Document:

Exhibit 10.4

                           DUTCHFORK BANCSHARES, INC.
                              EMPLOYMENT AGREEMENT

     This AGREEMENT  ("Agreement") is made effective as of June 29, 2000, by and
between  DutchFork  Bancshares,  Inc.  (the  "Holding  Company"),  a corporation
organized under the laws of the State of Delaware with its principal  offices at
1735  Wilson  Road,   Newberry,   South   Carolina  29108  and  Steve  P.  Sligh
("Executive").  Any  reference  to  "Institution"  or "Bank"  herein  shall mean
Newberry Federal Savings Bank or any successor thereto.

     WHEREAS,  the Holding  Company  wishes to assure  itself of the services of
Executive for the period provided in this Agreement; and

     WHEREAS, Executive is willing to serve in the employ of the Holding Company
on a full-time basis for said period.

     NOW, THEREFORE,  in consideration of the mutual covenants herein contained,
and upon the other terms and conditions hereinafter provided, the parties hereby
agree as follows:

1.   POSITION AND RESPONSIBILITIES.

     During the period of Executive's employment hereunder,  Executive agrees to
serve as Executive Vice President,  Treasurer and Chief Financial Officer of the
Holding Company.  Executive shall render  administrative and management services
to the Holding Company such as are customarily performed by persons in a similar
executive  capacity.  During said  period,  Executive  also agrees to serve,  if
elected, as an officer or director of any subsidiary of the Holding Company.

2.   TERM.

     (a) The period of  Executive's  employment  under this  Agreement  shall be
deemed to have  commenced as of the date first above written and shall  continue
for a period of thirty-six (36) full calendar months  thereafter.  Commencing on
the first anniversary date of this Agreement, and continuing on each anniversary
thereafter,  the disinterested  members of the board of directors of the Holding
Company  ("Board")  may extend the  Agreement an  additional  year such that the
remaining term of the Agreement shall be thirty-six (36) months unless Executive
elects  not to extend the term of this  Agreement  by giving  written  notice in
accordance with Section 8 of this Agreement. The Board will review the Agreement
and  Executive's  performance  annually for purposes of  determining  whether to
extend the Agreement and the rationale and results  thereof shall be included in
the minutes of the Board's meeting.  The Board shall give notice to Executive as
soon as  possible  after  such  review  as to  whether  the  Agreement  is to be
extended.

     (b) During  the  period of  Executive's  employment  hereunder,  except for
periods of absence  occasioned  by illness,  reasonable  vacation  periods,  and
reasonable  leaves of absence,  Executive  shall  devote  substantially  all his
business time, attention, skill, and efforts to the faithful

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performance of his duties hereunder,  including  activities and services related
to the  organization,  operation and  management of the Holding  Company and its
direct or indirect subsidiaries ("Subsidiaries") and participation in community,
professional and civic organizations; provided, however, that, with the approval
of the Board,  as evidenced by a  resolution  of such Board,  from time to time,
Executive  may serve,  or continue to serve,  on the boards of directors of, and
hold any other offices or positions in,  companies or  organizations,  which, in
such  Board's  judgment,  will not  present any  conflict  of interest  with the
Holding  Company or its  Subsidiaries,  or materially  affect the performance of
Executive's duties pursuant to this Agreement.

     (c)  Notwithstanding  anything contained in this Agreement to the contrary,
Executive's employment with the Holding Company may be terminated by the Holding
Company or Executive during the term of this Agreement, subject to the terms and
conditions  of this  Agreement.  However,  Executive  shall not perform,  in any
respect,  directly  or  indirectly,  during the  pendency  of his  temporary  or
permanent   suspension  or  termination   from  the   Institution,   duties  and
responsibilities formerly performed at the Institution as part of his duties and
responsibilities  as Executive  Vice  President,  Treasurer and Chief  Financial
Officer of the Holding Company.

3.   COMPENSATION AND REIMBURSEMENT.

     (a) Executive shall be entitled to a salary from the Holding Company or its
Subsidiaries of $159,000 per year ("Base Salary"). Base Salary shall include any
amounts of compensation deferred by Executive under any tax-qualified retirement
or  welfare  benefit  plan  or  any  other  deferred  compensation   arrangement
maintained by the Holding Company and its  Subsidiaries.  Such Base Salary shall
be payable in accordance with the Holding  Company's payroll  practices.  During
the period of this Agreement, Executive's Base Salary shall be reviewed annually
in  connection  with  Executive's  performance  evaluation  by the Board and the
Board's  consideration of any renewal or extension of the term of the Agreement.
Executive's  salary  review shall be conducted by the Board or by a Committee of
the Board  delegated  such  responsibility  by the Board.  Any  increase in Base
Salary  shall  become the "Base  Salary"  for  purposes  of this  Agreement.  In
addition  to the Base  Salary  provided  in this  Subsection  3(a),  the Holding
Company shall also provide Executive, at no premium cost to Executive,  with all
such other benefits as provided  uniformly to permanent  full-time  employees of
the Holding  Company  and its  Subsidiaries.  In  addition,  Executive  shall be
entitled  to  incentive  compensation  and  bonuses as  provided  in any plan or
arrangement of the Holding  Company or its  Subsidiaries  in which  Executive is
eligible to participate.

     (b)  Executive  shall be entitled to  participate  in any employee  benefit
plans,  arrangements and perquisites  substantially equivalent to those in which
Executive was participating or otherwise deriving benefit from immediately prior
to the beginning of the term of this Agreement,  and the Holding Company and its
Subsidiaries  will not,  without  Executive's  prior written  consent,  make any
changes in such  plans,  arrangements  or  perquisites  which  would  materially
adversely affect Executive's rights or benefits thereunder, except to the extent
that such changes are made  applicable  to all Holding  Company and  Institution
employees eligible to participate in such plans, arrangements and perquisites on
a  non-discriminatory  basis.  Without  limiting the generality of the foregoing
provisions of this Subsection  3(b),  Executive shall be entitled to participate
in or receive benefits

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under all plans  relating  to stock  options,  restricted  stock  awards,  stock
purchases,  pension, thrift, supplemental retirement,  profit-sharing,  employee
stock  ownership,  group life  insurance,  medical and other  health and welfare
coverage,  education,  cash or  stock  bonuses  that are now or  hereafter  made
available by the Holding Company or its  Subsidiaries  to its senior  executives
and key  management  employees,  subject to and on a basis  consistent  with the
terms,  conditions and overall  administration  of such plans and  arrangements.
Executive shall be entitled to incentive compensation and bonuses as provided in
any plan of the  Holding  Company and its  Subsidiaries  in which  Executive  is
eligible  to  participate.  Nothing  paid to  Executive  under  any such plan or
arrangement  will be  deemed  to be in  lieu  of  other  compensation  to  which
Executive is entitled under this Agreement.

