Document:

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                                                                    EXHIBIT 10.2

                            INTERALLIED GROUP, INC.

                           2001 STOCK INCENTIVE PLAN
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                            INTERALLIED GROUP, INC.
                           2001 STOCK INCENTIVE PLAN

         Section 1. Purpose.

         The purpose of the Plan is to promote the interests of the Company and
its shareholders by aiding the Company in attracting and retaining employees,
officers, consultants, independent contractors and non-employee directors
capable of assuring the future success of the Company, to offer such persons
incentives to put forth maximum efforts for the success of the Company's
business and to afford such persons an opportunity to acquire a proprietary
interest in the Company.

         Section 2. Definitions.

         As used in the Plan, the following terms shall have the meanings set
forth below:

   (a)   "Affiliate" shall mean (i) any entity that, directly or indirectly
through one or more intermediaries, is controlled by the Company and (ii) any
entity in which the Company has a significant equity interest, in each case as
determined by the Committee.

   (b)   "Award" shall mean any Option, Stock Appreciation Right, Restricted
Stock, Restricted Stock Unit, Performance Award, Other Stock Grant or Other
Stock-Based Award granted under the Plan.

   (c)   "Award Agreement" shall mean any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan.

   (d)   "Board" shall mean the Board of Directors of the Company.

   (e)   "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and any regulations promulgated thereunder.

   (f)   "Committee" shall mean a committee of Directors designated by the
Board to administer the Plan. The Committee shall be comprised of not less than
such number of Directors as shall be required to permit Awards granted under the
Plan to qualify under Rule 16b-3, and each member of the Committee shall be a
"Non-Employee Director" within the meaning of Rule 16b-3 and an "outside
director" within the meaning of Section 162(m) of the Code. The Company expects
to have the Plan administered in accordance with the requirements for the award
of "qualified performance-based compensation" within the meaning of Section
162(m) of the Code.

   (g)   "Company" shall mean Interallied Group Inc., a North Carolina
corporation, and any successor corporation.

   (h)   "Director" shall mean a member of the Board.

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   (i)   "Eligible Person" shall mean any employee, officer, consultant,
independent contractor or Director providing services to the Company or any
Affiliate whom the Committee determines to be an Eligible Person.

   (j)   "Fair Market Value" shall mean, with respect to any property
(including, without limitation, any Shares or other securities), the fair market
value of such property determined by such methods or procedures as shall be
established from time to time by the Committee. Notwithstanding the foregoing,
unless otherwise determined by the Committee, the Fair Market Value of Shares as
of a given date shall be, if the Shares are then quoted on The Nasdaq Stock
Market, Inc., the average of the high and low sales price as reported on The
Nasdaq Stock Market, Inc. on such date or, if The Nasdaq Stock Market, Inc. is
not open for trading on such date, on the most recent preceding date when it is
open for trading.

   (k)   "Incentive Stock Option" shall mean an option granted under Section
6(a) of the Plan that is intended to meet the requirements of Section 422 of the
Code or any successor provision.

   (l)   "Non-Qualified Stock Option" shall mean an option granted under
Section 6(a) of the Plan that is not intended to be an Incentive Stock Option.

   (m)   "Option" shall mean an Incentive Stock Option or a Non-Qualified
Stock Option, and shall include Reload Options.

   (n)   "Other Stock Grant" shall mean any right granted under Section 6(e)
of the Plan.

   (o)   "Other Stock-Based Award" shall mean any right granted under Section
6(f) of the Plan.

   (p)   "Participant" shall mean an Eligible Person designated to be granted
an Award under the Plan.

   (q)   "Performance Award" shall mean any right granted under Section 6(d)
of the Plan.

   (r)   "Person" shall mean any individual, corporation, partnership,
association or trust.

   (s)   "Plan" shall mean the Interallied Group, Inc. 2001 Stock Incentive
Plan, as amended from time to time, the provisions of which are set forth
herein.

   (t)   "Reload Option" shall mean any Option granted under Section 6(a)(iv)
of the Plan.

   (u)   "Restricted Stock" shall mean any Shares granted under Section 6(c)
of the Plan.

   (v)   "Restricted Stock Unit" shall mean any unit granted under Section
6(c) of the Plan evidencing the right to receive a Share (or a cash payment
equal to the Fair Market Value of a Share) at some future date.

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   (w)   "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended, or
any successor rule or regulation.

   (x)   "Shares" shall mean shares of Common Stock, $0.01 par value per
share, of the Company or such other securities or property as may become subject
to Awards pursuant to an adjustment made under Section 4(c) of the Plan.

   (y)   "Stock Appreciation Right" shall mean any right granted under Section
6(b) of the Plan.

         Section 3. Administration.

