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                                                                 EXHIBIT 10.7



                           WILSON BANK HOLDING COMPANY
                        QUALIFIED STOCK OPTION AGREEMENT

TO:

         We are pleased to notify you that, as a key employee of Wilson Bank &
Trust, a subsidiary of Wilson Bank Holding Company (the "Company"), you have
been granted an option ("Option") to purchase _________ of the common stock,
$2.00 value ("Common Stock") of the Company at a price of $______ per share this
_____ DAY of __________, 200___, under the Company's 1998 Stock Option Plan (the
"Plan"). This Option may be exercised only upon the terms and conditions set
forth below.

1. PURPOSE OF PLAN.

     The purpose of the Plan under which this Option has been granted is to
     enable the Company to attract, retain and reward key employees of the
     Company and its subsidiaries (each a "Subsidiary, and, collectively,
     "Subsidiaries") and to strengthen the mutuality of interests between such
     key employees by awarding such key employees (collectively, "Participants")
     performance-based stock incentives and/or other equity interests or
     equity-based incentives in the Company, as well as performance-based
     incentives payable in cash.

2. PLAN CONTROLS.

     This Option is granted pursuant to the terms of the Plan and is subject to
     all of the terms and conditions of the Plan, which is incorporated herein
     by reference. Subject to the provisions of the Plan, the Board shall have
     the authority to interpret the provisions and supervise the administration
     of the Plan. If any of the provisions of this Option conflict with or are
     inconsistent with the provisions of the Plan, the provisions of the Plan
     shall be controlling.

3. ACCEPTANCE OF OPTION AGREEMENT.

     Your execution of this option agreement will indicate your acceptance of
     and your willingness to be bound by its terms; it imposes no obligation
     upon you to purchase any of the shares subject to the Option. Your
     obligation to purchase shares can arise only upon your exercise of the
     Option in the manner set forth in Section 5 hereof.

4. WHEN OPTION MAY BE EXERCISED.

     This Option shall vest one-tenth (1/10) annually for ten years beginning on
     the anniversary date of this date of grant and may be exercised to the
     fullest extent it has vested, or any part thereof, beginning on the date
     that is 12 months after this date of grant. This Option expires 10 years
     and 90 days from the date of grant whether or not it has been duly
     exercised (the "Option Period"), unless sooner terminated as provided in
     Sections 6, 7 and 8 hereof.


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5. HOW OPTION MAY BE EXERCISED.

     This Option is exercisable by giving written notice to the Company at its
     executive offices, signifying your election to exercise the Option. The
     notice must state the number of shares of Common Stock as to which the
     Option is being exercised, must contain a statement by you (in a form
     acceptable to the Company) that such shares are being acquired by you for
     investment and not with a view to their distribution or resale (unless a
     registration statement covering the shares purchasable has been declared
     effective by the Securities and Exchange Commission) and must be
     accompanied by check payable to the order of the Company for the full
     purchase price of the shares being purchased and such amount, if any, as is
     required for income tax withholding. Such payment may also be made in whole
     or in part by delivering previously owned shares of Common Stock (valued at
     the Fair Market Value of the Common Stock on the date the Option is
     exercised) or instructing the Company to withhold that number of shares
     issuable upon exercise of the Option having a Fair Market Value equal to
     the purchase price and the amount required for income tax withholding. Any
     Common Stock delivered in satisfaction of all or any portion of the
     purchase price shall be appropriately endorsed for transfer and assignment
     to the Company. No shares shall be issued until full payment therefore has
     been made and your income tax withholding obligations satisfied.

     If notice of the exercise of this Option is given by a person or persons
     other than you, the Company will require the submission to the Company of
     appropriate proof of the right of such person or persons to exercise this
     Option.

     Certificates for shares of the Common Stock so purchased will be issued as
     soon as practicable. The Company, however, shall not be required to issue
     or deliver a Certificate for any shares until it has complied with all
     requirements of the Securities Act of 1933, as amended, the Securities
     Exchange Act of 1934, as amended, any stock Exchange of which the Common
     Stock may then be listed and all applicable state laws in connection with
     the issuance of sale of such shares or the listing of such shares on said
     exchange. Until the issuance of the certificate for such shares, you or
     such other person as may be entitled to exercise this Option, shall have
     none of the rights of a stockholder with respect to shares subject to this
     Option.

