Document:

EXHIBIT 10.5

                            INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION  AGREEMENT  ("Agreement") is made as of this __ day of
_________,   1999  by  and  between  ISB  Financial  Corporation,   a  Louisiana
corporation ("ISB"), and (the "Indemnitee").

     WHEREAS,  ISB and the Indemnitee recognize the volatility in the market for
directors' and officers'  liability  insurance,  the lack of certainty as to the
availability  and scope of such insurance at any given time, and the fluctuating
cost of such insurance;

     WHEREAS,  ISB and the Indemnitee further recognize the substantial increase
in corporate  litigation in general,  which has subjected  officers to a greater
risk of expensive litigation;

     WHEREAS, the Indemnitee does not regard the current protection available as
adequate under the present circumstances; and

     WHEREAS,  ISB desires to indemnify  the  Indemnitee  individually  so as to
provide him maximum protection permitted by law.

     NOW, THEREFORE, ISB and the Indemnitee hereby agree as follows:

1. Definitions. The following terms shall have the indicated meanings:

     (a) A "Change  in  Control"  shall be deemed  to have  occurred  if (i) any
"person"  (as such term is used in  Sections  13(d) and 14(d) of the  Securities
Exchange  Act of 1934,  as  amended),  other than a trustee  or other  fiduciary
holding  securities  under an  employee  benefit  plan of ISB, is or becomes the
"beneficial  owner"  (as  defined in Rule 13d-3  under  said Act),  directly  or
indirectly,  of securities of ISB  representing  25% or more of the total voting
power represented by ISB's then outstanding  Voting  Securities,  or (ii) during
any 24-consecutive-month-period, individuals who at the beginning of such period
constitute the Board of Directors of ISB and any new directors whose election by
the Board of Directors or  nomination  for  election by ISB's  stockholders  was
approved by a vote of at least  two-thirds  (2/3) of the directors then still in
office  who  either  were  directors  at the  beginning  of the  period or whose
election or nomination  for election was  previously so approved,  cease for any
reason to  constitute  a  majority  thereof,  or (iii) the  stockholders  of ISB
approve a merger or consolidation of ISB with any other corporation,  other than
a merger or  consolidation  which would result in the Voting  Securities  of ISB
outstanding  immediately  prior  thereto  continuing  to  represent  (either  by
remaining  outstanding  or by being  converted  into Voting  Securities  of" the
surviving  entity)  at least 80% of the total  power  represented  by the Voting
Securities of ISB or such surviving entity  outstanding  immediately  after such
merger  or  consolidation,  or (iv) the  stockholders  of ISB  approve a plan of
complete  liquidation  of ISB or an agreement for the sale or disposition by ISB
(in one transaction or a series of  transactions)  of all or  substantially  all
ISB's assets.

     (b) "Disinterested  Director" shall mean a director of ISB qualified and in
good  standing  who  is  not a  party,  or  an  officer,  employee,  significant
shareholder or owner, or member of the

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immediate  family of any  party,  other  than the Batik or its  subsidiaries  or
affiliates,  to the  Proceeding  for which  indemnification  hereunder  is being
sought.

     (c) "Expenses"  include,  without  limitation,  (i) an amount for which the
Indemnitee  becomes  liable  in a  judgment  in a  Proceeding  (include  without
limitation,  all  judgments,  fines,  excise taxes  assessed  with respect to an
employee  benefit  plan,  court  costs),  (ii) amounts paid in  Settlement  of a
Proceeding,  (iii)  reasonable  attorney's fees actually paid or incurred by the
Indemnitee in connection with a Proceeding, and (iv) if the Indemnitee commences
any action or other proceeding to enforcing the  Indemnitee's  rights under this
Agreement,  or under  the  Charter  or Bylaws of ISB,  and  obtains a  favorable
judgment therein, the Indemnitee's  reasonable  attorney's fees, costs and other
expenses actually paid or incurred in connection therewith.

     (d)  "Final  Judgment"  means a  judgment,  decree  or  order  which is not
appealable  or as to which the  period for  appeal  has  expired  with no appeal
taken.

     (e)  "Independent  Legal  Counsel"  shall  mean an  attorney,  selected  in
accordance with the provisions of Section 8 hereof, who shall not have otherwise
performed  services for ISB or the Indemnitee  within the last five years (other
than  in  connection  with  seeking   indemnification   under  this  Agreement).
Independent  Legal  Counsel  shall not be any person who,  under the  applicable
standards  of  professional  conduct then  prevailing,  would have a conflict of
interest in representing  either ISB or the Indemnitee in an action to determine
the  Indemnitee's  rights  under this  Agreement,  nor shall  Independent  Legal
Counsel be any person who has been sanctioned or censured for ethical violations
of applicable standards of professional conduct.

     (f) A "Potential Change in Control" shall be deemed to have occurred if (i)
ISB enters into an agreement or  arrangement,  the  consummation  of which would
result in the occurrence of a Change in Control; (ii) any person (including ISB)
publicly  announces an intention to take or to consider  taking  actions that if
consummated  would  constitute a Change in Control;  or (iii) the Board adopts a
resolution  to the effect  that,  for  purposes of this  Agreement,  a Potential
Change in Control has occurred.

     (g) "Proceeding" means any judicial or administrative  proceeding, or other
proceeding, whether civil, criminal,  administrative or otherwise, including any
appeal or other proceeding for review,  as a result of or in connection with any
action or inaction on the part of the Indemnitee  while the Indemnitee is or was
an officer of ISB or of a subsidiary  of ISB or while the  Indemnitee  is or was
serving  at the  request of ISB as a  director,  officer,  employee  or agent of
another corporation, partnership, joint venture, trust or other enterprise or as
a trustee,  administrator  or  committee  member of any  employee  benefit  plan
established  and  maintained  by ISB or by a  subsidiary  of ISB,  to which  the
Indemnitee  is or was a party or target or is  threatened  to be made a party or
target.  Without  limitation  of  any  indemnification  provided  hereunder,  an
Indemnitee serving (i) another corporation,  partnership, joint venture or trust
of which 20% or more of the voting power or residual  economic interest is held,
directly or indirectly,  by ISB, or (ii) any employee benefit plan of ISB or any
entity referred to in clause (i), in any capacity shall be deemed to be doing so
at the request of ISB.

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     (h)  "Settlement"  shall mean any agreement or action by which a Proceeding
or other action is terminated or a complaint  withdrawn before final judgment on
the merits,  and shall  include,  without  limitation,  a judgment by consent or
confession or plea of guilty or nolo contendere.

     (i)  "Voting  Securities"  shall  mean  any  securities  of ISB  that  vote
generally in the election of directors.

2. Indemnification.

     (a)  Indemnification.   ISB  shall  indemnify,  and  advance  Expenses  (as
hereinafter defined) to, Indemnitee (a) as provided in this Agreement and (b) to
the fullest extent  permitted by applicable law in effect on the date hereof and
as  amended  from time to time.  The  rights of  Indemnitee  provided  under the
preceding  sentence shall  include,  but shall not be limited to, the rights set
forth in the other sections of this  Agreement.  Subject to the  limitations and
exceptions  set forth herein,  ISB shall  indemnify the  Indemnitee for Expenses
incurred in connection with any and all Proceedings to which the Indemnitee is a
party or a  witness;  provided,  however,  that  the  facts  giving  rise to the
Proceedings  were  disclosed to the Chairman or the  Executive  Committee of the
Board of Directors prior to the initiation of the Proceedings.

