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Exhibit 10.2   SALARY CONTINUATION PLAN FOR KENNETH D. HART


                             NEW PEOPLES BANK, INC.
                          SALARY CONTINUATION AGREEMENT


     THIS AGREEMENT is adopted this 18th day of December, 2002, by and between
NEW PEOPLES BANK, INC., a state chartered commercial bank located in Honaker,
Virginia (the "Company"), and KENNETH D. HART (the "Executive").


                                  INTRODUCTION

     To encourage the Executive to remain an employee of the Company, the
Company is willing to provide salary continuation benefits to the Executive. The
Company will pay the benefits from its general assets.

                                    AGREEMENT

     The Company and the Executive agree as follows:

                                    Article 1
                                   Definitions

     Whenever used in this Agreement, the following words and phrases shall
have the meanings specified:

     1.1  "Change of Control" means the transfer of shares of the Company's
voting common stock such that one entity or one person acquires (or is deemed to
acquire when applying Section 318 of the Code) more than 50 percent of the
Company's outstanding voting common stock, followed by the Executive's
Termination of Employment for reasons other than death, Disability or
retirement.

     1.2  "BOLI Investments" means the funds invested, including interest
earned, with various insurance companies providing Bank-Owned Life Insurance on
key personnel.

     1.3  "Default by Insurance Company" means that the company fails to receive
the principal, or interest earned, on the Bank-Owned Life Insurance Policy.

     1.4  "Code" means the Internal Revenue Code of 1986, as amended.

     1.5  Disability" means the Executive's suffering a sickness, accident or
injury which has been determined by the carrier of any individual or group
disability insurance policy covering the Executive, or by the Social Security
Administration, to be a disability rendering the Executive totally and
permanently disabled. The Executive must submit proof to the Company of the
carrier's or Social Security Administration's determination upon the request of
the Company.

     1.6  "Early Termination" means the Termination of Employment before Normal
Retirement Age for reasons other than death, Disability, Termination for Cause
or following a Change of Control.

     1.7  "Early Termination Date" means the month, day and year in which Early
Termination occurs.


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     1.8  "Effective Date" means November 1, 2001.

     1.9  "Normal Retirement Age" means the Executive's 65th birthday.

     1.10 "Normal Retirement Date" means the later of the Normal Retirement Age
or Termination of Employment.

     1.11 "Plan Year" means a twelve-month period commencing on November 1st and
ending on October 31st of each year. The initial Plan Year shall commence on the
effective date of this Agreement.

     1.12 "Termination for Cause" See Article 5.

     1.13 "Termination of Employment" means that the Executive ceases to be
employed by the Company for any reason, voluntary or involuntary, other than by
reason of a leave of absence approved by the Company.

                                    Article 2
                                Lifetime Benefits

     2.1 Normal Retirement Benefit. Upon Termination of Employment on or after
the Normal Retirement Age for reasons other than death, the Company shall pay to
the Executive the benefit described in this Section 2.1 in lieu of any other
benefit under this Agreement.

         2.1.1 Amount of Benefit. The annual benefit under this Section 2.1 is
     $59,063 (Fifty Nine Thousand Sixty Three Dollars). The Company's Board of
     Directors, in its sole discretion, may increase the annual benefit under
     this Section 2.1.1; however, any increase shall require the recalculation
     of Schedule A.

         2.1.2 Payment of Benefit. The Company shall pay the annual benefit to
     the Executive in 12 equal monthly installments commencing with the month
     following the Executive's Normal Retirement Date. The annual benefit shall
     be paid to the Executive for a period of 15 years.

         2.1.3 Benefit  Increases.  Commencing on the first anniversary of the
     first benefit  payment,  and continuing on each  subsequent  anniversary,
     the Company's Board of Directors,  at its sole  discretion,  may increase
     the benefit.

     2.2 Early  Termination  Benefit.  Upon  Early  Termination,  the  Company
shall pay to the Executive  the benefit  described in this Section 2.2 in lieu
of any other benefit under this Agreement.

