Document:

EXHIBIT 10.4

                              AGREEMENT TO PURCHASE

                          ASSETS AND ASSUME LIABILITIES

                                 by and between

                  FIDELITY FEDERAL BANK, A FEDERAL SAVINGS BANK

                                       and

               PEOPLE'S BANK OF CALIFORNIA, A FEDERAL SAVINGS BANK

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                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

RECITALS                   ....................................................1

AGREEMENT                  ....................................................1

Article 1                  DEFINITIONS.........................................1

         1.1      Definitions..................................................1

Article 2                  TERMS OF PURCHASE AND ASSUMPTION....................4

         2.1      Purchase and Sale of Assets..................................4

         2.2      Purchase Price...............................................4

         2.3      Assumption of Liabilities....................................5

Article 3                  INSPECTION OF ASSETS................................6

         3.1      Inspection of Account Loans and Branch.......................6

         3.2      Personal Property Inventory and Inspection...................6

         3.3      Deposits.....................................................7

         3.4      Other Documents..............................................7

Article 4                  CLOSING.............................................7

         4.1      Closing......................................................7

         4.2      Settlement...................................................8

         4.3      Post-Closing Adjustments.....................................8

         4.4      Deliveries at Closing........................................8

Article 5                  REPRESENTATIONS AND WARRANTIES OF BUYER.............9

         5.1      Organization.................................................9

         5.2      Authority....................................................9

         5.3      Compliance with Other Instruments and Law....................9

         5.4      No Breach....................................................9

         5.5      Litigation...................................................9

         5.6      Governmental Notices.........................................9

         5.7      Regulatory Approvals.........................................9

         5.8      Consents....................................................10

Article 6                  REPRESENTATIONS AND WARRANTIES OF SELLER...........10

         6.1      Organization................................................10

         6.2      Authority...................................................10

         6.3      Compliance with Other Instruments and Law...................10

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         6.4      No Breach...................................................10

         6.5      Litigation..................................................10

         6.6      Title to Assets.............................................10

         6.7      TIN Certification...........................................11

         6.8      Account Loan Enforceability.................................11

         6.9      Safe Deposit Boxes..........................................11

         6.10     Insurance...................................................11

         6.11     Taxes.......................................................11

         6.12     Records.....................................................11

         6.13     Service and Maintenance Contracts...........................11

         6.14     Regulatory Approvals........................................11

         6.15     Consents....................................................11

         6.16     Operation...................................................11

         6.17     Condemnation................................................12

         6.18     Hazardous Substances........................................12

         6.19     Lease.......................................................12

Article 7                  COVENANTS OF BUYER.................................13

         7.1      Assistance in Obtaining Regulatory Approvals................13

         7.2      Performance of Liabilities..................................13

         7.3      Consents and Notices........................................13

         7.4      Further Assurances..........................................13

         7.5      Confidentiality.............................................13

Article 8                  COVENANTS OF SELLER................................14

         8.1      Assistance in Obtaining Regulatory Approvals................14

         8.2      Consents and Notices........................................14

         8.3      Access to Records and Information; Personnel; Customers.....14

         8.4      Conduct of Business Pending Closing.........................14

         8.5      Books and Records...........................................15

         8.6      Insurance Policies..........................................16

         8.7      Further Assurances..........................................16

         8.8      No Encumbrances.............................................16

         8.9      Consents....................................................17

         8.10     Operation of Branch.........................................17

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                                TABLE OF CONTENTS
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         8.11     Repurchase of Certain Account Loans and Deposits............17

         8.12     Service and Maintenance Contracts...........................17

         8.13     Signs.......................................................17

         8.14     Lease.......................................................18

Article 9                  NON-COMPETITION....................................18

         9.1      Solicitation................................................18

         9.2      Non-Competition.............................................18

         9.3      Advertising.................................................18

Article 10                 CONDITIONS TO CLOSING..............................18

         10.1     Conditions to the Obligations of Buyer......................18

         10.2     Conditions to the Obligations of Seller.....................21

Article 11                 TERMINATION........................................22

         11.1     Conditions for Termination..................................22

         11.2     Effect of Termination.......................................22

Article 12                 EMPLOYEES..........................................23

         12.1     Employees...................................................23

         12.2     Employee Benefits...........................................24

Article 13                 OTHER AGREEMENTS...................................24

         13.1     Notices to Depositors.......................................24

         13.2     Safe Deposit Boxes..........................................24

         13.3     Incoming Deposits and Mail..................................25

         13.4     Returned Items..............................................25

         13.5     ACH Items and Wire Transfers................................25

         13.6     Checking Accounts...........................................26

         13.7     Holds.......................................................26

         13.8     Retirement Accounts.........................................26

         13.9     Card Processing.............................................26

         13.10    Data Processing Conversion..................................27

         13.11    Interest Reporting..........................................28

         13.12    Withholding.................................................28

         13.13    Taxpayer Information........................................28

         13.14    Seller's Cooperation........................................29

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                                TABLE OF CONTENTS
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Article 14                 GENERAL PROVISIONS.................................29

         14.1     Survival....................................................29

         14.2     Indemnification.............................................29

         14.3     Broker's Fees...............................................31

         14.4     Publicity and Notices.......................................31

         14.5     Incorporation of Exhibits...................................31

         14.6     Attorneys' Fees.............................................31

         14.7     Sales and Transfer Taxes....................................31

         14.8     Notices.....................................................31

         14.9     Arm's Length Transaction....................................32

         14.10    Successors and Assigns......................................32

         14.11    Third Party Beneficiaries...................................32

         14.12    Governing Law...............................................32

         14.13    Entire Agreement............................................32

         14.14    Headings....................................................33

         14.15    Severability................................................33

         14.16    Waiver......................................................33

         14.17    Number(s)...................................................33

         14.18    Counterparts................................................33

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                          AGREEMENT TO PURCHASE ASSETS
                             AND ASSUME LIABILITIES

         This Agreement to Purchase Assets and Assume Liabilities ("Agreement")
is made and entered into this ____ day of June, 1999 ("Signature Date"), by and
between PEOPLE'S BANK OF CALIFORNIA, a federally chartered savings bank
("People's" or "Buyer") with its home office in Los Angeles, California, and
FIDELITY FEDERAL BANK, A FEDERAL SAVINGS BANK, a federally chartered savings
bank ("Fidelity" or Seller") with its home office in Los Angeles, California.

                                    RECITALS
                                    --------

         A. Buyer desires to acquire certain branch assets and assume certain
liabilities of Seller's branch office located at 6350 Laurel Canyon Boulevard,
Suite #100, North Hollywood, California (the "North Hollywood Branch") which
Seller is authorized to operate, and Seller desires to transfer to Buyer such
assets and liabilities of the North Hollywood Branch, as described in detail
below.

         B. Buyer and Seller propose to apply to the appropriate regulatory
authorities for permission to effect the purchase and sale of the North
Hollywood Branch and for such other requisite regulatory approvals as may be
necessary for the consummation of the transactions contemplated by this
Agreement.

         C. Buyer and Seller wish to consummate the transaction contemplated by
this Agreement in a timely and efficient manner.

                                    AGREEMENT
                                    ---------

         In consideration of the foregoing and the representations, covenants
and agreements set forth in this Agreement, and subject to the conditions set
forth herein, Buyer and Seller (the "Parties") hereto agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

         1.1 DEFINITIONS. As used in this Agreement, the following terms have
the definitions indicated:

         "ACCOUNT LOANS" shall mean (i) all savings account loans secured by
Deposits together with all Accrued Interest thereon, if any, and (ii) all
checking account lines of credit or overdraft checking loan balances related to
the Deposits together with all Accrued Interest thereon, if any, which are
listed on the books and records of the Branch; provided that the term "Account
Loans" shall not include loans more than ninety (90) days past due as of the
Closing Date.

         "ACCRUED INTEREST" means interest on Account Loans and Deposits which
is accrued but unpaid or unposted (as the case may be) through the applicable
date.

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         "ACH ITEMS" means automated clearing house debits and credits,
including, but not limited to, social security payments, federal recurring
payments, and other payments debited and/or credited on a regularly scheduled
basis to or from Deposit accounts pursuant to arrangements between the owner of
the account and a third party directly making the credits or debits.

         "AFFILIATE" of a party means any person, partnership, corporation,
association or other legal entity directly or indirectly controlling, controlled
by or under common control with that party.

         "ASSETS" means the Account Loans, Fixed Assets, Safe Deposit Boxes,
Cash on Hand and Records at the Branch.

         "ATM" means the automated teller machine located at the Branch, which
is a Diebold 1072ix ATM and includes the security system associated therewith.

         "BRANCH" means the North Hollywood Branch.

         "BRANCH LEASE" means the lease entered into as of June 30, 1978, as
amended, between Seller and Aglor Investors, Ltd., a limited partnership, for
the premises commonly known as 6350 Laurel Canyon Boulevard, Suite #100, North
Hollywood, California and more particularly described therein, attached as
Schedule 1.1.

         "BROKERED DEPOSITS" shall mean any brokered deposit as defined in ss.
337.6 of the FDIC Rules and Regulations.

         "BUSINESS DAY" means any Monday, Tuesday, Wednesday, Thursday, or
Friday that is not a federal holiday generally recognized by banks or savings
associations.

         "CASH ON HAND" means all cash in the vault and in the teller drawers at
the Branch on the Closing Date.

         "CLOSING" AND "CLOSING DATE" shall have the meaning set forth in
Section 4.1.

         "CLOSING PAYMENT" shall have the meaning set forth in Section 4.2.

         "DEPOSIT" means any deposit as defined in Section 3(l)(1) of the
Federal Deposit Insurance Act ("FDIA"), as amended, 12 U.S.C. Section
1813(l)(1), maintained at the Branch including, without limitation, the
aggregate balances of all savings accounts with positive balances domiciled at
the Branch, Keogh accounts, "NOW" accounts, other demand instruments, Retirement
Accounts, and all other accounts and deposits, together with Accrued Interest
thereon, if any; provided, that the term "Deposit" shall not include all or any
portion of those balances that are deemed to be (i) public funds; (ii) accounts
relating to contract collections at the Branch;(iii) accounts subject to
escheatment; (iv) Deposits tied to Account Loans which are more than ninety (90)
days past due as of Closing Date; (v) accounts of directors or senior officers
of the Seller; (vi) Brokered Deposits; (vii) deposits specifically tied to a
credit facility (excluding overdraft accounts); and (viii) classes of accounts
which are excluded pursuant to Section 2.3(a) or Section 3.3.

         "DUE DILIGENCE EXPIRATION DATE" shall mean the date which is five (5)
calendar days after the Field-to-Field.

         "EMPLOYEE REIMBURSEMENTS" shall have the meaning set forth in Section
12.1.

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         "EMPLOYEES" means all employees at the Branch at any time from the
Signature Date through the Closing.

         "ENCUMBRANCES" means any and all mortgages, claims, charges, liens,
encumbrances, easements, restrictions, options, pledges, calls, commitments,
security interests, conditional sales agreements, title retention agreements,
leases and other restrictions of any kind whatsoever.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

         "EXCLUDED FIXED ASSETS" shall mean any Fixed Asset which is an ATM
machine or surround, ATM video surveillance cameras, fax machine, xerographic
copier, ATM Oscare device and related instruments, ISC terminals or any other
Fixed Asset withheld by Seller or excluded by Buyer pursuant to Section 3.2.

         "FIELD-TO-FIELD" means the meeting between Seller and Buyer to assess
EDP compatibility, conversion and de-conversion strategies and administrative
and operational issues.

         "FDIC" means the Federal Deposit Insurance Corporation and any
successor thereto.

         "FIXED ASSETS" includes all furniture, fixtures, equipment, Leasehold
Improvements and other tangible personal property owned by Seller, located at
the Branch; except that Fixed Assets does not include the Excluded Fixed Assets.

         "LANDLORD" means Aglor Investors, Ltd., a limited partnership.

         "LEASEHOLD IMPROVEMENTS" means property or an article which has been
attached to or affixed to the Branch by the Seller to facilitate the trade or
business for which the Seller occupies the premises, including, but not limited
to, teller lines, bandit barrier, floor and wall coverings, vault doors and
light fixtures.

         "LIABILITIES" means all liabilities being assumed by Buyer under
Section 2.3.

         "NEGATIVE BALANCE DEPOSIT" shall mean a Deposit which on the applicable
date has a balance of less than zero.

         "NET BOOK VALUE" means the net book value of an asset determined in
accordance with generally accepted accounting principles consistently applied
and as reflected in the books and records of Seller.

         "OTS" means the Office of Thrift Supervision and any successor thereto.

         "PREPAYMENTS" means any expense payments paid in advance by Seller for
which the Closing Date is before the end of the period for which the expense
payment was made including, but not limited to, payments made for utilities,
rent and property taxes.

         "PARTY" means Buyer or Seller, and "Parties" means both Buyer and
Seller.

         "REALTY" means the real property upon which the Branch is located.

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         "RECORDS" means: (i) all open records and original documents, excluding
Seller's transaction documents, located at the Branch or in centralized
servicing areas pertaining to the Account Loans and Deposits which are
reasonably required for the Buyer to conduct business and comply in all material
respects, with all applicable laws, regulations, rules and business practices
with respect to the Account Loans and Deposits acquired from Seller pursuant to
this Agreement; and (ii) all available account history of all accounts related
to Deposits for a period including at least the current year. Records include,
but are not limited to, signature cards, legal files, Safe Deposit Box files,
pending files, all open account agreements, Account Loan agreements, Retirement
Account agreements and computer records. Records shall not include personnel
records for Employees at the Branch.

         "RETIREMENT ACCOUNTS" means individual retirement accounts, including
SEP individual retirement accounts or qualified plans, but does not include
defined benefit retirement plan accounts or self-directed retirement plan
accounts.

         "RETURNED ITEMS" shall have the meaning set forth in Section 13.4.

         "SAFE DEPOSIT BOXES" shall mean all of the safe deposit boxes domiciled
at the Branch, along with the "nests" associated with those boxes.

         "SCHEDULE OF DELINQUENT ACCOUNT LOANS" shall have the meaning set forth
in 10.1(e)(6).

         "WITHHOLDING OBLIGATIONS" shall have the meaning set forth in Section
13.12.

                                   ARTICLE 2

                        TERMS OF PURCHASE AND ASSUMPTION

         2.1 PURCHASE AND SALE OF ASSETS.

                  (a) At the Closing and subject to the terms and conditions set
forth in this Agreement, Seller shall convey, assign and transfer to Buyer and
Buyer shall purchase from Seller all of Seller's right, title and interest in
and to the Assets.

                  (b) ASSOCIATION NAME AND LOGO. Seller is not selling,
assigning, conveying, transferring or delivering, nor shall Buyer acquire any
rights or interest in or to (i) the names of Seller, or any combination or
derivation thereof, or (ii) any logos, service marks or trademarks of Seller or
any advertising materials or slogans or any similar items used before, on or
after the Closing Date by Seller in connection with its business.

         2.2 PURCHASE PRICE. In consideration for the Assets acquired by it
under this Agreement, Buyer shall assume at the Closing the liabilities of
Seller set forth in Section 2.3, and shall pay to Seller at the Closing an
amount computed as follows:

                  (a) The lesser of (i) a sum equal to the Net Book Value of the
Fixed Assets as of the Closing Date or (ii) Two Hundred Thousand Dollars
($200,000); and

                  (b) A sum equal to the Net Book Value of the Safe Deposit
Boxes as of the month end immediately prior to the Closing Date; and

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                  (c) A sum equal to the Net Book Value plus Accrued Interest of
the Account Loans as of the Closing Date; and

                  (d) A sum equal to the Cash on Hand.

         2.3 ASSUMPTION OF LIABILITIES.

                  (a) DEPOSITS. On the Closing Date, subject to the terms and
conditions set forth in this Agreement, Buyer shall (i) assume the liabilities
related to the Deposits accruing after the Closing Date in accordance with the
terms of such Deposits in effect on the Closing Date; (ii) assume Seller's
obligation to its Deposit customers accruing after the Closing Date in
accordance with the terms of such Deposits in effect on the Closing Date; and
(iii) be responsible for modifying the terms of such customer relationships
effective as of the Closing Date as necessary to conform to Buyer's practices.
Buyer's assumption of Deposits pursuant to this Agreement is subject to Buyer's
review at the Branch to determine, among other things, EDP compatibility. The
Deposit review shall occur at the Field-to-Field meeting which will be held no
later than five (5) calendar days after the Signature Date among representatives
of Seller and Buyer. Buyer shall notify Seller in writing of deposit categories
to be excluded from this Agreement based upon such Field-to-Field meeting no
later than five (5) calendar days after the Field-to-Field meeting (the "Due
Diligence Expiration Date").

                  (b) RELATED ASSETS AND OBLIGATIONS. On the Closing Date, Buyer
will assume the obligations of Seller to provide services incidental to the
Deposits including, but not limited to, the provision of Safe Deposit Boxes, as
may be modified to conform to Buyer's practice.

                  (c) REIMBURSEMENT FOR DEPOSITS. On the Closing Date, Seller
shall reimburse Buyer for the assumption by Buyer of the Deposits in an amount
equal to 95% of the Deposits assumed by Buyer pursuant to Section 2.3(a) above.
All amounts are to be calculated as of the Closing Date. The parties agree that
the premium is attributable to (1) favorable interest rates on the Deposits
acquired and (2) the agreements set forth in Article 9. Buyer and Seller agree
that the allocation of the purchase price will be made based on the relative
fair market value of the Assets acquired, as required by Section 1060 of the
Internal Revenue Code of 1986, as amended, and agree to utilize such allocation
for federal income tax purposes. Such allocation will be consistently reflected
by each Party on their federal income tax returns and similar documents,
including but not limited to Internal Revenue Service Form 8594. Neither Party
shall file any document or assert any position that conflicts or is inconsistent
with such allocation, and each Party agrees to inform the other promptly upon
receipt of any communication from (or forwarding any communication to) the
Internal Revenue Service relating to Form 8594. Each Party shall cooperate fully
with the other in filing Form 8594. Buyer shall prepare the Form 8594 and shall
promptly submit it to Seller for approval and to facilitate the consistent
filing of such form by Seller and Buyer.

                  (d) PRORATIONS. The pro rata amount of SAIF premiums
attributable to the Deposits, and paid in advance by Seller, shall be credited
to Seller at the Closing. Additionally, the pro rata amount of any Prepayments
shall be credited to Seller at the Closing.

                  (e) NO OTHER DEBT, OBLIGATIONS OR LIABILITIES ASSUMED. It is
understood and agreed that, except as expressly set forth in this Agreement,
Buyer shall not assume or be liable for any of the debts, obligations or
liabilities of Seller of any kind or nature whatsoever including, but not
limited to, any tax or debt, any insurance premium, any liability for unfair

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labor practices (such as wrongful termination or employment discrimination) or
under the WARN Act, any liability or obligation of Seller arising out of any
threatened or pending litigation, or any liability with respect to personal
injury or property damage claims.

                                    ARTICLE 3

                              INSPECTION OF ASSETS

         3.1 INSPECTION OF ACCOUNT LOANS AND BRANCH.

                  (a) ACCOUNT LOANS. Buyer shall have the right prior to the Due
Diligence Expiration Date to review the Account Loans and Seller shall afford
Buyer reasonable access to the files relating thereto. On or before the Due
Diligence Expiration Date, Buyer shall give written notice to Seller of any
material defect or problems with the Account Loans. If such written notice is
not received on or before the Due Diligence Expiration Date, Buyer shall be
deemed to have approved the Account Loans. Seller shall no later than five (5)
days before the Closing Date remedy any material defects or problems with the
Account Loans identified in such written notice to the satisfaction of Buyer.
Failure to remedy any such material defect to the satisfaction of Buyer before
five (5) days before the Closing Date shall, at Buyer's option, allow Buyer to
exclude such disapproved items from the Assets of the Branch or adjust the
purchase price for such Assets accordingly by mutual agreement of the Parties.

                  (b) BRANCH. Buyer shall inspect the Branch at its expense and
in such manner as is reasonably acceptable to Buyer. On or before the Due
Diligence Expiration Date, Buyer shall give written notice to Seller of any
material defects with respect to repair and maintenance of the Branch. If such
written notice is not received on or before the Due Diligence Expiration Date,
Buyer shall be deemed to have approved the condition of the Branch. For material
defects with respect to repair and maintenance of the Branch with respect to
which the Seller is obligated under the Branch Lease to repair or maintain,
Seller will perform such repairs and/or maintenance to the satisfaction of Buyer
no later than (5) days before the Closing Date, provided, however, Seller shall
not be required to install new or relocate existing Leasehold Improvements nor
shall such repairs and/or maintenance be required to include cosmetic or
aesthetic repairs and/or maintenance. Failure to perform such repairs and/or
maintenance, pursuant to the previous sentence before five (5) days before the
Closing Date shall entitle Buyer to terminate this Agreement pursuant to Section
11.1(g) hereof, or, at Buyer's option, the Agreement shall not be terminated but
the purchase price for the Assets shall be adjusted accordingly by mutual
agreement of the Parties. For material defects with respect to repair and
maintenance of the Branch for which the Seller is not obligated under the Branch
Lease to repair or maintain, Seller will use commercially reasonable efforts to
have the Landlord perform such repairs and/or maintenance to the satisfaction of
Buyer no later than five (5) days before the Closing Date.

         3.2 PERSONAL PROPERTY INVENTORY AND INSPECTION.

         Seller has delivered to Buyer a complete schedule of the Fixed Assets
(which includes for purposes of this Section 3.2, the Excluded Fixed Assets)
relating to the Branch, which schedule (i) identifies each item of Fixed Assets
with reasonable particularity, giving the Net Book Value of such item on
Seller's books and describing any Encumbrance thereon, (ii) identifies each item
of such Fixed Assets leased to or otherwise owned by Seller and (iii) identifies
those assets which Seller considers to be of value only to Seller. Buyer and its
agents and representatives shall be entitled to conduct one or more walk through

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inspections of the Branch within the fifteen (15) day period after the Signature
Date. In the event that any of such property as reported on the schedule is
missing, malfunctioning or in a significantly deteriorated condition (not
including deterioration due to normal wear and tear which does not render the
asset nonusable), or in Buyer's opinion is not reasonably useful in Buyer's
operation of the Branch, Buyer may elect to exclude such property from the
transfer under this Agreement; provided that Buyer may not exclude the Leasehold
Improvements at the Branch except as otherwise provided in Section 10.1(f)
below. In addition, Seller may, upon the written consent of Buyer, exclude the
listed assets which are of value only to Seller, and any such excluded assets
shall be excluded from the Fixed Assets of the Branch to be transferred pursuant
to this Agreement. At the Closing, Seller shall deliver to Buyer an updated
schedule with respect to the Branch of Fixed Assets (exclusive of any property
excluded from the Fixed Assets pursuant to this Section 3.2 or Section 10.1(f))
which schedule Seller represents and warrants will be an accurate schedule of
the Fixed Assets of the Branch as of the Closing Date. Seller hereby agrees that
the schedule to be delivered at the Closing shall be substantially the same as
the schedule delivered by Seller pursuant to the first sentence of this Section
3.2 (less any property excluded from the Fixed Assets pursuant to this Section
3.2 or Section 10.1(f) and any property added to the Fixed Assets and/or the
Leasehold Improvements in compliance with Section 8.4(f)).

         3.3 DEPOSITS. Seller shall provide to Buyer, within five (5) days after
the Signature Date, a list of all Deposits of the Branch which are subject to
any Encumbrances. Within five (5) calendar days after Buyer's receipt of such
list Buyer will notify Seller of any encumbered Deposits which Buyer elects to
exclude from the Deposits of the Branch transferred pursuant to this Agreement.

         3.4 OTHER DOCUMENTS.

                  (a) Seller shall provide to Buyer, within five (5) days after
the Signature Date, copies of the following in its possession or under its
control relating to the Branch:

                           (1) any and all leases, service and maintenance
contracts or other contracts or agreements relating to the Branch or the Fixed
Assets to which Seller is a party, or by which the Branch or Fixed Assets are
bound; and

                           (2) all notices regarding the Branch, or the Assets
or the Deposits, with respect to violation of any statutes, rules or regulations
of government agencies or violation of any easements, covenants, conditions or
restrictions affecting the Assets, the Deposits or the real property relating to
Branch.

                           (b) Seller shall deliver to Buyer within 5 days after
written request, all other documents and materials reasonably requested by the
Buyer related to the Branch excluding examination and employment records.

                                    ARTICLE 4

                                     CLOSING

         4.1 CLOSING. The closing of the transactions contemplated by this
Agreement ("Closing") shall take place on July 23, 1999, or at such other time
and date as the Parties may fix in writing, at such location agreed to by the
parties, if all conditions set forth in Article 10 have been satisfied or waived
in writing on or before such date. The date the Closing is to be held is
referred to herein as the "Closing Date". The Closing shall be deemed to occur
at 11:59 P.M. Pacific Time on the Closing Date.

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<PAGE>

         4.2 SETTLEMENT. The net amount of cash to be paid to Buyer by Seller
pursuant to Section 2.3(c) less the amount owed Seller by Buyer pursuant to
Section 2.2 and any Employee Reimbursements shall be netted with the amount due
the appropriate party under Section 2.3(d) to determine the closing payment due
Buyer from Seller as of the Closing (the "Closing Payment"). Because the parties
acknowledge that certain amounts to be paid may not be finally determinable
until after the Closing Date, the Closing Payment will be paid as follows:

                  (a) On the Closing Date, Seller will pay to Buyer by wire
transfer of immediately available funds no later than 12:00 noon on the Closing
Date to an account designated by Buyer, the Closing Payment (such Closing
Payment to be estimated based on account balances as of the close of business on
the third Business Day immediately prior to the Closing Date); and

                  (b) On the first Business Day after the Closing, Seller shall
provide Buyer with a closing settlement statement of the Closing Payment
calculated pursuant to this Section 4.2 to accurately reflect the Deposits, Net
Book Value for each Fixed Asset, the Net Book Value plus Accrued Interest of the
Account Loans, Cash on Hand and Employee Reimbursements, all as of the Closing
Date relating to the Branch. Buyer or Seller, as appropriate, shall, on such
date, pay to the other party any amount payable (based upon the difference
between the Closing Payment calculated pursuant to subparagraph (a) above and
calculated pursuant to this subparagraph) by wire transfer in immediately
available funds to an account designated by the receiving party together with
interest from the Closing Date to the date of payment in full at the overnight
Federal Funds rate in effect for each such day, as published in the Wall Street
Journal; provided, however, that if such payment is made after three (3)
Business Days from the first Business Day after the Closing, then such amount
shall bear interest calculated at the average weighted cost of the Deposits
transferred to Buyer pursuant to this Agreement.

