GREEN MOUNTAIN COFFEE, INC.
               STOCK OPTION AGREEMENT UNDER 2000 STOCK OPTION PLAN
                             INCENTIVE STOCK OPTION

                                 October 2, 2000


         AGREEMENT  entered into by and between Green Mountain  Coffee,  Inc., a
Delaware corporation with its principal place of business in Waterbury,  Vermont
(together with its subsidiaries, the "Company"), and the undersigned employee of
the Company (the "Optionee").

         The Company  desires to grant the  Optionee an  incentive  stock option
under the  Company's  2000 Stock Option Plan, as amended (the "Plan") to acquire
shares of the Company's Common Stock, par value $.10 per share (the "Shares").

         The Plan  provides  that each  option is to be  evidenced  by an option
agreement, setting forth the terms and conditions of the option.

         ACCORDINGLY,  in  consideration  of the  premises  and  of  the  mutual
covenants and agreements  contained herein,  the Company and the Optionee hereby
agree as follows:

         1.       Grant of Option.

         The Company  hereby  grants to the  Optionee  incentive  stock  options
(collectively, the "Option") to purchase all or any part of the number of Shares
shown at the end of this Agreement on the terms and conditions  hereinafter  set
forth.  This Option is intended to be treated as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

         2.       Purchase Price.

         The purchase  price  ("Purchase  Price") for the Shares  covered by the
Option  shall  be the  dollar  amount  per  Share  set  forth at the end of this
Agreement.

         3.       Time of Exercise of Option.

         This Option shall be first  exercisable as to 25% of the Shares on each
of the first four anniversary dates of this Agreement.

         To the extent  the  Option is not  exercised  by the  Optionee  when it
becomes exercisable, it shall not expire, but shall be carried forward and shall
be exercisable, on a cumulative basis, until the Expiration Date, as hereinafter
defined.

         4.       Term of Options; Exercisability.

         (a)      Term.

                  (i)      Each Option shall expire on the date shown at the end
                           of  this  Agreement  (the  "Expiration   Date"),   as
                           determined  by the Board of  Directors of the Company
                           (the "Board").

                  (ii)     Except as  otherwise  provided in this  Section 4, if
                           the   Optionee's   employment   by  the   Company  is
                           terminated,   the  Option  granted  to  the  Optionee
                           hereunder  shall  terminate  on the earlier of ninety
                           days after the date the Optionee's  employment by the
                           Company is terminated,  or (ii) the date on which the
                           Option expires by its terms.

                  (iii)    If the  Optionee's  employment  is  terminated by the
                           Company  for  cause or  because  the  Optionee  is in
                           breach of any employment agreement,  such Option will
                           terminate on the date the  Optionee's  employment  is
                           terminated by the Company.

                  (iv)     If the  Optionee's  employment  is  terminated by the
                           Company  because the Optionee has become  permanently
                           disabled  (within the meaning of Section  22(e)(3) of
                           the Code), such Option shall terminate on the earlier
                           of (i)  one  year  after  the  date  such  Optionee's
                           employment by the Company is terminated,  or (ii) the
                           date on which the option expires by its terms.

                  (v)      In the event of the death of the Optionee, the Option
                           granted  to  such  Optionee  shall  terminate  on the
                           earlier   of  (i)  one  year   after  the  date  such
                           optionee's  employment by the Company is  terminated;
                           or (ii) the date on which the  option  expires by its
                           terms.

         (b)      Exercisability.

                  (i)      Except  as   provided   below,   if  the   Optionee's
                           employment by the Company is  terminated,  the Option
                           granted   to  the   Optionee   hereunder   shall   be
                           exercisable  only to the  extent  that  the  right to
                           purchase  shares under such Option has accrued and is
                           in effect on the date the  Optionee's  employment  by
                           the Company is terminated.

                  (ii)     If the  Optionee's  employment  is  terminated by the
                           Company  because  he or she  has  become  permanently
                           disabled, as defined above, the option granted to the
                           Optionee  hereunder shall be immediately  exercisable
                           as to the  full  number  of  Shares  covered  by such
                           Option,  whether  or  not  under  the  provisions  of
                           Section   3  hereof   such   Option   was   otherwise
                           exercisable as of the date of disability.

                  (iii)    In the event of the death of the Optionee, the Option
                           granted to such Optionee may be exercised to the full
                           number  of Shares  covered  thereby,  whether  or not
                           under the provisions of Section 3 hereof the Optionee
                           was  entitled  to do so at  the  date  of  his or her
                           death,  by the  executor,  administrator  or personal
                           representative of such Optionee,  or by any person or
                           persons  who  acquired  the  right to  exercise  such
                           Option by bequest or  inheritance or by reason of the
                           death of such Optionee.