     (c) The Holding Company shall pay or reimburse Executive for all reasonable
and  documented  expenses  which  have  been  authorized  by the Board and which
Executive  incurred in the performance of his obligations  under this Agreement.
Further,  the Holding Company may provide such  additional  compensation in such
form and such amounts as the Board may from time to time determine.

4.   PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

     (a) Upon the  occurrence  of an Event of  Termination  (as  defined in this
Agreement)  during  Executive's  term of employment  under this  Agreement,  the
provisions of this Section 4 shall apply. As used in this  Agreement,  an "Event
of Termination" shall mean and include any one or more of the following: (i) the
termination by the Holding Company of Executive's full-time employment hereunder
for any reason  other  than  termination  governed  by  Subsection  5(a) of this
Agreement,  or for  Cause,  as  defined  in  Section 7 of this  Agreement;  (ii)
Executive's resignation from the Holding Company's employ, upon, any (A) failure
to elect or reelect  or to appoint or  reappoint  Executive  as  Executive  Vice
President,  Treasurer  and  Chief  Financial  Officer,  unless  consented  to by
Executive,   (B)  a  material  change  in  Executive's   function,   duties,  or
responsibilities  with the Holding  Company or its  Subsidiaries,  which  change
would  cause  Executive's  position  to  become  one of  lesser  responsibility,
importance,  or scope from the  position  and  attributes  thereof  described in
Section 1 of this Agreement,  unless consented to by Executive, (C) a relocation
of  Executive's  principal  place of  employment  by more than 25 miles from its
location  at the  effective  date  of this  Agreement,  unless  consented  to by
Executive, (D) a material reduction in the benefits and perquisites to Executive
from those being  provided as of the effective  date of this  Agreement,  unless
consented to by  Executive,  (E) a  liquidation  or  dissolution  of the Holding
Company or the  Institution,  or (F)  breach of this  Agreement  by the  Holding
Company.  Upon the  occurrence of any event  described in clauses (A), (B), (C),
(D), (E) or (F),  above,  the Holding Company shall have the opportunity to cure
the breach within thirty (30) days after receiving notice from Executive that an
Event of  Termination  had  occurred.  If the Holding  Company does not cure the
event or  circumstance  constituting  an Event of  Termination  within  the time
period  prescribed in this  Subsection  4(a),  Executive shall have the right to
elect to terminate his employment  under this Agreement by resignation  upon not
less than sixty (60) days prior written notice thereafter.

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     (b)  Upon  the  occurrence  of an  Event  of  Termination,  on the  Date of
Termination,  as defined in Section 8 of this  Agreement,  the  Holding  Company
shall be obligated to pay Executive,  or, in the event of his subsequent  death,
his beneficiary or beneficiaries, or his estate, as the case may be, a sum equal
to the sum of: (i) the Base Salary and  bonuses in  accordance  with  Subsection
3(a) of this  Agreement that would have been paid to Executive for the remaining
term of this  Agreement had the Event of  Termination  not occurred and (ii) all
benefits,  including health insurance in accordance with Subsection 3(b) of this
Agreement  that would have been provided to Executive for the remaining  term of
this Agreement had an Event of Termination not occurred; provided, however, that
any payments  pursuant to this  Subsection  4(b) and Subsection 4(c) below shall
not,  in the  aggregate,  exceed  three (3)  times  Executive's  average  annual
compensation  for the five (5) most recent taxable years that Executive has been
employed by the Holding Company or such lesser number of years in the event that
Executive shall have been employed by the Holding Company for less than five (5)
years.  At the election of Executive,  which  election is to be made prior to an
Event of  Termination,  such payments  shall be made in a lump sum. In the event
that no election is made,  payment to Executive  will be made on a monthly basis
in approximately  equal installments during the remaining term of the Agreement.
In the event the  Institution  is not in  compliance  with its  minimum  capital
requirements  or if such payments  pursuant to this  Subsection 4(b) would cause
the  Institution's  capital to be reduced below its minimum  regulatory  capital
requirements,  such  payments  shall be deferred  until such time as the Bank or
successor thereto is in capital compliance.  Payments made under this Subsection
4(b)  shall not be  reduced  in the event  Executive  obtains  other  employment
following termination of employment.

     (c) Upon the  occurrence of an Event of  Termination,  the Holding  Company
will  cause to be  continued  life,  medical,  dental  and  disability  coverage
substantially  equivalent to the coverage  maintained by the Holding  Company or
its  Subsidiaries  for Executive  prior to his termination at no premium cost to
Executive.  Such coverage  shall cease upon the expiration of the remaining term
of this Agreement.

     (d) Executive shall not be entitled to receive  benefits under  Subsections
4(b) or 4(c) of this Agreement in the event Executive is employed by the Bank or
another affiliate of the Holding Company following his termination of employment
from the Holding Company as a result of an Event of Termination.

5.   CHANGE IN CONTROL.

     (a) For  purposes of this  Agreement,  a "Change in Control" of the Bank or
Holding Company shall mean an event of a nature that: (i) results in a Change in
Control  of the Bank or the  Holding  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 in 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  Holding  Company
representing  25% or more of the  Bank's or the  Holding  Company's  outstanding
voting securities or

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right to acquire such  securities  except for any voting  securities of the Bank
purchased  by the Holding  Company and any voting  securities  purchased  by any
employee  benefit  plan  of the  Holding  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-fourths  (3/4) of the directors  comprising
the Incumbent Board, or whose  nomination for election by the Holding  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 Holding Company or similar  transaction is consummated
in which the Bank or Holding Company is not the resulting entity.

     (b) If a Change in Control has occurred pursuant to Subsection 5(a) of this
Agreement  or the Board has  determined  that a Change in Control has  occurred,
Executive shall be entitled to the benefits  provided in paragraphs (c) and (d),
of this Section 5 upon his  subsequent  termination  of  employment  at any time
during the twelve (12) month period  following the date of the Change in Control
due to (i) Executive's  dismissal,  or (ii)  Executive's  voluntary  resignation
following  any  demotion,  loss of title,  office or  significant  authority  or
responsibility, reduction in the annual compensation or reduction in benefits or
relocation of his  principal  place of employment by more than 25 miles from its
location immediately prior to the Change in Control,  unless such termination is
because of his death or termination for Cause.

