Document:

<PAGE>
                                                                    Exhibit 10.3

                          TEXAS UNITED BANCSHARES, INC.
                         STOCK APPRECIATION RIGHTS PLAN

                            SCOPE AND PURPOSE OF PLAN

         Texas United Bancshares, Inc., a Texas corporation (the "Corporation"),
has adopted this Texas United Bancshares, Inc., Stock Appreciation Rights Plan
(the "Plan") to provide for the granting of Stock Appreciation Rights (hereafter
defined) to certain Key Employees and other persons.

         The purpose of the Plan is to provide an incentive for Key Employees,
directors and advisors of the Corporation or its Subsidiaries (hereafter
defined) to remain in the service of the Corporation or its Subsidiaries, to
extend to them the opportunity to acquire a proprietary interest in the
Corporation so that they will apply their best efforts for the benefit of the
Corporation, and to aid the Corporation in attracting able persons to enter the
service of the Corporation and its Subsidiaries.

                                   SECTION 1.
                                   DEFINITIONS

1.1      "Acquiring Person" means any Person other the Corporation, any of the
         Corporation's Subsidiaries, any employee benefit plan of the
         Corporation or of a Subsidiary of the Corporation or of a corporation
         owned directly or indirectly by the stockholders of the Corporation in
         substantially the same proportions as their ownership of stock of the
         Corporation, any trustee or other fiduciary holding securities under an
         employee benefit plan of the Corporation or of a Subsidiary of the
         Corporation or of a corporation owned directly or indirectly by the
         stockholders of the Corporation in substantially the same proportions
         as their ownership of stock of the Corporation.

1.2      "Award" means the grant of any form of Stock Appreciation Right under
         the Plan to a Holder pursuant to the terms, conditions, and limitations
         that the Committee may establish in order to fulfill the objectives of
         the Plan.

1.3      "Award Agreement" means the written document or agreement evidencing
         the terms, conditions, and limitations of the Award granted by the
         Corporation to that Holder.

1.4      "Board of Directors" means the board of directors of the Corporation.

1.5      "Business Day" means any day other than a Saturday, a Sunday, or a day
         on which banking institutions in the State of New York are authorized
         or obligated by law or executive order to close.

1.6     "Change in Control" means the event that is deemed to have occurred if:
<PAGE>
         (a)      any Acquiring Person is or becomes the "beneficial owner" (as
                  defined in Rule 13d-3 under the Exchange Act), directly or
                  indirectly, of securities of the Corporation representing
                  thirty percent or more of the combined voting power of the
                  then outstanding Voting Securities of the Corporation; or

         (b)      the stockholders of the Corporation approve a merger or
                  consolidation of the Corporation with any other corporation or
                  partnership (or, if no such approval is required, the
                  completion of such a merger or consolidation of the
                  Corporation), other than a merger or consolidation that would
                  result in the Voting Securities of the Corporation outstanding
                  immediately before the completion thereof continuing to
                  represent (either by remaining outstanding or by being
                  converted into Voting Securities of the surviving entity or of
                  a parent of the surviving entity) a majority of the combined
                  voting power of the Voting Securities of the surviving entity
                  (or its parent) outstanding immediately after that merger or
                  consolidation; or

         (c)      the stockholders of the Corporation approve a plan of complete
                  liquidation of the Corporation or an agreement for the sale or
                  disposition by the Corporation of all or substantially all the
                  Corporation's assets (or, if no such approval is required, the
                  completion of such a liquidation, sale, or disposition in one
                  transaction or series of related transactions) other than a
                  liquidation, sale or disposition of all or substantially all
                  the Corporation's assets in one transaction or a series of
                  related transactions to a corporation owned directly or
                  indirectly by the stockholders of the Corporation in
                  substantially the same proportions as their ownership of stock
                  of the Corporation.

1.7      "Committee" means the committee, if any, appointed pursuant to Section
         2 by the Board of Directors to administer this Plan.

1.8      "Corporation" means Texas United Bancshares, Inc., a Texas corporation.

         "Date of Grant" has the meaning given it in Paragraph 3.3,

         "Disability" has the meaning given it in Paragraph 6.5.

         "Eligible Individuals" means (a) Key Employees, (b) Non-employee
         Directors and (c) any other Person that the Committee designates as
         eligible for an Award because the Person performs bona fide consulting
         or advisory services for the Corporation or any of its Subsidiaries and
         the Committee determines that the Person has a direct and significant
         effect on the financial development of the Corporation or any of its
         Subsidiaries.

