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                                                                    Exhibit 4.10

                             SOUTHBANC SHARES, INC.
                             1998 STOCK OPTION PLAN

      SECTION 1. PURPOSE

      The SouthBanc Shares, Inc. 1998 Stock Option Plan (the "Plan") is hereby
established to foster and promote the long-term success of SouthBanc Shares,
Inc. and its shareholders by providing directors, officers and employees of the
Corporation and its subsidiaries with an equity interest in the Corporation. The
Plan will assist the Corporation in attracting and retaining the highest quality
of experienced persons as directors, officers and employees and in aligning the
interests of such persons more closely with the interests of the Corporation's
shareholders by encouraging such parties to maintain an equity interest in the
Corporation.

      SECTION 2. DEFINITIONS

      For purposes of this Plan, the capitalized terms set forth below shall
have the following meanings:

      BOARD means the Board of Directors of the Corporation.

      CHANGE IN CONTROL shall mean an event deemed to occur if and when (a) an
offeror other than the Corporation purchases shares of the stock of the
Corporation pursuant to a tender or exchange offer for such shares, (b) any
person (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act)
is or becomes the beneficial owner, directly or indirectly, of securities of the
Corporation representing twenty-five percent (25%) or more of the combined
voting power of the Corporation's then outstanding securities, (c) the
membership of the board of directors of the Corporation changes as the result of
a contested election, such that individuals who were directors at the beginning
of any twenty-four (24) month period (whether commencing before or after the
date of adoption of this Plan) do not constitute a majority of the Board at the
end of such period, or (d) shareholders of the Corporation approve a merger,
consolidation, sale or disposition of all or substantially all of the
Corporation's assets, or a plan of partial or complete liquidation. If any of
the events enumerated in clauses (a) - (d) occur, the Board shall determine the
effective date of the change in control resulting therefrom, for purposes of the
Plan.

      CODE means the Internal Revenue Code of 1986, as amended from time to
time, and the regulations promulgated thereunder.

      CORPORATION means SouthBanc Shares, Inc., a Delaware corporation.

      DIRECTOR shall mean a director of the Corporation who is not also an
employee of the Corporation or its subsidiaries.

      DISABILITY means any physical or mental injury or disease of a permanent
nature which renders a Participant incapable of meeting the requirements of the
employment or service performed by such Participant immediately prior to the
commencement of such disability. The determination of whether a Participant is
disabled shall be made by the Board in its sole and absolute discretion.

      EXCHANGE ACT means the Securities Exchange Act of 1934, as amended from
time to time, and the rules and regulations promulgated thereunder.

      FAIR MARKET VALUE shall be determined as follows:

      (a) If the Stock is traded or quoted on the Nasdaq Stock Market or other
national securities exchange on any date, then the Fair Market Value shall be
the average of the highest and lowest selling price on such exchange on such
date or, if there were no sales on such date, then on the next prior business
day on which there was a sale.

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      (b) If the Stock is not traded or quoted on the Nasdaq Stock Market or
other national securities exchange, then the Fair Market Value shall be a value
determined by the Board in good faith on such basis as it deems appropriate.

      INCENTIVE STOCK OPTION means an option to purchase shares of Stock granted
to a Participant under the Plan which is intended to meet the requirements of
Section 422 of the Code.

      NON-QUALIFIED STOCK OPTION means an option to purchase shares of Stock
granted to a Participant under the Plan which is not intended to be an Incentive
Stock Option.

      OPTION means an Incentive Stock Option or a Non-Qualified Stock Option.

      PARTICIPANT means a Director or employee of the Corporation or its
subsidiaries selected by the Board to receive an Option under the Plan.

      PLAN means this SouthBanc Shares, Inc. 1998 Stock Option Plan.

      STOCK means the common stock, $0.01 par value, of the Corporation.

      TERMINATION FOR CAUSE shall mean termination because of a Participant's
personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties, willful
violation of any law, rule or regulation (other than traffic violations or
similar offenses) or material breach of any provision of any employment
agreement between the Corporation and/or any subsidiary of the Corporation and a
Participant.

      SECTION 3. ADMINISTRATION

      (a) The Plan shall be administered by the Board. Among other things, the
Board shall have authority, subject to the terms of the Plan, to grant Options,
to determine the individuals to whom and the time or times at which Options may
be granted, to determine whether such Options are to be Incentive Stock Options
or Non-Qualified Stock Options (subject to the requirements of the Code), to
determine the terms and conditions of any Option granted hereunder, and the
exercise price thereof.

      (b) Subject to the other provisions of the Plan, the Board shall have
authority to adopt, amend, alter and repeal such administrative rules,
guidelines and practices governing the operation of the Plan as it shall from
time to time consider advisable, to interpret the provisions of the Plan and any
Option and to decide all disputes arising in connection with the Plan. The Board
may correct any defect or supply any omission or reconcile any inconsistency in
the Plan or in any option agreement in the manner and to the extent it shall
deem appropriate to carry the Plan into effect, in its sole and absolute
discretion. The Board's decision and interpretations shall be final and binding.
Any action of the Board with respect to the administration of the Plan shall be
taken pursuant to a majority vote or by the unanimous written consent of its
members.

