EXHIBIT 10.1

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                               GFSB BANCORP, INC.

                             1995 STOCK OPTION PLAN


         1.  Purpose of the Plan.  The Plan shall be known as the GFSB  Bancorp,
Inc.  ("Corporation")  1995 Stock Option Plan (the  "Plan").  The purpose of the
Plan is to attract and retain the best  available  personnel  for  positions  of
substantial  responsibility  and to provide  additional  incentive  to officers,
directors and key employees of the Corporation,  or any present or future parent
or subsidiary  of the  Corporation  to promote the success of the business.  The
Plan is intended to provide for the grant of "Incentive  Stock Options,"  within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code") and Non-Incentive  Stock Options,  options that do not so qualify.  Each
and every one of the provisions of the Plan relating to Incentive  Stock Options
shall be interpreted to conform to the requirements of Section 422 of the Code.

          2.      Definitions.  As used herein, the following definitions  shall
apply.

                  (a) "Savings Bank" shall mean Gallop Federal  Savings Bank, or
any successor corporation thereto.

                  (b) "Award"  means the grant by the  Committee of an Incentive
Stock Option or a Non-Incentive  Stock Option,  or any combination  thereof,  as
provided in the Plan.

                  (c)  "Board"   shall  mean  the  Board  of  Directors  of  the
Corporation, or any successor or parent corporation thereto.

                  (d) "Code"  shall mean the Internal  Revenue Code of 1986,  as
amended.

                  (e)  "Committee"   shall  mean  the  Stock  Option   Committee
appointed by the Board in accordance with paragraph 5(a) of the Plan.

                  (f) "Common Stock" shall mean common stock, par value $.10 per
share, of the Corporation, or any successor or parent corporation thereto.

                  (g)  "Continuous  Employment"  or  "Continuous  Status  as  an
Employee"  shall  mean  the  absence  of  any  interruption  or  termination  of
employment with the Corporation or any present or future Parent or Subsidiary of
the Corporation.  Employment shall not be considered  interrupted in the case of
sick  leave,  military  leave or any  other  leave of  absence  approved  by the
Corporation  or in the  case of  transfers  between  payroll  locations,  of the
Corporation  or between the  Corporation,  its  Parent,  its  Subsidiaries  or a
successor.

                  (h)  "Corporation"  shall  mean the GFSB  Bancorp,  Inc.,  the
parent corporation for the Savings Bank, or any successor or Parent thereof.

                  (i)  "Director"  shall  mean  a  member  of the  Board  of the
Corporation, or any successor or parent corporation thereto.

                  (j) "Effective  Date" shall mean the date specified in Section
15 hereof.

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                  (k)  "Employee"   shall  mean  any  person   employed  by  the
Corporation or any present or future Parent or Subsidiary of the Corporation.

                  (l) "Incentive  Stock Option" or "ISO" shall mean an option to
purchase  Shares granted by the Committee  pursuant to Section 8 hereof which is
subject to the limitations and  restrictions of Section 8 hereof and is intended
to qualify under Section 422 of the Code.

                  (m)  "Non-Incentive  Stock Option" or "Non-ISO"  shall mean an
option to purchase Shares granted pursuant to Section 9 hereof,  which option is
not intended to qualify under Section 422 of the Code.

                  (n) "Option"  shall mean an Incentive or  Non-Incentive  Stock
Option  granted  pursuant to this Plan  providing the holder of such Option with
the right to purchase Common Stock.

                  (o) "Optioned Stock" shall mean stock  subject  to  an  Option
granted pursuant to the Plan.

                  (p) "Optionee" shall mean any person who receives an Option or
Award pursuant to the Plan.

                  (q)  "Parent"  shall mean any  present  or future  corporation
which would be a "parent  corporation" as defined in Subsections  424(e) and (g)
of the Code.

                  (r) "Participant" means any director,  officer or key employee
of the  Corporation or any Parent or Subsidiary of the  Corporation or any other
person  providing a service to the  Corporation who is selected by the Committee
to  receive  an Award,  or who by the  express  terms of the Plan is  granted an
Award.

                  (s) "Plan" shall mean the GFSB Bancorp, Inc. 1995 Stock Option
Plan.

                  (t) "Share" shall mean one share of the Common Stock.

