Document:

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                                                                    EXHIBIT 10.8

                        INDEXED SALARY CONTINUATION PLAN
                                       OF
                                  HERITAGE BANK

         HERITAGE BANK, formerly known as Lafayette State Bank, a Colorado
corporation (the "Bank"), a wholly owned subsidiary of FRONT RANGE CAPITAL
CORPORATION, a Colorado corporation, hereby establishes the Heritage Bank
Indexed Salary Continuation Plan (the "Plan") effective as of the 1ST day of
JULY, 1998, (the "Effective Date"). The Bank intends to provide, under this
Plan, certain of its key management employees with benefits upon retirement,
disability or other termination of employment, for the purpose of promoting in
its key management employees the strongest interest in the successful operation
of the Bank and to induce such employees to remain in the employ of the Bank.

                                    ARTICLE I

                                   Definitions

         1.01 Administrative Committee shall mean the committee appointed
pursuant to Article VI of the Plan.

         1.02 Adoption Agreement shall mean a written agreement between a
Participant and the Bank, whereby the Bank agrees to make benefit payments in
accordance with the provisions of the Plan.

         1.03 Beneficiary shall mean any person, persons or entities designated
by a Participant to receive benefits hereunder upon the death of such
Participant.

         1.04 Call Report shall mean the quarterly financial report as required
by the Federal

         1.05 Change of Control shall mean the acquisition of beneficial
ownership, after the Effective Date, directly or indirectly, of more than fifty
percent (50%) of the voting power of the

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outstanding common stock of the Bank or its holding company, Front Range Capital
Corporation, by any person, group, association, corporation or other entity.

         1.06 Cost of Funds Expense for any Plan Year shall be calculated by
taking the sum of the amount of premiums set forth in the Indexed Policies plus
the amount of any benefits paid to the Participant pursuant to this Plan plus
the amount of all previous years after-tax Cost of Funds Expense, and
multiplying that sum by the average after-tax Cost of Funds of the Bank's third
quarter Call Report filed with the Federal Reserve for that Plan Year.

         1.07 Disability shall mean, for the first two (2) years of the
Disability, that the Participant cannot substantially do the duties of the
Participant's occupation. After the first two (2) years of Disability,
Disability shall mean the Participant cannot work at any occupation for which
the Participant is fitted by education, training or experience as determined by
the Administrative Committee. In addition, Disability shall exist if the
Participant has total and permanent loss of sight of both eyes; or has both
hands severed at or above the wrist; or has both feet severed at or above the
ankle; or has such severance of one hand and one foot. The Participant shall be
considered disabled if the aforementioned conditions are caused by sickness or
accident; are continuous for at least six (6) months; and begin after the
execution of the Adoption Agreement. However, Disability hereunder shall not be
deemed to include disability resulting directly from willfully and intentionally
self-inflicted injury.

         1.08 Index shall mean for any Plan Year the aggregate annual after-tax
income from the Indexed Policies designated for each Participant. The Index
shall be applied by the Administrative Committee as if such Indexed Policies
were purchased on the effective date of each Participant's participation in the
Plan.

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         1.09 Indexed Policies shall mean sample life insurance contracts as
defined by FASB Technical Bulletin 85-4 which are designated by the
Administrative Committee and used to calculate the Index for each Participant.

         1.10 Index Retirement Benefit for each Participant for any Plan Year
shall be equal to the excess of the annual earnings (if any) determined by the
Index for that Plan Year over the Cost of Funds Expense for that Plan Year.

         1.11 Normal Retirement Age shall mean age sixty-five (65).

         1.12 Normal Retirement Date shall mean retirement from service with the
Bank which becomes effective on the first day of the calendar month following
the month in which the Participant attains Normal Retirement Age or such later
date as the Participant actually retires.

         1.13 Participant shall mean a Selected Employee of the Bank who has
completed an Adoption Agreement.

         1.14 Plan Year shall mean the twelve-month period on which the plan
records are kept, which shall begin on January 1 of one year and end on December
31 of the same year, except in the year of implementation of the Plan, Plan Year
shall mean the period from the Effective Date to December 31 of the year of the
Effective Date.

