Document:

EXHIBIT 10.9

                               GUARANTEE AGREEMENT

                             UNITED FINANCIAL CORP.

                            Dated as of July 16, 2001
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                                TABLE OF CONTENTS

                                                                            Page

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation ................................    1

                                   ARTICLE II
                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

SECTION 2.1 Powers and Duties of the Guarantee Trustee ....................    4
SECTION 2.2 Certain Rights of Guarantee Trustee ...........................    5
SECTION 2.3 Not Responsible for Recitals or Issuance of Guarantee .........    7
SECTION 2.4 Events of Default; Waiver .....................................    7
SECTION 2.5 Events of Default; Notice .....................................    7

                                   ARTICLE III
                                GUARANTEE TRUSTEE

SECTION 3.1 Guarantee Trustee; Eligibility ................................    8
SECTION 3.2 Appointment, Removal and Resignation of Guarantee Trustee .....    9

                                   ARTICLE IV
                                    GUARANTEE

SECTION 4.1 Guarantee .....................................................    9
SECTION 4.2 Waiver of Notice and Demand ...................................   10
SECTION 4.3 Obligations Not Affected ......................................   10
SECTION 4.4 Rights of Holders .............................................   11
SECTION 4.5 Guarantee of Payment ..........................................   11
SECTION 4.6 Subrogation ...................................................   11
SECTION 4.7 Independent Obligations .......................................   12
SECTION 4.8 Enforcement ...................................................   12

                                    ARTICLE V
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 5.1 Limitation of Transactions ....................................   12
SECTION 5.2 Ranking .......................................................   13

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                                   ARTICLE VI
                                   TERMINATION

SECTION 6.1 Termination ...................................................   13

                                   ARTICLE VII
                                 INDEMNIFICATION

SECTION 7.1 Exculpation ...................................................   13
SECTION 7.2 Indemnification ...............................................   14
SECTION 7.3 Compensation; Reimbursement of Expenses .......................   15

                                  ARTICLE VIII
                                  MISCELLANEOUS

SECTION 8.1 Successors and Assigns ........................................   15
SECTION 8.2 Amendments ....................................................   16
SECTION 8.3 Notices .......................................................   16
SECTION 8.4 Benefit .......................................................   17
SECTION 8.5 Governing Law .................................................   17
SECTION 8.6 Counterparts ..................................................   17

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                               GUARANTEE AGREEMENT

            This GUARANTEE AGREEMENT (the "Guarantee"), dated as of July 16,
2001, is executed and delivered by United Financial Corp., a bank holding
company incorporated in Minnesota (the "Guarantor"), and The Bank of New York,
as trustee (the "Guarantee Trustee"), for the benefit of the Holders (as defined
herein) from time to time of the Capital Securities (as defined herein) of
United Financial - Montana Capital Trust I, a Delaware statutory business trust
(the "Issuer").

            WHEREAS, pursuant to an Amended and Restated Declaration of Trust
(the "Declaration"), dated as of July 16, 2001, among the trustees named therein
of the Issuer, United Financial Corp., as sponsor, and the Holders from time to
time of undivided beneficial interests in the assets of the Issuer, the Issuer
is issuing on the date hereof securities, having an aggregate liquidation amount
of up to $3,000,000, designated the Floating Rate TRUPS(R) (the "Capital
Securities");

            WHEREAS, as incentive for the Holders to purchase the Capital
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Guarantee, to pay to the Holders of Capital
Securities the Guarantee Payments (as defined herein) and to make certain other
payments on the terms and conditions set forth herein; and

            NOW, THEREFORE, in consideration of the purchase by each Holder of
the Capital Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Guarantee for the
benefit of the Holders.

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation

In this Guarantee, unless the context otherwise requires:

            (a) capitalized terms used in this Guarantee but not defined in the
      preamble above have the respective meanings assigned to them in this
      Section 1.1;

            (b) a term defined anywhere in this Guarantee has the same meaning
      throughout;

            (c) all references to "the Guarantee" or "this Guarantee" are to
      this Guarantee as modified, supplemented or amended from time to time;

            (d) all references in this Guarantee to Articles and Sections are to
      Articles and Sections of this Guarantee, unless otherwise specified;

            (e) terms defined in the Declaration as at the date of execution of
      this Guarantee have the same meanings when used in this Guarantee, unless
      otherwise defined in this Guarantee or unless the context otherwise
      requires; and

            (f) a reference to the singular includes the plural and vice versa.

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            "Beneficiaries" means any Person to whom the Issuer is or hereafter
becomes indebted or liable.

            "Corporate Trust Office" means the office of the Guarantee Trustee
at which the corporate trust business of the Guarantee Trustee shall, at any
particular time, be principally administered, which office at the date of
execution of this Guarantee Agreement is located at 101 Barclay Street, Floor
21W, New York, NY 10286.

            "Covered Person" means any Holder of Capital Securities.

            "Debentures" means the junior subordinated debentures of United
Financial Corp., designated the Floating Rate Junior Subordinated Deferrable
Interest Debentures due 2031, held by the Institutional Trustee (as defined in
the Declaration) of the Issuer.

            "Event of Default" has the meaning set forth in Section 2.4.

            "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Capital Securities, to the extent not
paid or made by the Issuer: (i) any accrued and unpaid Distributions (as defined
in the Declaration) which are required to be paid on such Capital Securities to
the extent the Issuer shall have funds available in the Property Account (as
defined in the Declaration) therefor at such time, (ii) the Redemption Price (as
defined in the Indenture) to the extent the Issuer has funds available in the
Property Account therefor at such time, with respect to any Capital Securities
called for redemption by the Issuer, (iii) the Special Redemption Price (as
defined in the Indenture) to the extent the Issuer has funds available in the
Property Account therefor at such time, with respect to Capital Securities
called for redemption upon the occurrence of a Special Event (as defined in the
Indenture), and (iv) upon a voluntary or involuntary liquidation, dissolution,
winding-up or termination of the Issuer (other than in connection with the
distribution of Debentures to the Holders of the Capital Securities in exchange
therefor as provided in the Declaration), the lesser of (a) the aggregate of the
liquidation amount and all accrued and unpaid Distributions on the Capital
Securities to the date of payment, to the extent the Issuer shall have funds
available in the Property Account therefor at such time, and (b) the amount of
assets of the Issuer remaining available for distribution to Holders in
liquidation of the Issuer after satisfaction of liabilities to creditors of the
Issuer as required by applicable law (in either case, the "Liquidation
Distribution").

            "Guarantee Trustee" means The Bank of New York , until a Successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Guarantee and thereafter means each such Successor
Guarantee Trustee.

            "Holder" means any holder, as registered on the books and records of
the Issuer, of any Capital Securities; provided, however, that, in determining
whether the holders of the requisite percentage of Capital Securities have given
any request, notice, consent or waiver hereunder, "Holder" shall not include the
Guarantor or any Affiliate of the Guarantor.

            "Indemnified Person" means the Guarantee Trustee, any Affiliate of
the Guarantee Trustee, or any officers, directors, shareholders, members,
partners, employees, representatives, nominees, custodians or agents of the
Guarantee Trustee.

            "Indenture" means the Indenture dated as of July 16, 2001, between
the Guarantor and The Bank of New York, not in its individual capacity but
solely as trustee, and any indenture

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supplemental thereto pursuant to which the Debentures are to be issued to the
Institutional Trustee of the Issuer.

            "Liquidation Distribution" has the meaning set forth in the
definition of "Guarantee Payments" herein.

            "Majority in liquidation amount of the Capital Securities" means
Holder(s) of outstanding Capital Securities, voting together as a class, but
separately from the holders of Common Securities, of more than 50% of the
aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to,
but excluding, the date upon which the voting percentages are determined) of all
Capital Securities then outstanding.

