EXHIBIT 10.3


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                           GALLUP FEDERAL SAVINGS BANK
                    DIRECTORS DEFERRED COMPENSATION AGREEMENT

         THIS DIRECTOR  DEFERRED  COMPENSATION  AGREEMENT (the "Agreement") made
this 22nd day of March,  2000, by and between Gallup  Federal  Savings Bank (the
"Company"),  a  corporation  organized  under the laws of the  United  States of
America and __________________________ (the "Director").

         WITNESSETH THAT:

         In consideration of the agreements contained herein, the parties hereto
agree as follows:

         1. The  Company  agrees to permit the  Director to serve as a member of
its Board of  Directors,  and the  Director  agrees to serve the Company in such
capacity as the Company may  designate  from time to time,  until  terminated by
either party at any time or for any reason.

         2. During the term of his/her  service as director,  the Director shall
devote his/her time, attention, skill, and efforts to the performance of his/her
duties for the Company.

         3. The  Company  shall  pay the  Director  during  the term of  his/her
service as a director hereunder, any fees payable to the Director for service as
a  director  (as the  Company  may from time to time  determine)  together  with
deferred  compensation  (payable as provided in paragraph 5 below),  unless such
amounts are forfeited pursuant to paragraph 7 below.

         4.  (a) The  Company  shall  credit to a book  reserve  (the  "Deferred
             Compensation  Account")  established  for this  purpose,  an amount
             ("Deferred   Compensation")  as  specified  on  a  form  ("Deferral
             Election  Form")  provided to the  Director by the Company for such
             purposes. For calendar years beginning on or after January 1, 2001,
             such  Deferral  Election Form must be completed by the Director and
             returned to the Company prior to the first day of any calendar year
             to  which  such  Deferral  Election  Form  relates  in  order to be
             effective. For calendar year 2000, such Deferral Election Form must
             be  completed  by the  Director  and  returned to the Company as of
             March 22,

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             2000,  the date of Board  adoption  of such  program in order to be
             effective for compensation earned and payable after such date.

             (b) Any such  amounts  credited  on the books of the Company to the
             Deferred  Compensation  Account  will be credited  with  investment
             earnings  and  losses as if such  amounts  had been  invested  in a
             certificate of deposit with a five-year maturity date on deposit at
             Gallup  Federal  Savings  Bank within 30 days of such credit to the
             Deferred  Compensation  Account  (the  "Investment  Option").   The
             Company may, if it chooses, actually invest assets equal to amounts
             in the Deferred  Compensation Account but shall not be obligated to
             do so, or to make any other  investment of its assets in connection
             with its obligation to pay Deferred Compensation hereunder.

             (c) The  Director  agrees  on  behalf  of  himself/herself  and the
             designated  beneficiary  to assume all risk in connection  with any
             fluctuation in value of any Deferred Compensation amounts.

             (d) Title to and beneficial ownership of any assets of the Company,
             whether  cash or  investments  which the Company may earmark to pay
             the Deferred Compensation hereunder,  shall at all times remain the
             property of the Company;  and the  Director and his/her  designated
             beneficiary shall not have any property interest  whatsoever in any
             specific assets of the Company.

             (e) The Company  shall notify the  Directors not less than once per
             calendar  year  as to  the  status  of  the  Deferred  Compensation
             Account,  including the number of shares of Common Stock previously
             credited to such account and any cash or account earnings  awaiting
             investment in Common Stock.

             (f)  If on  the  date  of  death  of a  Participant  no  designated
             beneficiary  has been  designated  in writing on a form  previously
             received  by  the  Company,  the  designated  beneficiary  of  such
             Participant shall be the estate of the Participant.

