Document:

ex4-10.htm

     

    
      

      

    

    
 

    Exhibit
      4.10

    

    PURCHASE
      AGREEMENT

    

    AMONG

    

    GREATER
      COMMUNITY BANCORP,

    

    GCB
      CAPITAL TRUST III

    

    

    

    

    

    AND

    

    

    TWE,
      LTD.,

    

    AS
      PURCHASER

    

    ________________

     

    Dated
      as
      of July 2, 2007

     

    ________________

     

     

     

    
      

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PURCHASE
      AGREEMENT

    ($24,000,000
      TRUST PREFERRED SECURITIES)

    

    THIS
      PURCHASE AGREEMENT, dated as of July 2, 2007, is entered into among, Greater
      Community Bancorp, a New Jersey corporation (the “Company”), GCB
      Capital Trust III, a Delaware statutory trust (the “Trust,” and,
      together with the Company, the “Sellers”), and TWE, Ltd., an exempted
      company incorporated under the laws of the Cayman Islands (including any
      assignee thereof, the “Purchaser”).

     

    WITNESSETH:

     

    WHEREAS,
      the Sellers propose to issue and sell an aggregate of
      24,000  Preferred Securities of the Trust, having a stated liquidation
      amount of $1,000 per preferred security, bearing a fixed rate of interest equal
      to 6.96% per annum through the interest payment date in July 2017 and,
      thereafter, a variable rate of interest, per annum, reset quarterly, equal
      to
      LIBOR (as defined in the Indenture (as defined below)) plus 1.40% (the
“Preferred Securities”), to the Purchaser;

     

    WHEREAS,
      the entire proceeds from the sale of the Preferred Securities will be combined
      with the entire proceeds from the sale by the Trust to the Company of its common
      securities (the “Common Securities”), and will be used by the Trust to
      purchase $24,743,000 in principal amount of the unsecured junior subordinated
      notes of the Company (the “Junior Subordinated Notes”);

     

    WHEREAS,
      the Preferred Securities and the Common Securities of the Trust will be issued
      pursuant to the Amended and Restated Trust Agreement (the “Trust
      Agreement”), dated as of the Closing Date (as defined below), among the
      Company, as depositor, Wilmington Trust Company, as property trustee (in such
      capacity, the “Property Trustee”), and as Delaware trustee (in such
      capacity, the “Delaware Trustee”), the Administrative Trustees named
      therein (in such capacities, the “Administrative Trustees”), and the
      holders from time to time of undivided beneficial interests in the assets of
      the
      Trust;

     

    WHEREAS,
      the Preferred Securities will be fully and unconditionally guaranteed on a
      subordinated basis by the Company with respect to distributions and amounts
      payable upon liquidation, redemption or repayment (the “Guarantee”) pursuant and
      subject to the Guarantee Agreement (the “Guarantee Agreement”), to be dated as
      of the Closing Date and executed and delivered by the Company and Wilmington
      Trust Company, as guarantee trustee (the “Guarantee Trustee”), for the benefit
      from time to time of the holders of the Preferred Securities; and

     

    WHEREAS,
      the Junior Subordinated Notes will be issued pursuant to a Junior Subordinated
      Indenture, dated as of the Closing Date (the “Indenture”), between the
      Company, and Wilmington Trust Company, as indenture trustee (in such capacity,
      the “Indenture Trustee”).

     

    NOW,
      THEREFORE, in consideration of the mutual agreements and subject to the terms
      and conditions herein set forth, the parties hereto agree as
      follows:

     

    Section
      1.     Definitions.  The Preferred
      Securities, the Common Securities and the Junior Subordinated Notes are
      collectively referred to herein as the
“Securities.”  This

     

    
      
         

      

      
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    Purchase
      Agreement, the Indenture, the Trust Agreement, the Guarantee Agreement and
      the
      Securities are collectively referred to herein as the “Operative
      Documents.”  All other capitalized terms used but not defined in
      this Purchase Agreement shall have the meanings ascribed thereto in the
      Indenture.

     

    Section
      2.     Purchase and Sale of the Preferred
      Securities.

     

    The
      Sellers agree to sell to the Purchaser, and the Purchaser agrees to purchase
      from the Sellers, the Preferred Securities in the amount (the “Purchase
      Price”) equal to an aggregate of $24,000,000.  In connection with
      the purchase of the Preferred Securities, the Company shall pay no fee to its
      introducing agent (the “Introducing Agent”).  The Purchaser
      shall be responsible for the following expenses:  (i) any rating
      agency costs and expenses, and (ii) any fee payable to the Introducing Agent,
      provided that the Introducing Agent has an agreement with the Purchaser (the
      “Fee”); but shall not be responsible for any fees and expenses set
      forth in Section 7 hereof, unless otherwise provided therein.  The
      Trust shall use the Purchase Price, together with the proceeds from the sale
      of
      the Common Securities, to purchase the Junior Subordinated Notes.

    

    Delivery
      or transfer of, and payment for, the Preferred Securities shall be made at
      11:00
      A.M. New York City time, on July 2, 2007, or such later date (not later than
      August 2, 2007) as the parties may designate (such date and time of delivery
      and
      payment for the Preferred Securities being herein called the “Closing
      Date”).  On the Closing Date, the Preferred Securities shall be
      transferred and delivered to the Purchaser, or its designee, against the payment
      of the Purchase Price to the Sellers made by wire transfer in immediately
      available funds to a U.S. account designated in writing by the
      Company.

    

    Delivery
      of the Preferred Securities shall be made at such location, and in such names
      and denominations, as the Purchaser shall designate in advance of the Closing
      Date.  The Sellers agree to have the Preferred Securities available
      for inspection and checking by the Purchaser in New York City, New York, not
      later than 2:00 P.M. New York City time, on the business day prior to the
      Closing Date.  The closing for the purchase and sale of the Preferred
      Securities shall occur at the offices of Thacher Proffitt & Wood LLP, Two
      World Financial Center, New York, New York 10281, or such other place as the
      parties hereto shall agree.

    

    The
      Preferred Securities shall be sold by the Trust, directly or indirectly, to
      the
      Purchaser without registration of any of the Preferred Securities or the Junior
      Subordinated Notes under the Securities Act of 1933, as amended (the
“Securities Act”), or any other applicable securities laws in reliance
      upon exemptions from the registration requirements of the Securities Act and
      other applicable securities laws.  The Sellers and the Purchaser have
      entered into this Agreement to set forth their understanding as to their
      relationship and their respective rights, duties and obligations.

    

    Upon
      original issuance thereof, the Preferred Securities and Junior Subordinated
      Notes certificates shall each contain a legend as required pursuant to any
      of
      the Operative Documents, including without limitation, a legend stating that
      the
      offer, sale or transfer of the Preferred Securities or the Junior Subordinated
      Notes, as the case may be, will be made only (a) to the issuer thereof, (b)
      to a
      person that the transferor reasonably believes is a “qualified

    
      
         

      

      
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    institutional
      buyer” (as defined in Rule 144A under the Securities Act) in a transaction
      meeting the requirements of Rule 144A, or (c) to an institutional “accredited
      investor” within the meaning of subparagraph (a) (1), (2), (3) or (7) of Rule
      501 under the Securities Act that is acquiring the Preferred Securities or
      the
      Junior Subordinated Notes, as the case may be, for its own account, or for
      the
      account of such an “accredited investor,” for investment purposes and not with a
      view to, or for offer or sale in connection with, any distribution thereof
      in
      violation of the Securities Act, in each case in accordance with any applicable
      securities laws of any state of the United States or any other applicable
      jurisdiction and, in the case of (c) above, subject to the right of the Trust
      and/or the Company, as applicable, to require an opinion of counsel and other
      information satisfactory to each of them.

    

    The
      Purchaser is purchasing the Preferred Securities in its capacity as a warehouse
      entity, and the Purchaser may resell the Preferred Securities to a subsequent
      purchaser (any such purchaser of the Purchaser and, if such purchaser is a
      warehouse entity, the next subsequent purchaser that is not a warehouse entity,
      being referred to hereinafter as a “Subsequent
      Purchaser”).  Upon transfer of the Preferred Securities to a
      Subsequent Purchaser, such Subsequent Purchaser shall be entitled to each of
      the
      benefits of this Agreement, subject to the limitations, qualifications,
      acknowledgments and exceptions contained herein, and shall be entitled to
      enforce the obligations of the Sellers under this Agreement, as fully as if
      the
      Subsequent Purchaser were a party to this Agreement.

    

    Section
      3.     Closing Conditions.  The
      obligations of the parties under this Agreement on the Closing Date are subject
      to the following conditions:

     

    Accuracy
      of Representations and Warranties.  The representations and
      warranties contained in this Agreement, and the statements of the Sellers made
      in any certificates pursuant to this Agreement, shall be accurate as of the
      date
      of delivery of the Preferred Securities.

    

    Opinions
      of Counsel.  On the Closing Date, the Purchaser shall have
      received the following favorable opinions or certificate, as the case may be,
      each dated as of the Closing Date: (a) from Thacher Proffitt & Wood LLP,
      special counsel for the Purchaser and addressed to the Purchaser in
      substantially the form set forth on Exhibit A-1 attached hereto and
      incorporated herein by this reference, (b) either (i) an opinion from Quarles
      & Brady LLP, counsel for the Sellers, or (ii) an opinion from the General
      Counsel or Chief Legal Officer of the Company, or (iii) if the Company does
      not
      have a General Counsel or Chief Legal Officer, an Officers’ Certificate from the
      Chief Executive Officer, President or Executive Vice President of the Company,
      and the Chief Financial Officer, Treasurer or Assistant Treasurer of the
      Company, in each case addressed to the Purchaser in substantially the form
      set
      forth on Exhibit A-2 attached hereto and incorporated herein by this
      reference, (c) from Quarles & Brady LLP , special tax counsel for the
      Sellers and addressed to the Purchaser in substantially the form set forth
      on
Exhibit A-3 attached hereto and incorporated herein by this reference,
      (d) from Morris James LLP, special Delaware counsel to the Trust and addressed
      to the Purchaser and the Sellers, in substantially the form set forth on
Exhibit A-4 attached hereto and incorporated herein by this reference,
      and (e) from Morris James LLP, special counsel to the Indenture Trustee, the
      Property Trustee, the Delaware Trustee and the Guarantee Trustee and addressed
      to the Purchaser and the Sellers, in substantially the form set forth on
Exhibit A-5 attached hereto and incorporated herein

    
      
         

      

      
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    by
      this
      reference.  Each certificate or opinion addressed to the Purchaser
      shall state that a Subsequent Purchaser shall be entitled to rely on such
      opinion.

    

    Officer’s
      Certificate.  The Company shall have furnished to the Purchaser a
      certificate of the Company, signed by its Chief Executive Officer, President
      or
      an Executive Vice President and by the Chief Financial Officer, Treasurer or
      Assistant Treasurer of the Company, and the Trust shall have furnished to the
      Purchaser a certificate of the Trust, signed by an Administrative Trustee of
      the
      Trust, in each case dated the Closing Date, and, in the case of the Company,
      as
      to 3.3.1 and 3.3.2 below and, in the case of the Trust, as to
3.3.1 below:

    

    the
      representations and warranties in this Agreement are true and correct on and
      as
      of the Closing Date with the same effect as if made on the Closing Date, and
      the
      Company and the Trust have complied with all the agreements and satisfied all
      the conditions on either of their part to be performed or satisfied at or prior
      to the Closing Date; and

    

    since
      the
      date of the Financial Statements (as defined below), there has been no material
      adverse change in the condition (financial or other), earnings, business,
      prospects or assets of the Company and its subsidiaries, taken as a whole,
      whether or not arising from transactions occurring in the ordinary course of
      business.

    

    No
      Subsequent Change.  Subsequent to the execution of this Agreement,
      there shall not have been any change, or any development involving a prospective
      change, in or affecting the condition (financial or other), earnings, business,
      prospects or assets of the Company and its subsidiaries, whether or not
      occurring in the ordinary course of business, the effect of which is, in the
      Purchaser’s judgment, so material and adverse as to make it impractical or
      inadvisable to proceed with the purchase of the Preferred
      Securities.

    

    Purchase
      Permitted by Applicable Laws; Legal Investment.  The purchase of
      and payment for the Preferred Securities as described in this Agreement shall
      (a) not be prohibited by any applicable law or governmental regulation, (b)
      not
      subject the Purchaser to any penalty or, in the reasonable judgment of the
      Purchaser, other onerous conditions under or pursuant to any applicable law
      or
      governmental regulation, and (c) be permitted by the laws and regulations of
      the
      jurisdictions to which the Purchaser is subject.

    

    Consents
      and Permits.  The Company and the Trust shall have received all
      consents, permits and other authorizations, and made all such filings and
      declarations, as may be required from any person or entity pursuant to any
      law,
      statute, regulation or rule (federal, state, local and foreign), or pursuant
      to
      any agreement, order or decree to which the Company or the Trust is a party
      or
      to which either is subject, in connection with the transactions contemplated
      by
      this Agreement.

    

    Information.  Prior
      to or on the Closing Date, the Sellers shall have furnished to the Purchaser
      and
      its counsel such further information, certificates, opinions and documents
      as
      the Purchaser or its counsel may reasonably request.

    

    Each
      certificate signed by any trustee of the Trust or any officer of the Company
      and
      delivered to

    
      
         

      

      
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    the
      Purchaser or its counsel in connection with the Operative Documents and the
      transactions contemplated hereby and thereby shall be deemed to be a
      representation and warranty of the Trust and/or the Company, as the case may
      be,
      and not by such trustee or officer in any individual capacity.

    

    Section
      4.     Representations and Warranties of the
      Sellers.  The Sellers jointly and severally represent and warrant
      to the Purchaser as of the date hereof and as of the Closing Date as
      follows:

     

    Securities
      Laws Matters:

    

    Neither
      the Company nor the Trust, nor any of their “Affiliates” (as defined in Rule
      501(b) of Regulation D under the Securities Act (“Regulation D”)), nor
      any person acting on any of their behalf (except for the Introducing Agent,
      as
      to which neither the Company nor the Trust make any representation) has,
      directly or indirectly, made offers or sales of any security, or solicited
      offers to buy any security, under circumstances that would require the
      registration under the Securities Act of any of the Securities.

    

    Neither
      the Company nor the Trust, nor any of their Affiliates, nor any person acting
      on
      its or their behalf (except for the Introducing Agent, as to which neither
      the
      Company nor the Trust make any representation) has (i) offered for sale or
      solicited offers to purchase the Securities, (ii) engaged in any form of general
      solicitation or general advertising (within the meaning of Regulation D) in
      connection with any offer or sale of any of the Securities, or (iii) engaged
      in
      any “directed selling efforts” within the meaning of Regulation S under the
      Securities Act (“Regulation S”) with respect to the
      Securities.

    

    The
      Securities (i) are not and have not been listed on a national securities
      exchange registered under Section 6 of the Securities Exchange Act of 1934,
      as
      amended (the “Exchange Act”), or quoted on a U.S. automated interdealer
      quotation system and (ii) are not of an open-end investment company, unit
      investment trust or face-amount certificate company that are, or are required
      to
      be, registered under Section 8 of the Investment Company Act of 1940, as amended
      (the “Investment Company Act”), and the Securities otherwise satisfy
      the eligibility requirements of Rule 144A(d)(3) promulgated pursuant to the
      Securities Act (“Rule 144A(d)(3)”).

    

    Neither
      the Company nor the Trust is, and, immediately following consummation of the
      transactions contemplated hereby and the application of the net proceeds
      therefrom, neither the Company nor the Trust will be, an “investment company” or
      an entity “controlled” by an “investment company,” in each case within the
      meaning of Section 3(a) of the Investment Company Act.

    

    Neither
      the Company nor the Trust has paid or agreed to pay to any person or entity,
      directly or indirectly, any fees or other compensation for soliciting another
      to
      purchase any of the Securities.

    

    Standing
      and Qualification of the Trust.  The Trust has been duly created
      and is validly existing in good standing as a statutory trust under the Delaware
      Statutory Trust Act, 12

    
      
         

      

      
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    Del.
      C.
§3801, et seq. (the “Statutory Trust Act”) with all requisite power and
      authority to own property and to conduct the business it transacts and proposes
      to transact and to enter into and perform its obligations under the Operative
      Documents to which it is a party.  The Trust is duly qualified to
      transact business as a foreign entity and is in good standing in each
      jurisdiction in which such qualification is necessary, except where the failure
      to so qualify or be in good standing would not have a material adverse effect
      on
      the condition (financial or otherwise), earnings, business, prospects or assets
      of the Trust, whether or not occurring in the ordinary course of
      business.  The Trust is not a party to, or otherwise bound by, any
      agreement other than the Operative Documents.  The Trust is, and under
      current law will continue to be, classified for federal income tax purposes
      as a
      grantor trust and not as an association or publicly traded partnership taxable
      as a corporation.

    

    Trust
      Agreement.  The Trust Agreement has been duly authorized by the
      Company and, on the Closing Date specified in Section 2.2, will have been duly
      executed and delivered by the Company and the Administrative Trustees of the
      Trust, and, assuming due authorization, execution and delivery by the Property
      Trustee and the Delaware Trustee, will be a legal, valid and binding obligation
      of the Company and the Administrative Trustees, enforceable against them in
      accordance with its terms, subject to applicable bankruptcy, insolvency and
      similar laws affecting creditors’ rights generally and to general principles of
      equity.  Each of the Administrative Trustees of the Trust is an
      employee of the Company or one of its subsidiaries and has been duly authorized
      by the Company to execute and deliver the Trust Agreement.  To the
      knowledge of the Company and the Trust, the Trust is not in violation of any
      provision of the Statutory Trust Act.

    

    Guarantee
      Agreement and the Indenture.  The Guarantee Agreement and the
      Indenture have been duly authorized by the Company and, on the Closing Date,
      will have been duly executed and delivered by the Company, and, assuming due
      authorization, execution and delivery by the Guarantee Trustee, in the case
      of
      the Guarantee, and by the Indenture Trustee in the case of the Indenture, will
      be a legal, valid and binding obligation of the Company enforceable against
      it
      in accordance with its terms, subject to applicable bankruptcy, insolvency
      and
      similar laws affecting creditors’ rights generally and to general principles of
      equity.