                  (u) "Subsidiary"  shall mean any present or future corporation
which would be a "subsidiary  corporation" as defined in Subsections  424(f) and
(g) of the Code.

          3. Shares  Subject to the Plan.  Except as  otherwise  required by the
provisions of Section 13 hereof,  the aggregate number of Shares with respect to
which  Awards may be made  pursuant to the Plan shall not exceed  94,875.1  Such
Shares may either be authorized but unissued  shares,  treasury shares or shares
purchased in the market for Plan purposes.

         An Award shall not be considered to be made under the Plan with respect
to any Option  which  terminates  prior to its  exercise,  and new Awards may be
granted  under the Plan with  respect  to the  number of Shares as to which such
termination has occurred.

--------
1        Equal to 10% of shares issued in the initial stock offering.

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         4.       Six Month Holding Period.

                  Subject to vesting requirements,  if applicable, except in the
event of death or  disability,  a minimum of six months must elapse  between the
date of the grant of an Option and the date of the sale of Common Stock received
through the exercise of such Option.

          5.      Administration of the Plan.

                  (a) (i)  Composition of the Committee.  Except as indicated in
paragraph  5(a)(ii)  below,  the Plan  shall be  administered  by the  Committee
consisting of at least three non-employee Directors of the Corporation appointed
by the Board and serving at the pleasure of the Board. Officers,  Directors, key
employees  and  other  persons  who are  designated  by the  Committee  shall be
eligible to receive Awards under the Plan, and all persons designated as members
of the Committee  shall be  "disinterested  persons"  within the meaning of Rule
16b-3 under the Securities Exchange Act of 1934.

                           (ii) For the purpose of granting Awards to directors,
the  selection  of any  Director to whom  Awards may be granted,  as well as the
number of Shares  subject  to Awards,  must be  determined  by a  "disinterested
committee", as defined in Rule 16b-3 under the Securities Exchange Act of 1934.

                  (b) Powers of the Committee.  The Committee is authorized (but
only to the extent not  contrary  to the  express  provisions  of the Plan or to
resolutions adopted by the Board) to interpret the Plan, to prescribe, amend and
rescind  rules and  regulations  relating to the Plan, to determine the form and
content of Awards to be issued  under the Plan and to make other  determinations
necessary or advisable for the  administration  of the Plan,  and shall have and
may  exercise  such other power and  authority  as may be delegated to it by the
Board from time to time. A majority of the entire  Committee shall  constitute a
quorum and the action of a majority  of the  members  present at any  meeting at
which a quorum is present  shall be deemed the  action of the  Committee.  In no
event may the Committee  revoke  outstanding  Awards  without the consent of the
Participant.

                  The  Chairman of the  Corporation  and such other  officers as
shall  be  designated  by  the  Committee  are  hereby   authorized  to  execute
instruments  evidencing Awards on behalf of the Corporation and to cause them to
be delivered to the Participants.

                  (c)   Effect   of   Committee's   Decision.   All   decisions,
determinations  and   interpretations  of  the  Committee  shall  be  final  and
conclusive on all persons affected thereby.

          6.      Eligibility.

                            (i)  Awards  may  be granted to officers, Directors,
key employees and other persons. The Committee shall from time to time determine
the  officers,  Directors,  key employees and other persons who shall be granted
Awards under the Plan,  the number of Awards to be granted to each such officer,
Director,  key employee and other  persons  under the Plan,  and whether  Awards
granted  to each such  Participant  under  the Plan  shall be  Incentive  and/or
Non-Incentive  Stock Options.  In selecting  Participants and in determining the
number of Shares of Common Stock to be granted to each such Participant pursuant
to each Award granted  under the Plan,  the Committee may consider the nature of
the services rendered by each such Participant,  each such Participant's current
and  potential  contribution  to the  Corporation  and such other factors as the
Committee may, in its sole discretion, deem relevant.

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Officers,  Directors,  key  employees or other  persons who have been granted an
Award may, if otherwise eligible, be granted additional Awards.

                           (ii)      The aggregate fair market value (determined
as of the date the  Option is  granted)  of the  Shares  with  respect  to which
Incentive  Stock  Options are  exercisable  for the first time by each  Employee
during any calendar year (under all Incentive  Stock Option plans, as defined in
Section 422 of the Code, of the  Corporation  or any present or future Parent or
Subsidiary of the Corporation)  shall not exceed $100,000.  Notwithstanding  the
prior provisions of this Section 6, the Committee may grant Options in excess of
the  foregoing   limitations,   provided  said  Options  shall  be  clearly  and
specifically designated as not being Incentive Stock Options.

