Document:

AGREEMENT OF SALE AND PURCHASE

                                     between

                   OMEGA HEALTHCARE INVESTORS, INC., as Seller

                                       and

                 TENET HEALTHSYSTEM PHILADELPHIA, INC., as Buyer

<PAGE>

                         AGREEMENT OF SALE AND PURCHASE

                  THIS  AGREEMENT  made this  12th  day of May,  2000,  by and
between OMEGA  HEALTHCARE  INVESTORS,  INC., a Maryland  corporation,  having an
address at 900 Victors Way, Suite 350, Ann Arbor,  Michigan 48103 ("Seller") and
TENET HEALTHSYSTEM  PHILADELPHIA,  INC., a Pennsylvania  corporation,  having an
address at c/o Tenet Healthcare,  Center  Square-West Tower, 1500 Market Street,
34th Floor, Philadelphia, Pennsylvania 19102 ("Buyer").

                              W I T N E S S E T H :

                  In  consideration  of the covenants and  provisions  contained
herein, the parties agree as follows:

     1.  Agreement to Sell and  Purchase.  Seller  agrees to sell to Buyer,  and
Buyer agrees to purchase from Seller, subject to all of the terms and conditions
of this  Agreement,  the Seller's  leasehold  interest as tenant in the four (4)
ground  leases and as  landlord  in the  four(4)  operating  leases,  each dated
October  27,  1993,  by and  between  Seller  on the one hand  and The  Graduate
Hospital or Graduate Health System,  Inc. on the other (each  "GHS")(predecessor
in interest to Allegheny  Hospitals,  Centennial,  which was the  predecessor in
interest to Buyer) relating to four (4) separate  parcels of property located in
the City of  Philadelphia,  Commonwealth of  Pennsylvania  and consisting of the
following:

       (1) Real  Property. The Seller's leasehold interest as tenant under the
ground leases,  attached hereto as Exhibit A (the "Ground Leases"), and the
Seller's  leasehold  interest as landlord under the operating  leases, attached
hereto as Exhibit B (the "Operating  Leases"),  relating to those certain tracts
of land more fully  described  on  Exhibit C to this  Agreement containing the
following improvements and further described as follows:

          (i) The Ground Leases and Operating Leases, each dated October 27,
1993, and originally by and between Seller and GHS and described as follows:

                             (1) A four (4) floor medical  office
                     building  located at 520 South 19th  Street,
                     Philadelphia,  Pennsylvania ("520 South 19th
                     Street");

                             (2) A thirteen  (13)  floor  medical
                     office  (commonly known as Pepper  Pavilion)
                     building  located  at 1800  Lombard  Street,
                     Philadelphia,  Pennsylvania  ("1800  Lombard
                     Street");

                             (3) A six (6) floor  medical  office
                     building   located  at  1740  South  Street,
                     Philadelphia,   Pennsylvania   ("1740  South
                     Street"); and

                             (4) A five (5) floor parking garage,
                     located at 1700 South Street,  Philadelphia,
                     Pennsylvania   ("1700  South  Street")  (520
                     South 19th Street, 1800 Lombard Street, 1740
                     South  Street  and  1700  South  Street  are
                     herein  collectively  called the "Locations"
                     and individually a "Location").

          (ii) The estate  for years in each  Location heretofore conveyed to
Seller by GHS.

                  The real property shall include all appurtenances  thereto, as
well as Seller's interest, if any, in the personal property,  equipment and site
improvements  located at each  Location  and all right,  title and  interest  of
Seller,  if any,  in and to any land lying in the bed of any  street,  opened or
proposed,  abutting each Location,  and all right, title and interest of Seller,
if any, in and to any unpaid award for the taking by eminent  domain of Seller's
interest  in the Ground  Leases and  Operating  Leases or for damage to the land
covered by the  Ground  Leases by reason of change of grade of any  street.  The
foregoing,  together  with the Ground  Leases  and the  Operating  Leases  shall
hereinafter be referred to collectively as the "Real Property."

       (2) Personal  Property.  All fixtures,  furniture, equipment, supplies
and other  personal  property,  if any, owned by Seller and attached or
appurtenant  to,  or  located  in or on,  or used in  connection  with  the Real
Property,  together with Seller's right,  title and interest, if any, in and to
all intangible personal property used in the ownership, operation or maintenance
of the Real Property (collectively, the "Personal Property").

       (3) Property.  The Real Property and the Personal Property are
sometimes collectively referred to as the "Property".

     2. Purchase Price.

       Amount and Method of Payment.  The purchase price (the "Purchase  Price")
for the Property,  subject to adjustments as provided in this Agreement, shall
be Thirty-Four Million Dollars ($34,000,000), and shall be paid to Seller at
Closing by wire transfer of immediately available funds.

     3. Closing.

       (1) Place of  Closing.  The  closing  and  settlement of this transaction
("Closing") shall take place at the offices of Wolf, Block, Schorr and
Solis-Cohen LLP, 1650 Arch Street, 22nd Floor, Philadelphia, Pennsylvania 19103,
or pursuant to an escrow  agreement  mutually  satisfactory to Seller and Buyer.

       (2) Closing Date.  Closing  and funding  shall occur at
11:00 a.m.(EST) on May 31,  2000,  or on such  other  date as the  parties shall
jointly designate in writing (the "Closing Date").

      4. Condition of Title.

        (1) Title to Real  Property.  Title to the Real Property shall be good
and  marketable  and free and  clear of all  liens, restrictions, easements,
encumbrances,  leases,  tenancies (other than as provided for in the Ground
Leases and the  Operating  Leases and any  subleases made by the lessee under
the Operating Leases) and other title objections, except for the Permitted
Encumbrances  (as  hereinafter  defined),  and shall be insurable as such and
as provided  in this  Agreement by Chicago Title Insurance Company  (the "Title
Company")  pursuant to an ALTA Owner's  Policy of Title Insurance (the "Owner's
Policy of Title Insurance").  The term "Permitted Encumbrances" shall mean: (i)
any lien or other  encumbrance  that encumbers the Buyer's fee title to the land
covered by each Ground Lease (as  distinguished from Seller's  interests  under
each Ground Lease and Operating Lease); (ii) the items set forth on Exhibit D to
this  Agreement;  (iii) any items  deemed permitted  encumbrances  pursuant to
Section 5(c) hereof;  (iv) as to the leasehold  estate under each Ground Lease,
the terms and conditions of the respective  Ground Lease and the rights of Buyer
as lessee  under the respective Operating  Lease;  and (v) as to the  lessor's
interest in each Operating Lease, the rights of Buyer as lessee thereunder.
The premium for the Owner's Policy of Title Insurance and such  endorsements
will be paid by Buyer.  Title to the Real Property shall be such that Title
Company will commit to the Owner of the fee simple  estate in each  Location to
insure  such estate free and clear of any right, title or interest of Seller
under the Ground Leases or as holder of an estate for years,  upon  presentation
by Buyer and (if different) Seller's assignee at Closing of instruments of
termination.

     (2) Title to Personal Property.  Title to the Personal Property,  if any,
shall be good and marketable and free and clear of all liens, security interests
and other encumbrances. Seller shall pay at or before Closing all sums required
to free the Personal Property,  if any, of any interest of any party  and  shall
cause  to be  filed  at or  before Closing  any  termination statement, release,
discharge or other document required to remove of record any encumbrance upon
the Personal Property, if any, held by any party.

