Document:

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                                                                    Exhibit 10.1

                          TEXAS UNITED BANCSHARES, INC.

                        1998 INCENTIVE STOCK OPTION PLAN

                             1. Purpose of the Plan.

      This incentive stock option plan (hereinafter called the "Plan") for Texas
United Bancshares, Inc. (hereinafter called the "Company") is intended to
advance the interests of the Company by providing officers and other key
employees who have substantial responsibility for the direction and management
of the Company with additional incentive for them to promote the success of the
business, to increase their proprietary interest in the success of the Company,
and to encourage them to remain in its employ. The above aims will be
effectuated through the granting of stock options. It is intended that options
issued under the Plan will qualify as incentive stock options (hereinafter
called "ISOs") under Section 422 of the Internal Revenue Code of 1986, as
amended and the terms of the Plan shall be interpreted with this intention.

                         2. Administration of the Plan.

      Subject to the provisions of the Plan, the Board of Directors (the
"Board") shall have plenary authority, in its discretion: (a) to determine the
employees of the Company and its subsidiaries (from among the class of employees
eligible under Section 3 to receive options under the Plan) to whom options
shall be granted; (b) to determine the time or times at which options shall be
granted; (c) to determine the option price of the shares subject to each option,
which price shall not be less than the minimum specified in Section 5; (d) to
determine the time or times when each option shall become exercisable and the
duration of the exercise period; and (e) to interpret the Plan and to prescribe,
amend, and rescind rules and regulations relating to it. The interpretation and
construction of any provision of the Plan by the Board shall be final and
conclusive. The Board shall consult with counsel, who may be counsel to the
Company, and shall not incur any liability for any action taken in good faith
and reliance upon the advice of counsel. Any action may be taken by written
instrument signed by all the members of the Board. An action so taken shall be
fully as effective as if it had been taken by unanimous vote of the Board at a
meeting duly called and held.
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                    3. Eligibility and Limitations on Options
                             Granted Under the Plan.

      Options will be granted only to persons who are key employees of the
Company or a subsidiary corporation of the Company who perform services of major
importance in the management, operation and development of the business of the
Company or of any subsidiary of the Company. The term "key employees" shall
include officers, executives, and supervisory personnel, as well as other
employees of the Company or a subsidiary corporation of the Company. The term
"subsidiary corporation" shall, for the purpose of this Plan be defined in the
same manner as such term is defined in Section 424(f) of the Internal Revenue
Code. The Company shall effect the grant of options under the Plan in accordance
with the determinations made by the Board pursuant to provisions of the Plan by
execution and delivery of written instruments in a form approved by the Board.

                    4. Shares of Stock Subject to the Plan.

      There will be reserved for use upon the exercise of options to be granted
from time to time under the Plan (subject to the provisions of Section 13) an
aggregate of 45,000 shares of the Common Stock of the Company, $1.00 par value
per share ("Company Common Stock"), which shares shall be authorized but
unissued shares of the Common Stock. Any shares subject to an option under the
Plan, which option for any reason expires or is terminated unexercised as to
such shares, may again be subjected to an option under the Plan.

                                5. Option Price.

      The purchase price under each option issued under the Plan shall be
determined by the Board at the time the option is granted, but in no event shall
such purchase price be less than 100% of the fair market value of the Company's
Common Stock on the date of grant, said fair market value to be determined in
good faith by the Board.

                         6. Dilution or Other Agreement.

      In the event that additional shares of Common Stock are issued pursuant to
a stock split or a stock dividend, the number of shares of Common Stock then
covered by each outstanding option granted hereunder shall be increased
proportionately with no increase in the total purchase price of the shares then
so covered, and the number of shares of Common Stock reserved for the purpose of
the Plan shall be increased by the same proportion. In the event that the shares
of Common Stock of the Company from time to time issued and outstanding are
reduced by a combination of shares, the number of shares of Common Stock then
covered by each outstanding option granted hereunder shall be reduced
proportionately with no reduction in the total price of the shares then so
covered, and the number of shares

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of Common Stock reserved for the purposes of the Plan shall be reduced by the
same proportion. All such adjustments shall be made by the Board whose
determination upon the same shall be final and binding upon the optionees. No
fractional shares shall be issued, and any fractional shares resulting from the
computations pursuant to this Section 6 shall be eliminated from the respective
options. No adjustments shall be made for cash dividends or the issuance to
stockholders of rights to subscribe for additional Common Stock or other
securities.