   (a)   Power and Authority of the Committee. The Plan shall be administered
by the Committee. Subject to the express provisions of the Plan and to
applicable law, the Committee shall have full power and authority to: (i)
designate Participants; (ii) determine the type or types of Awards to be granted
to each Participant under the Plan; (iii) determine the number of Shares to be
covered by (or with respect to which payments, rights or other matters are to be
calculated in connection with) each Award; (iv) determine the terms and
conditions of any Award or Award Agreement; (v) amend the terms and conditions
of any Award or Award Agreement and accelerate the exercisability of Options or
the lapse of restrictions relating to Restricted Stock, Restricted Stock Units
or other Awards; (vi) determine whether, to what extent and under what
circumstances Awards may be exercised in cash, Shares, other securities, other
Awards or other property, or canceled, forfeited or suspended; (vii) determine
whether, to what extent and under what circumstances cash, Shares, promissory
notes, other securities, other Awards, other property and other amounts payable
with respect to an Award under the Plan shall be deferred either automatically
or at the election of the holder thereof or the Committee; (viii) interpret and
administer the Plan and any instrument or agreement, including an Award
Agreement, relating to the Plan; (ix) establish, amend, suspend or waive such
rules and regulations and appoint such agents as it shall deem appropriate for
the proper administration of the Plan; and (x) make any other determination and
take any other action that the Committee deems necessary or desirable for the
administration of the Plan. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the
Committee, may be made at any time and shall be final, conclusive and binding
upon any Participant, any holder or beneficiary of any Award and any employee of
the Company or any Affiliate.

   (b)   Delegation. The Committee may delegate its powers and duties under
the Plan to one or more Directors or a committee of Directors, subject to such
terms, conditions and limitations as the Committee may establish in its sole
discretion.

   (c)   Power and Authority of the Board of Directors. Notwithstanding
anything to the contrary contained herein, the Board may, at any time and from
time to time, without any further action of the Committee, exercise the powers
and duties of the Committee under the Plan.

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         Section 4.  Shares Available for Awards.

   (a)   Shares Available. Subject to adjustment as provided in Section 4(c)
of the Plan, the aggregate number of Shares that may be issued under all Awards
under the Plan shall be 1,200,000. Shares to be issued under the Plan may be
either authorized but unissued Shares or Shares acquired in the open market or
otherwise. Any Shares that are used by a Participant as full or partial payment
to the Company of the purchase price relating to an Award, or in connection with
the satisfaction of tax obligations relating to an Award, shall again be
available for granting Awards (other than Incentive Stock Options) under the
Plan. In addition, if any Shares covered by an Award or to which an Award
relates are not purchased or are forfeited, or if an Award otherwise terminates
without delivery of any Shares, then the number of Shares counted against the
aggregate number of Shares available under the Plan with respect to such Award,
to the extent of any such forfeiture or termination, shall again be available
for granting Awards under the Plan. Notwithstanding the foregoing, the number of
Shares available for granting Incentive Stock Options under the Plan shall not
exceed 1,200,000, subject to adjustment as provided in the Plan and subject to
the provisions of Section 422 or 424 of the Code or any successor provision.

   (b)   Accounting for Awards. For purposes of this Section 4, if an Award
entitles the holder thereof to receive or purchase Shares, the number of Shares
covered by such Award or to which such Award relates shall be counted on the
date of grant of such Award against the aggregate number of Shares available for
granting Awards under the Plan.

   (c)   Adjustments. In the event that the Committee shall determine that any
dividend or other distribution (whether in the form of cash, Shares, other
securities or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the Company
or other similar corporate transaction or event affects the Shares such that an
adjustment is determined by the Committee to be appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan, then the Committee shall, in such manner as it
may deem equitable, adjust any or all of (i) the number and type of Shares (or
other securities or other property) that thereafter may be made the subject of
Awards, (ii) the number and type of Shares (or other securities or other
property) subject to outstanding Awards and (iii) the purchase or exercise price
with respect to any Award; provided, however, that the number of Shares covered
by any Award or to which such Award relates shall always be a whole number.

   (d)   Award Limitations Under the Plan. No Eligible Person may be granted
any Award or Awards under the Plan, the value of which Award or Awards is based
solely on an increase in the value of the Shares after the date of grant of such
Award or Awards, for more than 100,000 Shares (subject to adjustment as provided
for in Section 4(c) of the Plan), in the aggregate in any calendar year. The
foregoing annual limitation specifically

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includes the grant of any Award or Awards representing "qualified performance-
based compensation" within the meaning of Section 162(m) of the Code.

         Section 5. Eligibility.

         Any Eligible Person shall be eligible to be designated a Participant.
In determining which Eligible Persons shall receive an Award and the terms of
any Award, the Committee may take into account the nature of the services
rendered by the respective Eligible Persons, their present and potential
contributions to the success of the Company or such other factors as the
Committee, in its discretion, shall deem relevant. Notwithstanding the
foregoing, an Incentive Stock Option may only be granted to full or part-time
employees (which term as used herein includes, without limitation, officers and
Directors who are also employees), and an Incentive Stock Option shall not be
granted to an employee of an Affiliate unless such Affiliate is also a
"subsidiary corporation" of the Company within the meaning of Section 424(f) of
the Code or any successor provision.

         Section 6. Awards.

   (a)   Options. The Committee is hereby authorized to grant Options to
Participants with the following terms and conditions and with such additional
terms and conditions not inconsistent with the provisions of the Plan as the
Committee shall determine:

         (i)    Exercise Price. The purchase price per Share purchasable
under an Option shall be determined by the Committee; provided, however, that
such purchase price shall not be less than 100% of the Fair Market Value of a
Share on the date of grant of such Option.

         (ii)   Option Term.  The term of each Option shall be fixed by the
Committee.

