Document:

MASTER EQUIPMENT LEASE AGREEMENT

MASTER EQUIPMENT LEASE AGREEMENT

	
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                         Master Equipment Lease Agreement Number A2071          
                                    

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Leased to              Name               Independent Bankshares, Inc.

(Lessee)                Address            500 Chestnut, P.O. Box 3296       
        Phone (915) 677-5550

                                City          
        Abilene                                 
        State    TX      Zip    79604            

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1.
	
AGREEMENT.  NCR Credit Corporation (Lessor) agrees to lease to Lessee and Lessee agrees to lease from Lessor the equipment (Equipment) described in any schedule (Schedule) that incorporates this Master Equipment
Lease Agreement (Agreement) by reference.  A Schedule shall incorporate this Agreement by reference by listing the above-referenced Lease Number thereon.  Such lease shall be governed by the terms and conditions of this Agreement, as well as by the terms
and conditions set forth in the applicable Schedule.  Each Schedule shall constitute an agreement separate and distinct from this Agreement and any other Schedule.  In the event of a conflict between the provisions of this Agreement and a Schedule, the
provisions of the Schedule shall govern.

	
2.
	
ASSIGNMENT OF PURCHASE DOCUMENTS.  Lessee shall execute and deliver to Lessor a writing acceptable to Lessor whereby Lessor is assigned all of Lessee's rights and interest in and to:  (a) the Equipment described
in the applicable Schedule and (b) any purchase order, contract or other documents (collectively, Purchase Documents) relating thereto that Lessee has entered into with the Seller (as specified in the applicable Schedule).  If Seller is not an
affiliate of Lessor, Lessee shall deliver to Lessor a writing acceptable to Lessor whereby Seller acknowledges, and provides any required consent to, such assignment.  If Lessee has not entered into any Purchase Document for the Equipment with Seller,
Lessee authorizes Lessor to act as Lessee's agent to issue a purchase order to Seller for the Equipment, and for associated matters, and such purchase order shall be subject to this Section 2 and all references in this Agreement to Purchase Documents
shall include such purchase order.  By executing the applicable Schedule, Lessee represents and warrants that Lessee either (y) has reviewed, approved and received a copy of the applicable Purchase Documents or (z) has been informed by Lessor
(i) of the identity of the Seller, (ii) that Lessee may have rights under the Purchase Documents and (iii) that Lessee may contact Seller for a description of such rights.

	
3.
	
DELIVERY; ACCEPTANCE.  Lessee shall cause the Equipment to be delivered to Lessee at the Equipment Location (as specified in the applicable Schedule) and Lessee shall accept the Equipment as soon as it is delivered
or, if acceptance criteria is specified in the applicable Purchase Documents, as soon as it has met such criteria.  Lessee shall evidence its acceptance of the Equipment and commencement of the lease with respect thereto by executing and delivering to
Lessor a commencement certificate (Commencement Certificate) in a form acceptable to a Lessor.  By executing and delivering a Commencement Certificate to Lessor, (a) Lessee represents and warrants that it has selected the Equipment and Seller
specified on the applicable Schedule and (b) Lessee shall irrevocably accept such Equipment under lease.

	
4.
	
PURCHASE OF EQUIPMENT.  Provided that no Event of Default (as defined in Section 19) exists, and no event has occurred and is continuing that with notice or the lapse of time or both would constitute an Event of
Default, Lessor shall be obligated to purchase the Equipment from Seller and to lease the Equipment to Lessee if (and only if) Lessor receives on or before the Latest Commencement Date (as specified in the applicable Schedule) the related Commencement
Certificate and Schedule (both executed by Lessee), and such other documents or assurances as Lessor may reasonably request.

	
5.
	
TERM.  The initial term of each Schedule (Initial Term) shall begin on the date specified as the Commencement Date on the Commencement Certificate with respect to such Schedule and shall continue for the period
specified in such Schedule.  Any renewal term of a Schedule (Renewal Term) shall begin on the expiration of, as applicable, the Initial Term or any preceding Renewal Term (collectively, Term).

	
6. 
	
RENT; ADVANCE RENT; LATE CHARGES.  Lessee shall pay Lessor the first Rental Payment (as specified in the applicable Schedule) for the Equipment on or before the Commencement Date of the applicable Schedule, and shall
pay Lessor the remaining periodic Rental Payments on or before the periodic payment dates specified in the applicable Schedule or, if periodic payment dates are not specified, on or before the corresponding day of each subsequent period during the Initial
Term of the applicable Schedule, regardless of

	
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whether Lessee has received notice that such Rental Payments are due.  Additionally, if pursuant to this Agreement or the applicable Schedule the term is extended or a renewal option exercised, Lessee shall also pay all
Rental Payments required with respect thereto.  All Rental Payments will be sent to Lessor's above-referenced address, or to such other address as specified by Lessor in writing. Lessee shall also pay Lessor Advance Rent (as specified in the applicable
Schedule) for the Equipment when it signs the applicable Schedule, and such Advance Rent shall be refunded without interest to Lessee only if Lessor declines to sign the applicable Schedule.  Advance Rent shall be credited to Lessee's first Rental Payment
under the applicable Schedule, and any excess Advance Rent shall be credited to Lessee's final Rental Payment(s).  Lessee agrees to pay Lessor a late charge of 5% of any Rental Payment (or other amount due hereunder) that is not paid within 10 days of its
due date, plus interest at the rate of 1-1/2% per month on any such amounts (or such lesser rate as is the maximum rate allowable under applicable law).  Also, in the event that more than one Schedule is entered into hereunder, the parties will use their
best efforts to implement a common billing date for all Schedules.

	
7.
	
ADJUSTMENTS.  The Total Purchase Price (as specified in the applicable Schedule) and Rental Payment set forth in each Schedule are estimates, and if the final invoice from Seller specifies a Total Purchase Price
(including taxes, delivery, installation and other charges) that is greater or less than such estimated Total Purchase Price, Lessee hereby authorizes Lessor to adjust the Total Purchase Price and Rental Payment on the applicable Schedule to reflect the
final invoice amount (Final Invoice Amount).  If Option B in the Schedule has been selected, Lessee also authorizes Lessor to adjust such purchase and renewal options to reflect the Final Invoice Amount.  However, if the Final Invoice Amount exceeds
the estimated Total Purchase Price by more than 10%, Lessor will notify Lessee and obtain Lessee's prior written approval of the aforementioned adjustments; provided, however that such written approval shall not be required when such adjustments are
caused by Equipment changes or system reconfigurations requested or caused by Lessee.  Additionally, if Lessor financed any down payment for the Equipment pursuant to an interim financing agreement (Financing Agreement) with Lessee, Lessor may also adjust
the Total Purchase Price and Rental Payment with respect to such Equipment to reflect any accrued interest that Lessee elects to finance.  All references in this Agreement and in any Schedule to Total Purchase Price and Rental Payment shall mean the
estimates thereof specified in the applicable Schedule, as adjusted pursuant to this Section 7.

	
8.
	
INSURANCE.  At its own expense, Lessee shall provide and maintain the following insurance:  (a) insurance against the loss or theft of or damage to the Equipment for the greater of the Stipulated Loss Value
(computed as described in the applicable Schedule) or full replacement value thereof, naming Lessor as a loss payee; and (b) public liability and third party property damage insurance, naming Lessor as an additional insured.  Such insurance shall be
in a form, amount and with companies reasonably satisfactory to Lessor, shall contain the insurer's agreement to give Lessor 30 days' prior written notice before cancellation or material change thereof, and shall be payable to Lessor regardless of any
act, omission or breach by Lessee.  Lessee shall deliver to Lessor the insurance policies or copies thereof or certificates of such insurance on or before the Commencement Date of the applicable Schedule, and at such other times as Lessor may reasonably
request.  If no Event of Default exists, and no event has occurred and is continuing that with notice or the lapse of time or both would constitute an Event of Default, the proceeds of any insurance required under clause (a) hereof that have been paid to
Lessor shall be applied against Lessee's obligation to Lessor under Section 13 of this Agreement.

	
9.
	
TAXES.  Lessee shall reimburse Lessor for (or pay directly, but only if instructed by Lessor) all taxes, fees, and assessments that may be imposed by any taxing authority on the Equipment, on its purchase, ownership,
delivery, possession, operation, rental, return to Lessor or its purchase by Lessee (collectively, Taxes); provided, however, that Lessee shall not be liable for any such Taxes (whether imposed by the United States of America or by any other domestic or
foreign taxing authority) imposed or measured by Lessor's net income or tax preference items.  Lessee's obligation includes, but is not limited to, the obligation to pay all license and registration fees and all sales, use, personal property and other
taxes and governmental charges, together with any penalties, fines and interest thereon, that may be imposed during the Term of the applicable Schedule.  Lessee is liable for these Taxes whether they are imposed upon Lessor, Lessee, the Equipment, this
Agreement, the applicable Schedule or any Financing Agreement.  If Lessee is required by law or administrative practice to make any refund or return with respect to such Taxes, Lessee shall promptly advise Lessor thereof in writing and shall cooperate
with Lessor to ensure that such reports are properly filed and accurately reflect Lessor's interest in the Equipment.  Lessor has no obligation to contest any such Taxes, however Lessee may do so provided that:  (a) Lessee does so in its own name and
at its own expense; (b) the contest does not and will not result in any lien attaching to any Equipment or otherwise jeopardize Lessor's right to any Equipment; and 

	
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(c) Lessee indemnifies Lessor for all expenses (including legal fees and costs), liabilities and losses that Lessor incurs as a result of any such contest.

	
10.
	
REPAIRS; USE; LOCATION; LABELS.  Lessee shall:  (a) at its own expense, keep the Equipment in good repair, condition and working order and maintained in accordance with the manufacturer's recommended engineering
and maintenance standards; (b) use the Equipment lawfully and exclusively in connection with its business operations and for the purpose for which the Equipment was designed and intended; and (c) without Lessor's prior written consent, not move
the Equipment from the Equipment Location.  If Lessor supplies Lessee with the labels stating that the Equipment is owned by Lessor, Lessee shall affix such labels to the Equipment pursuant to Lessor's instructions.

	
11.
	
MAINTENANCE; INSPECTION; ALTERATIONS.  At its own expense, Lessee shall:  (a) enter into and maintain a maintenance agreement for the Equipment with the manufacturer or other party acceptable to Lessor; (b) 
maintain the Equipment in the same condition as when delivered, subject only to ordinary wear and tear, and in good operating order and appearance; (c) make all alterations or additions to the Equipment that may be required or supplied by the Seller
or legally necessary; and (d) make no other alterations or additions to the Equipment (except for alterations or additions that will not impair the value or performance of the Equipment and that are readily removable without damage to the Equipment).
 Any modifications, alterations or additions to the Equipment (except as permitted by Section 11(d) above) shall become Lessor's property and shall also be deemed to be Equipment.  Upon request, Lessor, or any party designated by Lessor, shall have the
right to inspect the Equipment and Lessee's applicable maintenance agreement and records at any reasonable time.

	
12.
	