                           (iii) In no event  shall  Shares  subject  to Options
granted to  non-employee  Directors in the aggregate under this Plan exceed more
than 30% of the total number of Shares  authorized  for delivery under this Plan
pursuant  to  Section 3 herein or more  than 5% to any  individual  non-employee
Director.

          7. Term of the Plan.  The Plan shall  continue in effect for a term of
ten (10) years from the Effective  Date,  unless sooner  terminated  pursuant to
Section 18  hereof.  No Option  shall be  granted  under the Plan after ten (10)
years from the Effective Date.

          8. Terms and Conditions of Incentive  Stock Options.  Incentive  Stock
Options may be granted only to  Participants  who are Employees.  Each Incentive
Stock Option granted pursuant to the Plan shall be evidenced by an instrument in
such  form as the  Committee  shall  from time to time  approve.  Each and every
Incentive  Stock Option  granted  pursuant to the Plan shall comply with, and be
subject to, the following terms and conditions:

                  (a)      Option Price.

                            (i)     The price per Share at which each  Incentive
Stock  Option  granted  under the Plan may be  exercised  shall  not,  as to any
particular  Incentive  Stock  Option,  be less than the fair market value of the
Common  Stock at the time  such  Incentive  Stock  Option is  granted.  For such
purposes,  if the Common Stock is traded otherwise than on a national securities
exchange at the time of the granting of an Option,  then the exercise  price per
Share of the Optioned  Stock shall be not less than the mean between the bid and
asked price on the date the Incentive Stock Option is granted or, if there is no
bid and asked price on said date,  then on the next prior  business day on which
there was a bid and asked  price.  If no such bid and asked price is  available,
then the exercise price per Share shall be determined by the  Committee.  If the
Common  Stock is listed on a  national  securities  exchange  at the time of the
granting of an Incentive  Stock Option,  then the exercise price per Share shall
be not less than the  average of the highest  and lowest  selling  price on such
exchange on the date such Incentive Stock Option is granted or, if there were no
sales on said  date,  then the  exercise  price  shall be not less than the mean
between the bid and asked price on such date.

                           (ii)     In the case of an  Employee who owns  Common
Stock  representing more than ten percent (10%) of the outstanding  Common Stock
at the time the Incentive  Stock Option is granted,  the Incentive  Stock Option
exercise  price shall not be less than one hundred and ten percent (110%) of the
fair market value of the Common Stock at the time the Incentive  Stock Option is
granted.


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                  (b)  Payment.  Full  payment  for each  Share of Common  Stock
purchased upon the exercise of any Incentive Stock Option granted under the Plan
shall be made at the time of exercise of each such  Incentive  Stock  Option and
shall be paid in cash (in United States Dollars),  Common Stock or a combination
of cash and Common Stock.  Common Stock  utilized in full or partial  payment of
the  exercise  price  shall be  valued at its fair  market  value at the date of
exercise.  The Corporation  shall accept full or partial payment in Common Stock
only to the extent  permitted by applicable law. No Shares of Common Stock shall
be issued until full payment therefor has been received by the Corporation,  and
no Optionee  shall have any of the rights of a  stockholder  of the  Corporation
until Shares of Common Stock are issued to him.

                  (c) Term of Incentive Stock Option. The term of exercisability
of each Incentive  Stock Option  granted  pursuant to the Plan shall be not more
than ten (10) years from the date each such  Incentive  Stock Option is granted,
provided that in the case of an Employee who owns stock  representing  more than
ten percent  (10%) of the Common  Stock  outstanding  at the time the  Incentive
Stock Option is granted, the term of the Incentive Stock Option shall not exceed
five (5) years.

                  (d)  Exercise  Generally.  Except  as  otherwise  provided  in
Section  10 hereof,  no  Incentive  Stock  Option  may be  exercised  unless the
Optionee  shall have been in the employ of the  Corporation  at all times during
the period  beginning with the date of grant of any such Incentive  Stock Option
and  ending on the date three (3) months  prior to the date of  exercise  of any
such Incentive Stock Option. The Committee may impose additional conditions upon
the  right of an  Optionee  to  exercise  any  Incentive  Stock  Option  granted
hereunder  which  are  not  inconsistent  with  the  terms  of the  Plan  or the
requirements for qualification as an Incentive Stock Option.

