Document:

EXHIBIT 10.3

                         THE TRUST COMPANY OF NEW JERSEY

                             2002 STOCK OPTION PLAN

     1. PURPOSE OF THE PLAN. The purpose of this 2002 Stock Option Plan (the
"Plan") is to encourage stock ownership by selected officers, other key
employees and key consultants 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, or to continue to provide services to, the Company and to attract new
officers, employees and consultants.

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

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

          (b) "Change in Control Event" shall have the meaning set forth in
     Section 9 of the Plan.

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

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

          (e) "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.

          (f) "Consultant" shall mean any non-employee of the Company who
     renders consulting services to the Company, as determined by the Committee.

          (g) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended.

          (h) "Fair Market Value" shall mean the greater of (i) $2.00 per share
     and (ii) if the Common Stock is listed on a stock exchange or is quoted on
     Nasdaq, the closing sale price (or, if such price is unavailable, the
     average of the high bid price and the low asked price) of a share of 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.

          (i) "Grant Date" shall mean the date on which an Option is granted.

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

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

          (l) "Optionee" shall mean an Officer or Consultant to whom an Option
     has been granted under the Plan.

          (m) "Suspend," "Suspended" or "Suspension," when referring to the
     employment of an Officer, shall mean the reasonable determination by the
     Board or the President of the Company that the Officer's performance of his
     or her duties or such Officer's conduct warrants an investigation by
     management in order to determine whether or not the Officer's employment
     should be terminated. The duties of an Officer may, but need not, be
     limited by management while the Officer's employment is so Suspended, and
     the Officer will be deemed by management to be an employee who is not in
     good standing.

          (n) "Suspended Officer" shall mean an Officer whose employment has
     been Suspended.

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

     3. STOCK SUBJECT TO THE PLAN. There will be reserved for issuance upon the
exercise of Options granted from time to time under the Plan an aggregate of
750,000 authorized but unissued shares of Common Stock (of which not more than
50,000 may be used to grant non-incentive stock options), 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 committee (the
"Committee") to administer the Plan. To the extent that the Board determines it
to be desirable to qualify the Options granted hereunder as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the Plan shall
be administered by a Committee of two (2) or more "outside directors" within the
meaning of Section 162(m) of the Code and the regulations promulgated
thereunder. Other than as provided in the preceding sentence, the Committee
which administers the Plan shall consist of three (3) members of the Board, none
of whom shall be employed by the Company. Subject to the provisions of the Plan,
the Committee shall have full discretion:

          (a) To designate the Officers and Consultants of the Company 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;

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          (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.

     The Board may, from time to time, appoint members of the Committee in
substitution for 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 to Officers as "incentive stock options" to the maximum extent possible
pursuant to Section 422 or a successor section of the Code.

     5. ELIGIBILITY. All Officers and Consultants of the Company, as defined
above, shall be eligible to receive Options under the Plan. In selecting
Officers and Consultants 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 or Consultant'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 and Consultants to whom Options will be granted and shall
     determine the number of shares to be covered by each Option. Unless
     otherwise indicated by the Committee at the time of grant, all Options
     granted to Officers are intended to qualify as "incentive stock options"
     under Section 422 of the Code. To the extent an Option granted to an
     Officer fails to satisfy the requirements of Section 422 of the Code, it
     shall be deemed a non-incentive stock option. All Options granted to
     Consultants under the Plan shall be non-incentive stock options. The Fair
     Market Value

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     (determined at the time the Options are granted) of Common Stock with
     respect to which Options intended to qualify as incentive stock 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. No Officer or Consultant shall be granted, in any fiscal year of
     the Company, Options to purchase more than 100,000 shares of Common Stock.

