Document:

EXHIBIT 10.8

                                  GROUND LEASE

THIS LEASE made and entered into this 23rd day of February, 2000, by and between
CHERRYWOOD DEVELOPMENT, LLC, a Kentucky limited liability company, whose mailing
address is 2560 Richmond Road,  Lexington,  Kentucky 40502 (the  "Lessor"),  and
FIRST SECURITY BANK OF LEXINGTON, a Kentucky banking corporation,  whose mailing
address is 400 East Main Street, Lexington, Kentucky 40507 (the "Lessee").

                              W I T N E S S E T H:

 Lessor and Lessee,  for and in  consideration  of the keeping by the parties of
their respective obligations hereinafter contained agree as follows:

                                    Article I

                                 Leased Premises

 Section 1.01.  Leased Premises.  Upon the terms and conditions  hereinafter set
forth,  and in  consideration  of the  payment of rents and the  performance  by
Lessee of the  covenants  and  agreements,  to be kept and  performed by Lessee,
Lessor  does  lease,  let,  and demise to Lessee and Lessee  hereby  leases from
Lessor,  the  property  situated,  lying and being at  ________________________,
Lexington,  Kentucky, being more particularly described as Lot No. 4 (consisting
of 0.59  acres of  land),  as shown on the  Final  Recorded  Plat of the  Atkins
Property,  Unit 2-B, of record in Plat  Cabinet  ___,  Slide ___, in the Fayette
County Clerk's  Office,  together with certain  easements for the benefit of the
premises,  all as  described  on Exhibit "A"  attached  hereto and  incorporated
herein  by  reference,   and  all  other  rights,   privileges,   easements  and
appurtenances   belonging  to  or  in  any  way   pertaining   to  the  premises
(collectively, the "Leased Premises").

                                   Article II

                             Term; Options to Renew

 Section 2.01.  Initial Term.  The initial term of this Lease shall  commence on
the 1st day of April,  2000, or the sixtieth  (60th) day following the recording
of a "Subdivision  Plat" described in Section  18.01(c)  below,  whichever shall
occur last, and shall continue for a term of five (5) years  thereafter,  unless
terminated  sooner as provided below ("Initial Term").  Lessor and Lessee,  upon
written  request of the other,  shall  execute a written  addendum to this Lease
setting forth the commencement date of the Initial Term.

 Section 2.02. Option to Renew. Provided that Lessee is not in default under the
terms of the Lease, Lessee shall have the option to renew the term of this Lease
for five (5) consecutive renewals terms of five (5) years each ("Renewal Term"),
under the same terms and  conditions  as the  initial  term,  except for rent as
provided for in Article III below. Lessee shall exercise such option to renew by
giving  Lessor  written  notice  not later  than  sixty  (60) days  prior to the
expiration of the initial term,  or the  then-current  renewal term, as the case
may be.

                                   Article III

                                   Annual Rent

 Section 3.01. Annual Rent. During the term of this Lease (including the Initial
Term and any Renewal Term),  Lessee shall pay to Lessor, at the Lessor's address
given  above,  or at such  other  places  as the  Lessor  may from  time to time
designate  in  writing,  annual  rent  as set  forth  below,  in  equal  monthly
installments,  in advance, commencing on the 1st day of the first lease year, as
follows:

   Lease Years                   Annual Rent                Monthly Rent

        1                         $55,000.00                $ 4,583.33*1
        2                         $60,000.00                $ 5,000.00
        3-5                       $68,000.00                $ 5,666.67
        6-10                      $74,800.00                $ 6,233.33
        11-15                     $82,280.00                $ 6,856.67
        16-20                     $90,508.00                $ 7,542.33
        21-25                     $99,558.80                $ 8,296.57
        26-30                     $109,514.68               $ 9,126.22

  *1  Notwithstanding  the above,  Lessee shall pay to Lessor rent for the first
three (3) months of the first  lease  year,  in the manner  provided  above,  in
monthly  installments  of  Two  Thousand  Two  Hundred  Ninety  One  and  67/100
($2,291.67)  Dollars,  rather than Four Thousand  Five Hundred  Eighty Three and
33/100 ($4,583.33) Dollars.

      Section  3.02.  Past Due Rent.  If Lessee  shall  fail to pay any  monthly
      installment  of rent,  within ten (10) days of its due date,  such  unpaid
      installment  shall be subject to a penalty  equal to five (5%)  percent of
      the delinquent  rental  installment  plus interest at the rate of eighteen
      (18%)  percent  per annum on the amount of the unpaid  rental  installment
      from the date it becomes delinquent until the date it is paid in full.

      Section  3.03.  Costs Paid by Lessee.  It is the  intention and purpose of
      both  Lessor and Lessee to create by this  instrument  a lease of the kind
      commonly  referred  to as a "Carefree  Lease" or "Triple  Net Lease",  and
      accordingly,  Lessee agrees to bear,  pay for, and discharge not only such
      items as specifically agreed by the provisions of this Lease, but also all
      costs,  charges,  and expenses of every kind and nature to accomplish  the
      purpose  and  objective  of  creating a  "Carefree  Lease" or "Triple  Net
      Lease".

                                   Article IV

                                Payment of Taxes

      Section  4.01.  Payment of Taxes.  During the Initial Term and any Renewal
      Term, Lessee shall pay directly to the taxing  authorities,  and discharge
      as they become due, all ad valorem property taxes,  and other  assessments
      attributable  to the Leased  Premises;  however,  any ad valorem  property
      taxes or other  assessments for a tax year in which the Lease is effective
      for less than a full tax year shall be pro-rated between Lessor and Lessee
      as of the date of commencement of this Lease or the date of termination of
      this Lease.  Lessee shall have the right, at its own expense, to challenge
      any tax or  assessment;  however,  such  challenge  will not  relieve  the
      Lessee's  obligation  hereunder,  if any, to pay such taxes  promptly when
      due.

                                    Article V

                          Release/Subrogation/Insurance

      Section 5.01. Lessee's Release. Lessor, its agents, employees and servants
      shall not be liable,  and Lessee  waives all claims for damage to property
      and business  sustained  during the term of this Lease by Lessee occurring
      in or about Leased  Premises,  resulting  from the negligence of Lessee or
      arising out of the operation of Lessee's  business on the Leased  Premises
      and  Lessee   agrees,   subject   to  the   paragraph   hereof   captioned
      "Subrogation", to hold Lessor harmless from all claims.

      Section 5.02. Lessor's Release. Lessee, its agents, employees and servants
      shall not be liable,  and Lessor  waives all claims for damage to property
      and business  sustained  during the term of this Lease by Lessor occurring
      in or about Leased Premises,  resulting from the negligence of Lessor, and
      Lessor agrees, subject to the paragraph hereof captioned "Subrogation", to
      hold Lessee harmless from all claims.

<PAGE>

      Section 5.03.  Liability  Insurance.  During the Lease Term,  Lessee shall
      cause  to be  written  a  policy  or  policies  of  insurance  in the form
      generally known as general public liability insurance.  The policies shall
      insure Lessee against all claims and demands made by any person or persons
      for injuries  received in connection with the operation and maintenance of
      the premises,  improvements,  and buildings located on the Leased Premises
      and for any other risk  insured  against by such  policies.  Each class of
      policies  shall be written  with  limits of not less than One  Million and
      No/100  ($1,000,000)  Dollars  per  occurrence  and Two Million and No/100
      ($2,000,000)  Dollars  aggregate.  All such policies shall name Lessee and
      Lessor (and any mortgagee of Lessor,  provided  Lessor  advises  Lessee in
      writing  as to the  name and  address  of any  such  mortgagee),  as their
      respective  interests  may appear,  as the insured  persons.  Lessee shall
      promptly  deliver the  original or a duplicate  original of each policy or
      policies to Lessor as soon as they are  written,  together  with  adequate
      evidence of the fact that the premiums are paid.

      Section 5.04. Property Insurance.  During the Lease Term, Lessee will keep
      insured any and all buildings and  improvements  upon the Leased  Premises
      against all loss or damage by fire and windstorm, together with "all risk"
      coverage.  The amount of insurance  shall be for the full insurable  value
      thereof,  subject  to usual  and  customary  deductibles.  Such  insurance
      policy(ies)  shall name  Lessor  (and any  mortgagee  of Lessor,  provided
      Lessor  advised  Lessee in writing as to the name and  address of any such
      mortgagee) as an additional insured.

      Section 5.05. Copies of Insurance Policies. Lessee shall deliver to Lessor
      copies of all such  policies  along with the  receipted  bills  evidencing
      payment of the premiums for them.  Such policies shall provide that Lessor
      shall be given thirty (30) days written  notice prior to  cancellation  of
      any policy.

      Section 5.06. Limitations of Liability. Neither Lessor nor Lessee shall be
      liable to the other or anyone  claiming  by,  through  or under  Lessor or
      Lessee,  including  an insurance  carrier or  carriers,  for any damage to
      premises,  property  or  business  caused by any peril which is covered by
      standard "all risk"  insurance or for which either party may be reimbursed
      as a result of insurance  coverage  affecting any loss suffered by it. All
      of the  insurance  policies  required  hereunder  pertaining to the Leased
      Premises shall contain an endorsement by the respective insurance carriers
      waiving any and all rights of subrogation  against Lessor and Lessee,  and
      Lessor  and  Lessee  will  each  deliver  to the  other  evidence  of such
      endorsement prior to the commencement of this Lease.

                                   Article VI

                     Improvements, Repairs, and Alterations

      Section 6.01.  Improvements.  During the term of this Lease,  Lessee shall
      have the right, at Lessee's cost and expense,  to construct on any part or
      all of the  Leased  Premises,  at any time,  and from  time to time,  such
      buildings,  parking  areas,  driveways,  and other similar and  dissimilar
      improvements,  as Lessee, from time to time determines,  provided that (a)
      Lessee has  obtained  Lessor's  prior  written  approval of such  intended
      improvements  and exterior  landscaping  (which such approval shall not be
      unreasonably  withheld),  and (b) such improvements shall be in compliance
      with all applicable  building  codes and  ordinances,  including,  without
      limiting the generality of the foregoing, a banking facility, with a three
      (3) lane  drive-thru  window.  Notwithstanding  the  above,  any  building
      constructed upon the Leased Premises shall be of a "Colonial Williamsburg"
      design, or other similar period design.