         "Employee" means any employee of the Corporation or of any of its
         Subsidiaries, including officers and directors of the Corporation who
         are also employees of the Corporation or of any of its Subsidiaries.

                                       2
<PAGE>
1.13     "Fair Market Value" means, for a particular day:

         (a)      If shares of Stock of the same class are listed or admitted to
                  unlisted trading privileges on any national or regional
                  securities exchange at the date of determining the Fair Market
                  Value, then the average of the high and low reported sales
                  prices, regular way, on the composite tape of that exchange on
                  the date in question or, if such day is not a Business Day or
                  no such sales are reported that day, on the last Business Day
                  for which such sales are reported before the date in question,
                  in any case as reported in the principal consolidated
                  transaction reporting system with respect to securities listed
                  or admitted to unlisted trading privileges on that securities
                  exchange; or

         (b)      If shares of Stock of the same class are not listed or
                  admitted to unlisted trading privileges as provided in
                  subparagraph 1.13(a) and if sales prices for shares of Stock
                  of the same class in the over-the-counter market are reported
                  by the National Association of Securities Dealers, Inc.
                  Automated Quotations, Inc. ("NASDAQ") National Market System
                  (or such other system then in use) at the date of determining
                  the Fair Market Value, then the average of the high and low
                  reported sales prices on the date in question or, if such day
                  is not a Business Day or no such sales are reported that day,
                  on the last Business Day for which such sales are reported
                  before the date in question; or

         (c)      If shares of Stock of the same class are not listed or
                  admitted to unlisted trading privileges as provided in
                  subparagraph 1.13(a) and sales prices for shares of Stock of
                  the same class are not reported by the NASDAQ National Market
                  System (or a similar system then in use) as provided in
                  subparagraph 1.13(b), and if bid and asked prices for shares
                  of Stock of the same class in the over-the-counter market are
                  reported by NASDAQ (or, if not so reported, by the National
                  Quotation Bureau Incorporated) at the date of determining the
                  Fair Market Value, then the average of the high bid and low
                  asked prices on the date in question or, if such day is not a
                  Business Day or no such prices are reported that day, on the
                  last Business Day for which such prices are reported before
                  the date in question; or

         (d)      If shares of Stock of the same class are not listed or
                  admitted to unlisted trading privileges as provided in
                  subparagraph 1.13(a) and sales prices or bid and asked prices
                  therefor are not reported by NASDAQ (or the National Quotation
                  Bureau Incorporated) as provided in subparagraph 1.13(b) or
                  subparagraph 1.14(c) at the date of determining the Fair
                  Market Value, then the value determined in good faith by the
                  Committee, which determination shall be conclusive for all
                  purposes; or

         (e)      If shares of Stock of the same class are listed or admitted to
                  unlisted trading privileges as provided in subparagraph
                  1.13(a) or sales prices or bid and asked prices therefor are
                  reported by the NASDAQ National Market System or by NASDAQ (or

                                        3
<PAGE>
                  the National Quotation Bureau Incorporated) as provided in
                  subparagraph 1.13(b) or subparagraph 1.13(c) at the date of
                  determining the Fair Market Value, but the volume of trading
                  is so low that the Board of Directors determines in good faith
                  that such prices are not indicative of the fair value of the
                  Stock, then the value determined in good faith by the
                  Committee, which determination shall be conclusive for all
                  purposes notwithstanding the provisions of subparagraphs
                  1.13(a), (b), or (c). Value for purposes of the redemption
                  based upon the value of such shares of stock, other
                  securities, cash or property. Any such determination by the
                  committee shall be conclusive for all purposes.

         "Holder" means an Eligible Individual to whom an Award has been
         granted.

         "Key Employee" means any Employee whom the Committee identifies as
         having a direct and significant effect on the performance of the
         Corporation or any of its Subsidiaries.

         "Normal Retirement" means the separation of the Holder from employment
         with the Corporation and its Subsidiaries on account of retirement at
         any time on or after the date on which the Holder reaches age
         sixty-five if the Holder is employed in the United States of America or
         such other age as provided for by the Committee as the normal
         retirement age in the country where the Holder is employed.

         "Person" means any person or entity of any nature whatsoever,
         specifically including (but not limited to) an individual, a firm, a
         company, a corporation, a partnership, a trust or other entity.

1.18    "Plan" means this Plan, as it may be amended from time to time.