     (b) No Presumptions Created: Defenses. The termination of any Proceeding by
Final Judgment or Settlement shall not, of itself, create a presumption that the
Indemnitee  did  not  act in  good  faith  in the  reasonable  belief  that  the
Indemnitee's  action was in the best  interests  of the Bank.  ISB's  inability,
pursuant to law,  regulation,  or order, to perform its  obligations  under this
Agreement shall not constitute a breach of this Agreement. It shall be a defense
to any action by the  Indemnitee for  indemnification  under this Agreement that
the  Indemnitee  has not met the standards of conduct which make it  permissible
under  applicable law for ISB to indemnify the Indemnitee for the amount claimed
or that ISB is prohibited by law, regulation,  or order from paying such amount,
but the burden of proving such defense  shall be on ISB except as may  otherwise
be required by applicable law or regulation.

     (c) ISB Duty to Act. ISB shall act diligently, promptly, in good faith, and
at its own expense with respect to requests for indemnification hereunder.

     (d)  Partial  Indemnification.  If the  Indemnitee  is  entitled  under any
provision of this Agreement to  indemnification  by ISB for some or a portion of
any Expenses  incurred by the  Indemnitee in connection  with a Proceeding,  but
not, however, for the total amount thereof, ISB shall nevertheless indemnify the
Indemnitee for the portion of such Expenses to which the Indemnitee is entitled.

3. Expenses: Indemnification Procedure.

     (a)  Notice/Cooperation  by the  Indemnitee.  The  Indemnitee  shall,  as a
condition  precedent to his right to be indemnified  under this Agreement,  give
ISB notice in  writing as soon as  practicable  of any claim  made  against  the
Indemnitee  for  which  indemnification  will or  could  be  sought  under  this
Agreement. Notice to ISB shall be directed to the Corporate Secretary of ISB, at
1101 East  Admiral  Doyle  Drive,  New Iberia,  Louisiana  70560,  or such other
address as ISB shall  designate in writing to the Indemnitee.  In addition,  the
Indemnitee  shall give ISB such

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information and cooperation as it may reasonably  require and as shall be within
the Indemnitee's power.

     (b)  Claims.  Claims for  indemnification  must be made in  writing  and be
accompanied  by evidence that the Expense for which  indemnification  is claimed
hereunder has been paid or incurred by the Indemnitee.

     (c) Payment Procedure for Indemnification. Any indemnification provided for
hereunder  shall be paid no later than  thirty  (30) days  after  receipt of the
written  request  of  Indemnitee.  If a claim  under this  Agreement,  under any
statute,  or under  any  provision  of ISB's  Charter  or Bylaws  providing  for
indemnification  is not paid 'in full by ISB  within  thirty  (30) days  after a
written  request  for  payment  thereof  has first  been  received  by ISB,  the
Indemnitee may, but need not, at any time thereafter bring an action against ISB
to recover the unpaid amount of the claim and be entitled to  indemnification in
accordance herewith with respect to such action.

     (d)  Procedure  for  Advance  Payment of  Expenses.  Any  provision  to the
contrary herein notwithstanding,  ISB shall make payment of Expenses incurred by
the  Indemnitee,  in advance of the final  disposition  of a Proceeding,  to the
Indemnitee  within  five (5)  business  days after  receipt of the  Indemnitee's
written request  therefor,  which must include the  Indemnitee's  undertaking to
repay such payment if the Indemnitee  shall be adjudicated to be not entitled to
indemnification  under  Louisiana law. ISB shall accept such  undertaking by the
Indemnitee without reference to the Indemnitee's ability to make such repayment.

     (e)  Advance  Payment of Expenses in Claims  Initiated  by the  Indemnitee.
Within  five  (5)  business  days of  receipt  of a  written  request  from  the
Indemnitee, ISB shall make payment to the Indemnitee of Expenses incurred by the
Indemnitee  in  connection  with any action  brought by the  Indemnitee  for (i)
indemnification  or advance  payment of Expenses by ISB under this  Agreement or
any other  agreement  or the Charter or Bylaws of ISB now or hereafter in effect
relating to a Proceeding,  in which case the  Indemnitee's  written request must
include the  Indemnitee's  undertaking  to repay such payment if the  Indemnitee
shall be adjudicated to be not entitled to indemnification  under Louisiana law;
and/or (ii) recovery  under any  directors'  and officers'  liability  insurance
policies maintained by ISB,  regardless of whether the Indemnitee  ultimately is
determined to be entitled to such insurance recovery.

4. Limitations and Exceptions.  The limitations and exceptions set forth in this
Section 4 are effective notwithstanding any other provision of this Agreement to
the contrary.

     (a) Excluded Acts. The Indemnitee will not be indemnified hereunder for any
acts or omissions or transactions from which a director or officer,  as the case
may be, may not be indemnified under the laws of the State of Louisiana.

     (b)  Proceedings or in the Right of ISB. No  indemnification  shall be made
hereunder of Expenses for which the Indemnitee is adjudged in a Proceeding to be
liable  to ISB  in  the  performance  the  Indemnitee's  duty  to  ISB  and  its
shareholders  unless, and only to the extent that court in which such Proceeding
is or was pending determines that, in view of all the circumstances of the case,
the Indemnitee is fairly and  reasonably  entitled to indemnity for Expenses and
then only to the extent that the court shall determine.

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<PAGE>

     (c) Claims  Initiated by the Indemnitee.  ISB is not required  hereunder to
indemnify or advance  Expenses to the Indemnitee  with respect to proceedings or
claims  initiated or brought  voluntarily  by the  Indemnitee  and not by way of
defense,  except with  respect to (i) actions  brought to establish or enforce a
right to  indemnification  under this  Agreement  or any other  agreement or the
Charter or Bylaws of ISB now or  hereafter in effect  relating to a  Proceeding;
and (ii) actions for  recovery  under any  directors'  and  officers'  liability
insurance  policies  maintained  by ISB,  regardless  of whether the  Indemnitee
ultimately  is  determined  to be entitled to such  advance  expense  payment or
insurance recovery.

     (d) No Duplication of Payments.  ISB is not required hereunder to indemnify
the  Indemnitee  for Expenses which have been paid directly to the Indemnitee by
ISB under its  Charter or Bylaws or by an  insurance  carrier  under a policy of
directors' and officers' liability insurance.

5. Attorneys.

     (a) Selection of Counsel. In the event ISB shall be obligated under Section
2 hereof to pay the Expenses of any Proceeding  against the Indemnitee,  ISB, if
appropriate,  shall be entitled to assume the defense of such  Proceeding  'with
counsel  approved by the  Indemnitee,  which approval shall not be  unreasonably
withheld,  upon the delivery to the Indemnitee of written notice of its election
so to do.  After  delivery  of such  notice,  approval  of such  counsel  by the
Indemnitee  and the retention of such counsel by ISB, ISB shall not be liable to
the  Indemnitee  under  this  Agreement  for any  fees of  counsel  subsequently
incurred by the Indemnitee  with respect to the same  Proceeding,  provided that
(i) the  Indemnitee  shall  have the right to  employ  its  counsel  in any such
Proceeding  at the  Indemnitee's  expense;  and  (ii) if (A) the  employment  of
counsel  by the  Indemnitee  has  been  previously  authorized  by ISB,  (B) the
Indemnitee  shall have  reasonably  concluded  that  there may be a conflict  of
interest  between ISB and the Indemnitee in the conduct of any such defense,  or
(C) ISB shall not, in fact, have employed  counsel to assume the defense of such
Proceeding,  then the fees and expenses of the Indemnitee's  counsel shall be at
the expense of ISB.

