Document:

EXHIBIT 10.7

                            GREATER COMMUNITY BANCORP
                2001 STOCK OPTION PLAN FOR NONEMPLOYEE DIRECTORS

                               ARTICLE I. PURPOSES

         The purposes of the Greater Community Bancorp 2001 Stock Option Plan
for Nonemployee Directors (the "Plan") are to (i) attract and retain highly
qualified nonemployee directors of Great Falls Bank, Bergen Commercial Bank and
Rock Community Bank (the "Bank Subsidiaries"), which are the bank subsidiaries
of Greater Community Bancorp (the "Company"), (ii) align the long-term interests
of nonemployee directors of the Bank Subsidiaries and the Company's stockholders
by creating a direct link between compensation of nonemployee directors and
stockholder return, (iii) enable nonemployee directors of the Bank Subsidiaries
to develop and maintain stock ownership positions in the Company, and (iv)
provide incentives to such nonemployee directors to contribute to the Company's
success. To achieve these objectives, the Plan provides for the granting of
"nonqualified stock options" to the nonemployee directors of the Bank
Subsidiaries.

                             ARTICLE II. DEFINITIONS

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

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

         (b)      "BANK SUBSIDIARIES" means Great Falls Bank, Bergen Commercial
Bank and Rock Community Bank, all of which are banking corporations of the State
of New Jersey and Subsidiaries of the Company. "BANK SUBSIDIARY" means either
Great Falls Bank, Bergen Commercial Bank or Rock Community Bank, as the context
may require.

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

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

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

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

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GREATER COMMUNITY BANCORP 2001 STOCK                                      PAGE 2
OPTION PLAN FOR NONEMPLOYEE DIRECTORS

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

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

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

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

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

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

         (m)      "PARTICIPANT" shall mean any one of the twenty-eight (28)
individuals who was a member of the Board of Directors of any of the Bank
Subsidiaries on February 20, 2001 and who was not also an Employee on such date.

         (n)      "PLAN" shall mean the Greater Community Bancorp 2001 Stock
Option Plan for Nonemployee Directors, as may be amended from time to time.

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

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

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

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

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

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

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GREATER COMMUNITY BANCORP 2001 STOCK                                      PAGE 3
OPTION PLAN FOR NONEMPLOYEE DIRECTORS

                           ARTICLE III. ADMINISTRATION

         The Plan shall be administered by the Board. No member of the Board
shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or any Stock Option granted pursuant
thereto. The Company shall indemnify all members of the Board with respect to
any such action, determination or interpretation to the fullest extent permitted
by law.

         Subject to the provisions of the Plan, the Board is authorized to: (i)
grant Stock Options to the respective Participants to purchase the respective
numbers of Shares indicated in Article VI of this Plan, either following
approval of the adoption of the Plan by the Company's stockholders or prior to
stockholder approval but subject to subsequent approval of the Plan by the
Company's stockholders; (ii) determine the exercise price of the Shares subject
to each Stock Option, which price shall be not less than the minimum specified
in Section 6.1; (iii) determine who is a "nonemployee director" of a Bank
Subsidiary eligible to be a Participant; (iv) establish such rules and
regulations as it deems necessary for the proper administration of the Plan; and
(v) make whatever determinations and interpretations in connection with the Plan
as it deems necessary or advisable. All decisions, determinations and
interpretations made by the Board shall be final and binding on all Participants
and on their legal representatives and beneficiaries.

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

                       ARTICLE IV. SHARES SUBJECT TO PLAN

         The aggregate maximum number of Shares that may be made subject to
Stock Options granted pursuant to the Plan is Fifty-Six Thousand (56,000) (or
the number and kind of Shares or other securities substituted for those Shares
or to which those Shares are adjusted pursuant to the provisions of Article VIII
of the Plan). The Company shall reserve such number of Shares for the purposes
of the Plan out of its authorized but unissued shares, or out of Shares held in
the Company's treasury, or partly out of each, as shall be determined by the
Board. No fractional Shares shall be issued with respect to Stock Options
granted under the Plan.

         In the event any outstanding Stock Option under the Plan for any reason
expires, is terminated, forfeited or is canceled at any time, the shares subject
to such Options will be unavailable for future grants under the Plan.

                ARTICLE V. ELIGIBILITY FOR AWARD OF STOCK OPTIONS

         Only a Participant (as defined in paragraph (m) of Article II) shall be
eligible to be granted Stock Options; provided, however, that a Participant
shall not be eligible unless such Participant is still a nonemployee director of
one of the Bank Subsidiaries on the date Stock Options are granted by the Board
under the Plan.

                       ARTICLE VI. GRANT OF STOCK OPTIONS

         Each Participant shall be eligible to be granted Stock Options to
purchase Two Thousand (2,000) Shares on the terms and conditions set forth in
this Article VI. Stock Options shall be evidenced by Stock Option agreements in
such form as the Board approves. Stock Option agreements shall conform to the
provisions of the Plan and shall be identical for all Participants.

6.1  OPTION PRICE OF STOCK OPTIONS. The exercise price for each Stock Option
granted under the Plan shall be equal to the Stock's Fair Market Value on the
date of grant.

6.2  VESTING, EXERCISABILITY AND TERMS OF STOCK OPTIONS.

         (a)      Stock Options will become "vested" to the extent of 20% (400
Shares per Participant) on the date of grant. An additional 20% will become
"vested" each January 1 thereafter provided the Participant remains a director
of a Bank Subsidiary and/or is a director and/or an Employee of an Affiliate.

         (b)      Each 20% group of "vested" Stock Options will thereafter
become fully exercisable commencing on the later of (i) six (6) months and one
day after the date the Stock Options are granted or (ii) January 1st after each
vesting date.

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GREATER COMMUNITY BANCORP 2001 STOCK                                      PAGE 4
OPTION PLAN FOR NONEMPLOYEE DIRECTORS

         (c)      Each 20% group of "vested" Stock Options will generally lapse
to the extent not fully exercised within five (5) years after the vesting date
of such 20% group.

         (d)      Upon the Termination of Service of a Participant due to
voluntary resignation or involuntary removal without Cause, all Stock Options
which have not become exercisable before the date the Participant Terminates
Service shall be forfeited and terminated immediately. The Participant may
exercise a Stock Option to the extent it was exercisable by him on the date
immediately preceding such Termination within the lesser of (i) one month from
the date of Termination (six months from the date of Termination in the case of
voluntary resignation), or (ii) the balance of the stated term of the Stock
Option. If a Participant shall be removed as a director of an Affiliate for
Cause, all Stock Options granted to such Participant that have not been
exercised prior to such Termination for Cause shall, whether or not exercisable,
be forfeited immediately upon such Termination.

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

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

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

6.5  NO OBLIGATION TO EXERCISE STOCK OPTIONS. The grant of a Stock Option shall
impose no obligation on the Participant to exercise such Stock Option.

6.6  CANCELLATION OF STOCK OPTIONS. The Board in its discretion may, with the
consent of any Participant, cancel any outstanding Stock Option.

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

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

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GREATER COMMUNITY BANCORP 2001 STOCK                                      PAGE 5
OPTION PLAN FOR NONEMPLOYEE DIRECTORS

                     ARTICLE VII. EXERCISE OF STOCK OPTIONS

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

7.1  SHARE CERTIFICATES. Upon receiving notice and payment, the Company will
cause to be delivered to the Participant, as soon as practicable, a certificate
in the Participant's name for the Shares purchased. The Shares issuable and
deliverable upon the exercise of a Stock Option shall be fully paid and
nonassessable. The Company shall not be required to issue or deliver any
certificate or certificates for Shares purchased upon the complete or partial
exercise of the Stock Option prior to fulfillment of (i) the completion of any
registration or other qualification of such Shares under any Federal or State
law or under rulings or regulations of the Securities and Exchange Commission or
of any other governmental regulatory body that may be necessary or advisable;
and (ii) the obtaining of any approval or other clearance from any Federal or
State governmental agency that may be necessary or advisable.

7.2  PAYMENT FOR SHARES. Payment for Shares purchased under a Stock Option
granted hereunder shall be made in full upon exercise of the Stock Option, (i)
by certified or bank cashier's check payable to the order of the Company, (ii)
in the form of Shares already owned by the Participant based in any such
instance on the Fair Market Value of the Stock on the date the Stock Option is
exercised, or (iii) by a combination of cash and Shares already owned. To the
extent the Stock Option exercise price is paid in Shares as provided above,
Shares delivered by the Participant may be Shares received by the Participant
upon exercise of one or more Stock Options, but only if such Shares have been
held by the Participant for at least six months.

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

7.4  LOANS. The Company may make loans to such Participants as the Board, in its
discretion, may determine in connection with the exercise of Stock Options
granted under the Plan. Such loans shall be subject to the following terms and
conditions and such other terms and conditions as the Board shall determine not
inconsistent with the Plan. Any such loan must bear interest at a rate, and
otherwise be on repayment terms, which are not more favorable to the Participant
than comparable loans by the Bank Subsidiaries to unrelated customers at the
time the loan is made. In no event may the principal amount of any such loan
exceed the exercise price, at the date of exercise, of the Shares covered by the
Stock Option or portion thereof exercised by the Participant. When a loan shall
have been made, the Board shall require that Shares of Common Stock and/or other
collateral having a fair market value at least equal to the principal amount of
the loan shall be pledged by the Participant to the Company as security for
payment of the unpaid balance of the loan. Every loan shall also comply with all
applicable laws, regulations and rules of the Board of Governors of the Federal
Reserve System and any other governmental agency having jurisdiction thereof.

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GREATER COMMUNITY BANCORP 2001 STOCK                                      PAGE 6
OPTION PLAN FOR NONEMPLOYEE DIRECTORS

               ARTICLE VIII. ADJUSTMENT FOR RECAPITALIZATION, ETC.