         (iii)  Time and Method of Exercise. The Committee shall determine
the time or times at which an Option may be exercised in whole or in part and
the method or methods by which, and the form or forms (including, without
limitation, cash, Shares, promissory notes, other securities, other Awards or
other property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the relevant exercise price) in which, payment of the
exercise price with respect thereto may be made or deemed to have been made.

         (iv)   Reload Options. The Committee may grant Reload Options,
separately or together with another Option, pursuant to which, subject to the
terms and conditions established by the Committee, the Participant would be
granted a new Option when the payment of the exercise price of a previously
granted option is made by the delivery of Shares owned by the Participant
pursuant to Section 6(a)(iii) of the Plan or the relevant provisions of another
plan of the Company, and/or when Shares are tendered or withheld as payment of
the amount to be withheld under applicable income tax laws in connection with
the exercise of an Option, which new Option would be an Option to purchase the
number of Shares not exceeding the sum of (A) the number of Shares so provided
as consideration upon the exercise of the previously granted option to which
such Reload

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Option relates and (B) the number of Shares, if any, tendered or withheld as
payment of the amount to be withheld under applicable tax laws in connection
with the exercise of the option to which such Reload Option relates pursuant to
the relevant provisions of the plan or agreement relating to such option. Reload
Options may be granted with respect to Options previously granted under the Plan
or any other stock option plan of the Company or may be granted in connection
with any Option granted under the Plan or any other stock option plan of the
Company at the time of such grant. Such Reload Options shall have a per share
exercise price equal to the Fair Market Value of one Share as of the date of
grant of the new Option. Any Reload Option shall be subject to availability of
sufficient Shares for grant under the Plan.

   (b)   Stock Appreciation Rights. The Committee is hereby authorized to
grant Stock Appreciation Rights to Participants subject to the terms of the Plan
and any applicable Award Agreement. A Stock Appreciation Right granted under the
Plan shall confer on the holder thereof a right to receive upon exercise thereof
the excess of (i) the Fair Market Value of one Share on the date of exercise
(or, if the Committee shall determine, at any time during a specified period
before or after the date of exercise) over (ii) the grant price of the Stock
Appreciation Right as specified by the Committee, which price shall not be less
than 100% of the Fair Market Value of one Share on the date of grant of the
Stock Appreciation Right. Subject to the terms of the Plan and any applicable
Award Agreement, the grant price, term, methods of exercise, dates of exercise,
methods of settlement and any other terms and conditions of any Stock
Appreciation Right shall be as determined by the Committee. The Committee may
impose such conditions or restrictions on the exercise of any Stock Appreciation
Right as it may deem appropriate.

   (c)   Restricted Stock and Restricted Stock Units. The Committee is hereby
authorized to grant Restricted Stock and Restricted Stock Units to Participants
with the following terms and conditions and with such additional terms and
conditions not inconsistent with the provisions of the Plan as the Committee
shall determine:

         (i)    Restrictions. Shares of Restricted Stock and Restricted
Stock Units shall be subject to such restrictions as the Committee may impose
(including, without limitation, a waiver by the Participant of the right to vote
or to receive any dividend or other right or property with respect thereto),
which restrictions may lapse separately or in combination at such time or times,
in such installments or otherwise as the Committee may deem appropriate.

         (ii)   Stock Certificates. Any Restricted Stock granted under the
Plan shall be registered in the name of the Participant and shall bear an
appropriate legend referring to the terms, conditions and restrictions
applicable to such Restricted Stock. In the case of Restricted Stock Units, no
Shares shall be issued at the time such Awards are granted.

         (iii)  Forfeiture. Except as otherwise determined by the Committee,
upon termination of employment (as determined under criteria established by the
Committee) during the applicable restriction period, all Shares of Restricted
Stock and all Restricted Stock Units at such time subject to restriction shall
be forfeited and reacquired by the Company; provided, however, that the
Committee may, when it finds that a waiver would

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be in the best interest of the Company, waive in whole or in part any or all
remaining restrictions with respect to Shares of Restricted Stock or Restricted
Stock Units. Upon the lapse or waiver of restrictions and the restricted period
relating to Restricted Stock Units evidencing the right to receive Shares, such
Shares shall be issued and delivered to the holders of the Restricted Stock
Units.

   (d)   Performance Awards. The Committee is hereby authorized to grant
Performance Awards to Participants subject to the terms of the Plan and any
applicable Award Agreement. A Performance Award granted under the Plan (i) may
be denominated or payable in cash, Shares (including, without limitation,
Restricted Stock and Restricted Stock Units), other securities, other Awards or
other property and (ii) shall confer on the holder thereof the right to receive
payments, in whole or in part, upon the achievement of such performance goals
during such performance periods as the Committee shall establish. Subject to the
terms of the Plan and any applicable Award Agreement, the performance goals to
be achieved during any performance period, the length of any performance period,
the amount of any Performance Award granted, the amount of any payment or
transfer to be made pursuant to any Performance Award and any other terms and
conditions of any Performance Award shall be determined by the Committee.

   (e)   Other Stock Grants. The Committee is hereby authorized, subject to
the terms of the Plan and any applicable Award Agreement, to grant to
Participants Shares without restrictions thereon as are deemed by the Committee
to be consistent with the purpose of the Plan.