      SECTION 4. ELIGIBILITY AND PARTICIPATION.

      Officers and employees of the Corporation and its subsidiaries and
Directors shall be eligible to participate in the Plan. The Participants under
the Plan shall be selected from time to time by the Board, in its sole
discretion, from among those eligible, and the Board shall determine, in its
sole discretion, the numbers of shares to be covered by the Option or Options
granted to each Participant. Options intended to qualify as Incentive Stock
Options shall be granted only to persons who are eligible to receive such
options under Section 422 of the Code.

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      SECTION 5. SHARES OF STOCK AVAILABLE FOR OPTIONS

      (a) The maximum number of shares of Stock which may be issued and
purchased pursuant to Options granted under the Plan is 228,131, subject to the
adjustments as provided in Section 5 and Section 9, to the extent applicable. If
an Option granted under this Plan expires or terminates before exercise or is
forfeited for any reason, the shares of Stock subject to such Option, to the
extent of such expiration, termination or forfeiture, shall again be available
for subsequent Option grants under Plan. Shares of Stock issued under the Plan
may consist in whole or in part of authorized but unissued shares or treasury
shares.

      (b) In the event that the Board determines, in its sole discretion, that
any stock dividend, stock split, reverse stock split or combination,
extraordinary cash dividend, creation of a class of equity securities,
recapitalization, reclassification, reorganization, merger, consolidation,split-
up, spin-off, combination, exchange of shares, or other similar transaction
affects the Stock such that an adjustment is required in order to preserve the
benefits or potential benefits intended to be granted or made available under
the Plan to Participants, the Board shall have the right to proportionately and
appropriately adjust equitably any or all of (i) the maximum number and kind of
shares of Stock in respect of which Options may be granted under the Plan to
Participants, (ii) the number and kind of shares of Stock subject to outstanding
Options held by Participants, and (iii) the exercise price with respect to any
Options held by Participants, without changing the aggregate purchase price as
to which such Options remain exercisable, provided that no adjustment shall be
made pursuant to this Section if such adjustment would cause the Plan to fail to
comply with Section 422 of the Code with regard to any Incentive Stock Options
granted hereunder. No fractional Shares shall be issued on account of any such
adjustment.

      (c) Any adjustments under this Section will be made by the Board, whose
determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive.

      SECTION 6. NON-QUALIFIED STOCK OPTIONS

      The Board may, from time to time, grant Non-Qualified Stock Options to
Participants upon such terms and conditions as the Board may determine. Non-
Qualified Stock Options granted under this Plan are subject to the following
terms and conditions:

      (a) Price. The purchase price per share of Stock deliverable upon the
exercise of each Non-Qualified Stock Option shall be determined by the Board on
the date the option is granted. Such purchase price shall not be less than one
hundred percent (100%) of the Fair Market Value of the Stock on the date of
grant. Shares may be purchased only upon full payment of the purchase price.
Payment of the purchase price may be made, in whole or in part, through the
surrender of shares of the Stock at the Fair Market Value of such shares on the
date of surrender or through a "cashless exercise" involving a stock brokerage
firm.

      (b) Terms of Options. The term during which each Non-Qualified Stock
Option may be exercised shall be determined by the Board, but in no event shall
a Non-Qualified Stock Option be exercisable in whole or in part more than ten
(10) years from the date of grant. Except as provided herein, no Non- Qualified
Stock Option granted under this Plan is transferable except by will or the laws
of descent and distribution. The Board shall have discretionary authority to
permit the transfer of any Non-Qualified Stock Option to members of a
Participant's immediate family, including trusts for the benefit of such family
members and partnerships in which such family members are the only partners;
provided, however, that a transferred Non-Qualified Stock Option may be
exercised by the transferee on any date only to the extent that the Participant
would have been entitled to exercise the Non-Qualified Stock Option on such date
had the Non-Qualified Stock Option not been transferred. Any transferred
Non-Qualified Stock Option shall remain subject to the terms and conditions of
the Participant's stock option agreement.

      (c) Termination of Service. Unless otherwise determined by the Board, upon
the termination of a Participant's employment (or, in the case of a Director,
service as a member of the Board) for any reason other than Disability, death or
Termination for Cause, the Participant's Non-Qualified Stock Options shall be
exercisable only as

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to those shares which were immediately exercisable by the Participant at the
date of termination and only for a period of one (1) year following termination.
Notwithstanding any provision set forth herein nor contained in any Agreement
relating to the award of an Option, in the event of Termination for Cause, all
rights under the Participant's Non-Qualified Stock Options shall expire upon
termination. In the event of death or termination as a result of Disability of
any Participant, all Non-Qualified Stock Options held by the Participant,
whether or not exercisable at such time, shall be exercisable by the Participant
or his legal representatives or beneficiaries of the Participant for two (2)
years or such longer period as determined by the Board following the date of the
Participant's death or termination of service due to Disability, provided that
in no event shall the period extend beyond the expiration of the Non-Qualified
Stock Option term.

