EXHIBIT 10.1
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                              EMPLOYMENT AGREEMENT
                              --------------------


      THIS  AGREEMENT  entered  into this 1st day of January,  1994  ("Effective
Date"),  by and between  Beckley  Federal Savings Bank (the "Bank") and Duane K.
Sellards (the "Employee").

      WHEREAS, the Employee has heretofore been employed by the Bank
as President/CEO and is experienced in all phases of the business
of the Bank; and

      WHEREAS,  the parties  desire by this writing to set forth the  continuing
employment relationship of the Bank and the Employee.

      NOW, THEREFORE, it is AGREED as follows:

      1.   Employment.   The  Employee  is  employed  in  the  capacity  as  the
President/CEO  of the Bank.  The Employee shall render such  administrative  and
management  services to the Bank and Beckley  Bancorp,  Inc.  ("Parent")  as are
currently  rendered and as are  customarily  performed by persons  situated in a
similar executive capacity. The Employee shall also promote, by entertainment or
otherwise,  as and to the extent  permitted by law, the business of the Bank and
Parent.  The Employee's other duties shall be such as the Board of Directors for
the Bank (the "Board of  Directors")  may from time to time  reasonably  direct,
including normal duties as an officer of the Bank.

      2. Base Compensation.  The Bank agrees to pay the Employee during the term
of this Agreement a salary at the rate of $116,000.00 per annum, payable in cash
not less frequently than monthly;  provided,  that the rate of such salary shall
be reviewed by the Board of Directors not less often than annually, and Employee
shall be entitled to receive  annually an increase at such percentage or in such
an amount as the Board of  Directors in its sole  discretion  may decide at such
time.

      3.  Discretionary  Bonus. The Employee shall be entitled to participate in
an equitable  manner with all other senior  management  employees of the Bank in
discretionary  bonuses  that may be  authorized  and  declared  by the  Board of
Directors  to its  senior  management  employees  from  time to  time.  No other
compensation provided for in this Agreement shall be deemed a substitute for the
Employee's  right  to  participate  in such  discretionary  bonuses  when and as
declared by the Board of Directors.



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      4. (a)  Participation  in Retirement and Medical Plans. The Employee shall
be  entitled  to  participate  in any  plan of the  Bank  relating  to  pension,
profit-sharing,   or  other   retirement   benefits  and  medical   coverage  or
reimbursement  plans that the Bank may adopt for the  benefit of its  employees.
Additionally,  Employee's  dependent  family shall be eligible to participate in
medical and dental insurance plans sponsored by the Bank or Parent with the cost
of such premiums paid by the employee.

      (b)  Employee  Benefits;  Expenses.  The  Employee  shall be  eligible  to
participate in any fringe benefits which may be or may become  applicable to the
Bank's senior management employees,  including by example,  participation in any
stock  option or  incentive  plans  adopted by the Board of Directors of Bank or
Parent, club memberships,  a reasonable expense account, an automobile allowance
of $none  per year,  and any other  benefits  which  are  commensurate  with the
responsibilities  and  functions  to be  performed  by the  Employee  under this
Agreement.  The Bank shall reimburse  Employee for all reasonable  out-of-pocket
expenses which Employee shall incur in connection with his service for the Bank.

      5. Term. The term of employment of Employee under this Agreement  shall be
for the period  commencing on the Effective  Date and ending  Thirty-Six  months
thereafter [Not more than thirty-six (36) months].  Additionally, on each annual
anniversary  date from the Effective  Date,  the term of  employment  under this
Agreement  shall be extended for an  additional  one year period beyond the then
effective  expiration date upon a  determination  and resolution of the Board of
Directors  that the  performance  of the Employee has met the  requirements  and
standards of the Board, and that the term of such Agreement shall be extended.

      6.    Loyalty; Noncompetition.

      (a)  The  Employee  shall  devote  his  full  time  and  attention  to the
performance  of  his  employment  under  this  Agreement.  During  the  term  of
Employee's employment under this Agreement, the Employee shall not engage in any
business or activity  contrary to the business  affairs or interests of the Bank
or Parent.

      (b) Nothing  contained  in this  Paragraph 6 shall be deemed to prevent or
limit the right of Employee to invest in the capital  stock or other  securities
of any  business  dissimilar  from that of the Bank or Parent,  or,  solely as a
passive or minority investor, in any business.

