Document:

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                     DISTRIBUTION AND FULFILLMENT AGREEMENT
                     --------------------------------------

     This DISTRIBUTION AND FULFILLMENT AGREEMENT (the "Agreement") is made as of
May 12, 2000 (the "Effective Date") by and between BUY.COM INC., a Delaware
corporation, with its principal place of business at 85 Enterprise, Aliso Viejo,
CA 92656 (the "Seller"), and INGRAM ENTERTAINMENT INC., a Tennessee corporation,
with its principal place of business at Two Ingram Boulevard, La Vergne,
Tennessee 37089 (the "Distributor").

     1.   Definitions.
          -----------

          1.1  "Back Ordered Products" means Products that Distributor does not
     have in stock in its shipping facilities at the time an Order is submitted
     for them.

          1.2  "Business Day" means a day on which Distributor regularly
     conducts business, excluding holidays.

          1.3  "Customer" means a person in the United States, its territories
     and protectorates, who orders Products from Seller's online retail store.

          1.4  "Damaged Products" means Products shipped by Distributor which
     are damaged during shipment to Customers to the extent that the Products
     cannot be used for their intended purpose.  Products damaged while in the
     care, custody, or control of the Customer are not Damaged Products for
     purposes of this Agreement.

          1.5  "Defective Products" means Products shipped by Distributor which
     contain manufactured defects which prevent them from being used for their
     intended purpose.

          1.6  "EDI" means the EDI/X.12 based order delivery format for
     transmitting data between computers via a value-added network (mailbox
     service provider) or via the Internet.

          1.7    "Electronic Report" means information provided electronically.

          1.8  "FTP" means file transfer protocol utilized to provide
     information necessary for placing orders with Distributor via a value-added
     network or the Internet.

          1.9  "Inserts" means custom insertions acceptable to Distributor which
     Seller delivers to Distributor at no expense to Distributor and which
     Seller requests to be included with Shipments.

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          1.10 "Order" means a Product order placed by Seller in accordance with
     this Agreement.

          1.11 "Priority Order" means an Order to be shipped via overnight or
     second day air freight.

          1.12 "Products" means Distributor's (or its vendors') products Seller
     may purchase pursuant to this Agreement.

          1.13 "Shipment" means a shipment of Product by Distributor in response
     to an Order.

          1.14 "Shipping Facilities" means Distributor facilities in the United
     States designated from time-to-time by Distributor as direct-to-consumer
     distribution facilities.

          1.15  "Standard Order" means an Order other than a Priority Order.

          1.16  "Unmerchandisable Products" means Products shipped by
     Distributor which are shopworn and/or soiled.

     2.   Electronic Data Transmission.  Electronic data transmissions between
          ----------------------------
Distributor and Seller shall be via EDI.  Distributor will furnish Seller the
specifications for FTP and any other means of electronic data transmission
(other than EDI).  Distributor may change those specifications from time-to-time
on not less than 30 days prior written notice to Seller.

     3.   Fulfillment Services.
          --------------------

          3.1  Orders.  Seller will transmit Orders to Distributor via
     electronic data transmission. Seller will use commercially reasonable
     efforts to send Orders to Distributor in continuous serial transmissions in
     intervals of no less than one hour. Distributor will use commercially
     reasonable efforts to service Priority Orders and Standard Orders as set
     out in Section 3.2 below. Each Order shall contain the following
            -----------
     information: (a) the Customer's name and complete shipping address; (b) the
     Distributor-approved shipping method to be used; (c) the text of any
     special messages to the Customer; and (d) the Products to be shipped and
     their quantity.

          3.2  Fulfillment.  After receipt of an Order, Distributor will: (a)
     fill the Order from Products in stock at the Shipping Facilities; (b) print
     all packing slips excluding Inserts; (c) insert all packing slips and
     Inserts; (d) print and affix shipping labels on Shipments; (e) when made
     available by Distributor, print the text of any reasonable special message
     acceptable to Distributor on the standard packing slip requested by Seller
     in the Order; (f) ship the Order to the Customer; (g) order from the vendor
     any Back Ordered Products and notify Seller that the

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     Back Ordered Products are backordered and the expected arrival date if
     available (in which case Seller may, via electronic data transmission to
     Distributor, or other mutually agreed method of communication, elect to
     terminate the Order with respect to the Back Ordered Products or in total);
     and (h) if not terminated as described in clause (g), ship any Back Ordered
                                               ----------
     Products following their receipt by Distributor at the Shipping Facilities
     in accordance with the terms of this Section. Provided Distributor receives
     a Priority Order and the related picking ticket is printed no later than
     [***], Central Time on a Business Day, Distributor will use commercially
     reasonable efforts to ship the Order [***]. If a Priority Order is received
     and the related picking ticket is printed after [***], Central Time on a
     Business Day, Distributor will use commercially reasonable efforts to ship
     the Order [***]. Provided Distributor receives a Standard Order and the
     related picking ticket is printed no later than [***], Central Time, on a
     Business Day, Distributor will use commercially reasonable efforts to ship
     the order [***]. If a Standard Order is received and a related picking
     ticket is printed after [***], Central Time, on a Business Day, Distributor
     will use commercially reasonable efforts to ship the Order [***]. If
     Distributor does not ship an Order as provided above, Distributor will
     notify Seller no later than [***], and Seller may without obligation cancel
     the Order by notice to Distributor via electronic data transmission. Seller
     will also have the right to cancel an Order by notice to Distributor via
     electronic data transmission (or other mutually agreed method of
     communication) [***] with respect to that Order. Seller will not be
     invoiced for cancelled Orders. Seller will notify Customers of Order
     cancellations. For any Orders not sent in a continuous serial transmission
     in intervals of no less than [***], Distributor will use commercially
     reasonable efforts to ship the Order within the later of [***] of the Order
     being received by Distributor and being available to be printed in
     Distributor's warehouse, or [***].

          3.3  Packing Slips.  Packing slips printed and inserted in Shipments
     by Distributor will be agreed upon in "look and feel" by Distributor and
     Seller, based on Seller's specifications and Distributor's capability.

          3.4  Shipment.  Distributor will use commercially reasonable efforts
     to ship Products in accordance with the Distributor-approved shipping
     methods specified by Seller in the Order.  Distributor will use
     commercially reasonable efforts to package all Shipments in a manner to
     prevent damage during shipment, the "look and feel" of which packaging will
     be agreed upon by Distributor and Seller, based on Seller's specifications
     and Distributor's capability.  Distributor will cooperate with Seller in
     tracking any lost shipments and filing any related carrier claims.  Except
     as specifically set out in this Agreement, all shipping shall be at the
     expense of Seller, or, if paid by Distributor, reimbursed by Seller at
     Distributor's cost (including discounts).  In the event of a planned system
     shutdown during a Business Day exceeding [***] or a physical inventory that
     delays shipments for more than [***], Distributor shall, at no cost to
     Seller,

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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     [***]. The risk of loss for Products shall pass from Distributor when the
     Products are delivered to the carrier for shipment to the Customers.
     Distributor shall provide Seller a [***] of net purchases per month credit,
     which Seller and Distributor hereby agree will be deemed to compensate
     Seller for any mis-shipments by Distributor.

          3.5  Master Database License Agreement. Distributor and Seller hereby
     ratify and affirm the terms and conditions of the Master Database License
     Agreement between Seller and SPEEDSERVE.COM INC., dated December 3, 1998,
     as to which Seller is the successor to SPEEDSERVE.COM INC. (the "Database
     License"). The Database License describes the Products as of the most
     recent update of the Ingram Entertainment Inc. Master Database (the "Master
     Database") made available to Seller. Distributor makes no representation or
     warranty as to the availability of any of the Products, whether or not
     included in the Master Database.

          3.6  Reports to Seller.

               (a) [***], Distributor will furnish Seller Electronic Reports of
          the following: (A) all Shipments made that Business Day by Order
          number and tracking number (if available), all Products contained in
          each Order, and all Back Ordered Products by order number, and (B)
          Orders received, but not shipped, and the status of each such Order;
          and (C) all Product returns (identified by Return Authorization
          Number) processed by Distributor indicating quantity and item(s)
          received and other information in reasonably sufficient detail (i.e.
                                                                          ----
          Customer and invoice number) to allow Seller to properly credit
          Customers for such returns.

               (b) [***], Distributor shall provide a statement of account which
          details (i) all invoices sent to Seller during the prior calendar
          month; (ii) all payments received from Seller during the prior
          calendar month, and other credits made against Seller's payment
          obligations; and (iii) all unpaid invoices.

          3.7  License.  Seller hereby grants to Distributor the license to (a)
   distribute the Inserts in connection with the Products, and (b) use Seller's
   trademarks in accordance with Seller's specifications on Product invoices and
   other materials provided to Customers.

          3.8  Non-Exclusive Dealing. Nothing in this Agreement requires
   Distributor to deal exclusively with Seller in any capacity or Seller to deal
   exclusively with Distributor in any capacity.

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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     4.   Returns.
          -------

          4.1  Returns Generally. Return allowance rights of Seller with respect
     to particular Products are set out in Exhibit A. In order for returned
                                           ---------
     Products (including Defective Products, Unmerchandisable Products, Damaged
     Products, and Products erroneously shipped to Customers) to be eligible for
     credit pursuant to this Agreement, Seller agrees to the following
     procedures:

               (i)   Seller must furnish Distributor a request for return
          authorization (RMA) no later than [***] after shipment of the relevant
          Products to a Customer;

               (ii)  Seller will furnish the Customer desiring to return
          Products a return authorization (RA) number of no more than eight
          characters, all of which must be alpha numeric; and

               (iii) Seller will furnish to Distributor Seller's RA number
          furnished to the Customer; the Seller's account number for that
          Customer; the item number(s) or UPC number(s) of the Products being
          returned; the quantity of each Product being returned; Seller's
          invoice number to which the return is to be applied; and the reason
          for the Product return (carrier damage, shipped in error, defective,
          Customer error, Customer change in preference, etc.).

