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                                                                    EXHIBIT 10.2

                           FIRST SHARES BANCORP, INC.
                   AMENDED AND RESTATED 1999 STOCK OPTION PLAN

         1. PURPOSE. The primary purposes of the Plan are to promote and align
the interests of specified employees of First Shares Bancorp, Inc. (the
"Company") and its subsidiary, First Bank, with those of its shareholders, to
increase employee stock ownership and to improve the Company's ability to retain
a team of outstanding executives. This Amended and Restated 1999 Stock Option
Plan amends and restates the Company's 1999 Stock Option Plan which was
effective May 1, 1999.

         2. DEFINITIONS.

                  As used in the Plan, terms defined parenthetically immediately
after their use have the respective meanings provided by such definitions and
the terms set forth below have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

                  "Administrator" means the Board or any committee of the Board
         to whom the responsibilities under the Plan are delegated.

                  "Affiliate" means, with respect to a specified person, a
         person that, directly or indirectly through one or more intermediaries,
         controls, or is controlled by, or is under common control with, the
         person specified.

                  "Board" means the Board of Directors of the Company.

                  "Change in Control" means any of the following:

                  (i)      any person or group (other than a Subsidiary or any
                           employee benefit plan (or any related trust) of the
                           Company or a Subsidiary) becomes after the Effective
                           Date the beneficial owner of more than 25% of either
                           the then outstanding Stock or the combined voting
                           power of the then outstanding voting securities of
                           the Company entitled to vote in the election of
                           directors, except that (A) no such person or group
                           shall be deemed to own beneficially any securities
                           acquired directly from the Company pursuant to a
                           written agreement with the Company unless such person
                           or group subsequently becomes the beneficial owner of
                           additional Stock or voting securities of the Company
                           other than pursuant to a written agreement with the
                           Company, and (B) no Change in Control shall be deemed
                           to have occurred solely by reason of any such
                           acquisition by a corporation with respect to which,
                           after such acquisition, more than 60% of both the
                           then outstanding common shares of such corporation
                           and the combined voting power of the then outstanding
                           voting securities of such corporation entitled to
                           vote in the election of directors are then
                           beneficially owned, directly or indirectly, by the
                           persons who were the beneficial owners of the Stock
                           and voting securities of the Company immediately
                           before such acquisition in substantially the same
                           proportion as their ownership, immediately before
                           such acquisition, of the outstanding Stock and the
                           combined voting power of the then outstanding voting
                           securities of the Company entitled to vote in the
                           election of directors; or

                  (ii)     approval by the stockholders of the Company of (A) a
                           merger, reorganization or consolidation with respect
                           to which the individuals and entities who were the
                           respective beneficial owners of the Stock and voting
                           securities of the Company immediately before such
                           merger, reorganization or consolidation do not, after
                           such

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                           merger, reorganization or consolidation, beneficially
                           own, directly or indirectly, more than 60% of,
                           respectively, the then outstanding common shares and
                           the combined voting power of the then outstanding
                           voting securities entitled to vote in the election of
                           directors of the corporation resulting from such
                           merger, reorganization or consolidation, (B) a
                           liquidation or dissolution of the Company or (C) the
                           sale or other disposition of all or substantially all
                           of the assets of the Company;

                  Notwithstanding the foregoing provisions of this definition, a
         Change in Control of the Company shall be deemed not to have occurred
         with respect to any Grantee, if such Grantee is, by written agreement
         executed prior to such Change in Control, a participant on such
         Grantee's own behalf in a transaction in which the persons (or their
         affiliates) with whom such Grantee has the written agreement Acquire
         the Company (as defined below) and, pursuant to the written agreement,
         the Grantee has an equity interest in the resulting entity or a right
         to acquire such an equity interest.

                  For the purposes of this definition, "Acquire the Company"
         means the acquisition of beneficial ownership by purchase, merger, or
         otherwise, of either more than 50% of the Stock (such percentage to be
         computed in accordance with Rule 13d-3(d)(1)(i) of the SEC under the
         Exchange Act) or substantially all of the assets of the Company or its
         successors; "person" means such term as used in Rule 13d-5 of the SEC
         under the Exchange Act; "beneficial owner" means such term as defined
         in Rule 13d-3 of the SEC under the Exchange Act; and "group" means such
         term as defined in Section 13(d) of the Exchange Act.

                  "Common Stock" means the Common Stock of the Company.

                  "Company" means First Shares Bancorp, Inc., an Indiana
         corporation.

                  "Disability" means, with respect to the exercise of an
         incentive stock option after Termination of Employment, a disability
         within the meaning of Section 22(e)(3) of the Internal Revenue Code,
         and for all other purposes, a mental or physical condition which, in
         the opinion of the Administrator, renders a Grantee unable or
         incompetent to carry out the job responsibilities which such Grantee
         held or the tasks to which such Grantee was assigned at the time
         disability was incurred, and which is expected to be permanent or for
         an indefinite duration.

                  "Effective Date" means May 1, 1999.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended. References to a particular section of, or rule under, the
         Exchange Act shall include references to successor provisions.

                  "Fair Market Value" of any security of the Company or any
         other issuer means, as of any applicable date:

                  (i)      if the security is listed for trading on the New York
                           Stock Exchange, the closing price, regular way, of
                           the security as reported on the New York Stock
                           Exchange Composite Tape, or if no such reported sale
                           of the security shall have occurred on such date, on
                           the next preceding date on which there was such a
                           reported sale, or

                  (ii)     if a security is not so listed, but is listed on
                           another national securities exchange or authorized
                           for quotation on the National Association of
                           Securities Dealers, Inc.'s

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                           NASDAQ National Market System ("NASDAQ/NMS"), the
                           closing price, regular way, of the security on such
                           exchange or NASDAQ/NMS, as the case may be, or if no
                           such reported sale of the security shall have
                           occurred on such date, on the next preceding date on
                           which there was such a reported sale, or

                  (iii)    if a security is not listed for trading on a national
                           securities exchange or authorized for quotation on
                           NASDAQ/NMS, the average of the closing bid and asked
                           prices as reported by the National Association of
                           Securities Dealers Automated Quotation System
                           ("NASDAQ"), or, if no such prices shall have been so
                           reported for such date, on the next preceding date
                           for which such prices were so reported, or

                  (iv)     if the security is not listed for trading on a
                           national securities exchange or is not authorized for
                           quotation on NASDAQ/NMS or NASDAQ, the fair market
                           value of the security as determined in good faith by
                           the Administrator.

