NEWBERRY FEDERAL SAVINGS BANK
                          SALARY CONTINUATION AGREEMENT

     THIS  AGREEMENT is adopted this 1st day of November,  2002,  by and between
NEWBERRY  FEDERAL  SAVINGS BANK, a  federally-chartered  savings bank located in
Newberry, South Carolina (the "Bank"), and Steve P. Sligh (the "Executive").

                                  INTRODUCTION

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

                                    AGREEMENT

     The Bank 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 "Benefit Amount" means $30,000.

     1.2  "Change  of  Control"  means  with  respect  to the Bank or  Dutchfork
Bancshares,  Inc. (the  "Company"),  an event of a nature that: (i) results in a
Change of Control  of the Bank or the  Company  within  the  meaning of the Home
Owners' Loan Act of 1933, as amended and the Rules and  Regulations  promulgated
by the Office of Thrift Supervision  ("OTS") (or its predecessor  agency), as in
effect on the date hereof;  or (ii) without  limitation such a Change of Control
shall be deemed to have  occurred at such time as (A) any  "person" (as the term
is used in  Sections  13(d) and 14(d) of the  Exchange  Act) is or  becomes  the
"beneficial  owner" (as defined in Rule 13d-3 under the Exchange Act),  directly
or indirectly,  of voting securities of the Bank or the Company representing 25%
or more of the Bank's or the Company's outstanding voting securities or right to
acquire such securities  except for any voting  securities of the Bank purchased
by the Company and any voting securities  purchased by any employee benefit plan
of the Company or its Subsidiaries,  or (B) individuals who constitute the Board
on the date hereof (the "Incumbent Board") cease for any reason to constitute at
least  a  majority  thereof,  provided  that  any  person  becoming  a  director
subsequent to the date hereof whose  election was approved by a vote of at least
three-quarters  of the  directors  comprising  the  Incumbent  Board,  or  whose
nomination  for  election  by  the  Company's  stockholders  was  approved  by a
Nominating  Committee  solely  composed  of members  which are  Incumbent  Board
members, shall be, for purposes of this clause (B), considered as though he were
a  member  of the  Incumbent  Board,  or (C) a plan of  reorganization,  merger,
consolidation,  sale of all or  substantially  all the assets of the Bank or the
Company or similar  transaction  is  consummated in which the Bank or Company is
not the resulting entity.







<PAGE>


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

     1.4  "Disability"  means any mental or physical  condition  with respect to
which the Executive  qualifies  for and receives  benefits for under a long-term
disability  plan  of the  Company  or the  Bank,  or in the  absence  of  such a
long-term disability plan or coverage under such a plan, "Disability" shall mean
a physical or mental  condition  which,  in the sole  discretion of the Board of
Directors,   is  reasonably  expected  to  be  of  indefinite  duration  and  to
substantially  prevent  the  Executive  from  fulfilling  his or her  duties  or
responsibilities to the Company or the Bank.

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

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

     1.7 "Effective Date" means November 1, 2002.

     1.8 "Normal  Retirement Age" means the final day (October 31st) of the Plan
Year in which the Executive's 63rd birthday occurs.

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

     1.10 "Plan Year" means a twelve-month period commencing on November 1st and
ending on  October  31st of the  following  year.  The  initial  Plan Year shall
commence on the Effective Date of this Agreement.

     1.11 "Termination for Cause" See Section 5.2.

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

     1.13 "Vesting Percentage" means one hundred percent (100%).

                                    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 Bank shall pay to
the  Executive  the benefit  described  in this Section 2.1 in lieu of any other
Lifetime Benefits under this Agreement.





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<PAGE>

          2.1.1 Amount of Benefit.  The annual benefit under this Section 2.1 is
     the Benefit Amount.

          2.1.2 Payment of Benefit. The Bank shall pay the annual benefit to the
     Executive  in 12 equal  monthly  installments  commencing  with  the  month
     following the Executive's Normal Retirement Date, paying the annual benefit
     to the Executive for a period of seventeen years.