     Seller will be issued a credit by Distributor for [***] for the returned
     Products (excluding freight and handling fees) or, [***]; provided,
                                                               --------
     however, that if Seller furnishes Distributor the applicable invoice number
     -------
     and the returned Products have been received by Distributor no more than
     [***] after the invoice date, such credit will be equal to [***] shown on
     that invoice. In the event of the return by Customers of Defective
     Products, Unmerchandisable Products, Products shipped erroneously to
     Customers, and/or Damaged Products, the credit set out in this paragraph
     will include [***]. Distributor will provide Seller with information in
     reasonably sufficient detail (i.e. Seller's RA number and invoice number
                                   ----
     (if provided by Customer)) to allow Seller to properly credit Customers for
     such returns. Credit memos for returns will be processed by Distributor and
     delivered to Seller within [***] after Distributor's receipt of the
     returned Product. Credits issued to Seller under any such credit memos will
     be applied [***]. Seller will reimburse Distributor per normal payment
     terms set out in Section 5.3 for any freight costs charged to Distributor
                      -----------
     by the carrier due to Customer refusal to accept delivery of Products
     correctly shipped to the Customer which are then returned by the carrier to
     Distributor. Except as set out in Section 3.4, Distributor's sole liability
                                       -----------
     for any Defective Products, Unmerchandisable Products, Products erroneously
     shipped to Customers, and/or Damaged Products will be acceptance of their
     return and issuance of the credit set out in this

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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     paragraph. If Seller desires replacement of any of the four types of
     Products described in the preceding sentence, Seller will initiate a new
     order for the replacement Products.

          4.2  Limitation on Return of Defective Products, Unmerchandisable
     Products, and Damaged Products. On a category-by-category basis, using the
     categories set out in Exhibit A, the return rights of Seller with respect
                           ---------
     to Defective Products, Unmerchandisable Products, and Damaged Products will
     be limited, on a monthly basis, to [***], on a title-by-title basis, of net
     units purchased, plus pass through of any additional damaged/defective
     return privileges granted by the studio or other manufacturer for that
     particular title.

          4.3  Mint, Resalable Condition. All Product returned to Distributor
     (except for returns of Defective Products, Unmerchandisable Products, or
     Damaged Products) must be with the original packaging intact (including
     manufacturer's shrink wrap) and otherwise in mint, resalable condition. No
     credit will be issued for any returned Product not in mint, resalable
     condition with the original packaging intact, except as set forth above.

     5.   Payment.
          -------

          5.1  Prices. Product and service prices to be paid by Seller to
     Distributor are set forth on Exhibit A.
                                  ---------

          5.2  Fees.  Fees for services provided by Distributor to Seller are
     set forth on Exhibit A.
                  ---------

          5.3  Payment Terms. Distributor will invoice Seller upon shipment of
     Product. All invoices shall be due and payable [***] from invoice date.
     Seller understands that if a credit line with Distributor is established,
     it may be modified from time-to-time based upon Distributor's credit review
     and credit policies. Any amounts not paid when due will be subject to a
     late charge of [***] per month ([***] per annum) on the overdue balance
     (or, if less, the maximum amount permitted by applicable law). Disputed
     amounts are limited to incidents where an incorrect price has been charged,
     Distributor has failed to comply with Seller's shipping instructions, or
     duplicate orders were issued by Distributor. If an item is disputed, both
     parties will work in good faith to resolve the disputed item within [***]
     and the item will not accrue late charges during that time. If the parties
     cannot resolve the disputed item within the [***] time frame, said disputed
     amount will start accruing late charges on [***] at the rate set forth
     above until resolved. Payments received from Seller will be credited first
     to unpaid interest.

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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          5.4  Advertising.  Advertising is addressed in Exhibit A.
                                                         ---------

     6.   Disclaimer.  DISTRIBUTOR PROVIDES ALL PRODUCTS, MATERIALS AND SERVICES
          ----------
TO SELLER AND ITS CUSTOMERS "AS IS," AND DISTRIBUTOR DISCLAIMS ALL WARRANTIES
AND CONDITIONS, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED
WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, AND FITNESS FOR A
PARTICULAR PURPOSE.  However, the foregoing disclaimer does not limit any
warranties provided by Product vendors to either Seller or its Customers. To the
extent any Order includes a message from the Customer to the recipient of the
Order, Seller acknowledges that Distributor will not screen or review any such
message and Seller agrees to indemnify and hold harmless Distributor from and
for any claim allegation, cost, loss, or liability of Distributor related to any
such message or its inclusion in any order.  Each party acknowledges that it has
not entered into this Agreement in reliance upon any warranty or representation
except as specifically set forth herein.  DISTRIBUTOR HAS NOT LICENSED OR
PROVIDED AND DOES NOT HEREBY LICENSE OR PROVIDE SELLER THE RIGHT TO USE ANY
LOGO, TRADEMARK, OR OTHER INTELLECTUAL PROPERTY OF DISTRIBUTOR, ANY SUPPLIER OR
VENDOR, OR ANY OTHER PARTY.

     7.   Limitation of Liability.  NEITHER DISTRIBUTOR NOR SELLER SHALL BE
          -----------------------
LIABLE FOR PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOST
PROFITS (INCLUDING DUE TO NEGLIGENCE) ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT, EVEN IF SUCH PARTY HAS NOTICE OF THE POSSIBILITY OF SUCH DAMAGES.
THE ONLY LIABILITY DISTRIBUTOR WILL HAVE WITH RESPECT TO ANY DEFECTIVE PRODUCTS,
DAMAGED PRODUCTS, UNMERCHANDISABLE PRODUCTS, AND/OR PRODUCTS ERRONEOUSLY SHIPPED
WILL BE THE RETURN RIGHTS OF CUSTOMERS AND THE OBLIGATION TO PROVIDE THE CREDITS
DESCRIBED IN THIS AGREEMENT.  IN THE EVENT OF AN ALLEGED BREACH OF THIS
AGREEMENT BY DISTRIBUTOR, THE MAXIMUM LIABILITY OF DISTRIBUTOR TO SELLER SHALL
NOT EXCEED $1,000,000.  IN THE EVENT OF AN ALLEGED BREACH OF THIS AGREEMENT BY
SELLER, THE MAXIMUM LIABILITY OF SELLER TO DISTRIBUTOR, IN ADDITION TO PAYMENT
OF ALL AMOUNTS DUE TO DISTRIBUTOR UNDER SECTION 5, SHALL NOT EXCEED $1,000,000.
                                        ---------
THE PRECEDING TWO SENTENCES SHALL NOT APPLY TO ANY BREACHES OF SECTIONS 9, 11,
                                                               ---------------
12.11, OR 12.12.
---------------

     8.   Term and Termination.
          --------------------

          8.1  Term.  Unless earlier terminated as specified below, this
     Agreement expires December 2, 2001; provided, however, that Distributor may
     terminate this Agreement immediately in the event Seller becomes more than

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     [***] past due or otherwise violates its credit terms with Distributor.
     This Agreement shall automatically renew for additional one year terms
     unless one party provides the other written notice of non-renewal [***]
     prior to the expiration of the initial or any renewal term. During any
     renewal term this Agreement may be terminated by either party at any time
     for any reason on [***] prior written notice to the other.

          8.2  Event of Default.  Either party may terminate this Agreement
     immediately upon the occurrence of an Event of Default by the other party.
     As used herein, an "Event of Default" means the defaulting party's failure
     to cure, after receipt of not less than 30 days' prior written notice from
     the non-defaulting party, any of the following: (a) failure of the
     defaulting party to observe or perform any condition or obligation imposed
     on the defaulting party under this Agreement (including payment
     obligations); (b) breach of any warranty made by the defaulting party under
     this Agreement; or (c) filing of a voluntary petition in bankruptcy or
     having an involuntary petition filed against the defaulting party, or the
     execution of an assignment for the benefit of creditors of the defaulting
     party. The option to terminate this Agreement shall be in addition to, and
     not in lieu of, any other remedy available to the terminating party under
     this Agreement or at law or equity, all such remedies being cumulative.

          8.3 Effect of Termination. Upon expiration or termination, at Seller's
     option, Distributor will either (a) fulfill all pending Orders in
     accordance with their terms, in which case all applicable covenants and
     licenses under this Agreement shall survive to the limited extent necessary
     to fulfill such Orders, or (b) cancel all pending Orders and immediately
     refund any payments already made for such pending Orders and any credits
     due. Absent election by Seller, Distributor may elect (a) or (b). Further,
     the parties will promptly reconcile accounts payable and receivable and
     bring the balance owed, if any, current. Sections 2, 4, 6, 7, 8.4, 9, 10,
                                              -------- -  -  -  -  ---  -  --
     11, and 12 shall survive termination or expiration.
     --      --

     9.   Confidentiality.  The parties agree, during the term of this Agreement
          ---------------
and for the five year period following its termination or expiration, to keep
strictly confidential and not disclose to any party, other than its agents,
employees, contractors, or advisors, and then only on a need to know basis after
having informed such individuals of the confidential nature of the information
and such party's obligation to protect that confidentiality and not to disclose
such information except as set out herein, the following:  (a) any term or
condition of this Agreement or of any transaction entered into pursuant to it,
or (b) any information about the other party or its business, operations,
products, finances, customers, distributors, systems, budgets, or liabilities
obtained in connection with this Agreement or the transactions contemplated by
it.  The provisions of this Section shall not apply to information which (v) is
already known to the receiving party or is publicly available at the time of
disclosure; (w) becomes publicly available after disclosure through no act of
the receiving party; (x) is disclosed

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       8
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by the disclosing party without an obligation or reasonable expectation of
confidentiality; (y) is required by law or governmental agency to be disclosed
(after providing the disclosing party the opportunity to seek a protective order
or confidential treatment at its expense), or (z) is required by the Securities
and Exchange Commission. Neither party shall issue any press release or similar
publicity statement concerning this Agreement's existence or terms without both
parties' prior approval.

     10.  Compliance with Laws.  At its own expense, each party will comply with
          --------------------
all applicable laws and regulations regarding its activities related to this
Agreement.

     11.  Taxes.
          -----

          11.1  Generally. Seller is the seller of the Products to its Customers
     and shall be solely responsible for any and all sales and similar taxes
     arising from such sales. Subject to Section 11.2, SELLER SHALL FOREVER
                                         ------------
     DEFEND, INDEMNIFY, AND HOLD HARMLESS DISTRIBUTOR AND ITS AFFILIATES, AND
     THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AND CONTRACTORS, FROM ANY
     AND ALL SALES, USE, AND SIMILAR TAX LIABILITY, INCLUDING INTEREST,
     PENALTIES, AND RELATED CHARGES, ARISING FROM THE SALE OF THE PRODUCTS TO
     CUSTOMERS OR THE SHIPMENT OF PRODUCTS BY DISTRIBUTOR TO CUSTOMERS
     (COLLECTIVELY, "TAXES"), EXCEPT TO THE EXTENT SUCH TAXES ARE LEVIED ON THE
     INCOME DISTRIBUTOR DERIVES FROM SALES TO SELLER (THE "TAX INDEMNIFICATION
     OBLIGATION"). The Tax Indemnification Obligation shall be increased by and
     include interest on any sum not paid when due, at the rate of [***] per
     annum, compounded annually, until paid. Distributor represents and warrants
     as of December 28, 2000, that no state has notified Distributor of, or
     assessed Distributor for, any Taxes which would give rise to a Tax
     Indemnification Obligation.

