Document:

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                                                                    EXHIBIT 10.6

                                    GUARANTY

      THIS GUARANTY (the "Guaranty") is entered into on March 18, 2005 by
American Vantage Companies, a Nevada corporation (hereinafter the "Guarantor"),
with a business address of 4735 South Durango Drive, Suite 105, Las Vegas,
Nevada 89147, for the benefit of Al Cattabiani, an individual residing at 27
Summit Terrace, Dobbs Ferry, New York 10522 ("Cattabiani"), Lee Miller, an
individual residing at 420 Round Hill Road, Greenwich, Connecticut, 06831
("Miller"), Clara Spalter Miller, an individual residing at 420 Round Hill Road,
Greenwich, Connecticut, 06831 ("Spalter Miller"), and Carl Seldin Koerner, an
individual residing at 229 Greenway South, Forest Hills, New York 11735
("Koerner"). Cattabiani, Miller, Spalter Miller and Koerner shall be
individually referred to as a "Seller" and collectively as the "Sellers".

                                   WITNESSETH

      WHEREAS, pursuant to the terms of a Stock Purchase Agreement dated as of
February 3, 2004 (the "Agreement"), among the Sellers and American Vantage Media
Corporation, a Nevada corporation ("Media"), a wholly owned subsidiary of the
Guarantor, the Sellers sold and Media purchased all of the issued and
outstanding capital stock of Wellspring Media, Inc., a Delaware corporation
("Wellspring"), owned by the Sellers (the "Shares"); and

      WHEREAS, pursuant to the terms and conditions of the Agreement and in
furtherance of the sale and purchase of the Shares (the "Sale"), Media executed
and delivered to the applicable Seller the following promissory notes
(collectively the "Notes"): (i) a secured negotiable promissory note dated
February 3, 2004 in the principal amount of $1,076,704.00 to Cattabiani; (ii) a
secured negotiable promissory note dated February 3, 2004 in the principal
amount of $65,472.00 to Koerner; (iii) a secured negotiable promissory note
dated February 3, 2004 in the principal amount of $965,712.00 to Spalter Miller;
(iv) a secured negotiable promissory note dated February 3, 2004 in the
principal amount of $965,712.00 to Miller; and (v) a secured non-negotiable
promissory note dated February 3, 2004 in the principal amount of $200,000.00 to
Cattabiani; and

      WHEREAS, in order to induce certain of the Sellers to execute and deliver
the Agreement, Wellspring guaranteed the obligations of Media under the
Agreement and the Notes by executing and delivering to the Sellers and Jefferies
& Company, Inc. ("Jefferies") a Guaranty Agreement dated February 3, 2004 (the
"Wellspring Guaranty"); and

      WHEREAS, as a condition of the Sale, the Wellspring Guaranty was secured
by a Security Agreement dated February 3, 2004 from Wellspring to the Sellers
and Jeffries (the "Wellspring Security Agreement") and a pledge of the Shares
pursuant to a Stock Pledge Agreement dated February 3, 2004 from Media to the
Sellers and Jefferies (the "Pledge Agreement")"; and

      WHEREAS, an Event of Default, as such term is defined in the Notes has
occurred and remains uncured, which also constitutes an Event of Default under
the Wellspring Security Agreement and the Pledge Agreement; and

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      WHEREAS, the Sellers have agreed to waive the Event of Default under the
Notes, the Pledge Agreement and the Wellspring Security Agreement if, and on the
condition that Guarantor guarantee all of the obligations of Media pursuant to
the Notes, the Agreement, the Pledge Agreement, the Security Agreement, and the
other documents executed pursuant thereto (the "Waiver"); and

      WHEREAS, to secure performance of the obligations of the Guarantor
hereunder, the Guarantor has agreed to deposit certain sums, to be held in
escrow pursuant to the terms of an Escrow Agreement executed contemporaneously
herewith (the "Escrow Agreement");

      NOW, THEREFORE, the parties hereto agree as follows:

            1. Capitalized terms used but not defined herein shall have the
meanings set forth in the Agreement.

            2. In consideration of the Waiver, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Guarantor hereby unconditionally guarantees to the Sellers, their successors and
assigns the prompt payment and performance of each and every obligation and
liability of Media to the Sellers according to the terms of the Agreement, the
Notes, the Pledge Agreement, the Security Agreement by no later than February 4,
2006 and the Escrow Agreement (collectively the "Documents"). The Guarantor
agrees that, with or without notice or demand, the Guarantor will reimburse
Sellers for all costs and expenses (including but not limited to reasonable
counsel fees) incurred by Sellers in connection with the collection, compromise
and/or enforcement of the debts or obligations of Media, Wellspring or Guarantor
pursuant to the Documents and this Guaranty.