         Unless otherwise specified in this Agreement, any amounts required to
be paid pursuant hereto which are not paid when required to be paid shall bear
interest from the due date until paid in full at the overnight Federal Funds
rate in effect for each day, as published in the Wall Street Journal (it being
understood that on days on which the Wall Street Journal is not published
interest shall accrue at the overnight Federal Funds rate in effect on the most
recent day on which the Wall Street Journal was published); provided, however,
that if such payment is made after three (3) Business Days from the due date,
then such amount shall bear interest calculated at the average weighted cost of
the Deposits transferred to Buyer pursuant to this Agreement. Any payment
pursuant to this Agreement sent after 12:00 noon shall be deemed to have been
made on the next Business Day. All references to hours of the day in this
Agreement shall be references to California time.

         4.3 POST-CLOSING ADJUSTMENTS. Except as otherwise expressly provided in
this Agreement, the Parties shall cooperate in the prompt determination of
adjustments, payments or reimbursements contemplated hereby in connection with
the Closing and within thirty (30) days after the Closing shall settle such
amounts in a manner consistent with the express terms of this Agreement.

         4.4 DELIVERIES AT CLOSING. At the Closing, Seller shall deliver to
Buyer the documents as set forth in Section 10.1(e), and Buyer shall deliver to
Seller the documents as set forth in Section 10.2(e).

                                       8
<PAGE>

                                    ARTICLE 5

                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants to Seller the following:

         5.1 ORGANIZATION. Buyer is a federally chartered savings bank, duly
organized, validly existing and in good standing under the laws of the United
States of America.

         5.2 AUTHORITY. Buyer has the corporate power and authority to execute,
deliver and perform this Agreement and has secured all necessary corporate
consents and approvals in connection with the execution of this Agreement and
the consummation of the transactions contemplated hereby, subject to obtaining
regulatory approval. Upon execution and delivery, this Agreement will constitute
a valid and binding obligation of Buyer enforceable against it in accordance
with its terms, subject to applicable bankruptcy, insolvency, receivership, and
similar laws affecting creditors' rights generally and laws relating to the
rights of creditors of federally insured financial institutions, and, as to
enforceability, to general principles of equity (whether enforcement is sought
in a proceeding in equity or at law).

         5.3 COMPLIANCE WITH OTHER INSTRUMENTS AND LAW. Buyer holds all
licenses, franchises, permits and authorizations necessary for the lawful
conduct of its business, and has not materially violated, and is not in material
violation of, any applicable statutes, laws, ordinances, rules and regulations
of all federal, state and local governmental bodies, agencies and subdivisions
having, asserting or claiming jurisdiction over it or over any part of its
operations.

         5.4 NO BREACH. The execution, delivery and performance of this
Agreement by Buyer and the consummation of the transaction contemplated hereby
will not violate or cause a breach of or constitute a default under any
judgment, injunction, order, decree, material agreement or material instrument
binding upon Buyer. The execution, delivery and performance of this Agreement by
Buyer and the consummation of the transactions contemplated hereby will not
violate its charter or by-laws or, upon receipt of all required regulatory
approvals, any law or regulation applicable to it.

         5.5 LITIGATION. There is no action, suit or proceeding pending against
Buyer or to the knowledge of Buyer threatened against or affecting Buyer before
any court or arbitrator or any governmental body, agency or official which could
materially adversely affect the ability of Buyer to perform its obligations
under this Agreement.

         5.6 GOVERNMENTAL NOTICES. Buyer has no reason to believe that any
federal, state or other governmental agency having jurisdiction to approve or
consent to the transaction would oppose or not grant or issue its consent or
approval, if required, with respect to the transactions contemplated hereby.

         5.7 REGULATORY APPROVALS. The information furnished or to be furnished
by Buyer pursuant to Section 8.1 of this Agreement for the purpose of filing any
regulatory application and/or notice is or will be true and complete as of the
date so furnished.

                                       9
<PAGE>

         5.8 CONSENTS. Other than the approval of the OTS, no consent, approval
or authorization of any governmental authority or agency is required for the
execution, delivery and performance by Buyer of this Agreement and the
consummation by it of any transactions contemplated hereby.

                                    ARTICLE 6

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller represents and warrants to Buyer the following:

         6.1 ORGANIZATION. Seller is a federally chartered savings bank duly
organized, validly existing and in good standing under the laws of the United
States of America.

         6.2 AUTHORITY. Seller has the corporate power and authority to execute,
deliver and perform this Agreement and has secured all necessary corporate
consents and approvals in connection with the execution of this Agreement and
the consummation of the transactions contemplated hereby subject to obtaining
regulatory approval. Upon execution and delivery, this Agreement will constitute
a valid and binding obligation of Seller enforceable against it in accordance
with its terms, subject to applicable bankruptcy, insolvency, receivership, and
similar laws affecting creditors' rights generally, and the rights of creditors
of federally insured financial institutions, and to general principles of equity
(whether enforcement is sought in a proceeding in equity or at law). The
Deposits are insured by the FDIC up to the current applicable maximum limits and
Seller has received no notice of any action pending or threatened by the FDIC
with respect to termination of such insurance. None of the Deposits are Brokered
Deposits.

         6.3 COMPLIANCE WITH OTHER INSTRUMENTS AND LAW. Seller holds all
licenses, franchises, permits and authorizations necessary for the lawful
conduct of its business, and has not materially violated, and is not in material
violation of, any applicable statutes, laws, ordinances, rules and regulations
of all federal, state and local governmental bodies, agencies and subdivisions
having, asserting or claiming jurisdiction over it or over any part of its
operations.

         6.4 NO BREACH. The execution, delivery and performance of this
Agreement by Seller and the consummation of the transaction contemplated hereby
will not violate or cause a breach of or constitute a default under any
judgment, injunction, order, decree, material agreement or material instrument
binding upon Seller. The execution and performance of this Agreement by Seller
and the consummation of the transactions contemplated hereby will not violate
its charter or by-laws or, upon receipt of all required regulatory approvals,
any law or regulation applicable to it.

         6.5 LITIGATION. There is no action, suit or proceeding pending against
Seller or to the knowledge of Seller threatened against or affecting Seller,
before any court or arbitrator or any governmental body, agency or official
which could materially adversely affect the aggregate value of the Deposits or
the Assets, or the ability of Seller to perform its obligations under this
Agreement.

         6.6 TITLE TO ASSETS. Seller is the lawful owner of and has good and
marketable title to the Assets, free and clear of all Encumbrances. Delivery to
Buyer of the instruments of transfer of ownership contemplated by this Agreement
will vest in Buyer all right, title and interest of the Seller in and to the
Assets.

                                       10
<PAGE>

         6.7 TIN CERTIFICATION. Seller has complied in all material respects
with all applicable tax laws relating to obtaining and, if appropriate,
correcting taxpayer identification numbers ("TINs"), including the use of due
diligence and/or reasonable cause as defined for purposes of the Internal
Revenue Code, relating to TIN compliance with respect to holders of the
Deposits.

         6.8 ACCOUNT LOAN ENFORCEABILITY. All Account Loans transferred to Buyer
pursuant to the terms of this Agreement are valid and enforceable subject to
applicable bankruptcy, insolvency, receivership, and similar laws affecting
creditors' rights generally, and, as to enforceability, to general principles of
equity (whether enforcement is sought in a proceeding in equity or at law).

         6.9 SAFE DEPOSIT BOXES. The Safe Deposit Boxes do not hold contents
subject to escheatment as of the Closing Date.

         6.10 INSURANCE. All insurance policies and guaranties maintained by
Seller and applicable to the Branch are in full force and effect and are
described on Schedule 6.10.

         6.11 TAXES. All payroll, withholding, property, excise, sales, use and
transfer taxes imposed by the United States or by any state, municipality,
subdivision or instrumentality of the United States or by any other taxing
authority which are due and payable by Seller prior to the Closing relating to
the Branch as of the Closing Date have been paid in full, or will be so paid
prior to the Closing except to the extent contested by Seller in good faith
through appropriate proceedings.

         6.12 RECORDS. The Records are originals of, or true and correct copies
of records created and maintained during the ordinary course of business by
Seller at the Branch.

         6.13 SERVICE AND MAINTENANCE CONTRACTS. There are no contracts or other
agreements relating to the rendering by third parties of services to the Branch
other than those which shall be delivered to Buyer pursuant to Section 8.12
hereof.

         6.14 REGULATORY APPROVALS. The information furnished or to be furnished
by Seller pursuant to Section 8.1 of this Agreement for the purpose of enabling
Buyer to complete and file an application with the OTS is or will be true and
complete as of the date so furnished.

         6.15 CONSENTS. Other than the approval of the OTS, no consent, approval
or authorization of any governmental authority or agency is required for the
execution, delivery and performance by Seller of this Agreement and the
consummation by it of any transactions contemplated hereby.

         6.16 OPERATION. To the best of Seller's knowledge, the current use and
operation of the Branch are in compliance with and authorized by zoning and
other land use regulations applicable at the time of completion of construction,
including without limitation building, fire, health and safety codes and all
private covenants, restrictions and easements except to the extent that any
non-compliance would not have a material adverse effect on the Branch. To the
best of Seller's knowledge, there are no facts or circumstances existing or
threatened which could have a material adverse effect on the present or future
use of the Branch as a bank office, except as described on Schedule 6.16
attached hereto. Seller has neither received notice nor has knowledge that any

                                       11
<PAGE>

governmental authority thereof considers the Branch to violate or to have
violated any federal, state, county, and local laws and regulations relating to
the environment or any Hazardous Substance as hereinafter defined (collectively,
"Environmental Law"), any fire, zoning, health, building code or other
ordinance, law or regulation or order of any government or any agency, body or
subdivision thereof. Except for (i) the Branch Lease, (ii) agreements referenced
in Section 6.13, and (iii) agreements necessary or desirable to consummate the
transactions contemplated hereby, Seller is not a party to any other material
agreement relating to the Branch except as described on Schedule 6.16 attached
hereto.

         6.17 CONDEMNATION. Seller has no notice of any pending or threatened
proceeding in eminent domain or otherwise, which would affect the Branch, or any
portion thereof. Seller has no knowledge of any existing, proposed or
contemplated plan to widen, modify or realign any street or highway contiguous
to the Branch, except as described on Schedule 6.17 attached hereto. To the best
knowledge of Seller, there are no intended public improvements which will result
in any charge being levied or assessed against, or in the creation of any
Encumbrance upon, the Branch.

         6.18 HAZARDOUS SUBSTANCES. Seller covenants, represents, and warrants
that to its best knowledge: (i) except for the use and storage of office
supplies in the ordinary course of business, no Hazardous Substances are or have
been present, stored, disposed of, or released in or at the Branch in violation
of Environmental Laws, and to Seller's knowledge, except for the use and storage
of office supplies in the ordinary course of business, no Hazardous Substances
are or have been present, stored, disposed of, or released above or below the
Branch in violation of Environmental Laws; (ii) Seller has not received any
communication from a governmental authority that alleges a violation of
Environmental Laws concerning the Branch that has not been cured; (iii) there
has been no claim, action, cause of action, investigation, or communication
asserted by a person alleging potential liability arising out of or based on or
resulting from (x) the presence, storage, disposition or release of any
Hazardous Substance at, above, or below the Branch or (y) the violation or
alleged violation of any Environmental Law concerning the Branch. "Hazardous
Substances" shall mean chemicals, pollutants, contaminants, wastes, and
substances that have been defined as toxic or hazardous by any Environmental
Laws as well as petroleum, petroleum products, asbestos, and polychlorinated
biphenyls ("PCB's").

         6.19 LEASE. Seller is the holder of the tenant's interest under the
Branch Lease and such interest is free and clear of all Encumbrances, except as
listed on Schedule 6.19. The Branch Lease constitutes the sole and entire
agreement between Seller and the landlord thereunder and there are no other
agreements, written or oral, between Seller and such landlord regarding Seller's
rights or obligations with respect to the Branch. Except as listed on Schedule
6.19, Seller has received no notice of default or breach from the landlord under
the Branch Lease that has not been cured, nor, to Seller's knowledge, does there
currently exist any such default or breach, or any facts or circumstances which
with or without notice or the passage of time or both would constitute a default
or breach, on the part of either of the landlord or tenant under the Branch
Lease. The copy of the Branch Lease, attached as Schedule 1.1, is true and
complete. Seller agrees to indemnify and hold Buyer harmless with respect to the
items listed on Schedule 6.19. Seller makes the following representations and
warranties with respect to the Branch Lease: the Branch Lease is dated June 30,
1978; subject to any renewal options the Branch Lease term shall expire on
August 16, 2004; Seller has accepted and is now in possession of subject
premises under the Branch Lease; the current amount of fixed monthly rent,
excluding parking fees and charges, is $6,068.29; the current amount of security
deposit is $0; no other security deposits have been made; Seller is currently
paying the full Branch Lease rental, which has been paid in full as of the date
hereof; no rent under the Branch Lease has been paid for more than 30 days in
advance of its due date.

                                       12
<PAGE>

                                    ARTICLE 7

                               COVENANTS OF BUYER

         7.1 ASSISTANCE IN OBTAINING REGULATORY APPROVALS. Buyer shall be
responsible for the preparation and filing of the application and notices for
approval of the transaction contemplated herein with the OTS. Buyer will be
solely responsible for all fees, expenses and costs incurred with respect to the
preparation and filing of the application and notices with the OTS.
Notwithstanding the previous sentence, each Party shall pay any required filing
fee for any application required to be filed under applicable law by such Party,
and such Parties own attorneys' and consultant fees.

         7.2 PERFORMANCE OF LIABILITIES. Subject to Seller's compliance with
Section 13.6 from and after the Closing, Buyer agrees to pay (to the extent
there are sufficient available funds on deposit) all properly drawn checks,
drafts and negotiable withdrawal orders drawn against a Deposit account
transferred by Seller to Buyer as contemplated herein, timely presented to Buyer
by mail, over its counters or through inclearings and whether drawn on the check
or draft forms provided by Seller for sixty (60) days after the Closing Date.

         7.3 CONSENTS AND NOTICES. Buyer: (i) has used or will use commercially
reasonable efforts to obtain prior to the Closing Date all consents, approvals
or authorizations required to be obtained by it for the consummation of the
transaction contemplated hereby; and (ii) has published or will publish all
notices required by all governmental authorities or agencies required for the
execution, delivery and performance by Buyer of this Agreement and the
consummation by it of any transaction contemplated hereby.

         7.4 FURTHER ASSURANCES. On and after the Closing Date, Buyer shall give
such further assurances to Seller and upon Seller's request shall execute,
acknowledge and deliver all such acknowledgments and other instruments and take
such further action as may be reasonably necessary and appropriate to
effectively relieve and discharge Seller from any obligations remaining under
the Liabilities transferred to Buyer and to confirm the assumption of the
Liabilities by Buyer; provided, however, that Buyer need not incur any material
costs or expenses in connection with the undertakings contained in this sentence
unless such costs or expenses are paid by Seller.

         7.5 CONFIDENTIALITY. Buyer shall hold, and shall cause its respective
directors, officers, employees, agents, consultants and advisors to hold, in
strict confidence, unless disclosure to a bank regulatory authority is necessary
in connection with any regulatory approval or unless compelled to disclose by
judicial or administrative process or, in the written opinion of its counsel, by
other requirements of law or the applicable requirements of any regulatory
agency or relevant stock exchange, all records, books, contracts, instruments,
computer data and other data and information (collectively, "Information")
concerning Seller furnished it by Seller or its representatives pursuant to this
Agreement (except to the extent that such information can be shown to have been
(a) previously known by Buyer on a non-confidential basis, (b) in the public
domain through no fault of Buyer or (c) later lawfully acquired from other
sources by Buyer) and shall not release or disclose such Information to any
other person, except its auditors, attorneys, financial advisors, bankers, other

                                       13
<PAGE>

consultants and advisors and, to the extent permitted above, to bank regulatory
authorities. The obligations of Buyer in the preceding sentence shall terminate
upon the Closing with respect to information relating to the Branch. In the
event of termination of the transactions contemplated in this Agreement prior to
Closing, Buyer shall return to Seller all such records, books, contracts,
instruments, computer data and other data or information and all copies thereof
in its possession or the possession of third parties subject to its direction,
and shall certify in writing as to the foregoing.

                                    ARTICLE 8

                               COVENANTS OF SELLER

         8.1 ASSISTANCE IN OBTAINING REGULATORY APPROVALS. Both Parties will
fully cooperate in the preparation and filing of the regulatory applications
and/or notices required to complete the transactions contemplated herein. Both
Parties will fully cooperate in providing all necessary information, completed
forms and executed documents as may be required to complete all necessary
applications and/or notices.

         8.2 CONSENTS AND NOTICES. Seller: (i) has used or will use commercially
reasonable efforts to obtain prior to the Closing Date all consents, approvals
or authorizations required to be obtained by it for the consummation of the
transactions contemplated hereby; and (ii) has published and issued or will
publish and issue all notices required by all governmental authorities or
agencies required for the execution, delivery and performance by Seller of this
Agreement and the consummation by it of any transactions contemplated hereby.

         8.3 ACCESS TO RECORDS AND INFORMATION; PERSONNEL; CUSTOMERS.

                  (a) Between the Signature Date and the Closing Date, Seller
shall afford to Buyer and its authorized agents and representatives access,
during normal business hours, to the operations, books, records, contracts,
documents and other information of or relating to the Deposits and Assets to be
transferred to Buyer as contemplated herein, and shall provide Buyer a true copy
of the form of all contracts, agreements, and other documents governing or
specifying the terms of the relationship between Seller and its customers at the
Branch. Reasonable notice for access shall be given to Seller by Buyer. The date
and time of such access will then be mutually agreed upon by both Parties.
Seller shall cause its personnel to provide assistance to Buyer in Buyer's
investigation of matters relating to such Deposits, Account Loan, Assets and
Safe Deposit Boxes; provided, however, that Buyer's investigation shall be
conducted in a manner which does not unreasonably interfere with Seller's normal
operations, customers and employee relations; and provided further, that Buyer
and its authorized agents and representatives shall be afforded physical access
to the Branch over the weekend immediately prior to the Closing Date.

                  (b) Buyer, with Seller's prior written consent, may, at its
own expense, upon regulatory approval of the transaction contemplated by this
Agreement, communicate with, and deliver information, brochures, bulletins,
press releases and other communications to depositors of the Branch concerning
such transaction and concerning the business and operations of Buyer.

         8.4 CONDUCT OF BUSINESS PENDING CLOSING. Except as may be required to
obtain the regulatory approvals referred to in Section 8.1 hereof, between the
Signature Date and the Closing Date, and except as may otherwise be required by
a regulatory authority, Seller shall not, without the prior consent of Buyer,
which consent shall not be unreasonably withheld:

                                       14
<PAGE>

                  (a) Cause the Branch to engage or participate in any
transaction that would materially and adversely affect the Deposits, Account
Loans, Assets or Safe Deposit Boxes, except in the ordinary course of business;

                  (b) Cause the Branch to transfer to Seller's other branches
any Deposits to be transferred to Buyer as contemplated herein, except upon the
unsolicited request of a depositor in the ordinary course of business;

                  (c) Undertake any actions which are inconsistent with a
program to use reasonable efforts to maintain good relations with Employees
employed at the Branch, unless such actions are required or permitted by this
Agreement; provided, however that the foregoing shall not be deemed to prohibit
any human resource practices, including without limitation termination and
discipline of Employees, in effect at the Branch on the Signature Date;

                  (d) Increase or agree to increase the salary, remuneration or
compensation of persons employed at the Branch other than in accordance with
Seller's customary policies and/or bank-wide changes, or pay or agree to pay any
bonus not committed or contemplated prior to the date of this Agreement to any
such Employees other than regular bonuses granted based on historical practice
or, as provided for in this Agreement;

                  (e) Enter into any commitment, agreement, understanding or
other arrangement to dispose of the Assets and Liabilities to be transferred to
Buyer as contemplated herein, other than pursuant to the terms of this
Agreement;

                  (f) Invest in any Fixed Assets of the Branch, except for
commitments made on or before the Signature Date and disclosed to Buyer in
writing and for replacements of furniture, furnishings and equipment and normal
maintenance and refurbishing purchased or made in the ordinary course of
business;

                  (g) Offer rates or terms on accounts at the Branch below or
more restrictive than, or above the average rate offered by it on the same type
of account at its other offices;

                  (h) Cause or permit the Branch to transfer to Seller's other
operations or branches any Account Loans or Fixed Assets of the Branch;

                  (i) Transfer, assign, permit any Encumbrance to exist with
respect to or otherwise dispose of, or enter into any contract, agreement or
understanding to transfer, assign, cause or permit any Encumbrance to exist with
respect to or otherwise dispose of, any of the Assets of the Branch except in
the ordinary course of business and subject to the other provisions of this
Section 8.4.

         8.5 BOOKS AND RECORDS. Seller shall retain (i) all books and records
relating to the Branch which are not ordinarily maintained at the Branch along
with transaction tickets through the Closing Date and all records of closed
accounts, except books and records from centralized servicing areas (including,
e.g., W-8 and W-9 Certifications), and (ii) all transaction documents related to
the Deposits. On the Closing Date, Buyer shall receive possession of, and right,
title and interest to and in, the Records. All transaction documents, books and
records which are retained by Seller after the Closing Date and which relate

                                       15
<PAGE>

directly to transactions involving Assets and Deposits of the Branch occurring
prior to the Closing Date shall (i) be maintained for a period which is at least
the longer of the period required by law or the normal retention period under
Seller's record retention program, unless the Parties shall, applicable law
permitting, agree upon a shorter period; and (ii) even if such transaction
documents, books and records are relocated to third-party long-term storage
facilities or transferred to microfilm or other media in accordance with
Seller's normal practices, shall upon Buyer's request pursuant to a customer's
reasonable inquiry, be made available to Buyer at no cost. For any other
purpose, unless the Parties agree to another arrangement, Seller shall provide
such transaction documents, books and records as Buyer may deem desirable at
Seller's regular customer service charge for research and copying, except if
such purpose is reasonably necessary to permit Buyer to comply with or contest
any applicable legal, tax, banking, accounting or regulatory policies,
requirements or proceedings, arising out of the obligations of Seller prior to
Closing, in which case no charge shall be made.

         8.6 INSURANCE POLICIES. Seller will maintain in effect until the
Closing all insurance policies set forth in Schedule 6.10 attached hereto
providing coverage at least equal to their current coverage.

         8.7 FURTHER ASSURANCES. On and after the Closing Date, Seller shall (i)
give such further assurances to Buyer and upon Buyer's request shall execute,
acknowledge and deliver all such acknowledgments and other instruments and take
such further action as may be necessary and appropriate to effectively relieve
and discharge Buyer from any obligations remaining under the Deposits
transferred to Buyer, except obligations assumed under this Agreement; and (ii)
give such further assistance to Buyer and shall execute, acknowledge and deliver
all such bills of sale, acknowledgments and other instruments and take such
further action as may be necessary and appropriate effectively to vest in Buyer
full, legal and equitable title to the Assets transferred to Buyer; provided,
however, that Seller need not incur any material costs or expenses in connection
with the undertakings contained in this sentence unless such costs or expenses
are paid by Buyer. In particular, and without limiting the foregoing:

                  (a) After the Closing Date, Seller will mail to Buyer on the
day of receipt by Seller all payments relating to Account Loans or amounts
intended for deposit to the accounts which are part of the Deposits transferred
to Buyer or otherwise relating to such Deposits or Account Loans; and

                  (b) With respect to checks or drafts against accounts which
are Deposits transferred to Buyer, Seller and Buyer will cooperate with one
another such that on and after the Closing Date, each such item which is coded
for presentment to Seller or to any bank for the account of Seller, is delivered
to Buyer in a timely manner and in accordance with Section 13.6, applicable law
and Clearing House rules or agreement.

                  (c) Except as otherwise contemplated by this Agreement, Seller
will remove any supply of money orders, traveler's checks and other forms and
papers (other than Records) located at the Branch not later than the close of
business on the Closing Date; and

                  (d) Not later than 2:00 p.m. on the Closing Date, Seller will
void all ATM access cards along with any check guarantee services issued by it
to customers of the Branch except for customers that are also customers of other
branches of Seller.

         8.8 NO ENCUMBRANCES. Between Signature Date and the Closing Date,
Seller will not create or suffer to exist any new Encumbrance on the Assets, or
otherwise enter into any material transaction or make any material commitment
relating to the Assets without the prior written consent of Buyer, except as
permitted by Section 8.4 hereof.

                                       16
<PAGE>

         8.9 CONSENTS. Seller shall secure all necessary corporate consents,
shall use commercially reasonable efforts to secure all consents and releases
required of third parties (except those regarding Buyer) and shall comply with
all applicable laws, regulations and rulings in connection with this Agreement
and the consummation of the transactions contemplated hereby.

         8.10 OPERATION OF BRANCH. From and after the date of this Agreement
until the Closing Date, Seller shall operate and manage the Branch in the normal
and ordinary course and in accordance in all material respects with all
applicable federal, state and local laws, ordinances and requirements and
private covenants, conditions, restrictions and other agreements, and maintain
the Branch in good order, condition and repair in all material respects. Seller
shall punctually pay and perform all of its obligations under the Branch Lease
and related service contracts, and pay before delinquency all taxes,
assessments, utility charges and other expenses affecting the Branch except to
the extent contested in good faith by appropriate proceedings. After the
Signature Date, Seller shall use commercially reasonable efforts to retain at
the Branch the Deposits which are domiciled at the Branch as of the date of this
Agreement.

         8.11 REPURCHASE OF CERTAIN ACCOUNT LOANS AND DEPOSITS. Seller agrees,
on the first Business Day following the date which is thirty (30) days following
Closing, to repurchase from Buyer: (a) any Account Loan and to reassume any
obligations under any associated Deposit which (i) at Closing, was listed on the
Schedule of Delinquent Account Loans and (ii) on the date which is thirty (30)
days following Closing, remained delinquent. For purposes of the foregoing
sentence, an Account Loan shall be considered delinquent if such loan is more
than ninety (90) days past due at the applicable time; and (b) any Deposit and
to reassume any obligations under such associated Deposit which (i) at Closing,
was a Negative Balance Deposit and (ii) on the date which is thirty (30) days
following Closing, remained a Negative Balance Deposit, for a repurchase price
equal to the negative balance of such Deposit on the Closing Date. Seller and
Buyer shall cooperate in the repurchase of such Account Loans and Deposits and
the reassumption of obligations under such Account Loans and Deposits.