      Section 6.02.  Repairs.  During the term of this Lease,  Lessee shall,  at
      Lessee's  cost  and  expense,  keep and  maintain  or cause to be kept and
      maintained in repair and good condition (ordinary wear and tear and damage
      by fire or other  casualty  and taking by eminent  domain  excepted),  all
      buildings and other improvements  constructed on the Leased Premises,  and
      shall use all reasonable precaution to prevent waste, damage or injury.

      Section 6.03.  Alterations.  During the term of this Lease, Lessee may, at
      Lessee's option and expense,  at any time and from time to time, make such
      alterations,  changes, replacements,  improvements and additions in and to
      the Leased Premises, and the buildings and improvements thereon, as it may
      deem   desirable,   including  the  demolition  of  any   building(s)  and
      improvement(s)  and/or  structure(s) that now or hereafter may be situated
      or erected on the Leased  Premises,  provided  that Lessee  first  obtains
      Lessor's  written  consent  (which such consent shall not be  unreasonably
      withheld).

<PAGE>

      Section 6.04. No Duty to Construct.  Nothing contained in this Lease shall
      impose an affirmative duty upon Lessee to construct any improvement on the
      Leased Premises at any time, or, if and when Lessee elects to construct an
      improvement,  to replace or rebuild  such  improvement  or to require  the
      continued  existence of such  improvement;  however (a) if Lessee fails to
      construct a banking  facility and open said  facility for business  within
      three(3) years of the date of this Lease, or (b) if after a casualty loss,
      Lessee fails to rebuild such  facility and reopen same within one (1) year
      of said casualty loss or such other mutually reasonable time period needed
      for Lessee to obtain all building  approvals  and/or  insurance  proceeds,
      then Lessor, at Lessor's election,  shall have the right to terminate this
      Lease upon ninety (90) days prior written notice to Lessee.  To the extent
      Lessor and Lessee  cannot agree on a  reasonable  time period in excess of
      one year for Lessee to rebuild  and reopen the  banking  facility  after a
      casualty  loss,  Lessor  and  Lessee  agree to submit the issue to binding
      arbitration.

      Section 6.05. Title to Improvements. During the term of this Lease, Lessee
      shall at all times  have  title to the  buildings  and other  improvements
      which Lessee  constructs  on or under the Leased  Premises.  Except as set
      forth below, upon the expiration,  termination or forfeiture of this Lease
      by any cause  whatsoever,  title to the buildings  and other  improvements
      located on the Leased  Premises  (excluding  Lessee's  personal  property,
      equipment and trade fixtures,  as more  particularly  described in Section
      17.01  and  Section  17.02  below)  shall  automatically  vest in  Lessor.
      Notwithstanding  the above,  within  ninety (90) days prior to the date of
      expiration of the initial term, or the  then-current  renewal term, as the
      case may be,  Lessee  may elect to remove  from the  Leased  Premises  the
      building and other improvements, restoring the Leased Premises to the same
      condition as required by Lessor under Section  18.01(e)  below.  If Lessee
      makes such an election,  then Lessee shall give Lessor  written  notice of
      the election on or before the ninetieth (90th) day preceding the aforesaid
      expiration  date,  and  shall  cause to  remove  the  building  and  other
      improvements on or before the aforesaid expiration date.

<PAGE>

                                   Article VII

                             Use of Leased Premises

      Section 7.01. Use of Leased Premises.  The Leased Premises may be used for
      a banking facility,  with a three (3) lane drive-thru  window, and related
      uses. Any other use of the Leased  Premises  shall require  Lessor's prior
      written  consent (which such consent shall not be  unreasonably  withheld,
      provided  that  Lessor may refuse to consent to a use which  would cause a
      conflict  with  any  other  leases  Lessor  may have  for  other  property
      adjoining the Leased Premises).

                                  Article VIII

                                    Utilities

      Section  8.01.  Utilities.  During the term of this Lease,  payment of all
      utilities  used upon or in connection  with the Leased  Premises  shall be
      paid by Lessee directly to the provider of such utility services.

                                   Article IX

                                Mechanics' Liens

      Section 9.01.  Mechanics' Liens.  Lessee shall not subject Lessor's
      interest in the Leased Premises to any mechanics' or materialmen's

      liens or other lien of any kind, except to the extent that the creation of
      such  lien or liens is  specifically  authorized  by a  provision  in this
      Lease.  Lessor  shall  have the  right to post the  Leased  Premises  with
      notices of non-responsibility for Lessee's improvements.

      Section 9.02.  Discharge of Liens.  Lessee shall not allow a lien or claim
      of any kind to be filed or claimed against Lessor's interest in the Leased
      Premises  during the continuance of this Lease. If such lien is claimed or
      filed, Lessee shall notify Lessor as soon as it has knowledge of such lien
      and, if and when Lessor gives written notice to Lessee  requiring  removal
      of the lien from the  Leased  Premises,  Lessee  shall  cause  the  Leased
      Premises  to be  released  from the claim  within  thirty  (30) days after
      receipt of such notice from Lessor.  Lessee will cause such release either
      by paying to the court the amount  necessary  to relieve  and  release the
      Leased  Premises from the claim, or in any other manner which, as a matter
      of law,  will  result,  within the thirty  (30) day period,  in  releasing
      Lessor and its title from the claim.  In no event will  Lessee  permit the
      loss of the Leased Premises through lien foreclosure or otherwise.

<PAGE>

                                    Article X

                 Default, Cumulative Remedies and Governing Law

      Section 10.01. Default by Lessee. Except as provided for in Section 10.02,
      if Lessee  defaults in the payment of a monthly  installment  of rent, and
      fails  to cure  same  within  ten (10)  days of  Lessor's  written  notice
      thereof,  or if Lessee fails to perform any other covenant or condition of
      this  Lease,  and fails to cure same  within  thirty (30) days of Lessor's
      written notice thereof, Lessor may declare this Lease terminated.  In such
      an  event,  Lessor  may  re-enter  upon any part of the  premises  and the
      building or  buildings  and  improvements  situated on it,  either with or
      without  process of law,  Lessee  waiving any demand for possession of the
      premises and all buildings and improvements situated thereon.

      Section  10.02.  Restriction  on  Termination.  Notwithstanding  any other
      provisions  contained in this Lease,  in the event the Lessee is closed or
      taken over by the banking  authority  of the State of  Kentucky,  or other
      bank supervisory  authority,  the Lessor may terminate the Lease only with
      the  concurrence  of such  banking  authority  or other  bank  supervisory
      authority,  and any such  authority  shall in any event have the  election
      either to continue or to terminate the Lease; provided,  that in the event
      this Lease is  terminated,  the  maximum  claim of Lessor  for  damages or
      indemnity for injury  resulting  from the rejection or  abandonment of the
      unexpired  term of the Lease  shall in no event be in an amount  exceeding
      the rent reserved by the Lease,  without  acceleration,  for the next year
      succeeding the date of the surrender of the Leased Premises to the Lessor,
      or the date of re-entry of the Lessor,  whichever  first  occurs,  whether
      before  or after the  closing  of the  bank,  plus an amount  equal to the
      unpaid rent accrued, without acceleration up to such date.

      Section  10.03.  Default by Lessor.  If Lessor  fails to perform any other
      covenant or condition of this Lease,  and fails to cure same within thirty
      (30) days of Lessee's  written  notice  thereof,  Lessee may declare  this
      Lease terminated.

      Section 10.04.  Remedies. In addition to the remedies set forth in Section
      10.01 and Section 10.02 above, Lessor and Lessee shall have all rights and
      remedies  which the laws of the State of Kentucky  assure to them; and all
      such rights and remedies  shall be  cumulative;  that is, Lessor or Lessee
      may  pursue  all rights  that the law and this  Lease  afford to them,  in
      whatever order they may desire and the law permits without being compelled
      to resort to any one remedy in advance of any other.

      Section  10.05.  Costs of  Enforcement.  If, at any time,  either party is
      required to enforce this Lease or to defend any action  arising out of the
      facts connected with or caused by reason of this Lease or occupancy of the
      Leased Premises,  the party seeking enforcement or defending an action, if
      successful,  shall be  entitled to payment by the other party of all court
      costs and  reasonable  attorneys'  fees incurred or expended in conducting
      the defense or in enforcing  the terms of this Lease.  Such amounts may be
      offset  against  rent,  in the case of  Lessee,  or in the case of Lessor,
      collected as though it was rent then maturing and coming due.

      Section 10.06.  Governing  Law. All of the rights and remedies of
      the parties shall be governed by the provisions of this instrument
      and by the laws of the State of Kentucky.

                                   Article XI

                  Lessor's Representations/Warranties/Covenants

      Section 11.01.  Lessor's Representations.  Lessor represents,
      warrants and covenants that:

      (a)   Lessor is lawfully seized of the Leased Premises and no
            other party has any right or option thereto or in connection
            therewith;

      (b)   Lessor has full right and power to enter into this Lease
            with respect to the Leased Premises;

<PAGE>

      (c)   The Leased Premises are free from all encumbrances  except those set
            out in Exhibit "B" attached hereto and incorporated herein;

      (d)   There are no  restrictions  or  stipulations  or  planning or zoning
            ordinances,  laws,  regulations or  restrictions  now in effect with
            respect to the Leased  Premises that would prevent the  construction
            and operation of a banking facility with a three (3) lane drive-thru
            window;

      (e)   To the  best  of  Lessor's  knowledge,  there  are no  environmental
            defects at, on or under the Leased Premises, and Lessor will provide
            Lessee with copies of all  environmental  studies it has obtained on
            the Leased Premises;

      (f)   There are no pending or, to the best knowledge of Lessor,
            threatened condemnation proceedings or actions affecting
            the Leased Premises;

      (g)   There are no pending or, to the best knowledge of Lessor, threatened
            actions  or legal  proceedings  affecting  the  Leased  Premises  or
            Lessor's interest therein;

      (h)   There are no unpaid special assessments for sewer, sidewalk,  water,
            paving,   electrical   or  power   improvements   or  other  capital
            expenditures or improvements, matured or unmatured;

      (i)   Lessor is not aware of any facts or circumstances which
            would materially adversely affect the use or value of the
            Leased Premises;

      (j)   Lessor,  to the best of Lessor's  knowledge,  knows of no reason why
            the  ground  would not be  suitable  for  construction  of a banking
            facility with a three (3) lane drive-thru window;

      (k)   Lessor is not obligated on any contract,  lease or other  agreement,
            written or oral,  with respect to the ownership,  use,  operation or
            maintenance of the Leased Premises, other than contracts, leases and
            agreements which have been disclosed to Lessee in writing;

      (l)   The Leased  Premises has access  through the private  street  system
            constructed  by Lessor as show on Exhibit "A",  which private street
            system  provides a valid means of ingress and egress to and from the
            Leased Premises, sufficient for Lessee's proposed use;

      (m)   The Leased  Premises has direct legal access to all  utilities at or
            within the boundaries of the Leased Premises of sufficient  capacity
            and type for Lessee's proposed use; and

      (n)   Lessee's  use of the Leased  Premises as a banking  facility  with a
            three (3) lane drive-thru  window does not violate any use clause or
            exclusivity clause in any agreement to which Lessor is a party.