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

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

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

          ARTICLE IX. GOVERNMENT REGULATIONS AND REGISTRATION OF SHARES

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

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

         Unless a registration statement under the Securities Act and the
applicable rules and regulations thereunder is then in effect with respect to
Shares issued upon exercise of any Stock Option (which registration shall not be
required), the Company shall require that the offer and sale of such Shares be
exempt from the registration provisions of said Act. In furtherance of such
exemption, the Company may require, as a condition precedent to the exercise of
any Stock Option, that the person exercising the Stock Option give to the
Company written representation and undertaking, satisfactory in form and
substance to the Company, that such person is acquiring the Shares for his own
account for investment and not with a view to the distribution or resale thereof

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GREATER COMMUNITY BANCORP 2001 STOCK                                      PAGE 7
OPTION PLAN FOR NONEMPLOYEE DIRECTORS

and otherwise establish to the Company's satisfaction that the offer or sale of
the Shares issuable upon exercise of the Stock Option will not constitute or
result in any breach or violation of the Securities Act or any similar State act
or statute or any rules or regulations thereunder. In the event a Registration
Statement under the Securities Act is not then in effect with respect to the
Shares issued upon exercise of a Stock Option, the Company shall place upon any
stock certificate an appropriate legend referring to the restrictions on
disposition under the Securities Act.

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

                           ARTICLE X. OTHER PROVISIONS

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

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

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

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

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

         Nothing in the Plan or in any Stock Option granted hereunder shall
confer on any Participant any right to continue as, or to become, a director or
Employee of any Affiliate, or to interfere in any way with the right of the
Company or any of its Subsidiaries to terminate such Participant's status as an
Employee or as a director of any Subsidiary at any time, subject to the
Participant's contract rights, if any, and applicable law.

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

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

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

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

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GREATER COMMUNITY BANCORP 2001 STOCK                                      PAGE 8
OPTION PLAN FOR NONEMPLOYEE DIRECTORS

                       ARTICLE XI. EFFECTIVE DATE OF PLAN

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

                ARTICLE XII. AMENDMENT OR DISCONTINUANCE OF PLAN

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

                       ARTICLE XIII. STOCKHOLDER APPROVAL

         Anything in the Plan to the contrary notwithstanding, the grant of
Stock Options hereunder shall be of no force or effect, and no Stock Option
granted hereunder shall vest or become exercisable in any respect, unless and
until the Plan is approved by the affirmative vote of the holders of a majority
of the Shares present, in person or by proxy, and entitled to vote at a meeting
of the stockholders of the Company duly held in accordance with the laws of New
Jersey.EXHIBIT 4.1

                                   LMKI, INC.

                   AMENDED AND RESTATED 1999 STOCK OPTION PLAN

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                                            PAGE
                                                                            ----
SECTION 1. PURPOSE.                                                           1
SECTION 2. DEFINITIONS.                                                       1
(a)      "Award"                                                              1
(b)      "Board of Directors"                                                 1
(c)      "Change in Control"                                                  1
(d)      "Code"                                                               2
(e)      "Committee"                                                          2
(f)      "Common-Law Employee"                                                2
(g)      "Company"                                                            2
(h)      "Employee"                                                           2
(i)      "Exchange Act"                                                       2
(j)      "Exercise Price"                                                     2
(k)      "Fair Market Value"                                                  2
(l)      "Incentive Stock Option" or "ISO"                                    3
(m)      "Nonstatutory Option" or "NSO"                                       3
(n)      "Offeree"                                                            3
(o)      "Option"                                                             3
(p)      "Optionee"                                                           3
(q)      "Outside Director"                                                   3
(r)      "Participant"                                                        3
(s)      "Plan"                                                               4
(t)      "Purchase Price"                                                     4
(u)      "Restricted Share"                                                   4
(v)      "Service"                                                            4
(w)      "Share"                                                              4
(x)      "Stock"                                                              4
(y)      "Stock Award Agreement"                                              4
(z)      "Stock Option Agreement"                                             4
(aa)     "Stock Purchase Agreement"                                           4
(bb)     "Subsidiary"                                                         5
(cc)     "Total and Permanent Disability"                                     5
(dd)     "W-2 Payroll"                                                        5
SECTION 3. ADMINISTRATION.                                                    5
(a)      Committee Membership                                                 5
(b)      Committee Procedures                                                 5
(c)      Committee Responsibilities                                           5
(d)      Committee Liability                                                  6
(e)      Financial Reports                                                    6
SECTION 4. ELIGIBILITY.                                                       6
(a)      General Rule                                                         6
(b)      Ten-Percent Shareholders                                             6
(c)      Attribution Rules                                                    6
(d)      Outstanding Stock                                                    7

                                      -i-
<PAGE>

SECTION 5. STOCK SUBJECT TO PLAN.                                             7
(a)      Basic Limitation                                                     7
(b)      Additional Shares                                                    7
SECTION 6. TERMS AND CONDITIONS OF AWARDS OR SALES.                           7
(a)      Stock Purchase Agreement                                             7
(b)      Duration of Offers                                                   8
(c)      Purchase Price                                                       8
(d)      Payment for Shares                                                   8
(e)      Exercise of Awards on Termination of Service                         9
SECTION 7. ADDITIONAL TERMS AND CONDITIONS OF RESTRICTED                      9
(a)      Form and Amount of Award                                             9
(b)      Exercisability                                                       9
(c)      Effect of Change in Control                                          9
(d)      Voting Rights                                                        9
SECTION 8. TERMS AND CONDITIONS OF OPTIONS.                                  10
(a)      Stock Option Agreement                                              10
(b)      Number of Shares                                                    10
(c)      Exercise Price                                                      10
(d)      Exercisability                                                      10
(e)      Effect of Change in Control                                         10
(f)      Term                                                                10
(g)      Exercise of Options on Termination of Service                       11
(h)      Payment of Option Shares                                            11
(i)      No Rights as a Shareholder                                          11
(j)      Modification, Extension and Assumption of Options                   12
SECTION 9. ADJUSTMENT OF SHARES.                                             12
(a)      General                                                             12
(b)      Reorganizations                                                     12
(c)      Reservation of Rights                                               12
SECTION 10. WITHHOLDING TAXES.                                               12
(a)      General                                                             12
(b)      Share Withholding                                                   13
(c)      Cashless Exercise/Pledge                                            13
(d)      Other Forms of Payment                                              13
SECTION 11. ASSIGNMENT OR TRANSFER OF AWARDS.                                13
(a)      General                                                             13
(b)      Trusts                                                              13
SECTION 12. LEGAL REQUIREMENTS.                                              14
SECTION 13. NO EMPLOYMENT RIGHTS.                                            14
SECTION 14. DURATION AND AMENDMENTS.                                         14
(a)      Term of the Plan                                                    14
(b)      Right to Amend or Terminate the Plan                                14
(c)      Effect of Amendment or Termination                                  14

                                      -ii-
<PAGE>

             LMKI, INC. AMENDED AND RESTATED 1999 STOCK OPTION PLAN
             ------------------------------------------------------

ITEM 1. PURPOSE.
----------------

         The purpose of the Amended and Restated 1999 Stock Option Plan (the
"Plan") is to offer selected employees, directors and consultants an opportunity
to acquire a proprietary interest in the success of the Company, or to increase
such interest, to encourage such selected persons to remain in the employ of the
Company and to attract new employees with outstanding qualifications. The Plan
seeks to achieve this purpose by providing for Awards in the form of Restricted
Shares and Options (which may constitute Incentive Stock Options or Nonstatutory
Stock Options) as well as the direct award or sale of Shares of the Company's
Common Stock. While this Plan is intended to satisfy federal Rule 701 and
Section 25102(o) of the California Corporations Code, awards may be granted
under this Plan in reliance upon other federal and state securities law
exemptions and to the extent another exemption is relied upon, the terms of this
Plan which are required only because of Rule 701 or Section 25102(o) need not
apply to the extent provided by the Committee in the award agreement.

ITEM 2. DEFINITIONS.
--------------------

         (a) "AWARD" shall mean any award of an Option, Restricted Share or
other right under the Plan.

         (b) "BOARD OF DIRECTORS" shall mean the Board of Directors of the
Company, as constituted from time to time.

         (c) "CHANGE IN CONTROL" shall mean:

                  (1) The consummation of a merger, consolidation, sale of the
         Company's stock, or other reorganization of the Company (other than a
         reincorporation of the Company), if after giving effect to such merger,
         consolidation or other reorganization of the Company, the stockholders
         of the Company immediately prior to such merger, consolidation or other
         reorganization do not represent a majority interest of the holders of
         voting securities (on a fully diluted basis) with the ordinary voting
         power to elect directors of the surviving or resulting entity after
         such merger, consolidation or other reorganization; or

                  (2) The sale of all or substantially all of the assets of the
         Company to a third party who is not an affiliate of the Company.

                  (3) The term Change in Control shall not include: (a) a
         transaction the sole purpose of which is to change the state of the
         Company's incorporation, or (b) the Company's initial public offering.

                                      -1-
<PAGE>

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

         (e) "COMMITTEE" shall mean a committee of the Board of Directors which
is authorized to administer the Plan under Section 3.

         (f) "COMMON-LAW EMPLOYEE" shall mean an individual paid from W-2
Payroll of the Company or a Subsidiary. If, during any period, the Company (or
Subsidiary, as applicable) has not treated an individual as a Common-Law
Employee and, for that reason, has not paid such individual in a manner which
results in the issuance of a Form W-2 and withheld taxes with respect to him or
her, then that individual shall not be an eligible Employee for that period,
even if any person, court of law or government agency determines, retroactively,
that that individual is or was a Common-Law Employee during all or any portion
of that period.

