Document:

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                                                                     EXHIBIT 4.8

                        PATAPSCO VALLEY BANCSHARES, INC.
                           INCENTIVE STOCK OPTION PLAN

                                   SECTION ONE
                                   DEFINITIONS

        As used herein:

        1. The word "Corporation" means Patapsco Valley Bancshares, Inc., a
Maryland corporation and, collectively, Patapsco Valley Bancshares, Inc. and its
subsidiaries.

        2. The word "Plan" means the Patapsco Valley Bancshares, Inc. Incentive
Stock Option Plan, as herein set forth.

        3. The words "Officer/Key Employees" means the President of the
Corporation and those officers who are selected by the President of the
Corporation to receive stock options as provided in Section Three hereof.

        4. The word "Optionee" means an Officer/Key Employee holding a stock
option under the Plan.

                                   SECTION TWO
                                    PURPOSES

        The purposes of the Plan are:

        1. To encourage the sense of proprietorship on the part of Officer/Key
Employees who will be largely responsible for the continued growth of the
Corporation;

        2. To recognize past valuable services of such Officer/Key Employees;

        3. To furnish such Officer/Key Employees with further incentive to
develop and promote the business and financial success of the Corporation;

        4. To induce such Officer/Key Employees to continue in the service of
the Corporation, by providing a means whereby such Officer/Key Employees of the
Corporation may be given an opportunity to purchase stock in the Corporation.

                                  SECTION THREE
                                 ADMINISTRATION

        1. The Incentive Stock Option Plan shall be administered by the
President of the Corporation.

        2. Subject to the express provisions of the Plan, the President of the
Corporation shall have full power and authority, in his discretion, to determine
initially and from time to time those Officer/Key Employees to whom options are
to be granted and, subject to the limitations imposed by Section Five hereof,
the times when such options shall be granted and the number of shares to be
covered by each

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option. An option to purchase one thousand nine hundred fifty (1,950) shares
shall be granted to the President during each year of the first three (3) years
of the Plan. Options to purchase the remaining twelve thousand six hundred
(12,600) shares under the Plan may be granted only to Officer/Key Employees
other than the President and shall, if granted, be granted during the first
three (3) years of the Plan. Accomplishments of individuals in furthering the
interests of the Corporation shall be the primary guide of the President in
apportioning the number of shares to be optioned to Officer/Key Employees, but
the President may take into consideration the position held by an Officer/Key
Employee, his compensation, and other factors that the President may deem
pertinent.

        3. Subject to the express provisions of the Plan, the President of the
Corporation shall also have the power and authority to construe and interpret
the Plan and the respective option agreements entered into thereunder, and to
make all other determinations necessary or advisable for administering the Plan.

                                  SECTION FOUR
                                   ELIGIBILITY

        Options may be granted only to the President of the Corporation, and
Officer/Key Employees selected in accordance with the provisions of this Plan by
the President of the Corporation, and who at the time the option is granted does
not own stock possessing more than ten percent (10%) of the total combined
voting power of all classes of the outstanding stock of the Corporation. For
this purpose the attribution of stock ownership rules provided in section 424(d)
of the Internal Revenue Code of 1986 shall apply.

                                  SECTION FIVE
                             SHARES SUBJECT TO PLAN

        The stock to be sold pursuant to options granted under this Plan shall
be authorized but unissued shares of the common stock of the Corporation.
Subject to adjustment made in accordance with Section Thirteen hereof, the total
number of shares which may be issued under this Plan shall not exceed eighteen
thousand four hundred fifty (18,450) shares, and the aggregate fair market value
of shares as to which an option or options may be exercised by any one
individual during any single calendar year under all plans of the Corporation
shall not have an aggregate fair market value in excess of the sum of $100,000
determined as of the time the option(s) with respect to such stock is granted.
In the event any unexercised options lapse or terminate for any reason, the
shares covered thereby may be optioned to other persons, and such lapsed or
terminated options shall not be considered in computing the total number of
shares optioned.

