Document:

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                                                                    EXHIBIT 10.4

                                   PCTEL, INC.

                            1998 DIRECTOR OPTION PLAN

                 (AS AMENDED AND RESTATED THROUGH JUNE 3, 2003)

         1. Purposes of the Plan. The purposes of this 1998 Director Option Plan
are to attract and retain the best available personnel for service as Outside
Directors (as defined herein) of the Company, to provide additional incentive to
the Outside Directors of the Company to serve as Directors, and to encourage
their continued service on the Board.

                  All options granted hereunder shall be nonstatutory stock
options.

         2. Definitions.  As used herein, the following definitions shall apply:

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

                  (b) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (c) "Common Stock" means the common stock of the Company.

                  (d) "Company" means PCTEL, Inc., a Delaware corporation.

                  (e) "Director" means a member of the Board.

                  (f) "Employee" means any person, including officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a Director's fee by the Company shall not be sufficient in and of
itself to constitute "employment" by the Company.

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

                  (h) "Fair Market Value" means, as of any date, the value of
Common Stock determined as follows:

                           (i) If the Common Stock is listed on any established
stock exchange or a national market system, including without limitation the
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination as reported in
The Wall Street Journal or such other source as the Administrator deems
reliable;

                           (ii) If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock for the last market trading day prior
to the

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time of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable; or

                           (iii) In the absence of an established market for the
Common Stock, the Fair Market Value thereof shall be determined in good faith
by the Board.

                  (i) "Inside Director" means a Director who is an Employee.

                  (j) "Option" means a stock option granted pursuant to the
Plan.

                  (k) "Optioned Stock" means the Common Stock subject to an
Option.

                  (l) "Optionee"  means a Director who holds an Option.

                  (m) "Outside Director" means a Director who is not an
Employee.

                  (n) "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (o) "Plan" means this 1998 Director Option Plan.

                  (p) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 10 of the Plan.

                  (q) "Subsidiary" means a "subsidiary corporation," whether now
or hereafter existing, as defined in Section 424(f) of the Internal Revenue Code
of 1986.

         3. Stock Subject to the Plan. Subject to the provisions of Section 10
of the Plan, the maximum aggregate number of Shares which may be optioned and
sold under the Plan is 400,000 Shares of Common Stock (the "Pool"). The Shares
may be authorized, but unissued, or reacquired Common Stock.

                  If an Option expires or becomes unexercisable without having
been exercised in full, the unpurchased Shares which were subject thereto shall
become available for future grant or sale under the Plan (unless the Plan has
terminated). Shares that have actually been issued under the Plan shall not be
returned to the Plan and shall not become available for future distribution
under the Plan.

         4. Administration and Grants of Options under the Plan.

                  (a) Procedure for Grants. All grants of Options to Outside
Directors under this Plan shall be automatic and nondiscretionary and shall be
made strictly in accordance with the following provisions:

                           (i)  No person shall have any discretion to select
which Outside Directors shall be granted Options or to determine the number of
Shares to be covered by Options granted to Outside Directors.

                           (ii) Each Outside Director shall be automatically
granted an Option to purchase 15,000 Shares (the "First Option") on the date on
which the later of the following events occurs: (A) the effective date of this
Plan, as determined in accordance with Section 6 hereof, or (B) the date on
which such person first becomes an Outside Director, whether through election by
the shareholders of the Company or

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appointment by the Board to fill a vacancy; provided, however, that an Inside
Director who ceases to be an Inside Director but who remains a Director shall
not receive a First Option.

                           (iii) Each Outside Director shall be automatically
granted an Option to purchase 10,000 Shares (a "Subsequent Option") on January
1st of each year provided he or she is then an Outside Director and if as of
such date, he or she shall have served on the Board for at least the preceding
six (6) months.

                           (iv) Notwithstanding the provisions of subsections
(ii) and (iii) hereof, any exercise of an Option granted before the Company has
obtained shareholder approval of the Plan in accordance with Section 16 hereof
shall be conditioned upon obtaining such shareholder approval of the Plan in
accordance with Section 16 hereof.

                           (v) The terms of a First Option granted hereunder
shall be as follows:

                               (1) the term of the First Option shall be ten
(10) years.

                               (2) the First Option shall be exercisable only
while the Outside Director remains a Director of the Company, except as set
forth in Sections 8 and 10 hereof.

                               (3) the exercise price per Share shall be 100% of
the Fair Market Value per Share on the date of grant of the First Option.

                               (4) subject to Section 10 hereof, the First
Option shall become exercisable as to 331/3 percent of the Shares subject to the
First Option on each anniversary of its date of grant, provided that the
Optionee continues to serve as a Director on such dates.