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          5. The amounts to be paid as Deferred Compensation,  unless  they  are
forfeited pursuant to paragraph 7 below, are as follows:

             (a) If the Director's service as a director hereunder is terminated
             on or after he/she  attains the age of 70, the Company shall pay to
             the Director (in either five annual installments, not to exceed the
             Director's  life  expectancy  or in one  lump  sum as such  payment
             schedule is specified in the Director's  Deferral Election Form) an
             amount equal to the value of the Director's  Deferred  Compensation
             Account as of such date. The Deferred  Compensation  amount payable
             to the Director  shall be  appropriately  increased or decreased to
             reflect the appreciation or depreciation in value of the Investment
             Option  and the net  income  or loss of the  Deferred  Compensation
             Account.  If the Director should die on or after the date set forth
             above, any unpaid balance will be paid to the Director's designated
             beneficiary in the same manner as set forth in this paragraph 5(a).

             (b) If the Director's service as a director hereunder is terminated
             for any reason other than death and  disability but before the date
             set forth in paragraph  5(a) above,  then the value of the Deferred
             Compensation Account: (i) shall be paid to the Director in the same
             manner  as set  forth in  paragraph  5(a)  above,  and  (ii)  shall
             continue  to be  invested  or held in  cash as the  Company  in its
             discretion  may determine  and no payments  shall be made until the
             date  set  forth  in  paragraph  5(a)  above.  Notwithstanding  the
             foregoing,  if prior to the date set forth in paragraph 5(a) above,
             the Director  should die, or the Director  should become  disabled,
             then  payments  shall  be made in the same  manner  and to the same
             extent as set forth in paragraph 5(c) below.

             (c) If the Director's  service as a director is terminated  because
             of  disability  or death  before  reaching  the  date set  forth in
             paragraph 5(a) above, while the Director is performing services for
             the Company,  then the Company  shall make payments to the Director
             in the event of the  Director's  disability,  or to the  Director's
             designated  beneficiary in the event of the Director's


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             death to the same extent as set forth in paragraph 5(a) above.

             (d) If the  Director  is  receiving  payments  from the Company and
             subsequently  dies  before  the  total  payments  are  made  by the
             Company,  then the  remaining  value of the  Deferred  Compensation
             Account  shall be  determined  as of the  date of the  death of the
             Director  and shall be paid as promptly as possible in one lump sum
             to the Director's designated beneficiary.

             (e)  The  Director's  designated  beneficiary  referred  to in this
             paragraph 5 may be designated  or changed by the Director,  without
             the consent of any prior designated beneficiary, on a form provided
             to the Director by the Company and delivered to the Company  before
             the  Director's  death.  If no such  beneficiary  shall  have  been
             designated  or if  no  designated  beneficiary  shall  survive  the
             Director, the payments payable under paragraph 5(d) above, shall be
             payable to the Director's estate.

             (f) The  Director  shall be  deemed  to have  become  disabled  for
             purposes of paragraph 5(c) above,  if the Company shall find on the
             basis of medical  evidence  satisfactory  to the  Company  that the
             Director is totally disabled,  mentally or physically,  so as to be
             prevented  from  engaging  in further  service as a director of the
             Company and that such  disability  will be permanent and continuous
             during the remainder of the Director's life.

             (g) The payment(s) to be made to the Director under paragraphs 5(a)
             and 5(c)  above,  shall  commence  on the  first  day of the  month
             following the date of the  Director's  termination  of service as a
             director,  and the  payment(s)  to be made  to the  Director  under
             paragraph 5(b) above,  shall commence on the first day of the month
             next  following  the date set forth in  paragraph  5(a) above.  The
             payment(s)  to be made  to the  Director's  designated  beneficiary
             under the  provisions of this  paragraph 5 shall commence on a date
             to be  selected  by the Company but within six months from the date
             of death of the Director.


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             (h) Notwithstanding  anything herein contained to the contrary, the
             Company  shall  have the right in its sole  discretion  to vary the
             manner  and time of making  the  distribution(s)  provided  in this
             paragraph 5 and may make such  distributions in lump sums or over a
             shorter or longer period of time as it may find appropriate.