            "Obligations" means any costs, expenses or liabilities (but not
including liabilities related to taxes) of the Issuer, other than obligations of
the Issuer to pay to holders of any Trust Securities the amounts due such
holders pursuant to the terms of the Trust Securities.

            "Officer's Certificate" means, with respect to any Person, a
certificate signed by one Authorized Officer of such Person. Any Officer's
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Guarantee shall include:

            (a) a statement that each officer signing the Officer's Certificate
      has read the covenant or condition and the definitions relating thereto;

            (b) a brief statement of the nature and scope of the examination or
      investigation undertaken by each officer in rendering the Officer's
      Certificate;

            (c) a statement that each such officer has made such examination or
      investigation as, in such officer's opinion, is necessary to enable such
      officer to express an informed opinion as to whether or not such covenant
      or condition has been complied with; and

            (d) a statement as to whether, in the opinion of each such officer,
      such condition or covenant has been complied with.

            "Person" means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

            "Responsible Officer" means, with respect to the Guarantee Trustee,
any officer within the Corporate Trust Office of the Guarantee Trustee including
any Vice President, Assistant Vice President, Secretary, Assistant Secretary or
any other officer of the Guarantee Trustee customarily performing functions
similar to those performed by any of the above designated officers and also,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of that officer's knowledge of and familiarity
with the particular subject.

            "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 3.1.

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            "Trust Securities" means the Common Securities and the Capital
Securities.

                                   ARTICLE II
                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

             SECTION 2.1 Powers and Duties of the Guarantee Trustee

      (a) This Guarantee shall be held by the Guarantee Trustee for the benefit
of the Holders of the Capital Securities, and the Guarantee Trustee shall not
transfer this Guarantee to any Person except a Holder of Capital Securities
exercising his or her rights pursuant to Section 4.4 (b) or to a Successor
Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its
appointment to act as Successor Guarantee Trustee. The right, title and interest
of the Guarantee Trustee shall automatically vest in any Successor Guarantee
Trustee, and such vesting and cessation of title shall be effective whether or
not conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Guarantee Trustee.

      (b) If an Event of Default actually known to a Responsible Officer of the
Guarantee Trustee has occurred and is continuing, the Guarantee Trustee shall
enforce this Guarantee for the benefit of the Holders of the Capital Securities.

      (c) The Guarantee Trustee, before the occurrence of any Event of Default
and after curing all Events of Default that may have occurred, shall undertake
to perform only such duties as are specifically set forth in this Guarantee, and
no implied covenants shall be read into this Guarantee against the Guarantee
Trustee. In case an Event of Default has occurred (that has not been cured or
waived pursuant to Section 2.4) and is actually known to a Responsible Officer
of the Guarantee Trustee, the Guarantee Trustee shall exercise such of the
rights and powers vested in it by this Guarantee, and use the same degree of
care and skill in its exercise thereof, as a prudent person would exercise or
use under the circumstances in the conduct of his or her own affairs.

      (d) No provision of this Guarantee shall be construed to relieve the
Guarantee Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

            (i) prior to the occurrence of any Event of Default and after the
      curing or waiving of all such Events of Default that may have occurred:

                  (A) the duties and obligations of the Guarantee Trustee shall
            be determined solely by the express provisions of this Guarantee,
            and the Guarantee Trustee shall not be liable except for the
            performance of such duties and obligations as are specifically set
            forth in this Guarantee, and no implied covenants or obligations
            shall be read into this Guarantee against the Guarantee Trustee; and

                  (B) in the absence of bad faith on the part of the Guarantee
            Trustee, the Guarantee Trustee may conclusively rely, as to the
            truth of the statements and the correctness of the opinions
            expressed therein, upon any certificates or opinions furnished to
            the Guarantee Trustee and conforming to the requirements of this
            Guarantee; but in the case of any such certificates or opinions
            furnished

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            to the Guarantee Trustee, the Guarantee Trustee shall be under a
            duty to examine the same to determine whether or not they conform to
            the requirements of this Guarantee;

                  (ii) the Guarantee Trustee shall not be liable for any error
            of judgment made in good faith by a Responsible Officer of the
            Guarantee Trustee, unless it shall be proved that such Responsible
            Officer of the Guarantee Trustee or the Guarantee Trustee was
            negligent in ascertaining the pertinent facts upon which such
            judgment was made;

                  (iii) the Guarantee Trustee shall not be liable with respect
            to any action taken or omitted to be taken by it in good faith in
            accordance with the written direction of the Holders of not less
            than a Majority in liquidation amount of the Capital Securities
            relating to the time, method and place of conducting any proceeding
            for any remedy available to the Guarantee Trustee, or exercising any
            trust or power conferred upon the Guarantee Trustee under this
            Guarantee; and

                  (iv) no provision of this Guarantee shall require the
            Guarantee Trustee to expend or risk its own funds or otherwise incur
            personal financial liability in the performance of any of its duties
            or in the exercise of any of its rights or powers, if the Guarantee
            Trustee shall have reasonable grounds for believing that the
            repayment of such funds is not reasonably assured to it under the
            terms of this Guarantee, or security and indemnity, reasonably
            satisfactory to the Guarantee Trustee, against such risk or
            liability is not reasonably assured to it.

SECTION 2.2 Certain Rights of Guarantee Trustee

            (a)   Subject to the provisions of Section 2.1:

                  (i) The Guarantee Trustee may conclusively rely, and shall be
            fully protected in acting or refraining from acting upon, any
            resolution, certificate, statement, instrument, opinion, report,
            notice, request, direction, consent, order, bond, debenture, note,
            other evidence of indebtedness or other paper or document believed
            by it to be genuine and to have been signed, sent or presented by
            the proper party or parties.

                  (ii) Any direction or act of the Guarantor contemplated by
            this Guarantee shall be sufficiently evidenced by an Officer's
            Certificate.

                  (iii) Whenever, in the administration of this Guarantee, the
            Guarantee Trustee shall deem it desirable that a matter be proved or
            established before taking, suffering or omitting any action
            hereunder, the Guarantee Trustee (unless other evidence is herein
            specifically prescribed) may, in the absence of bad faith on its
            part, request and conclusively rely upon an Officer's Certificate of
            the Guarantor which, upon receipt of such request, shall be promptly
            delivered by the Guarantor.

                  (iv) The Guarantee Trustee shall have no duty to see to any
            recording, filing or registration of any instrument (or any
            rerecording, refiling or registration thereof).

                  (v) The Guarantee Trustee may consult with counsel of its
            selection, and the advice or opinion of such counsel with respect to
            legal matters shall be full and complete

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            authorization and protection in respect of any action taken,
            suffered or omitted by it hereunder in good faith and in accordance
            with such advice or opinion. Such counsel may be counsel to the
            Guarantor or any of its Affiliates and may include any of its
            employees. The Guarantee Trustee shall have the right at any time to
            seek instructions concerning the administration of this Guarantee
            from any court of competent jurisdiction.

                  (vi) The Guarantee Trustee shall be under no obligation to
            exercise any of the rights or powers vested in it by this Guarantee
            at the request or direction of any Holder, unless such Holder shall
            have provided to the Guarantee Trustee such security and indemnity,
            reasonably satisfactory to the Guarantee Trustee, against the costs,
            expenses (including attorneys' fees and expenses and the expenses of
            the Guarantee Trustee's agents, nominees or custodians) and
            liabilities that might be incurred by it in complying with such
            request or direction, including such reasonable advances as may be
            requested by the Guarantee Trustee; provided, however, that nothing
            contained in this Section 2.2(a)(vi) shall be taken to relieve the
            Guarantee Trustee, upon the occurrence of an Event of Default, of
            its obligation to exercise the rights and powers vested in it by
            this Guarantee.

