Document:

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                                                            Lease - EXHIBIT 10.5

                          SALEM BANK AND TRUST, N.A.
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TELEPHONE (540) 387-0223            P.O. Box 979            SALEM VIRGINIA 24153

December 29, 1997

Mr. William Bailey
7514 Deer Branch Drive, NW
Roanoke, VA 24019

Dear Bill:

Pursuant to the terms of the lease for the Hollins Office located at 7337
Williamson Road in Roanoke, please accept this letter as intent to renew the
lease for an additional 5 year period commencing April 1, 1998 through March 31,
2003.

We understand the renewal rent increase is in the amount of 15%.  The current
rent is $2,500 and the new rent will be $2,875.

Please sign one (1) copy of this letter as an acknowledgement of our intent.  If
you have any questions, please feel free to call me.

Sincerely,

Gill R. Roseberry
Senior Vice President & Cashier

GRR/Ibw

__________________________
SIGNATURE

__________________________
DATE
<PAGE>

                               LEASE MEMORANDUM
                               ----------------

     THIS MEMORANDUM of a certain lease dated June 9, 1993, between WILLIAM D.
BAILEY and ELIZABETH A. BAILEY, husband and wife, and D. MICHAEL BAILEY and
DENISE M. BAILEY, husband and wife, Grantor, herein referred to as "Lessor" and
SALEM BANK & TRUST, N.A., Grantee, herein referred to as "Lessee", concerning
the following described premises, situate in Roanoke County, Virginia, to-wit:

                   7337 Williamson Road, Roanoke, Virginia;
                   Lots 5 and 6 and the western 15 feet
                   of lot 7, Sec. 1, R.E. Boxley Estate Map.

     FOR GOOD AND VALUABLE CONSIDERATION, Lessor leases the above described
leased premises, together with all rights, improvements, and appurtenances
thereto, to Lessee, and Lessee hires the same from Lessor for the term and under
the conditions contained in the unrecorded lease dated June 9, 1993, which
unrecorded lease is incorporated herein by reference.

     The term of the lease is to commence an April 1, 1993 and will end on March
31, 1998, subject to Lessee's option to extend the term for two (2) additional
terms of five (5) years following the expiration of the original term.  The
lease contains an option to purchase.

     This memorandum is not a complete summary of the lease.  Provisions in this
memorandum shall not be used in interpreting the lease provisions.  In the event
of a conflict between this memorandum and the said unrecorded lease, the
unrecorded lease shall control.

          WITNESS the following signatures and seals:

                                        ________________________________________
                                        William D. Bailey

                                        ________________________________________
                                        Elizabeth A. Bailey

                                        ________________________________________
                                        D. Michael Bailey

                                        ________________________________________
                                        Denise M. Bailey

                                        SALEM BANK & TRUST, N.A.

                                        ________________________________________
                                          Its Senior Vice President & Cashier

                                       1
<PAGE>

STATE OF VIRGINIA

County OF Roanoke
------    -------

     The foregoing instrument was acknowledged before me on July, 3, 1993, by
                                                            -------
William D. Bailey and Elizabeth A. Bailey, husband and wife.

     My commission expires September 30, 1997
                           ------------------

                                        ______________________________
                                        Notary Public

STATE OF VIRGINIA
County OF Roanoke
------    -------

          The foregoing instrument was acknowledged before me on July, 3, 1993,
                                                                 -------
by D. Michael Bailey and Denise M. Bailey, husband and wife.

     My commission expires September 30, 1997
                           ------------------

                                        ______________________________
                                        Notary Public

STATE OF VIRGINIA
City OF Salem
----    -----

     The foregoing instrument was acknowledged before me on 7/14 1993, by Gill
                                                            ----          ----
R. Roseberry, Senior Vice President & Cashier of Salem Bank & Trust, N.A.
------------  -------------------------------

     My commission expires 7/31/94
                           -------

                                        ______________________________
                                        Notary Public

                                       2
<PAGE>

                                   CONTRACT

Re: Lease-Purchase Agreement - 7337 Williamson Road, Roanoke County, Virginia

This contract is to set forth, in writing the primary terms for a proposed
lease-purchase agreement of 7337 Williamson Road, Roanoke County, Virginia, to
Salem Bank & Trust, N.A. (the "Bank").  As I believe you know, the Bank is
required to obtain approval from the Office of the Comptroller of the Currency
prior to opening and operating a branch of the Bank.  It is our belief that the
Bank's application will be favorably reviewed.  This contract is subject to OCC
approval within 120 days.

The following are specific terms upon which I would recommend approval of a
subsequent lease to the Bank's Board of Directors.

