Document:

Exhibit 10.3

November 13, 2000

AT&T Wireless Services, Inc.
7277 164th Avenue, N.E.
Redmond, WA 98052

      Re:  Sale of Subject Shares
           ----------------------

Ladies and Gentlemen:

      AT&T Wireless Services, Inc. ("AWS"), and Thomas H. Sullivan (the
"Management Stockholder"), wish to set forth in this Letter Agreement (the
"Letter Agreement"), certain rights and obligations with respect to the shares
of Voting Preference Stock, par value $0.01 per share, Class C Common Stock, par
value $0.01 per share, and Class D Common Stock, par value $0.01 per share,
(collectively, the "Subject Stock") of Telecorp PCS, Inc. (the "Company") held
by the Management Stockholders.

      For and in consideration of One Hundred Dollars ($100.00), in aggregate,
in hand paid, the mutual premises and covenants set forth herein, and for other
good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged conclusively, AWS, on the one hand, and the Management Stockholder,
on the other hand, intending to be and being legally bound, agree as follows:

      1. Transfer of Subject Shares. The Management Stockholder agrees that he
will not Transfer any shares of Subject Stock without complying with the terms
of this Letter Agreement. The Management Stockholder agrees that (i) in
connection with any Transfer permitted by this Letter Agreement he will Transfer
all, and not less than all, of the shares of Subject Stock held by the
Management Stockholder, and (ii) he will not Transfer any shares of Subject
Stock other than for cash and/or shares of a publicly traded stock (such shares
to be valued at the average closing price for the ten (10) trading days randomly
selected by lot from the twenty (20) consecutive trading days ending three (3)
days prior to the execution of the Sale Offer). Any Transfer of Subject Stock by
the Management Stockholder other than a Transfer made after complying with the
requirements of this Letter Agreement to provide AWS with the Purchase Right (as
hereinafter defined) shall be null and void. In addition, no Transfer of Subject
Stock by the Management Stockholder may be made to any Person other than AWS or
its designee if (i) such Transfer would result in the Company being in violation
of any statute, rule or regulation of the Federal Communications Commission and
(ii) unless such Person enters into an agreement with AWS pursuant to which it
will have the same obligations it would have as a "Stockholder" if it were a
signatory to that certain Stockholders Agreement dated November 13, 2000 by and
between AT&T Wireless PCS, LLC, the Management Stockholder, the Other
Shareholders named therein, and the Cash Equity Investors named therein,
including without limitation the obligation to vote such Person's Voting
Preference Stock in accordance with the provisions of Sections

<PAGE>

3.1(d) and 3.1(e)(i) and (iii) of. As used herein, "Transfer" shall mean any (i)
proposed direct or indirect transfer, sale, or assignment, whether by operation
of law or otherwise, (ii) any proposed pledge or grant, creation or sufferage of
a lien in or upon the Subject Stock (a "Pledge"), provided that a Pledge will
not be deemed to be a Transfer if the person(s) and/or entities receiving a
direct or indirect interest in the Subject Stock (the "Pledgee") acknowledges in
writing the existence of this Agreement and agrees in writing that the Purchase
Right must be complied with before the Pledgee can foreclose on or otherwise
exercise any dominion or control over the Subject Stock, or (iii) proposing to
give, place in trust (including transfers by testamentary or intestate
succession) or other any other contract or transaction that has the effect of
transferring beneficial ownership (as such term is defined in Rule 13d-3 of the
Securities Exchange Act, as amended) of the Subject Stock (an "Effective
Transfer"), provided that an Effective Transfer shall not be deemed to be a
Transfer if the person(s) and/or entities acquiring beneficial ownership of the
Subject Stock (the "Effective Transferee") acknowledges in writing the existence
of this Agreement and agrees in writing that the Purchase Right must be complied
with before the Effective Transferee can exercise control over the Subject Stock
or effect a Transfer of it.