                  "Grant Agreement" has the meaning specified in Section
         4(b)(v).

                  "Grant Date" means the date of grant of an Option determined
         in accordance with Section 6.

                  "Grantee" means an individual who has been granted an Option.

                  "including" means "including, without limitation."

                  "Internal Revenue Code" means the Internal Revenue Code of
         1986, as amended, and regulations and rulings thereunder. References to
         a particular section of the Internal Revenue Code shall include
         references to successor provisions.

                  "IPO" means the closing of the first public offering of Common
         Stock by the Company pursuant to an effective registration statement
         under the Securities Act of 1933, as amended.

                  "Option" means a stock option granted under the Plan.

                  "Option Price" means the per share purchase price of Stock
         subject to an option.

                  "Parent" means any corporation (other than the Company) in an
         unbroken chain of corporations ending with the Company, if at the time
         of the granting of an Option under the Plan, each of such corporations
         other than the Company owns stock possessing 50% or more of the total
         combined voting power of all classes of stock in one of the other
         corporations in such chain.

                  "Plan" means the Amended and Restated First Shares Bancorp,
         Inc. 1999 Stock Option Plan.

                  "SEC" means the Securities and Exchange Commission.

                  "Subsidiary" means any corporation (other than the Company) in
         an unbroken chain of corporations beginning with the Company if, at the
         time of the granting of an Option under the Plan, each of the
         corporations other than the last corporation in the unbroken chain owns
         stock possessing 50% or more of the total combined voting power of all
         classes of stock in one of the other corporations in such chain.

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                  "10% Owner" means a person who owns stock (including stock
         treated as owned under Section 424(d) of the Internal Revenue Code)
         possessing more than 10% of the total combined voting power of all
         classes of stock of the Company.

                  "Termination of Employment" occurs the first day an individual
         is for any reason entitled to severance payments under the Company's or
         any Subsidiary's personnel policies or is no longer employed by the
         Company or any of its Subsidiaries, or, with respect to an individual
         who is an employee of a corporation constituting a Subsidiary, the
         first day such corporation is no longer a Subsidiary.

         3. SCOPE OF THE PLAN.

         (a) An aggregate of Ninety-Three Thousand (93,000) shares of Common
Stock is hereby made available and is reserved for delivery on account of the
exercise of Options. Subject to the foregoing limit, shares of Common Stock held
as treasury shares may be used for or in connection with Options. Issuance of
Common Stock pursuant to an Option reduces the shares available for grant and
issuance under the Plan.

         (b) If and to the extent an Option expires or terminates for any reason
without having been exercised in full or is forfeited, shares of Common Stock
associated with such Option shall become available for other Options.

         4. ADMINISTRATION.

         (a) The Plan shall be administered by the Administrator.

         (b) The Administrator shall have full power and final authority, in its
discretion, but subject to the express provisions of the Plan, as follows:

                  (i) to grant Options,

                  (ii) to determine when Options may be granted,

                  (iii) to interpret the Plan and to make all determinations
         necessary or advisable for the administration of the Plan,

                  (iv) to prescribe, amend, and rescind rules relating to the
         Plan, including rules with respect to the exercisability of Options
         upon the Termination of Employment of a Grantee,

                  (v) to determine the terms and provisions of the written
         agreements by which all Options shall be granted ("Grant Agreements")
         and, with the consent of the Grantee, to modify any such Grant
         Agreement at any time,

                  (vi) to accelerate the exercisability of, and to accelerate or
         waive any or all of the restrictions and conditions applicable to, any
         Option,

                  (vii) to make such adjustments or modifications to Options to
         Grantees working outside the United States as are necessary and
         advisable to fulfill the purposes of the Plan, and

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                  (viii) to impose such additional conditions, restrictions, and
         limitations upon the grant, exercise or retention of Options as the
         Administrator may, before or concurrently with the grant thereof, deem
         appropriate.

         The determination of the Administrator on all matters relating to the
Plan or any Grant Agreement is conclusive and final. The Administrator is not
liable for any action or determination made in good faith with respect to the
Plan or any Option.

         5. ELIGIBILITY. Options may be granted to any employee of the Company
or any of its Subsidiaries, including but not limited to First Bank.

         6. CONDITIONS TO GRANTS.

         (a) General Conditions.

                  (i) The Grant Date of an Option is the date on which the
         Administrator grants the Option or such later date as specified in
         advance by the Administrator.

                  (ii) The term of each Option (subject to Section 6(c) with
         respect to incentive stock options) shall be a period of not more than
         ten (10) years from the Grant Date, and shall be subject to earlier
         termination as herein provided.

         (b) Grant of Options and Option Price. No later than the Grant Date of
any option, the Administrator shall determine the Option Price of such option.
The Option Price of any option granted on or prior to December 31, 1999 shall be
such amount as is determined by the Administrator in its discretion, and the
Option Price of any option granted on or after January 1, 2000 shall be not less
than the Fair Market Value of the Common Stock on the Grant Date.

         (c) Grant of Incentive Stock Options. If at the time of the grant of
any option the Option Price is (A) not less than 100% of the Fair Market Value
of the Stock on the Grant Date or (B) in the case of a 10% Owner, not less than
110% of the Fair Market Value of the Stock on the Grant Date, then the
Administrator may designate that such option shall be made subject to additional
restrictions to permit it to qualify as an "incentive stock option" under the
requirements of Section 422 of the Internal Revenue Code. Any option designated
as an incentive stock option:

                  (i) shall be for a period of not more than 10 years (five
         years, in the case of a 10% Owner) from the Grant Date, and shall be
         subject to earlier termination as provided herein or in the applicable
         Grant Agreement;

                  (ii) shall not have an aggregate Fair Market Value of Stock
         (determined for each incentive stock option on its Grant Date) with
         respect to which incentive stock options are exercisable for the first
         time by such Grantee during any calendar year (under the Plan and any
         other employee stock option plan of the Grantee's employer or any
         parent or subsidiary thereof ("Other Plans")), determined in accordance
         with the provisions of Section 422 of the Internal Revenue Code, which
         exceeds $100,000 (the "$100,000 Limit");