      Section 11.02.  Survival.  All such representations, warranties and
      covenants set forth above shall survive the date of execution of
      this Lease.

                                   Article XII

                            Assignment and Subletting

      Section 12.01. Assignment and Subletting.  Lessee may, at any time, assign
      this Lease or sublet all or any  portion of the Leased  Premises  with the
      consent of Lessor,  which shall not be  unreasonably  withheld;  provided,
      however,  that no such  assignment or subletting  shall operate to release
      Lessee from its liability  under this Lease.  Lessee shall provide  Lessor
      with notice of any such assignment or subletting.

                                  Article XIII

                                  Condemnation

<PAGE>

      Section 13.01.  Eminent Domain.  If, during the term of this Lease, all or
      any  portion  of the  Leased  Premises,  or the  improvements  constructed
      thereon, is taken,  appropriated or condemned by reason of eminent domain,
      Lessor and Lessee shall divide the proceeds and awards in the condemnation
      proceedings,  abate the rent,  and make  other  adjustments  in a just and
      equitable  manner  under the  circumstances.  If Lessor and Lessee  cannot
      agree on a just and equitable division, annual abatement of rent, or other
      adjustments  within  thirty  (30) days after the award has been made,  the
      disputed  matters  shall,  by appropriate  proceedings,  be submitted to a
      court  having  jurisdiction  of the subject  matter for its  decision  and
      determination.  If legal title to the entire  premises is wholly  taken by
      condemnation  (or if the amount taken  prevents  the use of the  remainder
      left  following  condemnation  for Lessee's  purposes,  as  determined  in
      Lessee's  reasonable  judgment),  the Lease shall be  terminated as of the
      date of the taking.

      Section  13.02.  Apportionment.  Although  title to the building and other
      improvements placed by Lessee upon the Leased Premises will pass to Lessor
      upon  the   expiration  of  the  term  of  this  Lease,   for  purpose  of
      condemnation,  the fact that Lessee created the improvements on the Leased
      Premises shall be taken into account.  The  deprivation of Lessee's use of
      the improvements shall,  together with the remaining term of the Lease, be
      an item of damage in  determining  Lessee's  portion  of the  condemnation
      award. It is the general intent of this Article that,  upon  condemnation,
      the  parties  shall  share  in  their  awards  to the  extent  that  their
      respective  interests  are  depreciated,  damaged,  or  destroyed  by  the
      exercise of the right of eminent domain. If the condemnation is total, the
      condemnation award shall be allocated so that the then value of the Leased
      Premises,  as if it were unimproved property,  is allocated to Lessor, and
      the then value of the improvements thereon is allocated between Lessor and
      Lessee after giving due  consideration to the number of years remaining in
      the term of this Lease and the condition of the  improvements  at the time
      of condemnation.  Specifically,  if a condemnation award is granted within
      the Initial Term or the first renewal term of this Lease, the Lessee shall
      be entitled to one hundred  (100%)  percent of the award as it pertains to
      the building and other  improvements  so  constructed.  If a  condemnation
      award is granted  within  either the second  (2nd) or third (3rd)  renewal
      terms, the Lessee shall be entitled to fifty (50%) percent of the award as
      it pertains to the building.

                                   Article XIV

                              Environmental Matters

      Section 14.01. Lessee's Covenant. Lessee covenants with Lessor that Lessee
      will not unlawfully generate, store or dispose of any Hazardous Substances
      (as defined below)on the Leased  Premises.  Lessee agrees to indemnify and
      hold  Lessor  harmless  from  any  and all  costs,  expenses,  damages  or
      liabilities  incurred by or imposed upon Lessor,  directly or  indirectly,
      arising  out of or  attributable  to (a)  the  use,  generation,  storage,
      release,  threatened  release,  discharge,  disposal (on or off the Leased
      Premises)  or  presence  on,  under or about the  Leased  Premises  of any
      Hazardous Substances relating to the operations of the Lessee or occupants
      on the Leased Premises after the  commencement of this Lease;  and (b) any
      release or threatened  release of Hazardous  Substances  which are located
      in, at or under the Leased  Premises after the  commencement of the Lease.
      Lessee agrees that such indemnity shall include the continued migration of
      any Hazardous  Substance  which occurs  because of any existing  Hazardous
      Substance release after the commencement of the Lease.

      Section 14.02.  Lessor's  Representation and Warranties.  To Lessor's best
      knowledge  and  belief,  no  toxic  or  hazardous  substances  or  wastes,
      pollutants or contaminants (including, without limitation,  asbestos, urea
      formaldehyde,  the group of  organic  compounds  known as  polychlorinated
      biphenyls,  petroleum products including gasoline, fuel oil, crude oil and
      various  constituents  of such products,  and any hazardous  substances as
      defined in the  Comprehensive  Environmental  Response,  Compensation  and
      Liability Act of 1980 ("CERCLA"),  42 U.S.C. ss. 9601-9657, as amended) or
      any similar state or local laws relating to any such  substances,  wastes,
      pollutants or contaminants (collectively "Hazardous Substances") have been
      generated,  treated, stored, released or disposed of, or otherwise placed,
      deposited  in or located on the Leased  Premises by Lessor or, to Lessor's
      best  knowledge  after  diligent  investigation,  by any  other  owners or
      occupants of the Leased Premises.

<PAGE>

      Section 14.03.  Indemnification of Lessee.  Lessor agrees to indemnify and
      hold  Lessee  harmless  from  any  and all  costs,  expenses,  damages  or
      liabilities  incurred by or imposed  upon Lessee  directly or  indirectly,
      arising  out of or  attributable  to (a)  the  use,  generation,  storage,
      release,  threatened  release,  discharge,  disposal (on or off the Leased
      Premises)  or  presence  on,  under or about the  Leased  Premises  of any
      Hazardous Substances relating to the operations of the Lessor or owners or
      occupants  on the Leased  Premises  at the  commencement  of this Lease or
      prior to such  commencement;  and (b) any release or threatened release of
      Hazardous Substances which are located in, at or under the Leased Premises
      as of the  commencement  of the Lease.  Lessor agrees that such  indemnity
      shall include the continued  migration of any  Hazardous  Substance  which
      occurs  because of any  existing  Hazardous  Substance  release.  Lessor's
      obligation to indemnify and hold Lessee  harmless  hereunder shall survive
      expiration or termination  of the Lease.  The disclosure to or acquisition
      of knowledge by Lessee prior to termination of the Lease of the current or
      past  existence  of  Hazardous  Substances  on the Leased  Premises  or of
      possible claims or liability  relating thereto,  shall not modify,  limit,
      waive or diminish the liability of Lessor under this paragraph.

                                   Article XV

                                  Subordination

      Section  15.01.  Subordination.  This Lease  shall be  subordinate  to any
      mortgage  or  mortgages  which  may be  placed  upon the  Leased  Premises
      subsequently,  but only if the  mortgagee  under any such  mortgage  shall
      covenant in writing  that  Lessee's  leasehold  interest  under this Lease
      shall not be foreclosed or otherwise disturbed in any action brought under
      such mortgage if at the time of the bringing of an action to foreclose the
      Lessee is not in default in the payment of rent or in the  performance  of
      any other material  obligation under this Lease,  with due allowance to be
      given for the  payment of any past due rent or for the  correction  of any
      other  default  by the Lessee  within  the  period of any notice  given or
      required to be given by the terms of this Lease.

                                   Article XVI

                                 Quiet Enjoyment

      Section 16.01.  Quiet Enjoyment.  So long as Lessee keeps and performs all
      of its covenants  and  conditions  under this Lease,  it shall have quiet,
      undisturbed,  and  continued  possession  of the  premises,  free from all
      claims  against  Lessor and all  persons  claiming  under,  by, or through
      Lessor.

<PAGE>

                                  Article XVII

                                Personal Property

      Section  17.01.  Personal  Property.  In the event that Lessee  constructs
      improvements  on  the  Leased  Premises,   it  is  possible  that  certain
      furniture,  fixtures  and  equipment  to be installed by the Lessee in the
      Leased  Premises are or may be either leased by the Lessee or purchased by
      the Lessee from a lessor or conditional seller,  otherwise hypothecated to
      a "Third Party". Therefore, all of such furniture,  fixtures and equipment
      installed by the Lessee in the Leased  Premises  shall at all times be and
      remain personal  property,  regardless of the method in which the property
      of the Lessee and/or such "Third Party" is attached or fixed to the Leased
      Premises.  The Lessor  specifically agrees that its rights, if any in such
      furniture,  fixtures  and  equipment  shall at all  times be  subject  and
      subordinate to the rights of any such "Third Party", it being specifically
      agreed by the Lessor that any such "Third  Party"  shall have the right to
      remove the furniture,  fixtures or equipment  from the Leased  Premises in
      the event of the  default of the Lessee in  complying  with any  agreement
      relating to such  furniture,  fixtures and equipment.  Lessee shall repair
      any material  damage caused to the Leased  Premises by any such removal at
      its expense.  Lessor shall  execute any  additional  waivers,  consents or
      other documents reasonably required by Lessee or any such "Third Party" to
      effectuate the terms of this paragraph.

      Section 17.02. Bank Specific Systems and Equipment.  Lessee shall have the
      right to remove all "bank specific systems and equipment"  installed in or
      upon the Leased Premises, and used in the operation of the Leased Premises
      as a banking  facility,  including,  but not limited to, night deposit box
      facilities,  automated teller machines, safety deposit boxes, vault doors,
      teller deposit boxes, and drive-thru equipment and air tubes.