                           (vi) The terms of a Subsequent Option granted
hereunder shall be as follows:

                                (1) the term of the Subsequent Option shall be
ten (10) years.

                                (2) the Subsequent Option shall be exercisable
only while the Outside Director remains a Director of the Company, except as set
forth in Sections 8 and 10 hereof.

                                (3) the exercise price per Share shall be 100%
of the Fair Market Value per Share on the date of grant of the Subsequent
Option.

                                (4) subject to Section 10 hereof, the Subsequent
Option shall become exercisable as to 100 percent of the Shares subject to the
Subsequent Option on each anniversary of its date of grant, provided that the
Optionee continues to serve as a Director on such dates.

                           (vii) In the event that any Option granted under the
Plan would cause the number of Shares subject to outstanding Options plus the
number of Shares previously purchased under Options to exceed the Pool, then the
remaining Shares available for Option grant shall be granted under Options to
the Outside Directors on a pro rata basis. No further grants shall be made until
such time, if any, as additional Shares become available for grant under the
Plan through action of the Board or the shareholders to increase the number of
Shares which may be issued under the Plan or through cancellation or expiration
of Options previously granted hereunder.

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         5. Eligibility. Options may be granted only to Outside Directors. All
Options shall be automatically granted in accordance with the terms set forth in
Section 4 hereof.

                  The Plan shall not confer upon any Optionee any right with
respect to continuation of service as a Director or nomination to serve as a
Director, nor shall it interfere in any way with any rights which the Director
or the Company may have to terminate the Director's relationship with the
Company at any time.

         6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 16 of the Plan. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 11 of the Plan.

         7. Form of Consideration. The consideration to be paid for the Shares
to be issued upon exercise of an Option, including the method of payment, shall
consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of
Shares acquired upon exercise of an Option, have been owned by the Optionee for
more than six (6) months on the date of surrender, and (y) have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which said Option shall be exercised, (iv) consideration received
by the Company under a cashless exercise program implemented by the Company in
connection with the Plan, or (v) any combination of the foregoing methods of
payment.

         8. Exercise of Option.

                  (a) Procedure for Exercise; Rights as a Shareholder. Any
Option granted hereunder shall be exercisable at such times as are set forth in
Section 4 hereof; provided, however, that no Options shall be exercisable until
shareholder approval of the Plan in accordance with Section 16 hereof has been
obtained.

                  An Option may not be exercised for a fraction of a Share.

                  An Option shall be deemed to be exercised when written notice
of such exercise has been given to the Company in accordance with the terms of
the Option by the person entitled to exercise the Option and full payment for
the Shares with respect to which the Option is exercised has been received by
the Company. Full payment may consist of any consideration and method of payment
allowable under Section 7 of the Plan. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
A share certificate for the number of Shares so acquired shall be issued to the
Optionee as soon as practicable after exercise of the Option. No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date the stock certificate is issued, except as provided in Section 10 of
the Plan.

                  Exercise of an Option in any manner shall result in a decrease
in the number of Shares which thereafter may be available, both for purposes of
the Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

                  (b) Termination of Continuous Status as a Director. Subject to
Section 10 hereof, in the event an Optionee's status as a Director terminates
(other than upon the Optionee's death or total and permanent disability (as
defined in Section 22(e)(3) of the Code)), the Optionee may exercise his or her
Option, but only within three (3) months following the date of such termination,
and only to the extent that the Optionee was entitled to exercise it on the date
of such termination (but in no event later than the expiration of its ten (10)
year term). To the extent that the Optionee was not entitled to exercise an
Option on

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the date of such termination, and to the extent that the Optionee does not
exercise such Option (to the extent otherwise so entitled) within the time
specified herein, the Option shall terminate.

                  (c) Disability of Optionee. In the event Optionee's status as
a Director terminates as a result of total and permanent disability (as defined
in Section 22(e)(3) of the Code), the Optionee may exercise his or her Option,
but only within twelve (12) months following the date of such termination, and
only to the extent that the Optionee was entitled to exercise it on the date of
such termination (but in no event later than the expiration of its ten (10) year
term). To the extent that the Optionee was not entitled to exercise an Option on
the date of termination, or if he or she does not exercise such Option (to the
extent otherwise so entitled) within the time specified herein, the Option shall
terminate.