                                   SECTION SIX
                                  OPTION PRICE

        The purchase price of the shares under each option granted pursuant to
the Plan shall be not less than one hundred percent (100%) of the fair market
value of the stock on the date such option is granted. If the stock is listed or
has trading privileges on a national securities exchange, the fair market value
shall be the mean between the high and low selling prices on the date of the
granting of such option, or if there are no sales on that date, the mean between
the high and low selling prices on the last day prior thereto on which sales
were made. If the stock is not listed on any exchange, the fair market value of
the stock on the date such option is granted shall be determined by the
President of the Corporation.

                                  SECTION SEVEN
                               DURATION OF OPTIONS

        Each option granted hereunder shall expire on the 10th anniversary of
the date the option was granted, unless sooner terminated under the provisions
of Section Eight hereof.

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                                  SECTION EIGHT
                             TERMINATION OF OPTIONS

        1. In the event of termination of the employment of an Optionee for any
cause, other than death, disability resulting in coverage under the long-term
disability plan of the Corporation, or retirement of the Optionee, whether by
reason of resignation or discharge, each option granted such Optionee shall
terminate immediately prior to such termination.

        2. Each option granted an Optionee shall terminate twelve (12) months
from the date of such Optionee's death, provided such Optionee at the time of
his death was in the employ of the Corporation.

                                  SECTION NINE
                               EXERCISE OF OPTIONS

        1. Subject to the terms and conditions of the Plan, options shall be
exercised by written notice to the President of the Corporation, at the
Corporation's principal office, 8593 Baltimore National Pike, Ellicott City,
Maryland, 21043, as provided in the option agreements entered into hereunder.

        2. No option may be exercised unless and until the Optionee shall have
remained in the continuous employ of the Corporation for thirty-six (36) months
from the date such option was granted and the Optionee is an employee of the
Corporation at the time of exercise; except, however, that in the event of the
death of such Optionee while in the employ of the Corporation, or retirement of
such Optionee under the Corporation's retirement plan within twenty-four (24)
months from the date such option was granted, such option shall become
exercisable immediately on the date of such death or retirement.

        3. An option may be exercised either at one time as to the total number
of shares covered thereby, or from time to time as to any portion thereof in
units of one hundred (100) shares or multiples thereof.

        4. On the exercise of an option, a certificate or certificates
evidencing the shares as to which the option is exercised shall be delivered to
the person exercising the option.

        5. Subject to the limitations imposed by Sections Seven and Eight
hereof, in the event of the death of an Optionee, the option or options
theretofore granted to him may be exercised by the legal representatives of the
estate of the Optionee or by the person or persons to whom his rights under the
option or options shall pass by will or the laws of descent and distribution.

                                   SECTION TEN
                                     PAYMENT

        Payment of the purchase price for shares purchased under options granted
under the Plan may be made in cash, by check made payable to the order of the
Corporation, with shares of the Corporation to the extent of the fair market
value of such shares, or a combination thereof, at the time of the exercise of
the option in the manner provided in Section Nine hereof.

                                 SECTION ELEVEN
                          NONTRANSFERABILITY OF OPTIONS

        An option granted under the Plan may not be transferred except by will
or the laws of descent and distribution and, during the lifetime of the
Optionee, may be exercised only by him.

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                                 SECTION TWELVE
                        PURCHASE OF SHARES FOR INVESTMENT

        Each Optionee and each other person who shall exercise an option shall
represent and agree that all shares purchased pursuant to such option will be
purchased for investment and not for distribution or resale thereof.

                                SECTION THIRTEEN
                              ADJUSTMENT OF SHARES

        In the event of a merger, consolidation, reorganization,
recapitalization, reclassification of stock, stock dividend, split-up, or other
change in the Corporate structure or capitalization of the Corporation affecting
the Corporation's common stock as presently constituted, appropriate adjustments
shall be made by the President of the Corporation in the aggregate number and
kind of shares subject to the Plan, the maximum number and kind of shares for
which options may be granted in any calendar year, the maximum number and kind
of shares for which options may be granted to any one Officer/Key Employee, and
the number and kind of shares and the price per share subject to outstanding
options.