   (f)   Other Stock-Based Awards. The Committee is hereby authorized to grant
to Participants subject to the terms of the Plan and any applicable Award
Agreement, such other Awards that are denominated or payable in, valued in whole
or in part by reference to, or otherwise based on or related to, Shares
(including, without limitation, securities convertible into Shares), as are
deemed by the Committee to be consistent with the purpose of the Plan. Shares or
other securities delivered pursuant to a purchase right granted under this
Section 6(f) shall be purchased for such consideration, which may be paid by
such method or methods and in form or forms (including, without limitation,
cash, Shares, promissory notes, other securities, other Awards or other property
or any combination thereof), as the Committee shall determine, the value of
which consideration, as established by the Committee, shall not be less than
100% of the Fair Market Value of such Shares or other securities as of the date
such purchase right is granted.

   (g)   General.

         (i)   No Cash Consideration for Awards. Awards shall be granted for no
cash consideration or for such minimal cash consideration as may be required by
applicable law.

         (ii)  Awards May Be Granted Separately or Together. Awards may, in
the discretion of the Committee, be granted either alone or in addition to, in
tandem with or in substitution for any other Award or any award granted under
any plan of the Company

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or any Affiliate other than the Plan. Awards granted in addition to or in tandem
with other Awards or in addition to or in tandem with awards granted under any
such other plan of the Company or any Affiliate may be granted either at the
same time as or at a different time from the grant of such other Awards or
awards.

         (iii) Forms of Payment under Awards. Subject to the terms of the Plan
and of any applicable Award Agreement, payments or transfers to be made by the
Company or an Affiliate upon the grant, exercise or payment of an Award may be
made in such form or forms as the Committee shall determine (including, without
limitation, cash, Shares, promissory notes, other securities, other Awards or
other property or any combination thereof), and may be made in a single payment
or transfer, in installments or on a deferred basis, in each case in accordance
with rules and procedures established by the Committee. Such rules and
procedures may include, without limitation, provisions for the payment or
crediting of reasonable interest on installment or deferred payments or the
grant or crediting of dividend equivalents with respect to installment or
deferred payments.

         (iv)  Limits on Transfer of Awards. No Award (other than Other
Stock Grants) and no right under any such Award shall be transferable by a
Participant otherwise than by will or by the laws of descent and distribution;
provided, however, that, if so determined by the Committee, a Participant may,
in the manner established by the Committee, transfer Options (other than
Incentive Stock Options) or designate a beneficiary or beneficiaries to exercise
the rights of the Participant and receive any property distributable with
respect to any Award upon the death of the Participant. Each Award or right
under any Award shall be exercisable during the Participant's lifetime only by
the Participant or, if permissible under applicable law, by the Participant's
guardian or legal representative. No Award or right under any such Award may be
pledged, alienated, attached or otherwise encumbered, and any purported pledge,
alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company or any Affiliate.

         (v)   Term of Awards.  The term of each Award shall be for such period
as may be determined by the Committee.

         (vi)  Restrictions; Securities Exchange Listing. All Shares or
other securities delivered under the Plan pursuant to any Award or the exercise
thereof shall be subject to such restrictions as the Committee may deem
advisable under the Plan, applicable federal or state securities laws and
regulatory requirements, and the Committee may cause appropriate entries to be
made or legends to be affixed to reflect such restrictions. If any securities of
the Company are traded on a securities exchange, the Company shall not be
required to deliver any Shares or other securities covered by an Award unless
and until such Shares or other securities have been admitted for trading on such
securities exchange.

         Section 7. Amendment and Termination; Adjustments.

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   (a)   Amendments to the Plan. The Board may amend, alter, suspend,
discontinue or terminate the Plan at any time; provided, however, that,
notwithstanding any other provision of the Plan or any Award Agreement, without
the approval of the shareholders of the Company, no such amendment, alteration,
suspension, discontinuation or termination shall be made that, absent such
approval:

         (i)   would violate the rules or regulations of The Nasdaq Stock
Market, Inc. or any securities exchange upon which the Shares are listed; or

         (ii)  would cause the Company to be unable, under the Code, to grant
Incentive Stock Options under the Plan.

   (b)   Amendments to Awards. The Committee may waive any conditions of or
rights of the Company under any outstanding Award, prospectively or
retroactively. Except as otherwise provided herein or in the Award Agreement,
the Committee may not amend, alter, suspend, discontinue or terminate any
outstanding Award, prospectively or retroactively, if such action would
adversely affect the rights of the holder of such Award, without the consent of
the Participant or holder or beneficiary thereof.

   (c)   Correction of Defects, Omissions and Inconsistencies. The Committee
may correct any defect, supply any omission or reconcile any inconsistency in
the Plan or any Award in the manner and to the extent it shall deem desirable to
carry the Plan into effect.

         Section 8. Income Tax Withholding; Tax Bonuses.

   (a)   Withholding. In order to comply with all applicable federal or state
income tax laws or regulations, the Company may take such action as it deems
appropriate to ensure that all applicable federal or state payroll, withholding,
income or other taxes, which are the sole and absolute responsibility of a
Participant, are withheld or collected from such Participant. In order to assist
a Participant in paying all or a portion of the federal and state taxes to be
withheld or collected upon exercise or receipt of (or the lapse of restrictions
relating to) an Award, the Committee, in its discretion and subject to such
additional terms and conditions as it may adopt, may permit the Participant to
satisfy such tax obligation by (i) electing to have the Company withhold a
portion of the Shares otherwise to be delivered upon exercise or receipt of (or
the lapse of restrictions relating to) such Award with a Fair Market Value equal
to the amount of such taxes or (ii) delivering to the Company Shares other than
Shares issuable upon exercise or receipt of (or the lapse of restrictions
relating to) such Award with a Fair Market Value equal to the amount of such
taxes. The election, if any, must be made on or before the date that the amount
of tax to be withheld is determined.