          6. (a)  Nothing  contained  in  this  Agreement  and no  action  taken
             pursuant to the  provisions  of this  Agreement  shall create or be
             construed   to  create  a  trust  of  any  kind,   or  a  fiduciary
             relationship  between the Company and the Director,  the Director's
             designated  beneficiary or any other person. Any funds which may be
             invested under the provisions of this Agreement  shall continue for
             all purposes to be a part of the general  funds of the Company.  No
             person other than the Company shall, by virtue of the provisions of
             this Agreement,  have any interest in such funds. The Company shall
             not be under any  obligation  to use such  funds  solely to provide
             amounts  hereunder,  and no  representations  have been made to the
             Director  that  such  funds  can or will be  used  only to  provide
             amounts  hereunder.  To the extent that any person acquires a right
             to receive  payments  from the Company under this  Agreement,  such
             rights shall be no greater than the right of any unsecured  general
             creditor of the Company.

             (b) In order to facilitate the  accumulation  of funds necessary to
             meet the costs of the Company under this Agreement to make payments
             to a Director  or his or her  beneficiary  as and when the same are
             due under the Plan,  the Company may enter into a Trust  Agreement.
             The  Board of  Directors  of the  Company  shall  have the power to
             appoint and remove the Trustee  under such Trust  Agreement  in its
             sole discretion. The Company, in its discretion, may elect to place
             assets  of the  Company  into the Trust as may from time to time be
             approved  by the  Board of  Directors  of the  Company  in its sole
             discretion.  To the  extent  that the  assets of said Trust are not
             sufficient to pay benefits  accrued under this Plan,  such payments
             shall be made from the general assets of the Company.

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         7.  Notwithstanding  anything  contained  herein  to the  contrary,  no
payment of any unpaid  installments of Deferred  Compensation shall be made, and
all rights  under this  Agreement of the  Director,  the  Director's  designated
beneficiary,  executors,  or  administrators,  or any other  person,  to receive
payments thereof shall be forfeited if the Director shall engage,  as determined
by the Company, in any activity or conduct inimical to the best interests of the
Company.

         8. The right of the  Director  or any other  person to the  payment  of
Deferred  Compensation  or other  amounts  under  this  Agreement  shall  not be
assigned,  transferred,  pledged, or encumbered except by will or by the laws of
descent and distribution.

         9. If the  Company  shall  find that any  person to whom any  amount is
payable under this  Agreement is unable to care for his or her personal  affairs
because of illness or accident,  or is a minor,  any payment due (unless a prior
claim therefor shall have been made by a duly appointed guardian,  committee, or
other legal  representative)  may be paid to the spouse, a child, a parent, or a
brother  or  sister,  or to any person  deemed by the  Company to have  incurred
expense  for such  person  otherwise  entitled  to  payment,  in such manner and
proportions as the Company may determine.  Any such payments shall be a complete
discharge of the liabilities of the Company under this Agreement.

         10. Nothing  contained herein shall be construed as conferring upon the
Director  the right to continue in his/her  service as a director of the Company
or in any other capacity.

         11. Any Deferred Compensation payable under this Agreement shall not be
deemed  as salary or other  compensation  to the  Director  for the  purpose  of
computing  benefits to which the Director may be entitled  under any  retirement
plan or other  arrangement  of the Company for the benefit of its  employees  or
directors.

         12.  The  Company  shall have full power and  authority  to  interpret,
construe,  and administer this Agreement and the Company's  interpretations  and
construction  thereof,  and actions  thereunder,  including any valuation of the
Deferred  Compensation  Account, or the amount or recipient of the payment to be
made under this  Agreement,  shall be binding and  conclusive on all persons for

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all purposes. The directors of the Company shall not be liable to any person for
any  action  taken  or  omitted  in  connection  with  the   interpretation  and
administration  of this  Agreement  unless  attributable  to his/her own willful
misconduct or lack of good faith.

         13. The Company may appoint an administrative  committee  ("Committee")
to provide administrative services or perform duties required by this Agreement.
The Committee shall have only the authority granted to it by the Company.

         14. This  Agreement  shall be binding  upon and inure to the benefit of
the Company,  its  successors,  and assigns and the Director and the  Director's
heirs, executors, administrators, and legal representatives.

