Document:

EXHIBIT 4(a)

                            FAUQUIER BANKSHARES, INC.

                    NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

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                                                                    EXHIBIT 4(a)
                           FAUQUIER BANKSHARES, INC.

                    NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN
                    ---------------------------------------

                                   ARTICLE I

                                  DEFINITIONS
                                  -----------

1.01. Agreement means a written agreement (including any amendment or supplement
thereto) between the Company and a Participant specifying the terms and
conditions of an Award granted to such Participant.

1.02. Award means an award of Options as provided for hereunder.

1.03. Bank means The Fauquier Bank, or its successors.

1.04. Board means the Board of Directors of the Company.

1.05. Code means the Internal Revenue Code of 1986, as amended.

1.06. Common Stock means the common stock of the Company.

1.07. Company means Fauquier Bankshares, Inc. and its subsidiaries, or such
successors thereto.

1.08. Date of Grant means each April 1st during the term of the Plan.

1.09. Fair Market Value means the average of the five most recent trades of the
Common Stock on the over-the-counter market during the period, not to exceed 30
calendar days, immediately preceding an Option's Date of Grant, or if there are
insufficient trades, then the Fair Market Value shall be determined as of the
Date of Grant in good faith by the Board of Directors.

1.10. Option means a stock option granted pursuant to Article IV, and that
entitles the holder to purchase from the Company a stated number of shares of
Common Stock at the shares' Fair Market Value.

1.11. Participant means a member of the Board who is not an employee of the
Company or the Bank on the applicable Date of Grant.

1.12. Plan means the Fauquier Bankshares, Inc. Non-Employee Director Stock
Option Plan.

                                   ARTICLE II

                                    PURPOSE
                                    -------

The Plan is intended to promote a greater identity of interest between
Participants and the Company's shareholders by

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increasing the Participants' proprietary interest in the Company through the
receipt of Awards in the form of Options.

                                  ARTICLE III

                                 ADMINISTRATION
                                 --------------

The Plan shall be administered by the one or more persons who are employees of
the Company and directors of the Board (the "Employee Directors"), and such
additional employees as the Employee Directors shall appropriately designate,
who shall have complete authority to interpret all provisions of this Plan; to
prescribe the form of Agreements; to adopt, amend, and rescind rules and
regulations pertaining to the administration of the Plan; and to make all other
determinations necessary or advisable for the administration of this Plan. Any
decision made, or action taken, by the Employee Directors in connection with the
administration of this Plan shall be final and conclusive. All expenses of
administering this Plan shall be borne by the Company.

                                   ARTICLE IV

                                GRANT OF OPTIONS
                                ----------------

On each Date of Grant during the term of the Plan, each Participant
automatically will receive an Option for shares of Common Stock determined in
accordance with the following schedule:

                                            Number of Shares
        Date of Grant                       Subject to Option
        -------------                       -----------------

        April 1, 1995                             140
        April 1, 1996                             140
        April 1, 1997                             140
        April 1, 1998                             140
        April 1, 1999                             140

All Options shall be evidenced by Agreements which shall be subject to the
applicable provisions of the Plan and to such other provisions as the Employee
Directors may adopt.

                                   ARTICLE V

                            STOCK SUBJECT TO OPTIONS
                            ------------------------

Upon the exercise of any Option, the Company may deliver to the Participant (or
the Participant's broker if the Participant so directs) authorized but unissued
Common Stock. The maximum aggregate number of shares of Common Stock that may be
issued pursuant to the exercise of Options under this Plan is 7,700, subject to
adjustment as provided in Article IX. If an Option is terminated, in whole or in
part, for any reason other than its

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exercise, the number of shares of Common Stock allocated to the Option or
portion thereof may be reallocated to other Options to be granted under this
Plan.

                                   ARTICLE VI

                                  OPTION PRICE
                                  ------------

The price per share for Common Stock purchased on the exercise of an Option
shall be the share's Fair Market Value.

                                  ARTICLE VII

                              EXERCISE OF OPTIONS
                              -------------------

7.01. Maximum Option Period. No Option shall be exercisable after the expiration
of ten years from its Date of Grant.

7.02. Nontransferability. Options granted under this Plan shall be
nontransferable except by will or by the laws of descent and distribution.
During the lifetime of the Participant to whom the Option is granted, the Option
may be exercised only by the Participant. No right or interest of a Participant
in any Option shall be liable for, or subject to, any lien, obligation, or
liability of such Participant.

                                  ARTICLE VIII

                         METHOD OF EXERCISE OF OPTIONS
                         -----------------------------

8.01. Exercisability of Options. Subject to the provisions of Articles VII and
X, an Option becomes exercisable six months after its Date of Grant. However, an
Option granted to a Participant shall be immediately exercisable if the
Participant's membership on the Board terminates as a result of the
Participant's retirement in accordance with Company policy, death or permanent
and total disability (as such term is defined in Section 22(e)(3) of the Code).
An Option shall be forfeited if, as of the termination of the Participant's
membership on the Board, the Option is not then exercisable and such termination
occurs for any reason other than the Participant's retirement in accordance with
Company policy, death or disability (as defined above). Options that are
exercisable or that become exercisable upon the Participant's termination of
membership on the Board will remain exercisable until the tenth anniversary of
the Option's Date of Grant. An Option may be exercised with respect to any
number of whole shares less than the full number for which the Option could be
exercised. A partial exercise of an Option shall not affect the right to
exercise the Option from time to time in accordance with this Plan and the
applicable Agreement with respect to shares remaining subject to the option.

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8.02. Payment. Unless otherwise provided by the Agreement, payment of the
Option price shall be made in cash or a cash equivalent acceptable to the Board.
In addition, all or part of the Option price may be paid by surrendering shares
of Common Stock to the Company. If Common Stock is used to pay all or part of
the Option price, the shares surrendered must have a fair market value
(determined as of the day before the date of exercise and based on the average
of the five most recent trades of the Common Stock on the over-the-counter
market during the period, not to exceed 30 calendar days, preceding such date)
that is not less than such price or part thereof.

8.03. Shareholder Rights. No Participant shall have any rights as a stockholder
with respect to shares subject to his Option until the date of exercise of such
Option.

                                   ARTICLE IX

                     ADJUSTMENT UPON CHANGE IN COMMON STOCK
                     --------------------------------------

The maximum number of shares to which Awards may be granted under this Plan
shall be proportionately adjusted, and the terms of outstanding Awards shall be
adjusted, as the Employee Directors shall determine to be equitably required in
the event that the Company (a) effects one or more stock dividends, stock
split-ups, subdivisions or consolidations of shares or (b) engages in a
transaction to which Section 424 of the Code applies. Any determination made
under this Article IX by the Board shall be final and conclusive.

The issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property, or for
labor or services, either upon direct sales or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares of obligations of
the Company convertible into such shares or other securities, shall not affect,
and no adjustment by reason thereof shall be made with respect to, outstanding
Awards.

                                   ARTICLE X

             COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES
             -----------------------------------------------------

No Option shall be exercisable, no Common Stock shall be issued, no certificates
for shares of Common Stock shall be delivered, and no payment shall be made
under this Plan except in compliance with all applicable federal and state laws
and regulations (including, without limitation, withholding tax requirements),
and applicable requirements of any exchange or other market having authority
over the trading of the Company's shares.

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                                   ARTICLE XI

                               GENERAL PROVISIONS
                               ------------------

12.01. Effect on Service. Neither the adoption of this Plan, its operation,
documents describing or referring to this Plan (or any part thereof) shall
confer on any Participant any right to continue service as a member of the
Board.

12.02. Unfunded Plan. The Plan, insofar as it provides for grants, shall be
unfunded and the Company shall not be required to segregate any assets that may
be represented at any time by grants under this Plan. Any liability of the
Company to any person with respect to any grant under this Plan shall be based
solely upon any contractual obligations that are created pursuant to this Plan.
No such obligation of the Company shall be deemed to be secured by any pledge
of, or other encumbrance on, any property of the Company.

12.03. Rules of Construction. Headings are given to the articles and sections of
the Plan solely as a convenience to facilitate reference. The reference to any
statute, regulation, or provision of law shall be construed to refer to any
amendment to or successor of such provision of law.