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

          2.2.1  Amount of Benefit.  The benefit  under this  Section 2.2 is the
     Early Termination  Annual Benefit set forth in Schedule A for the Plan Year
     ending  immediately  prior to the Early Termination Date (except during the
     first  Plan  Year,  the  benefit  is the amount set forth for Plan Year 1),
     determined by multiplying  the Accrual  Balance set forth in Schedule A for
     the Plan Year ending immediately prior to the Early Termination Date by the
     Vesting  Percentage.  Any increase in the Benefit  Amount would require the
     recalculation  of the Early  Termination  Annual Benefit on Schedule A. The
     benefit is determined by calculating a two-hundred four month fixed annuity
     from the vested Accrual Balance,  crediting  interest on the unpaid balance
     at an annual rate of eight percent, compounded monthly.

          2.2.2 Payment of Benefit. The Bank shall pay the annual benefit to the
     Executive  in 12 equal  monthly  installments  commencing  with  the  month
     following  the Normal  Retirement  Age,  paying  the annual  benefit to the
     Executive for a period of seventeen years.

     2.3  Disability  Benefit.  If the Executive  terminates  employment  due to
Disability  prior to Normal  Retirement  Age,  other than  following a Change of
Control,  the Bank shall pay to the  Executive  the  benefit  described  in this
Section 2.3 in lieu of any other Lifetime Benefits under this Agreement.

          2.3.1  Amount of Benefit.  The benefit  under this  Section 2.3 is the
     Disability  Annual Benefit set forth in Schedule A for the Plan Year ending
     immediately prior to the date in which the Termination of Employment occurs
     (except during the first Plan Year, the benefit is the amount set forth for
     Plan Year 1),  determined  by vesting the  Executive  in 100 percent of the
     Accrual  Balance.  Any  increase in the Benefit  Amount  would  require the
     recalculation of the Disability  Annual Benefit on Schedule A. This benefit
     is  determined by  calculating a two-hundred  four month fixed annuity from
     the Accrual Balance  crediting  interest on the unpaid balance at an annual
     rate of eight percent, compounded monthly.

          2.3.2 Payment of Benefit. The Bank shall pay the annual benefit to the
     Executive  in 12 equal  monthly  installments  commencing  with  the  month
     following  the Normal  Retirement  Age,  paying  the annual  benefit to the
     Executive for a period of seventeen years.







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<PAGE>

     2.4 Change of Control Benefit.  Upon Termination of Employment  following a
Change of Control,  the Bank shall pay to the Executive the benefit described in
this Section 2.4 in lieu of any other Lifetime Benefits 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 in Schedule A for the Plan Year
     ending  immediately  prior to the date in which  Termination  of Employment
     occurs  (except  during the first Plan Year,  the benefit is the amount set
     forth for Plan Year 1),  determined by vesting the Executive in the Benefit
     Amount.  Any increase in the Benefit Amount would require the recalculation
     of the Change of Control Annual Benefit on Schedule A.

          2.4.2 Payment of Benefit. The Bank shall pay the annual benefit to the
     Executive  in 12 equal  monthly  installments  commencing  with  the  month
     following  the Normal  Retirement  Age,  paying  the annual  benefit to the
     Executive for a period of seventeen years.

                                    Article 3
                                 Death Benefits

     3.1 Death During Active Service.  If the Executive dies while in the active
service  of the Bank,  the Bank  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 benefit  under this  Section 3.1 is the
     Accrual  Balance  set  forth  in  Schedule  A  for  the  Plan  Year  ending
     immediately prior to the date of the Executive's death.

          3.1.2  Payment  of  Benefit.  The Bank  shall pay the  benefit  to the
     Executive's  beneficiary  in a  lump  sum  within  90  days  following  the
     Executive's death.

     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 Bank shall pay the remaining Accrual Balance at
the time of the Executive's  death to the Executive's  beneficiary in a lump sum
within 90 days of the Executive's death.

     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 Bank
shall  pay the  Accrual  Balance  at the  time of the  Executive's  death to the
Executive's beneficiary in a lump sum within 90 days of the Executive's death.


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<PAGE>

                                    Article 4
                                  Beneficiaries

     4.1 Beneficiary  Designations.  The Executive shall designate a beneficiary
by filing a written  designation  with the Bank.  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  Bank  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 Bank  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 Bank 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 Bank from all liability with
respect to such benefit.

                                    Article 5
                               General Limitations

     5.1 Suicide or Misstatement.  The Bank 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 Bank 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 Bank, or on any application for
any benefits provided by the Bank to the Executive.

