Document:

STOCK PURCHASE AGREEMENT

      This Stock Purchase  Agreement (this  "Agreement") is dated as of June 30,
2005,  by  and  among  Center  Bancorp,  Inc.,  a New  Jersey  corporation  (the
"Company"), and the purchasers identified on the signature pages hereto (each, a
"Purchaser" and collectively, the "Purchasers").

      WHEREAS,  subject to the terms and  conditions set forth in this Agreement
and pursuant to Section 4(2) of the  Securities  Act (as defined below) and Rule
506  promulgated  thereunder,  the  Company  desires  to  issue  and sell to the
Purchasers,  and the Purchasers,  severally and not jointly,  desire to purchase
from the Company  certain  shares of Common Stock of the Company,  as more fully
described in this Agreement.

      NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement,  and for other  good and  valuable  consideration,  the  receipt  and
adequacy of which are hereby acknowledged,  the Company and the Purchasers agree
as follows:

                                   ARTICLE I.
                                  DEFINITIONS

      1.1  Definitions.  In  addition  to the terms  defined  elsewhere  in this
Agreement,  for all purposes of this  Agreement,  the following terms shall have
the meanings indicated in this Section 1.1:

            "Action" means any action, suit, governmental, administrative agency
or regulatory  authority inquiry,  notice of violation,  proceeding  (including,
without   limitation,   any  partial   proceeding   such  as  a  deposition)  or
governmental,  administrative  agency or  regulatory  investigation  pending  or
threatened in writing against or affecting the Company, any Subsidiary or any of
their respective  properties,  including,  without limitation,  before or by any
court, arbitrator,  governmental or administrative agency,  regulatory authority
(federal,  state,  county,  local or foreign),  stock market,  stock exchange or
trading facility.

            "Affiliate"  means any Person that,  directly or indirectly  through
one or more  intermediaries,  controls or is  controlled  by or is under  common
control with a Person, as such terms are used in and construed under Rule 144.

            "Business  Day"  means any day except  Saturday,  Sunday and any day
which shall be a federal legal holiday or a day on which banking institutions in
the State of New York are  authorized  or required by law or other  governmental
action to close.

            "Closing"  means the closing of the  purchase and sale of the Shares
pursuant to Article II.
<PAGE>

            "Closing  Date"  means  the date  hereof or such  other  date as the
parties may agree.

            "Commission" means the Securities and Exchange Commission.

            "Common  Stock" means the common stock of the Company,  no par value
per share,  and any  securities  into which such common  stock may  hereafter be
reclassified.

            "Confidential  Memorandum" means the Confidential Memorandum,  dated
June 13,  2005  related  to the  Company  and the  Shares  being  offered  to be
purchased  as  contemplated  by this  Agreement,  in the  form  provided  to the
Purchasers prior to the date hereof.

            "Disclosure Materials" has the meaning set forth in Section 3.1(h).

            "Effective  Date"  means  the  date  that the  initial  Registration
Statement required by Section 2(a) of the Registration Rights Agreement is first
declared effective by the Commission.

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

            "Investment  Amount"  means,  with  respect to each  Purchaser,  the
investment amount indicated below such Purchaser's name on the signature page of
this Agreement.

            "Lien" means any lien, charge, encumbrance, security interest, right
of first refusal or other restrictions of any kind.

            "Person"  means an individual or  corporation,  partnership,  trust,
incorporated or  unincorporated  association,  joint venture,  limited liability
company,  joint stock company,  government (or an agency or subdivision thereof)
or other entity of any kind.

            "Placement Agent" means Cohen Bros. Company, LLC.

            "Registration  Statement" means a registration statement meeting the
requirements  set forth in the  Registration  Rights  Agreement and covering the
resale by the  Purchasers  of the  Registrable  Securities  (as  defined  in the
Registration Rights Agreement).

            "Registration   Rights  Agreement"  means  the  Registration  Rights
Agreement,  dated as of the date of this  Agreement,  among the  Company and the
Purchasers, in the form of Exhibit A.

            "Rule 144" means Rule 144 promulgated by the Commission  pursuant to
the  Securities  Act,  as such Rule may be  amended  from  time to time,  or any
similar  rule  or  regulation   hereafter   adopted  by  the  Commission  having
substantially the same effect as such Rule.

            "Securities Act" means the Securities Act of 1933, as amended.
<PAGE>

            "Shares"  means the shares of Common Stock issued to the  Purchasers
at the Closing, at a purchase price of $10.50 per share (the "Purchase Price Per
Share").

            "Subsidiary"  means (i) any corporation,  limited liability company,
partnership.  statutory  trust or other  organization,  whether  incorporated or
unincorporated,  which is consolidated with the Company for financial  reporting
purposes,  including,  without  limitation,  Company Bank (as defined below) and
(ii) the Trusts (as defined below).

            "Trading Day" means (i) a day on which the Common Stock is traded on
a Trading Market, or (ii) if the Common Stock is not listed on a Trading Market,
a day on which the Common  Stock is traded in the  over-the-counter  market,  as
reported by the OTC Bulletin  Board,  or (iii) if the Common Stock is not quoted
on the OTC  Bulletin  Board,  a day on which the  Common  Stock is quoted in the
over-the-counter  market  as  reported  by  Pink  Sheets  LLC  (or  any  similar
organization  or  agency  succeeding  to its  functions  of  reporting  prices);
provided, that in the event that the Common Stock is not listed or quoted as set
forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

            "Trading Market" means whichever of the New York Stock Exchange, the
American  Stock  Exchange,  the NASDAQ  National  Market or the NASDAQ  SmallCap
Market, on which the Common Stock is listed or quoted for trading on the date in
question.

            "Transaction  Documents"  means this Agreement and the  Registration
Rights  Agreement,  the  schedules  hereto and the  certificate  to be delivered
pursuant to Section 2.2(a)(iii).

                                  ARTICLE II.
                               PURCHASE AND SALE

      2.1  Closing.  Subject  to the  terms  and  conditions  set  forth in this
Agreement,  at the Closing the Company  shall issue and sell to each  Purchaser,
and each Purchaser shall, severally and not jointly,  purchase from the Company,
the Shares  representing such Purchaser's  Investment Amount, up to an aggregate
of  1,904,761  Shares for all  Purchasers.  The Closing  shall take place at the
offices of Morgan,  Lewis & Bockius LLP, 1701 Market  Street,  Philadelphia,  PA
19103 on the Closing  Date or at such other  location or time as the parties may
agree.

      2.2 Closing Deliveries.  (a) At the Closing,  the Company shall deliver or
cause to be delivered to each Purchaser the following:

                  (i) a certificate  evidencing a number of Shares equal to such
Purchaser's   Investment  Amount  divided  by  the  Purchase  Price  Per  Share,
registered in the name of such Purchaser;

                  (ii) the legal  opinion of Lowenstein  Sandler PC,  counsel to
the  Company,  in the form of Exhibit B,  addressed  to the  Purchasers  and the
Placement Agent;
<PAGE>

                  (iii) a certificate from a duly authorized  officer certifying
on behalf of the Company  that each of the  conditions  set forth in Section 5.1
has been satisfied; and

                  (iv) the  Registration  Rights  Agreement duly executed by the
Company.

            (b) At the Closing (or with respect to such  Purchaser's  Investment
Amount, at such Purchaser's option, prior to the Closing),  each Purchaser shall
deliver or cause to be delivered to the Company the following:

                  (i)  such  Purchaser's  Investment  Amount  in  United  States
dollars  and in  immediately  available  funds,  by wire  transfer to the escrow
account for such purpose identified on Schedule 2.2(b)(i); and

                  (ii) the  Registration  Rights Agreement duly executed by such
Purchaser.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

      3.1  Representations  and  Warranties of the Company.  The Company  hereby
makes the following  representations and warranties to each Purchaser and to the
Placement Agent:

            (a) Subsidiaries. The Company has no direct or indirect Subsidiaries
other  than the  Company  Bank,  the  Trusts  (each as  defined  below)  and the
corporations  identified  on  Schedule  3.1(a).  The Company  owns,  directly or
indirectly,  all of the  capital  stock of the Company  Bank and,  except as set
forth on Schedule 3.1(a),  all of the trust  securities of the Trusts,  free and
clear of any and all Liens, and all the issued and outstanding shares of capital
stock of the Company Bank and all of the trust  securities of the Trusts and all
of the  securities  of each other  Subsidiary  are validly  issued and are fully
paid,  non-assessable  and free of any  preemptive and similar rights granted by
the  Company,  the  Company  Bank,  the Trusts or such other  Subsidiaries.  The
rights, preferences,  privileges and restrictions of the trust securities of the
Trust I (as defined  below) are as set forth in Exhibit  10.14 to the  Company's
Annual  Report on Form 10-K for the fiscal year ended  December  31,  2001.  The
rights, preferences,  privileges and restrictions of the trust securities of the
Trust II (as defined  below) are as set forth in Exhibit  10.17 to the Company's
Annual Report on Form 10-K for the fiscal year ended  December 31, 2003.  Except
as set forth on Schedule 3.1(a), each Subsidiary is "controlled by" the Company,
as the term  "controlled  by" is used in and construed under Rule 144, and there
are no  agreements  or  understandings  in  effect  or, to the  Company  or such
Subsidiary's knowledge,  contemplated, that would cause any Subsidiary not to be
"controlled by" the Company.

            (b)  Organization  and  Qualification.  The Company is a corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
State of New Jersey.  Union Center  National Bank, a wholly-owned  subsidiary of
the Company ("Company Bank"), is a national bank validly existing and continuing
to hold a valid  certificate  from the Office of the Comptroller of the Currency
to transact the business of banking under the laws of the United States.  On May
20, 2005, Red Oak Bank, a commercial  bank chartered under the laws of the State
of New Jersey ("Red Oak") merged with and into Company Bank under the charter of
Company Bank in  accordance  with the National  Bank Act and the New Jersey Bank
Act of 1948, as amended,  with Company Bank as the surviving  bank of the merger
("Merger").  By  virtue  of the  Merger,  the  separate  existence  of  Red  Oak
terminated.  The  effects  of the  Merger  are as set forth in Article I of that
certain  Amended  and  Restated  Agreement  and Plan of  Merger by and among the
Company,  Company Bank and Red Oak,  dated as of March 3, 2005.  All  references
herein to Company Bank include, without limitation, Company Bank as successor to
Red Oak pursuant to the Merger.  Center  Bancorp  Statutory  Trust I (the "Trust
I"), a financing subsidiary of the Company, is a statutory trust duly organized,
validly  existing and in good  standing (to the extent such concept or a similar
concept,  such as "on record  with," is  recognized  with respect to such trust)
under the Connecticut  Statutory  Trust Act.  Center Bancorp  Statutory Trust II
(the  "Trust II" and  together  with the Trust I, the  "Trusts")),  a  financing
subsidiary of the Company, is a statutory trust duly organized, validly existing
and in good  standing  (to the  extent  such  concept  or a similar  concept  is
recognized  with respect to such trust) under the Delaware  Statutory Trust Act.
Each  other  Subsidiary  is duly  incorporated  (or,  in the  case of a  limited
liability company, duly organized),  validly existing and in good standing under
the laws of the jurisdiction in which it was organized.  Each of the Company and
each  Subsidiary  has  the  requisite  power  and  authority  to own and use its
properties  and  assets and to carry on its  business  as  currently  conducted.
Neither the Company nor any  Subsidiary is in violation of any of the provisions
of its  respective  certificate  or articles of  incorporation,  bylaws or other
organizational,  trust  or  charter  documents.  Each of the  Company  and  each
Subsidiary  is duly  qualified to conduct  business and is in good standing as a
foreign  corporation,  trust or other entity in each  jurisdiction  in which the
nature  of  the  business   conducted  or  property   owned  by  it  makes  such
qualification necessary,  except where the failure to be so qualified or in good
standing, as the case may be, could not, individually or in the aggregate,  have
or  reasonably  be expected to result in (i) an adverse  effect on the legality,
validity or  enforceability  of any  Transaction  Document,  (ii) a material and
adverse  effect on the results of  operations,  assets,  business  or  condition
(financial or otherwise) of the Company and the Subsidiaries,  taken as a whole,
or (iii) an adverse  impairment to the Company's  ability to perform on a timely
basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a "Material Adverse Effect").
<PAGE>

      (c) Authorization;  Enforcement.  The Company has the requisite  corporate
power  and  authority  to  enter  into  and  to  consummate   the   transactions
contemplated by each of the Transaction Documents and otherwise to carry out its
obligations  thereunder.  The execution and delivery of each of the  Transaction
Documents  by  the  Company  and  the  consummation  by it of  the  transactions
contemplated thereby have been duly authorized by all necessary corporate action
on the part of the  Company and no further  corporate  action is required by the
Company in connection  therewith.  Each  Transaction  Document has been (or upon
delivery  will have been) duly  executed by the Company and,  when  delivered in
accordance  with the  terms  hereof,  will  constitute  the  valid  and  binding
obligation of the Company enforceable against the Company in accordance with its
terms, except as rights to indemnity and contribution may be limited by state or
federal securities laws or the public policy underlying such laws, and except as
enforceability   may  be   limited   by   applicable   bankruptcy,   insolvency,
reorganization, moratorium or similar laws affecting creditors' rights generally
and except as  enforceability  may be subject  to general  principles  of equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or at law).

      (d)  No  Conflicts.  The  execution,   delivery  and  performance  of  the
Transaction  Documents by the Company and the consummation by the Company of the
transactions  contemplated  thereby  do not and  will not (i)  conflict  with or
violate any  provision  of the  Company's  or any  Subsidiary's  certificate  or
articles  of  incorporation,  bylaws or other  organizational,  trust or charter
documents, or (ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination,  amendment,  acceleration  or  cancellation  (with or
without notice, lapse of time or both) of, any agreement,  credit facility, debt
or other  instrument  (evidencing a Company or Subsidiary  debt or otherwise) or
other  understanding  to which the  Company or any  Subsidiary  is a party or by
which  any  property  or  asset of the  Company  or any  Subsidiary  is bound or
affected,  or (iii) result in a violation of any law, rule,  regulation,  order,
judgment,  injunction,  decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary  is subject  (including,  without
limitation,  federal and state securities laws and regulations), or by which any
property or asset of the Company or a Subsidiary is bound or affected; except in
the case of each of clauses (ii) and (iii),  such as could not,  individually or
in the aggregate, have or reasonably be expected to result in a Material Adverse
Effect.
<PAGE>

      (e)  Filings,  Consents  and  Approvals.   Neither  the  Company  nor  any
Subsidiary is required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration  with, any court or other
federal,  state,  local or other  governmental  authority  or  other  Person  in
connection  with the execution,  delivery and  performance by the Company of the
Transaction Documents,  other than: (i) the filing with the Commission of a Form
D and one or more Registration Statements in accordance with the requirements of
the Registration Rights Agreement, (ii) the filings required by state securities
laws,  (iii) the filings  required in accordance  with Sections 4.4 and 4.7, and
(iv) those that have been made or obtained prior to the date of this Agreement.