         2.2.1 Amount of Benefit. The benefit under this Section 2.2 is the
     Early Termination Annual Benefit set forth on Schedule A for the Plan Year
     ending immediately prior to the Early Termination Date. This benefit is
     determined by vesting the Executive in 100 percent of the Accrual Balance
     set forth on Schedule A. Any increase in the annual benefit under Section
     2.1.1 shall require the recalculation of this benefit on Schedule A. This
     benefit is determined by calculating a 15-year fixed annuity from the
     Accrual Balance, crediting interest on the unpaid balance at an annual rate
     of 7.5 percent, compounded monthly.


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         2.2.2 Payment of Benefit. The Company shall pay the annual benefit to
     the Executive in 12 equal monthly installments commencing with the month
     following Termination of Employment. The annual benefit shall be paid to
     the Executive for a period of 15 years.

         2.2.3 Benefit  Increases.   Benefit  payments  may  be  increased  as
     provided in Section 2.1.3.

     2.3 Disability Benefit. If the Executive terminates employment due to
Disability prior to Normal Retirement Age, the Company shall pay to the
Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Agreement.

         2.3.1 Amount of Benefit. The benefit under this Section 2.3 is the
     Disability Annual Benefit set forth on Schedule A for the Plan Year ending
     immediately prior to the date in which the Termination of Employment
     occurs. This benefit is determined by vesting the Executive in the Normal
     Retirement Benefit described in Section 2.1.1.

         2.3.2 Payment of Benefit. The Company shall pay the annual benefit to
     the Executive in 12 equal monthly installments commencing with the month
     following Normal Retirement Age. The annual benefit shall be paid to the
     Executive for a period of 15 years.

         2.3.3 Benefit  Increases.   Benefit  payments  may  be  increased  as
     provided in Section 2.1.3.

     2.4 Change of Control Benefit. Upon a Change of Control, the Company shall
pay to the Executive the benefit described in this Section 2.4 in lieu of any
other benefit under this Agreement.

         2.4.1 Amount of Benefit. The benefit under this Section 2.4 is the
     Change of Control Annual Benefit set forth on Schedule A for the Plan Year
     ending immediately prior to the date in which Termination of Employment
     occurs. This benefit is determined by vesting the Executive in the Normal
     Retirement Benefit described in Section 2.1.1.

         2.4.2 Payment of Benefit. The Company shall pay the annual benefit to
     the Executive in 12 equal monthly installments commencing with the month
     following Termination of Employment. The annual benefit shall be paid to
     the Executive for a period of 15 years.

         2.4.3 Benefit  Increases.   Benefit  payments  may  be  increased  as
     provided in Section 2.1.3.

         2.4.4 Excess Parachute Payment. Notwithstanding any provision of this
     Agreement to the contrary, the Company shall not pay any benefit under this
     Agreement to the extent the benefit would create an excise tax under the
     excess parachute rules of Section 280G of the Code.


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                                    Article 3
                                 Death Benefits

     3.1 Death During Active Service. If the Executive dies while in the active
service of the Company, the Company shall pay to the Executive's beneficiary the
benefit described in this Section 3.1. This benefit shall be paid in lieu of the
benefits under Article 2.

         3.1.1 Amount of Benefit. The annual benefit under this Section 3.1 is
     the Normal Retirement Benefit amount described in Section 2.1.1.

         3.1.2 Payment of Benefit. The Company shall pay the annual benefit to
     the Executive's beneficiary in 12 equal monthly installments commencing
     with the month following the Executive's death, paying the annual benefit
     to the Executive's beneficiary for a period of 15 years.

     3.2 Death During Payment of a Lifetime Benefit. If the Executive dies
after any Lifetime Benefit payments have commenced under this Agreement but
before receiving all such payments, the Company shall pay the remaining benefits
to the Executive's beneficiary at the same time and in the same amounts they
would have been paid to the Executive had the Executive survived.

     3.3 Death After Termination of Employment But Before Payment of a Lifetime
Benefit Commences. If the Executive is entitled to a Lifetime Benefit under this
Agreement, but dies prior to the commencement of said benefit payments, the
Company shall pay the same benefit  payments to the  Executive's
beneficiary that the Executive was entitled to prior to death except that the
benefit payments shall commence on the first day of the month following the date
of the Executive's death.