            3. The Guarantor represents and warrants that it has full corporate
power and authority to execute, deliver and perform this Guaranty.

            4. This Guaranty is an absolute and unlimited guaranty of payment,
and not of collection, without regard to the regularity, validity or
enforceability of any liability or obligation of Media except with respect to
any rights of set off contained in the Note from Media to Al Cattabiani dated
February 3, 2004 in the amount of $200,000 and only to the extent that a claim
for setoff has been made; and the Sellers may, at their option, proceed directly
and at once, without notice, against the Guarantor to collect and recover the
full amount of the liability hereunder or any portion thereof, without
proceeding against Media or any other person, or foreclosing upon, selling, or
otherwise disposing of or collecting or applying against any of the collateral
under the Documents. The Guarantor hereby waives presentment, demand, protest,
and notice of any kind, including but not limited to notice of acceptance,
protest, non-payment, non-performance or non-observance.

            5. This Guaranty may not be changed or discharged orally, but only
by an agreement in writing signed by the party against whom enforcement of any
such change or discharge is sought.

            6. In such manner, on such terms, and at such times as they deem
best, and with or without notice to the Guarantor, Sellers may alter,
compromise, amend, or change the time or manner for the payment of any
indebtedness, increase or reduce the rate of interest thereon, release or add
any one or more guarantors or endorsers, accept additional or substituted
security, or release and subordinate any security. No exercise or non-exercise
by the Sellers of any right hereby given it, no dealing by Sellers with Media or
any guarantor or endorser, no change,

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impairment, or suspension of any right or remedy of Sellers shall in any way
affect any of the Guarantor's obligations hereunder or give the Guarantor any
recourse against the Sellers.

            7. Guarantor further hereby agrees to deposit certain sums, to be
held in escrow pursuant to the terms of an Escrow Agreement executed
contemporaneously herewith.

            8. Guarantor shall be subrogated to the rights of the Sellers for
the full amount of the indebtedness paid by Guarantor, provided however, that
until all indebtedness hereby guaranteed has been paid in full, the Guarantor
shall not assert any right of subrogation unless expressly authorized in writing
by the Sellers.

            9. Guarantor's liability shall continue notwithstanding the
incapacity, death, or disability, liquidation, insolvency or bankruptcy of Media
or any other guarantor. The failure by Sellers to file or enforce a claim
against the estate (either an administration, bankruptcy, or other proceeding)
of Guarantor, any other guarantor, Media, or of any other person shall not
affect Guarantor's liability hereunder, nor shall Guarantor be released from
liability if recovery from Media, any other guarantor, or any other person
becomes barred by any statute of limitation or is otherwise prevented. Guarantor
waives and agrees not to assert or take advantage of the defense of the statute
of limitations in any action hereunder or for the collection of any credit
hereby granted.

            10. In the event that any action or other proceedings shall be
brought to enforce this Guaranty or any provision hereof, the same may be
maintained by one action or joined with any action or other proceedings against
Media and/or any other guarantor of Media's obligations to the Sellers. Prior
action or suit against Media whether alone or jointly with other guarantors,
shall not be a prerequisite to Sellers' right to proceed hereunder in case of
any default by Media. The rights of Sellers are cumulative and shall not be
exhausted by exercise of any rights hereunder or otherwise against Guarantor by
any number of successive actions until and unless all indebtedness hereby
guaranteed has been paid or performed, and Guarantor's obligations hereunder
have been fully satisfied.

            11. Should any one or more provisions of this guaranty be determined
to be illegal or unenforceable, all other provisions nevertheless shall remain
effective.