   (b)   Tax Bonuses. The Committee, in its discretion, shall have the
authority, at the time of grant of any Award under this Plan or at any time
thereafter, to approve cash bonuses to designated Participants to be paid upon
their exercise or receipt of (or the lapse of restrictions relating to) Awards
in order to provide funds to pay all or a portion of federal and state taxes due
as a result of such exercise or receipt (or the lapse of such

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restrictions). The Committee shall have full authority in its discretion to
determine the amount of any such tax bonus.

         Section 9. General Provisions.

   (a)   No Rights to Awards. No Eligible Person, Participant or other Person
shall have any claim to be granted any Award under the Plan, and there is no
obligation for uniformity of treatment of Eligible Persons, Participants or
holders or beneficiaries of Awards under the Plan. The terms and conditions of
Awards need not be the same with respect to any Participant or with respect to
different Participants.

   (b)   Award Agreements. No Participant will have rights under an Award
granted to such Participant unless and until an Award Agreement shall have been
duly executed on behalf of the Company and, if requested by the Company, signed
by the Participant.

   (c)   No Limit on Other Compensation Arrangements. Nothing contained in the
Plan shall prevent the Company or any Affiliate from adopting or continuing in
effect other or additional compensation arrangements, and such arrangements may
be either generally applicable or applicable only in specific cases.

   (d)   No Right to Employment. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company or
any Affiliate, nor will it affect in any way the right of the Company or an
Affiliate to terminate such employment at any time, with or without cause. In
addition, the Company or an Affiliate may at any time dismiss a Participant from
employment free from any liability or any claim under the Plan or any Award,
unless otherwise expressly provided in the Plan or in any Award Agreement.

   (e)   Governing Law.  The validity, construction and effect of the Plan or
any Award, and any rules and regulations relating to the Plan or any Award,
shall be determined in accordance with the laws of the State of Vermont.

   (f)   Severability. If any provision of the Plan or any Award is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction or
would disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to
applicable laws, or if it cannot be so construed or deemed amended without, in
the determination of the Committee, materially altering the purpose or intent of
the Plan or the Award, such provision shall be stricken as to such jurisdiction
or Award, and the remainder of the Plan or any such Award shall remain in full
force and effect.

   (g)   No Trust or Fund Created. Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate and a Participant or any other
Person. To the extent that any Person acquires a right to receive payments from
the Company or any Affiliate pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any
Affiliate.

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   (h)   No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash shall be paid in lieu of any fractional Shares or whether such
fractional Shares or any rights thereto shall be canceled, terminated or
otherwise eliminated.

   (i)   Headings. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the Plan or any provision thereof.

         Section 10. Effective Date of the Plan.

         The Plan was approved by the Board on August 24, 2001, subject to
approval by the shareholders of the Company within twelve (12) months
thereafter. Any Award granted under the Plan prior to shareholder approval of
the Plan shall be subject to shareholder approval of the Plan.

         Section 11. Term of the Plan.

         No Award shall be granted under the Plan after August 23, 2011 or any
earlier date of discontinuation or termination established pursuant to Section
7(a) of the Plan. However, unless otherwise expressly provided in the Plan or in
an applicable Award Agreement, any Award theretofore granted may extend beyond
such date.

                                      11<PAGE>

                                                                     Exhibit 4.4
                                                                     -----------

                       SOUTHERN FINANCIAL BANCORP, INC.
                     1993 STOCK OPTION AND INCENTIVE PLAN
                                  PROSPECTUS

          This prospectus applies to the offer and sale of up to 481,000 shares
of common stock, $.01 par value, of Southern Financial Bancorp, Inc. that are
issuable pursuant to Southern Financial's 1993 Stock Option and Incentive Plan,
plus an indeterminate number of additional shares which may be offered and
issued to prevent dilution resulting from stock splits, stock dividends or
similar transactions as provided in the 1993 Stock Option and Incentive Plan.

                             ____________________

          This document constitutes part of a prospectus covering securities
that have been registered under the Securities Act of 1933, as amended.

          Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities or passed
upon the adequacy or accuracy of this prospectus.  Any representation to the
contrary is a criminal offense.

                             ____________________

          Southern Financial has not authorized anyone to give any information
or to make any representations in connection with this offering other than those
contained in this prospectus.  If given or made, any such other information or
representations may not be relied upon as having been authorized by Southern
Financial.

          This prospectus is not an offer to sell or the solicitation of any
offer to buy nor shall there be any sale of these securities in any jurisdiction
where such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction.

                             ____________________

          Each optionee is encouraged to retain this document for future
reference.