      (f) Issuance of the Shares. The Shares have been duly authorized and, when
issued  and  paid for in  accordance  with the  Transaction  Documents,  will be
validly issued, fully paid and nonassessable, free and clear of all Liens.

      (g)  Capitalization.  The  number  of shares  and type of all  authorized,
issued and outstanding  capital stock of the Company as of the date hereof is as
described in the Company's  Quarterly  Report on Form 10-Q for the Quarter ended
March 31, 2005,  as  supplemented  by Schedule  3.1(g)(i).  No securities of the
Company are entitled to  preemptive or similar  rights.  Neither the Company nor
any Subsidiary has granted to any Person any right of first refusal,  preemptive
right,  right of  participation,  or any  similar  right to  participate  in the
transactions  contemplated by the Transaction Documents.  Except as disclosed in
Schedule 3.1(g)(ii), there are no outstanding options, warrants, scrip rights to
subscribe to, calls or commitments of any character  whatsoever  relating to, or
securities,  rights or  obligations  convertible  into or  exchangeable  for, or
giving any Person any right to  subscribe  for or acquire,  any shares of Common
Stock, or contracts,  commitments,  understandings  or arrangements by which the
Company or any Subsidiary is or may become bound to issue  additional  shares of
Common Stock, or securities or rights convertible or exchangeable into shares of
Common Stock. The issue and sale of the Shares will not, immediately or with the
passage of time,  obligate  the Company to issue shares of Common Stock or other
securities  to any Person (other than the  Purchasers)  and will not result in a
right of any holder of Company  securities to adjust the  exercise,  conversion,
exchange or reset price under such securities.
<PAGE>

      (h) SEC Reports;  Financial Statements. The Company has filed all reports,
proxy  statements,  documents and other  information  required to be filed by it
under the Securities Act and the Exchange Act,  including,  without  limitation,
pursuant to Section 13(a) or 15(d) thereof,  for the twelve months preceding the
date hereof (the foregoing materials including, without limitation, all exhibits
and schedules thereto,  and all documents and other information  incorporated by
reference therein,  being  collectively  referred to herein as the "SEC Reports"
and,  together  with  the  Schedules  to this  Agreement  and  the  Confidential
Memorandum,  the "Disclosure Materials") on a timely basis or has timely filed a
valid extension of such time of filing on Form 12b-25 and has filed any such SEC
Reports prior to the expiration of any such  extension.  As of their  respective
dates,  the SEC Reports  complied in all material  respects with the  applicable
requirements  of the  Securities  Act and the  Exchange  Act and the  rules  and
regulations  of the  Commission  promulgated  thereunder,  and  none  of the SEC
Reports,  when  filed,  contained  any untrue  statement  of a material  fact or
omitted to state a material fact  required to be stated  therein or necessary in
order to make the statements  therein, in light of the circumstances under which
they were made, not misleading.  The  consolidated  financial  statements of the
Company  included  in the SEC  Reports  comply  in all  material  respects  with
applicable  accounting  requirements  and  the  rules  and  regulations  of  the
Commission  with  respect  thereto  as in  effect  at the time of  filing.  Such
consolidated   financial  statements  have  been  prepared  in  accordance  with
generally  accepted  accounting  principles applied on a consistent basis during
the periods  involved  ("GAAP"),  except as may be  otherwise  specified in such
consolidated  financial  statements or the notes thereto,  and fairly present in
all material respects the financial position of the Company and its consolidated
Subsidiaries  as of and for the dates thereof and the results of operations  and
cash  flows  for the  periods  then  ended,  subject,  in the case of  unaudited
statements,  to normal,  immaterial,  year-end audit adjustments or as otherwise
disclosed in the SEC Reports.

      (i) Material  Changes.  Since the date of the latest audited  consolidated
financial  statements  included  within the SEC Reports,  except as specifically
disclosed in the Disclosure Materials,  (i) there has been no event,  occurrence
or  development  that has had or is  reasonably  likely to result in a  Material
Adverse  Effect,  (ii) neither the Company nor any  Subsidiary  has incurred any
material  liabilities  (contingent  or  otherwise)  other  than (A)  liabilities
occurring in the ordinary course of business  consistent with past practice that
could  not  reasonably  be  expected  to have a  Material  Adverse  Effect,  (B)
liabilities  associated  with  the  transactions  contemplated  hereby,  and (C)
liabilities not required to be reflected in the Company's  financial  statements
pursuant  to  GAAP  or  required  to be  disclosed  in  filings  made  with  the
Commission,  (iii) the  Company  has not  altered  its method of  accounting  or
changed its  auditors,  (iv) except for normal  quarterly  cash  dividends,  the
Company has not declared or made any dividend or  distribution  of cash or other
property to its  stockholders  or purchased,  redeemed or made any agreements to
purchase or redeem any shares of its capital stock,  and (v) the Company has not
issued any equity  securities  to any  officer,  director or  Affiliate,  except
pursuant  to existing  Company  stock  option,  dividend  reinvestment  or stock
purchase  plans.  The Company does not have pending  before the  Commission  any
request for confidential treatment of information.
<PAGE>

      (j)  Litigation.  There  is no  Action  which  (i)  adversely  affects  or
challenges the legality,  validity or  enforceability  of any of the Transaction
Documents or the Shares or (ii) except as disclosed in the Disclosure Materials,
could, if there were an unfavorable decision,  individually or in the aggregate,
have or reasonably be expected to result in a Material  Adverse Effect.  Neither
the Company nor any Subsidiary,  nor any director or officer thereof,  is or has
been the subject of any Action  involving a claim of  violation  of or liability
under federal or state  securities  laws or a claim of breach of fiduciary duty.
There has not been, and to the knowledge of the Company, there is not pending or
contemplated,  any investigation by the Commission  involving the Company or any
current or former  director or officer of the Company.  The  Commission  has not
issued  any stop  order or  other  order  suspending  the  effectiveness  of any
registration statement filed by the Company or any Subsidiary under the Exchange
Act or  the  Securities  Act.  (k)  Employment  Matters.  The  Company  and  the
Subsidiaries  are in compliance with all applicable  federal,  state,  local and
foreign laws and  regulations  respecting  employment and employment  practices,
terms and  conditions of employment  and wages and hours except where failure to
be in compliance would not have a Material  Adverse Effect.  Neither the Company
nor any  Subsidiary  is bound by or subject to (and none of the Company's or any
of its  Subsidiaries'  assets  or  properties  are bound by or  subject  to) any
written or oral,  express or implied,  contract,  commitment or arrangement with
any labor union, and, since January 1, 1998, no labor union has requested or, to
the  Company's  knowledge,  has  sought  to  represent  any  of  the  employees,
representatives or agents of the Company or the Subsidiaries. There is no strike
or other  material  labor  dispute  involving  the  Company or the  Subsidiaries
pending, or to the Company's knowledge,  threatened, nor is the Company aware of
any labor organization  activity  involving its or its Subsidiaries'  employees.
The Company is not aware that any current  officer  intends to terminate  his or
her employment with the Company,  nor does the Company have a present  intention
to terminate the employment of any current officer.

      (l)  Compliance.  Neither the Company nor any Subsidiary (i) is in default
under or in violation of (and no event has occurred  that,  with notice or lapse
of time or both,  would  result in a default by the  Company  or any  Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it
is in default under or that it is in violation of, any indenture, loan or credit
agreement  or any other  agreement  or  instrument  to which it is a party or by
which it or any of its  properties  is bound  (whether  or not such  default  or
violation  has been  waived),  (ii) is in  violation  of any order of any court,
arbitrator  or  governmental  body,  or (iii) is or has been in violation of any
statute, rule or regulation of any governmental  authority,  including,  without
limitation,  all  foreign,  federal,  state and local  laws  relating  to taxes,
environmental  protection,  occupational health and safety,  product quality and
safety  and  employment,   labor  matters,  financial,  banking  and  depository
institutions,  internal controls, insurance,  community reinvestment, and gaming
matters,  except in each case as could not,  individually  or in the  aggregate,
have or  reasonably  be expected  to result in a Material  Adverse  Effect.  The
Company is in compliance with the applicable  requirements of the Sarbanes-Oxley
Act of  2002  and  the  rules  and  regulations  thereunder  promulgated  by the
Commission,  except where such  noncompliance  could not have or  reasonably  be
expected to result in a Material Adverse Effect.
<PAGE>

      (m)  Regulatory  Permits.  The  Company and the  Subsidiaries  possess all
certificates,  authorizations  and permits  issued by the  appropriate  federal,
state,  local or foreign  regulatory  authorities  necessary  to  conduct  their
respective businesses as described in the SEC Reports,  except where the failure
to possess such permits would not,  individually  or in the  aggregate,  have or
reasonably  be  expected  to  result in a  Material  Adverse  Effect  ("Material
Permits"), and neither the Company nor any Subsidiary has received any notice of
Actions relating to the revocation or modification of any Material Permit.

      (n)  Title to  Assets.  The  Company  and the  Subsidiaries  have good and
marketable  title in all  personal  property  owned by them that is  material to
their respective  businesses,  in each case free and clear of all Liens,  except
for Liens as do not  materially  affect  the value of such  property  and do not
materially  interfere with the use made and proposed to be made of such property
by the Company and the Subsidiaries. Any real property and facilities held under
lease  by the  Company  and the  Subsidiaries  are  held by  them  under  valid,
subsisting  and, to the  Company's  knowledge,  enforceable  leases of which the
Company  and  the  Subsidiaries   are  in  compliance,   except  as  could  not,
individually or in the aggregate,  have or reasonably be expected to result in a
Material Adverse Effect.

      (o) Patents and Trademarks. The Company and the Subsidiaries have, or have
rights  to  use,  all  patents,  patent  applications,   trademarks,   trademark
applications, service marks, trade names, copyrights, licenses and other similar
rights  that  are  necessary  or  material  for  use in  connection  with  their
respective  businesses  as  described  in the  SEC  Reports  (collectively,  the
"Intellectual  Property  Rights").   Except  as  set  forth  in  the  Disclosure
Materials,  since January 1, 1998,  neither the Company nor any  Subsidiary  has
received a written  notice  that the  Intellectual  Property  Rights used by the
Company or any  Subsidiary  violates or infringes upon the rights of any Person.
Except  as set  forth  in the  Disclosure  Materials,  to the  knowledge  of the
Company,  all such Intellectual  Property Rights are enforceable and there is no
existing  infringement  by another  Person of any of the  Intellectual  Property
Rights  other  than  infringements  which  could  not,  individually  or in  the
aggregate,  have or  reasonably  be  expected  to result in a  Material  Adverse
Effect.

      (p) Insurance. The Company and the Subsidiaries are insured by insurers of
recognized  financial  responsibility  against such losses and risks and in such
amounts as are prudent and customary in the  businesses in which the Company and
the  Subsidiaries  are  engaged.  The Company  does not believe  that it will be
unable to renew  its  existing  insurance  coverage  as and when  such  coverage
expires or to obtain similar  coverage from similar insurers as may be necessary
to continue its business without a material increase in cost.
<PAGE>

      (q) Transactions With Affiliates and Employees. Except as set forth in the
Disclosure Materials or in Schedule 3.1(q), none of the officers or directors of
the Company or any Subsidiary and, to the knowledge of the Company,  none of the
employees  of the  Company  or any  Subsidiary,  is  presently  a  party  to any
transaction  with the  Company or any  Subsidiary  (other  than for  services as
employees,  officers and directors,  other than transactions that meet the terms
and  conditions  set forth in Section  13(k)(2) or (3) of the Exchange  Act, and
other than  transactions  that would not be required to be disclosed  under Item
404 of Regulation S-K were such persons  directors or executive  officers of the
Company),  including,  without  limitation,  any  contract,  agreement  or other
arrangement  providing for the  furnishing  of services to or by,  providing for
rental of real or personal property to or from, or otherwise  requiring payments
to or from any officer,  director or such  employee or, to the  knowledge of the
Company, any entity in which any officer,  director,  or any such employee has a
substantial interest or is an officer, director, trustee or partner.

      (r) Internal  Accounting  Controls;  Disclosure  Controls and  Procedures;
Off-Balance Sheet  Arrangements.  The Company and the Subsidiaries  maintain (A)
effective  internal  control over financial  reporting as defined in Rule 13a-15
under  the  Exchange  Act,  and (B) a system  of  internal  accounting  controls
sufficient to provide reasonable assurance that (i) transactions are executed in
accordance  with   management's   general  or  specific   authorizations,   (ii)
transactions  are  recorded as  necessary  to permit  preparation  of  financial
statements in conformity with generally  accepted  accounting  principles and to
maintain  asset  accountability,  (iii)  access to assets is  permitted  only in
accordance with  management's  general or specific  authorization,  and (iv) the
recorded  accountability  for assets is  compared  with the  existing  assets at
reasonable  intervals  and  appropriate  action  is taken  with  respect  to any
differences.  The Company has established disclosure controls and procedures (as
defined in  Exchange  Act Rules  13a-15(e)  and  15d-15(e))  for the Company and
designed  such  disclosure  controls  and  procedures  to ensure  that  material
information  relating  to  the  Company,  including,   without  limitation,  the
Subsidiaries,  is made known to the  certifying  officers by others within those
entities, particularly during the period in which the Company's Annual Report on
Form  10-K or  Quarterly  Report  on Form  10-Q,  as the case  may be,  is being
prepared.  The Company's certifying officers have evaluated the effectiveness of
the Company's controls and procedures as of the end of the period covered by the
most recently filed Company  periodic  report under the Exchange Act (such date,
the  "Evaluation  Date").  The  Company  presented  in its most  recently  filed
Quarterly  Report on Form 10-Q the conclusions of the certifying  officers about
the  effectiveness  of the  disclosure  controls and  procedures  based on their
evaluations as of the Evaluation  Date.  Since December 31, 2004, there has been
(i) no material weakness  (whether or not remediated) in the Company's  internal
control over financial  reporting (as such term is defined in Exchange Act Rules
13a-15(f) and 15d-15(f));  and (ii) no changes in the Company's internal control
over financial reporting that have materially affected, or are reasonably likely
to materially  affect the Company's  internal control over financial  reporting.
Except  as  disclosed  in the SEC  Reports,  there is no  material  transaction,
arrangement or other  relationship  between the Company and an unconsolidated or
other off-balance sheet entity.
<PAGE>

      (s) Solvency.  Based on the  financial  condition of the Company as of the
Closing (and assuming that the Closing shall have  occurred),  (i) the Company's
fair saleable value of its assets exceeds the amount that will be required to be
paid on or in  respect of the  Company's  existing  debts and other  liabilities
(including,  without limitation,  known contingent  liabilities) as they mature;
(ii) the Company's assets do not constitute  unreasonably small capital to carry
on its  business as now  conducted  and as proposed to be  conducted  including,
without limitation, its capital needs taking into account the particular capital
requirements  of the business  conducted by the Company,  and projected  capital
requirements and capital  availability  thereof; and (iii) the current cash flow
of the Company, together with the proceeds the Company would receive, were it to
liquidate all of its assets,  after taking into account all anticipated  uses of
the cash,  would be  sufficient  to pay all amounts on or in respect of its debt
when such amounts are required to be paid.  The Company does not intend to incur
debts  beyond its ability to pay such debts as they mature  (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).