1.19    "Restructure" means the occurrence of anyone or more of the following:

         (a)      the merger or consolidation of the Corporation with any
                  Person, whether effected as a single transaction or a series
                  of related transactions, with the Corporation remaining the
                  continuing or surviving entity of that merger or consolidation
                  and the Stock remaining outstanding and not changed into or
                  exchanged for stock or other securities of any other Person or
                  of the Corporation, cash, or other property;

         (b)      The merger or consolidation of the Corporation with any
                  Person, whether effected as a single transaction or a series
                  of related transactions, with (i) the Corporation not being
                  the continuing or surviving entity of that merger or
                  consolidation or (ii) the Corporation remaining the continuing
                  or surviving entity of that merger or consolidation but all or
                  a part of the outstanding shares of Stock are changed into or
                  exchanged for stock or other securities of any other Person or
                  the Corporation, cash, or other property; or

                                        4
<PAGE>
         (c)      The transfer, directly or indirectly, of all or substantially
                  all of the assets of the Corporation (whether by sale, merger,
                  consolidation, liquidation or otherwise) to any Person whether
                  effected as a single transaction or a series of related
                  transactions.

          "SAR Exercise Price" has the meaning given it in Paragraph 1.22.

          "Stock" means the Corporation's authorized common stock, par value
          $1.00 per share, as described in the Corporation's Certificate of
          Incorporation, or any other securities that are hereafter substituted
          for the Stock.

          "Stock Appreciation Right" means the right to receive an amount equal
          to the excess of the Fair Market Value of a share of Stock (as
          determined on the date of exercise) over a price specified in the
          related Award Agreement (the "SAR Exercise Price") that is not less
          than fifty percent of the Fair Market Value of the Stock on the Date
          of Grant of the Stock Appreciation Right.

          "Subsidiary" means, with respect to any Person, any corporation,
          limited partnership or other entity of which a majority of the voting
          power of the voting equity securities or equity interest is owned,
          directly or indirectly, by that Person.

          "Total Shares" has the meaning given it in Paragraph 5.1.

..25       "Voting Securities" means any securities that are entitled to vote
          generally in the election of directors, in the admission of general
          partners, or in the selection of any other similar governing body.

                                   SECTION 2.
                            ADMINISTRATION OF THE PLAN

2.1       Board or Committee. The Board of Directors may administer the Plan
          with respect to all Eligible Individuals or may delegate all or part
          of that duty to the Committee or to any other person or persons. If
          the Board of Directors does not appoint the Committee unless the
          context otherwise requires, references herein to the Committee shall
          be deemed to refer to the Board of Directors.

          Duration, Removal, Etc. The members of the Committee shall serve at
          the pleasure of the Board of Directors, which shall have the power, at
          any time and from time to time, to remove members from or add members
          to the Committee. Removal from the Committee may be with or without
          cause. Any individual serving as a member of the Committee shall have
          the right to resign from membership in the Committee by at least three
          day's written notice to the Board of Directors. The Board of
          Directors, and not the remaining members of the Committee, shall have
          the power and authority to fill vacancies on the Committee, however
          caused.

                                        5
<PAGE>
2.3       Meetings and Actions of Committee. The Board of Directors shall
          designate which of the Committee members shall be the chairman of the
          Committee. If the Board of Directors fails to designate a Committee
          chairman, the members of the Committee shall elect one of the
          Committee members as chairman, who shall act as chairman until the
          director ceases to be a member of the Committee or until the Board of
          Directors elects a new chairman. The Committee shall hold its meetings
          at those times and places as the chairman of the Committee may
          determine. At all meetings of the Committee, a quorum for the
          transaction of business shall be required, and a quorum shall be
          deemed present if at least a majority of the members of the Committee
          are present. At any meeting of the Committee, each member shall have
          one vote. All decisions and determinations of the Committee shall be
          made by the majority vote or majority decision of all of its members
          present at a meeting at which a quorum is present; provided, however,
          that any decision or determination reduced to writing and signed by
          all of the members of the Committee shall be as fully effective as if
          it had been made at a meeting that was duly called and held. The
          Committee may make any rules and regulations for the conduct of its
          business that are not inconsistent with the provisions of the Plan,
          the Certificate of Incorporation, the by-laws of the Corporation, as
          the Committee may deem advisable.