                                  Article XVIII

                               Execution of Lease

      Section  18.01.  Execution of Lease.  Lessor and Lessee are hereby
      executing  this Lease,  subject to Lessee's  ability to obtain the
      following:

      (a)  Written   approval  from   Department   of  Financial   Institutions,
           Commonwealth of Kentucky,  and Federal Deposit Insurance Corporation,
           approving  (i)  Lessee's   application  for  the   establishment  and
           operation of a branch bank, (ii) Lessee's  operation of a branch bank
           upon the Leased  Premises,  and (iii) Lessee's entry into this Lease,
           upon the terms and conditions set forth herein;

      (b)  Final approval of the Board of Directors of Lessee approving Lessee's
           entry into this Lease upon the terms and conditions set forth herein;

      (c)  A copy of the recorded  subdivision plat creating the Leased Premises
           ("Subdivision  Plat"), which plat shall be in substantial  conformity
           with Exhibit "A";

      (d)  All necessary zoning and building permits, including signage permits,
           and all  other  government  agency  approvals  necessary  for (i) the
           construction  of a banking  facility with a three (3) lane drive-thru
           window,  (ii) the  creation of not less than two (2) proper curb cuts
           permitting  ingress and egress to and from Walden Drive to the Leased
           Premises,  and the natural  flow of  vehicular  traffic on the Leased
           Premises,  and (iii) the displacement of surface water collected upon
           the Leased  Premises  into a  retention  basin to be  constructed  by
           Lessor, on Lessor's remaining property, as shown in yellow on Exhibit
           "A" to this Lease;

<PAGE>

      (e)  Evidence that Lessor,  in compliance with all applicable  ordinances,
           regulations   and  codes,   has  completed  the  development  of  the
           subdivision known as Adkins Property,  Unit 2-B, Lexington,  Kentucky
           ("Subdivision"),  but  not  limited  to  (i)  the  completion  of the
           Subdivision's private street system as shown on the Subdivision Plat,
           including all entries from Tates Creek Road, (ii) the installation of
           all underground utilities (water, gas, electric,  sanitary sewer, and
           storm sewer)  services for the  Subdivision,  and has brought same to
           the  boundary  of Leased  Premises,  with all such  services to be of
           sufficient capacity to permit Lessee to operate upon the Premises the
           proposed banking facility, (iii) the construction the retention basin
           on Lessor's remaining property,  as shown in yellow on Exhibit "A" to
           this Lease,  and  constructed  all ancillary  drainage  swells and/or
           lines  necessary to permit the natural flow of service water from the
           boundary of the Leased Premises to said retention easement,  and (iv)
           final  grade of the  Leased  Premises,  leaving  said  premises  in a
           condition suitable for site development.

           Lessee  agrees to use its best  efforts to obtain the  approvals  set
           forth in subparagraphs (a), (b) and (d) above.

           Section 18.02.  Lessee's Right to Cancel Lease. Lessee shall have the
           right to terminate this Lease, without further obligations to Lessor,
           if Lessee,  within  ninety (90) days of the date of execution of this
           Lease,  has been unable to obtain all of the necessary  approvals set
           forth in Section 18.01 above, to Lessee's reasonable satisfaction. If
           Lessee is unable to obtain all of the necessary approvals referred to
           in Section 18.01 above,  within said period,  and same be as a result
           of  the  failure  of  Lessor  to  complete  the  development  of  the
           subdivision  and to record  the  Subdivision  Plat,  then  Lessee may
           extend  said  period for an  additional  period  ending the  sixtieth
           (60th) day following the recording of the Subdivision  Plat. Upon the
           expiration  of the ninety (90) day period (or as the case may be, the
           extended period), Lessee shall give written notice to Lessor advising
           Lessor of Lessee's  intent to cancel  this Lease.  Failure to provide
           Lessor with such notice shall constitute Lessee's waiver of the right
           to terminate this Lease.

                                   ARTICLE XIX

                             FIRST RIGHT OF REFUSAL

           Section  19.01.  First Right of Refusal.  If Lessor  receives  from a
           third party a bona fide offer to purchase the Leased Premises, before
           Lessor  may accept  such an offer,  Lessor  must  first give  written
           notice to Lessee of said  offer.  Lessee  shall have thirty (30) days
           from the date of  receipt  of said  offer,  to  provide  Lessor  with
           written  acceptance of the offer,  upon the same terms and conditions
           as set forth  therein  (but in  addition  thereto,  such  sale  shall
           include all rights of Lessor in and to this Lease). If Lessee accepts
           said offer,  closing shall take place within sixty (60) days from the
           date of  acceptance.  Lessee may elect to assign  Lessee's  rights to
           purchase  the  Leased  Premises  to  the  parent  of  the  Lessee,  a
           subsidiary  of the Lessee,  or other entity wholly owned by Lessee or
           its parent.  If Lessee  fails to accept said offer  within the thirty
           (30) days provided  herein,  Lessor may proceed to sell to said third
           party in  accordance  with the terms of the offer.  If Lessor has not
           consummated  a sale  within one hundred  eighty  (180) days after the
           expiration of Lessee's option rights hereunder,  the restrictions and
           options herein  provided shall be restored and shall continue in full
           force  and  effect,  and so long as these  restrictions  and  options
           remain in effect the Lessor shall not thereafter sell or transfer the
           Leased  Premises  without  first  giving the Lessee  notice as herein
           provided and otherwise complying with the foregoing provisions.

                                   ARTICLE XX

                                  Miscellaneous

           Section  20.01.  Force  Majeure.  If Lessor  or  Lessee  is  delayed,
           hindered,  or prevented from performing any act required hereunder by
           reason of strikes,  lockouts,  labor  troubles,  inability to procure
           materials,   failure  of  power,   restrictive   government  laws  or
           regulations,  riots, insurrection, the act, failure to act or default
           of the other  party,  war, or other reason  beyond its control,  then
           performance  of the act shall be excused for the period of the delay.
           In that  event,  the period for the  performance  of the act shall be
           extended for a period equivalent to the period of the delay.

<PAGE>

           Section 20.02. Estoppel Certificates. Lessor or Lessee shall, without
           charge,  at any time and from time to time hereafter,  within fifteen
           (15) days after the others' written request of the other,  certify by
           instrument  duly  executed  and  acknowledged  to  any  mortgagee  or
           purchaser or proposed mortgagee or proposed  purchaser,  or any other
           person, firm, or corporation specified in the request as to:

           (a)  Whether this Lease has been supplemented or amended,
                and, if so, the substance and manner of the supplement
                or amendment;

           (b)  The validity and force and effect of this Lease, in
                accordance with its tenor as then constituted;

           (c)  The existence of any default thereunder;

           (d)  The existence of all offsets, counterclaims, or
                defenses thereto on the part of the other party;

           (e)  The commencement and expiration dates of the term
                of this Lease; and

           (f) All other matters that may reasonably be so requested.

           Any such certificate may be relied upon by the party who requested it
           ad any other person, firm, or corporation to whom it may be exhibited
           or delivered, and the contents of the certificate shall be binding on
           the party executing it.

           Section 20.03.  Short Form of Lease.  Lessor or Lessee shall,  at any
           time, at the other's request, promptly execute duplicate originals of
           an instrument,  in recordable  form,  which shall  constitute a short
           form of  lease.  This  will set  forth a  description  of the  Leased
           Premises,  the term of this  Lease,  and any other  portion  thereof,
           except for the rental provisions, requested by either party.

           Section 20.04. No Personal Recourse.  No personal liability
           shall attach to any of Lessee's present or future shareholders,
           officers, or directors, for any obligation hereunder or in
           connection herewith.

           Section 20.05.  Income Tax  Deductions  and Credits.  Only Lessee may
           take  deductions  and credits on its tax  returns for the  buildings,
           structures,  improvements,  changes, alterations, repairs, additions,
           and installations, and for their depreciation or cost recovery.

           Section  20.06.  Covenants  Running with Land;  Binding  Effect.  All
           covenants, conditions, and obligations contained herein or implied by
           law are covenants running with the land and shall attach and bind and
           inure to the benefit of Lessor and Lessee and their respective heirs,
           legal representatives,  successors,  and assigns, except as otherwise
           provided herein.

           Section 20.07.  Non-waiver.  No waiver of a breach of any covenant in
           this Lease shall be construed to be a waiver of any succeeding breach
           of the same covenant. No delay or failure by either party to exercise
           any right under this Lease, and no partial or single exercise of that
           right,  shall constitute a waiver of that or any other right,  unless
           otherwise expressly provided herein.

           Section 20.08.  Holding Over. If Lessee shall remain in possession of
           the Leased Premises after the expiration or other termination of this
           Lease,  Lessee shall be deemed a tenant of the Leased  Premises  from
           month to month and  subject to all the terms and  provisions  of this
           Lease, except only as to the term of this Lease.

           Section  20.09.  Written  Modifications.  No  modification,  release,
           discharge,  or waiver of any provision  hereof shall be of any force,
           effect,  or value unless signed in writing by the party foregoing its
           rights, or such party's duly authorized agent or attorney.

<PAGE>

           Section 20.10. Entire Agreement.  This instrument contains the entire
           agreement  between the parties  hereto as of this date. The execution
           hereof  has not been  induced  by  either  party by  representations,
           promises,  or  understandings  not  expressed  herein.  There  are no
           collateral  agreements,   stipulations,   promises,  or  undertakings
           whatsoever  upon  the  respective  parties  in any way  touching  the
           subject matter of this instrument  which are not expressly  contained
           in it.

           Section 20.11. Notices. All notices between the parties in connection
           with this Lease shall be in accordance  with its terms.  Notice shall
           be given by  registered  or certified  mail,  deposited in the United
           States mails with postage prepaid.  The notices shall be addressed as
           follows:

           For Lessor:

                  Cherrywood Development, LLC
                  3399 Tates Creek Road
                  Lexington, Kentucky 40502

           With a copy to:

                  Mr. Phil Greer
                  P.O. Box 54465
                  Lexington, Kentucky 40555-4465

           For Lessee:

                  First Security Bank of Lexington
                  Attn: Julian Beard, President
                  400 East Main Street
                  Lexington, Kentucky 40507

           With a copy to:

                  Fleming, Horstmeyer & Fleming
                  Attn: Kermin E. Fleming
                  200 West Vine Street

                  Suite 700
                  Lexington, Kentucky 40507

           Either party may change the place for giving notice by written notice
           in the manner set forth in this Section.