            12. The Guarantor further agrees that the validity of this Guaranty
and the obligations of the Guarantor hereunder shall in no way be terminated,
affected or impaired: (a) by reason of the assertion by Media of any rights or
remedies which it may have under or with respect to any of the Documents,
against any person obligated thereunder, except with respect to any rights of
set off contained in the Note from Media to Al Cattabiani dated February 3, 2004
in the amount of $200,000 and only to the extent that a claim for setoff has
been made; or (b) by reason of any failure to file or record any of such
instruments or to take or perfect any security intended to be provided thereby;
or (c) by reason of the release or exchange of any property covered by the
Documents or other collateral; or (d) by reason of Sellers' failure to exercise,
or delay in exercising, any such right or remedy or any right or remedy Sellers
may have hereunder or in respect to this Guaranty; or (e) by reason of the
commencement of a case under the Bankruptcy Code by or against Media, the
Guarantor or any person or entity obligated under the Documents, or liquidation
of the Guarantor; or (f) by reason of any payment made on the obligations
arising out of the Documents, whether made by Media or any Guarantor or any
other person, which is required to be refunded pursuant to any bankruptcy or
insolvency law; it being understood that no payment so refunded shall be
considered as a payment of any portion of the

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obligations under the Documents, nor shall it have the effect of reducing the
liability of the Guarantor hereunder. It is further understood, that if Media
shall have taken advantage of, or be subject to the protection of any provision
in the Bankruptcy Code, the effect of which is to prevent or delay Sellers from
taking any remedial action against Media, including the exercise of any option
Sellers have to declare the sums or obligations under the Documents due and
payable on the happening of any default or event by which under the terms of the
Documents, any such sums or obligations shall become due and payable, Sellers
may, as against Guarantor, nevertheless, declare such sums or obligations due
and payable and enforce any or all of its rights and remedies against Guarantor
provided for herein.

            13. The Guarantor further covenants that this Guaranty shall remain
and continue in full force and effect as to any modification, extension or
renewal of any of the Documents, that Sellers shall not be under a duty to
protect, secure or insure any security or lien provided by the Documents, and
that other indulgences or forbearance may be granted under any or all of the
Documents, all of which may be made, done or suffered without notice to, or
further consent of, the Guarantor.

            14. As a further inducement to the Sellers to enter into the Escrow
Agreement and the Waiver,, and in consideration thereof, the Guarantor further
covenants and agrees: (a) that in any action or proceeding brought by Sellers
against the Guarantor pursuant to this Guaranty, the Guarantor shall and does
hereby waive trial by jury; (b) Guarantor irrevocably consents to service of
process by registered or certified mail, postage prepaid, to it at its address
given in or pursuant to the first paragraph hereof, or such other address as
Guarantor shall give to Sellers by certified mail, postage prepaid, at the
addresses given for the Sellers in the first paragraph hereof, the Guarantor
hereby waiving personal service thereof; (c) that within thirty (30) days after
such mailing, the Guarantor so served shall appear or answer to any summons and
complaint or other process and should the Guarantor so served fail to appear or
answer within said thirty-day period, said Guarantor shall be deemed in default
and judgment may be entered by Sellers against the said party for the amount as
demanded in any summons and complaint or other process so served; (d) with
respect to any claim or action arising hereunder, the Guarantor: (1) irrevocably
submits to the jurisdiction of the courts of the State of New York and the
United States District Court located in New York County; and (2) irrevocably
waives any objection which it may have at any time to the laying on venue of any
suit, action or proceeding arising out of or relating to the Documents brought
in any such court, irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum;
and (e) nothing in this Guaranty will be deemed to preclude Sellers from
bringing an action or proceeding with respect hereto in any other jurisdiction.

            15. All reasonable fees, costs and expenses, of any nature, arising
or incurred in connection with the negotiation and preparation of this Guaranty
shall be paid by Guarantor, promptly upon presentment of invoices therefor.

            16. This Guaranty shall inure to the benefit of the Sellers, their
successors and/or assigns and shall bind Guarantor's and its successors and
assigns.