     (c) Upon Executive's entitlement to benefits pursuant to Subsection 5(b) of
this Agreement,  the Holding Company shall pay Executive, or in the event of his
subsequent death, his beneficiary or  beneficiaries,  or his estate, as the case
may be, as  severance  pay or  liquidated  damages,  or both, a sum equal to the
greater of: (i) the Base Salary and bonuses in accordance  with  Subsection 3(a)
of this  Agreement that would have been paid to Executive for the remaining term
of this  Agreement had the event  described in Subsection  (b) of this Section 5
not occurred and all benefits,  including health  insurance,  in accordance with
Subsection  3(b) that would have been  provided to Executive  for the  remaining
term of this Agreement had the event described in Subsection (b) of this Section
5 not occurred;  or (ii) three (3) times Executive's Average Annual Compensation
(as defined herein) for the five (5) preceding  taxable years that Executive has
been employed by the Holding  Company or its  Subsidiaries or such lesser number
of years in the event  Executive  shall  have  been  employed  with the  Holding
Company or its Subsidiaries less than five (5) years;  provided,  however,  that
any  payments  pursuant to this  Section 5 shall not, in the  aggregate,  exceed
three (3) times  Executive's  Average Annual  Compensation for the five (5) most
recent taxable years that Executive has been employed by the Holding  Company or
such lesser number of years in the event that Executive shall have been employed
by the Holding Company for less than five (5) years. Average Annual Compensation
shall  include  all  taxable   income  paid  by  the  Holding   Company  or  its
Subsidiaries,  including  but not  limited  to,  Base  Salary,  commissions  and
bonuses,  as well as  contributions  on behalf of  Executive  to any pension and
profit sharing plan, severance payments,  directors or committee fees and fringe
benefits paid or to be paid to Executive  during such years.  At the election of
Executive, which election is to be made prior to a Change in Control, such

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payment  shall be made in a lump sum.  In the event  that no  election  is made,
payment to  Executive  will be made on a monthly  basis in  approximately  equal
installments  during the remaining term of the Agreement.  In the event the Bank
is not in compliance with its minimum  capital  requirements or if such payments
pursuant to this  Subsection  5(b) would cause the Bank's  capital to be reduced
below its  minimum  regulatory  capital  requirements,  such  payments  shall be
deferred  until  such  time  as the  Bank or  successor  thereto  is in  capital
compliance.  Payments  under  this  Section 5 shall not be  reduced in the event
Executive obtains other employment following termination of employment.

     (d) Upon Executive's entitlement to benefits pursuant to Subsection 5(b) of
this Agreement, the Company will cause to be continued life, medical, dental and
disability coverage  substantially  equivalent to the coverage maintained by the
Institution  for  Executive  at no  premium  cost  to  Executive  prior  to  his
severance.  Such coverage and payments  shall cease upon the earlier of: (i) the
expiration of thirty-six  (36) months  following the Change in Control;  or (ii)
employment by another employer who provides substantially similar life, medical,
dental and disability coverage.

6.   CHANGE IN CONTROL RELATED PROVISIONS.

     Notwithstanding the provisions of Section 5 of this Agreement,  in no event
shall the  aggregate  payments or  benefits to be made or afforded to  Executive
under  Section  5 or  otherwise  paid or  provided  by the  Holding  Company  in
connection with a Change in Control (the "Termination  Benefits")  constitute an
"excess  parachute  payment"  under  Section  280G of the Code or any  successor
thereto,  and in order to avoid such a result, the Termination  Benefits will be
reduced, if necessary, to an amount (the "Non-Triggering  Amount"), the value of
which is one  dollar  ($1.00)  less  than an  amount  equal to three  (3)  times
Executive's  "base amount," as determined in accordance  with said Section 280G.
The  allocation  of any  reduction  required  with  respect  to the  Termination
Benefits shall be determined by Executive.

7.   TERMINATION FOR CAUSE.

     The  term  "Termination  for  Cause"  shall  mean  termination  because  of
Executive's  personal  dishonesty,  willful misconduct,  any breach of fiduciary
duty involving  personal profit,  intentional  failure to perform stated duties,
willful violation of any law, rule, regulation (other than traffic violations or
similar  offenses),  final  cease and  desist  order or  material  breach of any
provision of this Agreement.  Notwithstanding the foregoing, Executive shall not
be deemed to have been  terminated  for Cause  unless and until there shall have
been  delivered to him a Notice of  Termination  which shall include a copy of a
resolution duly adopted by the affirmative  vote of not less than  three-fourths
(3/4) of the members of the Board at a meeting of the Board  called and held for
that purpose (after  reasonable  notice to Executive and an opportunity for him,
together with counsel,  to be heard before the Board),  finding that in the good
faith  opinion  of  the  Board,  Executive  was  guilty  of  conduct  justifying
Termination  for  Cause  and  specifying  the  particulars  thereof  in  detail.
Executive shall not have the right to receive compensation or other benefits for
any period after Termination for Cause.  During the period beginning on the date
of the Notice of  Termination  for Cause pursuant to Section 8 of this Agreement
through the Date of  Termination,  stock options  granted to Executive under any
stock option plan shall not be  exercisable  nor shall any unvested stock awards
granted to Executive

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under any stock  benefit  plan of the  Institution,  the Holding  Company or any
subsidiary or affiliate  thereof,  vest. At the Date of Termination,  such stock
options and any such unvested  stock awards shall become null and void and shall
not be exercisable  by or delivered to Executive at any time  subsequent to such
Termination for Cause.

8.   NOTICE.

     (a) Any purported  termination by the Holding Company or by Executive shall
be communicated by Notice of Termination to the other party hereto. For purposes
of this Agreement,  a "Notice of Termination"  shall mean a written notice which
shall indicate the specific termination  provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances  claimed to
provide a basis for termination of Executive's employment under the provision so
indicated.

     (b) "Date of  Termination"  shall mean the date  specified in the Notice of
Termination  (which,  in the case of a Termination for Cause,  shall not be less
than thirty (30) days from the date such Notice of Termination is given).

