EXHIBIT 10.1
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                          FORM OF EMPLOYMENT AGREEMENT


         THIS AGREEMENT, is entered into this 22nd day of June 1998, ("Effective
Date") by and  between  Ridgewood  Savings  Bank of New Jersey,  Ridgewood,  New
Jersey (the "Savings Bank") and Susan E. Naruk (the "Executive").

                                   WITNESSETH

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

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

         WHEREAS,  in order to induce the  Executive  to remain in the employ of
the Savings Bank and in consideration  of the Executive's  agreeing to remain in
the employ of the Savings  Bank,  the parties  desire to specify the  continuing
employment relationship between the Savings 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 Savings Bank hereby  employs the  Executive in the
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capacity of President and Chief Executive Officer.  The Executive hereby accepts
said employment and agrees to render such administrative and management services
to the Savings Bank and to any to-be-formed parent holding company ("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
Savings Bank and Parent. The Executive's other duties shall be such as the Board
of Directors for the Savings Bank (the "Board of Directors" or "Board") may from
time to time  reasonably  direct,  including  normal duties as an officer of the
Savings Bank.

         2. Term of Employment.  The term of employment of Executive  under this
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Agreement  shall be for the period  commencing on the Effective  Date and ending
thirty-six (36) months thereafter  ("Term").  Additionally,  on, or before, each
annual  anniversary  date from the Effective Date, the Term of employment  under
this Agreement shall be extended for up to an additional  period beyond the then
effective  expiration date upon a  determination  and resolution of the Board of
Directors  that the  performance of the Executive has met the  requirements  and
standards of the Board,  and that the Term of such Agreement  shall be extended.
References  herein to the Term of this Agreement shall refer both to the initial
term and successive terms.

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         3.    Compensation, Benefits and Expenses.
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               (a) Base Salary.  The Savings Bank shall  compensate  and pay the
Executive during the Term of this Agreement a minimum base salary at the rate of
$_______ 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 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 Savings 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
Savings 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 Savings Bank, to the extent  commensurate with her then duties
and responsibilities, as fixed by the Board of Directors of the Savings 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  Savings  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.
Additionally,  Executive's  dependent family shall be eligible to participate in
medical and dental  insurance plans sponsored by the Savings Bank or Parent with
the cost of such premiums paid by the Savings Bank.

               (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
Savings  Bank.  The  Executive  shall not be entitled to receive any  additional
compensation from the Savings Bank for failure to take a vacation or sick leave,
nor shall she 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 Savings Bank shall  reimburse the Executive or
otherwise  provide  for or pay  for  all  reasonable  expenses  incurred  by the
Executive in furtherance  of, or in

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connection with the business of the Savings 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 Savings Bank. If such expenses
are  paid in the  first  instance  by the  Executive,  the  Savings  Bank  shall
reimburse the Executive therefor.

               (g)  Changes in  Benefits.  The  Savings  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 program applicable
to all  executive  officers  of the  Savings  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 Savings  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.
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               (a) The Executive shall devote her full time and attention to the
performance  of her  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
Savings 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 Savings Bank or Parent,
or, solely as a passive or minority investor, in any business.

               (c)  Executive  hereby  agrees  that  for a  period  of one  year
following Executive's  voluntary  termination of employment,  absent a Change in
Control  of the Bank,  Employee  shall  not  engage  in  providing  professional
services  or  enter  into  employment  as  an  employee,  director,  consultant,
representative,  or similar  relationship to any financial  services  enterprise
(including  but not  limited to a savings  and loan  association,  bank,  credit
union,  or insurance  company)  whereby the Executive  will have a work location
within  seven  miles  of any  office  of the  Bank  existing  as of the  date of
termination of employment of the Executive. This limitation on future activities
shall  not  affect  the  payment  of  previously   vested   benefits  under  the
compensation  and  benefit  plans of the  Bank or for  compensation  payable  in
accordance with Section 9 of the Agreement.

         5. Standards.  During the term of this  Agreement,  the Executive shall
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perform her 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.


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         6. Termination and Termination Pay.  The Executive's   employment under
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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 third calendar month
following the date of the Executive's death.

               (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 Savings Bank shall be obligated to continue to
pay the Executive the salary provided pursuant to 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 twelve  months,  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
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contrary,  any payments  made to the  Executive  pursuant to the  Agreement,  or
otherwise,  shall  be  subject  to  and  conditioned  upon  compliance  with  12
USCss.1828(k) and any regulations promulgated thereunder.