     (b) Attorney's  Fees. In the event the  Indemnitee  commences any action or
other  proceeding to enforce the  Indemnitee's  rights under this Agreement,  or
under the Charter or Bylaws of ISB,  and obtains a favorable  judgment  therein,
ISB shall  indemnify the Indemnitee for the  Indemnitee's  Expenses  incurred in
connection therewith.  In the event of an action instituted by or in the name of
ISB under this  Agreement  or to enforce or  interpret  any of the terms of this
Agreement,  the Indemnitee shall be entitled to be paid all Expenses incurred by
the  Indemnitee  in  defense  of such  action  (including  with  respect  to the
Indemnitee's  counterclaims and cross-claims  made in such action),  unless as a
part of such action the court determines that each of the Indemnitee's  material
defenses to such action were made in bad faith or were frivolous.

6. Directors' and Officers' Liability Insurance.

     (a)  Maintenance  of Insurance.  ISB has the power to purchase and maintain
insurance  on behalf of any person  who is or was a  director  or officer of ISB
against any liability  incurred by such person in such capacity,  whether or not
ISB would have the power to indemnify such person against such  liability.  From
time to time, ISB shall make the good faith  determination

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whether  or not it is  practicable  for ISB to obtain  and  maintain a policy or
policies of insurance with reputable  insurance companies providing the officers
and the  directors of ISB with  coverage for losses from  wrongful  acts,  or to
ensure  ISB's  performance  of  its   indemnification   obligations  under  this
Agreement.  Among other  considerations,  ISB will weigh the costs of  obtaining
such insurance against the protection afforded by such coverage. In all policies
of directors' and officers' liability  insurance,  the Indemnitee shall be named
as an insured in such a manner as to provide the  Indemnitee the same rights and
benefits  as are  accorded to the most  favorably  insured of ISB  directors  or
officers, as the case may be.  Notwithstanding the foregoing,  ISB shall have no
obligation to obtain or maintain such  insurance if ISB determines in good faith
that such insurance is not reasonably  available,  if the premium costs for such
insurance  are  disproportionate  to the  amount of  coverage  provided,  if the
coverage provided by such insurance is limited by exclusions so as to provide an
insufficient  benefit,  or if the  Indemnitee  is covered  by similar  insurance
maintained by a subsidiary or parent of ISB.

     (b)  Notice to  Insurers.  If, at the time of the  receipt of a notice of a
claim hereunder, ISB has directors' and officers' liability insurance in effect,
ISB shall give  prompt  notice of the  commencement  of such  Proceeding  to the
insurers in accordance with the procedures set forth in the respective policies.
ISB shall  thereafter  take all  necessary  or  desirable  action to cause  such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of
such Proceeding in accordance with the terms of such policies.

7. Nonexclusivity.  The indemnification  provided by this Agreement shall not be
deemed  exclusive of any rights to which the  Indemnitee  may be entitled  under
ISB's  Charter,  its  Bylaws,  any  agreement,   any  vote  of  shareholders  or
disinterested directors, or otherwise, as to action in the Indemnitee's official
capacity and as to liability alleged to result from holding such office.

8.  Change in  Control.  ISB agrees  that if there is a Change in Control of ISB
(other  than a Change in Control  that has been  approved by a majority of ISB's
Board of  Directors  who were  directors  immediately  prior to such  Change  in
Control), then Independent Legal Counsel shall be selected by the Indemnitee and
approved by ISB (which  approval  shall not be  unreasonably  withheld) and such
Independent  Legal Counsel shall determine whether the Indemnitee is entitled to
indemnity  payments and advances of Expenses  under this  Agreement or any other
agreement  or the  Charter  or  Bylaws  of ISB now or  hereafter  in  effect  in
connection  with any Proceeding.  Such  Independent  Legal Counsel,  among other
things, shall render its written opinion to ISB and the Indemnitee as to whether
and to what extent the  Indemnitee  will be  permitted  to be  indemnified.  ISB
agrees  to pay the  reasonable  fees of the  Independent  Legal  Counsel  and to
indemnify  fully such  Independent  Legal  Counsel  against any and all expenses
(including  attorneys'  fees) claims,  liabilities and damages arising out of or
relating to this  Agreement  or the  engagement  of  Independent  Legal  Counsel
pursuant hereto.

9.  Potential  Change in  Control,  Establishment  of  Trust.  In the event of a
Potential Change in Control,  ISB shall, upon written request by the Indemnitee,
create a trust  for the  benefit  of the  Indemnitee  and from time to time upon
written request of the Indemnitee shall fund such trust in an amount  sufficient
to satisfy any and all Expenses reasonably  anticipated at the time of each such
request  to be  incurred  in  connection  with a  Proceeding  and  any  and  all
judgments,  fines,  penalties  and  settlement  amounts  in  connection  with  a
Proceeding from time to time actually paid or claimed, reasonably anticipated or
proposed to be paid,  plus  reasonable  fees to the trustee

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and  coverage of the  trustee's  expenses in  connection  with his,  her, or its
duties  under the trust.  The amount or  amounts  to be  deposited  in the trust
pursuant to the foregoing  funding  obligation shall be determined by a majority
of the Disinterested Directors. The terms of the trust shall provide that upon a
Change in Control  (i) the trust shall not be revoked or the  principal  thereof
invaded,  without the written consent of the Indemnitee,  (ii) the trustee shall
advance,  within five (5) business days of a written  request by the Indemnitee,
any and all Expenses to the  Indemnitee  (and the  Indemnitee  hereby  agrees to
reimburse the trust under the circumstances  under which the Indemnitee would be
required  to  reimburse  ISB under  Section  3  hereof),  (iii) the trust  shall
continue to be funded by ISB in accordance with the funding obligation set forth
above,  (iv) the trustee shall  promptly pay to the  Indemnitee  all amounts for
which the  Indemnitee  shall be  entitled  to  indemnification  pursuant to this
Agreement or otherwise,  and (v) all unexpended funds in such trust shall revert
to ISB upon a final  determination by the Independent  Legal Counsel selected in
accordance  with Section 8 hereof or a court of competent  jurisdiction,  as the
case may be, that the Indemnitee has been fully  indemnified  under the terms of
this  Agreement.  The trust shall provide for prompt payment of reasonable  fees
and  expenses of the  trustee.  The trustee  shall be chosen by the  Indemnitee.
Nothing in this Section 9 shall relieve ISB of any of its obligations under this
Agreement.  All income  earned on the assets held in the trust shall be reported
as income by ISB for federal, state, local and foreign tax purposes.

10.  Effect of  Merger,  Consolidation  or  Acquisition.  For  purposes  of this
Agreement,   the  term  "ISB"  shall  include,  in  addition  to  the  resulting
corporation,  any  constituent  corporation  (including  any  constituent  of  a
constituent)  absorbed  in a  consolidation  or merger  which,  if its  separate
existence  had  continued,  would have had power or authority  to indemnify  its
directors,  officers, employees or agents, so that if the Indemnitee is or was a
director,  officer,  employee or agent of such constituent  corporation or is or
was  serving  at the  request of such  constituent  corporation  as a  director,
officer, employee or agent of another corporation,  partnership,  joint venture,
trust, employee benefit plan, or other enterprise, the Indemnitee shall stand in
the same position  under the  provisions of this  Agreement  with respect to the
resulting or surviving  corporation as the Indemnitee would have with respect to
such constituent corporation if its separate existence had continued.

11.  Severability.  The  provisions  of this  Agreement  shall be  severable  as
provided in this Section 11. If this Agreement or any portion  hereof:  shall be
invalidated on any ground by any court of competent jurisdiction, then ISB shall
nevertheless  indemnify  the  Indemnitee  to the full  extent  permitted  by any
applicable  portion of this Agreement that shall not have been invalidated,  and
the  balance  of this  Agreement  not so  invalidated  shall be  enforceable  in
accordance with its terms.