     (3)   Commitment to Insure.  Within one (1) business day after
the date of this  Agreement,  Buyer  shall  order a  commitment  to insure  with
respect to the Real Property  from the Title  Company,  such  commitment to show
that title to  Seller's  leasehold  interest  in the Real  Property is vested in
Seller,  and to commit to  insure  title to the Real  Property  as  required  by
Section  5(a).  If the  commitment  to insure  discloses  that title to the Real
Property is subject to any defect,  encumbrance or other title  objection  other
than the Permitted Encumbrances, or if Buyer is unable to obtain such commitment
to  insure,  Buyer  shall  have  the  right  to give to  Seller  written  notice
specifying such defect,  encumbrance or other title  objection,  or inability to
obtain such  commitment  to insure,  and Seller shall  (subject to the remaining
provisions  of this  subparagraph)  use its  diligent  efforts to  correct  such
defect, encumbrance or other title objection and obtain the commitment to insure
from a reputable title insurance  company  acceptable to Buyer,  all by the date
which  is  ten  (10)  days  following  Buyer's  notice  specifying  the  defect.
Notwithstanding anything in this Section 5(c) to the contrary,  Seller shall not
be deemed to have any  obligation  to correct any defect,  encumbrance  or other
title objection or to obtain the commitment,  unless Seller expressly undertakes
such an obligation by a written notice to or written notice agreement with Buyer
given or  entered  into on or prior to the  expiration  of such  10-day  period,
except at Closing,  Seller shall be  obligated  to cure,  satisfy and remove any
liens securing a monetary  obligation  created by Seller and to pay any past due
taxes and  assessments  against the Property  and the same shall not  constitute
Permitted  Encumbrances.  Buyer's sole right with respect to any matter to which
Buyer objects in a timely  manner shall be to elect on or before the  expiration
of the Inspection  Period to terminate this Agreement  pursuant to Section 14(c)
hereof.

     5. Possession.

        (1)   Delivery of  Possession.  Actual sole and  exclusive
physical  possession  of the  Property  shall  be  given  to  Buyer  at  Closing
unoccupied and free of any leases, claims to or rights of possession, other than
the rights under the Ground  Leases and the  Operating  Leases and the rights of
subtenants, if any, of Buyer under the Operating Leases, by delivery of the keys
to the Property  and  Seller's  assignment  of leases,  in the form  attached as
Exhibit E (the "Assignment"),  Seller's bill of sale in the form of Exhibit F to
this  Agreement duly executed and  acknowledged  by Seller (the "Bill of Sale"),
and any instrument  (including  any quit claim deed)  necessary to terminate and
discharge  or vest in Buyer all of Seller's  right,  title and interest in or to
the Improvements and Seller's estate for years in the Locations.

     6. Apportionments.

       (1) (i)   Base Monthly  Rent. Base monthly rent paid by Buyer
as tenant  under the  Operating  Leases  shall be  apportioned  pro rata between
Seller  and  Buyer on a per diem  basis as of the  Closing  Date,  with all base
monthly rent for the Closing Date for Buyer's account. If after the Closing Date
it is determined that Seller  collected any prepaid rents or other charges which
were not credited to Buyer at Closing as required by this Section,  Seller shall
pay such sums to Buyer upon notice from Buyer.

               (1) Any credit due to Buyer  pursuant to this Section 6(a)
shall be applied as a credit against the Purchase Price, and any credit due to
Seller pursuant to this Section 6(a) shall be paid by Buyer to Seller at Closing
as an  addition to the Purchase Price.

       (2)  Escrow Agreements. The total sum of the amounts, including
interest,  held by Bank One Trust Company  ("Bank One") pursuant to the four (4)
escrow agreements,  each dated December 17, 1999, by and among Seller, Buyer and
Bank One attached  hereto as Exhibit G (the "Escrow  Agreements"),  which escrow
accounts and their initial principal amounts are listed as follows: (1)

<TABLE>
<CAPTION>
<S>     <C>    <C>    <C>    <C>    <C>    <C>

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

           Operating Lease                          Escrow Account                       Initial Principal
---------------------------------------- ------------------------------------- -------------------------------------
---------------------------------------- ------------------------------------- -------------------------------------

520 South 19th Street                                  850048303                             $ 37,500
---------------------------------------- ------------------------------------- -------------------------------------
---------------------------------------- ------------------------------------- -------------------------------------

1800 Lombard Street                                    850048300                             $450,000
---------------------------------------- ------------------------------------- -------------------------------------
---------------------------------------- ------------------------------------- -------------------------------------

1740 South Street                                      850048302                             $199,200
---------------------------------------- ------------------------------------- -------------------------------------
---------------------------------------- ------------------------------------- -------------------------------------

1700 South Street                                      850048301                             $187,500
---------------------------------------- ------------------------------------- -------------------------------------

</TABLE>

together  with all  interest  earned  thereon as of the Closing  Date,  shall be
credited to Buyer at Closing and applied as a credit against the Purchase Price.
At  Closing,  Buyer shall give to Bank One written  notice,  in form  reasonably
satisfactory to Seller and to Bank One, directing Bank One to deliver to Seller,
at  Closing,  the  amounts  then held in such  escrow  accounts,  including  all
interest earned thereon as of the Closing Date.

       (3)   Transfer and Sales Taxes.   The Seller and the Buyer
shall equally divide the costs at Closing of all realty  transfer taxes, if any,
and Buyer shall pay any recordation fees imposed on any documents to be filed of
record to reflect the transaction  contemplated  by this  Agreement.  Seller and
Buyer  acknowledge  and  agree  that  the  Personal  Property,  if  any,  to  be
transferred  hereunder is not being sold in the normal course of Seller's  trade
or business, and agree to execute the appropriate exemption certificates for the
purpose of obtaining  sales tax  exemptions  with respect to the transfer of the
Personal Property, if necessary.

     7.  Representations  and Warranties of Seller.  Seller makes the  following
representations  and  warranties to Buyer, which representations and warranties
are true and correct as of the date of this Agreement,  and shall be true and
correct at and as of the  Closing  Date in all material respects as though such
representations  and warranties were made both at and as of the date of this
Agreement, and at and as of the Closing Date.

       (1) Seller has not received any written notice ("Defect Notice"), from
any predecessor of Buyer as lessee under the Operating Leases, from any
governmental agency or from any  insurance  company which has issued a policy
with respect to the Property or from any board of fire  underwriters  (or other
body  exercising similar  functions) claiming any defects or deficiencies in the
Property or suggesting or requesting the performance of any repairs, alterations
or other work to the Property.

       (2) There are no management, service, equipment, supply, security,
maintenance, construction,  or other  agreements  of Seller with respect to or
affecting  the Property, which will bind or affect Buyer after Closing.

     8. Survival.

       (1)  Surviving  Representations  and  Warranties.  The representations
and warranties of Seller set forth in Section 8 shall remain in effect for a
period of twelve (12) months  following the Closing Date and recovery may occur
thereafter as to each breach as to which Buyer shall have given to Seller
written notice within such twelve (12) month period.