                                    Article 4
                                  Beneficiaries

     4.1 Beneficiary  Designations.  The  Executive  shall designate  a
beneficiary by filing a written designation with the Company. The Executive
may revoke or modify the  designation  at any time by filing a new designation.
However, designations will only be effective if signed by the Executive and
received by the Company during the Executive's lifetime. The Executive's
beneficiary designation shall be deemed automatically revoked if the
beneficiary predeceases the Executive, or if the Executive names a spouse as
beneficiary and the marriage is subsequently dissolved. If the Executive dies
without a valid beneficiary designation, all payments shall be made to the
Executive's estate.

     4.2 Facility of Payment. If a benefit is payable to a minor, to a person
declared incompetent, or to a person incapable of handling the disposition of
his or her property, the Company may pay such benefit to the guardian, legal
representative or person having the care or custody of such minor, incompetent
person or incapable person. The Company may require proof of incompetence,
minority or guardianship as it may deem appropriate prior to distribution of the
benefit. Such distribution shall completely discharge the Company from all
liability with respect to such benefit.


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                                    Article 5
                               General Limitations

    5.1  Termination for Cause.  Notwithstanding  any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement if the Company terminates the Executive's employment for:

      (a)  Gross negligence or gross neglect of duties;

      (b)  Commission  of a felony  or of a gross  misdemeanor  involving  moral
           turpitude; or

      (c)  Fraud, disloyalty, dishonesty or willful violation of any law or
           significant Company policy committed in connection with the
           Executive's employment and resulting in an adverse effect on the
           Company.

    5.2  Suicide or Misstatement. The Company shall not pay any benefit under
this Agreement if the Executive commits suicide within three years after the
date of this Agreement. In addition, the Company shall not pay any benefit under
this  Agreement if the Executive has made any material misstatement of fact
on an employment application or resume provided to the Company, or on any
application for any benefits provided by the Company to the Executive.

                                    Article 6
                          Claims and Review Procedures

     6.1 Claims Procedure. An Executive or beneficiary ("claimant") who has not
received benefits under the Agreement that he or she believes should be paid
shall make a claim for such benefits as follows:

         6.1.1 Initiation - Written Claim.  The claimant  initiates a claim by
     submitting to the Company a written claim for the benefits.

         6.1.2 Timing of Company Response. The Company shall respond to such
     claimant within 90 days after receiving the claim. If the Company
     determines that special  circumstances require additional time for
     processing the claim, the Company can extend the response period by an
     additional 90 days by notifying the claimant in writing, prior to the end
     of the initial 90-day period,  that an additional period is required.
     The notice of  extension  must set forth the special circumstances and the
     date by which the Company expects to render its decision.

         6.1.3 Notice of Decision. If the Company denies part or all of the
     claim, the Company shall notify the claimant in writing of such denial. The
     Company shall write the notification in a manner calculated to be
     understood by the claimant. The notification shall set forth:

           (a)  The specific reasons for the denial;

           (b)  A reference to the specific  provisions  of the  Agreement
                on which the denial is based;

           (c)  A description  of any  additional  information or material
                necessary  for the  claimant to perfect the claim and an
                explanation of why it is needed;


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           (d)  An explanation of the  Agreement's  review  procedures and
                the time limits applicable to such procedures; and

           (e)  A statement of the claimant's right to bring a civil action
                under ERISA Section 502(a) following an adverse benefit
                determination on review.

     6.2 Review  Procedure.  If the  Company  denies part or all of the claim,
the  claimant  shall have the  opportunity  for a full and fair  review by the
Company of the denial, as follows:

         6.2.1 Initiation - Written Request. To initiate the review, the
     claimant, within 60 days after receiving the Company's notice of denial,
     must file with the Company a written request for review.

         6.2.2 Additional Submissions - Information Access. The claimant shall
     then have the opportunity to submit written comments, documents, records
     and other information relating to the claim. The Company shall also provide
     the claimant, upon request and free of charge, reasonable access to, and
     copies of, all documents, records and other information relevant (as
     defined in applicable ERISA regulations) to the claimant's claim for
     benefits.

         6.2.3 Considerations on Review. In considering the review, the Company
     shall take into account all materials and information the claimant submits
     relating to the claim, without regard to whether such information was
     submitted or considered in the initial benefit determination.