                                  ARTICLE XII

                                   AMENDMENT
                                   ---------

The Board may amend this Plan from time to time; provided that, if the Board
determines that shareholder approval is required and the Plan is submitted for
such approval and adopted, then no subsequent amendment may become effective
until shareholder approval is obtained if the amendment (i) materially increases
the aggregate number of shares of Common Stock that may be issued under the
Plan, except in accordance with the provisions of Article IX, (ii) materially
changes the class of individuals eligible to become Participants or (iii).
materially increases the benefits that may accrue to Participants under the
Plan, and provided further that the Board may not amend the Plan more than once
in any six month period unless such amendment is required to comply with the
Code. No amendment shall, without a Participant's consent, adversely affect any
rights of such Participant under any Option outstanding at the time such
amendment is made.

                                  ARTICLE XIII

                                  TERMINATION
                                  -----------

The Board may terminate this Plan at any time. This Plan will

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terminate automatically, without any action of the Board, if, on any Date of
Grant, there are insufficient shares available for the grant of Awards in
accordance with the terms of the Plan. The termination of this Plan shall not
affect any rights of a Participant under any Option outstanding at the time of
such termination.

                                  ARTICLE XIV

                                DURATION OF PLAN
                                ----------------

No Award may be granted under this Plan after ten years from the date of the
first grant of an Option under the Plan. Options granted on or before such date
shall remain valid in accordance with their terms.

                                   ARTICLE XV

                             EFFECTIVE DATE OF PLAN
                             ----------------------

This Plan was approved by the Board of Directors of the Company on February 16,
1995. The Effective Date of the Plan shall be April 1, 1995 and no Awards may be
granted prior to the Effective Date.EXHIBIT 4(b)

                            FAUQUIER BANKSHARES, INC.

                           OMNIBUS STOCK OWNERSHIP AND
                            LONG TERM INCENTIVE PLAN

                 AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000

         THIS IS THE OMNIBUS STOCK OWNERSHIP AND LONG TERM INCENTIVE PLAN
("Plan") of FAUQUIER BANKSHARES, INC. (the "Corporation" or "Company"), a
Virginia corporation with its principal office in Warrenton, Virginia, under
which Incentive Stock Options to acquire shares of the Stock may be granted from
time to time to Eligible Employees, and Non-Qualified Options to acquire shares
of the Stock, Restricted Stock, Stock Appreciation Rights, and/or Units may be
granted from time to time to Eligible Employees and Non-Employee Directors of
the Corporation and of any of its Subsidiaries (the "Subsidiaries"), subject to
the following provisions:

                                    ARTICLE I
                                   DEFINITIONS

         The following terms shall have the meanings set forth below. Additional
terms defined in this Plan shall have the meanings ascribed to them when first
used herein.

         1.1      BOARD.  The Board of Directors of FAUQUIER BANKSHARES, INC.

         1.2      CHANGE IN CONTROL TRANSACTION.

         (a) Any person, including a "group" as defined in Section 13(d)(3) of
the 1934 Act becomes the owner or beneficial owner of securities of the Company
or of the Fauquier Bank (the "Bank") having 20% or more of the combined voting
power of the then outstanding Bank of Company securities that may be cast for
the election of the Bank or Company directors other than a result of an issuance
of securities initiated by the Bank or Company, as long as the majority of the
Board of Directors approving the purchases is a majority at the time the
purchases are made; or

         (b) as the direct or indirect result of, or in connection with, a
tender or exchange offer, a merger or other business combination, a sale of
assets, contested election, or any combination of these events, the persons who
were directors of the Bank or Company before such events cease to constitute a
majority of the Bank's or Company's Board, or any successor's board, within two
years of the last of such transactions.

         For purposes of this Agreement, the date of the Change in Control
Transaction is the date on which an event described in (a) or (b) occurs. If a
Change in Control Transaction occurs on account of a series of transactions, the
date of the Change in Control Transaction is the date of the last of such
transactions.

         1.3      CODE.  The Internal Revenue Code of 1986, as amended.

         1.4      COMMITTEE.  The Compensation Committee of the Board.

         1.5      COMMON STOCK. The common stock,  $3.13 par value per share, of
                  the Corporation.

         1.6      DEATH.  The date of death as established by the relevant death
                  certificate.

<PAGE>

         1.7 DISABILITY. For purposes of Incentive Stock Options, the date on
which an Eligible Employee becomes permanently and totally disabled within the
meaning of Section 22 (e) (3) of the Code, which shall be determined by the
Committee on the basis of such medical or other evidence as it may reasonably
require or deem appropriate. For purposes of other Rights, the date on which an
Eligible Employee or Non-Employee Director becomes disabled as determined by the
Committee in its sole discretion on the basis of such medical or other evidence
as it may reasonably require or deem appropriate

         1.8 EFFECTIVE DATE. The date on which this Plan is adopted by the
Board.

         1.9 ELIGIBLE EMPLOYEES. Those individuals who meet the following
eligibility requirements:

              (i) Such individual must be a full time employee of the
         Corporation or a Subsidiary. For this purpose, an individual shall be
         considered to be an "employee" only if there exists between the
         Corporation or a Subsidiary and the individual the legal and bona fide
         relationship of employer and employee. In determining whether such
         relationship exists, the regulations of the United States Treasury
         Department relating to the determination of such relationship for the
         purpose of collection of income tax at the source on wages shall be
         applied.

              (ii) Such individual falls within the job grade classifications
         set forth in Schedule 1. Such job grade classification may be amended,
         expanded, restricted or otherwise modified by the Committee, subject to
         ratification of such action by the Board. (iii) Such individual, being
         otherwise an Eligible Employee under the foregoing items, shall have
         been selected by the Committee as a person to whom a Right or Rights
         shall be granted under the Plan.

         1.10 FAIR MARKET VALUE. With respect to the Corporation's Common Stock,
the market price per share of such Common Stock determined by the Committee,
consistent with the requirements of Section 422 of the Code and to the extent
consistent therewith, as follows, as of the date specified in the context within
which such term is used:

              (i) if the Common Stock was traded on a stock exchange on the date
         in question, then the Fair Market Value will be equal to the closing
         price reported by the applicable composite-transactions report on the
         last trading day prior to such date;

              (ii) if the Common Stock was traded over-the-counter on the date
         in question and was classified as a national market issue, then the
         Fair Market Value will be equal to the last transaction price quoted by
         the Nasdaq National Market System ("NMS") on the last trading day prior
         to such date;

              (iii) if the Common Stock was traded over-the-counter on the date
         in question but was not classified as a national market issue, then the
         Fair Market Value will be equal to the average of the last reported
         representative bid and asked prices quoted by Nasdaq on the last
         trading day prior to such date; and

              (iv) if none of the foregoing provisions is applicable, then the
         Fair Market Value will be determined by the Committee in good faith on
         such basis as it deems appropriate. In such case, the Committee shall
         maintain a written record of its method of determining Fair Market
         Value.

         1.11 ISO. An "incentive stock option" as defined in Section 422 of the
Code.

         1.12 JUST CAUSE TERMINATION. A termination by the Corporation or a
Subsidiary of an Eligible Employee's employment by the Corporation or the
Subsidiary in connection with the good faith determination of the Board or the
Board of Directors of the Subsidiary, as applicable, that the Eligible Employee
is incompetent or otherwise has engaged in any acts involving dishonesty or
moral turpitude or in any acts that materially and adversely affect the
business, affairs or reputation of the Corporation or the Subsidiary.

<PAGE>

         1.13 NON-EMPLOYEE DIRECTOR. A member of the Board who is not an
employee of the Corporation on the date of grant.

         1.14 NON-QUALIFIED OPTION. Any Option granted under III whether
designated by the Committee as a Non-Qualified Option or otherwise, other than
an Option designated by the Committee as an ISO, or any Option so designated but
which, for any reason, fails to qualify as an ISO pursuant to Section 422 of the
Code and the rules and regulations thereunder. Options granted under VII are
also Non-Qualified Options.

         1.15 OPTION AGREEMENT. The agreement between the Corporation and an
Optionee with respect to Options granted to such Optionee, including such terms
and provisions as are necessary or appropriate under III or VII.

         1.16 OPTIONS. ISOs and Non-Qualified Options are collectively referred
to herein as "Options;" provided, however, whenever reference is specifically
made only to ISOs or Non-Qualified Options, such reference shall be deemed to be
made to the exclusion of the other.

         1.17 PLAN POOL. A total of two hundred and ninety thousand (290,000)
shares of authorized, but unissued, Common Stock, as adjusted pursuant to
Section 2.3(b), which shall be available as Stock under this Plan.