         1.15 Pre-Retirement Account shall mean an account established by the
Administrative Committee as a liability reserve account on the books of the Bank
for the benefit of the Participant. Prior to Termination of Employment such
liability reserve account shall be increased or decreased each Plan Year
(including the Plan Year in which the Participant ceases to be employed by the
Bank) by an amount equal to the annual earnings or loss for that Plan Year
determined by the Index, less the Cost of Funds Expense for that Plan Year.

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         1.16 Selected Employees shall mean all key employees of the Bank who
are designated as Selected Employees by the Administrative Committee. A person
designated as a Selected Employee shall remain so until such designation is
revoked by the Administrative Committee, in its sole discretion.

         1.17 Termination of Employment shall mean the Participant ceasing to be
employed by the Bank for any reason whatsoever, voluntary or involuntary,
including by reason of death or Disability.

         1.18 Termination of Employment With Cause. Termination of Employment
with cause ("Cause") shall mean the Bank may terminate employment of a
Participant for the following reasons:

                  (a) Engaging in willful misconduct that is materially
injurious to Bank;

                  (b) Embezzlement or misappropriation of funds or property of
Bank by a Participant or the conviction of a Participant of a felony or the
entrance of a plea of guilty by a Participant to a felony;

                  (c) Failure or refusal by a Participant to devote his or her
full business time and attention to the performance of his or her duties and
responsibilities if such breach has not been cured by such Participant within
thirty (30) days after notice has been given to Participant; and

                  (d) Any Federal or state statutes or regulations which require
Bank, upon direction of the appropriate regulatory agency, to prohibit
employment of a Participant in the business of banking or to require Bank to
file a suspicious activities report because such Participant has been convicted
of or suspected of a crime involving fraud, dishonesty, moral turpitude or
breach of trust.

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         A Participant shall not be deemed to have been terminated for Cause
unless Bank shall have given Participant a written notice setting forth in
reasonable detail the facts and circumstances claimed to provide the basis for
termination for Cause; a reasonable opportunity for Participant, together with
his or her counsel, to be heard before the Administrative Committee of the Plan;
and a notice of termination stating that, in the good faith judgment of the
Administrative Committee, the Participant was guilty of conduct set forth in the
written notice.

         1.19 Termination of Employment Without Cause shall mean Termination of
Employment for all reasons except Termination of Employment with Cause.

         1.20 Year of Service shall mean a twelve (12) consecutive month period
beginning on a Participant's date of employment with the Bank and each
anniversary thereof during which the Participant is employed on a full-time
basis by the Bank, including Years of Service prior to the adoption of this
Plan. If Termination of Employment occurs during a partial Year of Service, such
Year of Service shall not be used to calculate benefits under the Plan. A
Participant with a Disability shall be considered to be employed on a full-time
basis by Bank for purposes of computing Years of Service.

                                   ARTICLE II

                          Eligibility and Participation

         2.01 Participation. From time to time the Administrative Committee, in
its sole discretion, may designate those Selected Employees to whom the
opportunity to participate in this Plan shall be extended. Participants covered
under the Plan are considered a select group of management or highly compensated
employees.

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         2.02 Enrollment Requirements. Employees who have been selected by the
Administrative Committee to participate in this Plan shall enroll in the Plan by
(a) entering into an Adoption Agreement with the Bank, which shall specify the
amount and type of benefit under this Plan that will be provided for such
employee, and (b) completing such other forms and furnishing such other
information as the Bank may reasonably require.

         2.03 Enrollment Time Period. An employee must execute the Adoption
Agreement within thirty (30) days after the Plan's adoption by the Bank or
within thirty (30) days after the employee has been selected to participate in
the Plan. Otherwise, the Adoption Agreement must be executed before the first
day of the Plan Year in which the Agreement is to be effective.

                                   ARTICLE III

                               Payment of Benefits

         3.01 Benefits Payable Upon Normal Retirement. In the event a
Participant is employed by the Bank until Normal Retirement Age, the Participant
shall be entitled to receive the balance in the Participant's Pre-Retirement
Account in ten (10) equal annual installments commencing thirty (30) days
following the Participant's Normal Retirement Date. In addition, commencing with
the Plan Year in which the Participant attains his or her Normal Retirement
Date, the Index Retirement Benefit for each Plan Year shall be paid to the
Participant until the death of Participant. In the year of eligibility for
payment of the Index Retirement Benefit and in the year of death, such benefit
shall be prorated.