      2. Right of First Refusal. In the event the Management Stockholder
receives or otherwise negotiates with a prospective purchaser (the "Purchaser")
a written bona fide offer (the "Sale Offer") to purchase all but not less than
all of such Management Stockholder's Subject Stock, and the Management
Stockholder intend to accept such offer, then the Management Stockholder shall
provide AWS written notice (the "Notice") of such offer, which notice shall
describe in reasonable detail the material terms of the Sale Offer, including
the name and address of the Purchaser, and the proposed purchase price. AWS
shall have the irrevocable right and option, but not the obligation (the
"Purchase Right"), to purchase (or to designate another party to purchase) the
Subject Stock at the same price and on the same terms as set forth in the Notice
by giving written notice thereof to the Management Stockholder within thirty
(30) days of the date of the Notice; provided, however, that in lieu of cash,
the purchase price for the Subject Stock may, at the option of AWS, be paid to
the Management Stockholder in either, or a combination of, cash or shares of
AT&T Wireless Group Tracking Stock (or any successor security which is publicly
traded) valued at the average closing price for the ten (10) trading days
randomly selected by lot from the twenty (20) consecutive trading days ending
three (3) days prior to the execution of any agreement providing for the
purchase of the Subject Stock by AWS or its designee. Any such purchase pursuant
to the Purchase Right shall be closed at the principal executive offices of the
Company within thirty (30) days after the date notice of such purchase is
delivered by AWS to the Management Stockholder; provided, however, that if such
purchase is subject to the consent of the Federal Communications Commission
("FCC") or any public service or public utilities commission, such purchase
shall by closed on the fifth business day after all such consents shall have
been obtained by Final Order as such term is commonly used in connection with
assignments and transfers of licenses issued by the FCC. If AWS declines (which
shall include the failure to give timely notice of acceptance) to accept such
offer, the Management Stockholder shall have the right, for a period of one
hundred

<PAGE>

twenty (120) days following the expiration of the thirty (30) day acceptance
period referred to above to close the Transfer described in the Notice on
identical terms with those set forth in the Notice (except that the price must
be at least 95% of the price set forth in the Notice); provided, however, that
if such purchase is subject to the consent of the FCC or any public service or
public utilities commission, the period for consummation of such purchase shall
by increased to the fifth business day after all such consents shall have been
obtained by Final Order. If, after delivering a Notice, the Management
Stockholder does not close a Transfer in accordance with the terms of the
immediately preceding sentence, the Management Stockholder shall not effect any
Transfer without giving another notice in accordance with this Letter Agreement.

      3. Share Certificates

     (a) Each certificate representing the shares of Subject Stock now or
hereafter held by the Management Stockholder or delivered in substitution or
exchange for any of the foregoing certificates shall be stamped with legends in
substantially the following form:

      "The shares represented by this Certificate are subject to an Agreement
      dated as of __________, 2000, a copy of which is on file at the offices of
      the Company and will be furnished by the Company to the holder hereof upon
      written request. Such Agreement provides, among other things, for the
      granting of certain restrictions on the sale, transfer, pledge,
      hypothecation or other disposition of the shares represented by this
      Certificate, and that under certain circumstances, the holder hereof may
      be required to sell the shares represented by this Certificate. By
      acceptance of this Certificate, each holder hereof agrees to be bound by
      the provisions of such Agreement. The Company reserves the rights to
      refuse to transfer the shares represented by this Certificate unless and
      until the conditions to transfer set forth in such Agreement have been
      fulfilled."

     (b) The Management Stockholder agrees that he, she or it will deliver all
      certificates for shares of Subject Stock owned by him, her or it to the
      Company for the purpose of affixing such legends thereto.

     (c) Such legends shall be removed upon the earlier of (x) expiration of
      this Agreement and (y) the consummation of a transaction involving such
      within the meaning of part (i) of the definition of Transfer in compliance
      with the provisions hereof, provided that legends shall only be removed
      from Subject Shares included in such transaction.

      4. Equitable Relief. The parties hereto agree and declare that legal
remedies may be inadequate to enforce the provisions of this Letter Agreement
and that, in addition to being entitled to exercise all of the rights provided
herein or granted by law, including recovery of damages, equitable relief,
including specific performance and injunctive relief, may be used to enforce the
provisions of this Letter Agreement.

<PAGE>

      5. Notices. All notices or other communications hereunder shall be in
writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by facsimile transmission, or by registered or
certified mail (return receipt requested), postage prepaid, with an
acknowledgment of receipt signed by the addressee (or electronic confirmation in
the case of facsimile transmission)or an authorized representative thereof,
addressed as follows (or to such other address for a party as shall be specified
by like notice; provided that notice of a change of address shall be effective
only upon receipt thereof:

            If to AWS:

                  c/o AT&T Wireless Services, Inc.
                  7277 164th Ave, N.E.
                  Redmond, WA 98052
                  Attention: William W. Hague
                  Telephone: (425) 828-8461
                  Facsimile: (425) 828-8451

            With a copy to:

                  AT&T Corp.
                  295 North Maple Avenue
                  Basking Ridge, NJ 07920
                  Attention: Corporate Secretary
                  Telephone: (908) 221-6660
                  Facsimile: (908) 221-6618

            and

                  Friedman Kaplan Seiler & Adelman LLP
                  875 Third Avenue, 8th Floor
                  New York, New York 10022
                  Attention: Gregg S. Lerner
                  Telephone: (212) 833-1100
                  Facsimile: (212) 355-6401

