EMPLOYMENT AGREEMENT


         THIS  AGREEMENT,   is  entered  into  this  23rd  day  of  April  1998,
("Effective Date") by and between Pulse Savings Bank (the "Bank") and Jeffrey M.
Gostkowski (the "Executive").

                                   WITNESSETH

         WHEREAS,  the Executive has  heretofore  been employed by the Bank as a
Vice President and is experienced in all phases of the business of the Bank; and

         WHEREAS,  the Bank desires to be ensured of the  Executive's  continued
active participation in the business of the Bank; and

         WHEREAS,  in order to induce the  Executive  to remain in the employ of
the Bank and in  consideration  of the  Executive's  agreeing  to  remain in the
employ of the Bank,  the  parties  desire to specify the  continuing  employment
relationship between the Bank and the Executive;

         NOW  THEREFORE,  in  consideration  of  the  premises  and  the  mutual
agreements herein contained, the parties hereby agree as follows:

         1. Employment. The Bank hereby employs the Executive in the capacity as
a Vice  President.  The Executive  hereby accepts said  employment and agrees to
render  such  administrative  and  management  services  to the Bank  and  Pulse
Bancorp,  Inc.  ("Parent")  as are  currently  rendered  and as are  customarily
performed by persons  situated in a similar  executive  capacity.  The Executive
shall promote the business of the Bank and Parent.  The Executive's other duties
shall be such as the  President  of the Bank or the Board of  Directors  for the
Bank (the  "Board of  Directors"  or "Board")  may from time to time  reasonably
direct, including normal duties as an officer of the Bank.

         2. Term of Employment.  The term of employment of Executive  under this
Agreement  shall be for the period  commencing on the Effective  Date and ending
thirty-six  (36) months  thereafter  ("Term").  Such Agreement shall be extended
annually on the  anniversary  date of the Effective  Date for an additional  one
year period  ("Automatic  Extension"),  absent delivery of written notice by the
Board to the Executive not less than 60 days prior to the date of such Automatic
Extension that the Board does not intend that such  Agreement  shall be extended
and the reason for such Board action.

         3.    Compensation, Benefits and Expenses.

               (a) Base Salary.  The Bank shall compensate and pay the Executive
during  the  Term of  this  Agreement  a  minimum  base  salary  at the  rate of
$87,000.00 per annum ("Base  Salary"),  payable in cash not less frequently than
monthly;  provided,  that the rate of such salary shall be reviewed by the Board
of Directors not less often than annually, and the Executive shall


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be entitled  to receive  increases  at such  percentages  or in such  amounts as
determined  by the Board of  Directors.  The base  salary  may not be  decreased
without the Executive's express written consent.

               (b)  Discretionary  Bonus.  The  Executive  shall be  entitled to
participate in an equitable manner with all other senior management employees of
the Bank in  discretionary  bonuses that may be  authorized  and declared by the
Board of Directors to its senior  management  executives  from time to time.  No
other  compensation  provided for in this Agreement shall be deemed a substitute
for the Executive's right to participate in such discretionary  bonuses when and
as declared by the Board.

               (c)  Participation in Benefit and Retirement Plans. The Executive
shall be entitled to  participate in and receive the benefits of any plan of the
Bank which may be or may become  applicable  to senior  management  relating  to
pension or other  retirement  benefit  plans,  profit-sharing,  stock options or
incentive plans, or other plans,  benefits and privileges given to employees and
executives  of the Bank,  to the extent  commensurate  with his then  duties and
responsibilities, as fixed by the Board of Directors of the Bank.

               (d)  Participation in Medical Plans and Insurance  Policies.  The
Executive  shall be entitled to  participate  in and receive the benefits of any
plan or  policy  of the Bank  which may be or may  become  applicable  to senior
management relating to life insurance, short and long term disability,  medical,
dental, eye-care, prescription drugs or medical reimbursement plans.

               (e) Vacations and Sick Leave.  The Executive shall be entitled to
paid annual vacation leave in accordance  with the policies as established  from
time to time by the  Board of  Directors,  which  shall in no event be less than
four weeks per annum.  The  Executive  shall also be  entitled to an annual sick
leave benefit as established by the Board for senior management employees of the
Bank. The Executive shall not be entitled to receive any additional compensation
from the Bank for failure to take a vacation or sick leave, nor shall he be able
to accumulate unused vacation or sick leave from one year to the next, except to
the extent authorized by the Board of Directors.

               (f) Expenses. The Bank shall reimburse the Executive or otherwise
provide for or pay for all  reasonable  expenses  incurred by the  Executive  in
furtherance of, or in connection with the business of the Bank,  including,  but
not by way of limitation,  automobile and traveling expenses, and all reasonable
entertainment  expenses,  subject  to such  reasonable  documentation  and other
limitations as may be established by the Board of Directors of the Bank. If such
expenses  are paid in the  first  instance  by the  Executive,  the  Bank  shall
reimburse the Executive therefor.