         1.18 REGISTRATION. The registration by the Corporation under the 1933
Act and applicable state "Blue Sky" and securities laws of this Plan, the
offering of Rights under this Plan, the offering of Stock under this Plan,
and/or the Stock acquirable under this Plan.

         1.19 RESTRICTED STOCK. The Stock which a Holder shall be awarded with
restrictions when, as, in the amounts and with the restrictions described in IV.

         1.20 RESTRICTED STOCK GRANT AGREEMENT. The agreement between the
Corporation and a Holder with respect to Rights to Restricted Stock, including
such terms and provisions as are necessary or appropriate under IV.

         1.21 RETIREMENT. "Retirement" shall mean

         (i)  the termination of an Eligible Employee's employment under
              conditions which would constitute "normal retirement" or "early
              retirement" under any tax qualified retirement plan maintained by
              the Corporation or a Subsidiary, or

              (ii) the termination of an Eligible Employee's employment after
         attaining age 65 (except in the case of a Just Cause Termination); or

              (iii) the termination of a Non-Employee Director's service as a
         member of the Board after attaining age 65, or otherwise in accordance
         with Company policy regarding the retirement of Non-Employee Directors.

         1.22 RIGHTs. The rights to exercise or receive the Options, Restricted
Stock, Units and SARs described herein.

         1.23 RIGHTS AGREEMENT. An Option Agreement, a Restricted Stock Grant
Agreement, a Unit Agreement or an SAR Agreement.

         1.24 SAR. The Right of an SAR Recipient to receive cash when, as and in
the amounts described in VI.

         1.25 SAR AGREEMENT. The agreement between the Corporation and an SAR
Recipient with respect to the SAR awarded to the SAR Recipient, including such
terms and conditions as are necessary or appropriate under VI. 1.26 SEC. The
Securities and Exchange Commission.

<PAGE>

         1.27 STOCK. The shares of Common Stock in the Plan Pool available for
issuance pursuant to the valid exercise of a Right.

         1.28 TAX WITHHOLDING LIABILITY. All federal and state income taxes,
social security tax, and any other taxes applicable to the compensation income
arising from the transaction required by applicable law to be withheld by the
Corporation.

         1.29 TRANSFER. The sale, assignment, transfer, conveyance, pledge,
hypothecation, encumbrance, loan, gift, attachment, levy upon, assignment for
the benefit of creditors, by operation of law (by will or descent and
distribution), transfer by a qualified domestic relations order, a property
settlement or maintenance agreement, transfer by result of the bankruptcy laws
or otherwise of a share of Stock or of a Right.

         1.30 UNITS. The Right of a Unit Recipient to receive a combination of
cash and Stock when, as and in the amounts described in V.

         1.31 UNIT AGREEMENT. The agreement between the Corporation and Unit
Recipient with respect to the award of Units to the Unit Recipient, including
such terms and conditions as are necessary or appropriate under V.

         1.32 1933 ACT. The Securities Act of 1933, as amended.

         1.33 1934 ACT. The Securities Exchange Act of 1934, as amended.

                                   ARTICLE II

         2.1 PURPOSE. The purposes of this Plan are to encourage and motivate
employees within specified job grade classifications and Non-Employee Directors
to contribute to the successful performance of the Corporation and its
Subsidiaries and the growth of the market value of the Corporation's Common
Stock; to achieve a unity of purpose between such employees, Non-Employee
Directors and shareholders by providing ownership opportunities; and to retain
such employees and Non-Employee Directors by rewarding them with potentially
tax-advantageous future compensation. These objectives will be promoted through
the granting of Rights to designated Eligible Employees and Non-Employee
Directors pursuant to the terms of this Plan.

         2.2 ADMINISTRATION.

         (a) The Plan shall be administered by the Committee which shall consist
of two or more non-employee directors as defined in Rule 16b-3(b)(3)(i)
promulgated by the SEC under the 1934 Act. The Committee may designate any
officers or employees of the Corporation or any Subsidiary to assist in the
administration of the Plan, to execute documents on behalf of the Committee and
to perform such other ministerial duties as may be delegated to them by the
Committee.

              (b) Subject to the provisions of the Plan, the determinations and
         the interpretation and construction of any provision of the Plan by the
         Committee shall be final and conclusive upon persons affected thereby.
         By way of illustration and not of limitation, the Committee shall have
         the discretion: (i) to construe and interpret the Plan and all Rights
         granted hereunder and to determine the terms and provisions (and
         amendments thereof) of the Rights granted under the Plan (which need
         not be identical);

              (ii) to define the terms used in the Plan and in the Rights
         granted hereunder;

              (iii) to prescribe, amend and rescind the rules and regulations
         relating to the Plan;

<PAGE>

              (iv) to determine the Eligible Employees to whom and the time or
         times at which such Rights shall be granted, the number of shares of
         Stock, as and when applicable, to be subject to each Right, the
         exercise price or, other relevant purchase price or value pertaining to
         a Right, and the determination of leaves of absence which may be
         granted to Eligible Employees without constituting a termination of
         their employment for the purposes of the Plan; and

              (v) to make all other determinations and interpretations necessary
         or advisable for the administration of the Plan.

         (c) It shall be in the discretion of the Committee to grant Options to
purchase shares of Stock which qualify as ISOs under the Code or which will be
given tax treatment as Non-Qualified Options. Any Options granted which fail to
satisfy the requirements for ISOs shall become Non-Qualified Options.

         (d) In determining the Eligible Employees to whom Rights may be granted
and the number of shares of Stock to be covered by each Right, the Committee
shall take into account such factors as the Committee shall deem relevant. An
Eligible Employee who has been granted a Right under this Plan may be granted an
additional Right or Rights under this Plan if the Committee shall so determine.
If, pursuant to the terms of this Plan, or otherwise in connection with this
Plan, it is necessary that the percentage of stock ownership of an Eligible
Employee be determined, the ownership attribution provisions set forth in
Section 424(d) of the Code shall be controlling.

         (e) The granting of Rights to Eligible Employees and Non-Employee
Directors is in the exclusive discretion of the Committee, and until the
Committee acts, no Eligible Employee or Non-Employee Director shall have any
rights under this Plan. The terms of this Plan shall be interpreted in
accordance with this intent. The grant of Rights shall not obligate the Company
to pay an Eligible Employee any particular amount of remuneration, to continue
the employment of the Eligible Employee after the grant or to make further
grants to the Eligible Employee at any time thereafter. Neither the adoption of
the Plan, its operation, documents describing or referring to the Plan (or any
part thereof) shall confer on any Non-Employee Director any right to continue
service as a member of the Board.

         2.3 STOCK AVAILABLE FOR RIGHTS.

         (a) Shares of the Stock shall be subject to, or underlying, grants of
Options, Restricted Stock and Units under this Plan. The total number of shares
of Stock for which, or with respect to which, Rights may be granted (including
the number of shares of Stock in respect of which Units may be granted) under
this Plan shall be those designated in the Plan Pool. In the event that a Right
granted under this Plan to any Eligible Employee or Non-Employee Director
expires or is terminated unexercised as to any shares of Stock covered thereby,
such shares thereafter shall be deemed available in the Plan Pool for the
granting of Rights under this Plan; provided, however, if the expiration or
termination date of a Right is beyond the term of existence of this Plan as
described in Section 8.3, then any shares of Stock covered by unexercised or
terminated Rights shall not reactivate the existence of this Plan and therefore
shall not be available for additional grants of Rights under this Plan.

         (b) In the event the outstanding shares of Common Stock are increased,
decreased, changed into or exchanged for a different number or kind of
securities as a result of a stock split, reverse stock split, stock dividend,
recapitalization, merger, share exchange acquisition, combination or
reclassification appropriate proportionate adjustments will be made in: (i) the
aggregate number and/or kind of shares of Stock in the Plan Pool that may be
issued pursuant to the exercise of, or that are underlying, Rights granted
hereunder; (ii) the exercise or other purchase price or value pertaining to, and
the number and/or kind of shares of Stock called for with respect to, or
underlying, each outstanding Right granted hereunder; and (iii) other rights and
matters determined on a per share basis under this Plan or any Rights Agreement.
Any such adjustments will be made only by the Committee, subject to ratification
by the Board, and when so made will be effective, conclusive and binding for all
purposes with respect to this Plan and all Rights then outstanding. No such
adjustments will be required by reason of (i) the issuance or sale by the
Corporation for cash of additional shares of its Common Stock or securities
convertible into or exchangeable for shares of its Common Stock, or (ii) the
issuance of shares of Common Stock in exchange for shares of the capital stock
of any corporation, financial institution or other organization acquired by the
Corporation or any Subsidiary in connection therewith.