                  (vii) The Guarantee Trustee shall not be bound to make any
            investigation into the facts or matters stated in any resolution,
            certificate, statement, instrument, opinion, report, notice,
            request, direction, consent, order, bond, debenture, note, other
            evidence of indebtedness or other paper or document, but the
            Guarantee Trustee, in its discretion, may make such further inquiry
            or investigation into such facts or matters as it may see fit.

                  (viii) The Guarantee Trustee may execute any of the trusts or
            powers hereunder or perform any duties hereunder either directly or
            by or through agents, nominees, custodians or attorneys, and the
            Guarantee Trustee shall not be responsible for any misconduct or
            negligence on the part of any agent or attorney appointed with due
            care by it hereunder.

                  (ix) Any action taken by the Guarantee Trustee or its agents
            hereunder shall bind the Holders of the Capital Securities, and the
            signature of the Guarantee Trustee or its agents alone shall be
            sufficient and effective to perform any such action. No third party
            shall be required to inquire as to the authority of the Guarantee
            Trustee to so act or as to its compliance with any of the terms and
            provisions of this Guarantee, both of which shall be conclusively
            evidenced by the Guarantee Trustee's or its agent's taking such
            action.

                  (x) Whenever in the administration of this Guarantee the
            Guarantee Trustee shall deem it desirable to receive instructions
            with respect to enforcing any remedy or right or taking any other
            action hereunder, the Guarantee Trustee (A) may request instructions
            from the Holders of a Majority in liquidation amount of the Capital
            Securities, (B) may refrain from enforcing such remedy or right or
            taking such other action until such instructions are received and
            (C) shall be protected in conclusively relying on or acting in
            accordance with such instructions.

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                  (xi) The Guarantee Trustee shall not be liable for any action
            taken, suffered, or omitted to be taken by it in good faith and
            reasonably believed by it to be authorized or within the discretion
            or rights or powers conferred upon it by this Guarantee.

            (b) No provision of this Guarantee shall be deemed to impose any
      duty or obligation on the Guarantee Trustee to perform any act or acts or
      exercise any right, power, duty or obligation conferred or imposed on it,
      in any jurisdiction in which it shall be illegal or in which the Guarantee
      Trustee shall be unqualified or incompetent in accordance with applicable
      law to perform any such act or acts or to exercise any such right, power,
      duty or obligation. No permissive power or authority available to the
      Guarantee Trustee shall be construed to be a duty.

SECTION 2.3 Not Responsible for Recitals or Issuance of Guarantee

            The recitals contained in this Guarantee shall be taken as the
statements of the Guarantor, and the Guarantee Trustee does not assume any
responsibility for their correctness. The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Guarantee.

SECTION 2.4 Events of Default; Waiver

            (a) An Event of Default under this Guarantee will occur upon the
failure of the Guarantor to perform any of its payment or other obligations
hereunder.

            (b) The Holders of a Majority in liquidation amount of Capital
Securities may, voting or consenting as a class, on behalf of the Holders of all
of the Capital Securities, waive any past Event of Default and its consequences.
Upon such waiver, any such Event of Default shall cease to exist, and shall be
deemed to have been cured, for every purpose of this Guarantee, but no such
waiver shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.

SECTION 2.5 Events of Default; Notice

            (a) The Guarantee Trustee shall, within 90 days after the occurrence
      of an Event of Default, transmit by mail, first class postage prepaid, to
      the Holders of the Capital Securities, notices of all Events of Default
      actually known to a Responsible Officer of the Guarantee Trustee, unless
      such defaults have been cured before the giving of such notice, provided,
      however, that the Guarantee Trustee shall be protected in withholding such
      notice if and so long as a Responsible Officer of the Guarantee Trustee in
      good faith determines that the withholding of such notice is in the
      interests of the Holders of the Capital Securities.

            (b) The Guarantee Trustee shall not be deemed to have knowledge of
      any Event of Default unless the Guarantee Trustee shall have received
      written notice from the Guarantor or a Holder of the Capital Securities
      (except in the case of a payment default), or a Responsible Officer of the
      Guarantee Trustee charged with the administration of this Guarantee shall
      have obtained actual knowledge, thereof.

                                   ARTICLE III
                                GUARANTEE TRUSTEE

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SECTION 3.1 Guarantee Trustee; Eligibility

            (a) There shall at all times be a Guarantee Trustee which shall:

                  (i) not be an Affiliate of the Guarantor; and

                  (ii) be a corporation organized and doing business under the
            laws of the United States of America or any State or Territory
            thereof or of the District of Columbia, or Person authorized under
            such laws to exercise corporate trust powers, having a combined
            capital and surplus of at least 50 million U.S. dollars
            ($50,000,000), and subject to supervision or examination by Federal,
            State, Territorial or District of Columbia authority. If such
            corporation publishes reports of condition at least annually,
            pursuant to law or to the requirements of the supervising or
            examining authority referred to above, then, for the purposes of
            this Section 3.1(a) (ii), the combined capital and surplus of such
            corporation shall be deemed to be its combined capital and surplus
            as set forth in its most recent report of condition so published.

            (b) If at any time the Guarantee Trustee shall cease to be eligible
      to so act under Section 3.1(a), the Guarantee Trustee shall immediately
      resign in the manner and with the effect set out in Section 3.2(c).

            (c) If the Guarantee Trustee has or shall acquire any "conflicting
      interest" within the meaning of Section 310(b) of the Trust Indenture Act,
      the Guarantee Trustee shall either eliminate such interest or resign to
      the extent and in the manner provided by, and subject to this Guarantee.

SECTION 3.2 Appointment, Removal and Resignation of Guarantee Trustee

            (a) Subject to Section 3.2(b), the Guarantee Trustee may be
      appointed or removed without cause at any time by the Guarantor except
      during an Event of Default.

            (b) The Guarantee Trustee shall not be removed in accordance with
      Section 3.2(a) until a Successor Guarantee Trustee has been appointed and
      has accepted such appointment by written instrument executed by such
      Successor Guarantee Trustee and delivered to the Guarantor.

            (c) The Guarantee Trustee appointed to office shall hold office
      until a Successor Guarantee Trustee shall have been appointed or until its
      removal or resignation. The Guarantee Trustee may resign from office
      (without need for prior or subsequent accounting) by an instrument in
      writing executed by the Guarantee Trustee and delivered to the Guarantor,
      which resignation shall not take effect until a Successor Guarantee
      Trustee has been appointed and has accepted such appointment by an
      instrument in writing executed by such Successor Guarantee Trustee and
      delivered to the Guarantor and the resigning Guarantee Trustee.

            (d) If no Successor Guarantee Trustee shall have been appointed and
      accepted appointment as provided in this Section 3.2 within 60 days after
      delivery of an instrument of removal or resignation, the Guarantee Trustee
      resigning or being removed may petition any court of competent
      jurisdiction for appointment of a Successor Guarantee Trustee. Such court

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      may thereupon, after prescribing such notice, if any, as it may deem
      proper, appoint a Successor Guarantee Trustee.

            (e) No Guarantee Trustee shall be liable for the acts or omissions
      to act of any Successor Guarantee Trustee.

            (f) Upon termination of this Guarantee or removal or resignation of
      the Guarantee Trustee pursuant to this Section 3.2, the Guarantor shall
      pay to the Guarantee Trustee all amounts owing to the Guarantee Trustee
      under Sections 7.2 and 7.3 accrued to the date of such termination,
      removal or resignation.

                                   ARTICLE IV
                                    GUARANTEE

SECTION 4.1 Guarantee

            (a) The Guarantor irrevocably and unconditionally agrees to pay in
full to the Holders the Guarantee Payments (without duplication of amounts
theretofore paid by the Issuer), as and when due, regardless of any defense
(except as defense of payment by the Issuer), right of set-off or counterclaim
that the Issuer may have or assert. The Guarantor's obligation to make a
Guarantee Payment may be satisfied by direct payment of the required amounts by
the Guarantor to the Holders or by causing the Issuer to pay such amounts to the
Holders.

