Document:

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                                                                     EXHIBIT 4.8

                       NONQUALIFIED STOCK OPTION AGREEMENT
                                   (DIRECTOR)

      This Nonqualified Stock Option Agreement ("Option Agreement") is between
Century Bancshares, Inc., a Delaware corporation (the "Company"), and
_______________ ("Optionee").

                                   WITNESSETH:

      WHEREAS, the Company has heretofore adopted the Century Bancshares, Inc.
2000 Stock Awards Plan (the "Awards Plan") for the purpose of providing
employees and directors of the Company and Century National Bank (the "Bank")
(as defined in the Awards Plan) with additional incentive to promote the success
of the business, to increase their proprietary interest in the success of the
Company, and to encourage them to remain in the employ or remain as a director
of the Company and the Bank; and

      WHEREAS, the Company, acting through the Compensation Committee designated
by the Board of Directors (the "Committee"), has determined that its interests
will be advanced by the issuance to Optionee of nonqualified stock options under
the Awards Plan;

      NOW THEREFORE, for and in consideration of these premises it is agreed as
follows:

      1. Options. Subject to the terms and conditions contained herein, the
Company hereby irrevocably grants to Optionee the right and option ("Options")
to purchase from the Company _____________ shares of the Company's common stock,
$1.00 par value ("Common Stock"), at a price of __________ per share, which is
deemed to be not less than the fair market value of the Common Stock at the date
of grant of the Options.

      2. Option Period; Vesting. The Options herein granted may be exercised by
Optionee in whole or in part at any time during the period beginning on the date
hereof, and ending ten (10) years after the date hereof (the "Option Period").

      3. Procedure for Exercise. The Options herein granted may be exercised by
written notice by Optionee to the Secretary of the Company setting forth the
number of shares of Common Stock with respect to which the Options are to be
exercised accompanied by payment for the shares to be purchased, and specifying
the address to which the certificate for such shares is to be mailed. Payment
shall be in the form of cash, or a cashier's check, bank draft, postal or
express money order payable to the order of the Company or, at the option of
Optionee, shares of Common Stock theretofore owned by Optionee (or a combination
of cash and Common Stock). As promptly as practicable after receipt of such
written notification and payment, the Company shall deliver to Optionee
certificates for the number of shares of Common Stock with respect to which such
Options have been so exercised.
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      4. Termination of Employment. If Optionee's employment with the Company or
the Bank is terminated during the Option Period for any reason other than death
or disability or if Optionee ceases to serve on the Board of the Company or the
Bank during the Option Period for any reason other than death or disability,
Options granted to him or her hereunder which are not exercisable on such date
thereupon terminate except as hereinafter provided. Any Options which are
exercisable on the date of his or her termination of employment or cessation
from the Board shall be exercisable during a three-month period beginning on
such date; provided, however, if Optionee's termination of employment or
cessation from the Board is due to Optionee's dishonesty, theft, embezzlement
from the Company or the Bank, disclosing trade secrets of the Company or the
Bank, willful violation of any rules of the Company or the Bank pertaining to
the conduct of individuals performing services for the Company or the Bank, or
the commission of a willful felonious act while in the employment of the Company
or the Bank or while serving on the Board, then any option or unexercised
portion thereof granted to Optionee, shall expire upon such termination.

      5. Disability or Death. In the event of the determination of disability or
death of an Optionee under the Awards Plan while he or she is employed by the
Company or while he or she serves on the Board, all Options hereunder
exercisable at the date of such disability or death shall be thereafter
exercisable by Optionee, the guardian of his or her estate, his or her executor
or administrator, or the person or persons to whom his or her rights under this
Option Agreement shall pass by will or by the laws of descent and distribution,
as the case may be, for a period of one year from the date of Optionee's
disability or death, unless this Option Agreement should earlier terminate in
accordance with its other terms. In no event may any Options be exercised after
the end of the Option Period. Optionee shall be deemed to be disabled if, in the
opinion of a physician selected by the Committee, he or she is incapable of
performing services for the Company or the Bank of the kind he or she was
performing at the time the disability occurred by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or to be of long, continued and indefinite duration. The date of
determination of disability for purposes hereof shall be the date of such
determination by such physician.