      SECTION 7. INCENTIVE STOCK OPTIONS

      The Board may, from time to time, grant Incentive Stock Options to
eligible employees. Incentive Stock Options granted pursuant to the Plan shall
be subject to the following terms and conditions:

      (a) Price. The purchase price per share of Stock deliverable upon the
exercise of each Incentive Stock Option shall be not less than one hundred
percent (100%) of the Fair Market Value of the Stock on the date of grant.
However, if a Participant owns (or, under Section 422(d) of the Code, is deemed
to own) stock possessing more than ten percent (10%) of the total combined
voting power of all classes of Stock, the purchase price per share of Stock
deliverable upon the exercise of each Incentive Stock Option shall not be less
than one hundred ten percent (110%) of the Fair Market Value of the Stock on the
date of grant. Shares may be purchased only upon payment of the full purchase
price. Payment of the purchase price may be made, in whole or in part, through
the surrender of shares of the Stock at the Fair Market Value of such shares on
the date of surrender or through a "cashless exercise" involving a stock
brokerage firm.

      (b) Amounts of Options. Subject to Sections 4(b) and (c), Incentive Stock
Options may be granted to any eligible employee in such amounts as determined by
the Board. In the case of an option intended to qualify as an Incentive Stock
Option, the aggregate Fair Market Value (determined as of the time the option is
granted) of the Stock with respect to which Incentive Stock Options granted are
exercisable for the first time by the Participant during any calendar year shall
not exceed $100,000. The provisions of this Section 7(b) shall be construed and
applied in accordance with Section 422(d) of the Code and the regulations, if
any, promulgated thereunder. To the extent an award is in excess of such limit,
it shall be deemed a Non-Qualified Stock Option. The Board shall have discretion
to redesignate options granted as Incentive Stock Options as Non-Qualified Stock
Options.

      (c) Terms of Options. The term during which each Incentive Stock Option
may be exercised shall be determined by the Board, but in no event shall an
Incentive Stock Option be exercisable in whole or in part more than ten (10)
years from the date of grant. If at the time an Incentive Stock Option is
granted to an employee, the employee owns Stock representing more than ten
percent (10%) of the total combined voting power of the Corporation (or, under
Section 422(d) of the Code, is deemed to own Stock representing more than ten
percent (10%) of the total combined voting power of all such classes of Stock,
by reason of the ownership of such classes of Stock, directly or indirectly, by
or for any brother, sister, spouse, ancestor or lineal descendent of such
employee, or by or for any corporation, partnership, estate or trust of which
such employee is a shareholder, partner or beneficiary), the Incentive Stock
Option granted to such employee shall not be exercisable after the expiration of
five (5) years from the date of grant. No Incentive Stock Option granted under
this Plan is transferable except by will or the laws of descent and
distribution.

      (d) Termination of Employment. Upon the termination of a Participant's
service for any reason other than Disability, death or Termination for Cause,
the Participant's Incentive Stock Options which are then exercisable at the date
of termination may only be exercised by the Participant for a period of three
(3) months following termination, after which time they shall be void.
Notwithstanding any provisions set forth herein nor contained in any Agreement
relating to an award of an Option, in the event of Termination for Cause, all
rights under the Participant's Incentive Stock Options shall expire immediately
upon termination.

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      Unless otherwise determined by the Board, in the event of death or
termination of service as a result of Disability of any Participant, all
Incentive Stock Options held by such Participant, whether or not exercisable at
such time, shall be exercisable by the Participant or the Participant's legal
representatives or the beneficiaries of the Participant for one (1) year
following the date of the Participant's death or termination of employment as a
result of Disability. In no event shall the exercise period extend beyond the
expiration of the Incentive Stock Option term.

      (f) Compliance with Code. The options granted under this Section 7 of the
Plan are intended to qualify as incentive stock options within the meaning of
Section 422 of the Code, but the Corporation makes no warranty as to the
qualification of any option as an incentive stock option within the meaning of
Section 422 of the Code. A Participant shall notify the Board in writing in the
event that he disposes of Stock acquired upon exercise of an Incentive Stock
Option within the two-year period following the date the Incentive Stock Option
was granted or within the one-year period following the date he received Stock
upon the exercise of an Incentive Stock Option and shall comply with any other
requirements imposed by the Corporation in order to enable the Corporation to
secure the related income tax deduction to which it will be entitled in such
event under the Code.

      SECTION 8. EXTENSION

      The Board may, in its sole discretion, extend the dates during which all
or any particular Option or Options granted under the Plan may be exercised;
provided, however, that no such extension shall be permitted without the
Participant's consent if it would cause Incentive Stock Options issued under the
Plan to fail to comply with Section 422 of the Code.

      SECTION 9. GENERAL PROVISIONS APPLICABLE TO OPTIONS

      (a) Each Option under the Plan shall be evidenced by a writing delivered
to the Participant specifying the terms and conditions thereof and containing
such other terms and conditions not inconsistent with the provisions of the Plan
as the Board considers necessary or advisable to achieve the purposes of the
Plan or comply with applicable tax and regulatory laws and accounting
principles.