                                   PREMISES

The building and land situate at 7337 Williamson Road, Roanoke, Virginia,
formerly owned by Crestar Bank, and described as Lots 5 and 6, and the western
15 feet of Lot 7, Section 1, R. F. Boxley Estate Map, with the right of ingress
and egress thereto.

Additionally, the Bank would have the right to install and maintain two or more
contiguous lanes at its drive-up window, the right to construct a canopy
conforming with the existing architecture over the second drive-up lane and the
right and authority to operate an automatic teller machine.

                                     TERM

The term of the lease shall be for an initial period of five (5) years with the
option to the Bank to renew the lease for two (2) additional five year terms.

                                    RENTAL

The rental to be paid by the bank during the initial five (5) year period shall
be $150,000.00 payable in equal monthly installments of $2,500.00 each due and
payable on the first day of each month during the lease term.  Rent to start at
time bank takes possession of property.

The Bank agrees to pay landlord $1,250.00 per month beginning February 1, 1993
and continuing monthly until such time as the Bank receives approval from the
Office of the Comptroller of the Currency to open the branch.  The Bank will
receive credit back on this rental towards future rents.

Should the bank exercise its option to renew for one (1) additional five (5)
year term, the total rent for the term shall increase 15%.

Should the bank exercise its option to renew for a second additional five (5)
year term, the total rent shall increase 15%.

                               PERSONAL PROPERTY
<PAGE>

Included in the lease is all bank items, including, but not limited to, the
vault door, front and back teller counter fixtures, drive-up window and deal
drawer, night deposit and chest.

                                  MAINTENANCE

The Bank shall maintain in good working order the inner and outer shell of the
leased building, including roofing, brick, mortar, electrical systems, heating
systems, air conditioning and plumbing, windows, floors, inside walls, ceiling,
carpets and wall coverings.  Owner/Lessor shall deliver the premises in good
working order at the inception of the lease.

                              TAXES AND UTILITIES

The Bank shall pay the real estate taxes and electricity, water and sewage that
is metered to the leased building.

                                   INSURANCE

The Bank shall carry with an approved insurance carried licensed to operate in
this state public liability insurance in the sum not less than $1,000,000.00.
The Bank shall maintain hazard insurance on the premises in the amount of the
appraised value of the improvements as determined by the lessee's insurance
company.

                                 IMPROVEMENTS

The Bank shall have the right to make improvements to the premises subject to
the approval of the landlord, which approval shall not be unreasonable withheld.

Additional capital improvements shall also become the Bank's responsibility to
maintain.  These improvements will be considered as a credit toward the purchase
of the property should the Bank exercise its option to purchase.

                              OPTION TO PURCHASE

The Bank shall have an option to purchase which may be exercised at anytime
during the fifteenth year of the lease term for a purchase price to be
determined by the average of two appraisals.  In no case, however, shall such
purchase price exceed $395,000.00 or be less than $295,000.00. The landlord
shall give, to the Bank, six months prior to the beginning of the fifteenth
year of the lease term, a written notice of its option rights hereunder.
<PAGE>

                                    SIGNAGE

The Bank may install such signage as is allowed under the ordinances of Roanoke
County, of course, the forgoing merely sets forth the primary provisions of a
proposed lease and, the lease itself, would be significantly more detailed than
the foregoing.

If this contract adequately sets forth our discussions, I would ask that you
sign a copy and return to me on or before January 29, 1993.  Upon receipt, I
will direct the Bank's attorney to prepare a draft lease agreement for your
review.

                                                SALEM BANK & TRUST, N.A.

                                                By______________________________
                                                  Clark Owen, Jr., President

                                                Date:  1-22, 1993
                                                       ----    --

ACCEPTED:

___________________________________
William D. Bailey

___________________________________
Elizabeth A. Bailey

___________________________________
D. Michael Bailey

___________________________________
Denise M. Bailey

Date: 1-23, 1993
      ----    --<PAGE>

                                                            Lease - EXHIBIT 10.6

                          SALEM BANK AND TRUST, N.A.
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TELEPHONE (540) 387-0223           P. O. BOX 979           SALEM, VIRGINIA 24153

March 4, 1996

Mr. Grant Clatterbuck
Westwind Properties
P. 0. Box 21069
Roanoke, VA 24018-0534

RE:  Lease Renewal
     2103 Electric Road
     Roanoke, VA 24018

Dear Grant:

Pursuant to our telephone conversation this morning, I am pleased to inform you
that we are going to exercise our option to renew our lease on the above
captioned property for one (1) additional five (5) year term with the rent equal
to $3,750.00 per month as outlined in Section 3 (B) of the lease executed March
11, 1991.

