EXHIBIT 10.3


                                 LEASE AGREEMENT
                                 ---------------



                       BY AND BETWEEN:

LANDLORD:                         ANTHONY S. AMOSCATO and GERALDINE R. AMOSCATO
                                  580 Centre Street
                                  Nutley, New Jersey  07110
TENANT:                           MONMOUTH COMMUNITY BANK
                                  627 Second Avenue
                                  Long Branch, New Jersey  07740-0630
PREMISES:                         700 Allaire Road
                                  Spring Lake Heights, New Jersey  07762
DATED:                            December 22, 1998




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                                TABLE OF CONTENTS



ARTICLE 1.       DEMISED PREMISES                                4

ARTICLE 2.       TERM                                            4

ARTICLE 3.       OPTIONS TO RENEW                                4

ARTICLE 4.       BASIC RENT                                      5

ARTICLE 5.       USE                                             5

ARTICLE 6.       PAYMENT OF UTILITIES                            6

ARTICLE 7.       MAINTENANCE AND CARE BY TENANT AND
                 BY LANDLORD                                     6

ARTICLE 8.       EXCAVATIONS                                     7

ARTICLE 9.       INSTALLATIONS, ALTERATIONS AND REMOVALS         7

ARTICLE 10.      SIGNS                                           7

ARTICLE 11.      INSURANCE                                       8

ARTICLE 12.      REPRESENTATIONS OF LANDLORD                     9

ARTICLE 13.      INDEMNITY                                       9

ARTICLE 14.      DAMAGE OR DESTRUCTION                           9

ARTICLE 15.      HOLDOVER                                        10

ARTICLE 16.      ASSIGNMENT                                      10

ARTICLE 17.      INSPECTION                                      11

ARTICLE 18.      QUIET ENJOYMENT                                 11

ARTICLE 19.      SURRENDER                                       11

ARTICLE 20.      MORTGAGES                                       11

ARTICLE 21.      REAL ESTATE TAXES                               11

ARTICLE 22.      BROKERAGE                                       12

ARTICLE 23.      DEFAULT                                         13

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ARTICLE 24.      VIOLATION, EVICTION, RE-ENTRY AND
                 DAMAGES                                         13

ARTICLE 25.      CONDEMNATION                                    13

ARTICLE 26.      NOTICES                                         14

ARTICLE 27.      SUCCESSORS AND ASSIGNS                          14

ARTICLE 28.      SEVERABILITY                                    14

ARTICLE 29.      GOVERNING LAW                                   14

ARTICLE 30.      WAIVER                                          14

ARTICLE 31.      CAPTIONS                                        15

ARTICLE 32.      JURY WAIVER                                     15

ARTICLE 33.      NO DISQUALIFICATION                             15

ARTICLE 34.      MARGINAL NOTES                                  15

ARTICLE 35.      ENTIRE AGREEMENT                                15

ARTICLE 36.      APPROVALS                                       15



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                                      LEASE
                                      -----

     THIS LEASE made and  entered  into this 22nd day of  December,  1998 by and
between  ANTHONY S.  AMOSCATO and  GERALDINE R.  AMOSCATO,  whose address is 580
Centre Street,  Nutley,  New Jersey 07110  ("Landlord"),  and MONMOUTH COMMUNITY
BANK, a banking  corporation of the State of New Jersey,  the principal place of
business  of which is located  at 627 Second  Avenue,  Long  Branch,  New Jersey
07740-0630 ("Tenant").

                              W I T N E S S E T H:
                              --------------------

     In consideration of the covenants and agreements contained herein and other
good and valuable consideration,  the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

1.   Demised  Premises.  Landlord  does hereby  lease unto  Tenant the  premises
     including a building  and a parking lot area  located at 700 Allaire  Road,
     Spring Lake Heights,  New Jersey 07762 (such land and building  hereinafter
     referred to as the "Premises"),  as more specifically  described in Exhibit
     "A" hereto together with all necessary rights of access thereto.  Tenant at
     its sole cost and expense shall obtain a certificate of occupancy and other
     required  permits   necessary  to  provide  for  Tenant's  lawful  use  and
     occupancy.  The Demised Premises are leased subject to the encumbrances and
     conditions, if any, in Exhibit "A-1" hereto.

2.   Term. The Term of this Lease shall be five (5) years,  commencing on May 1,
     1999 ("Commencement Date"), and ending on April 30, 2004 ("Term"). Landlord
     shall  deliver  possession  of the  Premises to Tenant on the  Commencement
     Date.

3.   Options to Renew.

     3.1    Provided  Tenant shall not then be in default,  as defined below, in
            the  performance of any of its  obligations and covenants under this
            Lease,  Tenant  may  renew  the Term of this  Lease  upon all of the
            terms,  provisions and conditions herein set forth (unless otherwise
            expressly set forth herein) for an additional  successive  period of
            five years  commencing  on May 1, 2004 and ending on April 30,  2009
            (the  "First  Renewal  Term") by giving  written  notice  thereof to
            Landlord at the address set forth above by  registered  or certified
            mail,  postage  prepaid,  mailed not less than 180 days prior to the
            expiration of the Term.

     3.2    Provided  Tenant shall not then be in default,  as defined below, in
            the  performance of any of its  obligations and covenants under this
            Lease as extended  through the First Renewal Term,  Tenant may renew
            the  Term  of this  Lease  upon  all of the  terms,  provisions  and
            conditions  herein set forth (unless  otherwise  expressly set forth
            herein) for an additional successive period of five years commencing
            on May 1, 2009 and ending on April 30, 2014 by giving written notice
            thereof to Landlord at the address set forth above by  registered or
            certified mail, postage prepaid, mailed not less than 180 days prior
            to the expiration of the First Renewal Term.