<PAGE>

         (c) The grant of a Right pursuant to this Plan shall not affect in any
way the right or power of the Corporation to make adjustments, reclassification,
reorganizations or changes of its capital or business structure or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its business or assets.

         (d) No fractional shares of Stock shall be issued under this Plan for
any adjustment under Section 2.3(b).

         2.4 SEVERABLE PROVISIONS. The Corporation intends that the provisions
of each of Articles III, IV, V, VI, and VII in each case together with Articles
I, II and VIII, shall each be deemed to be effective on an independent basis,
and that if one or more of such Articles, or the operative provisions thereof,
shall be deemed invalid, void or voidable, the remainder of such Articles shall
continue in full force and effect.

                                   ARTICLE III
                                     OPTIONS

         3.1 GRANT OF OPTIONS.

         (a) Options may be granted to Eligible Employees as provided in this
Article III. Options will be deemed granted pursuant to this Article III only
upon (i) authorization by the Committee, and (ii) the execution and delivery of
an Option Agreement by the Eligible Employee optionee ("the "Optionee") and a
duly authorized officer of the Company. Options will not be deemed granted
hereunder merely upon authorization of such grant by the Committee. The
aggregate number of shares of Stock potentially acquirable under all Options
granted shall not exceed the total number of shares of Stock remaining in the
Plan Pool, less all shares of Stock potentially acquired under, or underlying,
all other Rights outstanding under this Plan.

         (b) The Committee shall designate Options at the time a grant is
authorized as either ISOs or Non-Qualified Options. In accordance with Section
422 (d) of the Code, the aggregate Fair Market Value (determined as of the date
an ISO is granted) of the shares of Stock as to which an ISO may first become
exercisable by an Optionee in a particular calendar year (pursuant to Article
III and all other plans of the Company and/or its Subsidiaries) may not exceed
$100,000 (the "$100,000 Limitation"). If an Optionee is granted Options in
excess of the $100,000 Limitation, or if such Options otherwise become
exercisable with respect to a number of shares of Stock which would exceed the
$100,000 Limitation, such excess Options shall be Non-Qualified Options.

         3.2 EXERCISE PRICE.

         (a) The initial exercise price of each Option granted under this Plan
(the "Exercise Price") shall be determined by the Committee in its discretion;
provided, however, that the Exercise Price of an ISO shall not be less than (i)
the Fair Market Value of the Common Stock on the date of grant of the Option, in
the case of any Eligible Employee who does not own stock possessing more than
ten percent (10%) of the total combined voting power of all classes of the
capital stock of the Company (within the meaning of Section 422 (b) (6) of the
Code), or (ii) one hundred ten percent (110%) of such Fair Market Value in the
case of any Eligible Employee who owns stock in excess of such amount.

         (b) In its discretion and subject to the provisions of Section 3.2(a)
(as to the establishment of the Exercise Price of an Option on the date of
grant), the Committee may establish that the Exercise Price of an Option shall
be adjusted based on subsequent events. The adjustments may include adjustments,
upward or downward, on a quarterly basis, based upon the market value
performance of the Common Stock in comparison with the aggregate market value
performance of one or more indices composed of publicly-traded financial
institutions and financial institution holding companies deemed by the Committee
to be similar (in terms of asset size, capitalization, trading volumes and other
factors deemed relevant by the Committee) to the Company (an "Index" and the
"Indices"). The Exercise Price of an ISO shall not be adjustable if, under the
Code, such adjustable Exercise Price would disqualify the ISO as an ISO. The
Committee may utilize Indices published by third parties and/or may construct
one or more Indices meeting the characteristics described above or other
characteristics.

<PAGE>

         The Indices utilized may be recalculated quarterly, including in such
quarterly recalculation such adjustments for stock splits, reverse stock splits
and stock dividends of the companies in the indices and of the Company as are
appropriate. If more than one Index is utilized by the Committee, it may give
such weighting to each Index utilized as the Committee may determine in its sole
discretion, consistent with the provisions of this Article III.

         3.3 TERMS AND CONDITIONS OF OPTIONS.

         (a) All Options must be granted within ten (10) years of the Effective
Date.

         (b) The Committee may grant ISOs and Non-Qualified Options, either
separately or jointly, to an Eligible Employee.

         (c) Each grant of Options shall be evidenced by an Option Agreement in
form and substance satisfactory to the Committee in its discretion, consistent
with the provisions of this Article III.

         (d) At the discretion of the Committee, an Optionee, as a condition to
the granting of an Option, may be required to execute and deliver to the Company
a confidential information agreement or other employment-related agreements
approved by the Committee.

         (e) Except as otherwise provided herein, each Option Agreement may
specify the period or periods of time within which each Option or portion
thereof will first become exercisable (the "Vesting Period") with respect to the
total number of shares of Stock acquirable thereunder. Such Vesting Periods will
be fixed by the Committee in its discretion, and may be accelerated or shortened
by the Committee in its discretion.

         (f) An Optionee shall have no rights as a shareholder of the Company
with respect to any shares of Stock covered by Options granted to the Optionee
until payment in full of the Exercise Price by such Optionee for the shares
being purchased. No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distributions
or other rights for which the record date is prior to the date such Stock is
fully paid for, except as provided in Sections 2.3(b) and 3.2(b).

         (g) To the extent provided in an Option Agreement, shares of Stock
obtained pursuant to an Option which qualifies as an ISO may be held in escrow
for a period which ends on the later of (i) two (2) years from the date of the
granting of the ISO or (ii) one (1) year after the issuance of such shares
pursuant to the exercise of the ISO. Such shares of Stock shall be held by the
Company or its designee. The Optionee who has exercised the ISO shall have all
rights of a shareholder, including, but not limited to, the rights to vote,
receive dividends and sell such shares. The sole purpose of the escrow is to
inform the Company of a disqualifying disposition of the shares of Stock
acquired within the meaning of Section 422 of the Code, and it shall be
administered solely for this purpose.

         3.4. EXERCISE OF OPTIONS.

         (a) An Optionee must be an Eligible Employee at all times from the date
of grant until the exercise of the Options granted, except as provided in
Section 3.5(b) or in the Option Agreement.

         (b) An Option may be exercised to the extent exercisable (i) by giving
written notice of exercise to the Company, specifying the number of full shares
of Stock to be purchased and, if applicable, accompanied by full payment of the
Exercise Price thereof and the amount of the Tax Withholding Liability pursuant
to Section 3.4(c) below; and (ii) by giving assurances satisfactory to the
Company that the shares of Stock to be purchased upon such exercise are being
purchased for investment and not with a view to resale in connection with any
distribution of such shares in violation of the 1933 Act; provided, however,
that in the event the prior occurrence of the Registration or in the event
resale of such Stock without such Registration would otherwise be permissible,
this second condition will be inoperative if, in the opinion of counsel for the
Company, such condition is not required under the 1933 Act or any other
applicable law, regulation or rule of any governmental agency.

         (c) As a condition to the issuance of the shares of Stock upon full or
partial exercise of a Non-Qualified Option, the Optionee will pay to the Company
in cash, or in such other form as the Committee may determine in its discretion
(including the withholding of shares of Stock as to which the Option is then
being exercised), the amount of the Company's Tax Withholding Liability required
in connection with such exercise.

<PAGE>

         (d) The Exercise Price of an Option shall be payable to the Company
either (i) in United States dollars, in cash or by check, Corporation draft or
money order payable to the order of the Company, or (ii) at the discretion of
the Committee, through the delivery of shares of the Stock owned by the Optionee
(including, if the Committee so permits, a portion of the shares of stock as to
which the Option is then being exercised) with a Fair Market Value as of the
date of delivery equal to the Exercise Price, or (iii) at the discretion of the
Committee by a combination of (i) and (ii) above. No shares of Stock shall be
delivered until full payment has been made.