    

    Preferred
      Securities and Common Securities.  The Preferred Securities and
      the Common Securities have been duly authorized by the Trust and, when issued
      and delivered against payment therefor on the Closing Date to the Purchaser
      in
      accordance with this Agreement, in the case of the Preferred Securities, and
      to
      the Company in accordance with the Common Securities Subscription Agreement
      between the Company and the Trust, dated as of the Closing Date, in the case
      of
      the Common Securities, will be validly issued, fully paid and nonassessable
      and
      will represent undivided beneficial interests in the assets of the Trust
      entitled to the benefits of the Trust Agreement, enforceable against the Trust
      in accordance with their terms, subject to applicable bankruptcy, insolvency
      and
      similar laws affecting creditors’ rights generally and to general principles of
      equity.  The issuance of the Securities is not subject to preemptive
      or other similar rights.  On the Closing Date, all of the issued and
      outstanding Common Securities will be directly owned by the Company free and
      clear of any pledge, security interest, claim, lien or other encumbrance (each,
      a “Lien”).

    
      
         

      

      
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    Junior
      Subordinated Notes.  The Junior Subordinated Notes have been duly
      authorized by the Company and, on the Closing Date, will have been duly executed
      and delivered to the Indenture Trustee for authentication in accordance with
      the
      Indenture and, when authenticated in the manner provided for in the Indenture
      and delivered to the Trust against payment therefor in accordance with the
      Junior Subordinated Note Subscription Agreement between the Company and the
      Trust, dated as of the Closing Date, will constitute legal, valid and binding
      obligations of the Company entitled to the benefits of the Indenture enforceable
      against the Company in accordance with their terms, subject to applicable
      bankruptcy, insolvency and similar laws affecting creditors’ rights generally
      and to general principles of equity.

    

    Purchase
      Agreement.  This Agreement has been duly authorized, executed and
      delivered by the Company and the Trust and constitutes the legal, valid and
      binding obligation of the Company and the Trust, enforceable against the Company
      and the Trust in accordance with its terms, subject to applicable bankruptcy,
      insolvency and similar laws affecting creditors’ rights generally and to general
      principles of equity.

    

    Defaults.  Neither
      the issue and sale of the Common Securities, the Preferred Securities or the
      Junior Subordinated Notes, nor the purchase of the Junior Subordinated Notes
      by
      the Trust, the execution and delivery of and compliance with the Operative
      Documents by the Company or the Trust, to the extent a party thereto, the
      consummation of the transactions contemplated herein or therein, or the use
      of
      the proceeds therefrom, (i) will conflict with or constitute a breach of, or
      a
      default under, the Trust Agreement or the charter or bylaws of the Company
      or
      any subsidiary of the Company or any applicable law, statute, rule, regulation,
      judgment, order, writ or decree of any government, governmental authority,
      agency or instrumentality or court, domestic or foreign, having jurisdiction
      over the Trust or the Company or any of its subsidiaries, or their respective
      properties or assets (collectively, “Governmental Entities”), (ii) will
      conflict with or constitute a violation or breach of, or a default or Repayment
      Event (as defined below) under, or result in the creation or imposition of
      any
      Lien upon any property or assets of the Trust, the Company or any of its
      subsidiaries pursuant to any contract, indenture, mortgage, loan agreement,
      note, lease or other agreement or instrument to which (A) the Trust, the Company
      or any of its subsidiaries is a party or by which it or any of them may be
      bound, or (B) any of the property or assets of any of them is subject, or any
      judgment, order or decree of any court, Governmental Entity or arbitrator,
      except, in the case of this clause (ii), for such conflicts, breaches,
      violations, defaults, Repayment Events (as defined below) or Liens which (X)
      would not, singly or in the aggregate, adversely affect the consummation of
      the
      transactions contemplated by the Operative Documents and (Y) would not, singly
      or in the aggregate, have a material adverse effect on the condition (financial
      or otherwise), earnings, business, liabilities, prospects and assets (taken
      as a
      whole) or business prospects of the Company and its subsidiaries taken as a
      whole, whether or not occurring in the ordinary course of business (a
“Material Adverse Effect”) or (iii) require the consent, approval,
      authorization or order of any court or Governmental Entity.  As used
      herein, a “Repayment Event” means any event or condition which gives
      the holder of any note, debenture or other evidence of indebtedness (or any
      person acting on such holder’s behalf) the right to require the repurchase,
      redemption or repayment of all or a portion of such indebtedness by the Trust
      or
      the Company or any of its subsidiaries prior to its scheduled
      maturity.

    
      
         

      

      
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    Organization,
      Standing and Qualification of the Company.  The Company has been
      duly incorporated and is validly existing as a corporation in good standing
      under the laws of New Jersey, with all requisite corporate power and authority
      to own, lease and operate its properties and conduct the business it transacts
      and proposes to transact, and is duly qualified to transact business and is
      in
      good standing as a foreign corporation in each jurisdiction where the nature
      of
      its activities requires such qualification, except where the failure of the
      Company to be so qualified would not, singly or in the aggregate, have a
      Material Adverse Effect.

    

    Subsidiaries
      of the Company.  The Company has no subsidiaries that are material
      to its business, financial condition or earnings other than those subsidiaries
      listed in Schedule 4.10 attached hereto (the “Significant
      Subsidiaries”).  Each Significant Subsidiary has been duly
      organized and is validly existing and in good standing under the laws of the
      jurisdiction in which it is chartered or organized, with all requisite power
      and
      authority to own its properties and conduct the business it transacts and
      proposes to transact.  Each Significant Subsidiary is duly qualified
      to transact business and is in good standing as a foreign entity in each
      jurisdiction where the nature of its activities requires such qualification,
      except where the failure of any such Significant Subsidiary to be so qualified
      would not, singly or in the aggregate, have a Material Adverse
      Effect.

    

    Government
      Licenses; Laws.  Each of the Trust, the Company and each of its
      subsidiaries hold all necessary approvals, authorizations, orders, licenses,
      certificates and permits (collectively, “Government Licenses”) of and
      from Governmental Entities necessary to conduct its respective business as
      now
      being conducted, and neither the Trust, the Company nor any of its subsidiaries
      has received any notice of proceedings relating to the revocation or
      modification of any such Government License, except where the failure to be
      so
      licensed or approved or the receipt of an unfavorable decision, ruling or
      finding, would not, singly or in the aggregate, have a Material Adverse Effect;
      all of the Government Licenses are valid and in full force and effect, except
      where the invalidity or the failure of such Government Licenses to be in full
      force and effect, would not, singly or in the aggregate, have a Material Adverse
      Effect; and the Company and its subsidiaries are in compliance with all
      applicable laws, rules, regulations, judgments, orders, decrees and consents,
      except where the failure to be in compliance would not, singly or in the
      aggregate, have a Material Adverse Effect.

    

    Stock.  All
      of the issued and outstanding shares of capital stock of the Company and each
      of
      its subsidiaries are validly issued, fully paid and nonassessable; all of the
      issued and outstanding capital stock of each subsidiary of the Company is owned
      by the Company, directly or through subsidiaries, free and clear of any Lien,
      claim or equitable right; and none of the issued and outstanding capital stock
      of the Company or any subsidiary was issued in violation of any preemptive
      or
      similar rights arising by operation of law, under the charter or by-laws of
      such
      entity or under any agreement to which the Company or any of its subsidiaries
      is
      a party.

    

    Property.  Each
      of the Trust, the Company and each subsidiary of the Company has good and
      marketable title to all of its respective real and personal properties, in
      each
      case free and clear of all Liens and defects, except for those that would not,
      singly or in the aggregate, have a Material Adverse Effect; and all of the
      leases and subleases under which the Trust, the Company or any subsidiary of
      the
      Company holds properties are in full force and effect, except

    
      
         

      

      
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    where
      the
      failure of such leases and subleases to be in full force and effect would not,
      singly or in the aggregate, have a Material Adverse Effect and none of the
      Trust, the Company or any subsidiary of the Company has any notice of any claim
      of any sort that has been asserted by anyone adverse to the rights of the Trust,
      the Company or any subsidiary of the Company under any such leases or subleases,
      or affecting or questioning the rights of such entity to the continued
      possession of the leased or subleased premises under any such lease or sublease,
      except for such claims that would not, singly or in the aggregate, have a
      Material Adverse Effect.

    

    Conflicts,
      Authorizations and Approvals.  Neither the Company nor any of its
      subsidiaries is (i) in violation of its respective charter, bylaws or similar
      organizational documents or (ii) in default in the performance or observance
      of
      any obligation, agreement, covenant or condition contained in any contract,
      indenture, mortgage, loan agreement, note, lease or other agreement or
      instrument to which either the Company or any such subsidiary is a party or
      by
      which it or any of them may be bound or to which any of the property or assets
      of any of them is subject, except, in the case of clause (ii), where such
      default would not, singly or in the aggregate, have a Material Adverse
      Effect.  No filing with, or authorization, approval, consent, license,
      order, registration, qualification or decree of, any Governmental Entity, other
      than those that have been made or obtained, is necessary or required for the
      performance by the Trust or the Company of their respective obligations under
      the Operative Documents, as applicable, or the consummation by the Trust and
      the
      Company of the transactions contemplated by the Operative
      Documents.

    

    Holding
      Company Registration and Deposit Insurance.  The Company is duly
      registered as a bank holding company, and has filed an effective election with
      the Federal Reserve Bank of New York to be a financial holding company, under
      the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company
      Act”), and the regulations of the Board of Governors of the Federal Reserve
      System (the “Federal Reserve”), and the deposit accounts of the Company’s
      subsidiary depository institution are insured by the Federal Deposit Insurance
      Corporation (“FDIC”) to the fullest extent permitted by law and the
      rules and regulations of the FDIC, and no proceeding for the termination of
      such
      insurance are pending or, to the knowledge of the Company or the Trust after
      due
      inquiry, threatened.

    

    Financial
      Statements.

    

    The
      audited consolidated financial statements (including the notes thereto) and
      schedules of the Company and its consolidated subsidiaries at and for the three
      fiscal years ended December 31, 2006 (the “Financial Statements”) and
      the interim unaudited consolidated financial statements of the Company and
      its
      consolidated subsidiaries at and for the quarter and three months ended March
      31, 2007, (the “Interim Financial Statements”) provided to the
      Purchaser are the most recently available audited and unaudited consolidated
      financial statements of the Company and its consolidated subsidiaries,
      respectively, and fairly present in all material respects, in accordance with
      U.S. generally accepted accounting principles (“GAAP”), the financial
      position of the Company and its consolidated subsidiaries, and the results
      of
      operations and changes in financial condition as of the dates and for the
      periods therein specified, subject, in the case of Interim Financial Statements,
      to year-end adjustments (which are expected to consist solely of normal
      recurring adjustments).  Such consolidated

    
      
         

      

      
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    financial
      statements and schedules have been prepared in accordance with GAAP consistently
      applied throughout the periods involved (except as otherwise noted
      therein).

    

    The
      Company’s report on FRY-9C, dated March 31, 2007 (the “FRY-9C”), provided to the
      Purchaser is the most recently available such report, and the information
      therein fairly presents in all material respects the financial position of
      the
      Company and its subsidiaries.  None of the Company or any of its
      subsidiaries has been requested by a Governmental Entity to republish, restate
      or refile any regulatory or financial report.

    

    Since
      the
      respective dates of the Financial Statements and the FRY-9C, there has not
      been
      (A) any material adverse change or development with respect to the condition
      (financial or otherwise), earnings, business, assets or business prospects
      of
      the Company and its subsidiaries, taken as a whole, whether or not occurring
      in
      the ordinary course of business or (B) other than the stock dividend described
      in Schedule 4.16(c), any dividend or distribution of any kind declared, paid
      or
      made by the Company on any class of its capital stock other than regular
      quarterly dividends on the Company’s common stock.

    

    The
      accountants of the Company who certified the Financial Statements are
      independent public accountants of the Company and its subsidiaries within the
      meaning of the Securities Act and the rules and regulations of the Securities
      and Exchange Commission (“SEC”) thereunder.

    

    Regulatory
      Enforcement Matters.  None of the Trust, the Company nor any of
      its subsidiaries, nor any of their respective officers, directors, employees
      or
      representatives, is subject or is party to, or has received any notice from
      any
      Regulatory Agency (as defined below) that any of them will become subject or
      party to any investigation with respect to, any cease-and-desist order,
      agreement, civil monetary penalty, 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 directive by, or has been a recipient of any supervisory letter
      from, or has adopted any board resolutions at the request or suggestion of,
      any
      Regulatory Agency that, in any such case, currently restricts in any material
      respect the conduct of their business or that in any material manner relates
      to
      their capital adequacy, their credit policies, their management or their
      business (each, a “Regulatory Action”), nor has the Trust, the Company
      or any of its subsidiaries been advised by any Regulatory Agency that it is
      considering issuing or requesting any such Regulatory Action; and, except as
      listed on Schedule 4.17, there is no unresolved violation, criticism or
      exception by any Regulatory Agency with respect to any report or statement
      relating to any examinations of the Trust, the Company or any of its
      subsidiaries, except where such unresolved violation, criticism or exception
      would not, singly or in the aggregate, have a Material Adverse
      Effect.  The Company meets the required capital levels for
“well-capitalized” bank holding companies established by the Federal Reserve and
      in effect as of the date hereof.  Each of the Company’s subsidiaries
      that is a depository institution, the accounts of which are insured by the
      FDIC
      (i) is “well-capitalized” within the meaning of 12 U.S.C. §1831o and applicable
      implementing regulations thereunder; and (ii) is not, and has not been notified
      by any Regulatory Agency that it is, in “troubled condition” within the meaning
      of 12 U.S.C. §1831i and applicable implementing regulations
      thereunder.  As used herein, the term “Regulatory Agency” means any
      federal or

    
      
         

      

      
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    state
      agency charged with the supervision or regulation of depository institutions
      or
      holding companies of depository institutions, 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 Trust, the Company
      or
      any of its subsidiaries.

    

    No
      Undisclosed Liabilities. Except as listed on Schedule 4.18, none of
      the Trust, the Company nor any of its subsidiaries has any material liability,
      whether known or unknown, whether asserted or unasserted, whether absolute
      or
      contingent, whether accrued or unaccrued, whether liquidated or unliquidated,
      and whether due or to become due, including any liability for taxes (and there
      is no past or present fact, situation, circumstance, condition or other basis
      for any present or future action, suit, proceeding, hearing, charge, complaint,
      claim or demand against the Company or its subsidiaries that could give rise
      to
      any such liability), except for (i) liabilities set forth in the Financial
      Statements or the Interim Financial Statements and (ii) normal fluctuations
      in the amount of the liabilities referred to in clause (i) above occurring
      in the ordinary course of business of the Trust, the Company and all of its
      subsidiaries since the date of the most recent balance sheet included in such
      Financial Statements.

    

    Litigation.  There
      is no action, suit or proceeding before or by any Governmental Entity,
      arbitrator or court, domestic or foreign, now pending or, to the knowledge
      of
      the Company or the Trust after due inquiry, threatened against or affecting
      the
      Trust  or the Company or any of its subsidiaries, except for such
      actions, suits or proceedings that, if adversely determined, would not, singly
      or in the aggregate, adversely affect the consummation of the transactions
      contemplated by the Operative Documents or have a Material Adverse
      Effect.

    

    No
      Labor Disputes.  No labor dispute with the employees of the Trust,
      the Company or any of its subsidiaries exists or, to the knowledge of the
      executive officers of the Trust or the Company, is imminent, except those which
      would not, singly or in the aggregate, have a Material Adverse
      Effect.

    

    Filings
      with the SEC.  The documents of the Company filed with the SEC in
      accordance with the Exchange Act, from and including the commencement of the
      fiscal year covered by the Company’s most recent Annual Report on Form 10-K, at
      the time they were or hereafter are filed by the Company with the SEC
      (collectively, the “1934 Act Reports”), complied and will comply in all
      material respects with the requirements of the Exchange Act and the rules and
      regulations of the SEC thereunder (the “1934 Act Regulations”), and did
      not, and, at the date of this Agreement and on the Closing Date, do not and
      will
      not include 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; and
      other than such instruments, agreements, contracts and other documents as are
      filed as exhibits to the Company’s Annual Report on Form 10-K, Quarterly Reports
      on Form 10-Q or Current Reports on Form 8-K, there are no instruments,
      agreements, contracts or documents of a character described in Item 601 of
      Regulation S-K promulgated by the SEC to which the Company or any of its
      subsidiaries is a party.  The Company is in

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    compliance
      with all currently applicable requirements of the Exchange Act and the 1934
      Act
      Regulations that were added by the Sarbanes-Oxley Act of 2002.

    

    Deferral
      of Interest Payments on Junior Subordinated Notes.  The Company
      has no present intention to exercise its option to defer payments of interest
      on
      the Junior Subordinated Notes as provided in the Indenture.  The
      Company believes that the likelihood that it would exercise its rights to defer
      payments of interest on the Junior Subordinated Notes as provided in the
      Indenture at any time during which the Junior Subordinated Notes are outstanding
      is remote because of the restrictions that would be imposed on the Company’s
      ability to declare or pay dividends or distributions on, or to redeem, purchase,
      acquire or make a liquidation payment with respect to, any of the Company’s
      capital stock and on the Company’s ability to make any payments of principal,
      interest or premium on, or repay, repurchase or redeem, any of its debt
      securities that rank pari passu in all respects with or junior in
      interest to the Junior Subordinated Notes.

    

    Tax
      Returns.  The Company and each of the Significant Subsidiaries
      have timely and duly filed all Tax Returns (defined below) required to be filed
      by them, and all such Tax Returns are true, correct and complete in all material
      respects.  The Company and each of the Significant Subsidiaries have
      timely and duly paid in full all material Taxes required to be paid by them
      (whether or not such amounts are shown as due on any Tax
      Return).  There are no federal, state, or other Tax audits or
      deficiency assessments proposed or pending with respect to the Company or any
      of
      the Significant Subsidiaries, and no such audits or assessments are
      threatened.  As used herein, the terms “Tax” or
“Taxes” mean (i) all federal, state, local, and foreign taxes,
      and
      other assessments of a similar nature (whether imposed directly or through
      withholding), including any interest, additions to tax, or penalties applicable
      thereto, imposed by any Governmental Entity, and (ii) all liabilities in respect
      of such amounts arising as a result of being a member of any affiliated,
      consolidated, combined, unitary or similar group, as a successor to another
      person or by contract.  As used herein, the term “Tax
      Returns” means all federal, state, local, and foreign Tax returns,
      declarations, statements, reports, schedules, forms, and information returns
      and
      any amendments thereto filed or required to be filed with any Governmental
      Entity.