         (g) "COMPANY" shall mean LMKI, Inc.

         (h) "EMPLOYEE" shall mean (i) any individual who is a Common-Law
Employee of the Company or of a Subsidiary, (ii) a member of the Board of
Directors, including (without limitation) an Outside Director, or an affiliate
of a member of the Board of Directors, (iii) a member of the board of directors
of a Subsidiary, or (iv) an independent contractor who performs services for the
Company or a Subsidiary. Service as a member of the Board of Directors, a member
of the board of directors of a Subsidiary or an independent contractor shall be
considered employment for all purposes of the Plan except the second sentence of
Section 4(a).

         (i) "EXCHANGE ACT" means the Securities and Exchange Act of 1934, as
amended.

         (j) "EXERCISE PRICE" shall mean the amount for which one Share may be
purchased upon exercise of an Option, as specified by the Committee in the
applicable Stock Option Agreement.

         (k) "FAIR MARKET VALUE" means the market price of Shares, determined by
the Committee as follows:

                  (1) If the Shares were traded over-the-counter on the date in
         question but were not traded on the Nasdaq Stock Market or the Nasdaq
         National Market System, then the Fair Market Value shall be equal to
         the mean between the last reported representative bid and asked prices
         quoted for such date by the principal automated inter-dealer quotation
         system on which the Shares are quoted or, if the Shares are not quoted
         on any such system, by the "Pink Sheets" published by the National
         Quotation Bureau, Inc.;

                                      -2-
<PAGE>

                  (2) If the Shares were traded over-the-counter on the date in
         question and were traded on the Nasdaq Stock Market or the Nasdaq
         National Market System, then the Fair Market Value shall be equal to
         the last-transaction price quoted for such date by the Nasdaq Stock
         Market or the Nasdaq National Market;

                  (3) If the Shares were traded on a stock exchange on the date
         in question, then the Fair Market Value shall be equal to the closing
         price reported by the applicable composite transactions report for such
         date; and

                  (4) If none of the foregoing provisions is applicable, then
         the Fair Market Value shall be determined by the Committee in good
         faith on such basis as it deems appropriate.

         In all cases, the determination of Fair Market Value by the Committee
shall be conclusive and binding on all persons.

         (l) "INCENTIVE STOCK OPTION" OR "ISO" shall mean an employee incentive
stock option described in Code section 422(b).

         (m) "NONSTATUTORY OPTION" OR "NSO" shall mean an employee stock option
that is not an ISO.

         (n) "OFFEREE" shall mean an individual to whom the Committee has
offered the right to acquire Shares under the Plan (other than upon exercise of
an Option).

         (o) "OPTION" shall mean an Incentive Stock Option or Nonstatutory
Option granted under the Plan and entitling the holder to purchase Shares.

         (p) "OPTIONEE" shall mean an individual or estate who holds an Option.

         (q) "OUTSIDE DIRECTOR" shall mean a member of the Board who is not a
Common-Law Employee of the Company or a Subsidiary.

         (r) "PARTICIPANT" shall mean an individual or estate who holds an
Award.

                                      -3-
<PAGE>

         (s) "PLAN" shall mean this Amended and Restated 1999 Stock Option Plan
of LMKI, Inc.

         (t) "PURCHASE PRICE" shall mean the consideration for which one Share
may be acquired under the Plan (other than upon exercise of an Option), as
specified by the Committee.

         (u) "RESTRICTED SHARE" shall mean a Share sold or granted to an
eligible Employee which is nontransferable and subject to substantial risk of
forfeiture until restrictions lapse.

         (v) "SERVICE" shall mean service as an Employee.

         (w) "SHARE" shall mean one share of Stock, as adjusted in accordance
with Section 9 (if applicable).

         (x) "STOCK" shall mean the common stock of the Company.

         (y) "STOCK AWARD AGREEMENT" shall mean the agreement between the
Company and the recipient of a Restricted Share which contains the terms,
conditions and restrictions pertaining to such Restricted Share.

         (z) "STOCK OPTION AGREEMENT" shall mean the agreement between the
Company and an Optionee which contains the terms, conditions and restrictions
pertaining to his or her Option.

         (aa) "STOCK PURCHASE AGREEMENT" shall mean the agreement between the
Company and an Offeree who acquires Shares under the Plan which contains the
terms, conditions and restrictions pertaining to the acquisition of such Shares.

                                      -4-
<PAGE>

         (bb) "SUBSIDIARY" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that attains
the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.

         (cc) "TOTAL AND PERMANENT DISABILITY" means that the Optionee is unable
to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment.

         (dd) "W-2 PAYROLL" means whatever mechanism or procedure that the
Company or a Subsidiary utilizes to pay any individual which results in the
issuance of Form W-2 to the individual. "W-2 Payroll" does not include any
mechanism or procedure which results in the issuance of any form other than a
Form W-2 to an individual, including, but not limited to, any Form 1099 which
may be issued to an independent contractor, an agency employee or a consultant.
Whether a mechanism or procedure qualifies as a "W-2 Payroll" shall be
determined in the absolute discretion of the Company (or Subsidiary, as
applicable), and the Company or Subsidiary determination shall be conclusive and
binding on all persons.

ITEM 3. ADMINISTRATION.
-----------------------

         (a) COMMITTEE MEMBERSHIP. The Plan shall be administered by the
Compensation Committee (the "Committee") appointed by the Company's Board of
Directors and comprised of at least two or more Outside Directors (although
Committee functions may be delegated to officers to the extent the awards relate
to persons who are not subject to the reporting requirements of Section 16 of
the Exchange Act). If no Committee has been appointed, the entire Board shall
constitute the Committee.

         (b) COMMITTEE PROCEDURES. The Board of Directors shall designate one
of the members of the Committee as chairperson. The Committee may hold meetings
at such times and places as it shall determine. The acts of a majority of the
Committee members present at meetings at which a quorum exists, or acts reduced
to or approved in writing by all Committee members, shall be valid acts of the
Committee.

         (c) COMMITTEE RESPONSIBILITIES. The Committee has and may exercise
such power and authority as may be necessary or appropriate for the Committee to
carry out its functions as described in the Plan. The Committee has authority in
its discretion to determine eligible Employees to whom, and the time or times at
which, Awards may be granted and the number of Shares subject to each Award.
Subject to the express provisions of the respective Award agreements (which need

                                      -5-
<PAGE>

not be identical) and to make all other determinations necessary or advisable
for Plan administration, the Committee has authority to prescribe, amend, and
rescind rules and regulations relating to the Plan. All interpretations,
determinations, and actions by the Committee will be final, conclusive, and
binding upon all persons.

         (d) COMMITTEE LIABILITY. No member of the Board or the Committee will
be liable for any action or determination made in good faith by the Committee
with respect to the Plan or any Award made under the Plan.

         (e) FINANCIAL REPORTS. To the extent required by applicable law, and
not less often than annually, the Company shall furnish to Offerees, Optionees
and Shareholders who have received Stock under the Plan its financial statements
including a balance sheet regarding the Company's financial condition and
results of operations, unless such Offerees, Optionees or Shareholders have
duties with the Company that assure them access to equivalent information. Such
financial statements need not be audited.

ITEM 4. ELIGIBILITY.
--------------------

         (a) GENERAL RULE. Only Employees shall be eligible for designation as
Participants by the Committee. In addition, only individuals who are employed as
Common-Law Employees by the Company or a Subsidiary shall be eligible for the
grant of ISOs.

         (b) TEN-PERCENT SHAREHOLDERS. An Employee who owns more than ten
percent (10%) of the total combined voting power of all classes of outstanding
stock of the Company or any of its Subsidiaries shall not be eligible for
designation as an Offeree or Optionee unless (i) the Exercise Price for an ISO
(and a NSO to the extent required by applicable law) is at least one hundred ten
percent (110%) of the Fair Market Value of a Share on the date of grant, (ii) if
required by applicable law, the Purchase Price of Shares is at least one hundred
percent (100%) of the Fair Market Value of a Share on the date of grant, and
(iii) in the case of an ISO, such ISO by its terms is not exercisable after the
expiration of five years from the date of grant.

         (c) ATTRIBUTION RULES. For purposes of Subsection (b) above, in
determining stock ownership, an Employee shall be deemed to own the stock owned,
directly or indirectly, by or for his brothers, sisters, spouse, ancestors and
lineal descendants. Stock owned, directly or indirectly, by or for a
corporation, partnership, estate or trust shall be deemed to be owned
proportionately by or for its shareholders, partners or beneficiaries. Stock
with respect to which such Employee holds an Option shall not be counted.

                                      -6-
<PAGE>

         (d) OUTSTANDING STOCK. For purposes of Subsection (b) above,
"outstanding stock" shall include all stock actually issued and outstanding
immediately after the grant. "Outstanding Stock" shall not include shares
authorized for issuance under outstanding Options held by the Employee or by any
other person.

ITEM 5. STOCK SUBJECT TO PLAN.
------------------------------

         (a) BASIC LIMITATION. Shares offered under the Plan shall be
authorized but unissued Shares. Subject to Sections 5(b) and 9 of the Plan, the
aggregate number of Shares which may be issued or transferred as common stock
pursuant to an Award under the Plan shall not exceed 5,000,000 Shares.

         In any event, (i) the number of Shares which are subject to Awards or
other rights outstanding at any time under the Plan shall not exceed the number
of Shares which then remain available for issuance under the Plan; and (ii) to
the extent an award is made in reliance upon the exemption available under
Section 25102(o) of the California Corporations Code, the number of Shares which
are subject to Awards or other rights outstanding at any time under the Plan or
otherwise shall not exceed the limitation imposed by Section 260.140.45 of Title
10 of the California Code of Regulations. The Company, during the term of the
Plan, shall at all times reserve and keep available sufficient Shares to satisfy
the requirements of the Plan.