                                SECTION FOURTEEN
                     REGISTRATION OR QUALIFICATION OF SHARES

        Each option shall be subject to the condition that, if at any time the
President of the Corporation shall determine in his discretion that the
registration or qualification of the shares covered thereby under any state or
federal law is necessary or desirable as a condition of or in connection with
the granting of such option or the delivery of shares on the exercise thereof,
no such option may be granted or, if granted, delivery of shares on the exercise
thereof shall be deferred, until such registration or qualification shall have
been effected. In the event the President determines that registration or
qualification of shares is necessary or desirable, the Corporation shall, at its
expense, take such action as may be required to effect such registration or
qualification.

                                 SECTION FIFTEEN
                                 FORM OF OPTION

        The form of option to be granted pursuant to the Plan shall be approved
by the President of the Corporation.

                                 SECTION SIXTEEN
                  SUSPENSION, AMENDMENT, OR TERMINATION OF PLAN

        Unless the Plan shall theretofore have been terminated by the President
of the Corporation, the Plan shall terminate on February 25, 2008. The President
of the Corporation shall have the right, at any time, to suspend, amend, or
terminate the Plan; provided, however, that, unless duly approved by the holders
of a majority of the common stock of the Corporation, no amendment shall
increase the total number of shares that shall be the subject of the Plan or
change the formula for determining the purchase price for the optioned shares,
and provided further that no termination of the Plan or action by the President
in amending or suspending the Plan shall affect or impair the rights of an
Optionee under any option previously granted under the Plan without the consent
of such Optionee.

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                                SECTION SEVENTEEN
                             EFFECTIVE DATE OF PLAN

        This Plan shall be submitted to the shareholders of the Corporation at
the annual meeting to be held on the 21st day of April, 1998, and shall become
operative and effective on its adoption by the shareholders of the Corporation
at such meeting.

ATTEST:                                 PATAPSCO VALLEY BANCSHARES, INC.

/s/ Edwin B. Mckee                      /s/ Howard E. Harrison, III
--------------------------------        -----------------------------------
                                        Chairman of the Board
                                        of Directors

                         APPROVAL BY BOARD OF DIRECTORS

        The Board of Directors of Patapsco Valley Bancshares, Inc. duly approved
the within Incentive Stock Option Plan on February 25, 1998, subject to the
further approval of the shareholders of Patapsco Valley Bancshares, Inc.

                                        /s/ Edwin B. Mckee
                                        -----------------------------------
                                        Secretary of the
                                        Board of Directors

                            APPROVAL OF SHAREHOLDERS

        The Shareholders of Patapsco Valley Bancshares, Inc., after due notice,
duly approved the within Incentive Stock Option Plan on April 21, 1998, at the
annual meeting.

                                        /S/ Edwin B. Mckee
                                        -----------------------------------
                                        Secretary of Shareholders
                                        Meeting<PAGE>

                                                                     EXHIBIT 4.9

                        PATAPSCO VALLEY BANCSHARES, INC.
                          DIRECTOR'S STOCK OPTION PLAN

                                   SECTION ONE
                                   DEFINITIONS

        As used herein:

        1. The word "Corporation" means Patapsco Valley Bancshares, Inc., a
Maryland corporation.
        2. The word "Plan" means the Patapsco Valley Bancshares, Inc. Director's
Stock Option Plan, as herein set forth.

        3. The word "Directors" means those individuals who are non-employee
members of the Board of Directors of the Corporation.

        4. The word "Optionee" means a Director holding a stock option under the
Plan.

                                   SECTION TWO
                                    PURPOSES

        The purposes of the Plan are:

        1. To encourage the sense of proprietorship on the part of Directors;

        2. To recognize past valuable services of such Directors;

        3. To furnish such Directors with further incentive to develop and
promote the business and financial success of the Corporation;

        4. To induce such Directors to continue in the service of the
Corporation, by providing a means whereby such Directors of the Corporation may
be given an opportunity to purchase stock in the Corporation.