            17. This Guaranty is and shall be deemed to be a contract entered
into, under, and pursuant to the laws of the State of New York and shall be in
all respects governed, construed, applied, and enforced in accordance with the
laws of the State of New York; and no defense given or allowed by the laws of
any other state or country shall be interposed in any action hereon unless such
defense is also given or allowed by the laws of the State of New York.

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      IN WITNESS WHEREOF, the Guarantor has hereunto signed this guaranty as of
the day and year first above written.

                                        AMERICAN VANTAGE COMPANIES, GUARANTOR

                                        By: /s/ Ronald J. Tassinari, CEO
                                            ------------------------------------

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ACKNOWLEDGMENT IN LAS VEGAS

STATE OF NEVADA, COUNTY OF CLARK SS.:

      On March 18th 2005 before me, the undersigned, personally appeared Ronald
J. Tassinari personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their capacity(ies), and that by his/her/their signature(s) on the
instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument.

                                        /s/ Joung Mi Jin
                                        ----------------------------------------
                                        (signature and office of individual
                                        taking acknowledgment)

                                       6<PAGE>

                                  EXHIBIT 10.1

                                CITIZENS BANCORP
                        1998 INCENTIVE STOCK OPTION PLAN

      1. Purpose. The purpose of this 1998 Incentive Stock Option Plan (the
"Plan") is to enable Citizens Bancorp (the "Company") to attract and retain
experienced and able employees of the Company and to provide an incentive to
these individuals to exert their best efforts for the Company and its
shareholders.

      2. Types of Stock Options Available. The Board of Directors of the Company
(the "Board") is authorized to make two kinds of stock option grants of the
common stock ("Stock") of the Company: (i) grants of Incentive Stock Options and
(ii) grants of Non-Statutory Stock Options. Such grants shall be made subject to
the conditions and restrictions set forth in the Plan.

      3. Administration.

      3.1 Board of Directors. The Board shall administer the Plan, and shall
determine and designate the persons to whom grants shall be made and the
amounts, terms and conditions of such grants. Subject to the provisions of the
Plan, the Board may adopt or amend rules and regulations for the administration
of the Plan. The interpretation and construction of the Plan by the Board shall
be final and conclusive. The Board may delegate to a committee of the Board
authority to administer the Plan; provided, that only the Board, and not a
committee, may amend or terminate the Plan as provided elsewhere herein.

      3.2 Stock Valuation. Whenever the operation of the Plan requires that the
fair market value of the Stock be determined, the fair market value shall be
established in accordance with methods chosen by the Board in its discretion and
in accordance with its fiduciary duties. Such methods may include, without
limitation, the valuation method specified in the Company's currently effective
Dividend Reinvestment Plan.

      3.3 Employee Participation. No employee of the Company who receives a
stock option under the Plan shall participate in any decisions of the Board with
respect to the grant of the option to that employee.

      4. Eligibility. Stock option Grants may be made under the Plan to officers
and key employees of the Company whom the Board believes have made or will make
an essential contribution to the Company; provided, however, that directors of
the Company, except for directors who are also employees of the Company, are not
eligible for grants under the Plan.

      5. Shares Subject to the Plan. The total number of shares of Stock that
may be issued upon the exercise of all options granted under the Plan shall at
no time exceed in the aggregate four percent (4%) of the issued and outstanding
Stock of the Company. If any option under the Plan expires or is canceled or
terminated and is unexercised in whole or in part, the shares of Stock allocable
to the unexercised portion shall again become available for awards under the
Plan. Stock issued under the Plan may be subject to such restrictions on
transfer, repurchase rights, or other restrictions as are determined by the
Board. The certificates representing such Stock shall include language stating
such restrictions as determined by the Board.

      6. Effective Date and Duration of Plan.

      6.1 Effective Date. The Plan shall become effective (the "Effective Date")
upon the approval of a resolution by a majority of the shareholders of the
Company ratifying the adoption of the Plan by the Board. Grants may be made
under the Plan at any time after the Effective Date and before termination of
the Plan.