     9. Operations Prior to Closing.  Between the date of the execution of this
Agreement and Closing:

            (a)  Compliance with Obligations.  Seller shall comply in all
material respects with all of the obligations of Seller under the Ground Leases,
the  Operating  Leases,  the  Escrow  Agreements  and any other agreements and
contractual arrangements of Seller affecting the Property.

     10. Environmental Matters. Seller represents and warrants to Buyer that (a)
Seller has not received  written  notice of any or  threatened civil,  criminal
or administrative  proceeding relating to environmental laws or contaminants on,
over, under, from or affecting the Property; (b) Seller has not received any
written  notice of violation or potential  liability  regarding the Property or
activities thereon relating to environmental law or contaminants on, over,
under, from or affecting the Property; and (c) Seller has not entered into any
consent  order,  consent  decree,  administrative  order,  judicial order or
settlement  relating to  environmental  laws or  contaminants  on, over,  under,
migrating from or affecting the Property.

     11.  Casualty; Destruction.

       (1)  Destruction.  If at any  time  prior  to the  Closing  Date  any
material  portion of the Property is destroyed or damaged as a result of fire or
any other casualty ("Casualty"), Buyer shall have the right, at its sole option,
of (i) terminating  this Agreement (by written notice to Seller given within ten
(10) days  after  such  Casualty)  or (ii)  proceeding  with the  Closing.  If a
Casualty occurs less than ten (10) days prior to Closing, at the option of Buyer
or Seller,  Closing  shall be postponed to a date not earlier than ten (10) days
after the Casualty. If Buyer does not terminate this Agreement,  the proceeds of
any  insurance  with  respect  to the  Property  paid  between  the date of this
Agreement  and the  Closing  Date,  together  with an amount  equal to  Seller's
deductible  under  the  Policy,   less  sums  properly  expended  by  Seller  in
restoration, shall be paid to Buyer at the time of Closing and all unpaid claims
and rights in connection  with losses to the Property shall be assigned to Buyer
at Closing without in any manner affecting the Purchase Price.

     12.   Eminent Domain.  If at any time prior to the Closing Date: a
Taking  affects all or any material part of the Property,  or if any  proceeding
for a Taking is commenced,  or if notice of the  contemplated  commencement of a
Taking is given,  Seller shall  promptly give written notice  ("Taking  Notice")
thereof to Buyer. Buyer shall have the right, at its sole option, of terminating
this Agreement by written notice to Seller within ten (10) days after receipt by
Buyer of the Taking  Notice.  If a Taking Notice is given to Buyer less than ten
(10) days prior to Closing,  at the option of Buyer or Seller,  Closing shall be
postponed to a date not earlier than ten (10) days after Buyer's  receipt of the
Taking Notice.  If Buyer does not terminate this  Agreement,  the Purchase Price
shall be reduced by the total of any  awards or damages  received  by Seller and
Seller  shall,  at Closing,  be deemed to have assigned to Buyer all of Seller's
right,  title and  interest in and to any awards or damages to which  Seller may
have become  entitled or may thereafter be entitled by reason of any exercise of
the power of eminent domain or condemnation with respect to or for the Taking of
the Property or any portion  thereof.  For purposes of this Section 13, a taking
shall be considered to be "material" if the value of the portion of the Property
taken materially  adversely  affects the ability to operate the remainder of the
Property for its intended use.

     13.  Conditions of Buyer's Obligations.

       (1)  Conditions.  The  obligations  of Buyer under this  Agreement are
subject to the  satisfaction  at the time of  Closing  of each of the  following
conditions  (any one of which may be waived  in whole or in part in  writing  by
Buyer at or prior to Closing):

          (1) all of the  representations  and  warranties  by  Seller set forth
in this Agreement  shall  be  true  and  correct  at and as of the  Closing
Date in all material respects as though such  representations  and warranties
were made both at and as of the date of this Agreement and at and as of the
Closing Date;

          (2) Seller shall have performed in all material respects all
covenants, agreements and  conditions  required by this Agreement to be
performed by Seller prior to or as of the Closing Date;

     (2)   Failure of Condition.   In the event any of the conditions
set forth in Section  14(a) are not  satisfied  as of the Closing Date and Buyer
has not previously waived such condition in writing,  Buyer shall have the right
(in  addition to all other  rights and  remedies  available  to Buyer under this
Agreement),  at  Buyer's  sole  option  (by  written  notice to  Seller)  to (i)
terminate  Buyer's  obligations  under this Agreement,  or (ii) complete Closing
notwithstanding the unsatisfied condition,  or (iii) adjourn the Closing for not
more than thirty (30) days,  during  which  period  Seller may, but shall not be
obligated  to,  satisfy any  unsatisfied  conditions  within  Seller's  power to
satisfy,  or (iv) if such  condition  is not  fulfilled  by reason  of  Seller's
intentional  act  or  omission  and  can  be  remedied  by  the  payment  of  an
ascertainable  sum,  Buyer may  complete  Closing  and deduct  such sum from the
Purchase Price.

     14. Items to be Delivered at Closing.

       (1) By Seller. At Closing, Seller shall deliver to Buyer the following:

          (1) Assignment of Leases. An Assignment of the Ground Leases
and the Operating Leases, duly executed and acknowledged by Seller, assigning to
Buyer or Buyer's  assignee all of the lessor's  and Seller's  rights,  title and
interest in the Ground Leases and Operating Leases.

          (2) Bill of Sale.  The Bill of Sale.

          (3) Deeds or other Discharge of Estate for Years. Any instrument
(including any quit claim deed) necessary to terminate and discharge or to vest
in Buyer all of Seller's  right,  title and interest in the  ownership of the
Improvements  and Seller's estate for years in the Locations.

          (4)  Resolutions;  Title  Company  Affidavits,  Etc.; Such resolutions
and  certificates as the Title Company shall require to evidence the due
authorization  of the execution and  performance of this Agreement and the
documents to be delivered pursuant hereto.

          (5) Conveyance of  Awards.  All proper  instruments for the conveyance
of the awards, if any, referred to in Sections 1(a) and 13.

          (6) FIRPTA  Affidavit  in form  attached as Exhibit H

          (7) Condominium Matters. If and to the extent that Seller has any
authority over any condominium  regime affecting any Property,  or if any person
selected by or affiliated with Seller serves as an officer or director of any
such condominium regime, then an instrument of assignment or relinquishment of
such authority and resignations of each such officer or director.

          (8) Other Documents. Any other documents required to be
delivered by Seller pursuant to any other provisions of this Agreement.

     (2) By Buyer. At Closing, Buyer shall deliver to Seller the following:

          (1) Purchase Price. The Purchase Price subject to the adjustments
as provided for in this Agreement.

          (2)  Assumption  of  Lease  Obligations.  The Assignment, duly
executed  and  acknowledged  by Buyer and in proper  form for recording,
pursuant to which Buyer assumes the  obligations  of Seller  arising under the
Ground  Leases and the  Operating  Leases  from and after the  Closing Date.

          (3) Other Documents. Any other document required to be delivered
by Buyer pursuant to any other provisions of this Agreement.