<PAGE>

           Section  20.12.  Liability  Continued.  All  references to Lessor and
           Lessee mean the persons who, from time to time, occupy the positions,
           respectively,  of  Lessor  and  Lessee.  However,  this  shall not be
           construed as relieving a person of any  liability  incurred by reason
           of or in connection with it having been Lessor or Lessee at one time.

           Section  20.13.  Real Estate Broker.  Lessor and Lessee,  each to the
           other, acknowledge that they have not utilized the services of a real
           estate  broker  licensed  under the laws of the State of  Kentucky in
           connection with this transaction. Lessor and Lessee agree to hold the
           other  harmless  from any and all  claims  from any such real  estate
           broker,  agent,  realtor  or  others,  asserting  a claim  for such a
           commission through said party.

           Section  20.14.  Headings.  Headings  in this Lease are for
           convenience and reference only and shall not be used to
           interpret or construe its provisions.

           Section 20.15.  Time of Essence. Time is expressly declared
           to be of the essence of this Lease.

           Section 20.16.  Exhibits.  Attached hereto are certain
           exhibits, all of which are hereby incorporated herein as an
           integral part of this Lease.

           IN WITNESS  WHEREOF,  Lessor and Lessee have hereunto set their hands
           and seals, the day and year above written.

                                     LESSOR:

                                       CHERRYWOOD DEVELOPMENT, LLC,
                                       a Kentucky limited liability company

                                       BY: RML Construction, RLLP
                                       Kentucky registered limited liability
                                       partnership, Member

                                       BY: /s/ D.Ray, Ball, Jr.
                                           D. RAY BALL. JR., Managing Member

                                       BY: /s/ Phil G. Greer
                                           PHIL G. GREER, Member

                                       BY: /s/ Frank Sadler
                                           FRANK SADLER, Member

                                     LESSEE:

                                       FIRST SECURITY BANK OF LEXINGTON,
                                       a Kentucky banking corporation

                                       BY:/s/ Julian E. Beard
                                          JULIAN BEARD, President

<PAGE>

STATE OF KENTUCKY

COUNTY OF FAYETTE

 The foregoing  instrument was subscribed,  sworn to, and acknowledged before me
on this the 24th day of February,  2000, by D. Ray Ball, Jr., as Managing Member
of RML Construction RLLP, a Kentucky registered limited liability partnership,on
behalf of said partnership, as Member of Cherrywood Development,  LLC a Kentucky
limited liability company, on behalf of said company.

My Commission Expires:

NOTARY PUBLIC, STATE AT LARGE

STATE OF KENTUCKY

COUNTY OF FAYETTE

 The foregoing  instrument was subscribed,  sworn to, and acknowledged before me
on this the 23rd day of February,  2000, by Julian Beard,  as President of First
Security Bank of Lexington,  a Kentucky banking  corporation,  on behalf of said
corporation.

My Commission Expires:June 14, 2000

/s/ Donna Ann Collins

NOTARY PUBLIC, STATE AT LARGE

Prepared By:

Fleming, Horstmeyer & Fleming
200 West Vine Street

Suite 700
Lexington, Kentucky 40507
(606) 255-6806

BY:/s/Kermin E. Fleming
   KERMIN E. FLEMINGEXHIBIT 10.9
                     FIRST SECURITY BANK OF LEXINGTON, INC.

                                STOCK AWARD PLAN
<PAGE>

                     FIRST SECURITY BANK OF LEXINGTON, INC..
                                STOCK AWARD PLAN

     1. Purpose. The purpose of the First Security Bank of Lexington, Inc. Stock
Award Plan (the "Plan") is to secure for First Security Bank of Lexington,  Inc.
and its successors and assigns (the "Bank") and its stockholders the benefits of
the additional incentive,  inherent in the ownership of the Bank's common stock,
no par value per share (the "Common Stock"),  by selected  employees,  directors
and advisory directors of the Bank and its subsidiaries who are important to the
success and growth of the business of the Bank and its  subsidiaries and to help
the Bank and its  subsidiaries  secure and retain the services of such  persons.
Compensation  awarded  under the Plan in  appropriate  instances  is intended to
qualify for tax deductibility  pursuant to the requirements of Section 162(m) of
the Internal Revenue Code of 1986, as amended from time to time or any successor
statute or statutes (the "Code"),  to the extent deemed appropriate by the Board
(as defined in Paragraph 2. 1 hereof).

     Pursuant to the Plan, selected employees,  directors and advisory directors
of the Bank will be offered the  opportunity to acquire Common Stock through the
grant of options,  stock  appreciation  rights in tandem  with such  options and
awards of restricted stock. Any options,  rights or awards granted hereunder are
a matter  of  separate  inducement  and are not in lieu of any  salary  or other
compensation  for the services of any advisory  director, director or employee.
Options  granted  under  the Plan  will be  either  "incentive  stock  options,"
intended to qualify as such under the  provisions of Section 422 of the Code, or
"nonqualified stock options". For purposes of the Plan, the terms "parent" and
"subsidiary"  shall mean  "parent  corporation"  and  "subsidiary  corporation,"
respectively,  as such terms are defined in Sections 424(e) and (f) of the Code.

 2.      Committee.

         2.1  Administration.  The Plan shall be administered  by the board of
directors of the Bank or by a committee appointed by the board of directors from
among its members (collectively, the "Board"). Any such committee appointed
shall be comprised, unless otherwise  determined by the board of directors,
solely of not less than two members who shall be (i) "Non-Employee Directors"
within the meaning of Rule 16b-3(b)(3) (or any successor rule)  promulgated
under the Securities  Exchange Act of 1934, as amended (the "Exchange Act") and
(ii) "disinterested directors". For purposes of the Plan, a person shall be
deemed to be a "disinterested  person"  if, at the time of  reference, such
person is not, and has not been at any time during the preceding one-year
period, eligible to participate in the Plan or any other plan of the Bank or any
of its affiliates entitling participants therein to acquire stock, stock options
or  stock   appreciation   rights  of  the  Bank  or  any  of  its   affiliates.
Notwithstanding  any of the foregoing,  the board of directors may designate one
or more  persons,  who at the  time of such  designation  are not  disinterested
persons,  to serve on any such committee effective upon the date such person
or persons qualify as disinterested persons. Any vacancy on any such committee,
whether due to action of the board of directors  or due to any  other  cause,
may be filled, and shall be filled if required to  maintain any such committee
of at least two  disinterested  persons, by resolution adopted by the board of
directors.

<PAGE>

         2.2 Procedures. The Board shall adopt such rules and regulations as
it shall deem appropriate  concerning the administration of the Plan. A majority
of the whole Board shall constitute a quorum,  and the acts of a majority of
the members of the Board  present at a meeting at which a quorum is present,
or acts approved in writing by all of the members of the Board, shall be the
acts of the Board.

         2.3  Interpretation.  The Board shall have full power and authority
to interpret the provisions of the Plan and any agreement  evidencing options or
restricted  stock awards  granted  under the Plan,  and to determine any and all
questions  arising under the Plan, and its decisions  shall be final and binding
on all participants in the Plan. The Board shall have exclusive authority to
select the individuals to be granted awards under the Plan, to determine the
type, size and terms of all such awards, to modify the terms of any awards so
granted and to make any other determinations which it deems necessary or
desirable for the administration of the Plan.

         2.4  Liability.  No member of the Board and no employee of the Bank
shall be liable for any act or failure to act hereunder, except in circumstances
involving his or her bad faith, gross negligence or willful  misconduct,  or for
any act or failure to act  hereunder  by any other  member or employee or by any
agent to whom duties in  connection  with the  administration  of this Plan have
been delegated.  The Bank shall indemnify members of the Board and any agent
of the  Board  who is an employee of the Bank, a subsidiary  or an affiliate
against any and all  liabilities  or expenses to which they may be  subjected by
reason of any act or  failure to act with  respect to their  duties on behalf of
the Plan,  except in  circumstances  involving  such  person's bad faith,  gross
negligence or willful misconduct.

     The  Board  may delegate to one or more of its  members,  or to one or more
agents, such administrative duties as it may deem advisable,  and the Board,
or any person to whom it has delegated  duties as  aforesaid,  may employ one or
more persons to render advice with respect to any  responsibility  the Board
or such person may have under the Plan.  The  Board may employ such legal or
other  counsel,  consultants  and  agents  as it  may  deem  desirable  for  the
administration of the Plan and may rely upon any opinion or computation received
from any such counsel,  consultant or agent.  Expenses incurred by the Board
in the  engagement  of such  counsel,  consultant  or agent shall be paid by the
Bank, or the subsidiary or affiliate  whose  employees have  benefitted from the
Plan, as determined by the Board.

 3.      Shares Subject to Grants.

         3.1 Number of Shares.  Subject to the provisions of Paragraph 19 hereof
(relating to adjustments upon mergers, reorganizations or like changes in
capitalization), the number of shares of Common Stock subject at any one time
to options or awards of restricted stock or deferred  stock units granted under
the Plan,  plus the number of shares of Common Stock theretofore issued or
delivered pursuant to the exercise of options granted, and awards of restricted
stock and deferred stock units made, under the Plan, shall not exceed 50,000
shares;  provided,  that no more than one-fifth of such shares may be awarded
as restricted stock awards. If and to the extent that options granted under the
Plan terminate, expire or are canceled without having been exercised, or
restricted stock or deferred stock units are forfeited, new options, restricted
stock or deferred stock units may be granted under the Plan with respect to the
shares of Common Stock covered by such  terminated, expired or canceled options
or forfeited  shares of restricted  stock or deferred stock units;  provided,
that the granting  and terms of such new options,  restricted stock awards and
deferred  stock units shall in all  respects  comply with the provisions of the
Plan.

<PAGE>

         3.2  Character of Shares.  Shares of Common Stock  delivered  under the
Plan may be authorized  and unissued  Common Stock,  issued Common Stock held in
the Bank's treasury, or both.

         3.3  Reservation  of Shares.  There  shall be reserved at all times for
sale or award under the Plan a number of shares of Common Stock  (authorized and
unissued Common Stock, issued Common Stock held in the Bank's treasury, or both)
equal to the maximum number of shares set forth in Paragraph 3. 1 hereof.