      (t)  Certain  Fees.  Except for  dealings  with the  Placement  Agent,  no
brokerage or finder's fees or commissions  are or will be payable by the Company
to any  broker,  financial  advisor  or  consultant,  finder,  placement  agent,
investment  banker,  bank or  other  Person  with  respect  to the  transactions
contemplated  by this  Agreement.  The Purchasers  shall have no obligation with
respect  to any fees or with  respect  to any  claims  (other  than such fees or
commissions owed by a Purchaser pursuant to written agreements  executed by such
Purchaser,  which fees or commissions  shall be the sole  responsibility of such
Purchaser) made by or on behalf of other Persons for fees of a type contemplated
in this Section that may be due in connection with the transactions contemplated
by this Agreement.

      (u) Certain Registration Matters. Assuming the accuracy of the Purchasers'
representations   and  warranties  set  forth  in  Section  3.2(b)  to  (e),  no
registration  under the Securities Act is required for the offer and sale of the
Shares by the Company to the Purchasers  under the  Transaction  Documents.  The
Company is eligible to register the resale of its Common Stock for resale by the
Purchasers  under Form S-3  promulgated  under the Securities Act. No Person has
any rights (including, without limitation,  "piggy-back" registration rights) to
have any securities of the Company  registered  with the Commission or any other
governmental authority.

      (v) Listing  and  Maintenance  Requirements.  Except as  specified  in the
Disclosure  Materials  or in  Schedule  3.1(v),  the Company has not, in the two
years  preceding  the date hereof,  received  notice from any Trading  Market on
which the Common Stock is or has been listed or quoted for trading to the effect
that  the  Company  is  not  in  compliance  with  the  listing  or  maintenance
requirements  thereof.  Except as specified  in the  Disclosure  Materials,  the
Company  is,  and has no reason to believe  that it will not in the  foreseeable
future   continue  to  be,  in  compliance  with  the  listing  and  maintenance
requirements  for continued  listing of the Common Stock on the NASDAQ  National
Market. The issuance and sale of the Shares under the Transaction Documents does
not  contravene  the rules and  regulations  of the Trading  Market on which the
Common Stock is currently listed or quoted,  and no approval of the stockholders
of the Company  thereunder  is required  for the Company to issue and deliver to
the Purchasers the Shares pursuant to this Agreement.
<PAGE>

      (w) Investment Company. The Company is not, and is not an Affiliate of, an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

      (x)  Application  of Takeover  Protections.  Provided that  following each
Purchaser's  purchase of Shares  pursuant to this  Agreement no Purchaser is the
"beneficial  owner"  (as such term is  defined  in the New  Jersey  Shareholders
Protection Act,  N.J.S.A.  14A:10A-1 et seq.) of 10% or more of the voting power
of the outstanding  shares of the Company's  Common Stock, the Company has taken
all necessary action,  if any, in order to render  inapplicable to such purchase
any control share  acquisition,  business  combination,  poison pill (including,
without limitation,  any distribution under a rights agreement) or other similar
anti-takeover  provision under the Company's  Certificate of  Incorporation  (or
similar charter  documents) or the laws of its state of incorporation that is or
could reasonably be expected to become  applicable to the Purchasers as a result
of the Purchasers  and the Company  fulfilling  their  obligations or exercising
their rights under the Transaction Documents, including, without limitation, the
Company's issuance of the Shares and the Purchasers' ownership of the Shares.

      (y) No Additional  Agreements.  The Company does not have any agreement or
understanding  with any Purchaser with respect to the transactions  contemplated
by the Transaction Documents, other than as specified in this Agreement.

      (z) Taxes. The Company and the Subsidiaries  have timely made or filed all
federal,  state  and  foreign  income  and all other tax  returns,  reports  and
declarations  required  by  any  jurisdiction  to  which  the  Company  or  such
Subsidiaries  are subject and have timely paid all taxes and other  governmental
assessments  and charges that are material in amount,  shown or determined to be
due on such returns,  reports and declarations  (unless and solely to the extent
that the Company or such Subsidiaries are contesting such taxes,  assessments or
charges in good faith and have set aside on their  books  provisions  reasonably
adequate in accordance  with GAAP for the payment of such taxes,  assessments or
charges),  and have set aside on their books provisions  reasonably  adequate in
accordance with GAAP for the payment of all taxes for periods  subsequent to the
periods to which such returns,  reports or declarations  apply. To the Company's
knowledge,  there are no unpaid taxes of the Company and the Subsidiaries in any
material amount claimed to be due by the taxing  authority of any  jurisdiction.
Neither the Company nor the Subsidiaries  have executed a waiver with respect to
the statute of  limitations  relating to the  assessment  or  collection  of any
foreign,  federal,  state  or local  tax.  None of the  Company's  or any of its
Subsidiaries'  tax returns is presently  being audited by any taxing  authority.
The  Trusts  are,  and will,  under  current  laws,  rules and  regulations,  be
classified  for  federal  income  tax  purposes  as  grantor  trusts  and not as
associations taxable as corporations.

      (aa) Holding Company and Bank Regulatory Matters.
<PAGE>

                  (i) The Company is duly  registered as a bank holding  company
under the Bank Holding  Company Act of 1956,  as amended (the "BHC Act") and the
regulations  of the  Board of  Governors  of the  Federal  Reserve  System  (the
"Federal  Reserve  Board").  The deposit  accounts of the  Company's  Subsidiary
depository institutions are insured by the Federal Deposit Insurance Corporation
(the  "FDIC")  through  the  Savings  Association  Insurance  Fund  or the  Bank
Insurance  Fund  to the  fullest  extent  permitted  by law and  the  rules  and
regulations of the FDIC, and all premiums and assessments required to be paid in
connection  therewith have been paid when due, and no Actions for the revocation
or  termination  of such  insurance  are pending or  threatened.  The  Company's
depository  institution  Subsidiary is "well capitalized"  within the meaning of
the  Federal  Deposit  Insurance  Corporation  Improvement  Act of 1991  and the
regulations promulgated thereunder.

                  (ii) The  Company  and each of its  Subsidiaries  have  timely
filed all reports,  registrations  and statements,  together with any amendments
required to be made with respect thereto,  that they were required to file since
January 1, 1998 with any Regulatory Agency (as defined below), and have paid all
fees and assessments due and payable in connection therewith.  Except for normal
examinations  conducted  by a  Regulatory  Agency in the  regular  course of the
business of the Company and its Subsidiaries, no Regulatory Agency has initiated
any  proceeding  or, to the  knowledge  of the Company,  investigation  into the
business or operations of the Company or any of its Subsidiaries.

                  (iii)  Neither  the  Company  nor any of its  Subsidiaries  is
subject or is party to, or has  received  any notice or advice  that any of them
may  become  subject  or party  to,  any  investigation  with  respect  to,  any
cease-and-desist   order,   agreement,   consent   agreement,    memorandum   of
understanding or other regulatory  enforcement action,  proceeding or order with
or by, or is a party to any commitment  letter or similar  undertaking to, or is
subject to any order or directive by, or has been a recipient of any supervisory
letter  from,  or has  adopted  any board  resolutions  at the  request  of, any
Regulatory  Agency that currently  restricts in any material respect the conduct
of their  business or that in any  material  manner  currently  relates to their
capital  adequacy,  their credit  policies,  their  management or their business
(each, a "Regulatory Agreement"), nor has the Company or any of its Subsidiaries
been advised by any Regulatory Agency that such Regulatory Agency is considering
issuing or requesting any such Regulatory Agreement.

                  (iv) As used herein,  the term  "Regulatory  Agency" means any
federal  or  state  agency  or  self-regulatory  organization  charged  with the
supervision  or  regulation  of  depository  institutions,  banks,  financial or
savings and loan holding  companies,  or engaged in the  insurance of depository
institution deposits, or any court, administrative agency or commission or other
governmental  agency,   authority  or  instrumentality   having  supervisory  or
regulatory  authority  with  respect to the Company or any of its  Subsidiaries,
including,  without  limitation,  the Federal  Reserve  Board,  the FDIC and the
Office of the  Comptroller of the Currency.  The term  "governmental  authority"
when used  throughout  this Agreement  shall include,  without  limitation,  any
Regulatory Agency.
<PAGE>

            (bb)  Disclosure.  The  Company  confirms  that  neither  it nor any
officers,  directors or Affiliates,  has provided any of the Purchasers or their
agents or counsel with any  information  that  constitutes  or might  constitute
material,  nonpublic  information (other than (i) the existence and terms of the
issuance  of  Shares,  as  contemplated  by this  Agreement,  and  (ii) any such
information  that will be included in the Current Report on Form 8-K to be filed
within four business days following  execution of this  Agreement).  The Company
understands  and  confirms  that  the  Purchasers  will  rely  on the  foregoing
representations  and  covenants in effecting  transactions  in securities of the
Company.  All disclosure provided to the Purchasers  regarding the Company,  its
business and the transactions  contemplated hereby, furnished by or on behalf of
the Company (including,  without limitation,  the Company's  representations and
warranties  set forth in this  Agreement)  are true and correct in all  material
respects and do not contain any untrue  statement of a material  fact or omit to
state any material fact necessary in order to make the statements  made therein,
in light of the circumstances under which they were made, not misleading.

      3.2  Representations  and  Warranties of the  Purchasers.  Each  Purchaser
hereby,  for itself and for no other  Purchaser,  represents and warrants to the
Company and the Placement Agent as follows:

            (a)  Organization;  Authority.  Such  Purchaser  is an  entity  duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of the
jurisdiction  of its  organization  with the requisite  corporate or partnership
power  and  authority  to  enter  into  and  to  consummate   the   transactions
contemplated by the applicable  Transaction Documents and otherwise to carry out
its  obligations  thereunder.  The execution,  delivery and  performance by such
Purchaser  of the  transactions  contemplated  by this  Agreement  has been duly
authorized  by  all  necessary   corporate  or,  if  such  Purchaser  is  not  a
corporation,  such  partnership,  limited  liability company or other applicable
like  action,  on the part of such  Purchaser.  Each of this  Agreement  and the
Registration Rights Agreement has been duly executed by such Purchaser, and when
delivered by such Purchaser in accordance with terms hereof, will constitute the
valid and legally binding obligation of such Purchaser,  enforceable  against it
in accordance with its terms, except as rights to indemnity and contribution may
be limited by state or federal  securities laws or the public policy  underlying
such laws,  except as  enforceability  may be limited by applicable  bankruptcy,
insolvency,  reorganization,  moratorium  or similar laws  affecting  creditors'
rights  generally  and  except  as  enforceability  may be  subject  to  general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

            (b)  Investment  Intent.  Such  Purchaser is acquiring the Shares as
principal for its own account for  investment  purposes only and not with a view
to or for  distributing  or reselling  such Shares or any part thereof,  without
prejudice, however, to such Purchaser's right, subject to the provisions of this
Agreement  and  the  Registration  Rights  Agreement,  at all  times  to sell or
otherwise  dispose of all or any part of such Shares  pursuant  to an  effective
registration  statement under the Securities Act or under an exemption from such
registration  and in compliance  with  applicable  federal and state  securities
laws. Subject to the immediately  preceding  sentence,  nothing contained herein
shall be deemed a  representation  or  warranty  by such  Purchaser  to hold the
Shares for any period of time. Such Purchaser is acquiring the Shares  hereunder
in the  ordinary  course  of its  business.  Such  Purchaser  does  not have any
agreement  or  understanding,   directly  or  indirectly,  with  any  Person  to
distribute any of the Shares.
<PAGE>

      (c)  Purchaser  Status.  At  the  time  such  Purchaser  was  offered  the
Securities,  it was, and at the date hereof it is, an  "accredited  investor" as
defined  in Rule  501(a)  under the  Securities  Act.  Such  Purchaser  is not a
registered broker-dealer under Section 15 of the Exchange Act.

      (d) Experience of such Purchaser. Such Purchaser, either alone or together
with its representatives,  has such knowledge,  sophistication and experience in
business and financial  matters so as to be capable of evaluating the merits and
risks of the  prospective  investment  in the Shares,  and has so evaluated  the
merits and risks of such investment. Such Purchaser is able to bear the economic
risk of an  investment in the Shares and, at the present time, is able to afford
a complete loss of such investment.

      (e)  Access  to  Information.  Such  Purchaser  acknowledges  that  it has
reviewed the Disclosure  Materials and has been afforded (i) the  opportunity to
ask such questions as it has deemed  necessary of, and to receive  answers from,
representatives  of the  Company  concerning  the  terms and  conditions  of the
offering of the Shares and the merits and risks of investing in the Shares; (ii)
access  to  information  about  the  Company  and  the  Subsidiaries  and  their
respective financial  condition,  results of operations,  business,  properties,
management and prospects sufficient to enable it to evaluate its investment; and
(iii) the  opportunity to obtain such  additional  information  that the Company
possesses  or can  acquire  without  unreasonable  effort  or  expense  that  is
necessary  to  make  an  informed   investment  decision  with  respect  to  the
investment.  Neither such inquiries nor any other investigation  conducted by or
on behalf of such  Purchaser or its  representatives  or counsel  shall  modify,
amend or  affect  such  Purchaser's  right to rely on the  truth,  accuracy  and
completeness of the Disclosure  Materials and the Company's  representations and
warranties contained in the Transaction Documents.

      (f) Reliance;  Legend.  Such Purchaser  understands and acknowledges that:
(i) the Shares are being offered and sold to it without  registration  under the
Securities  Act in a  private  placement  that is exempt  from the  registration
provisions of the  Securities  Act and (ii) the  availability  of such exemption
depends in part on, and the Company will rely upon the accuracy and truthfulness
of, the foregoing  representations  and such Purchaser  hereby  consents to such
reliance.  Such Purchaser  acknowledges  that the certificate  representing  the
Shares which such  Purchaser  shall acquire  hereunder  shall bear a legend that
will read substantially as set forth in section 4.1(b).