         3.02 Benefits Payable Upon Termination of Employment. In the event a
Participant has a Termination of Employment, subject to the provisions of
Section 3.04, the Participant shall be entitled to receive six and sixty-seven
one hundredths percent (6.67%), up to one hundred percent (100%), of the balance
in the Participant's Pre-Retirement Account times the number of

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Years of Service the Participant has earned. Such balance shall be payable in
fifteen (15) equal annual installments commencing thirty (30) days following the
month in which the Participant would have attained Normal Retirement Age under
the Plan. In addition, commencing with the Plan Year in which the Participant
would have otherwise attained Normal Retirement Age under the Plan, ten percent
(10%) of the Indexed Retirement Benefit for each Plan Year shall be paid to the
Participant until the death of Participant, with the amount of the Indexed
Retirement Benefit to be multiplied by the number of Years of Service the
Participant has earned. All non-vested amounts shall remain the property of
Bank.

         3.03 Benefits Payable Upon Death. In the event benefit payments from a
Participant's Pre-Retirement Account have not commenced prior to the death of a
Participant, the Beneficiary of Participant, as provided in Section 5.01, below,
shall receive the balance in the Participant's Pre-Retirement Account, payable
in ten (10) equal annual installments commencing thirty (30) days following
Participant's death. In the event of death, such payments shall be 100%
nonforfeitable. In the event benefit payments from the Participant's
Pre-Retirement Account have commenced prior to the date of death of a
Participant, the balance of such installment payments shall be payable to the
Beneficiary of Participant as provided in Section 5.01. In all other
circumstances, the Plan does not provide payment of benefits in the event of the
death of a Participant. In the event a Participant is receiving payments of the
Indexed Retirement Benefit, such payments shall terminate as of the date of
death.

         3.04 Benefits Payable Upon Disability. In the event the Participant has
a Termination of Employment by reason of Disability, the Participant shall be
entitled to receive his or her benefits payable upon Termination of Employment
as provided in Section 3.02, above. Such Disability benefit shall be payable in
the time and manner provided in Section 3.02 and shall also

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be subject to the vesting provisions of such Section; provided, however, the
Administrative Committee shall calculate Years of Service for vesting purposes
to include service during such time that the Participant has a Disability, as
provided in Section 1.02, above.

         3.05 Vesting of Benefits Upon Normal Retirement Age. All benefits
payable under this Plan shall become 100% nonforfeitable at the time a
Participant attains Normal Retirement Age provided that on such date Participant
is still employed by Bank.

         3.06 Benefits Payable Upon Discharge For Cause. In the event a
Participant is Discharged for Cause by Bank, no benefits shall be payable under
this Plan.

         3.07 Benefits Payable Upon Change of Control. If a Participant's
Termination of Employment occurs after a Change of Control but prior to the
Participant attaining Normal Retirement Age, the Participant shall receive
benefits payable upon normal retirement (as provided in Section 3.01) at the
time Participant attains Normal Retirement Age as though Participant had been
employed by the Bank at that time. After a Change of Control a discharged
Participant shall also remain eligible for all benefits payable upon death.

                                   ARTICLE IV

                                  Contributions

         4.01 Bank Contributions. All benefits payable under this Plan shall be
paid as they become due and payable by the Bank out of its general assets. In
the event the Bank, in its sole discretion, decides to fund all or any part of
the benefits payable under this Plan with contributions to a separate fund, the
Bank shall maintain separate accounts for each Participant to which such
contributions are allocated. Nothing contained in this Plan shall be deemed to
create a trust of any kind for the benefit of the Participants or create any
fiduciary relationship between the Bank and the Participants or their
Beneficiaries. To the extent that any person acquires a right

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to receive benefits under this Plan, such rights shall be no greater than the
right of any unsecured general creditor of the Bank.