 4.      Eligibility.  Options  and awards of  restricted  stock may be granted
under the Plan to any employee, direcor or advisory director of the Bank or any
of its subsidiaries, or to any prospective employee, director or advisory
director of the Bank or any of its  subsidiaries,  conditioned  upon, and
effective  not earlier  than,  such person's becoming an employee or director.
Notwithstanding the foregoing:

         (a)      Only non-qualified stock options may be granted to non-
employee directors or advisory directors of the Bank;

      (b) No  incentive  stock  options may be granted  under the Plan to any
person  who owns,  directly  or  indirectly  (within  the  meaning  of  Sections
422(b)(6)  and 424(d) of the Code),  at the time the  incentive  stock option is
granted,  stock  possessing  more than 10% of the total combined voting power of
all classes of stock of the employee's employer corporation or of its parent, if
any, or any of its subsidiaries, unless the option price is at least 110% of the
fair market value of the shares subject to the option, determined on the date of
the grant,  and the option by its terms is not exercisable  after the expiration
of five years from the date such option is granted; and

         (c) In each  calendar  year  during  any part of  which  the Plan is in
effect, no Participant (as defined below) may be granted options relating in the
aggregate to more than 10,000 shares of Common  Stock,  subject to adjustment as
provided in Paragraph 19 hereof.

     An  individual  receiving  any option,  restricted  stock award or deferred
stock units under the Plan is hereinafter  referred to as a  "Participant."  Any
reference  herein to the  employment of a Participant  by the Bank shall include
(i) his or her employment by the Bank or any of its subsidiaries,  and (ii) with
respect  to a  Participant  who was not an  employee  of the  Bank or any of its
subsidiaries  at the time of grant of his or her  option  or  award,  his or her
period of service in the capacity for which the option or award was granted. For
all purposes of this Plan, the time at which an option or award is granted shall
be deemed to be the effective date of such grant.

     The Plan does not create a right in any person to  participate in the Plan,
nor does it create a right in any person to have any  options or rights  granted
to him or her.

<PAGE>

 5. Grant of Options.  The Board shall determine,  within the limitations of
the Plan,  the persons to whom  options are to be granted,  the number of shares
that may be purchased under each option and the option price,and shall designate
options  at  the  time  of  grant  as  either   "incentive   stock  options"  or
"nonqualified  stock  options";  provided,  that the aggregate fair market value
(determined  as of the time the  option is  granted)  of the  Common  Stock with
respect to which incentive  stock options become  exercisable for the first time
by any  Participant  (as  defined in  Paragraph 4 hereof) in any  calendar  year
(under all stock option plans of the  employee's  employer  corporation  and its
parent, if any, and its subsidiaries)  shall not exceed $100,000 (the provisions
of Section  422(d) of the Code are  intended  to  govern).  In  determining  the
persons to whom options  shall be granted and the number of shares to be covered
by each option, the Board shall take into consideration the person's present
and potential  contribution to the success of the Bank and its  subsidiaries and
such other factors as the  Board  may deem proper and relevant.  Each option
granted  under the Plan shall be  evidenced by a written  agreement  between the
Bank and the Participant  containing such terms and conditions and in such form,
not  inconsistent  with the provisions of the Plan or, with respect to incentive
stock options, Section 422 of the Code, as the Board shall provide.

 6. Option Price. Subject to Paragraph 19 hereof, the option price of each share
of Common Stock  purchasable  under any incentive stock option granted under the
Plan shall be not less than the fair market  value of such share of Common Stock
at the time the option is granted,  and the option price of each share of Common
Stock purchasable  under any  non-qualified  stock option granted under the Plan
shall  not be less  than 50% of the fair  market  value of such  share of Common
Stock at the time the option is granted. The option price of an option issued in
a transaction  described in Section  424(a) of the Code shall be an amount which
conforms to the requirements of that Section and the regulations thereunder.

     For purposes of this Plan,  the "fair market  value" of the Common Stock on
any date  means  (i) if the  Common  Stock is listed  on a  national  securities
exchange  or  quotation  system,  the closing  sales  price on such  exchange or
quotation system on such date or, in the absence of reported sales on such date,
the closing sales price on the  immediately  preceding  date on which sales were
reported,  (ii) if the  Common  Stock is not  listed  on a  national  securities
exchange or quotation  system,  the mean  between the bid and offered  prices as
quoted  by the  National  Association  of  Securities  Dealers,  Inc.  Automated
Quotation  System  ("NASDAQ")  for such  date or (iii)  if the  Common  Stock is
neither listed on a national  securities exchange or quotation system nor quoted
by NASDAQ,  the fair value as  determined  by such other method as the Board
determines in good faith to be reasonable.

 7. Stock  Appreciation  Rights.  In the  discretion of the  Board,  a stock
appreciation right may be granted (a) alone, (b)  simultaneously  with the grant
of an option (either incentive or non-qualified) and in conjunction therewith or
in the  alternative  thereto or (c)  subsequent to the grant of a  non-qualified
option and in conjunction therewith or in the alternative thereto.

    The  exercise  price of a right  granted  alone shall be  determined  by the
Board  but  shall not be less than one  hundred  percent  (100%) of the fair
market  value of one share of Common Stock on the date of grant of such right.
A right granted simultaneously with or subsequent to the grant of an option and
in conjunction therewith or in the  alternative  thereto shall have the same
exercise prices as the  related  option,  shall  be  transferable  only upon the
same  terms  and conditions  as the related  option,  and shall be  exercisable
only to the same extent as the related  option; provided, however, that a right,
by its terms, shall be exercisable only when the fair market value of the shares
subject to the right and related option exceeds the exercise price thereof.

<PAGE>

     Upon  exercise of a right granted  simultaneously  with or subsequent to an
option  and in the  alternative  thereto,  the  number of  shares  for which the
related option shall be exercisable shall be reduced by the number of shares for
which the right  shall  have been  exercised.  The  number of shares for which a
right  shall be  exercisable  shall be reduced  upon any  exercise  of a related
option by the number of shares for which such option shall have been exercised.

     Any right shall be  exercisable  upon such addition terms and conditions as
may from time to time be prescribed by the Board.

      A right shall entitle the holder upon exercise thereof to receive from the
Bank,  upon a  written  request  filed  with  the  Secretary  of the Bank at its
principal  offices,  a number  of shares  (with or  without  restrictions  as to
substantial  risk  of  forfeiture  and  transferability,  as  determined  by the
Board in its sole  discretion),  an amount of cash,  or any  combination  of
shares and cash, as specified in the request (but subject to the approval of the
Board,  in its sole discretion,  at any time up to and including the time of
payment, as to the making of any cash payment),  having an aggregate fair market
value equal to the product of (a) the excess of the fair  market  value,  on the
day of such request, of one share over the exercise price per share specified in
such right or its  related  option,  multiplied  by (b) the number of shares for
which such right shall be exercised;  provided,  however, that the Board, in
its discretion,  may impose a maximum limitation on the amount of cash, the fair
market value of shares,  or a  combination  thereof,  which may be received by a
holder upon exercise of a right.

      Any  election  by a holder of a right to  receive  cash in full or partial
settlement of such right,  and any exercise of such right for cash,  may be made
only by a request  filed with the  Corporate  Secretary  of the Bank  during the
period beginning on the third business day following the date of the release for
publication  by the Bank of quarterly or annual  summary  statements of earnings
and ending on the twelfth  business day following such date.  Within thirty (30)
days  after the  receipt  by the Bank of a request  to  receive  cash in full or
partial  settlement  of a right or to  exercise  such  right for cash,  the Bank
shall, in its sole discretion,  either consent to or disapprove,  in whole or in
part, such request.

     If the Board  disapproves  in whole or in part any election by a holder
to receive  cash in full or partial  settlement  of a right or to exercise  such
right  for cash,  such  disapproval  shall not  affect  such  holder's  right to
exercise  such right at a later  date,  to the extent  that such right  shall be
otherwise exercisable, or to elect the form of payment at a later date, provided
that an election to receive  cash upon such later  exercise  shall be subject to
the approval of the Board.  Additionally,  such disapproval shall not affect
such holder's  right to exercise any related  option or options  granted to such
holder under the Plan.

     A holder of a right  shall not be  entitled  to request or receive  cash in
full or partial  payment  of such  right  during the first six (6) months of its
term; provided,  however, that such prohibition shall not apply if the holder of
such right is not subject to the reporting  requirements of Section 16(a) of the
Exchange Act.

<PAGE>

     For all purposes of this Paragraph 7, the fair market value of shares shall
be determined in accordance with the principles set forth in Paragraph 6 hereof.

8.      Exercisability and Duration of Options.

         8.1 Determination of Board; Acceleration. Each option granted under
the Plan shall be exercisable  at such time or times,  or upon the occurrence of
such event or events, and in such amounts, as the Board shall specify in the
agreement  evidencing the option.  Subsequent to the grant of an option which is
not immediately  exercisable in full, the Board, at any time before complete
termination  of such  option,  may  accelerate  the time or times at which  such
option may be exercised in whole or in part.

         8.2      Automatic  Termination.  The unexercised portion of any option
granted  under the Plan shall  automatically  and without  notice  terminate and
become null and void at the time of the earliest to occur of the following:

                  (a)      The expiration of ten years from the date on which
such option was granted;

            (b)  The expiration of three months from the date of
     termination of the Participant's employment by the Bank or service as a
     director or advisory director with the Bank unless a longer period is
     provided by the Board (other than a termination described in subparagraph
     (c) or (d) below); provided, that if the Participant shall die during such
     three-month period, the time of termination of the unexercised portion of
     any such option shall be determined under the provisions of subparagraph
     (c) below;

              (c) The  expiration  of six months  following  the issuance of
     letters  testamentary  or  letters of  administration  to the  executor  or
     administrator of a deceased Participant, if the Participant's death occurs
     either during his employment by the Bank or service as a director or
     advisory director or during the three-month  period following the date of
     termination of such employment or service as a director or advisory
     director (other than a termination described in subparagraph (d) below),
     but in no event later than one year after the Participant's death;

               (d) The  termination  of the  Participant's  employment by the
     Bank if such termination  constitutes or is attributable to a breach by the
     Participant  of an employment or consulting  agreement with the Bank or any
     of its  subsidiaries,  or if the  Participant is discharged from employment
     or service as a director or advisory director or his or her services are
     terminated for cause or if the Participants voluntarily terminates his or
     her employment or service as a director or advisory director; or

             (e) The expiration of such period of time or the occurrence of
     such event as the Board in its discretion may provide upon the granting
     thereof.