The new lease will begin May 1, 1996 and will expire on April 30, 2001.

If you are in agreement and the terms and dates described above are correct,
please acknowledge and return one copy of this letter to me for our files.

Should you have any questions, please feel free to contact me.

Sincerely,

Gill R. Roseberry
Senior Vice President

Westwind Properties

By:_____________________________            Date:____________________

GRR/lbw
<PAGE>

                                LEASE AGREEMENT
                                ---------------

     THIS LEASE AGREEMENT, executed this llth day of March, 1991, by and between
OAK GROVE INCOME ASSOCIATES, a Virginia limited partnership ("Landlord"), and
SALEM BANK & TRUST, N. A., a banking institution organized under the laws of the
United States ("Tenant").

                                  WITNESSETH
                                  ----------

     THAT FOR AND IN CONSIDERATION of the rentals and covenants hereinafter
recited, the Landlord agrees to lease unto the Tenant the following property,
upon the terms and conditions hereinafter set forth:

     1.   PREMISES: The approximately 1,862 sq. ft. building situate at 2103
Electric Road, Roanoke County, Virginia, with the right of ingress and egress
thereto, with additional property sufficient for the Tenant to install and
maintain two contiguous lanes at its drive-up window.  The Tenant shall have the
right, subject to the ordinances of Roanoke County, to so install and maintain
two lanes at its drive-up window and shall further have the right to construct a
canopy over the second drive-up lane upon the approval by the Landlord of the
architectural plan, which approval will not be unreasonably withheld if
conforming with the existing architecture.  The Tenant shall further have the
right to construct a canopy over the second drive-up lane upon the approval by
the Landlord of the architectural plan, which approval will not be unreasonably
withheld if conforming with the existing architecture.  The Tenant shall further
have the right and authority to operate an automatic teller machine either flush
with the existing building or in either, or both, of the drive-up lanes.

     The canopy or any other improvements to the first and second drive-up lane
shall become part of the Premises and shall not be removed by the Tenant at the
expiration of the lease term. The automatic teller machine may be removed by the
Tenant at the expiration of the lease term, however, the Tenant shall restore
the Premises in accordance with the existing architecture and in the same
condition as at the inception of this lease.

     Any improvements so constructed by the Tenant shall be subject to and meet
all applicable building codes.

     2.   TERM: The term of the lease shall be for an initial period of five (5)
years with the option to the Tenant to renew the lease for two (2) additional
five (5) year terms. The initial term shall begin as hereinafter provided.
<PAGE>

     3    RENT:

          A.   Tenant shall pay rent during the initial five year period in the
sum of One Hundred Eighty Thousand Dollars($180,000.00) payable in equal monthly
installments of Three Thousand Dollars ($3,000.00) each due and payable on the
first day of each month during the lease term.

          B.   Should the Bank exercise its option to renew for one (1)
additional five (5) year term, the total rent for the term shall increase 25%
(5% for each year of the initial term) or the percentage rise, during the
initial lease term, in the Consumer Price Index for Urban Wage Earners and
Clerical Workers published by the U. S. Department of Labor (1967 equals 100),
whichever is greater. (For example: should the 25% increase be applicable, the
monthly rental for each month during the renewal term would equal $3,750.00.
Should the CPI increase 30% during the initial lease term, the monthly rental
for each month during the renewal term would equal $3,900.00.)

          C.   Should the Bank exercise its option to renew for a second
additional five (5) year term, the total rental shall be determined as follows:

               1.   The parties agree to negotiate a fair market rental;

               2.   Should the parties be unable to agree, as provided in
Paragraph C(1) above, each party shall select a duly qualified appraiser to
determine fair market rental. Should the rental appraisals vary 10% or less, the
rent shall be established by an average of the two;

               3.   Should the two rental appraisals vary more than 10%, the two
appraisers shall select a third appraiser to determine fair market rental.  The
decision of the third appraiser shall be final, however, in no case will the
final rental exceed or be lower than the two prior rental appraisals and in no
case will the rental be less than the prior five (5) year term;

          D.   In the event Tenant fails to pay monthly rental within fifteen
(15) calendar days after the due date, Tenant shall promptly pay Landlord a late
fee of 5% of the monthly rent then due. Should the Tenant fail to pay said late
fee and rent, the Landlord shall be entitled to all relief, including attorney's
fees, as is provided in Paragraph 22 herein.