         15. This Agreement  shall be construed in accordance  with and governed
by the laws of the State of New Mexico.

         16.  No right or  benefit  under  the  Agreement  shall be  subject  to
anticipation,  alienation, sale, assignment, pledge, encumbrance, or charge, and
any attempt to anticipate alienate,  sell, assign,  pledge,  encumber, or charge
the same shall be void. No right or benefit under this Agreement shall be liable
for or  subject  to the debts,  contracts,  liabilities,  or torts of the person
entitled  to  such  benefits.  If  the  Director  or the  Director's  designated
beneficiary  should become  bankrupt,  or attempt to anticipate,  sell,  assign,
pledge,  encumber, or charge any right or benefit hereunder,  then such right or
benefit shall, in the discretion of the Committee,  cease and terminate,  and in
such event the  Company  may hold or apply the same or any part  thereof for the
benefit of the  Director or  beneficiary,  his/her  spouse,  children,  or other
dependents,  or any of  them  in  such  manner  and in  such  proportion  as the
Committee may deem proper.

         17.  The  Company's  Board of  Directors  may amend or  terminate  this
Agreement at any time,  provided  however,  that no  termination or amendment of
this Agreement shall, without the consent of the Director,  adversely affect the
Director's right to any amounts previously deferred by the Director and credited
to the Deferred Compensation Account.

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         18. The  Company  shall  bear all costs and  expenses  associated  with
administration of the Agreement.  No contributions to the Deferred  Compensation
Account or any Trust under this Agreement will be permissible by the Director.


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         IN WITNESS  WHEREOF,  the  Company  has  caused  this  Agreement  to be
executed  by its duly  authorized  officer and the  Director  has  hereunto  set
his/her hand and seal as of the date first above written.



                                           Gallup Federal Savings Bank (Company)



                                           By:
----------------------------------               -------------------------------
         Date                                Its _______________________________



                                           "DIRECTOR"



                                                 -------------------------------



                                           By:
----------------------------------               -------------------------------
         Date



                                           By:
----------------------------------               -------------------------------
         Date                              Witness



<PAGE>
                               GFSB BANCORP, INC.
                    DIRECTORS DEFERRED COMPENSATION AGREEMENT

         THIS DIRECTOR  DEFERRED  COMPENSATION  AGREEMENT (the "Agreement") made
this 22nd day of March, 2000, by and between GFSB Bancorp, Inc. (the "Company"),
a  corporation   organized   under  the  laws  of  the  State  of  Delaware  and
__________________________ (the "Director").

         WITNESSETH THAT:

         In consideration of the agreements contained herein, the parties hereto
agree as follows:

         1. The  Company  agrees to permit the  Director to serve as a member of
its Board of  Directors,  and the  Director  agrees to serve the Company in such
capacity as the Company may  designate  from time to time,  until  terminated by
either party at any time or for any reason.

         2. During the term of his/her  service as director,  the Director shall
devote his/her time, attention, skill, and efforts to the performance of his/her
duties for the Company.

         3. The  Company  shall  pay the  Director  during  the term of  his/her
service as a director hereunder, any fees payable to the Director for service as
a  director  (as the  Company  may from time to time  determine)  together  with
deferred  compensation  (payable as provided in paragraph 5 below),  unless such
amounts are forfeited pursuant to paragraph 7 below.

         4.  (a) The  Company  shall  credit to a book  reserve  (the  "Deferred
             Compensation  Account")  established  for this  purpose,  an amount
             ("Deferred   Compensation")  as  specified  on  a  form  ("Deferral
             Election  Form")  provided to the  Director by the Company for such
             purposes. For calendar years beginning on or after January 1, 2001,
             such  Deferral  Election Form must be completed by the Director and
             returned to the Company prior to the first day of any calendar year
             to  which  such  Deferral  Election  Form  relates  in  order to be
             effective. For calendar year 2000, such Deferral Election Form must
             be  completed  by the  Director  and  returned to the Company as of
             March 22,

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             2000,  the date of Board  adoption  of such  program in order to be
             effective for compensation earned and payable after such date.