             The date of this prospectus is _______________, 2001.
<PAGE>

                             AVAILABLE INFORMATION

          This prospectus is a prospectus delivered in compliance with the
Securities Act of 1933, as amended. A registration statement under the
Securities Act has been filed with the Securities and Exchange Commission (the
"SEC"), with respect to the common stock of Southern Financial issuable in
connection with the 1993 Stock Option and Incentive Plan. As permitted by the
rules and regulations of the SEC, this prospectus omits certain information
contained in the registration statement on file with the SEC. Southern Financial
will provide without charge to each person to whom a copy of this prospectus is
delivered, on the request of such person, a copy of any of the information that
has been incorporated by reference into this prospectus (other than exhibits to
such information, unless such exhibits are likewise specifically incorporated by
reference). Southern Financial also will provide without charge to each plan
participant, upon request, copies of all reports, proxy statements and other
communications distributed to holders of its common stock generally. Requests
for such information or for additional information about the 1993 Stock Option
and Incentive Plan or its administration should be directed to: Southern
Financial Bancorp, Inc., 37 East Main Street, Warrenton, Virginia 20186,
Attention: Secretary, telephone number (540) 349-3900.

          The following documents, filed by Southern Financial with the SEC
pursuant to the Securities Exchange Act of 1934, as amended, are hereby
incorporated by reference into this prospectus and are deemed to be a part
hereof:

          (a)  Southern Financial Annual Report on Form 10-K for the fiscal year
               ended December 31, 2000, as filed on March 30, 2001;

          (b)  Southern Financial Quarterly Report on Form 10-Q for the fiscal
               quarter ended March 31, 2001; as filed on May 15, 2001;

          (c)  The description of Southern Financial's common stock contained in
               Southern Financial's Registration Statement on Form S-4, as filed
               on June 19, 2000.

          All documents filed by Southern Financial pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Exchange Act subsequent to the date of this
prospectus shall be deemed to be incorporated by reference into this prospectus
and made a part hereof from the date of filing of such documents. Any statements
contained in this prospectus shall be deemed to be modified or superseded to the
extent that a statement contained in a subsequently filed document, which is
deemed to be incorporated by reference herein, modifies or supersedes such
statement. Any statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this prospectus.

                                      -2-
<PAGE>

                           GENERAL PLAN INFORMATION

Summary of the 1993 Stock Option and Incentive Plan
---------------------------------------------------

          The following summary of the 1993 Stock Option and Incentive Plan
outlined below is qualified in its entirety by reference to the full text of the
1993 Stock Option and Incentive Plan, which is set forth in the attached
Appendix A. The major provisions of the 1993 Stock and Incentive Plan are as
follows:

          Purpose. The purpose of the 1993 Stock Option and Incentive Plan is to
maximize the long-term success of Southern Financial, to ensure a balanced
emphasis on both current and long-term performance, to enhance participants'
identification with shareholders' interests and to facilitate the attraction and
retention of key individuals with outstanding abilities. The 1993 Stock Option
and Incentive Plan provides for the grant of options to purchase shares of
Southern Financial's common stock to employees of Southern Financial and its
subsidiaries and to non-employee directors of Southern Financial who have made
or are capable of making a substantial contribution to the success of Southern
Financial.

          Term. The 1993 Stock Option and Incentive Plan will terminate on
September 28, 1993, unless terminated earlier by the Board of Directors of
Southern Financial.

          Administration. The 1993 Stock Option and Incentive Plan is
administered by the Committee, which is composed of three or more disinterested
directors. The Committee has the sole discretion, subject to certain
limitations, to interpret the 1993 Stock Option and Incentive Plan to (i) select
participants and grant awards; (ii) determine the number of shares to be subject
to types of awards generally, as well as to individual awards granted under the
1993 Stock Option and Incentive Plan; (iii) determine the terms and conditions
upon which awards shall be granted under the 1993 Stock Option and Incentive
Plan; (iv) prescribe the form and terms of instruments evidencing such grants;
(v) establish from time to time regulations for the administration of the 1993
Stock Option and Incentive Plan; (vi) interpret the 1993 Stock Option and
Incentive Plan; and (vii) make all determinations deemed necessary or advisable
for the administration of the 1993 Stock Option and Incentive Plan. All
determinations of the Committee are conclusive. All expenses administering the
Stock Option and Incentive Plan are borne by the Company.

          Eligibility. Any officer or employee of Southern Financial or its
subsidiaries who, in the judgment of the Committee, can be expected to
contribute significantly to the successful performance or growth of Southern
Financial or a subsidiary is eligible to participate in the 1993 Stock Option
and Incentive Plan. Non-employee directors of Southern Financial or are eligible
for automatic options.

          Options. The 1993 Stock Option and Incentive Plan permits the
Committee to grant, in its discretion, incentive stock options and nonqualified
stock options. Stock options designated as incentive stock options are intended
to comply with Section 422 of the Internal Revenue Code of 1986, as amended (the
"Internal Revenue Service"). Officers and employees of Southern Financial and
its subsidiaries are eligible to receive either incentive stock options or
nonqualified

                                      -3-
<PAGE>

stock options under the 1993 Stock Option and Incentive Plan. Non-employee
directors of Southern Financial may only receive nonqualified stock options
under the 1993 Stock Option and Incentive Plan.

          The Committee determines the exercise price per share of the options,
but the price will in no event be less than the market value (as defined in the
1993 Stock Option Incentive Plan) of a share of common stock on the date the
stock option is granted.