PERSONAL PROPERTY; LIENS AND ENCUMBRANCES; TITLE.  The Equipment shall at all times remain personal property, notwithstanding that the Equipment, or any part thereof, may be (or becomes) affixed or attached to real
property or any improvements thereon. Except for the interest of Lessor, Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances of any nature whatsoever.  Except as expressly set forth in this Agreement, the Equipment shall
at all times remain the property of Lessor and Lessee shall have no right, title or interest therein.

	
13.
	
RISK OF LOSS.  As between Lessor and Lessee, Lessee shall bear the entire risk of loss, theft, destruction or damage to the Equipment from any cause whatsoever or requisition of the Equipment by any governmental
entity or the taking of title to the Equipment by eminent domain or otherwise (collectively, Loss).  Lessee shall advise Lessor in writing within 10 days of any such Loss.  Except as provided below, no such Loss shall relieve Lessee of the obligation to
pay Lessor Rental Payments and all other amounts owed hereunder.  In the event of any such Loss, Lessor, at its option, may: (a) if the Loss has not materially impaired the Equipment (in Lessor's reasonable judgment), require Lessee, upon Lessor's
demand, to place the Equipment in good condition and repair reasonably satisfactory to Lessor; or (b) if the Loss has materially impaired the Equipment (in Lessor's reasonable judgment), require Lessee, upon Lessor's demand, to pay Lessor its
anticipated return (Lessor's Return), which shall consist of the following amounts:  (i) the Rental Payments (and other amounts) then due and owing under the applicable Schedule; plus (ii) the Stipulated Loss Value (computed as described in the
applicable Schedule) of the Equipment; plus (iii) all other amounts that become due and owing under the applicable Schedule, but only to the extent such amounts are not included in the moneys paid to Lessor pursuant to clauses (i) and (ii) above.
Upon Lessor's full receipt of such Lessor's Return:  (y) the applicable Schedule shall terminate, and except as provided in Section 30, Lessee shall be relieved of all obligations under the applicable Schedule; and (z) Lessor shall transfer all
of its interest in the Equipment to Lessee "AS IS, WHERE IS," and without any warranty, express or implied from lessor, other than the absence of any liens or claims by, through, or under Lessor.

	
14.
	
NON-CANCELABLE NET LEASE.  ALL LEASES HEREUNDER SHALL BE NON-CANCELABLE NET LEASES, AND LESSEE AGREES THAT IT HAS AN UNCONDITIONAL OBLIGATION TO PAY ALL RENTAL PAYMENTS AND OTHER AMOUNTS WHEN DUE.  LESSEE IS NOT
ENTITLED TO ABATE OR REDUCE RENTAL PAYMENTS OR ANY OTHER AMOUNTS DUE, OR TO SET OFF ANY CHARGES AGAINST THOSE AMOUNTS.  LESSEE IS NOT ENTITLED TO RECOUPMENTS, CROSS CLAIMS, COUNTERCLAIMS OR ANY OTHER DEFENSES TO ANY RENTAL PAYMENTS OR OTHER AMOUNTS DUE
HEREUNDER, WHETHER THOSE DEFENSES ARISE OUT OF CLAIMS BY LESSEE AGAINST LESSOR, SELLER, THIS AGREEMENT, ANY SCHEDULE OR OTHERWISE.  NEITHER DEFECTS IN EQUIPMENT, DAMAGE TO IT, NOR ITS LOSS, DESTRUCTION OR LATE DELIVERY SHALL TERMINATE THIS AGREEMENT OR
ANY SCHEDULE, OR AFFECT LESSEE'S 

	
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OBLIGATIONS HEREUNDER, UNLESS LESSEE'S OBLIGATION TO PAY RENTAL PAYMENTS AND OTHER AMOUNTS HAS BEEN TERMINATED PURSUANT TO THE EXPRESS TERMS OF THIS AGREEMENT, ALL RENTAL PAYMENTS AND OTHER AMOUNTS SHALL CONTINUE TO BE DUE
AND PAYABLE HEREUNDER.

	
15.
	
LESSOR DISCLAIMERS; LIMITATION OF REMEDIES.  IT IS SPECIFICALLY UNDERSTOOD AND AGREED THAT:  (A) LESSOR SHALL NOT BE DEEMED TO HAVE MADE ANY REPRESENTATION, WARRANTY OR PROMISE MADE BY SELLER, NEITHER SELLER NOR
LESSOR SHALL ACT AS, OR BE DEEMED TO BE, AN AGENT OF THE OTHER, AND LESSOR SHALL NOT BE BOUND BY, OR LIABLE FOR, ANY REPRESENTATION OR PROMISE MADE BY SELLER (EVEN IF LESSOR IS AFFILIATED WITH SELLER); (B) LESSOR SHALL NOT BE LIABLE FOR ANY FAILURE
OF ANY EQUIPMENT OR ANY DELAY IN ITS DELIVERY OR INSTALLATION; (C) LESSOR SHALL NOT BE LIABLE FOR ANY BREACH OF ANY WARRANTY THAT SELLER MAY HAVE MADE; (D) LESSEE HAS SELECTED ALL EQUIPMENT WITHOUT LESSOR'S ASSISTANCE; (E) LESSOR IS NOT A
MANUFACTURER OF ANY EQUIPMENT; AND (F) LESSOR HAS NOT MADE AND DOES NOT NOW MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE DESIGN, COMPLIANCE WITH SPECIFICATIONS, OPERATION, OR CONDITION OF ANY EQUIPMENT (OR ANY PART
THEREOF), THE MERCHANTABILITY OR FITNESS OF EQUIPMENT FOR A PARTICULAR PURPOSE, OR ISSUES REGARDING PATENT INFRINGEMENT, TITLE AND THE LIKE.  IT IS FURTHER AGREED THAT LESSOR SHALL HAVE NO LIABILITY TO LESSEE, LESSEE'S CUSTOMERS, OR ANY THIRD PARTIES FOR
ANY DIRECT, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT OR ANY SCHEDULE OR CONCERNING ANY EQUIPMENT, OR FOR ANY DAMAGES BASED ON STRICT OR ABSOLUTE TORT LIABILITY OR LESSOR'S NEGLIGENCE; PROVIDED, HOWEVER, THAT NOTHING IN THIS
AGREEMENT SHALL DEPRIVE LESSEE OF ANY RIGHTS IT MAY HAVE AGAINST ANY PERSON OTHER THAN LESSOR.  LESSEE SHALL LOOK SOLELY TO SELLER FOR ANY AND ALL CLAIMS AND WARRANTIES RELATING TO THE EQUIPMENT.  LESSOR HEREBY ASSIGNS TO LESSEE FOR THE TERM OF THE
APPLICABLE SCHEDULE THE RIGHT TO ENFORCE, PROVIDED NO EVENT OF DEFAULT THEN EXISTS UNDER THIS AGREEMENT AND SUCH ENFORCEMENT IS PURSUED IN LESSEE'S NAME, ANY REPRESENTATIONS, WARRANTIES AND AGREEMENTS MADE BY SELLER PURSUANT TO THE PURCHASE DOCUMENTS, AND
LESSEE MAY RETAIN ANY RECOVERY RESULTING FROM ANY SUCH ENFORCEMENT EFFORTS TO THE EXTENT PERMITTED BY APPLICABLE LAW, LESSEE WAIVES ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE BY ARTICLE 2A OF THE UCC AND ANY RIGHTS NOW OR HEREINAFTER
CONFERRED BY STATUTE OR OTHERWISE THAT MAY LIMIT OR MODIFY LESSOR'S RIGHTS AS DESCRIBED IN THIS SECTION OR OTHER SECTIONS OF THIS AGREEMENT.

	
16.
	
LESSEE WARRANTIES.  Lessee represents, warrants and covenants to Lessor that: (a) unless it is an individual, Lessee is duly organized, validly existing and in good standing under applicable law; (b) Lessee
has the power and authority to enter into this Agreement, all Schedules and all other related instruments or documents hereunder (collectively, Fundamental Agreements); (c) such Fundamental Agreements are enforceable against Lessee in accordance with
their terms and do not violate or create a default under any instrument or agreement binding on Lessee; (d) there are no pending or threatened actions or proceedings before any court or administrative agency that could have a material adverse effect
on Lessee or any Fundamental Agreement, unless such actions are disclosed to Lessor and consent to in writing by Lessor; (e) Lessee shall comply in all material respects with all Federal, state and municipal laws and regulations the violation of
which could have a material adverse effect upon the Equipment or Lessee's performance of its obligations under any Fundamental Agreement; (f) Lessee shall obtain all governmental approvals necessary for it to enter into and perform each Fundamental
Agreement; (g) each Fundamental Agreement shall be effective against all creditors of Lessee under applicable law, including fraudulent conveyance and bulk transfer laws, and shall raise no presumption of fraud; (h) financial statements and
other related information furnished by Lessee shall be prepared in accordance with generally accepted accounting principles and shall present Lessee's financial position as of the dates given on such statements; (i) Lessee shall furnish Lessor with
its certified financial statements, opinions of counsel, resolutions, and such other information and documents as Lessor may reasonably request; (j) ALL EQUIPMENT IS LEASED FOR BUSINESS PURPOSES ONLY, AND NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES; and (k) all Equipment is tangible personal property and shall not become a fixture or real property under Lessee's use thereof.  Lessee shall be deemed to have reaffirmed the foregoing warranties each time it executes any Fundamental
Agreement.

	
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17.
	
GENERAL WARRANTY.  Lessee shall indemnify, hold harmless, and, if so requested by Lessor, defend Lessor against all claims (Claims) directly or indirectly arising out of or connected with the Equipment or any
Fundamental Agreement.  Claims refer to all losses, liabilities, damages, penalties, expenses (including legal fees and costs, claims, actions, and suits, whether in contract or in tort, whether caused by Lessor's negligence or otherwise, and whether
based on a theory of the liability of Lessor or otherwise, and includes, but is not limited to, matters regarding:  (a) the selection, manufacture, purchase, acceptance, rejection, ownership, delivery, lease, possession, maintenance, use, condition,
return or operation o the Equipment; (b) any latent defects or other defects in any Equipment, whether or not discoverable by Lessor or by Lessee; (c) any patent, trademark, or copyright infringement; and (d) the condition of any Equipment
arising or existing during Lessee's use.

	
18.
	