     5.2 Termination for Cause.  Notwithstanding any provision of this Agreement
to the contrary,  the Bank shall not pay any benefit under this Agreement if the
Bank 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)  Misconduct,  any  breach of  fiduciary  duty  involving  personal
     profit,  intentional  failure to perform stated duties or willful violation
     of any law, rule, regulation (other than traffic violations) or final cease
     and desist order; or

          (d) A  significant  violation of Bank policy  committed in  connection
     with the Director's service and resulting in an adverse effect on the Bank.




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<PAGE>

                                    Article 6
                          Claims and Review Procedures

     6.1 For all claims other than disability claims:

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

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

          6.1.1.2  Timing  of Bank  Response.  The Bank  shall  respond  to such
     claimant  within 90 days after  receiving the claim. If the Bank determines
     that special  circumstances  require  additional  time for  processing  the
     claim,  the Bank 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 Bank expects
     to render its decision.

          6.1.1.3  Notice of  Decision.  If the Bank  denies  part or all of the
     claim,  the Bank shall notify the  claimant in writing of such denial.  The
     Bank 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,

          (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.

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

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

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<PAGE>

          6.1.2.2  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 Bank 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.

          6.1.2.3  Considerations on Review. In considering the review, the Bank
     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.

          6.1.2.4 Timing of Bank Response.  The Bank shall respond in writing to
     such claimant within 60 days after receiving the request for review. If the
     Bank  determines  that special  circumstances  require  additional time for
     processing  the  claim,  the Bank 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 Bank expects to render its decision.

          6.1.2.5  Notice of  Decision.  The Bank shall  notify the  claimant in
     writing of its decision on review. The Bank 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).

     6.2 For disability claims:

          6.2.1 Claims Procedures. The 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:

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



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<PAGE>

               6.2.1.2  Timing  of Bank  Response.  The Bank  shall  notify  the
          claimant  in writing of any adverse  determination  as set out in this
          Section.

               6.2.1.3 Notice of Decision. If the Bank denies part or all of the
          claim,  the Bank shall  notify the claimant in writing of such denial.
          The Bank 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,

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

               (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,

               (f)  Any internal  rule,  guideline,  protocol,  or other similar
                    criterion  relied upon in making the adverse  determination,
                    or a statement  that such a rule,  guideline,  protocol,  or
                    other  similar  criterion  was  relied  upon in  making  the
                    adverse  determination and that the claimant can request and
                    receive  free of  charge  a copy of  such  rule,  guideline,
                    protocol or other criterion from the Bank, and

               (g)  If the adverse benefit  determination  is based on a medical
                    necessity or experimental  treatment or similar exclusion or
                    limit,  either an  explanation of the scientific or clinical
                    judgment  for the  determination,  applying the terms of the
                    Agreement  to the  claimant's  medical  circumstances,  or a
                    statement  that such  explanation  will be provided  free of
                    charge upon request.

               6.2.1.4  Timing of Notice of  Denial/Extensions.  The Bank  shall
          notify the claimant of denial of benefits in writing not later than 45
          days after receipt of the claim by the  Agreement.  The Bank may elect
          to extend  notification by two 30-day periods subject to the following
          requirements:



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<PAGE>

               (a)  For the first  30-day  extension,  the Bank shall notify the
                    claimant  (1) of the  necessity  of the  extension  and  the
                    factors  beyond  the   Agreement's   control   requiring  an
                    extension;  (2)  prior  to the  end of  the  initial  45-day
                    period;  and (3) of the date by which the Agreement  expects
                    to render a decision.

               (b)  If the Bank  determines  that a second  30-day  extension is
                    necessary based on factors beyond the  Agreement's  control,
                    the Bank shall follow the same procedure in (a) above,  with
                    the exception that the notification  must be provided to the
                    claimant  before  the  end of  the  first  30-day  extension
                    period.

               (c)  For any extension provided under this section, the Notice of
                    Extension  shall  specifically  explain the  standards  upon
                    which  entitlement  to a benefit  is based,  the  unresolved
                    issues  that  prevent  a  decision  on the  claim,  and  the
                    additional  information  needed to resolve those issues. The
                    claimant  shall be afforded 45 days within  which to provide
                    the specified information.