                  (e) Cashless  Exercise.  Subject to vesting  requirements,  if
applicable,  an Optionee who has held an Incentive Stock Option for at least six
months may engage in the  "cashless  exercise"  of the  Option.  Upon a cashless
exercise,  an Optionee gives the  Corporation  written notice of the exercise of
the Option  together with an order to a registered  broker-dealer  or equivalent
third party,  to sell part or all of the Optioned Stock and to deliver enough of
the  proceeds  to the  Corporation  to pay the  Option  exercise  price  and any
applicable  withholding  taxes. If the Optionee does not sell the Optioned Stock
through a registered  broker-dealer  or equivalent third party, the Optionee can
give the Corporation  written notice of the exercise of the Option and the third
party  purchaser of the Optioned Stock shall pay the Option  exercise price plus
any applicable withholding taxes to the Corporation.

                  (f)  Transferability.   Any  Incentive  Stock  Option  granted
pursuant to the Plan shall be exercised  during an  Optionee's  lifetime only by
the Optionee to whom it was granted and shall not be assignable or  transferable
otherwise than by will or by the laws of descent and distribution.

          9.  Terms  and  Conditions  of  Non-Incentive   Stock  Options.   Each
Non-Incentive Stock Option granted pursuant to the Plan shall be evidenced by an
instrument in such form as the Committee  shall from time to time approve.  Each
and every  Non-Incentive  Stock Option granted pursuant to the Plan shall comply
with and be subject to the following terms and conditions.

                  (a) Options  Granted to Directors.  Subject to the limitations
of Section  6(iii),  Non-  Incentive  Stock Options to purchase  4,066 shares of
Common  Stock will be granted to each  Director who is not an Employee as of the
Effective  Date,  at an exercise  price  equal to the fair  market  value of the
Common Stock on such date of grant. Options may be granted to newly appointed or
elected non-employee Directors within the sole discretion of the Committee.  The
Options will be exercisable at the

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rate of 20% on the one year  anniversary  of the Effective  Date of the Plan and
20% annually  thereafter  during such periods of service as director or director
emeritus.  Upon the death or disability of the director or director emeritus, or
upon a change or control of the Savings Bank or the  Corporation  as provided at
Section 13(b) herein,  such Option shall be deemed immediately 100% exercisable.
The price per Share at which such Options granted shall be exercisable  shall be
equal to the fair market  value of the Common Stock at the time such Options are
granted.  For such purposes,  if the Common Stock is traded  otherwise than on a
national  securities  exchange at the time of the granting of the Options,  then
the exercise  price per Share of the  Optioned  Stock shall be not less than the
mean  between the bid and asked price on the date the Options are granted or, if
there is no bid and asked  price on said date,  then on the next prior  business
day on which there was a bid and asked price.  If no such bid and asked price is
available,  then  the  exercise  price  per  Share  shall be  determined  by the
Committee.  If the Common Stock is listed on a national  securities  exchange at
the time of the granting of an Options,  then the exercise price per Share shall
be not less than the  average of the highest  and lowest  selling  price on such
exchange on the date such Options are granted or, if there were no sales on said
date,  then the  exercise  price shall be not less than the mean between the bid
and asked price on such date.  Such Options shall continue to be exercisable for
a  period  of ten  years  following  the  date of grant  without  regard  to the
continued services of such Directors as a Director or Director Emeritus.  In the
event of the  Optionee's  death,  such  Options may be exercised by the personal
representative  of his estate or person or persons to whom his rights under such
Option shall have passed by will or by laws of descent and distribution.  Unless
otherwise  inapplicable,  or inconsistent with the provisions of this paragraph,
the Options to be granted to Directors  hereunder  shall be subject to all other
provisions of this Plan.

                  (b) Option Price. The exercise price per Share of Common Stock
for each  Non-Incentive  Stock Option granted  pursuant to the Plan,  other than
Options granted  pursuant to Section 9(a) herein,  shall be at such price as the
Committee  may determine in its sole  discretion,  but in no event less than the
fair market value of such Common Stock on the date of grant.