          11.2  Nexus States. With respect to Taxes imposed by any state listed
     on Exhibit B (each a "Nexus State"), the Tax Indemnification Obligation
        ---------
     shall be limited to Taxes in connection with Orders received by Distributor
     from Seller [***]. Distributor will establish a reserve equal to [***] (the
     "After-Tax Reserve"). To the extent, on January 1, 2005, the After-Tax
     Reserve exceeds the total of any and all liability of Distributor for Taxes
     paid or incurred to each Nexus State in connection with Orders received by
     Distributor from Seller on or after [***], that excess shall be applied to
     any unpaid Tax Indemnification Obligation. To the extent any balance of the
     After-Tax Reserve still remains, that balance will be paid to Seller, plus
     interest on that balance from [***], to the date of payment, calculated at
     [***] per annum, compounded annually. Distributor shall have no obligation
     to hold the After-Tax Reserve in any fund,

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       9
<PAGE>

     separate or otherwise, and, except as set out above, shall have no
     obligation to pay Seller any interest or other income in connection with
     the After-Tax Reserve.

     12.  General Provisions.
          ------------------

          12.1 Governing Law/Forum Selection. This Agreement will be governed
     and construed in accordance with the laws of the State of Tennessee without
     giving effect to conflict of laws principles. Both parties submit on a non-
     exclusive basis to the jurisdiction and venue of the federal and state
     courts sitting in Nashville, Tennessee or in Orange County, California, and
     further agree that any cause of action arising under this Agreement may be
     brought in such courts.

          12.2 Severability; Headings. If any provision herein is held to be
     invalid or unenforceable for any reason, the remaining provisions will
     continue in full force without being impaired or invalidated in any way.
     Headings are for reference purposes only and in no way define, limit,
     construe or describe the scope or extent of such section.

          12.3 Force Majeure. If performance hereunder is prevented, restricted
     or interfered with by any action or condition whatsoever beyond the
     reasonable control of a party, the party so affected, upon giving prompt
     notice to the other party, shall be excused from such performance to the
     extent of such prevention, restriction or interference. Each party shall
     use commercially reasonable efforts to mitigate the effect of a force
     majeure.

          12.4 Independent Contractors. The parties are independent contractors,
     and no agency, partnership, joint venture, employee-employer or franchisor-
     franchisee relationship is intended or created by this Agreement. Neither
     party shall make any warranties or representations on behalf of the other
     party.

          12.5 Notice. Except as otherwise specified, any notices hereunder
     shall be given to the appropriate party at the address specified above or
     at such other address as the party shall specify in writing. Notice shall
     be deemed given upon personal delivery; if sent by fax, upon confirmation
     of receipt; if sent by certified or registered mail, postage prepaid, three
     mail delivery days after deposit in the U.S. mail; or if sent by overnight
     courier, upon receipt.

          12.6 Assignments. Neither party may assign this Agreement or its
     rights or obligations under it without the prior written consent of the
     other; provided, however, that either party may assign all of its rights
            -----------------
     and obligations under this Agreement without the prior written consent of
     the other party if the assignee is (a) an entity which directly or
     indirectly controls, is controlled by, or is under common control with the
     assigning party, or (b) an acquirer of substantially all of the assets of
     the assigning party via merger, stock sale, or other means; provided,
                                                                 --------
     further, that in each case the assignee expressly agrees in
     -------

                                       10
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     writing, for the benefit of the non-assigning party, to be bound by all
     terms, conditions, and obligations of the Agreement and the non-assigning
     party receives prompt notice of the assignment. In no event may either
     party assign this Agreement to a party reasonably deemed a competitor of
     the non-assigning party. In the event the assigning party is Seller or an
     assignee of Seller, Distributor reserves the right to independently analyze
     the credit line, if any, to be granted by Distributor to such assignee.

          12.7  Counterparts. This Agreement may be signed in any number of
     counterparts, each of which (when executed and delivered) shall constitute
     an original instrument, but all of which together shall constitute one and
     the same instrument. A telecopy signature shall be deemed an original
     signature for the purposes of this Agreement.

          12.8  Parties Bound. This Agreement shall be binding upon the parties
     and their respective successors and assigns.

          12.9  Entire Agreement; Waiver. Effective the Effective Date, the
     terms and conditions of this Agreement amend, restate, and supersede those
     in the supply agreement between Ingram and SPEEDSERVE.COM, INC.,
     predecessor to Seller, dated December 3, 1998, as amended by letter dated
     August 23, 1999. This Agreement sets forth the entire understanding and
     agreement of the parties, and supersedes any and all oral or written
     agreements or understandings between the parties, as to the subject matter
     of this Agreement. Except as otherwise provided herein, it may be changed
     only by a writing signed by both parties. The waiver of a breach of any
     provision of this Agreement will not operate or be interpreted as a waiver
     of any other or subsequent breach.

          12.10  Distributor Indemnification. Distributor agrees to indemnify
     and defend Seller against, and hold Seller free and harmless from, any and
     all loss, damage, settlement or expense (including reasonable legal
     expenses), as incurred, resulting from or arising out of any breach of any
     of Distributor's representations and warranties herein, the distribution
     and sale of any of the Products, the use thereof, or any Product defects;
     provided that Seller immediately notifies Distributor, in writing, of any
     notice or claim of such loss, damage or expense of which it becomes aware,
     and permits Distributor to control, in a manner not adverse to Seller, the
     defense, settlement, adjustment or compromise of any such claim using
     counsel reasonably acceptable to Seller; provided further that
     Distributor's obligation under this Section 12.10 with respect to the
                                         -------------
     representations and warranties in Section 12.13 (a), (b), and (d) or with
                                       ------------- ---  ---      ---
     respect to the distribution and sale of any of the Products, the use
     thereof, or any Product defects, is additionally limited to
     indemnification, defense, and holding free and harmless only to the extent,
     if any, that Distributor is so indemnified, defended, and held free and
     harmless by its supplier.

                                       11
<PAGE>

          12.11  Customer Data. All Customer information and other Customer data
     collected by Seller pursuant to this Agreement shall be the exclusive
     property of Seller and be subject to Section 9 of this Agreement. Such
     information and data shall not be provided or disclosed to Distributor
     except as reasonably necessary to perform its obligations under this
     Agreement and may be used by Distributor only as reasonably necessary to
     perform its obligations under this Agreement.

          12.12  Records/Audit Rights. During the term of this Agreement,
     Distributor shall keep and maintain detailed and accurate books and records
     with regard to Product prices, Product costs, and shipping costs at such
     address(es) as it shall notify Seller of in writing from time to time.
     Seller or its representatives shall be entitled to review and audit such
     books and records and/or compliance with the terms of this Agreement during
     normal business hours upon reasonable notice to Distributor, as applicable,
     and copy pertinent materials from such books and records relating to the
     audit. Any information provided by Distributor in compliance with this
     Section, and any notes, extracts, compilations or copies of it shall be
     held in strict confidence by Seller and its representatives, be subject to
     Section 9 of this Agreement, and be used only as reasonably necessary to
     monitor compliance with this Agreement. The provisions of the preceding
     sentence shall survive termination of this Agreement.

          12.13 Distributor Representations and Warranties. Distributor
     represents and warrants to Seller:

                (a)  that it has the rights and licenses (including without
          limitation appropriate sublicense rights) necessary to permit Seller
          to market, resell, and distribute the Products;

                (b)  that the manufacturers and vendors of the Products do not
          prohibit Buy.Com from allowing the resale of such Products via the
          Internet;

                (c)  that (i) it has the full authority and legal right to carry
          out the terms of this Agreement; (ii) it has taken all action
          necessary to authorize the execution and delivery of this Agreement;
          (iii) this Agreement is a legal, valid, and binding obligation of
          Distributor enforceable in accordance with its terms, except as
          limited by bankruptcy and other laws of general application relating
          to or affecting the enforcement of creditors' rights; and (iv) it has
          not entered into and is not currently a party to any agreement that
          conflicts with the terms of this Agreement; and

                (d)  that the Products (i) shall be free and clear of all liens
          and encumbrances and (ii) shall be free from defects (including
          without limitation in workmanship, material, manufacture and design).

                                       12
<PAGE>

          12.14  Seller Representations and Warranties. Seller represents and
     warrants to Distributor that (a) it has the full authority and legal right
     to carry out the terms of this Agreement; (b) it has taken all action
     necessary to authorize the execution and delivery of this Agreement; (c)
     this Agreement is a legal, valid, and binding obligation of Seller
     enforceable in accordance with its terms, except as limited by bankruptcy
     and other laws of general application relating to or affecting enforcement
     of creditors' rights; and (d) it is not entered into and is not currently a
     party to any agreement that conflicts with the terms of this Agreement.

          12.15  Seller Indemnification. Seller agrees to indemnify and defend
     Distributor against, and hold Distributor free and harmless from, any and
     all loss, damage, settlement or expense (including reasonable legal
     expenses), as incurred, resulting from or arising out of any breach of any
     of Seller's representations and warranties herein, provided that
     Distributor immediately notifies the Seller, in writing, of any notice or
     claim of such loss, damage or expense of which it becomes aware and permits
     Seller to control, in a manner not adverse to Distributor, the defense,
     settlement, or compromise of any such claim using counsel reasonably
     acceptable to Distributor.

     "SELLER"                                 "DISTRIBUTOR"

BUY.COM INC.                            INGRAM ENTERTAINMENT INC.

By:__________________________           By:____________________________
Print Name:__________________           Print Name:  W. Donnie Daniel
Title:_______________________           Title: Senior Vice President, Finance
                                               and Administration, Chief
                                               Financial Officer, and Treasurer

                                       13
<PAGE>

                                    EXHIBITS
                                    --------

A.   Pricing

B.   Nexus States

                                       14
<PAGE>

                                   EXHIBIT A
                                   ---------

It is intended by Distributor and Seller that the pricing and related terms and
conditions (including freight, and advertising) between them for the products
covered by this Agreement be [***]./__/ Thus, the prices and related terms and
conditions set out below will be reviewed and modified to the extent necessary
for Seller to obtain [***].

  1. Rental Pricing:
     Seller will receive [***] pricing on all rental videocassette product
     (suggested retail price of [***] and higher). Gross cost is defined as
     Distributor's actual replacement cost. Seller will receive [***] on single
     purchases of multi-pack titles.