            If to Thomas H. Sullivan, to:

                  Thomas H. Sullivan
                  11509 Highland Farm Road
                  Potomac, Maryland 20854
                  Telephone: (301) 299-2406
                  Facsimile: (301) 299-5246

<PAGE>

            With a copy to:

                  TeleCorp PCS, Inc.
                  1010 N. Glebe Road
                  Arlington, Virginia  22201
                  Attention: General Counsel
                  Telephone: (703) 236-1100
                  Facsimile: (703) 236-1376

      6. Entire Letter Agreement; Amendment. This Letter Agreement constitutes
the entire agreement among the parties with respect to the subject matter hereof
and supersedes all other prior agreements and understandings, both written and
oral, among the parties or any of them with respect to the subject matter
hereof. No change or modification of this Letter Agreement shall be valid,
binding or enforceable unless the same shall be in writing and signed by the
parties hereto.

      7. Waiver. No failure or delay on the part of any party in exercising any
right, power or privilege hereunder, nor any course of dealing between the
parties shall operate as a waiver thereof nor shall any single or partial
exercise of any right, power or privilege hereunder preclude the simultaneous or
later exercise of any other right, power or privilege. The rights and remedies
herein expressly provided are cumulative and not exclusive of any rights and
remedies which any party would otherwise have. No notice to or demand on a party
in any case shall entitle such party to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of such
party or any of them to take any other or further action in any circumstances
without notice or demand.

      8. Benefit and Binding Effect; Severability. This Letter Agreement shall
be binding upon and shall inure to the benefit of each party and their
respective successors, executors, administrators and personal representatives
and heirs and permitted assigns. If any term or other provision of this Letter
Agreement is invalid, illegal or incapable of being enforced by any law or
public policy or any listing requirement applicable to the Subject Stocks, all
other terms and provisions of this Letter Agreement shall nevertheless remain in
full force and effect. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the parties hereto affected
by such determination in any material respect shall negotiate in good faith to
modify this Letter Agreement so as to effect the original intent of the parties
as closely as possible in an acceptable manner in order that the provisions
hereof are given effect as originally contemplated to the greatest extent
possible.

      9. FCC Approval. Notwithstanding anything contained in this Letter
Agreement to the contrary, no transaction or action contemplated herein shall be
consummated and no interests or rights transferred, converted or exchanged prior
to receiving FCC approval with respect thereto to the extent such approval is
necessary.

<PAGE>

      10. Governing Law.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW
PRINCIPLES THEREOF. EACH PARTY HERETO AGREES THAT IT SHALL BRING ANY ACTION OR
PROCEEDING IN RESPECT OF ANY CLAIM ARISING OUT OF OR RELATED TO THIS AGREEMENT
OR THE TRANSACTIONS CONTAINED IN OR CONTEMPLATED BY THIS AGREEMENT, WHETHER IN
TORT OR CONTRACT OR AT LAW OR IN EQUITY, EXCLUSIVELY IN THE UNITD STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK OR THE SUPREME COURT OF THE
STATE OF NEW YORK FOR THE COUNTY OF NEW YORK (THE "CHOSEN COURTS") AND
(I)IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE CHOSEN COURTS,
(II)WAIVES ANY OBJECTION TO LAYING VENUE IN ANY SUCH ACTION OR PROCEEDING IN THE
CHOSEN COURTS (III)WAIVES ANY OBJECTION THAT THE CHOSEN COURTS ARE AN
INCONVENIENT FORUM OR DO N OT HAVE JURISDICTION OVER ANY PARTY HERETO AND
(IV)AGREES THAT SERVICE OF PROCESS UPON SUCH PARTY IN ANY SUCH ACTION OR
PROCEEDING SHALL BE EFFECTIVE IF NOTICE IS GIVEN IN ACCORDANCE WITHG SECTION 5
OF THIS AGREEMENT.

     (b) The parties hereto hereby irrevocably waive any and all right to trial
by jury in any legal proceeding arising out of or related to this Letter
Agreement or the transactions contemplated hereby.

      11. Headings. The headings of the Articles and Sections herein are
inserted for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Letter Agreement.

      12. Counterparts. This letter may be executed in counterparts, each of
which shall be deemed an original and all of which together shall constitute one
and the same instrument.

      13. Expiration.  This Agreement shall expire on July 17, 2003.

<PAGE>

      If you are in agreement with the terms of this letter, please sign two
copies in the space provided below and return it to the undersigned.

                                    Very truly yours,

                                    /s/ Thomas H. Sullivan
                                    -------------------------
                                    THOMAS H. SULLIVAN

Agreed and accepted as of the date hereof:

AT&T WIRELESS SERVICES, INC.