                  (c)  Payment.  Full  payment  for each  Share of Common  Stock
purchased upon the exercise of any Non-Incentive  Stock Option granted under the
Plan  shall be made at the time of  exercise  of each such  Non-Incentive  Stock
Option and shall be paid in cash (in United States  Dollars),  Common Stock or a
combination  of cash and Common Stock.  Common Stock utilized in full or partial
payment of the  exercise  price shall be valued at its fair market  value at the
date of exercise. The Corporation shall accept full or partial payment in Common
Stock only to the extent  permitted by applicable law. No Shares of Common Stock
shall be issued until full payment therefor has been received by the Corporation
and no Optionee shall have any of the rights of a stockholder of the Corporation
until the Shares of Common Stock are issued to him.

                  (d) Term.  The term of  exercisability  of each  Non-Incentive
Stock Option granted  pursuant to the Plan shall be not more than ten (10) years
from the date each such Non-Incentive Stock Option is granted.

                  (e) Exercise  Generally.  The Committee may impose  additional
conditions upon the right of any Participant to exercise any Non-Incentive Stock
Option granted hereunder which is not inconsistent with the terms of the Plan.

                  (f) Cashless  Exercise.  Subject to vesting  requirements,  if
applicable,  an Optionee who has held a Non-Incentive  Stock Option for at least
six months may engage in the "cashless  exercise" of the Option. Upon a cashless
exercise, an Optionee gives the Corporation written notice of the exercise

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of the Option together with an order to a registered broker-dealer or equivalent
third party,  to sell part or all of the Optioned Stock and to deliver enough of
the  proceeds  to the  Corporation  to pay the  Option  exercise  price  and any
applicable  withholding  taxes. If the Optionee does not sell the Optioned Stock
through a registered  broker-dealer  or equivalent third party, the Optionee can
give the Corporation  written notice of the exercise of the Option and the third
party  purchaser of the Optioned Stock shall pay the Option  exercise price plus
any applicable withholding taxes to the Corporation.

                  (g)  Transferability.  Any Non-Incentive  Stock Option granted
pursuant to the Plan shall be exercised  during an  Optionee's  lifetime only by
the Optionee to whom it was granted and shall not be assignable or  transferable
otherwise than by will or by the laws of descent and distribution.

         10.      Effect  of  Termination  of Employment, Disability or Death on
Incentive Stock Options.

                  (a)   Termination  of  Employment.   In  the  event  that  any
Optionee's employment with the Corporation shall terminate for any reason, other
than Permanent and Total Disability (as such term is defined in Section 22(e)(3)
of the Code) or death, all of any such Optionee's  Incentive Stock Options,  and
all of any such Optionee's  rights to purchase or receive Shares of Common Stock
pursuant  thereto,  shall  automatically  terminate  on the  earlier  of (i) the
respective  expiration  dates of any such Incentive  Stock Options,  or (ii) the
expiration of not more than three (3) months after the date of such  termination
of employment, or (iii) at such later date as determined by the Committee at the
time of the  grant of such  Award,  but only if,  and to the  extent  that,  the
Optionee was entitled to exercise any such  Incentive  Stock Options at the date
of such termination of employment. In the event that a subsidiary ceases to be a
subsidiary of the  Corporation,  the  employment of all of its employees who are
not  immediately  thereafter  employees  of the  Corporation  shall be deemed to
terminate  upon the date such  subsidiary  so ceases to be a  Subsidiary  of the
Corporation.

                  (b)  Disability.  In the event that any Optionee's  employment
with the  Corporation  shall  terminate as the result of the Permanent and Total
Disability of such  Optionee,  such  Optionee may exercise any  Incentive  Stock
Options  granted to him pursuant to the Plan at any time prior to the earlier of
(i) the respective  expiration dates of any such Incentive Stock Options or (ii)
the date which is one (1) year after the date of such termination of employment,
but only if, and to the extent  that,  the Optionee was entitled to exercise any
such Incentive Stock Options at the date of such termination of employment.