      (g) Residency.  Such Purchaser is a resident of the jurisdiction set forth
immediately below such Purchaser's name on the signature pages hereto.
<PAGE>

      (h)  Certain  Trading  Activities.  Such  Purchaser  has not  directly  or
indirectly,  nor  has  any  Person  acting  on  behalf  of or  pursuant  to  any
understanding  with such  Purchaser,  engaged  in (i) any Short  Sales  (defined
below) involving the Company's securities during the 30 Trading Days immediately
preceding  the date hereof or (ii) any  transactions  in any  securities  of the
Company following the date on which such Purchaser was aware of this Transaction
(other than this  Transaction  and other than  transfers  by a Purchaser  to its
affiliated   funds  which   affiliated  funds  have  not  engaged  in  any  such
transactions).  For purposes of this  Section,  "Short Sales"  include,  without
limitation,  all  types of direct  and  indirect  stock  pledges,  forward  sale
contracts, options, puts, calls, short sales, swaps and similar arrangements and
sales and other transactions  through non-US broker dealers or foreign regulated
brokers  having the effect of hedging the  securities or  investment  made under
this Agreement.

      (i)   Acknowledgements   Regarding   Placement   Agent.   Such   Purchaser
acknowledges  that the Placement Agent (i) is acting as the Company's  exclusive
placement agent for the sale of the securities  being offered hereby,  (ii) will
be compensated as set forth in the Confidential Memorandum solely by the Company
for its  services  in such  capacity,  (iii)  is not  guaranteeing  or  assuming
responsibility  for the  operation,  management  or  possible  liability  of the
Company,  including,  without  limitation,  compliance  by the Company  with the
Transaction  Documents,  and  (iv)  will not  supervise  or  participate  in the
operation or management of the Company.

      (j) Filings,  Consents and  Approvals.  Such  Purchaser is not required to
obtain any consent,  waiver,  authorization  or order of, give any notice to, or
make any filing or registration  with, any court or other federal,  state, local
or  other  governmental  authority  or  other  Person  in  connection  with  the
execution,  delivery  and  performance  by  such  Purchaser  of the  Transaction
Documents.  Without  limiting the  foregoing,  such Purchaser is not required to
register as a bank  holding  company  under the BHC Act in  connection  with the
execution,  delivery  and  performance  by  such  Purchaser  of the  Transaction
Documents.

The Company acknowledges and agrees that each Purchaser does not make or has not
made  any  representations  or  warranties  with  respect  to  the  transactions
contemplated hereby other than those specifically set forth in this Section 3.2.

                                  ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

      4.1 (a) Each  Purchaser  shall only  dispose of the Shares  pursuant to an
effective  registration  statement  under the Securities  Act, to the Company or
pursuant to an available  exemption from or in a transaction  not subject to the
registration  requirements  of the  Securities  Act, and in compliance  with any
applicable  state  securities  laws.  Each  Purchaser  will  not,   directly  or
indirectly,  offer, sell,  pledge,  transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) any of the
Shares except in compliance with the Securities Act, applicable state securities
laws  and the  respective  rules  and  regulations  promulgated  thereunder.  In
connection with any transfer of the Shares pursuant to an effective registration
statement, each Purchaser shall comply with the prospectus delivery requirements
under  the  Securities   Act.  Each  Purchaser   acknowledges   that  there  may
occasionally  be times when the Company  determines that it must suspend the use
of the  prospectus  forming  a part  of the  registration  statement  under  the
circumstances set forth in the Registration Rights Agreement. In connection with
any  transfer of the Shares  other than  pursuant to an  effective  registration
statement,  to the Company, to an Affiliate of a Purchaser or in connection with
a pledge as  contemplated  in  Section  4.1(b),  the  Company  may  require  the
transferor  thereof to provide to the Company an opinion of counsel  selected by
the  transferor  and  acceptable  to  the  Company  (such  acceptance  not to be
unreasonably  withheld),  the  form and  substance  of  which  opinion  shall be
reasonably  satisfactory  to the Company,  to the effect that such transfer does
not require  registration of such  transferred  Shares under the Securities Act.
Each Purchaser  will not directly or  indirectly,  nor will any Person acting on
behalf of or pursuant to any  understanding  with such Purchaser,  engage in any
Short Sales prior to the effectiveness of the Registration  Statement where such
Short Sales are subsequently covered with the Shares.
<PAGE>

      (b) Certificates  evidencing the Shares will contain the following legend,
so long as is required by this Section 4.1(b) or Section 4.1(c):

            THESE  SECURITIES  HAVE NOT BEEN  REGISTERED WITH THE SECURITIES AND
            EXCHANGE  COMMISSION  OR THE  SECURITIES  COMMISSION OF ANY STATE IN
            RELIANCE UPON AN EXEMPTION  FROM  REGISTRATION  UNDER THE SECURITIES
            ACT OF 1933, AS AMENDED (THE "SECURITIES  ACT"),  AND,  ACCORDINGLY,
            MAY  NOT  BE  OFFERED  OR  SOLD  EXCEPT  PURSUANT  TO  AN  EFFECTIVE
            REGISTRATION  STATEMENT  UNDER THE  SECURITIES ACT OR PURSUANT TO AN
            AVAILABLE  EXEMPTION  FROM, OR IN A TRANSACTION  NOT SUBJECT TO, THE
            REGISTRATION  REQUIREMENTS  OF THE  SECURITIES ACT AND IN ACCORDANCE
            WITH  APPLICABLE  STATE  SECURITIES  LAWS  AS  EVIDENCED  BY A LEGAL
            OPINION OF COUNSEL TO THE  TRANSFEROR TO SUCH EFFECT,  THE SUBSTANCE
            OF WHICH  SHALL  BE  REASONABLY  ACCEPTABLE  TO THE  COMPANY.  THESE
            SECURITIES  MAY BE PLEDGED  IN  CONNECTION  WITH A BONA FIDE  MARGIN
            ACCOUNT SECURED BY SUCH SECURITIES.

      The Company acknowledges and agrees that a Purchaser may from time to time
pledge,  and/or  grant a  security  interest  in some or all of the  Shares,  in
accordance  with  applicable  securities  laws,  pursuant  to a bona fide margin
agreement in connection  with a bona fide margin  account and, if required under
the terms of such agreement or account,  such Purchaser may transfer  pledged or
secured  Shares to the  pledgees or secured  parties.  Such a pledge or transfer
would not be subject to approval or consent of the Company and no legal  opinion
of legal  counsel to the pledgee,  secured party or pledgor shall be required in
connection with the pledge, but such legal opinion may be required in connection
with  a  subsequent  transfer,  following  default  by  the  Purchaser,  to  the
transferee  of the pledge.  No notice shall be required of such  pledge.  At the
appropriate  Purchaser's  expense,  the Company  will  execute and deliver  such
reasonable  documentation as a pledgee or secured party of Shares may reasonably
request in  connection  with a pledge or transfer of the  Securities  including,
without  limitation,  the  preparation  and  filing of any  required  prospectus
supplement  under  Rule  424(b)(3)  of the  Securities  Act or other  applicable
provision  of the  Securities  Act to  appropriately  amend the list of  Selling
Stockholders thereunder.
<PAGE>

            (c) Certificates  evidencing the Shares shall not contain any legend
(including,  without  limitation,  the legend set forth in Section 4.1(b)):  (i)
while a registration statement (including,  without limitation, the Registration
Statement)  covering the resale of such Shares is effective under the Securities
Act or (ii)  following  any sale of such  Shares  pursuant to Rule 144, or (iii)
while such  Shares are  eligible  for sale  under Rule  144(k),  or (iv) if such
legend is not required  under  applicable  requirements  of the  Securities  Act
(including,  without  limitation,  judicial  interpretations  and pronouncements
issued by the Staff of the  Commission).  The Company shall use its best efforts
to cause its counsel to issue any legal opinion or  instruction  required by the
Company's  transfer  agent to  comply  with the  requirements  set forth in this
Section.  At such time as a legend is no longer  required  for the Shares  under
this Section 4.1(c), the Company will, no later than five Trading Days following
the delivery by a Purchaser to the Company or the Company's  transfer agent of a
certificate  representing  Shares  containing a restrictive  legend,  deliver or
cause to be delivered to such Purchaser a certificate  representing  such Shares
that is free from all  restrictive  and other legends.  The Company may not make
any notation on its records or give  instructions  to any transfer  agent of the
Company  that  enlarge the  restrictions  on transfer  set forth in this Section
except as it may  reasonably  determine,  upon  written  advice of counsel,  are
necessary to comply or to ensure  compliance  with  applicable  laws;  provided,
however,  that at such time as such  notation  or enlarged  restrictions  are no
longer  necessary to comply or to ensure  compliance with  applicable  laws, the
Company shall take such actions as are necessary to  immediately  eliminate such
notation or enlarged restrictions.

      4.2 Furnishing of Information.  As long as any Purchaser owns Shares,  the
Company  covenants to timely file (or obtain  extensions in respect  thereof and
file within the applicable grace period) all reports required to be filed by the
Company  after the date  hereof  pursuant  to the  Exchange  Act. As long as any
Purchaser owns Shares,  if the Company is not required to file reports  pursuant
to such laws,  it will prepare and furnish to the  Purchasers  and make publicly
available in accordance with Rule 144(c) such information as is required for the
Purchasers to sell the Shares under Rule 144. The Company further covenants that
it will take such further action as any holder of Shares may reasonably request,
all to the extent  required from time to time to enable such Person to sell such
Shares  without  registration  under the Securities Act within the limitation of
the exemptions provided by Rule 144.

      4.3 Integration.  The Company shall not, and shall use its best efforts to
ensure that no Affiliate of the Company shall,  sell,  offer for sale or solicit
offers to buy or  otherwise  negotiate in respect of any security (as defined in
Section 2 of the Securities  Act) that will be integrated with the offer or sale
of the  Shares  in a manner  that  would  require  the  registration  under  the
Securities  Act of the sale of the  Shares  to the  Purchasers,  or that will be
integrated  with the offer or sale of the Shares for  purposes  of the rules and
regulations of any Trading Market.
<PAGE>

      4.4 Securities Laws Disclosure; Publicity. The Company shall, on or before
8:30 a.m., New York time, on the first Business Day following  execution of this
Agreement,  issue a press release  reasonably  acceptable to the Placement Agent
disclosing the consummation of the transactions  contemplated hereby and, within
four Business Days following execution of this Agreement,  file a Current Report
on Form 8-K disclosing the consummation of the transactions contemplated hereby,
and in connection therewith,  shall be permitted to file true and correct copies
of this  Agreement  and the  Registration  Rights  Agreement.  In addition,  the
Company will make such other filings and notices in the manner and time required
by the  Commission  and the Trading  Market on which the Common Stock is listed.
Notwithstanding the foregoing,  the Company shall not publicly disclose the name
of any  Purchaser,  or include the name of any  Purchaser in any filing with the
Commission  (other than the Registration  Statement,  the Current Report on Form
8-K required in connection  with this  transaction,  and any exhibits to filings
made  in  respect  of  this  transaction  in  accordance  with  periodic  filing
requirements under the Exchange Act) or any regulatory agency or Trading Market,
without the prior written consent of such  Purchaser,  except to the extent such
disclosure is required by law or Trading  Market or Commission  regulations,  in
which case the Company shall provide the Purchasers with reasonable prior notice
of such  disclosure  (other than a disclosure in such Current  Report or in such
exhibits).  The Company  shall not, and shall use its best efforts to cause each
of its Subsidiaries and its and each of their  respective  officers,  directors,
employees and agents not to, provide any Purchaser  with any material  nonpublic
information  regarding the Company or any of its Subsidiaries from and after the
issuance of the above  referenced  press  release  without  the express  written
consent of such Purchaser  (and prior to such time, any such material  nonpublic
information  shall be  limited  to the  matters  set forth in the  parenthetical
clause of the first sentence of Section 3.1(bb)).

      4.5  Indemnification of Purchasers.  In addition to the indemnity provided
in the Registration  Rights  Agreement,  the Company will indemnify and hold the
Purchasers and their directors, officers, shareholders,  partners, employees and
agents  (each,  a  "Purchaser   Party")   harmless  from  any  and  all  losses,
liabilities,  obligations,  claims, contingencies,  damages, costs and expenses,
including, without limitation, all judgments, amounts paid in settlements, court
costs and reasonable  attorneys' fees and costs of investigation  (collectively,
"Losses")  that any such  Purchaser  Party may suffer or incur as a result of or
relating   to  (i)  any   misrepresentation,   breach  or   inaccuracy   of  any
representation,  warranty,  covenant  or  agreement  made by the  Company in any
Transaction Document, or (ii) the failure of the Company to cause its counsel to
issue the legal opinion or instruction  described in Section 4.1(c). In addition
to the indemnity  contained  herein,  the Company will  reimburse each Purchaser
Party  for  its  reasonable  legal  and  other  expenses   (including,   without
limitation, the cost of any investigation,  preparation and travel in connection
therewith) incurred in connection therewith, as such expenses are incurred.

      4.6 Use of Proceeds.  The Company shall use the net proceeds from the sale
of the Shares  hereunder in the manner set forth in the  description  of "Use of
Proceeds" contained in the Confidential  Memorandum.  Such proceeds shall not be
used by the  Company  for  the  satisfaction  of any  portion  of the  Company's
outstanding debt (other than liabilities  incurred in the ordinary course of the
Company's  business and  consistent  with past  practices and other than to make
payments on any outstanding  indebtedness incurred under that certain Indenture,
dated as of December  18,  2001,  between the Company and State  Street Bank and
Trust  Company as  debenture  trustee  for  floating  rate  junior  subordinated
deferrable interest debentures due 2031 and that certain Indenture,  dated as of
December 19, 2003,  between the Company and Wilmington Trust Company relating to
$5.0 million  aggregate  principal  amount of floating rate junior  subordinated
debt  securities  due 2034),  to redeem any  capital  stock of the Company or to
settle any outstanding Action.
<PAGE>

      4.7 Listing of Securities.  The Company shall:  (i) in the time and manner
required by each Trading Market on which the Common Stock is listed, prepare and
file with such Trading Market an additional shares listing application  covering
the Shares, (ii) take all steps necessary to cause the Shares to be approved for
listing on each  Trading  Market on which the Common  Stock is listed as soon as
possible  thereafter,  (iii) provide to each Purchaser evidence of such listing,
and (iv)  maintain  the  listing  of the Shares on each such  Trading  Market or
another eligible securities market.

                                   ARTICLE V.