  2. Sell-through Pricing:
     Seller will receive [***] pricing, on all sell through videocassette
     product, (suggested retail price of [***] and under) with the exception of
     "Feature Sellthrough". Seller will receive [***] on Feature Sellthrough.
     Feature Sellthrough is defined as, any new or re-release, with a suggested
     retail price of $29.99 and under, in which the studio has set a national
     sales goal of 2 million or more units. Feature Sellthrough titles will
     revert to non feature pricing 30 days after release date.

  3. Videocassette Returns:
     Seller will receive a [***] return allowance on all unopened videocassette
     product in mint, resalable condition.

  4. Video Games:
     Seller will receive [***] pricing on video game rental and sell-through
     titles. Seller will receive a [***] title-by-title return allowance on all
     unopened video game sell-through product in mint, resalable condition.

  5. DVD:
     Seller will receive [***] pricing on DVD purchases and a [***] return
     allowance on all unopened DVD product in mint, resalable condition.

  6. Audio Books:
     Seller will receive a [***] discount off suggested retail price on audio
     book product purchases. Seller will receive a [***] return allowance on all
     unopened product in mint, resalable condition.

  7. Previously Viewed Video Product:
     Seller will receive [***] pricing on previously viewed video product
     purchases. [***].

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       15
<PAGE>

  8. Multimedia:
     Seller will receive [***] pricing on CD ROM product. Seller will receive a
     [***] return allowance on all unopened product in mint, resalable
     condition.

  9. Accessories:
     Seller will receive [***] pricing on all accessories. Seller will receive a
     [***] return allowance on all unopened accessory product in mint, resalable
     condition.

 10. Special Handling:
     For special handling (e.g. inserts), Seller and Distributor shall agree in
                           ----
     advance on the pricing to be offered to Seller.

 11. Advertising:
     Distributor agrees to assist Seller through December 2, 2001, on a best
     efforts basis, in the sale of advertising spaces on the BuyVideos and
     BuyGames web sites (the "Advertising Spaces"). Distributor's assistance
     shall include, but not be limited to, introductions to marketing personnel
     within the various studios, help in devising strategies for solicitation of
     the Advertising Spaces, participation in two annual Seller vendor events,
     and Seller's participation as a featured retailer at Distributor's annual
     video sales conference and key game retailer meetings.

     Distributor earns co-op advertising dollars on purchases of certain
     products from studios. Each title released has a different co-op program,
     with current customary programs providing for co-op accrual rates from
     [***] of product cost. Accrual of co-op advertising dollars by Distributor
     is based on the price Distributor pays to the studio for the product
     purchased, rather than on the price paid for the products by the retailer
     to Distributor. Through December 2, 2001, on a monthly basis, Distributor
     will directly pass-through funds to Seller in an amount equal to [***] of
     (a) the gross cost to Distributor of its products sold to Seller, less (b)
     the gross cost to Distributor of products returned by Seller to Distributor
     in that month, for use in advertising video and game products for sale on
     the Seller web sites.

     Seller will spend the amounts received from Distributor pursuant to the
     preceding paragraph on advertising video and game products on the Seller
     web sites and/or other advertising programs involving video and game
     products. Product selection and Seller pricing will be determined by Seller
     and will not affect amounts paid by Distributor pursuant to the preceding
     paragraph. By [***] Distributor will provide Seller with a report showing
     the previous month's sales by Distributor to Seller and returns by Seller
     to Distributor, together with a breakdown by product category of accrued
     pass-through funds. Seller will bill Distributor by [***] for the Seller
     advertising during that preceding month. Included in the Seller billing
     package will be proof of performance such as screen shots. All billing will
     be based on Seller's then current rate card. Amounts owed to Seller by
     Distributor

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       16
<PAGE>

     shall be credited via credit memo against any amount owed to Distributor by
     Seller for products purchased by Seller. These amounts will be credited to
     Seller within [***] of the billing date. Amounts owed by Seller to
     Distributor for the purchase of products pursuant to this Agreement shall
     be due and payable irrespective of Distributor's payment of pass-through
     funds to Seller. Pass-through funds owed by Distributor to Seller pursuant
     to this Agreement shall be due and payable irrespective of Seller's payment
     for product purchased under this Agreement. Payments made pursuant to this
     paragraph are considered by the parties to be material to this Agreement.
     Breach by a party of the payment terms of this paragraph shall entitle the
     non-breaching party to terminate this Agreement after providing the
     breaching party with a 15-day notice to cure the breach.

     From time to time, Seller may receive marketing funds directly from studios
     and other vendors.  Seller's receipt of such funds shall not affect the
     amounts paid by Distributor to Seller pursuant to this Agreement.  In
     addition, any MDF and/or co-op funding negotiated by Seller with any vendor
     will not affect the amounts paid by Distributor to Seller pursuant to this
     Agreement.

12.  Handling Fee:

     Seller will pay Distributor [***] handling fee for all units for which
     Distributor furnishes fulfillment services under this Agreement.  These
     fees will be paid per Section 5.3 of the Agreement.
                           -----------

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       17
<PAGE>

                                   EXHIBIT B
                                   ---------
[***]

____________________
  [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       18EXHIBIT 10.6

                            GREATER COMMUNITY BANCORP
                         2001 EMPLOYEE STOCK OPTION PLAN

                               ARTICLE I. PURPOSES

         The purposes of the Greater Community Bancorp 2001 Employee Stock
Option Plan are to (i) attract and retain highly qualified employees, (ii) align
employee and stockholder long-term interests by creating a direct link between
employee compensation and stockholder return, (iii) enable employees of Greater
Community Bancorp (the "Company") and its Subsidiaries to develop and maintain
stock ownership positions in the Company, and (iv) provide incentives to such
employees to contribute to the Company's success. To achieve these objectives,
the Plan provides for the granting of "incentive stock options" within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended,
"nonqualified stock options" and "stock appreciation rights."

                             ARTICLE II. DEFINITIONS

         Whenever the following terms are used in this Plan, they shall have the
meanings specified below:

         (a)      "AFFILIATE" shall mean the Company or a Subsidiary.

         (b)      "BOARD" shall mean the Company's Board of Directors.

         (c)      "CAUSE" shall mean (i) the conviction of the Participant of a
felony by a court of competent jurisdiction, (ii) the indictment of the
Participant by a State or Federal grand jury of competent jurisdiction for
embezzlement or misappropriation of funds of an Affiliate or for any act of
dishonesty or lack of fidelity towards an Affiliate, (iii) the written
confession by the Participant of any act of dishonesty towards an Affiliate or
any embezzlement or misappropriation of an Affiliate's funds, or (iv) willful or
gross neglect of the duties for which the Participant was responsible, all as
the Board, in its sole discretion, may determine.

         (d)      "CHANGE IN CONTROL" shall mean the occurrence of one or more
of the following events: (i) the Company acquires actual knowledge that any
person (as such term is used in Sections 13(d)(3) and 14(d)(2) of the Exchange
Act) other than an Affiliate is or becomes the beneficial owner (as defined in
Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the
Company representing more than 25% of the combined voting power of the Company's
then outstanding securities; (ii) the first purchase of Common Stock pursuant to
a tender or exchange offer (other than a tender or exchange offer made by an
Affiliate); (iii) the approval by the Company's stockholders of (a) a merger or
consolidation of the Company with or into another corporation (other than a
merger or consolidation in which the Company is the surviving entity and which
does not result in any reclassification or reorganization of the Company's then
outstanding shares of Common Stock or a change in the Company's directors, other
than the addition of not more than three directors), (b) a sale or disposition
of all or substantially all of the Company's assets, or (c) a plan of
liquidation or dissolution of the Company; (iv) during any period of two
consecutive calendar years, individuals who at the beginning of such period
constitute the Board cease for any reason to constitute at least two-thirds
thereof, unless the election or nomination for the election by the Company's
stockholders of each new director was approved by a vote of at least two-thirds
of the directors then still in office who were directors at the beginning of the
period; or (v) a sale of (a) Common Stock if after such sale any person (as
defined above) other than an Affiliate owns a majority of the Common Stock or
(b) all or substantially all of the Company's assets (other than in the ordinary
course of business).

         (e)      "CODE" shall mean the Internal Revenue Code of 1986, as now in
effect or as hereafter amended. (All citations to sections of the Code are to
such sections as they may from time to time be amended or renumbered.)

         (f)      "COMMITTEE" shall mean the committee consisting of at least
three (3) directors of the Company appointed by the Board to administer the Plan
pursuant to the provisions of Article III of the Plan.

         (g)      "COMMON STOCK" shall mean the Company's common stock, which
currently has a par value of $0.50 per share.

<PAGE>

GREATER COMMUNITY BANCORP                                                 PAGE 2
2001 EMPLOYEE STOCK OPTION PLAN

         (h)      "COMPANY" shall mean Greater Community Bancorp, a New Jersey
business corporation.

         (i)      "DISABILITY" shall mean permanent and total disability as
defined by the Company's employee welfare benefit plan offering a long-term
disability benefit, or, if no such benefit is offered, as defined by Section
105(d)(4) of the Code (prior to the repeal of such Section). "Disability" shall
also exist if documented by a signed written opinion of a currently licensed
medical doctor reasonably satisfactory to the Board, which written opinion shall
set forth, without limitation, a medical opinion that the Participant is
permanently disabled, the reasons for such disability, and the date of
commencement of such disability.

         (j)      "EMPLOYEE" shall mean a common law employee (as defined in
accordance with the regulations and Revenue Rulings then applicable under
Section 3401(c) of the Code) of an Affiliate.

         (k)      "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
as now in effect or as hereafter amended.

         (l)      "FAIR MARKET VALUE OF STOCK" shall mean for all purposes of
the Plan as follows: (A) if the Shares are admitted to quotation on the Nasdaq
Stock Market or other comparable quotation system and have been designated as a
Nasdaq National Market ("NNM") security, fair market value on any date shall be
the last sale price reported for the Shares on such system on such date or on
the last day preceding such date on which a sale was reported; (B) if the Shares
are admitted to quotation on the Nasdaq Stock Market and have not been
designated an NNM security, fair market value on any date shall be the average
of the highest bid and lowest asked prices of the Shares on such system on such
date; (C) if the Shares are admitted to trading on a national securities
exchange, fair market value on any date shall be the last sale price reported
for the Shares on such exchange on such date or on the last date preceding such
date on which a sale was reported; or (D) if neither (A), (B) nor (C) applies to
the Shares, fair market value on any date shall be a price equal to the mean
between the closing bid and asked prices for Shares, as quoted in writing to the
Company by either (i) a principal market maker for transactions in the Bank's
Common Stock on the over-the-counter market designated by the Board or (ii) such
other registered broker-dealer firm as is designated by the Board or the
Committee.