               (g) Changes in  Benefits.  The Bank shall not make any changes in
such plans, benefits or privileges previously described in Section 3(c), (d) and
(e) which would adversely affect the Executive's rights or benefits  thereunder,
unless such change occurs pursuant to a

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program  applicable to all executive officers of the Bank and does not result in
a  proportionately  greater adverse change in the rights of, or benefits to, the
Executive as compared with any other executive officer of the Bank. Nothing paid
to Executive under any plan or arrangement presently in effect or made available
in the future  shall be deemed to be in lieu of the salary  payable to Executive
pursuant to Section 3(a) hereof.

         4.    Loyalty; Noncompetition.

               (a) The Executive shall devote his full time and attention to the
performance  of his  employment  under  this  Agreement.  During the term of the
Executive's  employment under this Agreement,  the Executive shall not engage in
any business or activity  contrary to the  business  affairs or interests of the
Bank or Parent.

               (b)  Nothing  contained  in this  Section  4 shall be  deemed  to
prevent or limit the right of Executive to invest in the capital  stock or other
securities  of any  business  dissimilar  from that of the Bank or  Parent,  or,
solely as a passive or minority investor, in any business.

         5. Standards.  During the term of this  Agreement,  the Executive shall
perform his duties in  accordance  with such  reasonable  standards  expected of
executives with comparable  positions in comparable  organizations and as may be
established from time to time by the Board of Directors.

         6.  Termination and Termination  Pay. The Executive's  employment under
this Agreement shall be terminated upon any of the following occurrences:

               (a) The death of the Executive during the term of this Agreement,
in  which  event  the  Executive's  estate  shall be  entitled  to  receive  the
compensation  due the  Executive  through the last day of the calendar  month in
which Executive's death shall have occurred.

               (b)  The  Board  of  Directors  may  terminate  the   Executive's
employment at any time, but any termination by the Board of Directors other than
termination  for Just  Cause,  shall  not  prejudice  the  Executive's  right to
compensation or other benefits under the Agreement.  The Executive shall have no
right to receive compensation or other benefits for any period after termination
for Just Cause. The Board may within its sole discretion,  acting in good faith,
terminate  the  Executive  for  Just  Cause  and  shall  notify  such  Executive
accordingly.  Termination for "Just Cause" shall include  termination because of
the Executive's personal dishonesty, incompetence, willful misconduct, breach of
fiduciary duty involving personal profit,  intentional failure to perform stated
duties,  willful  violation of any law, rule or  regulation  (other than traffic
violations or similar  offenses) or final  cease-and-desist  order,  or material
breach of any provision of the Agreement.

               (c) Except as provided pursuant to Section 9 hereof, in the event
Executive's  employment  under  this  Agreement  is  terminated  by the Board of
Directors without Just Cause, the Bank shall be obligated to continue to pay the
Executive the salary provided pursuant to 

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Section 3(a) herein, up to the date of termination of the remaining Term of this
Agreement,  but in no event for a period of less than twenty-four  (24), and the
cost of Executive  obtaining all health,  life,  disability,  and other benefits
which the Executive  would be eligible to participate in through such date based
upon the benefit levels substantially equal to those being provided Executive at
the date of termination of employment.

               (d) The voluntary termination by the Executive during the term of
this  Agreement  with the delivery of no less than 60 days written notice to the
Board of  Directors,  other than  pursuant  to Section  9(b),  in which case the
Executive shall be entitled to receive only the compensation, vested rights, and
all employee benefits up to the date of such termination.

         7.  Regulatory  Exclusions.  Notwithstanding  anything  herein  to  the
contrary,  any payments  made to the  Executive  pursuant to the  Agreement,  or
otherwise,  shall be  subject to and  conditioned  upon  compliance  with 12 USC
ss.1828(k) and any regulations promulgated thereunder.

         8. Disability.  If the Executive shall become disabled or incapacitated
to the extent  that he is unable to perform his duties  hereunder,  by reason of
medically determinable physical or mental impairment,  as determined by a doctor
engaged by the Board of  Directors,  Executive  shall  nevertheless  continue to
receive the compensation and benefits provided under the terms of this Agreement
as follows:  50% of such  compensation and benefits during the remaining term of
the  Agreement.  Such  benefits  noted  herein  shall be reduced by any benefits
otherwise  provided to the Executive  during such period under the provisions of
disability  insurance  coverage  in  effect  for  Bank  employees.   Thereafter,
Executive shall be eligible to receive  benefits  provided by the Bank under the
provisions of disability  insurance coverage in effect for Bank employees.  Upon
returning to active full-time  employment,  the Executive's full compensation as
set forth in this Agreement  shall be reinstated as of the date of  commencement
of such activities. In the event that the Executive returns to active employment
on other than a full-time basis,  then his compensation (as set forth in Section
3(a) of this Agreement) shall be reduced in proportion to the time spent in said
employment, or as shall otherwise be agreed to by the parties.