     15.  Litigation  Matters.  There is currently  pending  before the United
States Court of  Appeals  for the Second  Circuit,  on appeal  from the  United
States Bankruptcy  Court and the  United  States  District  Court,  an action
by Seller seeking  reimbursement for taxes paid by Seller in connection with the
Operating Leases and it is hereby  agreed that any  amounts  owing to Omega as a
result of such action will be assigned to Buyer at Closing by Seller's execution
of the Assignment.  Litigation  Matters.  There is currently  pending before the
United States Court of Appeals for the Second Circuit, on appeal from the United
States Bankruptcy  Court and the  United  States  District  Court, an action by
Seller seeking  reimbursement for taxes paid by Seller in connection with the
Operating Leases and it is hereby  agreed that any  amounts  owing to Omega as a
result of such action will be assigned to Buyer at Closing by Seller's execution
of the Assignment.

     16.    Brokerage.    Each party represents and warrants
to the other  that it has  dealt  with no  broker,  finder or other intermediary
in connection  with this sale.  Each  party  agrees to  indemnify,  defend and
hold harmless the other from and against all claims, demands, causes of action,
loss, damages,   liabilities,   costs  and  expenses   (including  without
limitation reasonable  attorneys'  fees  and  court  costs)  arising  from any
claims  for commissions made by any broker,  finder or other intermediary,
claiming to have dealt with such party.

     17. No Other Representations. Buyer acknowledges that neither Seller nor
anyone acting, or purporting to act, on behalf of Seller, has, except as
expressly set forth in this Agreement, made any representation or warranty with
respect to the Property and that, except for such representations and warranties
set forth in this Agreement, Seller shall convey and transfer the Property to
Buyer and Buyer shall accept the Property from Seller in an "as is" "where is"
condition.

     18.  Assignability.  Buyer  shall  have the right at  Buyer's  sole
discretion to assign this Agreement and its rights hereunder to any affiliate of
Buyer,  or with Seller's  consent (not to be  unreasonably  withheld) to a third
party; and any assignee of Buyer shall be entitled to exercise all of the rights
and  powers  of  Buyer  hereunder;  provided,  however,  as a  condition  to the
effectiveness of any such assignment, such assignee shall assume the obligations
of Buyer hereunder and no such assignment or assumption shall have the effect of
relieving Buyer from its obligations or liability hereunder.

    19. FIRPTA.

       (1)   Parties Who Are Not Foreign.    Section 1445 of the
Internal  Revenue  Code  of  1986,  as  amended  (the  "Code")  provides  that a
transferee of a United  States real  property  interest must withhold tax if the
transferor is a foreign person.  To inform Buyer that  withholding of tax is not
required  upon the  disposition  by  Seller  of a United  States  real  property
interest,  Seller shall deliver to Buyer at Closing, a FIRPTA certificate in the
form of Exhibit H,  failing  which Buyer may  withhold a portion of the Purchase
Price in accordance with the Code.

     20. Notices.

       (1) Written.  All notices, demands, requests or other communications from
each party to the other  required or permitted  under the term of this Agreement
shall be in writing  and,  unless  and until  otherwise  specified  in a written
notice by the party to whom notice is intended to be given, shall be sent to the
parties at the following respective addresses:

                           if intended for Seller:

                           Omega Healthcare Investors, Inc.
                           900 Victors Way
                           Suite 350
                           Ann Arbor, Michigan 48108
                           Fax No. (734) 887-0201
                           Attention: F. Scott Kellman and Susan Allene Kovach

                           if intended for Buyer:

                           Tenet Healthsystem Philadelphia, Inc.
                           c/o Tenent Healthcare
                           Center Square-West Tower
                           1500 Market Street, 34th Floor
                           Philadelphia, PA 19102
                           Fax No. (215) 832-2331
                           Attention: Jacinta Titialii Abbott, Esquire

                           with a copy to:

                           Wolf, Block, Schorr and Solis-Cohen LLP
                           1650 Arch Street
                           22nd Floor
                           Philadelphia, Pennsylvania 19103
                           Fax No. (215) 977-2334
                           Attention:  Thomas P. Witt, Esquire

Notices may be given on behalf of any party by its legal counsel.

     (2)  Manner of Giving. Each such notice, demand, request or other
communication shall be given (i) against a written receipt of delivery,  or (ii)
by registered or certified  mail of the United  States  Postal  Service,  return
receipt  requested,  postage  prepaid,  or  (iii)  by  a  nationally  recognized
overnight courier service for next business day delivery, or (iv) via telecopier
or facsimile  transmission  to the  facsimile  number  listed  above,  provided,
however,  that if such  communication  is  given  via  telecopier  or  facsimile
transmission,  an original  counterpart of such communication shall concurrently
be sent in either the manner specified in clause (i) or (iii) above.

     (3)  Deemed  Given.  Each such  notice,  demand,  request  or other
communication  shall be deemed to have been given on the day of consignment with
a nationally recognized overnight air courier service, on the day of delivery in
the case of hand  delivery or on the third  business day after  deposit with the
United States  Postal  Service,  as aforesaid  and  otherwise on actual  receipt
thereof.

     21. Miscellaneous.

       (1)   Captions.   The  captions  in  this  Agreement  are  inserted  for
convenience of reference only; they form no part of this Agreement and shall not
affect its interpretation.

       (2) Not Divisible.  The obligations of Buyer to buy and Seller to sell
the Real Property are not  divisible  and Buyer and Seller will be compelled to
close the transaction  contemplated  herein  only if all of the  conditions
provided  for herein are satisfied as to all of the Real Property.

       (3) Confidentiality. All discussions and any exchange of information
pursuant to this  Agreement  shall  be  considered  strictly  confidential,
except  as such information may need to shared with directors, officers,
employees and advisors ("Representatives")  of either Seller or Buyer on a "need
to know" basis.  Buyer and  Seller  acknowledge  that  each is aware  and  each
agree  to  advise  its Representatives  that U.S.  securities laws prohibit any
person who has material non-public  information about a company from purchasing
or selling securities of such company or from communicating such information to
any other person.  Except as required by law,  without the prior written consent
of the other,  Buyer and Seller each agree to direct its  Representatives not to
disclose  (a) the fact discussions  have  or are  taking  place  between  Buyer
and  Seller,  (b)  any information or material  exchanged between Buyer and
Seller, and (c) information developed in evaluating the  transaction that is the
subject of this Agreement. Buyer and Seller hereby agree that all press releases
or public  disclosures involving  the  subject  matter of this  Agreement  shall
require  the  written approval of both Buyer and Seller.

     (4)   Successors and Assigns.   Subject to the provisions of
Section 18, this Agreement  shall be binding upon and shall inure to the benefit
of the parties and their respective heirs, personal representatives,  successors
and assigns.

     (5)  Entire  Agreement;  Governing  Law.  This Agreement  contains the
entire understanding of the parties with respect to the subject  matter  hereof,
supersedes all prior or other negotiations, representations,  understandings
and  agreements  of, by or among the  parties, express  or  implied,  oral or
written,  which are  fully  merged  herein.  Any agreement  hereafter made shall
be ineffective to change,  modify,  discharge or effect an abandonment of this
Agreement  unless such agreement is in writing and signed by the party  against
whom  enforcement  of such  change,  modification, discharge or  abandonment
is sought.  This  Agreement  shall be governed by and construed under the laws
of the Commonwealth of Pennsylvania.

