Document:

EXHIBIT 10.1

                        1993 INCENTIVE STOCK OPTION PLAN

1. PURPOSE OF THE PLAN. The purpose of this 1993 Incentive Stock Option Plan
(the "Plan") is to encourage stock ownership by officers of The Trust Company of
New Jersey (the "Company"), to provide additional incentive for them to promote
the successful business operations of the Company, to encourage them to remain
in the employ of the Company and to attract new officers.

2. DEFINITIONS. As used in the Plan, unless the context requires otherwise, the
following terms shall have the meanings specified hereinafter:

          (a) "Committee" shall mean the stock option committee of the Board
     provided in Section 4 of the Plan.

          (b) "Common Stock" shall mean the Common Stock, par value $2.00 per
     share, of the Company, or, if another security is substituted for the
     Common Stock pursuant to the adjustment provisions of Section 8, such other
     security.

          (c) "Fair Market Value" shall mean the greater of (i) $2.00 per share
     and (ii) the average of the over-the-counter bid and asked prices for a
     share of the Common Stock on the Grant Date or other relevant date;
     provided, that if in the opinion of the Committee the trading activity of
     the Common Stock is deemed not to constitute a representative market price,
     the Committee shall have the discretion to engage an independent party to
     determine Fair Market Value for this purpose.

          (d) "Option" shall mean the right to purchase one or more shares of
     Common Stock granted under Section 6 of the Plan.

          (e) "Grant Date" shall mean the date on which an option is granted.

          (f) "Optionee" shall mean an officer to whom an Option has been
     granted under the plan.

          (g) "Board" shall mean the Board of Directors of the Company.

          (h) "Code" shall mean the Internal Revenue Code of 1986, as amended.

          (i) The term "officer" shall mean any officer or other key employee of
     the Company, as determined by the Committee.

          (j) "Suspend," "Suspended" or "Suspension," when referring to the
     employment of an Optionee, shall mean the reasonable determination by the
     Board of Directors or the President of the Company that the Optionee's
     performance of his duties or the Optionee's conduct warrants an
     investigation by management in order to determine whether or not the
     Optionee's employment should be terminated. The duties of an Optionee may,
     but need not be, limited by

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     management while the Optionee's employment is so Suspended, and the
     Optionee will be deemed by management to be an employee who is not in good
     standing.

          (k) "Suspended Optionee" shall mean an Optionee whose employment has
     been Suspended.

          (1) "Suspension Period" shall mean the time period beginning with the
     date on which the Board of Directors or President of the Company makes its
     determination that the investigation of the Optionee is warranted and
     ending on the date the Company (i) terminates the employment of a Suspended
     Optionee or (ii) determines to continue the employment of a Suspended
     Optionee and terminate any investigation of such Optionee.

3. STOCK SUBJECT TO THE PLAN. There will be reserved for use upon the exercise
of Options granted from time to time under the Plan an aggregate of up to
450,000 authorized but unissued shares of Common Stock, subject to adjustment as
provided in Section 8 hereof. If any Option granted under the Plan should expire
or terminate for any reason without having been exercised in full, the
unpurchased shares shall again become available for the grant of Options under
the Plan.

4. ADMINISTRATION OF THE PLAN. The Board shall appoint a Stock Option Committee
("Committee") which shall consist of not less than three n(3) nor more than five
(5) members of the Board, none of whom shall be officers or employees of the
Company. No member of the Committee, while a member, shall be at present, or
within one year shall have been, eligible to participate in any plan of the
Company pursuant to which equity securities could be granted. Subject to the
provisions of the Plan, the Committee shall have full discretion;

          (a) To designate the officers of the Company, as described above, to
     whom Options shall be granted, the number of shares to be covered by each
     of the Options, and the time or times at which Options shall be granted;

          (b) To interpret the Plan;

          (c) To promulgate, amend and rescind rules and regulations relating to
     the Plan;

          (d) To subject any Option to such terms and conditions as the
     Committee may specify when granting the Option, including, without
     limitation, additional restrictions or conditions on the exercise of an
     Option;

          (e) To modify at any time and for any reason the vesting schedule set
     forth in Section 6(c) of the Plan for any or all outstanding Options or for
     any or all Options to be granted in the future; provided, however, that the
     Committee shall not lengthen the vesting schedule for any outstanding
     Option; and

          (f) To make all other determinations in connection with the
     administration of the Plan.