                   7. Period of Option and Certain Limitations
                              on Right to Exercise.

      All options issued under the Plan shall be for such a period as the Board
shall determine, but for not more than ten (10) years from the date of grant
hereof. The period of the option, once it is granted, may be reduced only as
provided for in Section 11 in connection with the termination of employment or
death of the optionee. Except as otherwise provided herein, no option may be
exercised unless the optionee is, at the time of such exercise, in the employ of
the Company or a subsidiary corporation of the Company and shall have been
continuously so employed since the grant of his option. Absence or leave
approved by the management of the Company shall not be considered an
interruption of employment for any purpose of the Plan. The exercise of any
option shall be contingent upon receipt by the Company of cash or certified bank
check to its order in an amount equal to the full option price of the shares
being purchased. In order to facilitate the accumulation of funds to enable
employees to exercise their option, they will have the right, if they so elect,
to direct the Company or a subsidiary corporation of the Company to withhold
from their compensation regular amounts to be applied to the exercise of the
options. Funds credited to the stock option accounts will be under the control
of the Company until applied to the payment of the option price at the direction
of the employee or returned to the employee in the event the amount is not used
for purchase of shares under option, and all funds received or held by the
Company may be used for any corporate purpose, and no interest shall be payable
to the participant on account of any amounts so held. Such amounts may be
withdrawn by the employee at any time, in whole or in part, and for any reason.
No optionee or his legal representative, legatees, or distributees, as the case
may be, shall be deemed to be a holder of any share subject to an option unless
and until certificates for such shares are issued to him or them under the terms
of the Plan. No adjustment shall be made for dividends or other rights for which
the record date is prior to the date such stock certificate is issued. In no
event may an option be exercised after the expiration of its term. The exercise
of an option in any manner shall result in a decrease in the number of shares of
Common Stock which thereafter may be available under the Plan by the number of
shares as to which the option is exercised. If an optionee shall die while
employed by the Company or within three (3) months after retirement, such option
may be exercised (to the extent that the optionee would have been entitled to do
so at the date of his death) by the legatees,

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personal representative or distributees of the optionee during the balance of
the term thereof or within one (1) year of the date of the optionee's death,
whichever is shorter. Options may be exercised in whole or in part, but only
with respect to whole shares of stock.

                             8. Ten-Percent Owners.

      Notwithstanding the provisions of Sections 2, 5 and 7, above, the
following terms and conditions shall apply to options granted hereunder to a
"10-percent owner." For this purpose, a "10-percent owner" shall mean an
optionee who, at the time the option is granted, owns stock possessing more then
10 percent of the total combined voting power of all classes of stock of the
Company or of any subsidiary thereof. With respect to a 10-percent owner:

      (a)   the price at which shares of stock may be purchased under an option
            granted pursuant to this Plan shall be not less than 110 percent of
            the fair market value thereof, said fair market value being
            determined in the manner described at Section 5, above; and

      (b)   the period during which any such option may be exercised, to be
            fixed by the Board in the manner described at Section 7, above,
            shall expire not later than five (5) years from the date the option
            is granted.

                                9. Assignability.

      Each option granted under this Plan shall be transferable only by will or
the laws of descent and distribution and shall be exercisable, during his
lifetime, only by the employee for whom the option is granted. Except as
permitted by the preceding sentence, no option granted under the Plan or any of
the rights and privileges thereby conferred shall be transferred, assigned,
pledged, or hypothecated in any way (by operation of law or otherwise), and no
such option, right, or privilege shall be subject to execution, attachment or
similar process. Upon any attempt so to transfer, assign, pledge, hypothecate,
or otherwise dispose of the option, or of any right or privilege conferred
thereby, contrary to the provisions hereof, or upon the levy of any attachment
or similar process upon such option, right or privilege, the option and such
rights and privileges shall immediately become null and void.

                     10. Annual Limit on Grant and Exercise.

      Options shall not be granted to any individual pursuant to this Plan, the
effect of which would be to permit such person to first exercise options, in any
calendar year, for the purchase of shares having a fair market value in excess
of $100,000 (determined at the time of the grant of the options in the manner
described at Section 5, above). An optionee

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hereunder may exercise options for the purchase of shares valued in excess of
$100,000 (determined at the time of grant of the options in the manner described
at Section 5, above) in a calendar year, but only if the right to exercise such
options shall have first become available in prior calendar years.