         (m)      "INCENTIVE STOCK OPTION" shall mean a Stock Option whose terms
satisfy the requirements imposed by Section 422 of the Code and that is intended
by the Committee to be treated as an Incentive Stock Option.

         (n)      "NONQUALIFIED STOCK OPTION" shall mean either (i) any Stock
Option that, when granted, is not an Incentive Stock Option, or (ii) an
Incentive Stock Option that, subsequent to its grant, ceases to qualify as an
Incentive Stock Option because of a failure to satisfy the requirements of
Section 422(b) of the Code.

         (o)      "NON-TANDEM STOCK APPRECIATION RIGHT" shall mean a Stock
Appreciation Right not awarded in connection with a Stock Option.

         (p)      "PARTICIPANT" shall mean an Employee who has been granted a
Stock Option and/or Stock Appreciation Right under the Plan.

         (q)      "PLAN" shall mean the Greater Community Bancorp 2001 Employee
Stock Option Plan, as may be amended from time to time.

         (r)      "RETIREMENT" shall mean any normal or early retirement by a
Participant pursuant to the terms of any pension, profit sharing or 401(k) plan,
or policy of the Company or any Subsidiary applicable to such Participant at the
time of his Termination of Service.

         (s)      "SECRETARY" shall mean the Company's corporate secretary.

         (t)      "SECURITIES ACT" shall mean the Securities Act of 1933, as now
in effect or as hereafter amended.

         (u)      "SHARES" shall mean shares of Common Stock.

         (v)      "STOCK APPRECIATION RIGHT" shall mean a right to receive cash
or Common Stock in exchange for a Stock Appreciation Right awarded in accordance
with the terms of the Plan.

<PAGE>

GREATER COMMUNITY BANCORP                                                 PAGE 3
2001 EMPLOYEE STOCK OPTION PLAN

         (w)      "STOCK OPTION" shall mean a right to purchase Common Stock
awarded in accordance with the terms of this Plan.

         (x)      "SUBSIDIARY(IES)" shall mean any corporation, limited
liability company or other legal entity, domestic or foreign, more than 50% of
the voting power of which is owned or controlled, directly or indirectly by the
Company.

         (y)      "TANDEM STOCK APPRECIATION RIGHT" shall mean a Stock
Appreciation Right awarded in connection with any Stock Option granted under the
Plan, either at the time the Stock Option is granted or thereafter at any time
prior to the exercise, termination or expiration of the related Stock Option.

         (z)      "TERMINATE (TERMINATION OF) SERVICE (OR TERMINATION)" shall
mean the time when the Participant ceases to provide services to an Affiliate as
an Employee, but shall not include a lapse in providing services that the
Committee determines to be a temporary leave of absence.

                           ARTICLE III. ADMINISTRATION

         Except as may be otherwise determined by the Board, the Plan shall be
administered by a committee (the "Committee") of three or more members of the
Board appointed by the Board who qualify as both (i) a "disinterested person" or
similar person within the meaning of the rules promulgated under Section 16(b)
of the Exchange Act as in effect from time to time and (ii) an "outside
director" within the meaning of Section 162(m) of the Code. The Committee shall
hold meetings at such times as may be necessary for the proper administration of
the Plan and shall keep minutes of its meetings. A majority of the Committee
shall constitute a quorum and a majority of the quorum present at any meeting of
the Committee may authorize any action. No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or any Stock Option and/or Stock Appreciation
Right granted pursuant thereto. The Company shall indemnify all members of the
Committee with respect to any such action, determination or interpretation to
the fullest extent permitted by law.

         Subject to the provisions of the Plan, the Committee shall have sole
authority, in its absolute discretion: (i) to determine which eligible Employees
shall be granted Stock Options and/or Stock Appreciation Rights; (ii) to grant
Stock Options and/or Stock Appreciation Rights; (iii) to determine the times
when Stock Options and/or Stock Appreciation Rights may be granted and the
number of Shares that may be purchased pursuant to such Stock Options and/or the
number of Shares associated with Stock Appreciation Rights; (iv) to determine
the exercise price of the Shares subject to each Stock Option, which price shall
be not less than the minimum specified in Section 6.1; (v) to determine the time
or times when each Stock Option and/or Stock Appreciation Right becomes
exercisable, the duration of the exercise period, and any other restrictions on
the exercise of Stock Options and/or Stock Appreciation Rights issued hereunder;
(vi) to prescribe the form or forms of the Stock Option and/or Stock
Appreciation Rights agreements under the Plan; (vii) to determine the
circumstances under which the time for exercising Stock Options and/or Stock
Appreciation Rights should be accelerated and to accelerate the time for
exercising outstanding Stock Options and/or Stock Appreciation Rights; (viii) to
determine the duration and purposes for leaves of absence that may be granted to
a Participant without constituting a Termination of Service for purposes of the
Plan; (ix) to adopt, amend and rescind such rules and regulations as, in its
opinion, may be advisable in the administration of the Plan; and (x) to construe
and interpret the Plan, the rules and regulations and the Stock Option and Stock
Appreciation Rights agreements under the Plan, and to make all other
determinations deemed necessary or advisable for the administration of the Plan;
provided, however, that with respect to those eligible Employees who are not
"officers" of the Company, within the meaning of Section 16(b) of the Exchange
Act, the Committee may delegate to any person or persons ("Subcommittee") all or
any part of its authority as set forth in (i) through (x) above. All references
in the Plan to the powers of a Subcommittee to act for the Committee shall be
applicable only to the extent consistent with the foregoing provision and only
to the extent consistent with the powers that have actually been delegated to
it. All decisions, determinations and interpretations of the Committee, or
Subcommittee, to the extent consistent with such delegation, shall be final and
binding on all Participants and on their legal representatives and
beneficiaries.

         The provisions of this Article III shall survive any termination of the
Plan.

<PAGE>

GREATER COMMUNITY BANCORP                                                 PAGE 4
2001 EMPLOYEE STOCK OPTION PLAN

                       ARTICLE IV. SHARES SUBJECT TO PLAN

         The aggregate maximum number of Shares that may be made subject to
Stock Options and Non-Tandem Stock Appreciation Rights granted pursuant to the
Plan is Three Hundred Thousand (300,000) (or the number and kind of Shares or
other securities substituted for those Shares or to which those Shares are
adjusted pursuant to the provisions of Article X of the Plan). The Company shall
reserve such number of Shares for the purposes of the Plan out of its authorized
but unissued shares, or out of Shares held in the Company's treasury, or partly
out of each, as shall be determined by the Board. No fractional Shares shall be
issued with respect to Stock Options or Stock Appreciation Rights granted under
the Plan.

         In the event any outstanding Stock Option or Stock Appreciation Right
under the Plan for any reason expires, is terminated, forfeited or is canceled
prior to the expiration date of the Plan, the Shares called for by the
unexercised portion of such Stock Option or Stock Appreciation Right may, to the
extent permitted by Rule 16b-3 under the Exchange Act, again be subject to a
Stock Option or Stock Appreciation Right under the Plan.

                ARTICLE V. ELIGIBILITY FOR AWARD OF STOCK OPTIONS
                        AND/OR STOCK APPRECIATION RIGHTS

         All officers who are Employees and other Employees of one or more of
the Affiliates shall be eligible to receive Stock Options and/or Stock
Appreciation Rights under the Plan. Nonemployee directors shall not be eligible
to participate in the Plan. However, a person who otherwise is an eligible
officer or Employee shall not be disqualified from participation in the Plan by
virtue of being a director of the Company or any Subsidiary.

                    ARTICLE VI. GRANT OF STOCK OPTIONS AND/OR
                            STOCK APPRECIATION RIGHTS

         The Committee or Subcommittee may in its sole discretion grant Stock
Options and/or Stock Appreciation Rights to such Employees as it determines
appropriate consistent with Article V. Stock Options and/or Stock Appreciation
Rights shall be evidenced by Stock Option and/or Stock Appreciation Rights
agreements (which need not be identical) in such forms as the Committee may from
time to time approve.

         Stock Option and/or Stock Appreciation Right agreements shall conform
to the terms and conditions of the Plan. Such agreements may provide that the
grant of any Stock Option and/or Stock Appreciation Right under the Plan, or
that Stock acquired pursuant to the exercise of any Stock Option and/or Stock
Appreciation Right, shall be subject to such other conditions (whether or not
applicable to the Stock Option and/or Stock Appreciation Right, or Stock
received by any other Participant), as the Committee determines appropriate,
including, without limitation, provisions conditioning exercise upon the
occurrence of certain events or performance or the passage of time, provisions
to assist the participant in financing the purchase of Stock through the
exercise of Stock Options, provisions for forfeiture, or restrictions on resale
or other disposition, of Shares acquired under the Plan, provisions giving the
Company the right to repurchase Shares acquired under the Plan in the event the
Participant elects to dispose of such Shares, and provisions to comply with
Federal and State securities laws and Federal and State income tax and other
payroll tax withholding requirements. Stock Options granted under the Plan that
are intended to qualify as Incentive Stock Options shall be specifically
designated as such in the stock option agreement.

6.1 OPTION PRICE OF STOCK OPTIONS. The exercise price for each Stock Option
granted under the Plan shall be determined by the Committee or Subcommittee;
provided, however, that it shall not be less than the greater of the Fair Market
Value of the Stock on the date of grant or the par value of the Stock.
Notwithstanding the foregoing, the Committee may in its discretion grant
Nonqualified Stock Options to purchase up to Fifty Thousand (50,000) shares at
the greater of (i) the Stock's Fair Market Value on December 19, 2000 or (ii)
eighty-five percent (85%) of the Stock's Fair Market Value on the date of
adoption of the Plan.

6.2  EXERCISABILITY AND TERMS OF STOCK OPTIONS AND/OR STOCK APPRECIATION RIGHTS.
The Committee or Subcommittee shall, subject to the terms of the Plan, determine
the dates after which Stock Options and/or Stock Appreciation Rights may be
exercised, in whole or in part, and may establish a vesting schedule that must
be satisfied before Stock Options and/or Stock Appreciation Rights may be
exercised; provided, however, that no Stock Option and/or Stock Appreciation
Right may be exercisable within six months of the date it is granted, other than

<PAGE>

GREATER COMMUNITY BANCORP                                                 PAGE 5
2001 EMPLOYEE STOCK OPTION PLAN

in the event of an acceleration as provided in Section 6.3. A Stock Option
and/or Stock Appreciation Right may provide that if it is exercisable in
installments, installments that are exercisable and not exercised shall remain
exercisable during the term of the Stock Option and/or the Stock Appreciation
Right.