      6.2 Duration of the Plan. The Plan shall continue in effect until, in the
aggregate, options have been awarded and exercised with respect to all Stock
subject to the Plan under paragraph 5 (subject to any adjustments under
paragraph 10). The Board may suspend or terminate the Plan at any time except
with respect to options then outstanding under the Plan. Termination shall not
affect any right of the Company to repurchase shares or the forfeitability of
shares issued under the Plan.

      7. Grants.

      7.1 Power of Board of Directors. The Board may, from time to time, take
the following actions, separately or in combination, under the Plan: (i) grant
Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code
of 1986, as amended (the "Code"); and (ii) grant options other than Incentive
Stock Options (hereinafter "Non-Statutory Stock Options"). The Board shall
specify the action taken with respect to each person granted an option under the
Plan, and shall specifically

<PAGE>

designate each option granted under the Plan as an Incentive Stock Option or a
Non-Statutory Stock Option. All such grants are subject to the restrictions
described elsewhere in the Plan.

      7.2 General Rules Relating to Grants of Stock Options.

            7.2.1 Time of Exercise. Except as provided in paragraph 9, stock
options granted under the Plan may be exercised over the period stated in each
option in amounts and at times prescribed by the Board and stated in the option,
provided that options shall not be exercised for fractional shares. If the
optionee does not exercise an option in any period with respect to the full
number of shares to which the optionee is entitled in that period, the
optionee's rights shall be cumulative and the optionee may purchase those shares
in any subsequent period during the term of the option.

            7.2.2 Purchase of Shares. Shares may be purchased or acquired
pursuant to an option only on receipt by the Company of notice in writing from
the optionee of the optionee's intention to exercise, specifying the number of
shares the optionee desires to purchase and the date on which the optionee
desires to complete the transaction, which may not be more than 30 days after
receipt of the notice. On or before the date specified for completion of the
purchase, the optionee must have paid the Company the full purchase price in
cash, in shares of Stock previously acquired by the optionee valued at fair
market value, or in any combination of cash and shares of Stock. No shares shall
be issued until full payment has been made. Each optionee who has exercised an
option shall, on notification of the amount due, if any, and prior to or
concurrently with delivery of the certificates representing the shares for which
the option was exercised, pay to the Company amounts necessary to satisfy any
applicable federal, state, and local withholding tax requirements. If additional
withholding becomes required beyond any amount deposited before delivery of the
certificates, the optionee shall pay such amount to the Company on demand. If
the optionee fails to pay the amount demanded, the Company shall have the right
to withhold that amount from other amounts payable by the Company to the
optionee, including salary, subject to applicable law. The optionee exercising
the option shall be solely responsible for payment of federal income taxes and
other taxes for which optionee is liable as a result of the exercise.

      7.3 Incentive Stock Options. Incentive Stock Options shall be subject to
the following additional terms and conditions:

            7.3.1 Limitation on Amount of Grants. No employee may be granted
Incentive Stock Options under the Plan such that the aggregate fair market value
on the date of grant of the Stock with respect to which Incentive Stock Options
are exercisable for the first time by that employee during any calendar year,
under the Plan and under any other incentive stock option plan (within the
meaning of Section 422 of the Code) of the Company or any parent or subsidiary
of the Company, exceeds $100,000.

            7.3.2 Option Price. The option price per share under each option
granted under the Plan shall be determined by the Board, but the option price
with respect to an Incentive Stock Option shall be not less than 100 percent of
the fair market value of the shares of Stock covered by the option on the date
the option is granted.

            7.3.3 Duration of Options. Subject to paragraphs 7.3.4 and 9, each
option granted under the Plan shall continue in effect for the period fixed by
the Board, except that no Incentive Stock Option shall be exercisable after the
expiration of 10 years from the date it is granted.

            7.3.4 Limitations on Grants to 10 Percent Shareholders. An Incentive
Stock Option may be granted under the Plan to an employee of the Company, or of
any parent or subsidiary of the Company, possessing more than 10 percent of the
total combined voting power of all classes of stock of the Company, or of any
parent or subsidiary of the Company, only if (i) the option price is at least
110 percent of the fair market value of the Stock subject to the option on the
date it is granted, and (ii) the option by its terms is not exercisable after
the expiration of five years from the date it is granted.