         4.02 Life Insurance and Funding. The Bank's obligation under this Plan
shall be an unfunded and unsecured promise to pay. The Bank shall not be
required to fund its obligations, but the Bank in its sole discretion may apply
for and own for its own benefit, insurance on the life of a Participant in such
amounts and in such forms as the Bank may choose. The Participant shall have no
interest whatsoever in any such policy or policies, but at the request of the
Bank shall submit to medical examinations and shall accurately and truthfully
supply such information and execute such documents as may be required by the
insurance company or companies to whom the Bank has applied for insurance. The
Bank shall be under no obligation to provide the benefits in Article IV and/or
Article V of this Plan if the Participant fails to comply with these provisions.
Any insurance policy acquired by or held by the Bank in connection with the
liabilities assumed by it pursuant to the Plan shall not be deemed to be held
under any trust for the benefit of the Participant, the Participant's
Beneficiary or estate, or to be security for the performance of the obligations
of the Bank but shall be, and remain, a general, unpledged and unrestricted
asset of the Bank.

                                    ARTICLE V

                              Survivorship Benefits

         5.01 Recipients of Payments. All payments to be made by the Bank shall
be made to the Participant, if living. In the event of a Participant's death
prior to the receipt of all benefit payments, all subsequent payments to be made
under the Plan shall be to the Beneficiary or Beneficiaries of the Participant.

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         5.02 Designation of Beneficiary. Each Participant shall file with the
Bank a designation of beneficiary and contingent beneficiary to whom the
Participant's interest under the Plan shall be paid in the event of death. The
initial designation of beneficiary shall be made on the form attached to the
Participant's Adoption Agreement. Such designation may be changed by the
Participant at any time and without the consent of any previously designated
beneficiary. In the absence of an effective beneficiary designation as to any
portion of a Participant's interest under the Plan, such amount shall be paid to
the Participant's personal representative, but if the Bank believes that none
has been appointed within six (6) months after the Participant's death, the Bank
may direct that such amount shall not be paid until a personal representative
has been appointed or may direct that such amount be paid to the Participant's
surviving spouse, or if there is none, to the Participant's surviving children
and issue of deceased children by right of representation, or there be none, the
Participant's surviving parents and if none, according to the laws of descent
and distribution of the State of Colorado.

                                   ARTICLE VI

                                 Administration

         6.01 Administrative Committee. The Plan shall be administered by the
Administrative Committee in accordance with its terms and purposes. The Board of
Directors of the Bank shall appoint the Administrative Committee, which shall
consist of three (3) or more persons to act on behalf of the Bank. The
Administrative Committee shall select the participating Selected Employees and
determine the assumptions to be used in computing benefits under the Plan. The
Administrative Committee may adopt rules and regulations relating to the Plan as
it may deem necessary or advisable for the administration of the Plan.

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         6.02 Claims Procedure.

                  (a) All claims shall be filed in writing by the Participant,
         his or her Beneficiary or the authorized representative of the
         claimant, by completing such procedures as the Administrative Committee
         shall require. Such procedures shall be reasonable and may include the
         completion of forms and the submission of documents and additional
         information.

                  (b) If a claim is denied, notice of denial shall be furnished
         by the Administrative Committee to the claimant within ninety (90) days
         after the receipt of the claim by the Administrative Committee, unless
         special circumstances require an extension of time for processing the
         claim, in which event notification of the extension shall be provided
         to the Participant or Beneficiary and the extension shall not exceed
         ninety (90) days.

                  (c) The Administrative Committee shall provide adequate
         notice, in writing, to any claimant whose claim has been denied,
         setting forth the specific reasons for such denial, specific reference
         to pertinent Plan provisions, a description of any additional material
         or information necessary for the claimant to perfect his or her claim
         and an explanation of why such material or information is necessary,
         all written in a manner calculated to be understood by the claimant.
         Such notice shall include appropriate information as to the steps to be
         taken if the claimant wishes to submit his or her claim for review by
         the Board of Directors of Bank. The claimant or the claimant's
         authorized representative must request such review within the
         reasonable period of time prescribed by the Administrative Committee.
         In no event shall such period of time be less than sixty (60) days. A
         decision on review shall be made not later than sixty (60) days after
         the Bank's receipt of the request for review. If special circumstances
         require a further

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         extension of time for processing, a decision shall be rendered not
         later than one hundred twenty (120) days following the Bank's receipt
         of the request for review. If such an extension of time for review is
         required, written notice of the extension shall be furnished to the
         claimant prior to the commencement of the extension. The decision on
         review shall be furnished to the claimant. Such decision shall be in
         writing and shall include specific reasons for the decision, written in
         a manner calculated to be understood by the claimant, as well as
         specific references to the pertinent Plan provisions on which the
         decision is based.