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4.   Basic Rent.  During the first and second  lease  years of the Term,  Tenant
     agrees to pay to  Landlord as basic rent for the  Premises,  at the address
     set forth above or at such other  address the  Landlord  may  designate  in
     writing from time to time, the sum of FIVE THOUSAND SIX HUNDRED DOLLARS and
     00/100  ($5,600.00)  per month,  payable  in advance  the first day of each
     month during the first and second lease years of the Term,  without  setoff
     or deduction  for any reason,  beginning on the  Commencement  Date. On the
     first day of the  third,  fourth  and fifth  lease  years  during the Term,
     Tenant shall pay in advance on the first day of each month,  without setoff
     or  deduction  for any reason,  the greater of (a) one hundred four percent
     (104%) of the monthly payable for the immediately  preceding lease year, or
     (b) the basic rent of $5,600.00 increased by the percentage increase in the
     Consumer Price Index for All Urban Consumers  (1982-84=100)  for New York -
     Northeastern,  New Jersey (or its substitute or successor) published by the
     Bureau of Labor  Statistics of the United  States  Department of Labor (the
     "CPI") between May, 1999 and May of the applicable lease year.  During each
     year of the renewal  term as set forth  above,  the basic rent shall be the
     greater of (a) one hundred four percent  (104%) of the monthly  payment for
     the  immediately  preceding  lease year, or (b) the basic rent of $5,600.00
     increased by the percentage increase in the CPI between May 1999 and May of
     the  applicable  lease year.  Since the rent payment for at least the first
     month of a new lease  year will be paid prior to the  determination  of any
     applicable  rent increase  based upon the Consumer Price Index any increase
     for months already elapsed after  commencement of a new lease year shall be
     added to the next monthly rent payment then becoming due and payable.

     In the event the Consumer  Price  Index as  aforesaid  is  discontinued  or
     unavailable,  then in that event the parties shall select an equivalent and
     substituted  Index  to be  applied  in the  same  manner  as in this  Lease
     provided. If the Term begins or ends on a day other than the first day of a
     month,  rent for the months of beginning and expiration of this Lease shall
     be prorated on a per diem basis.

5.   Use.

5.1  The  Premises  may be used  by  Tenant  for a bank  with  automatic  teller
     machines  and drive-up  window,  offices,  brokerage  business or any other
     lawful use.

     5.2    Subject to exceptions stated in this lease, Tenant shall comply with
            all  laws,   orders,   rules  and   requirements   of   governmental
            authorities,  insurance  carriers,  board  of fire  underwriters  or
            similar  groups  that arise from its use and are  applicable  to the
            Premises.  Landlord  represents  and  warrants to Tenant that to the
            best of  Landlord's  knowledge on the date of delivery of possession
            of the Premises to Tenant the Premises were in  compliance  with all
            laws,  orders,  rules and requirements of governmental  authorities,
            insurance carriers, board of fire underwriters or similar groups and
            represents  that the  Premises  are zoned to  permit  the use of the
            Premises  as a bank  with  automatic  teller  machine  and  drive-up
            window.

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6.   Payment  of  Utilities.  Tenant  shall  pay  all  charges  for  heat,  gas,
     electricity,  water and other public  utilities used and consumed by Tenant
     on the Premises during the Term, and any extensions thereof.

7.   Maintenance and Care by Tenant and by Landlord.

     7.1    Tenant shall be responsible  for all repairs and  maintenance to the
            interior premises except as set forth in 7.2. Subject to 7.2, Tenant
            shall maintain and repair the plumbing,  heating,  air conditioning,
            and ventilation  system  (collectively,  the "Major Systems") within
            the Demised  Premises and replace light bulbs (interior and exterior
            including  ceilings  and  soffits).  Except  as  otherwise  provided
            herein,  Landlord shall keep and maintain the roof,  exterior walls,
            and structural  floor slabs in good  condition,  reasonable wear and
            tear  excepted,  and in the event of  complete  failure,  not due to
            Tenant's  negligence  or  willful  destruction,  Landlord  shall  be
            responsible  for the  replacement of the Major  Systems.  During the
            time  that  Lot 65,  Block  46.01 on the Tax Map of the  Borough  of
            Spring Lake Heights is only leased or rented by Tenant, Tenant shall
            make  repairs  and  maintain  the parking  area,  maintain a service
            contract for landscaping and the sprinkler system,  ground sweeping,
            pest  control  and remove the snow,  ice and debris from the parking
            lot.  Tenant shall be responsible  for its own janitorial  services.
            Tenant  shall  arrange  for  trash  and  rubbish  removal  from  the
            premises.  Tenant shall further  replace as necessary  exterior pole
            light  bulbs  during the period of time Lot 65,  Block 46.01 is only
            leased or rented by Tenant.

     7.2    Notwithstanding anything to the contrary contained in paragraph 7.1,
            if the Landlord  shall  construct any other  building(s)  on Lot 65,
            Block  46.01  then the  Landlord  shall be  responsible  to  repair,
            maintain  and replace the parking  area  associated  with such other
            building,  remove the snow,  ice and debris  from the  parking  area
            associated  with such other building and be responsible  for removal
            of trash and rubbish  from the  parking  area  associated  with such
            other building.

     7.3    Tenant on  request to  Landlord  will be  entitled  to copies of any
            bills or other  documentation  evidencing  any costs which have been
            incurred by Landlord  and which  Tenant is obligated to reimburse in
            whole or in part to Landlord  under this  Article or under any other
            Article on this  Lease.  It is agreed that no  apportionment  of any
            common  area  costs  should  ever be made in a manner  to  result in
            Landlord  recovering  more from Tenant than  Tenant's  proportionate
            share of such increase.

            Even though the term has expired and Tenant has vacated the premises
            when the final  determination  is made of  Tenant's  share of common
            area costs for the year in which this lease  expires or  terminates,
            Tenant  shall  immediately  pay any  monies due and  conversely  any
            overpayment  that may have been made on the basis of any estimate by
            Landlord shall be refunded to Tenant immediately.