                  (iii) shall, if the aggregate Fair Market Value of Stock
         (determined on the Grant Date) with respect to all incentive stock
         options previously granted under the Plan and any Other Plans ("Prior
         Grants") and any incentive stock options under such grant (the "Current
         Grant") which are exercisable for the first time during any calendar
         year would exceed the $100,000 Limit, be exercisable as follows:

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                           (A) the portion of the Current Grant exercisable for
                  the first time by the Grantee during any calendar year which
                  would, when added to any portions of any Prior Grants, be
                  exercisable for the first time by the Grantee during such
                  calendar year with respect to stock which would have an
                  aggregate Fair Market Value (determined as of the respective
                  Grant Date for such options) in excess of the $100,000 Limit
                  shall, notwithstanding the terms of the Current Grant, be
                  exercisable for the first time by the Grantee in the first
                  subsequent calendar year or years in which it could be
                  exercisable for the first time by the Grantee when added to
                  all Prior Grants without exceeding the $100,000 Limit; and

                           (B) if, viewed as of the date of the Current Grant,
                  any portion of a Current Grant could not be exercised under
                  the provisions of the immediately preceding sentence during
                  any calendar year commencing with the calendar year in which
                  it is first exercisable through and including the last
                  calendar year in which it may by its terms be exercised, such
                  portion of the Current Grant shall not be an incentive stock
                  option, but shall be exercisable as a separate option at such
                  date or dates as are provided in the Current Grant;

                  (iv) shall be granted within 10 years after the earlier of the
         date the Plan is adopted or the date the Plan is approved by the
         stockholders of the Company; and

                  (v) shall require the Grantee to notify the Administrator of
         any disposition of any Stock issued pursuant to the exercise of the
         incentive stock option under the circumstances described in Section
         421(b) of the Internal Revenue Code (relating to certain disqualifying
         dispositions), within 10 days of such disposition.

Notwithstanding the foregoing and Section 4(b)(v), the Administrator may,
without the consent of the Grantee, at any time before the exercise of an option
(whether or not an incentive stock option), take any action necessary to prevent
such option from being treated as an incentive stock option.

         7. NON-TRANSFERABILITY. Each Option granted hereunder shall by its
terms not be assignable or transferable other than by will or the laws of
descent and distribution and may be exercised, during the Grantee's lifetime,
only by the Grantee. After the Grantee's death, an Option otherwise exercisable
may be exercised by the Grantee's personal representative prior to its transfer
or assignment by will or the laws of descent and distribution.

         8. EXERCISE. Subject to Sections 4(b)(vi), 9 and 14 and such terms and
conditions as the Administrator may impose, each option shall be exercisable in
one or more installments commencing on the Grant Date of such option. Each
option shall be exercised by delivery to the Company of written notice of intent
to purchase a specific number of shares of Common Stock subject to the option.
The Option Price of any shares of Common Stock as to which an option shall be
exercised shall be paid in full at the time of the exercise. Payment may, at the
election of the Grantee, be made in any one or any combination of the following:

                  (i) cash;

                  (ii) Common Stock valued at its Fair Market Value on the
         business day preceding the date of exercise (including through an
         attestation procedure);

                  (iii) upon the occurrence of a Change in Control or an IPO, or
         otherwise with the consent of the Administrator, by the surrender of
         all or part of the Option being exercised;

                  (iv) by waiver of compensation due or accrued to the Grantee
         for services rendered;

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                  (v) with the consent of the Administrator, by tender of
         property;

                  (vi) consideration received by the Company under any form of
         cashless exercise approved by the Administrator, including (provided
         that a public market for the Common Stock exists):

                           (A) a "same day sale" commitment from the Grantee and
                  a broker-dealer that is a member of the National Association
                  of Securities Dealers (an "NASD Dealer") whereby the Grantee
                  irrevocably elects to exercise the option and to sell a
                  portion of the Stock so purchased in order to pay for the
                  Option, and whereby the NASD Dealer irrevocably commits upon
                  receipt of such Stock to forward the Option Price directly to
                  the Company; or

                           (B) a "margin" commitment from the Grantee and an
                  NASD Dealer whereby the Grantee irrevocably elects to exercise
                  the option and to pledge the Stock so purchased to the NASD
                  Dealer in a margin account as security for a loan from the
                  NASD Dealer in the amount of the Option Price, and whereby the
                  NASD Dealer irrevocably commits upon receipt of such Stock to
                  forward the Option Price directly to the Company.

                  (vii) in the discretion of the Administrator and to the extent
         permitted by law, in accordance with Section 10.

         9. EFFECTS OF A CHANGE IN CONTROL. After the occurrence of a Change in
Control, then subject to Section 14 but notwithstanding any other provisions of
the Plan, all options granted under the Plan shall immediately be fully
exercisable.

         10. LOANS AND GUARANTEES. The Administrator may, in its discretion:

         (a) allow a Grantee to defer payment to the Company of all or any
portion of (i) the Option Price of an option, or (ii) any taxes associated with
a benefit hereunder which is not a cash benefit at the time such benefit is so
taxable, or

         (b) cause the Company to guarantee a loan from a third party to the
Grantee, in an amount equal to all or any portion of such Option Price or any
related taxes.

Any such payment deferral or guarantee by the Company pursuant to this Section
10 shall be on a secured or unsecured basis for such periods, at such interest
rates, and on such other terms and conditions as the Administrator may
determine. Notwithstanding the foregoing, a Grantee shall not be entitled to
defer the payment of such Option Price or any related taxes unless the Grantee
(i) enters into a binding obligation to pay the deferred amount and (ii) pays
upon exercise of an option, an amount equal to or greater than the aggregate par
value of all shares of Common Stock (other than treasury shares) to be then
delivered. If the Administrator has permitted a payment deferral or caused the
Company to guarantee a loan pursuant to this Section 10, then the Administrator
may, in its discretion, require the immediate payment of such deferred amount or
the immediate release of such guarantee upon the Grantee's Termination of
Employment or upon the Grantee's sale or other transfer of the Grantee's shares
of Common Stock purchased pursuant to such deferral or guarantee.

