchaser becomes aware of the occurrence after the date of
this Agreement of any fact or condition that would (except as expressly
contemplated by this Agreement) cause or constitute a breach of any such
representation or warranty had such representation or warranty been made as of
the time of occurrence or discovery of such fact or condition. During the same
period, the Purchaser will promptly notify the Sellers of the occurrence of any
breach of any covenant of the Purchaser in this Section 5 or of the occurrence
of any event that may make the satisfaction of the conditions in Section 7
impossible or unlikely.

         (d)      Confidentiality. Each of the Sellers shall keep, and shall
cause their agents and representatives to keep, the existence and terms of this
Agreement and the transactions contemplated herein and therein, and the
discussions and negotiations related thereto, and all information regarding the
Purchaser or provided by the Purchaser in connection herewith strictly
confidential, shall only disclose the same to such Seller's attorneys,
accountants and financial advisors on a need-to-know basis, unless (i) such
information is already known to such party or to others not bound by a duty of
confidentiality or such information becomes publicly available through no fault
of such party, or (ii) the furnishing or use of such information is required in
connection with, legal proceedings, and shall not at any time use such
information for any business purpose other than with respect to the transactions
contemplated by this Agreement.

         (e)      Voting.  Between the date of this Agreement and the Closing
Date, each Seller agrees to vote (or, in the case of Shares as to which the
Seller is the beneficial, but not record owner, direct the record holder to
vote) the Shares listed on Exhibit A and any other shares of Company Common
Stock as to which such Seller acquired any legal or beneficial interest in
accordance with the recommendations of the

                                    Page 123
<PAGE>

Purchaser's Board of Directors on any matter submitted to the Purchaser's
shareholders at any annual or special meeting of shareholders.

6.       Conditions to the Obligations of the Purchaser. The obligation of the
Purchaser to consummate the transactions contemplated by this Agreement is
subject to the following conditions:

         (a)      Representations and Warranties. The representations and
warranties of each of the Sellers, as set forth in Section 3 above, shall be
true and correct in all material respects as of the Closing, and each of the
Sellers shall have performed all acts, obligations and conditions required to be
performed by the Sellers at or prior to the Closing.

         (b)      Closing Certificates. The Sellers shall have delivered to the
Purchaser the Sellers' Certificates.

         (c)      Proceedings and Documents Satisfactory. All proceedings in
connection with the transactions contemplated hereby and all certificates and
documents delivered to the Purchaser pursuant to this Agreement shall be
satisfactory in form and substance to the Purchaser and its counsel acting
reasonably and in good faith.

         (d)      No Obstructive Proceeding. No action or proceedings shall have
been instituted, and no order, decree or judgment of any court, agency,
commission or governmental authority shall be subsisting, against any of the
Sellers or the Purchaser which seeks to, or would, render it unlawful as of the
Closing to effect the transactions contemplated hereby in accordance with the
terms hereof, and no such action shall seek damages in a material amount by
reason of the transactions contemplated hereby. Also, no substantive legal
objection to the transactions contemplated by this Agreement shall have been
received from or threatened by any governmental department or agency.

         (e)      Release of Liens; No Claim Regarding Stock Ownership or Sale
Proceeds. The lienholders listed on Exhibit B must have agreed in writing to
release any lien or encumbrance upon the Shares being transferred to Purchaser
upon receipt of the Purchase Price or a portion thereof. There must not have
been made or threatened by any person unrelated to the Purchaser or its
subsidiaries any claim asserting that such person (i) is the holder or the
beneficial owner of, or has the right to acquire or to obtain beneficial
ownership of, any voting, equity or ownership interest in, any of the Shares, or
(ii) is entitled to all or any portion of the Purchase Price payable for the
Shares.

         (f)      Consents and Approvals. All of the consents, permits and
licenses required from any federal, state or local governmental agency or
organization, and all releases, waivers of default and consents to assignment
required from any third party, with respect to consummation of the transactions
contemplated hereby shall have been obtained.

         (g)      Performance of Obligations. The Sellers shall have performed
in all material respects all obligations required to be performed by them under
this Agreement prior to the Closing Date, and the Purchaser shall have received
a certificate to such effect signed by each of the Sellers.