      (b) Each Option may be granted alone, in addition to or in relation to any
other Option. The terms of each Option need not be identical, and the Board need
not treat Participants uniformly. Except as otherwise provided by the Plan or a
particular Option, any determination with respect to an Option may be made by
the Board at the time of grant or at any time thereafter.

      (c) Notwithstanding anything in this Plan to the contrary, in the event of
a Change in Control, all then outstanding Options shall become one hundred
percent vested and exercisable as of the effective date of the Change in
Control. If, in connection with or as a consequence of a Change in Control, the
Corporation is merged into or consolidated with another corporation, if the
Corporation becomes a subsidiary of another corporation or if the Corporation
sells or otherwise disposes of substantially all of its assets to another
corporation, then unless provisions are made in connection with such
transactions for the continuance of the Plan and/or the assumption or
substitution of then outstanding Options with new options covering the stock of
the successor corporation, or parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices, such Options shall
be canceled as of the effective date of the merger, consolidation, or sale and
the Participant shall be paid in cash an amount equal to the difference between
the Fair Market Value of the Stock subject to the Options on the effective date
of such corporate event and the exercise price of the Options. Notwithstanding
anything in this Section 9(c) or any Option agreement to the contrary, in the
event that the consummation of a Change in Control is contingent on using
pooling of interests accounting methodology, the Board may, in its discretion,
take any action necessary to preserve the use of pooling of interests
accounting.

      (d) The Corporation shall be entitled to withhold (or secure payment from
the Participant in lieu of withholding) the amount of any withholding or other
tax required by law to be withheld or paid by the Corporation with respect to
any Options exercised under this Plan, and the Corporation may defer issuance of
Stock hereunder until and

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unless indemnified to its satisfaction against any liability for any such tax.
The amount of such withholding or tax payment shall be determined by the Board
or its delegate and shall be payable by the Participant at such time as the
Board determines. To the extent authorized by the Board, such withholding
obligation may also be satisfied by the payment of cash by the Participant to
the Corporation, the tendering of previously acquired shares of Stock of the
Participant or the withholding, at the appropriate time, of shares of Stock
otherwise issuable to the Participant, in a number sufficient, based upon the
Fair Market Value of such Stock, to satisfy such tax withholding requirements.
The Board shall be authorized, in its sole discretion, to establish such rules
and procedures relating to any such withholding methods as it deems necessary or
appropriate, including, without limitation, rules and procedures relating to
elections by Participants who are subject to the provisions of Section 16 of the
Exchange Act.

      (e) Subject to the terms of the Plan, the Board may at any time, and from
time to time, amend, modify or terminate the Plan or any outstanding Option held
by a Participant, including substituting therefor another Option of the same or
a different type or changing the date of exercise or realization, provided that
the Participant's consent to each action shall be required unless the Board
determines that the action, taking into account any related action, would not
materially and adversely affect the Participant.

      SECTION 10. MISCELLANEOUS

      (a) No person shall have any claim or right to be granted an Option, and
the grant of an Option shall not be construed as giving a Participant the right
to continued employment or service on the Board. The Corporation expressly
reserves the right at any time to dismiss a Participant free from any liability
or claim under the Plan, except as expressly provided in the Plan or the
applicable Option.

      (b) Nothing contained in the Plan shall prevent the Corporation from
adopting other or additional compensation arrangements.

      (c) Subject to the provisions of the applicable Option, no Participant
shall have any rights as a shareholder (including, without limitation, any
rights to receive dividends, or non cash distributions with respect to such
shares) with respect to any shares of Stock to be distributed under the Plan
until he or she becomes the holder thereof.

      (d) Notwithstanding anything to the contrary expressed in this Plan, any
provisions hereof that vary from or conflict with any applicable Federal or
State securities laws (including any regulations promulgated thereunder) shall
be deemed to be modified to conform to and comply with such laws.

      (e) No member of the Board shall be liable for any action or determination
taken or granted in good faith with respect to this Plan nor shall any member of
the Board be liable for any agreement issued pursuant to this Plan or any grants
under it. Each member of the Board shall be indemnified by the Corporation
against any losses incurred in such administration of the Plan, unless his
action constitutes serious and willful misconduct.

      (f) The Plan shall be effective on April 16, 1999 but only if, prior to
such date, the Plan is approved by the Corporation's shareholders. The Plan will
be so approved if at an annual or special meeting of shareholders held prior to
such date a quorum is present and the votes of the holders of a majority of the
securities of the Corporation present or represented by proxy and entitled to
vote on such matter shall be cast in favor of its approval.

      (g) The Board may amend, suspend or terminate the Plan or any portion
thereof at any time, provided that no amendment shall be made without
shareholder approval if such approval is necessary to comply with any applicable
tax laws or regulatory requirement.

      (h) Options may not be granted under the Plan after the tenth anniversary
of the effective date of the Plan, but then outstanding Options may extend
beyond such date.