                  (d) Death of Optionee. In the event of an Optionee's death,
the Optionee's estate or a person who acquired the right to exercise the Option
by bequest or inheritance may exercise the Option, but only within twelve (12)
months following the date of death, and only to the extent that the Optionee was
entitled to exercise it on the date of death (but in no event later than the
expiration of its ten (10) year term). To the extent that the Optionee was not
entitled to exercise an Option on the date of death, and to the extent that the
Optionee's estate or a person who acquired the right to exercise such Option
does not exercise such Option (to the extent otherwise so entitled) within the
time specified herein, the Option shall terminate.

         9. Non-Transferability of Options. The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

         10. Adjustments Upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

                  (a) Changes in Capitalization. Subject to any required action
by the shareholders of the Company, the number of Shares covered by each
outstanding Option, the number of Shares which have been authorized for issuance
under the Plan but as to which no Options have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option, as well
as the price per Share covered by each such outstanding Option, and the number
of Shares issuable pursuant to the automatic grant provisions of Section 4
hereof shall be proportionately adjusted for any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of Shares
subject to an Option.

                  (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, to the extent that an Option has not
been previously exercised, it shall terminate immediately prior to the
consummation of such proposed action.

                  (c) Merger or Asset Sale. In the event of a merger of the
Company with or into another corporation or the sale of substantially all of the
assets of the Company, outstanding Options may be assumed or equivalent options
may be substituted by the successor corporation or a Parent or Subsidiary
thereof (the "Successor Corporation"). If an Option is assumed or substituted
for, the Option or equivalent option shall continue to be exercisable as
provided in Section 4 hereof for so long as the Optionee serves as a Director or
a director of the Successor Corporation. Following such assumption or
substitution, if the Optionee's status as a Director or director of the
Successor Corporation, as applicable, is terminated other than upon a voluntary

<PAGE>
resignation by the Optionee, the Option or option shall become fully
exercisable, including as to Shares for which it would not otherwise be
exercisable. Thereafter, the Option or option shall remain exercisable in
accordance with Sections 8(b) through (d) above.

         If the Successor Corporation does not assume an outstanding Option or
substitute for it an equivalent option, the Option shall become fully vested and
exercisable, including as to Shares for which it would not otherwise be
exercisable. In such event the Board shall notify the Optionee that the Option
shall be fully exercisable for a period of thirty (30) days from the date of
such notice, and upon the expiration of such period the Option shall terminate.

         For the purposes of this Section 10(c), an Option shall be considered
assumed if, following the merger or sale of assets, the Option confers the right
to purchase or receive, for each Share of Optioned Stock subject to the Option
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares).
If such consideration received in the merger or sale of assets is not solely
common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to
be received upon the exercise of the Option, for each Share of Optioned Stock
subject to the Option, to be solely common stock of the successor corporation or
its Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger or sale of assets.

         11. Amendment and Termination of the Plan.

                  (a) Amendment and Termination. The Board may at any time
amend, alter, suspend, or discontinue the Plan, but no amendment, alteration,
suspension, or discontinuation shall be made which would impair the rights of
any Optionee under any grant theretofore made, without his or her consent. In
addition, to the extent necessary and desirable to comply with any applicable
law, regulation or stock exchange rule, the Company shall obtain shareholder
approval of any Plan amendment in such a manner and to such a degree as
required.

                  (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated.

         12. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date determined in accordance with Section 4 hereof.

         13. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

                  As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares, if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

<PAGE>
                  Inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

         14. Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

         15. Option Agreement. Options shall be evidenced by written option
agreements in such form as the Board shall approve.

         16. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the degree and manner
required under applicable state and federal law and any stock exchange rules.

<PAGE>
                                   PCTEL, INC.

                            DIRECTOR OPTION AGREEMENT

         PCTEL, Inc., a Delaware corporation (the "Company"), has granted to
______________ (the "Optionee"), an option to purchase a total of
[______________ (_________)] shares of the Company's Common Stock (the "Optioned
Stock"), at the price determined as provided herein, and in all respects subject
to the terms, definitions and provisions of the Company's 1998 Director Option
Plan (the "Plan") adopted by the Company which is incorporated herein by
reference. The terms defined in the Plan shall have the same defined meanings
herein.

         1. Nature of the Option. This Option is a nonstatutory option and is
not intended to qualify for any special tax benefits to the Optionee.

         2. Exercise Price. The exercise price is $_______ for each share of
Common Stock.

         3. Exercise of Option. This Option shall be exercisable during its term
in accordance with the provisions of Section 8 of the Plan as follows:

                  (a) Right to Exercise.