SURRENDER; EXTENSION OF TERM.  Unless Lessee purchases the Equipment or renews the Term pursuant to the applicable Schedule, or acquires the Equipment pursuant to Section 13 hereof, Lessee shall, at its expense,
deinstall, inspect, test, and properly pack the Equipment, and return the Equipment at the expiration of the Term, free of all liens and rights of others, by delivering it on board such common carrier as Lessor may specify with freight prepaid to any
destination within the United States of America specified by Lessor.  If Lessor so requests, Lessor and its agents shall have the right to enter upon any premises where Equipment may be located to perform any of Lessee's tasks noted above in this
Section 18, and Lessee shall reimburse Lessor for all costs and expenses Lessor incurs in fulfilling such tasks.  Lessee agrees that the Equipment, when returned to Lessor, shall be in the same condition as when delivered to Lessee, reasonable wear
and tear excepted, and certified as being eligible for Seller's or the manufacturer's generally available maintenance contract at then prevailing rates, without Lessor incurring any expense to repair, rehabilitate or certify such Equipment (Lessee shall
be liable for all costs and expenses Lessor incurs to place the Equipment in such condition.  If requested by Lessor, Lessee, at its expense, shall store the Equipment on its premises for a reasonable period, during which period the Equipment shall be
subject to all of the terms and conditions hereof, except for the obligation to make Rental Payments.  In all instances where Lessee is returning Equipment to Lessor, Lessee shall give Lessor written notice thereof in accordance with the terms of the
applicable Schedule.  If Lessee fails to provide the aforementioned notice or return the Equipment to Lessor in the time and manner provided above, the Term shall be extended in accordance with the terms of the applicable Schedule.  If any Schedule is
extended pursuant to the preceding sentence, Lessee shall continue to pay the higher of the periodic Rental Payments in effect prior to the expiration of the ten existing term of the applicable Schedule (whether it be the Initial Term or any Renewal Term
(Applicable Term)) or such other periodic rental payment amount as is specified for such extension period in the Schedule, and all other provisions of this Agreement shall continue to apply.

	
19.
	
EVENTS OF DEFAULT.  Any of the following shall constitute an Event of Default under this Agreement and all Schedules:  (a) Lessee fails to pay any Rental Payment or any other amount payable to Lessor hereunder
within 10 days after its due date; or (b) Lessee fails to perform or observe any other representation, warranty, covenant, condition or agreement to be performed or observed by Lessee hereunder or in any other agreement with Lessor, or in any
agreement with any other person that in Lessor's sole opinion is a material agreement, and Lessee fails to cure any such breach within 10 days after notice thereof; or (c) any representation or warranty made by Lessee hereunder, or in any other
instrument provided to Lessor by Lessee, proves to be incorrect in any material respect when made; or (d) Lessee makes an assignment for the benefit of creditors, whether voluntary or involuntary; or (e) a proceeding under any bankruptcy,
reorganization, arrangement of debts, insolvency or receivership law is filed by or against Lessee or Lessee takes any action to authorize any of the foregoing matters; or (f) Lessee becomes insolvent or fails generally to pay its debts as they
become due, the Equipment is levied against, seized or attached, the Lessee seeks to effectuate a bulk sale of Lessee's inventory or assets; or (g) Lessee voluntarily or involuntarily dissolves or is dissolved, or terminates or is terminated; or
(h) any guarantor dies or revokes a guaranty provided to Lessor under this Agreement; or (i) any guarantor under this Agreement is the subject of an event listed in clauses (b) through (g) above; or (j) any letter of credit
required pursuant to any Schedule is breached, canceled, terminated or not renewed during the Term of any such Schedule.

	
20.
	
REMEDIES.  If an Event of Default occurs, Lessor may, in its sole discretion, exercise one or more of the following remedies:  (a) terminate this Agreement or any and all Schedules; or (b) take possession
of, or render unusable, any Equipment wherever the Equipment may be located, without demand or notice, without any court order or other process of law and without liability to Lessee for any damages occasioned by such action, and no such action shall
constitute a termination of any Schedule; or (c) require Lessee to deliver the Equipment at a 

	
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location designated by Lessor; or (d) declare the Lessor's Return (as defined in Section 13 hereof and calculated by Lessor as of the date of the Event of Default) for each applicable Schedule due and payable as
liquidated damages for loss of a bargain and not as a penalty and in lieu of any further Rental Payments under the applicable Schedule; or (e) proceed by court action to enforce performance by Lessee of any Schedule and/or to recover all damages and
expenses incurred by Lessor by reason of any Event of Default; or (f) terminate any other agreement that Lessor may have with Lessee; or (g) exercise any other right or remedy available to Lessor at law or in equity.  Also, Lessee shall pay
Lessor all costs and expenses (including legal fees and cost and fees of collection agencies) incurred by Lessor in enforcing any of the terms, conditions or provisions of this Agreement.  Upon repossession or surrender of any Equipment, Lessor shall
lease, sell or otherwise dispose of the Equipment in a commercially reasonable manner, with or without notice and at public or private sale, and apply the net proceeds thereof (after deducting all expenses (including legal fees and costs) incurred in
connection therewith) to the amount owed to Lessor hereunder; provided, however, that Lessee shall remain liable to Lessor for any deficiency that remains after any sale or lease of such Equipment.  Lessee agrees that with respect to any notice of a sale
required by law to be given, 10 days' notice shall constitute reasonable notice.  These remedies are cumulative of every other right or remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise, and may be enforced
concurrently therewith or from time to time.

	
21.
	
LESSOR'S PERFORMANCE OF LESSEE'S OBLIGATIONS.  If Lessee fails to perform any of its obligations hereunder, Lessor may perform any act or make any payment that Lessor deems reasonably necessary for the maintenance
and preservation of the Equipment and Lessor's interests therein; provided, however, that the performance of any act or payment by Lessor shall not be deemed a waiver of, or release Lessee from, the obligation at issue.  All sums so paid by Lessor,
together with expenses (including legal fees and costs) incurred by Lessor in connection therewith, shall be paid to Lessor by Lessee immediately upon demand.

	
22.
	
FINANCING OF ADDITIONS.  If, under any Schedule, Lessee intends to make any addition to the Equipment, Lessee shall, in writing, request Lessor to finance the costs of such addition.  Lessee shall provide Lessor with
the terms under which it hopes to obtain the financing, and upon receiving such a request Lessor shall determine, in its sole discretion, whether to provide such financing. If Lessor does not, within 20 days after receiving Lessee's request, offer to
finance the addition upon the terms requested by Lessee, Lessee may obtain offers from third parties for financing the addition, and Lessee shall notify Lessor of the details of any third party financing offer Lessee would like to accept (Third Party
Offer). If Lessor has not made a financing offer to Lessee on terms substantially similar to the Third Party Offer within 20 days of receiving Lessee's notice, Lessee may accept the Third Party Offer unless:  (a) the aggregate cost to Lessee of
obtaining financing from the Third Party Offer is greater than the aggregate cost under Lessor's financing offer; (b) the Third Party Offer would create a security interest in, or a lien on, the Equipment; or (c) the addition is not permitted
under Section 11(d) hereof.

	
23.
	
ASSIGNMENT BY LESSOR.  Lessor shall have the unqualified right to assign, pledge, transfer, mortgage or otherwise convey any of its interests hereunder or in any Schedule or any Equipment, in whole or in part,
without notice to, or consent of, Lessee.  If any Schedule is assigned, Lessee shall:  (a) unless otherwise specified by the Lessor and the assignee (Assignee) specified by Lessor, pay all amounts due under the applicable Schedule to such Assignee,
notwithstanding any defense, setoff or counterclaim whatsoever that Lessee may have against Lessor or Assignee; (b) not permit the applicable Schedule to be amended or the terms thereof waived without the prior written consent of the Assignee;
(c) not require the Assignee to perform any obligations of Lessor, other than those that are expressly assumed in writing by such Assignee; and (d) execute such acknowledgments thereto as may be requested by Lessor.  It is further agreed that:
(x) each Assignee shall be entitled to all of Lessor's rights, powers and privileges under the applicable Schedule, to the extent assigned; (y) any Assignee may reassign its rights and interest under the applicable Schedule with the same force
and effect as the assignment described herein; and (z) any payments received by the Assignee from Lessee with respect to the assigned portion of the Schedule shall, to the extent thereof, discharge the obligations of Lessee to Lessor with respect to
the assigned portion of the Schedule.  LESSEE ACKNOWLEDGES THAT ANY ASSIGNMENT OR TRANSFER BY LESSOR OR ANY ASSIGNEE SHALL NOT MATERIALLY CHANGE LESSEE'S OBLIGATIONS UNDER THE ASSIGNED SCHEDULE.

	
24.
	
CAPTIONS; COUNTERPARTS; INTEGRATION; ENTIRE AGREEMENT.  The captions contained in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.  Only one counterpart of the
Schedule shall be marked "Original" (Original), and all other counterparts thereof shall be 

	
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marked as, and shall be, duplicates.  To the extent that any Schedule constitutes chattel paper (as such term is defined in the Uniform Commercial Code in effect in any applicable jurisdiction), no security interest in such
Schedule may be created through the transfer or possession of any counterpart other than the Original.  Lessee understands and agrees that any affiliate or subsidiary of AT&T Capital Corporation may, as lessor, execute Schedules under this Agreement,
in which event the terms and conditions of the applicable Schedule and this Agreement as it relates to the lessor under such Schedule shall be binding upon and shall inure to the benefit of such entity executing such Schedule as lessor, as well as any
successors or assigns of such entity.  This Agreement and all other Fundamental Agreements executed by both Lessor and Lessee constitute the entire agreement between Lessor and Lessee relating to the leasing of the Equipment, and supersede all prior
agreements relating thereto, whether written or oral, and may not be amended or modified except in a writing signed by the parties hereto.

	
25.
	
CHOICE OF LAW.   EACH LEASE UNDER THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAW PROVISIONS) OF THE STATE OF NEW JERSEY (STATE).  If any provision of this Agreement or such
Schedule shall be prohibited by or invalid under that law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement or such
Schedule.  Lessor and Lessee consent to the jurisdiction of any local, state or Federal court located within the State, and waive any objection relating to improper venue or forum non conveniens to the conduct of any proceeding in any such court.

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BY EXECUTION HEREOF, THE UNDERSIGNED HEREBY CERTIFIES THAT HE/SHE HAS READ THIS AGREEMENT, INCLUDING THE REVERSE SIDE HEREOF, AND THAT HE/SHE IS DULY AUTHORIZED TO EXECUTE THIS AGREEMENT

	
NCR Credit Corporation                                    

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Lessee       Independent Bankshares, Inc.              

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Signature     /s/ Karen S. Folkerth

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Signature         /s/ Bryan Stephenson                     

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Name (Print) Karen S. Flolkerth                      

------------------------------------------------------------------
	
Name (Print)      Bryan Stephenson                       

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

	
Title              Agent                   

------------------------------------------------------------------
	
Title             President and CEO              

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

	
Date              2/8/93                        
         

------------------------------------------------------------------
	
Date             12/24/92                     

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

<PAGE>

AMENDMENT TO MASTER EQUIPMENT LEASE AGREEMENT

	
LESSEE:

INDEPENDENT BANKSHARES, INC.
	
LESSOR:

NCR CREDIT CORPORATION

	
Street Address:

500 Chestnut, P.O. Box 3296
	
9797 Springboro Pike

Miamisburg, Ohio  45342

	
Abilene, TX  79604
	
Lease Number:

        Lessor and Lessee hereby amend, as specified below, the Master Equipment Lease Agreement (Agreement) identified by the Lease Number specified above.  Capitalized terms used in this
Amendment which are not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

        Lessee and Lessor intend that First State Bank, N.A. (Abilene), The First National Bank in Stamford, and First State Bank, N.A. (Odessa) become a party to the Agreement, and First State
Bank, N.A. (Abilene), The First National Bank in Stamford, and First State Bank, N.A. (Odessa) desires to become a party thereto.