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      (i) To the extent that State laws shall not have been preempted by any
laws of the United States, the Plan shall be construed, regulated, interpreted
and administered according to the other laws of the State of Delaware.

                                      *  *  *

      Adopted by the Board of Directors on December 4, 1998.

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                                                                    Exhibit 4.11

                             SOUTHBANC SHARES, INC.
                             2001 STOCK OPTION PLAN

1.    Purpose of the Plan and Types of Awards

      a.    SouthBanc Shares, Inc. (the "Company"), a Delaware corporation,
            intends for the SouthBanc Shares, Inc. 2001 Stock Option Plan (the
            "Plan") to provide additional incentive to certain valued and
            trusted officers, employees, and others who perform services for
            SouthBanc Shares, Inc. and its subsidiaries, Perpetual Bank, A
            Federal Savings Bank and Heritage Federal Bank (each referred to
            herein as the "Bank"), by encouraging these individuals to acquire
            shares of common stock of the Company (the "Stock"). The Plan offers
            them options to purchase Stock granted pursuant to the Plan
            ("Options"), thereby increasing their proprietary interest in the
            business of the Company and their personal interest in the continued
            success and progress of the Company and each Bank, to the benefit of
            the Company and its shareholders.

      b.    The Committee (as described below) will grant Options under the Plan
            that are intended either to qualify as incentive stock options
            ("ISOs") within the meaning of Section 422 of the Internal Revenue
            Code of 1986, as amended (the "Code"), or non-qualified options
            ("NQOs"). Each individual granted an option (an "Optionee") under
            the Plan shall enter into an agreement with the Company (an "Option
            Agreement") that sets forth the terms and conditions of the Option,
            as determined in accordance with the Plan.

2.    Administration of the Plan

A committee (the "Committee"), composed of two (2) or more members of the Board
of Directors of the Company (the "Board of Directors") who shall be appointed
from time to time by the Board of Directors, shall administer the Plan. If a
Committee is not appointed, the entire Board of Directors shall serve as the
Committee. The Committee shall have sole and absolute power, subject to the
Provisions of the Plan, to take the following actions:

      (i)   determine the terms and conditions of all options, and construe and
            interpret the Plan and any Option Agreement under the Plan;

      (ii)  determine the time or times an Option may be exercised, the number
            of shares that may be exercised at any one time, and when an Option
            may terminate;

      (iii) establish, amend, and revoke rules and regulations related to the
            Plan and its administration, and correct any defect, supply any
            omission, or reconcile any inconsistencies in the Plan, or in any
            option agreement, in a manner and to the extent necessary;

      (iv)  determine all questions of policy and expediency that may arise in
            the administration of the Plan and exercise such powers and perform
            such acts as are deemed necessary and in the best interests of the
            Company; and

      (v)   to the extent permissible by law, allocate or delegate all or any
            portion of its powers and responsibilities to one or more of its
            members or to any person(s) it selects, subject to further
            revocation or modification by the Committee.

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All of the determinations and interpretations made by the Committee shall be
conclusive and binding on all Optionees, their legal representatives and
beneficiaries.

3.    Shares Subject to the Plan

Subject to the provisions of Paragraph 13 of the Plan, the Stock issued pursuant
to Options granted under the Plan shall not exceed in the aggregate 225,000
shares. If any Options granted under the Plan terminate, expire or are
surrendered without full exercise, the unpurchased number of shares of Stock
shall once again become available for purposes of the Plan.

4.    Persons Eligible for Options

      a.    All officers, employees, directors and independent contractors of
            the Company and each Bank (and any affiliates of the Company and the
            Bank) shall be eligible to receive Options under the Plan. The
            Committee, or the Board of Directors, shall determine the
            individuals to be granted options, the times Options shall be
            granted, the types of Options to be granted, the number of shares
            subject to each Option, the times when Options may be exercised, and
            any other terms and conditions associated with the Options. The
            Committee may grant ISOs or NQOs, or both, under the Plan.

      b.    With regard to the granting of ISOs, no ISO will be granted, and any
            attempted grant shall be void, if the aggregate Fair Market Value
            Per Share (as defined below), as determined by the Committee at the
            time of grant, of the current and all previously granted ISOs
            exercisable for the first time by the Optionee during any calendar
            year (under all plans of the Company), exceeds $100,000.00 or such
            other amount as may be specified in Section 422(d) of the Code.

5.    Purchase Price

The purchase price of each share of Stock covered by each ISO will equal at
least one hundred percent (100%) of the Fair Market Value Per Share (as defined
below) of the Stock on the date the ISO is granted. However, if at the time an
ISO is granted, the Optionee owns, or will be considered to own by reason of
Section 424(d) of the Code, more than 10% of the total voting power of all
classes of stock of the Company, the purchase price of the Stock will equal at
least one hundred and ten percent (110%) of the Fair Market Value Per Share of
the Stock on the date the ISO is granted. The purchase price of each share of
Stock covered by each NQO shall be set periodically by the Committee; provided,
however, that the Committee shall set the purchase price for each share of Stock
covered by an Option at the time it grants the Option.

