Document:

<PAGE>

2.  Endorsements

Endorsement - Spousal Continuation

The provision in paragraph (4) of the Death Before the Annuity Date in the Death
Benefit Section of this policy is replaced with the following:

         (4)   If the Beneficiary is the surviving spouse of the deceased
               Contract Owner, the spouse may elect to become the Contract Owner
               and, upon such election, the contract value shall be adjusted to
               equal the amount of the Death Benefit.

The following subsection is added to the General Section of the Contract:

         Exchange of Contract by Surviving Spouse. If the beneficiary is the
         surviving spouse of the Contract Owner and elects to continue this
         contract pursuant to paragraph (4) under Death Before the Annuity Date
         in the Death Benefit Section of the Contract, the surviving spouse may
         exchange this Contract for a new contract of the same form or a form
         designated by the Company if this form is no longer available for sale
         at the time this option is exercised.

         The new contract, which will be issued upon the exercise of this
exchange, will:

           (a) have the surviving spouse as the annuitant;

           (b) have an Issue Date, which is the date of the exchange.

         Riders are only available with the approval of the Company.

         Such exchange shall not be treated as a withdrawal under this contract
         for purposes of the Contingent Deferred Sales Charge provision in the
         Withdrawal Section.

         An amount transferred to this Contract as a result of an Exchange of
         Contract by Surviving Spouse subsection shall not be treated as a
         purchase payment for purpose of the Contingent Deferred Sales Charge
         subsection of this Contract.

The terms of this Endorsement shall override any inconsistent or conflicting
provisions in the Contract and is made a part of the Contract upon attachment.

The Effective Date of this Endorsement is the Contract Date.

Philadelphia, Pennsylvania
(Included at Issue)

The Penn Mutual Life Insurance Company

Endorsement No. 1720-01<PAGE>

2.  Endorsements

Endorsement - Dollar Cost Averaging Account

The Six Month Fixed Interest Option paragraph of the Fixed Account Section of
this Contract is replaced with the following:

Dollar Cost Averaging Option. Amounts may be allocated to only one of the Dollar
Cost Averaging Accounts of the Eligible Fixed Interest Options shown in the
Additional Contract Specifications. During the dollar cost averaging period an
additional dollar cost averaging account cannot be selected. If the dollar cost
averaging account is terminated at the request of the Contract Owner, the
remaining balance will be transferred to the 1 Year Fixed Interest Account
unless otherwise directed by the Contract Owner.

Amounts held in a Dollar Cost Averaging Account of the Eligible Fixed Interest
Options will be credited with interest at effective annual rates declared by the
Company. The declared interest rate will apply from the date of the allocation
to the account through the end of the dollar cost averaging period. The dollar
cost averaging period begins on the first day of the calendar month following
the allocation. At the expiration of the dollar cost averaging period, the
Company will declare a rate not less than 3% for a new dollar cost averaging
period.

The terms of this Endorsement shall override any inconsistent or conflicting
provisions in the Contract and is made a part of the Contract upon attachment.

The Effective Date of this Endorsement is the Contract Date.

Philadelphia, Pennsylvania
(Included at Issue)

The Penn Mutual Life Insurance Company

Endorsement No. 1721-01<PAGE>   1
                                                                     Exhibit 4.1

                             TEMPORARY CERTIFICATE:
                      EXCHANGEABLE FOR DEFINITIVE ENGRAVED
                    CERTIFICATE WHEN AVAILABLE FOR DELIVERY

                               Agere Systems Inc.

(NUMBER)                                                                (SHARES)

    CLASS A COMMON STOCK                   THIS CERTIFICATE IS TRANSFERABLE
INCORPORATED UNDER THE LAWS OF                      IN NEW YORK, NY
    THE STATE OF DELAWARE                          CUSIP  008454100
                                        SEE REVERSE SIDE FOR CERTAIN DEFINITIONS

            THIS CERTIFIES THAT

             IS THE OWNER OF

        FULLY PAID AND NON-ASSESSABLE CLASS A COMMON SHARES, $.01 PAR VALUE, OF

                               Agere Systems Inc.

transferable on the records of the corporation in person or by duly authorized
attorney upon surrender of this certificate properly endorsed. This certificate
is not valid unless countersigned by a Transfer Agent and registered by a
Registrar.

   WITNESS the seal of said corporation and the signatures of its duly
authorized officers.