          Options may be exercised in whole at anytime, or in part from time to
time with respect to whole shares only, within the period permitted for exercise
and shall be exercised by written notice to Southern Financial.  Payment for
shares of common stock purchased upon exercise of an option shall be made in
cash or in such other form as the Committee may permit.  In addition, Southern
Financial may, in its sole discretion, withhold or require an optionee to pay or
reimburse Southern Financial for any taxes which Southern Financial determines
are required to be withheld in connection with the grant or any exercise of an
option.

          During the lifetime of a recipient of options, their award, right or
interest under the 1993 Stock Option and Incentive Plan may not be assigned,
encumbered or transferred.

          Restricted Stock Awards.  The 1993 Stock Option and Incentive Plan
authorizes the grant to officers and employees (but not to non-employee
directors) of shares of the Southern Financial's stock which contains certain
restrictions on the full enjoyment of those shares.

          Restricted stock may not be disposed of by the recipient until certain
restrictions established by the Committee lapse.  The restrictions may take the
form of a period of restriction during which the recipient must remain employed
or may require the achievement of one or more preestablished performance
criteria within a certain time period in order to be fully vested in the shares.
The performance criteria may be stated in terms of the value of the stock,
return on equity, earnings per share, total earnings, earnings growth, return on
assets, or return on capital or other similar criteria or combination thereof.

          Recipients of restricted stock are not required to provide
consideration other than the rendering of services. Recipients generally have,
with respect to the restricted stock, all the rights of a shareholder of
Southern Financial, including the right to vote the shares, and, unless
otherwise provided in the option agreement, the right to receive any cash
dividends on the shares.

          Upon termination of employment while restricted stock is subject to
restrictions for reasons other than death, disability, or retirement, shares of
restricted stock are forfeited subject to such exceptions, if any, as are
authorized by the Committee and set forth in the option agreement. Similarly,
shares of restricted stock are also forfeited if any performance criteria
established with respect to such awards are not achieved within the required
time period.

                                      -4-
<PAGE>

     Automatic Option Grants to Non-Employee Directors.  Each non-employee
director serving on the Board of Southern Financial will receive an automatic
non-qualified stock option grant covering 1,000 shares on the first business day
after the first meeting of the Board of Directors of Southern Financial
following each annual meeting of its stockholders.  The Committee may reduce the
number of shares in the automatic grant for non-employee directors as it
determines from time to time.  Southern Financial currently has 10 non-employee
directors.

     The exercise price of automatic option grants is 100% of fair market value
of the shares on the automatic grant date.  Unless otherwise provided in the
governing agreement, each award of options becomes exercisable on the first
anniversary of the applicable automatic grant date.

     Except as otherwise described in this subsection, automatic awards to non-
employee directors are subject to the same terms and conditions as other awards
made under the 1993 Stock Option and Incentive Plan.

     Amendment Or Termination.  The Board of Directors may terminate and in any
respect amend or modify the 1993 Stock Option and Incentive Plan, except that
shareholder approval is required in order to (i) materially increase the total
number of shares of common stock available under the 1993 Stock Option and
Incentive Plan (unless such increase is a result of changes in capitalization as
described in the 1993 Stock Option and Incentive Plan), (ii) materially increase
the benefits accruing to participants under the plan, or (iii) change the class
of persons eligible to participate in the plan.

Employee Retirement Income Security Act of 1974
-----------------------------------------------

     The 1993 Stock Option and Incentive Plan is not subject to any provisions
of the Employee Retirement Income Security Act of 1974 and is not intended to be
qualified under Section 401(a) of the Internal Revenue Code.

Resale Restrictions
-------------------

     Shares of common stock issued on the exercise of an option granted pursuant
to the 1993 Stock Option and Incentive Plan are freely tradable unless the
optionee is deemed to be an "affiliate" of Southern Financial (as defined
herein) at the time of such trade.  Thus, an optionee who is not an affiliate
may resell the shares of common stock acquired by such optionee upon exercise of
an option without any restrictions unless otherwise restricted by the Board of
Directors of Southern Financial.

     An affiliate of Southern Financial is a person that directly, or indirectly
through one or more intermediate, controls, is controlled by, or is under common
control with, Southern Financial.  Thus, an optionee would be deemed to be an
affiliate if that individual is considered to be in such a "control"
relationship with Southern Financial.  For example, any director or executive
officer of an entity which is an affiliate of Southern Financial also may be
considered an affiliate of Southern Financial.

                                      -5-
<PAGE>

     An optionee who is an affiliate of Southern Financial may resell publicly
the shares of common stock such optionee obtains upon exercise of an option by
complying with the conditions of Rule 144 under the Securities Act.  Generally,
Rule 144 provides that if certain conditions are met, such as a one-year holding
period, manner and notice of sale requirements, and the availability of current
information about Southern Financial, an affiliate of Southern Financial may
sell, within any three-month period, such number of shares of common stock that
does not exceed the greater of (i) one percent of the then outstanding shares of
Southern Financial common stock, or (ii) the average weekly trading volume of
the then outstanding shares of Southern Financial common stock during the four
calendar weeks next preceding each such sale.  In addition, an optionee who is
an affiliate of Southern Financial may resell the shares of common stock in a
private transaction, provided that the purchaser understands that he is
acquiring "restricted securities" which are subject to a one-year holding period
and thereafter are subject to the same limitations on resale that applied to the
seller (the optionee).