             (b) Any such  amounts  credited  on the books of the Company to the
             Deferred  Compensation  Account  will be credited  with  investment
             earnings  and  losses as if such  amounts  had been  invested  in a
             certificate of deposit with a five-year maturity date on deposit at
             Gallup  Federal  Savings  Bank within 30 days of such credit to the
             Deferred  Compensation  Account  (the  "Investment  Option").   The
             Company may, if it chooses, actually invest assets equal to amounts
             in the Deferred  Compensation Account but shall not be obligated to
             do so, or to make any other  investment of its assets in connection
             with its obligation to pay Deferred Compensation hereunder.

             (c) The  Director  agrees  on  behalf  of  himself/herself  and the
             designated  beneficiary  to assume all risk in connection  with any
             fluctuation in value of any Deferred Compensation amounts.

             (d) Title to and beneficial ownership of any assets of the Company,
             whether  cash or  investments  which the Company may earmark to pay
             the Deferred Compensation hereunder,  shall at all times remain the
             property of the Company;  and the  Director and his/her  designated
             beneficiary shall not have any property interest  whatsoever in any
             specific assets of the Company.

             (e) The Company  shall notify the  Directors not less than once per
             calendar  year  as to  the  status  of  the  Deferred  Compensation
             Account,  including the number of shares of Common Stock previously
             credited to such account and any cash or account earnings  awaiting
             investment in Common Stock.

             (f)  If on  the  date  of  death  of a  Participant  no  designated
             beneficiary  has been  designated  in writing on a form  previously
             received  by  the  Company,  the  designated  beneficiary  of  such
             Participant shall be the estate of the Participant.

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          5. The amounts to be paid as Deferred Compensation,  unless  they  are
forfeited pursuant to paragraph 7 below, are as follows:

             (a) If the Director's service as a director hereunder is terminated
             on or after he/she  attains the age of 70, the Company shall pay to
             the Director (in either five annual installments, not to exceed the
             Director's  life  expectancy  or in one  lump  sum as such  payment
             schedule is specified in the Director's  Deferral Election Form) an
             amount equal to the value of the Director's  Deferred  Compensation
             Account as of such date. The Deferred  Compensation  amount payable
             to the Director  shall be  appropriately  increased or decreased to
             reflect the appreciation or depreciation in value of the Investment
             Option  and the net  income  or loss of the  Deferred  Compensation
             Account.  If the Director should die on or after the date set forth
             above, any unpaid balance will be paid to the Director's designated
             beneficiary in the same manner as set forth in this paragraph 5(a).

             (b) If the Director's service as a director hereunder is terminated
             for any reason other than death and  disability but before the date
             set forth in paragraph  5(a) above,  then the value of the Deferred
             Compensation Account: (i) shall be paid to the Director in the same
             manner  as set  forth in  paragraph  5(a)  above,  and  (ii)  shall
             continue  to be  invested  or held in  cash as the  Company  in its
             discretion  may determine  and no payments  shall be made until the
             date  set  forth  in  paragraph  5(a)  above.  Notwithstanding  the
             foregoing,  if prior to the date set forth in paragraph 5(a) above,
             the Director  should die, or the Director  should become  disabled,
             then  payments  shall  be made in the same  manner  and to the same
             extent as set forth in paragraph 5(c) below.

             (c) If the Director's  service as a director is terminated  because
             of  disability  or death  before  reaching  the  date set  forth in
             paragraph 5(a) above, while the Director is performing services for
             the Company,  then the Company  shall make payments to the Director
             in the event of the  Director's  disability,  or to the  Director's
             designated  beneficiary in the event of the Director's


                                     Page 3
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             death to the same extent as set forth in paragraph 5(a) above.

             (d) If the  Director  is  receiving  payments  from the Company and
             subsequently  dies  before  the  total  payments  are  made  by the
             Company,  then the  remaining  value of the  Deferred  Compensation
             Account  shall be  determined  as of the  date of the  death of the
             Director  and shall be paid as promptly as possible in one lump sum
             to the Director's designated beneficiary.