          (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 Option is intended to
     qualify as an incentive stock option, and the Optionee owns stock
     possessing more than 10% of the total combined voting power of all classes
     of stock of the Company, then (i) the price at which shares of Common Stock
     shall be purchased under the 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 such
     Officer's 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 of the Plan, each Option shall be
     exercisable in annual installments as described in this Section 6(c),
     provided however, that 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% 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
     the 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 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, provided such shares have
     been owned by the Optionee for more than six months on the date of
     surrender to the Company, or (3) a combination of the above. The Committee
     shall have no obligation to permit the tender of

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     shares in payment of the Option price. The Committee shall have the
     discretion, but not the obligation, to implement a cashless exercise
     program and to accept consideration received by the Company under such
     program as 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 or her notice when the
     Company shall tender such shares, his or her 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
or services 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 or her 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 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; provided that if the Optionee was a Suspended Optionee at
the date of death or disability, and at the end of the Suspension Period the
Company shall determine that such person's employment should have been
terminated, then all of such Optionee's Options shall be deemed to have
terminated on the date of death or disability. During such period, the Options
may be exercised by the Optionee or his or her 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 or her 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

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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 would constitute the adoption
of a new incentive stock option plan with the meaning of Section 422 of the
Code.

     9. CHANGE IN CONTROL. All options granted pursuant to the Plan shall become
fully exercisable upon the occurrence of a Change in Control Event. As used in
the Plan, a "Change in Control Event" shall be deemed to have occurred if any of
the following events occur:

          (a) the consummation of any consolidation or merger of the Company in
     which the Company is not the continuing or surviving Company or pursuant to
     which shares of Common Stock would be converted into cash, securities or
     other property, other than a merger of the Company in which the holders of
     the shares of the Company's Common Stock immediately prior to the merger
     have the same proportionate ownership of common stock of the surviving
     Company immediately after the merger; or

          (b) the consummation of any sale, lease, exchange or other transfer
     (in one transaction or a series of related transactions) of all, or
     substantially all, of the assets of the Company, other than to a subsidiary
     or affiliate; or

          (c) an approval by the shareholders of the Company of any plan or
     proposal for the liquidation or dissolution of the Company; or

          (d) any action pursuant to which any person (as such term is defined
     in Section 13(d) of the Exchange Act), company or other entity (other than
     any person who owns more than ten percent (10%) of the outstanding Common
     Stock on the date of adoption of this Plan by the Board of Directors, the
     Company or any benefit plan sponsored by the Company or any of its
     subsidiaries) shall become the "beneficial owner" (as such term is defined
     in Rule 13d-3 under the Exchange Act), directly or indirectly, of shares of
     capital stock entitled to vote generally for the election of directors of
     the Company ("Voting Securities") representing more than fifty (50%)
     percent of the combined voting power of the Company's then outstanding
     Voting Securities (calculated as provided in Rule 13d-3(d) in the case of
     rights to acquire any such securities), unless, prior to such person so
     becoming such beneficial owner, the Board shall determine that such person
     so becoming such beneficial owner shall not constitute a Change in Control
     Event; or

          (e) the individuals (A) who, as of the date on which the Plan is first
     adopted by the Board of Directors, constitute the Board (the "Original
     Directors") and (B) who thereafter are elected to the Board and whose
     election, or nomination for election, to the Board was approved by a vote
     of at least two thirds of the Original Directors then still in office (such
     Directors being called "Additional Original Directors") and (C) who
     thereafter are elected to the Board and whose election or nomination for
     election to the Board was approved by a vote of at least two

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     thirds of the Original Directors and Additional Original Directors then
     still in office, cease for any reason to constitute a majority of the
     members of the Board.