                                   ARTICLE VII

                                  Miscellaneous

         7.01 Employment Not Guaranteed by Plan. Neither the Plan nor any action
taken hereunder shall be construed as giving a Participant the right to be
retained as a Selected Employee or as an employee of the Bank for any period.

         7.02 Amendment and Termination. The Board of Directors of the Bank may,
at any time, amend or terminate the Plan, provided that the Board may not reduce
or modify any benefit being paid to a Participant or Participant's Beneficiary
as a result of the death or Retirement of such Participant prior to such
amendment or termination. Furthermore, the Board may not reduce or modify any
vested benefits hereunder. Upon termination of the Plan, all benefits become
100% nonforfeitable. If the Board terminates the Plan, the Administrative
Committee, in its sole discretion, shall determine the form and time of payments
of benefits derived from Participant contributions.

         7.03 Assignment of Benefits. No Participant or Beneficiary shall have
the right to assign, transfer, hypothecate, encumber or anticipate his or her
interest in any benefits under this

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Plan, nor shall the benefits under this Plan be subject to any legal process to
levy upon or attach the benefits for payment of any claim against the
Participant or his or her beneficiary. In the event of any attempted assignment
or transfer, the Bank shall have no further liability hereunder.

         7.04 Disposition of Unclaimed Payments. Each Participant must file with
the Bank from time to time in writing his or her post office address and each
change of post office address. The communication, statement or notice addressed
to a Participant at the last post office address filed with the Bank, or if no
address is filed with the Bank, then at the last post office address as shown on
the Bank records, will be binding upon Participant and his or her Beneficiaries
for all purposes of the Plan. The Bank shall not be required to search for or
locate a Participant or his or her Beneficiary.

         7.05 Taxes. The Bank shall deduct from all payments made hereunder all
applicable federal or state taxes required by law to be withheld from such
payments.

         7.06 Governing Law. This Plan is intended to constitute an unfunded
Plan for a select group of management or highly compensated employees and rights
hereunder shall be governed by the laws of the State of Colorado.

         7.07 Form of Communication. Any election, application, claim, notice or
other communication required or permitted to be made by a Participant to the
Administrative Committee shall be made in writing and in such form as the
Administrative Committee shall prescribe. Such communication shall be effective
upon mailing, if sent by first class mail, postage pre-paid, and addressed to
the Bank's offices at 1020 Century Drive, Louisville, CO 80027.

         7.08 Severability. The invalidity of any portion of this Plan shall not
invalidate the remainder thereof, and said remainder shall continue in full
force and effect.

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         7.09 Binding Agreement. The provisions of this Plan shall be binding
upon the Participant and the Bank and their successors, assigns, heirs,
executors and beneficiaries.

         ADOPTED pursuant to resolution of the Board of Directors of the Bank on
the 17 day of June, 1998.

                                         BANK

                                         HERITAGE BANK

ATTEST:                                  By: /s/ Robert L. Beauprez - CEO
                                             ----------------------------
/s/ Alice M. Bier                            President
-----------------
Secretary

                                      -14-<PAGE>   1
                                                                    EXHIBIT 10.9

                         FLEXIBLE PREMIUM LIFE INSURANCE
                 ENDORSEMENT METHOD SPLIT DOLLAR PLAN AGREEMENT

                  Insurer:                           Security Life of Denver
                  Policy Number:                     001079232
                  Bank:                              Heritage Bank
                  Insured:                           Robert L. Beauprez
                  Relationship of Bank to Insured:   Employer

         The respective rights and duties of the Bank and the Insured in the
subject policy shall be as defined in the following:

I.       DEFINITIONS

         Refer to the policy contract for the definition of all terms in this
Agreement.

II.      POLICY TITLE AND OWNERSHIP

         Title and ownership shall reside in the Bank for its use and for the
use of the Insured all in accordance with this Agreement. The Bank alone may, to
the extent of its interest, exercise the right to borrow or withdraw on the
policy cash values. Where the Bank and the Insured (or assignee, with the
consent of the Insured) mutually agree to exercise the right to increase the
coverage under the subject split dollar policy, then, in such event, the rights,
duties and benefits of the parties to such increased coverage shall continue to
be subject to the terms of this Agreement.