                  (c)  Death.  In the  event of the  death of an  Optionee,  any
Incentive  Stock Options granted to such Optionee may be exercised by the person
or persons to whom the Optionee's  rights under any such Incentive Stock Options
pass  by  will  or by the  laws  of  descent  and  distribution  (including  the
Optionee's estate during the period of  administration) at any time prior to the
earlier  of (i) the  respective  expiration  dates of any such  Incentive  Stock
Options or (ii) the date which is two (2) years  after the date of death of such
Optionee  but only if, and to the extent  that,  the  Optionee  was  entitled to
exercise any such Incentive Stock Options at the date of death.  For purposes of
this Section  10(c),  any  Incentive  Stock Option held by an Optionee  shall be
considered  exercisable  at the  date  of his  death  if  the  only  unsatisfied
condition  precedent to the exercisability of such Incentive Stock Option at the
date of death is the passage of a specified period of time. At the discretion of
the Committee,  upon exercise of such Options the Optionee may receive Shares or
cash or combination  thereof. If cash shall be paid in lieu of Shares, such cash
shall be equal to the  difference  between the fair market  value of such Shares
and the exercise price of such Options on the exercise date.


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                  (d) Incentive Stock Options Deemed  Exercisable.  For purposes
of Sections 10(a), 10(b) and 10(c) above, any Incentive Stock Option held by any
Optionee  shall be  considered  exercisable  at the date of  termination  of his
employment if any such  Incentive  Stock Option would have been  exercisable  at
such date of termination of employment.

                  (e) Termination of Incentive Stock Options. To the extent that
any  Incentive  Stock  Option  granted  under  the  Plan to any  Optionee  whose
employment with the Corporation  terminates shall not have been exercised within
the  applicable  period set forth in this Section 10, any such  Incentive  Stock
Option,  and all rights to purchase or receive  Shares of Common Stock  pursuant
thereto,  as the case may be, shall  terminate on the last day of the applicable
period.

         11.  Effect  of  Termination  of  Employment,  Disability  or  Death on
Non-Incentive  Stock Options.  The terms and conditions of  Non-Incentive  Stock
Options  relating to the effect of the termination of an Optionee's  employment,
disability of an Optionee or his death shall be such terms and conditions as the
Committee shall, in its sole  discretion,  determine at the time of termination,
unless  specifically  provided for by the terms of the  Agreement at the time of
grant of the Award.

         12. Right of Repurchase and Restrictions on Disposition. The Committee,
in its sole discretion,  may include, as a term of any Incentive Stock Option or
Non-Incentive  Stock Option,  the right (the  "Repurchase  Right"),  but not the
obligation  for the  Corporation,  to repurchase all or any amount of the Shares
acquired by an Optionee pursuant to the exercise of any such Options. The intent
of  the  Repurchase  Right  is to  encourage  the  continued  employment  of the
Optionee.  The  Repurchase  Right  shall  provide  for,  among other  things,  a
specified  duration of the Repurchase  Right, a specified  price per Share to be
paid  upon  the  exercise  of the  Repurchase  Right  and a  restriction  on the
disposition  of the Shares by the Optionee  during the period of the  Repurchase
Right.  The  Repurchase  Right may permit the  Corporation to transfer or assign
such right to another party.  The Corporation may exercise the Repurchase  Right
only to the extent permitted by applicable law.

         13.      Recapitalization, Merger, Consolidation, Change in Control and
Similar Transactions.

                  (a)  Adjustment.   Subject  to  any  required  action  by  the
stockholders  of the  Corporation,  within the sole discretion of the Committee,
the aggregate  number of Shares of Common Stock for which Options may be granted
hereunder,  the number of Shares of Common  Stock  covered  by each  outstanding
Option,  and the  exercise  price per Share of Common Stock of each such Option,
shall all be proportionately adjusted for any increase or decrease in the number
of issued and outstanding Shares of Common Stock resulting from a subdivision or
consolidation   of  Shares   (whether   by  reason  of  merger,   consolidation,
recapitalization,   reclassification,   split-up,   combination  of  shares,  or
otherwise) or the payment of a stock  dividend (but only on the Common Stock) or
any other  increase or  decrease  in the number of such  Shares of Common  Stock
effected  without the receipt of  consideration  by the Corporation  (other than
Shares held by dissenting stockholders).