         11. NOTIFICATION UNDER SECTION 83(b). If the Administrator has not, on
the Grant Date or any later date, prohibited such Grantee from making the
following election, and a Grantee shall, in connection with the exercise of any
option, make the election permitted under Section 83(b) of the Internal Revenue
Code (i.e., an election to include in such Grantee's gross income in the year of
transfer the amounts specified in Section 83(b) of the Internal Revenue Code),
such Grantee shall notify the Company of such election within 10 days of filing
notice of the election with the Internal

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Revenue Service, in addition to any filing and notification required pursuant to
regulations issued under the authority of Section 83(b) of the Internal Revenue
Code.

         12. MANDATORY WITHHOLDING TAXES.

         (a) Whenever under the Plan, shares of Stock are to be delivered upon
exercise or payment of an Option, or any other event with respect to rights and
benefits hereunder, the Company shall be entitled to require as a condition of
delivery (i) that the Grantee remit an amount sufficient to satisfy all federal,
state and local withholding tax requirements related thereto, (ii) the
withholding of such sums from compensation otherwise due to the Grantee or from
any shares of Common Stock due to the Grantee under the Plan, or (iii) any
combination of the foregoing.

         (b) If any disqualifying disposition described in Section 6(c)(v) is
made with respect to shares of Common Stock acquired under an incentive stock
option granted pursuant to the Plan or any election described in Section 11 is
made, then the person making such disqualifying disposition or election shall
remit to the Company an amount sufficient to satisfy all federal, state, and
local withholding taxes thereby incurred; provided that, in lieu of or in
addition to the foregoing, the Company shall have the right to withhold such
sums from compensation otherwise due to the Grantee or from any shares of Common
Stock due to the Grantee under the Plan.

         13. ELECTIVE SHARE WITHHOLDING.

         (a) Subject to Section 13(b), a Grantee may elect the withholding
("Share Withholding") by the Company of a portion of the shares of Common Stock
otherwise deliverable to such Grantee upon the exercise or payment of an Option
(a "Taxable Event") having a Fair Market Value equal to:

                  (i) the minimum amount necessary to satisfy required federal,
         state, or local withholding tax liability attributable to the Taxable
         Event; or

                  (ii) with the Administrator's prior approval, a greater
         amount, not to exceed the estimated total amount of such Grantee's tax
         liability with respect to the Taxable Event.

         (b) Each Share Withholding election by a Grantee shall be made in
writing in a form acceptable to the Administrator and shall be subject to the
following restrictions:

                  (i) a Grantee's right to make such an election shall be
         subject to the Administrator's right to revoke such right at any time
         before the Grantee's election if the Administrator has reserved the
         right to do so in the Grant Agreement;

                  (ii) the Grantee's election must be made before the date (the
         "Tax Date") on which the amount of tax to be withheld is determined;

                  (iii) the Grantee's election shall be irrevocable by the
         Grantee;

                  (iv) in the event that the Tax Date is deferred until six
         months after the delivery of Common Stock under Section 83(b) of the
         Internal Revenue Code, the Grantee shall receive the full amount of
         Common Stock with respect to which the exercise occurs, but such
         Grantee shall be unconditionally obligated to tender back to the
         Company the proper number of shares of Common Stock on the Tax Date.

         14. TERMINATION OF EMPLOYMENT. If a Grantee has a Termination of
Employment for any reason other than the death of the Grantee, any unexercised
Option or part of an Option will terminate immediately. If the

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Termination of Employment is the result of the death of the Grantee, all Options
granted to the Grantee will be fully exercisable notwithstanding any vesting
period that may have been established and the personal representative of the
Grantee or any person to whom the Option is transferred by the Grantee's will or
in accordance with the laws of descent and distribution may exercise the
unexercised portion of the Option at any time prior to the earlier of one year
after the date of the Grantee's death or the original expiration date of the
Option.

         15. SECURITIES LAW MATTERS.

         (a) If the Administrator deems necessary to comply with the Securities
Act of 1933, or any rules, regulations or other requirements of the SEC or any
stock exchange or automated quotation system, the Administrator may require a
written investment intent representation by the Grantee and may require that a
restrictive legend be affixed to certificates for shares of Common Stock, or
that the Common Stock be subject to such stock transfer orders and other
restrictions as the Administrator may deem necessary or advisable.

         (b) If based upon the opinion of counsel for the Company, the
Administrator determines that the exercise of, or delivery of benefits pursuant
to, any Option would violate any applicable provision of (i) federal or state
securities law or (ii) the listing requirements of any national securities
exchange on which are listed any of the Company's equity securities, then the
Administrator may postpone any such exercise or delivery, as the case may be,
but the Company shall use reasonable and good faith efforts to cause such
exercise or delivery to comply with all such provisions at the earliest
practicable date. The Administrator's authority under this Section 15(b) shall
expire on the date of the first Change in Control to which Section 9 applies.

         (c) The Company shall be under no obligation to register the Common
Stock with the SEC or to effect compliance with the registration, qualification
or listing requirements of any state securities laws, stock exchange or
automated quotation system, and the Company shall have no liability for any
inability or failure to do so.

         16. FUNDING. Benefits payable under the Plan to any person shall be
paid directly by the Company. The Company shall not be required to fund, or
otherwise segregate assets to be used for payment of, benefits under the Plan.

         17. NO EMPLOYMENT RIGHTS. Neither the establishment of the Plan, nor
the granting of any Option shall be construed to (a) give any Grantee the right
to remain employed by the Company or any of its Subsidiaries or to any benefits
not specifically provided by the Plan, or (b) in any manner modify the right of
the Company or any of its Subsidiaries to modify, amend, or terminate any of its
employee benefit plans.

         18. RIGHTS AS A STOCKHOLDER. A Grantee shall not, by reason of any
Option have any right as a stockholder of the Company with respect to the shares
of Common Stock which may be deliverable upon exercise or payment of such Option
until such shares have been delivered to such Grantee.

         19. NATURE OF PAYMENTS. Any and all grants or deliveries of shares of
Stock hereunder shall constitute special incentive payments to the Grantee and
shall not be taken into account in computing the amount of salary or
compensation of the Grantee for the purposes of determining any pension,
retirement, death or other benefits under (a) any pension, retirement,
profit-sharing, bonus, life insurance or other employee benefit plan of the
Company or any of its Subsidiaries, or (b) any agreement between the Company or
any Subsidiary, on the one hand, and the Grantee, on the other hand, except as
such plan or agreement shall otherwise expressly provide.