                           (i) This Option shall become exercisable in
installments cumulatively with respect to __________ percent (___%) of the
Optioned Stock one year after the date of grant, and as to an additional
______________ percent (__%) of the Optioned Stock on each anniversary of the
date of grant, so that one hundred percent (100%) of the Optioned Stock shall be
exercisable [_______] years after the date of grant; provided, however, that in
no event shall any Option be exercisable prior to the date the stockholders of
the Company approve the Plan.

                           (ii) This Option may not be exercised for a fraction
of a share.

                           (iii) In the event of Optionee's death, disability or
other termination of service as a Director, the exercisability of the Option is
governed by Section 8 of the Plan.

                  (b) Method of Exercise. This Option shall be exercisable by
written notice which shall state the election to exercise the Option and the
number of Shares in respect of which the Option is being exercised. Such written
notice, in the form attached hereto as Exhibit A, shall be signed by the
Optionee and shall be delivered in person or by certified mail to the Secretary
of the Company. The written notice shall be accompanied by payment of the
exercise price.

         4. Method of Payment. Payment of the exercise price shall be by any of
the following, or a combination thereof, at the election of the Optionee:

                  (a) cash;

                  (b) check; or

<PAGE>
                  (c) surrender of other shares which (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (y) have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as
to which said Option shall be exercised; or

                  (d) delivery of a properly executed exercise notice together
with such other documentation as the Company and the broker, if applicable,
shall require to effect an exercise of the Option and delivery to the Company of
the sale or loan proceeds required to pay the exercise price.

         5. Restrictions on Exercise. This Option may not be exercised if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulations, or if such issuance
would not comply with the requirements of any stock exchange upon which the
Shares may then be listed. As a condition to the exercise of this Option, the
Company may require Optionee to make any representation and warranty to the
Company as may be required by any applicable law or regulation.

         6. Non-Transferability of Option. This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by the Optionee. The terms
of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

         7. Term of Option. This Option may not be exercised more than ten (10)
years from the date of grant of this Option, and may be exercised during such
period only in accordance with the Plan and the terms of this Option.

         8. Taxation Upon Exercise of Option. Optionee understands that, upon
exercise of this Option, he or she will recognize income for tax purposes in an
amount equal to the excess of the then Fair Market Value of the Shares purchased
over the exercise price paid for such Shares. Since the Optionee is subject to
Section 16(b) of the Securities Exchange Act of 1934, as amended, under certain
limited circumstances the measurement and timing of such income (and the
commencement of any capital gain holding period) may be deferred, and the
Optionee is advised to contact a tax advisor concerning the application of
Section 83 in general and the availability a Section 83(b) election in
particular in connection with the exercise of the Option. Upon a resale of such
Shares by the Optionee, any difference between the sale price and the Fair
Market Value of the Shares on the date of exercise of the Option, to the extent
not included in income as described above, will be treated as capital gain or
loss.

DATE OF GRANT:
                --------------
                                            PCTEL, INC.
                                            a Delaware corporation

                                            By:
                                               ---------------------------------

                                                                             -2-
<PAGE>
         Optionee acknowledges receipt of a copy of the Plan, a copy of which is
attached hereto, and represents that he or she is familiar with the terms and
provisions thereof, and hereby accepts this Option subject to all of the terms
and provisions thereof. Optionee hereby agrees to accept as binding, conclusive
and final all decisions or interpretations of the Board upon any questions
arising under the Plan.

         Dated:
                -----------------
                                               ---------------------------------
                                               Optionee

                                                                             -3-
<PAGE>
                                    EXHIBIT A

                         DIRECTOR OPTION EXERCISE NOTICE

PCTEL, Inc.
8725 W. Higgins Road
Chicago, Illinois 60631

Attention:  Corporate Secretary

         1. Exercise of Option. The undersigned ("Optionee") hereby elects to
exercise Optionee's option to purchase ______ shares of the Common Stock (the
"Shares") of PCTEL, Inc. (the "Company") under and pursuant to the Company's
1998 Director Option Plan and the Director Option Agreement dated
_______________ (the "Agreement").

         2. Representations of Optionee. Optionee acknowledges that Optionee has
received, read and understood the Agreement.

         3. Federal Restrictions on Transfer. Optionee understands that the
Shares must be held indefinitely unless they are registered under the Securities
Act of 1933, as amended (the "1933 Act"), or unless an exemption from such
registration is available, and that the certificate(s) representing the Shares
may bear a legend to that effect. Optionee understands that the Company is under
no obligation to register the Shares and that an exemption may not be available
or may not permit Optionee to transfer Shares in the amounts or at the times
proposed by Optionee.