    

    Taxes.
      The Trust is not subject to United States federal income tax with respect to
      income received or accrued on the Junior Subordinated Notes, interest payable
      by
      the Company on the Junior Subordinated Notes is deductible by the Company,
      in
      whole or in part, for United States federal income tax purposes, and the Trust
      is not, or will not be within ninety (90) days of the date hereof, subject
      to
      more than a de minimis amount of other taxes, duties or other
      governmental charges.  There are no rulemaking or similar proceedings
      before the United States Internal Revenue Service or comparable federal, state,
      local or foreign government bodies which involve or affect the Company or any
      subsidiary, which, if the subject of an action unfavorable to the Company or
      any
      subsidiary, could result in a Material Adverse Effect.

    

    Books
      and Records.  The books, records and accounts of the Company and
      its subsidiaries accurately and fairly reflect, in reasonable detail, the
      transactions in, and dispositions of, the assets of, and the results of
      operations of, the Company and its subsidiaries. The Company and each of its
      subsidiaries maintains a system of internal accounting controls

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    sufficient
      to provide reasonable assurances 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 accordance with GAAP 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.

    

    Insurance.  The
      Company and the Significant Subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      in
      all material respects as are customary in the businesses in which they are
      engaged or propose to engage after giving effect to the transactions
      contemplated hereby, including, but not limited to, real or personal property
      owned or leased against theft, damage, destruction, act of vandalism and all
      other risks customarily insured against. All policies of insurance and fidelity
      or surety bonds insuring the Company or any of the Significant Subsidiaries,
      or
      insuring the Company’s or Significant Subsidiaries’ respective businesses,
      assets, employees, officers and directors, are in full force and effect. The
      Company and each of the Significant Subsidiaries are in compliance with the
      terms of such policies and instruments in all material respects. Neither the
      Company nor any Significant Subsidiary has reason to believe that it will not
      be
      able 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 at a cost that would not have a Material Adverse Effect.
      Within the past twelve months, neither the Company nor any Significant
      Subsidiary has been denied any insurance coverage which it has sought or for
      which it has applied.

    

    Corporate
      Funds.  The Company and its subsidiaries or any person acting on
      behalf of the Company and its subsidiaries including, without limitation, any
      director, officer, agent or employee of, the Company or its subsidiaries has
      not, directly or indirectly, while acting on behalf of the Company and its
      subsidiaries (i) used any corporate funds for unlawful contributions, gifts,
      entertainment or other unlawful expenses relating to political activity; (ii)
      made any unlawful payment to foreign or domestic government officials or
      employees or to foreign or domestic political parties or campaigns from
      corporate funds; (iii) violated any provision of the Foreign Corrupt Practices
      Act of 1977, as amended; or (iv) made any other unlawful payment.

    

    OSHA
      Compliance.  Neither the Company nor any of its subsidiaries is in
      violation of any federal or state law or regulation relating to occupational
      safety and health and the Company and its subsidiaries have received all
      permits, licenses or other approvals required of them under applicable federal
      and state occupational safety and health and environmental laws and regulations
      to conduct their respective businesses, and the Company and each of its
      subsidiaries is in compliance with all terms and conditions of any such permit,
      license or approval, except any such violation of law or regulation, failure
      to
      receive required permits, licenses or other approvals or failure to comply
      with
      the terms and conditions of such permits,

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    licenses
      or approvals which would not, singly or in the aggregate result in a Material
      Adverse Effect.

    

    Information.  The
      information provided by the Company and the Trust pursuant to this Agreement
      does not, as of the date hereof, and will not, as of the Closing Date, contain
      any untrue statement of a material fact or omit to state any material fact
      necessary to make the statements therein, in light of the circumstances under
      which they were made, not misleading.

    

    Section
      5.     Representations and Warranties of the
      Purchaser.  The Purchaser represents and warrants to, and agrees
      with, the Company and the Trust as follows:

     

    The
      Purchaser understands and acknowledges that the Preferred Securities, the Junior
      Subordinated Notes and the Guarantee (i) have not been registered under the
      Securities Act, or any other applicable securities law, (ii) are being offered
      for sale by the Trust or the Company, as the case may be, in transactions not
      requiring registration under the Securities Act and (iii) may not be offered,
      sold, pledged or otherwise transferred by the Purchaser except in compliance
      with the registration requirements of the Securities Act or any other applicable
      securities laws, pursuant to an exemption therefrom or in a transaction not
      subject thereto.

    

    The
      Purchaser is purchasing the Preferred Securities for its own account and not
      with a view to, or for offer or sale in connection with, any distribution
      thereof in violation of the Securities Act or other applicable securities laws,
      subject to any requirement of law that the disposition of its property be at
      all
      times within its control and subject to its ability to resell such Preferred
      Securities pursuant to an effective registration statement under the Securities
      Act or under Rule 144A or any other exemption from registration available under
      the Securities Act or any other applicable securities law.  The
      Purchaser understands that no public market exists for any of the Preferred
      Securities, and that it is unlikely that a public market will ever exist for
      the
      Preferred Securities.

    

    The
      Purchaser represents and warrants that (a) it has consulted with its own legal,
      regulatory, tax, business, investment, financial and accounting advisers in
      connection herewith to the extent it has deemed necessary; (b) it has had a
      reasonable opportunity to ask questions of and receive answers from officers
      and
      representatives of the Sellers concerning their respective financial condition
      and results of operations and the purchase of the Preferred Securities and
      any
      such questions have been answered to its satisfaction; (c) it has had the
      opportunity to review all publicly available records and filings concerning
      the
      Sellers and it has carefully reviewed such records and filings that it considers
      relevant to making an investment decision; and (d) it has made its own
      investment decisions based upon its own judgment, due diligence and advice
      from
      such advisers as it has deemed necessary and not upon any view expressed by
      the
      Sellers.

    

    The
      Purchaser is (i) an institutional “accredited investor” within the meaning of
      subparagraph (a)(1), (2), (3) or (7) of Rule 501 of Regulation D under the
      Securities Act, and (ii) a “qualified institutional buyer” within the meaning of
      Rule 144A under the Securities Act.

    

    Section
      6.     Covenants of the Sellers.  The
      Sellers covenant and agree with the Purchaser as follows:

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Compliance
      with Representations and Warranties.  During
      the period from the date of this Agreement to the Closing Date, the Sellers
      shall use their best efforts and take all action necessary or appropriate to
      cause their representations and warranties contained in Section 4 hereof to
      be
      true as of the Closing Date, after giving effect to the transactions
      contemplated by this Agreement, as if made on and as of the Closing
      Date.

    

    Sale
      and Registration of Securities.  Neither the Company nor the Trust
      will, nor will either of them permit any of their Affiliates to, nor will any
      of
      them permit any person acting on its or their behalf (other than the Introducing
      Agent and its affiliates) to, directly or indirectly, (i) resell any Preferred
      Securities that have been acquired by any of them, (ii) sell, offer for sale
      or
      solicit offers to buy or otherwise negotiate in respect of any security (as
      defined in the Securities Act) that would or could be integrated with the sale
      of the Preferred Securities in any manner that would require the registration
      of
      the Securities under the Securities Act or (iii) make offers or sales of any
      such Security, or solicit offers to buy any such Security, under any
      circumstances that would require the registration of any of such Securities
      under the Securities Act.

    

    Clearing
      and Settlement. The Company and the Trust will cooperate with the Purchaser
      (or any holder of the Preferred Securities) and use all commercially reasonable
      efforts to make the Preferred Securities eligible for clearance and settlement
      as book-entry securities through the facilities of the Depository Trust Company
      (“DTC”) and listed for trading through the PORTAL Market
      (“PORTAL”), and will execute, deliver and comply with all
      representations made to, and agreements with, DTC and PORTAL. This Section
      6.3
      will survive delivery of and payment for the Preferred Securities.

    

    Integration.  Neither
      the Company nor the Trust will, until one hundred eighty (180) days following
      the Closing Date, without the Purchaser’s prior written consent, offer, sell,
      contract to sell, grant any option to purchase or otherwise dispose of, directly
      or indirectly, (i) any Preferred Securities or other securities of the Trust
      other than as contemplated by this Agreement or (ii) any other securities
      convertible into, or exercisable or exchangeable for, any Preferred Securities
      or other securities of the Trust.

    

    Qualification
      of Securities.  The Company and the Trust will arrange for the
      qualification of the Preferred Securities for sale under the laws of such
      jurisdictions as the Purchaser may designate and will maintain such
      qualifications in effect so long as required for the sale of the Preferred
      Securities.  The Company or the Trust, as the case may be, will
      promptly advise the Purchaser of the receipt by the Company or the Trust, as
      the
      case may be, of any notification with respect to the suspension of the
      qualification of the Preferred Securities for sale in any jurisdiction or the
      initiation or threatening of any proceeding for such purpose.

    

    Use
      of
      Proceeds.  The Trust shall use the proceeds from the sale of the
      Preferred Securities and the Common Securities to purchase the Junior
      Subordinated Notes from the Company.

    

    Investment
      Company.  So long as any of the Securities are outstanding, (i)
      the Securities shall not be listed on a national securities exchange registered
      under Section 6 of the 

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    Exchange
      Act or quoted in a U.S. automated interdealer quotation system, (ii) neither
      the
      Company nor the Trust shall be an open-end investment company, unit investment
      trust or face amount certificate company that is, or is required to be,
      registered under Section 8 of the Investment Company Act, and, the Securities
      shall otherwise satisfy the eligibility requirements of Rule 144A(d)(3) and
      (iii) neither the Company nor the Trust shall engage, or permit any subsidiary
      to engage, in any activity which would cause it or any subsidiary to be an
      “investment company” under the provisions of the Investment Company
      Act.

    

    Solicitation
      and Advertising.  Neither the Company nor the Trust will, nor will
      either of them permit any of their Affiliates or any person acting on their
      behalf (other than the Introducing Agent and its affiliates), to (i) engage
      in
      any “directed selling efforts” within the meaning of Regulation S under the
      Securities Act or (ii) engage in any form of “general solicitation or general
      advertising” (within the meaning of Regulation D) in connection with any offer
      or sale of any of the Securities.

    

    Compliance
      with Rule 144A(d)(4) under the Securities Act.  So long as any of
      the Securities are outstanding and are “restricted securities” within the
      meaning of Rule 144(a)(3) under the Securities Act, the Sellers will, during
      any
      period in which they are not subject to and in compliance with Section 13 or
      15(d) of the Exchange Act, or the Sellers are not exempt from such reporting
      requirements pursuant to and in compliance with Rule 12g3-2(b) under the
      Exchange Act, provide to each holder of such restricted securities and to each
      prospective purchaser (as designated by such holder) of such restricted
      securities, upon the request of such holder or prospective purchaser in
      connection with any proposed transfer, any information required to be provided
      by Rule 144A(d)(4) under the Securities Act, if applicable.  The
      information provided by the Sellers pursuant to this Section 6.9 will not,
      at
      the date thereof, contain any untrue statement of a material fact or omit to
      state any material fact necessary to make the statements therein, in light
      of
      the circumstances under which they were made, not misleading.  If the
      Company and the Trust are required to register under the Exchange Act, such
      reports filed in compliance with Rule 12g3-2(b) shall be sufficient information
      as required above.  This covenant is intended to be for the benefit of
      the Purchaser, the holders of the Securities, and the prospective purchasers
      designated by such holders, from time to time, of the Securities.

    

    Reports.  The
      Company shall furnish to (i) the Purchaser and any subsequent holder of the
      Securities, and (ii) any beneficial owner of the Securities reasonably
      identified to the Company (which identification may be made by either such
      beneficial owner or by the Purchaser), a duly completed and executed certificate
      in the form attached hereto as Exhibit B, including the financial statements
      referenced in such Exhibit, which certificate and financial statements shall
      be
      so furnished by the Company not later than forty-five (45) days after the end
      of
      each of the first three fiscal quarters of each fiscal year of the Company
      and
      not later than ninety (90) days after the end of each fiscal year of the
      Company.

    

    Section
      7.     Payment of Expenses.

     

    The
      Company hereby covenants and agrees that it shall pay or cause to be paid
      (directly or by reimbursement) all costs and expenses incident to the
      performance of the obligations of the Sellers under this Agreement, whether
      or
      not the transactions contemplated 

    
      
         

      

      
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    herein
      are consummated or this Agreement is terminated, including (i) all costs and
      expenses incident to the authorization, issuance, sale and delivery of the
      Preferred Securities and any taxes payable in connection therewith; (ii) the
      fees and expenses of qualifying the Preferred Securities under the securities
      laws of the several jurisdictions as provided in Section 6.5; (iii) the
      fees and expenses of the counsel, the accountants and any other experts or
      advisors retained by the Company or the Trust, which counsel fees and expenses
      incurred in connection with the closing of the transactions contemplated hereby,
      in an amount up to $10,000, shall be reimbursed by the Purchaser on the Closing
      Date; (iv) the fees and all reasonable expenses of the Guarantee Trustee, the
      Property Trustee, the Delaware Trustee, the Indenture Trustee and any other
      trustee or paying agent appointed under the Operative Documents except for
      any
      acceptance fee and annual administrative fees of any such trustee and the fees
      and disbursements of counsel to such trustees incurred in connection with the
      closing of the transactions contemplated hereby, which shall be paid by the
      Purchaser.

    

    If
      the
      sale of the Preferred Securities provided for in this Agreement is not
      consummated because any condition set forth in Section 3 to be satisfied by
      either the Company or the Trust is not satisfied, because this Agreement is
      terminated pursuant to Section 10 or because of any failure, refusal or
      inability on the part of the Company or the Trust to perform all obligations
      and
      satisfy all conditions on its part to be performed or satisfied hereunder other
      than by a reason of a default by the Purchaser, the Company will reimburse
      the
      Purchaser upon demand for all reasonable out-of-pocket expenses that shall
      have
      been incurred by the Purchaser in connection with the proposed purchase and
      sale
      of the Preferred Securities, including the fees and expenses of counsel for
      the
      Purchaser and any hedge breakage costs and expenses.  The Company
      shall not in any event be liable to the Purchaser for the loss of anticipated
      profits from the transactions contemplated by this Agreement.

    

    Section
      8.     Indemnification &
Contribution.

    

    Indemnification.

    

    The
      Company and the Trust agree jointly and severally to indemnify and hold harmless
      the Purchaser, a Subsequent Purchaser and their respective affiliates
      (collectively, the “Indemnified Parties”) and the Indemnified Parties’
respective directors, officers, employees and agents and each person
      who
“controls” the Indemnified Parties within the meaning of either the Securities
      Act or the Exchange Act against any and all losses, claims, damages or
      liabilities, joint or several, to which they or any of them may become subject
      under the Securities Act, the Exchange Act or other federal or state statutory
      law or regulation, at common law or otherwise, insofar as such losses, claims,
      damages or liabilities (or actions in respect thereof) arise out of or are
      based
      upon (i) any untrue statement or alleged untrue statement of a material fact
      contained in any information or documents furnished or made available to the
      Purchaser by or on behalf of the Company, (ii) the omission or alleged omission
      to state therein a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, or (iii) the breach or alleged
      breach of any representation, warranty or agreement of either Seller contained
      herein, and agrees to reimburse each such Indemnified Party, as incurred, for
      any legal or other expenses reasonably incurred by them in connection with
      investigating or defending any such loss, claim, 

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    damage,
      liability or action.  This indemnity agreement will be in addition to
      any liability which the Company or the Trust may otherwise have. Promptly after
      receipt by an Indemnified Party under this Section 8 of notice of the
      commencement of any action, such Indemnified Party will, if a claim in respect
      thereof is to be made against the indemnifying party under this Section 8,
      promptly notify the indemnifying party in writing of the commencement thereof;
      but the failure so to notify the indemnifying party (i) will not relieve
      the indemnifying party from liability under Section 8.1.1 above unless and
      to
      the extent that such failure results in the forfeiture by the indemnifying
      party
      of material rights and defenses and (ii) will not, in any event, relieve
      the indemnifying party from any obligations to any Indemnified Party other
      than
      the indemnification obligation provided in Section 8.1.1 above.  The
      Purchaser shall be entitled to appoint counsel to represent the Indemnified
      Party in any action for which indemnification is sought.  An
      indemnifying party may participate at its own expense in the defense of any
      such
      action; provided, however, that counsel to the indemnifying party shall not
      (except with the consent of the Indemnified Party) also be counsel to the
      Indemnified Party.  In no event shall the indemnifying parties be
      liable for fees and expenses of more than one counsel (in addition to any local
      counsel) separate from their own counsel for all Indemnified Parties in
      connection with any one action or separate but similar or related actions in
      the
      same jurisdiction arising out of the same general allegations or
      circumstances.  An indemnifying party will not, without the prior
      written consent of the Indemnified Parties, settle or compromise or consent
      to
      the entry of any judgment with respect to any pending or threatened claim,
      action, suit or proceeding in respect of which indemnification may be sought
      hereunder (whether or not the Indemnified Parties are actual or potential
      parties to such claim, action, suit or proceeding) unless such settlement,
      compromise or consent includes an unconditional release of each Indemnified
      Party from all liability arising out of such claim, action, suit or
      proceeding.

    

    Contribution.

    

    In
      order
      to provide for just and equitable contribution in circumstances under which
      the
      indemnification provided for in Section 8.1 hereof is for any reason held to
      be
      unenforceable for the benefit of an Indemnified Party in respect of any losses,
      liabilities, claims, damages or expenses referred to therein, then each
      indemnifying party shall contribute to the aggregate amount of such losses,
      liabilities, claims, damages and expenses incurred by such Indemnified Party,
      as
      incurred, (i) in such proportion as is appropriate to reflect the relative
      benefits received by the Sellers, on the one hand, and the Purchaser, on the
      other hand, from the offering of the Securities or (ii) if the allocation
      provided by clause (i) is not permitted by applicable law, in such proportion
      as
      is appropriate to reflect not only the relative benefits referred to in clause
      (i) above, but also the relative fault of the Sellers, on the one hand, and
      the
      Purchaser, on the other hand, in connection with the statements, omissions
      or
      breaches, which resulted in such losses, liabilities, claims, damages or
      expenses, as well as any other relevant equitable considerations.

    

    The
      relative benefits received by the Sellers, on the one hand, and the Purchaser,
      on the other hand, in connection with the offering of the Securities shall
      be
      deemed to be in the same respective proportions as the total net proceeds from
      the offering of the Securities (before deducting expenses) received by the
      Sellers and the Fee paid by the Purchaser bear to the aggregate of such net
      proceeds and the Fee.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    The
      Sellers and the Purchaser agree that it would not be just and equitable if
      contribution pursuant to this Section 8.2 were determined by pro rata
      allocation or by any other method of allocation which does not take account
      of
      the equitable considerations referred to above in this
      Section 8.2.  The aggregate amount of losses, liabilities,
      claims, damages and expenses incurred by an Indemnified Party and referred
      to
      above in this Section 8.2 shall be deemed to include any legal or other
      expenses reasonably incurred by such Indemnified Party in investigating,
      preparing or defending against any litigation, or any investigation or
      proceeding by any governmental agency or body, commenced or threatened, or
      any
      claim whatsoever based upon any such untrue or alleged untrue statement,
      omission or alleged omission or breach or alleged breach.