        1.     Section 1. The following two sentences shall be added to the end of paragraph one of the Agreement:  "The rights and obligations of Independent Bankshares,
Inc. as Lessee under this Agreement shall be available to the wholly owned subsidiaries of Lessee which have executed this Agreement below ("Subsidiaries").  Lessee or each of Lessee's Subsidiaries which is a party to this Agreement may, as Lessee,
execute Schedules which incorporate this Agreement in which event the terms and conditions of the applicable Schedule which incorporate this Agreement in as it relates thereto, shall be binding upon and inure to the benefit of such Subsidiary, provided,
however, all parties executing this Agreement shall be and are jointly and severally liable for the payment and performance of the obligations under all Schedules incorporating this Agreement by reference including, without limitation, Schedules executed
by Independent Bankshares Inc. and/or such Subsidiaries.  The act or notice from, or signature of any one or more of the parties hereto shall be binding on all of them with respect to the Agreement and each Schedule, including but not limited to, any
renewal or extension of each Schedule."

        2.     Section 18, in the first sentence replace "to any destination within the United States of America specified by Lessor." with "to the nearest NCR Credit
Corporation warehouse (which currently is in Santa Fe Springs, California)."

        3.     Section 18, in the fourth sentence replace "for a reasonable period" with "for thirty (30) days".

        4.     Section 19, in clause (b) replace "within 10 days' with "within 30 days".

<PAGE>

        5.     Section 25, in the last sentence replace "of any local, state or Federal court located within the State, "with any Federal court located within the State
(or if not available, any local or state court within the State),".

Lessor and Lessee hereby make this Amendment an integral part of the Agreement.

	
INDEPENDENT BANKSHARES, INC.
	
NCR CREDIT CORPORATION

	
By:          /s/                              
      

     (Lessee Authorized Signature)
	
By:         /s/ Karen S. Folkerth                

        (Lessor Authorized Signature)

	
                                         
             

     (Type/Print Name)
	
             Karen S. Folkerth                       

        (Type/Print Name)

	
                                         
             

     (Title)
	
            Agent                            
               

        (Title)

	
                                         
             

    (Date)
	
                                         
                      

        (Date)

	 	 
	
FIRST STATE BANK, N.A. (ABILENE)
	
FIRST STATE BANK, N.A. (ODESSA)
	 
	
By:    /s/                                    
       

      (Lessee Authorized Signature)
	
By:       /s/ Michael D. Jarrett                  

     (Lessor Authorized Signature)

	
                                         
              

      (Type/Print Name)
	
            Michael D. Jarrett                       

     (Type/Print Name)

	
                                         
              

      (Title)
	
          President and CEO                        

     (Title)

	
                                         
              

      (Date)
	
                                         
                        

     (Date)

<PAGE>

	
FIRST NATIONAL BANK IN STAMFORD

	
By:            /s/                          
                        

    (Lessee Authorized Signature)

	
                                       
                                

    (Type/Print Name) 

	
                                       
                                

    (Title)

	
                                       
                               

    (Date)

 

[Credit Corp. logo]      Commencement Certificate

Schedule Number SW-2228      Master Equipment Lease Number 

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

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

Leased to      Name      First State Bank, N.A.

(Lessee)       -------------------------------------------------

               Address  P.O. Box 6429   Phone  (915) 691-0000

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

               City      Abilene   State     Texas   Zip   79608

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

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

Billing Address     Complete this section if billing address is

                    different from above address

               Name      Same

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

               Address                  Phone

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

               City                State          Zip

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

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

Equipment           This Certificate covers all equipment,

               software,

Description    and services number(s) below and incorporated

               herein listed in the Purchase Order(s) identified

               by reference.

               Reference Number(s) 

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

               Description 

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

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

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

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

Special Terms

and Riders     -------------------------------------------------

(if Applicable)

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

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

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

Commencement   -------------------------------------------------

Date 

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

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

Payment        Capitalized terms used herein which are not

Commencement   otherwise defined herein shall have the meaning

Schedule            ascribed to them in the Schedule Master

               Equipment Lease Agreement between the parties

               hereto (the Agreement), identified by the Lease

               Number specified above. In accordance with the

               terms and provisions of this Agreement and the

               Schedule identified by the Schedule Number

               specified above, the Lessee hereby certifies and

               states that: (a) all Equipment listed in the above-

               referenced Schedule, as amended through the date

               hereof (Related Equipment), has been delivered and

               fully installed; (b) Lessee has inspected the

               Related Equipment, and all testing as it deems

               necessary has been performed by Lessee, the

               manufacturer or Seller; (c) Lessee accepts the

               Related Equipment for all purposes of the

               Agreement, the Purchase Documents and all related

               documents; (d) on the date hereof the Related

               Equipment has Become for the first time

               operational and available to be placed in service

               for its specifically assigned function; (e) any

               insurance policies required by Section 8 of the

               Agreement have been obtained and are in full force

               and effect; and (f) the Related Equipment is

               located at the Equipment Location specified in the

               Schedule.

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

     Lessee         First State Bank, NA

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

                    Abilene, Texas 79608

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

     Signature      /s/  Jim Fitzhugh

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

     Name (Print)   Jim Fitzhugh

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

     Title          President

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

     Date           1-6-93

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

 

NCR Credit Corporation

A Subsidiary of AT&T Capital Corporation

 

<PAGE>

[Credit Corp. logo] Schedule

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

Schedule Number          Master Equipment Lease Number 

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

Leased to      Name      First State Bank, N.A.

(Lessee)       -------------------------------------------------

               Address   P.O. Box 6429     Phone  (915) 691-0000

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

               City Abilene   State  Texas        Zip  79608

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

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

Equipment

Location       Name      First State Bank, N.A.   Central Branch

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

               Address   548 Oak Street    Phone  (915) 672-2902

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

               City Abilene   State  Texas           Zip   79602

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

Equipment      This Schedule covers all equipment listed in the

Description    purchase order(s) identified by reference

               number(s) below and incorporated herein. This

               Schedule shall supersede and replace as to Lessor

               all preprinted terms on said purchase order(s).

               Reference Number(s) 

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

               Description 

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

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

Payment   Length of Initial Term 

Schedule  Schedule  Number of Payments  __

          Rental Payment $____________plus sales tax

          Advance Rent   $_________

          Rental Payment Period [X] Monthly  Quarterly  Other

          Latest Commencement Date February 1, 1993

          Fair Market Value (Option)    [X]

          Fixed Price Purchase (Option B)

               Fixed Price Purchase $

               Fixed Price Renewal $

          Cycle     [  ] Advance   [x]  Arrears

          Total Purchase Price  $_____________

          Special Terms and Riders

               Amendment to Master Equipment Lease Agreement

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

Acknowledgment THIS SCHEDULE SHALL BE COVERED BY THE TERMS AND

               CONDITIONS OF THE MASTER EQUIPMENT LEASE AGREEMENT

               REFERENCED BY THE LEASE NUMBER SPECIFIED

               ABOVE(AGREEMENT) AND THE TERMS AND CONDITIONS SET

               FORTH ON THE FRONT AND BACK OF THIS SCHEDULE,

               PURSUANT TO SUCH TERMS AND CONDITIONS, WHICH

               LESSEE ACKNOWLEDGES THAT IT HAS READ AND

               UNDERSTANDS, LESSEE AGREES TO LEASE FROM NCR

               CREDIT CORPORATION (LESSOR) AND LESSOR AGREES TO

               LEASE TO LESSEE THE ABOVE REFERENCED EQUIPMENT IT

               IS FURTHER UNDERSTOOD AND AGREED THAT THE TERMS

               AND CONDITIONS ON THE BACK OF THIS SCHEDULE MAY BE

               DIFFERENT FROM THE TERMS AND CONDITIONS OF PRIOR

               SCHEDULES.  THIS SCHEDULE, THE AGREEMENT AND ALL

               OTHER FUNDAMENTAL AGREEMENTS (AS DEFINED IN THE

               AGREEMENT) EXECUTED BYBOTH LESSOR AND LESSEE

               CONSTITUTE THE ENTIRE AGREEMENTBETWEEN LESSOR AND

               LESSEE RELATING TO THE LEASING OFTHE RELATED

               EQUIPMENT AND SUPERSEDE ALL PRIOR AGREEMENTS

               RELATING THERETO, WHETHER WRITTEN OR ORAL AND MAY

               NOT BE AMENDED OR MODIFIED EXCEPT IN A

               WRITINGSIGNED BY THE PARTIES HERETO.

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

BY EXECUTION HEREOF, THE UNDERSIGNED HEREBY CERTIFIES THAT HE/SHE

HAS READ THIS AGREEMENT, INCLUDING THE REVERSE SIDE HEREOF, AND

THAT HE/SHE IS DULY AUTHORIZED TO EXECUTE THIS AGREEMENT.

NCR Credit Corporation             Lessee  First State Bank, N.A.

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

                                   Abilene, Texas 79608

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

Signature /s/ Karen S. Folkerth    Signature /s/  Jim Fitzhugh

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

Name (Print) Karen S. Folkerth     Name (Print)   Jim Fitzhugh

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

Title          Agent               Title     President

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

Date 2-8-93                        Date 1-6-93

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

 

 

NCR Credit Corporation                     NCR Credit Corporation

A Subsidiary of AT&T Capital Corporation Commencement Certificate

                                                      F-8854 0992

 

<PAGE>

The terms and conditions set forth below shall apply to Options A

and B on the front of this Schedule; provided, however, that

Lessee may select only one of the two aforementioned options.

Capitalized terms used in this Schedule that are not otherwise

defined herein shall have the meanings ascribed to them in the

Master Equipment Lease Agreement (Agreement) identified by the

Lease Number specified on the front of this Schedule.  With

respect to the Equipment described on front of this Schedule, the

terms and conditions of this Schedule shall prevail over any

conflicting or inconsistent terms and conditions in the Agreement

and/or any amendments thereto entered into prior to the execution

of this Schedule.

     1.  OPTION A - FAIR MARKET VALUE PURCHASE AND RENEWAL

OPTIONS.  (a) if Option A has been selected, no Event of Default

exists, no event has occurred and is continuing that with notice

or the lapse of time or both would constitute an Event of

Default, and Lessee delivers to Lessor an irrevocable written

election notice at least 90 days prior to the expiration of the

Applicable Term, Lessee shall have the following purchase and

renewal options: (i) Lessee may purchase all of the Equipment at

the end of the Applicable Term at Fair Market Value (as defined

below); or (ii) Lessee may renew this Schedule for a Renewal Term

of not less than 12 months to be agreed upon by Lessor and Lessee

at Fair Rental Value (as defined below); provided, however, that

the foregoing renewal option may not be exercised if Lessor

reasonably determines that there has been a material adverse

change in Lessee's business or financial condition since the

Commencement Date; and provided further, however, that if Lessee

decides not to purchase the Equipment or renew this Schedule at

the end of the Applicable Term, it shall provide Lessor with

irrevocable written notice thereof at least 90 days prior to the

expiration of the Applicable Term and return the Equipment to

Lessor in accordance with Section 18 of the Agreement.