By:  /s/ Joseph E. Stumpf
     -------------------------
         Joseph E. Stumpf

Title:  Vice President - Acquisitions and Development
        ---------------------------------------------eZ BANCORP, INC.
                         STOCK OPTION AND INCENTIVE PLAN

     1. PURPOSE OF THE PLAN.

     The purpose of this Plan is to advance the interests of the Company through
providing select key Employees and Directors of the Bank, the Company, and their
Affiliates  with the opportunity to acquire  Shares.  By encouraging  such stock
ownership,  the Company seeks to attract, retain and motivate the best available
personnel for positions of substantial  responsibility and to provide additional
incentives  to Directors  and key  Employees of the Company or any  Affiliate to
promote the success of the business.

     2. DEFINITIONS.

     As used herein, the following definitions shall apply.

     (a)  "Affiliate"  shall  mean  any  "parent   corporation"  or  "subsidiary
corporation"  of the  Company,  as such terms are defined in Section  424(e) and
(f), respectively, of the Code.

     (b) "Agreement"  shall mean a written  agreement entered into in accordance
with Paragraph 5(c).

     (c) "Awards" shall mean Options

     (d) "Bank" shall mean eZCommunityBank.com.

     (e) "Board" shall mean the Board of Directors of the Company.

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

     (g) "Committee"  shall mean not only the Stock Option Committee  consisting
of at least two Non-Employee Directors appointed by the Board in accordance with
Paragraph 5(a) hereof, but also the Board.

     (h) "Common Stock" shall mean the common stock of the Company.

     (i) "Company" shall mean eZ Bancorp, Inc.

     (j)  "Continuous  Service"  shall mean the absence of any  interruption  or
termination  of  service  as an  Employee  or  Director  of  the  Company  or an
Affiliate. Continuous Service shall not be considered interrupted in the case of
sick  leave,  military  leave or any  other  leave of  absence  approved  by the
Company,  in the case of transfers  between payroll  locations of the Company or
between the Company, an Affiliate or a successor, or in the case of a Director's
performance of services in an emeritus or advisory capacity.

     (k) "Date of Operation"  shall mean the date the Bank commences  operations
as a state-chartered Bank.

     (l)  "Director"  shall mean any member of the Board,  and any member of the
board of directors of any Affiliate that the Board has by resolution  designated
as being eligible for participation in this Plan.

     (m) "Disability"  shall mean a physical or mental  condition,  which in the
sole and absolute  discretion of the Committee,  is reasonably expected to be of
indefinite  duration and to substantially  prevent a Participant from fulfilling
his or her duties or responsibilities to the Company or an Affiliate.

     (n) "Effective Date" shall mean the date specified in Paragraph 14 hereof.

     (o) "Employee" shall mean any person employed by the Company,  the Bank, or
an Affiliate.
<PAGE>
     (p)  "Exercise  Price" shall mean the price per Optioned  Share at which an
Option may be exercised.

     (q) "ISO"  shall mean an option to  purchase  Common  Stock which meets the
requirements  set  forth  in  the  Plan,  and  which  is  intended  to be and is
identified as an "incentive  stock option"  within the meaning of Section 422 of
the Code.

     (r) "Market Value" shall mean the fair market value of the Common Stock, as
determined under Paragraph 8(b) hereof.

     (s) "Non-Employee Director" shall have the meaning provided in Rule 16b-3.

     (t)  "Non-ISO"  means an option to  purchase  Common  Stock which meets the
requirements  set forth in the Plan but which is not  intended  to be and is not
identified as an ISO.

     (u) "Option" means an ISO and/or a Non-ISO.

     (v)  "Optioned  Shares"  shall  mean  Shares  subject  to an Award  granted
pursuant to this Plan.

     (w)  "Participant"  shall mean any person who receives an Award pursuant to
the Plan.

     (x) "Plan"  shall mean this eZ Bancorp,  Inc.  Stock  Option and  Incentive
Plan.

     (y) "Rule 16b-3" shall mean Rule 16b-3 of the General Rules and Regulations
under the Securities Exchange Act of 1934, as amended.

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

     (aa) "Year of Service" shall mean a full twelve-month period, measured from
the date of an Award and each annual  anniversary  of that date,  during which a
Participant has not terminated Continuous Service for any reason.

     3. TERM OF THE PLAN AND AWARDS.

     (a) Term of the Plan.  The Plan shall  continue in effect for a term of ten
years from the Effective Date, unless sooner terminated pursuant to Paragraph 15
hereof.  No Award  shall be  granted  under the Plan  after  ten years  from the
Effective Date.

