FIRST AMENDMENT TO THE NEW PEOPLES BANK, INC. SALARY CONTINUATION AGREEMENT DATED DECEMBER 18, 2002 FOR FRANK SEXTON, JR.

Exhibit 10.7

FIRST AMENDMENT TO THE

NEW PEOPLES BANK, INC.

SALARY CONTINUATION AGREEMENT

DATED DECEMBER 18, 2002

FOR

XXXXX XXXXXX, XX.

THIS AMENDMENT executed on this 30th day of June, 2003, by and between the NEW PEOPLES BANK, INC., a state chartered commercial bank located in Honaker, Virginia (the “Company”), and XXXXX XXXXXX, XX. (the “Executive”)

On December 18, 2002, the Company and the Executive executed the SALARY CONTINUATION AGREEMENT (the “Agreement”).

Pursuant to the power of amendment reserved by Article 7 of the Agreement, the undersigned hereby amends, in part, said Agreement for the purposes of: (i) removing definitions, (ii) changing the Effective Date, and (iii) changing the Plan Year. Therefore,

Section 1.2 shall be deleted from the Agreement.

Section 1.3 shall be deleted from the Agreement.

Section 8.2 shall be deleted from the Agreement.

Section 2.2.4 shall be added to the Agreement as follows:

The benefit amount is subject to a vesting schedule of zero percent (0.0%) in the first Plan Year, and one hundred percent (100%) thereafter.

IN WITNESS OF THE ABOVE, the Executive and the Company have agreed to this First Amendment.

Executive:						Company:
						NEW PEOPLES BANK, INC.
/s/ Xxxxx Xxxxxx, Xx.						By		/s/ Xxxx Xxxxx
Xxxxx Xxxxxx, Xx.						Title		Chairman of the Board