    

    Notwithstanding
      any provision of this Section 8 to the contrary, the Purchaser shall
      not be required to contribute any amount in excess of the amount of the
      Fee.

    

    No
      person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of the  Securities Act) shall be entitled to contribution from any
      person who was not guilty of such fraudulent misrepresentation.

    

    For
      purposes of this Section 8.2, each person, if any, who controls the
      Purchaser within the meaning of Section 15 of the Securities Act or
      Section 20 of the Exchange Act and the respective partners, directors,
      officers, employees and agents of the Purchaser or any such controlling person
      shall have the same rights to contribution as the Purchaser, while each officer
      and director of the Company, each trustee of the Trust and each person, if
      any,
      who controls the Company within the meaning of Section 15 of the Securities
      Act or Section 20 of the Exchange Act shall have the same rights to
      contribution as the Sellers.

    

    Additional
      Remedies.  The indemnity and contribution agreements contained in
      this Section 8 are in addition to any liability that the Sellers may
      otherwise have to any Indemnified Party.

    

    Additional
      Indemnification.  The Company shall indemnify and hold harmless
      the Trust against all loss, liability, claim, damage and expense whatsoever,
      as
      due from the Trust under Sections 8.1 through 8.3
      hereof.

    

    Section
      9.     Rights and Responsibilities of
      Purchaser.

     

    [Reserved].

    

    Section
      10.     Termination.  This Agreement
      shall be subject to termination in the absolute discretion of the Purchaser,
      by
      notice given to the Company and the Trust prior to delivery of and payment
      for
      the Preferred Securities, if prior to such time (i) the Trust shall be unable
      to
      sell and deliver to the Purchaser at least $24,000,000 stated aggregate
      liquidation value of Preferred Securities, (ii) the Company or any of its
      subsidiaries that is an insured depository institution shall cease to be
“adequately-capitalized” within the meaning of 12 U.S.C. Section 1831 and
      applicable regulations adopted thereunder, or any formal administrative or
      judicial 

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    action
      is
      taken by any appropriate federal banking agency against the Company or any
      such
      insured subsidiary for unsafe and unsound banking practices, or violations
      of
      law, (iii) a suspension or material limitation in trading in securities
      generally shall have occurred on the New York Stock Exchange, (iv) a suspension
      or material limitation in trading in any of the Company’s securities shall have
      occurred on the exchange or quotation system upon which the Company’s securities
      are traded, if any, (v) a general moratorium on commercial banking
      activities shall have been declared either by federal or New Jersey authorities
      or (vi) there shall have occurred any outbreak or escalation of
      hostilities, or declaration by the United States of a national emergency or
      war
      or other calamity or crisis the effect of which on financial markets is such
      as
      to make it, in the Purchaser’s judgment, impracticable or inadvisable to proceed
      with the offering or delivery of the Preferred Securities.

     

    Section
      11.     Miscellaneous.

     

    Disclosure
      Schedule.  The term “Disclosure Schedule,” as used
      herein, means the schedule, if any, attached to this Agreement that sets forth
      items the disclosure of which is necessary or appropriate as an exception to
      one
      or more representations or warranties contained in Section 4
      hereof.  The Disclosure Schedule shall be arranged in paragraphs
      corresponding to the section numbers contained in Section
      4.  Nothing in the Disclosure Schedule shall be deemed adequate to
      disclose an exception to a representation or warranty made herein unless the
      Disclosure Schedule identifies the exception with reasonable particularity
      and
      describes the relevant facts in reasonable detail. Without limiting the
      generality of the immediately preceding sentence, the mere listing (or inclusion
      of a copy) of a document or other item in the Disclosure Schedule shall not
      be
      deemed adequate to disclose an exception to a representation or warranty made
      herein unless the representation or warranty has to do with the existence of
      the
      document or other item itself. Information provided by the Company in response
      to any due diligence questionnaire shall not be deemed part of the Disclosure
      Schedule and shall not be deemed to be an exception to one or more
      representations or warranties contained in Section 4 hereof unless such
      information is specifically included on the Disclosure Schedule in accordance
      with the provisions of this Section 11.1.

    

    Notices.  All
      communications hereunder will be in writing and effective only on receipt,
      and
      will be mailed, delivered by hand or courier or sent by facsimile and
      confirmed:

    

    If
      to the
      Purchaser, to:

    

    
      	
               

            	
              TWE,
                Ltd.

            

    

    
      	
               

            	
              c/o
                Maples Finance Limited

            

    

    
      	
               

            	
              P.O.
                Box 1093 GT, Queensgate House, South Church
                Street

            

    

    
      	
               

            	
              George
                Town, Grand Cayman, Cayman Islands

            

    

    
      	
               

            	
              (345)
                945-7100

            

    

    
      	
               

            	
              Attention:
                The Directors

            

    

    

     

    
      

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      with
        a
        copy to:

      

      

      Thacher
        Proffitt & Wood LLP

      Two
        World
        Financial Center

      New
        York,
        New York 10281

    

    Facsimile:  (212)
      912-7751

    Telephone:  (212)
      912-7400

    Attention:  Mark
      I. Sokolow, Esq.

     

    if
      to the
      Sellers, to:

    

    Greater
      Community Bancorp

    GCB
      Capital Trust III

    55
      Union
      Boulevard

    Totowa,
      NJ 07512

    Facsimile:
      (973) 942-3566

    Telephone:  (973)
      942-1111

    Attention:  Chief
      Financial Officer

     

    with
      a
      copy to:

    Quarles
      & Brady LLP

    411
      East
      Wisconsin Avenue

    Milwaukee,
      Wisconsin 53202

    Facsimile:
      (414) 978-8968

    Telephone:
      (414) 277-5143

    Attention:
      Hoyt R. Stastney

    

    All
      such
      notices and communications shall be deemed to have been duly given (i) at the
      time delivered by hand, if personally delivered, (ii) five business days after
      being deposited in the mail, postage prepaid, if mailed, (iii) when answered
      back, if telexed, (iv) the next business day after being telecopied, or (v)
      the
      next business day after timely delivery to a courier, if sent by overnight
      air
      courier guaranteeing next-day delivery. From and after the Closing, the
      foregoing notice provisions shall be superseded by any notice provisions of
      the
      Operative Documents under which notice is given. The Purchaser, the Sellers,
      and
      their respective counsel, may change their respective notice addresses, from
      time to time, by written notice to all of the foregoing persons.

     

    Parties
      in Interest, Successors and Assigns.  This Agreement will inure to
      the benefit of and be binding upon the parties hereto and their respective
      successors and permitted assigns.  Nothing expressed or mentioned in
      this Agreement is intended or shall be construed to give any person other than
      the parties hereto and the affiliates, directors, officers, employees, agents
      and controlling persons referred to in Section 8 hereof, their successors,
      assigns, heirs and legal representatives, and any Subsequent Purchaser, any
      right or obligation hereunder.  None of the rights or obligations of
      the Company or the Trust under this Agreement may be assigned, whether by
      operation of law or otherwise, without the Purchaser’s prior written
      consent.  The rights and obligations of the Purchaser under this
      Agreement may be assigned without the Company’s or the Trust’s consent; provided
      that the assignee assumes the obligations of the Purchaser under this
      Agreement.

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    Recourse
      Limited.  No recourse shall be had to any subscriber, officer,
      director, employee, trustee, equity holder, certificate holder, incorporator
      or
      agent of the Purchaser or its successors or assigns for any obligations
      hereunder.  The Sellers, severally and jointly, further agree (i) not
      to take any action in respect of any claims hereunder against any subscriber,
      officer, director, employee, trustee, equity holder, certificate holder,
      incorporator or agent of the Purchaser or any of its successors or assigns
      that
      is an investment vehicle issuing collateralized debt obligations and (ii) not
      to
      institute against any successor or assign of the Purchaser that is an investment
      vehicle issuing collateralized debt obligations any insolvency, bankruptcy,
      reorganization, liquidation or similar proceedings in any jurisdiction until
      one
      year and one day or, if longer, the applicable preference period then in effect,
      as the case may be, shall have elapsed since the final payments to the holders
      of the securities issued by such investment vehicle.

    

    Amendments.  This
      Agreement may not be modified, amended, altered or supplemented, except upon
      the
      execution and delivery of a written agreement by each of the parties
      hereto.

    

    Counterparts
      and Facsimile.  This Agreement may be executed by any one or more
      of the parties hereto in any number of counterparts, each of which shall be
      deemed to be an original, but all such counterparts shall together constitute
      one and the same instrument.  This Agreement may be executed by any
      one or more of the parties hereto by facsimile which shall be effective as
      delivery of a manually executed counterpart hereof.

    

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

    

    Governing
      Law.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND
      ENFORCED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE
      TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE GENERAL
      OBLIGATIONS LAW).

    

    Submission
      to Jurisdiction.  ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY
      PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS AGREEMENT MAY BE BROUGHT
      IN OR REMOVED TO THE COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY
      OF
      NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
      YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND
      DELIVERY OF THIS AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF
      ITS
      PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
      COURTS (AND COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT
      OF OR
      IN CONNECTION WITH THIS AGREEMENT.

    

    Entire
      Agreement.  This Agreement, together with the Operative Documents
      and the other documents delivered in connection with the transactions
      contemplated by this Agreement, is intended by the parties as a final expression
      of their agreement and intended to be

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

     a
      complete and exclusive statement of the agreement and understanding of the
      parties hereto in respect of the subject matter contained herein and therein.
      There are no restrictions, promises, warranties or undertakings, other than
      those set forth or referred to herein and therein. This Agreement, together
      with
      the Operative Documents and the other documents delivered in connection with
      the
      transaction contemplated by this Agreement, supersedes all prior agreements
      and
      understandings between the parties with respect to such subject
      matter.

    

    Severability.  In
      the event that any one or more of the provisions contained herein, or the
      application thereof in any circumstances, is held invalid, illegal or
      unenforceable in any respect for any reason, the validity, legality and
      enforceability of any such provision in every other respect and of the remaining
      provisions hereof shall not be in any way impaired or affected, it being
      intended that all of the Purchaser’s rights and privileges shall be enforceable
      to the fullest extent permitted by law.

    

    Survival.
      The respective agreements, representations, warranties, indemnities and other
      statements of the Company and the Trust and their respective officers or
      trustees and of the Purchaser set forth in or made pursuant to this Agreement
      will remain in full force and effect, regardless of any investigation made
      by or
      on behalf of the Purchaser, the Company or the Trust or any of their respective
      officers, directors, trustees or controlling persons, and will survive delivery
      of and payment for the Preferred Securities.  The provisions of
      Sections 2.1, 7 and 8 shall survive the termination or cancellation of this
      Agreement.

    

    Signatures
      appear on the following page

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, this Purchase Agreement has been entered into as of the date
      first written above.

     

    
      
        	 	 
	 	
                GREATER
                  COMMUNITY BANCORP

              
	 	 
	 	
                By:

              	
                /s/
                  Anthony M. Bruno, Jr.

              
	 	 	
                Name:
                  Anthony M. Bruno, Jr.

              
	 	 	
                Title:
                  President and

                Chief
                  Executive Officer

              
	 	 
	 	 
	 	
                GCB
                  CAPITAL TRUST III

              
	 	
                By:
                  Greater Community Bancorp, as Depositor

              
	 	 
	 	
                By:

              	
                /s/
                  Stephen J. Mauger

              
	 	 	
                Name:
                  Stephen J. Mauger

              
	 	 	
                Title:
                  Sr. Vice President, Treasurer and

                Chief
                  Financial Officer

              

      

    

     

     

    
      
        	 	
                TWE,
                  LTD., as Purchaser,

              
	 	
                By:
                  Trapeza Capital Management, LLC, as Portfolio Manager

              
	 	 
	 	
                By:

              	
                /s/
                  Steven N. Stein

              
	 	 	
                Name:
                  Steven N. Stein

              
	 	 	
                Title:  Managing
                  Director

              

      

    

    
      
         

      

      
        S-1

        
          

        

      

      
         

              

                  EXHIBIT
            A-1      
    

      

    

    FORM
      OF
      THACHER PROFFITT & WOOD LLP OPINION

    

    Pursuant
      to Section 3.2(a) of the Purchase Agreement, Thacher Proffitt & Wood LLP, special counsel for
      the
      Purchaser, shall deliver an opinion to the effect that:

     

    
      	
              (i)

            	
              the
                Company and each Significant Subsidiary is validly existing as a
                corporation in good standing under the laws of the jurisdiction in
                which
                it is chartered or organized;

            

    

     

    
      	
              (ii)

            	
              the
                Company has corporate power and authority to (a) execute and deliver,
                and
                to perform its obligations under, the Operative Documents to which
                it is a
                party and (b) issue and perform its obligations under the
                Notes;

            

    

     

    
      	
              (iii)

            	
              neither
                the issue and sale of the Common Securities, the Preferred Securities
                or
                the Junior Subordinated Notes, nor the purchase by the Trust of the
                Junior
                Subordinated Notes, nor the execution and delivery of, and compliance
                with, the Operative Documents to which each is a party by, the Company
                or
                the Trust, nor the consummation of the transactions contemplated
                thereby
                will constitute a breach or violation of the Trust Agreement or the
                charter or by-laws of the Company;

            

    

     

    
      	
              (iv)

            	
              the
                Amended and Restated Trust Agreement has been duly authorized, executed
                and delivered by the Company and duly executed and delivered by the
                Administrative Trustees;

            

    

     

    
      	
              (v)

            	
              each
                of the Guarantee and the Indenture has been duly authorized, executed
                and
                delivered by the Company and, assuming it has been duly authorized,
                executed and delivered by the Guarantee Trustee and the Indenture
                Trustee,
                respectively, constitutes a legal, valid and binding obligation of
                the
                Company, enforceable against the Company in accordance with its terms,
                subject to applicable bankruptcy, insolvency and similar laws affecting
                creditors’ rights generally and to general principles of
                equity;

            

    

     

    
      	
              (vi)

            	
              the
                Junior Subordinated Notes have been duly authorized and executed
                by the
                Company and delivered to the Indenture Trustee for authentication
                in
                accordance with the Indenture and, when authenticated in accordance
                with
                the provisions of the Indenture and delivered to the Trust against
                payment
                therefor, will constitute legal, valid and binding obligations of
                the
                Company entitled to the benefits of the Indenture and enforceable
                against
                the Company in accordance with their terms, subject to applicable
                bankruptcy, insolvency and similar laws affecting creditors’ rights
                generally and to general principles of
                equity;

            

    

     

    
      	
              (vii)

            	
              the
                Trust is not, and, following the issuance of the Preferred Securities
                and
                the consummation of the transactions contemplated by the Operative
                Documents and the application of the proceeds therefrom, the Trust
                will
                not be, an “investment company” or an entity “controlled” by an
                “investment company,” in each case within the meaning of the Investment
                Company Act;

            

    

     

    
      	
              (viii)

            	
              assuming
                (a) the accuracy of the representations and warranties, and compliance
                with the agreements contained in the Purchase Agreement and (b) that
                the
                Preferred Securities are sold in a manner contemplated by, and in
                accordance with the Purchase Agreement and the Amended and Restated
                Trust
                Agreement, it is not necessary in connection with
                the

            

    

     

    
      
         

      

      
        A-1-1

        
          

        

      

      
         

      

    

    
      	
               

            	
              offer,
                sale and delivery of the Preferred Securities by the Trust to the
                Purchaser, to register any of the Securities under the Securities
                Act or
                to require qualification of the Indenture under the Trust Indenture
                Act of
                1939, as amended;

            

    

     

    
      	
              (ix)

            	
              the
                Purchase Agreement has been duly authorized, executed and delivered
                by the
                Company and the Trust; and,

            

    

     

    
      	
              (x)

            	
              the Indenture
                constitutes a valid and binding instrument of the Indenture Trustee,
                enforceable against the Indenture Trustee in accordance with its
                terms, except as rights to indemnity and contribution thereunder
                may be
                limited under applicable law or public policy, and subject to the
                qualifications that (i) enforcement thereof may be limited by bankruptcy,
                insolvency, receivership, reorganization, liquidation, voidable
                preference, moratorium or other laws (including the laws of fraudulent
                conveyance and transfer) or judicial decisions affecting the enforcement
                of creditors’ rights generally or the reorganization of financial
                institutions and (ii) the enforceability of the Indenture Trustee’s
                obligations thereunder is subject to general principles of equity
                (regardless of whether such enforceability is considered in a proceeding
                in equity or at law) and to the effect of certain laws and judicial
                decisions upon the availability and enforceability of certain remedies,
                including the remedies of specific performance and
                self-help.

            

    

     

    In
      rendering such opinions, such counsel may (A) state that its opinion is
      limited to the laws of the State of New York, the Delaware General
      Corporation Law and the federal laws of the United States; (B) as to
      matters involving the application of laws of any jurisdiction other than the
      State of New York and the Delaware General Corporation Law or the federal
      laws of the United States, (i) rely, to the extent deemed proper and
      specified in such opinion, upon the opinion of other counsel of good standing
      believed to be reliable and who are satisfactory to the Purchaser or (ii) assume
      such law is substantially similar to the law of the State of New York and,
      (C)
      as to matters of fact, rely to the extent deemed proper, on certificates of
      responsible officers of the Company and public officials.