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     The Board may, from time to time, appoint members of the Committee in
substitution for or in addition to members previously appointed and may fill
vacancies, however caused, in the Committee. The Board shall designate one of
the members of the Committee as its chairman. The Committee shall hold its
meetings at such times and places as it shall deem advisable. A majority of its
members shall constitute a quorum. All action of the Committee may be taken by a
written instrument signed by a majority of the members and action so taken shall
be fully effective as if it had been taken by a vote of the majority of the
members at a meeting duly called and held. The Committee shall make such rules
and regulations for the conduct of its business as it shall deem advisable. The
committee shall also appoint a secretary, who may be the secretary of the
Company, to keep minutes of the meetings of the Committee. The Plan shall be so
administered as to qualify the Options granted under it as incentive stock
options pursuant to Section 422A of the Code, as it may be amended from time to
time.

5. EMPLOYEES ELIGIBLE. All officers of the Company, as defined above, shall be
eligible to receive Options under the Plan. In selecting officers to whom
Options shall be granted, and in determining the number of shares to be covered
by each Option, the Committee may take into consideration any factors it may
deem relevant, including its estimate of the officer's present and potential
contribution to the success of the Company.

6. OPTIONS.

          (a) OPTION GRANT. The Committee shall, from time to time, select the
     officers to whom Options will be granted and shall determine the number of
     shares to be covered by each Option. The Fair Market Value (determined at
     the time the Options are granted) of Common Stock with respect to which
     Options are exercisable for the first time by any person during any
     calendar year (under this Plan and all other plans of the Company) cannot
     be greater than $100,000.

          (b) OPTION PRICE. The price at which shares of Common Stock shall be
     purchased under an Option shall not be less than the Fair Market Value of
     such shares on the Grant Date, except that if the Optionee owns stock
     possessing more than 10% of the total combined voting power of all classes
     of stock of the Company, than (i) the price at which shares of Common Stock
     shall be purchased under an Option shall not be less than 110% of the Fair
     Market Value of such shares on the Grant Date and (ii) the Options shall
     not be exercisable after the expiration of five (5) years from the Grant
     Date. For purposes of determining 10% ownership, (1) an officer will be
     considered to own stock owned directly or indirectly by or for his brothers
     and sisters (whether by the whole or half blood), spouse, ancestors, and
     lineal descendants, and (2) stock owned directly or indirectly by or for a
     corporation, partnership, estate or trust shall be considered as being
     owned proportionately by or for its shareholders, partners or
     beneficiaries.

          (c) EXERCISE OF OPTIONS. Unless the Committee establishes otherwise or
     except as provided by Sections 7 and 9, each Option shall be exercisable in
     annual installments. No Option shall be exercisable for six (6) months
     after the Grant Date. Thereafter, during the first year after an Option is
     granted, it may be exercised as to not more than 20% of the shares covered
     thereby. During the first two (2) years after an Option is granted, it may
     be exercised as to not more than 40% of the shares covered thereby. During
     the first three (3) years after an

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     Option is granted, it may be exercised as to not more than 60% of the
     shares covered thereby. During the first four years after an Option is
     granted, it may be exercised as to not more than 80% of their shares
     covered thereby. An Option may be exercised at any time and from time to
     time as to all or any part of the shares covered thereby following the
     first four years after it has been granted; but no Option shall be
     exercised after the expiration of ten (10) years from the date on which it
     was granted.

          (d) METHOD OF EXERCISE. To the extent permitted by subparagraph (c)
     above, Optionees may exercise their Options from time to time by giving
     written notice to the Company. The date of exercise shall be the date on
     which the Company receives an exercise notice. Such notice shall state the
     number of shares to be purchased and the desired closing date, which date
     shall be at least fifteen (15) days after the giving of such notice unless
     an earlier date shall have been mutually agreed upon. At the closing, the
     Company shall deliver to the Optionee (or other person entitled to exercise
     the Option) at the principal office of the Company, or such other place as
     shall be mutually acceptable, a certificate or certificates for such shares
     against either (1) payment in full of the Option price for the number of
     shares to be delivered, by certified or bank cashier's check, or (2) with
     the prior consent of the Committee, tender of a number of shares of the
     Common Stock to the Company having a Fair Market Value equal to the Option
     price times the number of shares being purchased. The Committee shall have
     no obligation to permit the tender of shares in payment of the Option
     price. If the Optionee (or other person entitled to exercise the Option)
     shall fail to accept delivery of and pay for all or any part of the shares
     specified in his notice when the Company shall tender such shares to him,
     his right to exercise the Option with respect to such unpurchased shares
     may be terminated.