7.       Conditions to the Obligations of the Sellers. The Sellers' obligations
to consummate the transactions contemplated by this Agreement are subject to the
following conditions:

                                    Page 124
<PAGE>

         (a)      Representations and Warranties. The representations of the
Purchaser, as set forth in Section 4 above, shall be true and correct in all
material respects as of the Closing, and the Purchaser shall have performed all
acts, obligations and conditions required to be performed by it at or prior to
the Closing.

         (b)      Closing Certificate. The Purchaser shall have delivered to the
Seller the Purchaser's Certificate.

         (c)      Proceedings and Documents Satisfactory. All proceedings in
connection with the transactions contemplated hereby and all certificates and
documents delivered to the Purchaser pursuant to this Agreement shall be
satisfactory in form and substance to the Sellers and the Sellers' counsel
acting reasonably and in good faith.

         (d)      No Obstructive Proceeding. No action or proceedings shall have
been instituted, and no order, decree or judgment of any court, agency,
commission or governmental authority shall be subsisting, against any of the
Sellers or the Purchaser which seeks to, or would, render it unlawful as of the
Closing to effect the transactions contemplated hereby in accordance with the
terms hereof, and no such action shall seek damages in a material amount by
reason of the transactions contemplated hereby. Also, no substantive legal
objection to the transactions contemplated by this Agreement shall have been
received from or threatened by any governmental department or agency.

         (e)      Consents and Approvals. All of the consents, permits and
licenses required from any federal, state or local governmental agency or
organization, and all releases, waivers of default and consents to assignment
required from any third party, with respect to consummation of the transactions
contemplated hereby shall have been obtained.

         (f)      Performance of Obligations. The Purchaser shall have performed
in all material respects all obligations required to be performed by it under
this Agreement prior to the Closing Date, and the Sellers shall have received a
certificate to such effect signed on behalf of the Purchaser by an officer of
the Purchaser.

8.       Indemnification.

         (a)      Survival; Knowledge. All representations and warranties,
covenants and agreements of the parties made in this Agreement shall survive the
Closing for a period of 36 months after the Closing Date, unless otherwise
specifically provided herein. The right to indemnification, payment of damages
or other remedy based on representations, warranties, covenants and obligations
herein will not be affected by any investigation conducted with respect to, or
any knowledge acquired (or capable of being acquired) at any time, whether
before or after the execution and delivery of this Agreement or the Closing
Date, with respect to the accuracy or inaccuracy of or compliance with, any such
representation, warranty, covenant or obligation. The waiver of any condition
based on the accuracy of any representation or warranty, or on the performance
of or compliance with any covenant or obligation, will not affect the right to
indemnification, payment of damages, or other remedy based on such
representations, warranties, covenants and obligations.

         (b)      Indemnification of the Purchaser. Each of the Sellers, jointly
and severally, agrees to indemnify, defend and hold harmless the Purchaser and
its directors, officers, stockholders, employees, agents, affiliates and
representatives from and against any and all damages, losses, settlement
payments, obligations, liabilities, penalties, claims, actions or causes of
action, encumbrances and reasonable costs and expenses (including, without
limitation, attorneys' fees and costs of investigation) suffered, sustained,
incurred or paid by any such indemnified party because of the untruth,
inaccuracy or breach of any

                                    Page 125
<PAGE>

representation, warranty, agreement or covenant of any of the Sellers contained
in or made pursuant to this Agreement or the Sellers' Certificates.

         (c)      Indemnification of the Sellers. The Purchaser agrees to
indemnify, defend and hold harmless each of the Sellers from and against any and
all damages, losses, settlement payments, obligations, liabilities, penalties,
claims, actions or causes of action, encumbrances and reasonable costs and
expenses (including, without limitation, attorneys' fees and costs of
investigation) suffered, sustained, incurred or paid by any such indemnified
party because of the untruth, inaccuracy or breach of any representation,
warranty, agreement or covenant of the Purchaser contained in or made pursuant
to this Agreement or the Purchaser's Certificate.