8.   Excavations.  In the event that Landlord requires an excavation be made for
     building or other  purposes  upon land near,  adjacent or contiguous to the
     Demised  Premises,  or in the

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     event  that same  shall be  contemplated  to be made,  Tenant  agrees  upon
     reasonable  notice to Tenant to afford the person or persons  causing or to
     cause  such  excavation,  license  to enter upon the  Demised  Premises  in
     accordance with the Tenant's  reasonable  security concerns for the purpose
     of doing  such  things  as are or may be  contemplated  or  allowed  by any
     present or future laws, rules, requirements,  orders, direction, ordinances
     or regulations of the United States of America,  or of the state, county or
     city  governments  or  of  any  other  municipal,  governmental  or  lawful
     authority  whatsoever.  Entry shall be made in a way to minimize disruption
     to Tenant. In accordance with the reasonable  security provision of Tenant,
     Landlord  does hereby retain the right to have access to and entry into the
     Demised Premises  including but not limited to the non-exclusive use of the
     parking area and access area into the premises  adjacent  thereto  known as
     2003  Highway 71,  Spring  Lake  Heights,  New Jersey and 2005  Highway 71,
     Spring  Lake  Heights,  New Jersey as shown on the Map  attached  hereto as
     Exhibit  B.  Landlord  shall  exercise   reasonable  care  to  prevent  any
     destruction,  damage or injury or loss to the Demised  Premises by Landlord
     or excavators or any other third person.

9.   Installations, Alterations and Removals.

     9.1    Tenant may make  alterations,  changes  or  permanent  additions  or
            improvements  to the  Premises  with  Landlord's  consent  not to be
            unreasonably  withheld or delayed  provided that if such involves an
            expenditure of less than $10,000.00, Landlord's consent shall not be
            required. Any such permitted alterations and additions shall be made
            at Tenant's  sole cost and expense and shall be  completed  free and
            clear of all  mechanics'  and other  similar  liens and claims.  All
            equipment,  fixtures and personal property installed by Tenant shall
            be and shall  remain  the  property  of Tenant and may be removed by
            Tenant upon termination of this Lease provided, however, that Tenant
            shall repair all damage to the Premises caused by such removal.

     9.2    If any  mechanic's  or  materialmen's  lien  is  filed  against  the
            Premises  for work  claimed  to have  been done  for,  or  materials
            claimed  to have  been  furnished  to  Tenant  in  undertaking  such
            alterations or additions or installing such  equipment,  fixtures or
            property,  such lien shall be  discharged or bonded by Tenant within
            thirty (30) days thereafter,  at Tenant's sole cost and expense,  by
            the payment thereof or by filing any bond required by law. If Tenant
            fails  to  discharge  any such  mechanic's  or  materialmen's  lien,
            Landlord  may,  at its  option,  after  giving  ten (10) days  prior
            written  notice  to  Tenant,  discharge  the same and treat the cost
            thereof as additional  rent payable with the monthly  installment of
            rent next  becoming  due.  Such  discharge by Landlord  shall not be
            deemed  to  waive,  or  release,   the  failure  of  Tenant  in  not
            discharging  the same. Any such repairs shall be conducted on behalf
            of Tenant.

10.  Signs.  Tenant may, in  connection  with its use of the  Premises as a bank
     facility, install signs on the Premises provided,  however, that such signs
     shall comply with all applicable  laws,  ordinances and other  governmental
     regulations.

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11.  Insurance.  During the Term and any  renewals of this Lease,  Tenant  shall
     maintain fire and extended  coverage  insurance  which is adequate to cover
     the  cost or  replacement  of all  personal  property,  decorations,  trade
     fixtures,  furnishings  and  equipment  and all  contents of the  Premises.
     Tenant may carry such insurance under a blanket policy. During the Term and
     any  extensions of this Lease,  Landlord at its cost and expense shall keep
     and maintain fire and extended  coverage  insurance on the Premises for the
     full replacement cost of the building and improvements on the Premises. All
     policies shall be with  companies  qualified to do business in the State of
     New Jersey.  The policies  maintained  by Landlord  shall name Tenant as an
     additional  insured and shall provide that the proceeds shall be payable to
     Landlord and/or Tenant as their respective  interests may appear.  Landlord
     shall  furnish  evidence of the payment of the  premiums to Tenant.  Tenant
     shall  reimburse  the  Landlord  for the  portion  of the  insurance  costs
     attributable to the building which it is leading hereunder.  Landlord shall
     adjust such charge to Tenant to fairly  allocate  the cost to the  building
     and improvements on the Premises.

     Tenant  shall  provide  and keep in force,  for the  benefit  of  Landlord,
     general accident and public liability,  insurance fully protecting Landlord
     against any and all liability  occasioned  by accident or disaster,  in the
     amount of ONE MILLION DOLLARS ($1,000,000.00) in respect of injuries to any
     one person,  and in the amount of ONE MILLION  DOLLARS  ($1,000,000.00)  in
     respect of any one accident or disaster,  and such  accident and  liability
     insurance  shall  cover the entire  building  and  premises  as well as the
     sidewalks  immediately  in front of and  adjacent to the Demised  Premises;
     plate glass insurance;  and on demand of Landlord,  such other insurance as
     may be appropriate  and customary for like buildings with this use.  Tenant
     may carry a blanket policy. Policies covering Landlord and Tenant, as their
     respective interests may appear, but otherwise in the form herein provided,
     shall be deemed to be in compliance  with the  provisions of this covenant.
     All said  policies  shall be  obtained by Tenant and  certificates  thereof
     delivered  to  Landlord  upon  the  commencement  of the term  hereof  with
     evidence by stamping or otherwise  of the payment of the premiums  thereon,
     and  shall be  taken  in such  amounts  and in such  responsible  companies
     authorized to do business in the State of New Jersey.

     Twenty (20) business days prior to the expiration of any policy or policies
     of  insurance,  Tenant  shall pay the premiums  for renewal  insurance  and
     deliver to Landlord or to any mortgagee  Landlord may designate within said
     period of time, evidence of payment by stamping or otherwise of the payment
     of the premiums  thereon and deliver  certificates  of  insurance.  If such
     premiums or any of them shall not be so paid and the certificates shall not
     be so  delivered,  Landlord  may procure  and/or pay for the same,  and the
     amount  so paid by  Landlord,  with  interest  thereon  at the  rate of ten
     percent  (10%) per annum  from the date of  payment,  shall  become due and
     payable  by  Tenant  as  additional  rent  with the next or any  subsequent
     installment  of basic rent  which  shall  become due after such  payment by
     Landlord;  it being  expressly  covenanted  that payment by Landlord of any
     such  premium  shall not be deemed to waive or release  the  default in the
     payment thereof by Tenant, or the right of the Landlord to take such action
     as may be permissible hereunder as in the case of default in the payment of
     basic rent.