      6. Transferability. Neither the Options granted hereunder nor any rights
or benefits of Optionee under this Option Agreement shall be transferable by
Optionee otherwise than by Optionee's will or by the laws of descent and
distribution. During the lifetime of Optionee, the Options shall be exercisable
only by him or her. Any heir or legatee of Optionee shall take rights herein
granted subject to the terms and conditions hereof. No such transfer of this
Option Agreement to heirs or legatees of Optionee shall be effective to bind the
Company unless the Company shall have been furnished with written notice thereof
and a copy of such evidence as the Committee may deem necessary to establish the
validity of the transfer and the acceptance by the transferee or transferees of
the terms and conditions hereof.

      7. No Rights as Stockholder. Optionee shall have no rights as a
stockholder with respect to any shares of Common Stock covered by this Option
Agreement until the date of issuance of a certificate for shares of Common Stock
purchased pursuant to this Option Agreement. Until such time, Optionee shall not
be entitled to dividends or to vote at meetings of the stockholders of the
Company. Except as provided in paragraph 9 hereof, no adjustment shall

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be made for dividends (ordinary or extraordinary, whether in cash or securities
or other property) paid or distributions or other rights granted in respect of
any share of Common Stock for which the record date for such payment,
distribution or grant is prior to the date upon which Optionee shall have been
issued share certificates, as provided hereinabove.

      8. Extraordinary Corporate Transactions. If the Company recapitalizes or
otherwise changes its capital structure, or merges, consolidates, sells all of
its assets or dissolves (each of the foregoing a "Fundamental Change"), then
thereafter upon any exercise of the Options granted hereunder Optionee shall be
entitled to purchase under such option, in lieu of the number of shares of
Common Stock as to which Options shall then be exercisable, the number and class
of shares of stock and securities to which Optionee would have been entitled
pursuant to the terms of the Fundamental Change if, immediately prior to such
Fundamental Change, Optionee had been the holder of record of the number of
shares of Common Stock as to which such Options are then exercisable. If the
Company shall not be the surviving entity upon the occurrence of a Fundamental
Change the Options granted hereunder shall be governed by subparagraph 6(j) of
the Awards Plan.

      9. Changes in Capital Structure. The existence of outstanding Options
shall not affect in any way the right or power of the Company or its
shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company's capital structure or its
business, or any merger or consolidation of the Company, or any issuance of
Common Stock or subscription rights thereto, or any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common
Stock or the rights thereof, or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceedings, whether of a similar character or otherwise.
If the outstanding shares of Common Stock of the Company shall at any time be
changed or exchanged by declaration of a stock dividend, stock split,
combination of shares, or recapitalization, the number and kind of shares
subject to the Awards Plan or subject to any Options theretofore granted, and
the Option prices, shall be appropriately and equitably adjusted so as to
maintain the proportionate number of shares without changing the aggregate
Option price.

      10. Compliance With Securities Laws. Upon the acquisition of any shares
pursuant to the exercise of the Options herein granted, Optionee (or any person
acting under paragraph 6) will enter into such written representations,
warranties and agreements as the Company may reasonably request in order to
comply with applicable securities laws or with this Option Agreement.

      11. Compliance With Laws. Notwithstanding any of the other provisions
hereof, Optionee agrees that he or she will not exercise the Options granted
hereby, and that the Company will not be obligated to issue any shares pursuant
to this Option Agreement, if the exercise of the Options or the issuance of such
shares of Common Stock would constitute a violation by Optionee or by the
Company of any provision of any law or regulation of any governmental authority.

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      12. Withholding of Tax. To the extent that the exercise of the Options
granted hereunder or the disposition of shares of Common Stock acquired by
exercise of the Options results in compensation income to Optionee for federal
or state income tax purposes, Optionee shall pay to the Company at the time of
such exercise or disposition (or such other time as the law permits if Optionee
is subject to Section 16(b) of the Securities Exchange Act of 1934, as amended)
such amount of money as the Company may require to meet its obligation under
applicable tax laws or regulations; and, if Optionee fails to do so, the Company
is authorized to withhold from any cash remuneration then or thereafter payable
to Optionee, any tax required to be withheld by reason of such resulting
compensation income or Company may otherwise refuse to issue or transfer any
shares otherwise required to be issued or transferred pursuant to the terms
hereof. Payment of the withholding tax by Optionee shall be made in accordance
with Section 14(c) of the Awards Plan.