         8.12 SERVICE AND MAINTENANCE CONTRACTS. Seller shall, if requested by
Buyer, use commercially reasonable efforts to continue to make such services and
benefits of any service and maintenance contracts available to Buyer and in such
event, Buyer shall pay at the contract rate for any desired services to be
rendered to it after the Closing Date pursuant to any existing contract between
Seller and third parties. Seller has provided Buyer with copies of service and
maintenance contracts related to the Branch which are outstanding as of the
Closing Date. With respect to any such contracts, Buyer shall, not later than
five (5) days before the Closing Date, notify Seller of those contracts which it
elects to assume (to the extent permitted by the relevant contract and law), and
Seller shall assign all of its right, title and interest in such contracts so
assumed to Buyer at the Closing pursuant to documents and agreements in form and
substance reasonably satisfactory to Buyer.

         8.13 SIGNS. At the request of Buyer, Seller shall, at its own cost and
in compliance with the Branch Lease on or before the Closing Date, remove all
exterior and interior signs identifying Seller at the Branch and restore
exterior surfaces. In addition, Seller will cooperate with Buyer in Buyer's
effort to coordinate the installation of exterior signage at the Branch. The
parties shall cooperate with each others efforts with respect to the foregoing
to the extent reasonable.

                                       17
<PAGE>

         8.14 LEASE. Seller shall use commercially reasonable efforts to obtain
and deliver to Buyer a Landlord Estoppel Certificate, substantially in the form
attached hereto as Exhibit 8.14(a) ("Landlord Estoppel Certificate") from the
landlord under the Branch Lease which, if delivered, shall be dated not sooner
than thirty (30) days prior to the Closing Date. Commercially reasonable
efforts, as used in this paragraph, shall not include the payment of any
consideration or money. Seller shall also use its best efforts to obtain as soon
as reasonably possible, and to provide to Buyer not later than ten (10) days
prior to the Closing Date, a written consent to the assignment of the Branch
Lease from the landlord under the Branch Lease substantially in the form
attached hereto as Exhibit 8.14(b) or in such other form as Seller and Buyer
shall mutually agree ("Assignment and Consent").

                                    ARTICLE 9

                                 NON-COMPETITION

         9.1 SOLICITATION. For a period of twenty-four (24) months following the
Closing Date, Seller will not, directly or indirectly, solicit deposits by the
use of direct mail, telemarketing programs or other similar marketing methods
specifically directed at people within a two (2.0) mile radius of the Branch or
at customers of the Branch. Notwithstanding the previous sentence, this Section
(Section 9.1) shall not limit the right of Seller to solicit customers through a
general media marketing program or to solicit customers who are also customers
of other operations or branches of Seller.

         9.2 NON-COMPETITION. For a period of twenty-four (24) months following
the Closing Date, Seller shall not, directly or indirectly, without the prior
written consent of Buyer, own, operate or purchase an office of a savings and
loan association, commercial bank, savings bank or depositary institution within
a two (2.0) mile radius of the Branch. This Section 9.2 shall not prohibit
Seller from acquiring a branch or branches within such radius when such
acquisition is part of a multi-branch purchase from, or a merger with, another
financial institution.

         9.3 ADVERTISING. For a period of twenty-four (24) months following the
Closing Date, Buyer may not use Seller's name in any advertisement without
Seller's prior written consent and Seller may not use Buyer's name in any
advertisement without Buyer's prior written consent.

                                   ARTICLE 10

                              CONDITIONS TO CLOSING

         10.1 CONDITIONS TO THE OBLIGATIONS OF BUYER. Unless waived in writing
by Buyer, the obligations of Buyer to consummate the transaction contemplated by
this Agreement are subject to the satisfaction at or prior to the Closing of the
following conditions:

                  (a) PERFORMANCE. Each of the acts and undertakings of Seller
to be performed at or before the Closing Date pursuant to this Agreement shall
have been duly performed in all material respects.

                  (b) REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Seller contained in Article 6 of this Agreement shall be true and
complete on and as of the Closing Date with the same effect as though made on
and as of the Closing Date.

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<PAGE>

                  (c) ABSENCE OF PROCEEDINGS AND LITIGATION. No order shall have
been entered and remain in force at the Closing Date restraining or prohibiting
any of the transactions contemplated by this Agreement in any legal,
administrative or other proceeding and no action or proceeding shall have been
instituted or threatened on or before the Closing Date pertaining to the
transactions contemplated by this Agreement which, in the reasonable judgment of
Buyer, could be materially adverse to Buyer's consummating this Agreement.

                  (d) REGULATORY APPROVAL. All required licenses, approvals and
consents of any relevant state, federal or other regulatory agencies shall have
been obtained and all necessary conditions to those licenses, approvals and
consents shall have been fully satisfied; provided, however, that if any such
licenses, approvals or consents are qualified or conditioned in any manner which
materially and adversely affects the operations of the Branch as a branch of
Buyer, this condition may be deemed unfulfilled.

                  (e) DOCUMENTS. In addition to the documents described
elsewhere in this Section 10.1, Buyer shall have received the following
documents from Seller duly executed:

                           (1) A General Bill of Sale and Assignment and
Assumption substantially in the form of Exhibit A hereto.

                           (2) A Retirement Accounts Transfer Agreement
substantially in the form of Exhibit C hereto.

                           (3) A certificate of the Secretary or Assistant
Secretary of Seller as to the incumbency and signatures of officers.

                           (4) Such other bills of sale and other instruments
and documents as counsel for Buyer may reasonably require as necessary or
desirable for transferring, assigning and conveying to Buyer good, marketable
and insurable title to the Assets to be transferred to Buyer as contemplated
herein, all in form and substance reasonably satisfactory to counsel for Buyer.

                           (5) A certificate signed by duly authorized officers
of Seller stating that the representations and warranties of Seller under
Article 6 of this Agreement are true as of the Closing Date, that the respective
covenants of Seller to be performed on or before the Closing Date have been
performed in all material respects, and that the conditions set forth in this
Section 10.1 have been satisfied.

                           (6) A schedule listing the Account Loans and
associated Deposits which are ninety (90) days delinquent as of the Closing (the
"Schedule of Delinquent Account Loans").

                           (7) Such other documents or instruments as Buyer may
reasonably request in connection with the performance by Seller of any of its
obligations hereunder.

                           (8) Resolutions of Seller's Board of Directors,
certified by its Secretary or Assistant Secretary, authorizing the signing and
delivery of this Agreement and the consummation of the transactions contemplated
hereby.

                           (9) A computer printout of Deposits being transferred
to Buyer.

                                       19
<PAGE>

                           (10) A list of holds pursuant to Section 13.7.

                           (11) A copy of the form of the notice Seller sent to
its customers in accordance with Section 13.1, and the final customer list
contemplated by Section 13.1.

                           (12) The Records relating to the Branch.

                           (13) A Landlord Estoppel Certificate executed by the
landlord under the Branch Lease substantially in the form of Exhibit 8.14(a)
attached hereto; provided that delivery of such Landlord Estoppel Certificate
shall be required and shall be a condition precedent to Closing only if such
Landlord Estoppel Certificate has been obtained by Seller.

                           (14) The Assignment and Consent executed by Buyer,
Seller and the landlord under the Branch Lease. For purposes of Section
10.1(e)(14) the Assignment and Consent to be delivered pursuant to the previous
sentence shall not be interpreted to require execution by the landlord under the
Branch Lease of documentation releasing Seller from liability under the Branch
Lease.

                  (f) DESTRUCTION OF PROPERTY. Between the date of this
Agreement and the Closing Date, there shall have been no damage to or
destruction of the Realty, Branch, Leasehold Improvements or other Assets of the
Branch to be acquired by Buyer (whether or not insured) which materially reduces
the market value of such property and no zoning or other order, limitation or
restriction imposed against the same that might have a materially adverse impact
upon the operations, business or prospects of the Branch or upon the Assets
relating thereto. In the event of such damage, Seller shall repair or restore
the property, or if the property is insured, may elect to perform no such repair
or restoration and assign the insurance proceeds to Buyer. In the event that
Seller makes no repair or restoration and the damage to the property is not
insured, or if the cause of the reduction in market value is not repairable,
Seller and Buyer shall attempt to agree upon a mutually acceptable reduced
purchase price for such property. If Seller and Buyer are unable to reach such
agreement, Buyer may elect to exclude such property from the purchase with a
corresponding reduction in the purchase price calculated under Section 2.2
above, provided however, that Buyer shall nonetheless assume the Deposits and
purchase the Account Loans except when such damage, or destruction prevents
Buyer from operating the Branch, in which event, at Buyer's option, Buyer may
elect to terminate this Agreement.

                  (g) ACCESS TO INFORMATION. Seller shall have permitted Buyer
and its authorized representatives and agents to have reasonable access, after
the Signature Date, to all Assets and Records of the Branch as are relevant to
this Agreement in accordance with this Agreement.

                  (h) NO MATERIAL ADVERSE CHANGE. No material adverse change
shall have occurred affecting (i) the Branch or (ii) the ability to conduct
operations at the Branch provided that no decrease in Deposits which would not
constitute a failure of Section 10.1(j) and no destruction of property which
would not constitute a failure of Section 10.1(f) shall be deemed to be a
material adverse change.

                  (i) DEPOSIT. The aggregate amount of all of the Deposits to be
transferred to Buyer hereunder shall not be twenty-five percent (25%) larger or
smaller than the aggregate amount of Deposits of the Branch as of the Signature
Date.

                                       20
<PAGE>

                  (j) REIMBURSEMENT. Buyer shall have received payment pursuant
to Section 2.3(c).

         10.2 CONDITIONS TO THE OBLIGATIONS OF SELLER. Unless waived in writing
by Seller, the obligations of Seller to consummate the transaction contemplated
by this Agreement are subject to the satisfaction at or prior to the Closing of
the following conditions:

                  (a) PERFORMANCE. Each of the acts and undertakings of Buyer to
be performed at or before the Closing Date pursuant to this Agreement shall have
been duly performed in all material respects.

                  (b) REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Buyer contained in Article 5 of this Agreement shall be true and
complete on and as of the Closing Date with the same effect as though made on
and as of the Closing Date.

                  (c) ABSENCE OF PROCEEDINGS AND LITIGATION. No order shall have
been entered and remain in force at the Closing Date restraining or prohibiting
any of the transaction contemplated by this Agreement in any legal,
administrative or other proceeding and no action or proceeding shall have been
instituted or threatened on or before the Closing Date pertaining to the
transaction contemplated by this Agreement which, in the reasonable judgment of
Seller could be materially adverse to Seller's consummating this Agreement.

                  (d) REGULATORY APPROVAL. All required licenses, approvals and
consents of any relevant state, federal or other regulatory agencies shall have
been obtained and all necessary conditions to those licenses, approvals and
consents shall have been fully satisfied.

                  (e) DOCUMENTS. In addition to the documents described
elsewhere in this Section 10.2, Seller shall have received the following
documents from Buyer duly executed:

                           (1) A General Bill of Sale and Assignment and
Assumption substantially in the form of Exhibit A hereto.

                           (2) An Assumption of Deposit Liabilities
substantially in the form of Exhibit B hereto.

                           (3) A Retirement Accounts Transfer Agreement
substantially in the form of Exhibit C hereto.

                           (4) A certificate of the Secretary or Assistant
Secretary of Buyer as to the incumbency and signatures of officers.

                           (5) A certificate signed by duly authorized officers
of Buyer stating that the representations and warranties of Buyer under Article
5 of this Agreement are true as of the Closing Date, and that the respective
covenants of Buyer to be performed on or before the Closing Date have been
performed in all material respects, and that the conditions set forth in this
Section 10.2 have been satisfied.

                           (6) Such other documents or instruments as Seller may
reasonably request in connection with the performance by Buyer of any of its
obligations hereunder.

                                       21
<PAGE>

                           (7) Resolutions of Buyer's Board of Directors,
certified by its Secretary or Assistant Secretary, authorizing the signing and
delivery of this Agreement and the consummation of the transactions contemplated
hereby.

                           (8) The Assignment and Consent executed by Buyer,
Seller and the landlord under the Branch Lease.

                                   ARTICLE 11

                                   TERMINATION

         11.1 CONDITIONS FOR TERMINATION. This Agreement shall terminate and be
of no further force and effect as between the Parties hereto, upon the
occurrence of any of the following:

                  (a) Immediately upon refusal or denial by any governmental
agency of any approvals or consents required to be obtained pursuant to this
Agreement.

                  (b) The expiration of five (5) Business Days from the date
that any Party has given written notice to the other Party of such other Party's
material breach or material misrepresentation of any condition, warranty,
representation or covenant in this Agreement; provided, however, that no such
termination shall take effect if within such five (5) day period the Party so
notified shall have fully and completely corrected the grounds for termination
as specified in such notice.

                  (c) Upon the failure to consummate the transaction by July 23,
1999 unless extended by mutual agreement in writing of the Parties.

                  (d) Upon mutual consent of the Parties to terminate.
Notwithstanding anything to the contrary herein contained in this Agreement, no
Party shall have the right to terminate this Agreement on account of its own
breach or any immaterial breach by the other Party.

                  (e) If either Party has failed to disclose in writing to the
other Party facts known to it that would have a material adverse effect on its
ability to obtain all requisite regulatory consents or to perform its
obligations under this Agreement.

                  (f) If Buyer shall have elected to terminate this Agreement
pursuant to Section 10.1(f).

                  (g) If Buyer shall have given Seller notice of any material
defect with the Branch or the Deposits or any Assets thereof pursuant to Section
3.1 (b), and if Seller has not remedied such material defects to the extent and
within the time limitations set forth in the appropriate provision thereof.

         11.2 EFFECT OF TERMINATION. Termination of this Agreement pursuant to
Section 11.1 or for any reason or in any manner shall not release, or be
construed to release, any Party hereto from liability or damage to any other
Party arising out of, in connection with, or otherwise relating to, directly or
indirectly, such Party's material breach, default or failure in performance of
any material covenants, agreements, duties or obligations arising hereunder.

                                       22
<PAGE>

                                   ARTICLE 12

                                    EMPLOYEES

         12.1 EMPLOYEES. Buyer shall be entitled, but is not required, to meet
with the Employees employed at Seller's Branch no later than seven (7) days
after the transaction is communicated by the Seller to the Seller's Employees.
Seller agrees to give Buyer access to personnel files concerning each of the
Employees employed at Seller's Branch within seven (7) days of receiving such
Employee's written consent for such release. Seller shall use commercially
reasonable efforts to obtain such consent from each of its Employees as soon as
practicable after the initial meeting with Employees employed at the Seller's
Branch. Buyer shall be entitled, but is not obligated to, personally interview
each of Seller's Employees. Buyer may offer employment to any of such Employees
which Buyer, in its sole and absolute discretion, desires to employ. Any such
Employee shall be hired on such terms and conditions as Buyer shall determine,
effective the day immediately following the Closing Date. Buyer shall make any
offers of employment promptly after the receipt from Seller of records referred
to above. Any such Employee shall be given five (5) Business Days from the date
of such offer to accept or decline the employment offer.

         Beginning on the date on which any of Seller's Employees are hired by
Buyer, Buyer shall assume all obligations and liabilities which may arise as a
result of Buyer's employment of such Employees on or after such first date of
employment of such Employees, and hereby agrees to and shall indemnify and hold
Seller harmless from and against any such liability. In furtherance and not in
limitation of Section 14.2, Seller shall indemnify and hold harmless Buyer and
Buyer's officers, directors, employees, agents and representatives from and
against any and all obligations or liabilities which may arise as a result of
Seller's employment of such Employees on or prior to the Closing (including,
without limitation, those specified in the next paragraph). Nothing contained
herein is to be construed as offering or creating an employment contract for any
such Employee or any other obligation to employ such Employees. All Employees of
the Branch will have their earned compensation paid in full by Seller through
the Closing Date, including but not limited to any amounts due for accrued but
unused vacation pay.

         The Buyer is not assuming, nor shall it have responsibility for the
continuation of, or any liabilities under or in connection with: (i) any
employment contract, collective bargaining agreement, plan or arrangement
providing for insurance coverage or for deferred compensation, bonuses, stock
options or other forms of incentive compensation or post-retirement compensation
or benefits which is entered into or maintained, as the case may be, by Seller;
or (ii) any "employee benefit plan" as defined in Section 3(3) of ERISA which is
subject to any provision or ERISA and is maintained, administered or contributed
to by Seller.

         This Agreement is not intended to create and does not create any
contractual or legal rights in or enforceable by any Employee. Buyer agrees to
obtain prior approval of Seller before sending any communications to any
Employee employed at the Branch concerning the subject matter of this Section
12.1, which approval shall not be unreasonably withheld. This Agreement may be
amended or terminated without liability to any Employee.

         In the event the transactions contemplated by this Agreement are not
consummated, for a period of one (1) year following the termination of this
Agreement, Buyer will neither initiate contact with or solicit for hire any
Employee who was employed by Seller at or in conjunction with the Branch before
the termination of this Agreement. However, Buyer will not be prohibited from
hiring any such Employee where the contact with Buyer is initiated by the
Employee.

                                       23
<PAGE>

         Buyer shall have the right but not the obligation prior to the Closing
to provide training to any Employees that will become employees of Buyer after
the Closing as set forth in this Section 12. Such training shall be at the
expense of Buyer and shall be conducted on Saturday or after business hours at a
location other than the Branch. At the request of Buyer, Seller shall compensate
Employees, in accordance with Seller's customary policies and practices, for the
Employees' time spent being trained by Buyer and the Employees' reasonable
reimbursable expenses (such compensation to be reimbursed by Buyer to Seller at
Closing or termination (the "Employee Reimbursements")). Seller shall cooperate
with Buyer to make such Employees available for such training prior to the
Closing Date.

         12.2 EMPLOYEE BENEFITS.

                  (a) Subject to any limitation or restriction imposed by the
ERISA, as amended;

                           (1) all Employees at the Branch who become employees
of Buyer ("Transferred Employees") will, on and as of the Closing Date, be
immediately eligible to participate in employee benefit plans and other fringe
benefits and rights, including without limitation severance plans and vacation
pay, enjoyed by employees of Buyer in comparable positions excluding any pension
or 401(k) plans; and

                           (2) for all employee benefit plans except any pension
or 401(k) plans, the Transferred Employees will be given immediate credit for
their length of service with Seller for eligibility and vesting purposes only.

                                   ARTICLE 13

                                OTHER AGREEMENTS

         13.1 NOTICES TO DEPOSITORS. Seller shall provide Buyer, as soon as
practicable, with a customer list regarding the accounts to be assumed by Buyer
as contemplated herein, together with data tapes. On the Closing Date, Seller
shall provide Buyer a final customer list of the assumed accounts. At the time
that Seller provides to Buyer the customer lists pursuant to this paragraph,
Seller shall notify Buyer of any customer addresses which Seller is aware are
invalid.

         As soon as practicable after receipt of all required regulatory
approvals, Seller shall notify the holders of the Deposits to be assumed by
Buyer that, subject to closing requirements, Buyer will be assuming the
liability of the Deposits and will not continue services provided by Seller
which are not routinely offered by Buyer. The notification will be based on the
list and data tapes referred to in the preceding paragraph and a listing
maintained at Seller's Branch of the new accounts opened since the date of the
list. Buyer shall send notification to the same holders setting out the details
of its administration of the assumed accounts. Each Party shall obtain the
approval of the other of its notification letter(s), which approval shall not be
unreasonably withheld or delayed.

         13.2 SAFE DEPOSIT BOXES. As soon as practicable after receipt of all
required regulatory approvals, the Seller shall notify by letter renters of Safe
Deposit Boxes located at the Branch of the disposition of their Safe Deposit
Boxes as of the Closing Date. In the event of removal of such boxes to a new
location, the Parties agree to cooperate in the safe and lawful transfer of such
boxes. The costs and expenses incurred in the transfer and security of such
boxes will be borne by Buyer. All key or other deposits related to the Safe
Deposit Boxes which are held by Seller shall be transferred to Buyer as of the
Closing Date as part of the Closing.

                                       24
<PAGE>

         13.3 INCOMING DEPOSITS AND MAIL. In the event Seller receives after the
Closing Date, a deposit, payment, legal process or mail with respect to the
Assets or Deposits transferred to Buyer, Seller shall, at Seller's expense, mail
such to Buyer within one (1) Business Day of receipt thereof at the address
Buyer may from time to time designate; provided, however that Seller shall use
commercially reasonable efforts to send all legal process to Buyer by facsimile
on the day same is received by Seller and, in any event, such legal process
shall be so sent no later than the next Business Day.

         13.4 RETURNED ITEMS. Any items that were (i) credited for deposit to,
or (ii) cashed against, an account at the Branch prior to the Closing and are
returned unpaid at any time after the Closing and within the guidelines
specified under "Regulation CC" of the Federal Reserve System ("Returned Items")
will be handled as follows:

                  (a) If Seller is charged for the Returned Item, Seller shall
notify Buyer and if there are sufficient funds in the account to which such
Returned Item was credited or any other accounts on deposit with Buyer in the
name of the party liable for such Returned Item, Buyer will debit any or all of
such accounts an amount equal in the aggregate to the Returned Item or all funds
available in the subject account, if less. If there are not sufficient funds in
the accounts which may be debited (for reasons other than Buyer's breach of
Section 13.7), Buyer will have no obligation to repay Seller unless and until
Buyer obtains reimbursement from the party liable for the Returned Item.

                  (b) If Buyer's bank account is charged for the Returned Item,
Buyer will use reasonable efforts to obtain reimbursement from the account to
which, or from the party to whom, the Returned Item was credited. If there are
sufficient funds in the account to which such Returned Item was credited or any
other accounts on deposit at any branch office of Buyer standing in the name of
the party liable for such Returned Item, Buyer will debit any or all of such
accounts in an amount equal in the aggregate to the Returned Item. If those
accounts do not contain funds sufficient to reimburse Buyer fully (for reasons
other than Buyer's breach of Section 13.7), Seller will, upon notice from Buyer,
immediately repay to Buyer the amount of the Returned Item and Buyer will assign
the Returned Item to Seller for collection. For a reasonable period of time
after reimbursement from Seller, Buyer will cooperate with Seller in its efforts
to obtain reimbursement from the party liable for the Returned Item.

                  (c) Any items that were credited for deposit to or cashed
against an account at the Branch prior to the Closing Date and are returned
unpaid more than sixty (60) days after the Closing will be the responsibility of
Seller.

         13.5 ACH ITEMS AND WIRE TRANSFERS. Buyer and Seller shall use
commercially reasonable efforts to transfer all ACH arrangements to Buyer as
soon as practicable after the Closing Date. Buyer shall continue such ACH
arrangements and such recurring debit and credit arrangements as are originated
and administered by third parties and for which Buyer need act only as
processor; Buyer shall have no obligation to continue recurring debit
arrangements that were originated or administered by Seller, and Seller shall
terminate such arrangements on or prior to the Closing Date. After the Closing
Date, Seller will use commercially reasonable efforts to (i) telecopy or deliver
to Buyer on each Business Day after receipt, at the address designated by the

                                       25
<PAGE>

Buyer, a summary of ACH Items affecting the Deposits (such summary to include
claim number, suffix (if applicable), source name, trace id, client name and
effective date); and (ii) remit by wire transfer to Buyer all ACH Item funds
that are intended for Deposit accounts being transferred to Buyer; provided,
however, that Seller's obligation to deliver such summaries and to forward such
ACH Items shall continue for not more than one hundred and fifty (150) days
after the Closing Date, unless an extension is agreed upon. Extensions must be
agreed upon by Buyer and Seller not less than seven (7) days prior to the end of
such period. Thereafter, Seller will return all ACH Items to the originator
marked "Account sold to another DFI."

         ACH transfers which have not been rerouted directly to Buyer after
ninety (90) days from Closing, shall be handled as follows: (i) Buyer shall
notify such ACH users that they must contact the ACH originator and complete the
transfer; (ii) if the transfer remains unconcluded after one hundred and twenty
(120) days from Closing, Buyer shall renotify such ACH users that their ACH
transaction will cease to be processed within the one month period following
said notification; and, (iii) after one hundred fifty days (150) from Closing,
Seller shall return the ACH transaction to the originator, marked "Account sold
to another DFI."

         For a period of thirty (30) days from the Closing, Seller shall upon
receipt thereof, notify Buyer of incoming wire transfers to an account(s) of a
Deposit transferred to Buyer at the Closing and shall use commercially
reasonable efforts to wire same to Buyer on the same day the funds of such
incoming wire transfer for the account(s) of such Deposit.

         13.6 CHECKING ACCOUNTS. Within ten (10) Business Days following the
Closing Date, Buyer, at its sole expense, will mail to holders of those Deposits
acquired from Seller which may be accessed by checks, new checks MICR encoded
with Buyer's routing and transit numbers and the Buyer's customer identification
number. On a daily basis, Seller, at its sole expense, will outsort all Branch
checks received by it drawn on accounts assumed by Buyer and prepare them for
delivery within one Business Day to Buyer's service center at Buyer's expense.
Buyer accepts full responsibility to either pay the items or return them in
accordance with the customer agreement and the California Uniform Commercial
Code and all applicable federal laws and regulations. Seller's obligation to
outsort and deliver such Branch checks shall continue for sixty (60) days after
the Closing Date. After the sixty (60) day period, Seller will stop accepting
such items and will return items marked "Refer to Maker."

         Seller will furnish to Buyer a daily accounting of debits to its
clearing account. On a daily basis, Buyer and Seller will agree on the
settlement amounts of inclearing items transferred by Seller to Buyer. Buyer
will remit the settlement amount on the next Business Day, by immediately
available funds, to the Seller.

         13.7 HOLDS. Holds that have been placed by Seller on particular
accounts or on individual checks, drafts, or other instruments and listed on the
schedule referred to in the next sentence will be continued by Buyer under the
same terms. Seller will deliver to Buyer at the Closing a schedule of such holds
which describes the terms thereof.

         13.8 RETIREMENT ACCOUNTS. Buyer will assume certain Retirement Accounts
held at Seller's Branch according to the terms contained herein and in the
Retirement Accounts Transfer Agreement attached hereto as Exhibit C. Buyer shall
not collect an annual fee for 1999.

         13.9 CARD PROCESSING. Seller will void on and as of the Closing Date
all (i) ATM access cards issued by it to customers of the Branch who will not
have ATM-accessible accounts with Seller after the Closing Date, (ii) debit
cards issued by it to customers of the Branch who will not have debit
card-accessible accounts with Seller after the Closing Date, and (iii) check
guarantee cards issued by it to customers of the Branch who will not have

                                       26
<PAGE>

checking accounts with Seller after the Closing Date. Seller will notify the
customer in writing as part of the notice requested under Section 13.1 above, of
such cancellation of the ATM access cards, debit cards and check guarantee
cards.