         (b) ADDITIONAL SHARES. In the event that any outstanding Option or
other right for any reason expires or is canceled or otherwise terminated, the
Shares allocable to the unexercised portion of such Option or other right shall
again be available for the purposes of the Plan. If a Restricted Share is
forfeited before any dividends have been paid with respect to such Restricted
Share, then such Restricted Share shall again become available for award under
the Plan.

ITEM 6. TERMS AND CONDITIONS OF AWARDS OR SALES.
------------------------------------------------

         (a) STOCK PURCHASE AGREEMENT. Each award or sale of Shares under the
Plan (other than upon exercise of an Option) shall be evidenced by a Stock
Purchase Agreement between the Offeree and the Company. Such award or sale shall
be subject to all applicable terms and conditions of the Plan and may be subject
to any other terms and conditions which are not inconsistent with the Plan and
which the Committee deems appropriate for inclusion in a Stock Purchase
Agreement. The provisions of the various Stock Purchase Agreements entered into
under the Plan need not be identical.

                                      -7-
<PAGE>

         (b) DURATION OF OFFERS. Any right to acquire Shares under the Plan
(other than an Option) shall automatically expire if not exercised by the
Offeree within 30 days after the grant of such right was communicated to the
Offeree by the Committee.

         (c) PURCHASE PRICE. Unless otherwise permitted by applicable law, the
Purchase Price of Shares to be offered under the Plan shall not be less than
eighty-five percent (85%) of the Fair Market Value of a Share on the date of
grant (100% for 10% shareholders), except as otherwise provided in Section 4(b).
Subject to the preceding sentence, the Purchase Price shall be determined by the
Committee in its sole discretion. The Purchase Price shall be payable in a form
described in Subsection (d) below.

         (d) PAYMENT FOR SHARES. The entire Purchase Price of Shares issued
under the Plan shall be payable in lawful money of the United States of America
at the time when such Shares are purchased, except as provided below:

                  (1) SURRENDER OF STOCK. To the extent that a Stock Option
         Agreement so provides, payment may be made all or in part with Shares
         which have already been owned by the Optionee or Optionee's
         representative for any time period specified by the Committee and which
         are surrendered to the Company in good form for transfer. Such shares
         shall be valued at their Fair Market Value on the date when the new
         Shares are purchased under the Plan.

                  (2) PROMISSORY NOTES. To the extent that a Stock Option
         Agreement or Stock Purchase Agreement so provides, payment may be made
         all or in part with a full recourse promissory note executed by the
         Optionee or Offeree. The interest rate and other terms and conditions
         of such note shall be determined by the Committee. The Committee may
         require that the Optionee or Offeree pledge his or her Shares to the
         Company for the purpose of securing the payment of such note. In no
         event shall the stock certificate(s) representing such Shares be
         released to the Optionee or Offeree until such note is paid in full.

                  (3) CASHLESS EXERCISE. To the extent that a Stock Option
         Agreement so provides and a public market for the Shares exists,
         payment may be made all or in part by delivery (on a form prescribed by
         the Committee) of an irrevocable direction to a securities broker to
         sell shares and to deliver all or part of the sale proceeds to the
         Company in payment of the aggregate Exercise Price.

                  (4) OTHER FORMS OF PAYMENT. To the extent provided in the
         Stock Option Agreement, payment may be made in any other form that is
         consistent with applicable laws, regulations and rules.

                                      -8-
<PAGE>

         (e) EXERCISE OF AWARDS ON TERMINATION OF SERVICE. Each Stock Award
Agreement shall set forth the extent to which the recipient shall have the right
to exercise the Award following termination of the recipient's Service with the
Company and its Subsidiaries. Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all the Awards issued
pursuant to the Plan, and may reflect distinctions based on the reasons for
termination of employment.

ITEM 7. ADDITIONAL TERMS AND CONDITIONS OF RESTRICTED SHARES.
-------------------------------------------------------------

         (a) FORM AND AMOUNT OF AWARD. Each Stock Award Agreement shall specify
the number of Shares that are subject to the Award. Restricted Shares may be
awarded in combination with NSOs and such an Award may provide that the
Restricted Shares will be forfeited in the event that the related NSOs are
exercised.

         (b) EXERCISABILITY. Each Stock Award Agreement shall specify the
conditions upon which Restricted Shares shall become vested, in full or in
installments. To the extent required by applicable law, each Stock Award shall
become exercisable no less rapidly than the rate of 20% per year for each of the
first five years from the date of grant. Subject to the preceding sentence, the
exercisability of any Stock Award shall be determined by the Committee in its
sole discretion.

         (c) EFFECT OF CHANGE IN CONTROL. The Committee may determine at the
time of making an Award or thereafter, that such Award shall become fully
vested, in whole or in part, in the event that a Change in Control occurs with
respect to the Company.

         (d) VOTING RIGHTS. Holders of Restricted Shares awarded under the Plan
shall have the same voting, dividend and other rights as the Company's other
stockholders. A Stock Award Agreement, however, may require that the holders
invested any cash dividends received in additional Restricted Shares. Such
additional Restricted Shares shall be subject to the same conditions and
restrictions as the Award with respect to which the dividends were paid. Such
additional Restricted Shares shall not reduce the number of Shares available
under Section 5.

                                      -9-
<PAGE>

ITEM 8. TERMS AND CONDITIONS OF OPTIONS.
----------------------------------------

         (a) STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms and conditions of
the Plan and may be subject to any other terms and conditions which are not
inconsistent with the Plan and which the Committee deems appropriate for
inclusion in a Stock Option Agreement. The provisions of the various Stock
Option Agreements entered into under the Plan need not be identical.

         (b) NUMBER OF SHARES. Each Stock Option Agreement shall specify the
number of Shares that are subject to the Option and shall provide for the
adjustment of such number in accordance with Section 9. The Stock Option
Agreement shall also specify whether the Option is an ISO or a Nonstatutory
Option.

         (c) EXERCISE PRICE. Each Stock Option Agreement shall specify the
Exercise Price. The Exercise Price of an ISO shall not be less than one hundred
percent (100%) of the Fair Market Value of a Share on the date of grant, except
as otherwise provided in Section 4(b). To the extent required by applicable law
and except as otherwise provided in Section 4(b), the Exercise Price of a
Nonstatutory Option shall not be less than eighty-five percent (85%) of the Fair
Market Value of a Share on the date of grant. Subject to the preceding two
sentences, the Exercise Price under any Option shall be determined by the
Committee in its sole discretion. The Exercise Price shall be payable in a form
described in Subsection (h) below.

         (d) EXERCISABILITY. Each Stock Option Agreement shall specify the
date when all or any installment of the Option is to become exercisable. To the
extent required by applicable law, an Option shall become exercisable no less
rapidly than the rate of 20% per year for each of the first five years from the
date of grant. Subject to the preceding sentence, the exercisability of any
Option shall be determined by the Committee in its sole discretion.

         (e) EFFECT OF CHANGE IN CONTROL. The Committee may determine, at the
time of granting an Option or thereafter, that such Option shall become fully
exercisable as to all Shares subject to such Option in the event that a Change
in Control occurs with respect to the Company.

         (f) TERM. The Stock Option Agreement shall specify the term of the
Option. The term shall not exceed ten years from the date of grant (or five (5)
years for ten percent (10%) shareholders as provided in Section 4(b)). Subject
to the preceding sentence, the Committee at its sole discretion shall determine
when an Option is to expire.

                                      -10-
<PAGE>

         (g) EXERCISE OF OPTIONS ON TERMINATION OF SERVICE. Each Option shall
set forth the extent to which the Optionee shall have the right to exercise the
Option following termination of the Optionee's Service with the Company and its
Subsidiaries. Such provisions shall be determined in the sole discretion of the
Committee, need not be uniform among all Options issued pursuant to the Plan,
and may reflect distinctions based on the reasons for termination of employment.
Notwithstanding the foregoing, to the extent required by applicable law, each
Option shall provide that the Optionee shall have the right to exercise the
vested portion of any Option held at termination for at least 60 days following
termination of Service with the Company for any reason, and that the Optionee
shall have the right to exercise the Option for at least six months if the
Optionee's Service terminates due to death or Disability.

         (h) PAYMENT OF OPTION SHARES. The entire Exercise Price of Shares
issued under the Plan shall be payable in lawful money of the United States of
America at the time when such Shares are purchased, except as provided below:

                  (1) SURRENDER OF STOCK. To the extent that a Stock Option
         Agreement so provides, payment may be made all or in part with Shares
         which have already been owned by the Optionee or Optionee's
         representative for any time period specified by the Committee and which
         are surrendered to the Company in good form for transfer. Such shares
         shall be valued at their Fair Market Value on the date when the new
         Shares are purchased under the Plan.

                  (2) PROMISSORY NOTES. To the extent that a Stock Option
         Agreement or Stock Purchase Agreement so provides, payment may be made
         all or in part with a full recourse promissory note executed by the
         Optionee or Offeree. The interest rate and other terms and conditions
         of such note shall be determined by the Committee. The Committee may
         require that the Optionee or Offeree pledge his or her Shares to the
         Company for the purpose of securing the payment of such note. In no
         event shall the stock certificate(s) representing such Shares be
         released to the Optionee or Offeree until such note is paid in full.

                  (3) CASHLESS EXERCISE. To the extent that a Stock Option
         Agreement so provides and a public market for the Shares exists,
         payment may be made all or in part by delivery (on a form prescribed by
         the Committee) of an irrevocable direction to a securities broker to
         sell shares and to deliver all or part of the sale proceeds to the
         Company in payment of the aggregate Exercise Price.

                  (4) OTHER FORMS OF PAYMENT. To the extent provided in the
         Stock Option Agreement, payment may be made in any other form that is
         consistent with applicable laws, regulations and rules.