     (c) If, within thirty (30) days after any Notice of  Termination  is given,
the party  receiving such Notice of Termination  notifies the other party that a
dispute  exists  concerning  the  termination,  except upon the  occurrence of a
Change in Control and voluntary  termination by Executive in which case the Date
of  Termination  shall  be  the  date  specified  in the  Notice,  the  Date  of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties,  by a binding  arbitration award, or
by a final judgment,  order or decree of a court of competent  jurisdiction (the
time for appeal  therefrom  having expired and no appeal having been  perfected)
and provided further that the Date of Termination  shall be extended by a notice
of dispute  only if such notice is given in good faith and the party giving such
notice pursues the resolution of such dispute with reasonable diligence.  Except
as otherwise  provided by this  Agreement,  following  Executive's  receipt of a
Notice  of  Termination,  his  employment  with  the  Holding  Company  shall be
terminated  and his rights to any and all benefits  under this  Agreement  shall
cease.

9.   POST-TERMINATION OBLIGATIONS.

     All  payments  and  benefits to  Executive  under this  Agreement  shall be
subject  to  Executive's  compliance  with this  Section 9 for one (1) full year
after  the  earlier  of the  expiration  of this  Agreement  or  termination  of
Executive's   employment  with  the  Holding  Company.   Executive  shall,  upon
reasonable  notice,  furnish  such  information  and  assistance  to the Holding
Company as may reasonably be required by the Holding  Company in connection with
any litigation in which it or any of its  subsidiaries  or affiliates is, or may
become, a party.

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10.  NON-COMPETITION AND NON-DISCLOSURE.

     (a) Upon any termination of Executive's  employment  hereunder  pursuant to
Section 4 of this  Agreement,  Executive  agrees not to compete with the Holding
Company  or its  Subsidiaries  for a  period  of one  (1)  year  following  such
termination in any city,  town or county in which  Executive's  normal  business
office is located  and the  Holding  Company or any of its  Subsidiaries  has an
office or has filed an  application  for  regulatory  approval to  establish  an
office,  determined  as of the  effective  date of such  termination,  except as
agreed to pursuant to a resolution duly adopted by the Board.  Executive  agrees
that during such period and within said cities,  towns and  counties,  Executive
shall not work for or advise,  consult or  otherwise  serve  with,  directly  or
indirectly,  any entity whose business  materially competes with the depository,
lending or other business activities of the Holding Company or its Subsidiaries.
The  parties  hereto,  recognizing  that  irreparable  injury will result to the
Holding Company or its  Subsidiaries,  its business and property in the event of
Executive's  breach of this Subsection 10(a) agree that in the event of any such
breach by Executive, the Holding Company or its Subsidiaries,  will be entitled,
in addition to any other  remedies and damages  available,  to an  injunction to
restrain  the  violation  hereof by  Executive,  Executive's  partners,  agents,
servants,  employees  and all  persons  acting  for or under  the  direction  of
Executive.  Executive represents and admits that in the event of the termination
of  his  employment  pursuant  to  Section  7  of  this  Agreement,  Executive's
experience and capabilities  are such that Executive can obtain  employment in a
business  engaged in other lines  and/or of a different  nature than the Holding
Company  or its  Subsidiaries,  and that the  enforcement  of a remedy by way of
injunction will not prevent Executive from earning a livelihood.  Nothing herein
will be construed as prohibiting  the Holding Company or its  Subsidiaries  from
pursuing any other remedies available to the Holding Company or its Subsidiaries
for such breach or  threatened  breach,  including  the recovery of damages from
Executive.

     (b)  Executive  recognizes  and  acknowledges  that  the  knowledge  of the
business activities and plans for business activities of the Holding Company and
its  Subsidiaries as it may exist from time to time, is a valuable,  special and
unique  asset of the  business  of the  Holding  Company  and its  Subsidiaries.
Executive  will not,  during or after the term of his  employment,  disclose any
knowledge of the past, present, planned or considered business activities of the
Holding Company and its Subsidiaries thereof to any person,  firm,  corporation,
or other entity for any reason or purpose whatsoever unless expressly authorized
by the Board of Directors  or required by law.  Notwithstanding  the  foregoing,
Executive  may disclose  any  knowledge of banking,  financial  and/or  economic
principles,  concepts or ideas which are not solely and exclusively derived from
the business  plans and  activities  of the Holding  Company.  In the event of a
breach or threatened  breach by Executive of the  provisions of this Section 10,
the Holding Company will be entitled to an injunction restraining Executive from
disclosing,  in whole or in part, the knowledge of the past, present, planned or
considered  business  activities of the Holding  Company or its  Subsidiaries or
from rendering any services to any person,  firm,  corporation,  other entity to
whom such knowledge, in whole or in part, has been disclosed or is threatened to
be  disclosed.  Nothing  herein will be  construed  as  prohibiting  the Holding
Company from pursuing any other  remedies  available to the Holding  Company for
such  breach or  threatened  breach,  including  the  recovery  of damages  from
Executive.

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11.  SOURCE OF PAYMENTS.

     (a) All payments provided in this Agreement shall be timely paid in cash or
check from the general funds of the Holding Company subject to Subsection  11(b)
of this Agreement.

     (b)  Notwithstanding  any provision  herein to the contrary,  to the extent
that  payments  and  benefits,  as  provided by this  Agreement,  are paid to or
received  by  Executive  under the  Employment  Agreement  dated June 29,  2000,
between Executive and the Institution,  such compensation  payments and benefits
paid by the Institution will be subtracted from any amount due simultaneously to
Executive under similar provisions of this Agreement.  Payments pursuant to this
Agreement and the Institution  Agreement shall be allocated in proportion to the
level of activity  and the time  expended on such  activities  by  Executive  as
determined by the Holding Company and the Institution on a quarterly basis.

12.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS.

     This Agreement contains the entire understanding between the parties hereto
and supersedes any prior employment agreement between the Holding Company or any
predecessor  of the Holding  Company and  Executive,  except that this Agreement
shall not affect or operate to reduce  any  benefit or  compensation  inuring to
Executive of a kind elsewhere provided.  No provision of this Agreement shall be
interpreted to mean that  Executive is subject to receiving  fewer benefits than
those available to him without reference to this Agreement.

13.  NO ATTACHMENT.

     (a) Except as  required  by law,  no right to receive  payments  under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance,  charge,  pledge, or  hypothecation,  or to execution,
attachment,  levy, or similar process or assignment by operation of law, and any
attempt,  voluntary  or  involuntary,  to affect any such action  shall be null,
void, and of no effect.