DATED:

                 Countersigned and Registered:

                 THE BANK OF NEW YORK

(Agere Systems Inc.)        TRANSFER AGENT
(    Corporate     )        AND REGISTRAR
(      SEAL        ) or
(      2000        )         (SIGNATURE)      (SIGNATURE)    (SIGNATURE)
(    DELAWARE      )
                        AUTHORIZED SIGNATURE   TREASURER   CHAIRMAN OF THE BOARD

<PAGE>   2

                              AGERE SYSTEMS INC.

     THE CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO
REQUESTS A STATEMENT OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES
THEREOF OF THE CORPORATION AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS
OF SUCH PREFERENCES AND/OR RIGHTS. SUCH REQUEST MAY BE MADE TO THE TRANSFER
AGENT.

     The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

                                                             Custodian
TEN COM -- as tenants in common      UNIF GIFT MIN ACT ------------------------
                                                        (Cust)         (Minor)
                                                   under Uniform Gifts to Minors
TEN ENT -- as tenants by the entireties
                                                   Act
JT TEN -- as joint tenants with right                -------------------------
          of survivorship and not as                          (State)
          tenants in common

    Additional abbreviations may also be used though not in the above list.

For value received, -------------------- hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
 IDENTIFICATION NUMBER OF ASSIGNEE
  [                            ]
  [                            ]

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

-------------------------------------------------------------------------------
                   PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS
                     INCLUDING POSTAL ZIP CODE, OF ASSIGNEE

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

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

----------------------------------------------------------------------- Shares
of the Common Stock represented by the within Certificate and do hereby
irrevocably constitute and appoint
                                   ---------------------------------------------

------------------------------------------------------------------------Attorney
to transfer the said stock on the books of the within-named Corporation with
full power of substitution in the premises.

Dated:
      -----------------------

                                    By
                                    --------------------------------------------
                                     THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN
                                     ELIGIBLE GUARANTOR INSTITUTION (BANKS,
                                     STOCKBROKERS, SAVINGS AND LOANS
                                     ASSOCIATIONS AND CREDIT UNIONS WITH
                                     MEMBERSHIP IN AN APPROVED SIGNATURE
                                     GUARANTEE MEDALLION PROGRAM) PURSUANT TO
                                     S.E.C. RULE 17 Ad-15.

     This certificate also evidences and entitles the holder hereof to certain
rights as set forth in a Rights Agreement between Agere Systems Inc. and The
Bank of New York (the "Rights Agreement"), the terms of which are hereby
incorporated herein by reference and a copy of which is on file at the principal
executive offices of Agere Systems Inc. Under certain circumstances, as set
forth in the Rights Agreement, such Rights will be evidenced by separate
certificates and will no longer be evidenced by this certificate. Agere Systems
Inc. will mail to the holder of this certificate a copy of the Rights Agreement
without charge after receipt of a written request therefor. Under certain
circumstances, as set forth in the Rights Agreement, Rights issued to any Person
who becomes an Acquiring Person (as defined in the Rights Agreement) may become
null and void.

NOTICE: The signature to this assignment must correspond with the name as
        written upon the face of the Certificate in every particular, without
        alteration or enlargement or any change whatever.<PAGE>   1
                                                                   EXHIBIT 10.8
                 AGERE SYTEMS INC. 2001 LONG TERM INCENTIVE PLAN

                       NONSTATUTORY STOCK OPTION AGREEMENT

NAME                       HR ID NO.     GRANT DATE             EXPIRATION DATE

Capitalized terms not otherwise defined herein shall have the same meanings as
in the Plan.

You have been granted, as of the Grant Date set forth above, an option (the
"Option") under the Plan to purchase from Agere Systems Inc. ("Agere"), [insert
number of shares covered by the Option] shares of Class [insert class of common
stock as to which the award is granted] common stock, par value $.01, of Agere
("Shares") at the price of [insert exercise price] per Share, subject to the
terms and conditions of the Plan and this agreement.

1. EXERCISABILITY OF OPTION. This Option may be exercised at any time prior to
the Expiration Date set forth above or its earlier cancellation as follows:

     (a) [Insert vesting schedule] The number of shares with respect to which
this Option becomes exercisable on any date will be rounded down to the next
lowest whole number, and any fraction of a share shall be added to the portion
of the Option becoming exercisable the following month.

     (b) Upon the termination of your employment by reason of Retirement, any
portion of this Option which is then exercisable will remain exercisable until
the Expiration Date and any portion of this Option which is not then exercisable
will be canceled.