             (e)  The  Director's  designated  beneficiary  referred  to in this
             paragraph 5 may be designated  or changed by the Director,  without
             the consent of any prior designated beneficiary, on a form provided
             to the Director by the Company and delivered to the Company  before
             the  Director's  death.  If no such  beneficiary  shall  have  been
             designated  or if  no  designated  beneficiary  shall  survive  the
             Director, the payments payable under paragraph 5(d) above, shall be
             payable to the Director's estate.

             (f) The  Director  shall be  deemed  to have  become  disabled  for
             purposes of paragraph 5(c) above,  if the Company shall find on the
             basis of medical  evidence  satisfactory  to the  Company  that the
             Director is totally disabled,  mentally or physically,  so as to be
             prevented  from  engaging  in further  service as a director of the
             Company and that such  disability  will be permanent and continuous
             during the remainder of the Director's life.

             (g) The payment(s) to be made to the Director under paragraphs 5(a)
             and 5(c)  above,  shall  commence  on the  first  day of the  month
             following the date of the  Director's  termination  of service as a
             director,  and the  payment(s)  to be made  to the  Director  under
             paragraph 5(b) above,  shall commence on the first day of the month
             next  following  the date set forth in  paragraph  5(a) above.  The
             payment(s)  to be made  to the  Director's  designated  beneficiary
             under the  provisions of this  paragraph 5 shall commence on a date
             to be  selected  by the Company but within six months from the date
             of death of the Director.


                                     Page 4
<PAGE>

             (h) Notwithstanding  anything herein contained to the contrary, the
             Company  shall  have the right in its sole  discretion  to vary the
             manner  and time of making  the  distribution(s)  provided  in this
             paragraph 5 and may make such  distributions in lump sums or over a
             shorter or longer period of time as it may find appropriate.

          6. (a)  Nothing  contained  in  this  Agreement  and no  action  taken
             pursuant to the  provisions  of this  Agreement  shall create or be
             construed   to  create  a  trust  of  any  kind,   or  a  fiduciary
             relationship  between the Company and the Director,  the Director's
             designated  beneficiary or any other person. Any funds which may be
             invested under the provisions of this Agreement  shall continue for
             all purposes to be a part of the general  funds of the Company.  No
             person other than the Company shall, by virtue of the provisions of
             this Agreement,  have any interest in such funds. The Company shall
             not be under any  obligation  to use such  funds  solely to provide
             amounts  hereunder,  and no  representations  have been made to the
             Director  that  such  funds  can or will be  used  only to  provide
             amounts  hereunder.  To the extent that any person acquires a right
             to receive  payments  from the Company under this  Agreement,  such
             rights shall be no greater than the right of any unsecured  general
             creditor of the Company.

             (b) In order to facilitate the  accumulation  of funds necessary to
             meet the costs of the Company under this Agreement to make payments
             to a Director  or his or her  beneficiary  as and when the same are
             due under the Plan,  the Company may enter into a Trust  Agreement.
             The  Board of  Directors  of the  Company  shall  have the power to
             appoint and remove the Trustee  under such Trust  Agreement  in its
             sole discretion. The Company, in its discretion, may elect to place
             assets  of the  Company  into the Trust as may from time to time be
             approved  by the  Board of  Directors  of the  Company  in its sole
             discretion.  To the  extent  that the  assets of said Trust are not
             sufficient to pay benefits  accrued under this Plan,  such payments
             shall be made from the general assets of the Company.

                                     Page 5
<PAGE>


         7.  Notwithstanding  anything  contained  herein  to the  contrary,  no
payment of any unpaid  installments of Deferred  Compensation shall be made, and
all rights  under this  Agreement of the  Director,  the  Director's  designated
beneficiary,  executors,  or  administrators,  or any other  person,  to receive
payments thereof shall be forfeited if the Director shall engage,  as determined
by the Company, in any activity or conduct inimical to the best interests of the
Company.

         8. The right of the  Director  or any other  person to the  payment  of
Deferred  Compensation  or other  amounts  under  this  Agreement  shall  not be
assigned,  transferred,  pledged, or encumbered except by will or by the laws of
descent and distribution.