     

    

     

    

     

    
      
         

      

      
        A-1-2

        
          

        

      

      
         

              

                  EXHIBIT
            A-2      
      

      

    

    FORM
      OF
      COMPANY COUNSEL OPINION

    OR
      OFFICERS’ CERTIFICATE

    

    Pursuant
      to Section 3.2(b) of the Purchase Agreement, either (i) counsel for the Company
      shall deliver an opinion, or (ii) the [General Counsel/Chief Legal Officer]
      of
      the Company shall deliver an opinion, or, (iii) if the Company does not have
      a
      General Counsel or Chief Legal Officer, the [Chief Executive
      Officer/President/Executive Vice President] and [Chief Financial
      Officer/Treasurer/Assistant Treasurer] of the Company shall provide an Officers’
Certificate, to the effect that:

     

    
      	
              (i)

            	
              all
                of the issued and outstanding shares of capital stock of each Significant
                Subsidiary are owned of record by the Company, and the issuance of
                the
                Preferred Securities and the Common Securities is not subject to
                any
                contractual preemptive rights known to such
                [counsel/officer];

            

    

     

    
      	
              (ii)

            	
              no
                consent, approval, authorization or order of any court or governmental
                authority is required for the issue and sale of the Common Securities,
                the
                Preferred Securities or the Junior Subordinated Notes, the purchase
                by the
                Trust of the Junior Subordinated Notes, the execution and delivery
                of and
                compliance with the Operative Documents by the Company or the Trust
                or the
                consummation of the transactions contemplated in the Operative Documents,
                except such approvals (specified in such [opinion/certificate]) as
                have
                been obtained;

            

    

     

    
      	
              (iii)

            	
              to
                the knowledge of such [counsel/officer], there is no action, suit
                or
                proceeding before or by any government, governmental instrumentality,
                arbitrator or court, domestic or foreign, now pending or threatened
                against or affecting the Trust or the Company or any Significant
                Subsidiary that could adversely affect the consummation of the
                transactions contemplated by the Operative Documents or could have
                a
                Material Adverse Effect;

            

    

     

    
      	
              (iv)

            	
              the
                Company is duly registered as a bank holding company
                under the Bank Holding Company Act and the
                regulations thereunder of the Federal Reserve Board, and the deposit
                accounts of the Company’s banking subsidiary are insured by the FDIC to
                the fullest extent permitted by law and the rules and regulations
                of the
                FDIC, and no proceeding for the termination of such insurance are
                pending
                or, to such person’s knowledge,
                threatened;

            

    

     

    
      	
              (v)

            	
              The
                execution, delivery and performance of the Operative Documents, as
                applicable, by the Company and the Trust and the consummation by
                the
                Company and the Trust of the transactions contemplated by the Operative
                Documents, as applicable, (a) will not result in any violation of
                the
                charter or bylaws of the Company, the charter or bylaws of any Significant
                Subsidiary, the Amended and Restated Trust Agreement or the Certificate
                of
                Trust, and (b) will not conflict with, or result in a breach of any
                of the
                terms or provisions of, or constitute a default (or an event which,
                with
                notice or lapse of time or both, would constitute a default) under,
                or
                result in the creation or imposition of any lien, charge and encumbrance
                upon any assets or properties of the Company or any Significant Subsidiary
                under, (A) any agreement, indenture, mortgage or instrument that
                the
                Company or any Significant Subsidiary is a party to or by which it
                may be
                bound or to which any of its

            

    

     

    
      
         

      

      
        A-2-1

        
          

        

      

      
         

      

    

    
      	
               

            	
              assets
                or properties may be subject, or (B) any existing applicable law,
                rule or
                administrative regulation [for General Counsel only:  except
                that I express no opinion with respect to the securities laws of
                the State
                of Delaware] of any court or governmental agency or authority having
                jurisdiction over the Company or any Significant Subsidiary or any
                of
                their respective assets or properties, except in case of (b), where
                any
                such violation, conflict, breach, default, lien, charge or encumbrance,
                would not have a material adverse effect on the assets, properties,
                business, results of operations or financial condition of the Company
                and
                its subsidiaries, taken as whole.

            

    

     

    All
      terms
      used but not defined herein shall have the meanings assigned to them in the
      Purchase Agreement.  A Subsequent Purchaser shall be entitled to rely
      on this [opinion/certificate].

     

    [Applies
      only to in-house counsel opinion]  [In rendering such opinions, such
      counsel may (A) state that the above is limited to the laws of the States
      of [Jurisdiction of bar admission], (B) rely as to matters of fact, to the
      extent deemed proper, on certificates of responsible officers of the Company
      and
      public officials.]

     

    

    
      
         

      

      
        A-2-2

        
          

        

      

      
         

              

                  EXHIBIT
            A-3      
        

      

    

    FORM
      OF
      TAX COUNSEL OPINION

    

    Pursuant
      to Section 3.2(c) of the Purchase Agreement, Quarles & Brady LLP, special
      tax counsel for the Sellers, shall deliver an opinion to the effect
      that:

     

    (vi)           the
      Trust will be classified for United States federal income tax purposes as a
      grantor trust and not as an association or a publicly traded partnership taxable
      as a corporation; and

     

    (vii)           for
      United States federal income tax purposes, the Junior Subordinated Notes will
      constitute indebtedness of the Company.

     

    A
      Subsequent Purchaser shall be entitled to rely on this opinion
      letter.

    

    In
      rendering such opinions, such counsel may (A) state that its opinion is
      limited to the laws of the State of [Jurisdiction of bar admission] and the
      federal laws of the United States and (B) rely as to matters of fact,
      to the extent deemed proper, on certificates of responsible officers of the
      Company and public officials.

     

    
      
         

      

      
        A-3-1

        
          

        

      

      
         

              

                  EXHIBIT
            A-4      
      

      

    

    FORM
      OF
      DELAWARE COUNSEL TRUST OPINION

    

    Pursuant
      to Section 3.2(d) of the Purchase Agreement, Morris James LLP, special Delaware
      counsel for the Trust, shall deliver an opinion to the effect that:

    

    
      	
               

            	
              The
                Trust has been duly created and is validly existing in good standing
                as a
                statutory trust under the Delaware Statutory Trust Act, and all filings
                required under the laws of the State of Delaware with respect to
                the
                creation and valid existence of the Trust as a statutory trust have
                been
                made.

            

    

    

    
      	
               

            	
              Under
                the Delaware Statutory Trust Act and the Amended and Restated Trust
                Agreement, the Trust has the trust power and authority (i) to own
                property
                and conduct its business, all as described in the Amended and Restated
                Trust Agreement, (ii) to execute and deliver, and to perform its
                obligations under, each of the Purchase Agreement, the Common Securities
                Subscription Agreement, the Junior Subordinated Note Subscription
                Agreement, the Preferred Securities and the Common Securities, and
                (iii)
                to purchase and hold the Junior Subordinated
                Notes.

            

    

    

    
      	
               

            	
              Under
                the Delaware Statutory Trust Act, the certificate attached to the
                Amended
                and Restated Trust Agreement as Exhibit C is an appropriate form
                of
                certificate to evidence ownership of the Preferred Securities. The
                Preferred Securities have been duly authorized by the Amended and
                Restated
                Trust Agreement and, when issued in accordance with the Amended and
                Restated Trust Agreement and delivered against payment therefor in
                accordance with the Amended and Restated Trust Agreement and the
                Purchase
                Agreement, the Preferred Securities will be validly issued and (subject
                to
                the qualifications set forth in this paragraph) fully paid and
                nonassessable and will represent undivided beneficial interests in
                the
                assets of the Trust, and the Preferred Security Holders will be entitled
                to the benefits of the Amended and Restated Trust Agreement. The
                Preferred
                Security Holders as beneficial owners of the Trust, will be entitled
                to
                the same limitation of personal liability extended to stockholders
                of
                private corporations for profit organized under the General Corporation
                Law of the State of Delaware. The Preferred Security Holders may
                be
                obligated to make payments or provide indemnity or security as set
                forth
                in the Amended and Restated Trust
                Agreement.

            

    

    

    
      	
               

            	
              The
                Common Securities have been duly authorized by the Amended and Restated
                Trust Agreement and, when issued in accordance with the Amended and
                Restated Trust Agreement and delivered against payment therefor in
                accordance with the Amended and Restated Trust Agreement and the
                Common
                Securities Subscription Agreement, will be validly issued and will
                represent undivided beneficial interests in the assets of the Trust,
                and
                the Common Security Holder will be entitled to the benefits of the
                Amended
                and Restated Trust Agreement.

            

    

    

    
      	
               

            	
              Under
                the Delaware Statutory Trust Act and the Amended and Restated Trust
                Agreement, the issuance of the Preferred and the Common Securities
                is not
                subject to preemptive or other similar
                rights.

            

    

    
      
         

      

      
        A-4-1

        
          

        

      

      
         

      

    

    
      	
               

            	
              Under
                the Delaware Statutory Trust Act and the Amended and Restated Trust
                Agreement, the execution and delivery by the Trust of
                the Purchase Agreement, the Common Securities Subscription
                Agreement and the Junior Subordinated Note Subscription Agreement,
                and the
                performance by the Trust of its obligations thereunder, have been
                duly
                authorized by all necessary trust action on the part of the
                Trust.

            

    

    

    
      	
               

            	
              The
                Amended and Restated Trust Agreement constitutes a legal, valid and
                binding obligation of the Company and the Trustees, enforceable against
                the Company and the Trustees in accordance with its
                terms.

            

    

    

    
      	
               

            	
              The
                issuance and sale by the Trust of the Preferred Securities and the
                Common
                Securities, the purchase by the Trust of the Junior Subordinated
                Notes,
                the execution, delivery and performance by the Trust of the Purchase
                Agreement, the Common Securities Subscription Agreement and the Junior
                Subordinated Note Subscription Agreement, the consummation by the
                Trust of
                the transactions contemplated by the Purchase Agreement, the Common
                Securities Subscription Agreement and the Junior Subordinated Note
                Subscription Agreement, and compliance by the Trust with its obligations
                thereunder are not prohibited by (i) the Certificate of Trust or
                the
                Amended and Restated Trust Agreement, or (ii) any law or regulation
                of the
                State of Delaware applicable to the
                Trust.

            

    

    

    
      	
               

            	
              No
                filing with, or authorization, approval, consent, license, order,
                registration, qualification or decree of, any Delaware court or Delaware
                governmental authority or Delaware agency is required solely in connection
                with the issuance and sale by the Trust of the Trust Securities,
                the
                purchase by the Trust of the Junior Subordinated Notes, the execution,
                delivery and performance by the Trust of the Purchase Agreement,
                the
                Common Securities Subscription Agreement and the Junior Subordinated
                Note
                Subscription Agreement, the consummation by the Trust of the transactions
                contemplated by the Purchase Agreement, and compliance by the Trust
                with
                its obligations thereunder.

            

    

    

    
      	
              (x)

            	
              The
                Preferred Security Holders (other than those Preferred Security Holders
                who reside or are domiciled in the State of Delaware) will have no
                liability for income taxes imposed by the State of Delaware solely
                as a
                result of their participation in the Trust and the Trust
                will not be liable for any income tax imposed by the State of
                Delaware.

            

    

     

    In
      rendering such opinions, such counsel may (A) state that its opinion is
      limited to the laws of the State of Delaware and (B) rely as to matters of
      fact, to the extent deemed proper, on certificates of responsible officers
      of
      the Company and public officials.

     

    
      
         

      

      
        A-4-2

        
          

        

      

      
         

              

                  EXHIBIT
            A-5      
     

      

    

    FORM
      OF
      TRUSTEE COUNSEL OPINION

    

    Pursuant
      to Section 3.2(e) of the Purchase Agreement, Morris James LLP, special counsel
      for the Property Trustee, the Guarantee Trustee, the Delaware Trustee and the
      Indenture Trustee, shall deliver an opinion to the effect that:

     

    
      	
              (i)

            	
              Wilmington
                Trust Company is duly incorporated and validly existing as a Delaware
                banking corporation in good standing under the laws of the State
                of
                Delaware with trust powers and its principal place of business in
                the
                State of Delaware.

            

    

    

    
      	
              (ii)

            	
              Wilmington
                Trust Company has requisite corporate power and authority to execute
                and
                deliver, and to perform its obligations under, the Amended and Restated
                Trust Agreement, the Guarantee Agreement and the
                Indenture.

            

    

    

    

    
      	
              (iii)

            	
              The
                execution, delivery, and performance by Wilmington Trust Company
                of the
                Amended and Restated Trust Agreement, the Guarantee Agreement and
                the
                Indenture have been duly authorized by all necessary corporate action
                on
                the part of Wilmington Trust Company, and the Amended and Restated
                Trust
                Agreement, the Guarantee Agreement and the Indenture have been duly
                executed and delivered by Wilmington Trust
                Company.

            

    

    

    
      	
              (iv)

            	
              The
                Amended and Restated Trust Agreement is a legal, valid and binding
                obligation of Wilmington Trust Company, enforceable against Wilmington
                Trust Company, in accordance with its
                terms.

            

    

    

    
      	
              (v)

            	
              No
                approval, authorization or other action by, or filing with, any
                governmental authority or agency under any law or regulation of the
                State
                of Delaware or the United States of America governing the trust powers
                of
                Wilmington Trust Company is required solely in connection with the
                execution, delivery and performance by Wilmington Trust Company of
                the
                Amended and Restated Trust Agreement, the Guarantee Agreement and
                the
                Indenture, except for the filing of the Certificate of Trust with
                the
                Secretary of State, which Certificate of Trust has been duly filed
                with
                the Secretary of State.

            

    

    

    
      	
              (vi)

            	
              The
                execution, delivery and performance of the Amended and Restated Trust
                Agreement, the Guarantee Agreement and the Indenture by Wilmington
                Trust
                Company are not prohibited by (i) the Charter or Bylaws of Wilmington
                Trust Company, (ii) any law or regulation of the State of Delaware
                or the
                United States of America governing the trust powers of Wilmington
                Trust
                Company, or (iii) to our knowledge (based and relying solely on the
                Officer Certificates), any agreements or instruments to which Wilmington
                Trust Company is a party or by which Wilmington Trust Company is
                bound or
                any judgment or order applicable to Wilmington Trust
                Company.

            

    

    

    
      	
              (vii)

            	
              The
                Junior Subordinated Notes delivered on the date hereof have been
                authenticated by due execution thereof and delivered by Wilmington
                Trust
                Company, as Indenture Trustee, in accordance with the Company
                Order.  The Preferred Securities delivered
                on

            

    

     

    
      
         

      

      
        A-5-1

        
          

        

      

      
         

      

    

    
      	
               

            	
              the
                date hereof have been authenticated by due execution thereof and
                delivered
                by Wilmington Trust Company, as Property Trustee, in accordance with
                the
                Trust Order.

            

    

     

    In
      rendering such opinions, such counsel may (A) state that its opinion is
      limited to the laws of the State of Delaware and the federal laws of the
      United States governing the trust powers of Wilmington Trust Company and
      (B) rely as to matters of fact, to the extent deemed proper, on
      certificates of responsible officers of Wilmington Trust Company and public
      officials.

     

     

     

    
 

    
      
         

      

      
        A-5-2

        
          

        

      

      
         

              

                  Exhibit
            B      
     

      

    

    FORM
      OF
      OFFICER’S CERTIFICATE

    

    The
      undersigned, the [Chief Financial Officer] [Treasurer] [Executive Vice
      President] hereby certifies, pursuant to Section 6.10 of the Purchase Agreement,
      dated as of July 2, 2007, that as of _________, 20___ the Company had the
      following ratios and balances:

     

    BANK
      HOLDING COMPANY

    

    As
      of
      [Quarterly Financial Dates]

    
      	 	 	 	 
	
              Tier
                1 Risk Weighted Assets

            	 	 	
              %

            
	 	 	 	 
	
              Ratio
                of Double Leverage

            	 	 	
              %

            
	 	 	 	 
	
              Non-Performing
                Assets to Loans and OREO

            	 	 	
              %

            
	 	 	 	 
	
              Tangible
                Common Equity as a Percentage of Tangible Assets

            	 	 	
              %

            
	 	 	 	 
	
              Ratio
                of Reserves to Non-Performing Loans

            	 	 	
              %

            
	 	 	 	 
	
              Ratio
                of Net Charge-Offs to Loans

            	 	 	
              %

            
	 	 	 	 
	
              Return
                on Average Assets (annualized)

            	 	 	
              %

            
	 	 	 	 
	
              Net
                Interest Margin (annualized)

            	 	 	
              %

            
	 	 	 	 
	
              Efficiency
                Ratio

            	 	 	
              %

            
	 	 	 	 
	
              Ratio
                of Loans to Assets

            	 	 	
              %

            
	 	 	 	 
	
              Ratio
                of Loans to Deposits

            	 	 	
              %

            
	 	 	 	 
	
              Double
                Leverage (exclude trust preferred as equity)

            	 	 	
              %

            
	 	 	 	 
	
              Total
                Assets

            	
               

            	
              $ 

            	 
	 	 	 	 
	
              Year
                to Date Income

            	
               

            	
              $ 

            	 

    

    

    *
      A table
      describing the quarterly report calculation procedures is attached.

    

    [FOR
      FISCAL YEAR END:  Attached hereto are the audited consolidated
      financial statements (including the balance sheet, income statement and
      statement of cash flows, and notes thereto, together with the report of the
      independent accountants thereon) of the Company and its consolidated
      subsidiaries for the three years ended _______, 20__.]

    

    [FOR
      FISCAL QUARTER END:  Attached hereto are the unaudited consolidated
      and consolidating  financial statements (including the balance sheet
      and income statement) of the Company and its consolidated subsidiaries for
      the
      fiscal quarter and [six/nine] month period ended _______,
      20___.]

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    The
      financial statements fairly present in all material respects, in accordance
      with
      U.S. generally accepted accounting principles (“GAAP”), the financial position
      of the Company and its consolidated subsidiaries, and the results of operations
      and changes in financial condition as of the date, and for the [____ quarter
      interim] [annual] period ended _______, 20__, and such financial statements
      have
      been prepared in accordance with GAAP consistently applied throughout the period
      involved (expect as otherwise noted therein).

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate as of
      this _____ day of _____________, 20__

     

     

    
      
        	 	 	 
	 	
                Name:

              	 
	 	
                Title:

              	 
	 	
                Greater
                  Community Bancorp

              	 
	 	
                55
                  Union Boulevard

              	 
	 	
                Totowa,
                  NJ 07512

              	 
	 	
                 (973)
                  942-1111

              	 

      

    

    

    
      
        
           

        

        
          B-2

          
            

          

        

        
           

        

      

    

     

    Exhibit
      B

    

    

    FINANCIAL
      DEFINITIONS

    

    BANK
      HOLDING COMPANY

    

    
      	
              Report
                Item

            	
              Corresponding
                FRY-9C or LP Line Items with Line 
Item corresponding
                Schedules

            	
              Description
                of Calculation

            
	
              Tier
                1 Risk 
Weighted Assets

            	
              BHCK7206

              Schedule
                HC-R

            	
              Tier
                1 Risk Ratio: Core Capital (Tier 1)/ Risk-Adjusted
                Assets

            
	
              Ratio
                of Double 
Leverage

            	
              (BHCP0365)/(BCHCP3210)

              Schedule
                PC in the LP

            	
              Total
                equity investments in subsidiaries divided by the total equity capital.
                This field is calculated at the parent company level. “Subsidiaries”
                include bank, bank holding company, and non-bank
                subsidiaries.