     (b) Term of Awards.  The term of each Award granted under the Plan shall be
established by the Committee, but shall not exceed 10 years; provided,  however,
that in the case of an Employee  who owns Shares  representing  more than 10% of
the outstanding Common Stock at the time an ISO is granted, the term of such ISO
shall not exceed five years.

     4. SHARES SUBJECT TO THE PLAN.

     (a) General  Rule.  Except as otherwise  required  under  Paragraph 10, the
aggregate  number of Shares  deliverable  pursuant to Awards  shall not exceed *
Shares,  which equals 10% of the Shares issued by the Company in connection with
the Bank's  organization and the Company's sale of stock. Such Shares may either
be authorized but unissued Shares,  Shares held in treasury, or Shares held in a
grantor  trust  created by the  Company.  If any Awards  should  expire,  become
unexercisable, or be forfeited for any reason without having been exercised, the
Optioned Shares shall, unless the Plan shall have been terminated,  be available
for the grant of additional Awards under the Plan.

___________
*  Equal to 10% of the shares issued by the Company, or between 22,500 shares
   and 27,500 shares.

<PAGE>

     5. ADMINISTRATION OF THE PLAN.

     (a)  Appointment of the Committee.  The Plan shall be  administered  by the
Committee. Members of the Committee shall serve at the pleasure of the Board. In
the  absence  at any  time of a duly  appointed  Committee,  the  Plan  shall be
administered by the Board.

     (b) Powers of the Committee. Except as limited by the express provisions of
the Plan or by resolutions  adopted by the Board,  the Committee shall have sole
and complete  authority  and  discretion  (i) to select  Participants  and grant
Awards,  (ii) to  determine  the form and  content of Awards to be issued in the
form of  Agreements  under  the  Plan,  (iii) to  interpret  the  Plan,  (iv) to
prescribe, amend and rescind rules and regulations relating to the Plan, and (v)
to make other  determinations  necessary or advisable for the  administration of
the Plan.  Any  amendment of the Plan within three years of the  Effective  Date
shall be subject to the approval of the Federal Deposit  Insurance  Corporation.
The Committee  shall have and may exercise such other power and authority as may
be  delegated  to it by the Board from time to time.  A  majority  of the entire
Committee shall  constitute a quorum and the action of a majority of the members
present at any meeting at which a quorum is present, or acts approved in writing
by a majority of the Committee without a meeting,  shall be deemed the action of
the Committee.

     (c)  Agreement.  Each  Award  shall be  evidenced  by a  written  agreement
containing  such  provisions  as may be  approved  by the  Committee.  Each such
Agreement  shall  constitute  a binding  contract  between  the  Company and the
Participant, and every Participant,  upon acceptance of such Agreement, shall be
bound by the terms and restrictions of the Plan and of such Agreement. The terms
of each such Agreement  shall be in accordance with the Plan, but each Agreement
may include  such  additional  provisions  and  restrictions  determined  by the
Committee,  in its  discretion,  provided that such  additional  provisions  and
restrictions are not inconsistent with the terms of the Plan. In particular, the
Committee shall set forth in each Agreement (i) the Exercise Price of an Option,
(ii) the number of Shares subject to the Award,  and its expiration  date, (iii)
the manner,  time, and rate  (cumulative or otherwise) of exercise or vesting of
such Award, and (iv) the restrictions,  if any, to be placed upon such Award, or
upon Shares which may be issued upon exercise of such Award. The Chairman of the
Committee  and such other  Directors  and officers as shall be designated by the
Committee are hereby  authorized to execute  Agreements on behalf of the Company
and to cause them to be delivered to the recipients of Awards.

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

     (e) Indemnification. In addition to such other rights of indemnification as
they may have, the members of the Committee  shall be indemnified by the Company
in connection with any claim,  action, suit or proceeding relating to any action
taken or  failure  to act  under or in  connection  with the Plan or any  Award,
granted hereunder to the full extent provided for under the Company's  governing
instruments with respect to the indemnification of Directors.

     6. GRANT OF OPTIONS.

     (a) General Rule. Only Employees and Directors shall be eligible to receive
Awards.  In  selecting  those  Employees  and  Directors  to whom Awards will be
granted and the number of shares  covered by such Awards,  the  Committee  shall
consider the position, duties and responsibilities of the eligible Employees and
Directors,  the value of their services to the Company and its  Affiliates,  and
any other factors the Committee may deem  relevant.  Awards shall be made at the
discretion of the Committee.

     (b) Special Rules for ISOs. The aggregate  Market Value, as of the date the
Option is granted,  of the Shares with respect to which ISOs are exercisable for
the first time by an Employee  during any  calendar  year  (under all  incentive
stock option plans, as defined in Section 422 of the Code, of the Company or any
present  or  future  Affiliate  of  the  Company)  shall  not  exceed  $100,000.
Notwithstanding the foregoing,  the Committee may grant Options in excess of the
foregoing  limitations,  in  which  case  Options  granted  in  excess  of  such
limitation shall be Non-ISOs.

