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                                                                    Exhibit 10.1

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                             KANKAKEE BANCORP, INC.



                            2003 DIRECTOR SHORT TERM

                              STOCK INCENTIVE PLAN


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                             KANKAKEE BANCORP, INC.

                            2003 DIRECTOR SHORT TERM

                              STOCK INCENTIVE PLAN

Section 1.        Purpose of the Plan.

         The KANKAKEE BANCORP, INC. 2003 DIRECTOR SHORT TERM STOCK INCENTIVE
PLAN (the "Plan") is intended to provide a means whereby directors of KANKAKEE
BANCORP, INC., a Delaware corporation (the "Company"), the Related Corporations
and its and their affiliates may sustain a sense of proprietorship and personal
involvement in the continued development and financial success of the Company
and the Related Corporations, and to encourage them to remain with and devote
their best efforts to the business of the Company, the Related Corporations and
its and their affiliates, thereby advancing the interests of the Company and its
stockholders. Accordingly, the Company may permit certain directors to acquire
Shares on the terms and conditions established herein.

Section 2.        Definitions.

         The following terms, when used herein and unless the context clearly
requires otherwise, shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

         (a) "Board" means the board of directors of the Company.

         (b) "Code" means the Internal Revenue Code of 1986, as amended from
time to time, and the rules and regulations promulgated thereunder.

         (c) "Committee" means a committee appointed by the Board to administer
the Plan, or if no Committee is appointed, the Board.

         (d) "Effective Date" means April 24, 2003, which was the date that the
Plan was adopted by the Board.

         (e) "Fair Market Value" means, as of the applicable date, the value of
a share of the Company's common stock, as then quoted on the American Stock
Exchange, determined by its last reported sale price on such date or, if no such
reported sale takes place on such date, the average of the closing bid and asked
prices on the date of the most recent reported sale.

         (f) "Nonqualified Option" means an option award under the Plan that is
not an Incentive Stock Option within the meaning of Section 422 of the Code.

         (g) "Related Corporation" means any corporation, bank or other entity
which would be a parent or subsidiary corporation with respect to the Company as
defined in Section 424(e) or (f), respectively, of the Code.

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         (h) "Shares" means shares of the common stock of the Company.

         (i) "Securities Act" means the Securities Act of 1933, as amended from
time to time, and the rules and regulations promulgated thereunder.

         (j) "Termination of Service" means the termination of a person's status
as a director of the Company, a Related Corporation or an affiliate of the
Company or a Related Corporation.

Section 3.        Administration of the Plan.

         The Plan shall be administered by the Board, or a committee appointed
by the Board. The Board, or the Committee, as the case may be, shall have sole
authority to:

         (a) select the directors to whom awards shall be granted under the
Plan;

         (b) establish the amount and conditions of each such award;

         (c) prescribe any legend to be affixed to certificates representing
such awards;

         (d) interpret the Plan;

         (e) correct any defect, supply any omission, or reconcile any
inconsistency in the Plan, any award or any agreement related thereto; and

         (f) adopt such rules, regulations, forms and agreements, not
inconsistent with the provisions of the Plan, as it may deem advisable to carry
out the Plan.

All decisions made by the Board, or the Committee, as the case may be, in
administering the Plan shall be final.

Section 4.        Shares Subject to the Plan.

         The aggregate number of Shares that may be obtained by directors under
the Plan shall be 15,000 Shares. Each director shall receive an option to
acquire a stated number of Shares (the "Original Grant"), and shall be eligible
to direct the exercise of an additional number of options (the "Conditional
Grant") based on the Board's allocation to such director of that number of
additional options not exercised by other directors pursuant to the Original
Grant. Any Shares that remain unissued at the termination of the Plan shall
cease to be subject to the Plan, but until termination of the Plan, the Company
shall at all times make available sufficient Shares to meet the requirements of
the Plan.

Section 5.        Stock Options.

         (a) Type of Options. The Board may issue Nonqualified Options to
directors of the Company, the Related Corporations and its and their affiliates.
The grant of each option shall be confirmed by a stock option agreement that
shall be executed by the Company and the optionee as soon as practicable after
such grant. The stock option agreement shall expressly state or incorporate by
reference the provisions of the Plan.

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         (b) Terms of Options. Each option shall be subject to the following
terms and conditions:

             (i)   Written Notice. An option may be exercised only by giving
written notice to the Company specifying the number of Shares to be purchased.
The Committee may specify a reasonable minimum number of Shares that may be
purchased on any exercise of an option; provided that the minimum number will
not prevent the option holder from exercising an option for the full number of
Shares for which it is then exercisable.

             (ii)  Method of Exercise. Except as otherwise provided in any
written option agreement, the exercise price of an option shall be paid in full
(A) in cash; (B) in Common Stock valued at its Fair Market Value on the date of
exercise, provided it has been owned by the optionee for at least six (6) months
prior to the exercise; (C) in cash by an unaffiliated broker-dealer to whom the
holder of the option has submitted an exercise notice consisting of a fully
endorsed option; (D) by such other medium of payment as the Committee, in its
discretion, shall authorize; or (E) by any combination of clauses (A) through
(D) above, as the optionee shall elect. In the case of payment pursuant to
clauses (B) through (D) above, the optionee's election must be made on or prior
to the date of exercise of the option and must be irrevocable. In lieu of a
separate election governing each exercise of an option, an optionee may file a
blanket election that shall govern all future exercises of options until revoked
by the optionee.

             (iii) Term of Option. An option shall be exercisable as of the date
of grant and shall expire and no longer be exercisable after the end of the 15th
calendar day following the date of grant.

             (iv)  Death of Optionee. If an optionee dies prior to exercise in
full of any options, he or she, or his or her beneficiary, executor,
administrator or personal representative, shall have the right to exercise the
options within a period of twelve (12) months after the date of death.

Section 6.        Amendment or Termination of the Plan.

         The Board may amend, suspend or terminate the Plan or any portion
thereof at any time, but no amendment, suspension or termination shall impair
the rights of any individual, without his or her consent, in any award
theretofore made pursuant to the Plan.

Section 7.        Term of Plan.

         The Plan shall be effective upon the date of its adoption by the Board
and shall terminate upon the earlier of (a) six (6) months from the date adopted
or (b) the date on which the last of any rights under Section 5 are exercised or
expire.

Section 8.        Rights as Stockholder.

         Upon delivery of any Share to a director such person shall have all of
the rights of a stockholder of the Company with respect to such Share, including
the right to vote such Share and to receive all dividends or other distributions
paid with respect to such Share.

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Section 9.        Service.

         An individual shall be considered to be in the service of the Company,
a Related Corporation or an affiliate of the Company or a Related Corporation as
long as he or she remains a director of the Company, such Related Corporation or
affiliate. Nothing herein shall confer on any individual the right to continued
service with the Company, a Related Corporation or an affiliate or affect the
right of the Company, such Related Corporation or affiliate to terminate such
service.

Section 10.       Delivery and Registration of Stock.

         The Company's obligation to deliver Shares with respect to an award
shall, if the Board so requests, be conditioned upon the receipt of a
representation as to the investment intention of the individual to whom such
Shares are to be delivered, in such form as the Board shall determine to be
necessary or advisable to comply with the provisions of the Securities Act or
any other federal, state or local securities legislation or regulation. It may
be provided that any representation requirement shall become inoperative upon a
registration of the Shares or other action eliminating the necessity of such
representation under securities legislation.

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