2.4       Committee's Powers. Subject to the express provisions of the Plan, the
          Committee shall have the authority, in its sole and absolute
          discretion, to adopt, amend, and rescind administrative and
          interpretive rules and regulations relating to the Plan; and to
          determine the Eligible Individuals to whom, and the time or times at
          which, Awards shall be granted; to make determinations of the Fair
          Market Value of the Stock pursuant to the Plan; to amend any Award
          Agreement or waive any provision, condition or limitation thereof; and
          to make all other determinations, perform all other acts, and exercise
          all other powers and authority necessary or advisable for
          administering the Plan, including the delegation of those ministerial
          acts and responsibilities as the Committee deems appropriate.

                                   SECTION 3.
                          ELIGIBILITY AND PARTICIPATION

3        Eligible Individuals. Awards may be granted pursuant to the Plan only
         to persons who are Eligible Individuals at the time of the grant
         thereof.

3.2      Grant of Awards. Subject to the express provisions of the Plan, the
         Committee shall determine which Eligible Individuals shall be granted
         Awards from time to time. In making grants, the Committee shall take
         into consideration the contribution the potential Holder has made or
         may make to the success of the Corporation or its Subsidiaries and such
         other considerations as the Committee may from time to time specify.

3.3      Date of Grant. The date on which the Award covered by an Award
         Agreement is granted (the "Date of Grant") shall be the date specified
         by the Committee as the effective date or date of grant of an Award or,
         if the Committee does not so specify, shall be the date the

                                        6
<PAGE>
          Committee adopts the resolution approving the offer of an Award to an
          individual. The Committee may invalidate an Award at any time before
          the Award Agreement is signed by the Holder (if signature is required)
          or is delivered to the Holder (if signature is not required), and such
          Award shall be treated as never having been granted.

 3.4      Award Agreements. Each Award granted under the Plan shall be
          evidenced by an Award Agreement that is executed by the Corporation
          and the Eligible Individual to whom the Award is granted and
          incorporating those terms that the Committee shall deem necessary or
          desirable. More than one Award may be granted under the Plan to the
          same Eligible Individual and be outstanding concurrently

                                   SECTION 4.
                            STOCK APPRECIATION RIGHTS

          All Stock Appreciation Rights granted under the Plan shall comply
 with, and the related Award Agreements shall be deemed to include and be
 subject to, the terms and conditions set forth in this Plan.

         Stock Appreciation Right. A Stock Appreciation Right granted hereunder
         shall be exercisable as determined by the Committee and set forth in
         the Award Agreement governing the Stock Appreciation Right, which Award
         Agreement shall comply with the following provisions:

         (a)      Number of Shares. Each Award Agreement shall state the total
                  number of shares of Stock to which the Stock Appreciation
                  Right relates.

         (b)      Vesting. Each Award Agreement shall state the time or periods
                  in which the right to exercise the Stock Appreciation Right or
                  a portion thereof shall vest and the number of shares of Stock
                  for which the right to exercise the Stock Appreciation Right
                  shall vest at each such time or period.

         (c)      Expiration of Rights. Each Award Agreement shall state the
                  date at which the Stock Appreciation Rights shall expire if
                  not previously exercised.

         (d)      Value of Right. A Stock Appreciation Right shall entitle the
                  Holder, upon exercise of the Stock Appreciation Right, to
                  receive payment of an amount determined by multiplying: (i)
                  the difference obtained by subtracting the SAR Exercise Price
                  from the Fair Market Value of a share of Stock on the date of
                  exercise of that Stock Appreciation Right, by (ii) the number
                  of rights as to which the Stock Appreciation Right has been
                  exercised.

         Limitations on Rights. Notwithstanding subparagraph 4.2(b) and
         subparagraph 4.3(d), the Committee may limit the amount payable upon
         exercise of a Stock Appreciation Right. Any

                                        7
<PAGE>
         such limitation must be determined as of the Date of Grant and be noted
         on the instrument evidencing the Holder's Stock Appreciation Right.

         Payment of Rights. Payment of the amount determined under subparagraph
         4.3(d) may be made solely in whole shares of Stock valued at Fair
         Market Value on the date of exercise of the Stock Appreciation Right
         or, in the sole discretion of the Committee, solely in cash or a
         combination of cash and Stock. If the Committee decides to make full
         payment in shares of Stock and the amount payable results in a
         fractional share, payment for the fractional share shall be made in
         cash.