         4. Tax Consequences. Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee's purchase or disposition of
the Shares. Optionee represents that Optionee has consulted with any tax
consultant(s) Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

         5. Delivery of Payment. Optionee herewith delivers to the Company the
aggregate purchase price for the Shares that Optionee has elected to purchase
and has made provision for the payment of any federal or state withholding taxes
required to be paid or withheld by the Company.

<PAGE>
         6. Entire Agreement. The Agreement is incorporated herein by reference.
This Exercise Notice and the Agreement constitute the entire agreement of the
parties and supersede in their entirety all prior undertakings and agreements of
the Company and Optionee with respect to the subject matter hereof. This
Exercise Notice and the Agreement are governed by Delaware law except for that
body of law pertaining to conflict of laws.

Submitted by:                              Accepted by:

OPTIONEE:                                  PCTEL, INC.

                                           By:
----------------------------------             ---------------------------------

                                           Its:
                                               ---------------------------------

Address:                                   Address: 8725 W. Higgins Road
                                                    Chicago, Illinois 60631

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

                                                                             -2-Ex-10.1

 

Exhibit 10.1

EXECUTIVE AGREEMENT

     Executive Agreement (the “Agreement”), dated as of April 4, 2003, by and
among United Bankshares, Inc. (“United”), Sequoia Bancshares, Inc. (the
“Company”), SequoiaBank (the “Bank”), a wholly-owned subsidiary of the Company,
and J. Paul McNamara (the “Executive”).

WITNESSETH

     WHEREAS, the Executive is a director and/or an executive officer of the
Company and the Bank; and

     WHEREAS, each of the Company and the Bank (collectively, the “Employers”)
are party to an Employment Agreement with the Executive, dated as of January 2,
2002 and amended as of September 23, 2002 (the “Employment Agreement”); and

     WHEREAS, United and the Company are entering into an Agreement and Plan of
Reorganization, dated as of the date hereof (the “Merger Agreement”), pursuant
to which the Company will merge with and into United on the terms and
conditions set forth therein (the “Merger”) and, in connection therewith,
outstanding shares of Company Common Stock will be converted into shares of
United Common Stock and/or cash in the manner set forth therein; and

     WHEREAS, as an inducement to United to enter into the Merger Agreement,
the Employers and the Executive desire to set forth the status of the
Executive’s employment relationships with the Company and the Bank as of the
Effective Time (as defined in the Merger Agreement), the benefits the Executive
will be entitled to receive upon termination of such employment relationships
and certain noncompetition and other obligations of the Executive following the
Effective Time;

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
set forth herein, the parties hereto agree as follows:

     1.     Termination of Employment and Directorships. At the Effective Time, the
Executive shall cease to be a director and an executive officer of the Company
and the Bank. Without limiting the foregoing, the Employers and the Executive
agree that at the Effective Time the Employment Agreement shall be
automatically terminated without the necessity of any further action on the
part of either party thereto, with the result that the Employment Agreement
shall be null and void and no party thereto or any heir, successor or assignee
thereof shall have any continuing rights or obligations thereunder.

     2.     Payment to the Executive. In consideration of the termination provided
in paragraph (a) of Section 1 and the other obligations of the Executive set
forth herein, the United and the Company hereby agree to do the following:

	 	(i)	 	pay to the Executive at the Effective Time a cash
amount equal to $1,072,500 (the “Cash Payment”), less
applicable withholdings pursuant to Section 10 hereof, and

 

 

	 	(ii)	 	provide the Executive with credit for three
additional “Years of Service” as of the Effective Time for
purposes of determining the Executive’s benefit under the
Amended and Restated Salary Continuation Agreement between the
Executive and the Bank, as amended (the “SCA”), which United
hereby expressly assumes as an obligation of United from and
after the Effective Time.

     The Executive agrees that the foregoing shall be in full satisfaction of
all obligations of the Company and the Bank to the Executive pursuant to the
Employment Agreement and in considerations of the covenants set forth in
Section 4 of this Agreement.

     3.     No Effect on Employee Benefit Plans. The termination of the
Executive’s directorships and employment pursuant to this Agreement shall have
no special effect on the rights and obligations of the Executive and the
Employers under any employee benefit plan of the Employers pursuant to which
the Executive has any accrued rights or is entitled to any benefits or payments
(the “Employee Benefit Plans”) including, without limitation, the SCA.