     (b) This  Agreement  shall be binding  upon,  and inure to the  benefit of,
Executive and the Holding Company and their respective successors and assigns.

14.  MODIFICATION AND WAIVER.

     (a) This  Agreement may not be modified or amended  except by an instrument
in writing signed by the parties hereto.

     (b) No term or  condition  of this  Agreement  shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver or estoppel.  No such written waiver shall be deemed a continuing  waiver
unless specifically stated therein, and each such waiver shall operate

                                        9

<PAGE>

only as to the  specific  term or  condition  waived and shall not  constitute a
waiver of such term or  condition  for the  future as to any act other than that
specifically waived.

15.  SEVERABILITY.

     If, for any reason,  any  provision of this  Agreement,  or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this  Agreement or any part of such  provision not held so invalid,  and each
such other  provision and part thereof shall to the full extent  consistent with
law continue in full force and effect.

16.  HEADINGS FOR REFERENCE ONLY.

     The headings of sections  and  paragraphs  herein are  included  solely for
convenience of reference and shall not control the meaning or  interpretation of
any of the provisions of this Agreement.

17.  GOVERNING LAW.

     This  Agreement  shall be  governed  by the laws of the  State of  Delaware
regardless of the laws that might otherwise govern under  applicable  principles
of conflicts of law.

18.  ARBITRATION.

     Any  dispute  or  controversy  arising  under or in  connection  with  this
Agreement shall be settled exclusively by arbitration,  conducted before a panel
of three  arbitrators  sitting in a location  selected by Executive within fifty
(50) miles from the location of the Institution, in accordance with the rules of
the American Arbitration  Association then in effect. Judgment may be entered on
the arbitrator's award in any court having jurisdiction; provided, however, that
Executive shall be entitled to seek specific performance of his right to be paid
until the Date of Termination  during the pendency of any dispute or controversy
arising under or in connection with this Agreement.

     In the event any dispute or controversy arising under or in connection with
Executive's termination is resolved in favor of Executive,  whether by judgment,
arbitration  or  settlement,  Executive  shall be entitled to the payment of all
back-pay,  including  salary,  bonuses and any other cash  compensation,  fringe
benefits and any compensation and benefits due Executive under this Agreement.

19.  PAYMENT OF LEGAL FEES.

     All  reasonable  legal fees paid or incurred by  Executive  pursuant to any
dispute or question of  interpretation  relating to this Agreement shall be paid
or reimbursed by the Holding Company,  if Executive is successful  pursuant to a
legal judgment, arbitration or settlement.

                                       10

<PAGE>

20.  INDEMNIFICATION.

     (a) The Holding  Company  shall  provide  Executive  (including  his heirs,
executors and  administrators)  with coverage  under a standard  directors'  and
officers'  liability  insurance  policy  at  its  expense  and  shall  indemnify
Executive (and his heirs,  executors and  administrators)  to the fullest extent
permitted  under  Delaware law against all expenses and  liabilities  reasonably
incurred  by him in  connection  with  or  arising  out of any  action,  suit or
proceeding  in which he may be  involved by reason of his having been a director
or officer of the Holding Company  (whether or not he continues to be a director
or officer at the time of incurring such expenses or liabilities), such expenses
and liabilities to include,  but not be limited to,  judgments,  court costs and
attorneys' fees and the cost of reasonable settlements.

     (b) Any payments made to Executive  pursuant to this Section are subject to
and conditioned upon compliance with 12 U.S.C.ss.1828(k)  and 12 C.F.R. Part 359
and any rules or regulations promulgated thereunder.

21.  SUCCESSOR TO THE HOLDING COMPANY.

     The Holding Company shall require any successor or assignee, whether direct
or  indirect,  by  purchase,  merger,  consolidation  or  otherwise,  to  all or
substantially  all the  business  or assets of the  Institution  or the  Holding
Company,  expressly  and  unconditionally  to assume  and agree to  perform  the
Holding Company's  obligations  under this Agreement,  in the same manner and to
the same extent that the Holding Company would be required to perform if no such
succession or assignment had taken place.

22.  REQUIRED REGULATORY PROVISIONS.

In the event any of the foregoing  provisions of this Section 22 are in conflict
with the terms of this Agreement, this Section 22 shall prevail.

     (a) The Bank may  terminate  Executive's  employment  at any time,  but any
termination by the Bank, other than  Termination for Cause,  shall not prejudice
Executive's  right to  compensation  or other  benefits  under  this  Agreement.
Executive shall not have the right to receive compensation or other benefits for
any  period  after  Termination  for  Cause  as  defined  in  Section  7 of this
Agreement.

     (b) If Executive is suspended  from office  and/or  temporarily  prohibited
from participating in the conduct of the Bank's affairs by a notice served under
Section  8(e)(3) or 8(g)(1) of the  Federal  Deposit  Insurance  Act,  12 U.S.C.
ss.1818(e)(3) or (g)(1); the Bank 's and the Holding Company's obligations under
this  contract  shall be suspended as of the date of service,  unless  stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Bank or
the Holding Company may in its discretion:  (i) pay Executive all or part of the
compensation withheld while their contract obligations were suspended;  and (ii)
reinstate (in whole or in part) any of the obligations which were suspended.

                                       11

<PAGE>

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

     (d) If the Bank is in default as defined in Section  3(x)(1) of the Federal
Deposit  Insurance  Act, 12 U.S.C.  ss.1813(x)(1)  all  obligations  of the Bank
and/or the Holding Company under this contract shall terminate as of the date of
default,  but  this  paragraph  shall  not  affect  any  vested  rights  of  the
contracting parties.

     (e) All  obligations  of the Bank  and/or the  Holding  Company  under this
contract shall be terminated,  except to the extent determined that continuation
of the contract is necessary for the continued operation of the institution: (i)
by the Director of the OTS (or his designee),  the FDIC or the Resolution  Trust
Corporation, at the time the FDIC enters into an agreement to provide assistance
to or on behalf of the Bank under the  authority  contained in Section  13(c) of
the Federal Deposit Insurance Act, 12 U.S.C. ss.1823(c); or (ii) by the Director
of the OTS (or his designee) at the time the Director (or his designee) approves
a supervisory  merger to resolve  problems related to the operations of the Bank
or when the Bank is  determined  by the  Director  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.