         6.2.4 Timing of Company Response. The Company shall respond in writing
     to such claimant within 60 days after receiving the request for review. If
     the Company determines that special circumstances require additional time
     for processing the claim, the Company can extend the response period by an
     additional 60 days by notifying the claimant in writing, prior to the end
     of the initial 60-day period, that an additional period is required. The
     notice of extension must set forth the special circumstances and the date
     by which the Company expects to render its decision.

         6.2.5 Notice of Decision. The Company shall notify the claimant in
     writing of its decision on review.  The Company shall write the
     notification in a manner calculated to be understood by the claimant. The
     notification shall set forth:

           (a)  The specific reasons for the denial;

           (b)  A reference to the specific  provisions  of the  Agreement
                on which the denial is based;

           (c)  A statement that the claimant is entitled to receive, upon
                request and free of charge, reasonable access to, and copies of,
                all documents, records and other information relevant (as
                defined in applicable ERISA regulations) to the claimant's claim
                for benefits; and

           (d)  A statement of the claimant's right to bring a civil action
                under ERISA Section 502(a).


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                                    Article 7
                           Amendments and Termination

     This Agreement may be amended or terminated only by a written agreement
signed by the Company and the Executive.

                                    Article 8
                                  Miscellaneous

     8.1 Binding  Effect.  This  Agreement  shall bind the  Executive  and the
Company,   and  their   beneficiaries,   survivors,   executors,   successors,
administrators and transferees.

     8.2 Default by Insurance Company. The Company has made BOLI Investments in
order to provide funding for the payment of this contract. In the event of a
default by the insurance company of onr or more of these investments, the
benefits provided herein shall be reduced proportionally in the same proportion
as the amount of the loss bears to the amount of the investment.

     8.3 No Guarantee of Employment. This Agreement is not an employment policy
or contract. It does not give the Executive the right to remain an employee of
the Company, nor does it interfere with the Company's right to discharge the
Executive. It also does not require the Executive to remain an employee nor
interfere with the Executive's right to terminate employment at any time.

     8.4 Non-Transferability. Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

     8.5 Reorganization. The Company shall not merge or consolidate into or with
another company, or reorganize, or sell substantially all of its assets to
another company, firm, or person unless such succeeding or continuing company,
firm, or person agrees to assume and discharge the obligations of the Company
under this Agreement. Upon the occurrence of such event, the term "Company" as
used in this Agreement shall be deemed to refer to the successor or survivor
company.

     8.6  Tax Withholding.  The  Company  shall  withhold  any taxes  that are
required to be withheld from the benefits provided under this Agreement.

     8.7  Applicable Law.  The  Agreement  and all rights  hereunder  shall be
governed by the laws of the State of Virginia,  except to the extent preempted
by the laws of the United States of America.

     8.8  Unfunded Arrangement. The Executive and beneficiary are general
unsecured creditors of the Company for the payment of benefits under this
Agreement. The benefits represent the mere promise by the Company to pay such
benefits. The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive's life is a general
asset of the Company to which the Executive and beneficiary have no preferred or
secured claim.

     8.9  Entire Agreement. This Agreement constitutes the entire agreement
between the Company and the Executive as to the subject matter hereof. No rights
are granted to the Executive by virtue of this Agreement other than those
specifically set forth herein.

     8.10 Administration.  The Company  shall have powers  which are  necessary
to administer this Agreement, including but not limited to:


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      (a)   Establishing and revising the method of accounting for the
            Agreement;

      (b)   Maintaining a record of benefit payments;

      (c)   Establishing  rules and  prescribing any forms necessary or
            desirable to administer the Agreement; and

     8.11 Named Fiduciary. The Company shall be the named fiduciary and plan
administrator under this Agreement. It may delegate to others certain aspects of
the management and operational responsibilities including the employment of
advisors and the delegation of ministerial duties to qualified individuals.



     IN WITNESS WHEREOF, the Executive and the Company have signed this
Agreement.


EXECUTIVE:                             COMPANY:

                                       NEW PEOPLES BANK, INC.

/s/KENNETH D. HART                    /s/LYNN KEENE
------------------------------         --------------
Kenneth D. Hart                        Lynn Keene
President and Chief                    Chairman
Executive Officer