         Payment of Taxes. The Committee may, in its discretion, require a
         Holder to pay to the Corporation (or the Corporation's Subsidiary if
         the Holder is an employee of a Subsidiary of the Corporation), at the
         time of the exercise of a Stock Appreciation Right, the amount that the
         Committee deems necessary to satisfy the Corporation's or its
         Subsidiary's current or future obligation to withhold federal, state or
         local income or other taxes that the Holder incurs by exercising a
         Stock Appreciation Right. Upon the exercise of a Stock Appreciation
         Right requiring tax withholding, a Holder may (a) direct the
         Corporation to withhold from the shares of Stock to be issued to the
         Holder the number of shares necessary to satisfy the Corporation's
         obligation to withhold taxes, that determination to be based on the
         shares' Fair Market Value as of the date on which tax withholding is to
         be made; (b) deliver to the Corporation sufficient shares of Stock
         (based upon the Fair Market Value at date of withholding) to satisfy
         the Corporation's tax withholding obligations, based on the shares'
         Fair Market Value as of the date of exercise; or (c) deliver sufficient
         cash to the Corporation to satisfy its tax withholding obligations.
         Holders who elect to use such a stock withholding feature must make the
         election at the time and in the manner that the Committee prescribes.
         The Committee may, in its sole discretion, deny any Holder's request to
         satisfy withholding obligations through Stock instead of cash or may
         impose any conditions it deems appropriate on such action, including
         the escrow of shares of Stock. In the event the Committee subsequently
         determines that the aggregate Fair Market Value (as determined above)
         of any shares of Stock withheld as payment of any tax withholding
         obligation is insufficient to discharge that tax withholding
         obligation, then the Holder shall pay to the Corporation, immediately
         upon the Committee's request, the amount of that deficiency.

4.5      Other Agreement Provisions. The Award Agreements authorized relating to
         Stock Appreciation Rights shall contain such provisions in addition to
         those required by the Plan (including, without limitation, restrictions
         or the removal of restrictions upon the exercise of the Stock
         Appreciation Right and the retention or transfer of shares thereby
         acquired) as the Committee may deem advisable.

                                       8
<PAGE>
                                    SECTION 5.
                          CHANGE-IN-CONTROL PROVISIONS

          The Committee may authorize an Award that contains any or all of
 the terms and provisions of this Section 5 or similar terms and provisions;
 nevertheless, no term or provision of this Section 5 (or any similar term or
 provision) shall apply to an Award unless the related Award Agreement expressly
 states that such term or provision applies.

5.1      Changes in Control. Upon the occurrence of a Change in Control all
         outstanding Stock Appreciation Rights shall immediately become fully
         vested and exercisable in full, including that portion of any Stock
         Appreciation Award that pursuant to the terms and provisions of the
         applicable Award Agreement had not yet become exercisable (the total
         number of shares of Stock as to which a Stock Appreciation Right is
         exercisable upon the occurrence of a Change in Control is referred to
         herein as the "Total Shares." Nothing in this Paragraph 5.1 shall
         impose on a Holder the obligation to exercise any Award immediately
         before or upon the Change of Control, nor shall the Holder forfeit the
         right to exercise the Award during the remainder of the original term
         of the Award because of a Change in Control or because the Holder's
         employment is terminated for any reason following a Change in Control.

5.2      Notice of Change in Control. The Corporation shall attempt to keep all
         Holders of Awards subject to Paragraph 5.1 informed with respect to any
         Change in Control or of any potential Change in Control to the same
         extent that the Corporation's stockholders are informed by the
         Corporation of any such event or potential event.

                                   SECTION 6.
                              ADDITIONAL PROVISIONS

          The terms and provisions of this 6 shall apply to each Award (unless,
 by its terms, such term or provision is inapplicable or is altered); provided,
 however, that the Committee may authorize an Award Agreement that expressly
 contains terms and provisions that differ from the terms and provisions set
 forth in this Section 6.

6.1      Adjustment of Awards and Authorized Stock. The terms of an Award shall
         be subject to adjustment as appropriate, as determined in the
         discretion of the Committee from time to time (i) if at any time or
         from time to time, the Corporation shall subdivide as a whole (by
         reclassification, by a Stock split, by the issuance of a distribution
         on Stock payable in Stock or otherwise) the number of shares of Stock
         then outstanding into a greater number of shares of Stock, or (ii) if
         at any time or from time to time, the Corporation shall consolidate as
         a whole (by reclassification, reverse Stock split, or otherwise) the
         number of shares of Stock then outstanding into a lesser number of
         shares of Stock.