            (b) The Guarantor hereby also agrees to assume any and all
Obligations of the Issuer and in the event any such Obligation is not so
assumed, subject to the terms and conditions hereof, the Guarantor hereby
irrevocably and unconditionally guarantees to each Beneficiary the full payment,
when and as due, of any and all obligations to such Beneficiaries. This
Agreement is intended to be for the Beneficiaries who have received notice
hereof.

SECTION 4.2 Waiver of Notice and Demand

            The Guarantor hereby waives notice of acceptance of this Guarantee
and of any liability to which it applies or may apply, presentment, demand for
payment, any right to require a proceeding first against the Issuer or any other
Person before proceeding against the Guarantor, protest, notice of nonpayment,
notice of dishonor, notice of redemption and all other notices and demands.

SECTION 4.3 Obligations Not Affected

            The obligations, covenants, agreements and duties of the Guarantor
under this Guarantee shall in no way be affected or impaired by reason of the
happening from time to time of any of the following:

            (a) the release or waiver, by operation of law or otherwise, of the
      performance or observance by the Issuer of any express or implied
      agreement, covenant, term or condition relating to the Capital Securities
      to be performed or observed by the Issuer;

            (b) the extension of time for the payment by the Issuer of all or
      any portion of the Distributions, Redemption Price, Special Redemption
      Price, Liquidation Distribution or any other sums payable under the terms
      of the Capital Securities or the extension of time for the

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      performance of any other obligation under, arising out of, or in
      connection with, the Capital Securities (other than an extension of time
      for payment of Distributions, Redemption Price, Special Redemption Price,
      Liquidation Distribution or other sum payable that results from the
      extension of any interest payment period on the Debentures or any
      extension of the maturity date of the Debentures permitted by the
      Indenture);

            (c) any failure, omission, delay or lack of diligence on the part of
      the Holders to enforce, assert or exercise any right, privilege, power or
      remedy conferred on the Holders pursuant to the terms of the Capital
      Securities, or any action on the part of the Issuer granting indulgence or
      extension of any kind;

            (d) the voluntary or involuntary liquidation, dissolution, sale of
      any collateral, receivership, insolvency, bankruptcy, assignment for the
      benefit of creditors, reorganization, arrangement, composition or
      readjustment of debt of, or other similar proceedings affecting, the
      Issuer or any of the assets of the Issuer;

            (e) any invalidity of, or defect or deficiency in, the Capital
      Securities;

            (f) the settlement or compromise of any obligation guaranteed hereby
      or hereby incurred; or

            (g) any other circumstance whatsoever that might otherwise
      constitute a legal or equitable discharge or defense of a guarantor, it
      being the intent of this Section 4.3 that the obligations of the Guarantor
      hereunder shall be absolute and unconditional under any and all
      circumstances.

            There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

SECTION 4.4 Rights of Holders

            (a) The Holders of a Majority in liquidation amount of the Capital
      Securities have the right to direct the time, method and place of
      conducting any proceeding for any remedy available to the Guarantee
      Trustee in respect of this Guarantee or to direct the exercise of any
      trust or power conferred upon the Guarantee Trustee under this Guarantee;
      provided, however, that (subject to Sections 2.1 and 2.2) the Guarantee
      Trustee shall have the right to decline to follow any such direction if
      the Guarantee Trustee shall determine that the actions so directed would
      be unjustly prejudicial to the Holders not taking part in such direction
      or if the Guarantee Trustee being advised by counsel determines that the
      action or proceeding so directed may not lawfully be taken or if the
      Guarantor Trustee in good faith by its board of directors or trustees,
      executive committees or a trust committee of directors or trustees and/or
      Responsible Officers shall determine that the action or proceedings so
      directed would involve the Guarantee Trustee in personal liability.

            (b) Any Holder of Capital Securities may institute a legal
      proceeding directly against the Guarantor to enforce the Guarantee
      Trustee's rights under this Guarantee, without first instituting a legal
      proceeding against the Issuer, the Guarantee Trustee or any other Person.
      The Guarantor waives any right or remedy to require that any such action
      be brought first against the

                                       10
<PAGE>

      Issuer, the Guarantee Trustee or any other Person before so proceeding
      directly against the Guarantor.

SECTION 4.5 Guarantee of Payment

            This Guarantee creates a guarantee of payment and not of collection.

SECTION 4.6 Subrogation

            The Guarantor shall be subrogated to all (if any) rights of the
Holders of Capital Securities against the Issuer in respect of any amounts paid
to such Holders by the Guarantor under this Guarantee; provided, however, that
the Guarantor shall not (except to the extent required by applicable provisions
of law) be entitled to enforce or exercise any right that it may acquire by way
of subrogation or any indemnity, reimbursement or other agreement, in all cases
as a result of payment under this Guarantee, if, after giving effect to any such
payment, any amounts are due and unpaid under this Guarantee. If any amount
shall be paid to the Guarantor in violation of the preceding sentence, the
Guarantor agrees to hold such amount in trust for the Holders and to pay over
such amount to the Holders.

SECTION 4.7 Independent Obligations

            The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Capital
Securities and that the Guarantor shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Guarantee
notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 4.3 hereof.

SECTION 4.8 Enforcement.

            A Beneficiary may enforce the obligations of the Guarantor contained
in Section 4.1(b) directly against the Guarantor, and the Guarantor waives any
right or remedy to require that any action be brought against the Issuer or any
other person or entity before proceeding against the Guarantor.

            The Guarantor shall be subrogated to all rights (if any) of any
Beneficiary against the Issuer in respect of any amounts paid to the
Beneficiaries by the Guarantor under this Guarantee; provided, however, that the
Guarantor shall not (except to the extent required by applicable provisions of
law) be entitled to enforce or exercise any rights that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as
a result of payment under this Guarantee, if, after giving effect to such
payment, any amounts are due and unpaid under this Guarantee.

                                    ARTICLE V
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 5.1 Limitation of Transactions

            So long as any Capital Securities remain outstanding, if (a) there
shall have occurred and be continuing an Event of Default or (b) the Guarantor
shall have selected an Extension Period as provided in the Declaration and such
period, or any extension thereof, shall have commenced and be

                                       11
<PAGE>

continuing, then the Guarantor may not (x) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Guarantor's capital stock or (y) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Guarantor that rank pari passu in all respects with
or junior in interest to the Debentures (other than (i) payments under this
Guarantee, (ii) repurchases, redemptions or other acquisitions of shares of
capital stock of the Guarantor in connection with any employment contract,
benefit plan or other similar arrangement with or for the benefit of one or more
employees, officers, directors, or consultants, in connection with a dividend
reinvestment or stockholder stock purchase plan or in connection with the
issuance of capital stock of the Guarantor (or securities convertible into or
exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to occurrence of the Event of Default or the
applicable Extension Period, (iii) as a result of any exchange of conversion of
any class or series of the Guarantor's capital stock (or any capital stock of a
subsidiary of the Guarantor) for any class or series of the Guarantor's capital
stock or of any class or series of the Guarantor's indebtedness for any class or
series of the Guarantor's capital stock, (iv) the purchase of fractional
interests in shares of the Guarantor's capital stock pursuant to the conversion
or exchange provisions of such capital stock or the security being converted or
exchanged, (v) any declaration of a dividend in connection with any
stockholder's rights plan, or the issuance of rights, stock or other property
under any stockholder's rights plan, or the redemption or repurchase of rights
pursuant thereto, or (vi) any dividend in the form of stock, warrants, options
or other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock).