               6.2.2 Review Procedures - Denial of Benefits.  If the Bank denies
          part or all of the claim,  the claimant shall have the opportunity for
          a full and fair review by the Bank of the denial, as follows:

               6.2.2.1 Initiation of Appeal. Within 180 days following notice of
          denial  of  benefits,   the  claimant  shall  initiate  an  appeal  by
          submitting a written notice of appeal to the Bank.

               6.2.2.2  Submissions on Appeal - Information Access. The claimant
          shall be allowed to provide written comments,  documents, records, and
          other information  relating to the claim for benefits.  The Bank shall
          provide to 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.

               6.2.2.3  Additional Bank  Responsibilities  on Appeal. On appeal,
          the Bank shall:

                    (a)  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;

                    (b)  Provide for a review that does not afford  deference to
                         the initial adverse benefit  determination  and that is
                         conducted  by an  appropriate  named  fiduciary  of the
                         Agreement  who is neither the  individual  who made the
                         adverse  benefit  determination  that is the subject of
                         the







                                       8
<PAGE>

                         appeal, nor the subordinate of such individual;

                    (c)  In   deciding   an  appeal  of  any   adverse   benefit
                         determination  that is  based  in whole or in part on a
                         medical judgment,  including determinations with regard
                         to whether a particular treatment,  drug, or other item
                         is  experimental,  investigational,  or  not  medically
                         necessary  or  appropriate,  consult with a health care
                         professional   who   has   appropriate   training   and
                         experience  in the field of  medicine  involved  in the
                         medical judgment;

                    (d)  Identify  medical or vocational  experts who advise was
                         obtained on behalf of the Agreement in connection  with
                         a claimant's  adverse  benefit  determination,  without
                         regard to whether  the advice was relied upon in making
                         the benefit determination; and

                    (e)  Ensure  that the health care  professional  engaged for
                         purposes of a consultation  under  subjection (c) above
                         shall be an  individual  who was neither an  individual
                         who  was  consulted  in  connection  with  the  adverse
                         benefit  determination  that  is  the  subject  of  the
                         appeal, nor the subordinate of any such individual.

               6.2.2.4 Timing of Notification of Benefit Denial - Appeal Denial.
          The Bank  shall  notify  the  claimant  not later  than 45 days  after
          receipt of the claimant's request for review by the Agreement,  unless
          the Bank determines that special circumstances require an extension of
          time  for  processing  the  claim.  If the  Bank  determines  that  an
          extension  is required,  written  notice of such shall be furnished to
          the claimant  prior to the  termination  of the initial 45-day period,
          and such  extension  shall not exceed 45 days. The Bank shall indicate
          the special circumstances  requiring an extension of time and the date
          by which the Agreement expects to render the determination on review.

               6.2.2.5 Content of Notification of Benefit Denial. The Bank shall
          provide the claimant with a notice  calculated to be understood by the
          claimant, which shall contain:

                    (a)  The   specific   reason  or  reasons  for  the  adverse
                         determination;

                    (b)  Reference to the specific Agreement provisions on which
                         the benefit determination 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
                         relevant  information  (as defined in applicable  ERISA
                         regulations);








                                       9
<PAGE>

                    (d)  A statement of the claimant's rights to bring an action
                         under ERISA Section 502(a);

                    (e)  Any  internal  rule,  guideline,   protocol,  or  other
                         similar  criterion  relied  upon in making the  adverse
                         determination,   or  a  statement  that  such  a  rule,
                         guideline,  protocol,  or other  similar  criterion was
                         relied  upon in making the  adverse  determination  and
                         that the  claimant  can  request  and  receive  free of
                         charge  a copy of such  rule,  guideline,  protocol  or
                         other criterion from the Bank;

                    (f)  If the  adverse  benefit  determination  is  based on a
                         medical necessity or experimental  treatment or similar
                         exclusion  or  limit,  either  an  explanation  of  the
                         scientific or clinical judgment for the  determination,
                         applying the terms of the  Agreement to the  claimant's
                         medical   circumstances,   or  a  statement  that  such
                         explanation  will  be  provided  free  of  charge  upon
                         request; and

                    (g)  The following  statement:  "You and your  Agreement may
                         have other  voluntary  alternative  dispute  resolution
                         options such as mediation. One way to find out what may
                         be available  is to contact your local U.S.  Department
                         of Labor  Office  and your state  insurance  regulatory
                         agency."