         8. Disability.  If the Executive shall become disabled or incapacitated
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to the extent that she is unable to perform her 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: 100% of such compensation and benefits for a period of 6 months, but
not exceeding the remaining  term of the  Agreement,  and 50%  thereafter for an
additional six month

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period,  not  exceeding the remaing  Term.  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 Savings Bank
employees.  Thereafter, Executive shall be eligible to receive benefits provided
by the Savings Bank under the  provisions  of disability  insurance  coverage in
effect  for  Savings  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 her  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.
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               (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 Savings 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 2.999  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  of  service  or in
periodic  payments  over  the  next  36  months  or 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.  Further,  such Employee and  dependents  shall  continue to be
eligible to  participate  in the life  insurance  and  medical/dental  insurance
reimbursement program maintained by the Savings Bank or its successor entity for
a period of not less than 36 months  following  termination  of  employment  and
continue to have such costs for  enrollment  and benefits  coverages paid by the
Savings Bank or Parent. 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 Savings 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 control of voting proxies  whether  related to  stockholders or
mutual  members by any person,  other than the Board of Directors of the Savings
Bank, to direct more than 25% of the outstanding  votes of the Savings Bank, the
control of the election of a majority of the Savings  Bank's  directors,  or the
exercise  of a  controlling  influence  over the  management  or policies of the
Savings Bank by any person or by persons acting as a group within the meaning of
Section  13(d) of the  Exchange  Act,  (ii) an event  whereby the FDIC,  the New
Jersey Department of Banking  ("Department") or any other department,  agency or
quasi-agency of the federal government cause or bring about, without the consent
of the Savings Bank, a change in the corporate  structure or organization of the
Savings  Bank;  (iii) an event  whereby the FDIC,  the  Department  or any other
agency or quasi-agency of the federal  government cause or bring about,  without
the  consent of the Savings  Bank,  a taxation or  involuntary  distribution  of
retained  earnings  or  proceeds  from the  sale of  securities  to

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depositors,  borrowers,  any  government  agency  or  organization  or  civic or
charitable organization;  or (iv) a merger or other business combination between
the Savings Bank and another  corporate  entity  whereby the Savings Bank is not
the  surviving  entity.  In the event that the Savings Bank shall convert in the
future from mutual-to-stock  form, the term "Change in Control" shall also 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 Department,  the FDIC, the Federal Reserve Board 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 her employment during the term of
this Agreement  following a Change in Control of the Savings Bank or Parent,  or
within  twenty-four  months following such Change in Control,  and Executive (or
the Executive's estate in the event of death after a Change in Control but prior
to payment)  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
her personal  residence or perform her 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 Savings Bank,
Executive  would be  required  to report to a person or  persons  other than the
Board of Directors of the Savings Bank; (iii) if the Savings 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 her
position as referenced at Section 1, herein; (v) if Executive's responsibilities
or authority have in any way been materially  diminished or reduced;  or (vi) if
Executive would not be reelected to the Board of Directors of the Savings Bank.

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


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        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 Savings 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 Savings Bank
or Parent.

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

        12. Amendment;  Waiver. No provisions of this Agreement may be modified,
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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 Savings 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
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performance of this Agreement shall be governed by the laws of the United States
where  applicable  and  otherwise  by the  substantive  laws of the State of New
Jersey.

        14. Nature of  Obligations.  Nothing  contained  herein shall create  or
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require  the  Savings  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 Savings Bank hereunder,  such right shall be
no greater than the right of any unsecured general creditor of the Savings Bank.

        15. Headings.  The  section  headings  contained in this  Agreement  are
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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
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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
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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 Savings 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 settlement of the dispute to be
approved  by the  Board of the  Savings  Bank may  include a  provision  for the
reimbursement  by the Savings Bank to the Executive for all reasonable costs and
expenses,  including  reasonable  attorneys'  fees,  arising from such  dispute,

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proceedings  or  actions,  or the Board of the  Savings  Bank or the  Parent may
authorize such  reimbursement  of such reasonable costs and expenses by separate
action upon a written action and determination of the Board following settlement
of the  dispute.  Such  reimbursement  shall be paid  within  ten  (10)  days of
Executive furnishing to the Savings 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.

        18. Confidential Information. The Executive acknowledges that during her
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employment 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 her
own benefit, or the benefit of any other person or entity, any such Confidential
Information,  unless or until the  Savings  Bank or the 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 herself (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
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modifications  thereof as agreed to in writing by the parties,  shall constitute
the entire agreement between the parties hereto.