            7.3.5 Limitation on Time of Grant. No Incentive Stock Option may be
granted on or after the tenth anniversary of the Effective Date.

      7.4 Non-Statutory Stock Options. Non-Statutory Stock Options shall be
subject to the following additional terms and conditions:

            7.4.1 Option Price. The option price per share under each option
granted under the Plan for a Non-Statutory Stock Option shall be the fair market
value of the Stock at the time of the grant.

            7.4.2 Duration of Options. Non-Statutory Stock Options granted under
the Plan shall continue in effect for the period fixed by the Board.

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      8. Nontransferability. Options granted under the Plan shall be
nonassignable and nontransferable by the holder except by will or by the laws of
descent and distribution applicable to the holder's estate, and shall be
exercisable during the holder's lifetime only by the holder.

      9. Vesting of Option Grants; Time of Exercise.

      9.1 Vesting. All stock options granted under the Plan shall fully vest on
the date of grant, unless the terms of the grant expressly provide otherwise.
The Board may in its discretion may provide for vesting in accordance with the
schedule provided below.

      9.2 Vesting Schedule. The date of grant of a Stock option to an employee
of the Company shall be the "Grant Date." A Stock option grant shall, if the
terms of the grant so provide, vest in accordance with the following schedule
during the optionee's continuous employment by the Company from and after the
Grant Date.

<TABLE>
<CAPTION>
  Years of Employment        Nonforfeitable %
-----------------------      ----------------
<S>                          <C>
1 year from Grant Date              25%
2 years from Grant Date             50%
3 years from Grant Date             75%
4 years from Grant Date            100%
</TABLE>

      9.3 Exercise of Options Granted Under Vesting Schedule. The Board shall
determine in its discretion, at the time the option is granted, the terms and
conditions under which an option granted under the vesting schedule provided in
Section 9.2 may be exercised by the optionee.

      9.4. Impact of Termination of Employment on Non-Vested Option Grants.

            9.4.1 Retirement or General Termination. Unless otherwise determined
by the Board, (i) if an employee's employment by the Company is terminated for
cause, any portion of a stock option which has not vested shall be deemed
forfeited on the date of the termination; and (ii) if an employee's employment
by the Company is terminated without cause or by reason of the employee's
retirement, any portion of a stock option which has not vested shall be deemed
vested on the termination date. The transfer of an employee by the Company or
any parent or subsidiary of the Company to the Company or any parent or
subsidiary of the Company shall not be considered a termination under this
Section.

            9.4.2 Death or Disability. Unless otherwise determined by the Board,
if an employee's employment by the Company is terminated because of death or
physical disability (within the meaning of Section 22(e)(3) of the Code), any
portion of a stock option which has not vested shall be deemed vested on the
date of such termination.

      9.5. Impact of Termination of Employment on Vested Option Grants.

            9.5.1 Retirement or General Termination. Unless otherwise determined
by the Board, if an employee's employment by the Company is terminated by
retirement or for any reason other than in the circumstances specified in 9.5.2
below, any vested option held by the employee may be exercised at any time prior
to its expiration date or the expiration of 90 days after the date of the
termination, whichever is the shorter period, but only if and to the extent the
employee was entitled to exercise the option on the date of termination. The
transfer of an employee by the Company or any parent or subsidiary of the
Company to the Company or any parent or subsidiary of the Company shall not be
considered a termination for purposes of the Plan.

            9.5.2 Death or Disability. Unless otherwise determined by the Board,
if an employee's employment by the Company is terminated because of death or
physical disability (within the meaning of Section 22(e)(3) of the Code), any
vested option held by the employee may be exercised at any time prior to its
expiration date or the expiration of one year after the date of termination,
whichever is the shorter period, for the greater of (a) the number of remaining
shares for which the employee was entitled to exercise the option on the date of
termination or (b) the number of remaining shares for which the employee would
have been entitled to exercise the option if such option had been 50 percent
exercisable on the date of termination. If an employee's employment is
terminated by death, any option held by the employee shall be exercisable only
by the person or persons to whom the employee's rights under the option pass by
the employee's will or by the laws of descent and distribution applicable to the
employee's estate.