                                  SECTION THREE
                                 ADMINISTRATION

        1. The Plan shall be administered by the President of the Corporation.
Options to purchase seven thousand (7,000) shares of the common stock of the
Corporation shall be granted each year during the first three years of the Plan.
Each Director shall receive equal treatment with respect to the option grants.

        2. Subject to the express provisions of the Plan, the President of the
Corporation shall also have the power and authority to construe and interpret
the Plan and the respective option agreements entered into thereunder, and to
make all other determinations necessary or advisable for administering the Plan.

<PAGE>

                                  SECTION FOUR
                                   ELIGIBILITY

        Options may be granted only to Directors.

                                  SECTION FIVE
                             SHARES SUBJECT TO PLAN

        The stock to be sold pursuant to options granted under this Plan shall
be authorized but unissued shares of the common stock of the Corporation.
Subject to adjustment made in accordance with Section Thirteen hereof, the total
number of shares which may be issued under this Plan shall not exceed twenty-one
thousand (21,000) shares. In the event any unexercised options lapse or
terminate for any reason, the shares covered thereby may be optioned to other
persons, and such lapsed or terminated options shall not be considered in
computing the total number of shares optioned.

                                   SECTION SIX
                                  OPTION PRICE

        The purchase price of the shares under each option granted pursuant to
the Plan shall be not less than one hundred percent (100%) of the fair market
value of the stock on the date such option is granted. If the stock is listed or
has trading privileges on a national securities exchange, the fair market value
shall be the mean between the high and low selling prices on the date of the
granting of such option, or if there are no sales on that date, the mean between
the high and low selling prices on the last day prior thereto on which sales
were made. If the stock is not listed on any exchange, the fair market value of
the stock on the date such option is granted shall be determined by the
President of the Corporation, but at no time shall the option price be less than
the book value per share on the date the option is issued.

                                  SECTION SEVEN
                               DURATION OF OPTIONS

        Each option granted hereunder shall expire on the 10th anniversary of
the date the option was granted, unless sooner terminated under the provisions
of Section Eight hereof.

                                  SECTION EIGHT
                             TERMINATION OF OPTIONS

        1. In the event of termination as a Director for any cause, other than
death or mandatory retirement because of age, each option granted such Optionee
shall terminate immediately prior to such termination.

        2. Each option granted an Optionee shall terminate twelve (12) months
from the date of such Optionee's death, provided such Optionee at the time of
his death was a Director of the Corporation.

                                  SECTION NINE
                               EXERCISE OF OPTIONS

        1. Subject to the terms and conditions of the Plan, options shall be
exercised by written notice to the President of the Corporation, at the
Corporation's principal office, 8593 Baltimore National Pike, Ellicott City,
Maryland, 21043, as provided in the option agreements entered into hereunder.

<PAGE>

        2. An Optionee may exercise his options immediately upon receipt
thereof.

        3. An option may be exercised either at one time as to the total number
of shares covered thereby, or from time to time as to any portion thereof in
units of one hundred (100) shares or multiples thereof.

        4. On the exercise of an option, a certificate or certificates
evidencing the shares as to which the option is exercised shall be delivered to
the person exercising the option.

        5. Subject to the limitations imposed by Sections Seven and Eight
hereof, in the event of the death of an Optionee, the option or options
theretofore granted to him may be exercised by the legal representatives of the
estate of the Optionee or by the person or persons to whom his rights under the
option or options shall pass by will or the laws of descent and distribution.

                                   SECTION TEN
                                     PAYMENT

        Payment of the purchase price for shares purchased under options granted
under the Plan may be made in cash, by check made payable to the order of the
Corporation, with shares of the Corporation to the extent of the fair market
value of such shares, or a combination thereof, at the time of the exercise of
the option in the manner provided in Section Nine hereof.