         (d)      Notice and Opportunity to Defend. (i) In the case of a claim
based on a demand by a third party, a party making a claim for indemnification
hereunder (the "Indemnified Party") shall notify in writing the indemnifying
party (the "Indemnitor") of the claim, describing the claim, the amount thereof,
and the basis therefor, within 15 days after a third-party claim is presented to
the Indemnified Party. The Indemnitor shall have the right to assume the entire
control of the defense, compromise or settlement thereof, and, in connection
therewith, the Indemnified Party shall cooperate fully to make available to the
Indemnitor all pertinent information under its control. If the Indemnitor fails
to assume the defense of such claim within a reasonable length of time, the
Indemnified Party may do so without the Indemnitor's participation, in which
case the Indemnitor shall pay the expenses of such defense, and the Indemnified
Party may settle or compromise such claim without the Indemnitor's consent. If
the Indemnified Party fails to so notify the Indemnitor, and if the Indemnitor
is thereby materially prejudiced by such failure of notice in its defense of the
claim, the Indemnitor's obligation of indemnity hereunder shall be extinguished
with respect to such claim to the extent that the Indemnitor has been prejudiced
by the failure to give such notice.

         (ii)     In any case in which an Indemnified Party seeks
indemnification hereunder which is not subject to paragraph (I) of this Section
8(d) because no third-party action is involved, the Indemnified Party shall
promptly provide written notice to the Indemnitor of the claim, describing the
claim, the amount thereof, and the basis therefor. The Indemnitor shall respond
to each such claim within 30 days of receipt of such notice. No action shall be
taken pursuant to the provisions of this Agreement or otherwise by the
Indemnified Party until the later of (A) the expiration of the 30-day response
period (unless reasonably necessary to protect the rights of the Indemnified
Party), or (B) 30 days following the receipt of a response within such 30-day
period by the Indemnified Party requesting an opportunity to cure the matter
giving rise to the indemnification (and, in such event, the amount of such claim
for indemnification shall be reduced to the extent so cured within such 30-day
cure period).

         (e)      Non-Exclusive Remedies. The remedies provided in this Section
shall be non-exclusive and cumulative and shall not preclude assertion by any
party of any other rights or the seeking of any other rights or remedies against
any other party hereto.

         (f)      Limitation of Liability. Notwithstanding anything to the
contrary contained in this Agreement or otherwise, if, notwithstanding the
limitations contained in this Section 8 or elsewhere in this Agreement, the
Sellers nevertheless become liable to the Purchaser, in no event shall the
aggregate amount of such liability of the Sellers (including, but not limited
to, any and all liabilities of the Sellers for costs, expenses and attorneys'
fees paid or incurred in connection therewith or in connection with the curing
of any and all misrepresentations of representations or warranties or breaches
of covenants or agreements under this Agreement) exceed the Purchase Price.

                                    Page 126
<PAGE>

9.       Termination.

         (a)      Termination. This Agreement may be terminated and the
transactions contemplated hereby abandoned at any time prior to the Closing as
follows:

                  (i)      by the mutual consent of the Purchaser and the
         Sellers;

                  (ii)     by Sellers representing a majority of the Shares, if
         any of the conditions set forth in Section 7 hereof shall have not been
         met or if satisfaction of such a condition is or becomes impossible
         (other than through the failure of the Sellers to comply with the
         obligations of this Agreement) and the Sellers have not waived such
         condition on or before such date;

                  (iii)    by the Purchaser, if any of the conditions provided
         in Section 6 hereof have not been met or if satisfaction of such a
         condition is or becomes impossible (other than through the failure of
         the Purchaser to comply with the obligations of this Agreement) and the
         Purchaser has not waived such condition on or before such date; or

                  (iv)     by either the Sellers representing a majority of the
         Shares or the Purchaser if a material breach of any provision of this
         Agreement has been committed by the other of them and such breach has
         not been waived.

In the event of such termination by either the Purchaser or the Sellers pursuant
to this Section 9(a), written notice shall forthwith be given to the other
parties hereto.