      13. Resolution of Disputes. As a condition of the granting of the Options
hereby, Optionee and his or her heirs and successors agree that any dispute or
disagreement which may arise hereunder shall be determined by the Committee in
its sole discretion and judgment, and that any such determination and any
interpretation by the Committee of the terms of this Option Agreement shall be
final and shall be binding and conclusive, for all purposes, upon the Company,
Optionee, his or her heirs and personal representatives.

      14. Legends on Certificate. The certificates representing the shares of
Common Stock purchased by exercise of any Options will be stamped or otherwise
imprinted with legends in such form as the Company or its counsel may require
with respect to any applicable restrictions on sale or transfer and the stock
transfer records of the Company will reflect stop-transfer instructions with
respect to such shares.

      15. Notices. Every notice hereunder shall be in writing and shall be given
by registered or certified mail. All notices of the exercise of any Options
hereunder shall be directed to Century Bancshares, Inc. 1275 Pennsylvania
Avenue, N.W., Washington, D.C. Attention: Corporate Secretary. Any notice given
by the Company to Optionee directed to him or her at his or her address on file
with the Company shall be effective to bind him or her and any other person who
shall acquire rights hereunder. The Company shall be under no obligation
whatsoever to advise Optionee of the existence, maturity or termination of any
of Optionee's rights hereunder and Optionee shall be deemed to have familiarized
himself or herself with all matters contained herein and in the Awards Plan
which may affect any of Optionee's rights or privileges hereunder.

      16. Construction and Interpretation. Whenever the term "Optionee" is used
herein under circumstances applicable to any other person or persons to whom
this award, in accordance with the provisions of paragraph 6 hereof, may be
transferred, the word "Optionee" shall be deemed to include such person or
persons.

      17. Agreement Subject to Awards Plan. This Option Agreement is subject to
the Awards Plan. The terms and provisions of the Awards Plan (including any
subsequent amendments thereto) are hereby incorporated herein by reference
thereto. In the event of a conflict between

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any term or provision contained herein and a term or provision of the Awards
Plan, the applicable terms and provisions of the Awards Plan will govern and
prevail. All definitions of words and terms contained in the Awards Plan shall
be applicable to this Option Agreement.

      18. Employment Relationship. Employees shall be considered to be in the
employment of the Company as long as they remain employees of the Company or the
Bank. Any questions as to whether and when there has been a termination of such
employment and the cause of such termination shall be determined by the
Committee, and its determination shall be final. Nothing contained herein shall
be construed as conferring upon Optionee the right to continue in the employ of
the Company, nor shall anything contained herein be construed or interpreted to
limit the "employment at will" relationship between Optionee and the Company.

      19. Binding Effect. This Option Agreement shall be binding upon and inure
to the benefit of any successors to the Company and all persons lawfully
claiming under Optionee.

      IN WITNESS WHEREOF, this Option Agreement has been executed and is
effective as of the _______ day of _____________, 200__.

                                    CENTURY BANCSHARES, INC.

                                    By:
                                       ---------------------------
                                    Name:
                                    Title:
ATTEST:

-----------------------------
Name:
Title:
                                    OPTIONEE

                                    ------------------------------
                                    Name:

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                                                                     EXHIBIT 4.9

                            CENTURY BANCSHARES, INC.
                       2001 NONQUALIFIED STOCK OPTION PLAN

                                   I. PURPOSE

         The purpose of the Century Bancshares, Inc. 2001 Nonqualified Stock
Option Plan (the "Plan") is to provide a means through which Century Bancshares,
Inc., a Delaware corporation (the "Company"), and its Affiliates may (i) attract
and retain in the service of the Company persons of training, experience and
ability, (ii) encourage a sense of proprietorship in such persons through stock
ownership, and (iii) stimulate such persons to exert their maximum efforts for
the welfare of the Company through the additional incentive and reward
opportunities provided by the Plan. Accordingly, the Plan provides for granting
Nonqualified Stock Options to the Eligible Participants, as provided herein.

                                 II. DEFINITIONS

         The following definitions shall be applicable throughout the Plan
unless specifically modified by any paragraph:

         (a) "Affiliate" means any "parent corporation" of the Company and any
"subsidiary" of the Company within the meaning of Code Sections 424(e) and (f),
respectively, and any entity which directly or indirectly through one or more
intermediaries controls, is controlled by, or is under common control with, the
Company.

         (b) "Bank" means Century National Bank, a national banking association.

         (c) "Board" means the Board of Directors of the Company.