         5.       Manner of Exercise of Option.

         (a) To the extent that the right to exercise the Option has accrued and
is in effect,  the option may be exercised in full or in part by giving  written
notice to the Company stating the number of Shares  exercised and accompanied by
payment in full for such Shares.  No partial  exercise may be made for less than
twenty-five  (25) full shares of Common  Stock.  Payment may be either wholly in
cash or in whole or in part in Shares already owned by the person exercising the
Option,  valued  at fair  market  value  as of the date of  exercise;  provided,
however,  that payment of the exercise price by delivery of Shares already owned
by the person  exercising  the Option may be made only if such  payment does not
result in a charge to earnings for financial  accounting  purposes as determined
by the  Board.  Upon such  exercise,  delivery  of a  certificate  for  paid-up,
non-assessable  Shares shall be made at the  principal  office of the Company to
the person  exercising  the option,  not less than thirty (30) and not more than
ninety (90) days from the date of receipt of the notice by the Company.

         (b) The  Company  shall at all  times  during  the  term of the  Option
reserve  and keep  available  such  number of Shares  as will be  sufficient  to
satisfy the requirements of the Option.

         6.       Non-Transferability.

         The  right  of  the  Optionee  to  exercise  the  option  shall  not be
assignable or transferable by the Optionee otherwise than by will or the laws of
descent and distribution, and the Option may be exercised during the lifetime of
the  Optionee  only by him or her. The Option shall be null and void and without
effect upon the  bankruptcy of the Optionee or upon any attempted  assignment or
transfer,  except as  hereinabove  provided,  including  without  limitation any
purported  assignment,  whether  voluntary  or  by  operation  of  law,  pledge,
hypothecation or other disposition contrary to the provisions hereof, or levy of
execution,  attachment,  trustee  process or similar  process,  whether legal or
equitable, upon the Option.

         7.       Representation Letter and Investment Legend.

         (a) In the event  that for any  reason  the  Shares  to be issued  upon
exercise of the Option shall not be effectively  registered under the Securities
Act of 1933,  as amended (the "1933 Act"),  upon any date on which the option is
exercised  in whole or in part,  the person  exercising  the Option shall give a
written  representation  to the Company in the form attached hereto as Exhibit 1
and the Company shall place an "investment legend",  so-called,  as described in
Exhibit  1,  upon any  certificate  for the  Shares  issued  by  reason  of such
exercise.

         (b) The Company shall be under no  obligation  to qualify  Shares or to
cause a registration statement or a post-effective amendment to any registration
statement to be prepared for the purposes of covering the issue of Shares.

         8.       Adjustments on Changes in Capitalization.

         Adjustments on changes in capitalization  and the like shall be made in
accordance with the Plan, as in effect on the date of this Agreement.

         9.       No Special Employment Rights.

         Nothing  contained in the Plan or this Agreement  shall be construed or
deemed by any person under any circumstances to bind the Company to continue the
employment  of the  Optionee  for the period  within  which  this  Option may be
exercised. However, during the period of the Optionee's employment, the Optionee
shall render  diligently  and  faithfully the services which are assigned to the
Optionee  from time to time by the  Board or by the  executive  officers  of the
Company and shall at no time take any action which directly or indirectly  would
be inconsistent with the best interests of the Company.

         10.      Rights as a Shareholder.

         The Optionee shall have no rights as a shareholder  with respect to any
Shares  which may be  purchased  by exercise  of this option  unless and until a
certificate  or  certificates  representing  such  Shares  are duly  issued  and
delivered to the Optionee.  Except as otherwise  expressly provided in the Plan,
no  adjustment  shall be made for dividends or other rights for which the record
date is prior to the date such stock certificate is issued.

         11.      Withholding Taxes.

         Whenever  Shares are to be issued  upon  exercise of this  Option,  the
Company  shall have the right to require the Optionee to remit to the Company an
amount  sufficient  to satisfy  all  Federal,  state and local  withholding  tax
requirements  prior to the delivery of any certificate or certificates  for such
Shares.  The  Company  may agree to  permit  the  Optionee  to  withhold  Shares
purchased   upon  exercise  of  this  Option  to  satisfy  the   above-mentioned
withholding requirement.


<PAGE>


         IN  WITNESS  HEREOF,  the  Company  has  caused  this  Agreement  to be
executed,  and the Optionee has hereunto set his or her hand and seal, all as of
the day and year first above written.

GREEN MOUNTAIN COFFEE, INC.                  OPTIONEE

By:  /s/ Robert P. Stiller                   James Prevo
     ---------------------                   -----------
     Robert P. Stiller                       Optionee
     President
                                             10,000
                                             ----------------
                                             Number of Shares

                                             $18.875
                                             ------------------------
                                             Purchase Price Per Share

                                             October 2, 2010
                                             ---------------
                                             Expiration Date