                               CLOSING CONDITIONS

      5.1 Conditions  Precedent to the Obligations of the Purchasers to Purchase
Shares on the Closing Date.  The  obligation of each Purchaser to acquire Shares
at the Closing is subject to the satisfaction or waiver by such Purchaser, at or
before the Closing, of each of the following conditions:

            (a)   Representations   and  Warranties.   The  representations  and
warranties  of the  Company  contained  herein  shall be true and correct in all
material  respects as of the date when made and as of the Closing as though made
on and as of such date;

            (b)  Performance.  The Company shall have  performed,  satisfied and
complied in all material respects with all covenants,  agreements and conditions
required by the  Transaction  Documents to be  performed,  satisfied or complied
with by it at or prior to the Closing;

            (c) No Injunction.  No statute, rule,  regulation,  executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by any court or governmental  authority of competent  jurisdiction that
prohibits  the  consummation  of  any of the  transactions  contemplated  by the
Transaction Documents; and

            (d) No Suspensions of Trading in Common Stock;  Listing.  Trading in
the Common Stock shall not have been  suspended by the Commission or any Trading
Market at any time since the date of execution of this Agreement, and the Common
Stock  shall  have been at all times  since such date  listed  for  trading on a
Trading Market.

      5.2 Conditions  Precedent to the Obligations of the Company to sell Shares
on the Closing Date. The obligation of the Company to sell Shares at the Closing
is  subject  to the  satisfaction  or waiver by the  Company,  at or before  the
Closing, of each of the following conditions:
<PAGE>

      (a) Representations and Warranties.  The representations and warranties of
each  Purchaser  contained  herein  shall be true and  correct  in all  material
respects as of the date when made and as of the  Closing  Date as though made on
and as of such date;

      (b)  Performance.  Each  Purchaser  shall have  performed,  satisfied  and
complied in all material respects with all covenants,  agreements and conditions
required by the  Transaction  Documents to be  performed,  satisfied or complied
with by such Purchaser at or prior to the Closing; and

      (c) No Injunction. No statute, rule, regulation,  executive order, decree,
ruling or injunction shall have been enacted,  entered,  promulgated or endorsed
by any court or governmental  authority of competent jurisdiction that prohibits
the  consummation  of any of the  transactions  contemplated  by the Transaction
Documents.

      (d)  Escrowed  Funds.  The  Company  shall  have  received  an  electronic
notification  from the escrow agent  identified  in Schedule  2.2(b)(i),  to the
effect that it has received (in its capacity as depositary  for the Company) the
amount set forth on the funds disbursement instructions jointly agreed to by the
Company and the  Placement  Agent,  and that, at the joint  instructions  of the
Company and the Placement Agent, it is prepared to wire transfer the amounts set
forth on such funds  disbursement  instructions,  to the accounts  designated in
such funds disbursement instructions.

                                   ARTICLE VI.

                                  MISCELLANEOUS

      6.1 Fees and Expenses.  At the Closing,  the Company  shall  reimburse the
Placement  Agent up to $35,000 of reasonable fees and  disbursements  of Morgan,
Lewis &  Bockius  LLP in  connection  with the  preparation  of the  Transaction
Documents, it being understood that Morgan, Lewis & Bockius LLP has not rendered
any legal advice to the Company in connection with the transactions contemplated
hereby and that the Company has relied for such matters on the advice of its own
counsel.  Except as specified in this  Agreement or in the  Registration  Rights
Agreement, each party shall pay the fees and expenses of its advisers,  counsel,
accountants and other experts,  if any, and all other expenses  incurred by such
party  incident  to  the  negotiation,   preparation,  execution,  delivery  and
performance of the  Transaction  Documents.  The Company shall pay all stamp and
other taxes and duties levied in connection with the sale of the Shares.

      6.2  Entire  Agreement.  The  Transaction  Documents,  together  with  the
Exhibits and Schedules thereto,  contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.
<PAGE>

      6.3 Notices.  Any and all notices or other  communications  or  deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of  transmission,  if
such notice or  communication is delivered via facsimile at the facsimile number
specified in this Section  prior to 5:00 p.m. (New York time) on a Business Day,
and  confirmation of such delivery is received,  (b) the next Business Day after
the date of  transmission,  if such notice or  communication  is  delivered  via
facsimile at the facsimile number specified in this Section on a day that is not
a  Business  Day or  later  than  5:00  p.m.  (New  York  time)  on the  date of
transmission and confirmation of such delivery is received, (c) the Business Day
following  the  date of  transmission,  if sent  by U.S.  nationally  recognized
overnight courier service,  or (d) upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and  communications
shall be as follows:

       If to the Company:     Center Bancorp, Inc.
                              2455 Morris Avenue
                              Union, NJ  07083
                              Telephone:  (908) 688-9500
                              Facsimile:  (908) 687-4992
                              Attention:  Chief Executive Officer

      With a copy to:         Lowenstein Sandler PC
                              65 Livingston Avenue
                              Roseland, New Jersey 07068
                              Telephone: (973) 597-2350
                              Facsimile:  (973) 597-2351 (fax)
                              Attention:  Peter H. Ehrenberg, Esquire

       If to a Purchaser:     To the address set forth under such Purchaser's
                              name on the signature pages hereof;

or such other  address as may be designated  in writing  hereafter,  in the same
manner, by such Person.

      6.4 Amendments;  Waivers.  No provision of this Agreement may be waived or
amended except in a written  instrument  signed by the Company and Purchasers of
not less than a majority of the Shares issued or issuable under this  Agreement.
No waiver of any default with respect to any provision, condition or requirement
of this Agreement  shall be deemed to be a continuing  waiver in the future or a
waiver of any subsequent  default or a waiver of any other provision,  condition
or  requirement  hereof,  nor  shall any delay or  omission  of either  party to
exercise  any right  hereunder  in any manner  impair the  exercise  of any such
right.

      6.5  Construction.  The headings herein are for  convenience  only, do not
constitute a part of this  Agreement  and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent,  and no
rules of strict  construction  will be applied against any party. This Agreement
shall be construed as if drafted  jointly by the parties,  and no presumption or
burden of proof shall arise favoring or  disfavoring  any party by virtue of the
authorship  of any  provisions  of  this  Agreement  or  any of the  Transaction
Documents.
<PAGE>

      6.6 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their  successors and permitted  assigns.  The
Company  may not assign its rights or  obligations  hereunder  without the prior
written  consent  of  each  Purchaser  except  to  any  surviving  or  successor
corporation  in connection  with a merger or  consolidation  of the Company with
another  corporation,  after notice duly given by the Company in writing to each
Purchaser at least 20 days prior to the  consummation of such  transaction.  Any
Purchaser may assign any or all of its rights under this Agreement to any Person
to whom such Purchaser assigns or transfers any Shares, provided such transferee
agrees in writing to be bound,  with respect to the transferred  Shares,  by the
provisions hereof that apply to the "Purchasers."

      6.7 No  Third-Party  Beneficiaries.  This  Agreement  is intended  for the
benefit of the  parties  hereto  and the  Placement  Agent and their  respective
successors  and  permitted  assigns  and is not for the  benefit of, nor may any
provision hereof be enforced by, any other Person.

      6.8 Governing Law. All questions  concerning the  construction,  validity,
enforcement  and  interpretation  of this  Agreement  shall be  governed  by and
construed and enforced in accordance  with the internal laws of the State of New
York,  without regard to the principles of conflicts of law thereof.  Each party
agrees that all Actions concerning the interpretations,  enforcement and defense
of the  transactions  contemplated  by this Agreement and any other  Transaction
Documents (whether brought against a party hereto or its respective  Affiliates,
employees or agents) may be commenced in the state and federal courts sitting in
the  State of New York  (the  "New  York  Courts").  Each  party  hereto  hereby
irrevocably submits to the non-exclusive jurisdiction of the New York Courts for
the adjudication of any dispute hereunder or in connection  herewith or with any
transaction   contemplated  hereby  or  discussed  herein  (including,   without
limitation,   with  respect  to  the  enforcement  of  any  of  the  Transaction
Documents),  and  hereby  irrevocably  waives,  and  agrees not to assert in any
Action,  any claim that it is not personally  subject to the jurisdiction of any
such New York Court,  or that such Action has been  commenced  in an improper or
inconvenient forum. Each party hereto hereby irrevocably waives personal service
of process and consents to process  being served in any such Action by mailing a
copy thereof via  registered  or  certified  mail or  overnight  delivery  (with
evidence of  delivery)  to such party at the address in effect for notices to it
under this  Agreement  and agrees that such service  shall  constitute  good and
sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted
by law.  Each party hereto  hereby  irrevocably  waives,  to the fullest  extent
permitted  by  applicable  law, any and all right to trial by jury in any Action
arising out of or relating to this  Agreement or the  transactions  contemplated
hereby.  If either party shall commence an Action to enforce any provisions of a
Transaction  Document,  then  the  prevailing  party  in such  Action  shall  be
reimbursed  by the other  party  for its  attorney's  fees and  other  costs and
expenses  incurred with the  investigation,  preparation and prosecution of such
Action.

      6.9 Survival.  The representations,  warranties,  agreements and covenants
contained herein shall survive the Closing and the delivery of the Shares.
<PAGE>

      6.10   Execution.   This   Agreement  may  be  executed  in  two  or  more
counterparts,  all of which when taken  together shall be considered one and the
same agreement and shall become effective when  counterparts have been signed by
each party and  delivered  to the other  party,  it being  understood  that both
parties need not sign the same  counterpart.  In the event that any signature is
delivered by facsimile  transmission,  such  signature  shall create a valid and
binding  obligation of the party executing (or on whose behalf such signature is
executed)  with the same force and effect as if such  facsimile  signature  page
were an original thereof.

      6.11 Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent  jurisdiction to be invalid,  illegal,
void or  unenforceable,  the remainder of the terms,  provisions,  covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected,  impaired or  invalidated,  and the parties hereto shall use
their reasonable  efforts to find and employ an alternative means to achieve the
same or  substantially  the  same  result  as that  contemplated  by such  term,
provision,  covenant or restriction.  It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining  terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

      t 6 0 6.12  Replacement  of  Shares.  If  any  certificate  or  instrument
evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall
issue  or  cause  to be  issued  in  exchange  and  substitution  for  and  upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument,  but only upon receipt of evidence reasonably satisfactory to the
Company  of such loss,  theft or  destruction  and a  customary  and  reasonable
indemnity  and bond, if  requested.  The  applicants  for a new  certificate  or
instrument under such  circumstances  shall also pay any reasonable  third-party
costs associated with the issuance of such replacement  Shares. If a replacement
certificate or instrument evidencing any Shares is requested due to a mutilation
thereof,  the Company may require  delivery  of such  mutilated  certificate  or
instrument as a condition precedent to any issuance of a replacement.

      6.13  Remedies.  In  addition to being  entitled  to  exercise  all rights
provided herein or granted by law, including,  without  limitation,  recovery of
damages,  each of the  Purchasers  and the Company  will be entitled to specific
performance  under the  Transaction  Documents.  The parties agree that monetary
damages may not be adequate  compensation for any loss incurred by reason of any
breach of obligations  described in the foregoing  sentence and hereby agrees to
waive in any action for specific  performance of any such obligation the defense
that a remedy at law would be adequate.

      6.14 Payment Set Aside.  To the extent that the Company makes a payment or
payments to any Purchaser  pursuant to any  Transaction  Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such  enforcement  or exercise or any part thereof are  subsequently
invalidated,  declared to be fraudulent or  preferential,  set aside,  recovered
from, disgorged by or are required to be refunded,  repaid or otherwise restored
to the  Company,  a  trustee,  receiver  or  any  other  person  under  any  law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable  cause of action),  then to the extent of any such  restoration
and to the extent  permitted by law, the  obligation or part thereof  originally
intended to be satisfied shall be revived and continued in full force and effect
as if such  payment  had not been made or such  enforcement  or  setoff  had not
occurred.
<PAGE>

      6.15  Independent  Nature  of  Purchasers'  Obligations  and  Rights.  The
obligations of each Purchaser under any Transaction Document are several and not
joint with the  obligations of any other  Purchaser,  and no Purchaser  shall be
responsible  in any way for the  performance  of the  obligations  of any  other
Purchaser  under any  Transaction  Document.  The decision of each  Purchaser to
purchase  Shares  pursuant to the  Transaction  Documents  has been made by such
Purchaser  independently of any other Purchaser.  Nothing contained herein or in
any Transaction Document, and no action taken by any Purchaser pursuant thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a
joint  venture  or any other kind of entity,  or create a  presumption  that the
Purchasers  are in any way acting in concert or as a group with  respect to such
obligations or the transactions  contemplated by the Transaction Document.  Each
Purchaser  acknowledges  that no other  Purchaser  has  acted as agent  for such
Purchaser  in  connection  with  making  its  investment  hereunder  and that no
Purchaser  will  be  acting  as  agent  of such  Purchaser  in  connection  with
monitoring  its  investment  in the Shares or  enforcing  its  rights  under the
Transaction Documents. Each Purchaser shall be entitled to independently protect
and enforce its rights, including, without limitation, the rights arising out of
this  Agreement or out of the other  Transaction  Document,  and it shall not be
necessary  for any other  Purchaser to be joined as an  additional  party in any
Action for such purpose.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                             SIGNATURE PAGES FOLLOW]

<PAGE>

                   SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Stock  Purchase
Agreement to be duly executed by their respective  authorized  signatories as of
the date first indicated above.

                                    CENTER BANCORP, INC.

                                    By:  /s/ Anthony C. Weagley
                                         ---------------------------
                                    Name: Anthony C. Weagley
                                    Title: Vice President and Treasurer

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGES FOR PURCHASERS FOLLOW]

<PAGE>

      IN  WITNESS  WHEREOF,  the  parties  have  executed  this  Stock  Purchase
Agreement as of the date first written above.

                                    BAY POND INVESTORS (BERMUDA) L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    BAY POND PARTNERS, L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    IVY   MA    HOLDINGS   1, LTD   (A   CAYMAN
                                    CORPORATION)

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    IVY MA HOLDINGS 4, LLC

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    KEEFE-RAINBOW  OFFSHORE  FUND, LTD (A CAYMAN
                                    CORPORATION)

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    KEEFE-RAINBOW PARTNERS LP

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    MOORS AND MENDON MASTER FUND LP

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    NORGUARD INSURANCE COMPANY

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    OZ MASTER FUND, LTD.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    ROYAL INVESTMENTS OF DELAWARE

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    WOLF CREEK INVESTORS (BERMUDA) L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    WOLF CREEK PARTNERS, L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

<PAGE>

                                    EXHIBIT A

                      Form of Registration Rights Agreement

                                 (see attached)

<PAGE>

                                    EXHIBIT B

                              Form of Legal Opinion

                                 (see attached)REGISTRATION RIGHTS AGREEMENT

            This  Registration  Rights Agreement (this  "Agreement") is made and
entered  into as of June 30,  2005,  by and among  Center  Bancorp,  Inc., a New
Jersey corporation (the "Company"),  and the investors  signatory hereto (each a
"Purchaser" and collectively, the "Purchasers").

            This  Agreement is made  pursuant to the Stock  Purchase  Agreement,
dated as of the date hereof, among the Company and the Purchasers (the "Purchase
Agreement").