     (6)   Provisions Separable. The provisions of this Agreement
are  independent  of and separable  from each other,  and no provision  shall be
affected or rendered invalid or unenforceable by virtue of the fact that for any
reason any other provision may be invalid or unenforceable in whole or in part.

     (7) Gender,  etc.  Words used in this  Agreement,  regardless of the
number and gender  specifically  used,  shall be deemed and construed to include
any other number, singular or plural, and any other gender, masculine,  feminine
or neuter, as the context indicates is appropriate.

     (8)  Counterparts.  This  Agreement may be executed in any number of
counterparts,  each of which  shall be deemed to be an  original  as against any
party  whose  signature  appears  thereon,  and  all  of  which  shall  together
constitute one and the same instrument. This Agreement shall be binding when one
or more  counterparts  hereof,  individually or taken  together,  shall bear the
signatures of all of the parties reflected on this Agreement as the signatories.
The parties agree that facsimile  signatures shall have the same legal effect as
original signatures affixed hereto.

     (9)  Exhibits.  All exhibits attached to this Agreement are incorporated
by  reference  into and made a part of this  Agreement  as is  fully  set  forth
herein.

     (10) No Waiver. Neither the failure nor any delay on the part of either
party to this Agreement to exercise any right,  remedy, power or privilege under
this  Agreement  shall  operate  as a waiver  thereof,  nor shall any  single or
partial exercise of any right,  remedy, power or privilege preclude any other or
further exercise of the same or of any other right,  remedy, power or privilege,
nor shall any waiver of any right,  remedy,  power or privilege  with respect to
any  occurrence  be  construed as a waiver of any such right,  remedy,  power or
privilege  with  respect to any other  occurrence.  No waiver shall be effective
unless it is in writing and is signed by the party asserted to have granted such
waiver.

     (11)  Interpretation.  No  provision  of this  Agreement  is to be
interpreted for or against either party because that party or that party's legal
representative or counsel drafted such provision.

                  IN WITNESS WHEREOF, intending to be legally bound, the parties
have executed this Agreement as a sealed instrument as of the day and year first
above written.

Witness:                              SELLER:

                                      OMEGA HEALTHCARE INVESTORS, INC.

                                       By:   /s/ Susan A. Kovach
                                             -------------------
                                              Name:  Susan A. Kovach
                                              Title: Vice President

                                      BUYER

                                       TENET HEALTHSYSTEM PHILADELPHIA, INC.

                                       By:  /s/ Timothy L. Pullen   (SEAL)
                                            ---------------------
                                             Name:   Timothy L. Pullen
                                             Title:  Authorized Signatory

<PAGE>

                                LIST OF EXHIBITS

EXHIBIT A - GROUND LEASES
EXHIBIT B - OPERATING LEASES
EXHIBIT C - LEGAL DESCRIPTION OF REAL PROPERTY
EXHIBIT D - PERMITTED TITLE ENCUMBRANCES
EXHIBIT E - ASSIGNMENT AND ASSUMPTION OF GROUND LEASES AND OPERATING
LEASES
EXHIBIT F - BILL OF SALE
EXHIBIT G - ESCROW AGREEMENTS
EXHIBIT H - FIRPTA AFFIDAVITEXHIBIT 4.3

                              BANKFIRST CORPORATION
                                STOCK OPTION PLAN

      BANKFIRST  CORPORATION,   a  Tennessee  bank  holding  corporation,   with
principal offices at 625 Market Street,  Knoxville,  Knox County, Tennessee (the
"Corporation"),  hereby amends the BankFirst  Corporation Incentive Stock Option
Plan to be known as the BANKFIRST CORPORATION STOCK OPTION PLAN (the "Plan") for
the benefit of its employees and members of its Board,  as set forth below.  The
BankFirst  Corporation  Incentive  Stock  Option Plan  included  language  which
purported to give  directors who were not  employees  incentive  stock  options,
which is improper. The Plan is amended to provide that the directors who are not
employees  will have  non-qualified  stock options and the  employees  will have
incentive stock options. The amendment of the Plan does not in any manner affect
the number of options previously granted to employees and members of the Board.

                                    ARTICLE I
                                PLAN INTRODUCTION

      1.1. Name.  This Plan shall be known as the "BankFirst  Corporation  Stock
Option  Plan."  The  Plan  was  formerly  known  as the  "BankFirst  Corporation
Incentive Stock Option Plan".

      1.2. Purpose. The purpose of the Plan is to secure for the Corporation and
its  shareholders  the benefits  which flow from providing  selected  directors,
officers,  and other key employees of Corporation and its  subsidiaries  (herein
collectively  referred to as "directors,  officers,  and/or key employees") with
the incentive inherent in common stock ownership. By so encouraging and enabling
such  selected  directors,  officers and key  employees to become  owners of the
Corporation's  shares,  the Corporation seeks to motivate,  retain,  and attract
those highly competent individuals upon whose judgment,  initiative,  leadership
and continued efforts the success of the Corporation in large measure depends.

      1.3. Form of Plan. The Corporation is  establishing  the Stock Option Plan
pursuant to requirements of the Internal Revenue Code of 1986, as amended.

      1.4.  Effective Date. The effective date of the Plan is December 31, 1996,
the  date  of its  approval  by  the  Executive  Committee  of  the  Board.  The
shareholders  of the Corporation  approved the Plan at its annual  shareholders'
meeting held on April 21, 1997.

      1.5.  Definitions.  As used herein,  the following terms have the meanings
hereinafter set forth unless the context clearly indicates to the contrary:

            (a)  "Board"   shall  mean  the  Board  of  Directors  of  BankFirst
Corporation.

                                     Page 1
<PAGE>

            (b) "Code" shall mean the Internal Revenue Code of 1986, as amended.

            (c) "Committee"  shall mean the Executive  Committee of the Board of
Directors.

            (d) "Corporation" shall mean BankFirst Corporation.

            (e)  "Director"  means a voting  member of the Board,  excluding any
person who serves solely in an advisory capacity or as a director emeritus.

            (f) "Disability"  means permanent  disability  within the meaning of
Section 22(e)(3) of the Code.

            (g)  "Employee"  means an employee of the  Corporation or any of its
subsidiaries.

            (h) "Fair  Market  Value"  shall mean the fair  market  value of the
stock established by the Board of Directors  quarterly  immediately prior to the
grant of any option hereunder.

            (i) "Grantee" shall mean an employee and/or a member of the Board of
the  Corporation  to whom an  incentive  stock option or a  non-qualified  stock
option has been granted hereunder and has the same meaning as optionee.

            (j)  "Incentive  Stock  Option"  means an option to  purchase  stock
granted under  Section 4.1 of the Plan which is  designated  as Incentive  Stock
Option and is intended to meet the requirements of Section 422 of the Code.

            (k)  "Non-Qualified  Stock Option" means an option to purchase stock
granted under Section 4.1 of the Plan,  which is not intended to be an incentive
stock option, and will be governed by Section 83 of the Code.

            (l)  "Option"  means an incentive  stock  option or a  non-qualified
stock option.

            (m) "Option  Period"  means the period from the date of the grant of
an  option  to the date when the  option  expires  as stated in the terms of the
Stock Option Agreement.