Tax Treatment
-------------

     Incentive Stock Options.  Under the Internal Revenue Code, an employee
generally recognizes no regular taxable income as a result of the grant or
exercise of incentive stock options within the meaning of Section 422 of the
Internal Revenue Code.  However, an amount equal to the difference between the
fair market value of the stock on the date of exercise and the exercise price
will be treated as an item of adjustments in the year of exercise for purposes
of the alternative minimum tax.

     Southern Financial will not be allowed a deduction for federal income tax
purposes in connection with the grant or exercise of an incentive stock option,
regardless of the applicability of the alternative minimum tax to the optionee.
Southern Financial will be entitled to a deduction, however, to the extent that
ordinary income is recognized by the optionee upon a disqualifying disposition
(see below).

     Upon a sale or exchange of the shares at least two years after the grant of
an incentive stock option and one year after exercise of the option, gain or
loss will be recognized by the optionee equal to the difference between the sale
price and the exercise price.  Such gain or loss will not be characterized for
federal income tax purposes as long-term capital gain or loss.  Southern
Financial is not entitled to any deduction under these circumstances.

     If any optionee disposes of shares acquired upon issuance of an incentive
stock option prior to completion of either of the above holding periods, the
optionee will have made a "disqualifying disposition" of the shares.  In such
event, the optionee will recognize ordinary income at the time of disposition
equal to the difference between the exercise price and the lower of the fair
market value of the stock at the date of the option exercise or the sale price
of the stock.  Southern Financial generally will be entitled to a deduction in
the same amount as the ordinary income recognized by the optionee on a
disqualifying dispositions.

                                      -6-
<PAGE>

     If the sale price of the stock is lower than the exercise price, the
optionee generally will be entitled to a capital loss equal to the difference.
If the sale price of the stock exceeds the fair market value of the stock on the
date of option exercise, the optionee will recognize capital gain on such
disqualifying disposition in an amount equal to the difference between (i) the
amount realized by the optionee upon such disqualifying disposition of the stock
and (ii) the exercise price, increased by the total amount of ordinary course,
if any, recognized by the optionee upon such disqualifying disposition (as
described in the second sentence of the preceding paragraph).  Any such capital
gain or loss resulting from a disqualifying disposition of shares acquired upon
exercise of an incentive stock option will be long-term capital gain or loss if
the shares with respect to which such gain or loss is realized have been held
for more than twelve months.

     Nonqualified Stock Option.  An optionee generally recognizes no taxable
income as the result of the grant of a nonqualified stock option, assuming that
the option does not have a readily ascertainable fair market value at the time
it is granted (which is usually the case with plans of this type).  Upon
exercise of a nonqualified stock option, an optionee will normally recognize
ordinary compensation income for federal tax purposes equal to the excess, if
any, of the then fair market value of the shares over the exercise price.
Optionees who are employees will be subject to withholding with respect to
income recognized upon exercise of a nonqualified stock option.

     Southern Financial will be entitled to a tax deduction to the extent and in
the year that ordinary income is recognized by the exercising optionee, so long
as the optionee's total compensation is deemed reasonable in amount.

     Upon a sale of shares acquired pursuant to the exercise of a nonqualified
stock option, any difference between the sale price and the fair market value of
the shares on the date of exercise will be treated as capital gain or loss, and
will qualify for long-term capital gain or loss treatment if the shares have
been held for more than twelve months.

     Restricted Stock.  A recipient of restricted stock is not required to
include the fair market value of such shares in ordinary income until the first
time his right in the shares is transferable or is not subject to a substantial
risk of forfeiture, whichever occurs earlier, unless he elects to be taxed on
receipt of the shares.

     With respect to awards granted under the 1993 Stock Option and Incentive
Plan that are settled either in cash or in stock or other property that is
either transferable or not subject to substantial risk of forfeiture, the
recipient recognizes ordinary income at the time of receipt of the cash, stock,
or other property.  In the circumstances described in this paragraph, the amount
of such income is equal to the amount of cash received, or the excess of the
fair market value of the shares or other property received at the time the
income is recognized over the amount (if any) paid for the shares or other
property.  Receipts of Restricted Stock will be subject to withholding with
respect to income recognized in connection with Restricted Stock.

     Southern Financial will be entitled to a deduction in the amount of the
ordinary income recognized by the recipient for the employer's taxable year
which includes the last day of the recipient's taxable year in which he
recognizes such income.

                                      -7-
<PAGE>

     Other Income Tax Information. The rules governing the tax treatment of
awards that may be granted under the 1993 Stock Option and Incentive Plan are
quite technical, so that the above description of tax consequences is
necessarily general in nature and does not purport to be complete. Moreover,
statutory provisions are, of course, subject to change, as are their
interpretations, and their application may vary in individual circumstances.
Section 162(m) of the Internal Revenue Code places certain limitations on the
Southern Financial's ability to deduct compensation paid to its executive
officers under certain circumstances, including compensation which may be
payable pursuant to the 1993 Stock Option and Incentive Plan.

     Finally, the tax consequences under applicable state laws may not be the
same as under the federal income tax laws.

                                      -8-
<PAGE>

                                  APPENDIX A

 This document constitutes part of a prospectus covering securities that have
         been registered under the Securities Act of 1933, as amended

                             ____________________

                       SOUTHERN FINANCIAL BANCORP, INC.
                     1993 Stock Option and Incentive Plan
                       (As Amended and Restated in 2001)

                                      -9-

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