Document:

<PAGE>

                                                                    EXHIBIT 10.6

                         INTERMOUNTAIN COMMUNITY BANCORP

                         DIRECTOR STOCK OPTION AGREEMENT

This Director Stock Option Agreement ("Agreement") is entered into by and
between Panhandle Bancorp ("Bancorp") and the Director, named below.

1.   Pursuant to Bancorp's Director Stock Option Plan (the "Plan") and subject
     to the terms of this Agreement, Bancorp hereby grants the following
     irrevocable incentive stock option ("Option"):

           Director: ____________________________________________________

           Option Shares: ________________________ Exercise Price: _____________

           Date of Grant: ________________________ Date of Termination: ________

         Vesting Schedule: This Option will become exercisable as to
         ___________(___) Shares on each of the first five (5) anniversary dates
         from the Date of Grant.

2.   Pursuant to this Option, the Director has the option to purchase the stated
     number of Option Shares of the common stock of Bank at the Exercise Price,
     payable on the date of exercise. This Option is granted as of the Date of
     Grant, and shall terminate on the Date of Termination unless sooner
     terminated by reason of death, disability or other termination of status as
     an director as provided in the Plan.

3.   This Option shall become exercisable according to the Vesting Schedule.
     Option Shares as to which this Option becomes exercisable are called
     "Vested Shares." This Option shall be exercisable as to Vested Shares in
     whole or in part at any time between the Date of Grant and the Date of
     Termination of this Option. Notwithstanding the foregoing, if the
     Optionee's status as an director with Bancorp terminates, then this Option
     will cease to vest and will not become exercisable as to any additional
     shares, as of the date on which the Optionee's status as director
     terminates. In such case, this Option will be limited to the Vested Shares
     as of such date of the termination of status as director.

4.   This Option must be exercised by actual delivery to Bancorp of a written
     notice of exercise signed by Director specifying the number of shares with
     respect to which this Option is being exercised and the per-share Exercise
     Price, accompanied by payment of the full amount of the Exercise Price for
     the number of shares being purchased.

<PAGE>

5.   All terms and conditions of the Plan are hereby incorporated by this
     reference as a part of this Agreement, including but not limited to the
     "Terms and Conditions of Options" provided in the Plan.

DIRECTOR:                           INTERMOUNTAIN COMMUNITY
                                    BANCORP,
                                    an Idaho corporation

__________________________________       By: _______________________________

Print Name: ______________________       Title: President & CEO

I hereby acknowledge that I have received a copy of the Plan, incorporated by
reference above.

_________________________________
Director<PAGE>

                                                                    EXHIBIT 10.7

                              PANHANDLE STATE BANK

                  2003-2005 LONG TERM EXECUTIVE INCENTIVE PLAN
                                  PLAN DOCUMENT

                                  January 2003

Mission Statement

         INTERMOUNTAIN COMMUNITY BANCORP WILL ACHIEVE IMPROVED SHAREHOLDER VALUE
         IN ORDER TO REMAIN A VIABLE INDEPENDENT COMMUNITY BANK BY ACHIEVING TOP
         QUARTILE PERFORMANCE IN ASSET GROWTH AND TANGIBLE ROE WHEN COMPARED TO
         ITS PEER GROUP. THIS GOAL WILL BE ACCOMPLISHED WITHIN A FIVE-YEAR
         HORIZON AS THE INSTITUTION CONTINUES TO STRIVE FOR HIGH PERFORMANCE
         RESULTS AND OPTIMUM VALUE FOR ITS SHAREHOLDERS, EMPLOYEES AND THE
         MARKETS IT SERVES.

CEO's Vision Statement

         -    I SEE INTERMOUNTAIN COMMUNITY BANCORP AS A DYNAMIC PROGRESSIVE
              FINANCIAL INSTITUTION FIVE YEARS FROM NOW WITH AT LEAST EIGHT
              ADDITIONAL BRANCH LOCATIONS (20 IN TOTAL) IN STRATEGIC MARKETS
              WITHIN A 100 MILE RADIUS OF OUR EXISTING BRANCH BANKS. THE
              ORGANIZATION WILL BE FOCUSED ON IDENTIFYING AND FULFILLING THE
              FINANCIAL NEEDS OF THE MARKETS WE SERVE AND WILL INCLUDE MORTGAGE
              LENDING, INSURANCE, INVESTMENTS AND FINANCIAL PLANNING IN ADDITION
              TO TRADITIONAL BANKING PRODUCTS. WE WILL DISTINGUISH OURSELVES
              FROM OUR COMPETITION BY OUR COMMITMENT TO EXCELLENCE IN CUSTOMER
              RELATIONSHIP MANAGEMENT. IT WILL BE CRITICAL TO OUR SUCCESS THAT
              WE ARE IDENTIFIED AS A "COMMUNITY" BANK WITHIN THESE MARKETS.