     (f)  Any  payments  made  to  Executive  pursuant  to  this  Agreement,  or
otherwise,   are   subject  to  and   conditioned   upon   compliance   with  12
U.S.C.ss.1828(k)   and  12  C.F.R.ss.545.121   and  any  rules  and  regulations
promulgated thereunder.

     (g) Any payments  made under this  Agreement  shall not, in the  aggregate,
exceed three (3) times  Executive's  Average Annual  Compensation (as defined in
this  Agreement)  for the five (5) most recent  taxable years that Executive has
been employed by the Holding Company or such lesser number of years in the event
that  Executive  shall have been  employed by the Holding  Company for less than
five (5) years.

                                       12

<PAGE>

                                   SIGNATURES

     IN WITNESS WHEREOF, DutchFork Bancshares, Inc. has caused this Agreement to
be executed and its seal to be affixed  hereunto by its duly authorized  officer
and its directors,  and Executive has signed this  Agreement,  on the 5th day of
July, 2000.

ATTEST:                           DUTCHFORK BANCSHARES, INC.

 /s/ Brenda S. Smith              By:   /s/ J. Thomas Johnson
----------------------------          ------------------------------------------
                                      For the Entire Board of Directors

              [SEAL]

WITNESS:                                 EXECUTIVE

 /s/ Brenda S. Smith                  By:  /s/ Steve P. Sligh
----------------------------             ---------------------------------------
                                         Steve P. Sligh

                                       13Exhibit 10.5

                          NEWBERRY FEDERAL SAVINGS BANK
                      EMPLOYEE SEVERANCE COMPENSATION PLAN

                                  PLAN PURPOSE

     The  purpose of this  Newberry  Federal  Savings  Bank  Employee  Severance
Compensation  Plan is to assure the  services  of  employees  of the Bank in the
event of a Change in Control.  The benefits  contemplated  by the Plan recognize
the value to the Bank of the services and  contributions of the employees of the
Bank and the effect upon the Bank resulting from the  uncertainties of continued
employment,  reduced employee benefits,  management changes and relocations that
may arise in the event of a Change in Control.  The Board believes that the Plan
will  also  aid the  Bank in  attracting  and  retaining  the  highly  qualified
individuals  who are  essential to its success and that the Plan's  assurance of
fair treatment of the Bank's  employees will reduce the  distractions  and other
adverse effects on employees' performance in the event of a Change in Control.

                                    ARTICLE I
                              ESTABLISHMENT OF PLAN

     1.1  Establishment of Plan
          ---------------------

     As of the  Effective  Date of the Plan as defined  herein,  the Bank hereby
establishes an employee severance compensation plan to be known as the "Newberry
Federal Savings Bank Employee Severance  Compensation Plan." The purposes of the
Plan are as set forth above.

     1.2  Application of Plan
          -------------------

     The benefits  provided by this Plan shall be available to all  employees of
the Bank, who, at or after the Effective Date, meet the eligibility requirements
of Article III,  except for those officers of the Bank who have entered into, or
who enter into in the future,  and continue to be subject to, an  employment  or
change in control agreement with the Employer.

     1.3  Contractual Right to Benefits
          -----------------------------

     This plan establishes and vests in each Participant a contractual  right to
the benefits to which each  Participant is entitled  hereunder in the event of a
Change in Control,  enforceable  by the  Participant  against the Employer,  the
Bank,  or both.  The Plan does not  provide,  and  should  not be  construed  as
providing,  benefits of any kind to any employee except in the event of a Change
in Control and, in the event of a Change in Control,  only upon the  involuntary
or voluntary termination of an employee in the manner contemplated herein.

<PAGE>

                                   ARTICLE II
                          DEFINITIONS AND CONSTRUCTION

     2.1  Definitions
          -----------

     Whenever used in the Plan, the following  terms shall have the meanings set
forth below.

     "Annual  Compensation"  of a  Participant  means and includes all wages and
salary paid (including  accrued amounts) by an Employer as consideration for the
Participant's  service during the 12-month  period ending on the last day of the
month preceding the date of a Participant's  termination pursuant to Section 4.2
of this Plan.

     "Bank" means Newberry Federal Savings Bank or any successor as provided for
in Article VII hereof.

     "Board" means the Board of Directors of the Bank.

     "Change in Control" of the Holding  Company or the Bank shall mean an event
of a nature that:  (i) results in a Change in Control of the Bank or the Holding
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 in 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 Holding  Company  representing  25% or more of the Bank's or the
Holding  Company's  outstanding  voting  securities  or  right to  acquire  such
securities except for any voting securities of the Bank purchased by the Holding
Company and any voting securities  purchased by any employee benefit plan of the
Holding 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 Holding 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
Holding  Company  or similar  transaction  is  consummated  in which the Bank or
Holding Company is not the resulting entity.

     "Disability" means the permanent and total inability by reason of mental or
physical  infirmity,  or both,  of an employee  to perform the work  customarily
assigned  to him.  Additionally,  a medical  doctor  selected or approved by the
Board must advise the Board that it is either not  possible to  determine  if or
when such  Disability  will  terminate  or that it  appears  probable  that such
Disability will be permanent during the remainder of said employee's lifetime.

<PAGE>

     "Effective  Date"  means the date the Plan is  approved by the Board of the
Bank,  or such  other  date  as the  Board  shall  designate  in its  resolution
approving the Plan.

     "Employer"  means (i) the Bank or (ii) a subsidiary of the Bank or a parent
company of the Bank which has adopted the plan pursuant to Article VI hereof.

     "Expiration  Date"  means a date ten (10)  years  from the  Effective  Date
unless  earlier  terminated  pursuant  to Section  8.2 of this Plan or  extended
pursuant to Section 8.1 of this Plan.

     "Holding Company" means DutchFork Bancshares, Inc., a Delaware corporation,
the holding company of the Bank.

     "Payment"  means the  payment of  severance  compensation  as  provided  in
Article IV hereof.

     "Participant"  means an employee of an Employer  who meets the  eligibility
requirements of Article III.

     "Plan"  means  this  Newberry  Federal  Savings  Bank  Employee   Severance
Compensation Plan.

     "Termination for Cause" means termination because of Participant's personal
dishonesty,  incompetence,  willful  misconduct,  any 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 other
similar offenses) or any final cease-and-desist order.

     2.2  Applicable Law
          --------------

     The laws of the State of South  Carolina  shall be  controlling  law in all
matters relating to the Plan to the extent not preempted by federal law.