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     Tenant shall not violate or permit to be violated any of the  conditions or
     provisions of any of said policies, and Tenant shall so perform and satisfy
     the  requirements of the companies  writing such policies that at all times
     companies  of good  standing  shall be willing to write and  continue  such
     insurance.

     If the Term of this Lease shall not expire concurrently with the expiration
     of the period  covered by such  insurance,  Tenant's  liability for premium
     increases shall be prorated on an annual basis.

12.  Representations of Landlord.  Landlord  represents and warrants that to the
     best of Landlord's knowledge as of the date hereof:

     12.1   Landlord owns fee simple title to the Premises;

     12.2   Landlord has the full power,  right and authority to make this Lease
            for the Term and any renewals thereof; and

     12.3   There are no  environmental  violations and no  underground  storage
            tanks at the Premises.

13.  Indemnity.

     13.1   Tenant  agrees to,  and hereby  does,  indemnify  and hold  harmless
            Landlord  from and  against  any and all  loss,  cost  and  expense,
            including  reasonable  attorney's  fees,  from  claims for injury to
            person or damage to property  arising out of any  negligent  acts or
            omissions  of Tenant or its  agents and  employees  in their use and
            occupancy  of the Premises or arising out of any failure on the part
            of  Tenant  to  keep  and  perform  its  covenants  and  obligations
            hereunder.

     13.2   Landlord  agrees to indemnify,  defend and hold harmless Tenant from
            and against any and all costs, losses, damages, expenses,  including
            reasonable  attorney's  fees,  from  claims  for injury to person or
            property or damage to property  arising out of any negligent acts or
            omissions of the Landlord or its agents and employees or any losses,
            damages,  expenses  or  reasonable  attorney's  fees  which  result,
            directly  or  indirectly,  from  inaccuracy  in,  or any  breach  by
            Landlord of, any of the  representations  or warranties set forth in
            this Lease or a failure by Landlord to perform any of its  covenants
            or obligations hereunder.

14.  Damage or  Destruction.  In the event of any damage or  destruction  to the
     Premises  by fire or other  casualty,  by reason  other than the  Tenant's,
     Tenant's employees',  agents',  contractors' or representatives' negligence
     or willful  misconduct,  and such damage or  destruction  can reasonably be
     repaired  or  restored  within  one  hundred  twenty  (120)  days  from the
     occurrence thereof,  Landlord shall, at its sole expense, promptly commence
     such  repair  and  restoration,  and  shall  complete  the  same as soon as
     reasonably possible thereafter so that the Premises,  after such repair and
     restoration,  are as nearly as possible  equal to the value of the Premises
     immediately  prior to such damage or destruction or in conformity  with any
     plans and  specifications  that may have been agreed  upon by Landlord  and
     Tenant. In the event that any such damage or destruction to the Premises or

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     any necessary  means of access  thereto  cannot  reasonably be repaired and
     restored within one hundred twenty (120) days, Landlord and Tenant may each
     terminate this Lease by giving  written  notice of such  termination to the
     other  within  thirty  (30) days  after the  occurrence  of such  damage or
     destruction  and all  obligations  and  liabilities  of Tenant and Landlord
     hereunder shall terminate as of the date of such damage or destruction.  In
     the event that this Lease is not  terminated  by the exercise of such right
     by either party, Landlord shall, at its own cost and expense and regardless
     of  whether  there are  available  insurance  proceeds  sufficient  for the
     purpose,  promptly  commence and proceed  diligently  to repair and restore
     such damage and  destruction  to the Premises so that the  Premises,  after
     such repair and restoration are as nearly as possible equal to the value of
     the Premises immediately prior to such damage or destruction.

15.  Holdover. In the event that Tenant holds over or retains the premises after
     the expiration of this Lease, or any renewal  thereof,  without  Landlord's
     consent,  the  tenancy  thereupon  arising  shall  be  construed  to  be  a
     month-to-month  tenancy at the rental in effect immediately  preceding such
     expiration  increased  by  the  greater  of  twenty  percent  (20%)  or the
     percentage  increase in the Consumer Price Index as provided in Paragraph 3
     of this  Lease,  and upon such  other  terms and  conditions  as  specified
     herein.

16.  Assignment.  Neither the Tenant nor its  successors or assigns shall assign
     this Lease,  without the prior  written  permission  of the Landlord  which
     shall not be unreasonably  withheld or delayed and,  unless  simultaneously
     with such  assignment,  the  assignee  executes and delivers to Landlord an
     instrument  in  recordable  form whereby the assignee  assumes the terms of
     this Lease and covenants to perform all the terms, covenants and conditions
     thereof.  Neither such an assignment nor such an assumption of liability by
     the  assignee  shall  release any  person,  firm or  corporation  including
     Tenant,  already liable for the  performance of the terms and conditions of
     this Lease.

     Notwithstanding the foregoing,  Tenant may sublet or assign without consent
     to a parent corporation,  subsidiary,  or any affiliate of Tenant. Further,
     this Lease may be assigned or sublet in whole or in part without consent of
     the Landlord to any corporation  into or with which Tenant may be merged or
     consolidated.  An "affiliate" shall mean any corporation which, directly or
     indirectly,  controls or is controlled  by or is under common  control with
     Tenant. For this purpose, "control" shall mean the possession,  directly or
     indirectly, of the power to direct or cause the direction of the management
     and policies of such  corporation,  whether through the ownership of voting
     securities  or by  contract or  otherwise.  A  "subsidiary"  shall mean any
     corporation  not less than  fifty-one  percent  (51%) of whose  outstanding
     stock shall,  at the time, be owned  directly or  indirectly  by Tenant.  A
     "parent"  shall mean any  corporation  which  owns not less than  fifty-one
     percent (51%) of the ownership of Tenant.