12. Specific  Performance.  The parties  recognize that if any provision of this
Agreement is violated by ISB, the Indemnitee  may be without an adequate  remedy
at law. Accordingly, in the event of any such violation, the Indemnitee shall be
entitled, if the Indemnitee so elects, to institute  proceedings,  either in law
or at equity, to obtain damages, to enforce specific performance, to enjoin such
violation,  or to obtain any relief or any  combination  of the foregoing as the
Indemnitee may elect to pursue.

13. Binding  Effect;  Continuation Of  Indemnification.  This Agreement shall be
binding  upon and inure to the  benefit  of and be  enforceable  by the  parties
hereto  and  their  respective  successors,

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assigns,  including  any  direct or  indirect  successor  by  purchase,  merger,
consolidation  or otherwise to all or  substantially  all of the business and/or
assets of ISB, spouses, heirs, and personal and legal representatives. ISB shall
require and cause any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part, of
the  business  and/or  assets of the,  Bank,  by written  agreement  in form and
substance  satisfactory  to the  Indemnitee,  expressly  to assume  and agree to
perform this  Agreement in the same manner and to the same extent that ISB would
be  required  to  perform  if  no  such   succession   had  taken   place.   The
indemnification   provided  under  this  Agreement  shall  continue  as  to  the
Indemnitee  for any action  taken or not taken while  serving in an  indemnified
capacity even though he may have ceased to serve in such capacity at the time of
any action or other covered Proceeding.

14.  Changes in Applicable  Law. To the extent that changes in the Louisiana law
permit greater  indemnification  by agreement  than would be afforded  currently
under this  Agreement and the Charter and Bylaws of ISB, it is the intent of the
parties  hereto that the  Indemnitee  shall enjoy by this  Agreement the greater
benefits so afforded by such change.  In the event that changes in the Louisiana
law place limitations on indemnification of directors and officers that restrict
the rights to  indemnification  set forth in this Agreement,  any such change in
applicable  law shall not alter any rights or  obligations  then  existing  with
respect to any state of facts then or theretofore  existing or any action,  suit
or proceeding  theretofore or thereafter  brought based in whole or in part upon
any such state of facts.

15.  Amendments.  No  amendment  or  modification  of, or  supplement  to,  this
Agreement  shall be binding  unless  executed  in writing by both of the parties
hereto.

16.  Counterparts.  This Agreement may be executed in one or more  counterparts,
each of which shall constitute an original.

17. Notices. All notices,  requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by
hand and receipted for by the party addressed,  on the date of such receipt,  or
(ii) if mailed by domestic certified or registered mail with postage prepaid, on
the third business day after the date postmarked.  The address for notice to ISB
is 1101 East Admiral Doyle Drive, New Iberia,  Louisiana 70560 , and the address
for  notice  to the  Indemnitee  is as  shown  on the  signature  page  of  this
Agreement, until either is subsequently modified by written notice.

18.  Choice of Law.  This  Agreement  shall be  governed  by and its  provisions
construed  in  accordance  with the laws of the State of Louisiana as applied to
contracts between  residents  thereof entered into and to be performed  entirely
within the State of Louisiana.

19. Titles and Headings.  Titles and headings used herein are for convenience of
reference only.

                                       8
<PAGE>

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date first above written.

THE INDEMNITEE                                 ISB FINANCIAL

_____________________________                  By: __________________________
(type name)

_____________________________                  Title: _________________________
(signature)

_____________________________
(address)

                                       9EXHIBIT 10.10

                            ISB FINANCIAL CORPORATION
                         SUPPLEMENTAL STOCK OPTION PLAN

                                    ARTICLE I
                            ESTABLISHMENT OF THE PLAN

     ISB Financial  Corporation  (the  "Corporation")  hereby  establishes  this
Supplemental  Stock  Option  Plan (the  "Plan")  upon the  terms and  conditions
hereinafter stated.

                                   ARTICLE II
                               PURPOSE OF THE PLAN

     The purpose of this Plan is to improve the growth and  profitability of the
Corporation and its Subsidiary  Companies by providing Employees and Consultants
with a proprietary  interest in the Corporation as an incentive to contribute to
the success of the  Corporation  and its  Subsidiary  Companies,  and  rewarding
Employees and  Consultants  for  outstanding  performance  and the attainment of
targeted goals.  All Incentive Stock Options issued under this Plan are intended
to comply with the  requirements of Section 422 of the Code, and the regulations
thereunder,  and all provisions hereunder shall be read, interpreted and applied
with that purpose in mind;  provided that  Incentive  Stock Options shall not be
granted  unless the Plan receives  stockholder  approval  within one year of the
Effective  Date. Each recipient of an Award hereunder is advised to consult with
his or her  personal  tax advisor  with  respect to the tax  consequences  under
federal,  state,  local and other tax laws of the receipt and/or  exercise of an
Award hereunder.

                                   ARTICLE III
                                   DEFINITIONS

     3.01 "Award" means an Option or Stock  Appreciation  Right granted pursuant
to the terms of this Plan.

     3.02  "Bank"  means   IBERIABANK,   the  wholly  owned  subsidiary  of  the
Corporation.

     3.03 "Board" means the Board of Directors of the Corporation.

     3.04 "Change in Control of the  Corporation"  shall mean the  occurrence of
any of the  following:  (i) an event that would be  required  to be  reported in
response to Item 1(a) of Form 8-K or Item 6(e) of Schedule 14A of Regulation 14A
pursuant to the Exchange Act, or any successor thereto, whether or not any class
of securities of the Corporation is registered  under the Exchange Act; (ii) any
"person" (as such term is used in Sections  13(d) and 14(d) of the Exchange Act)
is or  becomes  the  "beneficial  owner" (as  defined  in Rule  13d-3  under the
Exchange  Act),  directly  or  indirectly,  of  securities  of  the  Corporation
representing 20% or more of the combined voting power of the Corporation's  then
outstanding securities except for any securities purchased by the Corporation or
the Bank; or (iii) during any period of thirty-six consecutive months during the
term of an Option,  individuals  who at the beginning of such period  constitute
the Board of Directors of the Corporation  cease for any reason to constitute at
least a majority thereof unless the election,  or the nomination for election by
stockholders, of each new director was approved by a vote of at least two-thirds
of the directors then still in office who were directors at the beginning of the
period.

     3.05 "Code" means the Internal Revenue Code of 1986, as amended.

     3.06  "Committee"  means a committee of two or more directors  appointed by
the Board  pursuant  to  Article  IV hereof  each whom  shall be a  non-employee
director as defined in Rule  16b-3(b)(3)(i) of the Exchange Act or any successor
thereto and within the meaning of Section 162(m) of the Code and the regulations
promulgated thereunder.

<PAGE>

     3.07 "Common  Stock" means shares of the common stock,  par value $1.00 per
share, of the Corporation.

     3.07A  "Consultant"   means  any  person  who  performs  services,   as  an
independent  contractor but not as a Non-Employee Director, for the Corporation,
the Bank, or any Subsidiary Company.

     3.08  "Disability"  means any physical or mental impairment which qualifies
an individual for disability benefits under the applicable  long-term disability
plan maintained by the Corporation or a Subsidiary Company,  or, if no such plan
applies,  which would qualify such individual for disability  benefits under the
long-term disability plan maintained by the Corporation, if such individual were
covered by that plan.

     3.09  "Effective  Date"  means the day upon which the Board  approves  this
Plan.