7. TERMINATION OF EMPLOYMENT. If the Company shall terminate the employment of
an Optionee for any reason other than for cause, all such Optionee's Options
shall terminate three (3) months after the date upon which such employment shall
cease, but in any event, not later than the dates upon which the respective
Options shall expire. If the Optionee shall voluntarily terminate his employment
with the Company, or if the Company shall terminate the employment of an
Optionee for cause, all such Optionee's Options shall terminate upon the date on
which such employment shall cease. If the Company shall Suspend the employment
of an Optionee, the Company shall not be obligated to issue any shares upon the
exercise by the Optionee of any Options held by him if the exercise occurs
during the Suspension Period. Any documents tendered by the Optionee to the
Company during the Suspension Period pursuant to an exercise will not be deemed
to be accepted by the Company during such Suspension Period, and any such
exercise shall be governed by the provisions set forth in the following two
sentences. If, at the conclusion of the Suspension Period the Company shall
terminate the employment of the Suspended Optionee, all such exercises shall be
deemed void and the Company shall return to the Optionee any documents tendered
to effect an exercise, including the purchase price, without Interest. If, at
the conclusion of the Suspension Period, the Company shall determine to continue
the employment of the Suspended Optionee, the Company shall deliver share
certificates to the Optionee with respect to all Options which were properly
exercised (but for the Suspension) by the Optionee during the Suspension Period
as promptly as practicable after the date the Suspension Period ends. If the
Optionee shall die or become disabled while he is employed by the Company, all
such Optionee's Options (except as otherwise determined by the Committee) shall
terminate one year after the date of death or disability of the Optionee, but in
any event, not

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later than the dates upon which the respective Options shall expire. During such
period, the Options may he exercised by the Optionee or his personal
representatives, next of kin, executors or legatees, as the case may be. No
exercise permitted by this Section 7 shall entitle an Optionee or his personal
representatives, next of kin, executors or legatees to exercise any portion of
any Option beyond the extent to which such Option is exercisable pursuant to
Section 6(c) hereof on the date such Optionee's employment with the Company
terminates.

8. CHANGES IN CAPITAL STRUCTURE. In the event that there is a change in the
capitalization of the Company, such as by reason of a stock dividend,
recapitalization, extraordinary dividend of cash or property, stock split-up,
combination of shares, or other event which the Committee determines is dilutive
to the holder of Options, then appropriate adjustments shall be made by the
Committee to the number and kind of shares reserved for issuance under the Plan
upon the grant and exercise of Options. In addition, the Committee shall make
appropriate adjustments to the number and kind of shares subject to outstanding
Options, and the purchase price per share thereunder shall be appropriately
adjusted consistent with such change. In no event shall fractional shares be
issued or issuable pursuant to any adjustment made under this Section 8. The
determination of the Committee as to any adjustment shall be final and
conclusive. Notwithstanding anything contained in this Section 8, no adjustments
shall be made by the Committee if such adjustments constitute the adoption of a
new incentive stock option plan with the meaning of Section 422A of the Code.

9. MANDATORY EXERCISE. Notwithstanding anything to the contrary set forth in the
Plan, in the event that the Company should adopt a plan of reorganization
pursuant to which it shall merge into, consolidate with, or sell its assets to,
any other corporation or entity or if the Company should adopt a plan of
complete liquidation, the Company may give an Optionee written notice thereof
requiring such Optionee either (a) to exercise the Option within thirty (30)
days after receipt of such notice, including all installments whether or not
they would otherwise be exercisable at that date, or (b) to surrender such
Option or any unexercised portion thereof. Any portion of such Option which
shall not have been exercised in accordance with the provisions of the Plan by
the end of such 30-day period shall automatically lapse irrevocably and the
Optionee shall have no further rights thereunder.

10. OPTION AGREEMENT. Each grant of an Option under the Plan will be evidenced
by an agreement in such form as the Committee may from time to time approve.
Such agreement will contain such provisions as the Committee may in its
discretion deem advisable, including without limitation, additional restrictions
or conditions upon the exercise of an Option. The Committee may require an
Optionee, as a condition to the grant or exercise of an Option or the issuance
or delivery of shares upon the exercise of an Option or the payment therefor, to
make such representations and warranties and to execute and deliver such notices
of exercise and other documents as the committee may deem consistent with the
Plan or the terms and conditions of the Option agreement. Not in limitation of
any of the foregoing, in any such case referred to in the preceding sentence,
the Committee may also require the Optionee to execute and deliver documents
containing such representations, warranties and agreements as the Committee or
counsel to the Company shall deem necessary or advisable to comply with any
applicable federal or state securities laws, and any other applicable law,
regulation or rule.