            NOW,  THEREFORE,  IN CONSIDERATION of the mutual covenants contained
in this Agreement,  and for other good and valuable  consideration,  the receipt
and adequacy of which are hereby  acknowledged,  the Company and the  Purchasers
agree as follows:

      Definitions.  Capitalized terms used and not otherwise defined herein that
are defined in the Purchase  Agreement  shall have the meanings given such terms
in the Purchase Agreement. As used in this Agreement,  the following terms shall
have the respective meanings set forth in this Section 1:

            "Effective  Date"  means  the date that the  Registration  Statement
filed  pursuant  to  Section  2(a)  hereof is first  declared  effective  by the
Commission.

            "Effectiveness   Date"  means:  (a)  with  respect  to  the  initial
Registration  Statement  required to be filed to cover the resale by the Holders
of the Registrable  Securities,  the earlier of: (i) the 120th day following the
Closing  Date and (ii) the fifth  Trading  Day  following  the date on which the
Company is notified by the Commission  that the initial  Registration  Statement
will not be reviewed or is no longer subject to further review and comments, and
(b) with respect to any additional  Registration Statements that may be required
pursuant to Section 2(a) hereof, the earlier of: (i) the 120th day following the
date on which the Company  first knows,  or reasonably  should have known,  that
such additional  Registration  Statement is required under such Section and (ii)
the fifth Trading Day following the date on which the Company is notified by the
Commission that such additional  Registration  Statement will not be reviewed or
is no longer subject to further review and comments.

            "Effectiveness  Period"  shall have the meaning set forth in Section
2(a).

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

            "Filing  Date" means:  (a) with respect to the initial  Registration
Statement  required  to be filed to  cover  the  resale  by the  Holders  of the
Registrable  Securities,  the 30th day following the Closing Date,  and (b) with
respect to any additional  Registration Statements that may be required pursuant
to Section 2(a)  hereof,  the 30th day  following  the date on which the Company
first knows, or reasonably should have known, that such additional  Registration
Statement is required under such Section.
<PAGE>

            "Holder" or "Holders"  means the holder or holders,  as the case may
be, from time to time of Registrable Securities.

            "Indemnified  Party"  shall  have the  meaning  set forth in Section
5(c).

            "Indemnifying  Party"  shall have the  meaning  set forth in Section
5(c).

            "Losses" shall have the meaning set forth in Section 5(a).

            "Proceeding"  means  an  action,   claim,  suit,   investigation  or
proceeding   (including,   without  limitation,   an  investigation  or  partial
proceeding, such as a deposition), whether commenced or threatened.

            "Prospectus"  means  the  prospectus   included  in  a  Registration
Statement  (including,  without  limitation,  a  prospectus  that  includes  any
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  upon  Rule  430A  promulgated  under  the
Securities Act), as amended or supplemented by any prospectus  supplement,  with
respect  to  the  terms  of  the  offering  of any  portion  of the  Registrable
Securities  covered by a Registration  Statement,  and all other  amendments and
supplements to the Prospectus,  including,  without  limitation,  post-effective
amendments,  and  all  material  incorporated  by  reference  or  deemed  to  be
incorporated by reference in such Prospectus.

            "Registrable  Securities"  means the Shares  issued  pursuant to the
Purchase  Agreement,  together with any securities issued or issuable in respect
of such Shares (including, without limitation, upon any stock split, dividend or
other distribution,  merger, consolidation,  recapitalization or similar event),
but only if and so long as they have not been sold  pursuant  to a  Registration
Statement or in a sale exempt from registration pursuant to Rule 144.

            "Registration Statement" means each of the following: (i) an initial
registration  statement  which  is  required  to  register  the  resale  of  the
Registrable Securities, and (ii) each additional registration statement, if any,
contemplated  by Section 2(a),  and  including,  in each case,  the  Prospectus,
amendments and  supplements to each such  registration  statement or Prospectus,
including pre- and  post-effective  amendments,  all exhibits  thereto,  and all
material  incorporated by reference or deemed to be incorporated by reference in
such registration statement.

            "Rule 144" means Rule 144 promulgated by the Commission  pursuant to
the  Securities  Act,  as such Rule may be  amended  from  time to time,  or any
similar  rule  or  regulation   hereafter   adopted  by  the  Commission  having
substantially the same effect as such Rule.

            "Rule 415" means Rule 415 promulgated by the Commission  pursuant to
the  Securities  Act,  as such Rule may be  amended  from  time to time,  or any
similar  rule  or  regulation   hereafter   adopted  by  the  Commission  having
substantially the same effect as such Rule.

            "Rule 424" means Rule 424 promulgated by the Commission  pursuant to
the  Securities  Act,  as such Rule may be  amended  from  time to time,  or any
similar  rule  or  regulation   hereafter   adopted  by  the  Commission  having
substantially the same effect as such Rule.

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<PAGE>

            "Securities Act" means the Securities Act of 1933, as amended.

            "Shares" shall have the meaning set forth in the Purchase Agreement.

      Registration.

            On or prior to each Filing Date,  the Company shall prepare and file
with  the  Commission  a  Registration  Statement  covering  the  resale  of all
Registrable  Securities  not  already  covered  by  an  existing  and  effective
Registration Statement for an offering to be made on a continuous basis pursuant
to Rule 415.  The  Registration  Statement  shall be on Form S-3  (except if the
Company is not then eligible to register for resale the  Registrable  Securities
on Form S-3,  in which case such  registration  shall be on another  appropriate
form for such purpose) and shall contain (subject to such modification as may be
required  pursuant to written comments received from the staff of the Commission
upon a  review  of such  Registration  Statement)  the  "Plan  of  Distribution"
attached hereto as Annex A. The Company shall use its reasonable best efforts to
cause the Registration  Statement to be declared  effective under the Securities
Act as soon as possible but, in any event, no later than the Effectiveness Date,
and shall use its  reasonable  best efforts to keep the  Registration  Statement
continuously  effective  under the  Securities  Act until the date  which is two
years after the date that the  Registration  Statement is declared  effective by
the Commission or such earlier date when all Registrable  Securities  covered by
the Registration Statement have been sold or may be sold without volume or other
restrictions pursuant to Rule 144(k) as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to
the  Company's  transfer  agent and the  affected  Holders  (the  "Effectiveness
Period"). It is agreed and understood that the Company shall, from time to time,
be  obligated  to  file  an  additional  Registration  Statement  to  cover  any
Registrable  Securities  which  are not  registered  for  resale  pursuant  to a
pre-existing  Registration  Statement (e.g.,  following the receipt of a request
from a Holder,  whose  Registrable  Securities are not so registered for resale,
that the Holder's Registrable Securities be registered for resale).

            If:  (i) a  Registration  Statement  is not filed on or prior to its
Filing Date (if the Company files a Registration Statement without affording the
Holders the opportunity to review and comment on the same as required by Section
3(a) hereof, the Company shall not be deemed to have satisfied this clause (i)),
or (ii) a Registration  Statement is not declared effective by the Commission on
or prior to its required  Effectiveness Date, or (iii) after its Effective Date,
such  Registration  Statement or related  Prospectus ceases for any reason to be
available to the Holders as to all Registrable  Securities the offer and sale of
which  it is  required  to cover at any  time  prior  to the  expiration  of its
Effectiveness Period (whether due to the Registration  Statement ceasing for any
reason to be effective or because use of the  Prospectus  has been suspended for
any reason, including, without limitation,  pursuant to Section 3(j) hereof) for
an  aggregate  of more than 20  consecutive  Trading  Days or an aggregate of 40
Trading  Days (which need not be  consecutive)  in any twelve  month period (any
such  failure or breach  being  referred to as an "Event,"  and for  purposes of
clauses  (i) or (ii) the date on which such Event  occurs,  or for  purposes  of
clause (iii) the date which such 20  consecutive  or 40 Trading  Day-period  (as
applicable) is exceeded,  being referred to as "Event Date"),  then, in addition
to any other rights available to the Holders: (x) on such Event Date the Company
shall pay to each Holder an amount in cash, as  liquidated  damages and not as a
penalty, equal to 1% of the aggregate purchase price paid by such Holder for its
Shares pursuant to the Purchase  Agreement;  and (y) on each monthly anniversary
of each such Event Date  thereof  (if the  applicable  Event shall not have been
cured by such date, subject to pro rata payment pursuant to the last sentence of
this Section 2(b)) until the applicable Event is cured, the Company shall pay to
each Holder an additional  amount in cash,  as  liquidated  damages and not as a
penalty,  equal to 1.5% of the  aggregate  purchase  price  paid by such  Holder
pursuant to the Purchase Agreement,  provided, that all periods shall be tolled,
with  respect to a Holder,  by the number of Trading  Days in excess of ten (10)
during which such Holder fails to provide the Company with information regarding
such  Holder  and the  Registrable  Securities  held by such  Holder  which  was
reasonably  requested by the Company in order to effect the registration of such
Holder's Registrable  Securities  (provided further,  that in the event that the
Commission's  staff takes the  position in written  comments to the Company that
such  failure  precludes  such staff from  declaring  a  Registration  Statement

                                       3
<PAGE>

effective,  then such  Holder's  Registrable  Securities  may be excluded by the
Company from such Registration Statement).  It shall be a condition precedent to
the  obligations of the Company to pay any liquidated  damages  pursuant to this
Section 2 with  respect to the  Registrable  Securities  of any Holder that such
Holder shall furnish to the Company such  information  regarding  itself and the
Registrable  Securities  held by it. If the Company fails to pay any  liquidated
damages  pursuant  to this  Section  in full  within  seven  days after the date
payable, the Company will pay interest thereon at a rate of 12% per annum (or if
the maximum  amount that is permitted to be paid by  applicable  law is a lesser
amount,  such lesser  amount) to the Holder,  accruing  daily from the date such
liquidated  damages are due until such amounts,  plus all such interest thereon,
are paid in full.  The  liquidated  damages  pursuant to the terms  hereof shall
apply on a pro rata  basis for any  portion  of a month  prior to the cure of an
Event.  Notwithstanding the foregoing, after such time as the Company shall have
become  obligated  pursuant to this Section 3(b) to any Holder to make  payments
(and  shall  have made  such  payments)  in the  aggregate  (excluding  for such
purposes payments of any interest  thereon) of 5.0% of the aggregate  Investment
Amount paid by such Holder for Shares pursuant to the Purchase  Agreement,  then
the amount of liquidated  damages to be calculated in accordance  with the above
sentences shall thereafter for such Holder be reduced from 1.0% to 0.5% and from
1.5% to 1.0%,  respectively,  with respect to all such liquidated damages (other
than  with  respect  to  interest  thereon)  accruing  in  excess of 5.0% of the
aggregate Investment Amount paid by such Holder for such Shares.

      Registration Procedures

            In connection with the Company's registration obligations hereunder,
the Company shall:

                  (i) Not less than five (5) Trading Days prior to the filing of
a  Registration  Statement  or  any  related  Prospectus  or  any  amendment  or
supplement thereto, furnish to the Holders copies of all such documents proposed
to be filed which documents (other than those incorporated by reference) will be
subject to the review of such Holders. The Company shall not file a Registration
Statement or any such  Prospectus or any  amendments or  supplements  thereto to
which the Holders of a majority of the Registrable  Securities  shall reasonably
object  in  writing  in good  faith  unless  and until the  Company  shall  have
reasonably responded to the written comments of such Holders, including, without
limitation, by making such changes to such Registration Statement or any related
Prospectus or any amendment thereto as are necessary to reasonably  address such
objection.

                                       4
<PAGE>

                  (ii) (A) Prepare and file with the Commission such amendments,
including  post-effective  amendments,  to each  Registration  Statement and the
Prospectus  used in  connection  therewith  as may be necessary to (x) keep such
Registration  Statement  continuously effective as to the applicable Registrable
Securities  for its  Effectiveness  Period,  and  (y)  include  any  Registrable
Securities  held by any person who becomes a successor  or assign of a Holder (a
"Successor  Holder") in  accordance  with Section 6(e) hereof and Section 6.6 of
the Purchase  Agreement;  such amendment shall be filed promptly after notice of
transfer by a Holder to such  Successor  Holder has been provided to the Company
(provided,  that if the inclusion of Registrable  Securities held by a Successor
Holder may be accomplished by a Prospectus supplement,  the Company may, in lieu
of filing an amendment to the Registration Statement,  promptly prepare and file
pursuant  to Rule  424  such  Prospectus  supplement);  (B)  cause  the  related
Prospectus to be amended or supplemented by any required Prospectus  supplement,
and as so  supplemented or amended to be filed pursuant to Rule 424; (C) respond
as promptly as reasonably possible, and in any event within ten Trading Days, to
any comments  received  from the  Commission  with respect to each  Registration
Statement  or any  amendment  thereto  and, as promptly as  reasonably  possible
provide the Holders true and complete copies of all  correspondence  from and to
the  Commission  relating to such  Registration  Statement  that pertains to the
Holders as Selling  Stockholders  but not any comments  that would result in the
disclosure to the Holders of material and non-public  information concerning the
Company;  (D) prepare and file with the Commission such additional  Registration
Statements in order to register for resale under the  Securities  Act all of the
Registrable  Securities;  and (E)  comply  in all  material  respects  with  the
provisions  of the  Securities  Act and the  Exchange  Act with  respect to each
Registration Statement and the disposition of all Registrable Securities covered
by each Registration Statement.

                  (iii)  Notify the Holders in writing no later than two Trading
Days following the day (A)(x) when the Commission  notifies the Company  whether
there  will be a  "review"  of such  Registration  Statement  and  whenever  the
Commission comments in writing on such Registration Statement (the Company shall
provide to each of the Holders true and complete  copies thereof and all written
responses thereto that pertain to the Holders as Selling  Stockholders or to the
Plan of Distribution,  but not information which the Company reasonably believes
would constitute material and non-public  information);  and (y) with respect to
each Registration Statement or any post-effective  amendment,  when the same has
become  effective;  (B) of any request by the Commission or any other Federal or
state  governmental  authority for  amendments or  supplements to a Registration
Statement or  Prospectus  or for  additional  information  that  pertains to the
Holders as Selling Stockholders or the Plan of Distribution; (C) of the issuance
by  the  Commission  of  any  stop  order  suspending  the  effectiveness  of  a
Registration  Statement covering any or all of the Registrable Securities or the
initiation  of any  Proceedings  for that  purpose;  (D) of the  receipt  by the
Company of any notification  with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any  jurisdiction,  or the  initiation or threatening of any Proceeding for such
purpose;  and (E) subject to Section  3(b),  of the  occurrence  of any event or
passage of time that makes the financial  statements  included in a Registration
Statement  ineligible  for  inclusion  therein  or any  statement  made  in such
Registration  Statement or Prospectus or any document  incorporated or deemed to
be  incorporated  therein by reference  untrue in any  material  respect or that
requires  any  revisions to such  Registration  Statement,  Prospectus  or other
documents so that, in the case of such Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue  statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading.