<PAGE>

     7. GRANTS OF OPTIONS TO DIRECTORS.

     (a) Terms of Exercise.  Options  received  under this Paragraph will become
exercisable  in  accordance  with the general rule set forth in  Paragraph  9(a)
hereof and shall be exercisable  in accordance  with the terms of Paragraph 9(b)
hereof.

     Options  granted  under  this  Paragraph  shall  have a term of ten  years;
provided that Options  granted under this  Paragraph  shall expire 90 days after
the date on which a Director  terminates  Continuous  Service on the Board for a
reason  other  than  death,  but in no event  later  than the date on which such
Options would otherwise expire. In the event of such Director's death during the
term  of his  directorship,  Options  granted  under  this  Paragraph  shall  be
immediately  exercisable,  and may be exercised within one year from the date of
his death by the personal  representatives of his estate or person or persons to
whom his  rights  under  such  Option  shall  have  passed by will or by laws of
descent  and  distribution,  but in no event  later  than the date on which such
Options  would  otherwise  expire.  In the event of such  Director's  Disability
during his or her  directorship,  the  Director's  Option  shall be  immediately
exercisable, and such Option may be exercised within one year of the termination
of directorship  due to Disability,  but not later than the date that the Option
would otherwise expire.  Unless otherwise  inapplicable or inconsistent with the
provisions of this Paragraph,  the Options to be granted to Directors  hereunder
shall be subject to all other provisions of this Plan.

     (b) Effect of the  Committee's  Decisions.  The  Committee's  determination
whether a Participant's  Continuous  Service has ceased,  and the effective date
thereof, shall be final and conclusive on all persons affected thereby.

     8. EXERCISE PRICE FOR OPTIONS.

     (a) Limits on Committee Discretion. The Exercise Price as to any particular
Option shall not be less than 100% of the Market Value of the Optioned Shares on
the date of grant. In the case of an Employee who owns Shares  representing more
than 10% of the Company's  outstanding Shares of Common Stock at the time an ISO
is granted,  the Exercise  Price shall not be less than 110% of the Market Value
of the Optioned Shares at the time the ISO is granted.

     (b) Standards for Determining Exercise Price. If the Common Stock is listed
on a national  securities exchange (including the NASDAQ National Market System)
on the date in question, then the Market Value per Share shall be the average of
the highest and lowest  selling price on such exchange on such date, or if there
were no sales on such date,  then the  Exercise  Price shall be the mean between
the bid and asked price on such date.  If the Common  Stock is traded  otherwise
than on a national securities exchange on the date in question,  then the Market
Value per Share shall be the mean  between the bid and asked price on such date,
or,  if there is no bid and asked  price on such  date,  then on the next  prior
business day on which there was a bid and asked price.  If no such bid and asked
price is  available,  then the Market  Value per Share  shall be its fair market
value as determined by the  Committee  based on a third party  evaluation of the
value of the shares.

     9. EXERCISE OF OPTIONS.

     (a)  Generally.  Except  as  otherwise  provided  by  the  Committee  in an
Agreement,  each Option shall become  exercisable with respect to twenty percent
(20%) of the Optioned Shares upon grant, with an additional twenty percent (20%)
of the Optioned Shares becoming exercisable upon the Participant's completion of
each  additional  Year of Service,  provided  that an Option  shall become fully
(100%) exercisable immediately upon termination of the Participant's  Continuous
Service due to the Participant's Disability or death. Vesting will accelerate to
100% upon a Participant's retirement at age 65 or above.

     (b) Procedure for Exercise. A Participant may exercise Options,  subject to
provisions relative to its termination and limitations on its exercise,  only by
(1) written  notice of intent to exercise the Option with respect to a specified
number  of  Shares,  and (2)  payment  to the  Company  (contemporaneously  with
delivery  of such  notice) in cash of the amount of the  Exercise  Price for the
number of Shares with respect to which the Option is then being exercised.  Each
such  notice (and  payment  where  required)  shall be  delivered,  or mailed by
prepaid registered or

<PAGE>

certified  mail,  addressed  to the  Treasurer  of the Company at its  executive
offices. An Option may not be exercised for a fractional Share.