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11. LISTING; REGISTRATION. If at any time the Board determines, in its
discretion, that the listing, registration or qualification of any of the stock
subject to Options under the Plan upon any securities exchange or under any
state or federal law, or the consent or approval of any governmental regulatory
body, is necessary or desirable as a condition of or in connection with granting
Options under the Plan or the purchase or issue of stock thereunder, no further
Options need be granted, the exercise of outstanding Options may be deferred,
and the Company shall not be obligated to issue or deliver any shares, until
such action can be taken or consent or approval can be obtained at the Company's
expense, free of any condition unacceptable to the Board.

 12. TAX WITHHOLDING. The Company, as and when appropriate, shall have the right
 to require each Optionee purchasing or receiving shares of Common Stock under
 the Plan to pay any federal, state, or local taxes requited by law to be
 withheld with respect to the receipt of Common Stock.

13. NON-ASSIGNABILITY. No Option shall be assignable or transferable by the
Optionee except by will or the laws of descent and distribution, in which events
the terms of this Plan, including all restrictions and limitations set forth
herein, shall continue to apply to the transferee. Each Option shall be
exercisable only by the Optionee during his lifetime.

14. OPTIONEE'S RIGHTS AS SHAREHOLDER. An Optionee shall have no rights as a
shareholder of the Company with respect to any shares subject to an Option until
the Option has been exercised and the certificate with respect to the shares
purchased upon exercise of the Option has been duly issued and registered to the
name of the Optionee.

15. TERM. No Option shall be granted under the Plan more than ten (10) years
after the date of the last meeting of the shareholders of the Company at which
they adopted or approved the Plan or the date on which the Board adopted the
Plan, whichever is earlier; the Plan may be resubmitted to the shareholders for
their approval at any time during or at the end of any such 10-year period.

16. ADOPTION AND RATIFICATION. This Plan has been adopted by the Board subject
to ratification by the shareholders of the Company and filing with the
Commissioner of the Department of Banking of the State of New Jersey. The
effective date of the Plan may also be delayed pending satisfaction of the
requirements of Section 11. This Plan shall terminate unless ratified by the
shareholders within one year of adoption by the Board.

17. TERMINATION AND AMENDMENT. The Board may at any time terminate or amend the
Plan or any Option then outstanding as it may deem advisable; provided, however;
that no such amendment may be made without shareholder approval if such approval
is required by Rule 16b-3 under the Securities Exchange Act of 1934.

18. INDEMNIFICATION OF COMMITTEE. In addition to such other rights of
indemnification as they may have as directors or as members of the Committee,
the members of the Committee shall be indemnified by the Company against and
reimbursed for the reasonable expenses, including attorneys' fees, actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding or in connection with any appeal therein, to which they or any of
them may be

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a party by reason of any action taken or failure to act under or in
connection with the Plan or any option granted thereunder, and against and for
all amounts paid by them in settlement thereof (provided such settlement is
approved by independent legal counsel selected by the Company) or paid by them
in satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding, or (in the event of settlement) by a disinterested majority of the
Board or of any disinterested group of persons to whom the question may be
referred by the Board, that such Committee member is guilty of bad faith in the
performance of his duties; provided that within sixty (60) days after
institution of any such action, suit or proceeding, the Committee member seeking
indemnification shall have offered the Company, in writing, the opportunity, at
its own expense, to handle and defend the same.

19. GOVERNING LAW. The option agreements authorized under the Plan shall be
governed by and construed under the laws of the State of New Jersey.

                                      -7-EXHIBIT 10.2

                        1993 EXECUTIVE STOCK OPTION PLAN

1. Purpose of the Plan. The purpose of this 1993 Executive Stock Option Plan
("Plan") is to encourage stock ownership by executive officers of The Trust
Company of New Jersey (the "Company"), to provide additional incentive for them
to promote the successful business operations of the Company, to encourage them
to remain in the employ of the Company and to attract new executive officers.

2. DEFINITIONS. As used in the Plan, unless the context requires otherwise, the
following terms shall have the meanings specified hereinafter:

          (a) "Committee" shall mean the stock option committee of the Board
     provided in Section 4 of the Plan.

          (b) "Common Stock" shall mean the Common Stock, par value $2.00 per
     share, of the Company, or, if another security is substituted for the
     Common Stock pursuant to the adjustment provisions of Section 8, such other
     security.

          (c) "Fair Market Value" shall mean the average of the over-the-counter
     bid and asked prices for a share of the Common Stock on the Grant Date or
     other relevant date; provided, that if in the opinion of the Committee the
     trading activity of the Common Stock is deemed not to constitute a
     representative market price, the Committee shall have the discretion to
     engage an independent party to determine Fair Market Value for this
     purpose.