                    11. Effect of Termination of Employment.
                              Death or Disability.

      (a)   In the event of the termination of employment of an optionee
(otherwise than by death or retirement of the optionee at his Retirement Date,
(as hereinafter defined), by the Company or by any subsidiary corporation of the
Company employing the optionee at such time) any option or options granted to
him under the Plan to the extent not theretofore exercised shall be deemed
canceled and terminated forthwith, except that, such optionee may exercise any
options theretofore granted to him, which have not then expired, and are
otherwise exercisable within the provisions of the option, within three (3)
months after such termination. If the employment of an optionee shall be
terminated by reason of the optionee's retirement at his Retirement Date by the
Company or by any subsidiary corporation of the Company employing the optionee
at such time, the optionee shall have the right to exercise such option or
options by him to the extent that such options have not expired, and at any time
within three (3) months after such retirement. The provisions of Section 7 to
the contrary notwithstanding, upon retirement at his Retirement Date all options
held by an optionee shall be immediately exercisable in full. The transfer of an
optionee from the employ of the Company to a subsidiary corporation of the
Company or vice versa, or from one subsidiary corporation to another, shall not
be deemed to constitute a termination of employment for purposes of this Plan.

      (b)   In the event that an optionee shall die while employed by the
Company or by any subsidiary corporation of the Company or shall die within
three (3) months after retirement at his Retirement Date (by the Company or by
any subsidiary corporation of the Company), any option or options granted to him
under the Plan and not theretofore exercised by him or expired shall be
exercisable by the estate of the optionee or by any person who acquired such
option by bequest or inheritance from the optionee in full, at any time within
one (1) year after the death of the optionee. References hereinabove to the
optionee shall be deemed to include any person entitled to exercise the option
after the death of the optionee under the terms of this Section.

      (c)   In the event of the termination of employment of an optionee by
reason of the optionee's disability, the optionee shall have the right to
exercise all options held by him, to the extent that options have not previously
expired or been exercised any time within one (1) year after such termination.
The term "disability" shall, for the purposes of this Plan, be

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defined in the same manner as such term is defined in Section 72(m)(7) of the
Internal Revenue Code.

      (d)   For the purposes of this Plan, "Retirement Date" shall mean any date
an employee is otherwise entitled to retire under the Company's retirement plans
and shall include normal retirement at age 65, early retirement at age 62, and
retirement at age 60 after 30 years of service.

                   12. Expiration and Termination of the Plan.

      Options may be granted under the Plan at any time or from time to time as
long as the total number of shares optioned or purchased under this Plan does
not exceed 45,000 shares of Common Stock. The Plan may be abandoned at any time
by the board of directors of the Company except with respect to any options then
outstanding under the Plan. No option shall be granted pursuant to the Plan
after ten (10) years from the effective date of the Plan.

                             13. Amendment of Plan.

      The Board may at any time and from time to time modify and amend the Plan
(including such form of option agreement) in any respect; provided, that no such
amendment shall:

      (a)   increase (except in accordance with Section 6) the maximum number of
shares for which options may be granted under the Plan either in the aggregate
or to any individual employee; or

      (b)   reduce (except in accordance with Section 6) the minimum option
prices which may be established under the Plan; or

      (c)   extend the period or periods during which options may be granted or
exercised; or

      (d)   change the provisions relating to the determination of employees to
whom options shall be granted and the number of shares to be covered by such
options; or

      (e)   change the provisions relating to adjustments to be made upon
changes in capitalization. The termination or any modification or amendment of
the Plan shall not, without the consent of an employee, affect his rights under
an option theretofore granted to him.

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                         14. Effective Date of the Plan.

      This Plan shall become effective on the later of the date of its adoption
by the Board or its approval by the vote of the holders of a majority of the
outstanding shares of the Company's Common Stock. This Plan shall not become
effective until such shareholder approval shall be obtained within twelve (12)
months before or after the adoption of the Plan by the Board.

                          15. Miscellaneous Provisions

      (a)   The Company shall be permitted to withhold from any award under this
Plan the amount of any withholding taxes required to be withheld by the Company
under state or federal law or regulations.

      (b)   The granting of any option under this Plan shall not impose upon the
Company any obligation to employ or to continue to employ any optionee and the
right of the Company to terminate the employment of any person shall not be
diminished or effected by reason of the fact that the option has been granted to
him or her under this Plan.

      (c)   Options under this Plan shall be granted pursuant to a form of
Option Agreement substantially in the form of the Stock Option Agreement
attached as Appendix I hereto including the form of Subscription Agreement
attached as Exhibit A to such Stock Option Agreement.

      (d)   The Plan shall be binding upon the Company and its subsidiaries and
shall be governed by the law of Texas.

      (e)   No determination made or action taken by the Board pursuant to this
Plan shall be construed as a guarantee by the Board or its members or the
Company concerning the tax treatment of any option granted under the Plan.