     (c) Period of  Exercisability.  Except to the extent otherwise  provided in
the terms of an  Agreement,  an Option may be  exercised by a  Participant  only
while he is an Employee and has maintained  Continuous  Service from the date of
the grant of the Option,  or within 90 days after termination of such Continuous
Service or  Disability  (but not later  than the date on which the Option  would
otherwise  expire),  except if the Employee's  Continuous  Service terminates by
reason of --

                (1)  "Just  Cause"  which for  purposes  hereof  shall  have the
          meaning set forth in any unexpired  employment or severance  agreement
          between the  Participant  and the Bank and/or the Company (and, in the
          absence of any such agreement,  shall mean termination  because of the
          Employee's  personal  dishonesty,  incompetence,  willful  misconduct,
          breach  of  fiduciary  duty  involving  personal  profit,  intentional
          failure to perform stated duties,  willful  violation of any law, rule
          or regulation  (other than traffic  violations or similar offenses) or
          final  cease-and-desist  order),  then  the  Participant's  rights  to
          exercise such Option shall expire on the date of such termination; or

                (2)  death,  then to the extent that the Participant  would have
          been entitled to exercise the Option  immediately  prior to his death,
          such Option of the deceased  Participant  may be exercised  within one
          year from the date of his death  (but not later than the date on which
          the Option would otherwise expire) by the personal  representatives of
          his estate or person or persons to whom his rights  under such  Option
          shall have passed by will or by laws of descent and distribution.

     (d) Effect of the  Committee's  Decisions.  The  Committee's  determination
whether a Participant's  Continuous  Service has ceased,  and the effective date
thereof, shall be final and conclusive on all persons affected thereby.

     (e) Mandatory Six-Month Holding Period. Notwithstanding any other provision
of this Plan to the contrary, common stock of the Company that is purchased upon
exercise of an Option may not be sold within the six-month  period following the
grant  of that  Option,  except  in the  event  of the  Participant's  death  or
Disability, or such other event as the Board may specifically deem appropriate.

     (f)  Exercise or  Forfeiture  Requirement.  The Federal  Deposit  Insurance
Corporation may require that Options be exercised immediately or be forfeited in
the  event  that  the  Bank's   regulatory   capital  falls  below  the  minimum
requirements established by statute or by the regulations of the Federal Deposit
Insurance Corporation.

     10. EFFECT OF CHANGES IN COMMON STOCK SUBJECT TO THE PLAN.

     (a)  Recapitalizations;  Stock  Splits,  Etc. The number and kind of shares
reserved for issuance  under the Plan, and the number and kind of shares subject
to outstanding Awards, and the Exercise Price thereof,  shall be proportionately
adjusted  for any  increase,  decrease,  change  or  exchange  of  Shares  for a
different  number or kind of shares or other  securities  of the  Company  which
results  from  a  merger,   consolidation,   recapitalization,   reorganization,
reclassification,  stock dividend,  split-up,  combination of shares, or similar
event in which the number or kind of shares is changed  without  the  receipt or
payment of consideration by the Company.

     (b) Transactions in which the Company is Not the Surviving  Entity.  In the
event of (i) the  liquidation or  dissolution  of the Company,  (ii) a merger or
consolidation  in which the Company is not the  surviving  entity,  or (iii) the
sale or disposition of all or substantially  all of the Company's assets (any of
the  foregoing  to be referred to herein as a  "Transaction"),  all  outstanding
Awards,  together with the Exercise Prices thereof,  shall be equitably adjusted
for any change or exchange of Shares for a different number or kind of shares or
other securities which results from the Transaction.

     (c) Special Rule for ISOs.  Any adjustment  made pursuant to  subparagraphs
(a) or (b)  hereof  shall  be made  in  such a  manner  as not to  constitute  a
modification,  within the meaning of Section  424(h) of the Code, of outstanding
ISOs.

<PAGE>

     (d) Conditions and Restrictions on New, Additional,  or Different Shares or
Securities.  If, by reason of any adjustment made pursuant to this Paragraph,  a
Participant becomes entitled to new, additional, or different shares of stock or
securities,  such new,  additional,  or different  shares of stock or securities
shall thereupon be subject to all of the conditions and restrictions  which were
applicable to the Shares pursuant to the Award before the adjustment was made.

     (e) Other Issuances.  Except as expressly  provided in this Paragraph,  the
issuance by the Company or an Affiliate  of shares of stock of any class,  or of
securities  convertible  into  Shares  or stock of  another  class,  for cash or
property or for labor or services  either upon direct sale or upon the  exercise
of rights or warrants to subscribe therefor, shall not affect, and no adjustment
shall be made with respect to, the number,  class,  or Exercise  Price of Shares
then subject to Awards or reserved for issuance under the Plan.

     (f) Certain  Special  Dividends.  The Exercise  Price of shares  subject to
outstanding  Awards  shall be  proportionately  adjusted  upon the  payment of a
special  large  and  nonrecurring  dividend  that has the  effect of a return of
capital to the stockholders.