         20. NON-UNIFORM DETERMINATIONS. The Administrator's determinations
under the Plan need not be uniform and may be made by the Administrator
selectively among persons who receive, or are eligible to receive, Options
(whether or not such persons are similarly situated). Without limiting the
generality of the foregoing, the Administrator shall be entitled, among other
things, to make non-uniform and selective determinations and to enter into

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non-uniform and selective Grant Agreements as to (a) the identity of the
Grantees, (b) the terms and provisions of Options, and (c) the treatment, under
Section 14, of Terminations of Employment. Notwithstanding the foregoing, the
Administrator's interpretation of Plan provisions shall be uniform as to
similarly situated Grantees.

         21. ADJUSTMENTS. The Administrator shall make equitable adjustment of:

                  (i) the aggregate numbers of shares of Common Stock available
         under Section 3(a);

                  (ii) the number of shares of Common Stock covered by an
         Option; and

                  (iii) the Option Price

to reflect a stock dividend, stock split, reverse stock split, share
combination, recapitalization, merger, consolidation, asset spin-off,
reorganization, or similar event of or by the Company.

         22. ADOPTION AND SHAREHOLDER APPROVAL. The Plan shall be approved by
the shareholders of the Company (excluding holders of Common Stock issued
pursuant to this Plan), consistent with applicable laws, within 12 months before
or after the Effective Date. Upon the Effective Date, the Board may grant
Options pursuant to the Plan; provided, however, that: (a) no option may be
exercised prior to initial shareholder approval of the Plan; (b) no option
granted pursuant to an increase in the number of shares of Common Stock approved
by the Board shall be exercised prior to the time such increase has been
approved by the shareholders of the Company; and (c) in the event that
shareholder approval is not obtained within the time period provided herein, all
Options granted hereunder shall be canceled, any Common Stock issued pursuant to
any Option shall be canceled and any purchase of Common Stock hereunder shall be
rescinded.

         23. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of the Plan by the
Board, the submission of the Plan to the shareholders of the Company for
approval, nor any provision of the Plan shall be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including the granting of stock options
and bonuses otherwise than under the Plan, and such arrangements may be either
generally applicable or applicable only in specific cases.

         24. AMENDMENT OF THE PLAN. The Board may from time to time in its
discretion amend or modify the Plan without the approval of the stockholders of
the Company.

         25. TERMINATION OF THE PLAN. The Plan shall terminate on the tenth
anniversary of the Effective Date or at such earlier time as the Board may
determine. Any termination, whether in whole or in part, shall not affect any
Option then outstanding under the Plan.

         26. BUYOUT PROVISIONS. The Administrator may at any time offer to buy
out for a payment in cash or shares of Common Stock an Option previously
granted, on such terms and conditions as the Administrator establishes and
communicates to the Optionee at the time the offer is made.

                                       10<PAGE>   1
                                                                    EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into
this 3rd day of March, 1999, by and between First State Bank of Morgantown, an
Indiana state-chartered commercial bank (the "Bank"), and Jerry Engle, a
resident of Greenwood, Indiana (the "Executive").

                                WITNESSETH THAT:

         WHEREAS, the Bank desires to employ the Executive to serve as Chief
Executive Officer of the Bank; and

         WHEREAS, the Executive desires to become employed by the Bank to
fulfill such duties;

         NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         1.       Employment and Substitution of Employer.

                  (a) The Bank shall employ the Executive as Chief Executive
         Officer of the Bank during the Period of Employment (as defined in
         Section 1(b) below), on a full-time basis in accordance with the terms
         and conditions set forth in this Agreement.

                  (b) The Period of Employment shall be deemed to have commenced
         on the date of this Agreement and shall end three years from the date
         of this Agreement, except as provided below. The Period of Employment
         shall be automatically extended for one additional year on each
         anniversary of the date of commencement, unless either party gives
         written notice of termination of such automatic extension at least
         thirty days prior thereto, in which event this Agreement shall
         terminate at the end of the three-year period in effect at the time
         such notice is given. Notwithstanding the immediately preceding
         sentence, the Period of Employment shall terminate upon the Executive's
         retirement at the age of 65, unless the Board of Directors of the Bank
         provides for a later retirement date by resolutions duly authorized and
         adopted.

         2.       Position, Duties, Responsibilities.

                  (a) The Executive shall serve, during the Period of
         Employment, as the President and Chief Executive Officer of the Bank,
         with such duties and responsibilities normally associated with such a
         position and as further specified by the Bank's Board of Directors.

<PAGE>   2

                  (b) Throughout the Period of Employment, the Executive shall
         devote his full time and attention during normal business hours to the
         business and affairs of the Bank and shall be available to attend to
         the Bank's matters as such needs may arise, except as otherwise
         specified and directed by the Board of Directors of the Bank and except
         for vacations and illness or incapacity, but nothing in this Agreement
         shall preclude the Executive from engaging in charitable and community
         activities and managing his personal investments.

         3.       Compensation and Related Matters.

                  (a) During the Period of Employment, for all services rendered
         by the Executive in any capacity to or for the Bank or to BJ Morgan
         Bancshares, Inc. (the "Holding Company"), the Bank shall pay to the
         Executive an annual base salary of $150,000 (with any increases in such
         base salary as the Bank, in its sole discretion, shall determine),
         payable in installments according to the Bank's regular salary payment
         schedule. Notwithstanding the above, on the first day following a
         Qualifying Six Month Period, the Executive's annual base salary shall
         be increased to $160,000; provided, however, that if the applicable six
         months comprising such Qualifying Six Month Period shall fall entirely
         in 1999, the increase in base salary to $160,000 shall be retroactive
         to the date of this Agreement. For purposes of the immediately
         preceding sentence, the term "Qualifying Six Month Period" shall mean
         any consecutive six calender months in which the Bank, on an annualized
         basis, achieves a return on average assets of at least 0.75 percent. If
         the Period of Employment terminates prior to the completion of any
         calendar year, the annual base salary shall be pro-rated, as deemed
         appropriate by the Bank, in its sole discretion, to reflect the
         percentage of such calendar year for which the Executive was employed
         by the Bank.

                  (b) For each calendar year during the Period of Employment,
         the Bank shall pay the Executive such bonuses or performance awards as
         the Bank may determine, in accordance with a bonus program upon which
         the Bank and the Executive shall mutually agree.