     10. MERGER OR ASSET SALE. For purposes of the Plan, a merger or
consolidation which would constitute a Change in Control Event pursuant to
Section 9 and a sale of assets which would constitute a Change in Control Event
pursuant to Section 9 are hereinafter referred to as "Section 10 Events". In the
event of a Section 10 Event, each outstanding Option shall be assumed or an
equivalent benefit shall be substituted by the entity determined by the Board of
the Company to be the successor company. However, in the event that any such
successor company does not agree in writing, at least 15 days prior to the
anticipated date of consummation of such Section 10 Event, to assume or so
substitute each such Option, then each Option not so assumed or substituted
shall be deemed to be fully vested and exercisable. If an Option becomes fully
vested and exercisable pursuant to the terms of this Section 10, the Committee
shall notify the holder thereof in writing or electronically that (a) such
holder's Option shall be fully exercisable until immediately prior to the
consummation of such Section 10 Event and (b) such holder's Option shall
terminate upon the consummation of such Section 10 Event. For purposes of this
Section 10, an Option shall be considered assumed if, following consummation of
the applicable Section 10 Event, the Option confers the right to purchase or
receive, for each share of Common Stock subject to the Option immediately prior
to the consummation of such Section 10 Event, the consideration (whether stock,
cash or other securities or property) received in such Section 10 Event by
holders of Common Stock for each share of Common Stock held on the effective
date of such Section 10 Event (and, if holders of Common Stock are offered a
choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding shares of Common Stock); provided, however, that if
such consideration received in such Section 10 Event is not solely common stock
of such successor, the Committee may, with the consent of such successor
company, provide for the consideration to be received in connection with such
Option to be solely common stock of such successor equal in fair market value to
the per share consideration received by holders of Common Stock in the Section
10 Event.

     11. 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. The Committee shall have the right to condition the grant of
an Option to an Officer or Consultant upon such person's execution and delivery
to the Company of an agreement not to compete with the Company or its
subsidiaries, in a form satisfactory to the Committee, for such period of time
as the Committee shall determine.

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     12. 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.

     13. 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.

     14. 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 or her lifetime. Notwithstanding the
above, the Committee may permit an Optionee who has received a non-incentive
stock Option to transfer such Option to a family member or a trust or
partnership created for the benefit of family members. In the case of such a
transfer, the transferee's rights and obligations with respect to the applicable
Options shall be determined by reference to the transferor and the transferor's
rights and obligations with respect to the applicable Options had no transfer
been made. The transferor shall remain obligated pursuant to Sections 12 and 13
hereunder if required by applicable law.

     15. 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.

     16. TERM. No Option shall be granted under the Plan more than ten 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.

     17. 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 12. This Plan shall terminate unless ratified by the
shareholders within one year of adoption by the Board.

     18. 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

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amendment may be made without shareholder approval if such approval is required
by Rule 16b-3 under the Exchange Act or Section 422 or a successor section of
the Code.

     19. 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, 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 or her duties; provided that within sixty 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.

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

                                      -9-EXHIBIT 10.4

                         THE TRUST COMPANY OF NEW JERSEY

                        2002 EXECUTIVE STOCK OPTION PLAN

     1. PURPOSE OF THE PLAN. The purpose of this 2002 Executive Stock Option
Plan (the "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 below:

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

          (b) "Change in Control Event" shall have the meaning set forth in
     Section 9 of the Plan.

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

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

          (e) "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.

          (f) "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.

          (g) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended.

          (h) "Fair Market Value" shall mean the greater of (i) $2.00 per share
     and (ii) if the Common Stock is listed on a stock exchange or is quoted on
     Nasdaq, the closing sale price (or, if such price is unavailable, the
     average of the high bid price and the low asked price) of a share of 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.

          (i) "Grant Date" shall mean the date on which an Option is granted.

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

<PAGE>

          (k) "Optionee" shall mean an Executive Officer to whom an Option has
     been granted under the Plan.

          (l) "Right" shall have the meaning set forth in Section 6(b) of the
     Plan.

          (m) "Suspend", "Suspended" or "Suspension", when referring to the
     employment of an Optionee, shall mean the reasonable determination by the
     Board or the President of the Company that the Optionee's performance of
     his or her duties or such 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 management while the Optionee's employment is so Suspended, and
     the Optionee wi11 be deemed by management to be an employee who is not in
     good standing.