6.2      Termination of Employment. If a Holder is an Eligible Individual
         because the Holder is an Employee and if that employment relationship
         is terminated for any reason other than

                                        9
<PAGE>
         Normal Retirement or that Holder's death or Disability (hereafter
         defined), then the following provisions shall apply to all Awards held
         by that Holder that were granted because that Holder was an Employee:

         (a)      If the termination is by the Holder's employer, then any and
                  all Awards held by that Holder that are not yet exercisable
                  (or for which restrictions have not lapsed) and the portion of
                  any Award that is exercisable but has not been exercised as of
                  the time of the termination shall become null and void as of
                  the time of the termination.

         (b)      If such termination is by the Holder, the Award shall
                  terminate on the earlier of:

                  (i)      the termination of the term of the Award or

                  (ii)     three months after the date of termination of the
                           Holder's employment.

         Other Loss of Eligibility. If a Holder is an Eligible Individual
         because the Holder is serving in a capacity other than as an Employee
         and if that capacity is terminated for any reason other than the
         Holder's death, then Stock Appreciation Rights by that Holder that have
         not become exercisable at the time of termination shall be null and
         void and that portion, if any, of any and all Awards held by the Holder
         that were granted because of that capacity which are not yet
         exercisable (or for which restrictions have not lapsed) as of the date
         of the termination shall become null and void as of the date of the
         termination; provided, however, that the portion, if any, of any and
         all of the Awards held by the Holder that are exercisable as of the
         date of the termination shall survive the termination for one month.

         Death. Upon the death of a Holder, then any and all Stock Appreciation
         Rights held by that Holder that are not yet exercisable shall become
         null and void as of the time of death; provided, however, that the
         portion, if any, of Stock Appreciation Rights held by the Holder that
         are exercisable as of the date of death shall be exercisable by that
         Holder's legal representatives, legatees or distributees for a period
         of the lesser of (a) the remainder of the term of the Award or (b) 12
         months following the date of the Holder's death. Any portion of an
         Award not exercised upon the expiration of the periods specified in (a)
         or (b) shall be null and void.

         Disability. If a Holder is an Eligible Individual because the Holder is
         an Employee and if that employment relationship is terminated by reason
         of the Holder's Disability, then any and Stock Appreciation Rights held
         by that Holder that are not yet exercisable shall become null and void
         as of the time of termination for Disability. With respect to any
         portion of a Stock Appreciation Right that survives the termination
         because of Disability, that portion of the Award shall be exercisable
         by the Holder, the Holder's guardian or legal representative and shall
         terminate on the earlier of:

         (a)      the termination of the term of the Award or

                                       10
<PAGE>
         (b)      12 months after the date of termination of the Holder's
                  employment.

         "Disability" shall have the meaning given it in the employment
         agreement of the Holder; provided, however, that if that Holder has no
         employment agreement or such term is not defined in the employment
         agreement, "Disability" shall mean a physical or mental impairment of
         sufficient severity that, ill the opinion of the Corporation, the
         Holder is unable to continue performing the duties the Holder performed
         before such impairment and that impairment or condition is cited by the
         Corporation as the reason for termination of the Holder's employment.

         Leave of Absence. With respect to an Award, the Committee may, in its
         sole discretion, determine that any Holder who is on leave of absence
         for any reason will be considered to still be in the employ of the
         Corporation.

         Transferability of Awards. An Award requiring exercise shall be
         exercisable during a Holder's lifetime only by that Holder or by that
         Holder's guardian or legal representative. An Award shall not be
         transferrable other than by will or the laws of descent and
         distribution.

6.8      Rights as a Stockholder. A Holder shall have no right as a stockholder
         with respect to any shares covered by a Stock Appreciation Right.

         Restructure. If a Restructure should occur, at the option of the
         Committee, the Corporation may (but shall not be required to) take
         anyone or more of the following actions:

         (a)      accelerate in whole or in part the time of the vesting and
                  exercisability of anyone or more of the outstanding Stock
                  Appreciation Rights so as to provide that those Stock
                  Appreciation Rights and Options shall be exercisable before,
                  upon, or after the completion of the Restructure;

         (b)      if the Restructure does not result in the survival of the
                  Corporation, cause the surviving entity to assume in whole or
                  in part anyone or more of the outstanding Awards upon such
                  terms and provisions as the Committee deems desirable; or

         (c)      redeem in whole or in part anyone or more of the outstanding
                  Awards (whether or not then exercisable) in consideration of a
                  cash payment, as such payment may be reduced for tax
                  withholding obligations as contemplated in the Section
                  governing the particular form of Award, in an amount equal to
                  the excess of (A) the Fair Market Value, determined as of a
                  date immediately preceding the completion of the Restructure,
                  of the aggregate number of shares of Stock subject to the
                  Award and as to which the Award is being redeemed over (B) the
                  SAR Exercise Price of the number of shares of Stock.