                                      -7-<PAGE>
                                                                    Exhibit 10.2

                                    FORM OF
                             STOCK OPTION AGREEMENT

         THIS AGREEMENT (the "Agreement") is made by and between Texas United
Bancshares, Inc., a Texas corporation (the "Company"), and _____________, an
officer of the Company or a subsidiary corporation of the Company (the
"Optionee") and shall be effective ______________ (the "Effective Date").

         WHEREAS, Optionee was a key employee of the Company's predecessor
corporation, Premier Bancshares, Inc, ("Premier"), and effective as of
___________, the Optionee was granted certain stock options to purchase
Premier's stock prior to the formation of the Company;

         WHEREAS, Optionee has provided or will provide valuable assistance to
the Company with respect to the Company's business and operations; and

         WHEREAS, in view of the foregoing, the Company desires to grant to
Optionee an option to purchase shares of the Company's Common Stock, $1.00 par
value (the "Common Stock" as hereinafter provided), which option shall
constitute an assumption by the Company of those certain stock options that had
been granted to the Optionee by Premier as;

         NOW, THEREFORE, in consideration of the foregoing, of the mutual
covenants hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and
Optionee, intending to be legally bound, hereby agree as follows:

                              1. Grant of Option.

         The Corporation hereby grants to Optionee an option (the "Option") to
purchase all or any part of an aggregate of _______ shares of Common Stock (the
"Option Shares"), upon the terms and conditions hereinafter set forth.

                               2. Term of Option.

         The Option shall commence as of the Effective Date and, except as
otherwise provided in this Agreement, shall terminate on the date that is ten
(10) year's after the Effective Date (the "Expiration Date"). In the event of
the failure of Optionee to properly exercise the Option prior to the Expiration
Date, or in the event of the failure of Optionee to properly exercise the Option
with respect to all of the Option Shares prior to the Expiration Date, such part
or parts, or the whole, as the case may be, of the Option shall become null and
void and shall no longer be of, or have any, further force or effect. The right
to exercise the Option shall become vested in accordance with the following
schedule:

<TABLE>
<CAPTION>
                                                           CUMULATIVE
ON or AFTER                                          NO. of SHARES EXERCISABLE
------------                                         -------------------------
<S>                                                  <C>

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

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

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

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

</TABLE>

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                               3. Purchase Price.

         The purchase price of each Option Share shall be ______ per share.

                      4. Procedure for Exercise of Option.

         Optionee may exercise the Option at any time [subject to vesting
schedule, if any] by the sending of: (a) written notice of such exercise to the
Company, specifying the number of Option Shares to be purchased; (b) cash or a
certified check in United States funds in the amount of the purchase price; and
(c) a fully completed Subscription Agreement in the form of Exhibit "A" attached
hereto. Within thirty (30) days after receipt of all of the foregoing, the
Company shall deliver to Optionee the certificate or certificates representing
the Option Shares being purchased; provided, however, that such delivery may be
postponed at the discretion of the Company to enable the Company to comply with
any applicable procedures or requirements of any governmental agency or
regulatory authority (public or private) to which the Company may be subject.

                         5. Consolidation, Merger, Etc.

         Notwithstanding any other provisions of this Agreement, in the event
that the Company consolidates with, merges into, or transfers all or
substantially all of its assets or property to another corporation or other
legal entity, or in the event any such corporation acquires a controlling
interest in the Company, in a reorganization within the meaning of Section
368(a) of the Internal Revenue Code of 1986, as amended, or in the event of the
Company's dissolution or liquidation other than pursuant to any plan of such
reorganization, the Option of Optionee granted hereunder shall thereupon
terminate; provided, however, that, unless the Option granted under this
Agreement is assumed or a substitute Option therefor is issued by the surviving
or acquiring corporation in any such consolidation, merger, or other
reorganization (within its sole discretion), the Company shall give written
notice to Optionee, by registered or certified mail, return receipt requested,
first-class postage prepaid, at least thirty (30) days prior to the effective
date or estimated effective date of such consolidation, merger, reorganization,
dissolution, or liquidation, of the effective date or estimated effective date
of such consolidation, merger, reorganization, dissolution, or liquidation.

              6. Changes in Capital Structure of the Corporation.

         If the Company shall subdivide or split the outstanding shares of
Common Stock of the Company into a greater number of shares or combine such
outstanding shares into a lesser number of shares, or if the Company shall
declare any dividend or other distribution upon its outstanding shares of Common
Stock payable in shares of the Company's Common Stock, then the number of Option
Shares subject to the Option specified in this Agreement and the price per share
shall be equitably and proportionately adjusted for any such action. The
foregoing are the only adjustments which shall be made to the number of Option
Shares subject to the Option specified in this Agreement and the price per
share.