         -    WE WILL BECOME PROFESSIONAL SALESPEOPLE DRIVEN BY
              PERFORMANCE-BASED COMPENSATION. THESE INDIVIDUALS WILL BE WELL
              COMPENSATED FOR THEIR EFFORTS AS WE EXCEED OUR PEERS IN EFFICIENCY
              AND PRODUCTIVITY. A PARTICIPATORY MANAGEMENT ENVIRONMENT WILL
              CHALLENGE OUR LEADERS TO BE INNOVATIVE, ASSUMING RESPONSIBILITY
              AND ACCOUNTABILITY, AND ENJOYING THE REWARDS OF THEIR
              CONTRIBUTIONS.

         -    AS BANKING PRODUCTS BECOME MORE COMMODITIES-LIKE, WE WILL IDENTIFY
              THE NICHES THAT PROVIDE THE BEST OPPORTUNITY FOR RETURN IN THESE
              MARKETS. TO DO THIS, WE WILL BECOME MARKETING ORIENTED, EVER
              EVALUATING AND MODIFYING OUR PRODUCTS AND SERVICES TO MEET THE
              CHANGING FINANCIAL NEEDS OF OUR EXISTING CUSTOMER BASE.

         -    IN THE YEAR 2007, OUR ASSETS WILL BE AT LEAST $750 MILLION WITH AN
              EQUITY CAPITAL POSITION OF 7.5 PERCENT ($56,250,000). WE WILL
              CONSISTENTLY PROVIDE OUR OWNERS EXCEPTIONAL RETURNS IN THE 12-16%
              RANGE. OUR STAFF PRODUCTIVITY WILL BE EXEMPLARY WHEN COMPARED TO
              THE INDUSTRY, WITH FEE INCOME BECOMING A SIGNIFICANT CONTRIBUTOR
              TO EARNINGS.

<PAGE>

TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                        PAGE
---------------------------------------------------
<S>                                            <C>
Purpose                                         3

Administration                                  3

Plan Description                                3

Eligibility                                     3

Size of Award Opportunities                     4

Performance Criteria and Goals                  4

Payout Schedule                                 4

Withholding                                     4

Payment                                         4

Automatic Vesting                               4

No Guarantee of Employment                      5

Modification and Termination                    5

Extraordinary Items                             5

Termination                                     5
</TABLE>

       Exhibit "A"  Participants
       Exhibit "B" Matrix of Performance

                                       2
<PAGE>

                              PANHANDLE STATE BANK

                       2003-2005 LONG-TERM INCENTIVE PLAN

This document describes the 2003-2005 Long-Term Incentive Plan (the Plan) for
Panhandle State Bank (the Bank).

1.       PURPOSE.

         The purpose of the Plan is to provide motivation and direction to key
         executives to achieve the long-term strategic goals of the Bank.
         Specific objectives of the Plan include:

         -    Support the Bank's long-term strategic plan.

         -    Provide long-term orientation to decision making

         -    Focus participants' attention on maximizing long-term shareholder
              value.

2.       ADMINISTRATION.

         The Plan will be administered by the Human Resource Committee of the
         Board of Directors (the Committee). The Committee will assure that the
         Plan is implemented and maintained according to Plan provisions.

3.       PLAN DESCRIPTION.

         The Plan will provide participants with long-term financial reward
         opportunities based on achieving minimum levels of long-term
         performance goals. The Plan consists of a matrix which will reward the
         participants providing the minimum long-term corporate goals are
         obtained, and, if achieved, stock grants will be provided to Plan
         participants such that fifty (50%) percent of the long-term reward will
         be provided to Plan participants in 2006 and the remaining fifty (50%)
         percent to be provided in 2007. The minimum performance levels are to
         be based upon a three (3) year running average of return on equity and
         net asset growth.