                                       11
<PAGE>
          The Corporation shall promptly notify each affected Holder of any
          election or action taken by the Corporation under this Paragraph 6.9.
          In the event of any election or action taken by the Corporation
          pursuant to this Paragraph 6.9 that requires the amendment or
          cancellation of any Award Agreement as may be specified in any notice
          to the Holder thereof, that Holder shall promptly deliver that Award
          Agreement to the Corporation in order for that amendment or
          cancellation to be implemented by the Corporation and the Committee.
          The failure of the Holder to deliver any such Award Agreement to the
          Corporation as provided in the preceding sentence shall not in any
          manner effect the validity or enforceability of any action taken by
          the Corporation and the Committee under this Paragraph 6.9, including,
          without limitation, any redemption of an Award as of the completion of
          a Restructure. Any cash payment to be made by the Corporation pursuant
          to this Paragraph 6.9 in connection with the redemption of any
          outstanding Awards shall be paid to the Holder thereof currently with
          the delivery to the Corporation of the Award Agreement evidencing that
          Award; provided, however, that any such redemption shall be effective
          upon the completion of the Restructure notwithstanding that the
          payment of the redemption price may occur subsequent to the
          completion.

                                   SECTION 7.
                                     GENERAL

7.1      Duration. No Awards may be granted hereunder after the date that is ten
         years from the date this Plan is approved by the Board of Directors.

7.2      Amendment. The Board of Directors may, insofar as permitted by law,
         suspend or discontinue the Plan or revise or amend it in any respect
         whatsoever.

         Application of Funds. The proceeds received by the Corporation from the
         sale of shares pursuant to Awards shall be used for general corporate
         purposes.

         Right of the Corporation and Subsidiaries to Terminate Employment.
         Nothing contained in the Plan, or in any Award Agreement, shall confer
         upon any Holder the right to continue in the employ of the Corporation
         or any Subsidiary, or interfere in any way with the rights of the
         Corporation or any Subsidiary to terminate the Holder's employment any
         time.

7.5      No Liability for Good Faith Determinations. Neither the members of the
         Board of Directors nor any member of the Committee shall be liable for
         any act, omission, or determination taken or made in good faith with
         respect to the Plan or any Award granted under it, and members of the
         Board of Directors and the Committee shall be entitled to
         indemnification and reimbursement by the Corporation in respect of any
         claim, loss, damage, or expense (including attorneys' fees, the costs
         of settling any suit, provided such settlement is approved by
         independent legal counsel selected by the Corporation, and amounts paid
         in satisfaction of a judgment, except a judgment based on a finding of
         bad faith) arising therefrom to the full extent permitted by law and
         under any directors and officers liability or similar insurance

                                       12
<PAGE>
         coverage that may from time to time be in effect. This right to
         indemnification shall be in addition to, and not a limitation on, any
         other indemnification rights any member of the Board of Directors or
         the Committee may have.

7.6      Other Benefits. Participation in the Plan shall not preclude the Holder
         from eligibility in any other stock or stock option plan of the
         Corporation or any Subsidiary or any old age benefit, insurance,
         pension, profit sharing retirement, bonus, or other extra compensation
         plans that the Corporation or any Subsidiary has adopted, or may, at
         any time, adopt for the benefit of its Employees. Neither the adoption
         of the Plan by the Board of Directors nor the submission of the Plan to
         the stockholders of the Corporation for approval shall be construed as
         creating any limitations on the power of the Board of Directors to
         adopt such other incentive arrangements as it may deem desirable,
         including, without limitation, the granting of stock options and the
         awarding of stock and cash otherwise than under the Plan, and such
         arrangements may be either generally applicable or applicable only in
         specific cases.

7.7      Exclusion From Pension and Profit-Sharing Compensation. By acceptance
         of an Award (whether in Stock or cash), as applicable, each Holder
         shall be deemed to have agreed that the Award is special incentive
         compensation that will not be taken into account in any manner as
         salary, compensation or bonus in determining the amount of any payment
         under any pension, retirement or other employee benefit plan of the
         Corporation or any Subsidiary. In addition, each beneficiary of a
         deceased Holder shall be deemed to have agreed that the Award will not
         affect the amount of any life insurance coverage, if any, provided by
         the Corporation or a Subsidiary on the life of the Holder that is
         payable to the beneficiary under any life insurance plan covering
         employees of the Corporation or any Subsidiary.