                  (b) Change in Control.  All  outstanding  Awards  shall become
immediately  exercisable in the event of a change in control of the Corporation,
as determined by the Committee,  provided that such  accelerated  vesting is not
inconsistent with applicable  regulations of the Office of Thrift Supervision or
similar  circumstances  at the time of such change in  control.  In the event of
such  a  change  in  control,  the  Optionee  shall,  at the  discretion  of the
Committee,  be  entitled to receive  cash in an amount  equal to the fair market
value of the Common Stock subject to any Incentive or

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Non-Incentive Stock Option over the Option Price of such Shares, in exchange for
the  surrender  of such  Options by the  Optionee on that date in the event of a
change in control of the  Corporation.  For purposes of this Section 13, "change
in control"  shall mean:  (i) the execution of an agreement for the sale of all,
or a material portion,  of the assets of the Corporation;  (ii) the execution of
an agreement for a merger or  recapitalization  of the Corporation or any merger
or recapitalization whereby the Corporation is not the surviving entity; (iii) a
change of control of the Corporation,  as otherwise defined or determined by the
Office of  Thrift  Supervision  or  regulations  promulgated  by it; or (iv) the
acquisition,  directly or indirectly,  of the beneficial  ownership  (within the
meaning of that term as it is used in Section 13(d) of the  Securities  Exchange
Act of 1934 and the rules and regulations promulgated thereunder) of twenty-five
percent (25%) or more of the outstanding voting securities of the Corporation by
any  person,  trust,  entity or group.  This  limitation  shall not apply to the
purchase  of shares by  underwriters  in  connection  with a public  offering of
Corporation  stock,  or the  purchase  of  shares  of up to 25% of any  class of
securities of the  Corporation  by a  tax-qualified  employee stock benefit plan
which is  exempt  from the  approval  requirements,  set  forth  under 12 C.F.R.
ss.574.3(c)(1)(vi)  as now in effect or as may  hereafter  be amended.  The term
"person"  refers  to  an  individual  or  a  corporation,   partnership,  trust,
association, joint venture, pool, syndicate, sole proprietorship, unincorporated
organization  or any other form of entity not  specifically  listed herein.  The
decision of the  Committee as to whether a change in control has occurred  shall
be conclusive and binding.

                  (c) Extraordinary  Corporate  Action.  Subject to any required
action by the  stockholders  of the  Corporation,  in the event of any change in
control, recapitalization,  merger, consolidation, exchange of Shares, spin-off,
reorganization,   tender  offer,   partial  or  complete  liquidation  or  other
extraordinary  corporate action or event, the Committee, in its sole discretion,
shall have the power, prior or subsequent to such action or event to:

                            (i)    appropriately  adjust the number of Shares of
Common  Stock  subject to each Option,  the  exercise  price per Share of Common
Stock, and the consideration to be given or received by the Corporation upon the
exercise of any outstanding Option;

                           (ii)    cancel any or all previously granted Options,
provided that  appropriate  consideration  is paid to the Optionee in connection
therewith; and/or

                         (iii)     make  such  other  adjustments  in connection
with  the  Plan as the  Committee,  in its  sole  discretion,  deems  necessary,
desirable,  appropriate or advisable; provided, however, that no action shall be
taken by the  Committee  which  would  cause  Incentive  Stock  Options  granted
pursuant to the Plan to fail to meet the requirements of Section 422 of the Code
without the consent of the Optionee.

                  Except  as  expressly  provided  in  Sections  13(a) and 13(b)
hereof,  no Optionee shall have any rights by reason of the occurrence of any of
the events described in this Section 13.

                  (d)  Acceleration.  The Committee  shall at all times have the
power to accelerate  the exercise date of Options  previously  granted under the
Plan;  provided that such action is not contrary to  regulations of the OTS then
in effect.

         14. Time of Granting Options.  The date of grant of an Option under the
Plan  shall,  for all  purposes,  be the date on which the  Committee  makes the
determination  of  granting  such  Option.  Except,  however,  for  purposes  of
compliance with Section 16 of the Securities Exchange Act of 1934, the date

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of grant of an Option shall be deemed the later of the date of grant or the date
of stockholder  approval of the Plan.  Notice of the grant of an Option shall be
given to each  individual  to whom an Option is so granted  within a  reasonable
time after the date of such grant in a form determined by the Committee.

         15.  Effective  Date. The Plan shall become  effective upon the date of
approval of the Plan by the stockholders of the Corporation, subject to approval
or  non-objection  by the  Office  of Thrift  Supervision,  if  applicable.  The
Committee may make a determination  related to the grant of options prior to the
Effective  Date  with  such  option  grants  to be  effective  upon  the date of
stockholder approval of the Plan.