            
	
              Non-Performing
                
Assets to Loans 
and OREO

            	
              (BHCK5525-BHCK3506+BHCK5526-BHCK3507+BHCK2744/(BHCK2122+BHCK2744)
                Schedules HC-C, HC-M & HC-N

            	
              Total
                Nonperforming Assets (NPLs+Foreclosed Real Estate+Other Nonaccrual
&
                Repossessed Assets)/Total Loans+Foreclosed Real Estate

            
	
              Tangible
                Common 
Equity as a 
Percentage of 
Tangible
                Assets

            	
              (BHDM3210-BHCK3163)/(BHCK2170-BHCK3163)

              Schedule
                HC

            	
              (Equity
                Capital – Goodwill)/(Total Assets – Goodwill)

            
	
              Ratio
                of Reserves 
to Non-Performing 
Loans

            	
              (BHCK3123+BHCK3128)/(BHCK5525-BHCK3506+BHCK5526-BHCK3507)

              Schedules
                HC & HC-N & HC-R

            	
              Total
                Loan Loss and Allocated Transfer Risk Reserves/ Total Nonperforming
                Loans
                (Nonaccrual + Restructured)

            
	
              Ratio
                of Net 
Charge-Offs 
to Loans

            	
              (BHCK4635-BHCK4605)/(BHCK3516)

              Schedules
                HI-B & HC-K

            	
              Net
                charge offs for the period as a percentage of average
                loans.

            
	
              Return
                on Average 
Assets 
(annualized)

            	
              (BHCK4340/BHCK3368)

              Schedules
                HI & HC-K

            	
              Net
                Income as a percentage of Assets.

            
	
              Net
                Interest 
Margin 
(annualized)

            	
              (BHCK4519/(BHCK3515+BHCK3365+BHCK3516+BHCK3401+BHCKB985)

              Schedules
                HI Memorandum and HC-K

            	
              (Net
                Interest Income Fully Taxable Equivalent, if available/Average Earning
                Assets)

            
	
              Efficiency
                Ratio

            	
              (BHCK4093)/(BHCK4519+BHCK4079)

              Schedule
                HI

            	
              (Non-interest
                Expense)/(Net Interest Income Fully Taxable Equivalent, if available,
                plus
                Non-interest Income)

            
	
              Ratio
                of Loans to 
Assets

            	
              (BHCKB528+BHCK5369)/(BHCK2170)

              Schedule
                HC

            	
              Total
                Loans & Leases (Net of Unearned Income & Gross of Reserve)/Total
                Assets

            
	
              Ratio
                of Loans to 
Deposits

            	
              (BHCKB528+BHCK5369)/(BHDM6631+BHDM6636+BHFN6631+BHFN6636)

              Schedule
                HC

            	
              Total
                Loans & Leases (Net of Unearned Income & Gross of Reserve)/Total
                Deposits (Includes Domestic and Foreign Deposits)

            
	
              Total
                Assets

            	
              (BHCK2170)

              Schedule
                HC

            	
              The
                sum of total assets. Includes cash and balances due from depository
                institutions; securities; federal funds sold and securities purchased
                under agreements to resell; loans and lease financing receivables;
                trading
                assets; premises and fixed assets; other real estate owned; investments
                in
                unconsolidated subsidiaries and associated companies; customer’s liability
                on acceptances outstanding; intangible assets; and other
                assets.

            

    

     

    B-3Equity Inns, Inc. 2007 Stock Incentive Plan

     

    
      

      

    

    
 

    

    

    Exhibit
      10.3

    

    

    

    

    

    

    

    

    

    

    EQUITY
      INNS, INC.

     

    2007
      STOCK INCENTIVE PLAN

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    
      	
              ARTICLE
                I.

            	
              DEFINITIONS

            	
              1

            
	 	 	 
	
              1.01.

            	
              Acquiring
                Person

            	
              1

            
	
              1.02.

            	
              Administrator

            	
              1

            
	
              1.03.

            	
              Affiliate

            	
              1

            
	
              1.04.

            	
              Agreement

            	
              1

            
	
              1.05.

            	
              Associate

            	
              1

            
	
              1.06.

            	
              Board

            	
              1

            
	
              1.07.

            	
              Change
                in Control

            	
              2

            
	
              1.08.

            	
              Code

            	
              2

            
	
              1.09.

            	
              Committee

            	
              3

            
	
              1.10.

            	
              Common
                Stock

            	
              3

            
	
              1.11.

            	
              Company

            	
              3

            
	
              1.12.

            	
              Continuing
                Director

            	
              3

            
	
              1.13.

            	
              Control
                Affiliate

            	
              3

            
	
              1.14.

            	
              Control
                Change Date

            	
              3

            
	
              1.15.

            	
              Corresponding
                SAR

            	
              3

            
	
              1.16.

            	
              Exchange
                Act

            	
              3

            
	
              1.17.

            	
              Fair
                Market Value

            	
              4

            
	
              1.18.

            	
              Incentive
                Award

            	
              4

            
	
              1.19.

            	
              Initial
                Value

            	
              4

            
	
              1.20.

            	
              Option

            	
              4

            
	
              1.21.

            	
              Participant

            	
              4

            
	
              1.22.

            	
              Performance
                Shares

            	
              5

            
	
              1.23.

            	
              Person

            	
              5

            
	
              1.24.

            	
              Plan

            	
              5

            
	
              1.25.

            	
              Related
                Entity

            	
              5

            
	
              1.26.

            	
              SAR

            	
              5

            
	
              1.27.

            	
              Services

            	
              6

            
	
              1.28.

            	
              Stock
                Award

            	
              6

            
	 	 	 
	
              ARTICLE
                II

            	
              PURPOSES

            	
              6

            
	 	 	 
	
              ARTICLE
                III

            	
              ADMINISTRATION

            	
              6

            
	 	 	 
	
              ARTICLE
                IV

            	
              ELIGIBILITY

            	
              7

            
	 	 	 
	
              ARTICLE
                V

            	
              COMMON
                STOCK SUBJECT TO PLAN

            	
              7

            
	 	 	 
	
              5.01

            	
              Common
                Stock Issued

            	
              7

            
	
              5.02

            	
              Aggregate
                Limit

            	
              8

            
	
              5.03

            	
              Reallocation
                of Shares

            	
              8

            
	 	 	 
	
              ARTICLE
                VI

            	
              OPTIONS

            	
              9

            
	 	 	 
	
              6.01.

            	
              Award

            	
              9

            
	
              6.02.

            	
              Option
                Price

            	
              9

            
	
              6.03.

            	
              Maximum
                Option Period

            	
              9

            
	
              6.04.

            	
              Nontransferability

            	
              9

            
	
              6.05.

            	
              Transferable
                Options

            	
              10

            
	
              6.06.

            	
              Employee
                Status

            	
              10

            
	
              6.07.

            	
              Exercise

            	
              10

            
	
              6.08.

            	
              Payment

            	
              11

            
	
              6.09.

            	
              Change
                in Control

            	
              11

            
	
              6.10.

            	
              Shareholder
                Rights

            	
              11

            
	
              6.11.

            	
              Disposition
                of Shares

            	
              11

            
	 	 	 
	
              ARTICLE
                VII

            	
              SARS

            	
              11

            
	 	 	 
	
              7.01.

            	
              Award

            	
              11

            
	
              7.02.

            	
              Maximum
                SAR Period

            	
              12

            
	
              7.03.

            	
              Nontransferability

            	
              12

            
	
              7.04.

            	
              Transferable
                SARs

            	
              12

            
	
              7.05.

            	
              Exercise

            	
              12

            
	
              7.06.

            	
              Change
                in Control

            	
              13

            
	
              7.07.

            	
              Employee
                Status

            	
              13

            
	
              7.08.

            	
              Settlement

            	
              13

            
	
              7.09.

            	
              Shareholder
                Rights

            	
              13

            
	 	 	 
	
              ARTICLE
                VIII

            	
              STOCK
                AWARDS

            	
              13

            
	 	 	 
	
              8.01.

            	
              Award

            	
              13

            
	
              8.02.

            	
              Vesting

            	
              14

            
	
              8.03.

            	
              Performance
                Objectives

            	
              14

            
	
              8.04.

            	
              Employee
                Status

            	
              14

            
	
              8.05.

            	
              Change
                in Control

            	
              15

            
	
              8.06.

            	
              Shareholder
                Rights

            	
              15

            
	 	 	 
	
              ARTICLE
                IX

            	
              PERFORMANCE
                SHARE AWARDS

            	
              15

            
	 	 	 
	
              9.01.

            	
              Award

            	
              15

            
	
              9.02.

            	
              Earning
                the Award

            	
              15

            
	
              9.03.

            	
              Payment

            	
              16

            
	
              9.04.

            	
              Shareholder
                Rights

            	
              16

            
	
              9.05.

            	
              Nontransferability

            	
              16

            
	
              9.06.

            	
              Transferable
                Performance Shares

            	
              16

            
	
              9.07.

            	
              Employee
                Status

            	
              17

            
	
              9.08.

            	
              Change
                in Control

            	
              17

            
	 	 	 
	
              ARTICLE
                X

            	
              INCENTIVE
                AWARDS

            	
              17

            
	 	 	 
	
              10.01.

            	
              Award

            	
              17

            
	
              10.02.

            	
              Terms
                and Conditions

            	
              17

            
	
              10.03.

            	
              Nontransferability

            	
              18

            
	
              10.04.

            	
              Transferable
                Incentive Awards

            	
              18

            
	
              10.05.

            	
              Employee
                Status

            	
              18

            
	
              10.06.

            	
              Change
                in Control

            	
              18

            
	
              10.07.

            	
              Shareholder
                Rights

            	
              18

            
	 	 	 
	
              ARTICLE
                XI

            	
              CHANGE
                IN CONTROL

            	
              19

            
	 	 	 
	
              11.01.

            	
              Excise
                Tax

            	
              19

            
	
              11.02.

            	
              Impact
                of Change in Control

            	
              19

            
	
              11.03.

            	
              Assumption
                Upon Change in Control

            	
              20

            
	
              11.04.

            	
              Cash-Out
                Upon Change in Control

            	
              20

            
	 	 	 
	
              ARTICLE
                XII

            	
              ADJUSTMENT
                UPON CHANGE IN COMMON STOCK

            	
              20

            
	 	 	 
	
              ARTICLE
                XIII

            	
              COMPLIANCE
                WITH LAW AND APPROVAL OF

              REGULATORY
                BODIES

            	
               

              21

            
	 	 	 
	
              ARTICLE
                XIV

            	
              GENERAL
                PROVISIONS

            	
              22

            
	 	 	 
	
              14.01.

            	
              Effect
                on Employment and Service

            	
              22

            
	
              14.02.

            	
              Unfunded
                Plan

            	
              22

            
	
              14.03.

            	
              Rules
                of Construction

            	
              22

            
	 	 	 
	
              ARTICLE
                XV

            	
              AMENDMENT

            	
              22

            
	 	 	 
	
              ARTICLE
                XVI

            	
              DURATION
                OF PLAN

            	
              23

            
	 	 	 
	
              ARTICLE
                XVII

            	
              EFFECTIVE
                DATE OF PLAN

            	
              23

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I  

     

     DEFINITIONS

     

    1.01.  Acquiring
      Person

     

    Acquiring
      Person means that a Person, considered alone or together with all Control
      Affiliates and Associates of that Person, is or becomes directly or indirectly
      the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of
      securities representing at least twenty percent (20%) of (i) the Company’s then
      outstanding securities entitled to vote generally in the election of the Board;
      or (ii) Services’ then outstanding securities entitled to vote generally in the
      election of the Board of Directors of Services.

     

    1.02.  Administrator

     

    Administrator
      means the Committee and any delegate of the Committee that is appointed in
      accordance with Article III.

     

    1.03.  Affiliate

     

    Affiliate
      means any “subsidiary” or “parent” corporation (within the meaning of Section
      424 of the Code) of the Company.

     

    1.04.  Agreement

     

    Agreement
      means a written agreement (including any amendment or supplement thereto)
      between the Company and a Participant specifying the terms and conditions of
      a
      Stock Award, an award of Performance Shares, an Incentive Award or an Option
      or
      SAR granted to such Participant.

     

    1.05.  Associate

     

    Associate,
      with respect to any Person, is defined in Rule 12b-2 of the General Rules and
      Regulations under the Exchange Act. An Associate does not include the Company
      or
      a majority-owned subsidiary of the Company.

     

    1.06.  Board

     

    Board
      means the Board of Directors of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    1.07.  Change
      in Control

     

    Change
      in
      Control means (i) a Person is or becomes an Acquiring Person; (ii) holders
      of
      the securities of the Company entitled to vote thereon approve any agreement
      with a Person (or, if such approval is not required by applicable law and is
      not
      solicited by the Company, the closing of such an agreement) that involves the
      transfer of at least fifty percent (50%) of the Company’s total assets on a
      consolidated basis, as reported in the Company’s consolidated financial
      statements filed with the Securities and Exchange Commission; (iii) holders
      of
      the securities of the Company entitled to vote thereon approve a transaction
      (or, if such approval is not required by applicable law and is not solicited
      by
      the Company, the closing of such a transaction) pursuant to which the Company
      will undergo a merger, consolidation, or statutory share exchange with a Person,
      regardless of whether the Company is intended to be the surviving or resulting
      entity after the merger, consolidation, or statutory share exchange,
other than
      a
      transaction that results in the voting securities of the Company carrying the
      right to vote in elections of persons to the Board outstanding immediately
      prior
      to the closing of the transaction continuing to represent (either by remaining
      outstanding or by being converted into voting securities of the surviving
      entity) at least 66 2/3% (sixty-six and two-thirds percent) of the Company’s
      voting securities carrying the right to vote in elections of persons to the
      Company’s Board, or such securities of such surviving entity, outstanding
      immediately after the closing of such transaction; (iv) the Continuing Directors
      cease for any reason to constitute a majority of the Board; (v) holders of
      the
      securities of the Company entitled to vote thereon approve a plan of complete
      liquidation of the Company or an agreement for the sale or liquidation by the
      Company of substantially all of the Company’s assets (or, if such approval is
      not required by applicable law and is not solicited by the Company, the
      commencement of actions constituting such a plan or the closing of such an
      agreement); or (vi) the Board adopts a resolution to the effect that, in its
      judgment, as a consequence of any one or more transactions or events or series
      of transactions or events, a Change in Control of Services or of the Company
      has
      effectively occurred. The Board shall be entitled to exercise its sole and
      absolute discretion in exercising its judgment and in the adoption of such
      resolution, whether or not any such transaction(s) or event(s) might be deemed,
      individually or collectively, to satisfy any of the criteria set forth in
      subparagraphs (i) through (v) above.

     

    1.08.  Code

     

    Code
      means the Internal Revenue Code of 1986, and any amendments
      thereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    1.09.  Committee

     

    Committee
      means the Compensation Committee of the Board.

     

    1.10.  Common
      Stock

     

    Common
      Stock means the common stock of the Company.

     

    1.11.  Company

     

    Company
      means Equity Inns, Inc.

     

    1.12.  Continuing
      Director

     

    Continuing
      Director means any member of the Board, while a member of the Board and (i)
      who
      was a member of the Board on March 1, 1999 or (ii) whose nomination for or
      election to the Board was recommended or approved by a majority of the
      Continuing Directors.

     

    1.13.  Control
      Affiliate

     

    Control
      Affiliate with respect to any Person, means an affiliate as defined in Rule
      12b-2 of the General Rules and Regulations under the Exchange Act.

     

    1.14.  Control
      Change Date

     

    Control
      Change Date means the date on which a Change in Control occurs. If a Change
      in
      Control occurs on account of a series of transactions, the “Control Change Date”
is the date of the last of such transactions.

     

    1.15.  Corresponding
      SAR

     

    Corresponding
      SAR means an SAR that is granted in relation to a particular Option and that
      can
      be exercised only upon the surrender to the Company, unexercised, of that
      portion of the Option to which the SAR relates.

     

    1.16.  Exchange
      Act

     

    Exchange
      Act means the Securities Exchange Act of 1934, as amended as of January 1,
      1990.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    1.17.  Fair
      Market Value

     

    Fair
      Market Value means, on any given date, the reported “closing” price of a share
      of Common Stock in the New York over-the-counter market as reported by the
      National Association of Securities Dealers, Inc. The preceding sentence to
      the
      contrary notwithstanding, if the Common Stock is listed upon an established
      stock exchange or exchanges, the Fair Market Value on any given date shall
      be
      the highest closing price of the Common Stock on such exchange or exchanges.
      If,
      on any given date, no share of Common Stock is traded on the New York
      over-the-counter market or on an established stock exchange, then Fair Market
      Value shall be determined with reference to the next preceding day that the
      Common Stock was so traded.

     

    1.18.  Incentive
      Award

     

    Incentive
      Award means an award which, subject to such terms and conditions as may be
      prescribed by the Administrator, entitles the Participant to receive a cash
      payment from the Company or an Affiliate.

     

    1.19.  Initial
      Value

     

    Initial
      Value means the amount set forth in an Agreement evidencing an SAR (which cannot
      be less than the Fair Market Value of one share of Common stock on the date
      of
      grant of an SAR). If the Agreement evidencing an SAR does not specify the
      Initial Value, then the Initial Value shall be the Fair Market Value of one
      share of Common Stock on the date of grant of the SAR. Except as provided in
      Article XII, the Administrator may not reduce the Initial Value of a previously
      granted SAR, whether through amendment, cancellation, replacement grant or
      any
      other means, without the approval of shareholders.

     

    1.20.  Option

     

    Option
      means a stock option that entitles the holder to purchase from the Company
      a
      stated number of shares of Common Stock at the price set forth in an Agreement.
      

     

    1.21.  Participant

     

    Participant
      means an employee of the Company or an Affiliate or a member of the Board,
      who
      satisfies the requirements of Article IV and is selected by the Administrator
      to
      receive an award of Performance Shares, a Stock Award, an Option, an SAR, an
      Incentive Award or a combination thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    1.22.  Performance
      Shares

     

    Performance
      Shares means an award, in the amount determined by the Administrator, stated
      with reference to a specified number of shares of Common Stock, that in
      accordance with the terms of an Agreement entitles the holder to receive a
      cash
      payment or shares of Common Stock or a combination thereof. 