      7.    Standards.        The Employee shall perform his duties
under this Agreement in accordance with such reasonable standards
expected of employees with comparable positions in comparable
organizations and as may be established from time to time by the
Board of Directors.


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      8.  Vacation  and Sick  Leave.  At such  reasonable  times as the Board of
Directors  shall in its  discretion  permit,  the  Employee  shall be  entitled,
without loss of pay, to absent himself  voluntarily  from the performance of his
employment  under this Agreement,  with all such voluntary  absences to count as
vacation time; provided that:

      (a) The Employee shall be entitled to annual  vacation leave in accordance
with the policies as are periodically  established by the Board of Directors for
senior management employees of the Bank [or stated minimum vacation benefit].

      (b)  The  Employee  shall  not  be  entitled  to  receive  any  additional
compensation  from the Bank on account of his failure to take vacation leave and
Employee  shall not be entitled to  accumulate  unused  vacation from one fiscal
year to the next, except in either case to the extent authorized by the Board of
Directors for senior management employees of the Bank.

      (c) In addition to the aforesaid  paid  vacations,  the Employee  shall be
entitled without loss of pay, to absent himself voluntarily from the performance
of his employment with the Bank for such additional periods of time and for such
valid and  legitimate  reasons as the Board of Directors in its  discretion  may
determine.  Further,  the Board of  Directors  shall be entitled to grant to the
Employee a leave or leaves of absence  with or without pay at such time or times
and upon such terms and  conditions as the Board of Directors in its  discretion
may determine.

      (d) In addition,  the  Employee  shall be entitled to an annual sick leave
benefit as established by the Board of Directors for senior management employees
of the Bank.  In the event that any sick leave  benefit shall not have been used
during any year, such leave shall accrue to subsequent  years only to the extent
authorized  by the Board of Directors for employees of the Bank, up to a maximum
of two months.

      9.    Termination and Termination Pay.

      The Employee's  employment  under this Agreement  shall be terminated upon
any of the following occurrences:

      (a) The death of the Employee during the term of this Agreement,  in which
event the Employee's  estate shall be entitled to receive the  compensation  due
the  Employee  through the last day of the  calendar  month in which  Employee's
death shall have occurred and one additional month.

      (b) The Board of Directors may terminate the Employee's  employment at any
time, but any termination by the Board of Directors  other than  termination for
Just Cause,  shall not prejudice the Employee's  right to  compensation or other
benefits under the Agreement. The Employee shall have no right to receive

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compensation or other benefits for any period after  termination for Just Cause.
Termination for "Just Cause" shall include termination because of the Employee's
personal dishonesty,  incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties, willful
violation  of any law,  rule or  regulation  (other than traffic  violations  or
similar  offenses) or final  cease-and-desist  order,  or material breach of any
provision of the Agreement.

      (c)  Except as  provided  pursuant  to  Section  12  herein,  in the event
Employee's  employment  under  this  Agreement  is  terminated  by the  Board of
Directors without Just Cause, the Bank shall be obligated to continue to pay the
Employee  the salary  provided  pursuant to Section 2 herein,  up to the date of
termination  of the term  (including any renewal term) of this Agreement and the
cost of Employee  obtaining all health,  life,  disability,  and other  benefits
which the Employee  would be eligible to  participate in through such date based
upon the benefit levels  substantially equal to those being provided Employee at
the date of termination of employment.

      (d)  If  the  Employee  is  removed  and/or  permanently  prohibited  from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Sections  8(e)(4) or 8(g)(1) of the Federal  Deposit  Insurance Act ("FDIA") (12
U.S.C.  1818(e)(4) and (g)(1)), all obligations of the Bank under this Agreement
shall terminate, as of the effective date of the order, but the vested rights of
the parties shall not be affected.

      (e) If the Bank is in default (as defined in Section  3(x)(1) of FDIA) all
obligations under this Agreement shall terminate as of the date of default,  but
this paragraph shall not affect any vested rights of the contracting parties.