         3.5 TERM AND TERMINATION OF OPTION.

         (a) The Committee shall determine, and each Option Agreement shall
state, the expiration date or dates of each Option, but such expiration date
shall be not later than ten (10) years after the date such Option was granted
(the "Option Period"). In the event an ISO is granted to a 10% Shareholder, the
expiration date or dates of each Option Period shall be not later than five (5)
years after the date such Option is granted. The Committee, in its discretion,
may extend the expiration date or dates of an Option Period of any Non-Qualified
Option after such date was originally set; provided, however such expiration
date may not exceed the maximum expiration date described in this Section
3.5(a).

         (b) To the extent not previously exercised, each Option will terminate
upon the expiration of the Option Period specified in the Option Agreement;
provided, however, that, subject to the provisions of Section 3.5(a), each ISO
will terminate upon the earlier of: (i) ninety (90) days after the date that the
Optionee ceases to be an Eligible Employee for any reason, other than by reason
of Death, Disability, or a Just Cause Termination; (ii) twelve (12) months after
the date that the Optionee ceases to be an Eligible Employee by reason of
Disability. The Committee may, in its discretion, specify other events that will
result in the termination of an ISO (including, without limitation, termination
of employment by reason of Death, or a Just Cause Termination). In the case of
Non-Qualified Options, the Committee shall have full discretion to specify what,
if any, events will terminate the Option prior to the expiration of the Option
Period.

         3.6 CHANGE IN CONTROL TRANSACTION. At any time prior to the date of
consummation of a Change in Control Transaction, the Committee may, in its
absolute discretion, determine that all or any part of the Options theretofore
granted under this Article III shall become immediately exercisable in full and
may thereafter be exercised at any time before the date of consummation of the
Change in Control Transaction (except as otherwise provided in Article II
hereof. Any Option that has not been fully exercised before the date of
consummation of the Change in Control Transaction shall terminate on such date,
unless a provision has been made in writing in connection with such transaction
for the assumption of all Options theretofore granted, or the substitution for
such Options of options to acquire the voting stock of a successor employer
corporation, or a parent or a subsidiary thereof, with appropriate adjustments
as to the number and kind of shares and prices, in which event the Options
theretofore granted shall continue in the manner and under the terms so
provided.

         3.7 RESTRICTIONS ON TRANSFER. An Incentive Stock Option may not be
Transferred except by will or the laws of descent and distribution and, during
the lifetime of the Optionee to whom it was granted, may be exercised only by
such Optionee. A Non-Qualified Stock Option may not be Transferred except by
will or the laws of descent and distribution, unless otherwise provided in the
Option Agreement.

         3.8 STOCK CERTIFICATES. Certificates representing the Stock issued
pursuant to the exercise of Options will bear all legends required by law and
necessary to effectuate the provisions hereof. The Company may place a "stop
transfer" order against such shares of Stock until all restrictions and
conditions set forth in this Article III, the applicable Option Agreement, and
in the legends referred to in this Section 3.8 have been complied with.

         3.9 AMENDMENT AND DISCONTINUANCE. The Board may amend, suspend or
discontinue the provisions of this Article III at any time or from time to time;
provided that no action of the Board will cause ISOs granted under this Plan not
to comply with Section 422 of the Code unless the Board specifically declares
such action to be made for that purpose; and, provided, further, that no such
action may, without the approval of the shareholders of the Company, materially
increase (other than by reason of an adjustment pursuant to Section 2.3(b)
hereof) the maximum aggregate number of shares of Stock in the Plan Pool,
materially increase the benefits accruing to Eligible Employees or materially
modify eligibility requirements for participation under this Article III.
Moreover, no such action may alter or impair any Option previously granted under
this Article III without the consent of the applicable Optionee.

<PAGE>

         3.10 COMPLIANCE WITH RULE 16B-3. With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article III are intended to
comply with all applicable conditions of Rule 16b-3 or its successors under the
1934 Act. To the extent any provision of this Article III or action by the Board
or the Committee fails so to comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable by the Committee

                                   ARTICLE IV
                             RESTRICTED STOCK GRANTS

         4.1 GRANTS OF RESTRICTED STOCK.

         (a) Restricted Stock may be issued to Eligible Employees and
Non-Employee Directors as provided in this Article IV. Restricted Stock will be
deemed issued only upon (i) authorization by the Committee and (ii) the
execution and delivery of a Restricted Stock Grant Agreement by the Eligible
Employee or Non-Employee Director to whom such Restricted Stock is to be issued
(the "Holder") and a duly authorized officer of the Company. Restricted Stock
will not be deemed to have been issued merely upon authorization by the
Committee.

         (b) Each issuance of Restricted Stock pursuant to this Article IV will
be evidenced by a Restricted Stock Grant Agreement between the Company and the
Holder in form and substance satisfactory to the Committee in its sole
discretion, consistent with this Article IV. Each Restricted Stock Grant
Agreement will specify the purchase price per share, if any, paid by the Holder
for the Restricted Stock, such amount to be fixed by the Committee in its
discretion.

         (c) Without limiting the foregoing, each Restricted Stock Grant
Agreement shall set forth the terms and conditions of any forfeiture provisions
regarding the Restricted Stock, (including any provisions for accelerated
vesting in the event of a Change in Control Transaction) as determined by the
Committee in its discretion.

         (d) At the discretion of the Committee, the Holder, as a condition to
the issuance of shares, may be required (i) to execute and deliver to the
Company a confidential information agreement approved by the Committee, and/or
(ii) to agree to pay to the Corporation in cash, or in such other form as the
Committee may determine in its discretion (including the withholding of shares
of Stock as to which the Option is then being exercised), the amount of the
Corporation's Tax Withholding Liability required in connection with lapse of
restrictions on such Restricted Stock.

         4.2      RESTRICTIONS ON TRANSFER OF RESTRICTED STOCK.

         (a) Shares of Restricted Stock acquired by a Holder may be Transferred
only in accordance with the specific limitations on the Transfer of Restricted
Stock imposed by applicable state or federal securities laws or set forth below,
and subject to certain undertakings of the transferee set forth in Section
4.2(c). All Transfers of Restricted Stock not meeting the conditions set forth
in this Section 4.2(a) are expressly prohibited.

         (b) Any prohibited Transfer of Restricted Stock is void and of no
effect. Should such a Transfer purport to occur, the Company may refuse to carry
out the Transfer on its books, attempt to set aside the Transfer, enforce any
undertaking or right under this Section 4.2(b), and/or exercise any other legal
or equitable remedy.

         (c) Any Transfer of Restricted Stock that would otherwise be permitted
under the terms of this Plan is prohibited unless the transferee executes such
documents as the Company may reasonably require to ensure the Company's rights
under a Restricted Stock Grant Agreement and this Article IV are adequately
protected with respect to the Restricted Stock so Transferred. Such documents
may include, without limitation, an agreement by the transferee to be bound by
all of the terms of this Plan applicable to Restricted Stock and of the
applicable Restricted Stock Grant Agreement, as if the transferee were the
original Holder of such Restricted Stock.

<PAGE>

         (d) To facilitate the enforcement of the restrictions on Transfer set
forth in this Article IV, the Committee may, at its discretion, require the
Holder of shares of Restricted Stock to deliver the certificate(s) for such
shares with a stock power executed in blank by the Holder and the Holder's
spouse, to the Secretary of the Company or his or her designee, and the Company
may hold said certificate(s) and stock power(s) in escrow and take all such
actions as are necessary to insure that all Transfers and/or releases are made
in accordance with the terms of this Plan. The certificates may be held in
escrow so long as the shares of Restricted Stock whose ownership they evidence
are subject to any restriction on Transfer under this Article IV or under a
Restricted Stock Grant Agreement. Each Holder shall acknowledge that the
Secretary of the Company (or his or her designee) is so appointed as the escrow
holder with the foregoing authorities as a material inducement to the issuance
of shares of Restricted Stock under this Article IV, that the appointment is
coupled with an interest, and that it accordingly will be irrevocable. The
escrow holder will not be liable to any party to a Restricted Stock Grant
Agreement (or to any other party) for any actions or omissions unless the escrow
holder is grossly negligent relative thereto. The escrow holder may rely upon
any letter, notice or other document executed by any signature purported to be
genuine.

         4.3 COMPLIANCE WITH LAW. Notwithstanding any other provision of this
Article IV, Restricted Stock may be issued pursuant to this Article IV only
after there has been compliance with all applicable federal and state securities
laws, and such issuance will be subject to this overriding condition. The
Company may include shares of Restricted Stock in a Registration, but will not
be required to register or qualify Restricted Stock with the SEC or any state
agency.