     

    1.23.  Person

     

    Person
      means any human being, firm, corporation, partnership, or other entity. “Person”
also includes any human being, firm, corporation, partnership, or other entity
      as defined in sections 13(d)(3) and 14(d)(2) of the Exchange Act. The term
      “Person” does not include the Company, Services or any Related Entity, and the
      term Person does not include any employee-benefit plan maintained by the
      Company, Services, or any Related Entity, and any person or entity organized,
      appointed, or established by the Company, Services or any Related Entity for
      or
      pursuant to the terms of any such employee-benefit plan, unless the Board or
      Services’ Board determines that such an employee-benefit plan or such person or
      entity is a “Person”.

     

    1.24.  Plan

     

    Plan
      means the Equity Inns, Inc. 2007 Stock Incentive Plan.

     

    1.25.  Related
      Entity

     

    Related
      Entity means any entity that is part of a controlled group of corporations
      or is
      under common control with the Company within the meaning of Sections 1563(a),
      414(b) or 414(c) of the Code.

     

    1.26.  SAR

     

    SAR
      means
      a stock appreciation right that in accordance with the terms of an Agreement
      entitles the holder to receive, with respect to each share of Common Stock
      encompassed by the exercise of such SAR, the amount determined by the
      Administrator and specified in an Agreement. In the absence of such a
      determination, the holder shall be entitled to receive, with respect to each
      share of Common Stock encompassed by the exercise of such SAR, the excess of
      the
      Fair Market Value on the date of exercise over the Initial Value. References
      to
“SARs” include both Corresponding SARs and SARs granted independently of
      Options, unless the context requires otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    1.27.  Services

     

    Services
      means Equity Inns Services, Inc.

     

    1.28.  Stock
      Award

     

    Stock
      Award means shares of Common Stock awarded to a Participant under
      Article VIII.

     

    ARTICLE
      II  

     

    PURPOSES

     

    The
      Plan
      is intended to assist the Company and its Affiliates in recruiting and retaining
      individuals with ability and initiative by enabling such persons to participate
      in the future success of the Company and its Affiliates and to associate their
      interests with those of the Company and its shareholders. The Plan is intended
      to permit the grant of both Options qualifying under Section 422 of the
      Code (“incentive stock options”) and Options not so qualifying, and the grant of
      SARs, Stock Awards, Performance Shares and Incentive Awards. No Option that
      is
      intended to be an incentive stock option shall be invalid for failure to qualify
      as an incentive stock option. The proceeds received by the Company from the
      sale
      of shares of Common Stock pursuant to this Plan shall be used for general
      corporate purposes.

     

    ARTICLE
      III  

     

    ADMINISTRATION

     

    The
      Plan
      shall be administered by the Administrator. The Administrator shall have
      authority to grant Stock Awards, Performance Shares, Incentive Awards, Options
      and SARs upon such terms (not inconsistent with the provisions of this Plan),
      as
      the Administrator may consider appropriate. Such terms may include conditions
      (in addition to those contained in this Plan), on the exercisability of all
      or
      any part of an Option or SAR or on the transferability or forfeitability of
      a
      Stock Award, an award of Performance Shares or an Incentive Award.
      Notwithstanding any such conditions, the Administrator may, in its discretion,
      (i) accelerate the time at which any Option or SAR may be exercised, or the
      time
      at which a Stock Award may become transferable or nonforfeitable or the time
      at
      which an Incentive Award or award of Performance Shares may be settled or (ii)
      suspend the forfeiture of any award made under this Plan. In addition, the
      Administrator shall have complete authority to interpret all provisions of
      this
      Plan; to prescribe the form of Agreements; to adopt, amend, and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    rescind
      rules and regulations pertaining to the administration of the Plan; and to
      make
      all other determinations necessary or advisable for the administration of this
      Plan. The express grant in the Plan of any specific power to the Administrator
      shall not be construed as limiting any power or authority of the Administrator.
      Any decision made, or action taken, by the Administrator or in connection with
      the administration of this Plan shall be final and conclusive. Neither the
      Administrator nor any member of the Committee shall be liable for any act done
      in good faith with respect to this Plan or any Agreement, Option, SAR, Stock
      Award, Incentive Award or award of Performance Shares. All expenses of
      administering this Plan shall be borne by the Company.

     

    The
      Committee, in its discretion, may delegate to one or more officers of the
      Company all or part of the Committee’s authority and duties with respect to
      grants and awards to individuals who are not subject to the reporting and other
      provisions of Section 16 of the Exchange Act. The Committee may revoke or
      amend the terms of a delegation at any time but such action shall not invalidate
      any prior actions of the Committee’s delegate or delegates that were consistent
      with the terms of the Plan.

     

    ARTICLE
      IV  

     

    ELIGIBILITY

     

    Any
      employee of the Company or an Affiliate (including a corporation that becomes
      an
      Affiliate after the adoption of this Plan), is eligible to participate in this
      Plan if the Administrator, in its sole discretion, determines that such person
      has contributed significantly or can be expected to contribute significantly
      to
      the profits or growth of the Company or an Affiliate. Members of the Board
      may
      be selected to participate in this Plan without regard to whether they are
      employees of the Company or an Affiliate.

     

    ARTICLE
      V  

     

    COMMON
      STOCK SUBJECT TO PLAN

     

    5.01. Common
      Stock Issued

     

    Upon
      the
      award of Common Stock pursuant to a Stock Award or in settlement of an award
      of
      Performance Shares, the Company may issue Common Stock from its authorized
      but
      unissued Common Stock. Upon the exercise of any Option or SAR, the Company
      may
      deliver to the Participant (or the Participant’s broker if the Participant so
      directs), shares of Common Stock from its authorized but unissued Common Stock.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    5.02. Aggregate
      Limit

     

    The
      maximum aggregate number of shares of Common Stock that may be issued under
      this
      Plan pursuant to the exercise of SARs and Options and the grant of Stock Awards
      and the settlement of Performance Shares is 3,800,000 shares. The maximum
      aggregate number of shares of Common Stock that may be issued under this Plan
      as
      Stock Awards and in settlement of Performance Shares is 2,750,000 shares. The
      maximum aggregate number of shares of Common Stock that may be issued under
      this
      Plan and the maximum number of shares of Common Stock that may be issued as
      Stock Awards and in settlement of Performance Shares shall be subject to
      adjustment as provided in Article XII. 

     

    If
      an SAR
      is exercised and settled, in whole or in part, with shares of Common Stock,
      the
      maximum aggregate number of shares that may be issued under this Plan shall
      be
      reduced by the number of SARs exercised rather than the number of shares issued
      in settlement of the exercise.

     

    If
      shares
      are withheld upon the exercise of an Option or SAR on account of a Participant’s
      related tax liability or if shares subject to a Stock Award or Performance
      Share
      award are reduced, withheld or surrendered on account of a Participant’s related
      tax liability, then the maximum aggregate number of shares that may be issued
      under this Plan shall be reduced by the number of shares that would have been
      issued upon the exercise of the Option or SAR or the number of shares subject
      to
      the Stock Award or Performance Share award prior to the withholding, reduction
      or surrender of shares on account of the Participant’s related tax
      liability.

     

    5.03. Reallocation
      of Shares

     

    If
      an
      Option is terminated, in whole or in part, for any reason other than its
      exercise or the exercise of a Corresponding SAR that is settled with shares
      of
      Common Stock, the number of shares allocated to the Option or portion thereof
      may be reallocated to other Options, SARs, Performance Shares, and Stock Awards
      to be granted under this Plan. If an SAR is terminated, in whole or in part,
      for
      any reason other than its exercise that is settled with shares of Common Stock
      or the exercise of a related Option, the number of shares of Common Stock
      allocated to the SAR or portion thereof may be reallocated to other Options,
      SARs, Performance Shares, and Stock Awards to be granted under this Plan. If
      an
      award of Performance Shares is terminated, in whole or in part, for any reason
      other than its settlement with shares of Common Stock, the number of shares
      allocated to the Performance Share 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    award
      or
      portion thereof may be reallocated to other Options, SARs, Performance Shares
      and Stock Awards to be granted under this Plan. If a Stock Award is forfeited,
      in whole or in part, for any reason, the number of shares of Common Stock
      allocated to the Stock Award or portion thereof may be reallocated to other
      Options, SARs, Performance Shares and Stock Awards to be granted under this
      Plan. 

     

    ARTICLE
      VI  

     

    OPTIONS

     

    6.01. Award

     

    In
      accordance with the provisions of Article IV, the Administrator will designate
      each individual to whom an Option is to be granted and will specify the number
      of shares of Common Stock covered by such awards; provided, however, that no
      Participant may be granted Options in any calendar year covering more than
      450,000 shares. 

     

    6.02. Option
      Price

     

    The
      price
      per share for shares of Common Stock purchased on the exercise of an Option
      shall be determined by the Administrator on the date of grant, but shall not
      be
      less than the Fair Market Value on the date the Option is granted. Except as
      provided in Article XII, the Administrator may not reduce the Option price
      of a
      previously granted Option, whether through amendment, cancellation, replacement
      grant or any other means without the approval of shareholders.

     

    6.03. Maximum
      Option Period

     

    The
      maximum period in which an Option may be exercised shall be determined by the
      Administrator on the date of grant, except that no Option that is an incentive
      stock option shall be exercisable after the expiration of ten years from the
      date such Option was granted. The terms of any Option that is an incentive
      stock
      option may provide that it is exercisable for a period less than such maximum
      period.

     

    6.04. Nontransferability

     

    Except
      as
      provided in Section 6.05, each Option granted under this Plan shall be
      nontransferable except by will or by the laws of descent and distribution.
      In
      the event of any transfer of an Option (by the Participant or his transferee),
      the Option and any Corresponding SAR that relates to such Option must be
      transferred to the same person or persons or entity or entities. Except as
      provided in Section 6.05, during the lifetime of the Participant to whom the
      Option is granted, the Option may be exercised only by the Participant. No
      right
      or interest of a Participant in any Option
      shall be liable for, or subject to, any lien, obligation, or liability of such
      Participant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.05 Transferable
      Options

     

    Section
      6.04 to the contrary notwithstanding, if the Agreement provides, an Option
      that
      is not an incentive stock option may be transferred by a Participant to the
      Participant’s children, grandchildren, spouse, one or more trusts for the
      benefit of such family members or a partnership in which such family members
      are
      the only partners, on such terms and conditions as may be permitted under
      Securities Exchange Commission Rule 16b-3 as in effect from time to time. The
      holder of an Option transferred pursuant to this Section shall be bound by
      the
      same terms and conditions that governed the Option during the period that it
      was
      held by the Participant; provided, however, that such transferee may not
      transfer the Option except by will or the laws of descent and distribution.
      In
      the event of any transfer of an Option (by the Participant or his transferee),
      the Option and any Corresponding SAR that relates to such Option must be
      transferred to the same person or persons or entity or entities.

     

    6.06. Employee
      Status

     

    For
      purposes of determining the applicability of Section 422 of the Code
      (relating to incentive stock options), or in the event that the terms of any
      Option provide that it may be exercised only during employment or within a
      specified period of time after termination of employment, the Administrator
      may
      decide to what extent leaves of absence for governmental or military service,
      illness, temporary disability, or other reasons shall not be deemed
      interruptions of continuous employment.

     

    6.07. Exercise

     

    Subject
      to the provisions of this Plan and the applicable Agreement, an Option may
      be
      exercised in whole at any time or in part from time to time at such times and
      in
      compliance with such requirements as the Administrator shall determine;
      provided, however, that incentive stock options (granted under the Plan and
      all
      plans of the Company and its Affiliates) may not be first exercisable in a
      calendar year for shares of Common Stock having a Fair Market Value (determined
      as of the date an Option is granted) exceeding $100,000. An Option granted
      under
      this Plan may be exercised with respect to any number of whole shares less
      than
      the full number for which the Option could be exercised. A partial exercise
      of
      an Option shall not affect the right to exercise the Option from time to time
      in
      accordance with this Plan and the applicable Agreement with respect to the
      remaining shares subject 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    to
      the
      Option. The exercise of an Option shall result in the termination of any
      Corresponding SAR to the extent of the number of shares with respect to which
      the Option is exercised.

     

    6.08. Payment

     

    Subject
      to rules established by the Administrator and unless otherwise provided in
      an
      Agreement, payment of all or part of the Option price may be made in cash,
      a
      cash equivalent acceptable to the Administrator, or with shares of Common Stock.
      If shares of Common Stock are used to pay all or part of the Option price,
      the
      sum of the cash and cash equivalent and the Fair Market Value (determined as
      of
      the day preceding the date of exercise) of the shares surrendered must not
      be
      less than the Option price of the shares for which the Option is being
      exercised.

     

    6.09. Change
      in Control

     

    Section
      6.07 to the contrary notwithstanding and subject to Article XI, each outstanding
      Option shall be fully exercisable (in whole or in part at the discretion of
      the
      holder) on and after a Control Change Date.

     

    6.10. Shareholder
      Rights

     

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

     

    6.11. Disposition
      of Shares

     

    A
      Participant shall notify the Company of any sale or other disposition of shares
      acquired pursuant to an Option that was an incentive stock option if such sale
      or disposition occurs (i) within two years of the grant of an Option or
      (ii) within one year of the issuance of shares to the Participant. Such
      notice shall be in writing and directed to the Secretary of the
      Company.

     

    ARTICLE
      VII  

    SARS

     

    7.01. Award

     

    In
      accordance with the provisions of Article IV, the Administrator will designate
      each individual to whom SARs are to be granted and will specify the number
      of
      shares of Common Stock covered by such awards; provided, however, that no
      Participant may be granted SARs in any calendar year covering more than 450,000
      shares of Common Stock. For 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    purposes
      of the foregoing limits, an Option and Corresponding SAR shall be treated as
      a
      single award. In addition no Participant may be granted Corresponding SARs
      (under all incentive stock option plans of the Company and its Affiliates)
      that
      are related to incentive stock options which are first exercisable in any
      calendar year for shares of Common Stock having an aggregate Fair Market Value
      (determined as of the date the related Option is granted) that exceeds
      $100,000.

     

    7.02. Maximum
      SAR Period

     

    The
      term
      of each SAR shall be determined by the Administrator on the date of grant,
      except that no SAR shall have a term of more than ten years from the date the
      SAR was granted. The terms of any SAR may provide that it has a term that is
      less than such maximum period.

     

    7.03. Nontransferability

     

    Except
      as
      provided in Section 7.04, each SAR granted under this Plan shall be
      nontransferable except by will or by the laws of descent and distribution.
      In
      the event of any such transfer, a Corresponding SAR and the related Option
      must
      be transferred to the same person or persons or entity or entities. During
      the
      lifetime of the Participant to whom the SAR is granted, the SAR may be exercised
      only by the Participant. No right or interest of a Participant in any SAR shall
      be liable for, or subject to, any lien, obligation, or liability of such
      Participant.

     

    7.04. Transferable
      SARs

     

    Section
      7.03 to the contrary notwithstanding, if the Agreement provides, an SAR, other
      than a Corresponding SAR that is related to an incentive stock option, may
      be
      transferred by a Participant to the Participant’s children, grandchildren,
      spouse, one or more trusts for the benefit of such family members or a
      partnership in which such family members are the only partners, on such terms
      and conditions as may be permitted under Securities Exchange Commission Rule
      16b-3 as in effect from time to time. The holder of an SAR transferred pursuant
      to this Section shall be bound by the same terms and conditions that governed
      the SAR during the period that it was held by the Participant; provided,
      however, that such transferee may not transfer the SAR except by will or the
      laws of descent and distribution. In the event of any transfer of a
      Corresponding SAR (by the Participant or his transferee), the Corresponding
      SAR
      and the related Option must be transferred to the same person or person or
      entity or entities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    7.05. Exercise

     

    Subject
      to the provisions of this Plan and the applicable Agreement, an SAR may be
      exercised in whole at any time or in part from time to time at such times and
      in
      compliance with such requirements as the Administrator shall determine;
      provided, however, that a Corresponding SAR that is related to an incentive
      stock option may be exercised only to the extent that the related Option is
      exercisable and only when the Fair Market Value exceeds the option price of
      the
      related Option. An SAR granted under this Plan may be exercised with respect
      to
      any number of whole shares less than the full number for which the SAR could
      be
      exercised. A partial exercise of an SAR shall not affect the right to exercise
      the SAR from time to time in accordance with this Plan and the applicable
      Agreement with respect to the remaining shares subject to the SAR. The exercise
      of a Corresponding SAR shall result in the termination of the related Option
      to
      the extent of the number of shares with respect to which the SAR is
      exercised.

     

    7.06. Change
      in Control

     

    Section
      7.05 to the contrary notwithstanding and subject to Article XI, each outstanding
      SAR shall be fully exercisable (in whole or in part at the discretion of the
      holder) on and after a Control Change Date.

     

    7.07. Employee
      Status

     

    If
      the
      terms of any SAR provide that it may be exercised only during employment or
      within a specified period of time after termination of employment, the
      Administrator may decide to what extent leaves of absence for governmental
      or
      military service, illness, temporary disability or other reasons shall not
      be
      deemed interruptions of continuous employment.

     

    7.08. Settlement

     

    At
      the
      Administrator’s discretion, the amount payable as a result of the exercise of an
      SAR may be settled in cash, shares of Common Stock, or a combination of cash
      and
      Common Stock. No fractional share will be deliverable upon the exercise of
      an
      SAR but a cash payment will be made in lieu thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    7.09. Shareholder
      Rights

     

    No
      Participant shall, as a result of receiving an SAR, have any rights as a
      shareholder of the Company or any Affiliate until the date that the SAR is
      exercised and then only to the extent that the SAR is settled by the issuance
      of
      Common Stock.

     

    ARTICLE
      VIII  

     

    STOCK
      AWARDS

     

    8.01. Award

     

    In
      accordance with the provisions of Article IV, the Administrator will designate
      each individual to whom a Stock Award is to be made and will specify the number
      of shares covered by such awards; provided, however, that no Participant may
      receive Stock Awards in any calendar year for more than 200,000 shares;
      provided, however, that a Stock Award that is issued in settlement of the
      obligation of the Company or an Affiliate under a nonqualified deferred
      compensation plan (as defined under Code section 409A) shall not be subject
      to
      the individual annual award limit. 

     

    8.02. Vesting

     

    The
      Administrator, on the date of the award, may prescribe that a Participant’s
      rights in a Stock Award shall be forfeitable or otherwise restricted for a
      period of time or subject to such conditions as may be set forth in the
      Agreement. A Stock Award that is issued in settlement of the obligation of
      the
      Company or an Affiliate under a nonqualified deferred compensation plan (as
      defined under Code section 409A) shall be nonforfeitable to the same extent
      as
      the Participant’s rights under the benefit that is settled by the Stock Award.