      (f) All obligations  under this Agreement  shall be terminated,  except to
the extent  determined that  continuation of this Agreement is necessary for the
continued  operation  of the Bank:  (i) by the  Director of the Office of Thrift
Supervision  ("Director of OTS"),  or his or her designee,  at the time that the
Federal  Deposit  Insurance   Corporation   ("FDIC")  or  the  Resolution  Trust
Corporation  enters into an agreement to provide  assistance  to or on behalf of
the Bank under the authority  contained in Section 13(c) of FDIA; or (ii) by the
Director of the OTS, or his or her  designee,  at the time that the  Director of
the OTS,  or his or her  designee  approves  a  supervisory  merger  to  resolve
problems  related to operation of the Bank or when the Bank is determined by the
Director of the OTS to be in an unsafe or unsound  condition.  Any rights of the
parties that have already vested, however, shall not be affected by such action.

      (g) The  voluntary  termination  by the  Employee  during the term of this
Agreement  with the delivery of no less than 60 days written notice to the Board
of Directors, other than pursuant to Section

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12(b),  in which  case  the  Employee  shall be  entitled  to  receive  only the
compensation,  vested rights,  and all employee  benefits up to the date of such
termination.

      (h) Notwithstanding  anything herein to the contrary, any payments made to
the Employee  pursuant to the Agreement,  or otherwise,  shall be subject to and
conditioned   upon  compliance  with  12  USC  ss.1828(k)  and  any  regulations
promulgated thereunder.

      10.  Suspension  of  Employment  . If the  Employee  is  suspended  and/or
temporarily  prohibited from  participating in the conduct of the Bank's affairs
by a notice  served  under  Section  8(e)(3)  or (g)(1)  of the FDIA (12  U.S.C.
1818(e)(3)  and (g)(1)),  the Bank's  obligations  under the Agreement  shall be
suspended as of the date of service,  unless stayed by appropriate  proceedings.
If the charges in the notice are dismissed, the Bank shall, (i) pay the Employee
all or part of the  compensation  withheld while its contract  obligations  were
suspended and (ii) reinstate any of its obligations which were suspended.

      11. Disability.  If the Employee shall become disabled or incapacitated to
the extent  that he is unable to  perform  his  duties  hereunder,  by reason of
medically determinable physical or mental impairment,  as determined by a doctor
engaged by the Board of  Directors,  Employee  shall  nevertheless  continue  to
receive the compensation and benefits which may be payable to Employee under the
provisions of  disability  insurance  coverage in effect for Bank  employees [or
alternative  provision,  i.e.,  100% pay for 12 months and 65% for  remainder of
term  of  agreement].   Upon  returning  to  active  full-time  employment,  the
Employee's full  compensation as set forth in this Agreement shall be reinstated
as of the  date of  commencement  of such  activities.  In the  event  that  the
Employee returns to active  employment on other than a full-time basis, then his
compensation (as set forth in Paragraph 2 of this Agreement) shall be reduced in
proportion to the time spent in said employment, or as shall otherwise be agreed
to by the parties.

      12.   Change in Control.

      (a) Notwithstanding any provision herein to the contrary,  in the event of
the  involuntary  termination  of Employee's  employment  under this  Agreement,
absent Just Cause, in connection  with, or within twelve (12) months after,  any
change in control of the Bank or Parent,  Employee shall be paid an amount equal
to the product of 2.99 times the Employee's  "base amount" as defined in Section
280G(b)(3)  of the Internal  Revenue  Code of 1986,  as amended (the "Code") and
regulations  promulgated  thereunder.  Said sum shall be paid,  at the option of
Employee, either in one (1) lump sum within thirty (30) days of such termination
discounted  to the present  value of such payment using as the discount rate the
"prime rate" as published in the Wall Street Journal  Eastern  Edition as of the
date of such payment, or in periodic payments

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over the next 36 months or the  remaining  term of this  Agreement  whichever is
less, as if Employee's  employment  had not been  terminated,  and such payments
shall be in lieu of any  other  future  payments  which  the  Employee  would be
otherwise  entitled  to  receive  under  Section 9 of this  Agreement.  The term
"control"  shall refer to the ownership,  holding or power to vote more than 25%
of the  Parent's  or Bank's  voting  stock,  the  control of the  election  of a
majority of the Parent's or Bank's  directors,  or the exercise of a controlling
influence over the management or policies of the Parent or Bank by any person or
by  persons  acting  as a group  within  the  meaning  of  Section  13(d) of the
Securities  Exchange Act of 1934.  The term "person"  means an individual  other
than the Employee,  or a corporation,  partnership,  trust,  association,  joint
venture, pool, syndicate,  sole proprietorship,  unincorporated  organization or
any other form of entity not specifically listed herein.