         4.4 STOCK CERTIFICATES. Certificates representing the Restricted Stock
issued pursuant to this Article IV will bear all legends required by law and
necessary to effectuate the provisions hereof. The Company may place a "stop
transfer" order against shares of Restricted Stock until all restrictions and
conditions set forth in this Article IV, the applicable Restricted Stock Grant
Agreement and the legends referred to in this Section 4.4 have been complied
with.

         4.5 MARKET STANDOFF. To the extent requested by the Company and any
underwriter of securities of the Company in connection with a firm commitment
underwriting, no Holder of any shares of Restricted Stock will Transfer any such
shares not included in such underwriting, or not previously registered in a
Registration, during the one hundred twenty (120) day period following the
effective date of the registration statement filed with the SEC under the 1933
Act in connection with such offering.

         4.6 AMENDMENT AND DISCONTINUANCE. The Board may amend, suspend or
discontinue this Article IV at any time or from time to time; provided, that no
such action of the Board shall alter or impair any rights previously granted to
Holders under this Article IV without the consent of such affected Holders.

         4.7 COMPLIANCE WITH RULE 16B-3. With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article IV are intended to
comply with all applicable conditions of Rule 16b-3 or its successors under the
1934 Act. To the extent any provision of this Article IV or action by the Board
or the Committee fails so to comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable by the Committee.

                                    ARTICLE V
                     LONG-TERM INCENTIVE COMPENSATION UNITS

         5.1 AWARDS OF UNITS.

         (a) Units may be granted to Eligible Employees and Non-Employee
Directors as provided in this Article V. Units will be deemed granted only upon
(i) authorization by the Committee and (ii) the execution and delivery of a Unit
Agreement by the Eligible Employee or Non-Employee Director to whom Units are to
be granted (a "Unit Recipient") and an authorized officer of the Company. Units
will not be deemed granted merely upon authorization by the Committee. Units may
be granted in each of the years 1997 through 2004 in such amounts and to such
Unit Recipients as the Committee may determine in its sole discretion subject to
the limitation in Section 5.2 below.

<PAGE>

         (b) Each grant of Units pursuant to this Article V will be evidenced by
a Unit Award Agreement between the Company and the Unit Recipient in form and
substance satisfactory to the Committee in its sole discretion, consistent with
this Article V.

         (c) Except as otherwise provided herein, Units will be distributed only
after the end of a performance period of two or more years ("Performance
Period") beginning with the year in which such Units were awarded. The
Performance Period shall be set by the Committee for each award of Units.

         (d) The percentage of the Units awarded under this Section 5.1 or
credited pursuant to Section 5.5 that will be distributed to Unit Recipients
shall depend on the levels performance objectives achieved during each year of
the Performance Period. The Committee may adopt one or more performance
categories, including financial performance. Financial performance shall be
based on the consolidated results of the Company and its Subsidiaries prepared
on the same basis as the financial statements published for financial reporting
purposes and determined in accordance with Section 5.1(e) below. Other
performance categories adopted by the Committee shall be based on such
measurements of performance as the Committee shall deem appropriate.

         (e) Distributions of Units awarded will be based on the Company's
performance as compared to the performance objectives. The Committee may provide
for annual or longer performance measurement periods. The performance results
will be translated into percentage factors according to graduated criteria
established by the Committee for the entire Performance Period. The resulting
percentage factors shall determine the percentage of Units to be distributed.
The Committee may provide that to distributions of Units, based on financial
performance and other performance, shall be made if a minimum average percentage
of the applicable measurement of performance, to be established by the
Committee, is not achieved for the Performance Period. The performance levels
achieved for each Performance Period and percentage of Units to be distributed
shall be conclusively determined by the Committee.

         (f) The percentage of Units awarded which Unit Recipients become
entitled to receive based on the levels of performance (including those Units
credited under Section 5.5) will be determined as soon as practicable after each
Performance Period and are called "Retained Units."

         (g) As soon as practical after determination of the number of Retained
Units, such Retained Units shall be distributed in the form of a combination of
shares and cash in the relative percentages as between the two as determined by
the Committee in its sole discretion. The Units awarded, but which Unit
Recipients do not become entitled to receive, shall be canceled.

         (h) Notwithstanding any other provision in this Article V, the
Committee, if it determines in its sole discretion that it is necessary or
advisable under the circumstances, may adopt rules pursuant to which Eligible
Employees and Non-Employee Directors, by virtue of hire, or promotion or upgrade
to a higher job grade classification, or special individual circumstances, may
be granted the total award of Units or any portion thereof, with respect to one
or more Performance Periods that began in prior years and that at the time of
the awards have not yet been completed.

         5.2 LIMITATIONS.

         The aggregate number of shares of Stock potentially distributable under
all Units granted, including those Units credited pursuant to Section 5.5, shall
not exceed the total number of shares of Stock remaining in the Plan Pool, less
all shares of Stock potentially acquirable under, or underlying, all other
Rights outstanding under this Plan.

         5.3 TERMS AND CONDITIONS.

         (a) All awards of Units must be made within ten (10) years of the
Effective Date.

<PAGE>

         (b) The award of Units shall be evidenced by a Unit Award Agreement in
form and substance satisfactory to the Committee in its discretion, consistent
with the provisions of this Article V.

         (c) At the discretion of the Committee, a Unit Recipient, as a
condition to the award of Units, may be required to execute and deliver to the
Company a confidential information agreement approved by the Committee.

         (d) A Unit Recipient shall have no rights as a shareholder of the
Company with respect to any Units until the distribution of shares of Stock in
connection therewith. No adjustment shall be made in the number of Units for
dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions or other rights for which the record date is prior to
the date such Stock is distributed, except as provided in Sections 2.3(b) and
5.6(a).

         5.4 SPECIAL DISTRIBUTION RULES.

         (a) Except as otherwise provided in this Section 5.4 or in an Option
Agreement, a Unit Recipient must be an Eligible Employee or a Non-Employee
Director from the date a Unit is awarded to him or her continuously through and
including the date of distribution of such Unit.

         (b) In case of the Death or Disability of a Unit Recipient prior to the
end of any Performance Period, the number of Units awarded to the Unit Recipient
for such Performance Period shall be reduced pro rata based on the number of
months remaining in the Performance Period after the month of Death or
Disability. The remaining Units, reduced in the discretion of the Committee to
the percentage indicated by the levels of performance achieved prior to the date
of Death or Disability, if any, shall be distributed within a reasonable time
after Death or Disability. All other Units awarded to the Unit Recipient for
such Performance Period shall be canceled.

         (c) If a Unit Recipient enters into Retirement prior to the end of any
Performance Period, the Units awarded to such Unit Recipient under this Article
V and not yet distributed shall be prorated to the end of the year in which such
Retirement occurs and distributed at the end of the Performance Period based
upon the Company's performance for such period.

         (d) In the event of the termination of the Unit Recipient's status as
an Eligible Employee or Non-Employee Director prior to the end of any
Performance Period for any reason other than Death, Disability or Retirement,
all Units awarded to the Unit Recipient with respect to any such Performance
Period shall be immediately forfeited and canceled.

         (e) Upon a Unit Recipient's promotion to a higher job grade
classification, the Committee may award to the Unit Recipient the total Units,
or any portion thereof, which are associated with the higher job grade
classification for the then current Performance Period.

         (f) Notwithstanding any other provision of this Plan, the Committee may
reduce or eliminate awards to a Unit Recipient who has been demoted to a lower
job grade classification, and where circumstances warrant, may permit continued
participation, proration or early distribution, or a combination thereof, of
awards which would otherwise be canceled.

         5.5 DIVIDEND EQUIVALENT UNITS. On each record date for dividends on the
Common Stock, an amount equal to the dividend payable on one share of Common
Stock will be determined and credited (the "Dividend Equivalent Credit") on the
payment date to each Unit Recipient's account for each Unit which has been
awarded to the Unit Recipient and not distributed or canceled. Such amount will
be converted within the account to an additional number of Units equal to the
number of shares of Common Stock that could be purchased at Fair Market Value on
such dividend payment date. These Units will be treated for purposes of this
Article V in the same manner as those Units granted pursuant to Section 5.1.