         All Incentive Stock Options shall have a term of no more than ten years
from the date of grant. Upon the Termination of Service of a Participant due to
(i) voluntary resignation or involuntary dismissal without Cause, or (ii)
Retirement, all Stock Options and/or Stock Appreciation Rights that have not
become exercisable before the date the Participant Terminates Service shall be
forfeited and terminated immediately. The Participant may exercise a Stock
Option and/or Stock Appreciation Right to the extent it was exercisable by him
on the date immediately preceding such Termination within the lesser of (i) one
month from the date of Termination (six months from the date of Termination in
the case of Retirement), or (ii) the balance of the stated term of the Stock
Option and/or Stock Appreciation Right. If a Participant's employment shall be
terminated with Cause, all Stock Options and/or Stock Appreciation Rights
granted to such Participant that have not been exercised prior to such
Termination for Cause shall, whether or not exercisable, be forfeited
immediately upon such Termination.

6.3  ACCELERATED VESTING AND EXERCISABILITY OF STOCK OPTIONS AND STOCK
APPRECIATION RIGHTS. If a Participant shall Terminate Service by reason of his
death or Disability, all Stock Options and/or Stock Appreciation Rights granted
to such Participant that have not become exercisable on or before the date of
such Termination shall immediately become both "vested" and fully exercisable.
All Stock Options and/or Stock Appreciation Rights held by such Participant may
be exercised by the Participant, his estate or beneficiary, or his
representative, as the case may be, for a period of one year from the date of
such Termination, or until the expiration of the stated term of such Stock
Options and/or Stock Appreciation Rights, whichever period is shorter.

         Notwithstanding the provisions of Section 6.2, in the event of a Change
in Control, any Stock Option and/or Stock Appreciation Right granted under the
Plan to a Participant that has not, as of the date of the Change in Control,
become exercisable shall immediately become both "vested" and fully exercisable.

6.4  NONTRANSFERABILITY OF STOCK OPTIONS AND/OR STOCK APPRECIATION RIGHTS.  No
Stock Option or Stock Appreciation Right shall be transferable except by will or
the laws of descent and distribution. During the Participant's lifetime the
Stock Option and/or Stock Appreciation Right shall be exercisable only by him
or, in the event of the Participant's incapacity or death, by the Participant's
guardian or legal representative. More specifically, without limitation, no
Stock Option and/or Stock Appreciation Right may be assigned, transferred
(except as specifically permitted by the Plan or the terms of the specific Stock
Option or Stock Appreciation Right agreement consistent with the Plan), pledged
or hypothecated in any way, nor shall it be assignable by operation of law or
subject to execution, attachment, garnishment or similar process. Any attempted
assignment, transfer, pledge, hypothecation or other disposition of a Stock
Option and/or Stock Appreciation Right contrary to the provisions hereof, and
the levy of any execution, attachment, garnishment or similar process upon the
Stock Option and/or Stock Appreciation Right, shall be null and void, and
without force or effect. The Committee may, however, in its sole discretion,
allow for transfers of Nonqualified Stock Options, Non-Tandem Stock Appreciation
Rights, and Tandem Stock Appreciation Rights issued in connection with Non-
Qualified Stock Options to family members, subject to such conditions or
limitations as the Board may establish.

6.5  NO OBLIGATION TO EXERCISE STOCK OPTIONS AND/OR STOCK APPRECIATION RIGHTS.
The grant of a Stock Option and/or Stock Appreciation Right shall impose no
obligation on the Participant to exercise such Stock Option and/or Stock
Appreciation Right.

6.6  CANCELLATION OF STOCK OPTIONS AND/OR STOCK APPRECIATION RIGHTS.  The
Committee, or Subcommittee, in its discretion, may, with the consent of any
Participant, cancel any outstanding Stock Option and/or Stock Appreciation
Right.

6.7  NO RIGHTS AS A STOCKHOLDER. A Participant or a transferee of a Stock Option
and/or Stock Appreciation Right shall have no rights as a stockholder with
respect to any Share covered by his Stock Option and/or Stock Appreciation Right
until he shall have become the holder of record of such Share, and he shall not
be entitled to any dividends or distributions or other rights in respect of such
Share for which the record date is prior to the date on which he shall have
become the holder of record thereof.

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GREATER COMMUNITY BANCORP                                                 PAGE 6
2001 EMPLOYEE STOCK OPTION PLAN

6.8  SPECIAL PROVISIONS APPLICABLE TO INCENTIVE STOCK OPTIONS. To the extent the
aggregate Fair Market Value (determined as of the time the Stock Option is
granted) of the Stock with respect to which any Stock Options granted hereunder
that are intended to be Incentive Stock Options may be exercisable for the first
time by the Participant in any calendar year (under this Plan or any other stock
option plan of the Company or any parent or Subsidiary thereof) exceeds $100,000
(or such other maximum level as may be set forth in the Code for such purpose),
such Stock Options shall not be considered Incentive Stock Options.

         No Incentive Stock Option may be granted to an individual who, at the
time the Stock Option is granted, owns directly, or indirectly within the
meaning of Section 424(d)of the Code, stock possessing more than 10 percent of
the total combined voting power of all classes of stock of the Company or of any
parent or Subsidiary thereof, unless such Stock Option (i) has an exercise price
of at least 110 percent of the Fair Market Value of the Stock on the date of the
grant of such Stock Option, and (ii) cannot be exercised more than five years
after the date it is granted.

         Each participant who receives an Incentive Stock Option must agree to
notify the Company in writing immediately after the Participant makes a
disqualifying disposition of any Stock acquired pursuant to the exercise of an
Incentive Stock Option. A disqualifying disposition is any disposition
(including any sale) of such Stock before the later of (i) two years after the
date the Participant was granted the Incentive Stock Option or (ii) one year
after the date the Participant acquired Stock by exercising the Incentive Stock
Option. Any transfer of ownership to a broker or nominee shall be deemed to be a
disposition unless the Participant provides proof satisfactory to the Committee
of his continued beneficial ownership of the Stock.

         Any other provision of the Plan to the contrary notwithstanding, no
Incentive Stock Option shall be granted more than ten years after the date the
Plan is adopted or the date the Company's stockholders approve the Plan,
whichever is earlier.

6.9  DEFERRED EXERCISE OF STOCK OPTIONS AND STOCK APPRECIATION RIGHTS.  If a
Participant's timely exercise of a Nonqualified Stock Option and/or Stock
Appreciation Right during a given taxable year, together with other compensation
paid to the Participant for such year, would result in a disallowance for
Federal income tax purposes, pursuant to Section 402(m) of the Code, of a
deduction to the Company of all or part of the Participant's income to be
recognized during such taxable year for Federal income tax purposes upon such
exercise, then such Participant's exercise of such Nonqualified Stock Option
and/or Stock Appreciation Right shall be ineffective and such exercise shall be
automatically deferred (except to the extent specifically permitted by the
Committee) beyond the end of such taxable year of the Company to the extent
necessary to avoid such disallowance of a deduction to the Company. The deferral
of exercise of a Nonqualified Stock Option and/or Stock Appreciation Right
provided by this Section 6.9 shall be until the next succeeding taxable year in
which the Company is not denied a tax deduction related to such exercise. The
deferral of exercise is for the Company's benefit and therefore supersedes any
other limitation on exercisability that may be set forth in any other provision
of this Plan or any Stock Option or Stock Appreciation Right agreement.

                     ARTICLE VII. EXERCISE OF STOCK OPTIONS

         Any Stock Option may be exercised in whole or in part at any time
subsequent to its becoming exercisable during its term; provided, however, that
each partial exercise shall be for whole Shares only. Each Stock Option, or any
exercisable portion thereof, may only be exercised by delivery to the Secretary
or the Secretary's office of (i) notice in writing signed by the Participant (or
other person then entitled to exercise such Stock Option) that such Stock
Option, or a specified portion thereof, is being exercised; (ii) payment in full
for the purchased Shares (as specified in Section 7.2 below); (iii) such
representations and documents as are necessary or advisable to effect compliance
with all applicable provisions of Federal or State securities laws or
regulations; (iv) in the event that the Stock Option or portion thereof shall be
exercised pursuant to Section 6.3 or 6.4 by any person or persons other than the
Participant, appropriate proof of the right of such person or persons to
exercise the Stock Option or portion thereof; and (v) full payment to the
Company of all amounts that Federal or State law requires it to withhold upon
exercise of the Stock Option (as specified in Section 7.3 below).

7.1  SHARE CERTIFICATES. Upon receiving notice and payment, the Company will
cause to be delivered to the Participant, as soon as practicable, a certificate
in the Participant's name for the Shares purchased. The Shares issuable and
deliverable upon the exercise of a Stock Option shall be fully paid and
nonassessable. The Company shall not be required to issue or deliver any

<PAGE>

GREATER COMMUNITY BANCORP                                                 PAGE 7
2001 EMPLOYEE STOCK OPTION PLAN

certificate or certificates for Shares purchased upon the complete or partial
exercise of the Stock Option prior to fulfillment of (i) the completion of any
registration or other qualification of such Shares under any Federal or State
law or under rulings or regulations of the Securities and Exchange Commission or
of any other governmental regulatory body that may be necessary or advisable;
and (ii) the obtaining of any approval or other clearance from any Federal or
State governmental agency that may be necessary or advisable.

7.2  PAYMENT FOR SHARES. Payment for Shares purchased under a Stock Option
granted hereunder shall be made in full upon exercise of the Stock Option, by
certified or bank cashier's check payable to the order of the Company or, unless
otherwise prohibited by the terms of a Stock Option agreement, by one or more of
the following: (i) in the form of Shares already owned by the Participant based
in any such instance on the Fair Market Value of the Stock on the date the Stock
Option is exercised; provided, however, that, in the case of an Incentive Stock
Option, the right to make a payment in the form of already owned Shares may be
authorized only at the time the Stock Option is granted; (ii) by a combination
thereof, in each case in the manner provided in the Stock Option agreement; or
(iii) by any other means acceptable to the Company. To the extent the Stock
Option exercise price may be paid in Shares as provided above, Shares delivered
by the Participant may be (i) Shares received by the Participant upon exercise
of one or more Incentive Stock Options, but only if such Shares have been held
by the Participant until the later of (a) two years from the date the Incentive
Stock Options were granted or (b) one year after the transfer of Shares to the
Participant, or (ii) Shares received by the Participant upon exercise of one or
more Nonqualified Stock Options and/or Stock Appreciation Rights, but only if
such Shares have been held by the Participant for at least six months.