          (d) "Option" shall mean the right to purchase one or more shares of
     Common Stock granted under Section 6 of the Plan.

          (e) "Grant Date" shall mean the date on which an option is granted.

          (f) "Optionee" shall mean an executive officer to whom an Option has
     been granted under the plan.

          (g) "Board" shall mean the Board of Directors of the Company.

          (h) "Code" shall mean the Internal Revenue Code of 1986, as amended.

          (i) The term "executive officer" shall mean all executive officers of
     the Company, including the Chairman of the Board, the President, the Senior
     Executive Vice Presidents, the Executive Vice Presidents and the Senior
     Vice Presidents, the General Counsel and any other officers whom the
     Committee determines exercise similar authority of any of those officers.

          (j) "Suspend", "Suspended" or "Suspension", when referring to the
     employment of an Optionee, shall mean the reasonable determination by the
     Board of Directors or the President of the Company that the Optionee's
     performance of his duties or the Optionee's conduct warrants an
     investigation by management in order to determine whether or not the
     Optionee's employment

<PAGE>

     should be terminated. The duties of an Optionee may BUT NEED NOT be limited
     by management while the Optionee's employment is so Suspended, and the
     Optionee will be deemed by management to be an employee who is not in good
     standing.

          (k) "Suspended Optionee" shall mean an Optionee whose employment has
     been Suspended.

          (l) "Suspension Period" shall mean the time period beginning with the
     date on which the Board of Directors or President of the Company makes its
     determination that the investigation of the Optionee is warranted and
     ending on the date the Company (i) terminates the employment of a Suspended
     Optionee or (ii) determines to continue the employment of a Suspended
     Optionee and terminate any investigation of such Optionee.

3. STOCK SUBJECT TO THE PLAN. There will be reserved for use upon the exercise
of Options granted from time to time under the Plan an aggregate of up to
450,000 authorized but unissued shares of Common Stock, subject to adjustment as
provided in Section 8 hereof. If any Option granted under the Plan should expire
or terminate for any reason without having been exercised in full, the
unpurchased shares shall again become available for the grant of Options under
the Plan. Shares of Common Stock covered by an Option which is surrendered upon
the exercise of a stock appreciation right shall thereafter be unavailable for
option grants under this plan.

4. ADMINISTRATION OF THE PLAN. The Board shall appoint a Stock Option Committee
("Committee") which shall consist of not less than three nor more than five
members of the Board, none of whom shall be officers or employees of the
Company. No member of the Committee, while a member, shall be at present, or
within one year shall have been, eligible to participate in any plan of the
Company pursuant to which equity securities could be granted. Subject to the
provisions of the Plan, the Committee shall have full discretion:

          (a) To designate the executive officers of the Company, as described
     above, to whom Options, stock appreciation rights and credit rights shall
     be granted, the number of shares to be covered by each of the Options,
     stock appreciation rights and credit rights and the time or times at which
     Options, stock appreciation rights and credits rights shall be granted;

          (b) To interpret the Plan;

          (c) To promulgate, amend and rescind rules and regulations relating to
     the Plan;

          (d) To subject any Option to such terms and conditions as the
     Committee may specify when granting the Option, including without
     limitation additional restrictions or conditions on the exercise of an
     Option;

          (e) To modify at any time and for any reason the vesting schedule set
     forth in Section 6(c) of the Plan for any or all outstanding Options or for
     any or all Options to be granted in the future; provided, however, that the
     Committee shall not lengthen the vesting schedule for any outstanding
     Option; and

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          (f) To make all other determinations in connection with the
     administration of the Plan.

         The Board may, from time to time, appoint members of the Committee in
substitution for or in addition to members previously appointed and may fill
vacancies, however caused, in the Committee. The Board shall designate one of
the members of the Committee as its chairman. The Committee shall hold its
meetings at such times and places as it shall deem advisable. A majority of its
members shall constitute a quorum. All action of the Committee may be taken by a
written instrument signed by a majority of the members and action so taken shall
be fully effective as if it had been taken by a vote of the majority of the
members at a meeting duly called and held. The Committee shall make such rules
and regulations for the conduct of its business as it shall deem advisable. The
committee shall also appoint a secretary, who may be the secretary of the
Company, to keep minutes of the meetings of the Committee.