                                      -11-
<PAGE>

         (j) MODIFICATION, EXTENSION AND ASSUMPTION OF OPTIONS. Within the
limitations of the Plan, the Committee may modify, extend or assume outstanding
Options or may accept the cancellation of outstanding Options (whether granted
by the Company or another issuer) in return for the grant of new Options for the
same or a different number of Shares and at the same or a different Exercise
Price or for other consideration.

ITEM 9. ADJUSTMENT OF SHARES.
-----------------------------

         (a) GENERAL. In the event of a subdivision of the outstanding Stock,
a declaration of a dividend payable in Shares, a combination or consolidation of
the outstanding Stock into a lesser number of Shares, a recapitalization, a
reclassification or a similar occurrence, the Committee shall make appropriate
adjustments, subject to the limitations set forth in Section 9(c), in one or
more of (i) the number of Shares available for future Awards under Section 5,
(ii) the number of Shares covered by each outstanding Option or Purchase
Agreement or (iii) the Exercise Price or Purchase Price under each outstanding
Option or Stock Purchase Agreement.

         (b) REORGANIZATIONS. In the event that the Company is a party to a
merger or reorganization, outstanding Options shall be subject to the agreement
of merger or reorganization, provided however, that the limitations set forth in
Section 9(c) shall apply.

         (c) RESERVATION OF RIGHTS. Except as provided in this Section 9, an
Optionee or an Offeree shall have no rights by reason of (i) any subdivision or
consolidation of shares of stock of any class, (ii) the payment of any dividend
or (iii) any other increase or decrease in the number of shares of stock of any
class. Any issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number, Exercise
Price or Purchase Agreement of Shares subject to an Option or Stock Purchase
Agreement. The grant of an Award pursuant to the Plan shall not affect in any
way the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, to merge or
consolidate or to dissolve, liquidate, sell or transfer all or any part of its
business or assets.

ITEM 10. WITHHOLDING TAXES.
---------------------------

         (a) GENERAL. To the extent required by applicable federal, state,
local or foreign law, a Participant or his or her successor shall make
arrangements satisfactory to the Committee for the satisfaction of any
withholding tax obligations that arise in connection with the Plan. The Company
shall not be required to issue any Shares or make any cash payment under the
Plan until such obligations are satisfied.

                                      -12-
<PAGE>

         (b) SHARE WITHHOLDING. The Committee may permit a Participant to
satisfy all or part of his or her withholding or income tax obligations by
having the Company withhold all or a portion of any Shares that otherwise would
be issued to him or her or by surrendering all or a portion of any Shares that
he or she previously acquired. Such Shares shall be valued at their Fair Market
Value on the date when taxes otherwise would be withheld in cash. Any payment of
taxes by assigning Shares to the Company may be subject to restrictions,
including any restrictions required by rules of any federal or state regulatory
body or other authority.

         (c) CASHLESS EXERCISE/PLEDGE. The Committee may provide that if
Company Shares are publicly traded at the time of exercise, arrangements may be
made to meet the Optionee's withholding obligation by cashless exercise or
pledge.

         (d) OTHER FORMS OF PAYMENT. The Committee may permit such other means
of tax withholding as it deems appropriate.

ITEM 11. ASSIGNMENT OR TRANSFER OF AWARDS.
------------------------------------------

         (a) GENERAL. An Award granted under the Plan shall not be
anticipated, assigned, attached, garnished, optioned, transferred or made
subject to any creditor's process, whether voluntarily, involuntarily or by
operation of law, except as approved by the Committee. Notwithstanding the
foregoing, ISOs may not be transferable. Also notwithstanding the foregoing,
while the Shares are subject to California Corporations Code ss. 25102(o), (i)
Offerees and Optionees may not transfer their rights hereunder except by will,
beneficiary designation or the laws of descent and distribution, and (ii) any
rights of repurchase in favor of the Company shall take into account the
provisions of Sections 260.140.41 or 260.140.42 of Title 10 of the California
Code of Regulations, as applicable.

         (b) TRUSTS. Neither this Section 11 nor any other provision of the
Plan shall preclude a Participant from transferring or assigning Restricted
Shares to (a) the trustee of a trust that is revocable by such Participant
alone, both at the time of the transfer or assignment and at all times
thereafter prior to such Participant's death, or (b) the trustee of any other
trust to the extent approved by the Committee in writing. A transfer or
assignment of Restricted Shares from such trustee to any other person than such
Participant shall be permitted only to the extent approved in advance by the
Committee in writing, and Restricted Shares held by such trustee shall be
subject to all the conditions and restrictions set forth in the Plan and in the
applicable Stock Award Agreement, as if such trustee were a party to such
Agreement.

                                      -13-
<PAGE>

ITEM 12. LEGAL REQUIREMENTS.
----------------------------

         Shares shall not be issued under the Plan unless the issuance and
delivery of such Shares complies with (or is exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, and the regulations of any stock exchange on which the
Company's securities may then be listed.

ITEM 13. NO EMPLOYMENT RIGHTS.
------------------------------

         No provision of the Plan, nor any right or Option granted under the
Plan, shall be construed to give any person any right to become, to be treated
as, or to remain an Employee. The Company and its Subsidiaries reserve the right
to terminate any person's Service at any time and for any reason.

ITEM 14. DURATION AND AMENDMENTS.
---------------------------------

         (a) TERM OF THE PLAN. The Plan, as set forth herein, shall become
effective on the date of its adoption by the Board of Directors, subject to the
approval of the Company's shareholders. In the event that the shareholders fail
to approve the Plan within twelve (12) months after its adoption by the Board of
Directors, any grants already made shall be null and void, and no additional
grants shall be made after such date. The Plan shall terminate automatically ten
(10) years after its adoption by the Board of Directors and may be terminated on
any earlier date pursuant to Subsection (b) below.

         (b) RIGHT TO AMEND OR TERMINATE THE PLAN. The Board of Directors may
amend the Plan at any time and from time to time. Rights and obligations under
any right or Option granted before amendment of the Plan shall not be materially
altered, or impaired adversely, by such amendment, except with consent of the
person to whom the right or Option was granted. An amendment of the Plan shall
be subject to the approval of the Company's shareholders only to the extent
required by applicable laws, regulations or rules including the rules of any
applicable exchange.

         (c) EFFECT OF AMENDMENT OR TERMINATION. No Shares shall be issued or
sold under the Plan after the termination thereof, except upon exercise of an
Option granted prior to such termination. The termination of the Plan, or any
amendment thereof, shall not affect any Shares previously issued or any Option
previously granted under the Plan.

                                      -14-
<PAGE>

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE
OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT
PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND
QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

                                   LMKI, INC.
                   AMENDED AND RESTATED 1999 STOCK OPTION PLAN

                        INCENTIVE STOCK OPTION AGREEMENT

         LMKI, Inc. (the "Company"), hereby grants an Option to purchase shares
of its common stock ("Shares") to the Optionee named below. The terms and
conditions of the Option are set forth in this cover sheet, in the attachment
and in the Company's Amended and Restated 1999 Stock Option Plan (the "Plan").

         Date of Grant:
                        --------------------

         Name of Optionee:
                           --------------------------------------------

         Optionee's Social Security Number:
                                            ---------------------------

         Number of Shares Covered by Option:
                                             --------------------------

         Exercise Price per Share:  $
                                     ----------------
[must be at least 100% fair market value on Date of Grant]

         Vesting Start Date:
                             ---------------

___ Check here if Optionee is a 10% owner (so that exercise price must be 110%
of fair market value and term will not exceed 5 years).

         BY SIGNING THIS COVER SHEET, YOU AGREE TO ALL OF THE TERMS AND
CONDITIONS DESCRIBED IN THE ATTACHED AGREEMENT AND IN THE PLAN, A COPY OF WHICH
IS ALSO ATTACHED.

Optionee:
                  --------------------------------------------
                         (Signature)

Company:
                  --------------------------------------------
                         (Signature)

                Title:
                       ---------------------------------------

                                      -15-
<PAGE>

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE
OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT
PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND
QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

                                   LMKI, INC.
                   AMENDED AND RESTATED 1999 STOCK OPTION PLAN

                        INCENTIVE STOCK OPTION AGREEMENT

INCENTIVE STOCK OPTION             This Option is intended to be an incentive
                           stock option under section 422 of the Internal
                           Revenue Code and will be interpreted accordingly.

VESTING                            No Shares will vest until you have performed
                           _________ (____) months of Service from the
                           commencement of your employment with the Company.
                           Your Option shall vest as to ________ of the Shares
                           on the date _______ (____) months from the Vesting
                           Start Date as shown on the cover sheet. Thereafter,
                           Shares shall vest at the rate of _______ of the
                           Shares at the end of each full month thereafter.
                           After you have completed _________ (____) months of
                           Service, the number of Shares which vest under this
                           Option at the Exercise Price shall be equal to the
                           product of the number of full months of your
                           continuous employment with the Company ("Service")
                           (including any approved leaves of absence) from the
                           Vesting Start Date times the number of Shares covered
                           by this Option times ________. The resulting number
                           of Shares will be rounded to the nearest whole
                           number. No additional Shares will vest after your
                           Service has terminated for any reason.

                                    You should note that you may exercise the
                           Option prior to vesting. In that case, the Company
                           has a right to repurchase the unvested shares at the
                           original exercise price if you terminate employment
                           before vesting in all shares you purchased. Also, if
                           you exercise before vesting, you should consider
                           making an 83(b) election. Please see the attached Tax
                           Summary. THE 83(b) ELECTION MUST BE FILED WITHIN 30
                           DAYS OF THE DATE YOU EXERCISE.