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

          (o) "Suspension Period" shall mean the time period beginning with the
     date on which the Board 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 issuance upon the
exercise of Options granted from time to time under the Plan an aggregate of
200,000 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 committee (the
"Committee") to administer the Plan. To the extent that the Board determines it
to be desirable to qualify the Options granted hereunder as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the Plan shall
be administered by a Committee of two (2) or more "outside directors" within the
meaning of Section 162(m) of the Code and the regulations promulgated
thereunder. Other than as provided in the preceding sentence, the Committee
which administers the Plan shall consist of three (3) members of the Board, none
of whom shall be employed by the Company. Subject to the provisions of the Plan,
the Committee shall have full discretion:

          (a) To designate the Executive Officers of the Company 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;

                                      -2-
<PAGE>

          (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.

     The Board may, from time to time, appoint members of the Committee in
substitution for 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 right and credit right, 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. No Executive Officer shall be granted, in any fiscal year of the
     Company, Options to purchase more than 100,000 shares of Common Stock.

          (b) OPTION PRICE. The price at which shares of Common Stock shall be
     purchased under an Option shall not be less than 85% 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

                                      -3-
<PAGE>

     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 $2.00
     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 of the Plan, each Option shall be
     exercisable in annual installments as described in this Section 6(c),
     provided however, that 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% 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
     the 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 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, provided such shares have
     been owned by the Optionee for more than six months on the date of
     surrender to the Company, or (3) a combination of the above. The Committee
     shall have no obligation to permit the tender of shares in payment of the
     Option price. The Committee shall have the discretion, but not the
     obligation, to implement a cashless exercise program and to accept
     consideration received by the Company under such program as 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 or her notice when the Company shall tender such
     shares, his or her 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 Option with
     respect to which it is granted, or such lesser number of shares as the
     Committee may

                                      -4-
<PAGE>

     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 Exchange Act,
     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 therefor 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 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 (ii) 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 Exchange Act, any exercise for cash must
     comply with Rule 16b-3 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 or her
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 or her 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

                                      -5-
<PAGE>

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
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; provided that if the Optionee was a
Suspended Optionee at the date of death or disability, and at the end of the
Suspension Period the Company shall determine that such person's employment
should have been terminated, then all of such Optionee's Options shall be deemed
to have terminated on the date of death or disability. During such period, the
Options may be exercised by the Optionee or his or her 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 or her 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.

     9. CHANGE IN CONTROL. All options granted pursuant to the Plan shall become
fully exercisable upon the occurrence of a Change in Control Event. As used in
the Plan, a "Change in Control Event" shall be deemed to have occurred if any of
the following events occur:

          (a) the consummation of any consolidation or merger of the Company in
     which the Company is not the continuing or surviving Company or pursuant to
     which shares of Common Stock would be converted into cash, securities or
     other property, other than a merger of the Company in which the holders of
     the shares of the Company's Common Stock immediately prior to the merger
     have the same proportionate ownership of common stock of the surviving
     Company immediately after the merger; or

          (b) the consummation of any sale, lease, exchange or other transfer
     (in one transaction or a series of related transactions) of all, or
     substantially all, of the assets of the Company, other than to a subsidiary
     or affiliate; or

          (c) an approval by the shareholders of the Company of any plan or
     proposal for the liquidation or dissolution of the Company; or

                                      -6-
<PAGE>

          (d) any action pursuant to which any person (as such term is defined
     in Section 13(d) of the Exchange Act), company or other entity (other than
     any person who owns more than ten percent (10%) of the outstanding Common
     Stock on the date of adoption of this Plan by the Board of Directors, the
     Company or any benefit plan sponsored by the Company or any of its
     subsidiaries) shall become the "beneficial owner" (as such term is defined
     in Rule 13d-3 under the Exchange Act), directly or indirectly, of shares of
     capital stock entitled to vote generally for the election of directors of
     the Company ("Voting Securities") representing more than fifty (50%)
     percent of the combined voting power of the Company's then outstanding
     Voting Securities (calculated as provided in Rule 13d-3(d) in the case of
     rights to acquire any such securities), unless, prior to such person so
     becoming such beneficial owner, the Board shall determine that such person
     so becoming such beneficial owner shall not constitute a Change in Control
     Event; or