     

    8.03. Performance
      Objectives

     

    In
      accordance with Section 8.02, the Administrator may prescribe that Stock Awards
      will become vested or transferable or both based on objectives stated with
      respect to the Company’s return on equity, total earnings, earnings growth,
      return on capital, Fair Market Value, Common Stock price appreciation, funds
      from operations, adjusted funds from operations, funds from operations growth,
      adjusted funds from operations growth, earnings before interest, taxes,
      depreciation and amortization (“EBITDA”), EBITDA growth, total assets, total
      shareholder returns, peer shareholder returns, dividend payout, increase in
      revenue per available room, or such other measures as may be selected by the
      Administrator. If 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    the
      Administrator, on the date of award, prescribes that a Stock Award shall become
      nonforfeitable and transferable only upon the attainment of performance
      objectives, the shares subject to such Stock Award shall become nonforfeitable
      and transferable only to the extent that the Administrator certifies that such
      objectives have been achieved.

     

    8.04. Employee
      Status

     

    In
      the
      event that the terms of any Stock Award provide that shares may become
      transferable and nonforfeitable thereunder only after completion of a specified
      period of employment, the Administrator may decide in each case to what extent
      leaves of absence for governmental or military service, illness, temporary
      disability, or other reasons shall not be deemed interruptions of continuous
      employment.

     

    8.05. Change
      in Control

     

    Sections
      8.02, 8.03 and 8.04 to the contrary notwithstanding and subject to Article
      XI,
      each outstanding Stock Award shall be transferable and nonforfeitable on and
      after a Control Change Date.

     

    8.06. Shareholder
      Rights

     

    Prior
      to
      their forfeiture (in accordance with the applicable Agreement and while the
      shares of Common Stock granted pursuant to the Stock Award may be forfeited
      or
      are nontransferable), a Participant will have all rights of a shareholder with
      respect to a Stock Award, including the right to receive dividends and vote
      the
      shares; provided, however, that during such period (i) a Participant may not
      sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of shares
      granted pursuant to a Stock Award, (ii) the Company shall retain custody of
      the
      certificates evidencing shares granted pursuant to a Stock Award, and (iii)
      the
      Participant will deliver to the Company a stock power, endorsed in blank, with
      respect to each Stock Award. The limitations set forth in the preceding sentence
      shall not apply after the shares granted under the Stock Award are transferable
      and are no longer forfeitable.

     

    ARTICLE
      IX  

     

    PERFORMANCE
      SHARE AWARDS

     

    9.01. Award

     

    In
      accordance with the provisions of Article IV, the Administrator will
      designate each individual to whom an award of Performance Shares is to be made
      and will specify the number of shares covered by such awards; provided, however,
      that no Participant may receive an award of Performance Shares in any calendar
      year for more than 200,000 shares of Common Stock.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    9.02. Earning
      the Award

     

    The
      Administrator, on the date of the grant of an award, shall prescribe that the
      Performance Shares, or portion thereof, will be earned, and the Participant
      will
      be entitled to receive payment pursuant to the award of Performance Shares,
      only
      upon the satisfaction of performance objectives and such other criteria as
      may
      be prescribed by the Administrator during a performance measurement period
      of at
      least one year. The performance objectives may be stated with respect to the
      Company’s return on equity, total earnings, earnings growth, return on capital,
      Fair Market Value, Common Stock price appreciation, funds from operations,
      adjusted funds from operations, funds from operations growth, adjusted funds
      from operations growth, earnings before interest, taxes, depreciation and
      amortization (“EBITDA”), EBITDA growth, total assets, total shareholder returns,
      peer shareholder returns, dividend payout, increase in revenue per available
      room, or such other measures as may be selected by the Administrator. No
      payments will be made with respect to Performance Shares unless, and then only
      to the extent that, the Administrator certifies that such objectives have been
      achieved.

     

    9.03. Payment

     

    In
      the
      discretion of the Administrator, the amount payable when an award of Performance
      Shares is earned may be settled in cash, by the issuance of shares of Common
      Stock, or a combination thereof. A fractional share of Common Stock shall not
      be
      deliverable when an award of Performance Shares is earned, but a cash payment
      will be made in lieu thereof.

     

    9.04. Shareholder
      Rights

     

    No
      Participant shall, as a result of receiving an award of Performance Shares,
      have
      any rights as a shareholder until and to the extent that the award of
      Performance Shares is earned and settled in shares of Common Stock. After an
      award of Performance Shares is earned and settled in shares, a Participant
      will
      have all the rights of a shareholder as described in Section 8.06.

     

    9.05. Nontransferability

     

    Except
      as
      provided in Section 9.06, Performance Shares granted under this Plan shall
      be nontransferable except by will or by the laws of descent and distribution.
      No
      right or interest of a Participant in any Performance Shares shall be liable
      for, or subject to, any lien, obligation, or liability of such
      Participant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    9.06. Transferable
      Performance Shares

     

    Section 9.05
      to the contrary notwithstanding, if the Agreement provides, an award of
      Performance Shares may be transferred by a Participant to the Participant’s
      children, grandchildren, spouse, one or more trusts for the benefit of such
      family members or a partnership in which such family members are the only
      partners, on such terms and conditions as may be permitted under Securities
      and
      Exchange Commission Rule 16b-3 as in effect from time to time. The holder of
      Performance Shares transferred pursuant to this Section shall be bound by the
      same terms and conditions that governed the Performance Shares during the period
      that they were held by the Participant; provided, however that such transferee
      may not transfer Performance Shares except by will or the laws of descent and
      distribution.

     

    9.07. Employee
      Status

     

    In
      the
      event that the terms of any Performance Share award provide that no payment
      will
      be made unless the Participant completes a stated period of employment, the
      Administrator may decide to what extent leaves of absence for government or
      military service, illness, temporary disability, or other reasons shall not
      be
      deemed interruptions of continuous employment.

     

    9.08. Change
      in Control

     

    Sections
      9.02 to the contrary notwithstanding and subject to Article XI, on and after
      a
      Control Change Date, each outstanding Performance Share award shall be earned
      as
      of a Control Change Date. To the extent the Agreement provides that the
      Performance Share award will be settled with shares of Common Stock, such shares
      shall be nonforfeitable and transferable as of the Control Change
      Date.

     

    ARTICLE
      X  

     

    INCENTIVE
      AWARDS

     

    10.01. Award

     

    The
      Administrator shall designate Participants to whom Incentive Awards are made.
      All Incentive Awards shall be finally determined exclusively by the
      Administrator under the procedures established by the Administrator; provided,
      however, that no Participant may receive an Incentive Award payment in any
      calendar year that exceeds $2,500,000.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    10.02. Terms
      and Conditions

     

    The
      Administrator, at the time an Incentive Award is made, shall specify the terms
      and conditions which govern the award. Such terms and conditions shall prescribe
      that the Incentive Award shall be earned only upon, and to the extent that,
      performance objectives are satisfied. The performance objectives may be stated
      with respect to the Company’s return on equity, total earnings, earnings growth,
      return on capital, Fair Market Value, Common Stock price appreciation, funds
      from operations, adjusted funds from operations, funds from operations growth,
      adjusted funds from operations growth, earnings before interest, taxes,
      depreciation and amortization (“EBITDA”), EBITDA growth, total assets, total
      shareholder returns, peer shareholder returns, dividend payout, increase in
      revenue per available room, or such other measures as may be selected by the
      Administrator. Such terms and conditions also may include other limitations
      on
      the payment of Incentive Awards including, by way of example and not of
      limitation, requirements that the Participant complete a specified period of
      employment with the Company or an Affiliate. The Administrator, at the time
      an
      Incentive Award is made, shall also specify when amounts shall be payable under
      the Incentive Award and whether amounts shall be payable in the event of the
      Participant’s death, disability, or retirement.

     

    10.03. Nontransferability

     

    Except
      as
      provided in Section 10.04, Incentive Awards granted under this Plan shall be
      nontransferable except by will or by the laws of descent and distribution.
      No
      right or interest of a Participant in an Incentive Award shall be liable for,
      or
      subject to, any lien, obligation, or liability of such Participant.

     

    10.04. Transferable
      Incentive Awards

     

    Section
      10.03 to the contrary notwithstanding, if provided in an Agreement, an Incentive
      Award may be transferred by a Participant to the Participant’s children,
      grandchildren, spouse, one or more trusts for the benefit of such family members
      or to a partnership in which such family members are the only partners, on
      such
      terms and conditions as may be permitted by Securities Exchange Commission
      Rule
      16b-3 as in effect from time to time. The holder of an Incentive Award
      transferred pursuant to this Section shall be bound by the same terms and
      conditions that governed the Incentive Award during the period that it was
      held
      by the Participant; provided, however, that such transferee may not transfer
      the
      Incentive Award except by will or the laws of descent and
      distribution.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    10.05. Employee
      Status

     

    If
      the
      terms of an Incentive Award provide that a payment will be made thereunder
      only
      if the Participant completes a stated period of employment, the Administrator
      may decide to what extent leaves of absence for governmental or military
      service, illness, temporary disability or other reasons shall not be deemed
      interruptions of continuous employment.

     

    10.06. Change
      in Control

     

    Section
      10.02 to the contrary notwithstanding and subject to Article XI, any Incentive
      Award shall be earned in its entirety as of a Control Change Date.

     

    10.07. Shareholder
      Rights

     

    No
      Participant shall, as a result of receiving an Incentive Award, have any rights
      as a shareholder of the Company or any Affiliate on account of such
      award.

     

    ARTICLE
      XI  

     

    CHANGE
      IN CONTROL

     

    11.01. Excise
      Tax

     

    A
      Participant shall be entitled to a payment under this Article XI if (a) any
      benefit, payment, accelerated exercisability or vesting or other right under
      this Plan constitutes a “parachute payment” (as defined in Code Section
      280G(b)(2)(A), but without regard to Code Section 280G(b)(2)(A)(ii)), with
      respect to such Participant and (b) the Participant incurs a liability under
      Code Section 4999. The amount payable to a Participant described in the
      preceding sentence shall be the amount required to indemnify the Participant
      and
      hold him harmless from the application of Code Sections 280G and 4999. To effect
      this indemnification, the Company must pay such Participant an amount sufficient
      to pay the excise tax imposed on Participant under Code Section 4999 with
      respect to benefits, payments, accelerated exercisability and vesting and other
      rights under this Plan and any other plan or agreement, and any income,
      employment, hospitalization, excise or other taxes attributable to the
      indemnification payment. The benefit payable under this Article XI shall be
      calculated and paid not later than the earlier of (i) the date any “Termination
      Payment,” as defined in the Change in Control and Termination Agreement (if any)
      between the Participant and the Company, is due, or (ii) twenty days after
      the
      date (or extended filing date) on which the tax return reflecting liability
      for
      the Code section 4999 excise tax is required to be filed with the Internal
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Revenue
      Service. Furthermore, a benefit may be payable under this Article whether or
      not
      any benefit has yet become or ever becomes payable under any Change in Control
      and Termination Agreement between the Participant and the Company. To the extent
      such Change in Control and Termination Agreement or any other plan or agreement
      also requires that a Participant be indemnified and held harmless from the
      application of Code Sections 280G and 4999, any such indemnification and the
      amount required to be paid to a Participant under this Article XI shall be
      coordinated so that such indemnification is paid only once and the Company’s
      obligation under this Article XI shall be satisfied to the extent of any such
      other payment (and vice versa).

     

    11.02. Impact
      of Change in Control

     

    In
      accordance with Sections 6.09, 7.06, 8.05, 9.08 and 10.02, but subject to
      Sections 11.03 and 11.04, upon a Control Change Date, (i) each Option and SAR
      shall be fully exercisable, (ii) each Stock Award will become transferable
      and
      nonforfeitable, (iii) each Performance Share shall be earned in its entirety,
      and (iv) each Incentive Award shall be earned in its entirety.

     

    11.03 Assumption
      Upon Change in Control

     

    In
      the
      event of a Change in Control the Committee, in its discretion and without the
      need for a Participant’s consent, may provide that an outstanding Option, SAR,
      Stock Award, Performance Share or Incentive Award shall be assumed by, or will
      be replaced by a substitute award granted by, the surviving entity in the Change
      in Control. Such assumed or substituted award shall be of the same type of
      award
      as the original Option, SAR, Stock Award, Performance Share or Incentive Award
      being assumed or substituted. The assumed or substituted award shall have a
      value, as of the Control Change Date, that is substantially equal to the value
      of the original award (or the difference between the Fair Market Value and
      the
      option price or Initial Value in the case of Options and SARs) as the Committee
      determines is equitably required and such other terms and conditions as may
      be
      prescribed by the Committee.

     

    11.04 Cash-Out
      Upon Change in Control

     

    In
      the
      event of a Change in Control the Committee, in its discretion and without the
      need of a Participant’s consent, may provide that an outstanding Option, SAR,
      Stock Award and Performance Share shall be cancelled in exchange for a payment.
      The payment may be in cash, shares of Common Stock or other securities or
      consideration received by shareholders in the Change in Control transaction.
      The
      amount of the payment shall be an amount that is substantially equal to (i)
      the
      amount by which the price per share received by 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    stockholders
      in the Change in Control exceeds the Option price or Initial Value in the case
      of an Option and SAR, or (ii) the price per share received by stockholder for
      each share of Common Stock subject to a Stock Award and an award of Performance
      Shares.

     

    ARTICLE
      XII  

     

    ADJUSTMENT
      UPON CHANGE IN COMMON STOCK

     

    The
      maximum number of shares as to which Options, SARs, Performance Shares and
      Stock
      Awards may be granted; the terms of outstanding Stock Awards, Options,
      Performance Shares, Incentive Awards, and SARs; and the per individual
      limitations on the number of shares of Common Stock for which Options, SARs,
      Performance Shares, and Stock Awards may be granted must be adjusted in the
      event that (i) the Company (a) effects one or more stock dividends, stock
      split-ups, subdivisions or consolidations of shares or (b) engages in a
      transaction to which Section 424 of the Code applies or (ii) there occurs
      any other event which, in the judgment of the Committee necessitates such
      action. The adjustments required under the preceding sentence shall be as the
      Committee determines to be equitably required. Any determination made under
      this
      Article XII by the Committee shall be final and conclusive.

     

    The
      issuance by the Company of stock of any class, or securities convertible into
      stock of any class, for cash or property, or for labor or services, either
      upon
      direct sale or upon the exercise of rights or warrants to subscribe therefor,
      or
      upon conversion of stock or obligations of the Company convertible into such
      stock or other securities, shall not affect, and no adjustment by reason thereof
      shall be made with respect to, the maximum number of shares as to which Options,
      SARs, Performance Shares and Stock Awards may be granted; the per individual
      limitations on the number of shares for which Options, SARs, Performance Shares
      and Stock Awards may be granted; or the terms of outstanding Stock Awards,
      Options, Performance Shares, Incentive Awards or SARs.

     

    The
      Committee may make Stock Awards and may grant Options, SARs, Performance Shares,
      and Incentive Awards in substitution for performance shares, phantom shares,
      stock awards, stock options, stock appreciation rights, or similar awards held
      by an individual who becomes an employee of the Company or an Affiliate in
      connection with a transaction described in the first paragraph of this
      Article XII. Notwithstanding any provision of the Plan (other than the
      limitation of Section 5.02), the terms of such substituted Stock Awards or
      Option, SAR, Performance Shares or Incentive Award grants shall be as the
      Committee, in its discretion, determines is appropriate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      XIII  

     

    COMPLIANCE
      WITH LAW AND APPROVAL OF

     

    REGULATORY
      BODIES

     

    No
      Option
      or SAR shall be exercisable, no shares of Common Stock shall be issued, no
      certificates for shares of Common Stock shall be delivered, and no payment
      shall
      be made under this Plan except in compliance with all applicable federal and
      state laws and regulations (including, without limitation, withholding tax
      requirements), any listing agreement to which the Company is a party, and the
      rules of all domestic stock exchanges on which the Company’s shares may be
      listed. The Company shall have the right to rely on an opinion of its counsel
      as
      to such compliance. Any stock certificate issued to evidence shares of Common
      Stock when a Stock Award is granted, a Performance Share is settled or for
      which
      an Option or SAR is exercised may bear such legends and statements as the
      Administrator may deem advisable to assure compliance with federal and state
      laws and regulations. No Option or SAR shall be exercisable, no Stock Award
      or
      Performance Share shall be granted, no shares of Common Stock shall be issued,
      no certificate for shares of Common Stock shall be delivered, and no payment
      shall be made under this Plan until the Company has obtained such consent or
      approval as the Administrator may deem advisable from regulatory bodies having
      jurisdiction over such matters.

     

    ARTICLE
      XIV  

     

    GENERAL
      PROVISIONS

     

    14.01. Effect
      on Employment and Service

     

    Neither
      the adoption of this Plan, its operation, nor any documents describing or
      referring to this Plan (or any part thereof), shall confer upon any individual
      any right to continue in the employ or service of the Company or an Affiliate
      or
      in any way affect any right and power of the Company or an Affiliate to
      terminate the employment or service of any individual at any time with or
      without assigning a reason therefor.

     

    14.02. Unfunded
      Plan

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    14.03. Rules
      of Construction

     

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

     

    ARTICLE
      XV  

     

    AMENDMENT

     

    The
      Board
      may amend or terminate this Plan from time to time; provided, however, that
      no
      amendment may become effective until shareholder approval is obtained if (i)
      the
      amendment increases the aggregate number of shares of Common Stock that may
      be
      issued under the Plan, (ii) the amendment changes the class of individuals
      eligible to become Participants or (iii) the amendment is required to be
      approved by shareholders under the rules of any exchange on which the Common
      Stock is listed for trading. No amendment shall, without a Participant’s
      consent, adversely affect any rights of such Participant under any Stock Award,
      Performance Share Award, Option, SAR, or Incentive Award outstanding at the
      time
      such amendment is made.

     

    ARTICLE
      XVI  

     

    DURATION
      OF PLAN

     

    No
      Stock
      Award, Performance Share Award, Option, SAR, or Incentive Award may be granted
      under this Plan more than ten years after the date that the Plan is adopted
      by
      the Board. Stock Awards, Performance Share awards, Options, SARs, and Incentive
      Awards granted before that date shall remain valid in accordance with their
      terms.

     

    ARTICLE
      XVII  

     

    EFFECTIVE
      DATE OF PLAN

     

    Options,
      SARs, Stock Awards, Performance Shares and Incentive Awards may be granted
      under
      this Plan upon its approval by a majority of the votes entitled to be cast
      by
      the Company’s shareholders, voting either in person or by proxy, at a duly held
      shareholders’ meeting at which a quorum is present, within twelve months of the
      Plan’s adoption by the Board.

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