         (d) "Change of Control" means the occurrence of any of the following
events: (i) a change in the Company's status requiring prior notice to the Board
of Governors of the Federal Reserve System and/or the Office of the Comptroller
of the Currency pursuant to the Change in Bank Control Act of 1978 and
regulations, 12 C.F.R. Section 5.50 and 225.41, promulgated thereunder; or (ii)
the acquisition by any person or group of persons (as such terms are defined and
used in Sections 3(a)(9) and 14(d)(2), respectively, of the 1934 Act) of
beneficial ownership (as defined in Rule 13d-3 issued under the 1934 Act),
directly or indirectly, of securities representing more than fifty percent (50%)
of the combined voting power of the then outstanding voting securities of the
Company or Bank entitled to vote generally in the election of directors ("Voting
Securities"); or (iii) individuals who constitute the Board of the Company on
the date of this Plan ("Incumbent Board") cease for any reason to constitute at
least a majority of that Board, provided that any person becoming a director
subsequent to the date of this Plan whose election or whose nomination for
election by the Company's stockholders was approved by a majority vote of the
directors comprising the Incumbent Board shall be, for purposes of this Plan,
considered as though he or she were a

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member of the Incumbent Board; or (iv) a recapitalization, reorganization,
merger, or consolidation with respect to which those persons (as defined above)
who were beneficial owners of the Voting Securities of the Company or the Bank
immediately prior to such recapitalization, reorganization, merger, or
consolidation do not, following such recapitalization, reorganization, merger,
or consolidation, beneficially own, directly or indirectly, shares representing
more than fifty percent (50%) of the combined voting power of the Voting
Securities of the Company resulting from such recapitalization, reorganization,
merger, or consolidation; or (v) a sale of all or substantially all the assets
of the Bank or the Company.

         (e) "Change of Control Value" shall mean (i) the highest price per
share paid by any person or group of persons who acquires beneficial ownership
of securities representing more than fifty percent (50%) of the Voting
Securities, (ii) the per share price offered to stockholders of the Company in
any merger, consolidation, recapitalization, reorganization, sale of assets or
dissolution transaction resulting in a Change of Control, (iii) the price per
share offered to stockholders of the Company in any tender offer or exchange
offer resulting in a Change of Control, or (iv) if a Change of Control occurs
other than in (i) -(iii) above, the Fair Market Value per share of the shares
into which Nonqualified Stock Options are exercisable, as determined by the
Committee, whichever is applicable. In the event that the consideration offered
to stockholders of the Company consists of anything other than cash, the
Committee shall determine the equivalent fair value in cash of the portion of
the consideration offered which is other than cash.

         (f) "Code" means the Internal Revenue Code of 1986, as amended.
Reference in the Plan to any section of the Code shall be deemed to include any
amendments or successor provisions to any section and any regulations under such
section.

         (g) "Committee" means the Stock Option Committee of the Board, or
another committee of the Board designated by the Board after the date of
adoption of the Plan, which in either case shall be constituted solely of (i)
"non-employee directors" within the meaning of Rule 16b-3 and and applicable
interpretive authority thereunder, and (ii) "outside directors" within the
meaning of Section 162(m) of the Code and applicable interpretive authority
thereunder.

         (h) "Company" means Century Bancshares, Inc. and any of its Affiliates.

         (i) "Director" means an individual elected to the Board by the
stockholders of the Company or by the Board under applicable corporate law who
is serving on the Board on the date the Plan is adopted by the Board or is
elected to the Board after such date.

         (j) An "employee" means any person (including an officer or a Director)
in an employment relationship with the Company or any parent or subsidiary
corporation (as defined in Section 424 of the Code).

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         (k) An "Eligible Participant" means any (i) officer or employee of the
Company or any Affiliate of the Company, including a Director of the Company, or
a director of any Affiliate of the Company, who is also an employee, and (ii)
non-employee Director of the Company, or any non- employee director of any
Affiliate of the Company.

         (l) "1934 Act" means the Securities Exchange Act of 1934, as amended.

