AMENDED AND RESTATED EMPLOYMENT AGREEMENT

                                                                    Exhibit 10-1

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

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

         This  Amended and Restated  Agreement  (as amended and  restated,  this
"Agreement") is entered into as of the 7th day of December, 2007, by and between
COMMUNITY   BANKSHARES,   INC.  (the  "Company"),   and  SAMUEL  L.  ERWIN  (the
"Employee").

                                    RECITALS:

         A. The Company and the Employee entered into an Employment Agreement as
of January 1, 2005 (the "Original Agreement").

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

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

         D. The Company and the Employee desire to amend the Original  Agreement
in compliance  with Internal  Revenue Code Section 409A and  associated  federal
regulations.

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

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

         2. Term of  Employment.  The employment of the Employee by the Company,
as  provided  under  Section  1,  commenced  on January 1, 2005 and shall end on
January 1, 2008 (the "Term of  Employment")  unless further  extended in writing
with express  reference to this  Agreement or sooner  terminated as  hereinafter
provided.  Commencing  on  January  1,  2008,  and on  each  annual  anniversary
thereafter,  the Term of  Employment  shall  automatically  be  extended  for an
additional year unless 90 days prior to the anniversary the Company gives notice
to the Employee  that the Term of  Employment  will not be  extended.  Except as
otherwise provided expressly herein, the provisions of this Agreement related to
Employee's  employment  will not apply after the Term of Employment  has expired
and any continuing employment of the Employee thereafter will be at-will and not
subject to the terms and conditions of this Agreement.

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

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

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

                  a. Base Salary.  During  2007,  Employee  shall  receive a per
         annum base  salary of  $204,250.00;  and during  2008,  Employee  shall
         receive a per annum base salary of  $219,570.00.  After the first three
         years of his employment,  and during the Term of Employment  under this
         Agreement,  the Company's Board of Directors  periodically  will review
         and may increase (but not decrease)  the  Employee's  base salary rate,
         all in accordance with the Company's salary administration policies and
         procedures  in effect  from time to time,  and each  change in the base
         salary  amount  listed in this Section shall become the new base salary
         amount.  Base salary shall be payable in equal  installments in arrears
         on the last day of the month or on such other  payroll  schedule  as is
         used by the Company  for other  employees.  The  Company  shall have no
         obligation  to  increase  the  Employee's   base  salary  rate  at  any
         particular  time or in any  particular  amount,  and any such  increase
         shall be in the sole and absolute  discretion of the Board of Directors
         of the Company.

                  b. Bonus and Incentive  Compensation.  For 2007,  the Employee
         shall be eligible for a potential maximum bonus of $45,750.00;  and for
         2008, the Employee  shall be eligible for a potential  maximum bonus of
         $55, 430.00. The eligibility criteria for such bonuses are set forth in
         Appendix  B hereto.  After his first  three  years of  employment,  the
         Company  shall pay to the  Employee  with  respect  to each  subsequent
         fiscal year during the Term of Employment  hereunder,  such cash bonus,
         if any, as shall be determined  pursuant to a bonus plan adopted by the
         Board of Directors of the Company for key  employees.  Any such bonuses
         shall be paid on the 15th day of the third month  following  the end of
         the  calendar  year in which  such bonus is earned.  In  addition,  and
         without diminution of any other compensation or benefit provided for in
         this   Agreement,   the  Employee  may  be  given  the  opportunity  to
         participate in other incentive  compensation  plans that may be adopted
         by the Company,  which participation  opportunity may be offered to the
         Employee  in the  sole  discretion  of the  Board of  Directors  of the
         Company.



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                  c. Stock Options.  The Company has  previously  granted to the
         Employee  pursuant to the Original  Agreement  nonqualified  options to
         purchase  30,000  shares of the Company's  common  stock.  The exercise
         price of all of the  options is equal to the fair  market  value of the
         Company's  common stock on the dates of grant, as determined  under the
         Company's 1997 Stock Option Plan. Each set of options vested upon grant
         and shall be exercisable  for a period of five years after the dates of
         grant.

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

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

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

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

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

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

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

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

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<PAGE>

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

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

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

                           (i) "Cause" shall mean:

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

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

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

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

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

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

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                           (ii) A "Change of Control"  of the  Company  shall be
                  deemed to have been effected for purposes of this Agreement on
                  the date:

                                    (A) any one person,  or more than one person
                           acting as a group, acquires ownership of stock of the
                           Company that, together with stock held by such person
                           or  group,  constitutes  more  than 50% of the  total
                           voting power of the Company's stock; or

                                    (B) any one person,  or more than one person
                           acting as a group,  acquires within a 12-month period
                           ownership of the Company's stock possessing more than
                           50% of the total voting power of the Company's stock;
                           or

                                    (C) the  Company is merged  with or into any
                           other entity and the persons who were shareholders of
                           the  Company  immediately  prior to the merger do not
                           continue to own stock having voting control over more
                           than 50% of the voting  securities  of the  surviving
                           entity immediately after the merger.

                           (iii) "Date of Termination" shall mean:

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

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

                                    (C)  if   the   Employee's   employment   is
                           terminated  for Good Reason,  the 31st day  following
                           the date of  Employee's  notice to the Company of the
                           existence of a condition constituting Good Reason, if
                           the Company shall have failed to remedy the condition
                           by the end of the  30th  day  following  the  date of
                           Employee's notice; or

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

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<PAGE>

                           (iv) "Disability" or "Disabled" shall mean:

                                    (A) the  Employee is unable to engage in any
                           substantial   gainful   activity  by  reason  of  any
                           medically  determinable physical or mental impairment
                           that can be  expected  to  result  in death or can be
                           expected to last for a continuous  period of not less
                           than 12 months; or

                                    (B)  the  Employee  is,  by  reason  of  any
                           medically  determinable physical or mental impairment
                           that can be  expected  to  result  in death or can be
                           expected to last for a continuous  period of not less
                           than 12 months, receiving income replacement benefits
                           for a period of not less than three  months  under an
                           accident  and health plan  covering  employees of the
                           Company; or

                                    (C) the Employee has been  determined  to be
                           totally    disabled    by   the    Social    Security
                           Administration or Railroad Retirement Board; or

                                    (D) the Employee has been  determined  to be
                           disabled in  accordance  with a disability  insurance
                           program provided by the Company and in which Employee
                           participates,   provided   that  the   definition  of
                           disability  applied under such  disability  insurance
                           program  complies with the requirements of (A) or (B)
                           of this subparagraph (iv) listed above.

                           (v) "Good Reason" for termination of employment shall
                  mean, without Employee's consent :

                                    (A)  Failure by the  Company to comply  with
                           any material provision of this Agreement; or

                                    (B) A material  diminution of the Employee's
                           authority and duties hereunder; or

                                    (C) A material  diminution in the Employee's
                           base compensation;

                           provided, however, the Employee must give the Company
                           notice  of  the  existence  of  one  or  more  of the
                           conditions set forth in this subsection 6.a(v) within
                           90 days after the initial existence of the condition,
                           and the  Company  shall  have 30 days to  remedy  the
                           condition.

                           Any  termination  of  employment by Employee for Good
                           Reason shall constitute an involuntary termination of
                           employment.

                           (vi)  "Notice  of  Termination"  shall mean a written
                  notice which shall include the specific termination  provision