     3.10 "Employee"  means any person who is employed by the  Corporation,  the
Bank or any Subsidiary Company, or is an Officer of the Corporation, the Bank or
any Subsidiary Company, but not including directors who are not also Officers of
or otherwise employed by the Corporation, the Bank or any Subsidiary Company.

     3.11 "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     3.12 "Fair Market  Value" shall be equal to the fair market value per share
of the Corporation's  Common Stock on the date an Award is granted. For purposes
hereof,  the Fair Market  Value of a share of Common  Stock shall be the closing
sale price of a share of Common  Stock on the date in question  (or, if such day
is not a trading day in the U.S. markets, on the nearest preceding trading day),
as  reported  with  respect to the  principal  market (or the  composite  of the
markets, if more than one) or national quotation system in which such shares are
then traded,  or if no such closing  prices are  reported,  the mean between the
high bid and low asked  prices  that day on the  principal  market  or  national
quotation system then in use, or if no such quotations are available,  the price
furnished by a  professional  securities  dealer  making a market in such shares
selected by the Committee.

     3.13  "Incentive  Stock  Option"  means any Option  granted under this Plan
which the Board  intends (at the time it is granted)  to be an  incentive  stock
option within the meaning of Section 422 of the Code or any successor thereto.

     3.14 "Non-Employee Director" means a member of the Board of the Corporation
or Board of Directors of the Bank or any successor thereto, including a Director
Emeritus of the Boards of the Corporation and/or the Bank, who is not an Officer
or Employee of the Corporation, the Bank or any Subsidiary Company.

     3.15 "Non-Qualified  Option" means any Option granted under this Plan which
is not an Incentive Stock Option.

     3.16 "Officer"  means an Employee  whose  position in the  Corporation or a
Subsidiary Company is that of a corporate officer, as determined by the Board.

     3.17  "Option"  means a right  granted  under this Plan to purchase  Common
Stock.

     3.18  "Optionee"  means an  Employee  or  Non-Employee  Director  or former
Employee or Non-Employee Director to whom an Option is granted under the Plan.

     3.19  "Retirement"  means a termination of employment  which  constitutes a
"retirement"  under any applicable  qualified pension benefit plan maintained by
the Corporation or a Subsidiary Corporation,  or, if no such plan is applicable,
which would  constitute  "retirement"  under the  Corporation's  pension benefit
plan,  if such  individual  were a  participant  in that plan.  With  respect to
Non-Employee Directors, retirement means retirement from service on the Board of
Directors of the  Corporation  or the Bank or any successor  thereto  (including
service as a Director Emeritus) after attaining the age of 70.

                                       2
<PAGE>

     3.20 "Stock  Appreciation  Right"  means a right to  surrender an Option in
consideration  for a payment by the  Corporation in cash and/or Common Stock, as
provided in the  discretion  of the Board or the  Committee in  accordance  with
Section 8.10.

     3.21 "Subsidiary  Companies"  means those  subsidiaries of the Corporation,
including the Bank, which meet the definition of "subsidiary  corporations"  set
forth in Section  424(f) of the Code,  at the time of  granting  of the Award in
question.

                                   ARTICLE IV
                           ADMINISTRATION OF THE PLAN

     4.01  DUTIES  OF  THE  COMMITTEE.   The  Plan  shall  be  administered  and
interpreted  by the  Committee,  as  appointed  from  time to time by the  Board
pursuant to Section 4.02. The Committee shall have the authority to adopt, amend
and rescind such rules,  regulations  and procedures as, in its opinion,  may be
advisable  in the  administration  of the Plan,  including  without  limitation,
rules,  regulations  and  procedures  which  (i) deal  with  satisfaction  of an
Optionee's tax  withholding  obligation  pursuant to Section 12.02 hereof,  (ii)
include  arrangements  to facilitate the Optionee's  ability to borrow funds for
payment of the  exercise  or purchase  price of an Award,  if  applicable,  from
securities brokers and dealers, and (iii) include arrangements which provide for
the payment of some or all of such  exercise  or  purchase  price by delivery of
previously-owned  shares of Common Stock or other property and/or by withholding
some of the shares of Common Stock which are being acquired.  The interpretation
and  construction  by the  Committee of any  provisions  of the Plan,  any rule,
regulation or procedure  adopted by it pursuant thereto or of any Award shall be
final and binding in the absence of action by the Board.

     4.02  APPOINTMENT  AND  OPERATION  OF THE  COMMITTEE.  The  members  of the
Committee  shall be appointed  by, and will serve at the pleasure of, the Board.
The Board from time to time may remove  members  from,  or add  members  to, the
Committee,  provided  the  Committee  shall  continue  to consist of two or more
members of the Board, each of whom shall be a Non-Employee  Director, as defined
in  Rule  16b-3(b)(3)(i)  of  the  Exchange  Act or any  successor  thereto.  In
addition, each member of the Committee shall be an "outside director" within the
meaning of Section 162(m) of the Code and  regulations  thereunder at such times
as is  required  under  such  regulations.  The  Committee  shall act by vote or
written consent of a majority of its members.  Subject to the express provisions
and limitations of the Plan, the Committee may adopt such rules, regulations and
procedures  as it deems  appropriate  for the  conduct  of its  affairs.  It may
appoint  one of its  members to be  chairman  and any  person,  whether or not a
member, to be its secretary or agent. The Committee shall report its actions and
decisions to the Board at  appropriate  times but in no event less than one time
per calendar year.

     4.03  REVOCATION  FOR  MISCONDUCT.  The  Board  or  the  Committee  may  by
resolution  immediately  revoke,  rescind and terminate  any Option,  or portion
thereof,  to the extent not yet vested, or any Stock Appreciation  Right, to the
extent not yet  exercised,  previously  granted or awarded under this Plan to an
Employee who is discharged  from the employ of the  Corporation  or a Subsidiary
Company for cause, which, for purposes hereof, 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. Options granted
to  a   Non-Employee   Director  who  is  removed  for  cause  pursuant  to  the
Corporation's  Articles of  Incorporation  and Bylaws or the Bank's  Charter and
Bylaws shall terminate as of the effective date of such removal.

     4.04  LIMITATION  ON  LIABILITY.  Neither  the  member of the Board nor any
member of the Committee shall be liable for any action or determination  made in
good faith with respect to the Plan, any rule,  regulation or procedure  adopted
by it pursuant thereto or any Awards granted hereunder. If a member of the Board
or  the  Committee  is a  party  or is  threatened  to be  made a  party  to any
threatened,  pending or completed  action,  suit or  proceeding,  whether civil,
criminal,  administrative  or  investigative,  by reason of anything done or not
done by him in such capacity under or with respect to the Plan, the  Corporation
shall, subject to the requirements of applicable laws and regulation,  indemnify
such member against all liabilities and expenses  (including  attorneys'  fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred
by him in  connection  with such action,  suit or proceeding if he acted in good
faith and in a manner he reasonably  believed to be in the best interests

                                       3
<PAGE>

of the  Corporation  and its  Subsidiary  Companies  and,  with  respect  to any
criminal  action or proceeding,  had no reasonable  cause to believe his conduct
was unlawful.

     4.05  COMPLIANCE  WITH LAW AND  REGULATIONS.  All Awards granted  hereunder
shall be subject to all applicable federal and state laws, rules and regulations
and to such approvals by any government or regulatory agency as may be required.
The Corporation  shall not be required to issue or deliver any  certificates for
shares  of  Common  Stock  prior  to  the  completion  of  any  registration  or
qualification  of or  obtaining  of consents or  approvals  with respect to such
shares  under  any  federal  or  state  law or any  rule  or  regulation  of any
government body, which the Corporation shall, in its sole discretion,  determine
to be necessary or advisable.  Moreover,  no Option or Stock  Appreciation Right
may be  exercised  if such  exercise  would be contrary to  applicable  laws and
regulations.