(b)  If Lessee elects to purchase the Equipment, it shall pay

Lessor the Fair Market Value amount prior to the expiration of

the Applicable Term, and Lessee shall make all other payments

required hereunder during the remaining Term of this Schedule.

If Lessee elects to renew this Schedule, Lessee and Lessor shall

enter into a supplement to this Schedule to confirm the

applicable Fair Rental Value amount and the length of the

applicable Renewal Term.  Throughout the Renewal Term, Lessee

shall pay Lessor the Fair Rental Value on the same date each

period that the Rental Payment was due during the Initial Term.

(c)  Should Lessee fail to: (i) provide Lessor with the 90 day

notice required above; or (ii) pay Lessor the Fair Market Value

amount as specified above; or (iii) return the Equipment to

Lessor in accordance with Section 18 of the Agreement, the

Applicable Term shall be extended for successive 90 day periods

until Lessee returns the Equipment to Lessor in accordance with

Section 18 of the Agreement or Lessor terminates this Schedule by

10 days written notice to Lessee.  In the event this Schedule is

extended pursuant to the preceding sentence, Lessee shall

continue to pay Lessor the periodic Rental Payments in effect

prior to the expiration of the Applicable Term, and all other

provisions of the Agreement and this Schedule (including Lessee's

purchase and renewal options) shall continue to apply.

(d)  Fair Rental Value and Fair Market Value for the Equipment

shall be determined by agreement of Lessor and Lessee, or, if

Lessor and Lessee are unable to reach agreement, by the average

of three quotes of retail prices, one obtained by Lessor, one by

Lessee and one by mutual agreement of Lessor and Lessee.  Fair

Rental Value means the periodic amount that would be payable for

the Equipment, or similar equipment, in an arm's length

transaction between an informed and willing Lessee and an

informed and willing Lessor, neither under compulsion to lease.

Fair Market Value means the total price that would be paid for

the Equipment, or similar equipment, in an arm's length

transaction between an informed and willing buyer (other than a

used equipment dealer) under no compulsion to buy and an informed

and willing seller under no compulsion to sell.  In determining

Fair Rental Value or Fair Market Value, the costs of removing the

Equipment from the Equipment Location and moving it to a new

location shall not be deducted from its value.

(e)  If Lessee elects to purchase the Equipment and has

completely fulfilled the terms and conditions of the Agreement

and this Section 1, then on the last day of the Applicable Term:

(i) this Schedule shall terminate and, except as provided in

Section 30 of the Agreement, Lessee shall be relieved of all

obligations under this Schedule; and (ii) Lessor shall transfer

all of its interest in the Equipment to Lessee "AS IS, WHERE IS,"

and without any warranty, express or implied from Lessor, other

than the absence of any liens or claims by, through, or under

Lessor.

     2.  OPTION B - FIXED PRICE PURCHASE AND RENEWAL OPTIONS.

(a) If Option B has been selected, no Event of Default exists, no

event has occurred and is continuing that with notice or the

lapse of time or both would constitute an Event of Default, and

Lessee delivers to Lessor an irrevocable written election notice

at least 90 days prior to the expiration of the Applicable Term,

lessee shall have the following fixed price purchase and renewal

options: (i) Lessee may purchase all of the Equipment at the end

of the Applicable Term for the amount specified on the front page

of this Schedule (as adjusted pursuant to Section 7 of the

Agreement) (Sale Price); or (ii) Lessee may renew this Schedule

for a Renewal Term of not less than 12 months at the periodic

Rental Payment amount specified on the front of this Schedule (as

adjusted pursuant to Section 7 of the Agreement) (Renewal Rental

Payment); provided, however, that the foregoing renewal option

may not be exercised if Lessor reasonably determines that there

has been a material adverse change in Lessee's business or

financial condition since the Commencement Date; and provided

further, however, that if Lessee decides not to purchase the

Equipment or renew this Schedule at the end of the Applicable

Term, it shall provide Lessor with irrevocable written notice

thereof at least 90 days prior to the expiration of the

Applicable Term and return the Equipment to Lessor in accordance

with Section 18 of the Agreement.

(b)  If Lessee elects to purchase the Equipment, it shall pay

Lessor the Sale Price prior to the expiration of the Applicable

Term, and Lessee shall make all other payments required hereunder

during the remaining Term of this Schedule.  If Lessee elects to

renew this Schedule, Lessee and Lessor shall enter into a

supplement to this Schedule to confirm the length of the

applicable Renewal Term.  Throughout the Renewal Term, Lessee

shall pay Lessor the

 

NCR Credit Corporation                     NCR Credit Corporation

A Subsidiary of AT&T Capital Corporation Commencement Certificate

                                                      F-8854 0992

<PAGE>

Renewal Rental Payment on the same date each period that the

Rental Payment was due during the Initial Term.

(c)  Should Lessee fail to: (i) provide Lessor with the 90 day

notice required above; or (ii) pay Lessor, as applicable, the

Sale Price as specified above; or (iii) return the Equipment to

Lessor in accordance with Section 18 of the Agreement, the

Applicable Term shall be extended for successive 90 day periods

until Lessee returns the Equipment to Lessor in accordance with

Section 18 of the Agreement, or Lessor terminates this Schedule

by 10 days written notice to Lessee.  In the event this Schedule

is extended pursuant to the preceding sentence, Lessee shall

continue to pay Lessor the periodic Rental Payments in effect

prior to the expiration of the Applicable Term, and all other

provisions of the Agreement and this Schedule (including Lessee's

purchase and renewal options) shall continue to apply.

(d)  If Lessee elects to purchase the Equipment and has

completely fulfilled the terms and conditions f the Agreement and

this Section 2, then on the last day of the Applicable Term: (i)

this Schedule shall terminate and, except as provided in Section

30 of the Agreement, Lessee shall be relieved of all obligations

under this Schedule; and (ii) Lessor shall transfer all of its

interest in the Equipment to Lessee "AS IS, WHERE IS," and

without any warranty, express or implied from Lessor, other than

the absence of any liens or claims by, through, or under Lessor.

     3.  STIPULATED LOSS VALUE.  For purposes of this Schedule,

the Stipulated Loss Value of he Equipment shall be determined by

multiplying the applicable Stipulated Loss Value Percentage as

specified in the SLV Table that incorporates this Schedule by

reference by listing the Lease Number and Schedule Number

specified on the front of this Schedule) as of the due date of

the last Rental Payment due immediately prior to the date of the

Loss (for purposes of this Section 3) or the Event of Default

(for purposes of Section 20) by the Total Purchase Price (as

adjusted pursuant to Section 7 of the Agreement).

     

     4.  TAX INDEMNITY. (a) Lessor intends to take accelerated

cost recovery deductions (Recovery Deductions) under sections

167(a) and 168(b)(1) of the Internal Revenue Code of 1982, as

amended (Code), and accelerated depreciation deductions under

applicable state law (Depreciation Deductions).  Accordingly,

Lessee makes the following representations, warranties and

covenants: (i) at the time Lessee accepts the Equipment pursuant

to Section 3 of the Agreement, the Equipment will have been

"placed in service" within the meaning of sections 167 and 168 of

the Code; (ii) the Total Purchase Price (as adjusted pursuant to

Section 7 of the Agreement) shall qualify for Recovery Deductions

and Depreciation Deductions (with the exception of any items that

are not excluded by specific language on the front of this

Schedule and any increase in the Total Purchase Price that is

attributable to any accrued interest under a Financing

Agreement); (iii) neither Lessee, any of its affiliates, nor any

of its successors, sublessees or assigns was, is, or will become

a tax-exempt entity described in section 168(h)(2) of the Code at

any time during the Term of this Schedule or the five years

preceding the Commencement Date; and (iv) at no time during the

Term of this Schedule will Lessee (or any of its successors,

sublessees or assigns) take any action or fail to take any action

(whether or not such act or omission is otherwise required by the

Agreement) that results in a loss, reduction, deferral, recapture

or other unavailability to Lessor of any part of the Recovery

Deductions or Depreciation Deductions.  If, because of a breach

of this Section 4(a), Recovery Deductions or Depreciation

Deductions are lost, reduced, deferred, recaptured or otherwise

made unavailable to Lessor (a Tax Loss), Lessee shall, upon

demand by Lessor, promptly pay damages to Lessor.  The amount of

such damages shall be the amount necessary to provide Lessor with

a Net Economic Return (as defined in Section 4(c) below) equal to

the Net Economic Return that lessor would have realized if it had

not suffered a Tax Loss.  A Loss or damage to the Equipment will

constitute a breach of this Section 4(a) if it does not result in

the payment of the Lessor's Return described in Section 13 of the

Agreement.

     

     (b)  The amount of each periodic Rental Payment remaining to

be paid during the Applicable Term (as adjusted pursuant to

Section 7 of the Agreement, or as previously adjusted pursuant to

this Section 4(b)) shall be adjusted, upwards or downwards, in

the event that changes are made to the Code (including changes in

the corporate income tax rates) or any regulations promulgated

thereunder that affect the federal income tax consequences to

Lessor that were contemplated by Lessor when it determined the

amount of the periodic

Rental Payment then in effect (Tax Law Change).  The net effect

of any adjustment under this Section 4(b) shall be to provide

Lessor a Net Economic Return equal to the net Economic Return

that Lessor would have realized if no Tax Law Change had

occurred.

     (c)  Any damages required by Section 4(a) above and any

adjustment required by Section 4(b) above shall be in the amount

necessary to provide Lessor a net after-tax yield, net after-tax

cash flow and net after-tax book earnings (Net Economic Return)

equal to the Net Economic Return Lessor would have realized with

respect to the transaction contemplated by this Schedule if a Tax

Loss or a Tax Law Change (as applicable) had not occurred,

assuming Lessee would fulfill all of its obligations hereunder,

and shall be based upon the same assumptions and pricing analysis

used by Lessor in determining the amount of the periodic Rental

Payment then in effect, except to the extent such assumptions are

affected by the Tax Loss or Tax Law Change (as applicable) at

issue.  Without limiting the generality of the foregoing, it

shall be irrebuttably presumed that all income of Lessor for any

year is subject to tax at the highest then applicable federal

income tax rate generally applicable to corporations, and that

Lessor has sufficient taxable income to offset all deductions

arising hereunder.

     

     (d)  With respect to any damages or adjustments calculated

by Lessor as set forth above (Calculation Amount), at the request

and expense of Lessee, Lessor shall submit the assumptions and

calculations underlying any such Calculation Amount to Lessor's

independent certified public accountants for verification of the

maintenance of Lessor's Net Economic Return.  Such accountants'

determination that the Calculation Amount does or does not

maintain Lessor's Net Economic Return (and, in the case of the

latter, such accountants' determination of the adjusted amount

that would so maintain such Net Economic Return) shall be binding

upon Lessor and Lessee.  Lessee agrees that any information

provided to such accountants by Lessor constitutes private,

 

NCR Credit Corporation                     NCR Credit Corporation

A Subsidiary of AT&T Capital Corporation Commencement Certificate

                                                      F-8854 0992

<PAGE>

proprietary and confidential property of Lessor, and that no

person other than Lessor and such accountants shall be entitled

access thereto.