                  (c) During the Period of Employment, the Bank shall provide
         the Executive the opportunity to participate in any employee welfare
         benefit program, including any group hospitalization or medical plan,
         health care plan, dental care plan, life or other insurance or death
         benefit plan, disability or other similar plan or program as the Bank
         makes available to its executive employees generally. However, the Bank
         cannot guarantee participation, which is based on eligibility and
         coverage rules of the insurance companies. The Bank further does not
         guarantee payment of benefits.

                  (d) During the Period of Employment, the Bank shall provide
         the Executive the opportunity to participate in such retirement plans,
         including 401(k) and pension

                                       2

<PAGE>   3

         plans or other similar plan or program, as the Bank makes available to
         its executive employees generally.

                  (e) During the Period of Employment, the Executive shall be
         entitled to a minimum of twenty business days of compensated vacation
         leave in each calendar year. The Executive may not carry forward
         accrued but unused vacation days into the immediately subsequent
         calendar year. The Executive is not entitled to any additional
         compensation for vacation days earned but not taken in a calendar year.
         The Executive shall be entitled to such holidays as the Bank makes
         available to all of its employees generally.

                  (f) During the Period of Employment, the Executive shall be
         entitled to the normal benefits attendant to his position, including
         and office and secretarial and clerical staff.

                  (g) In addition to the items of compensation set forth above,
         and as an inducement to the Executive to become employed by the Bank,
         the Bank agrees to grant to the Executive options to purchase a total
         of 6,500 shares of the Holding Company pursuant to the following terms
         and conditions:

                  (i) The options will be granted at an exercise price equal to
                  the book value per share of the outstanding stock of the
                  Holding Company as at the last day of the fiscal quarter ended
                  immediately prior to the date of grant of the options, as
                  further set forth in the 1999 Stock Option Plan (the "Option
                  Plan") of the Holding Company, which is yet to be prepared but
                  which will be substantially similar to the currently existing
                  stock option plan of the Holding Company attached to this
                  Agreement as Exhibit A.

                  (ii) The options to purchase shares of the Holding Company
                  will be granted to the Executive in two, separate blocks of
                  3,250 each. The first grant of options to purchase 3,250
                  shares will be granted to the Executive immediately following
                  the receipt of shareholder approval of the Option Plan at the
                  1999 Annual Meeting of Shareholders. The second grant of
                  options to purchase 3,250 shares will be granted to the
                  Executive no later than the 15th day of the month immediately
                  following a Qualifying Six Month Period.

                  (iii) The grant of the options is also subject to the receipt
                  by the Executive and, if necessary, the Holding Company, of
                  all necessary regulatory approvals pertaining to a change in
                  control of the Holding Company. The options hereby granted to
                  the Executive are governed entirely by the Option Agreement
                  and Option Plan, and nothing contained in this Agreement, nor
                  any action of the Executive or the Bank, shall be deemed to
                  modify, amend, or otherwise affect the validity of such
                  options.

                                       3
<PAGE>   4

         4.       Confidential Information.

                  (a) Except for necessary disclosures made in the ordinary
         course of the Executive's employment with the Bank and except as is
         otherwise expressly authorized by the Bank in writing, the Executive
         agrees and promises that the Executive will not at any time, whether
         during the Period of Employment or at any time thereafter, directly or
         indirectly disclose or use, on the Executive's own behalf or on behalf
         of any third party, whether as an agent, employee, employer, officer,
         Director, shareholder, member, principal, consultant, independent
         contractor, partner, creditor, or in any other capacity, any secret,
         confidential or proprietary information obtained, received or learned
         by the Executive during the Period of Employment (including information
         conceived, originated, discovered or developed by the Executive)
         including, but not limited to, the following types of information:
         ideas, concepts, designs, specifications, technical data, prototypes,
         documentation, media, codes, discoveries, programs, methods,
         procedures, business plans, marketing strategies and plans, sales
         techniques, forecasts, customer lists, customer information (including,
         but not limited to, customer requirements, preferences, past activities
         and other relevant data and information), customer pricing information,
         employee lists and information, processes, formulae, research,
         development, inventions, trademarks, trade names, trade secrets,
         proposals, projections, and financial information, whether or not the
         same are, or may be, patented, copyrighted, registered, or otherwise
         publicly protected, and whether or not originated or generated by or
         through the Bank or the Bank; provided, however, that this Section 4
         shall not preclude the Executive from use or disclosure of information
         known generally to the public (provided that the Executive was not,
         without the Bank's consent, directly or indirectly responsible for such
         information becoming known generally to the public) or from disclosure
         required by law or court order.

                  (b) The Executive agrees and promises that all documents and
         records and copies of documents and records pertaining to the financial
         affairs, operations, customers, employees and business of the Bank or
         the Bank, including, but not limited to, price lists, customer lists,
         employee lists, marketing data, sales aids, notes (even if made by or
         delivered to the Executive), and every other document or record
         obtained by the Executive in the course and scope of the Executive's
         employment with the Bank, shall be the exclusive property of the Bank,
         shall be held by the Executive subject to the control of the Bank and
         shall be delivered and surrendered by the Executive to the Bank on
         demand and immediately, without demand, upon termination of the
         Executive's employment with the Bank.

         5.       Termination by the Bank.

                  (a) During the Period of Employment, the Bank may terminate
         the Executive's employment under this Agreement and the Period of
         Employment without a breach by the Bank of this Agreement only (i) for
         "Cause" (as defined in Section 5(b)) or (ii) upon the Executive's death
         or "Disability" (as defined in Section 5(c)).