7.3  SHARE WITHHOLDING. The Committee shall require that a Participant pay to
the Company, at the time of exercise of a Nonqualified Stock Option and/or Stock
Appreciation Right, such amount as the Committee deems necessary to satisfy the
Company's obligation to withhold Federal or State income or other taxes incurred
by reason of the exercise or the transfer of Shares thereupon. A Participant may
satisfy such withholding requirements by having the Company withhold from the
number of Shares otherwise issuable upon exercise of the Stock Option and/or
Stock Appreciation Right that number of shares having an aggregate fair market
value on the date of exercise equal to the minimum amount required by law to be
withheld; provided, however, that in the case of an exercise by a Participant
who is subject to Section 16(b) of the Exchange Act, such Participant must (i)
exercise the Stock Option and/or the Stock Appreciation Right during the period
beginning on the third business day following the date of release to the press
of the quarterly or annual summary of earnings for the Company, and ending on
the twelfth business day following such date, or (ii) irrevocably elect to
utilize Share withholding at least six months prior to the date of exercise.

7.4  LOANS. The Company may make loans to such Participants as the Committee, in
its discretion, may determine in connection with the exercise of Stock Options
granted under the Plan; provided, however, that the Committee shall not
authorize the making of any loan where the possession of such discretion or the
making of such loan would either result in a "modification" (as defined in
Section 424 of the Code) of any Incentive Stock Option or disqualify such Stock
Option from otherwise qualifying as an Incentive Stock Option. Such loans may be
subject to the following terms and conditions and such other terms and
conditions as the Committee shall determine not inconsistent with the Plan. Such
loans may bear interest at such rates as the Committee shall determine from time
to time, which rates may be below then current market rates. In no event may any
such loan exceed the exercise price, at the date of exercise, of the Shares
covered by the Stock Option or portion thereof exercised by the Participant.
When a loan shall have been made, the Committee may require that Shares of
Common Stock and/or other collateral having a fair market value at least equal
to the principal amount of the loan shall be pledged by the Participant to the
Company as security for payment of the unpaid balance of the loan. Every loan
shall also comply with all applicable laws, regulations and rules of the Board
of Governors of the Federal Reserve System and any other governmental agency
having jurisdiction thereof.

<PAGE>

GREATER COMMUNITY BANCORP                                                 PAGE 8
2001 EMPLOYEE STOCK OPTION PLAN

            ARTICLE VIII. EXERCISE OF TANDEM STOCK APPRECIATION RIGHT

         A Tandem Stock Appreciation Right shall be exercisable only to the
extent that the related Stock Option is exercisable. Each Tandem Stock
Appreciation Right, or any exercisable portion thereof, may only be exercised by
delivery to the Secretary or the Secretary's office of (i) notice in writing
signed by the Participant (or other person then entitled to exercise such Tandem
Stock Appreciation Right) that such Tandem Stock Appreciation Right, or a
specified portion thereof, is being exercised; (ii) such representations and
documents as are necessary or advisable to effect compliance with all applicable
provisions of Federal or State securities laws or regulations; (iii) in the
event that the Tandem Stock Appreciation Right or portion thereof shall be
exercised pursuant to Section 6.3 or 6.4 by any person or persons other than the
Participant, appropriate proof of the right of such person or persons to
exercise the Tandem Stock Appreciation Right or portion thereof; and (iv) full
payment to the Company of all amounts Federal or State law requires it to
withhold upon exercise of the Stock Appreciation Right (as specified in Section
7.3).

         On exercise of a Tandem Stock Appreciation Right, the Participant shall
surrender unexercised, the related Stock Option (or such portion or portions
thereof that the Participant from time to time determines to surrender for this
purpose) and shall receive in exchange, subject to the rules and regulations as
from time to time may be established by the Committee, a payment having an
aggregate value equal to (A) the excess of (i) the Fair Market Value of the
Stock on the exercise date per share over (ii) the Option Price of the related
Stock Option per share, times (B) the number of Shares called for by the related
Stock Option or portion thereof that is surrendered.

         The payment due the Participant upon the exercise of a Tandem Stock
Appreciation Right shall be made (i) in cash, (ii) in Common Stock (valued with
reference to the Fair Market Value of Stock as of the date of exercise), or
(iii) partly in cash and partly in Common Stock (valued with reference to the
Fair Market Value of Stock as the date of exercise), as set forth by the Tandem
Stock Appreciation Right agreement, and by the Committee, in its sole
discretion. If the payment is to be made in Common Stock, no fractional shares
of Common Stock shall be issued and cash payment shall be made in lieu of
fractional shares. Notwithstanding any provision in this Plan to the contrary,
in the case of an exercise of a Tandem Stock Appreciation Right by a Participant
subject to Section 16(b) of the Exchange Act, such Participant may exercise the
Tandem Stock Appreciation Right only during the period beginning on the third
business day following the date of release to the press of the quarterly or
annual summary of earnings for the Company, and ending on the twelfth business
day following such date.

         Any Shares issuable and deliverable upon the exercise of a Tandem Stock
Appreciation Right shall be fully paid and nonassessable. The Company shall not
be required to issue or deliver any certificate or certificates upon the
complete or partial exercise of a Tandem Stock Appreciation Right prior to
fulfillment of (i) the completion of any registration or other qualification of
such Shares under any Federal or State law or under rulings or regulations of
the Securities and Exchange Commission or of any other governmental regulatory
body the Company may deem necessary or advisable; and (ii) the obtaining of any
approval or other clearance from any Federal or State governmental agency the
Company may deem necessary or advisable.

         No payment shall be required from the Participant upon the exercise of
a Tandem Stock Appreciation Right, except that any amount necessary to satisfy
applicable Federal, state or local tax requirements shall be withheld or paid
prior to or concurrently with delivery of cash or Shares.

         Upon the exercise of a Tandem Stock Appreciation Right, the number of
Shares subject to exercise under the related Stock Option shall automatically be
reduced by the number of Shares represented by the Stock Option or portion
thereof surrendered. Shares subject to Stock Options or portions thereof
surrendered upon the exercise of a Tandem Stock Appreciation Right shall not be
available for subsequent awards under this Plan.

         Notwithstanding any contrary provision in this Plan, a Tandem Stock
Appreciation Right shall be issued in connection with an Incentive Stock Option
only if the Tandem Stock Appreciation Right meets the following requirements:

         (a)      The Tandem Stock Appreciation Right will expire no later than
the expiration of the underlying Incentive Stock Option;

<PAGE>

GREATER COMMUNITY BANCORP                                                 PAGE 9
2001 EMPLOYEE STOCK OPTION PLAN

         (b)      The Tandem Stock Appreciation Right provides for a payment to
the Participant not in excess of the difference between the exercise price of
the underlying Incentive Stock Option and the Fair Market Value of Stock subject
to the underlying Incentive Stock Option at the time the Tandem Stock
Appreciation Right is exercised;

         (c)      The Tandem Stock Appreciation Right is transferable only when
the underlying Incentive Stock Option is transferable, and under the same
conditions;

         (d)      The Tandem Stock Appreciation Right may be exercised only when
the underlying Stock Option is eligible to be exercised; and

         (e)      The Tandem Stock Appreciation Right may be exercised only when
the Fair Market Value of Stock subject to the Incentive Stock Option exceeds the
exercise price of the Incentive Stock Option.

           ARTICLE IX. EXERCISE OF NON-TANDEM STOCK APPRECIATION RIGHT

         Each Non-Tandem Stock Appreciation Right, or any exercisable portion
thereof, may only be exercised by delivery to the Secretary or the Secretary's
office of (i) notice in writing signed by the Participant (or other person then
entitled to exercise such Non-Tandem Stock Appreciation Right) that such
Non-Tandem Stock Appreciation Right, or a specified portion thereof, is being
exercised; (ii) such representations and documents as are necessary or advisable
to effect compliance with all applicable provisions of Federal or State
securities laws or regulations; (iii) in the event the Non-Tandem Stock
Appreciation Right or portion thereof shall be exercised pursuant to Section 6.3
or 6.4 by any person or persons other than the Participant, appropriate proof of
the right of such person or persons to exercise the Non-Tandem Stock
Appreciation Right or portion thereof; and (iv) full payment to the Company of
all amounts required by Federal or State law to be withhold upon exercise of the
Stock Appreciation Right (as specified in Section 7.3).

         On exercise of a Non-Tandem Stock Appreciation Right, the Participant
shall receive, subject to the rules and regulations as from time to time may be
established by the Committee, a payment having an aggregate value equal to (A)
the excess of (i) the Fair Market Value of Stock on the exercise date over (ii)
the Fair Market Value of Stock on the date of grant, times (B) the number of
Shares that are subject to the Non-Tandem Stock Appreciation Right being
exercised.

         The payment due the Participant upon the exercise of a Non- Tandem
Stock Appreciation Right shall be made (i) in cash, (ii) in Common Stock (valued
with reference to the Fair Market Value of Stock as of the date of exercise), or
(iii) partly in cash and partly in Common Stock (valued with reference to the
Fair Market Value of Stock as the date of exercise), as set forth by the
Non-Tandem Stock Appreciation Right agreement and by the Committee in its sole
discretion. If the payment is to be made in Common Stock, no fractional shares
of Common Stock shall be issued and cash payment shall be made in lieu of
fractional shares. Notwithstanding any contrary provision in this Plan, in the
case of an exercise of a Non-Tandem Stock Appreciation Right by a Participant
who is subject to Section 16(b) of the Exchange Act, such Participant may
exercise the Non-Tandem Stock Appreciation Right only during the period
beginning on the third business day following the date of release to the press
of the quarterly or annual summary of earnings for the Company, and ending on
the twelfth business day following such date.

         Any Shares issuable and deliverable upon the exercise of a Non-Tandem
Stock Appreciation Right shall be fully paid and nonassessable. The Company
shall not be required to issue or deliver any certificate or certificates upon
the complete or partial exercise of a Non-Tandem Stock Appreciation Right prior
to fulfillment of (i) the completion of any registration or other qualification
of such Shares under any Federal or State law or under rulings or regulations of
the Securities and Exchange Commission or of any other governmental regulatory
body that the Company may deem necessary or advisable; and (ii) the obtaining of
any approval or other clearance from any Federal or State governmental agency
the Company may deem necessary or advisable.

         No payment shall be required from the Participant upon the exercise of
a Non-Tandem Stock Appreciation Right, except that any amount necessary to
satisfy applicable Federal, state or local tax requirements shall be withheld or
paid prior to or concurrently with delivery of cash or Shares.

<PAGE>

GREATER COMMUNITY BANCORP                                                PAGE 10
2001 EMPLOYEE STOCK OPTION PLAN

                ARTICLE X. ADJUSTMENT FOR RECAPITALIZATION, ETC.

