Exhibit 10.3
                              EMPLOYMENT AGREEMENT


         THIS  AGREEMENT is entered into this 17th day of June,  2008, but shall
be effective as of January 1, 2008  ("Effective  Date") by and between  American
Bank of New Jersey (the "Bank") and Eric B. Heyer (the "Executive").

                              W I T N E S S E T H:

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

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

         WHEREAS,  this Agreement is intended to replace the previous employment
agreement between the Executive and the Bank and to comply with the requirements
of Section 409A of the Internal  Revenue Code of 1986,  as amended (the "Code"),
and to reflect such additional changes as the Bank deems appropriate;

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

         1. Employment. The Bank hereby employs the Executive in the capacity of
Senior Vice President and Chief Financial Officer.  The Executive hereby accepts
said employment and agrees to render such administrative and management services
to the Bank and American Bancorp of New Jersey,  Inc. the parent holding company
of  the  Bank  ("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 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  Agreement.  The  term of this  Agreement  shall be for the
period  commencing on the Effective Date and ending December 31, 2008 thereafter
("Term").  Additionally,  on, or before,  each annual  anniversary date from the
Effective  Date, the Term of this Agreement  shall be extended for an additional
year  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.  References  herein to the Term
of this Agreement shall refer both to the initial term and successive terms.

         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 $165,328
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.

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            (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. Any discretionary  bonus shall be paid no later than 2
1/2 months  after the end of the year in which the  Executive  obtains a legally
binding right to the bonus.  If the  discretionary  bonus cannot be paid by that
date,  then it shall be paid on the next following  April 15, or such other date
during the year as  permitted  by Section  409A of the Code and the  regulations
thereunder (Section 409A).

            (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 or its Parent 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 or its Parent,  to the extent  commensurate
with his then duties and responsibilities, as fixed by the Board of Directors of
the Bank or its Parent.

            (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.
Additionally,  Executive's  dependent family shall be eligible to participate in
medical and dental  insurance  plans sponsored by the Bank or Parent with 70% of
the cost of such premiums paid by the 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.  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 or  Parent,
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. Expenses incurred by Executive on behalf
of Parent  shall be paid or  advanced by Parent or  reimbursed  by Parent to the
Bank.

            (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 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

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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; Non-competition.
            -------------------------

            (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 Bank may  terminate the  Executive's  employment at any time
with or without Just Cause within its sole discretion.  This Agreement shall not
be deemed  to give  Executive  any right to be  retained  in the  employment  or
service of the Bank, or to interfere with the right of the Bank to terminate the
employment of the Executive at any time,  but any  termination by the Bank 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 Bank 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 be  defined  as  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 this Agreement.

            (c) Except as provided  pursuant  to Section 9 hereof,  in the event
Executive's  employment  under this  Agreement is terminated by the Bank without
Just Cause during the Term of this Agreement  (including any renewal Term),  the
Bank shall be obligated to continue to pay the Executive: i) the salary provided
pursuant to Section 3(a) herein,  up to the date of termination of the remaining

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Term of this Agreement,  but in no event for a period of less than one year from
such date of termination  of  employment;  and ii) for the same minimum one year
period, the cost of Executive obtaining all health,  life,  disability and other
benefits  which the Executive  would be eligible to  participate  in during such
period of payment,  based upon benefit levels substantially equal to those being
provided  Executive at the date of termination of employment.  The provisions of
this Section 6(c) shall  survive the  expiration of this  Agreement.  No payment
shall be made under this  Section  6(c) unless the  Executive's  termination  of
employment  qualifies as a Separation from Service (as that phrase is defined in
Section 409A taking into account all rules and presumptions  provided for in the
Section 409A regulations).  If the Executive is a Specified Employee (as defined
in Section 409A) at the time of his Separation from Service, then payments under
this Section 6(c) which  constitute  deferred  compensation  under  Section 409A
shall not be paid until the 185th day following the Executive's  Separation from
Service,  or his earlier death (the Delayed  Distribution  Date).  To the extent
permitted by Section  409A,  amounts  payable  under this Section 6(c) which are
considered deferred compensation shall be treated as payable after amounts which
are not considered deferred compensation.

            (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.
            ----------------------

            (a) If the Executive is suspended and/or temporarily prohibited from
participating  in the  conduct of the Bank's  affairs by a notice  served  under
Section  8(e)(3) or (g)(1) of the FDIA (12 U.S.C.  1818(e)(3)  and (g)(1)),  the
Bank's  obligations  under the  Agreement  shall be  suspended as of the date of
service, unless stayed by appropriate proceedings.  If the charges in the notice
are dismissed,  the Bank may, within its discretion (i) pay the Executive all or
part of the compensation  withheld while its contract obligations were suspended
and (ii) reinstate any of its obligations which were suspended.

            (b) If the Executive is removed and/or  permanently  prohibited from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Sections  8(e)(4) or 8(g)(1) of the Federal  Deposit  Insurance Act ("FDIA") (12
U.S.C.  1818(e)(4) and (g)(1)), all obligations of the Bank under this Agreement
shall terminate, as of the effective date of the order, but the vested rights of
the parties shall not be affected.

            (c) If the Bank is in default  (as  defined  in  Section  3(x)(1) of
FDIA) all  obligations  under this Agreement  shall  terminate as of the date of
default,  but  this  paragraph  shall  not  affect  any  vested  rights  of  the
contracting parties.