         Seller agrees to provide to Buyer the necessary data and tapes
required, prior to the Closing Date, to accommodate the processing of ATM and
debit cards, which may then be issued prior to the Closing Date. Furthermore,
the Parties agree to settle within two (2) Business Days of the ATM transaction
date for transactions occurring prior to Closing or during the conversion period
and for customers with sufficient funds: (i) any and all rejected ATM and debit
card transactions processed after the Closing Date, and (ii) any and all ATM and
debit card transactions processed while the ATM or debit card network could not
communicate with Seller's main host. Buyer agrees to remit the total sum of such
transactions to Seller on the same date the transactions are settled.

         Any claim submitted under "Regulation E" of the Federal Reserve System,
for transaction processed prior to the Closing Date on Deposits transferred to
Buyer, shall be settled as follows:

                  (a) If the claim is submitted to Seller, Seller shall process
the claim under the guidelines specified in "Regulation E," and if a
reimbursement to the customer is determined necessary, Seller shall directly
reimburse the customer.

                  (b) If the claim is submitted to Buyer, Buyer shall refer
claimant to Seller.

         Such settlement shall continue for a period of ninety (90) days
following the Closing Date. All claims submitted after such ninety (90) day
period shall be returned by Seller to the originator of the claim.

         13.10 DATA PROCESSING CONVERSION. The Parties agree to (i) insure the
orderly transfer of all data tapes and processing information, and will
facilitate an electronic and systematic conversion of all applicable data
regarding Account Loans, ATM Cards and Deposits whereby each Party will bear the
cost associated with the transfer of its tapes and information and the
conversion of its data except as otherwise agreed upon; (ii) at the
Field-to-Field meeting, exchange all data information necessary to complete such
conversion process; (iii) within ten (10) days after the Field-to-Field meeting,
Seller shall provide all systems information necessary to complete such
conversion processing and provide two (2) sets of the initial data processing
pre-conversion file layout and product definitions; (iv) provide the final data
processing pre-conversion file packages on a timely basis allowing for
pre-conversion; (v) provide any and all additional data processing information
added to the system subsequent to the preparation of the final reconversion
tapes on a day-to-day basis; and (vi) use commercially reasonable efforts to
provide by 12:00 p.m., on the day immediately following the Closing Date, two
(2) sets of final data processing conversion file packages.

         Immediately prior to or at the date of conversion of the data
processing information at the Branch, Seller shall (i) deconvert accounts and
block any further activity with respect thereto, (ii) cycle all accounts, and
(iii) prepare and send out account statements (and provide microfiche, if
available, to Buyer) dated as of the conversion date to all account holders.

                                       27
<PAGE>

         13.11 INTEREST REPORTING. Seller shall report for the current calendar
year up through and including the Closing Date all interest credited to,
interest premiums paid, interest withheld and early withdrawal penalties charged
to the Deposits which are to be assumed by Buyer as contemplated by this
Agreement. Buyer shall report from but not including the Closing Date through
the end of the calendar year all interest credited to, interest withheld from,
and early withdrawal penalties charged to the Deposits assumed by Buyer. Said
reports shall be made to the holders of these accounts and to the applicable
federal and state regulatory agencies.

         13.12 WITHHOLDING. Seller shall deliver to the Buyer on or before the
Closing Date data indicating all "B" notices (TINs do not match) and "C" notices
(under reporting/IRS imposed withholding) issued by the Internal Revenue Service
("IRS") relating to the Deposits transferred to Buyer. Furthermore, any and all
listings of similar notices regarding such Deposits received by Seller from the
IRS will be immediately delivered to Buyer. All notices received by Seller from
the IRS releasing withholding restrictions on Deposits transferred to Buyer will
be immediately delivered to Buyer. Any amounts required by any governmental
agency to be withheld from any of such Deposits (the "Withholding Obligations")
or any penalties imposed by any governmental agency will be handled as follows:

                  (a) Any Withholding Obligations required to be remitted to the
appropriate governmental agency on or prior to the Closing Date will be withheld
and remitted by Seller and any other sums withheld by Seller pursuant to
Withholding Obligations on or prior to the Closing Date shall also be remitted
by Seller to the appropriate governmental agency on or prior to the time they
are due.

                  (b) Any Withholding Obligations required to be remitted to the
appropriate governmental agency after the Closing Date with respect to
Withholding Obligations after the Closing Date and not withheld by Seller as set
forth in Section 13.12(a) above will be withheld and remitted by the Buyer.
Within two (2) days of receipt of such notice, Seller shall notify Buyer and
Buyer shall comply with notification requirements.

                  (c) Any penalties described on "B" notices from the IRS or any
similar penalties which relate to Deposit accounts opened by Seller prior to the
Closing Date will be paid by Seller promptly upon receipt of the notice
providing such penalty assessment resulted from Seller's acts, policies or
omissions. Similarly, any efforts to reduce such penalties shall be the
responsibility of Seller.

                  (d) Any penalties assessed due to information missing from
information filings regarding Deposits transferred to Buyer, including, without
limitation, 1099 forms, shall be paid by Seller shall pay such penalties
promptly upon receipt of the notice providing such penalty assessment resulting
from Seller's acts, policies or omissions, but shall be entitled to negotiate
such penalties with the IRS in good faith.

         13.13 TAXPAYER INFORMATION. Seller shall deliver to Buyer within three
(3) Business Days after the Closing Date (i) TINs (or record of appropriate
exemption) for all holders of Deposit accounts transferred to Buyer as
contemplated hereby; and (ii) all other information in Seller's possession or
reasonably available to Seller required by applicable law to be provided to the
IRS and/or account holders with respect to the Assets and Deposits transferred,
except for such information which Seller is obligated to make reports pursuant
to Sections 13.11 and 13.12 of this Agreement (collectively, the "Taxpayer
Information"). Seller hereby certifies that such information, when delivered,
shall accurately reflect the information provided by Seller's customers. Seller
shall, according to the terms of Section 14.2 of this Agreement, indemnify, hold
harmless and defend Buyer, Buyer's subsidiaries and Buyer's Affiliates from and

                                       28
<PAGE>

against any and all damages, losses, liabilities, costs, claims, obligations, or
expenses, including legal fees and expenses and fines and penalties arising from
or incurred or imposed in connection with any inaccuracy, act, or omission by
Seller in connection with the collection, recording, filing with appropriate
governmental agencies, or delivery to Buyer of the Taxpayer information.

         13.14 SELLER'S COOPERATION. From and after the Closing, Seller shall
cooperate with Buyer and shall provide assistance in responding to inquiries and
requests of customers of the Branch relating to Deposits transferred to Buyer at
the Closing to the extent such inquiries and requests relate to facts and
circumstances that occurred prior to the Closing.

                                   ARTICLE 14

                               GENERAL PROVISIONS

         14.1 SURVIVAL. The representations and warranties made by the Parties
to this Agreement, and their respective obligations to be performed under the
terms hereof at, prior to, or after the Closing, shall not expire with, or be
terminated or extinguished by, the Closing, notwithstanding any investigation of
the facts constituting the basis of the representations and warranties of either
Party by the other Party hereto; provided, however, that all representations and
warranties shall terminate and be of no further effect on the first anniversary
of the Closing Date; provided, further, that the indemnification provisions of
this Agreement shall, on and after such date, be limited to claims of third
parties other than the Parties and their Affiliates and to claims for damages,
loss, liabilities, costs, claims or expenses not arising from a
misrepresentation or breach of warranty.

         14.2 INDEMNIFICATION.

                  (a) Seller shall indemnify, hold harmless and defend Buyer
(and its Affiliates, successors, directors, officers and employees) from and
against any and all damage, loss, liability, costs, claim or expense (including
reasonable legal fees and expenses) incurred or suffered by Buyer (or its
Affiliates, successors, directors, officers and employees) in connection with:

                           (1) any material misrepresentation or material breach
of warranty, covenant or agreement made or to be performed by Seller pursuant to
this Agreement;

                           (2) any action taken or omitted to be taken by
Seller, or any transaction or any event occurring on or prior to the Closing
Date, relating to the Assets or the Deposits to be transferred to Buyer as
contemplated hereby, other than as permitted by this Agreement and any suits or
proceedings commenced in connection therewith;

                           (3) any claims of, or liabilities to, Employees, in
each case, arising prior to or on the Closing Date and any suits or proceedings
commenced in connection therewith; and

                           (4) all debts, obligations and liabilities excluded
pursuant to Section 2.3(e) above.

                                       29
<PAGE>

                  (b) Buyer shall indemnify, hold harmless and defend Seller
(and its Affiliates, successors, directors, officers and employees) from and
against any and all damage, loss, liability, cost, claim or expense (including
reasonable legal fees and expenses) incurred or suffered by Seller (or its
Affiliates, successors, directors, officers and employees) in connection with:

                           (1) any material misrepresentation or material breach
of warranty, covenant or agreement made or to be performed by Buyer pursuant to
this Agreement, and

                           (2) any action taken or omitted to be taken by Buyer,
or any transactions or any event occurring after the Closing Date, relating to
the Assets or the Deposits, to the extent that such Assets or Deposits are
assumed by or transferred to Buyer, and any suits or proceedings commenced in
connection therewith.

                  (c) A Party seeking indemnification pursuant to this Section
14.2 (an "Indemnified Party") shall give prompt notice to the Party from whom
such indemnification is sought (the "Indemnifying Party") of the assertion of
any claim, or the commencement of any action or proceeding, in respect of which
indemnity may be sought hereunder. The Indemnified Party shall assist the
Indemnifying Party in the defense of any such action or proceeding. The
Indemnifying Party shall have the right to, and shall at the request of the
Indemnified Party, assume the defense of any such action or proceeding at its
own expense. In any such action or proceeding, the Indemnified Party shall have
the right to retain its own counsel, but the fees and expenses of such counsel
shall be at its own expense unless:

                           (1) the Indemnifying Party and the Indemnified Party
shall have mutually agreed to the retention of such counsel and the payment of
such counsel's fees and expenses, or

                           (2) the named Parties to any such suit, action or
proceeding (including any impleaded Parties) include both the Indemnifying Party
and the Indemnified Party and, in the reasonable judgment of the Indemnified
Party, representation of both Parties by the same counsel would be inappropriate
due to actual or potential conflicting interests between them.

                  (d) An Indemnifying Party shall not be liable under this
Section 14.2 for any settlement effected without its consent of any claim,
litigation or proceeding in respect of which indemnity may be sought hereunder.
The Indemnifying Party may settle any claim without the consent of the
Indemnified Party, but only if the sole relief awarded is monetary damages that
are paid in full by the Indemnifying Party. An Indemnified Party shall, subject
to its reasonable business needs, use reasonable efforts to minimize the
indemnification sought from the Indemnifying Party hereunder. Notwithstanding
the foregoing, no investigation by an Indemnified Party at or prior to the
Closing shall relieve an Indemnifying Party of any liability hereunder, unless
the Indemnified Party seeks indemnity in respect of a representation or warranty
which it actually had reason to believe to be incorrect as a result of its
investigation prior to the Closing and the Indemnified Party intentionally
failed to bring such belief to the attention of the Indemnifying Party prior to
the Closing.

                  (e) Nothing in this Section 14.2 shall limit Buyer's or
Seller's rights or remedies for misrepresentations, breaches of this Agreement
or any other action or inaction by the other party hereto.

                                       30
<PAGE>

         14.3 BROKER'S FEES. Seller and Buyer have each entered into respective
agreements with BankSite whereby certain fees will be due to BankSite. Such fees
will be borne separately by Seller and Buyer in accordance with their respective
agreements with BankSite. With the exception of such engagements by Seller and
Buyer with BankSite, each of the Parties represents and warrants to the other
that it has dealt with no broker or finder in connection with any of the
transactions contemplated by this Agreement, and that no action has been taken
that would give rise to any valid claim for brokerage commission, finder's fee
or other like commission. Buyer and Seller each undertake to indemnify and hold
each other harmless against any loss, liability, damage, cost, claim or expense
incurred by reason of any brokerage commission, or finder's fee alleged to be
payable because of any act, omission or statement of the indemnifying Party.

         14.4 PUBLICITY AND NOTICES. Prior to the announcement of this Agreement
to the Employees, both Parties will limit the distribution of information
relative to the transaction to those persons who must be aware of this Agreement
for the performance of their duties. No Party will issue any press release nor
make any public announcements about the transaction contemplated herein, prior
to Employee notification. Nor shall any Party issue any press release or make
any public announcements about the transactions contemplated herein, without
consulting with and obtaining approval of the other Party, which approval shall
not be unreasonably withheld. Each Party agrees to forward copies of any and all
public statements, whether written or oral, to the other Party for review. The
reviewing Party shall have one (1) Business Day to object to the statement or
any part thereof. Failure to respond within such twenty-four (24) hour period
will be deemed to be approval and acceptance of such statement.

         14.5 INCORPORATION OF EXHIBITS. All exhibits and schedules attached
hereto and referred to herein are incorporated in this Agreement as though fully
set forth herein.

         14.6 ATTORNEYS' FEES. Each Party shall bear the cost of its own
attorneys' fees incurred in connection with the preparation of this Agreement
and consummation of the transactions described herein. Notwithstanding the
foregoing, in any action between the Parties seeking enforcement of any of the
terms and provisions of this Agreement, the prevailing Party in such action
shall be awarded, in addition to damage, injunctive or other relief, its
reasonable costs and expenses, not limited to taxable costs, and reasonable
attorneys' fees and expenses.

         14.7 SALES AND TRANSFER TAXES. All excise, sales, use, transfer, and
recording taxes and any other taxes or assessments which are payable or arise as
a result of this Agreement or the consummation of the transfer of the Assets and
Deposits to Buyer as contemplated hereby (except income taxes determined by
reference to the income of one of the Parties) shall be paid by Buyer to Seller
upon Buyer's receipt of satisfactory evidence that Seller has paid such taxes or
is legally obligated to pay such taxes. Seller shall report such tax on Seller's
sales tax return.

         14.8 NOTICES. All notices, requests, demands and other communication
given or required to be given under this Agreement shall be in writing, duly
addressed to the Parties as follows:

To Seller:                    Fidelity Federal Bank, FSB
                              4565 Colorado Boulevard
                              Los Angeles, CA  90039
                              Attn:    Senior Vice President,
                                       Retail Operations

                                       31
<PAGE>

With a Copy to:               Fidelity Federal Bank, FSB
                              4565 Colorado Boulevard
                              Los Angeles, CA  90039
                              Attn:    General Counsel

To Buyer:                     People's Bank of California
                              5900 Wilshire Boulevard, Suite 1600
                              Los Angeles, CA 90036
                              Attn:    William W. Flader
                                       Executive Vice President, Retail Banking

With a copy to:               People's Bank of California
                              5900 Wilshire Boulevard, Suite 1600
                              Los Angeles, CA  90036
                              Attn:    Doreen J. Blauschild
                                       Senior Vice President and General Counsel

         Any such notice sent by registered or certified mail, return receipt
requested, shall be deemed to have been duly given and received seventy-two (72)
hours after the same is addressed and mailed with postage prepaid. Notice sent
by any other manner shall be effective only upon actual receipt thereof.

         14.9 ARM'S LENGTH TRANSACTION. This Agreement has been negotiated at
arm's length and between persons sophisticated and knowledgeable in the matters
dealt with this Agreement. In addition, each Party has been represented by
experienced and knowledgeable legal counsel. Accordingly, any rule of law
(including California Civil Code Section 1654) or legal decision that would
require interpretation of any ambiguities in this Agreement against the Party
that has drafted it is not applicable and is waived. The provisions of this
Agreement shall be interpreted in a reasonable manner to effect the purposes of
the Parties and this Agreement.

         14.10 SUCCESSORS AND ASSIGNS. All of the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the Parties hereto
and their respective transferees, successors and assigns, but this Agreement may
not be assigned by any Party without the prior written consent of the other and
any attempted assignment by a Party without the other Party's consent shall be
null and void.

         14.11 THIRD PARTY BENEFICIARIES. Each Party hereto intends that this
Agreement shall not benefit or create any right or cause of action in or on
behalf of any person other than the Parties hereto.

         14.12 GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of California.

         14.13 ENTIRE AGREEMENT. This Agreement, including all schedules and
exhibits, contains all of the agreements of the Parties to it with respect to
the matters contained herein and no prior or contemporaneous agreement or
understanding, oral or written, pertaining to any such matters shall be
effective for any purpose. No provision of this Agreement may be amended or
added to except by an agreement in writing signed by the Parties hereto or their
respective successors in interest and expressly stating that it is an amendment
of this Agreement.

                                       32
<PAGE>

         14.14 HEADINGS. The headings of this Agreement are for purposes of
reference only and shall not limit or define the meaning of the provisions of
this Agreement.

         14.15 SEVERABILITY. If any paragraph, section, sentence, clause or
phrase contained in this Agreement shall become illegal, null or void or against
public policy, for any reason, or shall be held by any court of competent
jurisdiction to be illegal, null or void or against public policy, the remaining
paragraphs, sections, sentences, clauses or phrases contained in this Agreement
shall not be affected thereby.

         14.16 WAIVER. The waiver of any breach of any provision under this
Agreement by any Party hereto shall not be deemed to be a waiver of any
preceding or subsequent breach under this Agreement. Any waiver of any provision
of this Agreement shall be in writing executed by the party granting such
waiver.

         14.17 NUMBER(S). Whenever the context of this Agreement so requires,
the singular includes the plural, the plural includes the singular, the whole
includes any part thereof.

         14.18 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which shall
constitute one and the same instrument.

         IN WITNESS WHEREOF, the Parties hereto have duly authorized and
executed this Agreement as of the date first above written.

FIDELITY FEDERAL BANK,                        PEOPLE' S BANK OF CALIFORNIA,
A Federal Savings Bank                        A Federal Savings Bank

By: /s/ James E. Stutz                        By:
   -------------------------------------          ------------------------------
   James E. Stutz                                      [Name]
   President and Chief Operating Officer               [Title]

                                              By:
                                                  ------------------------------
                                                       [Name]
                                                       [Title]

                                       33
<PAGE>

                                    EXHIBIT A

               GENERAL BILL OF SALE AND ASSIGNMENT AND ASSUMPTION

         FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
Fidelity Federal Bank, a Federal Savings Bank (the "Seller"), pursuant to the
Agreement to Purchase Assets and Assume Liabilities dated (the "Agreement"), by
and between Seller and People's Bank of California, a Federal Savings Bank (the
"Buyer"), hereby sells, transfers, grants, delivers, and assigns to Buyer all of
the right, title and interest of Seller in and to the Account Loans, Records,
Safe Deposit Boxes, Cash on Hand, Fixed Assets listed on Schedule 1 attached
hereto and service and maintenance contracts listed on Schedule 2 attached
hereto ("Contracts"). Capitalized terms not defined herein shall have the
meanings assigned to them in the Agreement.

         Seller represents and warrants to Buyer that it has good and marketable
title to each and all of the items and things sold, transferred and conveyed,
that it has the full right to transfer such good and marketable title to Buyer,
that each of such items and things now is, and upon delivery to Buyer will be,
free and clear of all security interests, and all other liens, Encumbrances and
adverse claims, and that Buyer will have peaceful possession and quiet enjoyment
thereof from and after the date hereof.

         In furtherance of the foregoing, Seller hereby appoints Buyer, its
successors and assigns, the true and lawful attorney-in-fact of Seller with full
power of substitution, in the name of Seller but for the benefit and at the
expense of Buyer (1) to collect for the account of Buyer all items hereby sold,
transferred and assigned to Buyer and (2) to institute and prosecute all actions
or proceedings which Buyer may deem proper in order to collect, assert or
enforce any claim, right or title of any kind in or to the property hereby sold,
transferred and assigned, to defend or compromise any and all claims, acts,
writs or proceedings in respect to any of such property and to do all such other
acts and things in relation thereto as Buyer shall deem advisable. This power of
attorney is coupled with an interest.

         Buyer assumes and agrees to pay the obligations and liabilities of the
Seller under the Contracts accruing on and after the Closing Date.

         Seller shall indemnify, hold harmless and, at the option of Buyer,
defend Buyer from and against any and all claims, liabilities, damages, costs
and expenses (including, but not limited to, reasonable attorneys' fees, court
costs and litigation expenses) relating to any of the assets herein transferred
arising before or on the date hereof, or arising out of a violation of the
warranty of title hereinabove set forth.

         Buyer shall indemnify, hold harmless and, at the option of Buyer,
defend Seller from and against any and all claims, liabilities, damages, costs
and expenses (including, but not limited to, reasonable attorneys' fees, court
costs and litigation expenses) relating to any of the assets herein transferred
arising after the date hereof, except any such claim, liability, cost or expense
caused by the gross negligence or willful act of Seller.

         In the event of any conflict between the terms hereof and the terms of
the Agreement, the terms of the Agreement shall prevail.

                                       34
<PAGE>

         This Bill of Sale may be executed in one or more counterparts, all of
which taken together shall constitute one instrument.

         IN WITNESS WHEREOF, Buyer and Seller have executed this Bill of Sale as
of ________________.

FIDELITY FEDERAL BANK,                          PEOPLE'S BANK OF CALIFORNIA,
A Federal Savings Bank                          A Federal Savings Bank

By: _______________________________             By: ____________________________

Its: _______________________________            Its: ___________________________

                                                By: ____________________________

                                                Its: ___________________________

                                       35
<PAGE>

                                    EXHIBIT B

                        ASSUMPTION OF DEPOSIT LIABILITIES

For value received, People's Bank of California, a Federal Savings Bank (the
"Buyer") executes and delivers this Assumption of Deposit Liabilities (the
"Assumption") to Fidelity Federal Bank, a Federal Savings Bank (the "Seller"),
in accordance with that certain Agreement to Purchase Assets and Assume
Liabilities dated ____________ by and between Seller and Buyer (the
"Agreement"). Capitalized terms as used in this Assumption have the meanings
assigned to them in the Agreement.

By its execution of this Assumption, Buyer assumes and agrees to pay the Deposit
liabilities of the Seller to the holders of Deposits domiciled at the Seller's
Branch for the amounts of such accounts or deposits, including interest accrued
thereon, as of the Closing Date, in accordance with the Agreement and the terms
of such Deposits in effect as of the Closing Date. Buyer may administer such
Deposit accounts acquired from Seller pursuant to Buyer's own internal policies
and procedures, and Buyer shall have no liability or obligation to maintain in
effect the policies and procedures of Seller governing administration of the
Deposit accounts before the Closing Date; provided, however, that Buyer and not
Seller shall be responsible for properly implementing with affected customers
any such changes in policies and procedures governing administration of the
Deposit accounts, and Buyer and not Seller shall be liable for any damages,
claims or losses, including costs and attorneys' fees, resulting from any claims
that such changes were improperly implemented.

Notwithstanding anything to the contrary contained in this Assumption or in the
Agreement, Buyer does not assume and shall have no liability for any debts,
liabilities, or obligations of Seller of any kind whatsoever except as
specifically set forth in this Assumption or the Agreement.

This Assumption will not create in any third party (including account-holders)
any rights or remedies against Buyer which such party did not have against
Seller prior to the execution and delivery of this Assumption with respect to
the liabilities and obligations specifically assumed hereby.

By its execution of this Assumption, Buyer acknowledges that it has reviewed the
Deposit liabilities described above, and agrees to assume those liabilities upon
the terms contained in this Assumption and in the Agreement.

In the event of any conflict between the terms hereof and the terms of the
Agreement, the terms of the Agreement shall prevail.

This Assumption of Deposit Liabilities is executed to be effective as of 11:59
p.m. on ________________.

PEOPLE'S BANK OF CALIFORNIA,
A Federal Savings Bank

By: _______________________________

Its: _______________________________

By: _______________________________

Its: _______________________________

                                       36
<PAGE>

                                    EXHIBIT C

                               RETIREMENT ACCOUNTS
                               TRANSFER AGREEMENT

                                  Example Only

         This Agreement (the "Transfer Agreement") is made between FIDELITY
FEDERAL BANK, A FEDERAL SAVINGS BANK, a federally chartered savings bank
("Seller") and PEOPLE'S BANK OF CALIFORNIA, a federally chartered savings bank
("Buyer"). Capitalized terms not defined herein shall have the meanings assigned
to them in that certain Agreement to Purchase Assets and Assume Liabilities made
and entered into as of ___________ by and between Seller and Buyer (the
"Agreement"). Capitalized terms not otherwise defined herein shall have the
meanings ascribed to such terms in the Agreement.

                                    RECITALS
                                    --------

         A. Seller has served as trustee with respect to certain Retirement
Accounts, sponsored by the Western League of Savings Institutions or its
predecessor (the "League"), (collectively, the "Plans"), the funds of which are
domiciled at the Branch as defined in the Agreement.

         B. Pursuant to the Agreement, Buyer is acquiring from Seller certain
Deposits, including Deposits holding funds of the Plans.

         C. In connection with the acquisition of such Deposits, Buyer will
succeed to the trusteeship of the Plans and become successor trustee in the
place of Seller.

         D. The Parties deem it necessary and advisable to execute this Transfer
Agreement in order to describe the terms of transfer of the Plans and the duties
and responsibilities of the Parties with regard thereto.

         E. Execution of this Transfer Agreement is a condition to and an
element of the consideration for the execution by the Parties of the Agreement.

                            (continued on next page)

                                       37
<PAGE>

         Now, therefore, in consideration of premises stated, above, the mutual
promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which the Parties hereby acknowledge, the Parties
hereby agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

1.1 With respect to the sale of certain Assets and the assumption of certain
liabilities relating to the Branch, resigning trustee shall mean Seller and
successor trustee shall mean Buyer.

                                    ARTICLE 2

2.1 As of the Closing Date, or such other date and time as the Parties may fix
(the "Transfer Date"), the resigning trustee shall assign, transfer and deliver
to the successor trustee as set forth in the Agreement, funds and Deposits,
domiciled in resigning trustee's Branch. Furthermore, at least ten (10) days
prior to the Closing Date, the resigning trustee shall request the League to
remove the resigning trustee as trustee of such Plans and appoint the successor
trustee effective as of the Closing Date.

2.2 Prior to the Transfer Date, the successor trustee shall notify participants
of each Plan acquired by successor trustee of the removal of the resigning
trustee as trustee and appointment of the successor trustee.

2.3 After the Transfer Date, the successor trustee shall not accept any new
plans naming the resigning trustee as trustee, nor shall the successor trustee
use any advertising, materials, plan documents, or any other printed matter
referring to the resigning trustee as trustee of any Retirement Accounts
sponsored by the League.