Definition of Fair Market Value Per Share. For purposes of this Plan, "Fair
Market Value Per Share" shall mean:

      (i)   if the Stock is not publicly traded, the amount determined by the
            Committee in good faith on the date of grant;

      (ii)  if the Stock is traded, but not on a securities exchange and it is
            not reported on The Nasdaq Stock Market ("Nasdaq"), the closing
            quoted selling price of the Stock on the date of grant as quoted in
            the "pink sheets" published by the National Daily Quotation Bureau;

      (iii) if the Stock is traded, but not on a securities exchange, but is
            reported on Nasdaq, the closing Nasdaq reported sales price of the
            Stock on the date of grant, as reported in the Wall Street Journal;
            or

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      (iv)  if the Stock is admitted to trading on a securities exchange, the
            closing quoted selling price of the Stock on the date of the Option
            grant, as reported in the Wall Street Journal.

6.    Duration of Options

      a.    Non-Qualified Options

      Unless the Committee, in its discretion, determines otherwise, the
      duration of Non-Qualified Options shall be as follows:

            Termination of Employment or Service (General). Upon termination of
            employment or service for reasons other than retirement, disability,
            death, or Termination for Cause, the Optionee may exercise only
            those NQOs that were immediately exercisable by the Optionee at the
            date of termination and only for a period of three (3) months
            following the date of termination, or until expiration of the NQOs,
            if they expire less than three months from the date of termination.

            Termination of Employment or Service (Retirement). Upon retirement
            (as defined in the Option Agreement) an Optionee may exercise only
            those NQOs that were immediately exercisable at the date of
            retirement, and only for a period of one (1) year following the date
            of retirement, or until expiration of the NQOs, if they expire less
            than one year from the date of termination.

            Termination of Employment or Service (Disability or Death). Upon
            termination of employment or service due to disability (as defined
            in the Option Agreement) or death, all NQOs held by an Optionee
            shall immediately become exercisable and shall remain exercisable
            for a period of two (2) years following the date of termination, or
            until expiration of the NQOs, if they expire less than two years
            from the date of termination.

            Termination for Cause. Upon Termination for Cause (as defined
            below), all NQOs held by an Optionee shall expire immediately upon
            the effective date of termination.

            Definition of Termination for Cause. For purposes of this Plan,
            "Termination for Cause" shall include termination because of:
            personal dishonesty, incompetence, willful misconduct, breach of
            fiduciary duty involving personal profit, intentional failure to
            perform stated duties, or willful violation of any law, rule, or
            regulation (other than traffic violations or similar infractions).

                                      A-3
<PAGE>

      b.    Incentive Stock Options

      Unless the Committee, in its discretion, determines otherwise, the
      duration of Incentive Stock Options shall be as follows:

            Termination of Employment or Service (General). Upon termination of
            employment or service for any reason other than retirement,
            disability or death, or Termination for Cause, the Optionee may
            exercise only those ISOs that were immediately exercisable at the
            date of termination and only for a period of three (3) months
            following the date of termination, or until expiration of the ISOs,
            if they expire in less than three months.

            Termination of Employment (Retirement). Upon retirement (as defined
            in the Option Agreement), the Optionee may exercise only those ISOS
            immediately exercisable at the date of retirement, and only for a
            period of one (1) year following the date of retirement, or until
            expiration of the ISOs, if they expire in less than one year.

            Termination of Employment (Disability or Death). Upon termination of
            employment or service due to disability (as defined in the Option
            Agreement) or death, all ISOs held by the Optionee shall immediately
            become exercisable, and shall remain exercisable, for a period of
            one (1) year from the date of disability or death, or a shorter
            period of time, if they expire in less than one year.

            Termination for Cause. Upon Termination for Cause (defined in the
            same manner as above, for NQOs), all rights under the ISOs shall
            expire immediately upon the effective date of termination.

      c.    Duration of Options Upon a Change in Control

      Unless the Committee, in its discretion, determines otherwise, and
      notwithstanding any contrary provisions in this Plan, upon a Change in
      Control, all outstanding options shall be vested and immediately
      exercisable as of the effective date of the Change in Control. If the
      Company is merged into or consolidated with another corporation, becomes a
      subsidiary of another corporation, or sells or otherwise disposes of
      substantially all of its assets to another corporation, such Options shall
      be canceled as of the effective date of the merger, consolidation, or
      sale, and the Optionee shall be paid in cash an amount equal to the
      difference between the Fair Market Value of the Stock subject to the
      Options on the effective date of the change in control, and the exercise
      price of the Options. The foregoing shall apply unless provisions are made
      in connection with such transactions for the continuance of the Plan
      and/or the assumption or substitution of outstanding Options with new
      Options covering the stock of the successor corporation, with appropriate
      adjustments as to the number and kinds of shares and prices. However, if
      the consummation of a Change in Control is contingent upon the use of
      pooling of interests accounting methodology, the Board may, in its
      discretion, take any action necessary to preserve the use of pooling of
      interests accounting.