         16.   Approval  by   Stockholders.   The  Plan  shall  be  approved  by
stockholders  of the  Corporation  within twelve (12) months before or after the
date the Plan is approved by the Board.

         17.  Modification  of Options.  At any time and from time to time,  the
Board may  authorize  the  Committee to direct the  execution  of an  instrument
providing  for the  modification  of any  outstanding  Option,  provided no such
modification, extension or renewal shall confer on the holder of said Option any
right or  benefit  which  could  not be  conferred  on him by the grant of a new
Option at such time, or shall not materially  decrease the  Optionee's  benefits
under the Option  without  the  consent of the holder of the  Option,  except as
otherwise permitted under Section 18 hereof.

         18. Amendment and Termination of the Plan.

                  (a)  Action by the  Board.  The Board may  alter,  suspend  or
discontinue  the Plan,  except that no action of the Board may  increase  (other
than as provided in Section 13 hereof) the maximum number of Shares permitted to
be  optioned  under the Plan,  materially  increase  the  benefits  accruing  to
Participants   under  the  Plan  or  materially   modify  the  requirements  for
eligibility for  participation in the Plan unless such action of the Board shall
be subject to approval or ratification by the stockholders of the Corporation.

                  (b)  Change  in  Applicable  Law.  Notwithstanding  any  other
provision  contained  in the Plan,  in the event of a change in any  federal  or
state law,  rule or  regulation  which would make the exercise of all or part of
any previously granted Incentive and/or  Non-Incentive  Stock Option unlawful or
subject the  Corporation  to any penalty,  the  Committee  may restrict any such
exercise without the consent of the Optionee or other holder thereof in order to
comply with any such law, rule or regulation or to avoid any such penalty.

         19. Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to any Option granted under the Plan unless the issuance and delivery of
such Shares shall comply with all relevant provisions of law, including, without
limitation,  the Securities Act of 1933, as amended,  the rules and  regulations
promulgated thereunder, any applicable state securities law and the requirements
of any stock exchange upon which the Shares may then be listed.

         The   inability   of  the   Corporation   to   obtain   any   necessary
authorizations,  approvals or letters of non-objection  from any regulatory body
or authority deemed by the  Corporation's  counsel to be necessary to the lawful
issuance and sale of any Shares  hereunder  shall relieve the Corporation of any
liability in respect of the non-issuance or sale of such Shares.


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<PAGE>


         As a  condition  to the  exercise  of an Option,  the  Corporation  may
require  the  person  exercising  the  Option to make such  representations  and
warranties as may be necessary to assure the  availability  of an exemption from
the registration requirements of federal or state securities law.

         Notwithstanding  anything herein to the contrary,  upon the termination
of service of an Optionee by the Corporation or its  Subsidiaries for "cause" as
defined at 12 C.F.R.  563.39(b)(1) as determined by the Board of Directors,  all
Options held by such Participant shall cease to be exercisable as of the date of
such termination of service.

         20. Reservation of Shares. During the term of the Plan, the Corporation
will  reserve and keep  available a number of Shares  sufficient  to satisfy the
requirements of the Plan.

         21. Unsecured Obligation.  No Participant under the Plan shall have any
interest in any fund or special asset of the  Corporation  by reason of the Plan
or the grant of any Incentive or  Non-Incentive  Stock Option under the Plan. No
trust  fund shall be  created  in  connection  with the Plan or any grant of any
Incentive or Non-Incentive Stock Option hereunder and there shall be no required
funding of amounts which may become payable to any Participant.

         22.  Withholding  Tax. The  Corporation  shall have the right to deduct
from all amounts paid in cash with  respect to the cashless  exercise of Options
under the Plan any taxes  required  by law to be withheld  with  respect to such
cash payments. Where a Participant or other person is entitled to receive Shares
pursuant to the  exercise of an Option  pursuant  to the Plan,  the  Corporation
shall have the right to require the  Participant or such other person to pay the
Corporation  the  amount  of any taxes  which the  Corporation  is  required  to
withhold with respect to such Shares,  or, in lieu thereof,  to retain,  or sell
without notice, a number of such Shares  sufficient to cover the amount required
to be withheld.

         23.  Governing  Law.  The Plan shall be  governed by and  construed  in
accordance  with the laws of the State of New Mexico,  except to the extent that
federal law shall be deemed to apply.


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