     11. NON-TRANSFERABILITY OF AWARDS.

     Awards may not be sold,  pledged,  assigned,  hypothecated,  transferred or
disposed  of in any  manner  other  than by will or by the laws of  descent  and
distribution.

     12. TIME OF GRANTING AWARDS.

     The date of grant of an Award shall, for all purposes,  be the later of the
date on which the Committee makes the  determination of granting such Award, and
the  Effective  Date.  Notice  of the  determination  shall  be  given  to  each
Participant  to whom an Award is so granted  within a reasonable  time after the
date of such grant.

     13. EFFECTIVE DATE.

     The Plan shall become effective  immediately upon its approval by the Board
provided, that ISOs shall not be available for grant under the Plan unless it is
approved by the  Company's  stockholders  within 12 months  after the  Effective
Date.

     14. MODIFICATION OF AWARDS.

     At any time,  and from time to time,  the Board may authorize the Committee
to direct  execution of an  instrument  providing  for the  modification  of any
outstanding  Award,  provided no such modification shall confer on the holder of
said Award any right or benefit which could not be conferred on him by the grant
of a new Award at such time,  or impair  the Award  without  the  consent of the
holder of the Award.

     15. AMENDMENT AND TERMINATION OF THE PLAN.

     The  Board may from  time to time  amend  the  terms of the Plan and,  with
respect to any Shares at the time not  subject to Awards,  suspend or  terminate
the Plan. No amendment, suspension or termination of the Plan shall, without the
consent  of any  affected  holders  of an Award,  alter or impair  any rights or
obligations  under any Award  theretofore  granted.  Any  amendment  of the Plan
within three years of the Effective Date shall be subject to the approval of the
Federal Deposit Insurance Corporation.

     16. CONDITIONS UPON ISSUANCE OF SHARES.

     (a) Compliance  with Securities  Laws.  Shares of Common Stock shall not be
issued with respect to any Award unless the issuance and delivery of such Shares
shall comply with all relevant provisions of law, including, without limitation,
the Securities Act of 1933, as amended,  the rules and  regulations  promulgated
thereunder,  any applicable  state  securities law, and the  requirements of any
stock exchange upon which the Shares may then be listed.
<PAGE>

     (b) Special Circumstances.  The inability of the Company to obtain approval
from any  regulatory  body or authority  deemed by the  Company's  counsel to be
necessary to the lawful issuance and sale of any Shares  hereunder shall relieve
the  Company of any  liability  in respect of the  non-issuance  or sale of such
Shares. As a condition to the exercise of an Option, the Company may require the
person exercising the Option to make such  representations and warranties as may
be necessary to assure the  availability  of an exemption from the  registration
requirements of federal or state securities law.

     (c)  Committee  Discretion.  The  Committee  shall  have the  discretionary
authority to impose in  Agreements  such  restrictions  on Shares as it may deem
appropriate or desirable, including but not limited to the authority to impose a
right  of first  refusal  or to  establish  repurchase  rights  or both of these
restrictions.

     17. RESERVATION OF SHARES.

     The Company, during the term of the Plan, will reserve and keep available a
number of Shares sufficient to satisfy the requirements of the Plan.

     18. WITHHOLDING TAX.

     The Company's  obligation to deliver  Shares upon exercise of Options shall
be subject to the Participant's  satisfaction of all applicable  federal,  state
and local income and employment tax withholding  obligations.  The Committee, in
its discretion,  may permit the Participant to satisfy the obligation,  in whole
or in part, by irrevocably  electing to have the Company withhold Shares,  or to
deliver to the Company Shares that he already owns,  having a value equal to the
amount  required  to be  withheld.  The value of the Shares to be  withheld,  or
delivered  to the  Company,  shall be based on the Market Value of the Shares on
the  date  the  amount  of  tax  to  be  withheld  is to  be  determined.  As an
alternative,  the Company may retain,  or sell without notice,  a number of such
Shares sufficient to cover the amount required to be withheld. The amount of the
withholding requirement shall be the applicable statutory minimum federal, state
or local  income tax with respect to the award on the date that amount of tax is
to be withheld.

     19. NO EMPLOYMENT OR OTHER RIGHTS.

     In no event shall an Employee's or Director's eligibility to participate or
participation  in the Plan create or be deemed to create any legal or  equitable
right of the Employee, Director, or any other party to continue service with the
Company,  the Bank,  or any  Affiliate  of such  corporations.  No  Employee  or
Director shall have a right to be granted an Award or, having received an Award,
the right to again be granted an Award. However, an Employee or Director who has
been granted an Award may, if otherwise eligible, be granted an additional Award
or Awards.

     20. GOVERNING LAW.

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

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