2.4 The resigning trustee shall prepare and file all required year-end reports
for all activity under the Plans transferred to successor trustee, including,
but not limited to, IRS form 1099R and IRS form 5498 for the portion of the
calendar year 1999 to and including the Transfer Date. The successor trustee
shall prepare and file such reports, where applicable, for the balance of the
calendar year 1999 and thereafter, so long as the successor trustee remains as
the trustee. It is further agreed that the resigning trustee and successor
trustee will each report their portion of withholding for such Plans to the
appropriate state and federal agencies.

2.5 In the event that the resigning trustee receives, after the Transfer Date,
any documents, correspondence or other written materials relating to the Plans
transferred to successor trustee, the resigning trustee will forward such items
to the successor trustee with a written explanation of such items. The resigning
trustee agrees to answer reasonable inquiries from the successor trustee
pertaining to the Plans or to any pending transaction or items received after
the Transfer Date.

2.6 Annual Transaction and Trustee fees for 1999 shall be collected by the
Seller. Buyer shall not collect such fees for 1999. The successor trustee may
assess any fees per Plan for 2000 and thereafter pursuant to its own policies
and procedures.

2.7 On or before the Transfer Date, the resigning trustee shall deliver to the
successor trustee all original or legible certified copies of (i) all documents
executed by the depositors of the Plans to be transferred to successor trustee,
including, but not limited to, all adoption agreements, membership agreements,
plan amendments, and beneficiary forms, and (ii) all other records and
information necessary to allow the successor trustee to administer and conduct
business with respect to such Plans.

                                       38
<PAGE>

2.8 On or before the Transfer Date, the resigning trustee agrees to provide the
successor trustee with a complete and up-to-date listing of:

         (a) any and all participants of the Plans transferred to successor
trustee that have reached age 70-1/2 by 1999, and prior year balances required
for calculations of mandatory distributions;

         (b) any or all Plans at resigning trustee's Branch receiving periodic
distributions, the method of calculation for arriving at such amounts
distributed, and copies of the approved distribution forms:

         (c) any and all Plans on the resigning trustee's system on deposit at
the Branch;

         (d) any and all Plans at the resigning trustee's Branch currently not
exempted from either federal tax withholding or state tax withholding, or both,
and current filing status for each participant where withholding may apply; and

         (e) any and all Plans at resigning trustee's Branch where the Plan
participant has died and the date of death (if known) and a legible copy of the
death certificate when available.

2.9 The successor trustee agrees to indemnify and hold harmless the resigning
trustee, its Affiliates and successors from (i) any and all losses, costs
(including reasonable attorneys' fees), expenses, damages, liabilities or
penalties of every kind whatsoever that the resigning trustee, its Affiliates,
successors, directors, officers, employees, or agents may incur as a result of
the successor trustee's failure to perform its obligations under this Transfer
Agreement; and (ii) any penalties, taxes or other liabilities which might arise
in the event any act or omission by the successor trustee after the Transfer
Date results in disqualification of any Plan acquired from the resigning
trustee.

2.10 The resigning trustee agrees to indemnify and hold harmless the successor
trustee, its Affiliates and successors from any and all losses, costs (including
reasonable attorneys' fees), expenses, damages, liabilities, or penalties that
the successor trustee, its Affiliates, successors, directors, officers,
employees, or agents may incur as a result of any act, omission, or breach of
fiduciary obligation by the resigning trustee prior to the Transfer Date or in
fulfillment of its obligations under this Transfer Agreement.

2.11 After the Transfer Date, the successor trustee shall have no further
liability or obligation to the resigning trustee with respect to the Plans
transferred to the successor trustee, except as otherwise provided herein.

2.12 If any action or proceeding is brought by either Party against the other
pertaining to or arising out of this Transfer Agreement, the final prevailing
Party shall be entitled to recover all costs and expenses, including reasonable
attorneys' fees, incurred on account of such action or proceeding.

2.13 This Transfer Agreement may be executed in any number of counterparts, each
of which shall be an original but all of which constitute one and the same
instrument.

                                       39
<PAGE>

2.14 Resigning trustee shall retain documentation of Plan activity prior to the
Transfer Date for a period required by law for normal retention, and shall
retain responsibility for answering reasonable, written inquiries from the
successor trustee pertaining to Plan activity prior to the Transfer Date,
including (but not limited to) information relating to account histories and
Plan distributions, transfers and contributions.

2.15 Prior to the Transfer Date, resigning trustee shall ensure that all
accounts at the Branch, if any, under Plans that also have accounts not held at
the Branch, are transferred.

         Executed this _____ day of ___________________, 19 __

FIDELITY FEDERAL BANK,                              PEOPLE'S BANK OF CALIFORNIA,
A Federal Savings Bank                              A Federal Savings Bank

By: _______________________________                 By: ________________________

Its: _______________________________                Its: _______________________

                                                    By: ________________________

                                                    Its: _______________________

                                       40
<PAGE>

                                 EXHIBIT 8.14(a)
                                 ---------------

                          LANDLORD ESTOPPEL CERTIFICATE
                          -----------------------------

         The undersigned is the landlord ("Landlord") under that certain lease
dated June 30, 1978, by and between Aglor Investors, Ltd., a California limited
partnership and Fidelity Federal Savings and Loan Association, now known as
Fidelity Federal Bank ("Fidelity"), as amended, pertaining to that certain real
property located at 6350 Laurel Canyon Boulevard, Suite #100, North Hollywood,
California (the "Lease"). At the date of this Certificate, Landlord hereby
certifies that Fidelity is the tenant under the Lease ("Tenant") and that:

         1. Attached hereto is a true and correct copy of the Lease, which Lease
is now in full force and effect and has not been amended, modified,
supplemented, extended, renewed or assigned nor are there any understandings or
agreements between the Landlord and the Tenant relating to the demised premises,
except as set forth in Paragraph 4 below.

         2. The term of the Lease commenced on

         3. Subject to any renewal options set forth in the Lease, the term of
the Lease is for ___________ years. The Lease term shall expire on
_________________.

         4. The Lease has (initial one)

                  (_____) not been amended, modified, supplemented, extended,
renewed or assigned.

                  (_____) been amended, modified, supplemented, extended,
renewed or assigned by the following described agreements, copies of which are
attached hereto:

----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------

         5. Tenant has accepted and is now in possession of said premises.

         6. The amount of fixed monthly rent is $____________.

         7. The amount of security deposit is $____________. No other security
deposits have been made.

         8. Tenant is paying the full Lease rental, which has been paid in full
as of the date hereof. No rent under the Lease has been paid for more than 30
days in advance of its due date.

         9. Landlord has served no notice of default upon Tenant under the Lease
which default has not been cured and, to the best of Landlord's knowledge,
Tenant is not in default under the Lease.

         10. Landlord has no knowledge of any conditions or evidence which
either with or without the giving of notice or the lapse of time, or both, would
be a default under the Lease by Landlord or by the Tenant.

                                       41
<PAGE>

         11. Landlord has no knowledge of any failure by the Tenant to perform
any of its obligations under the Lease. All provisions of the Lease and the
amendments thereto (if any) referred to above are hereby ratified.

DATED: _______________________
                                           "Landlord"

                                           By:
                                                ----------------------------

                                           Name
                                                ----------------------------

                                           Title:
                                                ----------------------------

                                       42
<PAGE>

                                 EXHIBIT 8.14(b)

             ASSIGNMENT AND ASSUMPTION OF LEASE AND LANDLORD CONSENT
             -------------------------------------------------------

         This Assignment and Assumption of Lease and Landlord Consent
("Assignment") is entered into effective as of the close of business on
___________, 1999 by and between People's Bank of California, a federal savings
bank ("Assignee") and Fidelity Federal Bank ("Assignor").

                                    RECITALS
                                    --------

         A. Assignor is the current tenant under that certain Lease dated June
30, 1978 by and between Aglor Investors, Ltd., a California limited partnership
("Landlord") and Fidelity Federal Savings and Loan Association, now known as
Fidelity Federal Bank, as amended (the "Lease"). The Lease governs certain
premises in the County of Los Angeles, State of California, commonly known as
6350 Laurel Canyon Boulevard, Suite #100, North Hollywood, California (the
"Premises").

         B. Assignor desires to assign the tenant's interest in the Lease to
Assignee and Assignee desires to accept such assignment of the Lease and to
assume the obligations of the tenant thereunder.

                                    AGREEMENT
                                    ---------

         NOW, THEREFORE, the parties agree as follows:

         1. Conditioned upon Landlord's execution of the Consent set forth
below, Assignor hereby assigns all of Assignor's right, title and interest under
the Lease to Assignee, and Assignee hereby accepts such assignment and agrees to
assume each and every obligation of the tenant under the Lease arising or to be
performed after the date of this Assignment.

         2. Assignor shall indemnify and hold Assignee harmless from and against
any and all loss, cost or liability, including without limitation, attorneys'
fees, for obligations to be performed by the tenant under the Lease on or before
the date of this Assignment.

         3. Assignee shall indemnify and hold Assignor harmless from and against
any and all loss, cost or liability, including without limitation, attorneys'
fees, for obligations to be performed by the tenant under the Lease after the
date of this Assignment.

         4. In the event either party shall commence an action to enforce or
interpret any of the provisions of this Assignment, the prevailing party in such
action shall be entitled to reimbursement from the other party of all costs and
expenses, including reasonable attorneys' fees, incurred in connection
therewith.

         5. This Assignment shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns.

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

                                       43
<PAGE>

                             Assignee:

                             PEOPLE'S BANK OF CALIFORNIA, a federal savings bank

                             By:
                                   -----------------------------------
                             Its:
                                   -----------------------------------
                             By:
                                   -----------------------------------
                             Its:
                                   -----------------------------------

                             Assignor:

                             FIDELITY FEDERAL BANK, a federal savings bank

                             By:
                                   -----------------------------------
                             Its:
                                   -----------------------------------

                                       44
<PAGE>

                          LANDLORD'S CONSENT & RELEASE
                          ----------------------------

Landlord hereby consents to the foregoing assignment and assumption of the
Lease, releases Assignor from any and all obligations to be performed by the
tenant under the Lease after the date of such assignment and agrees to look
solely to Assignee for performance of the obligations of the tenant under the
Lease accruing after the date of such assignment. Landlord acknowledges that
People's Bank of California shall have all of the rights as tenant under the
Lease, including without limitation, the right to extend the term of the Lease
as provided therein. This consent and release is given as of the date first
above written.

                             Landlord:

                             Aglor Investors, Ltd., a California limited
                             partnership

                             By:
                                   -----------------------------------
                             Its:
                                   -----------------------------------

                                       45Exhibit 10.11

                        PURCHASE AND ASSUMPTION AGREEMENT

                         Dated as of December 11th, 2000

                                     Between

                  Fidelity Federal Bank, A Federal Savings Bank

                                       And

--------------------------------------------------------------------------------

                            Household Bank (SB), N.A.

--------------------------------------------------------------------------------
<PAGE>

Article 1                  - DEFINITIONS                                    1

         1.1      Definitions                                               1

         1.2      Construction                                              7

Article 2                  - PURCHASE AND SALE OF ACQUIRED ASSETS           7

         2.1      Acquired Assets                                           7

         2.2      Assumed Liabilities                                       8

         2.3      Purchase Price                                            8

         2.4      Hold Back Amount                                          8

         2.5      Allocation of Purchase Price                              8

         2.6      Use of Name and Trademarks                                9

         2.7      Seller's Repurchase Obligations                           9

         2.8      Repurchase Price                                          10

         2.9      Exclusive Remedy                                          10

         2.10     Continued Processing                                      11

Article 3                  - THE CLOSING                                    11

         3.1      The Closing                                               11

         3.2      Documents and Certificates                                11

         3.3      Valuation Date Statement                                  12

         3.4      Payments on the Closing Date                              12

         3.5      Settlement Date Statement                                 12

         3.6      Payments on the Settlement Date                           12

         3.7      Post Closing Payments                                     13

         3.8      Payment of Hold Back Amount                               13

         3.9      Power of Attorney                                         14

         3.10     Dispute Resolution                                        14

Article 4                  - CONDITIONS OF CLOSING                          15

         4.1      Conditions Applicable to Purchaser                        15

         4.2      Conditions Applicable to Seller                           16

Article 5                  - REPRESENTATIONS AND WARRANTIES                 17

         5.1      Representations and Warranties of Seller                  17

         5.2      Representations and Warranties of Purchaser               21

  <PAGE>

Article 6                  - CERTAIN COVENANTS                              23

         6.1      Mutual Covenants and Agreements                           23

         6.2      Additional Covenants                                      25

         6.3      Covenants of Purchaser                                    28

Article 7                  - INDEMNIFICATION                                29

         7.1      Seller's Indemnification Obligations                      29

         7.2      Purchaser's Indemnification Obligations                   29

         7.3      Definition of Losses                                      29

         7.4      Procedures                                                30

Article 8                  - TERMINATION                                    32

         8.1      Termination by Either Party                               32

         8.2      Effect of Termination                                     33

Article 9                  - MISCELLANEOUS                                  33

         9.1      Survival of Representations and Warranties                33

         9.2      Notices                                                   33

         9.3      Assignment                                                34

         9.4      Entire Agreement                                          34

         9.5      Amendments and Waivers                                    34

         9.6      Expenses                                                  35

         9.7      Captions; Counterparts                                    35

         9.8      Governing Law                                             35

         9.9      Severability                                              35

         9.10     Independent Contractors                                   35

         9.11     No Joint Venture                                          35

         9.12     Attorneys' Fees                                           35

         9.13     Regulatory Approval                                       35

         9.14     Dispute Resolution                                        36

<PAGE>

                        PURCHASE AND ASSUMPTION AGREEMENT

This Purchase and Assumption Agreement (the "Agreement") is made and entered
into as of the 11th day of December , 2000 by and between Fidelity Federal Bank,
A Federal Savings Bank, a federally chartered savings bank ("Seller"), and
Household Bank (SB), N.A., a national banking association ("Purchaser").

                                   WITNESSETH
                                   ----------

         A. Seller and Purchaser are parties to a Purchase and Assumption
Agreement dated as of June 2, 2000 pursuant to which (A) Seller sold to
Purchaser, and Purchaser purchased from Seller (i) certain credit card
receivables related to the MMG Portfolio, as defined therein; (ii) the Fixed
Assets located at the Beaverton Operations Center, as defined therein, and
certain other assets, and (B) Purchaser assumed certain liabilities (such
agreement, the "Prior Sale Agreement", and such transaction, the "Prior Sale").

         B. In connection with the Prior Sale, Seller and Purchaser entered into
a (i) Servicing Agreement pursuant to which Purchaser agreed to service certain
credit card receivables described herein as the ADC Portfolio (the "Servicing
Agreement") and (ii) an Escrow Agreement.

         C. Seller now wishes to sell to Purchaser, and Purchaser wishes to
purchase from Seller, the ADC Portfolio. In connection with such transaction,
Seller and Purchaser wish to terminate, effective on the Closing Date, as
defined herein, the Servicing Agreement. In addition, effective on the Closing
Date, Seller and Purchaser wish to amend the Prior Sale Agreement and the Escrow
Agreement to provide for a hold back amount, and treatment thereof, which is
consistent with this Agreement.

         D. The Seller and Purchaser are entering into this Agreement to reflect
the terms and conditions relating to the sale and purchase of accounts
comprising the ADC Portfolio, and related receivables.

                            ARTICLE 1 - DEFINITIONS
                            -----------------------

1.1      Definitions. Except as otherwise specifically indicated, the following
         terms shall have the meanings specified herein.

         "Accountants" shall have the meaning specified in SECTION 3.10.

         "Account Representations and Warranties" shall mean the representations
         and warranties set forth in SECTIONS 5.1(d) (to the extent such
         representation and warranty relates to an Account), (f), (g), (h) (i),
         (j), (k), (l) (o), (p) AND (q).

         "Accounts" shall mean all accounts that are part of the ADC Portfolio
         that are identified by name and account number on the computer tape of
         accounts generated as of the close of processing on the day immediately
         preceding the Closing Date and reflected in the aggregate on the
         relevant CD-121 report for such day (the "Accounts Tape"), excluding
         any Charged-Off Account, any Alabama Opt-Out Account and any
         Mississippi Account.

                                       1
<PAGE>

         "Accrued Interest" shall mean the aggregate amount of periodic finance
         charges not posted to the Accounts as of the relevant time, but which
         was earned up to and including the relevant time and which will be
         posted to the Accounts at the end of the respective billing cycles
         immediately following the relevant time.

         "Acquired Assets" shall have the meaning specified in SECTION 2.1.

         "ADC" shall mean American Direct Credit, LLC.

         "ADC Portfolio" shall mean all credit card accounts originated under
         the Seller's agreement with ADC dated March 5, 1997, as amended, and
         included on the Seller's servicing system as bank identified number
         ("BIN") 549062.

          "Affiliate" shall mean, with respect to any person, corporation or
         entity, any other person, corporation or entity that directly or
         indirectly controls, is controlled by or is under common control with
         such person, corporation or entity.

         "Alabama Class Action" shall mean the case entitled ELOISE MITCHELL, ET
         AL. v A & P DISTRIBUTING, ET AL. pending in the Circuit Court of Sumter
         County, State of Alabama.

         "Alabama Opt-Out Account" shall mean an account with respect to which
         the Cardholder (i) is a member of the plaintiff class in the Alabama
         Class Action and (ii) has elected to opt out of the proposed settlement
         in the Alabama Class Action.

         "Agreement" shall have the meaning specified in the Introduction.

         "Assignment and Assumption Agreement" shall have the meaning specified
         in SECTION 3.2.

         "Assumed Liabilities" shall have the meaning specified in SECTION 2.2.

         "Bank Plus" shall mean Bank Plus Corporation, a Delaware corporation,
         the corporate parent of Seller.

         "Bankrupt Account" shall mean an Account that fits one or more of the
         following descriptions as of the Cut-Off Time:

                  (i)      is identified on the Seller's processing system as an
                           external status code "B"; or

                  (ii)     the Cardholder has filed bankruptcy, the filing date
                           occurred after the Account open date and before the
                           Cut-Off Time and the bankruptcy proceeding has not
                           been dismissed before the Closing Date.

                                       2
<PAGE>

         "Books and Records" shall mean all books and records, if any, in the
         possession of Seller or Seller's processor relating to the Acquired
         Assets, including all existing records, applications for Accounts,
         cardholder agreements, disclosure statements, acceptance certificates
         for prescreened offers, periodic statements, credit and collection
         files, file maintenance data and correspondence, and other records
         relating to the Acquired Assets whether in documentary form or on
         microfilm, microfiche, magnetic tape, computer disk or other form.

         "Business Day" shall mean each day other than Saturday, Sunday or a day
         on which banking institutions in the State of California are authorized
         or obligated by law or regulation to close.

         "Cardholder" shall mean an applicant in whose name an Account was
         established or is maintained.

         "Cardholder Agreement" shall mean an agreement between Seller and a
         Cardholder containing the terms and conditions of the relevant Account.

         "Charged-Off Account" shall mean an Account that fits one of the
         following descriptions as of the Cut-Off Time:

                  (i)      any Account which has been identified on the Seller's
                           processing system with the external status code "Z";

                  (ii)     any Account with a balance that is equal to or more
                           than 180 days contractually delinquent;

                  (iii)    any Account that is not statused as charged-off on
                           the Seller's processing system but should have been
                           so statused prior to the Cut-Off Time in accordance
                           with the Policies and Procedures.

         "Closing" shall have the meaning specified in SECTION 3.1.

         "Closing Date" shall have the meaning specified in SECTION 3.1.

         "Closing Time" shall have the meaning specified in SECTION 3.1.

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

         "Conversion Date" shall mean the date on which processing of the
         Accounts is transferred to Purchaser or its agent.

         "Covered Account" shall have the meaning specified in SECTION 2.7.

                                       3
<PAGE>

         "Credit Balances" shall mean all balances owing by Seller to
         Cardholders on Accounts as of the relevant date.

         "Credit Card" shall mean a MasterCard credit card issued by Seller to a
         Cardholder.

         "Credit Card Marks" shall mean such trademarks and service marks of
         Seller as have been used in connection with the Accounts, provided that
         such term shall not include trademarks or service marks of ADC,
         MasterCard or any network.

         "Credit Card Receivables" shall mean all amounts owing, whether or not
         billed, to Seller by Cardholders with respect to Accounts, including
         extensions of credit, accrued and posted periodic finance charges, and
         any other charges and fees assessed on said Accounts, plus Accrued
         Interest at the relevant time.

         "Current Policies and Procedures" shall mean the Policies and
         Procedures as in effect on the date of this Agreement.

         "Cut-Off Time" shall mean 11:59 P.M. on the Closing Date.

         "Deceased Account" shall mean an Account that fits one or more of the
         following descriptions as of the Cut-Off Time:

                  (i)      any Account which has been identified on the Seller's
                           processing system in a type code credit rating or
                           user status code as deceased; or

                  (ii)     any Account for which the Cardholder has died before
                           the Cut-Off Time, as evidenced by a death certificate

         "Escrow Holder' shall mean Bank One Trust Company, National
         Association, or any successor thereto.

         "Escrow Agreement" shall mean the Escrow Agreement between Escrow
         Holder, Seller and Purchaser relating to the Prior Sale, amended to
         comply with the provisions of this Agreement.

         "Escrow Amendment" shall have the meaning specified in SECTION 3.2.

         "Estimated Liquidated Amount" shall have the meaning specified in
         SECTION 3.8.

         "Excluded Account" shall mean, as of the Cut-Off Time, any Account that
         does not comply with the representations and warranties contained in
         this Agreement, and:

                  (i)      Any Account which as of the Cut-Off Time is, or
                           should have been, classified as fraud/stolen ("U"),
                           which was generated from fraud activity perpetrated
                           prior to the Cut-Off Time;

                                       4
<PAGE>

                  (ii)     Any Account the outstanding balance of which are
                           classified, or should have been classified by Seller,
                           as of the Cut-Off Time, as one hundred twenty (120)
                           days or more past due; and

                  (iii)    Any Account classified, or that should have been
                           classified by Seller, as of the Cut-Off Time, as a
                           Bankrupt Account, a Lost Account, or a Deceased
                           Account.

         "FDR" shall mean First Data Resources Inc.

         "FDR Agreement" shall mean that certain Service Agreement between FDR
         and Seller dated October 14, 1999.

         "Federal Funds Rate" shall mean, for any period during which the
         Federal Funds Rate is to be charged pursuant to this Agreement, the
         average of the high and low "Federal Funds" interest rates for any day
         (or the previous business day if such day is not a business day),
         excluding the day that payment is made, as such rate is reported on the
         following business day in the Money Rates Column of the Wall Street
         Journal or as determined in such other mutually acceptable manner as
         the parties agree if the Wall Street Journal is no longer reporting
         such rate.

         "Hold Back Amount" shall mean an amount equal to $4,285,000, which
         amount shall replace the hold back amount required under the Prior Sale
         Agreement, plus an additional amount equal to 15% of the Purchase Price
         under this Agreement. It is the intent of this Agreement that the Hold
         Back Amount shall be an aggregate amount which covers liabilities under
         this Agreement, the Prior Sale Agreement and the Servicing Agreement
         (to the extent such liabilities survive the termination of the
         Servicing Agreement).

         "Indemnified Party" shall have the meaning specified in SECTION 7.4(a).

         "Indemnifying Party" shall have the meaning specified in SECTION
         7.4(a).

         "Losses" shall have the meaning specified in SECTION 7.3.

         "Lost Account" shall mean an Account which as of the Cut-Off Time is
         identified on the Seller's processing system with the external status
         code "L".

         "MasterCard" shall mean MasterCard International Incorporated.

         "Mississippi Account" shall mean an Account as to which, as of June 30,
         2000, the Cardholder was a resident of Mississippi, or, which is
         demonstrated by a Cardholder to have been originated at the time the
         Cardholder was a resident of Mississippi.

         "Operating Regulations" shall mean the by-laws, rules and regulations
         of MasterCard.

                                       5
<PAGE>

         "Policies and Procedures" shall mean the written policies and
         procedures of Seller relating to the Accounts, as in effect from time
         to time.

         "Post Closing Payments" shall have the meaning specified in SECTION
         3.7.

         "Prior Sale" shall have the meaning specified in Recital A.

         "Prior Sale Agreement" shall have the meaning specified in Recital A.

         "Prior Sale Amendment" shall have the meaning specified in SECTION 3.2.

         "Prior Closing Date" shall mean June 30, 2000, the closing date of the
         Prior Sale.

         "Protected Party" shall have the meaning specified in SECTION 6.1(c).

         "Purchase Price" shall have the meaning specified in SECTION 2.3.

         "Purchaser" shall have the meaning specified in the Introduction.

         "Related Agreements" shall mean the Assignment and Assumption
         Agreement, the Escrow Agreement Amendment, and the Prior Sale Agreement
         Amendment.

         "Repurchase Price" shall have the meaning specified in SECTION 2.8.
         "Seller" shall have the meaning assigned in the Introduction.

         "Servicing Agreement" shall have the meaning specified in Recital B.

         "Servicer" shall mean the Purchaser in its capacity under the Servicing
         Agreement.

         "Settlement Date" shall mean the date (not later than sixty (60) days
         after the Closing Date) on which the parties make any adjustment to the
         Purchase Price and the corresponding payment.

         "Settlement Date Statement" shall mean a statement, substantially in
         the form of EXHIBIT A attached hereto, which contains a computation of
         the Purchase Price as of the Closing Date.

         "Tax" shall mean any federal, state, local or foreign net income, gross
         income, gross receipts, windfall profit, severance, property,
         production, sales, use, license, excise, franchise, employment,
         payroll, withholding, alternative or add-on minimum, ad valorem, value
         added, transfer, stamp, or environmental tax, or any other tax, custom,
         duty, governmental fee or other like assessment or charge of any kind
         whatsoever, together with any interest or penalty, addition to tax or
         additional amount imposed by any governmental authority.

                                       6
<PAGE>

         "Total Estimated Liquidated Amount of Damages" shall mean the sum of
         any Estimated Liquidated Amount relating to any claim or claims for
         indemnification for which notice has been given by Purchaser pursuant
         to SECTION 7.4(a) of this Agreement or the Prior Sale Agreement or
         pursuant to SECTION 12.3(A) of the Servicing Agreement between the
         Closing Date and the relevant date.

         "Unauthorized Use" shall mean use that was made by a person other than
         the Cardholder who did not have actual, implied or apparent authority
         for such use of the Account and from which the Cardholder received no
         benefit.

         "Valuation Date" shall mean the close of business on the fifth Business
         Day prior to the Closing Date or such other date as the parties may
         mutually agree.

         "Valuation Date Statement" shall mean a statement, substantially in the
         form of EXHIBIT B attached hereto and incorporated herein, which
         contains a good faith computation of the Purchase Price (based, in the
         case of the Accounts, on a computer printout relating to the Accounts,
         and including estimated Accrued Interest), excluding the Post Closing
         Payments described in SECTION 3.7, as of the Valuation Date.