     4.   PERSONAL PROPERTY: The Landlord further leases unto the Tenant, as
part of this lease, the vault door, front and back teller counter fixtures,
cameras, drive-up window and deal drawer, night deposit and chest. Tenant shall
keep and maintain said personal property in operating condition at its expense.
Upon expiration of the lease term, Tenant shall deliver to Landlord all keys,
operating manuals, documents, and combinations relating to the aforesaid items
of personal property, so that Landlord may operate said items in working order.
If the aforesaid items are not in working order, they will be repaired at the
Tenant's expense.

                                       2
<PAGE>

     5.   USE OF PREMISES: The Premises shall be used and occupied for the
purpose of a branch bank and for no other purpose. Tenant shall, at its own risk
and expense, keep in force all governmental licenses and permits necessary for
such use.

     6.   QUIET ENJOYMENT: Tenant, upon payment of the rents herein reserved,
and performance of all of the terms, conditions and covenants herein contained,
shall have, hold, and enjoy the Premises during the full term of this lease,
subject and subordinate to all of the terms, covenants and conditions of this
lease.

     7.   COVENANTS OF LANDLORD: Landlord covenants with Tenant that (i)
Landlord is a limited partnership created and operated in accordance with
Virginia law and has the right to lease the Premises in the manner aforesaid,
and (ii) Landlord presently owns the Premises in fee simple and has marketable
title thereto. Tenant accepts this lease subject and subordinate to the present
state of title of the leased Premises and to any lien now or hereinafter
existing upon the leased Premises and to any renewal, extension or modification
thereof.

     8.   SUBORDINATION: Tenant agrees and acknowledges that this lease is and
shall be subject and subordinate at all times to any and all mortgages and deeds
of trust currently and hereafter placed upon the Premises, and to all renewals,
modifications, consolidations, participations, replacements and extensions
thereof; provided, however, that so long as Tenant is not in default hereunder,
Tenant's rights and privileges under this lease shall continue in full force and
effect and Tenant's occupancy shall not be disturbed, nor shall the leasehold
estate granted by this lease be materially, adversely affected, during the term
of this lease or during any extension thereof, except in accordance with the
terms of this lease. It is the intention of the parties that this provision
shall be self-operative and that no further instrument shall be required to
effect the subordination of this lease.

     Tenant agrees at any time and from time to time within ten (10) days after
notice to execute, acknowledge, and deliver to Landlord a statement, in writing,
and in form and substance acceptable to Landlord, certifying that this lease is
unmodified and in full force and effect (or if there have been modifications
that the lease is in full force and effect as modified and stating the
modifications), the dates to which the rent and other charges have been paid in
advance, if any, and whether or not there exists any default in the performance
of any term, condition or covenant of this lease and, if so, specifying each
such default, it being intended that any such statement delivered pursuant to
this paragraph may be relied upon by Landlord and by any mortgagees, prospective
purchasers or prospective mortgagees of Landlord's interest in all or any part
of the property on which the Premises is located.  The failure of Tenant to
provide such estoppel certificates or other letters, as may be required, within
ten (10) days after notice by Landlord shall constitute an Event of Default by
Tenant and shall entitle Landlord to pursue any of the remedies for default set
forth in this lease.

     9.   DELIVERY OF POSSESSION: Possession of the Premises shall be delivered
to Tenant at the commencement of the term as herein set forth.

                                       3
<PAGE>

     10.  UTILITIES: Tenant shall pay for electricity, water and sewage that is
metered to the Premises and for any other utility added in the future (example -
natural gas).

     11.  MAINTENANCE: Landlord shall maintain in good working order the outer
shell of the leased building, including roof, brick, mortar, electrical systems,
heating system, air conditioning and plumbing. The Tenant shall maintain the
windows, floors, inside walls, ceiling, carpets, wall coverings, glass and
doors. Janitorial services shall be provided by Tenant at its expense.

     Room temperature, in all areas of the leased building, shall not be lower
than 66(degrees) Fahrenheit or higher than 77(degrees) Fahrenheit. If the
Landlord is unable to maintain the foregoing temperature range for a reasonable
period of time, it shall attempt to correct by installing vertical blinds. If
the installation of vertical blinds fails to keep the room temperature within
said temperature range, a small through-the-wall unit may be installed to
correct the temperature in the area adversely affected. if the installation and
use of this through-the-wall unit fails to maintain said temperature range, the
Tenant shall require, and the Landlord shall provide, whatever is necessary to
maintain temperature range as herein provided.

     Snow removal from the Tenant's drive-up lanes shall be the responsibility
of the Tenant. The Tenant shall maintain, at its expense, the lawn and shrubbery
on the Premises.