5. EMPLOYEES ELIGIBLE. All executive officers of the Company, as defined above,
shall be eligible to receive Options, stock appreciation rights and credit
rights under the Plan. In selecting executive officers to whom Options shall be
granted, and in determining the number of shares to be covered by each Option,
stock appreciation rights and credit rights the Committee may take into
consideration any factors it may deem relevant, including its estimate of the
executive officer's present and potential contribution to the success of the
Company.

6. OPTIONS.

          (a) OPTION GRANT. The Committee shall, from time to time, select the
     executive officers to whom Options will be granted and shall determine the
     number of shares to be covered by each Option and the option exercise price
     per share.

          (b) OPTION PRICE. The price at which shares of Common Stock shall be
     purchased under an Option shall not be less than 85(degree)/a of the Fair
     Market Value of such shares on the Grant Date. The Committee may also
     determine at the time of grant or at any later time while the Option is
     exercisable that the Company will allow a credit against the option
     exercise price (a "Right") in an amount equal to the increase in the Fair
     Market Value of the Common Stock at the exercise date over the Fair Market
     Value at the date that the Right is granted, but not to exceed the amount
     allowed to the Company as a federal tax deduction upon such exercise. Under
     no circumstances may the exercise price be less than 52.00 per share. Such
     Right will be applicable only towards the purchase price of shares of
     Common Stock.

          (c) EXERCISE OF OPTIONS. Unless the Committee establishes otherwise or
     except as provided by Sections 7 and 9, each Option shall be exercisable in
     annual installments. No Option shall be exercisable for six months after
     the Grant Date. Thereafter, during the first year after an Option is
     granted, it may be exercised as to not more than 20(degree)/a of the shares
     covered thereby. During the first two years after an Option is granted, it
     may be exercised as to not more than 40% of the shares covered thereby.
     During the first three years after an Option is granted, it may be
     exercised as to not more than 60% of the shares covered thereby. During the
     first four years after an Option is granted, it may be exercised as to not
     more than 80% of their shares covered thereby. An Option may be exercised
     at any time and from time to time as to all or any part of

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     the shares covered thereby following the first four years after it has been
     granted; but no Option shall be exercised after the expiration of ten (10)
     years from the date on which it was granted.

          (d) METHOD OF EXERCISE. To the extent permitted by subparagraph (c)
     above, Optionees may exercise their Options from time to time by giving
     written notice to the Company. The date of exercise shall be the date on
     which the Company receives an exercise notice. Such notice shall state the
     number of shares to be purchased and the desired closing date, which date
     shall be at least fifteen days after the giving of such notice unless an
     earlier date shall have been mutually agreed upon. At the closing, the
     Company shall deliver to the Optionee (or other person entitled to exercise
     the Option) at the principal office of the Company, or such other place as
     shall be mutually acceptable, a certificate or certificates for such shares
     against either (1) payment in full of the Option price for the number of
     shares to be delivered, by certified or bank cashier's check, or (2) with
     the prior consent of the Committee, tender of a number of shares of the
     Common Stock to the Company having a Fair Market Value equal to the Option
     price times the number of shares being purchased. The Committee shall have
     no obligation to permit the tender of shares in payment of the Option
     price. If the Optionee (or other person entitled to exercise the Option)
     shall fail to accept delivery of and pay for all or any part of the shares
     specified in his notice when the Company shall tender such shares to him,
     his right to exercise the Option with respect to such unpurchased shares
     may be terminated.

          (e) GRANT OF STOCK APPRECIATION RIGHTS. Stock appreciation rights
     maybe granted in connection with any Option granted under the Plan, either
     at the time of the grant of the Option or at a later time, to such eligible
     persons as the Committee shall determine. A stock appreciation right shall
     cover the same number of shares of Common Stock covered by the Options with
     respect to which it is granted, or such lesser number of shares as the
     Committee may determine. Upon an exercise of an Option, the related stock
     appreciation right shall be canceled, and upon exercise of a stock
     appreciation right the related option shall be canceled.

6A. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS. All stock appreciation
rights shall be in such form as the Committee may from time to time determine
and shall be subject to the following terms and conditions:

          (a) LIMITATION ON EXERCISE. A stock appreciation right shall be
     exercisable only to the extent that the Option to which it is related is
     exercisable, provided, however that if a stock appreciation right is
     granted to a person otherwise subject to Section 16(b) of the Securities
     Exchange Act of 1934, such right shall in no event be exercisable during
     the first six months of the term of either the stock appreciation right or
     the related stock option (except that the limitation provided under this
     clause shall not apply in the event the Optionee dies prior to expiration
     of the six month period.)