     (c) Upon the termination of your employment by reason of death or
Disability, any portion of this Option which is not then exercisable will become
exercisable and, along with any portion of this Option which is then
exercisable, will remain exercisable until the Expiration Date.

     (d) Upon the termination of your employment for Cause, this Option will be
canceled.

     (e) Upon the termination of your employment as a result of a Company
Action, any portion of this Option that is then exercisable shall remain
exercisable until the earlier of (i) the ninetieth day from the date of
termination and (ii) the Expiration Date, and the Company Action Vesting Portion
shall not be forfeited and canceled and shall become immediately exercisable
until the earlier of (i) the ninetieth day after termination of employment and
(ii) the original Expiration Date. "Company Action Vesting Portion" is
determined as of the date of termination of employment and shall be the portion
of the Option computed as follows (but not less than zero):

                  Company Action Vesting Portion  =  N  x  M/D  -  E

         where:

                  N = the number of shares originally subject to the Option,

                  M = the number of complete months elapsed since the Grant
                  Date,

                  D = the number of complete months between the Grant Date and
                  the date on which the Option was originally scheduled to
                  become completely exercisable, and

                  E = the number of Shares covered by the Option for which the
                  Option has already become exercisable (regardless of whether
                  the Option has been exercised with respect to such Shares).

         If your employment terminates under circumstances constituting both a
Company Action and Retirement, the Company Action Vesting Portion shall become
exercisable on the termination date and, together with any portion of the Option
which was already exercisable, shall remain exercisable until the Expiration
Date.

     (f) Upon the termination of your employment for any reason other than
Retirement, death or Disability, Cause or Company Action, any portion of this
Option which is then exercisable will remain exercisable until the earlier of
(i) the ninetieth day after termination of employment and (ii) the original
Expiration Date, and any portion of this Option which is not then exercisable
will be canceled.
<PAGE>   2
     (g) It will not be considered a termination of your employment if you (i)
transfer to or from Agere and any Subsidiary or (ii) are placed on an approved
leave of absence. Unless otherwise determined by the Committee, it will be
considered a termination of employment if your employer ceases to be Agere or a
Subsidiary.

2. DEFINITIONS.

     (a) RETIREMENT.  "Retirement" means termination of employment with Agere or
any Subsidiary under any of the following circumstances or entitlements:

         (i)      Service Pension under the Agere Retirement Income Plan as
                  defined in such plan;

         (ii)     Minimum Retirement Benefit under the Agere Supplemental
                  Pension Plan as defined in such plan;

         (iii)    Similar pension under any plan of Agere that is a successor to
                  or offered in substitution for one or more of the foregoing
                  plans;

         (iv)     Pension of a type similar to those described in (i) through
                  (iii) under any plan of a Subsidiary that adopts reasonable
                  standards and criteria for benefit entitlement; or

         (v)      You are at least age 50 with a minimum of 15 years service or
                  your age and years of service at the time of termination add
                  up to at least 75.

     (b) DISABILITY. "Disability" means termination of employment under
circumstances entitling you to any of the following benefits:

         (i)      Disability Pension under the Agere Retirement Income Plan;

         (ii)     Disability Benefit under the Long Term Disability Plan for
                  Management Employees of Agere;

         (iii)    Similar disability benefits under any plan of Agere that is a
                  successor to or offered in substitution for one or more of the
                  foregoing plans; or

         (iv)     Disability benefits of a type similar to those described in
                  (i) through (iii) under any plan of a Subsidiary that adopts
                  reasonable standards and criteria for benefit entitlement.

     (c) CAUSE. "Cause" means:

         (i)      violation of Agere's code of conduct.

         (ii)     conviction of (including a plea of guilty or nolo contendere)
                  of a felony or any crime of theft, dishonesty or moral
                  turpitude, or

         (iii)    gross omission or gross dereliction of any statutory or common
                  law duty of loyalty to Agere.

3. EXERCISE PROCEDURE. This Option shall be exercised by delivering a notice to
Agere using the method prescribed by Agere for this purpose. The Option or any
portion thereof may be exercised only upon payment of the exercise price thereof
in full, and in accordance with procedures established by the Committee. Payment
shall be made in cash or in Shares or a combination of cash and Shares such that
the total of the cash plus the Fair Market Value, as determined in accordance
with procedures established by the Committee, of the Shares on the date of
exercise at least equals the aggregate exercise price of the Shares as to which
the Option is being exercised; provided, however, that any Shares surrendered as
payment must have been owned by you for at least six months prior to the date of
exercise. Exercise of the Option shall take effect on the date the notice of
exercise is actually received in accordance with procedures specified by Agere.