SECTION 5.2 Ranking

            This Guarantee will constitute an unsecured obligation of the
Guarantor and will rank subordinate and junior in right of payment to all
present and future Senior Indebtedness (as defined in the Indenture) of the
Guarantor. By their acceptance thereof, each Holder of Capital Securities agrees
to the foregoing provisions of this Guarantee and the other terms set forth
herein.

            The right of the Guarantor to participate in any distribution of
assets of any of its subsidiaries upon any such subsidiary's liquidation or
reorganization or otherwise is subject to the prior claims of creditors of that
subsidiary, except to the extent the Guarantor may itself be recognized as a
creditor of that subsidiary. Accordingly, the Guarantor's obligations under this
Guarantee will be effectively subordinated to all existing and future
liabilities of the Guarantor's subsidiaries, and claimants should look only to
the assets of the Guarantor for payments thereunder. This Guarantee does not
limit the incurrence or issuance of other secured or unsecured debt of the
Guarantor, including Senior Indebtedness of the Guarantor, under any indenture
or agreement that the Guarantor may enter into in the future or otherwise.

                                       12
<PAGE>

                                   ARTICLE VI
                                  TERMINATION

SECTION 6.1 Termination

            This Guarantee shall terminate as to the Capital Securities (i) upon
full payment of the Redemption Price or the Special Redemption Price, as the
case may be, of all Capital Securities then outstanding, (ii) upon the
distribution of all of the Debentures to the Holders of all of the Capital
Securities or (iii) upon full payment of the amounts payable in accordance with
the Declaration upon dissolution of the Issuer. This Guarantee will continue to
be effective or will be reinstated, as the case may be, if at any time any
Holder of Capital Securities must restore payment of any sums paid under the
Capital Securities or under this Guarantee.

                                   ARTICLE VII
                                INDEMNIFICATION

SECTION 7.1 Exculpation

            (a) No Indemnified Person shall be liable, responsible or
      accountable in damages or otherwise to the Guarantor or any Covered Person
      for any loss, damage or claim incurred by reason of any act or omission
      performed or omitted by such Indemnified Person in good faith in
      accordance with this Guarantee and in a manner that such Indemnified
      Person reasonably believed to be within the scope of the authority
      conferred on such Indemnified Person by this Guarantee or by law, except
      that an Indemnified Person shall be liable for any such loss, damage or
      claim incurred by reason of such Indemnified Person's negligence or
      willful misconduct with respect to such acts or omissions.

            (b) An Indemnified Person shall be fully protected in relying in
      good faith upon the records of the Issuer or the Guarantor and upon such
      information, opinions, reports or statements presented to the Issuer or
      the Guarantor by any Person as to matters the Indemnified Person
      reasonably believes are within such other Person's professional or expert
      competence and who, if selected by such Indemnified Person, has been
      selected with reasonable care by such Indemnified Person, including
      information, opinions, reports or statements as to the value and amount of
      the assets, liabilities, profits, losses, or any other facts pertinent to
      the existence and amount of assets from which Distributions to Holders of
      Capital Securities might properly be paid.

SECTION 7.2 Indemnification

            (a) The Guarantor agrees to indemnify each Indemnified Person for,
and to hold each Indemnified Person harmless against, any and all loss,
liability, damage, claim or expense incurred without negligence or willful
misconduct on the part of the Indemnified Person, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including but not limited to the costs and expenses (including
reasonable legal fees and expenses) of the Indemnified Person defending itself
against, or investigating, any claim or liability in connection with the
exercise or performance of any of the Indemnified Person's powers or duties
hereunder. The obligation to indemnify as set forth in this Section 7.2 shall
survive the resignation or removal of the Guarantee Trustee and the termination
of this Guarantee.

                                       13
<PAGE>

            (b) Promptly after receipt by an Indemnified Person under this
Section 7.2 of notice of the commencement of any action, such Indemnified Person
will, if a claim in respect thereof is to be made against the Guarantor under
this Section 7.2, notify the Guarantor in writing of the commencement thereof;
but the failure so to notify the Guarantor (i) will not relieve the Guarantor
from liability under paragraph (a) above unless and to the extent that the
Guarantor did not otherwise learn of such action and such failure results in the
forfeiture by the Guarantor of substantial rights and defenses and (ii) will
not, in any event, relieve the Guarantor from any obligations to any Indemnified
Person other than the indemnification obligation provided in paragraph (a)
above. The Guarantor shall be entitled to appoint counsel of the Guarantor's
choice at the Guarantor's expense to represent the Indemnified Person in any
action for which indemnification is sought (in which case the Guarantor shall
not thereafter be responsible for the fees and expenses of any separate counsel
retained by the Indemnified Person or Persons except as set forth below);
provided, however, that such counsel shall be satisfactory to the Indemnified
Person. Notwithstanding the Guarantor's election to appoint counsel to represent
the Guarantor in an action, the Indemnified Person shall have the right to
employ separate counsel (including local counsel), and the Guarantor shall bear
the reasonable fees, costs and expenses of such separate counsel if (i) the use
of counsel chosen by the Guarantor to represent the Indemnified Person would
present such counsel with a conflict of interest, (ii) the actual or potential
defendants in, or targets of, any such action include both the Indemnified
Person and the Guarantor and the Indemnified Person shall have reasonably
concluded that there may be legal defenses available to it and/or other
Indemnified Person which are different from or additional to those available to
the Guarantor, (iii) the Guarantor shall not have employed counsel satisfactory
to the Indemnified Person to represent the Indemnified Person within a
reasonable time after notice of the institution of such action or (iv) the
Guarantor shall authorize the Indemnified Person to employ separate counsel at
the expense of the Guarantor. The Guarantor will not, without the prior written
consent of the Indemnified Persons, settle or compromise or consent to the entry
of any judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the Indemnified Persons are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each Indemnified Person from all liability
arising out of such claim, action, suit or proceeding.

SECTION 7.3 Compensation; Reimbursement of Expenses

            The Guarantor agrees:

            (a) to pay to the Guarantee Trustee from time to time such
compensation for all services rendered by it hereunder as the parties shall
agree to from time to time (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust); and

            (b) except as otherwise expressly provided herein, to reimburse the
Guarantee Trustee upon request for all reasonable expenses, disbursements and
advances incurred or made by it in accordance with any provision of this
Guarantee (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or willful misconduct.

            The provisions of this Section 7.3 shall survive the resignation or
removal of the Guarantee Trustee and the termination of this Guarantee.

                                       14
<PAGE>

                           ARTICLE VIII MISCELLANEOUS

SECTION 8.1 Successors and Assigns

            All guarantees and agreements contained in this Guarantee shall bind
the successors, assigns, receivers, trustees and representatives of the
Guarantor and shall inure to the benefit of the Holders of the Capital
Securities then outstanding. Except in connection with any merger or
consolidation of the Guarantor with or into another entity or any sale, transfer
or lease of the Guarantor's assets to another entity, in each case, to the
extent permitted under the Indenture, the Guarantor may not assign its rights or
delegate its obligations under this Guarantee without the prior approval of the
Holders of at least a Majority in liquidation amount of the Capital Securities.

SECTION 8.2 Amendments

            Except with respect to any changes that do not adversely affect the
rights of Holders of the Capital Securities in any material respect (in which
case no consent of Holders will be required), this Guarantee may be amended only
with the prior approval of the Holders of not less than a Majority in
liquidation amount of the Capital Securities. The provisions of the Declaration
with respect to amendments thereof shall apply equally with respect to
amendments of the Guarantee.