17.  Inspection. Landlord may enter upon the Premises at all reasonable business
     hours upon advance notice to Tenant for the purpose of showing the Premises
     to prospective buyers, mortgage lenders,  contractors,  insurers, and after
     the date for exercise of the renewal option(s), if not exercised, or in the
     last nine (9) months of the  renewal  term for the  purpose of showing  the
     Premises  to  prospective  Tenants,  and for the  purpose of  examining  or
     inspecting the same and in order that Landlord may make such repairs as

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     may be  required  to be made by  Landlord  under the  terms  hereof or such
     repairs  or  alterations  as may be  deemed  necessary  for the  safety  of
     preservation of the Premises,  provided,  however, that such right shall be
     exercised at such time, and in such manner as to not unreasonably interfere
     with  Tenant's  business  activities  and  such  shall be  consistent  with
     Tenant's  security  requirements.  Any entry upon the  Premises by Landlord
     shall be consistent with any rules and regulations pertaining to banks.

18.  Quiet Enjoyment. Landlord covenants and agrees that Tenant, upon paying the
     rent and all other charges  herein  provided for and  performing all of its
     other  obligations  hereunder,  shall lawfully and quietly hold, occupy and
     enjoy the full possession of the Premises, together with the parking rights
     described  herein,  during the Term,  and any extensions  thereof,  without
     hindrance, molestation or disturbance by Landlord.

19.  Surrender.  Except as set forth in this Lease,  Tenant  agrees to surrender
     the Premises at the  expiration or earlier  termination of this Lease in as
     good  condition  and  repair  as the  same  are  required  to be  kept  and
     maintained by Tenant during the Term, reasonable wear and tear excepted.

20.  Mortgages.  The Premises  may be  mortgaged by Landlord  from time to time.
     Upon request by Landlord,  Tenant shall  execute and deliver to Landlord an
     instrument,  in recordable form, which shall subordinate this Lease to such
     mortgage  conditioned  upon  Landlord  obtaining  from  the  holder  of any
     mortgage  having  priority over this Lease,  an  instrument,  in recordable
     form,  which shall provide that the rights of Tenant hereunder shall not be
     disturbed in the event of any  foreclosure  of such mortgage or any sale of
     the premises  pursuant to such mortgage as long as Tenant is not in default
     hereunder beyond any applicable grace period.

21.  Real Estate Taxes.  Landlord shall pay all taxes and assessments levied and
     assessed  against the Demised  Premises as the same become due and payable.
     Tenant  shall  reimburse  Landlord in an amount equal to the amount of such
     taxes paid in and applicable to the Demised Premises during any year of the
     term. Landlord shall provide Tenant with copies of applicable tax bills and
     breakdown  calculations,  as appropriate,  for any such reimbursed amounts.
     Tenant may elect to contest  any taxes in which  case such  contest  may be
     made in the name of  Landlord  or  Tenant,  as Tenant  may  determine,  and
     Landlord  shall  cooperate  reasonably  with Tenant but without  expense to
     Landlord  in such  event.  Tenant  shall be  entitled  to any refund of any
     excess payments made by Tenant.

     Landlord  represents  that  Lot  65 in  Block  46.01  of the  official  Tax
     Assessment Map of Spring Lake Heights  constitutes  the tax parcel of which
     the  Demised  Premises  form a part and that such tax  parcel is taxed as a
     single unit.  During the period that only Tenant  leases or rents a portion
     of Lot 65, Block 46.01 the Tenant shall pay the entire  portion of the land
     taxes for Lot 65, Block 46.01.  If Landlord  constructs a building(s) or an
     addition to the building on the Premises  then  Tenant's  obligation  for a
     proportionate  share of real estate  taxes for the land shall be reduced so
     that  Tenant  shall pay a fraction of the taxes  assessed  for said land in
     which the numerator is the square footage of the Premises  leased by Tenant
     and  the   denominator  is  the  gross  square  footage  of  space  of  the
     building(s), including any addition to the existing building.

                                       11
<PAGE>

     Tenant's proportionate share of taxes shall include an apportionment on the
     basis of the  valuation  of the  building  on the  Demised  Premises by the
     taxing  authorities,  which building is being leased by Tenant  pursuant to
     this  Lease.  Tenant  shall not be  required to pay any portion of the real
     estate taxes  attributable  to other buildings or improvements or additions
     that are or may be on the tax lot which include the Premises.

     Nothing herein shall require  Tenant to pay local,  state or federal income
     taxes assessed against Landlord; or sales, excise, franchise, gift, estate,
     succession, inheritance or transfer taxes of Landlord.

     If a separate  tax bill can be  obtained  from the  Demised  Premises  then
     either  Landlord or Tenant may at its option  seek to obtain such  separate
     tax bill and there shall be an  appropriate  adjustment  to the taxes to be
     paid by Tenant based upon the separate tax bill if obtained.

     In the first or last year of the term of this Lease,  or any renewal  term,
     as the case may be, Tenant's  liability shall be apportioned so that Tenant
     pays only for such part of the tax year that should be included in the term
     of this Lease.

     Any  dispute  between  the parties  with  regard to the  allocation  of the
     property taxes shall be resolved by arbitration.  In the event of a dispute
     the parties shall select an  arbitrator  within thirty (30) days of request
     by one to the other and the cost of the arbitrator shall be shared equally.
     In the event  Landlord and Tenant cannot agree upon the  arbitrator  within
     the   aforesaid   period  then  the  parties  shall  request  the  American
     Arbitration  Association  to  appoint  an  arbitrator  and the  fees of the
     American Arbitration Association and the arbitrator shall be shared equally
     by the parties.  The decision of the arbitrator  shall be final and binding
     upon the parties.

22.  Brokerage.  Each party warrants that it has had no dealings with any broker
     or agent in connection with the negotiations or execution of this Lease and
     a party who falsely so warrants shall indemnify the other party against all
     costs, claims, expenses, attorney's fees or other liability for commissions
     or other  compensation  or charges  claimed by any broker or agent claiming
     the same by, through or under said party.