         5.6 ADJUSTMENTS.

         (a) In addition to the provisions of Section 2.3(b), if an
extraordinary change occurs during a Performance Period which significantly
alters the basis upon which the performance levels were established under
Section 5.1 for that Performance Period, to avoid distortion in the operation of
this Article V, but subject to Section 5.2, the Committee may make adjustments
in such performance levels to preserve the incentive features of this Article V,
whether before or after the end of the Performance Period, to the extent it
deems appropriate in its sole discretion, which adjustments shall be conclusive
and binding upon all parties concerned. Such changes may include, without
limitation, adoption of, or changes in, accounting practices, tax laws and
regulatory or other laws or regulations; economic changes not in the ordinary
course of business cycles; or compliance with judicial decrees or other legal
authorities.

<PAGE>

         (b) At any time prior to the date of consummation of a Change in
Control Transaction, the Committee may, in its absolute discretion, determine
that all or any part of the Units theretofore awarded under this Article V shall
become immediately distributable (reduced pro rata based on the number of months
remaining in the Performance Period after the consummation of the Change in
Control Transaction) and may thereafter be distributed at any time before the
date of consummation of the Change in Control Transaction (except as otherwise
provided in Article II hereof). Except as otherwise provided in a Unit Award
Agreement, any Units that have not been distributed before the date of
consummation of the Change in Control Transaction shall terminate on such date,
unless a provision has been made in writing in connection with such transaction
for the assumption of all awards of Units theretofore made, or the substitution
for such units of awards of compensation units having comparable characteristics
under a long term incentive award plan of a successor employer corporation, or a
parent or a subsidiary thereof, with appropriate adjustments, in which event the
awards of Units theretofore made shall continue in the manner and under the
terms so provided.

         5.7 OTHER CONDITIONS.

         (a) No person shall have any claim to be granted an award of Units
under this Article V and there is no obligation for uniformity of treatment of
Eligible Employees, Non-Employee Directors or Unit Recipients under this Article
IV.

         (b) The Company shall have the right to deduct from any distribution or
payment in cash under this Article V, and the Unit Recipient or other person
receiving shares of Stock under this Article V shall be required to pay to the
Company, any Tax Withholding Liability. The number of shares of Stock to be
distributed to any individual Unit Recipient may be reduced by the number of
shares of Stock, the Fair Market Value of which on the Distribution Date (as
defined in Section 5.7(d) below) is equivalent to the cash necessary to pay any
Tax Withholding Liability, where the cash to be distributed is not sufficient to
pay such Tax Withholding Liability, or the Unit Recipient may deliver to the
Company cash sufficient to pay such Tax Withholding Liability.

         (c) Any distribution of shares of Stock under this Article V may be
delayed until the requirements of any applicable laws or regulations, and any
stock exchange or Nasdaq-NMS requirements, are satisfied. The shares of Stock
distributed under this Article V shall be subject to such restrictions and
conditions on disposition as counsel for the Company shall determine to be
desirable or necessary under applicable law.

         (d) For the purpose of distribution of Units in cash, the value of a
Unit shall be the Fair Market Value on the Distribution Date. Except as
otherwise determined by the Committee, the "Distribution Date" shall be March
15th in the year of distribution, (or the first business day thereafter) except
that in the case of special distributions the Distribution Date shall be the
first business day of the month in which the Committee determines the amount and
form of the distribution.

         (e) Notwithstanding any other provision of this Article V, no Dividend
Equivalent Credits shall be made and no distributions of Units shall be made if
at the time a Dividend Equivalent Credit or distribution would otherwise have
been made:

                  (i) The regular quarterly dividend on the Common Stock has
         been omitted and not subsequently paid or there exists any default in
         payment of dividends on any such outstanding shares of capital stock of
         the Corporation.

<PAGE>

                  (ii) The rate of dividends on the Common Stock is lower than
         at the time the Units to which the Dividend Equivalent Credit relates
         were awarded, adjusted for any change of the type referred to in
         Section 2.3(b).

                  (iii) Estimated consolidated net income of the Corporation for
         the twelve month period preceding the month the Dividend Equivalent
         Credit or distribution would otherwise have been made is less than the
         sum of the amount of the Dividend Equivalent Credits and Units eligible
         for distribution under this Article V in that month plus all dividends
         applicable to such period on an accrual basis, either paid, declared or
         accrued at the most recently paid rate, on all outstanding shares of
         Common Stock; or

                  (iv) The Dividend Equivalent Credit or distribution would
         result in a default in any agreement by which the Corporation is bound.

         (f) In the event net income available under Section 5.7(e) above for
Dividend Equivalent Credits and awards eligible for distribution under this
Article V is sufficient to cover part but not all of such amounts, the following
order shall be applied in making payments: (i) Dividend Equivalent Credits, and
then (ii) Units eligible for distribution under this Article V.

         5.8 DESIGNATION OF BENEFICIARIES. A Unit Recipient may designate a
beneficiary or beneficiaries to receive all or part of the Stock and/or cash to
be distributed to the Unit Recipient under this Article V in case of Death. A
designation of beneficiary may be replaced by a new designation or may be
revoked by the Unit Recipient at any time. A designation or revocation shall be
on a form to be provided for that purpose and shall be signed by the Unit
Recipient and delivered to the Corporation prior to the Unit Recipient's Death.
In case of the Unit Recipient's Death, any amounts to be distributed to the Unit
Recipient under this Article V with respect to which a designation of
beneficiary has been made (to the extent it is valid and enforceable under
applicable law) shall be distributed in accordance with this Article V to the
designated beneficiary or beneficiaries. The amount distributable to a Unit
Recipient upon Death and not subject to such a designation shall be distributed
to the Unit recipient estate. If there shall be any question as to the legal
right of any beneficiary to receive a distribution under this Article V, the
amount in question may be paid to the estate of the Unit Recipient, in which
event the Corporation shall have no further liability to anyone with respect to
such amount.

         5.9 RESTRICTIONS ON TRANSFER. Units granted under Article V may not be
Transferred, except as provided in Section 5.8, and, during the lifetime of the
Unit Recipient to whom it was awarded, cash and stock receivable with respect to
Units may be received only by such Unit Recipient.

         5.10 AMENDMENT AND DISCONTINUANCE. No award of Units may be granted
under this Article V after December 31, 2004. The Board may amend, suspend or
discontinue the provisions of this Article V at any time or from time to time.

         5.11 COMPLIANCE WITH RULE 16B-3. With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article V are intended to
comply with all applicable conditions of Rule 16b-3 or its successors under the
1934 Act. To the extent any provision of this Article V or action by the Board
or the Committee fails so to comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable by the Committee.

                                   ARTICLE VI
                            STOCK APPRECIATION RIGHTS

         6.1 GRANTS OF SARS.

         (a) Eligible Employees and Non-Employee Directors may be granted SARs
under this Article VI. SARs will be deemed granted only upon (i) authorization
by the Committee and (ii) the execution and delivery of a SAR Agreement by the
Eligible Employee or Non-Employee Director to whom the SARs are to be granted
(the "SAR Recipient") and a duly authorized officer of the Corporation. SARs
will not be deemed granted merely upon authorization by the Committee. The
aggregate number of SARs granted hereunder shall not exceed the total number of
shares of Stock provided in the Plan Pool.

<PAGE>

         (b) Each grant of SARs pursuant to this Article VI shall be evidenced
by a SAR Agreement between the Corporation and the SAR Recipient, in form and
substance satisfactory to the Committee in its sole discretion, consistent with
this Article VI.

         6.2 TERMS AND CONDITIONS OF SARS.

         (a) All SARs must be granted within ten (10) years of the Effective
Date.

         (b) Each SAR issued pursuant to this Article VI shall have an initial
base value (the "Base Value") equal to the Fair Market Value of a share of
Common Stock on the date of issuance of the SAR.

         (c) In its discretion and subject to the provisions of Section 6.2(b)
(as to the establishment of the initial Base Value of a SAR), the Committee may
establish that the Base Value of a SAR shall be adjusted, upward or downward, on
a quarterly basis, based upon the market value performance of the Common Stock
in comparison with the aggregate market value performance of the Index or
Indices utilized under Section 3.2(b).

         (d) At the discretion of the Committee, a SAR Recipient, as a condition
to the granting of a SAR, must execute and deliver to the Corporation a
confidential information agreement approved by the Committee.

         (e) Except as otherwise provided herein, each SAR Agreement may specify
the period or periods of time within which each SAR or portion thereof will
first become exercisable (the "SAR Vesting Period"). Such SAR Vesting Periods
will be fixed by the Committee in its discretion, and may be accelerated or
shortened by the Committee in its discretion.