     12.  COMPLIANCE WITH LAW: Tenant shall comply with all governmental laws,
ordinances and regulations applicable to the use of the Premises whether
material or incidental to said use and shall promptly comply with all changes in
governmental laws, ordinances, regulations, orders and directives affecting the
Premises. Tenant shall not commit, or suffer to be committed, any waste upon the
Premises or any nuisance.

     13.  ASSIGNMENT AND SUBLEASING: Tenant may not assign this lease or any
interest herein or sublet the whole or any part of the Premises, or permit the
same to be occupied by anyone other than Tenant, without in each instance having
first obtained Landlord's prior written consent.

     14.  REAL ESTATE TAXES: The Tenant shall pay to the Landlord 100% of the
real estate taxes on the building and on that portion of the Landlord's real
property on which the building is situate; along with 185 feet of property
frontage on Electric Road and running 150 feet deep. The real estate taxes
herein required to be paid by the Tenant to the Landlord shall be determined
from the Roanoke County Real Estate Assessor's Office calculations and as billed
by Landlord to Tenant. Said payments from the Tenant shall be due within ten
(10) days from the receipt of a bill from Landlord.

     15.  PARKING: Tenant's patrons and personnel may utilize parking spaces
within the Premises owned by the Landlord on a first come first serve basis.

                                       4
<PAGE>

     16.  INSURANCE:

          A.   Tenant covenants and agrees that it will, at all times during the
entire term of this lease, keep in full force and effect a policy of
comprehensive public liability insurance issued by a reputable insurance company
licensed to do business in the Commonwealth of Virginia with respect to Premises
and the business conducted by Tenant thereon, in which there shall be a combined
single limit of not less than ONE MILLION DOLLARS ($1,000,000.00).

          B.   Tenant also covenants and agrees to maintain at its cost
throughout the term of this lease, with respect to all of its personal property,
tenant improvements and alterations, a policy of standard fire and extended
coverage insurance including glass breakage coverage, to the extent of at least
the full replacement value thereof.

          C.   All insurance policies required to be carried by Tenant under
this lease shall name, as additional insureds, Landlord or any other entity
having an insurable interest or liability in or relating to the Premises
(including any mortgagee of Landlord) . All insurance policies described or
required by this paragraph shall provide that the insurance thereunder shall not
be cancellable prior to thirty (30) days' written notice thereof to Landlord and
the other additional insureds, if any. A certified copy of such policies and any
renewals thereof or certificates of such insurance shall be delivered to
Landlord prior to Tenant's taking possession of the Premises and any renewals of
said policies shall be delivered to Landlord at least fifteen (15) days prior to
the expiration of the policies or upon request of Landlord. Any such policies
shall be primary and noncontributing with insurance carried by Landlord. All
insurance to be maintained under this paragraph shall be in form and substance
and with insurance companies acceptable to Landlord.

          D.   Landlord covenants and agrees that it will at all times during
the term of this lease obtain and keep in force insurance on the Premises and
all improvements thereon, except as otherwise provided in Subparagraph B above,
to the extent of at least the replacement cost of said building and improvements
(excluding footings and foundations). Such policy shall contain coverage against
loss, damage or destruction by fire and such other hazards as are commonly
covered and protected against under policies of insurance known as extended
coverage insurance as the same may exist from time to time according to the laws
of the Commonwealth of Virginia and may contain a deductible clause not to
exceed TWENTY-FIVE THOUSAND DOLLARS ($25,000.00).

          E.   Landlord and Tenant do hereby waive all rights of recovery and
causes of action which either has, or may have, or which may arise hereafter
against the other, whether caused by negligence or otherwise, for any damage to
the Premises, property or business caused by any of the perils covered by fire
and extended coverage, building and contents, insurance, or for which either
party may be reimbursed as a result of insurance coverage affecting any loss
suffered by the parties.

                                       5
<PAGE>

     17.  SIGNAGE: The brick and electrical wiring to the existing free standing
sign for the First Virginia Bank sign shall remain and may be utilized by the
Tenant, but not the sign itself. The Tenant may install such signage as is equal
to the existing First Virginia Bank signage and as allowed under the ordinances
of Roanoke County. However, the signage shall not be greater than the equivalent
of the existing First Virginia Bank signage without the prior written consent of
the Landlord, which consent may be withheld at Landlord's sole discretion.