      Definition of a Change in Control. For purposes of this Plan, a Change in
      Control means, with respect to the Bank or the Company, an event of a
      nature that:

            (i)   would be required to be reported in response to Item 1(a) of
                  the current report on Form 8-K, as in effect on the date
                  hereof, pursuant to Section 13 or 15(d) of the Securities
                  Exchange Act of 1934, as amended (the "Exchange Act"); or

                                      A-4
<PAGE>

            (ii)  results in a Change in Control of the Bank or the Company
                  within the meaning of the Home Owners' Loan Act of 1933, as
                  amended, the Federal Deposit Insurance Act, and the Rules and
                  Regulations promulgated by the Office of Thrift Supervision
                  ("OTS"), as in effect on the date thereof; provided that, in
                  applying the definition of change in control as set forth in
                  the Rules and Regulations of the OTS, the Board shall
                  substitute its judgment for that of the OTS.

      In addition, and without limitation, a Change in Control shall be deemed
      to have occurred at such time as:

            (iii) any "person" (as the term is used in Sections 13(d) and 14(d)
                  of the Exchange Act) is or becomes the "beneficial owner" (as
                  defined in Rule 13d-3 under the Exchange Act), directly or
                  indirectly, of voting securities of the Bank or the Company
                  representing 20% or more of the Bank's or the Company's
                  outstanding voting securities or right to acquire such
                  securities, except for any voting securities of the Bank
                  purchased by the Company and any voting securities purchased
                  by any employee benefit plan of the Company or its
                  Subsidiaries; or

            (iv)  individuals who constitute the Board on the date hereof (the
                  "Incumbent Board") cease for any reason to constitute at least
                  a majority thereof, provided that any person becoming a
                  director subsequent to the date hereof whose election was
                  approved by a vote of at least three-quarters of the directors
                  comprising the Incumbent Board, or whose nomination for
                  election by the Company's stockholders was approved by a
                  Nominating Committee solely composed of members which are
                  Incumbent Board members, shall be considered as though he were
                  a member of the Incumbent Board, or

            (v)   a plan of reorganization, merger, consolidation, sale of all
                  or substantially all the assets of the Bank or the Company or
                  similar transaction occurs or is effectuated and the Bank or
                  Company is not the resulting entity, or

            (vi)  a proxy statement has been distributed by someone other than
                  the current management of the Company soliciting proxies from
                  stockholders of the Company and seeking stockholder approval
                  of a plan of reorganization, merger or consolidation of the
                  Company or Bank with one or more corporations, and as a result
                  the outstanding shares of the class of securities subject to
                  such plan or transaction are exchanged for or converted into
                  cash, property or securities not issued by the Bank or the
                  Company, or

            (vii) a tender offer is made for 20% or more of the then outstanding
                  voting securities of the Bank or Company.

                                      A-5
<PAGE>

7.    Exercise of Options

An Option may be exercised in installments or upon such other terms as the
Committee shall determine when the Option is granted. As a condition of the
exercise of any option, the Committee may require the Optionee to pay, in
addition to the purchase price of the Stock covered by the Option, any Federal,
state, local and foreign taxes to be withheld in connection with the exercise of
the Option. The Committee may also authorize the Company's officers to establish
procedures whereby an Optionee can satisfy withholding tax liability incurred
upon exercise of the Option by authorizing the Company to retain upon exercise
the number of shares (based on the Fair Market Value Per Share as determined by
the Committee) necessary to satisfy the withholding tax due.

8.    Method of Exercise

      a.    When the right to purchase shares accrues or vests, the Optionee may
            exercise Options by giving written notice to the Company stating the
            number of shares for which the Option shall be exercised. The
            written notice must be accompanied by payment in full, in cash or an
            equivalent form acceptable to the Company, of the entire price for
            the shares to be purchased, and, if applicable, any required
            Federal, state, local and foreign withholding taxes, in accordance
            with the provisions of Paragraph 7 of this Plan. The Committee may,
            from time to time, establish or direct additional or different
            procedures or requirements for the exercise of Options.

      b.    The Committee, in its discretion, may allow payment of the purchase
            price for the shares to be made in whole or in part with other
            shares of Stock of the Company that are free and clear of all liens
            and encumbrances. The value of the shares of Stock tendered in
            payment shall be the Fair Market Value Per Share on the date the
            Optionee provides written notice of intent to exercise the Options.

      c.    Notwithstanding paragraph 8(b), the Company reserves the right to
            postpone the time of delivery of the shares for as long as necessary
            for the Company, with reasonable diligence, to comply with any
            applicable listing requirements of any national securities exchange,
            Nasdaq or Federal, state, local or foreign laws. If the Optionee, or
            another person entitled to exercise the Option, fails to timely
            accept delivery of and pay for the shares specified in the written
            notice of intent to exercise an Option or Option(s), the Committee
            shall have the right to terminate the Option(s) with respect to
            those shares.

      d.    Each Option Agreement pertaining to an ISO shall require the
            Optionee to notify the Committee within ten (10) days of any
            disqualifying disposition of Stock issued pursuant to the exercise
            of such Option, under the circumstances described in Section 421(b)
            of the Code.