SECTION 8.3 Notices

            All notices provided for in this Guarantee shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by first class mail, as follows:

            (a) If given to the Guarantee Trustee, at the Guarantee Trustee's
      mailing address set forth below (or such other address as the Guarantee
      Trustee may give notice of to the Holders of the Capital Securities):

                     The Bank of New York
                     101 Barclay Street, Floor 21W
                     New York, NY 10286
                     Attention: Corporate Trust Administration
                     Telecopy: 212-815-5915

            (b) If given to the Guarantor, at the Guarantor's mailing address
      set forth below (or such other address as the Guarantor may give notice of
      to the Holders of the Capital Securities and to the Guarantee Trustee):

                     United Financial Corp.
                     5500 Wayzata Blvd., Suite 145
                     Golden Valley, MN  55416
                     Attention: Kurt R. Weise

                                       15
<PAGE>

            (c) If given to any Holder of the Capital Securities, at the address
      set forth on the books and records of the Issuer.

            All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

SECTION 8.4 Benefit

            This Guarantee is solely for the benefit of the Holders of the
Capital Securities and, subject to Section 2.1(a), is not separately
transferable from the Capital Securities.

SECTION 8.5 Governing Law

            THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES THEREOF.

SECTION 8.6 Counterparts

            This Guarantee may contain more than one counterpart of the
signature page and this Guarantee may be executed by the affixing of the
signature of the Guarantor and the Guarantee Trustee to any of such counterpart
signature pages. All of such counterpart signature pages shall be read as though
one, and they shall have the same force and effect as though all of the signers
had signed a single signature page.

                                       16
<PAGE>

            THIS GUARANTEE is executed as of the day and year first above
written.

                                                 UNITED FINANCIAL CORP.,
                                                   as Guarantor

                                                 By: /s/ Kurt R. Weise
                                                     ---------------------------
                                                     Name:  Kurt R. Weise
                                                     Title  President & CEO

                                                 THE BANK OF NEW YORK,
                                                   as Guarantee Trustee

                                                 By: /s/ Mary LaGumina
                                                     ---------------------------
                                                     Name:  Mary LaGumina
                                                     Title  Vice President

                                       17EXHIBIT 10.10

                             UNITED FINANCIAL CORP.
                            2000 LONG-TERM INCENTIVE
                                       AND
                                STOCK OPTION PLAN

1.       PURPOSE OF PLAN.

         This Plan shall be known as the "UNITED FINANCIAL CORP. 2000 LONG-TERM
INCENTIVE AND STOCK OPTION PLAN" and is hereinafter referred to as the "Plan."
The purpose of the Plan is to aid in maintaining and developing personnel
capable of assuring the future success of United Financial Corp., a Minnesota
corporation (the "Company"), to offer such personnel additional incentives to
put forth maximum efforts for the success of the business, and to afford them an
opportunity to acquire a proprietary interest in the Company through stock
options and other long-term incentive awards as provided herein. Options granted
under this Plan may be either incentive stock options ("Incentive Stock
Options") within the meaning of Section 422 of the Internal Revenue Code of 1986
(the "Code"), or options which do not qualify as Incentive Stock Options. Awards
granted under this Plan shall be SARs, restricted stock or performance awards as
hereinafter described.

2.       STOCK SUBJECT TO PLAN.

         Subject to the provisions of Section 15 hereof, the stock to be subject
to options or other awards under the Plan shall be the Company's authorized
Common Stock, no par value. Such shares may be either authorized but unissued
shares, or issued shares which have been reacquired by the Company. Subject to
adjustment as provided in Section 15 hereof, the maximum number of shares on
which options may be exercised or other awards issued under this Plan shall be
120,000 shares. If an option or award under the Plan expires, or for any reason
is terminated or unexercised with respect to any shares, such shares shall again
be available for options or awards thereafter granted during the term of the
Plan.

3.       ADMINISTRATION OF PLAN.

                  (a) The Plan shall be administered by the Board of Directors
         of the Company or a committee thereof. The members of any such
         committee shall be appointed by and serve at the pleasure of the Board
         of Directors and shall include only "non-employee directors" within the
         meaning of Rule 16b-3 promulgated under the Securities and Exchange Act
         of 1934 and "outside directors" within the meaning of Section 162(m) of
         the Code. (The group administering the Plan shall hereinafter be
         referred to as the "Committee.") If no Committee is appointed, then the
         Committee as used elsewhere shall mean the entire Board of Directors.

                  (b) The Committee shall have plenary authority in its
         discretion, but subject to the express provisions of the

<PAGE>

         Plan: (i) to determine the purchase price of the Common Stock covered
         by each option or award, (ii) to determine the employees to whom and
         the time or times at which such options and awards shall be granted and
         the number of shares to be subject to each, (iii) to determine the form
         of payment to be made upon the exercise of an SAR or in connection with
         performance awards, either cash, Common Stock of the Company or a
         combination thereof, (iv) to determine the terms of exercise of each
         option and award, (v) to accelerate the time at which all or any part
         of an option or award may be exercised, (vi) to amend or modify the
         terms of any option or award with the consent of the optionee, (vii) to
         interpret the Plan, (viii) to prescribe, amend and rescind rules and
         regulations relating to the Plan, (ix) to determine the terms and
         provisions of each option and award agreement under the Plan (which
         agreements need not be identical), including the designation of those
         options intended to be Incentive Stock Options, and (x) to make all
         other determinations necessary or advisable for the administration of
         the Plan, subject to the exclusive authority of the Board of Directors
         under Section 16 hereof to amend or terminate the Plan. The Committee's
         determinations on the foregoing matters, unless otherwise disapproved
         by the Board of Directors of the Company, shall be final and
         conclusive.

                  (c) The Committee shall select one of its members as its Chair
         and shall hold its meetings at such times and places as it may
         determine. A majority of its members shall constitute a quorum. All
         determinations of the Committee shall be made by not less than a
         majority of its members. Any decision or determination reduced to
         writing and signed by all of the members of the Committee shall be
         fully effective as if it had been made by a majority vote at a meeting
         duly called and held. The grant of an option or award shall be
         effective only if a written agreement shall have been duly executed and
         delivered by and on behalf of the Company following such grant. The
         Committee may appoint a Secretary and may make such rules and
         regulations for the conduct of its business as it shall deem advisable.

4.       ELIGIBILITY.

         Incentive Stock Options may only be granted under this Plan to any full
or part-time employee (which term as used herein includes, but is not limited
to, officers and directors who are also employees) of the Company and of its
present and future subsidiary corporations within the meaning of Section 424(f)
of the Code (herein called "subsidiaries"). Full or part-time employees of the
Company, members of the Board of Directors of the Company and consultants or
independent contractors to the Company or one of its subsidiaries shall be
eligible to receive options which do not qualify as Incentive Stock Options and
awards. In determining the persons to whom options and awards shall be granted
and the number of shares subject to each, the Committee may take into account
the nature of services rendered by the respective employees, board members,
consultants or independent contractors, their present and potential
contributions to the success of the Company and such other factors as the
Committee in its discretion shall deem relevant. A person who has been granted
an option or award under this Plan may be granted additional options or awards
under the Plan if the Committee shall so determine; provided, however, that to
the extent the aggregate fair market value (determined at the time the Incentive
Stock Option is granted) of the Common Stock with respect to which all Incentive
Stock Options are exercisable for the first time by an employee during any
calendar year (under all plans described in subsection (d) of Section 422 of the
Code of his or her employer corporation and its parent and subsidiary
corporations) exceeds $100,000, such options shall be treated as options which
do not qualify as Incentive Stock Options. Nothing in the Plan or in any
agreement thereunder shall confer on any employee any right to continue in the
employ of the

                                       2
<PAGE>

Company or any of its subsidiaries or affect, in any way, the right of the
Company or any of its subsidiaries to terminate his or her employment at any
time. The number of options granted to any employee shall not exceed 25,000 in
any calendar year.