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TO:

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6. TERMINATION OF EMPLOYMENT WITH THE COMPANY.

     If you employment with the Company (or a Subsidiary) is terminated for any
     reason other than as a result of your death, disability, early or normal
     retirement, or registration as provided in Sections 7 and 8 hereof, you may
     exercise that portion of this Option which was exercisable by you at the
     date of termination at any time within 90 days of the date of such
     termination provided, however, such exercise occurs within the Option
     Period and further provided that in the event such termination was due to
     "Cause" (as defined in the Plan), this Option shall immediately lapse and
     expire.

7. RETIREMENT OR DISABILITY.

     If you retire from the Company on or after age 65, this Option shall become
     fully exercisable and vested and may be exercised by you at any time within
     three years of the date of such retirement, provided, however, that such
     exercise occurs within the Option Period. If you retire before age 65 or
     choose to resign from the Company (or a Subsidiary) or if you become
     disabled while still a key employee such that you are no longer able to
     maintain employment with the Company, you may exercise that portion of this
     Option which was exercisable by you at the date of such termination at any
     time within three years of the date of such termination provided, however,
     that such exercise occurs within the Option Period.

8. DEATH.

   (A)    If you die while still an employee of the Company (or a Subsidiary),
          this Option shall become fully exercisable and vested and may be
          exercised by the legal
          representative of your estate or the legatee or legatees under your
          will within 12 months from the date of your death, but in no event
          after the Option Period.

   (B)    If you die within three years following termination of your employment
          due to disability, early or normal retirement or voluntary
          resignation, that portion of this
          Option which was exercisable by you at the date of your death,
          disability, retirement or voluntary resignation, this Option shall
          become fully exercisable and vested and may be exercised by the legal
          representative of your estate of the legatee or legatees under your
          will within 12 months from the date of your death, but in no event
          after the Option Period.

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9. NON-TRANSFERABILITY OF OPTION.

     This Option shall not be assignable or transferable without the prior
     written consent of the Committee except (a) to a member of your immediate
     family or a trust for the benefit of you or a member of your immediate
     family, or (b) by will or the laws of descent and distribution or pursuant
     to a qualified domestic relations order, and may be exercised during your
     lifetime only by you or your guardian, legal representative or qualified
     domestic relations order transferee.

10. QUALIFIED STOCK OPTION.

      This Option is not intended to be an "incentive stock option" as defined
      in Section 42 422 of the Internal Revenue Code of 1986, as amended.

11. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

      If at any time after the date of grant of this Option, the Company shall,
      by stock dividend, split-up, combination, reclassification or exchange, or
      through merger or consolidation, or otherwise, change its shares of Common
      Stock into a different number or kind or class of shares or other
      securities or property, then the number of shares covered by this Option
      and the price of each such share shall be proportion- ately adjusted for
      any such change by the Board of Directors whose determination shall be
      conclusive. Any fraction of a share resulting from any adjustment shall be
      eliminated and the price per share of the remaining shares subject to this
      Option shall be adjusted accordingly.

12. EFFECTS OF CHANGE IN CONTROL.

      Immediately following a "Change in Control" of the Company (as defined in
      the Plan), this Option shall become immediately vested and fully
      exercisable, but in no event may this Option be exercised after 10 years
      from the date this Option was granted to you.

13. MODIFICATION.

      This Option may be amended by the Board (subject to certain limitations as
      set forth in the Plan), prospectively or retroactively and in whole or in
      part, except that no such action may impair your rights with respect to
      this Option without your consent, and the Board may, in its sole
      discretion, waive any restrictions or conditions applicable to, or
      accelerate the vesting of, this Option, in whole or in part.

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14. MEANING OF CAPITALIZED TERMS.

      Capitalized terms used herein and not otherwise defined shall have the
      meanings ascribed to them in the Plan.

15. WHEN OPTION BECOMES EFFECTIVE.

      This Option shall not become effective unless a copy of this letter has
      been signed by you and returned to the Company at the above address.


                                              Sincerely yours,

                                              WILSON BANK HOLDING COMPANY



                                               By:
                                                   -----------------------------
                                                   J. Randall Clemons
                                                   Chief Executive Officer







AGREED TO AND ACCEPTED THIS _______ DAY OF _________________, ______.



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SIGNATURE OF OPTIONEE