     5.  SECURITY INTEREST.  Lessor and Lessee intend the

transaction described in this Schedule to be a true lease, and

Lessee hereby authorizes Lessor to file a financing statement to

give public notice of Lessor's ownership of the Equipment.  If

such transaction is deemed by a court of competent jurisdiction

to be a lease intended for security, then to secure payment and

performance of Lessee's obligations under the Agreement and this

Schedule Lessee grants Lessor and its assigns a purchase money

security interest in the Equipment and in all attachments,

accessories, additions, substitutions, products, replacements,

rentals and proceeds (including insurance proceeds) therefrom as

well as security interest in any other equipment financed

pursuant to the Agreement or any other agreement between Lessor

and Lessee (collectively, Collateral).  Lessee shall execute and

timely deliver to Lessor financing statements or any other

documents Lessor deems necessary to perfect or protect Lessor's

security interest in the Collateral.  Lessor or Lessor's agent

may file as a financing statement any lease document (or copy

thereof, where permitted by law) Lessor deems necessary to

perfect or protect Lessor's security interest in the Collateral.

If Lessee fails to execute any such document, Lessor or Lessor's

agent is hereby authorized to file any of the foregoing signed

only by Lessor or Lessor's agent.EXHIBIT 10.3(b)

                             1996 STOCK OPTION PLAN

                                       OF

                             OBJECTSOFT CORPORATION

                       (AS AMENDED AS OF JANUARY 18, 2000,
                        SUBJECT TO STOCKHOLDER APPROVAL)

                  1.  PURPOSES OF THE PLAN.  This stock option plan (the "Plan")
is designed to provide an incentive to key  employees  (including  directors and
officers who are key employees)  and to  consultants  and advisors and directors
who are not employees of ObjectSoft  Corporation,  a Delaware  corporation  (the
"Company"),  or its  present and future  Subsidiaries  or a Parent (as each such
term is defined in  Paragraph  19),  and to offer an  additional  inducement  in
obtaining  the  services of such  persons.  The Plan  provides  for the grant of
"incentive  stock  options"  ("ISOs")  within the  meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"),  and nonqualified  stock
options  which  do not  qualify  as ISOs  ("NQSOs"),  but the  Company  makes no
representation or warranty,  express or implied,  as to the qualification of any
option as an "incentive stock option" under the Code.

                  2. STOCK  SUBJECT TO THE PLAN.  Subject to the  provisions  of
Paragraph 12, the aggregate  number of shares of common stock,  $.0001 par value
per share,  of the Company  ("Common  Stock")  for which  options may be granted
under the Plan shall not exceed  1,000,000.  Such shares of Common Stock may, in
the  discretion  of the  Board  of  Directors  of the  Company  (the  "Board  of
Directors"),  consist  either  in whole or in part of  authorized  but  unissued
shares of Common  Stock or shares of Common  Stock held in the  treasury  of the
Company.  Subject to the  provisions of Paragraph 13, any shares of Common Stock
subject to an option which for any reason expires,  is canceled or is terminated
unexercised or which ceases for any reason to be exercisable  shall again become
available for the granting of options  under the Plan.  The Company shall at all
times  during the term of the Plan  reserve  and keep  available  such number of
shares of Common Stock as will be sufficient to satisfy the  requirements of the
Plan.

                  3.  ADMINISTRATION OF THE PLAN. The Plan shall be administered
by a  committee  of the  Board of  Directors  consisting  of not  less  than two
directors  (the  "Committee").  During  such time as the  Company has a class of
equity securities  registered under Section 12 of the Securities Exchange Act of
1934 (the  "Exchange  Act"),  to the extent  necessary to preserve any deduction
under Section 162(m) of the Code or to comply with Rule 16b-3  promulgated under
the Exchange Act, or any successor rule ("Rule 16b-3"),  any Committee appointed
by the Board of  Directors to  administer  the Plan shall be comprised of two or
more  directors,  each of whom shall be a  "non-employee  director,"  within the
meaning of Rule 16b-3,

<PAGE>

and an "outside  director,"  within the meaning of Treasury  Regulation  Section
1.162-27(e)(3),  and  the  delegation  of  powers  to  the  Committee  shall  be
consistent with applicable laws and regulations (including,  without limitation,
applicable  state  laws  and Rule  16b-3).  A  majority  of the  members  of the
Committee shall  constitute a quorum,  and the acts of a majority of the members
present at any  meeting at which a quorum is present,  and any acts  approved in
writing by all members without a meeting, shall be the acts of the Committee.

                  Subject to the express  provisions of the Plan,  the Committee
shall  have  the  authority,  in its  sole  discretion,  to  determine  the  key
employees,  consultants  and directors who shall be granted  options;  the times
when options shall be granted;  whether an Employee  Option shall be an ISO or a
NQSO;  the number of shares of Common  Stock to be subject to each  option;  the
term of each option; the date each option shall become  exercisable;  whether an
option shall be  exercisable  in whole,  in part or in  installments  and, if in
installments,  the  number  of  shares of  Common  Stock to be  subject  to each
installment,  whether  the  installments  shall be  cumulative,  the  date  each
installment shall become  exercisable and the term of each installment;  whether
to accelerate the date of exercise of any option or installment;  whether shares
of Common Stock may be issued upon the exercise of an option as partly paid and,
if so, the dates when future installments of the exercise price shall become due
and the amounts of such  installments;  the exercise  price of each option;  the
form of payment of the  exercise  price;  whether to restrict  the sale or other
disposition  of the shares of Common  Stock  acquired  upon the  exercise  of an
option and, if so, whether to waive any such restriction; whether to subject the
exercise of all or any portion of an option to the fulfillment of  contingencies
as  specified in the  contract  referred to in  Paragraph  11 (the  "Contract"),
including without limitation, contingencies relating to entering into a covenant
not to compete with the Company, any of its Subsidiaries or a Parent (as defined
in  Paragraph  19),  to  financial  objectives  for  the  Company,  any  of  its
Subsidiaries or a Parent, a division of any of the foregoing,  a product line or
other category,  and/or the period of continued  employment of the optionee with
the Company,  any of its Subsidiaries or a Parent, and to determine whether such
contingencies  have been met;  whether an optionee  is  Disabled  (as defined in
Paragraph 19); and, the amount,  if any,  necessary to satisfy the obligation of
the Company,  a Subsidiary or a Parent to withhold taxes or other  amounts;  the
fair  market  value of a share of  Common  Stock;  to  construe  the  respective
Contracts and the Plan; with the consent of the optionee, to cancel or modify an
option,  provided, that the modified provision is permitted to be included in an
option  granted  under the Plan on the date of the  modification,  and  further,
provided,  that in the case of a  modification  (within  the  meaning of Section
424(h) of the Code) of an ISO, such option as modified  would be permitted to be
granted  on the  date of such  modification  under  the  terms of the  Plan;  to
prescribe,  amend and rescind  rules and  regulations  relating to the Plan;  to
approve any  provision of the Plan or any option  granted  under the Plan or any
amendment  to either  which,  under Rule  16b-3 or  Section  162(m) of the Code,
requires  approval  by the  Board of  Directors,  a  committee  of  Non-Employee
Directors or the  stockholders  to be exempt under Section 16(b) of the Exchange
Act (unless otherwise specifically provided herein) or to preserve any deduction
under Section 162(m) of the Code; and to make all other determinations necessary
or advisable for administering the Plan. Any controversy or claim arising out of
or relating to the Plan, any option granted under the Plan or any Contract shall
be  determined  unilaterally  by the  Committee  in  its  sole  discretion.  The
determinations  of the

                                      -2-
<PAGE>

Committee on the matters referred to in this Paragraph 3 shall be conclusive and
binding on the parties.

                  No member or former  member of the  Committee  shall be liable
for any action or  determination  made in good faith with respect to the Plan or
any option granted hereunder. In addition to any other rights of indemnification
they may have as  directors  or as members or former  members of the  Committee,
each such member and former member shall be indemnified and held harmless by the
Company  from  and  against  any  reasonable  expenses   (including   reasonable
attorneys'  fees)  actually  and  necessarily  incurred in  connection  with the
defense, of any claim, action, suit, proceeding or appeal (collectively, "Case")
to which he is a party by  reason of an  action  or  failure  to act under or in
connection  with the Plan or any  option  granted  hereunder,  and  against  all
amounts paid by him in  settlement  of such Case  (provided  such  settlement is
approved  by the  Company) or paid in  satisfaction  of a judgment in such Case;
provided,  however,  that such member or former  member shall not be entitled to
indemnification  (a) if he did not within 60 days after the  institution of such
Case offer to the  Company in writing the  opportunity  to handle and defend the
Case at its own expense,  or (b) to the extend the Case  resulted from his gross
negligence or willful misconduct.

                  4. ELIGIBILITY;  GRANTS.  The Committee may from time to time,
in its sole discretion, consistent with the purposes of the Plan, grant Employee
Options  to  key  employees  (including  officers  and  directors  who  are  key
employees) of, Consultant Options to consultants and advisors to, the Company or
any of its  Subsidiaries  or a  Parent  and  Non-Employee  Director  Options  to
Non-Employee  Directors.  Such options granted shall cover such number of shares
of  Common  Stock  as the  Committee  may  determine,  in its  sole  discretion;
provided,  however,  that,  if on the date of grant of an  option,  any class of
equity  securities is required to be registered under Section 12 of the Exchange
Act,  the  maximum  number of shares  subject to  Employee  Options  that may be
granted to any  individual  during any calendar year under the Plan (the "162(m)
Maximum")  shall not exceed  500,000  shares;  and further,  provided,  that the
aggregate  market  value  (determined  at the  time the  option  is  granted  in
accordance  with  Paragraph  5) of the  shares  of  Common  Stock  for which any
eligible  employee  may be granted  ISOs under the Plan or any other plan of the
Company,  or of a Parent or a Subsidiary of the Company,  which are  exercisable
for the first time by such  optionee  during any calendar  year shall not exceed
$100,000.  Such  limitation  shall be applied by taking ISOs into account in the
order in which they were granted. Any option (or the portion thereof) granted in
excess of such amount shall be treated as a NQSO.

                  5. EXERCISE PRICE.  The exercise price of the shares of Common
Stock  under  each  option  shall be  determined  by the  Committee  in its sole
discretion;  provided,  however,  that the exercise price of an ISO shall not be
less than the fair market  value of the Common  Stock  subject to such option on
the  date of  grant;  and  further,  provided,  that  if,  at the time an ISO is
granted,  the  optionee  owns (or is deemed to own under  Section  424(d) of the
Code) stock  possessing  more than 10% of the total combined voting power of all
classes of stock of the Company,  of any of its Subsidiaries or of a Parent, the
exercise  price of such ISO shall not be less than 110% of the fair market value
of the Common Stock subject to such ISO on the date of grant.