     4.06 RESTRICTIONS ON TRANSFER. The  Corporation may place a legend upon any
certificate  representing shares acquired pursuant to an Award granted hereunder
noting that the transfer of such shares may be restricted by applicable laws and
regulations.

                                    ARTICLE V
                                   ELIGIBILITY

     Awards may be granted to such Employees and  Consultants of the Corporation
and its Subsidiary Companies as may be designated from time to time by the Board
or the Committee. Awards may not be granted to individuals who are not Employees
or  Consultants  of  either  the   Corporation  or  its  Subsidiary   Companies.
Consultants  shall be eligible to receive only Awards of  Non-Qualified  Options
pursuant to this Plan.

                                   ARTICLE VI
                        COMMON STOCK COVERED BY THE PLAN

     6.01 NUMBER OF SHARES. The aggregate number of shares of Common Stock which
may be issued  pursuant  to this Plan,  subject to  adjustment  as  provided  in
Article IX,  shall be 24,999.  None of such shares  shall be the subject of more
than one Award at any time,  but if an  Option as to any  shares is  surrendered
before  exercise,  or expires or terminates  for any reason  without having been
exercised in full, or for any other reason ceases to be exercisable,  the number
of shares covered thereby shall again become  available for grant under the Plan
as if no  Awards  had been  previously  granted  with  respect  to such  shares.
Notwithstanding  the foregoing,  if an Option is surrendered in connection  with
the exercise of a Stock Appreciation Right, the number of shares covered thereby
shall not be available for grant under the Plan.

     6.02 SOURCE OF SHARES. The shares of Common Stock issued under the Plan may
be authorized but unissued  shares,  treasury  shares,  shares  purchased by the
Corporation  on the open market or from private  sources for use under the Plan,
or shares held in a grantor trust established by the Corporation or the Bank.

                                   ARTICLE VII
                                DETERMINATION OF
                         AWARDS, NUMBER OF SHARES, ETC.

     The Board or the Committee shall, in its discretion, determine from time to
time which Employees and Consultants  will be granted Awards under the Plan, the
number of shares of Common Stock subject to each Award, whether each Option will
be an Incentive Stock Option (in the case of Employees) or a Non-Qualified Stock
Option and the exercise  price of an Option.  In making all such  determinations
there shall be taken into account the duties,  responsibilities  and performance
of each respective Employee and Non-Employee Director, his present and potential
contributions to the growth and success of the Corporation,  his salary and such
other factors deemed relevant to accomplishing the purposes of the Plan.

                                       4
<PAGE>

                                  ARTICLE VIII
                      OPTIONS AND STOCK APPRECIATION RIGHTS

     Each  Option  granted  hereunder  shall  be  on  the  following  terms  and
conditions:

     8.01  STOCK  OPTION  AGREEMENT.  The  proper  Officers  on  behalf  of  the
Corporation and each Optionee shall execute a Stock Option Agreement which shall
set forth the total number of shares of Common  Stock to which it pertains,  the
exercise  price,  whether it is a  Non-Qualified  Option or an  Incentive  Stock
Option,  and such other terms,  conditions,  restrictions  and privileges as the
Board or the Committee in each instance  shall deem  appropriate,  provided they
are not  inconsistent  with the terms,  conditions  and provisions of this Plan.
Each Optionee shall receive a copy of his executed Stock Option Agreement.

     8.02 OPTION EXERCISE PRICE.

                  (A) INCENTIVE STOCK OPTIONS.  The per share price at which the
subject Common Stock may be purchased upon exercise of an Incentive Stock Option
shall be no less than one hundred  percent  (100%) of the Fair Market Value of a
share of Common Stock at the time such Incentive Stock Option is granted, except
as provided in Section 8.09(b).

                  (B)  NON-QUALIFIED  OPTIONS.  The per share price at which the
subject  Common Stock may be purchased upon exercise of a  Non-Qualified  Option
shall be  established  by the  Committee  at the time of grant,  but in no event
shall be less than the one hundred  percent (100%) of the Fair Market Value of a
share of Common Stock at the time such Non-Qualified Option is granted.

     8.03 VESTING AND EXERCISE OF OPTIONS.

                  (A) GENERAL RULES.  Incentive Stock Options and  Non-Qualified
Options granted to Optionees shall become vested and exercisable at the rate, to
the extent and subject to such  limitations  or criteria as may be  specified by
the Board or the Committee. Notwithstanding the foregoing, except as provided in
Section  8.03(b)  hereof,  no  vesting  shall  occur on or  after an  Optionee's
employment or service as a Consultant  with the  Corporation  and all Subsidiary
Companies is terminated  for any reason other than his death or  Disability.  In
determining  the number of shares of Common Stock with respect to which  Options
are  vested  and/or  exercisable,  fractional  shares  will be rounded up to the
nearest whole number if the fraction is 0.5 or higher, and down if it is less.

                  (B)  ACCELERATED  VESTING.  Unless the Board or the  Committee
shall specifically state otherwise at the time an Option is granted, all Options
granted under this Plan shall become vested and  exercisable in full on the date
an Optionee  terminates  his  employment  with the  Corporation  or a Subsidiary
Company or  service as a  Consultant  because  of his death or  disability.  All
Options hereunder shall become immediately vested and exercisable in full on the
date an Optionee  terminates his employment with the Corporation or a Subsidiary
Corporation due to Retirement.  In addition,  all Options hereunder shall become
immediately  vested and exercisable in full as of the effective date of a Change
in Control of the Corporation.

     8.04 DURATION OF OPTIONS.

                  (A) GENERAL RULE.  Except as provided in Sections  8.04(b) and
8.09, each Option or portion thereof granted to an Employee shall be exercisable
at any time on or after it vests and  becomes  exercisable  until the earlier of
(i) ten (10) years after its date of grant or (ii) six (6) months after the date
on  which  the  Employee  ceases  to be  employed  by the  Corporation  and  all
Subsidiary  Companies,  unless  the  Board or the  Committee  in its  discretion
decides at the time of grant or  thereafter  to extend  such  period of exercise
upon termination of employment to a period not exceeding five (5) years.

     Except as  provided  in Section  8.04(b),  each  Option or portion  thereof
granted to a Consultant  shall be  exercisable  at any time on or after it vests
and becomes  exercisable  until the earlier of (i) ten (10) years after its date

                                       5
<PAGE>

of grant or (ii) three (3) years after the date on which the  Consultant  ceases
to serve as a consultant to the Corporation and all Subsidiary Companies, unless
the Board or the  Committee  in its  discretion  decides at the time of grant or
thereafter  to extend such period of exercise upon  termination  of service to a
period not exceeding five (5) years.

                  (B)  EXCEPTIONS.  Unless  the  Board  or the  Committee  shall
specifically state otherwise at the time an Option is granted, if an Employee or
Consultant  terminates  his  employment  or service  with the  Corporation  or a
Subsidiary  Company as a result of Disability or Retirement without having fully
exercised his Options,  the Optionee shall have the right,  during the three (3)
year period  following  his  termination  due to Disability  or  Retirement,  to
exercise such Options.

     Unless the Board or the Committee shall specifically state otherwise at the
time an Option is granted if an Employee or Consultant terminates his employment
or service with the  Corporation or a Subsidiary  Company  following a Change in
Control of the  Corporation  without  having fully  exercised  his Options,  the
Optionee  shall have the right to exercise such Options  during the remainder of
the original ten (10) year term of the Option from the date of grant.