     2.3  Severability
          ------------

     If a  provision  of  this  Plan  shall  be held  illegal  or  invalid,  the
illegality  or invalidity  shall not affect the remaining  parts of the Plan and
the Plan shall be construed and enforced as if the illegal or invalid  provision
had not been included.

<PAGE>

                                   ARTICLE III
                                   ELIGIBILITY

     3.1  Participation
          -------------

     The term "Participant"  shall include all employees of an Employer who have
completed  at least one (1) year of service with the Employer at the time of any
termination  pursuant to Section 4.2 herein.  For purposes of this Plan, a "year
of service"  shall mean a twelve (12)  consecutive  month period during which an
employee  was  credited  with at least 500 actual hours of service and "years of
service"   shall  be  determined   without  regard  to  any  break  in  service.
Notwithstanding the foregoing, an employee who has entered into and continues to
be covered by an individual  employment  contract with an Employer  shall not be
entitled to participate in this Plan.

     3.2  Duration of Participation
          -------------------------

     A  Participant  shall  cease  to be a  Participant  in the  Plan  when  the
Participant ceases to be an employee of an Employer,  unless such Participant is
entitled to a Payment as provided in the Plan. A Participant entitled to receipt
of a Payment  shall remain a  Participant  in this Plan until the full amount of
such Payment has been paid to the Participant.

                                   ARTICLE IV
                                    PAYMENTS

     4.1  Right to Payment
          ----------------

     A  Participant  shall be  entitled  to receive  from his or her  Employer a
Payment in the amount  provided in Section 4.3 if a Change in Control occurs and
if, within one (1) year thereafter,  the Participant's employment by an Employer
shall terminate for any reason specified in Section 4.2. A Participant shall not
be entitled  to a Payment if  termination  occurs by reason of death,  voluntary
retirement,  voluntary  termination  other  than for the  reasons  specified  in
Section 4.2, Disability or Termination for Cause.

     4.2  Reasons for Termination
          -----------------------

     Following a Change in Control, a Participant shall be entitled to a Payment
in  accordance  with  Section 4.3 if  employment  by an Employer is  terminated,
voluntarily or involuntarily, for any one or more of the following reasons:

     (a)  The  Employer  reduces  the  Participant's  base  salary  or  rate  of
compensation as in effect immediately prior to the Change in Control,  or as the
same may have been increased thereafter.

<PAGE>

     (b) The  Employer  materially  changes  Participant's  function,  duties or
responsibilities  which  would  cause the  Participant's  position  to be one of
lesser  responsibility,  importance or scope with the Employer than  immediately
prior to the Change in Control.

     (c) The  Employer  requires the  Participant  to change the location of the
Participant's  job or  office,  so that  such  Participant  will be  based  at a
location more than thirty-five (35) miles from the location of the Participant's
job or office  immediately prior to the Change in Control provided that such new
location is not closer to Participant's home.

     (d) The Employer materially reduces the benefits and perquisites  available
to the  Participant  immediately  prior  to the  Change  in  Control;  provided,
however,  that a  material  reduction  in  benefits  and  perquisites  generally
provided to all  employees of the Bank on a  non-discriminatory  basis shall not
trigger a Payment pursuant to this Plan.

     (e) A successor to the Employer  fails or refuses to assume the  Employer's
obligations under this Plan, as required by Article VII.

     (f) The  Employer,  or any  successor to the  Employer,  breaches any other
provisions of this Plan.

     (g) The Employer  terminates  the employment of a Participant at or after a
Change in Control other than Termination for Cause.

     4.3  Amount of Payment
          -----------------

     (a) Each  Participant  entitled to a Payment  under this Plan shall receive
from the Bank, a lump sum cash payment equal to one-twelfth (1/12) of his Annual
Compensation  for each year of  service  up to a maximum  of 100% of his  Annual
Compensation.

     (b)  Notwithstanding the provisions of paragraph (a) above, if a Payment to
a Participant  who is a  "Disqualified  Individual"  shall be in an amount which
includes  an  "Excess   Parachute   Payment,"  the  Payment  hereunder  to  that
Participant  shall be reduced to the  maximum  amount  which does not include an
Excess  Parachute  Payment.  The terms  "Disqualified  Individual"  and  "Excess
Parachute  Payment"  shall have the same  meanings as defined in Section 280G of
the  Internal  Revenue  Code of 1986,  as amended,  or any  successor  provision
thereto. The Participant shall not be required to mitigate damages on the amount
of the Payment by seeking other employment or otherwise, nor shall the amount of
such  Payment be  reduced by any  compensation  earned by the  Participant  as a
result of employment after termination of employment hereunder.

     4.4  Time of Payment
          ---------------

     The  Payment  to  which a  Participant  is  entitled  shall  be paid to the
Participant  by the Employer or the  successor to the  Employer,  in cash and in
full,  not later than thirty (30)  business  days after the  termination  of the
Participant's  employment.  If any Participant  should die after  termination of
employment but before all amounts have been paid, such unpaid amounts shall be

<PAGE>

paid  to the  Participant's  named  beneficiary,  if  living,  otherwise  to the
personal  representative  on behalf of or for the  benefit of the  Participant's
estate.

     4.5  Suspension of Payment
          ---------------------

     Notwithstanding  the  foregoing,  no payments or portions  thereof shall be
made under  this Plan,  if such  payment  or  portion  would  result in the Bank
failing to meet its minimum  regulatory  capital  requirements as required by 12
C.F.R.  ss.567.2.  Any payments or portions  thereof not paid shall be suspended
until  such  time as their  payment  would not  result in a failure  to meet the
Bank's minimum regulatory capital requirements.  Any portion of benefit payments
which have not been suspended will be paid on an equitable basis, pro rata based
upon amounts due each Participant, among all eligible Participants.

                                    ARTICLE V
                     OTHER RIGHTS AND BENEFITS NOT AFFECTED

     5.1  Other Benefits
          --------------

     Neither the provisions of this Plan nor the Payment  provided for hereunder
shall  reduce  any  amounts  otherwise  payable,  or in  any  way  diminish  the
Participant's  rights as an employee of an  Employer,  whether  existing  now or
hereafter, under any benefit, incentive,  retirement, stock option, stock bonus,
stock ownership or any employment agreement or other plan or arrangement.

     5.2  Employment Status
          -----------------

     This Plan does not  constitute  a contract of  employment  or impose on the
Participant's Employer any obligation to retain the Participant, to maintain the
status of the  Participant's  employment,  or to change the Employer's  policies
regarding termination of employment.