            The  Board  or the  board of  directors  shall  have  the  right to
     determine what constitutes  cause for discharge or termination of services,
     whether  the  Participant  has  been  discharged  or his  or  her  services
     terminated  for  cause and the date of such  discharge  or  termination  of
     services, and such determination of the Board or the board of directors
     shall be final and conclusive.

<PAGE>

 9.  Exercise of Options.  Options  granted under the Plan shall be exercised by
     the Participant (or by his or her executors or administrators,  as provided
     in Paragraph 10 hereof) as to all or part of the shares covered thereby, by
     the giving of written notice of exercise to the Bank, specifying the number
     of shares to be purchased accompanied by payment of the full purchase price
     for the shares being  purchased.  Payment of such  purchase  price shall be
     made  (a) by check  payable  to the  Bank,  (b)  with  the  consent  of the
     Board,  by  delivery  of shares of Common  Stock  already  owned by the
     Participant  for at least six months (which may include shares  received as
     the result of a prior  exercise of an option)  having a fair  market  value
     (determined  as of the date such option is exercised)  equal to all or part
     of the aggregate  purchase price, (c) with the consent of the Board and
     at the election of the  Participant,  by withholding from those shares that
     would  otherwise be obtained upon exercise of the option a number of shares
     having a fair  market  value  equal to the option  exercise  price,  (d) in
     accordance with a "cashless  exercise" program established by the Board
     in its sole  discretion  under which if so instructed  by the  Participant,
     shares may be issued  directly to the  Participant's  broker or dealer upon
     receipt of the  purchase  price in cash from the broker or dealer, (e) by
     any  combination  of (a),  (b), (c) or (d) above or (f) by other means that
     the Board deems  appropriate.  Such notice of exercise,  accompanied by
     such  payment,  shall be  delivered to the Bank at its  principal  business
     office or such other office as the  Board may from time to time direct,
     and shall be in such form,  containing such further  provisions  consistent
     with the  provisions  of the Plan,  as the  Board may from time to time
     prescribe.  The date of exercise shall be the date of the Bank's receipt of
     such notice.  The Bank shall effect the transfer of the shares so purchased
     to the Participant (or such other person  exercising the option pursuant to
     Paragraph 10 hereof) as soon as practicable. No Participant or other person
     exercising an option shall have any of the rights of a  stockholder  of the
     Bank with  respect to shares  subject to an option  granted  under the Plan
     until due  exercise and full  payment has been made as provided  above.  No
     adjustment  shall be made for cash  dividends or other rights for which the
     record date is prior to the date of such due exercise and full payment.  In
     no event may any option granted  hereunder be exercised for a fraction of a
     share.

 10. Non-Transferability  of Options and Stock  Appreciation  Rights.  Except as
     provided  herein,  no option granted under the Plan or any right  evidenced
     thereby shall be transferable  by the Participant  other than by will or by
     the laws of  descent  and  distribution,  and an option  may be  exercised,
     during  the  lifetime  of  a   Participant,   only  by  such   Participant.
     Notwithstanding the preceding sentence: (a) in the event of a Participant's
     death during his or her  employment  by the Bank or his or her service as a
     director or advisory director of the Bank, its parent, if any, or any of
     its subsidiaries, or during the  three-month period following the date of
     termination of such employment, his or her options shall thereafter be
     exercisable,  during the period specified in Paragraph  8.2(c) hereof, by
     his or her executors or administrators; and (b) the Participant, with the
     approval of the Board, may transfer his or her options (other than
     incentive stock options) for no  consideration to or for the benefit of the
     Participant's spouse, parents, children (including stepchildren or adoptive
     children), grandchildren or siblings, or to a trust for the benefit of any
     of such persons.

 11.     Restricted  Stock.  Participants may be granted awards of restricted
     stock under the Plan,  subject to the  applicable  provisions  of the Plan,
     including the following terms and  conditions,  and to such other terms and
     conditions not inconsistent therewith, as the Board shall determine:
<PAGE>

                  (a)      Awards of restricted stock may be in addition to or
     in lieu of option grants;

                  (b) During a period set by,  and/or  until the  attainment  of
     particular  performance  goals  based  upon  criteria  established  by  the
     Board at the time of each award of restricted  stock (the  "restriction
     period"), the Participant shall not be permitted to sell, transfer,  pledge
     or otherwise  encumber  the shares of  restricted  stock;  except that such
     shares may be used,  if the Board  permits,  to pay the option price of
     any option granted under the Plan; provided, that an equal number of shares
     delivered to the  Participant  upon  exercise of the option shall carry the
     same restrictions as the shares of restricted stock so used;

                  (c)  If  so  provided  by  the Board, the  applicable
     restriction  period  shall  expire,  and shares of  restricted  stock shall
     become  free of all  restrictions  if (i) the  Participant  dies,  (ii) the
     Participant's employment or service terminates by reason of permanent
     disability, as determined by the Board, (iii) the recipient retires, or
     (iv) a "Change in Control" of the Bank occurs (as defined in Paragraph 16
     hereof).  The Board may require medical evidence of permanent disability,
     including medical examinations by physicians selected  by it.  If the Board
     determines that any such recipient is not permanently disabled, the
     restricted stock held by such recipient shall be forfeited and revert to
     the Bank;

                  (d) Unless and to the extent otherwise  provided in accordance
     with Paragraph 11(c) hereof,  shares of restricted stock shall be forfeited
     and revert to the Bank upon the  Participant's  termination  of  employment
     during the restriction period,  except to the extent the Board,  in its
     sole discretion, finds that such forfeiture is not in the best interests of
     the Bank and,  therefore,  waives  all or part of the  application  of this
     provision to the restricted stock held by such Participant;

                  (e)  Stock   certificates   for  restricted   stock  shall  be
     registered  in the  name of the  Participant  but  shall  be  appropriately
     legended and returned to the Bank by the Participant, together with a stock
     power,  endorsed  in blank by the  Participant.  The  Participant  shall be
     entitled  to vote shares of  restricted  stock and shall be entitled to all
     dividends paid thereon, except that dividends paid in Common Stock or other
     property  shall  be  subject  to the  same  restrictions  as  apply  to the
     restricted stock with respect to which they are paid; and

                  (f)  Restricted  stock  shall  become  free  of the  foregoing
     restrictions upon expiration of the applicable  restriction  period and the
     Bank shall then deliver  certificates  evidencing  such Common Stock to the
     recipient.

 12. Deferred Stock Units.  Participants  may be granted units  representing the
     right to receive shares of Common Stock at the end of a specified  deferral
     period  ("deferred stock units"),  subject to applicable  provisions of the
     Plan, including the following terms and conditions, and to such other terms
     and  conditions  not  inconsistent   therewith,   as  the  Board  shall
     determine:

<PAGE>

         (a)  Deferred  stock  units shall be  exercisable  for shares of Common
Stock after the period and upon the terms set by the  Board.  If so provided
by the  Board,  the  applicable  deferral  period  shall expire when (i) the
Participant  dies,  (ii) the  Participant's  employment or service terminates by
reason of permanent  disability,  as  determined  by the  Board,  (iii) the
recipient retires or (iv) a "Change  in  Control"  of the Bank  occurs  (as
defined  in Paragraph 16 hereof). The Board may require  medical evidence of
permanent disability,  including medical examinations by physicians selected by
it. If the Board determines that any such recipient is not permanently disabled,
the deferred stock units held by such recipient shall be forfeited and revert to
the Bank.

         (b) Unless and to the extent  otherwise  provided  in  accordance  with
Paragraph 12(a),  deferred stock units shall be forfeited and revert to the Bank
upon the  Participant's termination of employment or service during the deferral
period, except to the  extent the  Board,  in its sole  discretion, finds
that such forfeiture is not in the best interest of the Bank and, therefore,
waives all or part of the  application  of this  provision to the deferred stock
units held by such Participant; and

         (c) Unless otherwise  determined by the Board at the date of grant,
dividends  on the  specified  number of shares of Common  Stock  covered  by the
deferred  stock units will be paid at the dividend  payment date in cash, or the
payment of such dividends  shall be deferred  and/or the amount or value thereof
automatically  reinvested in additional  deferred stock units,  as the Board
shall determine or permit the Participant to elect. Unless otherwise  determined
by the Board,  shares of Common Stock distributed in connection with a stock
split or stock dividend, and other property distributed as a dividend,  shall be
subject to restrictions,  risk of forfeiture and/or deferral to the same extent
as the  deferred  stock units with  respect to which such Common  Stock or other
property has been distributed.

 13.     Reload  Options.  At the time an option  (the  "original  option")  is
granted,  the Board may also authorize the grant of a "reload option," which
shall be subject to the following terms:

         (a) The number of shares of Common Stock  subject to the reload  option
shall be the  number  of  shares,  if any,  used by the  Participant  to pay the
purchase price upon exercise of the original option,  plus the number of shares,
if any, delivered by the Participant to satisfy the tax withholding  requirement
relating to such exercise;

         (b)      The reload option shall be a nonqualified stock option;

         (c) The grant of the reload option shall be effective  upon the date of
exercise of the original option,  and the term of the reload option shall be the
period,  if any,  remaining  from that date to the date upon which the  original
option would have expired;

         (d) The grant of the reload  option shall not be  effective  if, on the
date of exercise of the original option,  the Participant is not employed by the
Bank; and

         (e)      Except as specified in (a) through (d) above, the terms of the
reload option shall be as  prescribed in the preceding  Paragraphs of this Plan.

<PAGE>

14. Withholding Tax.

         (a) Whenever  under the Plan shares of stock are to be  delivered  upon
exercise of a  nonqualified  stock option or deferred stock unit, the Bank shall
be entitled to require as a condition of delivery that the Participant remit or,
in appropriate  cases,  agree to remit when due an amount  sufficient to satisfy
all federal,  state and local withholding tax requirements  relating thereto. At
the option of the Bank,  such  amount may be  remitted  by check  payable to the
Bank, in shares of Common Stock (which may include shares received as the result
of a prior  exercise  of an  option  or  deferred  stock  unit),  by the  Bank's
withholding  of shares of Common Stock  issuable upon the exercise of any option
or stock  appreciation  right or  pursuant to any award of  restricted  stock or
deferred stock unit pursuant to the Plan, or any combination  thereof.  Whenever
an amount shall become payable to a Participant in connection  with the exercise
of a stock appreciation  right, the Bank shall be entitled to withhold therefrom
an amount  sufficient to satisfy all federal,  state and local  withholding  tax
requirements relating to such amount.