                                      -3-
<PAGE>

                  The fair  market  value of a share of Common  Stock on any day
shall  be (a) if the  principal  market  for  the  Common  Stock  is a  national
securities exchange, the average between the high and low sales prices per share
of Common Stock on such day as reported by such exchange or on a composite  tape
reflecting  transactions on such exchange,  (b) if the principal  market for the
Common  Stock is not a national  securities  exchange  and the  Common  Stock is
quoted on The Nasdaq  Stock  Market  ("Nasdaq"),  and (i) if actual  sales price
information is available with respect to the Common Stock,  the average  between
the high and low sales  prices per share of Common  Stock on such day on Nasdaq,
or (ii) if such  information is not available,  the average  between the highest
bid and lowest asked prices per share of Common Stock on such day on Nasdaq,  or
(c) if the  principal  market for the Common Stock is not a national  securities
exchange and the Common Stock is not quoted on Nasdaq,  the average  between the
highest  bid and lowest  asked  prices per share of Common  Stock on such day as
reported on the OTC  Bulletin  Board  Service or by National  Quotation  Bureau,
Incorporated or a comparable service;  provided,  however,  that if clauses (a),
(b) and (c) of this  Paragraph are all  inapplicable,  or if no trades have been
made or no quotes  are  available  for such day,  the fair  market  value of the
Common  Stock shall be  determined  by the Board by any method  consistent  with
applicable  regulations  adopted by the  Treasury  Department  relating to stock
options.  The  determination  of the Committee shall be exclusive in determining
the fair market value of the stock.

                  6. TERM. The term of each option granted  pursuant to the Plan
shall be such term as is established by the Committee,  in its sole  discretion;
provided,  however, that the term of each ISO granted pursuant to the Plan shall
be for a period  not  exceeding  ten years from the date of grant  thereof;  and
further, provided, that if, at the time an ISO is granted, the optionee owns (or
is deemed to own under Section  424(d) of the Code) stock  possessing  more than
10% of the total  combined  voting power of all classes of stock of the Company,
of any of its  Subsidiaries  or of a Parent,  the term of the ISO shall be for a
period not exceeding five years from the date of grant. Options shall be subject
to earlier termination as hereinafter provided.

                  7. EXERCISE.  An option (or any part or installment  thereof),
to the extent then  exercisable,  shall be exercised by giving written notice to
the Company at its principal office (at present 50 East Palisade  Avenue,  Suite
411, Englewood,  New Jersey 07631) stating which ISO or NQSO is being exercised,
specifying the number of shares of Common Stock as to which such option is being
exercised and  accompanied  by payment in full of the aggregate  exercise  price
therefor  (or the amount due on  exercise  if the  Contract  with  respect to an
Employee Option permits installment  payments) (a) in cash or by certified check
or (b) if the applicable  Contract permits,  with previously  acquired shares of
Common  Stock  having an  aggregate  fair  market  value on the date of exercise
(determined  in accordance  with  Paragraph 5) equal to the  aggregate  exercise
price of all options being exercised, or with any combination of cash, certified
check or shares of Common Stock; provided,  however, that in no case without the
consent of the Committee may shares be tendered if such tender would require the
Company  to  incur a  charge  against  its  earnings  for  financial  accounting
purposes.  The Company shall not be required to issue any shares of Common Stock
pursuant to the exercise of any option until all required  payments with respect
thereto,  including  payments for any required  withholding  amounts,  have been
made. The Committee may, in its sole discretion,  permit payment of the exercise
price of

                                      -4-
<PAGE>

an option by delivery by the optionee of a properly  executed  notice,  together
with a copy  of his  irrevocable  instructions  to a  broker  acceptable  to the
Committee to deliver promptly to the Company the amount of sale or loan proceeds
sufficient to pay such exercise price. In connection therewith,  the Company may
enter into  agreements  for  coordinated  procedures  with one or more brokerage
firms.

                  A person entitled to receive Common Stock upon the exercise of
an option shall not have the rights of a stockholder with respect to such shares
of Common  Stock until the date of issuance  of a stock  certificate  to him for
such shares; provided, however, that until such stock certificate is issued, any
optionee  using  previously  acquired  shares of Common  Stock in  payment of an
option  exercise price shall  continue to have the rights of a stockholder  with
respect to such previously acquired shares.

                  In no case  may a  fraction  of a share  of  Common  Stock  be
purchased or issued under the Plan.

                  8.  TERMINATION  OF  RELATIONSHIP.  Except as may otherwise be
expressly provided in the applicable Contract,  any holder of an Employee Option
or  Consultant  Option  whose  relationship  with the  Company,  its  Parent and
Subsidiaries  as an employee,  a consultant or an advisor has terminated for any
reason other than in the case of an individual  optionee his death or Disability
(as defined in Paragraph 19) may exercise such option, to the extent exercisable
on the date of such termination,  at any time within three months after the date
of  termination,  but not  thereafter  and in no event after the date the option
would otherwise have expired;  provided,  however,  that if such relationship is
terminated either (a) for cause, or (b) without the consent of the Company, such
option  shall  terminate  immediately.  Except  as may  otherwise  be  expressly
provided in the applicable  Contract,  Employee  Options and Consultant  Options
granted  under the Plan shall not be affected by any change in the status of the
optionee so long as the optionee continues to be an employee of, or a consultant
or an  advisor  to,  the  Company,  or  any  of  the  Subsidiaries  or a  Parent
(regardless of having  changed from one to the other or having been  transferred
from one corporation to another).

                  For the purposes of the Plan, an employment relationship shall
be deemed to exist  between an individual  and a corporation  if, at the time of
the  determination,  the  individual  was an  employee of such  corporation  for
purposes of Section 422(a) of the Code. As a result,  an individual on military,
sick leave or other bona fide leave of absence  shall  continue to be considered
an  employee  for  purposes  of the Plan  during such leave if the period of the
leave does not exceed 90 days, or, if longer, so long as the individual's  right
to reemployment with the Company (or a related corporation) is guaranteed either
by  statute  or by  contract.  If the  period of leave  exceeds  90 days and the
individual's  right to reemployment is not guaranteed by statute or by contract,
the employment  relationship  shall be deemed to have terminated on the 91st day
of such leave.

                  The holder of a Consultant Option whose consulting or advisory
relationship  with the Company (and its Parent and  Subsidiaries) has terminated
for any reason may exercise such option to the extent exercisable on the date of
such  termination,  but not thereafter and in no event

                                      -5-
<PAGE>

after the date the option would otherwise have expired; provided,  however, that
if such  relationship  was  terminated  either (a) for cause or (b)  without the
consent of the Company (other than as a result of the death or Disability of the
holder or a key employee of the holder) the option shall terminate immediately.

                  Except  as  may   otherwise  be  expressly   provided  in  the
applicable Contract,  the Non-Employee  Director Option shall not be affected by
the  optionee's  ceasing to be a director of the Company or becoming an employee
of the Company, any of its Subsidiaries or a Parent; provided,  however, that if
the optionee is terminated for cause, such option shall terminate immediately.

                  Nothing  in the Plan or in any option  granted  under the Plan
shall  confer on any  optionee  any right to  continue in the employ of, or as a
consultant or advisor to, the Company,  any of its Subsidiaries or a Parent,  or
as a director  of the  Company,  or  interfere  in any way with any right of the
Company,  any of its  Subsidiaries  or a  Parent  to  terminate  the  optionee's
relationship  at any time for any reason  whatsoever  without  liability  to the
Company, any of its Subsidiaries or a Parent.

                  9. DEATH OR DISABILITY OF AN OPTIONEE. Except as may otherwise
be expressly provided in the applicable Contract,  if an optionee dies (a) while
he is an  employee  of, or  consultant  or advisor to, the  Company,  any of its
Subsidiaries or a Parent,  (b) within three months after the termination of such
relationship  (unless such  termination  was for cause or without the consent of
the  Company)  or  (c)  within  one  year  following  the  termination  of  such
relationship  by reason of his  Disability,  his Employee  Option or  Consultant
Option may be exercised,  to the extent exercisable on the date of his death, by
his Legal  Representative  (as defined in  Paragraph  19) at any time within one
year after death,  but not  thereafter and in no event after the date the option
would otherwise have expired.

                  Except  as  may   otherwise  be  expressly   provided  in  the
applicable  Contract,  any  optionee  whose  relationship  as an employee of, or
consultant  or  advisor  to,  the  Company,  its  Parent  and  Subsidiaries  has
terminated  by reason of such  optionee's  Disability  may exercise his Employee
Option or Consultant  Option, to the extent  exercisable upon the effective date
of such  termination,  at any time  within one year  after  such  date,  but not
thereafter  and in no event  after  the date the  option  would  otherwise  have
expired.

                  The  term  of a  Non-Employee  Director  Option  shall  not be
affected by the death or Disability of the  optionee.  If an optionee  holding a
Non-Employee Director Option dies during the term of such option, the option may
be exercised at any time during its term by his Legal Representative.

                  10.   COMPLIANCE  WITH  SECURITIES  LAWS.  The  Committee  may
require,  in its sole  discretion,  as a condition to the exercise of any option
that either (a) a  Registration  Statement  under the Securities Act of 1933, as
amended (the "Securities Act"), with respect to the shares of Common Stock to be
issued  upon  such  exercise  shall  be  effective  and  current  at the time of
exercise,  or (b) there is an exemption from  registration  under the Securities

                                      -6-
<PAGE>

Act for the issuance of the shares of Common Stock upon such  exercise.  Nothing
herein shall be construed as requiring the Company to register shares subject to
any  option  under  the  Securities  Act or to keep any  Registration  Statement
effective or current.

                  The  Committee  may  require,  in its  sole  discretion,  as a
condition to the exercise of any option that the optionee execute and deliver to
the Company the optionee's  representations and warranties,  in form,  substance
and scope  satisfactory  to the  Committee  which the  Committee  determines  is
necessary or convenient to facilitate  the  perfection of an exemption  from the
registration  requirements of the Securities Act,  applicable  state  securities
laws or other legal  requirements,  including without  limitation,  that (a) the
shares of Common  Stock to be issued  upon the  exercise of the option are being
acquired by the optionee for the optionee's own account, for investment only and
not with a view to the resale or  distribution  thereof,  and (b) any subsequent
resale or  distribution  of shares of Common Stock by such optionee will be made
only pursuant to (i) a Registration  Statement under the Securities Act which is
effective  and current with respect to the shares of Common Stock being sold, or
(ii) a specific  exemption from the registration  requirements of the Securities
Act, but in claiming such  exemption,  the optionee  shall prior to any offer of
sale or sale of such shares of Common Stock provide the Company with a favorable
written opinion of counsel  satisfactory to the Company, in form,  substance and
scope satisfactory to the Company,  as to the applicability of such exemption to
the proposed sale or distribution.

                  In addition, if at any time the Committee shall determine,  in
its sole  discretion,  that the listing or qualification of the shares of Common
Stock  subject to such option on any  securities  exchange,  Nasdaq or under any
applicable  law,  or the  consent  or  approval  of any  governmental  agency or
regulatory  body,  is necessary or desirable as a condition to, or in connection
with,  the  granting  of an  option  or the  issue of  shares  of  Common  Stock
thereunder,  such  option may not be granted  or  exercised  in whole or in part
unless such listing, qualification, consent or approval shall have been effected
or obtained free of any conditions not acceptable to the Committee.

