EXHIBIT 10.7

LONG TERM PERFORMANCE INCENTIVE PLAN

Purpose:

To incent Executive Management and members of the Board of Directors to build
long-term shareholder value.

Type:

The bank’s Long Term Performance Incentive Plan provides for the annual grant of
stock options of the bank’s common stock to executive management and members of
the board of directors subject to the achievement of the bank’s annual business
plan.  The program incorporates incentive stock options (ISO’s) as well as
non-qualified stock options (NSO’s) for management while using NSO’s for
non-employee directors.

The participants and the amount of the annual grants are as follows:

Participants   Annual Grant (Shares)*  

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  Board of Directors (2000 Each)   20,000   CEO   10,000   EVP’s (8,500 each)  
17,000   SVP’s (7000 each)   21,000      

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      68,000  

Board members will receive additional options based upon superior achievement of
the bank’s annual business plan according to the schedule below:

Business Plan   Additional   Total   Exceeded by   Options Granted   Options
Granted  

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              5%   1,000   3,000   10%   2,000   4,000   15%   3,000   5,000  

Administration:

· Plan will be administered by the VP/Shareholder Relations under the direction
of the Compensation Committee.

· Eligible participants who join the organization prior to July first may be
eligible to participate in the program with the approval of the Compensation
Committee (on a pro-rata basis).

· An eligible participant must be an Officer or Board Member of the company at
the time the options are awarded in order to receive a grant.

· Options granted shall be subject to the conditions as outlined in the
particular Stock Option Agreement.

· Options will be generally granted by the end of February following the plan
year end subject to the annual business plan being successfully achieved.

· For the purpose of the Plan the fair market value of the Common Stock shall be
the average of the closing price of the Common Stock on the twenty business days
prior to and including the date of grant of the option, as reported by Nasdaq,
or, if the Common Stock is not quoted on NASDAQ, the fair market value as
determined by the Committee.

· Unless otherwise voted, the annual business plan target will be the latest
budget as approved by the Board of Directors.

· The options are forfeited in accordance with the terms as outlined in the
particular Stock Option Agreement.

· In the unlikely event that the number of shares needed to meet the annual
grant are not available options will be granted on a pro-rata basis.

Vesting and Exercise of Options:

· The options will vest upon grant and be exercisable at the grant price.

· The maximum amount of incentive options which can become first exercisable in
any one year will be limited to $100,000 based on the grant price.

· All options become exercisable in full upon a change of control of the company
even if the stock price target is not met.

· All options with delayed vesting would fully vest at the end of year nine,
even if none of the targets are met.  This provision is required to avoid
unnecessary financial statement charges for compensation.