         (m) "Fair Market Value" means, as of any specified date, the closing
sale price of the Stock (i) reported by any interdealer quotation system on
which the Stock is quoted on that date, or (ii) if the Stock is listed on a
national securities exchange, reported on the national securities exchange
composite tape on that date; or, in either case, if no prices are reported on
that date, on the last preceding date on which such prices of the Stock are so
reported. If the Stock is traded in the over the counter market at the time a
determination of its fair market value is required to be made hereunder, its
fair market value shall be deemed to be equal to (i) the closing sale price of
the Stock on that date, if such price is available, or (ii) if such price is not
available, the average between the reported high and low bid prices of Stock on
the most recent date for which such information is available. In the event Stock
is not publicly traded at the time a determination of its value is required to
be made hereunder, the determination of its fair market value shall be made by
the Committee in such manner as it deems appropriate.

         (n) "Holder" means an Eligible Participant who has been granted a
Nonqualified Stock Option.

         (o) "Incumbent Board" has the meaning ascribed to it in Paragraph II(d)
hereof.

         (p) "Nonqualified Stock Option" means an option granted under Paragraph
VII of the Plan to purchase Stock which does not satisfy Section 422 of the
Code.

         (q) "Option Agreement" means a written agreement between the Company
and a Holder with respect to a Nonqualified Stock Option.

         (r) "Rule 16b-3" means Rule 16b-3 promulgated by the Securities and
Exchange Commission under the 1934 Act as in effect on the date the Plan is
adopted by the Board, as such rule may thereafter be amended from time to time,
and any successor rule, regulation or statute fulfilling the same or a similar
function.

         (s) "Stock" means the common stock, $1.00 par value of the Company, as
constituted on the date of the adoption of the Plan and any capital stock into
which such common stock may thereafter be changed.

         (t) "Voting Securities" has the meaning ascribed to it in Paragraph
II(d) hereof.

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                  III. EFFECTIVE DATE AND DURATION OF THE PLAN

         The Plan shall be effective upon the date of its adoption by the Board.
No Nonqualified Stock Options may be granted under the Plan after the expiration
of ten years from the date of its adoption by the Board. The Plan shall remain
in effect until all Nonqualified Stock Options granted under the Plan have been
satisfied or expired.

                               IV. ADMINISTRATION

         (a) Committee. The Plan shall be administered by the Committee.

         (b) Powers. Subject to the provisions of the Plan, the Committee shall
have sole authority, in its discretion, to determine which Eligible Participants
shall receive a Nonqualified Stock Option; the time or times when such
Nonqualified Stock Option shall be granted; and the number of shares of Stock
which may be issued under each Nonqualified Stock Option. In making such
determinations the Committee may take into account the nature of the services
rendered by the respective Eligible Participants, their present and potential
contributions to the Company's success and such other factors as the Committee
in its discretion shall deem relevant. The Plan is intended as a "broadly based
plan" within the meaning of Rule 4350(i)(1)(A) of the NASDAQ Stock Market, Inc.
as in effect on the date of adoption of the Plan by the Board, and shall be
administered by the Committee in conformity with such rule.

         (c) Additional Powers. The Committee shall have such additional powers
as are delegated to it by the other provisions of the Plan. Subject to the
express provisions of the Plan, the Committee is authorized to construe the Plan
and the respective agreements executed thereunder, to prescribe such rules and
regulations relating to the Plan as it may deem advisable to carry out the Plan,
and to determine the terms, restrictions and provisions of each Nonqualified
Stock Option, and to make all other determinations necessary or advisable for
administering the Plan. The Committee may correct any defect or supply any
omission or reconcile any inconsistency in any agreement relating to a
Nonqualified Stock Option in the manner and to the extent it shall deem
expedient to carry it into effect. The determinations of the Committee on the
matters referred to in this Paragraph IV shall be conclusive.

                     V. GRANT OF NONQUALIFIED STOCK OPTIONS;
                           SHARES SUBJECT TO THE PLAN

         (a) Grant of Nonqualified Stock Options. The Committee may from time to
time grant Nonqualified Stock Options to one or more Eligible Participants
determined by it to be eligible for participation in the Plan in accordance with
the provisions of Paragraph VI.

         (b) Shares Subject to Plan. Subject to Paragraph VIII, the aggregate
number of shares of Stock that may be issued under the Plan upon the exercise or
satisfaction of all Nonqualified Stock

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Options shall not exceed 100,000 shares. While a Nonqualified Stock Option of
one type is outstanding, the number of shares of Stock subject to such
Nonqualified Stock Option shall not be available for grant under another
Nonqualified Stock Option of the same or any other type. Shares of Stock shall
be deemed to have been issued under the Plan only to the extent actually issued
and delivered pursuant to a Nonqualified Stock Option. To the extent that a
Nonqualified Stock Option lapses or the rights of its Holder terminate or the
Nonqualified Stock Option is paid in cash, any shares of Stock subject to such
Nonqualified Stock Option shall again be available for grant under another
Nonqualified Stock Option.