                  11. STOCK OPTION CONTRACTS.  Each option shall be evidenced by
an  appropriate  Contract  which  shall be duly  executed by the Company and the
optionee,   and  shall  contain  such  terms,   provisions  and  conditions  not
inconsistent herewith as may be determined by the Committee.

                  12. ADJUSTMENTS UPON CHANGES IN COMMON STOCK.  Notwithstanding
any other  provisions of the Plan, in the event of any change in the outstanding
Common Stock by reason of a stock  dividend,  recapitalization,  merger in which
the Company is the surviving corporation,  split-up,  combination or exchange of
shares or the like which  results in a change in the number or kind of shares of
Common  Stock  which  are  outstanding  immediately  prior  to such  event,  the
aggregate  number and kind of shares subject to the Plan,  the aggregate  number
and kind of shares subject to each outstanding  option, the 162(m) Maximum,  and
the  exercise  price  thereof  shall be  appropriately  adjusted by the Board of
Directors, whose determination shall be conclusive. Such adjustments may provide
for the  elimination  of  fractional  shares that might  otherwise be subject to
options without payment therefor.

                                      -7-
<PAGE>

Notwithstanding  the  foregoing,  no  adjustment  shall be made pursuant to this
Paragraph 12 if such  adjustment (a) would cause the Plan to fail to comply with
Section 422 of the Code or with Rule 16b-3 of the Exchange Act (if applicable to
such option), or (b) would be considered as the adoption of a new plan requiring
Stockholder approval.

                  In the  event of (a) the  liquidation  or  dissolution  of the
Company,  or (b) a merger in which the Company is not the surviving  corporation
or a  consolidation,  or (c) a merger  (or  similar  transaction)  in which  the
Company is the surviving corporation but more than 50% of the outstanding Common
Stock is transferred or exchanged for other  consideration or in which shares of
Common Stock are issued in an amount in excess of the number of shares of Common
Stock outstanding immediately preceding the merger (or similar transaction), any
outstanding  options shall terminate upon the earliest of any such event, unless
other provision is made therefor in the transaction under the Contract otherwise
provided.

                  13.  AMENDMENTS  AND  TERMINATION  OF THE  PLAN.  The Plan was
adopted  by the Board of  Directors  on March 15,  1996 and  amended on March 3,
1998, on March 15, 1999 and on January 18, 2000. No ISO may be granted under the
Plan after March 14, 2006. The Board of Directors,  without further  approval of
the  Company's  stockholders,  may at any time suspend or terminate the Plan, in
whole or in part,  or amend it from time to time in such respects as it may deem
advisable,  including,  without limitation, in order that ISOs granted hereunder
meet the  requirements  for "incentive  stock options" under the Code, to comply
with the provisions of Rule 16b-3,  Section 162(m) of the Code, or any change in
applicable  law,  regulations,  rulings  or  interpretations  of  administrative
agencies;  provided,  however,  that no amendment shall be effective without the
requisite  prior or subsequent  stockholder  approval  which would (a) except as
contemplated  in Paragraph 12,  increase the maximum  number of shares of Common
Stock for which options may be granted under the Plan or the 162(m) Maximum, (b)
materially  increase the benefits  accruing to participants  under the Plan, (c)
change the eligibility requirements to receive options hereunder or (d) make any
other  change which under  applicable  law  requires  approval of the  Company's
stockholders. No termination, suspension or amendment of the Plan shall, without
the  consent  of the  holder of an  existing  and  outstanding  option  affected
thereby,  adversely  affect  his  rights  under  such  option.  The power of the
Committee to construe and administer any options granted under the Plan prior to
the termination or suspension of the Plan nevertheless shall continue after such
termination or during such suspension.

                  14.  NON-TRANSFERABILITY  OF OPTIONS.  No option granted under
the Plan shall be transferable otherwise than by will or the laws of descent and
distribution, and options may be exercised, during the lifetime of the optionee,
only by the optionee or his Legal Representatives. Except to the extent provided
above,  options  may not be  assigned,  transferred,  pledged,  hypothecated  or
disposed of in any way (whether by operation of law or otherwise)  and shall not
be subject to execution,  attachment or similar process,  and any such attempted
assignment,  transfer,  pledge,  hypothecation or disposition  shall be null and
void ab initio and of no force or effect.

                                      -8-
<PAGE>

                  15.  WITHHOLDING  TAXES. The Company (and/or its Subsidiary or
Parent,  as applicable)  may withhold (a) cash,  (b) subject to any  limitations
under Rule  16b-3,  shares of Common  Stock to be issued  with  respect  thereto
having an  aggregate  fair market  value on the  exercise  date  (determined  in
accordance with Paragraph 5), or (c) any combination thereof, in an amount equal
to the amount  which the  Committee  determines  is  necessary  to  satisfy  the
obligation of the Company,  a Subsidiary or a Parent to withhold Federal,  state
and  local  income  taxes or other  amounts  incurred  by reason of the grant or
exercise of an option,  its  disposition,  or the  disposition of the underlying
shares of Common Stock. Alternatively, the Company may require the holder to pay
to the Company (or to the Subsidiary or Parent) such amount,  in cash,  promptly
upon  demand.  The  Company  shall not be required to issue any shares of Common
Stock  pursuant to any such option until all required  payments  have been made.
Fair  market  value  of the  shares  of  Common  Stock  shall be  determined  in
accordance with Paragraph 5.

                  16. LEGENDS; PAYMENT OF EXPENSES. The Company may endorse such
legend or legends upon the  certificates  for shares of Common Stock issued upon
exercise  of an  option  under  the  Plan and may  issue  such  "stop  transfer"
instructions  to its transfer  agent in respect of such shares as it determines,
in its discretion, to be necessary or appropriate to (a) prevent a violation of,
or to perfect an exemption from, the registration requirements of the Securities
Act and any applicable  state  securities  laws, (b) implement the provisions of
the Plan or any  agreement  between the Company and the optionee with respect to
such  shares of Common  Stock,  or (c)  permit  the  Company  to  determine  the
occurrence of a  "disqualifying  disposition," as described in Section 421(b) of
the Code, of the shares of Common Stock issued or transferred  upon the exercise
of an ISO granted under the Plan.

                  The Company  shall pay all issuance  taxes with respect to the
issuance of shares of Common Stock upon the exercise of an option  granted under
the Plan, as well as all fees and expenses incurred by the Company in connection
with such issuance.

                  17. USE OF PROCEEDS. The cash proceeds from the sale of shares
of Common  Stock  pursuant to the  exercise  of options  under the Plan shall be
added to the general funds of the Company and used for such  corporate  purposes
as the Board of Directors may determine.

                  18.  SUBSTITUTIONS  AND  ASSUMPTIONS  OF  OPTIONS  OF  CERTAIN
CONSTITUENT CORPORATIONS. Anything in this Plan to the contrary notwithstanding,
the Board of  Directors  may,  without  further  approval  by the  stockholders,
substitute  new  options  for prior  options of a  Constituent  Corporation  (as
defined  in  Paragraph  19) or assume  the  prior  options  of such  Constituent
Corporation.

                  19. DEFINITIONS. For purposes of the Plan, the following terms
shall be defined as set forth below:

                     (1)   Constituent   Corporation.   The  term   "Constituent
Corporation"  shall mean any corporation which engages with the Company,  any of
its  Subsidiaries  or a Parent in a

                                      -9-
<PAGE>

transaction  to which Section  424(a) of the Code applies (or would apply if the
option assumed or  substituted  were an ISO), or any Parent or any Subsidiary of
such corporation.

                     (2) Consultant Option.  The term "Consultant  Option" shall
mean a NQSO granted  pursuant to the Plan to a person who, at the time of grant,
is a consultant to the Company or a Subsidiary of the Company,  and at such time
is neither a common law employee of the Company or any of its Subsidiaries nor a
director of the Company.

                     (3)  Disability.   The  term  "Disability"   shall  mean  a
permanent  and total  disability  within the meaning of Section  22(e)(3) of the
Code.

                     (4) Employee Option.  The term "Employee Option" shall mean
an option  granted  pursuant  to the Plan to an  individual  who, at the time of
grant, is a key employee of the Company or any of its Subsidiaries.

                     (5) Legal Representative.  The term "Legal  Representative"
shall  mean  the  executor,  administrator  or other  person  who at the time is
entitled by law to exercise the rights of a deceased or  incapacitated  optionee
with respect to an option granted under the Plan.

                     (6) Non-Employee Director. The term "Non-Employee Director"
shall mean a person who is a director  of the  Company,  but is not a common law
employee of the Company, any of its Subsidiaries or a Parent.

                     (7) Non-Employee  Director Option.  The term  "Non-Employee
Director Option" shall mean a NQSO granted pursuant to the Plan to a person who,
at the time of the grant, is a Non-Employee Director.

                     (8)  Parent.   The  term  "Parent"   shall  have  the  same
definition as "parent corporation" in Section 424(e) of the Code.

                     (9) Subsidiary.  The term "Subsidiary"  shall have the same
definition as "subsidiary corporation" in Section 424(f) of the Code.

                  20. GOVERNING LAW; CONSTRUCTION. The Plan, such options as may
be granted hereunder and all related matters shall be governed by, and construed
in  accordance  with,  the laws of the  State of  Delaware,  without  regard  to
conflict of law provisions.

                  Neither  the  Plan nor any  Contract  shall  be  construed  or
interpreted  with any  presumption  against the Company by reason of the Company
causing the Plan or Contract to be drafted. Whenever from the context it appears
appropriate,  any term stated in either the singular or plural shall include the
singular and plural,  and any term stated in the  masculine,  feminine or neuter
gender shall include the masculine, feminine and neuter.

                  21.  PARTIAL   INVALIDITY.   The  invalidity,   illegality  or
unenforceability  of any provision in the Plan or any Contract  shall not affect
the validity,  legality or enforceability

                                      -10-
<PAGE>

of any other  provision,  all of which shall be valid,  legal and enforceable to
the fullest extent permitted by applicable law.

                  22. STOCKHOLDER APPROVAL.  The amendments to the provisions of
the Plan  contained  in  Section 2 whereby  the  number of  options  that may be
granted is increased  to 1,000,000  and cotained in Section 4 whereby the 162(m)
Maximum is  increased  shall be subject to  approval  by a majority of the votes
cast at the next duly held  meeting  of the  Company's  stockholders  at which a
majority of the  outstanding  voting shares are present,  in person or by proxy,
and entitled to vote.  No options  granted  pursuant to such  amendments  may be
exercised prior to such approval, provided that the date of grant of any options
granted  hereunder  shall be  determined  as if the Plan had not been subject to
such approval unless otherwise  specified by the Committee.  Notwithstanding the
foregoing,  if the  amendments  to the  Plan are not  approved  by a vote of the
stockholders  of the Company on or before January 1, 2001,  any options  granted
thereunder shall terminate, but the Plan shall continue in full force and effect
as it existed immediately prior to the adoption of such amendments.

                                      -11-

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