23.  Default.  In the event  that (1) Tenant  fails to make any  payment of rent
     within  ten (10)  days of the due date as  herein  provided,  or (2) in the
     event Tenant fails to perform any of the other  obligations to be performed
     by Tenant,  and such failure  continues  for thirty (30) days after written
     notice from Landlord  specifying such failure (or, if such failure requires
     more than thirty (30) days to cure, for such reasonable  period required to
     cure such  failure,  provided  that Tenant  commences  curing such  failure
     within such thirty (30) day period and  thereafter  diligently  proceeds to
     cure such  failure),  then  Landlord  may  terminate  this  Lease by giving
     written notice of such termination to Tenant, or, without first terminating
     this Lease, Landlord may take immediate possession of the Premises.

24.  Violation, Eviction, Re-entry and Damages. The Landlord reserves a right of
     re-entry  which  allows the  Landlord  to end this Lease and  re-enter  the
     Premises if Tenant defaults under this Lease and fails to cure such default
     within any grace period allowed by the

                                       12
<PAGE>

     Lease.  Tenant is liable for all  damages  caused by its  violation  of any
     agreement in this Lease.

     After eviction, Tenant shall pay the rent on the dates originally fixed for
     payment thereof in what would otherwise have constituted the balance of the
     Term or until  the  Landlord  re-rents  the  Premises,  if  sooner.  If the
     Landlord  re-rents the Premises for less than Tenant's  rent,  Tenant shall
     pay the difference  until what otherwise would have constituted the balance
     of the term.  Tenant shall not be entitled to any excess resulting from the
     re-renting.  Tenant shall also pay (a) all reasonable  expenses incurred by
     Landlord in  preparing  the  Premises  for  re-renting  and (b)  reasonable
     commissions  paid to a broker  for  finding a new  tenant.  In the event of
     default by Tenant  Landlord  shall be entitled  to recover  its  reasonable
     attorney's fees and costs incurred in pursuing its remedies.

25.  Condemnation.  If all of the Demised  Premises  are taken for any public or
     quasi-public use under any statute,  by right of eminent domain, this Lease
     shall  terminate and cease on the date when  possession  shall be taken and
     all rents,  additional  rents and other charges shall be pro-rated and paid
     to such  date.  In the  event  of any  taking  of the  Premises  by  public
     authority  under  power of  eminent  domain or  otherwise  of a part of the
     Demised Premises so as to render the remainder unavailable for Tenant's use
     for its ordinary  business  purposes,  Tenant may  terminate  this Lease by
     giving  written notice of such  termination to Landlord  within thirty (30)
     days after any notice of  condemnation  or of the  intention  of the public
     authority to condemn such property and all  obligations  and liabilities of
     Tenant  and  Landlord  hereunder  shall  terminate  on  the  date  of  such
     condemnation.  In the event of any condemnation of part of the Premises and
     this Lease is not  terminated,  Landlord  shall be  entitled to receive the
     entire  award  and shall  promptly  restore  any  damages  to the  Premises
     resulting therefrom but Tenant may receive a condemnation award provided it
     does not diminish Landlord's award. If Tenant is so deprived of the use and
     occupancy of any part of any repairs or  restoration,  rent shall be abated
     for the time and to the extent  that Tenant is deprived of such use. In the
     event of any taking of the  Premises or any part  thereof and this Lease is
     terminated,  Tenant  shall be  entitled to receive any portion of the award
     specifically  designated for Tenant,  such as moving expenses,  if any, and
     such part of the entire award as Tenant shall be entitled to receive  under
     the law.

26.  Notices.  Any notices  required or permitted to be given hereunder shall be
     deemed  sufficient  if given by  communication  in writing,  sent by United
     States mail, postage prepaid and certified, and addressed as follows: If to
     Landlord, at the address first above set forth herein; if to Tenant, at the
     address set forth at page one of this Lease to the  attention of Richard O.
     Lindsey  or to such  other  address,  in  either  case,  as such  party may
     designate to the other party in writing as above set forth. In the event of
     notice of default by Landlord to Tenant a copy shall be sent to:

                           James G. Aaron, Esq.
                           Ansell, Zaro, Grimm & Aaron
                           1500 Lawrence Avenue
                           Ocean, New Jersey  07712

                                       13
<PAGE>

                           ____________________

                           ____________________

     In the event of notice of  default  by Tenant to  Landlord  a copy shall be
     sent to:

                           James T. Sabaitis, Esq.
                           2022 Highway 71
                           Spring Lake Heights, New Jersey  07762


27.  Successors  and Assigns.  This Lease shall be binding upon and inure to the
     benefit  of the  parties  hereto  and their  respective  heirs,  executors,
     administrators, successors and assigns.

28.  Severability.  To the extent that any  provision  herein is held invalid in
     any judicial or  quasi-judicial  proceeding,  then that provision  shall be
     deemed to be deleted,  and the  remaining  provisions  shall remain in full
     force and effect.

29.  Governing Law. This Lease is deemed to be made under and shall be construed
     according to, the laws of the State of New Jersey.

30.  Waiver. The waiver, by either party, or strict compliance or performance of
     any of the terms of this  Lease or of any  breach of this Lease on the part
     of the other party shall not be  construed  or deemed to be a waiver of any
     prior of subsequent  failure to comply strictly with or perform the same or
     any other term or condition of this Lease or of any breach of this Lease.

31.  Captions.  The paragraph captions herein are for convenience only and shall
     in no way affect the interpretation of this Lease or any part hereof.

32.  Jury  Waiver.  Landlord  and  Tenant  waive a trial  by jury or any and all
     issues arising in any action or proceeding  between the parties upon, under
     or  connected  with  this  Lease  or  any of its  provisions,  directly  or
     indirectly,  or any  and  all  negotiations  in  connection  therewith,  or
     Tenant's use or occupation on the Premises.

33.  No  Disqualification.  Landlord and Tenant  represent and warrant that they
     are not disqualified under federal, state or other laws, or under the rules
     or regulations of any governmental department or authority, from acquiring,
     owning,  leasing and holding any interest in real property.  Tenant further
     represents  that the  execution  of the  within  Lease was duly  authorized
     pursuant  to the terms and  conditions  of its charter and by laws and that
     the persons executing the same were duly authorized to act on behalf of the
     Tenant and impress the seal of the corporation thereon.