1.2      CONSTRUCTION. Unless the context otherwise clearly indicates, words
         used in the singular include the plural and words used in the plural
         include the singular. The Schedules and Exhibits referred to herein
         shall be construed with and as an integral part of this Agreement to
         the same extent as if they were set forth verbatim herein.

                ARTICLE 2 - PURCHASE AND SALE OF ACQUIRED ASSETS
                ------------------------------------------------

2.1      ACQUIRED ASSETS. (a) On the Closing Date, Purchaser agrees to purchase
         from Seller, and Seller agrees to sell, convey, assign and transfer to
         Purchaser, all of Seller's right, title and interest in, to and under
         the following assets and the following rights and privileges granted by
         Seller, as the same exist on the Closing Date:

                  (i)      the Accounts;

                  (ii)     the Credit Card Receivables;

                  (iii)    the Credit Cards with respect to the Accounts;

                  (iv)     the plastic stock, statement stock and related
                           materials relating to the Accounts; and

                  (v)      the MasterCard bank identified number 549062.

         (b)      The items described in SECTION 2.1(a), are hereinafter
                  sometimes referred to as the "Acquired Assets".

                                       7
<PAGE>

2.2      ASSUMED LIABILITIES. On and after the Closing Date, Purchaser shall
         assume and perform and discharge the following obligations of Seller
         with respect to the Acquired Assets (collectively, the "Assumed
         Liabilities"): (i) the obligation to pay fees and assessments to
         MasterCard on the Accounts accruing on and after the Closing Date; (ii)
         all of Seller's obligations under the Operating Regulations with
         respect to the Accounts, including any obligations relating to the bank
         identified number; (iii) all of Seller's obligations under the
         Cardholder Agreements, except the obligation to pay Credit Balances,
         and (iv) all of the obligations assumed by Purchaser under SECTION 2.10
         of this Agreement. Except as expressly set forth in this Agreement,
         Purchaser shall not be deemed to have assumed any other liability or
         obligation of the Seller. Without limiting the generality of the
         foregoing, Purchaser does not assume, and nothing in this Agreement
         shall be deemed to evidence any intent to assume, and the term Assumed
         Liabilities does not include, any Taxes for which Seller is liable
         under SECTION 6.2(f) or SECTION 9.6.

2.3      PURCHASE PRICE. The purchase price for the Acquired Assets (the
         "Purchase Price") shall be an amount, determined as of the Cut-Off
         Time, equal to (a) 44% multiplied by an amount equal to the total
         amount of all Credit Card Receivables except for Credit Card
         Receivables with respect to Excluded Accounts minus (b) six hundred
         thousand dollars ($600,000).

2.4      HOLD BACK AMOUNT. In order to (A) provide for a source of funds to
         indemnify and defend Purchaser and its Affiliates and their respective
         stockholders, officers, directors and employees (i) pursuant to Section
         7.1 of each of this Agreement and the Prior Sale Agreement and (ii)
         pursuant to SECTION 12.2 of the Servicing Agreement and (B) to secure
         Seller's obligations to repurchase or adjust the purchase price in
         respect of Covered Accounts pursuant to SECTION 2.7 of each of this
         Agreement and the Prior Sale Agreement, Purchaser shall deposit from
         the Purchase Price hereunder with the Escrow Holder on the Closing Date
         an amount equal to the difference between the amount in Escrow on the
         day prior to the Closing Date and the Hold Back Amount. The Hold Back
         Amount shall be held by the Escrow Holder pursuant to the terms of an
         Escrow Agreement as amended and restated in the form attached hereto as
         EXHIBIT E and shall be payable to Seller as provided in SECTION 3.8.

2.5      ALLOCATION OF PURCHASE PRICE. The Purchaser and Seller agree that the
         Purchase Price shall be allocated among the Acquired Assets (and
         adjusted on the Settlement Date to reflect any post-closing adjustments
         as described in Article III hereof) as set forth on SCHEDULE 2.5
         attached hereto and in accordance with Section 1060 of the Code and the
         regulations promulgated thereunder, the fair market values as set forth
         in SCHEDULE 2.5 having been agreed to by the parties. Purchaser and
         Seller will file all tax returns and other tax related schedules and
         documents required to be filed by them in accordance with those fair
         market values and allocations, and will not adopt or otherwise assert
         tax positions inconsistent therewith. Notwithstanding the foregoing, in
         the event the Internal Revenue Service challenges any position taken by
         the parties hereto, the party against which a challenge is made may
         settle or litigate such challenge without the consent of, or liability
         to, the other parties.

                                       8
<PAGE>

2.6      USE OF NAME AND TRADEMARKS.

         (a)      LIMITED LICENSE. On and after the Closing Seller grants to
                  Purchaser a limited, nonexclusive, nontransferable except as
                  to an Affiliate, nonsublicensable license to use, for the time
                  and subject to the limitations set forth herein (i) to use the
                  name of Seller and the Credit Card Marks on periodic
                  statements for as long as statement stock exists at FDR but in
                  no event more than six (6) months; and (ii) to use the name of
                  Seller (but not the Credit Card Marks) to identify the former
                  owner of the Accounts in connection with customer service and
                  collection purposes until two (2) years from the Closing Date.
                  Purchaser and such Affiliate shall use the Credit Card Marks
                  in accordance with such license solely in the forms and
                  formats currently in use for Credit Cards, periodic statements
                  and communications, or in the forms and formats and on such
                  forms as Seller shall approve in writing prior to any such
                  use, which approval shall not be unreasonably withheld.
                  Purchaser shall not have any obligation to recall Credit Cards
                  using the name of Seller or the Credit Card Marks. Purchaser
                  agrees that it shall not use the name of Seller, or the Credit
                  Card Marks except as permitted under this SECTION 2.6.

         (b)      RIGHTS RESERVED BY SELLER. It is expressly agreed that
                  Purchaser is not purchasing or acquiring any right, title or
                  interest in the Credit Card Marks. Purchaser acknowledges that
                  Seller exclusively owns the Credit Card Marks and goodwill
                  related thereto and symbolized thereby. Purchaser shall not
                  combine the Credit Card Marks with any other mark or term, and
                  shall not use the Credit Card Marks in any manner which will
                  materially damage or diminish Seller's goodwill. Purchaser
                  shall immediately upon receipt of written notice from Seller,
                  which notice shall provide detailed and legally sufficient
                  information about inconsistent usage of the Credit Card Marks,
                  cease any act or practice that has or is likely to materially
                  damage or diminish the goodwill of Seller or its Affiliates.

2.7      SELLER'S REPURCHASE OBLIGATIONS. After the Closing Date, in the event
         any Account acquired hereunder by Purchaser is a Mississippi Account,
         an Alabama Opt-Out Account or an Account which should have been
         classified as an Excluded Account (each such Account, a "Covered
         Account"), Purchaser may, from time to time (but no more frequently
         than once each quarter), on or before the date which is one year after
         the Closing Date, (i) in the case of a Covered Account which is a
         Mississippi Account or an Alabama Opt-Out Account or as to which a
         representation and warranty has been breached, request that Seller
         repurchase such Covered Account (and all other Acquired Assets relating
         to such Covered Account) and Seller shall repurchase such Account (and
         all other Acquired Assets relating to such Covered Account) for an
         amount equal to the Repurchase Price set forth in SECTION 2.8; and (ii)

                                       9
<PAGE>

         in the case of a Covered Account which should have been classified as
         an Excluded Account on the Closing Date, reduce the Purchase Price by
         an amount equal to the Repurchase Price: PROVIDED, however, that Seller
         shall not be required to effect such repurchase or adjustment until the
         sum of such adjustments and repurchases, and any prior adjustments or
         payments of the Repurchase Price, is in excess of $25,000, at which
         time Seller shall be required to repurchase all such Covered Accounts
         or adjust the Purchase Price with respect to all such Covered Accounts.
         Notwithstanding the foregoing, Seller shall be required to repurchase
         all Mississippi Accounts and all Alabama Opt-Out Accounts without
         regard to the financial floor. Requests to repurchase Covered Accounts
         or adjust the Purchase Price may be made during the period from the
         Closing Date until the date which is one year after the Closing Date.
         On the Settlement Date, or if such request is made later than four
         Business Days before the Settlement Date, then within twenty days after
         the receipt from Purchaser of a list of Covered Accounts to be
         repurchased, Seller shall deliver to Purchaser an amount equal to the
         aggregate Repurchase Price for such Covered Accounts. If despite its
         best efforts Seller is unable to deliver such amount within twenty days
         after such request, Purchaser shall provide Seller with written notice
         of default, and, upon Seller's failure to repurchase or adjust the
         Purchase Price within five (5) days of such notice, Purchaser may
         secure the disbursement of such funds from the Escrow Holder in
         accordance with the Escrow Agreement.

2.8      REPURCHASE PRICE. The Repurchase Price for a Covered Account (the
         "Repurchase Price") shall be equal to 44% of the outstanding balance of
         such Covered Account as of the Cut-Off Time, unless Purchaser did not
         pay for such Covered Account, in which case the Repurchase Price shall
         be equal to 0% of the outstanding balance of such Covered Account as of
         the Cut-Off Time, less any payment received with respect thereto by
         Purchaser between the Closing Date and the date of repurchase, plus
         purchases and cash advances made with respect thereto by Purchaser
         between the Closing Date and the date of repurchase. If the Repurchase
         Price is a negative amount, Purchaser shall pay Seller such amount.
         Upon payment of the Repurchase Price as set forth herein with respect
         to an account which has been repurchased, Purchaser shall deliver to
         Seller all files and Books and Records relating to such repurchased
         Covered Account and shall execute and deliver such instruments of
         transfer or assignment, in each case without recourse, as shall be
         necessary to revest in Seller title to such repurchased Covered Account
         on the same basis owned by Seller immediately prior to the Closing
         Date.

2.9      EXCLUSIVE REMEDY. Repurchase of an account or adjustment of the
         Purchase Price as set forth in SECTIONS 2.7 and 2.8 shall be the sole
         and exclusive remedy for any breach of an Account Representation and
         Warranty, except to the extent the indemnification provisions of
         ARTICLE 7 are available in the event of any Loss. Except as provided in
         the preceding sentence, the indemnification provisions of Article 7
         shall be the sole and exclusive remedy for any Loss.

                                       10
<PAGE>

2.10     CONTINUED PROCESSING. Prior to the Closing Date, Seller shall ensure
         the continued processing of the Accounts by FDR and EDS subject to the
         agreements currently in place between Seller and such parties and shall
         not amend such agreements without the prior written consent of
         Purchaser.

         (a)      FDR. Effective on the Closing Date, Seller shall assign and
                  Purchaser shall assume all rights and obligations of Seller
                  under the FDR Agreement; provided that Seller shall pay all
                  processing fees charged by FDR with respect to (i) the
                  processing of the ADC Portfolio prior to the Closing Date and
                  (ii) the processing of credit card accounts which are not
                  within the definition of Accounts.

         (b)      EDS. Purchaser shall pay all processing fees, excluding
                  minimum processing penalties and termination penalties,
                  charged by EDS directly related to the processing of the ADC
                  Portfolio. Seller shall maintain the existing agreement with
                  EDS in full force and effect up to and including April 30,
                  2001. Seller shall obtain from EDS any required consent or
                  nonobjection of EDS to Purchaser's full participation rights
                  and access, including without limitation any consent or
                  nonobjection required to permit Purchaser to convert payment
                  processing to Purchaser at any time without the imposition of
                  a penalty on Purchaser, and assistance from EDS for such
                  conversion, and right to audit EDS.

                            ARTICLE 3 - THE CLOSING
                            -----------------------

3.1      THE CLOSING. Subject to the satisfaction or waiver of all conditions
         set forth in ARTICLE 4, the closing of the transactions contemplated
         herein (the "Closing") shall be by facsimile transmission (FAX) at 11
         a.m. Pacific Time on December 29, 2000, or at such other time, place
         and manner as may be mutually agreed by the parties hereto (such time
         and date being referred to herein as the "Closing Time" and the
         "Closing Date," respectively).

3.2      DOCUMENTS AND CERTIFICATES. At the Closing, Seller shall deliver to
         Purchaser, and Purchaser shall deliver to Seller, (i) an agreement (the
         "Assignment and Assumption Agreement") which conveys to Purchaser all
         of Seller's rights, title and interest in and to the Acquired Assets to
         be transferred thereby and under which Purchaser shall assume the
         Assumed Liabilities; (ii) an amendment to the Prior Sale Agreement
         which effects modifications to the amount and treatment of the Hold
         Back Amount described therein (the "Prior Sale Amendment"); (iii) an
         amendment to the Escrow Agreement which instructs the Escrow Holder
         with respect to the foregoing matters (the "Escrow Amendment"); and an
         instrument terminating the rights and obligations of the parties to the
         Servicing Agreement (the "Servicing Termination"). The Assignment and
         Assumption Agreement, Prior Sale Amendment, Escrow Amendment and
         Servicing Termination shall be in the forms of Exhibit C, D, E and F
         attached hereto and shall be dated the Closing Date, appropriately
         completed and duly executed. Seller, Purchaser and FDR shall execute
         all required documentation relating to the assignment and assumption by
         Purchaser of the FDR Agreement. Seller shall execute and deliver all
         such additional instruments, documents or certificates as may be
         reasonably requested by Purchaser for the consummation at the Closing
         of the transactions contemplated by this Agreement.

                                       11
<PAGE>

3.3      VALUATION DATE STATEMENT. Servicer shall use its reasonable best
         efforts to deliver to Purchaser the Valuation Date Statement, along
         with the appropriate reports and other supporting calculations, as soon
         as possible after the Valuation Date. Seller shall have the right to
         review the Valuation Date Statement, together with any supporting
         documents reasonably requested by Purchaser to verify the accuracy and
         completeness of the valuations set forth therein and the Valuation Date
         Statement shall be revised by Servicer to reflect any corrections
         agreed to by Servicer and Seller.

3.4      PAYMENTS ON THE CLOSING DATE. On the Closing Date, Purchaser shall pay
         Seller an amount equal to (i) the Purchase Price (excluding the Post
         Closing Payments described in SECTION 3.7) based on the Valuation Date
         Statement less (ii) the amount equal to the difference between the
         amount in Escrow on the day prior to the Closing Date and the Hold Back
         Amount. Payment to Seller on the Closing Date shall be made by a
         Fedwire transfer no later than 11 a.m. Pacific Time in immediately
         available U.S. dollars to an account designated in writing by Seller.

3.5      SETTLEMENT DATE STATEMENT. Purchaser shall use its reasonable best
         efforts to deliver to Seller the Settlement Date Statement as soon as
         possible but at least five (5) Business Days prior to the Settlement
         Date. Seller shall have the right to review the Settlement Date
         Statement, together with any supporting documents reasonably requested
         by Seller to verify the accuracy and completeness of the valuations set
         forth therein and the Settlement Date Statement shall be revised by
         Purchaser to reflect any corrections agreed to by Purchaser and Seller.

3.6      PAYMENTS ON THE SETTLEMENT DATE. If the Purchase Price for the Acquired
         Assets as reflected on the Settlement Date Statement is greater than
         the Purchase Price paid by Purchaser on the Closing Date, then
         Purchaser shall remit the difference to Seller, together with interest
         on such amount at the Federal Funds Rate divided by three hundred sixty
         (360) for each day during the period from the Closing Date to the
         Settlement Date. If the Purchase Price for the Acquired Assets as
         reflected on the Settlement Date Statement is less than the Purchase
         Price paid by Purchaser on the Closing Date, then Seller shall remit
         the difference to Purchaser together with interest on such amount at
         the Federal Funds Rate divided by three hundred sixty (360) for each
         day during the period from the Closing Date to the Settlement Date.
         Payments shall be remitted no later than 11 a.m. Pacific Time by a
         Fedwire transfer in immediately available U.S. dollars to an account
         designated by the party to which payment is due.

                                       12
<PAGE>

3.7      POST CLOSING PAYMENTS. (a) If (i) Seller is debited by MasterCard after
         the Cut-Off Time for a chargeback in respect of which Seller provided a
         Cardholder a credit on an Account prior to the Cut-Off Time, or (ii) a
         check from a Cardholder in payment of amounts owed on an Account, which
         was credited to such Account prior to the Cut-Off Time, is returned
         unpaid by the drawee after the Cut-Off Time, or (iii) Purchaser
         provides a credit on an Account with respect to Unauthorized Use of an
         Account prior to the Cut-Off Time, (iv) Purchaser provides a credit on
         an Account in connection with a transaction posted before the Cut-Off
         Time as a result of rights asserted by the Cardholder under 12 CFR
         ss.226.12(c) or 12 CFR ss.226.13(d), then an adjustment to the Purchase
         Price shall be made in favor of Seller (in the case of clause (i) or
         (ii)), Purchaser (in the case of clause (iii) or (iv)) in the amount of
         44% of such chargeback, check or credit or adjustment (as the case may
         be). The party with knowledge of the facts relating to such Accounts or
         amounts shall provide to the other party written notice and supporting
         documentation (to the extent available to such party) as promptly as
         practicable after discovery such facts. On the Settlement Date, or if
         such notice and supporting documentation is received by such party
         after the fourth Business Day before the Settlement Date, within five
         (5) Business Days after receipt of said notice, Seller or Purchaser, as
         the case may be, shall reimburse the other party, in immediately
         available funds, for the amount of said adjustment, together with
         interest on the reimbursed amount computed from and including the
         Closing Date through and excluding the date of reimbursements at an
         interest rate equal to the Federal Funds Rate divided by 360 for each
         day during such period. Notwithstanding the foregoing, the parties
         agree that this SECTION 3.7 shall be implemented fairly and equitably
         so as to avoid the double payment or failure to pay any amount which
         would result in the unjust enrichment of any party pursuant to the
         terms hereof.

3.8      PAYMENT OF HOLD BACK AMOUNT.

         (a)      The Escrow Agreement shall provide that upon the expiration of
                  two (2) years from the Closing Date, the remaining balance of
                  the Hold Back Amount held by the Escrow Holder shall be
                  remitted by the Escrow Holder to Seller; provided, however,
                  that there shall be retained in escrow an amount equal to the
                  Total Estimated Liquidated Amount of Damages under this
                  Agreement and the Prior Sale Agreement.

         (b)      An Estimated Liquidated Amount shall be proposed with respect
                  to a claim of indemnification by Purchaser in writing promptly
                  after the giving of notice of such claim pursuant to SECTION
                  7.4(a) of this Agreement or SECTION 12.3(A) of the Servicing
                  Agreement, and in no event later than the second anniversary
                  of the Closing Date. An Estimated Liquidated Amount shall be
                  proposed only with respect to, and be applicable only to,
                  claims actually asserted by third parties. Within five
                  Business Days of such proposal, Seller shall either accept
                  each such Estimated Liquidated Amount or reject such Estimated
                  Liquidated Amount and propose an alternative Estimated
                  Liquidated Amount. If Seller rejects the Purchaser's proposed

                                       13
<PAGE>

                  Estimated Liquidated Amount, or Purchaser rejects the Seller's
                  alternative Estimated Liquidated Amount, Seller and Purchaser
                  shall negotiate in good faith in an attempt to agree upon the
                  applicable Estimated Liquidated Amount, and if such parties
                  shall fail to agree for a period of ten Business Days, the
                  amount of the Estimated Liquidated Amount shall be subject to
                  dispute resolution in accordance with SECTION 9.14, and the
                  amount of such Estimated Liquidated Amount as determined in
                  accordance therewith shall be final. In no event shall the
                  Hold Back Amount or its payment in accordance with SECTION 3.8
                  be deemed to limit the time in which Purchaser may bring a
                  claim, or the amount of claims that Purchaser may bring, under
                  this Agreement. Purchaser and Seller shall account to one
                  another with respect to actual costs and liabilities incurred
                  with respect to a claim for indemnification as to which an
                  Estimated Liquidated Amount has been fixed. In the event
                  actual costs expended with respect to such a claim for
                  indemnification are less than such Estimated Liquidated
                  Amount, then at the time such indemnification claim is finally
                  resolved, and provided that the second anniversary of the
                  Closing Date shall have occurred, Purchaser shall cause the
                  Escrow Holder to remit to Seller, as a reduction of the Total
                  Estimated Liquidated Amount of Damages any excess of the
                  Estimated Liquidated Amount over actual costs expended with
                  respect to such claim.

3.9      POWER OF ATTORNEY. Effective upon the Closing Date and thereafter,
         Seller hereby irrevocably names, constitutes, and appoints Purchaser,
         acting through itself or its officers, agents, employees and
         representatives, its duly authorized special, limited attorney-in-fact
         and agent with full power and authority to endorse in Seller's name,
         any checks relating to the Accounts.

3.10     DISPUTE RESOLUTION. Seller and Purchaser agree to attempt in good faith
         to resolve any disputes arising in connection with the payments made or
         demanded by the parties under this Article 3. In the event Purchaser
         and Seller are unable to resolve any such dispute (other than the
         determination of the Estimated Liquidated Amount as provided in SECTION
         3.8), either party may request a mutually agreed upon nationally
         recognized firm of independent accountants (the "Accountants") to
         reconcile any financial items in dispute. In the event Purchaser and
         Seller are unable to mutually agree as to the identity of the
         Accountants, then the dispute resolution procedures specified in
         SECTION 9.14 shall be followed in order to identify the mutually agreed
         upon Accountants. Any such request shall be in writing, shall specify
         with particularity the disputed amounts being submitted for
         determination and a direction to the Accountants to proceed with such
         review as soon as practicable. The requesting party shall furnish the
         other party hereto with a copy of such request at the same time it is
         submitted to the Accountants. Purchaser and Seller shall cooperate
         fully in assisting the Accountants in their review, including, without
         limitation, by providing the Accountants full access to all files,
         books and records relevant thereto and providing such other information

                                       14
<PAGE>

         as the Accountants may reasonably request in connection with any such
         review. One-half (1/2) of the fees and disbursements of such
         Accountants arising out of such review shall be borne by each of
         Purchaser and Seller. In the event the determination made by the
         Accountants requires either party to make payment to the other of any
         additional amount, such party shall make such payment no later than
         five (5) Business Days following receipt from the Accountants of
         written notice to both parties of such determination plus interest on
         any amount due at a rate equal to the Federal Funds Rate divided by 360
         for each day during the period from the date on which a payment was
         required pursuant to the terms of this Agreement through the date of
         payment.

                       ARTICLE 4 - CONDITIONS OF CLOSING
                       ---------------------------------

4.1      CONDITIONS APPLICABLE TO PURCHASER. The obligation of Purchaser under
         this Agreement to consummate the transactions contemplated by this
         Agreement is subject to the satisfaction or waiver by Purchaser of the
         following conditions as of the Closing Date:

         (a)      RELATED AGREEMENTS. Seller shall have executed and delivered
                  to Purchaser each of the Related Agreements.

         (b)      FINANCING STATEMENTS. At or before the Closing Date, Seller
                  shall have executed and delivered to Purchaser, financing
                  statements, prepared by Purchaser, in the appropriate form for
                  filing under the Uniform Commercial Code of the States of
                  California and Nevada to give notice of Purchaser's interest
                  in the Credit Card Receivables.

         (c)      BOARD RESOLUTIONS. Purchaser shall have received from Seller
                  certified resolutions of Seller's Board of Directors
                  authorizing the execution and delivery of this Agreement and
                  the Related Agreements and the consummation of the
                  transactions contemplated hereby and thereby.

         (d)      PERFORMANCE OF THIS AGREEMENT. All the terms, covenants and
                  conditions of this Agreement to be complied with and performed
                  by Seller at or prior to the Closing Date shall have complied
                  with and performed in all material respects.

         (e)      ACCURACY OF REPRESENTATIONS AND WARRANTIES. The
                  representations and warranties of Seller (other than the
                  Account Representations and Warranties) shall be true and
                  correct in all material respects on the Closing Date as though
                  made on the Closing Date, except for changes therein
                  specifically permitted by this Agreement or resulting from any
                  transactions expressly consented to in writing by Purchaser.

         (f)      NO MATERIAL ADVERSE CHANGE. Since October 31, 2000, there
                  shall have been no material adverse change in the condition,
                  financial or otherwise, of the Acquired Assets other than
                  fluctuations in the value of the Credit Card Receivables.

                                       15
<PAGE>

         (g)      LITIGATION. No action, suit, litigation or proceeding related
                  to any of the transactions contemplated hereby shall have been
                  threatened or instituted by a governmental body which in the
                  opinion of Purchaser (after consultation with its counsel) is
                  reasonably likely to restrict or prohibit any of the
                  transactions contemplated hereby or to have a material adverse
                  effect on the Acquired Assets.

         (h)      CONSENTS. All consents of any person, and all consents,
                  licenses, permits or approvals or authorizations or exemptions
                  by notice or report to, or registrations, filings or
                  declarations with, any governmental authority, in connection
                  with the execution or delivery by Seller, and the validity or
                  enforceability against Seller, of this Agreement and the
                  Related Agreements and the consummation of the transactions
                  contemplated hereby and thereby, or the performance by
                  Purchaser or Seller of their obligations hereunder or
                  thereunder, have been obtained at or prior to the Closing
                  Date.

         (i)      ACQUISITION LAWFUL. The acquisition of the Acquired Assets
                  shall not violate any applicable statute, rule or regulation
                  in effect on the Closing Date.

         (j)      NO INJUNCTION. There must not be in effect any injunction that
                  restricts or prohibits the consummation of any of the
                  transactions contemplated hereby, has been issued, or has
                  otherwise become effective, since the date of this Agreement.

4.2      CONDITIONS APPLICABLE TO SELLER. The obligation of Seller under this
         Agreement to consummate the transactions contemplated by this Agreement
         is subject to the satisfaction or waiver by Seller of the following
         conditions as of the Closing Date:

         (a)      RELATED AGREEMENTS. Purchaser shall have executed and
                  delivered to Seller each of the Related Agreements.

         (b)      BOARD RESOLUTIONS. Seller shall have received from Purchaser
                  certified resolutions of Purchaser's Board of Directors
                  authorizing the execution and delivery of this Agreement and
                  the Related Agreements and the consummation of the
                  transactions contemplated hereby and thereby.

         (c)      PERFORMANCE OF THIS AGREEMENT. All the terms, covenants and
                  condition of this Agreement to be complied with and performed
                  by Purchaser at or prior to the Closing Date shall have been
                  fully complied with and performed in all material respects.

         (d)      ACCURACY OF REPRESENTATIONS AND WARRANTIES. The
                  representations and warranties of Purchaser as set forth in
                  SECTION 5.2 hereof shall be true and correct on the Closing
                  Date shall have been fully complied with and performed in all
                  material respects.