          (b) ENTITLEMENT. A stock appreciation right shall entitle the Optionee
     to surrender to the Company the unexercised related Option, or any portion
     thereof, and to receive from the Company in exchange thereof an amount
     equal to the excess of the fair market value of one share of Common Stock
     over the option price per share times the number of shares covered by the
     Option, or portion thereof, which is surrendered. In addition, the Optionee
     shall be entitled to receive an amount equal to any credit against the
     option exercise price which would have been

                                      -4-
<PAGE>

     allowed had the Option, or portion thereof, been exercised. Payment shall
     be made in (i) shares of Common Stock valued at fair market value, or Q in
     cash, or (iii) partly in shares and partly in cash as shall be determined
     by the Committee in its discretion; provided, however, that for any
     individual subject to liability pursuant to Section 16(b) of the Securities
     Exchange Act of 1934, as amended, any exercise for cash must comply with
     Rule 16(b)-3(c) thereunder. Stock appreciation rights may be exercised from
     time to time upon actual receipt by the Company of written notice stating
     the number of shares of Common Stock with respect to which the stock
     appreciation right is being exercised. No fractional shares will be issued
     but instead cash will be paid for a fraction or, if the Committee should so
     determine, the number of shares shall be rounded to the nearest whole
     share.

7. TERMINATION OF EMPLOYMENT. If the Company shall terminate the employment of
an Optionee for any reason other than for cause, all such Optionee's Options
shall terminate three months after the date upon which such employment shall
cease, but in any event, not later than the dates upon which the respective
Options shall expire. If the Optionee shall voluntarily terminate his employment
with the Company, or if the Company shall terminate the employment of an
Optionee for cause, all such Optionee's Options shall terminate upon the date on
which such employment shall cease. If the Company shall Suspend the employment
of an Optionee, the Company shall not be obligated to issue any shares upon the
exercise by the Optionee of any Options held by him if the exercise occurs
during the Suspension Period. Any documents tendered by the Optionee to the
Company during the Suspension Period pursuant to an exercise will not be deemed
to be accepted by the Company during such Suspension Period, and any such
exercise shall be governed by the provisions set forth in the following two
sentences. If, at the conclusion of the Suspension Period the Company shall
terminate the employment of the Suspended Optionee, all such exercises shall be
deemed void and the company shall return to the Optionee any documents tendered
to effect an exercise, including the purchase price, without interest. If, at
the conclusion of the Suspension Period, the Company shall determine to continue
the employment of the Suspended Optionee, the Company shall deliver share
certificates to the Optionee with respect to all Options which were properly
exercised (but for the Suspension) by the Optionee during the Suspension Period
as promptly as practicable after the date the Suspension Period ends. If the
Optionee shall die or become disabled while he is employed by the Company, all
such Optionee's Options (except as otherwise determined by the Committee) shall
terminate one year after the date of death or disability of the Optionee, but in
any event, not later than the dates upon which the respective Options shall
expire. During such period, the Options may be exercised by the Optionee or his
personal representatives, next of kin, executors or legatees, as the case may
be. No exercise permitted by this Section 7 shall entitle an Optionee or his
personal representatives, next of kin, executors or legatees to exercise any
portion of any Option beyond the extent to which such Option is exercisable
pursuant to Section 6(c) hereof on the date such Optionee's employment with the
company terminates.

8. CHANGES IN CAPITAL STRUCTURE. In the event that there is a change in the
capitalization of the Company, such as by reason of a stock dividend,
recapitalization, extraordinary dividend of cash or property, stock split-up,
combination of shares, or other event which the Committee determines is dilutive
to the holder of Options, then appropriate adjustments shall be made by the
Committee to the number and kind of shares reserved for issuance under the Plan
upon the grant and exercise of Options. In addition, the Committee shall make
appropriate adjustments to the

                                      -5-
<PAGE>

number and kind of shares subject to outstanding Options, and the purchase price
per share thereunder shall be appropriately adjusted consistent with such
change. In no event shall fractional shares be issued or issuable pursuant to
any adjustment made under this Section 8. The determination of the Committee as
to any adjustment shall be final and conclusive.

9. MANDATORY EXERCISE. Notwithstanding anything to the contrary set forth in the
Plan, in the event that the Company should adopt a plan of reorganization
pursuant to which it shall merge into, consolidate with, or sell its assets to,
any other corporation or entity or if the Company should adopt a plan of
complete liquidation, the Company may give an Optionee written notice thereof
requiring such Optionee either (a) to exercise the Option within thirty days
after receipt of such notice, including all installments whether or not they
would otherwise be exercisable at that date, or (b) to surrender such Option or
any unexercised portion thereof. Any portion of such Option which shall not have
been exercised in accordance with the provisions of the Plan by the end of such
30-day period shall automatically lapse irrevocably and the Optionee shall have
no further rights thereunder.