4.       ELIGIBILITY.

         Participants in the Plan will include key members of the executive team
         of the Bank. The CEO of the Bank will recommend who participates in the
         Plan for Committee approval. The CEO will communicate such
         participation to each participant at the beginning of each Plan
         Performance Period. Participants must be continuously employed at the
         Bank for all three (3) years of the long-term plan and must further
         remain employed until December 1, 2006, in order to receive the first
         half of the grant and continue to be employed until December 1, 2007,
         for the second half of the grant. Participants for the 2003-2005
         long-term plan are listed on Exhibit "A" of this Plan.

         At the beginning of each calendar year, the CEO will review and, if
         appropriate, revise Plan participation for the remaining period of the
         long-term plan.

                                       3
<PAGE>

5.       SIZE OF AWARD OPPORTUNITIES.

         To be most effective, payout opportunities must be meaningful and
         competitive. To accomplish this, there has been established a matrix
         which will award participants for bank performance so long as minimum
         levels of return on equity and average asset growth over a three year
         period are met. If the Bank's performance is in excess of the minimums,
         the Plan's participant benefits will increase as performance increases.
         The performance matrix for each participant in this plan is attached
         hereto as Exhibit "B". The stock grants awarded shall be adjusted for
         any stock splits/dividends issued during the term of the plan.

6.       PERFORMANCE CRITERIA AND GOALS.

         The performance criteria of consolidated average annual return on
         equity and consolidated average annual asset growth for the three year
         period covering fiscal years 2003 through 2005 will support the
         maximization of long-term shareholder value. At the beginning of each
         fiscal year, the CEO will provide to the Personnel Committee the
         performance pursuant to the Plan for the prior calendar year.

7.       PAYOUT SCHEDULE.

         The benefits, if any, to be paid to the executives shall vest such that
         fifty (50%) percent of the benefits are to be paid on December 1, 2006,
         and the remaining fifty (50%) percent to be paid on December 1, 2007.
         As a condition precedent to the award of any benefits pursuant to this
         Plan, the executive will be required to remain employed by the Bank at
         the time of the payout of benefits.

8.       WITHHOLDING.

         The Bank shall deduct the regulatory tax withholding amounts from any
         earned awards that are paid, and participant shall be responsible for
         any tax implications associated with the award.

9.       PAYMENT.

         Benefits to be awarded pursuant to this Plan, if any, shall be in the
         form of a stock grant to the executive according to the applicable
         matrix attached as Exhibit "B".

10.      AUTOMATIC VESTING.

         In the event of a change in control (more than 50% of the stock of the
         bank is sold) or in the event of full disability or death, the stock
         grant benefits of the Plan will vest forward in favor of the
         participants based upon performance through the most recent quarter
         end. The return on equity and asset growth will be prorated for the
         remaining term of the incentive plan based upon the consolidated
         average through the most recent quarter end. All grants to which the
         participants are entitled shall vest immediately.

                                       4
<PAGE>

11.      NO GUARANTEE OF EMPLOYMENT.

         Nothing in the Plan or any Plan materials guarantees employment at the
         Bank. Further, this Plan should not be implied as any contract
         agreement.

12.      MODIFICATION AND TERMINATION.

         The Committee has the right to amend or terminate the Plan at any time.
         However, termination or modification of the Plan during a Performance
         Period will not negatively affect performance goals and payout
         opportunities up until the point of termination.

13.      EXTRAORDINARY ITEMS.

         The Committee has the authority but no obligation to exclude any
         extraordinary accounting items such as changes in generally accepted
         accounting procedures, sales or major assets or regulatory changes.

14.      TERMINATION.

         Participants must be continuously employed by the Bank throughout the
         2003-2005 performance period and must further continue to be employed
         until December 1, 2006, in order to receive fifty (50%) percent of the
         benefits and December 1, 2007, in order to receive the balance of the
         benefits. Participants who become fully disabled or die during the
         long-term Plan will receive benefits pursuant to the Plan on a pro-rata
         basis based upon the performance results through the most recent
         quarter end. Participants who voluntarily or involuntarily terminate
         their employment prior to receiving benefits under this Plan shall
         forfeit automatically their rights to any award.

                                       5
<PAGE>

                                   Exhibit "A" - Participants

                                   2003 - 2005 Long Term Plan

                     Curt Hecker     Chief Executive Officer

                     Jerry Smith     President, Branch Administration

                     Doug Wright     Executive Vice President
                                     & Chief Operating Officer

                     John Nagel      Senior Vice President
                                     & Credit Administrator

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]