                                       5
<PAGE>

                  (iv) Use its reasonable best efforts to avoid the issuance of,
or, if  issued,  to  obtain  the  withdrawal  of (A) any  order  suspending  the
effectiveness  of a  Registration  Statement,  or  (B)  any  suspension  of  the
qualification  (or  exemption  from  qualification)  of any  of the  Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

                  (v)  Furnish  to each  Holder,  without  charge,  at least one
conformed copy of each Registration Statement and each amendment thereto and all
exhibits to the extent  requested  by such Person  (including  those  previously
furnished  or  incorporated  by  reference)  promptly  after the  filing of such
documents with the Commission.

                  (vi) Promptly deliver to each Holder,  without charge, as many
copies of each  Prospectus  or  Prospectuses  and each  amendment or  supplement
thereto as such Holders may reasonably  request.  The Company hereby consents to
the use of such  Prospectus and each amendment or supplement  thereto by each of
the selling  Holders in connection with the offering and sale of the Registrable
Securities covered by such Prospectus and any amendment or supplement thereto.

                  (vii) Prior to any public offering of Registrable  Securities,
use its  reasonable  best efforts to register or qualify or  cooperate  with the
selling  Holders  in  connection  with the  registration  or  qualification  (or
exemption  from  such   registration  or   qualification)  of  such  Registrable
Securities  for offer and sale  under the  securities  or Blue Sky laws of those
jurisdictions  within the United  States  identified  by each  Purchaser on such
Purchaser's  signature  page to the Purchase  Agreement,  and thereafter to keep
each such  registration  or  qualification  (or exemption  therefrom)  effective
during  the  Effectiveness  Period,  and to do any and all other  acts or things
necessary or advisable to enable the  disposition in such  jurisdictions  of the
Registrable Securities covered by the Registration  Statements;  provided,  that
the Company shall not be required to qualify  generally to do business or file a
general consent to service of process in any  jurisdiction  where it is not then
so qualified or subject the Company to any material tax in any such jurisdiction
where it is not then so subject .

                  (viii)  Cooperate  with the Holders to  facilitate  the timely
preparation and delivery of certificates  representing Registrable Securities to
be  delivered  to a purchaser  pursuant to the  Registration  Statements,  which
certificates  shall  be free of all  restrictive  legends,  and to  enable  such
Registrable  Securities to be in such denominations and registered in such names
as any such Holders may request.

                  (ix) Upon the occurrence of any event  contemplated by Section
3(a)(iii)(E),  as promptly  as  reasonably  possible,  prepare a  supplement  or
amendment,  including a post-effective  amendment,  to the affected Registration
Statements  or  a  supplement   to  the  related   Prospectus  or  any  document
incorporated  or deemed to be  incorporated  therein by reference,  and file any
other  required  document so that,  as  thereafter  delivered,  no  Registration
Statement nor any Prospectus will contain an untrue statement of a material fact
or omit to state a material fact  required to be stated  therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading.

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<PAGE>

                  (x) Comply with all  applicable  rules and  regulations of the
Commission.

            (b)  In  connection  with  the  Company's  registration  obligations
hereunder, the Company may require each selling Holder to furnish to the Company
a certified  statement as to the number of shares of Common  Stock  beneficially
owned by such Holder and any Affiliate  thereof and as to any other  information
for  such  Holder  which  the  Commission   requires  to  be  disclosed  in  any
Registration Statements. For not more than twenty (20) consecutive days or for a
total of not more than  forty (40) days in any twelve  (12)  month  period,  the
Company  may  suspend the use of any  Prospectus  included  in any  Registration
Statement  in   connection   with  any  of  the  events   described  in  Section
3(a)(iii)(B)-(E) (an "Allowed Delay"); provided, that the Company shall promptly
(a) notify the Holders in writing of the existence of (but in no event,  without
the prior written consent of a Holder, shall the Company disclose to such Holder
any of the facts or circumstances  regarding)  material  non-public  information
giving rise to an Allowed Delay,  (b) advise the Holders in writing to cease all
sales under the  Registration  Statement  until the end of the Allowed Delay and
(c) use  reasonable  efforts  to  terminate  an  Allowed  Delay as  promptly  as
practicable.  The periods set forth in Section  2(b) shall not be tolled  during
any Allowed Delay.

      Registration  Expenses.  All fees and expenses  incident to the  Company's
performance of its obligation  under this Agreement  (excluding any underwriting
discounts  and  selling  commissions  and all legal fees and  expenses  of legal
counsel for any Holder,  other than one counsel  designated by the Holders of no
less than a majority of the Registrable Securities then outstanding,  whose fees
and expenses shall be borne by the Company up to an aggregate amount of $20,000)
shall be borne by the Company whether or not any Registrable Securities are sold
pursuant to a Registration  Statement.  The fees and expenses referred to in the
foregoing sentence shall include,  without limitation,  (i) all registration and
filing fees (including, without limitation, fees and expenses (A) payable to the
Commission in connection with the filing of a Registration  Statement,  (B) with
respect  to filings  required  to be made with the  Trading  Market on which the
Common Stock is then listed for trading,  and (C) in compliance  with applicable
state  securities  or Blue Sky laws),  (ii)  printing and  duplicating  expenses
(including,   without   limitation,   expenses  of  printing   certificates  for
Registrable   Securities  and  of  printing  prospectuses  if  the  printing  of
prospectuses  is  reasonably  requested  by the  holders  of a  majority  of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses,  (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance,  if the Company so desires such
insurance,  and (vi) fees and  expenses  of all other  Persons  retained  by the
Company in connection with the consummation of the transactions  contemplated by
this  Agreement.  In addition,  the Company shall be responsible  for all of its
internal   expenses   incurred  in  connection  with  the  consummation  of  the
transactions contemplated by this Agreement (including,  without limitation, all
salaries  and  expenses  of its  officers  and  employees  performing  legal  or
accounting  duties),  the  expense of any annual or other audit or review of its
financial  statements and the fees and expenses  incurred in connection with the
listing of the  Registrable  Securities on any  securities  exchange as required
hereunder.

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<PAGE>

      Indemnification.

            Indemnification by the Company.  The Company shall,  notwithstanding
any termination of this Agreement,  indemnify and hold harmless each Holder, the
officers,   directors,   agents,   investment   advisors,   partners,   members,
shareholders  and  employees of each of them,  each Person who controls any such
Holder  (within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act) and the officers, directors, agents and employees of each such
controlling  Person, to the fullest extent permitted by applicable law, from and
against any and all losses,  claims,  damages,  liabilities,  costs  (including,
without  limitation,  reasonable costs of preparation and reasonable  attorneys'
fees) and expenses  (collectively,  "Losses"),  as  incurred,  arising out of or
relating to any untrue or alleged untrue  statement of a material fact contained
in any Registration Statement,  any Prospectus or in any amendment or supplement
thereto or in any preliminary  prospectus,  or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or
necessary  to make the  statements  therein  (in the case of any  Prospectus  or
supplement  thereto,  in light of the circumstances  under which they were made)
not  misleading,  except to the  extent,  but only to the  extent  (1) that such
untrue statements or omissions are based solely upon information  regarding such
Holder  furnished  in writing to the  Company by such Holder  expressly  for use
therein,  or to the extent that such information  relates to such Holder or such
Holder's  proposed  method of  distribution  of  Registrable  Securities and was
reviewed and expressly  approved in writing by such Holder  expressly for use in
the  Registration  Statement (it being  understood that each Holder has approved
Annex A  hereto  for this  purpose),  such  Prospectus  or in any  amendment  or
supplement thereto, (2) arising from any offer or sale of Registrable Securities
during a  period  in which  the  Company  has  suspended  use of the  Prospectus
pursuant to Section  3(c)(ii)-(v)  and of which  suspension such Holder has been
provided  notice  by the  Company  prior to such  offer or sale,  or (3) if such
Holder  fails to  deliver,  within the time  required by the  Securities  Act, a
Prospectus  that is  amended or  supplemented,  to the  extent,  but only to the
extent, that such Prospectus,  as amended or supplemented,  would have corrected
the untrue  statement or omission or alleged  untrue  statement or omission of a
material fact giving rise to such Loss contained in the Prospectus  delivered by
such Holder,  so long as the Prospectus,  as amended or  supplemented,  has been
delivered  to such  Holder by the  Company  reasonably  prior to such time.  The
Company  shall  notify  the  Holders  promptly  of the  institution,  threat  or
assertion of any Proceeding of which the Company is aware in connection with the
transactions contemplated by this Agreement.

            Indemnification by Holders.  Each Holder shall,  notwithstanding any
termination  of this  Agreement,  severally and not jointly,  indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange  Act),  and the  directors,  officers,  agents or
employees  of such  controlling  Persons,  to the fullest  extent  permitted  by
applicable law, from and against all Losses, as incurred,  arising solely out of
or based solely upon:  any untrue  statement of a material fact contained in any
Registration  Statement,  any  Prospectus,  or in any  amendment  or  supplement
thereto,  or  arising  solely  out of or based  solely  upon any  omission  of a
material fact required to be stated  therein or necessary to make the statements
therein (in the case of any  Prospectus or supplement  thereto,  in light of the
circumstances under which they were made) not misleading to the extent, but only
to the extent (1) that such untrue statements or omissions are based solely upon
information  regarding  such Holder  furnished in writing to the Company by such
Holder expressly for use therein, or to the extent that such information relates
to such Holder or such Holder's  proposed  method of distribution of Registrable
Securities  and was  reviewed and  expressly  approved in writing by such Holder
expressly for use in the  Registration  Statement (it being understood that each

                                       8
<PAGE>

Holder has approved Annex A hereto for this purpose),  such Prospectus or in any
amendment  or  supplement  thereto,  (2)  arising  from  any  offer  or  sale of
Registrable Securities during a period in which the Company has suspended use of
the Prospectus  pursuant to Section  3(c)(ii)-(v)  and of which  suspension such
Holder has been  provided  notice by the Company prior to such offer or sale, or
(3) if such Holder fails to deliver,  within the time required by the Securities
Act, a Prospectus that is amended or supplemented,  to the extent, but solely to
the  extent,  that such  Prospectus,  as  amended  or  supplemented,  would have
corrected  the untrue  statement  or omission  or alleged  untrue  statement  or
omission of a material fact giving rise to such Loss contained in the Prospectus
delivered by such Holder, so long as the Prospectus, as amended or supplemented,
has been delivered to such Holder by the Company  reasonably prior to such time.
In no event shall the  liability of any selling  Holder  hereunder be greater in
amount than the dollar  amount of the net proceeds  received by such Holder upon
the  sale of the  Registrable  Securities  giving  rise to such  indemnification
obligation.

            Conduct of Indemnification  Proceedings.  If any Proceeding shall be
brought or asserted  against  any Person  entitled to  indemnity  hereunder  (an
"Indemnified  Party"),  such Indemnified  Party shall promptly notify the Person
from whom  indemnity is sought (the  "Indemnifying  Party") in writing,  and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably  satisfactory to the Indemnified Party and the payment of all
fees and expenses  incurred in connection  with the defense  thereof;  provided,
that the failure of any Indemnified  Party to give such notice shall not relieve
the  Indemnifying  Party of its  obligations  or  liabilities  pursuant  to this
Agreement,  except and only to the extent that it shall be finally determined by
a court of competent  jurisdiction (which determination is not subject to appeal
or further  review)  that such failure  shall have  proximately  and  materially
adversely prejudiced the Indemnifying Party.

            An Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense  thereof,  but the fees
and expenses of such counsel shall be at the expense of such  Indemnified  Party
or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such
fees and  expenses;  (2) the  Indemnifying  Party shall have failed  promptly to
assume  the  defense  of  such  Proceeding  and  to  employ  counsel  reasonably
satisfactory to such Indemnified Party in any such Proceeding;  or (3) the named
parties to any such Proceeding  (including any impleaded  parties)  include both
such Indemnified  Party and the Indemnifying  Party, and such Indemnified  Party
shall have been  advised by counsel  that a conflict  of  interest  is likely to
exist if the same  counsel  were to  represent  such  Indemnified  Party and the
Indemnifying  Party (in which  case,  if such  Indemnified  Party  notifies  the
Indemnifying  Party in writing that it elects to employ separate  counsel at the
expense of the Indemnifying  Party,  the  Indemnifying  Party shall not have the
right to assume the defense  thereof and such counsel shall be at the expense of
the Indemnifying  Party),  provided,  that the  Indemnifying  Party shall not be
liable for the fees and expenses of more than one separate firm of attorneys (in
addition  to  local  counsel)  at any  time  for all  Indemnified  Parties.  The
Indemnifying Party shall not be liable for any settlement of any such Proceeding
effected  without its written  consent,  which consent shall not be unreasonably
withheld.  No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending Proceeding in respect of
which  any  Indemnified  Party  is or  could  have  been a  party,  unless  such
settlement includes an unconditional  release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

                                       9
<PAGE>

            All reasonable fees and expenses of the Indemnified Party (including
reasonable  fees  and  expenses  to  the  extent  incurred  in  connection  with
investigating  or defending such  Proceeding)  shall be paid to the  Indemnified
Party,  as incurred,  within ten Trading Days of written  notice  thereof to the
Indemnifying  Party  (regardless of whether it is ultimately  determined that an
Indemnified Party is not entitled to indemnification  hereunder;  provided, that
the  Indemnifying  Party may require  such  Indemnified  Party to  undertake  to
reimburse  all such fees and  expenses  to the extent it is  finally  judicially
determined  that  such  Indemnified  Party is not  entitled  to  indemnification
hereunder).

            Contribution.  If a claim for indemnification  under Section 5(a) or
5(b) is  unavailable  to an  Indemnified  Party (by  reason of public  policy or
otherwise),   then  each  Indemnifying  Party,  in  lieu  of  indemnifying  such
Indemnified  Party,  shall  contribute  to the  amount  paid or  payable by such
Indemnified  Party  as a  result  of  such  Losses,  in  such  proportion  as is
appropriate  to  reflect  the  relative  fault  of the  Indemnifying  Party  and
Indemnified  Party in connection with the actions,  statements or omissions that
resulted in such Losses as well as any other relevant equitable  considerations.
The relative fault of such  Indemnifying  Party and  Indemnified  Party shall be
determined by reference to, among other things,  whether any action in question,
including any untrue or alleged untrue  statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information  supplied by, such Indemnifying  Party or Indemnified Party, and the
parties'  relative intent,  knowledge,  access to information and opportunity to
correct or prevent such action, statement or omission.

            The parties  hereto agree that it would not be just and equitable if
contribution  pursuant  to  this  Section  5(d)  were  determined  by  pro  rata
allocation or by any other method of allocation  that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds  actually  received  by such  Holder  from the sale of the  Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has  otherwise  been  required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

            The indemnity and contribution  agreements contained in this Section
are in addition to any liability that the  Indemnifying  Parties may have to the
Indemnified Parties.