                                       4
<PAGE>   5

                  (b) For purposes of this Agreement, the Bank shall have
         "Cause" to terminate the Executive's employment under this Agreement
         and the Period of Employment upon the happening of any of the
         following:

                           (i) the continued failure of the Executive to perform
                  any of the Executive's duties or responsibilities in
                  connection with the Executive's employment to the reasonable
                  satisfaction of the Board of Directors (other than any such
                  failure resulting from the Executive's Disability (as defined
                  below)) if such failure is not corrected or cured within 15
                  days after demand for performance is made in writing upon the
                  Executive by the Bank specifically identifying the manner in
                  which the Bank believes the Executive has failed to perform
                  one or more of the Executive's duties or responsibilities
                  (repetition of the same failure as previously described in any
                  such written demand after the 15-day cure period following
                  such written demand shall be deemed to be "continued failure"
                  to perform by the Executive; or

                           (ii) any act that constitutes on the part of the
                  Executive common law fraud or dishonesty that resulted in, or
                  was intended to result in, a benefit to the Executive at the
                  expense of the Bank; or

                           (iii) the conviction of the Executive of, or the plea
                  by the Executive of, nolo contendere to, a felony or a crime
                  involving moral turpitude; or

                           (iv) any continuing material violation by the
                  Executive of any of the Bank's policies or of any term or
                  provision of this Agreement or other agreement between the
                  Executive and the Bank which, in any such case, is not
                  corrected or abated by the Executive within 15 days after
                  written notice of such violation is given by the Bank to the
                  Executive (repetition of the same violation as previously
                  described in any such written notice after the 15 day
                  correction period following such written notice shall be
                  deemed to be a "continuing violation" by the Executive); or

                           (v) the willful and material violation by the
                  Executive of any law, rule or regulation, other than traffic
                  violations or similar offenses, or of a final cease-and-desist
                  order;

                           (vi) the Executive's unexcused total abandonment or
                  neglect of the Executive's duties and responsibilities in
                  connection with the Executive's employment with the Bank
                  (other than absences due to illness, physical or mental
                  incapacity, vacations, or other excused absences) for a
                  continuous period of twenty working days.

         For purposes of this Section 5(b), an act, or failure to act, on the
         Executive's part shall be considered "willful" only if (i) the act or
         omission was not in good faith and (ii) the

                                       5
<PAGE>   6

         Executive did not have a reasonable belief that the action or omission
         was in the best interest of the Bank.

                  (c) The Bank may terminate the Executive's employment under
         this Agreement and the Period of Employment if, during the Period of
         Employment, the Executive shall die or suffer a "Disability" (as
         hereinafter defined). The Executive shall be considered to have
         suffered a "Disability" only upon the actual receipt by the Executive
         of income continuation benefits pursuant to a disability insurance
         policy as a result of a determination under such policy that the
         Executive is disabled. Notwithstanding anything expressed or implied to
         the contrary above, the Bank shall take no action to terminate the
         Period of Employment, and this Section shall not be deemed to authorize
         the Association to terminate the Period of Employment, if such action
         would violate the Americans with Disabilities Act of 1990, as
         subsequently amended, or any other applicable federal, state, or local
         laws, regulations, or ordinances.

         6.       Termination by the Executive for Good Reason.

                  (a) In the event that the Executive should reasonably
         determine in good faith that his status, functions, duties or
         responsibilities with the Bank have diminished subsequent to the
         execution of this Agreement, and shall resign for that reason from his
         employment with the Bank during the Period of Employment, the Executive
         shall be considered to have resigned for Good Reason and, subject to
         the notice requirement of Section 6(b) hereof, shall be entitled to
         receive all the Severance Benefits specified in Section 8 hereof. Good
         Reason shall also include the breach by the Bank of any of the material
         terms, provisions, duties, and responsibilities set forth in this
         Agreement.

                  (b) The Executive shall be required to give a thirty (30) day
         Notice to the Bank of his intent to resign for Good Reason. This Notice
         shall include a statement of all reasons, including any breach of the
         terms of this Agreement, for such resignation. The Bank shall have
         thirty (30) days in which to cure any breach and remedy any reason for
         such resignation. Failure by the Executive to provide the Notice
         required by this section shall result in forfeiture by the Executive of
         all rights, payments, and benefits granted under Section 8 hereof.

         7. Termination by the Executive for Other Than Good Reason. After this
Agreement becomes effective, the Executive may terminate the Executive's
employment under this Agreement and the Period of Employment without a breach by
the Executive of this Agreement, at any time, for any reason, which reason need
not be disclosed to the Bank, by giving the Bank no fewer than sixty days'
advance notice in writing. Any longer notice shall be subject to the approval of
the Bank. The Executive shall receive full compensation during the notice
period. At its sole discretion, the Bank shall determine whether to require that
the Executive perform the Executive's duties for the Bank during the notice
period. Upon termination of the Executive's employment pursuant to this

                                       6
<PAGE>   7

Section 7, and following the applicable notice period, the Bank shall have no
further obligations under Section 1 or Section 3 of this Agreement.

         8.       Severance Benefits.

                  (a) In the event of the termination of the Executive's
         employment under this Agreement and the Period of Employment (i) by the
         Bank for a reason other than (A) Cause, or (B) upon the Executive's
         death or Disability or (ii) by the Executive pursuant to Section 6
         above, the severance benefits provided for by this Section 8 shall
         constitute the entire obligation of the Bank to the Executive and shall
         constitute full settlement of any claim under law or in equity that he
         might otherwise assert against the Bank or any of its employees or
         Directors or agents on account of such termination. Such amounts are
         liquidated damages for the failure of the Bank to perform its
         obligations under this Agreement and severance pay and are not a
         penalty.

                  (b) In the event of the termination of the Period of
         Employment as set forth in Section 8(a) above:

                           (i) The Bank shall pay the Executive cash within ten
                  business days following the date the Executive's employment
                  with the Bank is terminated (the "Termination Date") and by
                  the fifth business day of each month following the month in
                  which the Termination Date falls through the last month of the
                  Period of Employment an amount equal to the sum of 1/12th of
                  the Executive's annual base salary at the highest rate during
                  the twelve months preceding the Termination Date. The Bank
                  shall withhold from this, and all other benefits payable under
                  this Agreement, all federal, state, city, county, or other
                  taxes as shall be required pursuant to any law or governmental
                  regulation or ruling; and

                           (ii) Until the expiration of the Period of
                  Employment, the Bank shall maintain in full force and effect
                  for the continued benefit of the Executive each employee
                  welfare benefit program described in Section 3(c) above. If
                  the terms of any such program of the Bank does not permit
                  continued participation by the Executive, then the Bank shall
                  arrange to provide to the Executive a benefit substantially
                  similar to, in no less favorable then, the benefit he was
                  entitled to receive under such program the end of the period
                  of coverage.

At the sole discretion of the Bank, such severance may be paid in a lump sum.
The Bank shall withhold from such severance benefit payment or payments all
federal, state, city, county or other taxes as shall be required pursuant to any
law or governmental regulation or ruling.