34.  Marginal  Notes.  The marginal notes, if any, are inserted only as a matter
     of  convenience  and for reference and in no way define,  limit or describe
     the scope or intent of this Lease nor in any way affect this Lease.

                                       14
<PAGE>

35.  Entire  Agreement.  This Lease  constitutes  the entire and only  agreement
     between the parties  hereto with respect to the subject  matter  hereof and
     supersedes any and all prior agreements,  arrangements,  communications, or
     representations,  whether oral or written, between the parties with respect
     to  the  subject  matter  hereof.   No   alteration,   amendment,   change,
     modification,  addition,  or  waiver  to this  Agreement  shall be valid or
     binding  unless  the  same is in  writing  and  signed  by duly  authorized
     representative of each of the parties.

36.  Contingency.  The parties hereto expressly  acknowledge and agree that this
     Lease is contingent  upon  Monmouth  Community  Bank  obtaining any and all
     approvals  necessary from the FDIC and the New Jersey Department of Banking
     and Insurance to operate a branch  office.  Monmouth  Community  Bank shall
     have until April 1, 1999 to obtain any such approvals required. If Monmouth
     Community Bank fails to obtain all required approvals within the time frame
     set forth above, either party shall have the right to terminate this Lease.
     Provided,  however,  that in the event of such termination by the Landlord,
     Monmouth  Community  Bank  shall be  entitled  to three (3)  business  days
     written  notice  period  within  which  time it may  elect  to  waive  this
     contingency.

     IN WITNESS  WHEREOF,  the parties  have caused this Lease to be executed by
     their duly authorized representatives.

ATTEST:                                          MONMOUTH COMMUNITY BANK


           /s/ Patricia Krebs                By: /s/ Richard O. Lindsey
-----------------------------------              ------------------------------
                                                 Richard O. Lindsey
                                                 President and CEO

WITNESS:


             /s/ [illegible]                     /s/ Anthony S. Amoscato
-----------------------------------              ------------------------------
                                                 ANTHONY S. AMOSCATO

WITNESS:


             /s/ [illegible]                     /s/ Geraldine R. Amoscato
-----------------------------------              ------------------------------
                                                 GERALDINE R. AMOSCATO


                                       15
<PAGE>

STATE OF NEW JERSEY :
                    : ss.:
COUNTY OF MONMOUTH  :

     On the 28th day of December,  1998,  before me, a Notary  Public in and for
said County and State, duly commissioned and sworn,  personally appeared ANTHONY
S.  AMOSCATO and  GERALDINE R.  AMOSCATO,  to me known and known to me to be the
individual described in, and who executed the within instrument and acknowledged
to me that they execute same.

     IN TESTIMONY  WHEREOF,  I have hereunto set my hand and affixed by official
seal the day and year in this certificate first above written.


                                            /s/ [illegible]
                                            ------------------------------------
                                            NOTARY PUBLIC
                                            Date:              [illegible]
                                                 -------------------------------


STATE OF NEW JERSEY :
                    : ss.:
COUNTY OF MONMOUTH  :

     On the 22nd day of December,  1998,  before me, a Notary  Public in and for
said County and State, duly commissioned and sworn,  personally appeared Richard
O. Lindsey,  (name of Officer of  Corporation  executing  Lease as Tenant) to me
known,  who, being by me duly sworn, did depose and say that he is the President
and CEO of MONMOUTH  COMMUNITY  BANK,  the  corporation  described in, and which
executed the foregoing  instrument;  that he knows the seal of said corporation,
that the seal affixed to said  instrument is such corporate seal; that it was so
affixed  by order of the  Board of  Directors  of said  corporation  and that he
signed his name thereto by like order.

     IN TESTIMONY  WHEREOF,  I have hereunto set my hand and affixed by official
seal the day and year in this certificate first above written.


                                                     /s/ Kathy Cusick
                                                     ---------------------------
                                                     NOTARY PUBLIC
                                                     Date:      12/22/98
                                                          ----------------------


                                       16
<PAGE>



                                   EXHIBIT "A"
                                   -----------



                               Lot 65, Block 46.01
                               -------------------

                               [Drawing of a map]






                                       17
<PAGE>

                                   EXHIBIT A-1
                                   -----------


                             PERMITTED ENCUMBRANCES
                             ----------------------


1.   Mortgage to First  Fidelity  Bank,  dated July 12, 1990,  recorded July 16,
     1990 in MB 4848, Page 206, Collateral Assignment, recorded in MB 4848, Page
     219, and UCC Financing Statement No. 64912).

2.   Easements contained in DB 4914, Page 357.




                                       18
<PAGE>



                            FIRST AMENDMENT TO LEASE
                            ------------------------


     THIS  FIRST  AMENDMENT  TO LEASE is made and  entered  into this 2nd day of
March, 1999, by and between ANTHONY S. AMOSCATO and GERALDINE R. AMOSCATO, whose
address  is 580  Centre  Street,  Nutley,  New Jersey  07110  ("Landlord"),  and
MONMOUTH  COMMUNITY BANK, a banking  corporation of the State of New Jersey, the
principal  place of  business  of which is located at 627  Second  Avenue,  Long
Branch, New Jersey 07740-0630 ("Tenant").

     WHEREAS,  Landlord and Tenant have  entered  into that  certain  Lease (the
"Lease") dated December 22, 1998 regarding premises located at 700 Allaire Road,
Spring Lake Heights, New Jersey; and

     WHEREAS, the Landlord and the Tenant now wish to modify and amend the Lease
with respect to the  commencement  date and option  provision dates set forth in
paragraphs 2 and 3 of the Lease, respectively.

     NOW, THEREFORE,  in consideration of the covenants and agreements contained
herein, and other good and valuable  consideration,  the receipt and sufficiency
of which are hereby acknowledged, the Landlord and Tenant agree as follows:

I.   Paragraph  2 of the  Lease  is  hereby  deleted  in its  entirety  and  the
     following paragraph is substituted in its place:

     "2.  Term.  The Term of this Lease shall be five (5) years,  commencing  on
          June 1,  1999  ("Commencement  Date"),  and  ending  on May  30,  2004
          ("Term").  Landlord shall deliver possession of the Premises to Tenant
          on the Commencement Date."