     4.     Non-Compete; Confidentiality; Non-Solicitation.

     (a)  The Executive agrees that during the term of and during the two-year
period following termination of Executive’s employment pursuant to that certain
Employment Agreement dated as of April 4, 2003, the Executive will not,
directly or indirectly, (i) become a director, officer, employee, principal,
agent, consultant or independent contractor of any insured depository
institution, trust company or parent holding company of any such institution or
company (or any other entity offering products or services competing with such
institution or company) which has an office in Virginia, Maryland or the
District of Columbia (a “Competing Business”), provided, however, that this
provision shall not prohibit the Executive from owning bonds, non-voting
preferred stock or up to five percent (5%) of the outstanding common stock of
any such entity if such common stock is publicly traded, or (ii) solicit
(whether by mail, telephone, personal meeting or any other means) any customer
of United or any of its subsidiaries to transact business with any other
entity, whether or not a Competing Business, or to reduce or refrain from doing
any business with United or its subsidiaries, or interfere with or damage (or
attempt to interfere with or damage) any relationship between United or its
subsidiaries and any such customers.

     (b)  Except as required by law or regulation (including without limitation
in connection with any judicial or administrative process or proceeding), the
Executive shall keep secret and confidential and shall not disclose to any
third party (other than the Company, United or any of their respective
subsidiaries) in any fashion or for any purpose whatsoever any information
regarding the Company, United or any of their respective subsidiaries which is
not available to the general public to which the Executive had access at any
time during the course of the Executive’s employment by the Company or any of
its subsidiaries, including, without limitation, any such information relating
to: business or operations; plans, strategies, prospects or objectives;
products, technology, processes or specifications; research and development
operations or plans; customers and customer lists; distribution, sales,
service, support and marketing practices and operations; financial condition,
results of operations and prospects; operational strengths and weaknesses; and
personnel and compensation policies and procedures.

     (c)  Executive agrees that during the term of and during the two-year
period following termination of Executive’s employment pursuant to that certain
Employment Agreement dated as of April 4, 2003, Executive shall not, on his own
behalf or on behalf of any other person, corporation or entity, either directly
or indirectly, solicit, induce, recruit or cause another person in the employ
of United or its affiliates to terminate his or her employment for the purpose
of joining, associating or becoming an

 

 

employee with any business which is in competition with any business or
activity engaged in by United or its affiliates.

     (d)  The Executive agrees that damages at law will be an insufficient
remedy to United in the event that the Executive violates any of the provisions
of paragraph (a), (b) or (c) of this Section 4, and that United may apply for
and, upon the requisite showing, have injunctive relief in any court of
competent jurisdiction to restrain the breach or threatened or attempted breach
of or otherwise to specifically enforce any of the covenants contained in
paragraph (a), (b) or (c) of this Section 4. The Executive hereby consents to
any injunction (temporary or otherwise) which may be issued against the
Executive and to any other court order which may be issued against the
Executive from violating, or directing the Executive to comply with, any of the
covenants in paragraph (a), (b) or (c) of this Section 4. The Executive also
agrees that such remedies shall be in addition to any and all remedies,
including damages, available to United against the Executive for such breaches
or threatened or attempted breaches.

     (e)  In addition to United’s rights set forth in paragraph (d) of this
Section 4, in the event that the Executive shall violate the terms and
conditions of paragraphs (a), (b) or (c) of this Section 4, United and its
subsidiaries may terminate any payments or benefits of any type and regardless
of source payable by United or its subsidiaries, if applicable, to the
Executive, other than with respect to payments or benefits to the Executive
under plans or arrangements that are covered by the Employee Retirement Income
Security Act of 1974, as amended.

     5.     Release.

     (a)  For, and in consideration of the commitments made herein by United,
the Executive, for himself and for his heirs and assigns, does hereby release
completely and forever discharge United and its subsidiaries, the Company and
its subsidiaries and the affiliates, stockholders, attorneys, officers,
directors, agents, employees, successors, assigns and any other party
associated with United or any of its subsidiaries or with the Company or any of
its subsidiaries (the “Released Parties”), to the fullest extent permitted by
applicable law, from any and all claims, rights, demands, actions, liabilities,
obligations, causes of action of any and all kind, nature and character
whatsoever, known or unknown, in any way connected with his employment by the
Company or any of its subsidiaries (including in each case predecessors
thereof), either as a director, officer or employee, or termination of such
employment. Notwithstanding the foregoing, the Executive does not release
United from any obligations of United to the Executive under (i) the Employee
Benefit Plans, (ii) Section 7.11 of the Merger Agreement and (iii) this
Agreement.