         (f) A SAR Recipient shall have no rights as a shareholder of the
Corporation with respect to any shares of Stock underlying such SAR. No
adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property) or distributions or other rights for which
the record date is prior to the date such Stock is fully paid for, except as
provided in Sections 2.3(b) and 6.2(c).

         6.3 RESTRICTIONS ON TRANSFER OF SARS. SARs granted under this Article
VI may not be Transferred, except as provided in Section 6.7, and during the
lifetime of the SAR Recipient to whom it was granted, may be exercised only by
such SAR Recipient.

         6.4 EXERCISE OF SARS.

         (a) A SAR Recipient (or his or her executors or administrators, or
heirs or legatees) shall exercise a SAR by giving written notice of such
exercise to the Corporation. SARs may be exercised only upon the completion of
the SAR Vesting Period, if any, applicable to such SAR (the date such notice is
received by the Corporation being referred to herein as the "SAR Exercise
Date").

         (b) Within ten (10) business days of the SAR Exercise Date applicable
to a SAR exercised in accordance with Section 6.4(a), the SAR Recipient shall be
paid in cash the difference between the Base Value of such SAR (as adjusted, if
applicable under Section 6.2(c), as of the most recently preceding quarterly
period) and the Fair Market Value of the Common Stock as of the SAR Exercise
Date, as such difference is reduced by the Company's Tax Withholding Liability
arising from such exercise.

         6.5 TERMINATION OF SARS. The Committee shall determine in its
discretion, and each SAR Agreement shall state, the expiration date or dates of
each SAR, but such expiration date shall be not later than ten (10) years after
the date such SAR is granted (the "SAR Period"). The Committee, in its
discretion, may extend the expiration date or dates of a SAR Period after such
date was originally set; provided, however, such expiration date may not exceed
the maximum expiration date described in this Section 6.5(a).

<PAGE>

         6.6 CHANGE IN CONTROL TRANSACTION. At any time prior to the date of
consummation of a Change in Control Transaction, the Committee may, in its
absolute discretion, determine that all or any part of the SARs theretofore
granted under this Article VI shall become immediately exercisable in full and
may thereafter be exercised at any time before the date of consummation of the
Change in Control Transaction (except as otherwise provided in Article II
hereof). Except as provided in an SAR Agreement, any SAR that has not been fully
exercised before the date of consummation of the Change in Control Transaction
shall terminate on such date, unless a provision has been made in writing in
connection with such transaction for the assumption of all SARs theretofore
granted, or the substitution for such SARs of grants of stock appreciation
rights having comparable characteristics under a stock appreciation rights plan
of a successor employer corporation or bank, or a parent or a subsidiary
thereof, with appropriate adjustments, in which event the SARs theretofore
granted shall continue in the manner and under the terms so provided.

         6.7 DESIGNATION OF BENEFICIARIES. A SAR Recipient may designate a
beneficiary or beneficiaries to receive all or part of the cash to be paid to
the SAR Recipient under this Article VI in case of Death. A designation of
beneficiary may be replaced by a new designation or may be revoked by the SAR
Recipient at any time. A designation or revocation shall be on a form to be
provided for that purpose and shall be signed by the SAR Recipient and delivered
to the Corporation prior to the SAR Recipient's Death. In case of the SAR
Recipient's Death, the amounts to be distributed to the SAR Recipient under this
Article VI with respect to which a designation of beneficiary has been made (to
the extent it is valid and enforceable under applicable law) shall be
distributed in accordance with this Article VI to the designated beneficiary or
beneficiaries. The amount distributable to a SAR Recipient upon Death and not
subject to such a designation shall be distributed to the SAR Recipient's
estate. If there shall be any question as to the legal right of any beneficiary
to receive a distribution under this Article VI, the amount in question may be
paid to the estate of the SAR Recipient in which event the Corporation shall
have no further liability to anyone with respect to such amount.

         6.8 AMENDMENT AND DISCONTINUANCE. The Board may amend, suspend or
discontinue the provisions of this Article VI at any time or from time to time.
No such action may alter or impair any SAR previously granted under this Article
VI without the consent of the applicable SAR Recipient.

         6.9 COMPLIANCE WITH RULE 16B-3. With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article VI are intended to
comply with all applicable conditions of Rule 16b-3 or its successors under the
1934 Act. To the extent any provision of this Article VI or action by the Board
or the Committee fails so to comply, it shall be deemed null and void, is the
extent permitted by law and deemed advisable by the Committee.
                                   ARTICLE VII
                        GRANTS TO NON-EMPLOYEE DIRECTORS

         7.1 GRANT OF NON-QUALIFIED OPTIONS. Non-Qualified Options may be
granted to Non-Employee Directors as provided in this Article VII. The
provisions of Articles I, II, III and VIII shall apply to the grant of
Non-Qualified Options to Non-Employee Directors, except as provided in this
Article.

         7.2 EXERCISE PRICE. The exercise price per share of Common Stock on a
Non-Qualified Option under this Article shall be the Fair Market Value of a
share of Common Stock.

         7.3 EXERCISE OF OPTIONS. Each Option Agreement for the grant of a
Non-Qualified Option may specify the period or periods of time, if any, within
which each Non-Qualified Option or portion thereof will first become
exercisable. The Option Agreement shall also state the time or other
circumstances under which the Non-Qualified Option is forfeited or otherwise may
cease to be exercisable. A Non-Qualified Option may be exercised with respect to
any number of whole shares less than the full number for which the Non-Qualified
Option could be exercised. A partial exercise of a Non-Qualified Option shall
not affect the right to exercise the Non-Qualified Option from time to time in
accordance with this Plan and the applicable Option Agreement with respect to
the shares remaining subject to the Non-Qualified Option.

         7.4 COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES. No
Non-Qualified Option shall be exercisable, no Common Stock shall be issued, no
certificates for shares of Common Stock shall be delivered, and no payment shall
be made under this Plan except in compliance with all applicable federal and
state laws and regulations, and applicable requirements of any exchange or other
market having authority over the trading of the Corporation's stock.

<PAGE>

         7.5 AMENDMENT AND DISCONTINUANCE. The Board may amend, suspend or
discontinue the provisions of this Article VII at any time or from time to time;
provided that no such action may alter or impair any Non-Qualified Option
previously granted under this Article VII without the consent of the applicable
Non-Employee Director.

         7.6 COMPLIANCE WITH RULE 16b-3. With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article VII are intended to
comply with all applicable conditions of Rule 16b-3 or its successors under the
1934 Act. To the extent any provision of this Article VII or action by the Board
or the Committee fails so to comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable by the Committee

                                  ARTICLE VIII
                                  MISCELLANEOUS

         8.1 APPLICATION OF FUNDS. The proceeds received by the Corporation from
the sale of Stock pursuant to the exercise of Rights will be used for general
corporate purposes.

         8.2 NO OBLIGATION TO EXERCISE RIGHT. The granting of a Right shall
impose no obligation upon the recipient to exercise such Right.

         8.3 TERM OF PLAN. Except as otherwise specifically provide herein,
Rights may be granted pursuant to this Plan from time to time within ten (10)
years from the Effective Date.

         8.4 CAPTIONS AND HEADINGS; GENDER AND NUMBER. Captions and paragraph
headings used herein are for convenience only, do not modify or affect the
meaning of any provision herein, are not a part of, and shall not serve as a
basis for, interpretation or construction of this Plan. As used herein, the
masculine gender shall include the feminine and neuter, and the singular number
shall include the plural, and vice versa, whenever such meanings are
appropriate.

         8.5 EXPENSES OF ADMINISTRATION OF PLAN. All costs and expenses incurred
in the operation and administration of this Plan shall be borne by the
Corporation or by one or more Subsidiaries. The Corporation shall also
indemnify, defend and hold each member of the Committee harmless against all
claims, expenses and liabilities arising out of or related to the exercise of
the Committee's powers and the discharge of the Committee's duties hereunder.

         8.6 GOVERNING LAW. Without regard to the principles of conflicts of
laws, the laws of the Commonwealth of Virginia shall govern and control the
validity, interpretation, performance and enforcement of this Plan.

         8.7 INSPECTION OF PLAN. A copy of this Plan, and any amendments
thereto, shall be maintained by the Secretary of the Corporation and shall be
shown to any Eligible Employee, Non-Employee Director or other proper person
making inquiry about it.

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