II.  Paragraph  3 of the  Lease  is  hereby  deleted  in its  entirety  and  the
     following paragraph is substituted in its place:

          "3.  Options to Renew.

               3.1.  Provided  Tenant  shall not then be in default,  as defined
          below,  in the  performance  of any of its  obligations  and covenants
          under this Lease,  Tenant may renew the Term of this Lease upon all of
          the  terms,   provisions  and  conditions  herein  set  forth  (unless
          otherwise  expressly set forth  herein) for an  additional  successive
          period of five years  commencing on June 1, 2004 and ending on May 31,
          2009 (the "First  Renewal  Term") by giving  written notice thereof to
          Landlord at the address set forth  above by  registered  or  certified
          mail,  postage  prepaid,  mailed  not less than 180 days  prior to the
          expiration of the Term.

               3.2.  Provided  Tenant  shall not then be in default,  as defined
          below,  in the  performance  of any of its  obligations  and covenants
          under this Lease as extended  through the First Renewal  Term,  Tenant
          may renew

                                       19
<PAGE>

          the  Term  of  this  Lease  upon  all of  the  terms,  provisions  and
          conditions  herein set forth  (unless  otherwise  expressly  set forth
          herein) for an additional  successive  period of five years commencing
          on June 1, 2009 and ending on May 31,  2014 by giving  written  notice
          thereof to Landlord at the  address set forth above by  registered  or
          certified mail,  postage prepaid,  mailed not less than 180 days prior
          to the expiration of the First Renewal Term."

III. In all other respects, the Lease shall remain unchanged.

     IN WITNESS  WHEREOF,  the parties have caused this First Amendment to Lease
to be executed by their duly authorized representatives.




           Patricia Krebs                   By: /s/ Richard O. Lindsey
--------------------------------                ------------------------------
                                                Richard O. Lindsey
                                                President and CEO



          /s/ [illegible]                         /s/ Anthony S. Amoscato
--------------------------------                ------------------------------

                                                ANTHONY S. AMOSCATO



          /s/ [illegible]                         /s/ Geraldine R. Amoscato
--------------------------------                ------------------------------

                                                GERALDINE R. AMOSCATO


                                       20
<PAGE>


STATE OF NEW JERSEY :
                    : ss.:
COUNTY OF MONMOUTH  :

     On the 6th day of March,  1999,  before me, a Notary Public in and for said
County and State,  duly commissioned and sworn,  personally  appeared ANTHONY S.
AMOSCATO  and  GERALDINE  R.  AMOSCATO,  to me known  and  known to me to be the
individual described in, and who executed the within instrument and acknowledged
to me that they execute same.

     IN TESTIMONY  WHEREOF,  I have hereunto set my hand and affixed by official
seal the day and year in this certificate first above written.


                                                     ---------------------------
                                                     NOTARY PUBLIC

                                                     Date:
                                                          ----------------------


STATE OF NEW JERSEY :
                    : ss.:
COUNTY OF MONMOUTH  :

     On the 2nd day of March,  1999,  before me, a Notary Public in and for said
County and State,  duly commissioned and sworn,  personally  appeared Richard O.
Lindsey, (name of Officer of Corporation executing Lease as Tenant) to me known,
who, being by me duly sworn, did depose and say that he is the President and CEO
of MONMOUTH COMMUNITY BANK, the corporation described in, and which executed the
foregoing instrument; that he knows the seal of said corporation,  that the seal
affixed to said  instrument is such  corporate  seal;  that it was so affixed by
order of the Board of Directors of said  corporation and that he signed his name
thereto by like order.

     IN TESTIMONY  WHEREOF,  I have hereunto set my hand and affixed by official
seal the day and year in this certificate first above written.


                                                     /s/ Kathy Cusick
                                                     ---------------------------
                                                     NOTARY PUBLIC
                                                     Date:       3/2/99
                                                          ----------------------


                                       21
<PAGE>



                                    EXHIBIT B
                                    ---------


                             Furniture and Equipment
                             -----------------------


1-desks with returns                             1-coffee tables
3-desks without returns                          3-love seats
5-2 Drawer Lateral Cabinets                      2-rectangular tables
4-credenzas                                      2-desk/table lamps
18-guest chairs                                  2-wall mounted lamps
3-desk chairs                                    1-kitchen table with 4 chairs
2-secretarial chairs                             1-check writing desk
3-end tables



                                       22
<PAGE>

                                JAMES T. SABAITIS
                                 ATTORNEY AT LAW
                           2022 Highway 71, Suite 201
                      Spring Lake Heights, New Jersey 07762

                                 _______________

                            TELEPHONE (732) 974-1700
                            FACSIMILE (732) 974-0570


                                                  ALSO ADMITTED IN MASSACHUSETTS



                                          March 8, 1999

Richard C. Lindsey, President & CEO
Monmouth Community Bank
627 Second Avenue
Long Branch, New Jersey  07740

         Re:  First Amendment to Lease
              700 Allaire Road, Spring Lake Heights, New Jersey

Dear Mr. Lindsey:

     Enclosed for your file is the fully  executed  First  Amendment to Lease. I
have also enclosed a listing of furniture that the Landlord anticipates to leave
at the site for your  use.  As we  discussed,  the  furniture  will  remain  the
property of the  Landlord.  In the event that the Bank wishes to replace (or not
use) any of the furniture it must be returned to the Landlord. At the end of the
Lease,  all such furniture  must be returned to the Landlord in good  condition,
reasonable wear and tear excepted. Please call me with any questions.

     Again,  it has been a pleasure  working with you. We are looking forward to
the opening of the Spring Lake  Heights  branch of Monmouth  Community  Bank and
wish you all the best.

                                          Sincerely,

                                          /s/ James T. Sabaitis
                                          ---------------------------
                                          James T. Sabaitis



cc:  Mr. & Mrs. Anthony S. Amoscato