         The aggregate number of Shares that may be purchased under the Plan
pursuant to Stock Options or issued pursuant to Stock Appreciation Rights, the
number of Shares covered by each outstanding Stock Option and Stock Appreciation
Right, and the exercise price of each Stock Option and the Fair Market Value of
Stock on the date of grant of a Non-Tandem Stock Appreciation Right shall be
appropriately adjusted for any increase or decrease in the number of outstanding
Shares resulting from a stock split or other subdivision or consolidation of
Shares or for other capital adjustments or payments of stock dividends or
distributions, other increases or decreases in the outstanding Shares effected
without receipt of consideration by the Company, or reorganization, merger or
consolidation, or other similar change affecting the Shares.

         Such adjustment to a Stock Option or Stock Appreciation Right shall be
made without a change to the total exercise price applicable to the unexercised
portion of the Stock Option or total value applicable to the unexercised portion
of a Stock Appreciation Right (except for any change in the aggregate price
resulting from rounding-off of Share quantities or prices). Any such adjustment
made by the Committee shall be final and binding upon all Participants, the
Company, their representatives, and all other interested persons. No fractional
Shares shall be issued as a result of such adjustment.

         In the event of a transaction involving (i) the liquidation or
dissolution of the Company, (ii) a merger or consolidation in which the Company
is not the surviving corporation or (iii) the sale or disposition of all or
substantially all of the Company's assets, provision shall be made in connection
with such transaction for the assumption of Stock Options and/or Stock
Appreciation Rights theretofore granted under the Plan, or the substitution for
such Stock Options and/or Stock Appreciation Rights of new Stock Options and/or
Stock Appreciation Rights of the successor corporation, with appropriate
adjustment as to the number and kind of Shares and the purchase price for Shares
thereunder, or, in the Committee's discretion, the Plan and the Stock Options
and/or Stock Appreciation Rights issued hereunder shall terminate on the
effective date of such transaction if appropriate provision is made for payment
to the Participant of an amount in cash equal to the fair market value of a
Share multiplied by the number of Shares subject to the Stock Options or Stock
Appreciation Rights (to the extent such Stock Options or Stock Appreciation
Rights have not been exercised) less the exercise price for such Stock Options
(to the extent such Stock Options have not been exercised) or the Fair Market
Value of the Stock on the date of grant of such Stock Appreciation Rights (to
the extent such Stock Appreciation Rights have not been exercised); provided,
however, that in no event shall the Committee take any action or make any
determination under this Article X that would prevent a transaction described in
clause (ii) or (iii) above from being treated as a pooling of interests under
generally accepted accounting principles, if applicable to the transaction.

          ARTICLE XI. GOVERNMENT REGULATIONS AND REGISTRATION OF SHARES

         The Plan, and the grant and exercise of Stock Options and/or Stock
Appreciation Rights thereunder, and the Company's obligations to sell and
deliver Shares and to make payments under such Stock Options and/or Stock
Appreciation Rights, shall be subject to all applicable Federal and State laws,
rules and regulations and to such approvals by any regulatory or governmental
agency as may be required.

         Each Stock Option and/or Stock Appreciation Right is subject to the
requirement that if, at any time, the Committee determines, in its absolute
discretion, that the listing, registration or qualification of Shares issuable
pursuant to the Plan is required by any securities exchange, The Nasdaq Stock
Market or any similar trading market or exchange, or under any State or Federal
law, or the consent or approval of any governmental regulatory body is necessary
or desirable as a condition of, or in connection with, the issuance of Shares,
no Shares shall be issued, in whole or in part, unless such listing,
registration, qualification, consent or approval has been effected or obtained,
free of any conditions not acceptable to the Committee. The Company shall not be
deemed, by reason of the granting of any Stock Option and/or Stock Appreciation
Right, to have any obligation to register the Shares subject to such Stock
Option and/or Stock Appreciation Right under the Securities Act or to maintain
in effect any registration of such Shares that may be made at any time under the
Securities Act.

         Unless a registration statement under the Securities Act and the
applicable rules and regulations thereunder is then in effect with respect to
Shares issued upon exercise of any Stock Option and/or Stock Appreciation Right
(which registration shall not be required), the Company shall require that the
offer and sale of such Shares be exempt from the registration provisions of said
Act. In furtherance of such exemption, the Company may require, as a condition

<PAGE>

GREATER COMMUNITY BANCORP                                                PAGE 11
2001 EMPLOYEE STOCK OPTION PLAN

precedent to the exercise of any Stock Option and/or Stock Appreciation Right,
that the person exercising the Stock Option and/or Stock Appreciation Right give
to the Company written representation and undertaking, satisfactory in form and
substance to the Company, that such person is acquiring the Shares for his own
account for investment and not with a view to the distribution or resale thereof
and otherwise establish to the Company's satisfaction that the offer or sale of
the Shares issuable upon exercise of the Stock Option and/or Stock Appreciation
Right will not constitute or result in any breach or violation of the Securities
Act or any similar State act or statute or any rules or regulations thereunder.
In the event a Registration Statement under the Securities Act is not then in
effect with respect to the Shares issued upon exercise of a Stock Option and/or
Stock Appreciation Right, the Company shall place upon any stock certificate an
appropriate legend referring to the restrictions on disposition under the
Securities Act.

         The Company is relieved from any liability for the nonissuance or
nontransfer or any delay in issuance or transfer of any Shares subject to Stock
Options and/or Stock Appreciation Rights under the Plan resulting from the
Company's inability to obtain, or in any delay in obtaining, from any regulatory
body having jurisdiction, all requisite authority to issue or transfer Shares
upon exercise of the Stock Options and/or Stock Appreciation Rights under the
Plan if counsel for the Company deems such authority necessary for lawful
issuance or transfer of any such Shares. Appropriate legends may be placed on
the stock certificates evidencing Shares issued upon exercise of Stock Options
and/or Stock Appreciation Rights to reflect such transfer restrictions.

                          ARTICLE XII. OTHER PROVISIONS

         The validity, interpretation and administration of the Plan and any
rules, regulations, determinations or decisions made thereunder, and the rights
of any and all persons having or claiming to have any interest therein or
thereunder, shall be determined exclusively in accordance with the laws of the
State of New Jersey.

         As used herein, the masculine gender shall include the feminine gender.

         The headings in the Plan are for reference purposes only and shall not
affect the meaning or interpretation of the Plan.

         All notices or other communications made or given pursuant to this Plan
shall be in writing and shall be sufficiently made or given if hand-delivered or
mailed by certified mail, addressed to any Participant at the address contained
in the records of the Company or to the Company at its principal office.

         The proceeds received from the sale of Shares pursuant to the Plan
shall be used for general corporate purposes.

         Nothing in the Plan or in any Stock Option and/or Stock Appreciation
Right granted hereunder shall confer on any Participant or eligible Employee any
right to continue in the employ of the Company or any of its Subsidiaries, or to
interfere in any way with the right of the Company or any of its Subsidiaries to
terminate such Participant's or Employee's employment at any time.

         The Plan is intended to comply with Rule 16b-3 promulgated under the
Exchange Act and the Committee shall interpret and administer the provisions of
the Plan or any Stock Option and/or Stock Appreciation Right in a manner
consistent therewith. Any provisions inconsistent with such Rule shall be
inoperative and shall not affect the validity of the Plan.

         All expenses and costs incurred in connection with the operation of the
Plan shall be borne by the Company.

         The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Affiliates, or any of them. Nothing in the
Plan shall be construed to limit the right of any Affiliate (i) to establish,
alter or terminate any other forms of incentives, benefits or compensation for
Employees, including, without limitation, conditioning the right to receive
other incentives, benefits or compensation on an Employee's not participating in
the Plan; or (ii) to grant or assume options otherwise than under the Plan in
connection with any proper corporate purpose, including, without limitation, the
grant or assumption of stock options in connection with the acquisition by
purchase, lease, merger, consolidation or otherwise, of the business, stock, or
assets of any corporation, firm or association.

<PAGE>

GREATER COMMUNITY BANCORP                                                PAGE 12
2001 EMPLOYEE STOCK OPTION PLAN

         If the Committee or Subcommittee shall find that any person to whom any
benefit is due or payable under the Plan is unable to care for his affairs
because of illness or accident, or is a minor, or has died, then any payment due
to such person or his estate (unless a prior claim therefor has been made by a
duly appointed legal representative), may, if the Committee or Subcommittee so
directs the Company, be paid to his spouse, child, relative, an institution
maintaining or having custody of such person, or any other person deemed by the
Committee to be a proper recipient on behalf of such person otherwise entitled
to payment. Any such payment shall be a complete discharge of the liability of
the Committee and the Company therefor.

                      ARTICLE XIII. EFFECTIVE DATE OF PLAN

         The Plan is effective as of the earlier of its date of adoption by the
Board or its approval by the Company's stockholders in accordance with
applicable State and federal law.

                ARTICLE XIV. AMENDMENT OR DISCONTINUANCE OF PLAN

         The Board may, without the consent of the Company's stockholders or
Participants under the Plan, at any time terminate the Plan entirely, and at any
time or from time to time amend or modify the Plan, provided that no such action
shall adversely affect Stock Options and/or Stock Appreciation Rights
theretofore granted hereunder without the Participant's consent, and provided
further that no such action by the Board, without approval of the stockholders,
may (i) materially increase the total number of Shares that may be purchased or
acquired pursuant to Stock Options and/or Stock Appreciation Rights granted
under the Plan, either in the aggregate or for any Participant or eligible
Employee, except as contemplated in Article X; (ii) expand the class of
employees eligible to receive Stock Options and/or Stock Appreciation Rights
under the Plan; (iii) decrease the minimum Stock Option exercise price; (iv)
extend the maximum term of Stock Options and/or Stock Appreciation Rights
granted hereunder; or (v) take any other action requiring stockholder approval
under Rule 16b-3 under the Exchange Act. No amendment or modification may become
effective if it would cause the Plan to fail to meet any applicable requirements
of Rule 16b-3 under the Exchange Act.

                        ARTICLE XV. STOCKHOLDER APPROVAL

         Anything in the Plan to the contrary notwithstanding, the grant of
Stock Options and/or Stock Appreciation Rights hereunder shall be of no force or
effect, and no Stock Option and/or Stock Appreciation Right granted hereunder
shall vest or become exercisable in any respect, unless and until the Plan is
approved by the affirmative vote of the holders of a majority of the Shares
present, in person or by proxy, and entitled to vote at a meeting of the
stockholders of the Company duly held in accordance with the laws of New Jersey.

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