                                 SECTION ELEVEN
                          NONTRANSFERABILITY OF OPTIONS

        An option granted under the Plan may not be transferred except by will
or the laws of descent and distribution and, during the lifetime of the
Optionee, may be exercised only by him.

                                 SECTION TWELVE
                        PURCHASE OF SHARES FOR INVESTMENT

        Each Optionee and each other person who shall exercise an option shall
represent and agree that all shares purchased pursuant to such option will be
purchased for investment and not for distribution or resale thereof.

                                SECTION THIRTEEN
                              ADJUSTMENT OF SHARES

        In the event of a merger, consolidation, reorganization,
recapitalization, reclassification of stock, stock dividend, split-up, or other
change in the corporate structure or capitalization of the Corporation affecting
the Corporation's common stock as presently constituted, appropriate adjustments
shall be made by the President of the Corporation in the aggregate number and
kind of shares subject to the Plan, the maximum number and kind of shares for
which options may be granted in any calendar year, the maximum number and kind
of shares for which options may be granted to any one Director, and the number
and kind of shares and the price per share subject to outstanding options.

                                SECTION FOURTEEN
                     REGISTRATION OR QUALIFICATION OF SHARES

        Each option shall be subject to the condition that, if at any time the
President of the Corporation shall determine in his discretion that the
registration or qualification of the shares covered thereby under any state or
federal law is necessary or desirable as a condition of or in connection

<PAGE>

with the granting of such option or the delivery of shares on the exercise
thereof, no such option may be granted or, if granted, delivery of shares on the
exercise thereof shall be deferred, until such registration or qualification
shall have been effected. In the event the President determines that
registration or qualification of shares is necessary or desirable, the
Corporation shall, at its expense, take such action as may be required to effect
such registration or qualification.

                                 SECTION FIFTEEN
                                 FORM OF OPTION

        The form of option to be granted pursuant to the Plan shall be approved
by the President of the Corporation.

                                 SECTION SIXTEEN
                  SUSPENSION, AMENDMENT, OR TERMINATION OF PLAN

        Unless the Plan shall theretofore have been terminated by a simple
majority of the Board of Directors of the Corporation, the Plan shall terminate
on February 25, 2008. A simple majority of the Board of Directors of the
Corporation shall have the right, at any time, to suspend, amend, or terminate
the Plan; provided, however, that unless duly approved by the holders of a
majority of the common stock of the Corporation no amendment shall increase the
total number of shares that shall be the subject of the Plan or change the
formula for determining the purchase price for the optioned shares, and provided
further that no termination of the Plan or action by a simple majority of the
Board of Directors in amending or suspending the Plan shall affect or impair the
rights of an optionee under any option previously granted under the Plan.

        No option may be granted under the Plan during any suspension thereof or
after the termination thereof.

                                SECTION SEVENTEEN
                             EFFECTIVE DATE OF PLAN

        This Plan shall be submitted to the shareholders of the Corporation at
the annual meeting to be held on the 21st day of April, 1998, and shall become
operative and effective on its adoption by the shareholders of the Corporation
at such meeting.

ATTEST:                                 PATAPSCO VALLEY BANCSHARES, INC.

/s/ Edwin B. McKee                      By /s/ Howard E. Harrison, III
--------------------------------        -----------------------------------
                                        Chairman of the Board
                                        of Directors

                         APPROVAL BY BOARD OF DIRECTORS

        The Board of Directors of Patapsco Valley Bancshares, Inc. duly approved
the within Director's Stock Option Plan on February 25, 1998, subject to the
further approval of the shareholders of Patapsco Valley Bancshares, Inc.

                                        /s/ Edwin B. McKee
                                        ----------------------------------
                                        Secretary of the
                                        Board of Directors

<PAGE>

                            APPROVAL OF SHAREHOLDERS

        The Shareholders of Patapsco Valley Bancshares, Inc., after due notice,
duly approved the within Director's Stock Option Plan on April 21, 1998, at the
annual meeting.

                                        /s/ Edwin B. McKee
                                        -----------------------------------
                                        Secretary of Shareholders
                                        Meeting

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