          (e) the individuals (A) who, as of the date on which the Plan is first
     adopted by the Board of Directors, constitute the Board (the "Original
     Directors") and (B) who thereafter are elected to the Board and whose
     election, or nomination for election, to the Board was approved by a vote
     of at least two thirds of the Original Directors then still in office (such
     Directors being called "Additional Original Directors") and (C) who
     thereafter are elected to the Board and whose election or nomination for
     election to the Board was approved by a vote of at least two thirds of the
     Original Directors and Additional Original Directors then still in office,
     cease for any reason to constitute a majority of the members of the Board.

     10. MERGER OR ASSET SALE. For purposes of the Plan, a merger or
consolidation which would constitute a Change in Control Event pursuant to
Section 9 and a sale of assets which would constitute a Change in Control Event
pursuant to Section 9 are hereinafter referred to as "Section 10 Events". In the
event of a Section 10 Event, each outstanding option shall be assumed or an
equivalent benefit shall be substituted by the entity determined by the Board of
the Company to be the successor company. However, in the event that any such
successor company does not agree in writing, at least 15 days prior to the
anticipated date of consummation of such Section 10 Event, to assume or so
substitute each such Option, then each Option not so assumed or substituted
shall be deemed to be fully vested and exercisable. If an Option becomes fully
vested and exercisable pursuant to the terms of this Section 10, the Committee
shall notify the holder thereof in writing or electronically that (a) such
holder's Option shall be fully exercisable until immediately prior to the
consummation of such Section 10 Event and (b) such holder's Option shall
terminate upon the consummation of such Section 10 Event. For purposes of this
Section 10, an Option shall be considered assumed if, following consummation of
the applicable Section 10 Event, the Option confers the right to purchase or
receive, for each share of Common Stock subject to the Option immediately prior
to the consummation of such Section 10 Event, the consideration (whether stock,
cash or other securities or property) received in such Section 10 Event by
holders of Common Stock for each share of Common Stock held on the effective
date of such Section 10 Event (and, if holders of Common Stock are offered a
choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding shares of Common Stock); provided, however, that if
such consideration received in such Section 10 Event is not solely common stock
of such successor, the Committee may, with the consent of such successor
company, provide for the consideration to be received in connection

                                      -7-
<PAGE>

with such Option to be solely common stock of such successor equal in fair
market value to the per share consideration received by holders of Common Stock
in the Section 10 Event.

     11. 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. The Committee shall have the right to condition the grant of
an Option to an Executive Officer upon such person's execution and delivery to
the Company of an agreement not to compete with the Company or its subsidiaries,
in a form satisfactory to the Committee, for such period of time as the
Committee shall determine.

     12. 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.

     13. 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.

     14. 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 or her lifetime. Notwithstanding the
above, the Committee may permit an Optionee who has received a non-incentive
stock Option to transfer such Option to a family member or a trust or
partnership created for the benefit of family members. In the case of such a
transfer, the transferee's rights and obligations with respect to the applicable
Options shall be determined by reference to the transferor and the transferor's
rights and obligations with respect to the applicable Options had no transfer
been made. The transferor shall remain obligated pursuant to Sections 12 and 13
hereunder if required by applicable law.

                                      -8-
<PAGE>

     15. 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.

     16. TERM. No Option shall be granted under the Plan more than ten 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.

     17. 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 12. This Plan shall terminate unless ratified by the
shareholders within one year of adoption by the Board.

     18. 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 Exchange Act.

     19. 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, 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 or her duties; provided that within sixty 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.

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

                                      -9-

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