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<PAGE>

                                    Article 7
                           Amendments and Termination

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

                                    Article 8
                                  Miscellaneous

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

     8.2 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  Bank,  nor  does it  interfere  with the  Bank'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.

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

     8.4  Reorganization.  The Bank 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 Bank under
this  Agreement.  Upon the occurrence of such event,  the term "Bank" as used in
this Agreement shall be deemed to refer to the successor or survivor company.

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

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

     8.7  Unfunded  Arrangement.  The  Executive  and  beneficiary  are  general
unsecured  creditors  of the  Bank  for  the  payment  of  benefits  under  this
Agreement.  The  benefits  represent  the mere  promise  by the Bank 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 Bank to which the  Executive and  beneficiary  have no preferred or
secured claim.

     8.8 Entire  Agreement.  This  Agreement  constitutes  the entire  agreement
between the Bank 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.







                                       11
<PAGE>

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

          (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

          (d)  Interpreting the provisions of the Agreement.

     8.10  Named  Fiduciary.  The Bank  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 Bank have signed this Agreement.

EXECUTIVE:                                         NEWBERRY FEDERAL SAVINGS BANK


/s/ Steve P. Sligh                                 By  /s/ J. Thomas Johnson
----------------------------------                     -------------------------
Steve P. Sligh
                                                   Title Chairman/CEO
                                                         -----------------------

                                       12
<PAGE>










                             BENEFICIARY DESIGNATION

                          NEWBERRY FEDERAL SAVINGS BANK
                          SALARY CONTINUATION AGREEMENT

                                 STEVE P. SLIGH

I designate  the  following  as  beneficiary  of any death  benefits  under this
Agreement:

Primary:  Leslie O. Sligh
          ----------------------------------------------------------------------
          Spouse
--------------------------------------------------------------------------------
Contingent:  Per will
             -------------------------------------------------------------------

--------------------------------------------------------------------------------

Note:To name a trust as  beneficiary,  please provide the name of the trustee(s)
     and the exact name and date of the trust agreement.

I understand  that I may change these  beneficiary  designations by filing a new
written  designation  with the Bank. I further  understand that the designations
will be automatically  revoked if the beneficiary  predeceases me, or, if I have
named my spouse as beneficiary and our marriage is subsequently dissolved.


Signature /s/ Steve P. Sligh
         ------------------------------
Date April 24, 2003
    ----------------------------------


Received by the Bank this 24th day of April, 2003.
                          ----        -----

By  /s/ J. Thomas Johnson
    ------------------------------------
Title  Chairman
       ----------------------------------


                                       13
<PAGE>

                          NEWBERRY FEDERAL SAVINGS BANK
                                 STEVE P. SLIGH
                          Salary Continuation Agreement
                                   Schedule A
<TABLE>
<CAPTION>

                                                  Early                          Early          Change of        Disability
     Plan                                      Termination      Vested        Termination        Control           Annual
     Year         Benefit        Accrual         Vesting        Accrual     Annual Benefit    Annual Benefit      Benefit
    Ending         Level         Balance        Schedule        Balance      Payable at 63    Payable at 63    Payable at 63
<S>     <C>           <C>            <C>          <C>              <C>              <C>             <C>              <C>
    Oct-03            30,000         19,066       100%             19,066            4,184           30,000            4,184
    Oct-04            30,000         39,715       100%             39,715            8,048           30,000            8,048
    Oct-05            30,000         62,078       100%             62,078           11,615           30,000           11,615
    Oct-06            30,000         86,297       100%             86,297           14,909           30,000           14,909
    Oct-07            30,000        112,526       100%            112,526           17,951           30,000           17,951
    Oct-08            30,000        140,932       100%            140,932           20,760           30,000           20,760
    Oct-09            30,000        171,696       100%            171,696           23,353           30,000           23,353
    Oct-10            30,000        205,013       100%            205,013           25,747           30,000           25,747
    Oct-11            30,000        241,095       100%            241,095           27,958           30,000           27,958
    Oct-12            30,000        280,172       100%            280,172           30,000           30,000           30,000
</TABLE>




                                       14