         (b)      Events Upon Termination. In the event that this Agreement is
terminated as provided above:

                  (i)      the Purchaser shall deliver to the Sellers all
         documents (and copies thereof in its possession) previously delivered
         by the Sellers to the Purchaser in connection herewith;

                  (ii)     the Sellers shall deliver to the Purchaser all
         documents (and copies thereof in their possession) previously delivered
         by the Purchaser to the Sellers in connection herewith; and

                  (iii)    none of the parties hereto, nor any of their
         respective shareholders, directors or officers, shall have any
         liability to the other party for costs, expenses, loss of anticipated
         profits, consequential damages or otherwise, except that if this
         Agreement is terminated by the Purchaser or the Sellers because of a
         breach of this Agreement by the Purchaser (with respect to the Sellers)
         or the Sellers (with respect to the Purchaser), then the terminating
         party's right to pursue any and all legal and equitable remedies with
         respect thereto shall survive such termination unimpaired.

10.      Change in Control. The Change in Control Agreement dated December 4,
1999 between Denny G. Kelly and Purchaser is canceled and terminated as of the
date hereof. If prior to the consummation of the transactions contemplated
hereby Purchaser enters into an agreement to consolidate with, merge into or
sell, transfer or lease all or substantially all of its assets to any other
entity pursuant to which shareholders of Purchaser will receive an amount in
excess of $12.00 per share for their Common Stock, Sellers shall have the option
to terminate this Agreement and elect to receive the consideration for the
Shares offered to other shareholders of Purchaser.

                                    Page 127
<PAGE>

11.      Miscellaneous

         (a)      Notices. All notices, consents, waivers and other
communications under this Agreement must be in writing and will be deemed to
have been duly given if delivered by hand, by overnight delivery, or United
States mail, postage prepaid, registered or certified mail, return receipt
requested, upon delivery or refusal of delivery, in each case to the appropriate
addresses set forth below (or to such other addresses as a party may designate
by notice to the other party hereto): (i) if to the Sellers: Denny G. Kelly and
Arlene S. Kelly, 53 Creekwood Drive, Union Grove, Alabama 35175, and (ii) if to
the Purchaser: Community Bancshares, Inc., 68149 Main Street, Blountsville,
Alabama 35031, Attention: Kennon R. Patterson, Sr.

         (b)      Entire Agreement. This Agreement and the Exhibits, schedules
and documents delivered pursuant hereto constitute the entire agreement, and
supersedes any prior agreement, understanding or letter of intent (oral or
written), between the parties hereto relating to the subject matter of this
Agreement. To be effective, any modification of this Agreement must be in
writing and signed by the party to be charged thereby.

         (c)      Choice of Law. The validity and construction of this Agreement
shall be governed by the laws of the State of Alabama, without regard to the
principles of conflict of laws thereof.

         (d)      Headings. The Section headings herein are for reference only
and shall not limit or control the meaning of any provision of this Agreement.

         (e)      No Waiver. No delay or omission on the part of any party
hereto in exercising any right hereunder shall operate as a waiver of such right
or any other right under this Agreement.

         (f)      Assignment. No party hereto shall assign this Agreement, or
any rights, benefits, duties or obligations hereunder, or any interest therein,
without first obtaining the express prior written consent of the other parties
hereto; provided, however, that this Agreement may be assigned by any of the
Sellers to a revocable management trust formed by such Seller. Without waiver of
the foregoing provisions, all of the rights, benefits, duties, liabilities, and
obligations of the parties hereto shall inure to the benefit of and be binding
upon the parties and their respective heirs, successors and permitted assigns.

         (g)      Interpretation. The parties hereto have each negotiated the
terms hereof and reviewed this Agreement carefully. It is the intent of the
parties that each word, phrase, and sentence and other part hereof shall be
given its plain meaning, and that rules of interpretation or construction of
contracts that would construe any ambiguity of any part hereof against the
draftsman, by virtue of being the draftsman, shall not apply. When a reference
is made in this Agreement to an Article, Section or Exhibit, such reference
shall be to an Article or Section of, or an Exhibit to, this Agreement unless
otherwise indicated. Whenever the words "include", "includes" or "including" are
used in this Agreement, they shall be deemed to be followed by the words
"without limitation." The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement. All terms defined
in this Agreement shall have the defined meanings when used in any certificate
or other document made or delivered pursuant hereto unless otherwise defined
therein. The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such term. Any agreement, instrument or
statute defined or referred to herein or in any agreement or instrument that is
referred to herein means such agreement, instrument or statute as from time to
time amended, modified or supplemented, including (in the case of agreements or
instruments) by waiver or consent and (in the case of statutes) by succession of

                                    Page 128
<PAGE>

comparable successor statutes and references to all attachments thereto and
instruments incorporated therein. References to a person are also to its heirs,
successors and permitted assigns.