9.    Transferability of Options

Unless the Committee determines otherwise, the Optionee may not transfer or
assign any Option granted under the Plan, either voluntarily or by operation of
law, other than by will or the laws of descent and distribution. During the
lifetime of the Optionee, only the Optionee may exercise Options granted under
this Plan.

                                      A-6
<PAGE>

10.   Continuance of Employment or Service

No provision of this Plan or any Option Agreement shall confer upon an Optionee
any rights to continue employment or service with the Company, or to interfere
in any way with the Company's right (subject to any contrary terms of a separate
employment agreement) to terminate employment or service, or to increase or
reduce the compensation of the Optionee, at any time.

11.   Restrictions on Shares

If counsel advises the Company that certain requirements of Federal, state or
foreign securities laws must be met before Stock may be issued under this Plan,
the Company shall notify all persons who were issued Options. The Company shall
not be liable for failure to issue Stock under any Option exercise because of a
delay in compliance, or an inability to comply, with these legal requirements.

12.   Privileges of Stock Ownership

No person entitled to exercise any Option to purchase shares of Stock granted
under the Plan shall have the rights or privileges of a shareholder of the
Company until such person has become the record holder of the shares. No
adjustment shall be made for dividends or other rights if the record date is
prior to the date on which that person became the holder of record, except as
provided in Paragraph 13 of this Plan.

13.   Adjustment

      a.    If the number of outstanding shares of Stock of the Company
            increases or decreases, or outstanding shares are exchanged for a
            different number or kind of shares of securities of the Company
            through reorganization, merger, recapitalization, reclassification,
            stock dividend, stock split, reverse stock split, combination of
            shares, or similar transaction, the Committee shall appropriately
            and proportionately adjust the aggregate number of shares of Stock
            subject to the Plan as provided in Paragraph 3, the maximum number
            of shares under Options that may be granted during any calendar year
            as specified in paragraph 4(a), and the shares subject to issued and
            outstanding Options under the Plan. The Committee shall make
            adjustments without changing the aggregate purchase price applicable
            to the unexercised portion of the Option, but instead shall change
            the price for each share or other unit of any security covered by
            the Option. If the Committee determines that any dividend or
            distribution (whether in the form of cash, shares of Stock, other
            securities, or other property), recapitalization, stock split,
            reverse stock split, reorganization, merger, consolidation,
            split-up, spin-off, combination, repurchase, exchange of shares of
            Stock or other securities of the Company, issuance of warrants,
            issuance of other rights to purchase shares of Stock or other
            securities of the Company, or similar transaction or event affects
            the shares of Stock, other securities or property then covered by an
            Option, such that an adjustment other than as provided for in this
            subparagraph (a) is appropriate in order to prevent dilution or
            enlargement of the benefits or potential benefits under the Plan and
            Options granted thereunder, the Committee shall, in a manner it
            deems equitable, adjust any or all of:

            (i)   the number and kind of shares of stock (or other securities or
                  property) which thereafter may be made the subject of Options;

            (ii)  the number and kind of shares of stock (or other securities or
                  property) subject to outstanding Options;

                                      A-7
<PAGE>

            (iii) the purchase price with respect to any outstanding Options,
                  or, if deemed appropriate, the Committee shall make a cash
                  payment to the holders of outstanding Options; and

            (iv)  the aggregate number of shares of Stock or number and kind of
                  other securities or property subject to the Plan and the
                  maximum number of shares or other securities or property under
                  Options that may be granted to an Optionee during any calendar
                  year as specified in Paragraph 4(a) of the Plan.

      b.    The Committee shall make any necessary adjustments under this
            Paragraph 13. The Committee's determination as to adjustments to be
            made, and their extent, shall be final, binding and conclusive. No
            fractional shares of Stock shall be issued, however, under the Plan
            or in connection with any adjustment.

14.   Amendment and Termination of the Plan

      a.    The Board of Directors may, from time to time, suspend or terminate
            the Plan, or amend or revise the terms of the Plan or any Option
            Agreements. However, to the extent it is required to do so by
            applicable law or rule, the Board of Directors will submit an
            amendment for approval by a majority of votes cast at a meeting of
            shareholders, at which a quorum representing a majority of the Stock
            is present in person or by proxy, or to such other vote as required
            by the applicable law or rule.

      b.    Subject to the provisions of Paragraph 13, no amendment, suspension,
            or termination of this Plan or any Option Agreement shall, without
            the consent of the Optionee, adversely affect the rights of such
            Optionee under any Option previously granted under the Plan.

15.   Effective Date of the Plan

The Plan shall become effective upon adoption by the Board of Directors, subject
to approval by a majority of shareholders of the Company present or represented
by proxy at a meeting of the shareholders occurring within twelve (12) months of
the date of Board adoption. Options may be granted under the Plan prior to the
date of shareholder approval; provided, however, that they will be null and void
if shareholder approval is not obtained.

16.   Term of the Plan

No Options shall be granted more than ten (10) years after the effective date of
the Plan.

17.   Governing Law

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

                                      A-8

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