         9. If the  Company  shall  find that any  person to whom any  amount is
payable under this  Agreement is unable to care for his or her personal  affairs
because of illness or accident,  or is a minor,  any payment due (unless a prior
claim therefor shall have been made by a duly appointed guardian,  committee, or
other legal  representative)  may be paid to the spouse, a child, a parent, or a
brother  or  sister,  or to any person  deemed by the  Company to have  incurred
expense  for such  person  otherwise  entitled  to  payment,  in such manner and
proportions as the Company may determine.  Any such payments shall be a complete
discharge of the liabilities of the Company under this Agreement.

         10. Nothing  contained herein shall be construed as conferring upon the
Director  the right to continue in his/her  service as a director of the Company
or in any other capacity.

         11. Any Deferred Compensation payable under this Agreement shall not be
deemed  as salary or other  compensation  to the  Director  for the  purpose  of
computing  benefits to which the Director may be entitled  under any  retirement
plan or other  arrangement  of the Company for the benefit of its  employees  or
directors.

         12.  The  Company  shall have full power and  authority  to  interpret,
construe,  and administer this Agreement and the Company's  interpretations  and
construction  thereof,  and actions  thereunder,  including any valuation of the
Deferred  Compensation  Account, or the amount or recipient of the payment to be
made under this  Agreement,  shall be binding and  conclusive on all persons for

                                     Page 6
<PAGE>

all purposes. The directors of the Company shall not be liable to any person for
any  action  taken  or  omitted  in  connection  with  the   interpretation  and
administration  of this  Agreement  unless  attributable  to his/her own willful
misconduct or lack of good faith.

         13. The Company may appoint an administrative  committee  ("Committee")
to provide administrative services or perform duties required by this Agreement.
The Committee shall have only the authority granted to it by the Company.

         14. This  Agreement  shall be binding  upon and inure to the benefit of
the Company,  its  successors,  and assigns and the Director and the  Director's
heirs, executors, administrators, and legal representatives.

         15. This Agreement  shall be construed in accordance  with and governed
by the laws of the State of New Mexico.

         16.  No right or  benefit  under  the  Agreement  shall be  subject  to
anticipation,  alienation, sale, assignment, pledge, encumbrance, or charge, and
any attempt to anticipate alienate,  sell, assign,  pledge,  encumber, or charge
the same shall be void. No right or benefit under this Agreement shall be liable
for or  subject  to the debts,  contracts,  liabilities,  or torts of the person
entitled  to  such  benefits.  If  the  Director  or the  Director's  designated
beneficiary  should become  bankrupt,  or attempt to anticipate,  sell,  assign,
pledge,  encumber, or charge any right or benefit hereunder,  then such right or
benefit shall, in the discretion of the Committee,  cease and terminate,  and in
such event the  Company  may hold or apply the same or any part  thereof for the
benefit of the  Director or  beneficiary,  his/her  spouse,  children,  or other
dependents,  or any of  them  in  such  manner  and in  such  proportion  as the
Committee may deem proper.

         17.  The  Company's  Board of  Directors  may amend or  terminate  this
Agreement at any time,  provided  however,  that no  termination or amendment of
this Agreement shall, without the consent of the Director,  adversely affect the
Director's right to any amounts previously deferred by the Director and credited
to the Deferred Compensation Account.

                                     Page 7
<PAGE>

         18. The  Company  shall  bear all costs and  expenses  associated  with
administration of the Agreement.  No contributions to the Deferred  Compensation
Account or any Trust under this Agreement will be permissible by the Director.


                                     Page 8
<PAGE>



         IN WITNESS  WHEREOF,  the  Company  has  caused  this  Agreement  to be
executed  by its duly  authorized  officer and the  Director  has  hereunto  set
his/her hand and seal as of the date first above written.



                                           GFSB Bancorp, Inc. (Company)



                                           By:
----------------------------------               -------------------------------
         Date                                Its _______________________________



                                           "DIRECTOR"



                                                 -------------------------------



                                           By:
----------------------------------               -------------------------------
         Date



                                           By:
----------------------------------               -------------------------------
         Date                              Witness