                                       16
<PAGE>

         (e)      LITIGATION. No action, suit, litigation or proceeding related
                  to any of the transactions contemplated hereby shall have been
                  threatened or instituted by a governmental body which in the
                  opinion of Seller (after consultation with its counsel) is
                  reasonably likely to restrict or prohibit the consummation of
                  any of the transactions contemplated hereby.

         (f)      CONSENTS. All consents of any person and all consents,
                  licenses, permits or approvals or authorizations or exemptions
                  by notice or report to, or registrations, filings or
                  declarations with, any governmental authority, including
                  without limitation the Office of Thrift Supervision, in
                  connection with the execution or delivery by Purchaser, and
                  the validity or enforceability against Purchaser, of this
                  Agreement and the Related Agreements, and the consummation of
                  the transactions contemplated hereby and thereby, or the
                  performance by Purchaser or Seller of their obligations
                  hereunder or thereunder, have been obtained at or prior to the
                  Closing Date, without the imposition of any conditions by the
                  Office of Thrift Supervision which, in the reasonable judgment
                  of Seller, are materially burdensome.

         (g)      ACQUISITION LAWFUL. The sale of the Acquired Assets shall not
                  violate any applicable statute, rule or regulation in effect
                  on the Closing Date.

         (h)      NO INJUNCTIONS. There must not be in effect any injunction
                  that restricts or prohibits the consummation of any of the
                  transactions contemplated hereby, has been issued, or has
                  otherwise become effective, since the date of this Agreement.

         (i)      FDR AGREEMENT. Purchaser shall have assumed and FDR shall have
                  agreed to the assumption of all Seller's obligations under the
                  FDR Agreement.

                   ARTICLE 5 - REPRESENTATIONS AND WARRANTIES
                   ------------------------------------------

5.1      REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby represents and
         warrants to Purchaser (but subject to the last, undesignated, paragraph
         of this Section 5.1) as follows:

         (a)      ORGANIZATION. Seller is a federally chartered savings bank
                  validly existing and in good standing under the laws of the
                  United States of America.

         (b)      CAPACITY; AUTHORITY; VALIDITY. Subject to any required
                  approval of the Office of Thrift Supervision, Seller has all
                  necessary power and authority to enter into this Agreement and
                  the Related Agreements to which it is a party and to perform
                  all of the obligations to be performed by it under this
                  Agreement and the Related Agreements. Subject to any required
                  approval of the Office of Thrift Supervision, this Agreement
                  and the Related Agreements and the consummation by Seller of
                  the transactions contemplated hereby and thereby have been
                  duly and validly authorized by all necessary corporate action
                  of Seller and this Agreement has been duly executed and

                                       17
<PAGE>

                  delivered by Seller and when executed by Seller, this
                  Agreement and the Related Agreements will constitute the valid
                  and binding obligations of Seller, enforceable against Seller
                  in accordance with their respective terms (except as such
                  enforcement may be limited by bankruptcy, insolvency,
                  reorganization, moratorium, receivership, conservatorship, the
                  rights and obligations of receivers and conservators of
                  insured depository institutions under 12 U.S.C.ss.1821(d) and
                  (e) and other laws relating to or affecting creditors' rights
                  generally and by general equity principles).

         (c)      CONFLICTS; DEFAULTS. Neither the execution and delivery of
                  this Agreement and the Related Agreements by the Seller, nor
                  the consummation of the transactions contemplated hereby and
                  thereby will (i) conflict with, result in the breach of, any
                  order, law, regulation, contract, instrument or commitment to
                  which Seller is a party or by which it is bound, (ii) violate
                  the articles of incorporation or bylaws, or any other
                  equivalent organizational document, of Seller, (iii) require
                  any consent, approval, authorization or filing under any law,
                  regulation, judgment, order, writ, decree, permit, license or
                  agreement to which Seller is a party, or (iv) subject to
                  consent of FDR and EDS pursuant to SECTION 2.11 of this
                  Agreement, require the consent or approval of any other party
                  to any contract, instrument or commitment which Seller is a
                  party, in each case other than (x) approvals of regulatory
                  authorities, if any, which have been obtained or will be
                  obtained prior to or on the Closing Date and (y) any of the
                  foregoing which would not have a material adverse effect on
                  the Acquired Assets. Seller is not subject to any agreement
                  with any regulatory authority which would prevent the
                  consummation by Seller of the transactions contemplated by
                  this Agreement and the Related Agreements.

         (d)      TITLE TO ACQUIRED ASSETS. Seller has good and marketable title
                  to the Acquired Assets, free and clear of any lien, pledge,
                  claim, security interest, encumbrance, charge or restriction
                  of any kind, except for (i) the rights of Cardholders; and
                  (ii) restrictions imposed by the Operating Regulations,
                  including without limitation restrictions imposed on the bank
                  identifying numbers.

         (e)      LITIGATION. Except as set forth on SCHEDULE 5.1(e), there is
                  no claim, or any litigation, proceeding, arbitration,
                  investigation or controversy pending, against or affecting the
                  Seller, which will have a material adverse effect on the
                  Seller's interest in the Acquired Assets or the ability of the
                  Seller to consummate the transactions contemplated hereby and
                  by the Related Agreements and, to the best of Seller's
                  knowledge, no such claim, litigation, proceeding, arbitration,
                  investigation or controversy has been threatened or is
                  contemplated.

                                       18
<PAGE>

         (f)      COMPLIANCE WITH LAWS. (i) The Accounts, Cardholder Agreements
                  and all related documents comply in all material respects with
                  all applicable laws, rules and regulations and Seller has
                  complied in all material respects with all applicable federal
                  and state laws and regulations and the Operating Regulations
                  with respect to the origination, maintenance and servicing of
                  the Accounts, including any change in the terms of any
                  Account; (ii) the interest rates, fees and charges in
                  connection with the Accounts comply with all applicable
                  federal and state laws and regulations and with the Operating
                  Regulations; (iii) other than in the Cardholder Agreements and
                  as reflected in the Books and Records, Seller has made no
                  promise, agreement or commitment to any Cardholder in
                  connection with an Account, except in the ordinary course of
                  business in connection with collection and customer service;
                  (iv) each Cardholder Agreement is the legal, valid and binding
                  obligation of the Cardholder and is enforceable in accordance
                  with its terms, except as such enforcement may be limited by
                  bankruptcy, insolvency, reorganization, moratorium and other
                  laws relating to or affecting creditors' rights generally and
                  by general equity principles, and is not subject to offset,
                  recoupment, adjustment or any other claim except for the
                  rights of Cardholders under 12 CFRss.226.12(c), 12 CFR
                  ss.226.13(d) and the Soldiers and Sailors Civil Relief Act;
                  and (v) except for billing inquiries reflected in the Books
                  and Records, each of the Credit Card Receivables arises from a
                  bona fide sale or loan transaction or from a fee assessed in
                  connection therewith.

         (g)      CARDHOLDER AGREEMENTS. Attached as SCHEDULE 5.1(g) is a true,
                  accurate and complete copy of each form of Cardholder
                  Agreement governing an Account.

         (h)      ABSENCE OF CERTAIN ACCOUNTS. None of the Accounts transferred
                  as part of the Acquired Assets are: (i) any merchant accounts
                  and their associated processing; (ii) any debit accounts and
                  their associated processing; (iii) any accounts and associated
                  receivables that are classified, or that should have been
                  classified, as of the Cut-Off Time, as a commercial loan or
                  which are generated by any commercial entity; and (iv) any
                  test accounts opened or maintained by Seller with respect to
                  the MasterCard system for verification or other internal
                  purposes.

         (i)      ABSENCE OF DEFAULTS. There is no default, breach, violation,
                  or event of acceleration existing under any Account and no
                  event which, with the passage of time or with notice and the
                  expiration of any grace or cure period, would constitute a
                  default, breach, violation or event of acceleration except for
                  payment defaults that are less than one hundred eighty days
                  past due. Seller has not waived any default, breach, violation
                  or event of acceleration with respect to an Account, except as
                  reflected in the Books and Records or otherwise in accordance
                  with the Policies and Procedures.

                                       19
<PAGE>

         (j)      PROCESSING. Each Account has been processed by Seller in
                  conformance in all material respects with all of the
                  requirements of the Policies and Procedures.

         (k)      PERFORMANCE OF OBLIGATIONS. Seller has performed all
                  obligations required to be performed by it to date under the
                  Cardholder Agreements, and Seller is not in default under, and
                  no event has occurred which, with the lapse of time or action
                  by a third party, could result in a default of Seller under,
                  any such agreements. Each Cardholder Agreement is the legal,
                  valid and binding obligations of Seller, enforceable by the
                  respective parties thereto in accordance with its terms,
                  except as such enforcement may be limited by bankruptcy,
                  insolvency, reorganization, moratorium, receivership,
                  conservatorship, the rights and obligations of conservators or
                  receivers on insured depository institutions under 12 U.S.C.
                  ss.1821(d) and (e) and other laws relating to or affecting
                  creditors' rights generally and by general equity principles.

         (l)      OPERATION OF BUSINESS. Seller has not (i) effected any change
                  in the Current Policies and Procedures that would have a
                  material adverse effect on the Acquired Assets; (ii) entered
                  into any transaction or made any commitment or agreement in
                  connection with the Accounts, other than in the ordinary
                  course of Seller's business consistent with past practice;
                  (iii) amended the terms of any Cardholder Agreement, except on
                  an individual basis in accordance with the Current Policies
                  and Procedures; or (iv) engaged in any settlement or reage of
                  delinquent Accounts under terms inconsistent with the Policies
                  or Procedures.

         (m)      FINDERS OR BROKERS. Seller acknowledges that it has not agreed
                  to pay any fee or any agent, broker, finder, or other person
                  retained by it, for or on account of services rendered as a
                  broker or finder in connection with this Agreement or the
                  transactions contemplated hereby.

         (n)      EFFECT OF LAW ON CLOSING. There is no federal or state
                  statute, rule or regulation, or order or rule of any federal
                  or state regulatory agency which would prevent the Seller from
                  selling the Acquired Assets to Purchaser as contemplated by
                  this Agreement.

         (o)      BOOKS AND RECORDS. The Books and Records relating to an
                  Account accurately reflect in all material respects the terms
                  and conditions of such Account.

         (p)      ENHANCEMENT PROGRAMS. SCHEDULE 5.1(p) sets forth a list of
                  benefits or enhancement programs currently in effect with
                  respect to the Accounts.

         (q)      ACCURACY OF STATEMENTS. No written statement, report, or other
                  document, furnished pursuant to this Agreement or during
                  Purchaser's due diligence with respect to this Agreement,
                  including documents and information in the form of microfilm,
                  microfiche, magnetic tape, computer disc, or in any other

                                       20
<PAGE>

                  form, contains any untrue statement of a material fact by
                  Seller or omits to state a material fact necessary to make the
                  statements of Seller contained therein not misleading, the
                  effect of which untrue statement or omission would be to
                  materially and adversely affect the Acquired Assets taken as a
                  whole.

         (r)      CONSENTS. Except for (i) any required approval of the Office
                  of Thrift Supervision under Section 563.22 of the OTS
                  Regulations, and (ii) any required FDR and EDS consent
                  pursuant to SECTION 2.10 of this Agreement, no consent,
                  approval or authorization of any federal, state or local
                  government authority or agency or any other third party is
                  required for the execution, delivery and performance by the
                  Seller of this Agreement and the consummation by them of the
                  transactions contemplated hereby.

         (s)      ACCURACY OF BAD DEBT EXPERIENCE. The month end delinquency and
                  charge-off reports covering the period from June 30, 1999 to
                  May 31, 2000 and in the form set forth on SCHEDULE 5.1(s),
                  have been prepared in accordance with the Policies and
                  Procedures, and Seller has no reason to believe that such
                  reports are inaccurate in any material respect.

         Nothing in this SECTION 5.1 is intended to constitute a representation
         and warranty of Seller as to any matter arising from an action or
         omission of Purchaser in its capacity as Servicer on and after the
         Prior Closing Date.

5.2      REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser hereby
         represents and warrants to Seller as follows:

         (a)      ORGANIZATION. Purchaser is a national banking association,
                  validly existing and in good standing under the laws of the
                  United States.

         (b)      CAPACITY; AUTHORITY; VALIDITY. Purchaser has all necessary
                  corporate power and authority to enter into this Agreement and
                  the Related Agreements and to perform all of the obligations
                  to be performed by it under this Agreement and the Related
                  Agreements. This Agreement and the Related Agreements and the
                  consummation by Purchaser of the transactions contemplated
                  hereby and thereby have been duly and validly authorized by
                  all necessary corporate action of Purchaser, and this
                  Agreement and the Related Agreements have been duly executed
                  and delivered by Purchaser, and constitute the valid and
                  binding obligations of Purchaser, and this Agreement and the
                  Related Agreements have been duly executed and delivered by
                  Purchaser, and constitute the valid and binding obligations of
                  Purchaser, enforceable against Purchaser in accordance with
                  their respective terms (except as such enforcement may be
                  limited to bankruptcy, insolvency, reorganization, moratorium,
                  receivership, conservatorship, the rights and obligations of
                  receivers and conservators of insured depository institutions
                  under 12 U.S.C. ss.1821(d) and (e) and other laws relating to
                  or affecting creditors' right generally and by general equity
                  principles.

                                       21
<PAGE>

         (c)      CONFLICTS; DEFAULTS. Neither the execution and delivery of
                  this Agreement and the Related Agreements by Purchaser nor the
                  consummation of the transactions contemplated hereby or
                  thereby by Purchaser will (i) conflict with, result in the
                  breach of, constitute a default under, or accelerate the
                  performance required by, the terms of any order, law,
                  regulation, contract, instrument or commitment to which
                  Purchaser is a party or by which Purchaser is bound, (ii)
                  violate the organizational documents of Purchaser, (iii)
                  require any consent, approval, authorization or filing under
                  any law, regulation, judgment, order, writ, decree, permit or
                  license to which Purchaser is a party or by which Purchaser is
                  bound, other than the approvals of regulatory authorities, if
                  any, which have been obtained or will be obtained prior to or
                  on the Closing Date. Purchaser is not subject to any agreement
                  or understanding with any regulatory authority which would
                  prevent the consummation by Purchaser of the transactions
                  contemplated by this Agreement and the Related Agreements.

         (d)      FINDERS OR BROKERS. Purchaser has not agreed to pay any fee or
                  commission to any agent, broker, finder, or other person for
                  or on account of services rendered as a broker, or finder in
                  connection with this Agreement or the transactions
                  contemplated hereby which would give rise to any valid claim
                  against Seller for any brokerage commission or finder's fee or
                  like payment.

         (e)      EFFECT OF LAW ON CLOSING. There is no federal or state
                  statute, rule or regulation, or order or rule of any federal
                  or state regulatory agency, which would prevent Purchaser from
                  purchasing the Acquired Assets and assuming the Assumed
                  Liabilities as contemplated by this Agreement.

         (f)      SOURCE OF FUNDING. Purchaser has the necessary sources of
                  funding to consummate the transactions contemplated in this
                  Agreement in accordance with the terms hereof.

         (g)      MASTERCARD MEMBER. Purchaser is qualified to participate in,
                  and is a member in good standing of, the MasterCard credit
                  card program.

         (h)      INVESTIGATION. Purchaser has made such independent
                  investigation as Purchaser deems necessary as to the nature
                  and value of the Acquired Assets, including each Account, and
                  as to all other facts that Purchaser deems material to
                  Purchaser's purchase. Purchaser is entering into this
                  Agreement on the basis of that investigation and Purchaser's
                  own judgment and experience. Purchaser has made an independent
                  determination that the Purchase Price represents the fair and
                  reasonable value of the Acquired Assets, including the
                  Accounts. Purchaser has relied upon representations regarding
                  the nature and value of the Acquired Assets only as made to
                  Purchaser by Seller in this Agreement. The foregoing shall not
                  in any way limit the representations and warranties and
                  indemnification provisions otherwise provided in this
                  Agreement.

                                       22
<PAGE>

                         ARTICLE 6 - CERTAIN COVENANTS
                         -----------------------------

6.1      MUTUAL COVENANTS AND AGREEMENTS. Each party hereto covenants and agrees
         that:

COOPERATION. It shall cooperate with the other parties hereto in furnishing any
information or performing any action reasonably requested by that party, both
before and after the Closing, which information or action is necessary for the
prompt consummation of the transactions contemplated by, and the exercise of
rights and performance of obligations under, this Agreement. Without limiting
the generality of the foregoing, Purchaser shall provide to Seller (and shall
cause its employees and third parties engaged to provide services to the
Purchaser to provide) (i) such information as is requested by regulators or
examiners having jurisdiction over Seller relating to the Accounts, the
Cardholders or the transactions described herein and (ii) reasonable access to
and the ability to copy such Books and Records as is determined to be necessary
by Seller in connection with the Alabama Class Action and the settlement
thereof. The Purchaser agrees to maintain the Books and Records for the Accounts
for at least two years after the Closing Date and permit the Office of Thrift
Supervision access to the Books and Records upon reasonable notice.

         (a)

         (b)      OTHER REQUIRED INFORMATION. It shall furnish to the other
                  parties hereto all information as is required to be set forth
                  in any application or statement to be filed with any local,
                  state or federal governmental agency or authority in
                  connection with the regulatory approval or review of the
                  transactions contemplated by this Agreement.

         (c)      CONFIDENTIALITY. All information furnished by a party (the
                  "Protected Party") to any other party in connection with this
                  Agreement and the transactions contemplated hereby (including
                  the books and records delivered by Seller relating to Credit
                  Card Accounts not being sold to Purchaser under this Agreement
                  pursuant to SECTION 6.2(g) of this Agreement) shall be
                  received in confidence and kept confidential by such other
                  party, and shall be used by it only in connection with this
                  Agreement and the transactions contemplated hereby, except to
                  the extent that such information: (i) is already lawfully
                  known to such other party when received; (ii) thereafter
                  becomes lawfully obtainable from other sources; (iii) is
                  required to be disclosed to MasterCard; (iv) is disclosed to

                                       23
<PAGE>

                  its Affiliates, provided that such parties agree to be bound
                  by the provisions of this SECTION 6.1(c); (v) is disclosed to
                  its auditors or counsel or is required to be disclosed to its
                  lenders or rating agencies; or (vi) is required by law,
                  regulation or court order or request of examining authorities
                  to be disclosed by such other party, provided that prior
                  notice of such disclosure (other than to its Affiliates,
                  auditors, counsel, lenders or examining authorities) has been
                  given to the Protected Party, when legally permissible, and
                  that such party which is required to make the disclosure uses
                  its reasonable best efforts to provide sufficient notice to
                  permit the Protected Party to take legal action to prevent the
                  disclosure. Following the Closing Date, Purchaser shall have
                  no obligation of confidentiality to Seller with respect to
                  information which is contained in or derived from the Books
                  and Records or is otherwise information Purchaser determines
                  is reasonably required to be disclosed in connection with the
                  securitization and sale of interests in the Accounts. In the
                  event that the transactions contemplated by this Agreement
                  shall fail to be consummated, such other party shall promptly
                  cause all originals and copies of documents or extracts
                  thereof containing such information and data as to such
                  Protected Party to be returned to the Protected Party or
                  destroyed and shall cause an officer to so certify to the
                  Protected Party. This SECTION 6.1(c) shall survive any
                  termination of this Agreement.

         (d)      PRESS RELEASES. Except as may be (i) required by law or
                  regulation or a court or regulatory authority or the rules of
                  a stock exchange, or (ii) necessary to disclose to lenders and
                  rating agencies, or (iii) required to be disclosed under
                  applicable securities laws pursuant to advice of such party's
                  securities counsel, neither Seller nor Purchaser, nor any of
                  their respective Affiliates, subsequent to the date hereof,
                  shall issue a press release or make any public announcement
                  related to the transactions contemplated hereby until such
                  transactions are consummated without consulting the other
                  party hereto and giving due consideration to any comments
                  provided by such other party, provided that no party shall,
                  either before or after the Closing Date, issue a press release
                  or make any public announcement which identifies or refers to
                  any other party, the purchase price or the detailed terms of
                  the transaction without the prior approval of the other party.
                  Notwithstanding the above, either party may issue a press
                  release or make a public announcement disclosing the existence
                  of this agreement (but not the parties thereto), the financial
                  impact of this Agreement to such party (but not the purchase
                  price, either as a dollar amount or a percentage), the
                  identity of the assets sold or purchased under this Agreement
                  and the anticipated closing date of this Agreement without the
                  prior approval of the other party. This SECTION 6.1(d) shall
                  survive any termination of this Agreement.

         (e)      NOTICE TO CARDHOLDERS. Seller and Purchaser shall cooperate
                  with each other in good faith to enable Purchaser, prior to
                  the Conversion Date, to prepare, print and mail a notice
                  notifying each Cardholder on a timely basis of the purchase of
                  the Accounts by Purchaser and such other information as may be
                  required to be given to such Cardholder and other matters

                                       24
<PAGE>

                  which the parties determine to be appropriate. Any such notice
                  shall be in a form consented to by each of the parties hereto
                  prior to mailing, but no party shall unreasonably withhold
                  such consent. Purchaser shall bear the expenses of such
                  notice, and Seller shall bear the expense of any subsequent
                  notice notifying certain cardholders that their Account has
                  been repurchased by Seller.

         (f)      MISCELLANEOUS AGREEMENTS AND CONSENTS. Subject to the terms
                  and conditions herein provided, each party to this Agreement
                  shall use its reasonable best efforts to take, or cause to be
                  taken, all action, and to do, or cause to be done, all things
                  necessary, appropriate or desirable hereunder and under
                  applicable laws and regulations, to consummate and make
                  effective the transactions contemplated by this Agreement.
                  Each party to this Agreement will use its reasonable best
                  efforts to obtain consents of all third parties and
                  governmental bodies necessary for the consummation of the
                  transactions contemplated by this Agreement. The parties and
                  their respective officers, directors and/or employees shall
                  use their reasonable best efforts to take such further actions
                  subsequent to the Closing Date as are reasonably necessary,
                  appropriate or desirable to carry out the purposes of this
                  Agreement.

         (g)      ADVICE ON CHANGES. Between the date hereof and the Closing
                  Date, each party shall promptly advise the other of any fact
                  known to it which, if existing or known at the date hereof,
                  would have been required to be set forth or disclosed in or
                  pursuant to this Agreement or of any fact which, if existing
                  or known at the date hereof, would have made any of the
                  representations of such party contained herein untrue in any
                  material respect.

         (h)      PRESERVE ACCURACY OF REPRESENTATIONS AND WARRANTIES. Each
                  party hereto shall refrain from taking any action which would
                  render any representation or warranty of such party contained
                  in ARTICLE 5 of this Agreement inaccurate as of the Closing
                  Date. Each party shall promptly notify the other parties of
                  any action, suit or proceeding that shall be instituted or
                  threatened against such party to restrain, prohibit or
                  otherwise challenge the legality of any transaction
                  contemplated by this Agreement.

6.2      ADDITIONAL COVENANTS.  Seller and Purchaser agree as follows:

         (a)      PRESERVATION OF CREDIT CARD BUSINESS. Seller has previously
                  discontinued its credit card business, including its servicing
                  activities, and has engaged Purchaser to service the ADC
                  Portfolio. To the extent consistent with the foregoing, from
                  the date of this Agreement and continuing until the Closing
                  Date, Seller shall, and shall cause Purchaser and other of its
                  agents, if any, to: (i) maintain and service the Accounts in
                  substantially the same manner as previously maintained and

                                       25
<PAGE>

                  serviced during the period after the Prior Closing Date and in
                  accordance with the Current Policies and Procedures as
                  currently in effect; (ii) maintain and service the Accounts in
                  compliance with applicable federal and state laws and
                  regulations to the extent of Seller's maintenance and
                  servicing of the Accounts during the period after the Prior
                  Closing Date; and (iii) except with the written consent of
                  Purchaser, not make any change to the Current Policies and
                  Procedures except as required by law, safe or sound banking
                  practices or the Operating Regulations. Seller shall take all
                  actions to cause its agents to, post all payments received
                  prior to the Cut-Off Time to the applicable Account as of the
                  Cut-Off Time.

         (b)      PRESERVATION OF ACCOUNTS. From the date of this Agreement and
                  continuing until the Closing Date, Seller shall: (i) not sell,
                  assign, transfer, pledge or encumber, or permit the
                  encumbrance of, any Account without the prior written consent
                  of Purchaser; (ii) not take any substantial action with
                  respect to the Accounts which will impair any material rights
                  of Seller, and shall not amend any Cardholder Agreement other
                  than on a per customer basis in accordance with the Current
                  Policies and Procedures; and (iii) comply with the terms and
                  conditions of the Cardholder Agreements, as then in effect.

         (c)      ACCESS. From the date of this Agreement and continuing until
                  the Closing Date, Seller shall (i) permit Purchaser and its
                  authorized representatives full access, during reasonable
                  hours, to the Books and Records as they relate to the Acquired
                  Assets; (ii) furnish Purchaser with true, accurate and
                  complete copies of such contracts and other such records and
                  all other information in its possession with respect to the
                  Acquired Assets as Purchaser or its authorized representatives
                  may reasonably request; and (iii) cause its personnel and its
                  agents to provide Purchaser assistance in its investigation of
                  such matters; provided, however, that such investigation shall
                  be conducted in a manner which does not unreasonably interfere
                  with Seller's normal operations, and provided further that the
                  Seller shall not be required to divulge, and shall not
                  divulge, any records, including certain information, to the
                  extent prohibited by applicable statutes or regulations. The
                  access afforded pursuant to this Section 6.2(c) is solely for
                  the purposes of viewing the conduct of business by the Seller
                  between the date of this Agreement and the Closing Date, and
                  shall not be construed as affording the Purchaser an
                  opportunity to conduct due diligence with respect to the
                  Acquired Assets, which the parties agree and acknowledge was
                  conducted prior to execution of this Agreement.

         (d)      USE OF LIST. Seller agrees that for a period of two (2) years
                  from the Closing Date, neither Seller, nor any Affiliate of
                  Seller, will (i) sell or otherwise provide the names and
                  addresses or other identifying information concerning the
                  Cardholders, in whole or in part, to any third party or (ii)
                  knowingly use such names and addresses or other identifying
                  information concerning the Cardholders to solicit any
                  Cardholder for a Credit Card Account or for a credit card
                  substitute or credit card replacement product. The foregoing
                  shall not be interpreted to preclude general media advertising
                  or promotion or advertising or promotion efforts targeted to
                  customers of the Seller for mortgage, insurance or other

                                       26
<PAGE>

                  banking products and services. Purchaser acknowledges that the
                  Cardholders were initially solicited by ADC, and Purchaser
                  acknowledges that Seller has no control over ADC and Seller
                  shall not be held in any way liable for any use of the names
                  and addresses of Cardholders with respect to any solicitation
                  by ADC.