     18.  FIRE AND CASUALTY DAMAGE: In the event the Premises are damaged or
destroyed by fire or other cause, Tenant shall give immediate notice thereof to
Landlord. The rights and obligations of Landlord and Tenant in the event of such
casualty shall be as follows:

          A.   If the Premises are totally destroyed by fire or other cause, or,
in the judgment of Landlord, the Premises is so damaged that rebuilding or
repairs cannot reasonably be completed within 120 working days after the date of
written notification by Tenant to Landlord of the happening of the damage,
Landlord or Tenant shall have the right to terminate this lease upon written
notice to the other given within sixty (60) days after the date of such damage
or destruction, and the rent and additional rent shall be abated for the
unexpired portion of the lease, effective as of the date of such damage.

          B.   If the Premises are damaged by fire or other cause such that, in
the judgment of Landlord, rebuilding or repairs can be reasonably completed
within 120 working days from the date of written notification by Tenant to
Landlord of the happening of the damage, or if, pursuant to Paragraph 18A above,
neither Landlord nor Tenant elects to terminate this lease upon the total
destruction of the Premises, this lease shall not terminate, and Landlord shall
proceed with reasonable diligence to rebuild or repair the building and the
Premises to substantially the condition that existed immediately prior to such
damage; provided, however, that the obligation of Landlord to repair such damage
shall be limited to the footings, foundations, exterior walls, roof, and the
interior improvements of the Premises originally installed by Landlord, but not
including any construction, alterations or improvements installed by Tenant and
provided further that if fifty percent (50%) or more of the Premises is damaged
or destroyed, Landlord or Tenant shall have the option to terminate this lease
rather than to rebuild or repair the Premises, in which event the rent and
additional rent shall be abated for the unexpired portion of the lease,
effective as of the date of such damage.  If there should be a substantial
interference with Tenant's use of the Premises as a result of such damage or
destruction such that Tenant cannot conduct its business in the Premises, then
the rent shall abate for such time as Tenant is unable to use the Premises,
provided, further, that such damage or destruction was not caused by the
negligence of Tenant, its agents, employees, contractors or invitees.

     19.  CONDEMNATION:

          A.   If the Premises, and/or any of the two drive-up lanes, are
rendered unusable by the taking of any lawful authority under the power of
eminent domain, this lease may be terminated

                                       6
<PAGE>

at the sole option of the Tenant. The Tenant shall notify the Landlord within
thirty (30) days after any such taking by any lawful authority and any such
                                                                   ---
termination herein by the Tenant shall be within ninety (90) days of the taking.

          B.   If the Tenant chooses not to terminate this lease, all of the
provisions herein shall remain in full force and effect with respect to the
portion of the Premises remaining after such taking, except that the rent shall
be reduced for the balance of the term, on a pro-rata basis, to the extent the
Premises has been diminished in quantity and usefulness to the Tenant.

          C.   In any event, the Tenant shall be entitled to participate in any
and all awards for such taking to the extent of any loss, by the Tenant, of any
improvements installed by the Tenant and situate on the Premises at the time of
such taking.

     20.  INDEMNIFICATION BY TENANT: Tenant will protect, indemnify and save
harmless Landlord from and against all liabilities, obligations, claims,
damages, penalties, causes of action, costs and expenses (including without
limitation, reasonable attorney's fees and expenses) imposed upon or incurred by
or asserted against Landlord by reason of (a) any occurrence,, injury to or
                                              ---
death of persons (including workmen) or loss of or damage to property occurring
on or about the Premises, (b) any use, non-use or condition of the Premises, (c)
any failure on the part of Tenant to perform or comply with any of the terms of
this lease, or (d) performance of any labor or services or the furnishing of any
materials or other property in respect of the Premises or any part thereof.  In
case any action, suit or proceeding is brought against Landlord by reason of any
such occurrence, Tenant, upon Landlord's request, will at Tenant's expense
resist and defend such action, suit or proceeding, or cause the same to be
resisted and defended by counsel designated by the insurer whose policy covers
such occurrence or by counsel designated by Tenant.  The obligations of Tenant
under this paragraph arising by reason of any such occurrence having taken place
during the term of this lease shall survive any expiration or termination of
this lease.

     21.  LANDLORD'S RIGHT OF ENTRY: Landlord and its authorized agents or
designees shall have the right to enter the Premises at any reasonable time for
the following purposes: (a) inspecting the general condition and state of repair
of the Premises; (b) the making of repairs required by Landlord; (c) showing of
the Premises, within the last one hundred eighty (180) days of the term of this
Agreement, to any prospective Tenant; or (d) the showing of the building for any
other legal or reasonable purpose. During the last one hundred and eighty (180)
days of the term of this lease, Landlord and its authorized agents shall have
the right to erect on or about the Premises a sign advertising the property for
lease or for sale. The foregoing notwithstanding, Landlord and its agents and
designees, shall also have the right to enter the Premises at any time there is
an emergency in the Premises.