4. ISSUANCE OF AGERE SHARES. Following exercise of any portion of this Option,
Agere will issue the number of Shares purchased under this Option. Neither you
nor anyone else shall be, or have any of the rights and privileges of, a
stockholder of Agere in respect of any Shares purchasable upon the exercise of
this Option, in whole or in part, unless and until such Shares shall have been
issued.

5. TRANSFERABILITY. (a) This Option is not transferable by you otherwise than by
will or the laws of descent and distribution, and during your lifetime the
Option may be exercised only by you or your guardian or legal representative.

[Insert paragraph if a beneficiary designation is allowed] (b) You may, in
accordance with procedures established by the Committee, designate one or more
beneficiaries to receive all or part of the Option in case of your death, and
you may change or revoke such designation at any time. Such designation shall
not be effective unless and until the Senior Vice President-Human Resources
shall determine, on advice of counsel, that exercise of the Option by your
beneficiary(ies) does not require any registration, qualification, consent or
approval of any securities exchange or governmental or regulatory agency or
authority. In the event of your death, any portion of this Option that is
subject to such a designation (to the extent such designation is valid,
effective and enforceable under this Agreement and applicable law) shall be
distributed to such beneficiary or beneficiaries in accordance with this
Agreement. Any other portion of this Option shall be distributable to your
estate. If there shall be any question as to the legal right of any beneficiary
to receive a distribution hereunder, or to the extent your designation is not
effective,
<PAGE>   3
such portion may be exercised by your estate, in which event neither Agere nor
any Subsidiary shall have any further liability to anyone with respect to such
Option.

6. NO RIGHT OF EMPLOYMENT. Neither the Plan nor this Agreement shall be
construed as giving you the right to be retained in the employ of Agere or any
Subsidiary.

7. NON-SOLICIT. In addition to your separately enforceable obligations under
existing Agere intellectual property and non-disclosure agreements, and under
common law, you agree that you will not, without the prior written consent of
Agere, both during and for a period of 12 months after termination for any
reason of your employment with Agere or any Subsidiary, solicit or offer, or
induce or encourage others to solicit or offer, employment to, or hire, any
employee of Agere or any Subsidiary. If you do not comply with the terms of the
preceding sentence, Agere may, among other things, cancel any unexercised
portion of this Option and/or recoup any profits with respect to the exercise of
this Option realized within 12 months prior to termination for any reason of
your employment with Agere or any Subsidiary through 12 months after
termination, to be repaid within 10 days of Agere's written request (or, at
Agere's option, to be set off against any amounts Agere owes you).

8. REGULATORY APPROVALS. If the Senior Vice President-Human Resources of the
Company determines, on advice of counsel, that the listing, registration or
qualification of Shares upon any securities exchange or under any law, or the
consent or approval of any governmental or regulatory agency or authority, is
necessary or desirable as a condition of, or in connection with, the exercise of
the Option, no portion of the Option may be exercised until or unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained. The foregoing shall not be construed as requiring any such
listing, registration, qualification, consent or approval.

9. DETERMINATIONS OF THE COMMITTEE. Any determinations or decisions made or
actions taken arising out of or in connection with the interpretation and
administration of this Agreement and the Plan by the Committee shall be final
and conclusive.

10. AMENDMENTS. This Agreement may be amended by the Committee provided that no
such amendment shall impair your rights hereunder without your consent.

11. TAXES. Agere may withhold or require payment of taxes or social insurance
payments due upon the exercise of this Option. Payments may be paid in cash or a
combination of cash and Shares if permitted by the Senior Vice President-Human
Resources of the Company.

12. GOVERNING LAW. The validity, construction and effect of this Agreement shall
be determined in accordance with the laws of the State of Delaware without
giving effect to principles of conflicts of laws.

13. VALUE OF OPTION. Agere makes no representation as to the value of this
Option or whether you will be able to realize any profit out of it.

14. BLACK OUT PERIODS. In connection with significant corporate transactions or
developments such as spin-offs or stock splits, Agere reserves the right to
designate periods during which you may not exercise this Option.

Please indicate your acceptance of terms 1-13, and acknowledge that you have
received a copy of the Plan as currently in effect, by signing at the place
provided and returning the original of this Agreement.

ACCEPTED AND AGREED:                                 AGERE SYSTEMS INC.
SIGNATURE                                      BY

                                                    VICE PRESIDENT

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