            (d) All obligations under this Agreement shall be terminated, except
to the extent  determined  that  continuation of this Agreement is necessary for
the continued operation of the Bank: (i) by the Director of the Office of Thrift
Supervision  ("Director of OTS"), or his designee,  at the time that the Federal
Deposit  Insurance  Corporation  ("FDIC")  enters into an  agreement  to provide
assistance to or on behalf of the Bank under the authority  contained in Section
13(c) of FDIA; or (ii) by the Director of the OTS, or his designee,  at the time
that the Director of the OTS, or his designee  approves a supervisory  merger to
resolve problems related to operation of the Bank or when the Bank is determined
by the Director of the OTS to be in an unsafe or unsound  condition.  Any rights

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of the parties that have already vested,  however, shall not be affected by such
action.

            (e)  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.

            (f)  Payments  under the  Agreement  that are  suspended  under this
Section 7, but are later determined by the applicable regulatory authority to be
payable, shall be paid on the earliest date practicable thereafter.

         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 receive  compensation  and
benefits  in  accordance  with the  terms of any plans or  policies  of the Bank
relating  to short  and long  term  disability,  rather  than  pursuant  to this
Agreement.  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  twelve (12)  months  thereafter  of such Change in Control,  absent Just
Cause,  Executive  shall be paid an amount equal to the product of two (2) times
the Executive's  "base amount" as defined in Section  280G(b)(3) of the Code and
regulations promulgated  thereunder.  Said sum shall be paid in one (1) lump sum
as of the date of such  termination  of service,  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. Any successor
or assignee of the Bank  following a Change in Control of the Parent or the Bank
shall be required to  maintain  in place any life  insurance  on the life of the
Executive  that was  acquired by the Parent or the Bank in  connection  with the
Executive Life Insurance  Agreement or Endorsement Method Split Dollar Agreement
then in effect between Executive and the Parent or the Bank. The term "Change in
Control"  shall  refer to: (i) the sale of all,  or a material  portion,  of the
assets of the Bank or the  Parent;  (ii) the merger or  recapitalization  of the
Bank or the Parent  whereby the Bank or the Parent is not the surviving  entity;
(iii) a change in control of the Bank or the  Parent,  as  otherwise  defined or
determined by the Office of Thrift Supervision or regulations promulgated by it;
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 Bank or the Parent by any person, trust, entity or group. This
limitation  shall not apply to the  purchase of shares of up to 25% of any class
of  securities  of the  Parent  or the Bank by a  tax-qualified  employee  stock
benefit plan which is exempt from the approval  requirements  set forth under 12
C.F.R.  ss.574.3(c)(1)(vii) as now in effect or as may hereafter be amended. The
term "person" means an individual  other than the  Executive,  or a corporation,

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partnership,   trust,   association,   joint  venture,  pool,  syndicate,   sole
proprietorship,  unincorporated  organization  or any other  form of entity  not
specifically  listed  herein.  The provisions of this Section 9(a) shall survive
the expiration of this Agreement occurring after a Change in Control.

            (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
twelve (12) months following such Change in Control, and 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 forty (40) miles from the  Executive's  primary office as of
the  signing of this  Agreement;  or (ii) 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 and
retirement plans. Upon such voluntary termination of employment by the Executive
in accordance  with this  subsection,  Executive  shall thereupon be entitled to
receive the payments described in Section 9(a) of this Agreement. The provisions
of this Section 9(b) shall survive the  expiration of this  Agreement  occurring
after a Change in Control.

            (c) Notwithstanding  anything in this Section 9 to the contrary: (1)
no  payment  shall be  permitted  under this  Section 9 unless  the  Executive's
termination of employment  qualifies as a Separation from Service; and (2) if at
the  time  of the  Executive's  Separation  from  Service,  the  Executive  is a
Specified  Employee  as defined in Section  409A,  then the  payment  due to the
Executive under this Section 9 shall be paid to him (or his  beneficiary) on the
Delayed  Distribution  Date.  Defined  terms in this Section 9(c) shall have the
same meaning as in Section 6(c) hereof.

         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.
             -----------------------

            (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) The Bank shall require any successor or assignee, whether direct
or  indirect,  by  purchase,  merger,  consolidation  or  otherwise,  to  all or
substantially   all  the  business  or  assets  of  the  Bank,   expressly   and
unconditionally to assume and agree to perform the Bank's obligations under this
Agreement,  in the same  manner  and to the same  extent  that the Bank would be
required to perform if no such succession or assignment had taken place.

            (c) 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.

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         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 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
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  exclusively  by
arbitration in accordance  with the rules then in effect of the district  office
of the American Arbitration  Association 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.  The  provisions  of this  Section 17 shall
survive the expiration of this Agreement.

         18. Confidential  Information.  The Executive  acknowledges that during
his  employment  he will  learn  and have  access  to  confidential  information
regarding   the  Bank  and  the  Parent  and  its   customers   and   businesses
("Confidential Information"). The Executive agrees and covenants not to disclose
or use for his own benefit,  or the benefit of any other  person or entity,  any
such Confidential  Information,  unless or until the 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 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 Bank and the Parent.
The Executive  shall not otherwise  knowingly act or conduct  himself (a) to the
material detriment of the Bank or the Parent, or its subsidiaries or affiliates,
or (b) in a manner which is inimical or contrary to the interests of the Bank or
the Parent.  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 Bank,
disciplinary  action against the Executive taken by the 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.
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         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.


         IN WITNESS  WHEREOF,  the parties have executed  this  Agreement on the
date first hereinabove written.


                                       AMERICAN BANK OF NEW JERSEY

                                            By: /s/ W. George Parker
                                                -------------------------------
                                                W. George Parker
                                                Chairman


ATTEST:


/s/ Richard Bzdek
-----------------------------
Secretary



/s/ Kathleen Walsh                              /s/ Eric B. Heyer
-----------------------------                   -------------------------------
Witness                                         Eric B. Heyer