            (n) "Optionee" shall mean a director, officer, or other key employee
to whom an Option has been granted hereunder.

            (o) "Plan" shall mean the BankFirst  Corporation  Stock Option Plan,
the terms of which are set forth herein.

            (p)   "Retirement"   means   termination  of  employment   with  the
Corporation or any of its  subsidiaries  after obtain age of 65 (or earlier with
the Corporation's or its subsidiary's consent).

                                     Page 2
<PAGE>

            (q) "Stock" shall mean the Common Stock of BankFirst Corporation or,
in the event that such outstanding shares of stock are hereafter changed into or
exchanged for shares of a different  stock or securities of the  Corporation  or
some other corporation or company, such other stock or securities.

            (r) "Stock Option  Agreement"  shall mean the agreement  between the
Corporation  and the  Optionee  under  which the  Optionee  may  purchase  Stock
hereunder.

            (s) "Subsidiary or Subsidiaries"  means any corporation which at the
time  qualifies as a  subsidiary  of the  Corporation  under the  definition  of
"Subsidiary Corporation" in Section 424(f) of the Code.

                                   ARTICLE II
                 PLAN PARTICIPATION, ADMINISTRATION, TERMINATION

      2.1. Eligibility and Plan Participation.  Selected directors, officers and
key  employees  of the  Corporation  and its  subsidiaries  shall be eligible to
participate  in the Plan.  The  Committee  may  grant  Options  to any  eligible
participant in accordance with such determinations as the Committee from time to
time in its sole discretion shall make. The granting of options  hereunder shall
be entirely  discretionary  with the  Committee and nothing in the Plan shall be
deemed to give any director,  officer,  or other key employee of the Corporation
any right to participate in the Plan or to receive options.

      2.2. Plan Administration.  The Plan shall be administered by the Committee
in accordance with the following provisions:

            (a)  Duties  and  Powers  of  Committee.   Subject  to  the  express
provisions of the Plan, the Committee  shall have sole  discretion and authority
to determine  from among the  directors,  and the President and Chief  Executive
Officer  of the  Corporation  those  to whom  and the  time or times at which an
Option may be granted hereunder, and the number of shares of Stock to be subject
to each Option.  The President and Chief  Executive  Officer shall in accordance
with the  authorization  of the Committee have sole  discretion and authority to
determine  from among the officers and key employees  those to whom and the time
or times at which an Option may be granted  hereunder,  and the number of shares
of Stock to be subject to each Option.

            (b)  Committee  Governance.  The  Committee  shall select one of its
members as the  chairperson  of the  Committee  and shall hold  meetings at such
times and places as it may determine. The Committee may appoint a secretary and,
subject to the  provisions of the Plan and to policies  determined by the Board,
may make such rules and  regulations for the conduct of its business as it shall
deem  advisable.  Written  action of the Committee may be taken by a majority of
its members, and actions so taken shall be fully effective as if taken by a vote
of a majority  of the members at a meeting  duly called and held.  A majority of
Committee  members shall constitute a quorum for purposes of a meeting.  The act
of a majority of the members  present at any meeting for which there is a quorum
shall be a valid act of the Committee.

                                     Page 3
<PAGE>

            (c)  Committee to Interpret  Plan.  Subject to the express terms and
conditions of the Plan, the Committee  shall have sole power to (i) construe and
interpret the Plan; (ii) establish, amend or waive rules and regulations for its
administration;  (iii) to determine and  accelerate  the  exercisability  of any
Option;  (iv) to  correct  inconsistencies  in the Plan or in any  Stock  Option
Agreement, or any other instrument relating to an Option; and (v) subject to the
provisions of Section 4.6, to amend the terms and conditions of any  outstanding
Option, to the extent such terms and conditions are within the discretion of the
Committee as provided in the Plan.  Notwithstanding the foregoing,  no action of
the Board or  Committee  may,  without  the  consent  of the  person or  persons
entitled to exercise any outstanding Option, adversely affect the rights of such
person or persons.

            (d)  Exculpation.  No member of the Board or the Committee  shall be
liable for  actions  or  determinations  made in good faith with  respect to the
Plan, or for awards under it.

            (e) Corporation  Assistance.  The Corporation  shall supply full and
timely information to the Committee on all matters relating to employees,  their
employment,  death,  retirement,  disability or other termination of employment,
and such other  pertinent  facts as the Committee may require.  The  Corporation
shall  furnish the  Committee  with such  clerical  and other  assistance  as is
necessary in the performance of its duties.

      2.3.  Decisions  Binding.  All  determinations  and decisions  made by the
Committee   pursuant  to  the   provisions  of  the  Plan,   including   factual
determinations, shall be final, conclusive and binding on all persons, including
the Corporation,  its Subsidiaries and affiliates,  its shareholders,  Optionees
and their estates and assignee.

      2.4.  Stock  Option  Agreements.  Each  Option  under  the  Plan  shall be
evidenced  by a Stock  Subscription  Agreement  which  shall  be  signed  by the
President of the Corporation, or as required by the circumstances,  the Chairman
of the  Committee,  and by the  Optionee,  and  shall  contain  such  terms  and
conditions as may be approved by the Committee, which need not be in the same in
all cases.  Any Stock Option Agreement may be supplemented or amended in writing
from time to time as approved by the Committee,  provided that the terms of such
Agreements  as amended  or  supplemented,  as well as the terms of the  original
Stock Option Agreement, are not inconsistent with the provisions of the Plan. An
Employee who  receives an Option  under the Plan shall not,  with respect to the
Option, be deemed to have become an Optionee, or to have any rights with respect
to the Option,  unless and until a Stock Option Agreement has been signed by the
President of the Corporation,  or as required by the  circumstances the Chairman
of the  Committee  and by the  Director  and/or  Employee  and  delivered to the
Committee,  and the Director  and/or  Employee has  otherwise  complied with the
applicable  terms and conditions of the Option.  The Committee may condition any
Option  grant  upon  the  agreement  by the  Optionee  to such  confidentiality,
non-competition   and   non-solicitation   covenants  as  the  Committee   deems
appropriate.

                                     Page 4
<PAGE>

      2.5.  Limitation  on  Exercise  of  Options.  No part of any Option may be
exercised to the extent the exercise would cause  Optionee to have  compensation
from the Corporation and its affiliated  corporations  for any year in excess of
any amount  which is provided  by the Code,  and which is  nondeductible  by the
Corporation and its affiliated corporations pursuant to Code Section 162(m). Any
portion of an Option not exercisable  because of this limitation  shall continue
to be exercisable  in any subsequent  year in which the exercise would not cause
the loss of the  Corporation or its affiliated  Corporation's  compensation  tax
deduction,  provided  such  exercise  occurs  before  lapse of the  Option,  and
otherwise  complies  with the terms and  conditions of the Plan and Stock Option
Ageement.

                                   ARTICLE III
                               STOCK OPTION SHARES

      3.1. Stock Limitations.  Subject to adjustment  pursuant to the provisions
of Section  3.3  hereof,  the number of shares of Stock  which may be issued and
sold hereunder  shall not exceed 500,000  shares.  Such shares may be authorized
and unissued shares or shares issued and thereafter acquired by the Corporation.