         9.    Change in Control.

               (a) Notwithstanding any provision herein to the contrary,  in the
event of the involuntary  termination of Executive's  employment during the term
of this  Agreement  following  any Change in  Control of the Bank or Parent,  or
within 24 months  thereafter  of such  Change in  Control,  absent  Just  Cause,
Executive  shall  be paid an  amount  equal to the  product  of 2.99  times  the
Executive's  "base  amount" as defined in  Section  280G(b)(3)  of the  Internal
Revenue  Code of 1986,  as amended  (the  "Code")  and  regulations  promulgated
thereunder.  Said sum shall be paid, at the option of  Executive,  either in one
(1) lump sum  within  thirty  (30) days of such  termination  discounted  to the
present  value of such payment using as the discount rate the interest in effect
on one year U.S.  Treasury  obligations as of the date of payment as reported in
the Wall Street Journal Eastern Edition,  or in periodic  payments over the next
36 months or


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the  remaining  term of this  Agreement  whichever  is less,  as if  Executive's
employment  had not been  terminated,  and such payments shall be in lieu of any
other future payments which the Executive would be otherwise entitled to receive
under  Section  6 of this  Agreement.  Notwithstanding  the  forgoing,  all sums
payable  hereunder shall be reduced in such manner and to such extent so that no
such payments made hereunder when  aggregated with all other payments to be made
to the Executive by the Bank or the Parent shall be deemed an "excess  parachute
payment"  in  accordance  with  Section  280G of the Code and be  subject to the
excise tax provided at Section 4999(a) of the Code. The term "Change in Control"
shall refer to: (i) the sale of all, or a material portion, of the assets of the
Savings Bank or the Parent;  (ii) the merger or  recapitalization of the Savings
Bank or the Parent  whereby the Savings Bank or the Parent is not the  surviving
entity;  (iii) a  change  in  control  of the  Savings  Bank or the  Parent,  as
otherwise  defined  or  determined  by the New Jersey  Department  of Banking or
Office of Thrift  Supervision  (with respect to its  supervision  of Parent as a
unitary  savings and loan holding  company) or  regulations  promulgated by such
agencies;  or (iv) the  acquisition,  directly or indirectly,  of the beneficial
ownership (within the meaning of that term as it is used in Section 13(d) of the
Securities  Exchange  Act of 1934  and the  rules  and  regulations  promulgated
thereunder)  of  twenty-five  percent  (25%) or more of the  outstanding  voting
securities  of the Savings  Bank or the Parent by any person,  trust,  entity or
group.  The term "person"  means an individual  other than the  Executive,  or a
corporation,  partnership,  trust, association,  joint venture, pool, syndicate,
sole proprietorship, unincorporated organization or any other form of entity not
specifically listed herein.

               (b)  Notwithstanding any other provision of this Agreement to the
contrary,  Executive may voluntarily terminate his employment during the term of
this  Agreement  following a Change in Control of the Bank or Parent,  or within
twenty-four  months  following  such Change in  Contriol,  and  Executive  shall
thereupon  be entitled to receive the payment  described in Section 9(a) of this
Agreement,  upon the occurrence,  or within 120 days  thereafter,  of any of the
following  events,  which have not been consented to in advance by the Executive
in writing: (i) if Executive would be required to move his personal residence or
perform his principal  executive functions more than thirty-five (35) miles from
the Executive's  primary office as of the signing of this Agreement;  (ii) if in
the organizational  structure of the Bank, Executive would be required to report
to a person or persons other than the President or the Board of Directors of the
Bank; (iii) if the Bank should fail to maintain Executive's base compensation in
effect  as of the  date of the  Change  in  Control  and the  existing  employee
benefits plans,  including material fringe benefit,  stock option and retirement
plans;  (iv) if Executive  would be assigned duties and  responsibilities  other
than those  normally  associated  with his position as  referenced at Section 1,
herein; or (v) if Executive's responsibilities or authority have in any way been
materially diminished or reduced.

        10. Withholding.  All payments required to be made by the Bank hereunder
to the Executive  shall be subject to the  withholding of such amounts,  if any,
relating  to tax  and  other  payroll  deductions  as the  Bank  may  reasonably
determine should be withheld pursuant to any applicable law or regulation.

        11.    Successors and Assigns.


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               (a) This  Agreement  shall inure to the benefit of and be binding
upon any corporate or other successor of the Bank or Parent which shall acquire,
directly or indirectly, by merger, consolidation,  purchase or otherwise, all or
substantially all of the assets or stock of the Bank or Parent.