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<PAGE>

      9.6 Termination of Unexercised Rights. To the extent an option held by any
deceased employee or by any employee whose employment is terminated is not
exercised within the limited periods provided above, all further rights to
exercise the option shall terminate at the expiration of such periods.

      10. Adjustments. If the Board determines that an adjustment in the number
of shares of Stock subject to outstanding grants of options is required in order
to prevent the dilution or enlargement of the benefits, or potential benefits,
which the Board intended to be made available under the Plan, the Board may make
such adjustments as it deems equitable. Any such adjustments made by the Board
shall be final. Examples of events which may require an adjustment include,
without limitation: (i) the issuance of a stock dividend; (ii) a stock split or
reverse stock split; and (iii) a recapitalization, reorganization, merger,
consolidation, merger, split-up, spin-off, combination, repurchase, exchange of
shares or other corporate transaction or event involving or affecting the Stock.
The adjustments which the Board may make include, without limitation: (i)
adjusting the number or percentage of shares of Stock with respect to which
grants may be made; (ii) adjusting the number of shares of Stock subject to
outstanding awards, including issued but unexercised option grants; and (iii)
adjusting the exercise price of any issued but unexercised option grants, or
where appropriate, providing for a cash payment to the holder of an outstanding
grant. In the event of a stock split or stock dividend, the adjustment to the
number of shares of Stock covered by an existing, unexercised stock option grant
shall be mandatory, not discretionary.

      11. Change of Control. Notwithstanding any other provision of the Plan or
of the terms of a specific grant to the contrary, on the effective date of any
Change of Control of the Company any grant of a Stock option under the Plan
which is not vested shall vest immediately and fully. As used herein, "Change of
Control" means (i) the acquisition of twenty-five percent (25%) or more of the
voting securities of the Company by any person, or persons acting as a group
within the meaning of Section 13(d) of the Securities Exchange Act of 1934, or
(ii) any such acquisition of a percentage between ten percent (10%) and
twenty-five percent (25%) of such voting securities if any of the Board, the
Comptroller of the Currency, the Federal Deposit Insurance Corporation or the
Federal Reserve Bank have made a determination that such acquisition constitutes
or will constitute control of the Company. The term "person" means an
individual, corporation, bank, bank holding company, or other entity, but
excludes any employee stock ownership plan established for the benefit of
employees of the Company or any of its subsidiaries or other affiliates.

      12. Amendment of Plan. The Board may at any time amend the Plan to comply
with changes in the law or for any other reason. Amendments to the Plan shall
not be submitted to the shareholders of the Company for approval except at the
discretion of the Board, unless applicable law requires shareholder approval of
the amendment or amendments. Except as provided in paragraph 10, however, no
change in an option already granted shall be made without the written consent of
the option holder. The Board may amend the Plan to provide for (a) an increase
in the total number of shares that may be issued under the Plan, and (b) a
change in the class of persons eligible to receive grants under the Plan.

      13. Approvals. The obligations of the Company under the Plan may be
subject to the approval of state and federal authorities or agencies with
jurisdiction in the matter. The Company will use its best efforts to take steps
required by state or federal law or applicable regulations in connection with
any grants made under the Plan. The Company shall not be obligated to issue or
deliver shares of Stock under the Plan if the Company is advised by legal
counsel that doing so would violate applicable state or federal laws.

      14. Employment Rights. Nothing in the Plan or any grant pursuant to the
Plan shall confer on a Company employee any right to be continued in the
employment of the Company, or shall interfere in any way with the right of the
Company to terminate such employee's employment at any time, with or without
cause.

      15. Rights as a Shareholder. A holder of an option grant shall have no
rights as a shareholder with respect to any shares covered by the option until
the date of issue of a stock certificate to him or her for such shares. Except
as otherwise provided in the Plan, no adjustment shall be made for dividends or
other rights for which the record date is prior to the date of such stock
certificate.

      16. Definitions. As used herein, (i) "Company" includes any parent
corporation, subsidiaries and other affiliates of the Company, and (ii) "Board"
includes any committee of the Board of Directors of the Company established to
administer the Plan.

                      Date of Adoption: November 17, 1998.

                                       4

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