      3.2. Options Granted Under the Plan. Shares of Stock with respect to which
an Option granted hereunder have been exercised shall not again be available for
Option hereunder. If Options granted hereunder shall terminate or expire for any
reason  without  being wholly  exercised,  new Options may be granted  hereunder
covering the number of shares to which such Option termination relates.

      3.3.  Antidilution.  In the  event  that the  outstanding  shares of Stock
hereafter are changed into or exchanged for a different number or kind of shares
or other  securities of the  Corporation or of another  corporation by reason of
merger, consolidation, other reorganization, recapitalization, reclassification,
combination of shares, stock split-up, or stock dividend:

            (a) The aggregate number and kind of shares subject to Options which
may be granted hereunder shall be adjusted accordingly.

            (b) Rights under outstanding  Options granted hereunder,  both as to
the  number  of  subject  shares  and  the  Option  price,   shall  be  adjusted
accordingly.

            (c) Where  dissolution  or  liquidation  of the  Corporation  or any
merger or combination in which the Corporation is not a surviving corporation is
involved,  each outstanding  Option granted  hereunder shall terminate,  but the
Optionee  shall be fully vested and shall have the right,  immediately  prior to
such  dissolution,  liquidation,  merger,  or combination,  to exercise  his/her
Option in whole or in part.

            The  foregoing  adjustments  and the  manner of  application  of the
foregoing  provisions shall be determined solely by the Committee,  and any such
adjustment may provide for the elimination of fractional share interests.

                                     Page 5
<PAGE>

      3.4.  Termination,  Amendment and  Modification  of the Plan. The Board of
Directors may at any time suspend,  discontinue,  or terminate the Plan, and may
at any time and from time to time and in any  respect  amend or modify  the Plan
and make rules for its administration; provided, however, that no such action of
the  Board  without  approval  of  the  majority  of  the  shareholders  of  the
Corporation may:

            (a) Increase the total number of shares of Stock subject to the Plan
except as contemplated in Section 3.3 hereof;

            (b) Withdraw the administration of the Plan from the Committee; and

            (c)  Provided   further,   that  no   termination,   amendment,   or
modification  of the Plan shall in any manner (1) affect any Option  theretofore
granted  under  the Plan  without  the  consent  of the  Optionee  or  permitted
transferee  of the Option,  or (2) prevent  Options  issued  under the Plan from
being  Incentive  Stock  Options as defined in Section 422 of the Code,  or as a
Non-Qualified Stock Option as defined in Section 83 of the Code.

                                   ARTICLE IV
                                  STOCK OPTIONS

      4.1. Eligibility and Grant. Selected Directors, Officers and key employees
of  the  Corporation  and  its  subsidiaries  who  are  expected  to  contribute
substantially  to the  growth  and  profitability  of the  Corporation  and  its
subsidiaries  are eligible for  selection by the  Committee to receive  Options.
Both  Incentive  Stock  Options and  Non-Qualified  Stock Options may be granted
under the Plan.  If the Option is  designated  as an Incentive  Stock Option but
does not qualify as such under  Section 422 of the Code,  the Option (or portion
thereof)  shall be treated as a  Non-Qualified  Stock  Option  and  governed  by
Section 83 of the Code. Neither the Corporation nor any of its subsidiaries will
be liable for any tax  consequences  of an Option,  including but not limited to
the failure of the option intended to be an Incentive Stock Option to qualify as
such.  All Options  granted to selected  Directors,  Officers and key  employees
under the Plan shall be evidenced  by a Stock  Option  Agreement in such form as
the  Committee  may from time to time  approve.  All  options are subject to the
terms of the Plan and such  additional  terms and  conditions  contained  in the
Stock  Option  Agreement,  which  need  not  be  the  same  in  each  case,  not
inconsistent with the terms of the Plan, as the Committee finds desirable.

      4.2. Option Price.  The option price per share of Stock covered the Option
shall be determined by the Committee but shall not be less than 100% of the Fair
Market  Value of such stock on the date the Option is  granted.  The Fair Market
Value shall be determined by the Committee in its sole discretion,  provided, if
the Corporation's Stock is publicly traded on an established  securities market,
the Fair Market  Value shall be the closing  market  price of the  Corporation's
Stock as  reported on the date of the grant,  or, if no trades were  reported on
that  date,  the  closing  price  on the most  recent  trading  day  immediately
preceding  the date of the grant.  An Option  granted to any person  who, at the
time the  Option is  granted,  owns or is deemed to own  within  the  meaning of
Section 424(d) of the Code, stock possessing more than 10% of the

                                     Page 6
<PAGE>

total combined  voting power of all classes of stock of the  Corporation,  shall
have an exercise  price  which is at least 110% of the Fair Market  Value of the
Stock subject to the Option.

      4.3.  Option  Vesting.  No portion of the Option may be  exercised  unless
vested in accordance with the provisions of the Stock Option  Agreement and this
Plan. Options shall vest at an annual rate of twenty percent (20%), allowing the
exercise of the stock options in accordance with the following schedule:

Date of Grant of Option                                      Vesting Schedule
-----------------------                                      ----------------
One (1) Year from Option Date                                      20%
Two (2) Years from Option Date                                     40%
Three (3) Years from Option Date                                   60%
Four (4) Years from Option Date                                    80%
Five (5) Years from Option Date                                   100%

"Vesting" as used in the Stock Option  Agreement and this Plan shall act to give
the Optionee  those  rights  determined  by the  Committee  and no others.  Both
unvested and vested  portions of Options shall be subject to early  termination.
All Optionees  shall become fully vested upon the  dissolution or liquidation of
the Corporation,  or any merger or combination in which the Corporation is not a
surviving corporation.

      4.4. Option Period.  Each Option granted  hereunder must be granted within
ten years from the effective date of the Plan.

      4.5.  Natural  Termination  and Expiration of Options.  The period for the
exercise of each Option shall be determined by the Committee, but in no instance
shall such period exceed ten years from the date of grant of the Option.

      4.6. Early Termination and Expiration of Options;  Effect Thereof. Each of
the following shall be a "Terminating  Event", the occurrence of which shall act
to  terminate  the  Option  prior to its  natural  expiration  to the extent not
previously exercised:

                  (i)  Termination of Employment.  The termination of employment
      or directorship of the Optionee for cause,  the date of termination  being
      the date the Optionee is notified of the termination.

                  (ii)  Reduction of Position.  The reduction of the  Optionee's
      position for any reason whatsoever, the date of termination being the date
      the  Optionee  is  notified  of the  reduction.  The  Option  shall not be
      affected  by any  change  in duties or  position  as long as the  Optionee
      continues  to be an  Optionee  of the  Corporation  at the same or  higher
      position as that held on the Grant Date.

                                     Page 7
<PAGE>

Upon the occurrence of a Terminating  Event,  the unvested portion of the Option
shall expire on the date of termination  set forth above. To the extent that the
Optionee  shall have been  otherwise  entitled to do so, the vested  portion may
continue to be exercised by the Optionee  (or,  should the Optionee be deceased,
by the legatee or legatees of the Optionee under such Optionee's Last Will or by
such Optionee's  personal  representative or distributees),  during a Transitory
Period to be  determined  by the  Committee but in no event later than three (3)
months after the date of termination  set forth above.  No further vesting shall
occur  during the  Transitory  Period,  and the Option shall fully expire at the
conclusion of the Transitory Period.