     Unless the board or the Committee shall specifically state otherwise at the
time an Option is granted, if an Optionee dies while in the employ or service of
the Corporation or a Subsidiary Company or terminates employment or service with
the Corporation or a Subsidiary  Company as a result of Disability or Retirement
and  dies  without   having  fully   exercised  his  Options,   the   executors,
administrators,  legatees or  distributees  of his estate  shall have the right,
during the one (1) year period following his death, to exercise such Options.

     In no event,  however,  shall any Option be exercisable  more than ten (10)
years from the date it was granted.

     8.05  NONASSIGNABILITY.  Options shall not be  transferable  by an Optionee
except by will or the laws of descent or distribution,  and during an Optionee's
lifetime shall be exercisable  only by such Optionee or the Optionee's  guardian
or legal representative.  Notwithstanding the foregoing,  or any other provision
of this Plan,  an Optionee who holds  Non-Qualified  Options may  transfer  such
Options to his or her spouse,  lineal ascendants,  lineal  descendants,  or to a
duly  established  trust for the  benefit  of one or more of these  individuals.
Options so transferred  may  thereafter be transferred  only to the Optionee who
originally  received the grant or to an individual or trust to whom the Optionee
could have  initially  transferred  the Option  pursuant to this  Section  8.05.
Options which are transferred pursuant to this Section 8.05 shall be exercisable
by the  transferee  according to the same terms and conditions as applied to the
Optionee.

     8.06 MANNER OF  EXERCISE.  Options may be exercised in part or in whole and
at one time or from time to time. The procedures for exercise shall be set forth
in the written Stock Option Agreement provided for in Section 8.01 above.

     8.07 PAYMENT FOR SHARES.  Payment in full of the purchase  price for shares
of Common Stock  purchased  pursuant to the exercise of any Option shall be made
to the Corporation  upon exercise of the Option.  All shares sold under the Plan
shall be fully  paid and  nonassessable.  Payment  for shares may be made by the
Optionee  (i) in cash or by  check,  (ii) by  delivery  of a  properly  executed
exercise notice, together with irrevocable  instructions to a broker to sell the
shares  and then to  properly  deliver  to the  Corporation  the  amount of sale
proceeds to pay the exercise  price,  all in accordance with applicable laws and
regulations,  or (iii) at the discretion of the Committee,  by delivering shares
of Common  Stock  (including  shares  acquired  pursuant  to the  exercise of an
Option)  equal in Fair Market  Value to the  purchase  price of the shares to be
acquired  pursuant to the Option,  by  withholding  some of the shares of Common
Stock which are being  purchased upon exercise of an Option,  or any combination
of the foregoing.  With respect to subclause (iii) hereof,  the shares of Common
Stock delivered to pay the purchase price must have either been (x) purchased in
open market  transactions  or (y) issued by the  Corporation  pursuant to a plan
thereof,  in each case more than six months  prior to the  exercise  date of the
Option.

     8.08  VOTING AND  DIVIDEND  RIGHTS.  No  Optionee  shall have any voting or
dividend  rights or other  rights of a  stockholder  in respect of any shares of
Common Stock covered by an Option prior to the time that his

                                       6
<PAGE>

name is recorded on the Corporation's stockholder ledger as the holder of record
of such shares acquired pursuant to an exercise of an Option.

     8.09 ADDITIONAL  TERMS  APPLICABLE TO INCENTIVE STOCK OPTIONS.  All Options
issued under the Plan as Incentive Stock Options will be subject, in addition to
the terms  detailed in Sections 8.01 to 8.08 above,  to those  contained in this
Section 8.09.

                  (A)   Notwithstanding   any  contrary   provisions   contained
elsewhere  in this Plan and as long as required by Section 422 of the Code,  the
aggregate Fair Market Value, determined as of the time an Incentive Stock Option
is granted,  of the Common Stock with respect to which  Incentive  Stock Options
are  exercisable  for the first time by the Optionee  during any  calendar  year
under this Plan, and stock options that satisfy the  requirements of Section 422
of the Code  under  any  other  stock  option  plan or plans  maintained  by the
Corporation (or any parent or Subsidiary Company), shall not exceed $100,000.

                  (B) LIMITATION ON TEN PERCENT STOCKHOLDERS. The price at which
shares of Common Stock may be  purchased  upon  exercise of an  Incentive  Stock
Option granted to an individual  who, at the time such Incentive Stock Option is
granted, owns, directly or indirectly,  more than ten percent (10%) of the total
combined  voting  power of all classes of stock  issued to  stockholders  of the
Corporation or any Subsidiary Company, shall be no less than one hundred and ten
percent  (110%) of the Fair Market  Value of a share of the Common  Stock of the
Corporation at the time of grant,  and such Incentive  Stock Option shall by its
terms not be exercisable  after the earlier of the date determined under Section
8.03 or the  expiration  of five (5) years  from the date such  Incentive  Stock
Option is granted.

                  (C) NOTICE OF DISPOSITION;  WITHHOLDING;  ESCROW.  An Optionee
shall  immediately  notify the  Corporation  in  writing of any sale,  transfer,
assignment  or  other  disposition  (or  action   constituting  a  disqualifying
disposition  within the  meaning  of  Section  421 of the Code) of any shares of
Common Stock acquired through exercise of an Incentive Stock Option,  within two
(2) years after the grant of such Incentive  Stock Option or within one (1) year
after the  acquisition  of such  shares,  setting  forth the date and  manner of
disposition, the number of shares disposed of and the price at which such shares
were  disposed  of. The  Corporation  shall be  entitled  to  withhold  from any
compensation  or other  payments  then or  thereafter  due to the Optionee  such
amounts as may be necessary to satisfy any  withholding  requirements of federal
or state law or  regulation  and,  further,  to collect  from the  Optionee  any
additional amounts which may be required for such purpose.  The Committee or the
Board may, in its  discretion,  require  shares of Common  Stock  acquired by an
Optionee  upon  exercise of an  Incentive  Stock  Option to be held in an escrow
arrangement  for the purpose of enabling  compliance with the provisions of this
Section 8.09(c).

                  (D)      STOCKHOLDER  APPROVAL.  Incentive Stock Options shall
not be granted unless the Plan receives  stockholder approval within one year of
the Effective Date.

     8.10 STOCK APPRECIATION RIGHTS.

                  (A) GENERAL TERMS AND  CONDITIONS.  The Board or the Committee
may, but shall not be obligated to, authorize the Corporation, on such terms and
conditions as it deems appropriate in each case, to grant rights to Optionees to
surrender an exercisable  Option,  or any portion thereof,  in consideration for
the  payment  by the  Corporation  of an amount  equal to the excess of the Fair
Market  Value of the shares of Common  Stock  subject to the Option,  or portion
thereof,  surrendered over the exercise price of the Option with respect to such
shares (any such authorized  surrender and payment being hereinafter referred to
as a "Stock Appreciation  Right").  Such payment, at the discretion of the Board
or the Committee,  may be made in shares of Common Stock valued at the then Fair
Market  Value  thereof,  or in cash,  or partly in cash and  partly in shares of
Common Stock.

                  The terms and conditions with respect to a Stock  Appreciation
Right may include  (without  limitation),  subject to other  provisions  of this
Section 8.10 and the Plan: the period during which,  date by which or event upon
which the Stock  Appreciation  Right may be  exercised;  the method for  valuing
shares of Common  Stock

                                       7
<PAGE>

for  purposes of this  Section  8.10;  a ceiling on the amount of  consideration
which the Corporation  may pay in connection  with exercise and  cancellation of
the Stock Appreciation  Right; and arrangements for income tax withholding.  The
Board or the Committee shall have complete discretion to determine whether, when
and to whom Stock Appreciation Rights may be granted.