                                   ARTICLE VI
                             PARTICIPATING EMPLOYERS

     6.1 Upon approval by the Board of the Bank, this Plan may be adopted by any
subsidiary  of the Bank or by the  Holding  Company.  Upon  such  adoption,  the
subsidiary  or the Holding  Company  shall become an Employer  hereunder and the
provisions  of the Plan  shall  be fully  applicable  to the  employees  of that
subsidiary or the Holding Company.  The term "subsidiary"  means any corporation
in which the Bank, directly or indirectly,  holds a majority of the voting power
of its outstanding shares of capital stock.

<PAGE>

                                   ARTICLE VII
                              SUCCESSOR TO THE BANK

     7.1 The Bank shall  require any  successor or assignee,  whether  direct or
indirect,  by  purchase,   merger,   consolidation  or  otherwise,   to  all  or
substantially   all  the  business  or  assets  of  the  Bank,   expressly   and
unconditionally to assume and agree to perform the Bank's obligations under this
plan,  in the same manner and to the same extent that the Bank would be required
to perform if no such succession or assignment had taken place.

                                  ARTICLE VIII
                       DURATION, AMENDMENT AND TERMINATION

     8.1  Duration
          --------

     If a Change in Control has not  occurred,  this Plan shall expire as of the
Expiration Date,  unless sooner terminated as provided in Section 8.2, or unless
extended for an additional period or periods by resolution  adopted by the Board
of the Bank.

     Notwithstanding  the  foregoing,  if a Change in Control  occurs  this Plan
shall continue in full force and effect, and shall not terminate or expire until
such date as all  Participants  who become entitled to Payments  hereunder shall
have received such Payments in full.

     8.2  Amendment and Termination
          -------------------------

     The Plan may be terminated or amended in any respect by resolution  adopted
by a  majority  of the  Board  of the  Bank,  unless  a Change  in  Control  has
previously occurred.  If a Change in Control occurs, the Plan no longer shall be
subject to amendment, change, substitution,  deletion, revocation or termination
in any respect whatsoever.

     8.3  Form of Amendment
          -----------------

     The form of any  proper  amendment  or  termination  of the Plan shall be a
written  instrument signed by a duly authorized officer or officers of the Bank,
certifying  that the amendment or termination  has been approved by the Board. A
proper termination of the Plan  automatically  shall effect a termination of all
Participants' rights and benefits hereunder.

     8.4  No Attachment
          -------------

     (a) Except as required by law, no right to receive payments under this Plan
shall be subject to anticipation,  commutation,  alienation,  sale,  assignment,
encumbrance,  charge,  pledge,  or hypothecation,  or to execution,  attachment,
levy,  or similar  process or  assignment  by operation of law, and any attempt,
voluntary or involuntary,  to affect such action shall be null,  void, and of no
effect.

<PAGE>

     (b) This Plan shall be binding  upon,  and inure to the  benefit  of,  each
employee, the Employer and their respective successors and assigns.

                                   ARTICLE IX
                             LEGAL FEES AND EXPENSES

     9.1 All  reasonable  legal fees and other  expenses  paid or  incurred by a
party hereto pursuant to any dispute or question of  interpretation  relating to
this  Plan  shall be paid or  reimbursed  by the  prevailing  party in any legal
judgment, arbitration or settlement.

                                    ARTICLE X
                               REQUIRED PROVISIONS

     10.1 The Employer may terminate an Employee's  employment at any time,  but
any termination by the Employer,  other than  Termination  for Cause,  shall not
prejudice the  Employee's  right to  compensation  or other  benefits under this
Plan.  Employee  shall  not have  the  right to  receive  compensation  or other
benefits  for any  period  after  Termination  for Cause as  otherwise  provided
hereunder.

     10.2 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 8(g)(1) of the  Federal  Deposit  Insurance  Act,  12 U.S.C.
ss.1818(e)(3)  or (g)(1),  the Bank's  obligations  under this contract shall be
suspended as of the date of service,  unless stayed by appropriate  proceedings.
If the charges in the notice are  dismissed,  the Bank may in its discretion (i)
pay the Employee all or part of the  compensation  withheld while their contract
obligations  were  suspended and (ii) reinstate (in whole or in part) any of the
obligations which were suspended.

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

     10.4 If the Bank is in default as defined in Section 3(x)(1) of the Federal
Deposit  Insurance  Act, 12 U.S.C.  ss.1813(x)(1),  all  obligations of the Bank
under  this  contract  shall  terminate  as of the  date of  default,  but  this
paragraph shall not affect any vested rights of the contracting parties.

     10.5 All  obligations  under the Plan  shall be  terminated,  except to the
extent  determined that  continuation of the Plan is necessary for the continued
operation of the Bank:

     (a) by the  Director  or her  designee,  at the  time the  Federal  Deposit
Insurance  Corporation  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 the Federal Deposit Insurance Act; or

<PAGE>

     (b) by the  Director  or her  designee,  at the  time the  Director  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 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.

     10.6  Any  payments  made  to a  Participant  pursuant  to  this  Plan,  or
otherwise,  are  subject  to and  conditioned  upon  their  compliance  with  12
U.S.C.ss.1828(k) and any regulations promulgated thereunder.

                                   ARTICLE XI
                           ADMINISTRATION OF THE PLAN

     11.1 The Plan shall be  administered  by the Board (or, by a  committee  of
non-employee directors designated by the Board). Subject to the other provisions
of the Plan,  the Board shall have authority to adopt,  amend,  alter and repeal
such administrative  rules,  guidelines and practices governing the operation of
the Plan as it shall from time to time  consider  advisable,  to  interpret  the
provisions of the Plan and to decide all disputes arising in connection with the
Plan.  The Board may correct any defect or supply any omission or reconcile  any
inconsistency  in the  Plan,  in the  manner  and to the  extent  it shall  deem
appropriate to carry the Plan into effect, in its sole and absolute  discretion.
The Board's decisions and interpretations shall be final and binding. Any action
of the Board  with  respect  to the  administration  of the Plan  shall be taken
pursuant to a majority vote or by the unanimous written consent of its members.

     Having been adopted by its Board on June 27, 2000, this Plan is executed by
duly authorized officer of the Bank this 5th day of July.

Attest

/s/ Steve P. Sligh                             /s/ J. Thomas Johnson
---------------------------                   ----------------------------------
                                              J. Thomas Johnson
                                              For the Entire Board of Directors

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