Exhibit 10.2
   LEASE AGREEMENT
 by and between
 SANDPOINT CENTER, LLC,
an Idaho limited liability company,
and SANDPOINT CENTER II, LLC,
an Idaho limited liability company
 collectively, as Landlord
 and
 PANHANDLE STATE BANK, an Idaho state charted bank
 as Tenant




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TABLE OF CONTENTS
 Page No.SECTION 1  FUNDAMENTAL TERMS
    
    
    11.1
    
    
    Building
    
    
    11.2
    
    
    Land
    
    
    11.3
    
    
    Premises
    
    
    11.4
    
    
    Commencement Date
    
    
    11.5
    
    
    Base Term
    
    
    11.6
    
    
    Extension Options
    
    
    11.7
    
    
    Minimum Rent
    
    
    11.8
    
    
    Use
    
    
    11.9
    
    
    Notice Addresses
    
    
    21.10
    
    
    Exhibits
    
    
    2SECTION 2  PREMISES
    
    
    22.1
    
    
    Lease to Tenant
    
    
    22.2
    
    
    Condition of Premises
    
    
    2SECTION 3  TERM
    
    
    23.1
    
    
    Lease Term
    
    
    23.2
    
    
    Extension Options
    
    
    3SECTION 4  RENT
    
    
    34.1
    
    
    Minimum Rent
    
    
    34.2
    
    
    Payment of Minimum Rent
    
    
    44.3
    
    
    Net Lease
    
    
    5SECTION 5  TAXES AND UTILITIES; CAPITAL RESERVE ACCOUNT
    
    
    55.1
    
    
    Real Property Taxes
    
    
    55.2
    
    
    Payment in Installments
    
    
    55.3
    
    
    Right to Contest
    
    
    65.4
    
    
    Personal Property Taxes
    
    
    65.5
    
    
    Utility Charges
    
    
    65.6
    
    
    Assessments
    
    
    65.7
    
    
    Capital Reserve Account
    
    
    6SECTION 6  CONDUCT OF BUSINESS
    
    
    76.1
    
    
    Use of Premises
    
    
    76.2
    
    
    Liens and Encumbrances
    
    
    76.3
    
    
    Hazardous Substances
    
    
    76.4
    
    
    Signs
    
    
    8SECTION 7  LETTER OF CREDIT
    
    
    8SECTION 8  MAINTENANCE OF PREMISES
    
    
    9SECTION 9  ALTERATIONS
    
    
    10SECTION 10  SURRENDER OF PREMISES
    
    
    1010.1
    
    
    Condition of Premises
    
    
    1010.2
    
    
    Removal at Termination
    
    
    10SECTION 11  INSURANCE AND INDEMNITY
    
    
    1011.1
    
    
    Liability Insurance
    
    
    1011.2
    
    
    Casualty Insurance
    
    
    11
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Page No.11.3
    
    
    Insurance Policy Requirements
    
    
    1111.4
    
    
    Restoration of Damage
    
    
    1211.5
    
    
    Form of Insurance
    
    
    1211.6
    
    
    Indemnification
    
    
    12SECTION 12  TRANSFER AND SUBLETTING
    
    
    1312.1
    
    
    Transfer
    
    
    1312.2
    
    
    Subleasing
    
    
    1312.3
    
    
    Sublease Recognition
    
    
    1312.4
    
    
    Recognition Agreement
    
    
    1512.5
    
    
    Landlord Put Right
    
    
    15SECTION 13  EMINENT DOMAIN
    
    
    1513.1
    
    
    Substantial Taking
    
    
    1513.2
    
    
    Partial Taking
    
    
    1513.3
    
    
    Transfer in Lieu of Condemnation
    
    
    16SECTION 14  DEFAULT
    
    
    1614.1
    
    
    Payment Default
    
    
    1614.2
    
    
    Non-Monetary Default
    
    
    1614.3
    
    
    Credit Default
    
    
    16SECTION 15  REMEDIES
    
    
    1615.1
    
    
    Termination; Retake Possession
    
    
    1615.2
    
    
    Draw Upon Letter of Credit
    
    
    1715.3
    
    
    Damages for Default
    
    
    1715.4
    
    
    Continuation of Lease
    
    
    1715.5
    
    
    Receipt of Moneys
    
    
    1715.6
    
    
    No Waiver
    
    
    1815.7
    
    
    Tenants Late Payments; Late Charges
    
    
    1815.8
    
    
    Mitigation
    
    
    18SECTION 16  ACCESS BY LANDLORD
    
    
    18SECTION 17  SUBORDINATION; ESTOPPEL
    
    
    1917.1
    
    
    Subordination
    
    
    1917.2
    
    
    Estoppel
    
    
    19SECTION 18  QUIET ENJOYMENT
    
    
    19SECTION 19  TENANT FINANCING
    
    
    19SECTION 20  MISCELLANEOUS
    
    
    1920.1
    
    
    Notices
    
    
    1920.2
    
    
    Successors or Assigns
    
    
    2020.3
    
    
    Brokerage Commissions
    
    
    2020.4
    
    
    Partial Invalidity
    
    
    2020.5
    
    
    Recording
    
    
    2020.6
    
    
    Holding Over
    
    
    2020.7
    
    
    Legal Expenses
    
    
    2020.8
    
    
    Force Majeure
    
    
    2020.9
    
    
    Authority
    
    
    2120.10
    
    
    Headings
    
    
    2120.11
    
    
    Gender
    
    
    2120.12
    
    
    Counterparts
    
    
    21
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Page No.20.13
    
    
    Entire Agreement; Amendments
    
    
    2120.14
    
    
    Governing Law
    
    
    21SECTION 21  PURCHASE OPTION
    
    
    2121.1
    
    
    Option to Purchase
    
    
    2121.2
    
    
    Title Report
    
    
    2121.3
    
    
    Purchase Price
    
    
    2221.4
    
    
    Closing Procedure
    
    
    22
 EXHIBITS
 Exhibit A-1
    
    Legal Description  Sandpoint CenterExhibit A-2
    