                                      -16-
<PAGE>

TERM                                Your Option will expire in any event at
                           the close of business at Company headquarters on
                           the day before the tenth anniversary (fifth
                           anniversary for a 10% owner) of the Date of Grant,
                           as shown on the cover sheet. (It will expire
                           earlier if your Service terminates, as described
                           below.)

REGULAR TERMINATION                 If your Service terminates for any reason
                           except death, Disability or for "Cause," your
                           Option will expire at the close of business at
                           Company headquarters on the 30th day after your
                           termination date. During that 30-day period, you
                           may exercise that portion of your Option that was
                           vested on your termination date.

DEATH                                 If you die while in Service with the
                           Company, your Option will expire at the close of
                           business at Company headquarters on the date six
                           months after the date of death. During that
                           six-month period, your estate or heirs may exercise
                           that portion of your Option that was vested on
                           the date of death.

DISABILITY                          If your Service terminates because of your
                           Disability, your Option will expire at the close of
                           business at Company headquarters on the date six
                           months after your termination date. (However, if your
                           Disability is not expected to result in death or to
                           last for a continuous period of at least 12 months,
                           your Option will be eligible for ISO tax treatment
                           only if it is exercised within three months following
                           the termination of your Service.) During that
                           six-month period, you may exercise that portion of
                           your Option that was vested on the date of your
                           Disability.

                                    "Disability" means that you are unable to
                           engage in any substantial gainful activity by reason
                           of any medically determinable physical or mental
                           impairment.

LEAVES OF ABSENCE                   For purposes of this Option, your Service
                           does not terminate when you go on a BONA FIDE leave
                           of absence that was approved by the Company in
                           writing, if the terms of the leave provide for
                           continued service crediting, or when continued
                           service crediting is required by applicable law.
                           However, your Service will be treated as terminating
                           30 days after you went on leave, unless your right to
                           return to active work is guaranteed by law or by a
                           contract. Your Service terminates in any event when
                           the approved leave ends unless you immediately return
                           to active work. The Company determines which leaves
                           count for this purpose, and when your Service
                           terminates for all purposes under the Plan. The
                           Company also determines the extent to which you may
                           exercise the vested portion of your Option during a
                           leave of absence.

                                      -17-
<PAGE>

NOTICE OF EXERCISE                  When you wish to exercise this Option, you
                           must execute EXHIBIT A (and, if exercise is prior to
                           vesting, you must also execute EXHIBITS B AND D).
                           Your exercise will be effective when it is received
                           by the Company. If someone else wants to exercise
                           this Option after your death, that person must prove
                           to the Company's satisfaction that he or she is
                           entitled to do so.

FORM OF PAYMENT                     When you submit EXHIBIT A, you must include
                           payment of the Exercise Price for the Shares you are
                           purchasing. Payment may be made in one (or a
                           combination) of the following forms at the discretion
                           of the committee:

                           o        Your personal check, a cashier's check or a
                                    money order.

                           o        Shares which you have owned for six months
                                    and which are surrendered to the Company.
                                    The value of the Shares, determined as of
                                    the effective date of the Option exercise,
                                    will be applied to the Exercise Price.

                           o        To the extent that a public market for the
                                    Shares exists as determined by the Company,
                                    by delivery (on a form prescribed by the
                                    Committee) of an irrevocable direction to a
                                    securities broker to sell Shares and to
                                    deliver all or part of the sale proceeds to
                                    the Company in payment of the aggregate
                                    Exercise Price.

                           o        Any other form of legal consideration
                                    approved by the Committee.

WITHHOLDING TAXES                   You will not be allowed to exercise this
                           Option unless you make acceptable arrangements to pay
                           any withholding or other taxes that may be due as a
                           result of the Option exercise or the sale of Shares
                           acquired upon exercise of this Option.

RESTRICTIONS ON RESALE              By signing this Agreement, you agree not to
                           exercise this Option or sell any Shares acquired upon
                           exercise of this Option at a time when applicable
                           laws, regulations or Company or underwriter trading
                           policies prohibit exercise or sale. In particular,
                           the Company shall have the right to designate one or
                           more periods of time, each of which shall not exceed
                           180 days in length, during which this Option shall
                           not be exercisable if the Company determines (in its
                           sole discretion) that such limitation on exercise
                           could in any way facilitate a lessening of any
                           restriction on transfer pursuant to the Securities
                           Act or any state securities laws with respect to any
                           issuance of securities by the Company, facilitate the
                           registration or qualification of any securities by

                                      -18-
<PAGE>

                           the Company under the Securities Act or any state
                           securities laws, or facilitate the perfection of any
                           exemption from the registration or qualification
                           requirements of the Securities Act or any applicable
                           state securities laws for the issuance or transfer of
                           any securities. Such limitation on exercise shall not
                           alter the vesting schedule set forth in this
                           Agreement other than to limit the periods during
                           which this Option shall be exercisable.

                           Furthermore, in respect of any underwritten public
                           offering by the Company, you agree that you will not
                           sell or otherwise transfer or dispose of any Shares
                           covered by this Option during a reasonable and
                           customary period of time as agreed to by the Company
                           and the underwriters, not to exceed the greater of
                           (a) 180 days following the effective date of the
                           registration statement of the Company filed under the
                           Securities Act in respect of such offering and (b)
                           such other period of time as agreed to by holders of
                           a majority of the then outstanding Shares. By signing
                           this Agreement you agree to execute and deliver such
                           other agreements as may be reasonably requested by
                           the Company or the underwriter which are consistent
                           with the foregoing or which are necessary to give
                           further effect thereto. The Company may impose
                           stop-transfer instructions with respect to the Shares
                           subject to the foregoing restriction until the end of
                           such period.

                           If the sale of Shares under the Plan is not
                           registered under the Securities Act of 1933, as
                           amended (the "Securities Act"), but an exemption is
                           available which requires an investment or other
                           representation, you shall represent and agree at the
                           time of exercise that the Shares being acquired upon
                           exercise of this Option are being acquired for
                           investment, and not with a view to the sale or
                           distribution thereof, and shall make such other
                           representations as are deemed necessary or
                           appropriate by the Company and its counsel.

THE COMPANY'S RIGHT OF              In the event that you propose to sell,
FIRST REFUSAL              pledge or otherwise transfer to a third party any
                           Shares acquired under this Agreement, or any interest
                           in such Shares, the Company shall have the "Right of
                           First Refusal" with respect to all (and not less than
                           all) of such Shares. If you desire to transfer Shares
                           acquired under this Agreement, you must give a
                           written "Transfer Notice" to the Company describing
                           fully the proposed transfer, including the number of
                           Shares proposed to be transferred, the proposed
                           transfer price and the name and address of the
                           proposed transferee. The Transfer Notice shall be
                           signed both by you and by the proposed transferee and
                           must constitute a binding commitment of both parties
                           to the transfer of the Shares.

                                      -19-
<PAGE>

                                    The Company and its assignees shall have the
                           right to purchase all, and not less than all, of the
                           Shares on the terms described in the Transfer Notice
                           (subject, however, to any change in such terms
                           permitted in the next paragraph) by delivery of a
                           Notice of Exercise of the Right of First Refusal
                           within 30 days after the date when the Transfer
                           Notice was received by the Company. The Company's
                           rights under this Subsection shall be freely
                           assignable, in whole or in part.

                                    If the Company fails to exercise its Right
                           of First Refusal within 30 days after the date when
                           it received the Transfer Notice, you may, not later
                           than 60 days following receipt of the Transfer Notice
                           by the Company, conclude a transfer of the Shares
                           subject to the Transfer Notice on the terms and
                           conditions described in the Transfer Notice. Any
                           proposed transfer on terms and conditions different
                           from those described in the Transfer Notice, as well
                           as any subsequent proposed transfer by you, shall
                           again be subject to the Right of First Refusal and
                           shall require compliance with the procedure described
                           in the paragraph above. If the Company exercises its
                           Right of First Refusal, you and the Company (or its
                           assignees) shall consummate the sale of the Shares on
                           the terms set forth in the Transfer Notice.

                                    The Company's Right of First Refusal shall
                           terminate upon the Company's initial public offering.

                                    The Company's Right of First Refusal shall
                           inure to the benefit of its successors and assigns
                           and shall be binding upon any transferee of the
                           Shares.

RIGHT OF REPURCHASE                 Following termination of your Service for
                           any reason, the Company shall have the right to
                           purchase all of those vested Shares that you have or
                           will acquire under this Option (unvested Shares which
                           have been exercised are subject to a Repurchase
                           Option set forth in EXHIBIT A). If the Company fails
                           to provide you with written notice of its intention
                           to purchase such Shares before or within 30 days of
                           the date the Company receives written notice from you
                           of your termination of Service, the Company's right
                           to purchase such Shares shall terminate. If the
                           Company exercises its right to purchase such Shares,
                           the Company will consummate the purchase of such
                           Shares within 60 days of the date of its written
                           notice to you. The purchase price for any Shares
                           repurchased shall be the higher of the fair market
                           value of the Shares on the date of purchase or the
                           aggregate Exercise Price for such Shares and shall be
                           paid in cash. The Company's right of repurchase shall
                           terminate in the event that Stock is listed on an
                           established stock exchange or is quoted regularly on
                           the Nasdaq National Market. The fair market value
                           shall be determined by the Board of Directors in its
                           sole discretion.

                                      -20-
<PAGE>

TRANSFER OF OPTION                  Prior to your death, only you may exercise
                           this Option. You cannot transfer or assign this
                           Option. For instance, you may not sell this Option or
                           use it as security for a loan. If you attempt to do
                           any of these things, this Option will immediately
                           become invalid. You may, however, dispose of this
                           Option in your will.

                                    Regardless of any marital property
                           settlement agreement, the Company is not obligated to
                           honor a Notice of Exercise from your spouse or former
                           spouse, nor is the Company obligated to recognize
                           such individual's interest in your Option in any
                           other way.