5.       PRICE.

         The option price for all Incentive Stock Options granted under the Plan
shall be determined by the Committee but shall not be less than 100% of the fair
market value of the Common Stock at the date of grant of such option. The option
price for options granted under the Plan which do not qualify as Incentive Stock
Options and, if applicable, the price for all awards shall also be determined by
the Committee. For purposes of the preceding sentence and for all other
valuation purposes under the Plan, the fair market value of the Common Stock
shall be as reasonably determined by the Committee. If on the date of grant of
any option or award hereunder the Common Stock are not traded on an established
securities market, the Committee shall make a good faith attempt to satisfy the
requirements of this Section 5 and in connection therewith shall take such
action as it deems necessary or advisable.

6.       TERM.

         Each option and award and all rights and obligations thereunder shall
expire on the date determined by the Committee and specified in the option or
award agreement. The Committee shall be under no duty to provide terms of like
duration for options or awards granted under the Plan, but the term of an
Incentive Stock Option may not extend more than ten (10) years from the date of
grant of such option and the term of options granted under the Plan which do not
qualify as Incentive Stock Options may not extend more than ten (10) years from
the date of granting of such option.

7.       EXERCISE OF OPTION OR AWARD.

                  (a) The Committee shall have full and complete authority to
         determine whether an option or award will be exercisable in full at any
         time or from time to time during the term thereof, or to provide for
         the exercise thereof in such installments, upon the occurrence of such
         events (such as termination of employment for any reason) and at such
         times during the term of the option as the Committee may determine and
         specify in the option or award agreement.

                  (b) The exercise of any option or award granted hereunder
         shall only be effective at such time that the sale of Common Stock
         pursuant to such exercise will not violate any state or federal
         securities or other laws.

                  (c) An optionee or grantee electing to exercise an option or
         award shall give written notice to the Company of such election and of
         the number of shares subject to such exercise. The full purchase price
         of such shares shall be tendered with such notice of exercise. Payment
         shall he made to the Company in cash (including bank check, certified
         check, personal check, or money order), or, at the discretion of the
         Committee and as specified by the Committee, (i) by delivering
         certificates for the Company's Common Stock already owned by the
         optionee or grantee having a fair market value as of

                                       3
<PAGE>

         the date of grant equal to the full purchase price of the shares, or
         (ii) by delivering the optionee's or grantee's promissory note, which
         shall provide for interest at a rate not less than the minimum rate
         required to avoid the imputation of income, original issue discount or
         a below-market-rate loan pursuant to Sections 483, 1274 or 7872 of the
         Code or any successor provisions thereto, or (iii) a combination of
         cash, the optionee's or grantee promissory note and such shares. The
         fair market value of such tendered shares shall be determined as
         provided in Section 5 hereof. The optionee's or grantee's promissory
         note shall be a full recourse liability of the optionee and may, at the
         discretion of the Committee, be secured by a pledge of the shares being
         purchased. Until such person has been issued the shares subject to such
         exercise, he or she shall possess no rights as a shareholder with
         respect to such shares.

                  (d) Notwithstanding any other provision in this Plan, the
         Committee shall have full and complete authority to assist any employee
         participating in the Plan (including officers, whether or not they are
         directors) in the exercise of one or more options granted to such
         employee under the Plan by (i) authorizing the extension of a loan or
         loans to such employee from the Company or (ii) authorizing a guarantee
         by the Company of a third-party loan or loans to such employee;
         provided that any such loan or loans are used exclusively for (A) the
         cash exercise of one or more options granted to such employee under the
         Plan or (B) payment of any federal, state or local tax liability of
         such employee resulting from exercise of one or more options which do
         not qualify as Incentive Stock Options granted to such employee under
         the Plan. The terms of any loan or guarantee (including the interest
         rate and terms of repayment) will be established by the Committee in
         its sole discretion.

8.       STOCK APPRECIATION RIGHTS.

                  (a) Grant. At the time of grant of an option or award under
         the Plan (or at any other time), the Committee, in its discretion, may
         grant a Stock Appreciation Right ("SAR") evidenced by an agreement in
         such form as the Committee shall from time to time approve. Any such
         SAR may be subject to restrictions on the exercise thereof as may be
         set forth in the agreement representing such SAR, which agreement shall
         comply with and be subject to the following terms and conditions and
         any additional terms and conditions established by the Committee that
         are consistent with the terms of the Plan.

                  (b) Exercise. An SAR shall be exercised by the delivery to the
         Company of a written notice which shall state that the holder thereof
         elects to exercise his or her SAR as to the number of shares specified
         in the notice and which shall further state what portion, if any, of
         the SAR exercise amount (hereinafter defined) the holder thereof
         requests be paid to in cash and what portion, if any, is to be paid in
         Common Stock of the Company. The Committee promptly shall cause to be
         paid to such holder the SAR exercise amount either in cash, in Common
         Stock of the Company, or any combination of cash and shares as the
         Committee may determine. Such determination may be either in accordance
         with the request made by the holder of the SAR or in the sole and
         absolute discretion of the Committee. The SAR exercise amount is the
         excess of the fair market value of one share of the Company's Common
         Stock on the date of exercise over the per share exercise

                                       4
<PAGE>

         price in respect of which the SAR was granted, multiplied by the number
         of shares as to which the SAR is exercised. For the purposes hereof,
         the fair market value of the Company's shares shall be determined as
         provided in Section 5 hereof.

9.       RESTRICTED STOCK AWARDS.

         Awards of Common Stock subject to forfeiture and transfer restrictions
may be granted by the Committee. Any restricted stock award shall be evidenced
by an agreement in such form as the Committee shall from time to time approve,
which agreement shall comply with and be subject to the following terms and
conditions and any additional terms and conditions established by the Committee
that are consistent with the terms of the Plan:

                  (a) Grant of Restricted Stock Awards. Each restricted stock
         award made under the Plan shall be for such number of Common Stock as
         shall be determined by the Committee and set forth in the agreement
         containing the terms of such restricted stock award. Such agreement
         shall set forth a period of time during which the grantee must remain
         in the continuous employment of the Company in order for the forfeiture
         and transfer restrictions to lapse. If the Committee so determines, the
         restrictions may lapse during such restricted period in installments
         with respect to specified portions of the shares covered by the
         restricted stock award. The agreement may also, in the discretion of
         the Committee, set forth performance or other conditions that will
         subject the Common Stock to forfeiture and transfer restrictions. The
         Committee may, at its discretion, waive all or any part of the
         restrictions applicable to any or all outstanding restricted stock
         awards.

                  (b) Delivery of Common Stock and Restrictions. At the time of
         a restricted stock award, a certificate representing the number of
         Common Stock awarded thereunder shall be registered in the name of the
         grantee. Such certificate shall be held by the Company or any custodian
         appointed by the Company for the account of the grantee subject to the
         terms and conditions of the Plan, and shall bear such a legend setting
         forth the restrictions imposed thereon as the Committee, in its
         discretion, may determine. The grantee shall have all rights of a
         shareholder with respect to the Common Stock, including the right to
         receive dividends and the right to vote such shares, subject to the
         following restrictions: (i) the grantee shall not be entitled to
         delivery of the stock certificate until the expiration of the
         restricted period and the fulfillment of any other restrictive
         conditions set forth in the restricted stock agreement with respect to
         such Common Stock; (ii) none of the Common Stock may be sold, assigned,
         transferred, pledged, hypothecated or otherwise encumbered or disposed
         of during such restricted period or until after the fulfillment of any
         such other restrictive conditions; and (iii) except as otherwise
         determined by the Committee, all of the Common Stock shall be forfeited
         and all rights of the grantee to such Common Stock shall terminate,
         without further obligation on the part of the Company, unless the
         grantee remains in the continuous employment of the Company for the
         entire restricted period in relation to which such Common Stock were
         granted and unless any other restrictive conditions relating to the
         restricted stock award are met. Any Common Stock, any other securities
         of the Company and any other property (except for cash dividends)
         distributed with

                                       5
<PAGE>

         respect to the Common Stock subject to restricted stock awards shall be
         subject to the same restrictions, terms and conditions as such
         restricted Common Stock.