III.     BENEFICIARY DESIGNATION RIGHTS

         The Insured (or assignee) shall have the right and power to designate a
beneficiary(ies) to receive his share of the proceeds payable upon the death of
the Insured and to elect and change a payment option for such beneficiary,
subject to any right or interest the Bank may have in such proceeds, as provided
in this Agreement.

IV.      PREMIUM PAYMENT METHOD

         The Bank shall pay an amount equal to the planned premiums and any
other premium payments that might become necessary to keep the policy in force.

<PAGE>   2

V.       TAXABLE BENEFIT

         Annually the Insured will receive a taxable benefit equal to the
assumed cost of insurance as required by the Internal Revenue Service. The Bank
(or its administrator) will report to the Employee the amount of imputed income
received each year on Form W2 or its equivalent.

VI.      DIVISION OF DEATH PROCEEDS

         Subject to Paragraph VII herein, the division of the death proceeds of
the policy is as follows:

         A.       The Insured's beneficiary(ies), designated in accordance with
                  Paragraph III, shall be entitled to an amount equal to seventy
                  five percent (75%) of the net at risk insurance portion of the
                  proceeds. The net at risk insurance portion is the total
                  proceeds less the cash value of the policy.

         B.       Should the Insured not be employed by the Bank at the time of
                  his or her death, the Insured's beneficiary(ies), designated
                  in accordance with Paragraph III, shall be entitled to the
                  following percentage of the proceeds described in subparagraph
                  VI(A) hereinabove that corresponds to the year of service the
                  Insured served with the Bank:

<TABLE>
<CAPTION>
                         Total Years
                        of Employment
                        with the Bank                        Vested
                        -------------                        ------
<S>                                                         <C>
                              1                                10%
                              2                                20%
                              3                                30%
                              4                                40%
                              5                                50%
                              6                                60%
                              7                                70%
                              8                                80%
                              9                                90%
                             10                               100%
</TABLE>

         C.       The Bank shall be entitled to the remainder of such proceeds.

         D.       The Bank and the Insured (or assignees) shall share in any
                  interest due on the death proceeds on a pro rata basis as the
                  proceeds due each respectively bears to the total proceeds,
                  excluding any such interest.

VII.     DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

         The Bank shall at all times be entitled to an amount equal to the
policy's cash value, as that term is defined in the policy contract, less any
policy loans and unpaid interest or cash

                                       -2-

<PAGE>   3

withdrawals previously incurred by the Bank and any applicable surrender
charges. Such cash value shall be determined as of the date of surrender or
death as the case may be.

VIII.    PREMIUM WAIVER

         If the policy contains a premiums waiver provision, such waived amounts
shall be considered for all purposes of this Agreement as having been paid by
the Bank.

IX.      RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY
         ELECTION EXISTS

         In the event the policy involves an endowment or annuity element, the
Bank's right and interest in any endowment proceeds or annuity benefits, on
expiration of the deferment period, shall be determined under the provisions of
this Agreement by regarding such endowment proceeds or the commuted value of
such annuity benefits as the policy's cash value. Such endowment proceeds or
annuity benefits shall be considered to be like death proceeds for the purposes
of division under this Agreement.

X.       TERMINATION OF AGREEMENT

         This Agreement shall terminate at the option of the Bank following
thirty (30) days written notice to the Insured upon the happening of any one of
the following:

         A.       The Insured shall leave the employ of the Bank (voluntarily or
                  involuntarily) prior to 10 years of service with the Bank
                  subject to limited death benefit as described in section
                  VI(B), or

         B.       The Insured shall be discharged from employment with the Bank
                  for cause. Termination of Employment with cause ("Cause")
                  shall mean the Bank may terminate employment of a Participant
                  for the following reasons:

                  1.       Engaging in willful misconduct that is materially
                           injurious to Bank;

                  2.       Embezzlement or misappropriation of funds or property
                           of Bank by a Participant or the conviction of a
                           Participant of a felony or the entrance of a plea of
                           guilty by a Participant to a felony;

                  3.       Failure or refusal by a Participant to devote his or
                           her frill business time and attention to the
                           performance of his or her duties and responsibilities
                           if such breach has not been cured by such Participant
                           within thirty (30) days after notice has been given
                           to a Participant; and

                  4.       Any Federal or state statutes or regulations which
                           require Bank, upon direction of the appropriate
                           regulatory agency, to prohibit employment of a
                           Participant in the business of banking or to require
                           Bank to file a

                                       -3-

<PAGE>   4

                           suspicious activities report because such Participant
                           has been convicted of or suspected of a crime
                           involving fraud, dishonesty, moral turpitude or
                           breach of trust.