     (b)  For and in consideration of the commitments made herein by the
Executive, including without limitation the releases in paragraph (a) above,
United, for itself, and for its successors and assigns does hereby release
completely and forever discharge the Executive and his heirs and assigns, to
the fullest extent permitted by applicable law, from any and all claims,
rights, demands, actions, liabilities, obligations, causes of action of any and
all kind, nature and character whatsoever, known or unknown, in any way
connected with the Executive’s employment by the Company or any of its
subsidiaries (including predecessors thereof), either as a director, officer or
employee. Notwithstanding anything in the foregoing to the contrary, United
does not release the Executive from claims arising out of (i) any breach by the
Executive of any law or regulation by the Executive during the term of and
related to his employment by the Company or any of its subsidiaries (including
in each case predecessors thereof), either as a director, officer or employee,
(ii) fraud or willful misconduct by the Executive in his capacity as a
director, officer or employee of the Company or the Bank (including in each
case predecessors thereof) or (iii) breach of this Agreement.

 

 

     6.     Representations and Warranties.

     (a)  The parties hereto represent and warrant to each other that they have
carefully read this Agreement and consulted with respect thereto with their
respective counsel and that each of them fully understands the content of this
Agreement and its legal effect.

     (b)  The Company and the Bank represent and warrant to each other party
hereto that (i) this Agreement and all actions of the Company and the Bank
contemplated hereby have been authorized by all necessary corporate action of
the Company and the Bank and (ii) the Company and the Bank have duly executed
and delivered a copy of this Agreement and, assuming due authorization,
execution and delivery of this Agreement by United and due execution and
delivery of this Agreement by the Executive, this Agreement is a valid and
legally binding obligation of the Company and the Bank, enforceable against the
Company and the Bank in accordance with its terms.

     (c)  United represents and warrants to each other party hereto that (i)
this Agreement and all actions of United contemplated hereby have been
authorized by all necessary corporate action of United and (ii) United has duly
executed and delivered a copy of this Agreement and, assuming due
authorization, execution and delivery of this Agreement by the Company and the
Bank and due execution and delivery of this Agreement by the Executive, this
Agreement is a valid and legally binding obligation of United, enforceable
against United in accordance with its terms.

     (d)  The Executive Officer represents and warrants to each other party
hereto that this Agreement is a valid and legally binding obligation of the
Executive which is enforceable against the Executive in accordance with its
terms.

     7.     Certain Additional Payments by United.

     (a)  In the event it shall be determined that any payment, distribution or
benefit provided by United, the Company or the Bank to or for the benefit of
the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise, but determined without regard to
any additional payments required under this Section 7) (a “Payment”) would be
subject to the excise tax imposed by Section 4999 of the Code or any interest
or penalties are incurred by the Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the Executive
shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an
amount such that after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

     (b)  Subject to the provisions of Section 7(c), all determinations required
to be made under this Section 7, including whether and when a Gross-Up Payment
is required and the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determination, shall be made by a certified public
accounting firm as may be designated by United and reasonably acceptable to the
Executive (the “Accounting Firm”). All fees and expenses of the Accounting
Firm shall be borne solely by United. Any Gross-Up Payment, as determined
pursuant to this Section 7, shall be paid by United to the Executive within
five days of the due date for the payment of any Excise Tax. Any determination
by the Accounting Firm shall be binding upon United and the Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by United should
have

 

 

been made (an “Underpayment”), consistent with the calculations required to be
made hereunder. In the event that United exhausts its remedies pursuant to
Section 7(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by United to
or for the benefit of the Executive.

     (c)  The Executive shall notify United in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by
United of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than five business days after the Executive is
informed in writing of such claim and shall apprise United of the nature of
such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which it gives such notice to United (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due). If United notifies the Executive in writing prior to the expiration
of such period that it desires to contest such claim, the Executive shall:

          (i) give United any information reasonably requested by United relating to
such claim;

	 	 	 
	 	 	
     (ii) take such action in connection with contesting such claim as
United shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such
claim by an attorney reasonably selected by United;
	 	 	 
	 	 	
     (iii) cooperate with United in good faith in order effectively to
contest such claim; and

          (iv) permit United to participate in any proceedings relating to such
claim;

provided, however, that United shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions
of this Section 7(c), United shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest
to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as United shall determine;
provided, however, that if United directs the Executive to pay such claim and
sue for a refund, United shall advance the amount of such payment to the
Executive, on an interest-free basis, and shall indemnify and hold the
Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, United’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

 

 

	 	 	(d) If, after the receipt by the Executive of an amount advanced by United
pursuant to Section 7(c), the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall (subject to United’s
complying with the requirements of Section 7(c)) promptly pay to United the
amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of
an amount advanced by United pursuant to Section 7(c), a determination is
made that the Executive shall not be entitled to any refund with respect to
such claim and United does not notify the Executive in writing of its intent
to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

     8.     Successors and Assigns. This Agreement will inure to the benefit of
and be binding upon the Executive and his assigns, and upon United, the Company
and the Bank, including any successor thereto by merger or consolidation or any
other change in form or any other person or firm or corporation to which all or
substantially all of the assets and business of United, the Company or the Bank
may be sold or otherwise transferred. This Agreement may not be assigned by
any party hereto without the written consent of the other parties.