                  (B)  TIME  LIMITATIONS.  If a holder  of a Stock  Appreciation
Right  terminates  service with the  Corporation as an Officer or Employee,  the
Stock Appreciation Right may be exercised only within the period, if any, within
which the Option to which it relates may be exercised.

                  (C)  EFFECTS  OF  EXERCISE  OF STOCK  APPRECIATION  RIGHTS  OR
OPTIONS.  Upon the exercise of a Stock Appreciation  Right, the number of shares
of Common Stock available under the Option to which it relates shall decrease by
a number  equal to the number of shares for which the Stock  Appreciation  Right
was exercised.  Upon the exercise of an Option,  any related Stock  Appreciation
Right shall  terminate as to any number of shares of Common Stock subject to the
Stock  Appreciation  Right that exceeds the total number of shares for which the
Option remains unexercised.

                  (D) TIME OF  GRANT.  A Stock  Appreciation  Right  granted  in
connection with an Incentive Stock Option must be granted  concurrently with the
Option  to  which  it  relates,  while a Stock  Appreciation  Right  granted  in
connection  with a  Non-Qualified  Option may be granted  concurrently  with the
Option to which it relates or at any time  thereafter  prior to the  exercise or
expiration of such Option.

                  (E) NON-TRANSFERABLE. The holder of a Stock Appreciation Right
may not transfer or assign the Stock  Appreciation  Right otherwise than by will
or in  accordance  with the  laws of  descent  and  distribution,  and  during a
holder's  lifetime a Stock  Appreciation  Right may be  exercisable  only by the
holder.

                                   ARTICLE IX
                         ADJUSTMENTS FOR CAPITAL CHANGES

     The aggregate number of shares of Common Stock available for issuance under
this Plan,  the number of shares to which any  outstanding  Award  relates,  the
maximum  number of shares that can be covered by Award to each Employee and each
Consultant  and  the  exercise  price  per  share  of  Common  Stock  under  any
outstanding  Option  shall  be  proportionately  adjusted  for any  increase  or
decrease  in the total  number of  outstanding  shares  of Common  Stock  issued
subsequent  to  the  effective  date  of  this  Plan  resulting  from  a  split,
subdivision  or  consolidation  of shares or any other capital  adjustment,  the
payment of a stock  dividend,  or other  increase  or  decreases  in such shares
effected without receipt or payment of  consideration  by the  Corporation.  If,
upon a merger, consolidation,  reorganization,  liquidation, recapitalization or
the like of the Corporation,  the shares of the Corporation's Common Stock shall
be exchanged for other securities of the Corporation or of another  corporation,
each recipient of an Award shall be entitled,  subject to the conditions  herein
stated,  to purchase or acquire  such number of shares of Common Stock or amount
of  other  securities  of the  Corporation  or such  other  corporation  as were
exchangeable  for the number of shares of Common Stock of the Corporation  which
such  optionees  would have been entitled to purchase or acquire except for such
action,  and  appropriate  adjustments  shall be made to the per share  exercise
price of  outstanding  Options.  Notwithstanding  any  provision to the contrary
herein  and to the extent  permitted  by  applicable  laws and  regulations  and
interpretations  thereof,  the exercise  price of shares  subject to outstanding
Awards may 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,  providing  that the  adjustment to the per share  exercise  price
shall satisfy the criteria set forth in Emerging  Issues Task Force 90-9 (or any
successor  thereto)  so that  the  adjustments  do not  result  in  compensation
expense,  and provided further that if such adjustment with respect to incentive
stock options would be treated as a modification  of the  outstanding  incentive
stock  options with the effect that,  for purposes of Sections 422 and 425(h) of
the Code, and the rules and regulations  promulgated  thereunder,  new Incentive
Stock Options would be deemed to be granted hereunder, then no adjustment to the
per share exercise price of outstanding stock options shall be made.

                                       8
<PAGE>
                                    ARTICLE X
                      AMENDMENT AND TERMINATION OF THE PLAN

     The Board may, by resolution,  at any time terminate or amend the Plan with
respect to any shares of Common Stock as to which Awards have not been  granted,
subject to any required  stockholder  approval or any stockholder approval which
the Board may deem to be  advisable  for any reason,  such as for the purpose of
obtaining  or  retaining  any  statutory  or  regulatory   benefits  under  tax,
securities or other laws or satisfying  any applicable  stock  exchange  listing
requirements.  The Board may not, without the consent of the holder of an Award,
alter or impair any Award previously granted or awarded under the Plan except as
specifically authorized herein.

                                   ARTICLE XI
                          EMPLOYMENT AND SERVICE RIGHTS

     Neither the Plan nor the grant of any Award  hereunder nor any action taken
by the Committee or the Board in connection with the Plan shall create any right
on the part of any Employee or Consultant to continue in such capacity.

                                   ARTICLE XII
                                   WITHHOLDING

     12.01 TAX  WITHHOLDING.  The Corporation may withhold from any cash payment
made under this Plan sufficient amounts to cover any applicable  withholding and
employment  taxes,  and if the amount of such cash  payment is  sufficient,  the
Corporation  may  require  the  Optionee  to pay to the  Corporation  the amount
required  to be  withheld  as a  condition  to  delivering  the shares  acquired
pursuant to an Award.  The Corporation also may withhold or collect amounts with
respect  to a  disqualifying  disposition  of shares of  Common  Stock  acquired
pursuant  to  exercise  of an  Incentive  Stock  Option,  as provided in Section
8.09(c).

     12.02 METHODS OF TAX WITHHOLDING.  The Board or the Committee is authorized
to adopt rules,  regulations or procedures which provide for the satisfaction of
an Optionee's  tax  withholding  obligation by the retention of shares of Common
Stock to which the Employee or Consultant  would otherwise be entitled  pursuant
to an Award  and/or by the  Optionee's  delivery of  previously  owned shares of
Common Stock or other property.

                                  ARTICLE XIII
                        EFFECTIVE DATE OF THE PLAN; TERM

     13.01 EFFECTIVE DATE OF THE PLAN.  This Plan shall become  effective on the
Effective  Date,  and Awards may be granted  hereunder  no earlier than the date
that this Plan is approved by  stockholders  of the Corporation and prior to the
termination of the Plan,  provided that this Plan is approved by stockholders of
the Corporation pursuant to Article XIV hereof.

     13.02 TERM OF THE PLAN. Unless sooner terminated, this Plan shall remain in
effect for a period of ten (10)  years  ending on the tenth  anniversary  of the
Effective Date.  Termination of the Plan shall not affect any Awards  previously
granted and such Awards  shall  remain  valid and in effect until they have been
fully  exercised  or earned,  are  surrendered  or by their terms  expire or are
forfeited.

                                   ARTICLE XIV
                              STOCKHOLDER APPROVAL

     The Corporation may in its discretion  submit this Plan to stockholders for
approval at a meeting of stockholders of the Corporation held within twelve (12)
months following the Effective Date in order to meet the

                                       9
<PAGE>

requirements of Section 422 of the Code and regulations thereunder,  and Section
162(m) of the Code and regulations thereunder.

                                   ARTICLE XV
                                  MISCELLANEOUS

     15.01  GOVERNING  LAW. To the extent not governed by federal law, this Plan
shall be construed under the laws of the State of Louisiana.

     15.02 PRONOUNS.  Wherever appropriate,  the masculine pronoun shall include
the feminine pronoun, and the singular shall include the plural.

                                       10

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