         (b)  Recipients of restricted  stock,  pursuant to Paragraph 11 hereof,
shall be  required  to remit to the Bank an amount  sufficient  to  satisfy  all
applicable tax withholding  requirements upon expiration of restriction  periods
or upon such  earlier  date(s) as may be elected  pursuant  to Section 83 of the
Code, unless other arrangements  satisfactory to the Bank have been made for the
withholding of applicable taxes. At the option of the Bank, the  amount referred
to in the  preceding  sentence may be remitted by check  payable to the Bank, in
shares of Common Stock (which may include shares of Common Stock received as the
result of a prior exercise of an option), by the Bank's withholding of shares of
Common  Stock  issuable  upon the  exercise of any option or stock  appreciation
right or  pursuant  to any award of  restricted  stock or  deferred  stock  unit
pursuant to the Plan or any combination thereof.

 15.  Restrictions  on Delivery and Sale of Shares.  Each option and  restricted
stock award and  deferred  stock unit  granted  under the Plan is subject to the
condition that if at any time the Board, in its discretion,  shall determine
that the listing,  registration or  qualification  of the shares covered by such
option or award upon any  securities  exchange or under any state or federal law
is necessary or desirable as a condition of or in  connection  with the granting
of such option or award or the  purchase or delivery of shares  thereunder,  the
delivery  of any or all  shares  pursuant  to  exercise  of the  option  or upon
expiration  of the  restriction  or deferral  period may be withheld  unless and
until such listing,  registration or qualification shall have been effected. The
Board may require,  as a condition of exercise of any option,  or grant of a
restricted stock award or deferred stock unit that the Participant represent, in
writing, that the shares received are being acquired for investment and not with
a view to distribution  and agree that the shares will not be disposed of except
pursuant  to an  effective  registration  statement,  unless the Bank shall have
received an opinion of counsel satisfactory to the Bank that such disposition is
exempt from such requirement under the Securities Act of 1933. The Board may
require that the sale or other  disposition of any shares acquired upon exercise
of an option  hereunder or upon  expiration of a restriction or deferral  period
shall be subject to a right of first  refusal in favor of the Bank,  which right
shall permit the Bank to repurchase  such shares from the  Participant or his or
her  representative  prior to  their  sale or other  disposition  at their  then
current fair market value in accordance  with such terms and conditions as shall
be specified in the  agreement  evidencing  the grant of the option,  restricted
stock  award or  deferred  stock  unit.  The Bank may  endorse  on  certificates
representing  shares  issued upon the exercise of an option or  expiration  of a
restriction  or  deferral  period,  such  legends  referring  to  the  foregoing
representations  or restrictions or any other applicable  restrictions on resale
as the Bank, in its discretion, shall deem appropriate.

<PAGE>

 16.     Change in Control.

         (a) In the event of a Change in Control of the Bank, as defined  below,
the  Board  may, in its sole  discretion,  provide that any of the following
applicable  actions be taken as a result, or in anticipation,  of any such event
to assure fair and equitable treatment of Participants:

                  (i) accelerate the exercisability of any outstanding  options,
or the expiration of restriction  periods of restricted  stock or the expiration
of deferral periods of deferred stock units awarded pursuant to this Plan;

                  (ii) offer to purchase  any  outstanding  options or shares of
restricted  stock or deferred  stock  units made  pursuant to this Plan from the
holder for its equivalent cash value, as determined by the Board,  as of the
date of the Change in Control; or

                 (iii) make adjustments or modifications to outstanding
options,  restricted  stock  or  deferred  stock  units as the  Board deems
appropriate to maintain and protect the rights and interests of the Participants
following such Change in Control.

     Any such action  approved by the Board shall be conclusive and binding on
the Bank, its subsidiaries and all Partitipants.

         (b) In no event,  however, may (i) any option be exercised prior to the
expiration of six (6) months from the date of grant (unless  otherwise  provided
in the agreement  evidencing the option),  or (ii) any option be exercised after
ten (10) years from the date it was granted.

         (c) To the extent not  otherwise  defined in this Plan,  the  following
terms used in this Paragraph 16 shall have the following meanings:

                  "Affiliate"  means any other corporation or other entity which
controls,  is controlled,  directly or  indirectly,  by, or under common control
with, the Bank and which the Board designates as an "Affiliate" for purposes
of the Plan.

                  "Associate"   of  a  Person  means  (a)  any   corporation  or
organization  of which such  Person is an officer or partner or is,  directly or
indirectly,  the  Beneficial  Owner  of  10% or  more  of any  class  of  equity
securities, (b) any trust or other estate in which such Person has a substantial
beneficial interest or as to which such Person serves as trustee or in a similar
fiduciary  capacity  and (c) any  relative  or  spouse  of such  Person,  or any
relative  of such  spouse,  who has the  same  home as such  Person  or who is a
director or officer of such Person or any of its parents or subsidiaries.

<PAGE>

                  "Beneficial  Owner" has the meaning  ascribed  thereto in Rule
13d-3 under the Exchange Act, except that, in any case, a Person shall be deemed
the  Beneficial  Owner of any  securities owned,  directly or indirectly, by the
Affiliates and Associates of such Person.

                  "Change  in  Control"  means  (a) a  majority  of the board of
directors ceases to consist of Continuing Directors;  (b) any Person becomes the
Beneficial  Owner  of 25% or more of the  outstanding  voting  power of the Bank
unless such  acquisition is approved by a majority of the Continuing  Directors;
(c) the  stockholders  of the Bank approve an agreement to merge or  consolidate
into any other  entity,  unless  such merger or  consolidation  is approved by a
majority  of the  Continuing  Directors;  or (d) the  stockholders  of the  Bank
approve an agreement to dispose of all or substantially all of the assets of the
Bank,  unless such  disposition  is  approved  by a majority  of the  Continuing
Directors.

                  "Continuing  Director"  means  any  member  of  the  board  of
directors  who is a member  on the  effective  date of the Plan as set  forth in
Paragraph 21 hereof or who is elected to the board of directors  after such date
upon the  recommendation  or with the  approval of a majority of the  Continuing
Directors at the time of such recommendation or approval.

             "Person" means an individual, a corporation, a partnership, an
association, a joint stock company, a trust, any unincorporated organization or
a government or a political subdivision thereof or any other entity.

 17. Right to Terminate Employment. Nothing in the Plan or in any option granted
under the Plan shall  confer  upon any  Participant  the right to continue as an
employee of the Bank or affect the right of the Bank or any of its  subsidiaries
to terminate the Participant's employment at any time, subject,  however, to the
provisions of any agreement of employment  between the Participant and the Bank,
its parent, if any, or any of its subsidiaries.

 18.  Transfer or Leave of  Absence.  For  purposes of this Plan,  neither (i) a
transfer of an employee from the Bank to a subsidiary or other  affiliate of the
Bank, or vice versa, or from one subsidiary or affiliate of the Bank to another,
nor (ii) a duly  authorized  leave of absence,  shall be deemed a termination of
employment.

 19. Adjustment  Provisions;  Effect of Certain Transactions.  If there shall be
any  change in the  Common  Stock of the Bank,  through  merger,  consolidation,
reorganization,  recapitalization,  stock dividend,  stock split,  reverse stock
split, split up, spinoff, combination of shares, exchange of shares, dividend in
kind or other like change in capital  structure or  distribution to shareholders
of the Bank (other than normal cash dividends),  in order to prevent dilution or
enlargement  of  participants'  rights  under the Plan,  the  Board  (or the
counterpart  Board of any entity assuming the obligations of the Plan) shall
adjust, in an equitable manner, the number and kind of shares that may be issued
under the Plan, the number and kind of shares subject to outstanding options and
rights,  the consideration to be received upon exercise of options or in respect
of rights,  the exercise  price  applicable to  outstanding  options and rights,
and/or  the fair  market  value of the  shares  and other  value  determinations
applicable to outstanding options and rights.  Appropriate  adjustments may also
be made by the Board (or the  counterpart  Board of any entity  assuming
the  obligations  of the Plan) in the terms of any options and rights  under the
Plan to reflect such changes or  distributions  and to modify any other terms of
outstanding options and rights on an equitable basis. In addition, the Board
(or the  counterpart Board of any entity  assuming the  obligations  of the
Plan) is authorized to make  adjustments to the terms and conditions of, and the
criteria   included  in,  options  and  rights  in  recognition  of  unusual  or
nonrecurring events affecting the Bank or the financial  statements of the Bank,
or in  response  to changes  in  applicable  laws,  regulations or accounting
principles.

<PAGE>

 20.     Expiration and Termination of the Plan.

         20.1 General. Options and awards of restricted stock and deferred stock
units  may be  granted  under  the Plan at any time and from  time to time on or
prior to the tenth anniversary of the effective date of the Plan as set forth in
Paragraph 21 hereof (the "Expiration  Date"), on which date the Plan will expire
except as to  options  then  outstanding  and stock  subject to  restriction  or
deferral periods under the Plan. Such outstanding options shall remain in effect
until they have been  exercised,  terminated  or have expired;  such  restricted
stock shall remain subject to restriction  until  expiration of the  restriction
period in  accordance  with  Paragraph 11 hereof and such  deferred  stock units
shall remain  subject to deferral  until  expiration  of the deferral  period in
accordance with Paragraph 12. The Plan may be terminated, modified or amended by
the board of directors at any time on or prior to the  Expiration  Date, except
with respect to any options then outstanding under the Plan; provided,  however,
that the approval of the Bank's  stockholders will be required for any amendment
which (i) changes the class of employees  eligible  for grants,  as specified in
Paragraph 4, (ii) increases the maximum  number of shares subject to grants,  as
specified  in  Paragraph 3 hereof  (unless made  pursuant to the  provisions  of
Paragraph 19 hereof) or (iii)  materially  increases  the  benefits  accruing to
participants  under the Plan, within the meaning of Rule 16b-3 promulgated under
the Exchange Act.

         20.2 Modifications. No modification, extension, renewal or other change
in any option or award of restricted  stock or deferred stock unit granted under
the Plan  shall be made after  grant,  unless  the same is  consistent  with the
provisions of the Plan and does not  disqualify an incentive  stock option under
the provisions of Section 422 of the Code.

 21.     Effective  Date of Plan.  The Plan shall become  effective on March 21,
2000, the date of its adoption by the board of directors,  subject,  however, to
the  approval  of the Plan by the Bank's  stockholders  within 12 months of such
adoption.

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