     9.     Notices. Any communication to a party required or permitted under this
Agreement, including any notice, direction, designation, consent, instruction,
objection or waiver, shall be in writing and shall be deemed to have been given
at such time as it is delivered personally, or five (5) days after mailing if
mailed, postage prepaid, by registered or certified mail, return receipt
requested, addressed to such party at the address listed below or at such other
address as one such party may by written notice specify to the other party or
parties, as applicable:

	 	 	 
	 	 	
If to the Executive, to the Executive’s attention at:
	 	 	 
	 	 	
J. Paul McNamara

5512 Oak Place

Bethesda, Maryland 20817
	 	 	 
	 	 	
If to United:
	 	 	 
	 	 	
United Bankshares, Inc.

514 Market Street

Parkersburg, West Virginia 26101

     10.     Withholding. United may withhold from any amounts payable under this
Agreement such Federal, state, local or foreign taxes as shall be required to
be withheld pursuant to any applicable law or regulation.

 

 

     11.     Entire Agreement; Severability.

     (a)  This Agreement contains the entire agreement of the parties relating
to the subject matter hereof and from and after the Effective Time shall
supersede in its entirety any and all prior agreements or understandings,
whether written or oral, between the Employers and the Executive relating to
the subject matter hereof, including without limitation the Employment
Agreements. In reaching this Agreement, no party has relied upon any
representation or promise except those set forth herein.

     (b)  Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of
this Agreement is so broad as to be unenforceable, the provision shall be
interpreted to be only so broad as is enforceable. In all such cases, the
parties shall use their reasonable best efforts to substitute a valid, legal
and enforceable provision which, insofar as practicable, implements the
original purposes and intents of this Agreement.

     12.     Amendment; Waiver.

     (a)  This Agreement may not be amended, supplemented or modified except by
an instrument in writing signed by each party hereto.

     (b)  Failure to insist upon strict compliance with any of the terms,
covenants or conditions hereof shall not be deemed a waiver of such term,
covenant or condition. A waiver of any provision of this Agreement must be
made in writing, designated as a waiver and signed by the party against whom
its enforcement is sought. Any waiver or relinquishment of any right or power
hereunder at any one or more times shall not be deemed a waiver or
relinquishment of such right or power at any other time or times.

     13.     Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and all of which shall
constitute one and the same Agreement.

     14.     Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the Commonwealth of Virginia applicable
to agreements made and entirely to be performed within such jurisdiction.

     15.     Headings. The headings of sections in this Agreement are for
convenience of reference only and are not intended to qualify the meaning of
any section. Any reference to a section number shall refer to a section of
this Agreement, unless otherwise stated.

     16.     Gender. References herein to the masculine gender shall be deemed to
refer to the feminine gender where appropriate.

     17.     Termination. This Agreement shall terminate upon the date, if any, of
termination of the Merger Agreement in accordance with its terms. Upon such
termination, no party shall have any further obligations or liabilities
hereunder, provided, however, that any such termination shall not relieve any
party from liability for any willful breach of this Agreement prior to such
termination.

[Signature page to follow]

 

 

     IN WITNESS WHEREOF, each of the undersigned has entered into this
Agreement as of the day and year first above written.

	 	 	 	 	 
	 	 	UNITED BANKSHARES, INC.
	 	 	 	 	 
	 	 	
By:
	 	/s/ Richard M. Adams
	 	 	 	

	 	 	 	 	Name: Richard M. Adams
	 	 	 	 	Title: Chairman and
Chief Executive Officer
	 	 	 	 	 
	 	 	SEQUOIA BANCSHARES, INC.
	 	 	 	 	 
	 	 	
By:
	 	/s/ James G. Tardiff
	 	 	 	

	 	 	 	Name: James G. Tardiff
	 	 	 	Title: Chief Executive Officer
	 	 	 	 	 
	 	 	SEQUOIABANK
	 	 	 	 	 
	 	 	
By:
	 	/s/ James G. Tardiff
	 	 	 	

	 	 	 	Name: James G. Tardiff
	 	 	 	Title: Chief Executive Officer
	 	 	 	 	 
	 	 	 	/s/ J. Paul McNamara
	 	 	

	 	 	J. Paul McNamara

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