     The Landlord shall have the right to show the Premises to any prospective
Purchaser at any reasonable time.

                                       7
<PAGE>

     22.  DEFAULT BY TENANT: Each of the following events shall be deemed to be
an "Event of Default" by Tenant under this lease:

          A.   Tenant's failure to pay any installment of the rent on the date
the same is due if such failure shall continue for a period of twenty (20)
calendar days.

          B.   Tenant's failure to comply with any term, provision or covenant
of this lease, other than the payment of rent, if such failure shall continue
for more than thirty (30) days after notice thereof to Tenant.

     Upon the occurrence of either of such events of default, Landlord shall
have the right at Landlord's election to pursue, in addition to and cumulative
of any other rights Landlord may have, at law or in equity, any one or more of
the following remedies without any notice or demand whatsoever:

               1.   Terminate this lease, in which event Tenant shall
immediately surrender the Premises to Landlord, and if Tenant fails to do so,
Landlord, may, without prejudice to any other remedy that it may have for
possession or arrearages in rent or additional rent, enter upon and take
possession of the Premises and expel or remove Tenant and any other person who
may be occupying the Premises or any part thereof without being liable for
prosecution or y claim of damages therefor; and Tenant agrees to pay to Landlord
               -
on demand the amount of all loss and damage that Landlord may suffer by reason
of such termination, whether through inability to relet the Premises on
satisfactory terms or otherwise.

               2.   Without terminating this lease, enter upon and take
possession of the Premises and expel or remove Tenant and any other person who
may be occupying the Premises or any part thereof without being liable for
prosecution or any claim for damages therefor; and relet the Premises and
receive the rent therefor; and Tenant agrees to pay to Landlord on demand any
deficiency that may arise by reason of such reletting. Any improvements to the
real estate shall remain the property of the Landlord.

               3.   In case of re-entry, repossession or termination of this
lease, whether or not the same is the result of the institution of summary or
other proceedings, Tenant shall remain liable (in addition to other accrued
liabilities), to the extent legally permissible, for the rent, additional rent
and all other charges provided for herein until the date this lease would have
expired had such termination, re-entry or repossession not occurred.

     All the rights and remedies herein given to the Landlord for the recovery
of the Premises because of the default by the Tenant in the payment of any stuns
that may be payable pursuant to the terms of this lease, or upon the breach of
any of the terms hereof, or the rights to re-enter and take possession of the
Premises upon the happening of any of the defaults or breaches of any such
covenants, or the right to maintain any action for rent or damages and all other
rights and remedies allowed at law or in equity, are hereby reserved and
conferred upon the Landlord as

                                       8
<PAGE>

distinct, separate and cumulative remedies, and no one of them, whether
exercised by the Landlord, shall be deemed to be in exclusion of any of the
others.

     In the event that the Landlord should bring suit for possession of the
premises, for the recovery of any sum due under or because of the breach of any
covenant of this lease, or for any other relief against Tenant, or should Tenant
bring any action for any relief against Landlord arising out of this lease, and
Landlord should prevail in any such suit, Tenant shall pay to the Landlord all
reasonable attorney's fees, which shall be deemed to have accrued on the date
such action is instituted and shall be enforceable even though such action is
not prosecuted to judgment.

               4.   Upon termination and/or default, the ownership of all fixed
leasehold improvements of the Tenant shall revert to the Landlord.

     23.  NOTICES: All notices, statements, demands, requests, consents,
approvals, authorizations, offers, agreements, appointments or designations
under this lease by either party to the other shall be in writing and shall be
sufficiently given and served upon the other party if sent by certified mail,
return receipt requested, postage prepaid, addressed as follows:

          IF TO TENANT:

          Clark Owen, Jr.
          Salem Bank & Trust, N. A.
          P.0. Box 979
          Salem, Virginia 24153

          IF TO LANDLORD:

          Oak Grove Income Associates
          c/o Westwind Properties
          P.0. Box 1138
          Roanoke, Virginia 24006

and to such other place as Landlord may from time to time designate by notice to
Tenant.  Notice sent in compliance with this paragraph shall be deemed given on
the third (3rd) day next succeeding the day on which it is sent.
                                        ---

     24.  GOVERNING LAW: This lease shall be construed and governed by the
applicable laws of the Commonwealth of Virginia.

                                       9
<PAGE>

     25.  MISCELLANEOUS PROVISIONS:

          A.   Whenever the singular number is used in this lease and when
required by the context, the same shall include the plural, and the masculine
gender shall include the feminine and neuter genders, and the word "person"
shall include corporation, firm, or association.  If there be more than one
tenant, the obligations imposed under this lease upon Tenant shall be joint and
several.