      4.7. Effect of Option Termination and Expiration.  Once any Option granted
hereunder  has  terminated or expired,  such Option shall be deemed  irrevocably
expired.  Regardless  of any efforts by the  Optionee to cure the event  causing
such  termination  and/or  expiration,  such  Option may not be  revived  unless
specifically  reinstated  in  writing  by an  officer  of the  Corporation  duly
authorized by disinterested members of the Board of Directors.

      4.8.  Option  Exercise and Method.  The option  exercise and method are as
follows:

            (a) Option Exercise.  Options may be exercised in whole at any time,
or in part from time to time with respect to whole  shares  only,  to the extent
that the Option has vested,  and within the period  permitted  for the  exercise
thereof.  Further,  except as otherwise  provided herein,  the Option may not be
exercised  at any time  unless the  Optionee  shall have been in the  continuous
employ of the  Corporation  from the date the  Option is  granted to the date of
exercising the Option.

            (b) Method of Option  Exercise.  Any Option granted pursuant to this
Plan shall  contain  provisions  established  by the Board of Directors  setting
forth the manner of  exercise of such  Option.  Notwithstanding  the  foregoing,
Options shall be exercised by providing (1) written notice of intent to exercise
the  Option  with  respect  to a  specified  number of shares  delivered  to the
Corporation at its principal office in Knoxville,  Tennessee, and (2) payment in
full to the Corporation at said office of the amount of the Option price for the
number  of shares  of Stock  with  respect  to which  the  Option is then  being
exercised,  such  payment to be in cash or  certified  funds made payable to the
order of the Corporation.

      4.9.  Nontransferability  of Option.  No Option shall be transferred by an
Optionee otherwise than by Will or the laws of descent and distribution.  During
the lifetime of an Optionee the Option  shall be exercised  only by him/her.  No
transfer  of an Option by the  Optionee  by will or by the laws of  descent  and
distribution  shall be effective to bind the Corporation  unless the Corporation
shall have been furnished with written notice thereof and an authenticated  copy
of the Will and/or such other  evidence as the Committee  may deem  necessary to
establish the validity of the transfer and the  acceptance by the  transferee or
transferees of the terms and conditions of such Option.

      4.10.  Rights as  Shareholder.  An Optionee or a  transferee  of an Option
shall have no rights as a shareholder with respect to any shares subject to such
Option  prior to  purchase  of such  shares by valid  exercise of such Option as
provided  herein  and a  stock  certificate  is  issued  and  delivered  by  the
Corporation therefor.

                                     Page 8
<PAGE>

      4.11. Stock Certificates; Refunds. The Corporation shall issue and deliver
the  certificate or  certificates  for shares of Stock  purchased upon the valid
exercise of any Option granted  hereunder or any portion  thereof within fifteen
(15)  business days of the exercise of the Option and payment  therefor.  In the
event the Option or a portion  thereof is not validly  exercised or is otherwise
not available in accordance  with the terms of the Plan, the  Corporation  shall
refund the purchase  price for that portion of the Option not validly  exercised
or otherwise not available  within fifteen (15) business days of the exercise of
the Option and payment  therefor.  No refund of the purchase  price will be made
for a  validly  exercised  Option  after  share  certificates  issue.

                                    ARTICLE V
                                 MISCELLANEOUS

      5.1.  Employment  and  Directorship.  Nothing in the Plan or in any Option
granted hereunder or in any Stock Option Agreement relating thereto shall confer
upon any employee the right to continue in the employ of the Corporation, or the
director the right to serve on the Board of Directors.

      5.2. Tax  Obligations  of Optionee.  If for any reason the exercise of any
portion of any Option  granted  hereunder  shall be  determined  to be a taxable
event, the Optionee shall be solely responsible for all employment related taxes
that may be incurred thereby.

      5.3. Stock for Investment.  The Stock Option  Agreement shall provide that
the  Optionee  shall upon each  exercise of a part or all of the Option  granted
represent  and  warrant,  or be deemed to represent  and  warrant,  that his/her
purchase of stock  pursuant to such Option is for  investment  only. At any time
the Board of  Directors  may waive the  requirement  of such a provision  in any
Stock  Option  Agreement  entered  into  under  any  stock  option  plan  of the
Corporation.

      5.4.  Other  Securities  Law  Restrictions.  The Board of Directors  shall
include Securities Law-related provisions in any Stock Option Agreement that, in
its discretion, is necessary to protect the interests of the Corporation.

      5.5. Other  Compensation  Plans. The adoption of the Plan shall not affect
any other stock option or incentive  or other  compensation  plans in effect for
the Corporation,  nor shall the Plan preclude the Corporation from  establishing
any  other  forms  of  incentive  or other  compensation  for  employees  of the
Corporation.

      5.6.   Obligation   to  Sell  Subject  to   Governmental   Approval.   The
Corporation's  obligation to sell and deliver stock under the Plan in accordance
with the terms of this Agreement is at all times subject to all approvals of any
governmental   authorities   required  in  connection  with  the  authorization,
issuance, sale or delivery of the stock.

      5.7.  Plan Binding on  Successors.  The Plan shall inure to the benefit of
and be binding  upon the  successors  and assigns of the  Corporation.  The Plan
shall  inure  to the  benefit  of and be

                                     Page 9
<PAGE>

binding   upon   the   respective   heirs,   successors,   administrators,   and
representatives as permitted herein.

      5.8.  Headings.  The  headings  of each of the  provisions  hereof are for
convenience and reference only and are not substantive.  They are not to be used
in the interpretation hereof or to modify any of the terms or provisions of this
Plan.

      5.9. Singular, Plural; Gender. Whenever used herein, nouns in the singular
shall  include the plural and the  masculine  pronoun shall include the feminine
gender, and vice versa.

      5.10.  Shareholder Approval. The Plan was submitted to the shareholders of
the  Corporation  for  approval by the holders of a majority of the  outstanding
shares of Common Stock of the  Corporation  at the annual  meeting held on April
21, 1997. The Plan was approved by the holders of a majority of the  outstanding
shares of Common Stock of the Corporation.

                                    Page 10
<PAGE>

                                 ATTACHMENT "A"
                    Options Granted Before December 31, 1996

The following  grants to various  employees and nonemployees of the organization
were  made  under  a  prior  organization  and are  inclusive  in the  BankFirst
Corporation Stock Option Plan.

<TABLE>
<CAPTION>
Grant Date      Grantor     Expiration       Original         Original       12/31/99     12/31/99
                               Date        Number Shares   Exercise Price    Number of    Exercise
                                                                              Shares      Price of
                                                                                           Shares

<S>            <C>           <C>              <C>              <C>            <C>           <C>
 12/31/93      BankFirst     12/31/03         169,565          $11.50         523,505       $3.72

  3/14/95      BankFirst      3/14/05          11,700          $20.00          36,145       $6.47

  4/17/95      BankFirst      4/17/05          12,100          $20.00          37,345       $6.47

 12/31/95      BankFirst     12/31/05           2,200          $20.00           6,810       $6.47

Total Options Issued by BankFirst Prior to    195,565                         603,805
BankFirst Corporation
</TABLE>

                                    Page 11

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