                  (c) Termination of Restrictions. At the end of the restricted
         period and provided that any other restrictive conditions of the
         restricted stock award are met, or at such earlier time as otherwise
         determined by the Committee, all restrictions set forth in the
         agreement relating to the restricted stock award or in the Plan shall
         lapse as to the restricted Common Stock subject thereto, and a stock
         certificate for the appropriate number of Common Stock, free of the
         restrictions and the restricted stock legend, shall be delivered to the
         grantee or his beneficiary or estate, as the case may be.

10.      PERFORMANCE AWARDS.

         The Committee is further authorized to grant Performance awards.
Subject to the terms of this Plan and any applicable award agreement,
Performance awards granted under the Plan (i) may be denominated or payable in
cash, Common Stock (including, without limitation, restricted stock), other
securities, other awards, or other property and (ii) shall confer on the holder
thereof rights valued as determined by the Committee, in its discretion, and
payable to, or exercisable by, the holder of the Performance awards, in whole or
in part, upon the achievement of such performance goals during such performance
periods as the Committee, in its discretion, shall establish. Subject to the
terms of this Plan and any applicable award agreement, the performance goals to
be achieved during any performance period, the length of any performance period,
the amount of any Performance award granted, and the amount of any payment or
transfer to be made by the grantee and by the Company under any Performance
award shall be determined by the Committee.

11.      INCOME TAX WITHHOLDING AND TAX BONUSES.

                  (a) In order to comply with all applicable federal or state
         income tax laws or regulations, the Company may take such action as it
         deems appropriate to ensure that all applicable federal or state
         payroll, withholding, income or other taxes, which are the sole and
         absolute responsibility of an optionee or grantee under the Plan, are
         withheld or collected from such optionee or grantee. In order to assist
         an optionee or grantee in paying all federal and state taxes to be
         withheld or collected upon exercise of an option or award which does
         not qualify as an Incentive Stock Option hereunder, the Committee, in
         its absolute discretion and subject to such additional terms and
         conditions as it may adopt, shall permit the optionee or grantee to
         satisfy such tax obligation by (i) electing to have the Company
         withhold a portion of the shares otherwise to be delivered upon
         exercise of such option or award with a fair market value, determined
         in accordance with Section 5 hereof, equal to such taxes or (ii)
         delivering to the Company Common Stock other than the shares issuable
         upon exercise of such option or award with a fair market value,
         determined in accordance with Section 5 hereof, equal to such taxes.

                  (b) The Committee shall have the authority, at the time of
         grant of an option under the Plan or at any time thereafter, to approve
         tax bonuses to designated optionees or grantees to be paid upon their
         exercise of options or awards granted hereunder. The

                                       6

<PAGE>

         amount of any such payments shall be determined by the Committee. The
         Committee shall have full authority in its absolute discretion to
         determine the amount of any such tax bonus and the terms and conditions
         affecting the vesting and payment thereafter.

12.      ADDITIONAL RESTRICTIONS.

         The Committee shall have full and complete authority to determine
whether all or any part of the Common Stock of the Company acquired upon
exercise of any of the options or awards granted under the Plan shall be subject
to restrictions on the transferability thereof or any other restrictions
affecting in any manner the optionee's or grantee's rights with respect thereto,
but any such restriction shall be contained in the agreement relating to such
options or awards.

13.      TEN PERCENT SHAREHOLDER RULE.

         Notwithstanding any other provision in the Plan, if at the time an
option is otherwise to be granted pursuant to the Plan the optionee owns
directly or indirectly (within the meaning of Section 424(d) of the Code) Common
Stock of the Company possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or its parent or
subsidiary corporations, if any (within the meaning of Section 422(b)(6) of the
Code), then any Incentive Stock Option to be granted to such optionee pursuant
to the Plan shall satisfy the requirements of Section 422(c)(5) of the Code, and
the option price shall be not less than 110% of the fair market value of the
Common Stock of the Company determined as described herein, and such option by
its terms shall not be exercisable after the expiration of five (5) years from
the date such option is granted.

14.      NON-TRANSFERABILITY.

         No option or award granted under the Plan shall be transferable by an
optionee or grantee, otherwise than by will or the laws of descent or
distribution. Except as otherwise provided in an option or award agreement,
during the lifetime of an optionee or grantee, the option shall be exercisable
only by such optionee or grantee.

15.      DILUTION OR OTHER ADJUSTMENTS.

         If there shall be any change in the Common Stock through merger,
consolidation, reorganization, recapitalization, dividend in the form of stock
(of whatever amount), stock split or other change in the corporate structure,
appropriate adjustments in the Plan and outstanding options and awards shall be
made by the Committee. In the event of any such changes, adjustments shall
include, where appropriate, changes in the aggregate number of shares subject to
the Plan, the number of shares and the price per share subject to outstanding
options and awards and the amount payable upon exercise of outstanding awards,
in order to prevent dilution or enlargement of option or award rights.

16.      AMENDMENT OR DISCONTINUANCE OF PLAN.

         The Board of Directors may amend or discontinue the Plan at any time.
Subject to the provisions of Section 15 hereof, no amendment of the Plan,
however, shall without shareholder

                                       7

<PAGE>

approval: (i) increase the maximum number of shares under the Plan as provided
in Section 2 hereof, (ii) decrease the minimum price provided in Section 5
hereof, (iii) extend the maximum term under Section 6 hereof, or (iv) modify the
eligibility requirements for participation in the Plan. The Board of Directors
shall not alter or impair any option or award theretofore granted under the Plan
without the consent of the holder of the option.

17.      TIME OF GRANTING.

         Nothing contained in the Plan or in any resolution adopted or to be
adopted by the Board of Directors or by the shareholders of the Company, and no
action taken by the Committee or the Board of Directors (other than the
execution and delivery of an option or award agreement), shall constitute the
granting of an option or award hereunder.

18.      EFFECTIVE DATE AND TERMINATION OF PLAN.

                  (a) The Plan was approved by the Board of Directors on January
         25, 2000, and shall be approved by the shareholders of the Company
         within twelve (12) months thereof.

                  (b) Unless the Plan shall have been discontinued as provided
         in Section 16 hereof, the Plan shall terminate on January 25, 2010. No
         option or award may be granted after such termination, but termination
         of the Plan shall not, without the consent of the optionee or grantee,
         alter or impair any rights or obligations under any option or award
         theretofore granted.

19.      MISCELLANEOUS.

                  (a) Neither the Plan nor any award granted pursuant to the
         Plan shall create or be construed to create a trust or separate fund of
         any kind or a fiduciary relationship between the Company and awardee or
         any other person. To the extent that any person acquires a right to
         receive payments from the Company under the Plan, such right shall be
         no greater than the right of any unsecured general creditor of the
         Company.

                  (b) No fractional shares shall be issued or delivered pursuant
         to the Plan, and the Committee shall determine whether cash shall be
         paid in lieu of any fractional shares or whether such fractional shares
         or any rights thereto shall be canceled, terminated or otherwise
         eliminated.

                  (c) No awardee or other person shall have any claim to be
         granted any option under the Plan, and there is no obligation for
         uniformity of treatment of awardees or beneficiaries of options under
         the Plan. The terms and conditions of options need not be the same with
         respect to any awardee or with respect to different awardees.

                  (d) The validity, construction and effect of the Plan, and any
         rules and regulations relating to the Plan, shall be determined in
         accordance with the laws of the State of Montana.

                                       8

<PAGE>

                  (e) Headings are given to the Sections and subsections of the
         Plan solely as a convenience to facilitate reference. Such headings
         shall not be deemed in any way material or relevant to the construction
         or interpretation of the Plan or any provision thereof.

                                       9

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