    Legal Description  Parking LotExhibit B
    
    Letter of CreditExhibit C
    
    Memorandum of Lease
 -iii-




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LEASE AGREEMENT
 (Lease) Landlord), (Tenant).
   Building
 Land Land Exhibit A-1 Exhibit
A-2
 Premises Premises
 Commencement Date
 Base Term
 Extension Options
 Minimum Rent
 Use
 -1-




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Notice Addresses
 Landlord:
    
    Sandpoint Center, LLCand to:
    
    Sandpoint Center II, LLCTenant:
    
    Panhandle State Bank
414 Church Street
P.O. Box 967
Sandpoint, ID 83864
 Exhibits
 Exhibit A-1
 Exhibit A-2
 Exhibit B
 Exhibit C
  Lease to Tenant
 Condition of Premises ICB
  Lease Term Expiration Date). Lease Year Lease Year
 -2-




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Extension Options Option Period Option Notice Term
  Minimum Rent
 Base Term Minimum Rent
 Option Periods Trigger Date"
 -3-




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Adjustment at Sixth and Sixteenth Lease Years of Base Term and Sixth Lease Year of
Option Periods Adjustment Date) CPI)
 Eleventh Lease Year Adjustment
 Payment of Minimum Rent minus
 Annual Loan Payments
 -4-




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PSB Loan
 PSB Loan Documents
 Net Lease Additional Rent). Rent
  Real Property Taxes Taxes). Excluded Taxes),
 Payment in Installments
 -5-




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Right to Contest
 Personal Property Taxes
 Utility Charges
 Assessments
 Capital Reserve Account Capital Reserve Account
 -6-




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Use of Premises
 Liens and Encumbrances
 Hazardous Substances Hazardous
Substances
 -7-




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Signs
  Letter of Credit
 Lease Year:
    
    Letter of Credit:Second
    
    $
    2,634,000.00Third
    
    $
    2,068,000.00Fourth
    
    $
    1,502,000.00Fifth
    
    $
    936,000.00Sixth
    
    $
    511,000.00Seventh
    
    $
    166,000.00Eighth
    
    $
    0.00
 Exhibit B
 -8-




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-9-




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Condition of Premises
 Removal at Termination
  Liability Insurance
 -10-




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Casualty Insurance
 Insurance Policy Requirements
 Insurers
 Insureds
 Primary Coverage
 Contractual Liability
 Notice to Landlord
 Deliveries to Landlord
 -11-




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No Representation
 Waiver of Subrogation
 Restoration of Damage
 Form of Insurance
 Indemnification
   -12-




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Transfer Transfer) Permitted Transfer
 Subleasing
 Sublease Recognition Recognition
Date), Material
Sublease
  -13-




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Sublease NNN/SF Rent) Master Lease NNN/SF Rent
         -14-




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Recognition Agreement
 Landlord Put Right Majority Sale) Put Right"). Put Notice)
  Substantial Taking
 Partial Taking
 -15-




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Transfer in Lieu of Condemnation
  Event of Default
 Payment Default Payment Default
 Non-Monetary Default Non-Monetary Default
 Credit Default Credit Default Bankruptcy Laws);
   Termination; Retake Possession
 -16-




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Draw Upon Letter of Credit
 Damages for Default
 Continuation of Lease
 Receipt of Moneys
 -17-




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No Waiver
 Tenants Late Payments; Late Charges
 Mitigation.
   -18-




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Subordination
 Estoppel
      Notices
 -19-




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Successors or Assigns
 Brokerage Commissions
 Partial Invalidity
 Recording Exhibit C
 Holding Over
 Legal Expenses
 Force Majeure
 -20-




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Authority
 Headings
 Gender
 Counterparts
 Entire Agreement; Amendments
 Governing Law
  Option to Purchase Option). Option Notice)
 Title Report Title Company^)
 -21-




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Purchase Price Purchase Price
 Closing Procedure
 Closing Date Closing Date);
 Prorations
 Manner and Place of Closing
 Closing
  Deed),
   -22-




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Like-Kind Exchange
 Extension of Time
 [Signatures on following page]
 -23-




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LANDLORD:
 
  STATE OF ___________
    
    )) ss.COUNTY OF _________
    
    )
    Signature Print NameNOTARY PUBLIC in and for the State of
_______, residing at __________.
My commission expires __________. -24-




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LANDLORD:
 
  [Acknowledgement on following page]
 -25-




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[ATTACH CALIFORNIA ACKNOWLEDGEMENT]
 -26-




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TENANT:
 
 Curt Hecker, Chief Executive Officer STATE OF IDAHO
    
    )) ss.COUNTY OF BONNER
    
    )
    Signature Print NameNOTARY PUBLIC in and for the State of
Idaho, residing at _______________.
My commission expires  ___________. -27-