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                        7. Nontransferability of Option.

         Optionee's Option to purchase Option Shares under this Agreement may
not be sold, transferred, exchanged, assigned, pledged, discounted,
hypothecated, or otherwise disposed of, voluntarily, involuntarily or by
operation of law, except the same may be transferred by will or pursuant to the
laws of descent and distribution. In addition, this Option is not subject to
execution, attachment, or similar process. Any attempted assignment, transfer,
pledge, hypothecation, or other disposition of the Option contrary to the
provisions hereof and the levy of any execution, attachment, or similar process
upon the Option shall be null and void and without effect.

                          8. No Rights as Stockholder.

         The Option specified in this Agreement shall not prior to proper
exercise and issuance of a share certificate, entitle Optionee to any rights as
a stockholder of the Company including, without limitation, the right to receive
dividends or other distributions of any kind, the right to vote or otherwise act
at any annual or special meeting of Stockholders of the Company, the right to
receive notice of any corporate action (except as otherwise specified in Article
5 hereof), or the right to exercise any preemptive rights.

                                  9. Expenses.

         All expenses incurred by or on behalf of either party hereto in
connection with the authorization, preparation, execution, and consummation of
this Agreement, the Option specified herein, and the possible purchase of the
Option Shares, subject to the Option, including, without limitation of the
generality of the foregoing, all fees and expenses of representatives, counsel,
and accountants employed by either such party, shall be borne solely and
entirely by the party who or which has incurred the same.

                            10. Warranties Officers.

         The Company hereby represents and warrants as follows:

         (a) The Board has authorized the execution and delivery of this
Agreement by the officers of the Company executing same;

         (b) The Board has reserved for issuance, during the period the Option
specified herein is exercisable, such number of shares of Common Stock as shall
be necessary for full exercise of the Option specified in this Agreement; and

         (c) Any shares of Common Stock issued and delivered pursuant to the
exercise of the Option specified herein shall be validly issued, fully paid, and
nonassessable.

                               11. Miscellaneous.

         (a) All notices, requests, demands, and other communications hereunder
shall be in writing and shall be deemed to have been duly given, if delivered,
any delivery charges prepaid,

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or sent by registered or certified mail, return receipt requested, first-class
postage prepaid, as follows:

                  (i)      If to the Company, to:

                           Texas United Bancshares, Inc.
                           202 W. Colorado
                           La Grange, Texas 78945
                           Attention: Ervan E. Zouzalik

                  (ii)     If to Optionee, to:

or to such other address as either such party may designate in accordance with
this Section.

         (b) This Agreement shall be binding upon the parties hereto and their
respective successors and assigns, heirs, legatees, executors, administrators,
and legal and personal representatives.

         (c) The provisions of this Agreement are not intended to be (and shall
not serve) for the benefit of any creditor (other than a party hereto in its or
his/her capacity as such) of, or any other person (other than a party hereto in
its or his/her capacity as such) to whom any debts, liabilities, or obligations
are owed by (or who otherwise has a claim against), either party hereto, and no
such creditor or other person shall obtain any right under any provision hereof
or shall by reason of any such provision make claims in respect of the aforesaid
debts, liabilities, or obligations (or otherwise) against the Company or the
other.

         (d) The Article and other headings in this Agreement are inserted
solely as a matter of convenience and for reference and are not a part of this
Agreement. When the context requires, the masculine includes the female and
neuter genders and singular nouns and pronouns include the plural.

         (e) This Agreement supersedes all prior agreements and understandings,
oral or written, between the parties hereto with respect to the subject matter
hereof. Neither this Agreement, nor any provision hereof, may be changed,
waived, discharged, or terminated orally, but only by a statement in writing
signed by the party against which or whom the enforcement of such change,
waiver, discharge, or termination is sought.

         (f) This Agreement shall be construed and enforced in accordance with
the laws of the State of Texas.

                                      -4-
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         (g) Any other provision of this Agreement to the contrary
notwithstanding, the Company shall have no obligation to issue any share of its
Common Stock pursuant to the exercise of this Option if the issuance of such
shares would violate any law or regulation to which the Company is subject.

         EXECUTED effective as of the day and year first above written.

                                    COMPANY:

                                    TEXAS UNITED BANCSHARES, INC.

                                    __________________________________________
                                    Name:

                                    OPTIONEE:

                                    __________________________________________
                                    Name:

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