      Miscellaneous

            Remedies. In the event of a breach by the Company or by a Holder, of
any of their  obligations under this Agreement,  each Holder or the Company,  as
the case may be, in addition to being entitled to exercise all rights granted by
law and under this Agreement, including recovery of damages, will be entitled to
specific  performance of its rights under this  Agreement.  The Company and each
Holder agree that monetary damages would not provide  adequate  compensation for
any losses incurred by reason of a breach by it of any of the provisions of this
Agreement  and  hereby  further  agrees  that,  in the event of any  action  for
specific  performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

                                       10
<PAGE>

            No  Piggyback on  Registrations.  Neither the Company nor any of its
security  holders (other than the Purchasers in such capacity  pursuant  hereto)
may include  securities of the Company in the Registration  Statement other than
the Registrable Securities,  and the Company shall not after the date hereof and
until the Registration Statement is declared effective, enter into any agreement
providing any such right to any of its security holders. Except pursuant to that
certain  Registration Rights Agreement dated September 29, 2004 by and among the
Company  and the other  signatories  thereto,  the  Company  has not  previously
entered into any agreement granting any registration  rights with respect to any
of its securities to any Person which have not been fully satisfied.

            Purchasers'  Piggy-Back  Registrations.  If at any  time  after  the
Filing Date and prior to the expiration of the Effectiveness Period there is not
an effective  Registration  Statement covering all of the Registrable Securities
and the Company  shall  determine  to prepare and file,  or has filed,  with the
Commission a registration  statement relating to an offering for its own account
or the  account  of  others  under  the  Securities  Act  of  any of its  equity
securities,  other than (i) on Form S-4 or Form S-8 (each as  promulgated  under
the Securities Act) or their then equivalents  relating to equity  securities to
be issued solely in connection with any acquisition of any entity or business or
equity  securities  issuable in connection  with stock option or other  employee
benefit plans or (ii) on Form S-3 (as  promulgated  under the Securities Act) or
its then  equivalent  relating  to  equity  securities  to be  issued  solely in
connection  with the Company's  dividend  reinvestment  and stock purchase plan,
then the Company shall send to each Holder written notice of such  determination
and, if within fifteen days after receipt of such notice,  any such Holder shall
so request in writing, the Company shall include in such registration  statement
all or any  part of such  Registrable  Securities  such  Holder  requests  to be
registered,  subject to customary underwriter cutbacks applicable to all holders
of registration rights.

            Amendments and Waivers. No provision of this Agreement may be waived
or amended except in a written  instrument  signed by the Company and the Holder
or Holders (as  applicable)  of no less than a majority of the then  outstanding
Registrable Securities.  No waiver of any default with respect to any provision,
condition or requirement  of this  Agreement  shall be deemed to be a continuing
waiver in the  future or a waiver of any  subsequent  default or a waiver of any
other  provision,  condition  or  requirement  hereof,  nor  shall  any delay or
omission of either  party to exercise any right  hereunder in any manner  impair
the exercise of any such right.

            Notices.  Any and all notices or other  communications or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and effective on the earliest of (i) the date of  transmission,  if
such notice or  communication is delivered via facsimile at the facsimile number
specified in this Section  prior to 5:00 p.m.  (New York time) on a Business Day
and  confirmation of such delivery is received,  (ii) the Business Day after the
date of transmission, if such notice or communication is delivered via facsimile
at the facsimile  telephone  number  specified in this Agreement later than 5:00
p.m.  (New  York  time) on the date of  transmission  and  confirmation  of such
delivery is received, (iii) the Business Day following the date of transmission,
if sent by nationally  recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is  required  to be given.  The address
for such notices and communications shall be as follows:

                                       11
<PAGE>

      If to the Company:      Center Bancorp, Inc.
                              2455 Morris Avenue
                              Union, NJ  07083-0007
                              Telephone:  (908) 688-9500
                              Facsimile:  (908) 687-4992
                              Attention:  Chief Executive Officer

           With a copy to:    Lowenstein Sandler PC
                              65 Livingston Avenue
                              Roseland, New Jersey 07068
                              Telephone:  (973) 597-2350
                              Facsimile:  (973) 597-2351 (fax)
                              Attention:  Peter H. Ehrenberg, Esquire

      If to a Purchaser:      To the address set forth under such
                              Purchaser's
                              name on the signature pages hereto.

      If to any other Person who is then the registered Holder:

                              To the address of such Holder as it appears in the
                              stock transfer books of the Company

or such other  address as may be designated  in writing  hereafter,  in the same
manner, by such Person.

            Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and permitted  assigns of each of the parties
and shall  inure to the benefit of each  Holder.  The Company may not assign its
rights or  obligations  hereunder  without  the prior  written  consent  of each
Holder,  except to any surviving or successor  corporation in connection  with a
merger or  consolidation of the Company with another  corporation,  after notice
duly given by the  Company  in writing to each  Holder at least 20 days prior to
the  consummation  of such  transaction.  Each Holder may assign  such  Holder's
rights  hereunder  in the  manner  and to the  Persons  as  permitted  under the
Purchase Agreement

            Execution and  Counterparts.  This  Agreement may be executed in any
number of counterparts,  each of which when so executed shall be deemed to be an
original  and, all of which taken  together  shall  constitute  one and the same
Agreement.   In  the  event  that  any   signature  is  delivered  by  facsimile
transmission,  such  signature  shall create a valid  binding  obligation of the
party  executing  (or on whose behalf such  signature is executed) the same with
the same  force and  effect as if such  facsimile  signature  were the  original
thereof.

            Governing Law. All questions concerning the construction,  validity,
enforcement  and  interpretation  of this  Agreement  shall be  governed  by and
construed and enforced in accordance  with the internal laws of the State of New
York,  without regard to the principles of conflicts of law thereof.  Each party
agrees that all  Proceedings  concerning  the  interpretation,  enforcement  and
defense of the  transactions  contemplated  by this Agreement  (whether  brought
against a party hereto or its respective Affiliates, employees or agents) may be
commenced in the state and federal  courts sitting in the State of New York (the

                                       12
<PAGE>

"New  York  Courts").  Each  party  hereto  hereby  irrevocably  submits  to the
non-exclusive  jurisdiction  of the New York Courts for the  adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein,  and hereby  irrevocably  waives,  and agrees not to
assert in any  Proceeding,  any claim that it is not  personally  subject to the
jurisdiction  of any New York Court,  or that such Proceeding has been commenced
in an improper or  inconvenient  forum.  Each party  hereto  hereby  irrevocably
waives  personal  service of process and consents to process being served in any
such  Proceeding by mailing a copy thereof via  registered or certified  mail or
overnight  delivery  (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient  service of process and notice  thereof.  Nothing
contained  herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably  waives, to
the fullest  extent  permitted by applicable  law, any and all right to trial by
jury in any  Proceeding  arising  out of or relating  to this  Agreement  or the
transactions contemplated hereby. If either party shall commence a Proceeding to
enforce any  provisions of this  Agreement,  then the  prevailing  party in such
Proceeding  shall be reimbursed by the other party for its  attorney's  fees and
other  costs and  expenses  incurred  with the  investigation,  preparation  and
prosecution of such Proceeding.

            Cumulative Remedies. The remedies provided herein are cumulative and
not exclusive of any remedies provided by law.

            Severability.  If any term,  provision,  covenant or  restriction of
this  Agreement  is held by a court of  competent  jurisdiction  to be  invalid,
illegal,  void  or  unenforceable,  the  remainder  of  the  terms,  provisions,
covenants  and  restrictions  set forth  herein  shall  remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto  shall use their  reasonable  efforts to find and  employ an  alternative
means to achieve the same or substantially  the same result as that contemplated
by such term,  provision,  covenant or restriction.  It is hereby stipulated and
declared to be the  intention of the parties  that they would have  executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

            Headings.  The headings in this  Agreement  are for  convenience  of
reference only and shall not limit or otherwise affect the meaning hereof.

            Independent   Nature  of  Holders'   Obligations  and  Rights.   The
obligations  of each  Holder  hereunder  is  several  and  not  joint  with  the
obligations of any other Holder hereunder, and no Holder shall be responsible in
any way for the  performance of the  obligations of any other Holder  hereunder.
Nothing contained herein or in any other agreement or document  delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto,  shall be
deemed to  constitute  the Holders as a  partnership,  an  association,  a joint
venture or any other kind of entity,  or create a  presumption  that the Holders
are in any way  acting  in  concert  with  respect  to such  obligations  or the
transactions  contemplated by this Agreement.  Each Holder  acknowledges that no
other  Holder  has  acted  as agent  for  such  Holder  in  connection  with the
investment contemplated by the Purchase Agreement and this Agreement and that no
Holder will be acting as agent of such Holder in connection  with monitoring its
investment  in  the  Shares  or  enforcing  its  rights  under  the  Transaction
Documents.  Each  Holder  shall be  entitled  to protect and enforce its rights,
including  without  limitation the rights arising out of this Agreement,  and it
shall not be necessary for any other Holder to be joined as an additional  party
in any proceeding for such purpose.

                                       13
<PAGE>

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                          SIGNATURE PAGES TO FOLLOW]

                                       14
<PAGE>

               SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

            IN WITNESS  WHEREOF,  the parties have  executed  this  Registration
Rights Agreement as of the date first written above.

                                    CENTER BANCORP, INC.

                                    By:  /s/ Anthony C. Weagley
                                         ---------------------------
                                    Name:   Anthony C. Weagley
                                    Title:  Vice President and Treasurer

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGES FOR PURCHASERS FOLLOW]

                                       15
<PAGE>

            IN WITNESS  WHEREOF,  the parties have  executed  this  Registration
Rights Agreement as of the date first written above.

                                    BAY POND INVESTORS (BERMUDA) L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    BAY POND PARTNERS, L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    IVY  MA   HOLDINGS   1,   LTD  (A   CAYMAN
                                    CORPORATION)

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    IVY MA HOLDINGS 4, LLC

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    KEEFE-RAINBOW   OFFSHORE   FUND,   LTD  (A
                                    CAYMAN CORPORATION)

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    KEEFE-RAINBOW PARTNERS LP

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    MOORS AND MENDON MASTER FUND LP

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    NORGUARD INSURANCE COMPANY

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    OZ MASTER FUND, LTD.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    ROYAL INVESTMENTS OF DELAWARE

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    WOLF CREEK INVESTORS (BERMUDA) L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

                                    WOLF CREEK PARTNERS, L.P.

                                    By: /s/ Authorized Officer
                                        --------------------------

               SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                     ANNEX A

                              PLAN OF DISTRIBUTION

      The Selling Stockholders and any of their pledgees,  donees, assignees and
successors-in-interest  may, from time to time,  sell any or all of their shares
of common stock on any stock exchange,  market or trading  facility on which the
shares  are traded or in private  transactions.  These  sales may be at fixed or
negotiated  prices.  The  Selling  Stockholders  may  use any one or more of the
following methods when selling shares:

o     ordinary   brokerage   transactions   and   transactions   in  which   the
      broker-dealer solicits purchasers;

o     block trades in which the broker-dealer will attempt to sell the shares as
      agent but may  position  and resell a portion of the block as principal to
      facilitate the transaction;

o     purchases by a broker-dealer as principal and resale by the  broker-dealer
      for its account;

o     an exchange  distribution  in accordance  with the rules of the applicable
      exchange;

o     privately negotiated transactions;

o     short sales;

o     sales  by  broker-dealers  pursuant  to  an  agreement  with  the  Selling
      Stockholders  to sell a specified  number of such  shares at a  stipulated
      price per share;

o     a combination of any such methods of sale; and

o     any other method permitted pursuant to applicable law.

      The Selling  Stockholders  may also sell  shares  under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

      Broker-dealers  engaged by the Selling  Stockholders may arrange for other
brokers-dealers to participate in sales.  Broker-dealers may receive commissions
or discounts from the Selling  Stockholders  (or, if any  broker-dealer  acts as
agent  for the  purchaser  of  shares,  from the  purchaser)  in  amounts  to be
negotiated.  The  Selling  Stockholders  do not  expect  these  commissions  and
discounts to exceed what is customary in the types of transactions involved.

      The Selling  Stockholders may from time to time pledge or grant a security
interest in some or all of the shares of Common Stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured
parties may offer and sell  shares of Common  Stock from time to time under this
prospectus,  or under an amendment or supplement to this prospectus amending the
list of  Selling  Stockholders  to  include  the  pledgee,  transferee  or other
successors in interest as Selling Stockholders under this prospectus.
<PAGE>

      Upon the Company being notified in writing by a Selling  Stockholder  that
any material arrangement has been entered into with a broker-dealer for the sale
of shares of common stock  through a block  trade,  special  offering,  exchange
distribution  or  secondary  distribution  or purchase by a broker or dealer,  a
supplement to this  prospectus  will be filed,  if required,  disclosing (i) the
name of each such Selling Stockholder and of the participating broker-dealer(s),
(ii) the number of shares  involved,  (iii) the price at which  such  shares are
sold,  (iv) the  commissions  paid or discounts or  concessions  allowed to such
broker-dealer(s),  where  applicable,  (v) that  such  broker-dealer(s)  did not
conduct any  investigation  to verify the information set out or incorporated by
reference in this prospectus,  and (vi) other facts material to the transaction.
In addition, upon the Company being notified in writing by a Selling Stockholder
that a donee or pledge  intends to sell more than 500 shares of common stock,  a
supplement to this  prospectus will be filed if then required in accordance with
applicable securities law.

      The Selling  Stockholders  also may transfer the shares of common stock in
other circumstances, in which case the transferees, pledgees or other successors
in  interest  will  be the  selling  beneficial  owners  for  purposes  of  this
prospectus.

      The  Selling  Stockholders  and any  broker-dealers  or  agents  that  are
involved  in selling  the shares may be deemed to be  "underwriters"  within the
meaning of the Securities Act in connection with such sales. In such event,  any
commissions  received  by such  broker-dealers  or agents  and any profit on the
resale  of the  shares  purchased  by  them  may be  deemed  to be  underwriting
commissions or discounts under the Securities Act. Each Selling  Stockholder has
represented  and warranted to the Company that it does not have any agreement or
understanding,  directly or indirectly, with any person to distribute the shares
of common stock.

      The Company has advised the Selling Stockholders that they are required to
comply with Regulation M promulgated  under the Exchange Act during such time as
they may be engaged in a  distribution  of the shares.  The foregoing may affect
the marketability of the common stock.

      The  Company is  required  to pay all fees and  expenses  incident  to the
registration  of the shares.  The Company  has agreed to  indemnify  the Selling
Stockholders against certain losses, claims, damages and liabilities,  including
liabilities under the Securities Act.

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