10. OPTION AGREEMENT. Each grant of an Option under the Plan will be evidenced
by an agreement in such form as the Committee may from time to time approve.
Such agreement will contain such provisions as the Committee may in its
discretion deem advisable, including without limitation additional restrictions
or conditions upon the exercise of an Option. The Committee may require an
Optionee, as a condition to the grant or exercise of an Option or the issuance
or delivery of shares upon the exercise of an Option or the payment therefor, to
make such representations and warranties and to execute and deliver such notices
of exercise and other documents as the committee may deem consistent with the
Plan or the terms and conditions of the Option agreement. Not in limitation of
any of the foregoing, in any such case referred to in the preceding sentence the
Committee may also require the Optionee to execute and deliver documents
containing such representations, warranties and agreements as the Committee or
counsel to the Company shall deem necessary or advisable to comply with any
applicable Federal or State securities laws, and any other applicable law,
regulation or rule.

11. LISTING; REGISTRATION. If at any time the Board determines, in its
discretion, that the listing, registration or qualification of any of the stock
subject to Options under the Plan upon any securities exchange or under any
state or federal law, or the consent or approval of any governmental regulatory
body, is necessary or desirable as a condition of or in connection with granting
Options under the Plan or the purchase or issue of stock thereunder, no further
Options need be granted, the exercise of outstanding Options may be deferred,
and the Company shall not be obligated to issue or deliver any shares, until
such action can be taken or consent or approval can be obtained at the Company's
expense, free of any condition unacceptable to the Board.

12. TAX WITHHOLDING. The Company, as and when appropriate, shall have the right
to require each Optionee purchasing or receiving shares of Common Stock under
the Plan to pay any federal, state, or local taxes required by law to be
withheld with respect to the receipt of Common Stock.

13. NON-ASSIGNABILITY. No Option shall be assignable or transferable by the
Optionee except by will or the laws of descent and distribution, in which events
the terms of this Plan, including

                                      -6-
<PAGE>

all restrictions and limitations set forth herein, shall continue to apply to
the transferee. Each Option shall be exercisable only by the Optionee during his
lifetime.

14. OPTIONEE'S RIGHTS AS SHAREHOLDER. An Optionee shall have no rights as a
shareholder of the Company with respect to any shares subject to an Option until
the Option has been exercised and the certificate with respect to the shares
purchased upon exercise of the Option has been duly issued and registered to the
name of the Optionee.

15. TERM. No Option shall be granted under the Plan more than ten (10) years
after the date of the last meeting of the shareholders of the Company at which
they adopted or approved the Plan or the date on which the Board adopted the
Plan, whichever is earlier; the Plan may be resubmitted to the shareholders for
their approval at any time during or at the end of any such ten-year period.

16. ADOPTION AND RATIFICATION. This Plan has been adopted by the Board subject
to ratification by the shareholders of the Company and filing with the
Commissioner of the Department of Banking of the State of New Jersey. The
effective date of the Plan may also be delayed pending satisfaction of the
requirements of Section 11. This Plan shall terminate unless ratified by the
shareholders within one year of adoption by the Board.

17. TERMINATION AND AMENDMENT. The Board may at any time terminate or amend the
Plan or any Option then outstanding as it may- deem advisable; provided,
however, that no such amendment may be made without shareholder approval if such
approval is required by Rule 16b-3 under the Securities Exchange Act of 1934.

18. INDEMNIFICATION OF COMMITTEE. In addition to such other rights of
indemnification as they may have as directors or as members of the Committee,
the members of the Committee shall be indemnified by the Company against and
reimbursed for the reasonable expenses, including attorney's fees, actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act under or in
connection with the Plan or any option granted thereunder, and against and for
all amounts paid by them in settlement thereof (provided such settlement is
approved by independent legal counsel selected by the Company) or paid by them
in satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding, or (in the event of settlement) by a disinterested majority of the
Board or of any disinterested group of persons to whom the question may be
referred by the Board, that such Committee member is guilty of bad faith in the
performance of his duties; provided that within 60 days after institution of any
such action, suit or proceeding, the Committee member seeking indemnification
shall have offered the Company in writing the opportunity, at its own expense,
to handle and defend the same.

19. GOVERNING LAW. The option agreements authorized under the Plan shall be
governed by and construed under the laws of the State of New Jersey.

                                      -7-

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