         Execution of Receipts and Releases. Any payment of cash or any
         issuance or transfer of shares of Stock to the Holder, or to the
         Holder's legal representative, heir, legatee, or distributee, in
         accordance with the provisions hereof, shall, to the extent thereof, be
         in full satisfaction of all claims of such persons hereunder. The
         Committee may require any Holder, legal representative, heir, legatee,
         or distributee, as a condition precedent to such payment, to execute a
         release and receipt therefor in such form as it shall determine.

         Unfunded Plan. Insofar as it provides for Awards of cash and Stock, the
         Plan shall be unfunded. Although bookkeeping accounts may be
         established with respect to Holders who are entitled to cash, Stock or
         rights thereto under the Plan, any such accounts shall be used merely
         as a bookkeeping convenience.

         No Guarantee of Interests. Neither the Committee nor the corporation
         guarantees the Stock of the Corporation from loss or depreciation.

         Payment of Expenses. All expenses incident to the administration,
         termination, or protection of the Plan, including, but not limited to,
         legal and accounting fees, shall be paid by the Corporation or its
         Subsidiaries; provided, however, the Corporation or a Subsidiary may

                                       13
<PAGE>
         recover any and all damages, fees, expenses, and costs arising out of
         any actions taken by the Corporation to enforce its rights under this
         Plan.

         Severability. If any provision of this Plan is held to be illegal or
         invalid for any reason, the illegality or invalidity shall not affect
         the remaining provisions hereof, but such provision shall be fully
         severable and the Plan shall be construed and enforced as if the
         illegal or invalid provision had never been included herein.

         Notices. Whenever any notice is required or permitted hereunder, such
         notice must be in writing and personally delivered or sent by mail. Any
         notice required or permitted to be delivered hereunder shall be deemed
         to be delivered on the of the date on which it is personally delivered
         or, if earlier (only for notices to Holders), on the third Business Day
         after it is deposited in the United States mail, postage prepaid,
         addressed to the person who is to receive it at the address which such
         person has theretofore specified by written notice delivered in
         accordance herewith, whether such notice is actually received or not.
         The Corporation or a Holder may change, at any time and from time to
         time, by written notice to the other, the address which it or the
         Holder had previously specified for receiving notices. Until changed in
         accordance herewith, the Corporation and each Holder shall specify as
         its and the Holder's address for receiving notices the address set
         forth in the Agreement pertaining to the shares to which such notice
         relates.

         Waiver of Notice. Any person entitled to notice hereunder may waive
         such notice.

         Successors. The Plan shall be binding upon the Holder, the Holder's
         legal representatives, heirs, legatees, and distributees, upon the
         Corporation, its successors, and assigns, and upon the Committee, and
         its successors.

         Headings. The titles and headings of Sections and Paragraphs are
         included for convenience of reference only and are not to be considered
         in construction of the provisions hereof.

         Governing Law. All questions arising with respect to the provisions of
         the Plan shall be determined by application of the laws of the State of
         Texas except to the extent Texas law is preempted by federal law.

         IN WITNESS WHEREOF, Texas United Bancshares, Inc., acting by and
through its officer hereunto duly authorized, has executed this instrument and
certifies that its Effective Date is the 28 day of July, 1998.

                                              TEXAS UNITED BANCSHARES, INC.

                                              By: /s/ L. Don Stricklin
                                                 ------------------------------
                                                 Chief Executive Officer

                                       14<PAGE>

                                                                     EXHIBIT 4.1

NUMBER                                                  SHARES
MS - [ ]                                                 [ ]
                                                   CUSIP 58505Y 10 3
                                         SEE REVERSE FOR CERTAIN DEFINITIONS

                          MEDSOURCE TECHNOLOGIES, INC.

              INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

THIS CERTIFIES that

IS THE OWNER OF

FULLY PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, PAR VALUE $0.01 PER SHARE
OF MEDSOURCE TECHNOLOGIES, INC. (the "Corporation") transferable on the books of
the Corporation by the holder hereof in person or by duly authorized Attorney
upon surrender of this certificate properly endorsed. This certificate is not
valid until countersigned by the Transfer Agent and Registrar.

WITNESS, the facsimile seal of the Corporation and the facsimile signatures of
its duly authorized officers.

Dated:

[SEAL]

----------------------------             ---------------------------------------
SECRETARY                                CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Countersigned and Registered:

     U.S. BANK, N.A., MILWAUKEE, WI

               Transfer Agent and Registrar

By:
   ---------------------------------
               Authorized Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]