      (b) Notwithstanding any other provision of this Agreement to the contrary,
Employee may voluntary  terminate his  employment  under this  Agreement  within
twelve  (12)  months  following  a change in control of the Bank or Parent,  and
Employee shall thereupon be entitled to receive the payment described in Section
12(a) of this  Agreement,  upon the  occurrence,  or  within  ninety  (90)  days
thereafter,  of any of the following events, which have not been consented to in
advance by the  Employee in writing:  (i) if Employee  would be required to move
his personal  residence or perform his principal  executive  functions more than
thirty-five  (35) miles from the Employee's  primary office as of the signing of
this Agreement;  (ii) if in the organizational  structure of the Bank or Parent,
Employee would be required to report to a person or persons other than the Board
of  Directors;  (iii) if the Bank or Parent  should  fail to  maintain  existing
employee  benefits plans,  including  material fringe benefit,  stock option and
retirement plans; (iv) if Employee would be assigned duties and responsibilities
other than those normally  associated with his position as referenced at Section
1,  herein;  (v) if Employee  would not be elected or  reelected to the Board of
Directors of the Bank [if applicable]; or (vi) if Employee's responsibilities or
authority have in any way been materially diminished or reduced.

      (c) In the event any dispute shall arise between the Employee and the Bank
as to the terms or interpretation of this Agreement,  including this Section 12,
whether  instituted  by formal legal  proceedings  or  otherwise,  including any
action taken by Employee to enforce the terms of this Section 12 or in defending
against  any  action  taken by the Bank or  Parent,  the  Bank or  Parent  shall
reimburse Employee for all costs and expenses,  including reasonable  attorneys'
fees,  arising from such dispute,  proceedings or actions,  notwithstanding  the
ultimate outcome thereof.  Such reimbursement shall be paid within ten (10) days
of Employee furnishing to the Bank or Parent evidence, which may be in the form,
among other  things,  of a canceled  check or receipt,  of any costs or expenses
incurred by Employee. Any such request for reimbursement by

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Employee shall be made no more frequently than at sixty (60) day intervals.

      13.   Successors and Assigns.

      (a) This  Agreement  shall inure to the benefit of and be binding upon any
corporate or other successor of the Bank or Parent which shall acquire, directly
or  indirectly,  by  merger,  consolidation,   purchase  or  otherwise,  all  or
substantially all of the assets or stock of the Bank or Parent.

      (b) Since the Bank is  contracting  for the unique and personal  skills of
the Employee,  the Employee  shall be precluded from assigning or delegating his
rights or duties  hereunder  without first  obtaining the written consent of the
Bank.

      14.   Amendments.       No amendments or additions to this
Agreement shall be binding upon the parties hereto unless made in
writing and signed by both parties, except as herein otherwise
specifically provided.

      15.   Applicable Law.         This agreement shall be governed by
all respects whether as to validity, construction, capacity,
performance or otherwise, by the laws of the State of West
Virginia, except to the extent that Federal law shall be deemed to
apply.

      16.   Severability.     The provisions of this Agreement shall be
deemed severable and the invalidity or unenforceability of any
provision shall not affect the validity or enforceablitiy of the
other provisions hereof.

      17.   Entire Agreement.       This Agreement together with any
understanding or modifications thereof as agreed to in writing by
the parties, shall constitute the entire agreement between the
parties hereto.



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      IN WITNESS  WHEREOF,  the parties have executed this  Agreement on the day
and first hereinabove written.


                                    BECKLEY FEDERAL SAVINGS BANK



ATTEST:                             By:/s/Tracy L. Riffe
                                       -----------------------------------
                                       Tracy L. Riffe
/s/Ned H. Ragland, Jr.                 Chairman of the Board
----------------------------------
Ned H. Ragland, Jr.
Secretary


WITNESS:

/s/Nancy J. Jones                       /s/Duane K. Sellards
----------------------------------      -----------------------------------
                                        Employee

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