         (c) Stock Offered. The shares of Stock to be offered pursuant to the
grant of a Nonqualified Stock Option may be authorized and unissued shares of
Stock, or Stock previously issued which has been acquired by the Company.

                                 VI. ELIGIBILITY

         Nonqualified Stock Options may be granted only to persons who, at the
time of grant, are Eligible Participants. A Nonqualified Stock Option may be
granted on more than one occasion to the same person, and, subject to the
limitations set forth in the Plan.

                               VII. STOCK OPTIONS

         (a) Option Period. Subject to the limitations contained in Paragraph
VII(c), the term of each Nonqualified Stock Option shall be as specified by the
Committee at the date of grant.

         (b) Limitations on Exercise of Option. A Nonqualified Stock Option
shall be exercisable in whole or in such installments and at such times as may
be determined by the Committee.

         (c) Option Agreement. Each Nonqualified Stock Option shall be evidenced
by a written Option Agreement in such form and containing such provisions not
inconsistent with the provisions of the Plan as the Committee from time to time
shall approve. A Option Agreement may provide for the payment of the option
price, in whole or in part, by the delivery of a number of shares of Stock (plus
cash if necessary) having a Fair Market Value equal to such option price.
Payment in full or in part may also be made by a reduction in the number of
shares of Stock issuable upon the exercise of a Nonqualified Stock Option, based
on the Fair Market Value of the shares of Stock on the date the Nonqualified
Stock Option is exercised. Each Option Agreement shall specify the effect of
termination of employment, the cessation of serving on the Board, or the
cessation of serving on the Board of an Affiliate on the exercisability of the
Option, as the case may be. Moreover, an Option Agreement may provide for a
"cashless exercise" of the Nonqualified Stock Option by establishing procedures
whereby the Holder, by a properly executed written notice, directs (i) an
immediate market sale or margin loan respecting all or a part of the shares of
Stock to which he is entitled upon exercise pursuant to an extension of credit
by the Company to the Holder of the option price, (ii) the delivery of the
shares of Stock from the Company directly to a brokerage firm and (iii) the
delivery

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of the option price from the sale or margin loan proceeds from the brokerage
firm directly to the Company. Such Option Agreement may also include, without
limitation, provisions relating to (i) vesting of Nonqualified Stock Options,
subject to the provisions hereof accelerating such vesting on a Change of
Control, (ii) tax matters (including provisions (y) permitting the delivery of
additional shares of Stock or the withholding of shares of Stock from those
acquired upon exercise to satisfy federal or state income tax withholding
requirements and (z) dealing with any other applicable employee wage withholding
requirements), and (iii) any other matters not inconsistent with the terms and
provisions of this Plan that the Committee shall in its sole discretion
determine. The terms and conditions of the respective Option Agreements need not
be identical.

         (d) Option Price and Payment. The price at which a share of Stock may
be purchased upon exercise of a Nonqualified Stock Option shall not be less than
the Fair Market Value of Stock subject to a Nonqualified Stock Option on the
date the Nonqualified Stock Option is granted, and such purchase price shall be
subject to adjustment as provided herein. The Nonqualified Stock Option or
portion thereof may be exercised by delivery of an irrevocable notice of
exercise to the Company. The purchase price of the Nonqualified Stock Option or
portion thereof shall be paid in full in the manner prescribed by the Committee.

         (e) Stockholder Rights and Privileges. The Holder shall be entitled to
all the privileges and rights of a stockholder only with respect to such shares
of Stock as have been purchased under the Nonqualified Stock Option and for
which certificates of Stock have been registered in the Holder's name.

         (f) Nonqualified Stock Options and Rights in Substitution for Stock
Options Granted by Other Entities. Nonqualified Stock Options may be granted
under the Plan from time to time in substitution for stock options held by
individuals employed by other entities who become employees as a result of a
merger or consolidation of the employing entity with the Company or any
subsidiary, or the acquisition by the Company or a subsidiary of the assets of
the employing entity, or the acquisition by the Company or a subsidiary of stock
or other equity interests of the employing entity with the result that such
employing entity becomes a subsidiary of the Company.