         (h)      Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall comprise one and the same document. In making proof of this Agreement, it
shall not be necessary to produce or account for more than one such counterpart
executed by the party against whom enforcement of this Agreement is sought.

         (i)      Attorneys' Fees. If legal action is commenced to enforce this
Agreement, the prevailing party in such action shall be entitled to recover its
reasonable costs and reasonable attorneys' fees in addition to any other relief
granted. The term "prevailing party" shall mean the party in whose favor final
judgment after appeal (if any) is rendered with respect to the claims asserted
in a complaint.

         (j)      Severability. If any provision of this Agreement shall be held
invalid under any applicable laws, such invalidity shall not affect any other
provision of this Agreement that can be given effect without the invalid
provision, and, to this end, the provisions hereof are severable.

         (k)      Expenses. All expenses incurred in connection with the
transactions contemplated hereby, including, without limitation, attorneys'
fees, accounting fees, sales taxes, recording fees, investment advisers' fees
and disbursements, shall be borne by the respective parties incurring such
expense, whether or not such transactions are consummated; it being understood
and agreed that all federal, state and local income, transfer and sales taxes
arising from the disposition of the Shares pursuant to this Agreement shall be
borne by the Sellers.

         (l)      Cooperation and Further Assurances. The parties hereto will
cooperate with each other and will use all reasonable efforts to cause the
fulfillment of the conditions to the parties obligations hereunder and to obtain
as promptly as possible all consents, authorizations, orders or approvals from
each and every third party, whether private or governmental, required in
connection with the transactions contemplated by this Agreement. From time to
time, at the Purchaser's request, and without further consideration, the Sellers
will execute, acknowledge and deliver all instruments of further assurance and
do all such acts and things as may reasonably be requested by the Purchaser for
the purpose of carrying out the intent of this Agreement and to more effectively
to convey, transfer to and vest in the Purchaser and its assignees, the Shares
to be conveyed hereunder.

         (m)      Schedules and Exhibits. The Schedules and Exhibits attached
hereto, and all Schedules and Exhibits attached hereto after the date of this
Agreement and prior to the Closing, are hereby incorporated into this Agreement
wherever reference is made to them to the same extent as if they were set out in
full at the point at which such reference is made.

         (n)      No Third Party Beneficiaries. Except as expressly provided
herein, this Agreement and its provisions, terms and conditions are for the sole
and exclusive benefit of the parties hereto and their heirs, successors and
permitted assigns.

                                    Page 129
<PAGE>

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

         THE "SELLERS"                           THE "PURCHASER"
                                                 COMMUNITY BANCSHARES, INC.

         /S/ DENNY G. KELLY                      BY: /S/ KENNON R . PATTERSON
         ---------------------------------           --------------------------
         DENNY G. KELLY                          KENNON R. PATTERSON, SR.
                                                 CHAIRMAN, PRESIDENT & CEO

         /S/ ARLENE S. KELLY
         ---------------------------------
         ARLENE S. KELLY

                                    EXHIBIT A

<TABLE>
<CAPTION>
                                                                    PURCHASE PRICE
SELLER                                       NUMBER OF SHARES        DUE TO SELLER
------                                       ----------------       --------------
<S>                                          <C>                    <C>
Denny G. Kelly and
Arlene S. Kelly as joint tenants
With right of survivorship                         60,208              $722,496

Denny G. Kelly                                        150              $  1,800
</TABLE>

In addition, Denny Kelly. is the beneficial owner of shares allocated to his
account in the Community Bancshares, Inc. Employee Stock Ownership Plan. Sellers
and Purchaser agree that the terms of this Stock Purchase Agreement shall apply
to those shares; provided, however, that no actions shall be taken by any party
with respect to such shares which, in the opinion of counsel, jeopardizes the
tax-qualified status of the ESOP under Section 401 of the Internal Revenue Code
of 1986, as amended.

                                    EXHIBIT B

Colonial Bank has a lien on approximately 49,000 shares and The Exchange Bank of
Altoona has a lien on 10,000 shares.

                                    Page 130

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