                                       7
<PAGE>   8

         9.       Noncompetition and Nonsolicitation.

                  (a) For purposes of this Agreement, the following words and
         phrases (including the plural form thereof), when used as capitalized
         defined terms, shall have the following meanings:

                           (i) "Person" means and includes an individual or an
                  association or group of individuals, a proprietorship, a
                  partnership, a company, a corporation, a limited liability
                  company, an unincorporated association, a governmental or
                  other public agency or instrumentality, and any other firm,
                  association, venture, organization or entity of any type or
                  nature whatsoever.

                           (ii) "Customer" means all Persons who, as of the date
                  of the termination of the Period of Employment, have a deposit
                  account, loan, or any other product and/or service with or
                  from the Bank;

                           (iii) "Competitor" means any Person that provides or
                  that seeks to provide to any Customer products and/or services
                  identical or substantially similar to products and/or services
                  that the Bank provides or seeks to provide to any Customer as
                  of the date of the termination of the Period of Employment.

                  (b) The Executive promises and agrees that, for the 24 months
         following the termination of the Period of Employment (i) by the Bank
         for Cause or (ii) by the Executive for any reason other than Good
         Reason pursuant to Section 7 above, the Executive will not directly or
         indirectly, either on the Executive's own behalf or on behalf of any
         Competitor, whether as an agent, employee, employer, officer, director,
         shareholder, member, principal, independent contractor, partner, or
         creditor, or in any other capacity, solicit or attempt to solicit any
         Customer of the Bank for the purpose of providing or seeking to provide
         products and/or services identical or substantially similar to the
         products and/or services available to such Customer from the Bank as of
         the date of the termination of the Period of Employment.

         10. Breach Not a Defense. The breach or violation by the Bank of this
Agreement or of any oral or written employment or employment-related agreement
between the Bank and the Executive or of any provision hereof or thereof (a
"Bank Breach") shall not constitute a legal justification or other legal excuse
for the breach or noncompliance by the Executive of or with the covenants of the
Executive set forth in Section 4 above (the "Executive Covenants"). In any
action commenced by or on behalf of the Bank against the Executive to enforce
any of the Executive Covenants, no Bank Breach shall constitute or serve as a
factual basis for, and no Bank Breach may be asserted by the Executive as
constituting, a defense or other matter of avoidance (legal or equitable) with
respect to the Executive's alleged breach or violation of any of the Executive
Covenants

                                       8
<PAGE>   9

         11. Mitigation. The amount of any payment provided for in Section 8
shall be reduced by any compensation (but not including income from investments
or other sources that are not considered "wages" or "self-employment income" as
defined in the Internal Revenue Code) earned by the Executive from other sources
after the termination of Executive's employment with the Bank.

         12. Legal Expenses. In the event that the Bank or the Executive
institutes any legal action to enforce its respective rights under this
Agreement or to recover damages for breach of this Agreement, the prevailing
party shall be entitled to recover from the non-prevailing party actual expenses
for attorneys' fees and disbursements incurred by it or him.

         13. Specific Performance. The parties to this Agreement recognize and
acknowledge that an adequate remedy at law may not exist for the breach of
certain provisions of this Agreement and that irreparable damage may result in
the event that this Agreement is not specifically enforced. Accordingly, the
Executive and the Bank hereby agree and consent that the other shall be entitled
to a decree of specific performance, mandamus, or other appropriate remedy to
enforce performance of this Agreement. Such remedy shall, however, be cumulative
and not exclusive, and shall be in addition to any other remedy or right that
the Executive or the Bank may have pursuant to the terms of this Agreement.

         14. Notices. Any notice, request, demand or other communication to be
given hereunder to any party by any other party shall be in writing and shall be
personally delivered or sent by prepaid same day or over night courier or
certified mail, return receipt requested, postage prepaid, addressed as follows
(or addressed to such other address as shall be given in writing by any party to
the others):

         To the Bank:               First State Bank of Morgantown
                                    180 Washington Street
                                    P.O. Box 255
                                    Morgantown, Indiana 46160-0255
                                    Attention: H. Dean Hawkins
                                    Chairman of the Board of Directors

         To the Executive:          Jerry Engle
                                    345 S. Oakwood
                                    Greenwood, Indiana 46142

         15. Entire Agreement; Modification; Waiver. This document contains the
entire agreement of the Bank and the Executive. No supplement, modification or
amendment to this Agreement shall be binding unless executed in writing by the
parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provision, whether or not
similar, nor will any waiver constitute a continuing waiver. No waiver will be
binding unless executed in writing by the party making the waiver.

                                       9
<PAGE>   10

         16. Headings; Pronouns. Headings in this Agreement are for convenience
only and shall not be used to interpret or construe its provisions. All pronouns
and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the person or persons may require.

         17. Severability. Should any clause, portion or section of this
Agreement be unenforceable or invalid for any reason, such unenforceability or
invalidity shall not affect the enforceability or validity of the remainder of
this Agreement, and any court having jurisdiction is specifically authorized and
encouraged by the parties to hold inviolate all portions of this Agreement that
are valid and enforceable without consideration of any invalid or unenforceable
portions hereof.

         18. Governing Law. This Agreement shall be construed, interpreted and
governed in all respects by the laws of the State of Indiana. The parties intend
the provisions of this Agreement to supplement, but not displace, their
respective rights and responsibilities under the Indiana Uniform Trade Secrets
Act, I.C. 24-2-3, as such statute may be amended from time to time.

         19. Binding Effect. This Agreement is binding upon the Bank and the
Executive, their heirs, executors, administrators, successors, and assigns,
including without limitation any successor to the Bank by means of a merger or
consolidation. No right or interest to or in any benefits under this Agreement
shall be assignable by the Bank or the Executive without the prior written
consent of the nonassigning party; provided, however, that this provision shall
not preclude the Executive from designating one or more beneficiaries to receive
any amount that may be payable after the Executive's death.

         20. Reasonableness of Terms. The Bank and the Executive stipulate and
agree that the covenants and the other terms contained in this Agreement are
reasonable in all respects.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above written. By affixing his name hereto, the Executive
acknowledges that he has received and read a fully-executed copy of this
Agreement.

                                      THE "BANK"

                                      First State Bank of Morgantown

                                      By: /s/ H. Dean Hawkins
                                         --------------------------------------
                                          Chairman of the Board of Directors

                                      THE "EXECUTIVE"

                                        /s/  Jerry R. Engle
                                      -----------------------------------------
                                      Jerry Engle

                                       10

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