                    VIII. RECAPITALIZATION OR REORGANIZATION

         (a) Subdivision or Combination of Shares. The shares with respect to
which Nonqualified Stock Options may be granted are shares of Stock as
constituted on the effective date of the Plan, but if, and whenever, prior to
the expiration of a Nonqualified Stock Option theretofore granted, the Company
shall effect a subdivision or combination of its Stock, the number of shares of
Stock with respect to which such Nonqualified Stock Option may thereafter be
exercised or satisfied, as applicable, (i) in the event of an increase in the
number of outstanding shares shall be proportionately increased, and the
purchase price per share shall be proportionately reduced, and (ii) in the event
of a reduction in the number of outstanding shares shall be proportionately
reduced, and the purchase price per share shall be proportionately increased.

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         (b) Recapitalization. If the Company recapitalizes or otherwise changes
its capital structure, thereafter upon any exercise or satisfaction, as
applicable, of a Nonqualified Stock Option theretofore granted the Holder shall
be entitled to (or shall be entitled to receive, as applicable) under such
Nonqualified Stock Option, in lieu of the number of shares of Stock then covered
by such Nonqualified Stock Option, the number and class of shares of capital
stock and securities to which the Holder would have been entitled pursuant to
the terms of the recapitalization if, immediately prior to such
recapitalization, the Holder had been the holder of record of the number of
shares of Stock then covered by such Nonqualified Stock Option.

         (c) Change of Control. Upon the occurrence of a Change of Control, all
outstanding Nonqualified Stock Options shall immediately vest and become
exercisable. In the event of a Change of Control, the Committee, in its
discretion shall act to effect one or more of the following alternatives with
respect to outstanding Nonqualified Stock Options, which may vary among
individual Holders and which may vary among Nonqualified Stock Options held by
any individual Holder: (1) determine a limited period of time for the exercise
of such Nonqualified Stock Options on or before a specified date (before or
after such Change of Control) after which specified date all unexercised
Nonqualified Stock Options and all rights of Holders thereunder shall terminate,
(2) require the mandatory surrender to the Company by selected Holders of some
or all of the outstanding Nonqualified Stock Options held by such Holders
(irrespective of whether such Nonqualified Stock Options are then exercisable
under the provisions of the Plan) as of a date, before or after such Change of
Control, specified by the Committee, in which event the Committee shall
thereupon cancel such Nonqualified Stock Options and the Company shall pay to
each Holder an amount of cash per share equal to the excess, if any, of the
Change of Control Value of the shares subject to such Option over the exercise
price(s) under such Nonqualified Stock Options for such shares, (3) make such
adjustments to Nonqualified Stock Options then outstanding as the Committee
deems appropriate to reflect such Change of Control (provided, however, that the
Committee may determine in its sole discretion that no adjustment is necessary
to Nonqualified Stock Options then outstanding), or (4) provide that thereafter
upon any exercise of a Nonqualified Stock Option theretofore granted, the Holder
shall be entitled to purchase under such Nonqualified Stock Option, in lieu of
the number of shares of Stock then covered by such Nonqualified Stock Option,
the number and class of shares of stock or other securities or property
(including, without limitation, cash) to which the Holder would have been
entitled pursuant to the terms of the agreement of merger, consolidation, sale
of assets or dissolution if, immediately prior to such merger, consolidation,
sale of assets or dissolution the Holder had been the holder of record of the
number of shares of Stock then covered by such Nonqualified Stock Option. The
provisions contained in this paragraph shall not alter any rights or terminate
any rights of the Holder to further payments pursuant to any other agreement
with the Company following a Change of Control.

         (d) Other Events. In the event of changes in the outstanding Stock by
reason of recapitalizations, reorganizations, mergers, consolidations,
combinations, exchanges or other relevant changes in capitalization occurring
after the date of the grant of any Nonqualified Stock Option and not otherwise
provided for by this Paragraph VIII, any outstanding Nonqualified Stock

                                      - 7 -

<PAGE>   8

Options and any agreements evidencing such Nonqualified Stock Options shall be
subject to adjustment by the Committee at its discretion as to the number and
price of shares of Stock or other consideration subject to such Nonqualified
Stock Options. In the event of any such change in the outstanding Stock, the
aggregate number of shares available under the Plan may be appropriately
adjusted by the Committee, whose determination shall be conclusive.