         Upon such termination, the Insured (or assignee) shall have a ninety
(90) day option to receive from the Bank an absolute assignment of the policy in
consideration of a cash payment to the Bank, whereupon this Agreement shall
terminate. Such cash payment shall be the greater of:

         A.       The Bank's share of the cash value of the policy on the date
                  of such assignment, as defined in this Agreement.

         B.       The amount of the premiums which have been paid by the Bank
                  prior to the date of such assignment.

         Should the Insured (or assignee) fail to exercise this option within
the prescribed ninety (90) day period, the Insured (or assignee) agrees that all
of his rights, interest and claims in the policy shall terminate as of the date
of the termination of this Agreement.

         Except as provided above, this Agreement shall terminate upon
distribution of the death benefit proceeds in accordance with Paragraph VI
above.

XI.      INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

         The Insured may not, without the written consent of the Bank, assign to
any individual, trust or other organization, any right, title or interest in the
subject policy nor any rights, options, privileges or duties created under this
Agreement.

XII.     AGREEMENT BINDING UPON THE PARTIES

         This Agreement shall bind the Insured and the Bank, their heirs,
successors, personal representatives and assigns.

XIII.    NAMED FIDUCIARY AND PLAN ADMINISTRATOR

         Robert L. Beauprez is hereby designated the "Named Fiduciary" until
resignation or removal by the Board of Directors. As Named Fiduciary, Robert L.
Beauprez shall be responsible for the management, control, and administration of
this Split Dollar Plan as established herein. The Named Fiduciary may allocate
to others certain aspects of the management and operation responsibilities of
the plan, including the employment of advisors and the delegation of any
ministerial duties to qualified individuals.

XIV.     FUNDING POLICY

         The funding policy for this Split Dollar Plan shall be to maintain the
subject policy in force by paying, when due, all premiums required.

                                       -4-

<PAGE>   5

XV.      CLAIMS PROCEDURE FOR LIFE INSURANCE POLICY AND SPLIT DOLLAR PLAN

         Claim forms or claim information as to the subject policy can be
obtained by contacting Executive Benefit Administrators, Ltd. (303-758-2340).
When the Named Fiduciary has a claim which may be covered under the provisions
described in the insurance policy, he should contact the office named above and
they will either complete a claim form and forward it to an authorized
representative of the Insurer or advise the named Fiduciary what further
requirements are necessary. The Insurer will evaluate and make a decision as to
payment. If the claim is payable, a benefit check will be issued to the Named
Fiduciary.

         In the event that a claim is not eligible under the policy, the Insurer
will notify the Named Fiduciary of the denial pursuant to the requirements under
the terms of the policy. If the Named Fiduciary is dissatisfied with the denial
of the claim and wishes to contest such claim denial, he should contact the
office named above and they will assist in making inquiry to the Insurer. All
objections to the Insurer's actions should be in writing and submitted to the
office named above for transmittal to the Insurer.

XVI.     GENDER

         Whenever in this Agreement words are used in the masculine or neuter
gender, they shall be read and construed as in the masculine, feminine or neuter
gender, whenever they should so apply.

XVII.    INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

         The Insurer shall not be deemed a party to this Agreement, but will
respect the rights of the parties as herein developed upon receiving an executed
copy of this Agreement. Payment or other performance in accordance with the
policy provisions shall fully discharge the Insurer for any and all liability.

         Executed at Lafayette, CO this 28 day of July, 1999.

                                                Heritage Bank

/s/ Gerald P. Mitchell                     By:  /s/ Alice M. Bier
----------------------                          ------------------------------
Witness                                         Title: Chief Operating Officer

/s/ Gerald P. Mitchell                     By:  /s/ Robert L. Beauprez
----------------------                          ------------------------------
Witness                                         Robert L. Beauprez

                                      -5-

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