          B.   The marginal headings or titles to the paragraphs of this lease
are not a part of this lease and shall have no effect upon the construction or
interpretation of any part of this lease.

          C.   This instrument contains all of the agreements and conditions
made between the parties to this lease and may not be modified orally or in any
other manner than by an agreement in writing signed by all the parties to this
lease, or their respective successors in interest.

          D.   Time is of the essence of each term and provision of this lease.

          E.   The terms and provisions of this lease shall be binding upon and
inure to the benefit of the executors, administrators, successors and assigns of
Landlord and Tenant.

          F.   If any provision of this lease shall at any time be deemed to be
invalid or illegal by the entry of a final judgment from a court of competent
jurisdiction, which judgment is not subject to appeal, then, in that event, this
lease shall continue in full force and effect with respect to the remaining
provisions of the lease as if the invalidated provision had not been contained
herein.

          G.   This lease shall not be recorded, but a memorandum of lease
describing the property herein demised, giving the term of this lease and
renewal rights, if any, and referring to this lease may be recorded by either
party at the sole expense of the party so recording such memorandum of lease.

          H.   This lease may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.

     26.  INCEPTION OF LEASE TERM: It is the understanding of the parties hereto
that First Virginia Bank will be vacating the Premises on or about March 18,
1991.  Thereafter, would follow a sixty (60) day "cooling-off" period during
which term First Virginia Bank would be solely responsible for the rent.
However, the Tenant would be allowed to enter and inspect the Premises during
this sixty (60) day "cooling-off" period and, in the last thirty (30) days of
this period, the Tenant could perform work and alterations on the Premises.
Accordingly, the

                                      10
<PAGE>

inception date for the initial lease term would be May 18, 1991.  Should Tenant
perform work and alterations on the Premises during the last said thirty (30)
days as aforesaid, the Tenant shall pay a rental to the Landlord of $1,500.00.

     The parties understand that First Virginia Bank might not vacate the
Premises on or about March 18, 1991.  If that be the case, the foregoing
described schedule would be adjusted accordingly.  However, in no event shall
this lease term begin later than November 1, 1991.  Should this lease term be
delayed until after November 1, 1991, the Tenant, at its sole option, may
terminate this lease.

     The Tenant shall set forth by written notice the actual inception date of
this lease and shall deliver said notice to the Landlord by certified mail,
return receipt requested. In the absence of the Tenant's notice as aforesaid,
the Landlord shall notify the Tenant of the inception date of the lease upon
Tenant's occupancy or renovation of the Premises.

     27.  CONTINGENCY: This lease agreement is expressly contingent upon the
Tenant obtaining approval, within ninety (90) days of the execution of this
lease, from the office of the Comptroller of the Currency to open and operate a
branch bank on the Premises.  The Tenant shall, upon execution of this lease,
immediately apply for such approval and shall vigorously pursue said approval.
Should this approval not be obtained within ninety (90) days, Tenant will notify
Landlord of the status of its application before the Office of the Comptroller
of the Currency.  This lease shall terminate if the Tenant cannot demonstrate to
the satisfaction of the Landlord that approval will be granted before November
1, 1991.

     This lease agreement is subject to the acquisition by the Landlord of the
items of personal property listed in Paragraph 4 herein from First Virginia
Bank.  Should Landlord be unable to acquire said personal property, this lease
may be terminated at the option of the Tenant.

     28.  HOLDING OVER: If the Tenant shall remain in possession of the
Premises, or any part thereof, after the expiration of the term of this lease,
such holding over shall constitute and be construed as a tenancy from month to
month only, at a monthly rental of double the monthly rent applicable during the
last month of the term of the lease.  Tenant shall also be subject to all of the
conditions, provisions and obligations of this lease, insofar as the same are
applicable to a month to month tenancy.  Nothing contained herein shall
constitute permission granted or inferred for Tenant to remain in possession
beyond the exact termination date of this lease.

     IN WITNESS WHEREOF, the Landlord and Tenant have signed and sealed this
lease as of the date and year above written:

                                      11
<PAGE>

                    LANDLORD: OAK GROVE INCOME ASSOCIATES,
                              a Virginia limited partnership

                              By________________________________________
                              Title_____________________________________

                    TENANT:   SALEM BANK & TRUST, N. A.
                              a banking institution organized under the laws of
                              the United States

                              By________________________________________
                              Title_____________________________________

                                      12

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