               (b) Since the Bank is  contracting  for the unique  and  personal
skills of the  Executive,  the Executive  shall be precluded  from  assigning or
delegating his rights or duties  hereunder  without first  obtaining the written
consent of the Bank.

        12. Amendment;  Waiver. No provisions of this Agreement may be modified,
waived or discharged unless such waiver,  modification or discharge is agreed to
in  writing,  signed by the  Executive  and such  officer or  officers as may be
specifically  designated  by the Board of  Directors  of the Bank to sign on its
behalf.  No waiver by any  party  hereto at any time of any  breach by any other
party  hereto  of, or  compliance  with,  any  condition  or  provision  of this
Agreement  to be  performed  by such  other  party  shall be  deemed a waiver of
similar or  dissimilar  provisions  or conditions at the same or at any prior or
subsequent time.

        13.  Governing  Law.  The  validity,  interpretation,  construction  and
performance of this Agreement  shall be governed by the laws of the State of New
Jersey,  except to the extent  preempted by the laws of the United  States where
applicable.

        14.  Nature of  Obligations.  Nothing  contained  herein shall create or
require the Bank to create a trust of any kind to fund any benefits which may be
payable  hereunder,  and to the extent  that the  Executive  acquires a right to
receive  benefits from the Bank  hereunder,  such right shall be no greater than
the right of any unsecured general creditor of the Bank.

        15. Headings.  The section headings  contained in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

        16.  Severability.  The  provisions  of this  Agreement  shall be deemed
severable  and the  invalidity  or  unenforceability  of any  provision  of this
Agreement  shall  not  affect  the  validity  or  enforceability  of  the  other
provisions of this Agreement, which shall remain in full force and effect.

               17.  Arbitration.  Any  controversy  or claim  arising  out of or
relating  to  this  Agreement,  or the  breach  thereof,  shall  be  settled  by
arbitration in accordance  with the rules then in effect of the district  office
of the American  Arbitration  Association  ("AAA") nearest to the home office of
the Bank,  and  judgment  upon the award  rendered  may be  entered in any court
having jurisdiction thereof, except to the extent that the parties may otherwise
reach a mutual settlement of such issue.  Further,  the Bank shall reimburse the
Executive for all reasonable costs and expenses, including reasonable attorneys'
fees,  arising  from any such  dispute  or  arbitration  without  regard  to the
ultimate outcome of such dispute, proceeding or action. Such reimbursement shall
be paid  within  ten (10)  days of  Executive  furnishing  to the Bank or Parent
evidence,  which may be in the form, among other things,  of a canceled check or
receipt,  of any costs or  expenses  incurred by  Executive  with regard to such
matter.

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        18. Confidential Information. The Executive acknowledges that during his
or her  employment  he or  she  will  learn  and  have  access  to  confidential
information  regarding  the Savings  Bank and the Parent and its  customers  and
businesses ("Confidential Information").  The Executive agrees and covenants not
to  disclose  or use for his or her own  benefit,  or the  benefit  of any other
person or entity, any such Confidential Information, unless or until the Savings
Bank or tthe  Parent  consents  to such  disclosure  or use or such  information
becomes common  knowledge in the industry or is otherwise  legally in the public
domain. The Executive shall not knowingly disclose or reveal to any unauthorized
person any Confidential Information relating to the Savings Bank, the Parent, or
any  subsidiaries or affiliates,  or to any of the businesses  operated by them,
and the  Executive  confirms  that such  information  constitutes  the exclusive
property of the Savings Bank and the Parent.  The Executive  shall not otherwise
knowingly  act or conduct  himself (a) to the material  detriment of the Savings
Bank or the Parent, or its subsidiaries, or affiliates, or (b) in a manner which
is  inimical or contrary  to the  interests  of the Savings  Bank or the Parent.
Executive  acknowledges  and agrees that the existence of this Agreement and its
terms and conditions constitutes  Confidential  Information of the Savings Bank,
and the Executive  agrees not to disclose the Agreement or its contents  without
the prior written  consent of the Savings Bank.  Notwithstanding  the foregoing,
the Savings Bank reserves the right in its sole discretion to make disclosure of
this  Agreement as it deems  necessary or  appropriate  in  compliance  with its
regulatory  reporting  requirements.  Notwithstanding  anything  herein  to  the
contrary, failure by the Executive to comply with the provisions of this Section
may  result  in the  immediate  termination  of the  Agreement  within  the sole
discretion of the Savings Bank,  disciplinary action against the Executive taken
by the Savings Bank,  including but not limited to the termination of employment
of the Executive for breach of the Agreement and the provisions of this Section,
and other remedies that may be available in law or in equity.

        19. Entire Agreement.  This Agreement together with any understanding or
modifications  thereof as agreed to in writing by the parties,  shall constitute
the entire agreement between the parties hereto.


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