         (e) Corporate Power. The existence of the Plan and the Nonqualified
Stock Options granted hereunder shall not affect in any way the right or power
of the Board or the stockholders of the Company to make or authorize any
adjustment, recapitalization, reorganization or other change in the Company's
capital structure or its business, any merger or consolidation of the Company,
any issue of debt or equity securities ranking prior to or affecting Stock or
the rights thereof, the dissolution or liquidation of the Company or any sale,
lease, exchange or other disposition of all or any part of its assets or
business or any other corporate act or proceeding.

         (f) Stockholder Approval. Any adjustment provided for in Subparagraphs
(a), (b), (c) or (d) above shall be subject to any required stockholder action.

         (g) Issuance of Securities. Except as hereinbefore expressly provided,
the issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash, property, labor or
services, upon direct sale, upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares of obligations of the Company convertible
into such shares or other securities, and in any case whether or not for fair
value, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number of shares of Stock subject to Nonqualified Stock Options
theretofore granted or the purchase price per share, if applicable.

                    IX. AMENDMENT AND TERMINATION OF THE PLAN

         The Board in its discretion may terminate the Plan at any time with
respect to any shares for which Nonqualified Stock Options have not theretofore
been granted. The Board shall have the right to alter or amend the Plan or any
part thereof from time to time; provided that no change in any Nonqualified
Stock Option theretofore granted may be made which would impair the rights of
the Holder without the consent of the Holder.

                                X. MISCELLANEOUS

         (a) No Right to A Nonqualified Stock Option. Neither the adoption of
the Plan by the Company nor any action of the Board or the Committee shall be
deemed to give an Eligible Participant any right to be granted a Nonqualified
Stock Option except as may be evidenced by a Option Agreement executed on behalf
of the Company by an authorized representative thereof, and then only to the
extent and on the terms and conditions expressly set forth therein. The Plan
shall be unfunded. The Company shall not be required to establish any special or
separate fund or to make any other segregation of funds or assets to assure the
payment of any Nonqualified Stock Option.

                                      - 8 -

<PAGE>   9

         (b) No Employment or Service Rights Conferred. Nothing contained in the
Plan shall (i) confer upon any employee any right with respect to continuation
of employment or service with the Company or any Affiliate or (ii) interfere in
any way with the right of the Company or any Affiliate to terminate his or her
employment or service at any time.

         (c) Other Laws; Withholding. The Company shall not be obligated to
issue any Stock pursuant to any Nonqualified Stock Option granted under the Plan
at any time when the shares covered by such Nonqualified Stock Option have not
been registered under the Securities Act of 1933, as amended, and such other
state and federal laws, rules or regulations as the Company or the Committee
deems applicable and, in the opinion of legal counsel for the Company, there is
no exemption from the registration requirements of such laws, rules or
regulations available for the issuance and sale of such shares. No fractional
shares of Stock shall be delivered, nor shall any cash in lieu of fractional
shares be paid. The Company shall have the right to deduct in connection with
all Nonqualified Stock Options any taxes required by law to be withheld and to
require any payments required to enable it to satisfy its withholding
obligations.

         (d) No Restriction on Corporate Action. Nothing contained in the Plan
shall be construed to prevent the Company or any Affiliate from taking any
corporate action which is deemed by the Company or such Affiliate to be
appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any Nonqualified Stock Option granted under the
Plan. No employee, beneficiary or other person shall have any claim against the
Company or any subsidiary as a result of any such action.

         (e) Restrictions on Transfer. A Nonqualified Stock Option shall not be
transferable otherwise than by will or the laws of descent and distribution or
pursuant to a "qualified domestic relations order" as defined by the Code or
Title I of the Employee Retirement Income Security Act of 1974, as amended, or
the rules thereunder, and shall be exercisable during the Holder's lifetime only
by such Holder or the Holder's guardian or legal representative. Any heir,
legatee, guardian or legal representative of the Holder shall take rights
granted herein and in the Option Agreement subject to the terms and conditions
hereof and thereof. No such transfer of any Nonqualified Stock Option to heirs,
legatees, guardians, or legal representatives of the Holder shall be effective
to bind the Company unless the Company shall have been furnished with written
notice thereof and a copy of such evidence as the Committee may deem necessary
to establish the validity of the transfer and the acceptance by the transferee
or transferees of the terms and conditions hereof.

         (f) Governing Law. This Plan shall be construed in accordance with the
laws of the State of Delaware.

                                      - 9 -

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