RETENTION RIGHTS                    This Agreement does not give you the right
                           to be retained by the Company in any capacity. The
                           Company reserves the right to terminate your Service
                           at any time and for any reason.

SHAREHOLDER RIGHTS                  Neither you, nor your estate or heirs, have
                           any rights as a shareholder of the Company until a
                           certificate for the Shares acquired upon exercise of
                           this Option has been issued. No adjustments are made
                           for dividends or other rights if the applicable
                           record date occurs before your stock certificate is
                           issued, except as described in the Plan.

ADJUSTMENTS                         In the event of a stock split, a stock
                           dividend or a similar change in the Company's Stock,
                           the number of Shares covered by this Option and the
                           Exercise Price per share may be adjusted pursuant to
                           the Plan. Your Option shall be subject to the terms
                           of the agreement of merger, liquidation or
                           reorganization in the event the Company is subject to
                           such corporate activity.

LEGENDS                             All certificates representing the Shares
                           issued upon exercise of this Option shall, where
                           applicable, have endorsed thereon the following
                           legends:

                                    "THE SECURITIES REPRESENTED BY THIS
                           CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
                           TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET
                           FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
                           REGISTERED HOLDER, OR SUCH HOLDER'S PREDECESSOR IN
                           INTEREST. SUCH AGREEMENT IMPOSES CERTAIN TRANSFER
                           RESTRICTIONS AND GRANTS CERTAIN REPURCHASE RIGHTS TO
                           THE COMPANY (OR ITS ASSIGNS) UPON THE SALE OF THE

                                      -21-
<PAGE>

                           SHARES OR UPON TERMINATION OF SERVICE WITH THE
                           COMPANY. A COPY OF SUCH AGREEMENT IS ON FILE AT THE
                           PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED
                           UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY
                           BY THE HOLDER OF SHARES REPRESENTED BY THIS
                           CERTIFICATE.

                                    THE SECURITIES REPRESENTED BY THIS
                           CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
                           SECURITIES ACT OF 1933, OR THE SECURITIES LAWS OF ANY
                           STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED
                           AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF
                           FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY
                           IS PROVIDED AN OPINION OF COUNSEL, SATISFACTORY TO
                           THE COMPANY AND ITS COUNSEL, THAT REGISTRATION AND
                           QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS
                           IS NOT REQUIRED."

APPLICABLE LAW                      This Agreement will be interpreted and
                           enforced under the laws of the State of California
                           (without regard to their choice of law provisions).

THE PLAN AND OTHER                  The text of the Plan is incorporated in this
AGREEMENTS                 Agreement by reference. Certain capitalized terms
                           used in this Agreement are defined in the Plan.

                                    This Agreement, including its attachments,
                           and the Plan constitute the entire understanding
                           between you and the Company regarding this Option.
                           Any prior agreements, commitments or negotiations
                           concerning this Option are superseded.

         BY SIGNING THE COVER SHEET OF THIS AGREEMENT, YOU AGREE TO ALL OF THE
TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. YOU ALSO ACKNOWLEDGE THAT
YOU HAVE READ SECTION 11, "PURCHASER'S INVESTMENT REPRESENTATIONS" OF ATTACHMENT
A AND THAT YOU CAN AND HEREBY DO MAKE THE SAME REPRESENTATIONS WITH RESPECT TO
THE GRANT OF THIS OPTION.

                                      -22-
<PAGE>

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE
OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT
PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND
QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

                                   LMKI, INC.
                   AMENDED AND RESTATED 1999 STOCK OPTION PLAN

                       NONSTATUTORY STOCK OPTION AGREEMENT

         LMKI, Inc. (the "Company"), hereby grants an Option to purchase shares
of its common stock ("Shares") to the Optionee named below. The terms and
conditions of the Option are set forth in this cover sheet, in the attachment
and in the Company's Amended and Restated 1999 Stock Option Plan (the "Plan").

         Date of Grant:
                        ------------

         Name of Optionee:
                           --------------------------------------------

         Optionee's Social Security Number:
                                            ---------------------------

         Number of Shares Covered by Option:
                                             --------

         Exercise Price per Share:  $
                                     ----------------

         Vesting Start Date:
                             -------

___ Check here if Optionee is a 10% owner (so that exercise price must be 110%
of fair market value and term will not exceed 5 years).

         BY SIGNING THIS COVER SHEET, YOU AGREE TO ALL OF THE TERMS AND
CONDITIONS DESCRIBED IN THE ATTACHED AGREEMENT AND IN THE PLAN, A COPY OF WHICH
IS ALSO ATTACHED.

         Optionee:
                  -----------------------------------------------------
                                (Signature)

         Company:
                  -----------------------------------------------------
                                (Signature)

                  Title:
                         ----------------------------------------------

                                      -1-
<PAGE>

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE
OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT
PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND
QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

                                   LMKI, INC.
                   AMENDED AND RESTATED 1999 STOCK OPTION PLAN

                       NONSTATUTORY STOCK OPTION AGREEMENT

NONSTATUTORY STOCK OPTION           This Option is not intended to be an
                           incentive stock option under section 422 of the
                           Internal Revenue Code and will be interpreted
                           accordingly.

VESTING                             No Shares will vest until you have performed
                           _______ (____) months of Service from the
                           commencement of your employment with the Company.
                           Your Option shall vest as to _______ of the Shares on
                           the date _______ (____) months from the Vesting Start
                           Date as shown on the cover sheet. Thereafter, Shares
                           shall vest at the rate of ________ of the Shares at
                           the end of each full month thereafter. After you have
                           completed ________ (____) months of Service, the
                           number of Shares which vest under this Option at the
                           Exercise Price shall be equal to the product of the
                           number of full months of your continuous employment
                           with the Company ("Service") (including any approved
                           leaves of absence) from the Vesting Start Date times
                           the number of Shares covered by this Option times
                           ________. The resulting number of Shares will be
                           rounded to the nearest whole number. No additional
                           Shares will vest after your Service has terminated
                           for any reason.

                                    You should note that you may exercise the
                           Option prior to vesting. In that case, the Company
                           has a right to repurchase the unvested shares at the
                           original exercise price if you terminate employment
                           before vesting in all shares you purchased. Also, if
                           you exercise before vesting, you should consider
                           making an 83(b) election. Please see the attached Tax
                           Summary. THE 83(b) ELECTION MUST BE FILED WITHIN 30
                           DAYS OF THE DATE YOU EXERCISE.

TERM                                Your Option will expire in any event at the
                           close of business at Company headquarters on the day
                           before the tenth anniversary (fifth anniversary for a
                           10% owner) of the Date of Grant, as shown on the
                           cover sheet. (It will expire earlier if your Service
                           terminates, as described below.)

                                      -2-
<PAGE>

REGULAR TERMINATION                 If your Service terminates for any reason
                           except death, Disability, or for "Cause" your Option
                           will expire at the close of business at Company
                           headquarters on the 30th day after your termination
                           date. During such 30-day period, you may exercise
                           that portion of your Option that was vested on your
                           termination date.

DEATH                               If you die while in Service with the
                           Company, your Option will expire at the close of
                           business at Company headquarters on the date six
                           months after the date of death. During that six-month
                           period, your estate or heirs may exercise that
                           portion of your Option that was vested on your date
                           of death.

DISABILITY                          If your Service terminates because of your
                           Disability, your Option will expire at the close of
                           business at Company headquarters on the date six
                           months after your termination date. During that
                           six-month period, you may exercise that portion of
                           your Option that was vested on your date of
                           Disability.

                                    "Disability" means that you are unable to
                           engage in any substantial gainful activity by reason
                           of any medically determinable physical or mental
                           impairment.

LEAVES OF ABSENCE                   For purposes of this Option, your Service
                           does not terminate when you go on a BONA FIDE leave
                           of absence that was approved by the Company in
                           writing, if the terms of the leave provide for
                           continued service crediting, or when continued
                           service crediting is required by applicable law.
                           However, your Service will be treated as terminating
                           30 days after you went on leave, unless your right to
                           return to work is guaranteed by law or by a contract.
                           Your service terminates in any event when the
                           approved leave ends unless you immediately return to
                           Service. The Company determines which leaves count
                           for this purpose, and when your Service terminates
                           for all purposes under the Plan. The Company also
                           determines the extent to which you may exercise the
                           vested portion of your Option during a leave of
                           absence.

NOTICE OF EXERCISE                  When you wish to exercise this Option, you
                           must execute EXHIBIT A (and if exercise is prior to
                           vesting you must also execute EXHIBITS B AND D). Your
                           Exercise will be effective when it is received by the
                           Company. If someone else wants to exercise this
                           Option after your death, that person must prove to
                           the Company's satisfaction that he or she is entitled
                           to do so.

                                      -3-
<PAGE>

FORM OF PAYMENT                     When you submit EXHIBIT A, you must include
                           payment of the Exercise Price for the Shares you are
                           purchasing. Payment may be made in one (or a
                           combination) of the following forms at the discretion
                           of the committee:

                           o        Your personal check, a cashier's check or a
                                    money order.

                           o        Shares which you have owned for six months
                                    and which are surrendered to the Company.
                                    The value of the Shares, determined as of
                                    the effective date of the Option exercise,
                                    will be applied to the Exercise Price.

                           o        To the extent that a public market for the
                                    Shares exists as determined by the Company,
                                    by delivery (on a form prescribed by the
                                    Committee) of an irrevocable direction to a
                                    securities broker to sell Shares and to
                                    deliver all or part of the sale proceeds to
                                    the Company in payment of the aggregate
                                    Exercise Price.

                           o        Any other form of legal consideration
                                    approved by the Committee.