         (e)      FURTHER ASSURANCES. On or after the Closing Date, Seller
                  shall, to the extent of its obligations hereunder (i) give
                  such further assurances to Purchaser, execute, acknowledge and
                  deliver all such acknowledgements and other instruments and
                  take such further action as may be reasonably necessary or
                  appropriate to fully and effectively carry out the
                  transactions contemplated hereby; and (ii) reasonably assist
                  Purchaser in the orderly transition of the operations and
                  servicing relating to the Acquired Assets.

         (f)      RESPONSIBILITY FOR TAXES. Seller shall be liable for and pay
                  (i) any Taxes relating to the Acquired Assets that accrue or
                  otherwise relate to any taxable year or period (or portion
                  thereof) ending on or prior to the Closing Date and (ii) any
                  Taxes imposed upon the Seller as a result of the sale of the
                  Acquired Assets to the Purchaser. For purposes of this
                  Agreement, Taxes attributable to a portion of a taxable year
                  or period shall be determined on a "closing of the books"
                  basis as of the Closing Date, except that Taxes imposed on a
                  periodic basis (such as property Taxes) shall be allocated on
                  a daily basis. Seller shall be responsible for any applicable
                  2000 federal or state information reporting for events or
                  payments occurring during the period beginning January 1, 2000
                  and ending on the Closing Date.

         (g)      BOOKS AND RECORDS. Seller will make the Books and Records
                  available for delivery to Purchaser on or within five Business
                  Days of the Closing Date. To the extent Seller delivers
                  originals and does not retain copies of such Books and
                  Records, Purchaser shall, upon the request of Seller and at
                  Seller's expense, deliver to Seller copies of Books and
                  Records as Seller may require to meet legal, regulatory, Tax,
                  accounting and auditing requirements. Except as set forth
                  above, from and after the Conversion Date, Seller shall have
                  no further obligations to provide the Purchaser access to any
                  of its books and records.

         (h)      NO SHOP. Upon and after execution of this Agreement, and until
                  the earlier of the Closing Date or the termination of this
                  Agreement in accordance with its terms, the Seller will not,
                  directly or indirectly, solicit, or cause any other person to
                  solicit, any offer to acquire the Acquired Assets or assume
                  the Assumed Liabilities (whether by merger, purchase of assets
                  or other similar transaction) other than the acquisition and
                  assumption contemplated by this Agreement. The Seller will
                  not, directly or indirectly, furnish any information

                                       27
<PAGE>

                  concerning the Acquired Assets or Assumed Liabilities to any
                  person which is seeking to acquire the Acquired Assets or
                  Assumed Liabilities, in whole or in part, except in response
                  to unsolicited inquiries or offers by third parties and under
                  circumstances where the Seller advises such other person in
                  writing of the existence of this Agreement and the Related
                  Agreements and that any such offer or inquiry shall be in the
                  nature of a backup offer or inquiry. If Seller receives an
                  unsolicited inquiry or proposal concerning the availability of
                  the Acquired Assets or Assumed Liabilities for purchase,
                  Seller agrees to promptly inform Purchaser of the substance of
                  such inquiry or proposal including the identity of the person
                  making such inquiry or proposal, but solely if such inquiry or
                  proposal is in writing.

         (i)      AGREEMENTS WITH THIRD PARTIES. Seller shall furnish to
                  Purchaser, prior to the Closing Date, copies of existing
                  contracts with third parties relating to the Acquired Assets
                  and Assumed Liabilities and shall represent that Purchaser
                  will not incur any liability thereunder as a result of this
                  Agreement other than the Assumed Liabilities.

         (j)      REMOVAL FROM BIN. Seller and Purchaser shall cooperate to
                  remove any accounts which have been classified or should have
                  been classified as a Charged-Off Account, an Alabama Opt-Out
                  Account or a Mississippi Account from bank identified number
                  ("BIN") 549062 as soon as possible.

         (k)      RETURN OF CREDIT BALANCES. Seller shall have paid to
                  Cardholders all Credit Balances created prior to the Cut-Off
                  Time.

         (l)      TRAILING ACTIVITY. Seller and Purchaser shall cooperate to
                  establish a process prior to the Closing Date to settle
                  trailing activity.

         (m)      PAYMENT OF CLAIMS IN ALABAMA CLASS ACTION. Seller shall be
                  responsible for the payment of any amounts required to be paid
                  in cash to Cardholders who have submitted claims in the
                  Alabama Class Action and shall reimburse Purchaser for any
                  credit given by Purchaser after the Closing Date to
                  Cardholders who have submitted claims in the Alabama Class
                  Action.

6.3      COVENANTS OF PURCHASER. Purchaser shall be liable for and pay any Taxes
         relating to the Acquired Assets that accrue or otherwise relate to any
         taxable year or period (or portion thereof), as determined in
         accordance with SECTION 6.2(f) beginning after the Closing Date; except
         for (i) Taxes imposed upon the Seller as a result of the sale of the
         Acquired Assets to the Purchaser and (ii) any other Taxes for which the
         Seller is responsible as set forth in SECTION 6.2(f)(i). Purchaser
         shall be liable for and shall pay and perform any Assumed Liability
         arising after the Closing Date, including without limitation all
         obligations arising under any Cardholder Agreement. Purchaser shall
         comply in all material respects with applicable law in its
         administration of the Accounts, in each case, after the Closing Date.
         Purchaser shall be responsible for any applicable 2000 federal or state
         information reporting for events or payments occurring subsequent to
         the Closing Date.

                                       28
<PAGE>

                          ARTICLE 7 - INDEMNIFICATION

7.1      SELLER'S INDEMNIFICATION OBLIGATIONS. Seller shall indemnify, defend
         and hold Purchaser and its Affiliates and their respective
         stockholders, officers, directors and employees, harmless from and
         against any and all Losses (as hereinafter defined) arising from: (i)
         breach by Seller of any representation, warranty or covenant expressly
         made by Seller hereunder or under a Related Agreement; (ii) failure by
         the Seller to perform its obligations hereunder or under the Related
         Agreement; (iii) Seller's ownership of or actions with respect to the
         Acquired Assets, including, without limitation Seller's relationships
         with ADC, prior to the Closing Date; (iv) any actions taken by FDR,
         Citizens Bank, EDS or Bank Plus Credit Services Corporation prior to
         the Closing Date with respect to the Acquired Assets; (v) the failure
         of the Accounts, Cardholder Agreements and all related documents, in
         effect at or prior to the Closing Date, to comply in any respect with
         all applicable laws, rules and regulations or (vi) the failure of the
         Seller prior to the Closing Date to comply in all respects with all
         applicable federal and state laws and regulations and the Operating
         Regulations with respect to the origination, maintenance and servicing
         of the Accounts, including any change in the terms of any Account.

7.2      PURCHASER'S INDEMNIFICATION OBLIGATIONS. Purchaser shall be liable to
         and shall indemnify, defend and hold Seller and its Affiliates and
         their respective stockholders, officers, directors and employees,
         harmless from and against any and all Losses arising from: (i) breach
         by Purchaser of any representation, warranty or covenant hereunder or
         under a Related Agreement; (ii) failure by Purchaser to perform its
         obligations hereunder or under a Related Agreement, including without
         limitation any failure by Purchaser on and after the Closing Date to
         discharge the Assumed Liabilities; (iii) Purchaser's ownership of or
         actions with respect to the Acquired Assets after the Closing Date; or
         (iv) the failure of the Purchaser after the Closing Date to comply in
         all respects with all applicable federal and state laws and regulations
         and the Operating Regulations with respect to the maintenance and
         servicing of the Accounts, including any change in the terms of any
         Account.

7.3      DEFINITION OF LOSSES. For purposes of this ARTICLE 7, the term "Loss"
         or "Losses" shall mean any liability, damage, costs and expenses
         arising from a claim asserted by a bona fide third party, not an
         Affiliate of an Indemnified Party, including, without limitation, any
         attorneys' fees, disbursements and court costs, in each case reasonably
         incurred by Purchaser or Seller, as the case may be, without regard to
         whether or not such Losses would be deemed material under this
         Agreement.

                                       29
<PAGE>

7.4      PROCEDURES.

         (a)      NOTICE OF CLAIMS. The parties agree that in case any claim is
                  made, any suit or action is commenced, or any knowledge is
                  received of a state of facts which, if not corrected, may give
                  rise to a right of indemnification for such party hereunder
                  ("Indemnified Party") from the other party ("Indemnifying
                  Party") the Indemnified Party will give notice to the
                  Indemnifying Party as promptly as practicable after the
                  receipt by the Indemnified Party of notice or knowledge of
                  such claim, suit, action or state of facts. Notice to the
                  Indemnifying Party under the preceding sentence shall be given
                  no later than fifteen (15) days after receipt by the
                  Indemnifying Party of service of process in the event a suit
                  or action has commenced or thirty (30) days under all other
                  circumstances. The failure to give prompt notice shall not
                  relieve an Indemnifying Party of its obligation to indemnify
                  except to the extent the Indemnifying Party is prejudiced by
                  such failure. The Indemnified Party shall make available and
                  provide access (and shall cause its employees and third
                  parties engaged to provide services to the Indemnified Party
                  to make available and provide access) to the Indemnifying
                  Party and its counsel and accountants at reasonable times and
                  for reasonable periods, during normal business hours, all
                  books and records of the Indemnified Party or such third party
                  relating to any such possible claim for indemnification, and
                  shall permit copying of the same. Each party hereunder will
                  render to the other (and shall cause any employees or other
                  third parties employed or engaged by such Party to render)
                  such assistance as it may reasonably require of the other in
                  order to insure prompt and adequate defense of any suit, claim
                  or proceeding based upon a state of acts which may give rise
                  to a right of indemnification hereunder.

                           The Indemnifying Party shall have the right to
                  defend, compromise and settle (without agreeing or admitting
                  to any liability as to the Indemnified Party in the event of a
                  compromise or settlement) any third party person suit, claim
                  or proceeding in the name of the Indemnified Party to the
                  extent that the Indemnifying Party may be liable to the
                  Indemnified Party in connection therewith. The Indemnifying
                  Party shall notify the Indemnified Party within ten (10) days
                  of having been notified pursuant to this SECTION 7.4(a) if the
                  Indemnifying Party elects to assume the defense of any such
                  claim, suit or proceeding and employ counsel, provided that
                  the Indemnified Party does not object to such counsel in a
                  reasonable exercise of its discretion. The Indemnified Party
                  shall have the right to employ its own counsel if the
                  Indemnifying Party so elects to assume such defense, but the
                  fees and expenses of such counsel shall be the at the
                  Indemnified Party's expense, unless (i) the employment of such
                  counsel shall have been authorized in writing by the
                  Indemnifying Party; (ii) the Indemnifying Party shall not have
                  employed counsel to take charge of the defense of such action
                  after electing to assume the defense thereof; or (iii) the use
                  of such counsel chosen by the Indemnifying Party to represent
                  such Indemnified Party would present such counsel with an
                  actual or potential conflict of interest (in which case the

                                       30
<PAGE>

                  Indemnifying Party shall not have the right to assume the
                  defense of such action on the Indemnified Party's behalf) or
                  (iv) the actual or potential defendants in, or targets of, any
                  such action include both Seller and Purchaser, and in the
                  reasonable opinion of counsel to the Purchaser or Seller,
                  there may be legal defenses available to the Indemnified
                  Parties which are different or additional to those available
                  to the Indemnifying Parties and as a result of which it would
                  be inappropriate for one counsel to represent both the
                  Purchaser or Seller (in which case the Indemnifying Party
                  shall not have the right to assume the defense of such action
                  on the Indemnified Party's behalf).

         (b)      SETTLEMENT OF CLAIMS. The Indemnified Party may at any time
                  notify the Indemnifying Party of its intention to settle or
                  compromise any claim, suit or action against the Indemnified
                  Party (without the consent of the Indemnifying Party) in
                  respect of which indemnification payments may be sought from
                  the Indemnifying Party hereunder, provided that the
                  Indemnifying Party shall have no further liability in respect
                  thereof.

         (c)      SUBROGATION. The Indemnifying Party shall be subrogated to any
                  claims or rights of the Indemnified Party as against any other
                  persons with respect to any amount paid by the Indemnifying
                  Party under this ARTICLE 7. The Indemnified Party shall
                  cooperate with the Indemnifying Party, at the Indemnifying
                  Party's expense, in the assertion by the Indemnifying Party of
                  any such claim against such other persons.

         (d)      PAYMENT TO PURCHASER. Purchaser shall have the right to secure
                  reimbursement for costs and liabilities incurred for which
                  indemnification is provided hereunder, from the Escrow Holder
                  on a quarterly basis in accordance with the Escrow Agreement.

         (e)      PAYMENT TO INDEMNIFYING PARTY. In the event Seller is the
                  Indemnifying Party with respect to a claim, suit, action or
                  state of facts with respect to which Seller is providing the
                  defense of Purchaser or an Indemnified Party affiliated with
                  Purchaser, Seller shall have the right to secure reimbursement
                  for the incremental costs incurred solely in connection with
                  the defense or payment of such claim, suit, action or state of
                  facts from the Escrow Holder on a quarterly basis in
                  accordance with the Escrow Agreement; provided that Purchaser
                  and Seller shall have agreed in writing to the dollar amount
                  of such incremental costs and provided further that if the
                  parties fail to agree for a period of sixty (60) days, the
                  amount of incremental costs to be reimbursed shall be subject
                  to dispute resolution in accordance with SECTION 9.14.
                  Notwithstanding the foregoing, no such reimbursement may be
                  requested or provided before the first anniversary of the
                  Closing Date, and on and after such first anniversary Seller
                  may request and receive reimbursement for costs incurred for
                  which indemnification is provided hereunder without regard to
                  whether such costs were paid or incurred prior to or after
                  such first anniversary date.

                                       31
<PAGE>

         (f)      DOCUMENTATION. With respect to a request for reimbursement
                  under paragraph (e) above Seller shall provide such
                  documentation relating to such claim as Purchaser shall
                  reasonably request.

         (g)      CERTAIN LIMITATIONS. Neither party shall have any liability
                  for indemnification to the other party pursuant to this
                  ARTICLE 7 unless and until the aggregate amount of all Losses
                  for which a party is entitled to receive indemnification from
                  the other party exceeds $200,000 (solely under this Agreement
                  and the Servicing Agreement and not under the Prior Sale
                  Agreement) at which time the Indemnified Party shall be
                  entitled to indemnification under ARTICLE 7 for all Losses as
                  exceed $200,000. Notwithstanding anything to the contrary in
                  this Agreement or the Prior Sale Agreement, there shall be no
                  liability of Seller under this Article 7 (including all
                  liabilities under the Prior Sale Agreement) in an aggregate
                  amount in excess of the Hold Back Amount or such lesser amount
                  as is on deposit with the Escrow Holder from time to time.
                  Notwithstanding anything to the contrary, there shall be full
                  liability without respect to any financial floor for
                  indemnification for any claim brought in connection with
                  Taxes, any Mississippi Account, any Alabama Opt-Out Account or
                  any Excluded Account subject to repurchase, any liabilities
                  retained by Seller pursuant to SECTION 6.2(j) and any
                  liabilities under agreements that pertain to the Acquired
                  Assets that are not specifically assumed by Purchaser
                  hereunder.

         (h)      SURVIVAL OF INDEMNIFICATION OBLIGATIONS. The obligations of
                  the parties set forth in this ARTICLE 7 shall survive the
                  Closing Date for a period of two (2) years from the Closing
                  Date, except that a claim for indemnification for which notice
                  was given pursuant to SECTION 7.4(a) hereof by an Indemnified
                  Party prior to the end of such period shall survive until such
                  claim is fully and finally determined, and except that the
                  indemnification by Seller shall continue as to: (i) the
                  obligations and representations of Seller and Purchaser under
                  the Assignment and Assumption Agreement, as to which no time
                  limitation shall apply; (ii) the representations and
                  warranties of Seller set forth in SECTIONS 5.1(a), 5.1(b),
                  5.1(c) and 5.1(d), and the covenant of Seller set forth in
                  SECTION 6.2(f) as to all of which no time limitation shall
                  apply; and (iii) the representations and warranties of
                  Purchaser set forth in SECTION 5.2(a), 5.2(b) and 5.2(c), and
                  the covenant of Purchaser set forth in SECTION 6.3 (insofar as
                  it relates to the payment of Taxes) as to which no time
                  limitation shall apply.

                            ARTICLE 8 - TERMINATION

8.1      TERMINATION BY EITHER PARTY. Anything contained in this Agreement to
         the contrary notwithstanding, this Agreement may be terminated prior to
         the Closing Date:

                                       32
<PAGE>

         (a)      by either Purchaser or Seller if a material breach of any
                  provision of this Agreement has been committed by the other
                  party and such breach has not been waived;

         (b)      by the mutual consent of the parties; or

         (c)      by Purchaser or Seller if the Closing Date has not occurred by
                  January 15, 2001 by reason of the act or failure to act of the
                  nonterminating party.

8.2      EFFECT OF TERMINATION. In the event that this Agreement shall be
         terminated pursuant to this ARTICLE 8, all further obligations of the
         parties under this Agreement (other than SECTIONS 6.1(c), 6.1(d) and
         9.6) shall be terminated without further liability of any party to the
         other, provided that nothing herein shall relieve any party from
         liability for its breach of this Agreement.

                           ARTICLE 9 - MISCELLANEOUS
                           -------------------------

9.1      SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of each party contained in this Agreement or in any
         certificates or other instruments delivered pursuant to this Agreement
         will survive the Closing of the transactions contemplated herein
         through the period during which claims for indemnification may be made
         pursuant to ARTICLE 7. All of such representations and warranties will
         be effective regardless of any investigation that any party has
         undertaken or failed to undertake.

9.2      NOTICES. All notices and other communications by Purchaser or Seller
         hereunder shall be in writing to the other party and shall be deemed to
         have been duly given when delivered in person or to an overnight
         courier service, receipt requested, or sent via telecopy transmission,
         receipt requested or when posted by the United States registered or
         certified mail, with postage prepaid, addressed as follows:

         If to Seller:           Fidelity Federal Bank, A Federal Savings Bank
                                 4565 Colorado Boulevard
                                 Los Angeles, California 90039
                                 Attn:  John M. Michel
                                 Fax Number:  818/549-3002

         copy to:                Fidelity Federal Bank, A Federal Savings Bank
                                 4565 Colorado Boulevard
                                 Los Angeles, California
                                 Attn:  Godfrey B. Evans, Esq.
                                 Fax Number:  818/549-3002

         If to Purchaser:        Household Bank (SB), N.A.
                                 1441 Schilling Place
                                 Salinas, CA 93901
                                 Attn:  President/CEO
                                 Fax Number:  831/755-2921

                                       33
<PAGE>

         copy to:                Household Credit Services, Inc.
                                 2700 Sanders Road
                                 Prospect Heights, IL 60070
                                 Attn:  General Counsel
                                 Fax Number:  847/205-7417

         or to such other addresses as a party may from time to time designate
         by notice as provided herein, except that notices of change of address
         shall be effective only upon actual receipt.

9.3      ASSIGNMENT. Prior to the Closing, the rights of any party under this
         Agreement shall not be assigned or transferred, except to an Affiliate,
         by any party without the prior written approval of the other parties
         hereto. Following the Closing, the rights of any party under this
         Agreement shall not be assigned or transferred, except to an Affiliate,
         by any party without the prior written approval of the other parties
         hereto, which approval shall not be unreasonably withheld; PROVIDED
         HOWEVER, that the foregoing shall not prohibit or require the other
         party's consent to an assignment in connection with a merger or
         consolidation with any other party or the sale of all or substantially
         all of a party's assets to another federally insured depository
         institution.

9.4      ENTIRE AGREEMENT. This Agreement, together with the exhibits to this
         Agreement, constitutes the entire agreement by the parties and
         supersedes any other agreement, whether written or oral, that may have
         been made or entered into by or on behalf of Seller and Purchaser
         relating to the matters contemplated hereby.

9.5      AMENDMENTS AND WAIVERS. This Agreement may be amended, modified,
         superseded, or canceled, and any of the terms, representations,
         warranties or covenants hereof may be waived, only by written
         instrument executed by each of the parties or, in the case of a waiver,
         by the party waiving compliance. In the course of the planning and
         coordination of this Agreement, written documents have been exchanged
         between the parties. Such written documents shall not be deemed to
         amend or supplement this Agreement. The failure of any party at any
         time or times to require performance of any provision hereof shall in
         no manner affect the right at a later time to enforce the same. No
         waiver by any party of any condition or of any breach of any term,
         representation, warranty or covenant under this Agreement, whether by
         conduct or otherwise, in any one or more instances, shall be deemed to
         be or construed as a further or continuing waiver of any other
         condition or of any breach of any such condition of breach or waiver of
         any other condition or of any breach of any other term, representation,
         warranty or covenant under this Agreement.

                                       34
<PAGE>

9.6      EXPENSES. The parties will each bear their own legal, accounting and
         other costs in connection with the transactions herein, including
         Taxes, attributable to the sale of the Acquired Assets from Seller to
         Purchaser, unless otherwise specified in this Agreement. Each party
         hereto agrees to timely sign and deliver such certificates or forms as
         may be reasonably requested to establish an exemption form (or
         otherwise reduce), or file Tax returns with respect to, such Taxes.

9.7      CAPTIONS; COUNTERPARTS. The captions in this Agreement are for
         convenience only and shall not be considered a part of or affect the
         construction or interpretation of any provision of this Agreement. This
         Agreement may be executed in two or more counterparts, each of which
         shall be an originals, but all of which together shall constitute one
         and the same instrument.

9.8      GOVERNING LAW. This Agreement shall be governed by and construed and
         interpreted in accordance with the internal laws of the State of
         Delaware, without regard to principles of conflict of laws.

9.9      SEVERABILITY. If any provision of this Agreement or portion thereof is
         held invalid, illegal, void or unenforceable by reason of any rule or
         law, administrative or judicial provision or public policy, such
         provision shall be ineffective only to the extent invalid, illegal,
         void or unenforceable, and the remainder of such provision and all
         other provisions of this Agreement shall nevertheless remain in full
         force and effect.

9.10     INDEPENDENT CONTRACTORS. In the performance of its duties or
         obligations under this Agreement, no Seller shall be deemed to be,
         permit itself to be, or understood to be the agent of Purchaser and
         Seller shall at all times take such measures as are necessary to ensure
         that its status shall be that of an independent contractor operating as
         a separate entity.

9.11     NO JOINT VENTURE. Nothing in this Agreement shall be deemed to create a
         partnership or joint venture among the Seller and Purchaser. Except as
         expressly set forth herein, no party shall have any authority to bind
         or commit any other party.

9.12     ATTORNEYS' FEES. In the event of any litigation, arbitration or other
         proceeding to enforce, interpret or declare the rights or obligations
         of any party to this Agreement, the prevailing party shall be entitled
         to costs, including attorneys' fees, in connection with any such
         proceeding.

9.13     REGULATORY APPROVAL. Purchaser acknowledges that this Agreement is
         subject to approval or nonobjection of the Regional Director of the
         Office of Thrift Supervision pursuant to Thrift Bulletin 50. Purchaser
         expressly authorizes Seller to submit this Agreement to the Regional
         Director of the Office of Thrift Supervision for review, and this
         Agreement shall not become effective until such approval or
         nonobjection by the Office of Thrift Supervision has been obtained.

                                       35
<PAGE>

9.14     DISPUTE RESOLUTION. Purchaser and Seller shall each designate a
         representative (each, a "Representative") to oversee compliance with
         each party's respective obligations under this Agreement. If either
         Purchaser or Seller disputes the other's determination under or
         interpretation of any Section of this Agreement (a "Dispute"), the
         following procedure shall be followed to resolve such Dispute:

                  STEP 1: The Representatives shall meet (by conference
         telephone call or in person at a mutually agreeable site) to attempt to
         resolve the Dispute in a mutually acceptable manner. If agreement is
         reached pursuant to this Step 1, payment or other resolution shall be
         made or performed within five days in accordance with such agreement.
         If no agreement is reached within a reasonable time, the parties shall
         proceed to Step 2.

                  STEP 2: The chief executive officer of Purchaser and the chief
         executive officer of Bank Plus shall meet (by conference telephone call
         or in person at a mutually agreeable site) within 72 hours after notice
         of an impasse is given pursuant to Step 1. The chief executive officers
         shall attempt to resolve the Dispute in a mutually acceptable manner.
         If agreement is reached pursuant to this Step 2, payment or other
         resolution shall be made or performed within five days in accordance
         with such agreement. If no agreement is reached within a reasonable
         time, Purchaser or Seller may pursue any legal or equitable remedies
         available to them. Notwithstanding the foregoing, Purchaser and Seller
         shall give due consideration to whether arbitration might be a mutually
         acceptable way to resolve the dispute.

                  If and to the extent the parties mutually agree, Purchaser and
         Seller shall submit the Dispute involved in such impasse to an
         arbitrator jointly selected by the parties who shall be a person
         reasonably experienced in matters involving commercial transactions.
         Any such arbitration shall be conducted under the auspices, and
         pursuant to the Commercial Arbitration Rules, of the American
         Arbitration Association and in accordance with the Federal Arbitration
         Act (PROVIDED, HOWEVER, that in the event of conflict between such
         rules or Act and the terms of this Agreement, the terms of this
         Agreement shall govern) and be conducted at such location as Purchaser
         and Seller shall mutually agree; PROVIDED, HOWEVER, that if the parties
         are unable to agree on a location, the arbitration shall be conducted
         in San Francisco, California. Each party shall bear its own expenses
         but those related to fees and expenses of the arbitrator shall be borne
         equally. The award rendered by the arbitrator shall be final and
         conclusive upon the parties and judgment thereon may be entered in any
         court having jurisdiction. All statutes of limitation which would
         otherwise be applicable shall apply to any arbitration proceeding.
         Unless otherwise agreed to in writing by Purchaser and Seller, a final
         decision of the arbitrator may be appealed to any court of competent
         jurisdiction by either party.

                                       36
<PAGE>

                  IN WITNESS WHEREOF, Seller and Purchaser have caused this
Agreement to be duly executed as of the date first above written.

                                    Fidelity Federal Bank, A Federal Savings
                                    Bank, Seller

                                    By:
                                           -------------------------------------
                                    Name:
                                           -------------------------------------
                                    Title:
                                           -------------------------------------

                                    Household Bank (SB), N.A., Purchaser

                                    By:
                                           -------------------------------------
                                    Name:
                                           -------------------------------------
                                    Title:
                                           -------------------------------------

                                       37

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