WITHHOLDING TAXES                   You will not be allowed to exercise this
                           Option unless you make acceptable arrangements to pay
                           any withholding or other taxes that may be due as a
                           result of the Option exercise or the sale of Shares
                           acquired upon exercise of this Option.

RESTRICTIONS ON RESALE              By signing this Agreement, you agree not to
                           exercise this Option or sell any Shares acquired upon
                           exercise of this Option at a time when applicable
                           laws, regulations or Company or underwriter trading
                           policies prohibit exercise or sale. In particular,
                           the Company shall have the right to designate one or
                           more periods of time, each of which shall not exceed
                           180 days in length, during which this Option shall
                           not be exercisable if the Company determines (in its
                           sole discretion) that such limitation on exercise
                           could in any way facilitate a lessening of any
                           restriction on transfer pursuant to the Securities
                           Act or any state securities laws with respect to any
                           issuance of securities by the Company, facilitate the
                           registration or qualification of any securities by
                           the Company under the Securities Act or any state
                           securities laws, or facilitate the perfection of any
                           exemption from the registration or qualification
                           requirements of the Securities Act or any applicable
                           state securities laws for the issuance or transfer of
                           any securities. Such limitation on exercise shall not
                           alter the vesting schedule set forth in this
                           Agreement other than to limit the periods during
                           which this Option shall be exercisable.

                                      -4-
<PAGE>

                           Furthermore, in respect of any underwritten public
                           offering by the Company, you agree that you will not
                           sell or otherwise transfer or dispose of any Shares
                           covered by this Option during a reasonable and
                           customary period of time as agreed to by the Company
                           and the underwriters, not to exceed the greater of
                           (a) 180 days following the effective date of the
                           registration statement of the Company filed under the
                           Securities Act in respect of such offering and (b)
                           such other period of time as agreed to by holders of
                           a majority of the then outstanding Shares. By signing
                           this Agreement you agree to execute and deliver such
                           other agreements as may be reasonably requested by
                           the Company or the underwriter which are consistent
                           with the foregoing or which are necessary to give
                           further effect thereto. The Company may impose
                           stop-transfer instructions with respect to the Shares
                           subject to the foregoing restriction until the end of
                           such period.

                           If the sale of Shares under the Plan is not
                           registered under the Securities Act of 1933, as
                           amended (the "Securities Act"), but an exemption is
                           available which requires an investment or other
                           representation, you shall represent and agree at the
                           time of exercise that the Shares being acquired upon
                           exercise of this Option are being acquired for
                           investment, and not with a view to the sale or
                           distribution thereof, and shall make such other
                           representations as are deemed necessary or
                           appropriate by the Company and its counsel.

THE COMPANY'S RIGHT OF              In the event that you propose to sell,
FIRST REFUSAL              pledge or otherwise transfer to a third party any
                           Shares acquired under this Agreement, or any interest
                           in such Shares, the Company shall have the "Right of
                           First Refusal" with respect to all (and not less than
                           all) of such Shares. If you desire to transfer Shares
                           acquired under this Agreement, you must give a
                           written "Transfer Notice" to the Company describing
                           fully the proposed transfer, including the number of
                           Shares proposed to be transferred, the proposed
                           transfer price and the name and address of the
                           proposed transferee. The Transfer Notice shall be
                           signed both by you and by the proposed transferee and
                           must constitute a binding commitment of both parties
                           to the transfer of the Shares.

                                    The Company and its assignees shall have the
                           right to purchase all, and not less than all, of the
                           Shares on the terms described in the Transfer Notice
                           (subject, however, to any change in such terms
                           permitted in the next paragraph) by delivery of a
                           notice of exercise of the Right of First Refusal
                           within 30 days after the date when the Transfer
                           Notice was received by the Company.

                                      -5-
<PAGE>

                                    The Company's rights under this Subsection
                           shall be freely assignable, in whole or in part.

                                    If the Company fails to exercise its Right
                           of First Refusal within 30 days after the date when
                           it received the Transfer Notice, you may, not later
                           than 60 days following receipt of the Transfer Notice
                           by the Company, conclude a transfer of the Shares
                           subject to the Transfer Notice on the terms and
                           conditions described in the Transfer Notice. Any
                           proposed transfer on terms and conditions different
                           from those described in the Transfer Notice, as well
                           as any subsequent proposed transfer by you, shall
                           again be subject to the Right of First Refusal and
                           shall require compliance with the procedure described
                           in the paragraph above. If the Company exercises its
                           Right of First Refusal, you and the Company (or its
                           assignees) shall consummate the sale of the Shares on
                           the terms set forth in the Transfer Notice.

                                    The Company's Right of First Refusal shall
                           terminate upon the Company's initial public offering.

                                    The Company's Right of First Refusal shall
                           inure to the benefit of its successors and assigns
                           and shall be binding upon any transferee of the
                           Shares.

RIGHT OF REPURCHASE                 Following termination of your Service for
                           any reason, the Company shall have the right to
                           purchase all of those vested Shares that you have or
                           will acquire under this Option (unvested Shares which
                           have been exercised are subject to a Repurchase
                           Option set forth in EXHIBIT A). If the Company fails
                           to provide you with written notice of its intention
                           to purchase such Shares before or within 30 days of
                           the date the Company receives written notice from you
                           of your termination of Service, the Company's right
                           to purchase such Shares shall terminate. If the
                           Company exercises its right to purchase such Shares,
                           the Company will consummate the purchase of such
                           Shares within 60 days of the date of its written
                           notice to you. The purchase price for any Shares
                           repurchased shall be the higher of the fair market
                           value of the Shares on the date of purchase or the
                           aggregate Exercise Price for such Shares and shall be
                           paid in cash. The Company's right of repurchase shall
                           terminate in the event that Stock is listed on an
                           established stock exchange or is quoted regularly on
                           the Nasdaq National Market. The fair market value
                           shall be determined by the Board of Directors in its
                           sole discretion.

                                      -6-
<PAGE>

TRANSFER OF OPTION                  Prior to your death, only you may exercise
                           this Option. You cannot transfer or assign this
                           Option. For instance, you may not sell this Option or
                           use it as security for a loan. If you attempt to do
                           any of these things, this Option will immediately
                           become invalid. You may, however, dispose of this
                           Option in your will.

                                    Regardless of any marital property
                           settlement agreement, the Company is not obligated to
                           honor a Notice of Exercise from your spouse or former
                           spouse, nor is the Company obligated to recognize
                           such individual's interest in your Option in any
                           other way.

RETENTION RIGHTS                    This Agreement does not give you the right
                           to be retained by the Company in any capacity. The
                           Company reserves the right to terminate your Service
                           at any time and for any reason.

SHAREHOLDER RIGHTS                  Neither you, nor your estate or heirs, have
                           any rights as a shareholder of the Company until a
                           certificate for the Shares acquired upon exercise of
                           this Option has been issued. No adjustments are made
                           for dividends or other rights if the applicable
                           record date occurs before your stock certificate is
                           issued, except as described in the Plan.

ADJUSTMENTS                         In the event of a stock split, a stock
                           dividend or a similar change in the Company Stock,
                           the number of Shares covered by this Option and the
                           Exercise Price per share may be adjusted pursuant to
                           the Plan. Your Option shall be subject to the terms
                           of the agreement of merger, liquidation or
                           reorganization in the event the Company is subject to
                           such corporate activity.

                                    All certificates representing the Shares
                           issued upon exercise of this Option shall, where
                           applicable, have endorsed thereon the following
                           legends:

                                    "THE SECURITIES REPRESENTED BY THIS
                           CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
                           TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET
                           FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
                           REGISTERED HOLDER, OR SUCH HOLDER'S PREDECESSOR IN
                           INTEREST. SUCH AGREEMENT IMPOSES CERTAIN TRANSFER
                           RESTRICTIONS AND GRANTS CERTAIN REPURCHASE RIGHTS TO
                           THE COMPANY (OR ITS ASSIGNS) UPON THE SALE OF THE
                           SHARES OR UPON TERMINATION OF SERVICE WITH THE
                           COMPANY. A COPY OF SUCH AGREEMENT IS ON FILE AT THE
                           PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED
                           UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY
                           BY THE HOLDER OF SHARES REPRESENTED BY THIS
                           CERTIFICATE.

                                      -7-
<PAGE>

                                    THE SECURITIES REPRESENTED BY THIS
                           CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
                           SECURITIES ACT OF 1933, OR THE SECURITIES LAWS OF ANY
                           STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED
                           AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF
                           FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY
                           IS PROVIDED AN OPINION OF COUNSEL, SATISFACTORY TO
                           THE COMPANY AND ITS COUNSEL, THAT REGISTRATION AND
                           QUALIFICATION UNDER FEDERAL AND STATE LEGENDS
                           SECURITIES LAWS IS NOT REQUIRED."

APPLICABLE LAW                      This Agreement will be interpreted and
                           enforced under the laws of the State of California
                           (without regard to their choice of law provisions).
                           The text of the Plan is incorporated in this
                           Agreement by reference. Certain capitalized terms
                           used in this Agreement are defined in the Plan.

THE PLAN AND OTHER                  This Agreement and the Plan constitute the
AGREEMENTS                 entire understanding between you and the Company
                           regarding this Option. Any prior agreements,
                           commitments or negotiations concerning this Option
                           are superseded.

                  BY SIGNING THE COVER SHEET OF THIS AGREEMENT, YOU AGREE TO ALL
         OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. YOU ALSO
         ACKNOWLEDGE THAT YOU HAVE READ SECTION 11, "PURCHASER'S INVESTMENT
         REPRESENTATIONS" OF ATTACHMENT A AND THAT YOU CAN AND HEREBY DO MAKE
         THE SAME REPRESENTATIONS WITH RESPECT TO THE GRANT OF THIS OPTION.

                                      -8-

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