EMPLOYMENT AGREEMENT




         AGREEMENT,  dated January 14, 2000,  between Staten Island Savings Bank
(the "Bank"),  a federally  chartered savings bank and a wholly owned subsidiary
of Staten Island Bancorp, Inc. ("Bancorp"), and Ira Hoberman (the "Employee").

         WHEREAS,  the Bank desires to obtain the services of the Employee,  and
the  Employee  desires to provide  such  services to the Bank,  on the terms set
forth in this Agreement;

         NOW,   THEREFORE,   in   consideration  of  the  mutual  covenants  and
obligations  hereinafter set forth, the parties hereto,  intending to be legally
bound, hereby agree as follows:


1.       Employment and Duties.
         ----------------------

                           (a)    The Bank hereby employs the Employee, and
the  Employee  accepts  employment,  to serve as an officer of the Bank,  and to
perform  such duties as may  reasonably  be assigned to him from time to time by
the Bank's Board of Directors.  Initially, and for a period of not less than one
year from the date hereof, the Employee shall serve as President of First State,
which is a  division  of the  Bank.  Subsequent  to such  one-year  period,  the
Employee  shall  continue  to serve as  President  of the First  State  Division
pursuant to the terms hereof for the  remainder of the Term,  as defined  below;
provided,  however,  that in the event that First State  ceases to be a separate
division of the Bank  subsequent to the one-year  anniversary  hereof,  then the
Employee,  if deemed  appropriate  by the Board of Directors of the Bank,  shall
serve as President of the Bank's Howell, New Jersey division.  In the event that
during the Term hereof the  Employee is not serving as either the  President  of
the First State  Division or the President of the Howell,  New Jersey  division,
the parties shall use their  reasonable  best efforts to mutually agree upon the
Executive's  corporate  title.  The  Employee  shall be  based at First  State's
offices in Howell,  New Jersey,  or such other  place as may be mutually  agreed
upon by the Bank and the Employee.

(b) The  Employee  hereby  agrees  to  perform  such  duties,  to  fulfill  such
responsibilities and to serve the Bank faithfully, industriously and to the best
of his ability, and to devote his best efforts and substantially all of his full
working time and attention to performing his duties under this Agreement.



2.       Term.
         -----
                           This Agreement shall be effective as of January 14,
2000  and,  subject  to the  provisions  of  Section 4  hereof,  the  Employee's
employment  hereunder  shall  continue  until January 14, 2003 (such  three-year
period is hereinafter referred to as the "Term").



<PAGE>



3.       Compensation: Expenses: Benefits
         --------------------------------

                           (a)    As compensation for his services hereunder
in  whatever  capacity  rendered  the  Bank  shall  pay the  employee  a  salary
("Salary"),  payable monthly in advance or in more frequent  installments and at
such times during the month as is customary  with respect to senior  officers of
the Bank, at an annual rate of $350,000.  In addition, as of the date hereof, as
a further inducement to the Employee to enter into this Agreement,  the Bank has
paid  Employee  a  signing  bonus  of  $175,000  (receipt  of  which  is  hereby
acknowledged  by the  Employee).  Such  Salary  shall  continue  to be paid  and
provided,  regardless of any illness or  incapacity of the Employee,  until this
Agreement is terminated.  In addition to his base Salary,  the Employee shall be
entitled to receive such bonuses as may be  determined  from time to time by the
Bank's Board of Directors.

                           (b)    The Employee shall be entitled to
participate in all employee benefit plans generally available from time to time,
to the senior officers of the Bank (subject to the applicable provisions of such
plans)  including,  but not limited to,  Bancorp's  1998 Stock Option  Plan,  as
amended and restated  ("SOP"),  and its 1998  Recognition and Retention Plan, as
amended and restated  ("RRP"),  so long as such benefits  comply with applicable
law (including without limitation the Internal Revenue Code and ERISA).  Service
to First  State  Bancorp  ("FSB")  or First  State Bank  ("First  State") by the
Employee  prior to the date hereof shall be  recognized as service to Bancorp or
the Bank for  purposes  of  eligibility  to  participate  under  the sick  leave
policies,  paid vacation  policies,  and medical,  long term disability and life
insurance plans of Bancorp and the Bank.  However,  notwithstanding  anything to
the contrary herein,  for purposes of determining  eligibility to participate in
and the vesting of benefits  under  Bancorp's  Employee  Stock  Ownership  Plan,
401(k) Plan and defined  benefit  plan,  Bancorp  shall not  recognize  years of
service  with FSB and First  State and the  Employee  will be  treated as a "new
employee" of Bancorp and the Bank for purposes of  determining  eligibility  and
vesting under such plans.  Employee acknowledges that, as of the date hereof, he
has received  options to acquire  25,000 shares of Bancorp common stock pursuant
to the SOP (which shares have been registered  under the Securities Act of 1933,
as amended ("1933 Act"), pursuant to an effective registration statement on Form
S-8) and plan share awards for 25,000 shares of Bancorp common stock pursuant to
the RRP  (which  shares  will not be deemed to be  "restricted  securities,"  as
defined in Rule 144 of the rules and regulations under the 1933 Act).

                           (c)    The Employee shall be entitled to advances
or reimbursement  for his ordinary and necessary  business  expenses incurred in
the performance of his duties hereunder provided that his claims therefore shall
be supported by the  documentation  required by the Bank in accordance  with its
usual  practice.  In  addition,  the  Employee  shall be  entitled to receive an
automobile  allowance  of $750 per month plus the use of a Bank  credit card for
the purchase of gasoline in accordance with the Bank's normal practice.

                           (d)   The Employee shall be entitled to four weeks
of paid vacation per year.




<PAGE>

4.       Termination of Employment.
         --------------------------

                           If any of the following events occur before the
expiration of the Term, Employee's employment with the Bank shall terminate upon
the occurrence of such event:

                           (a)    Employee's death, or any illness, disability
or other incapacity that renders Employee physically unable regularly to perform
his duties  hereunder for a period in excess of ninety (90)  consecutive days or
more than one hundred  eighty  (180) days in any  consecutive  twelve (12) month
period.

                           (b)    Thirty (30) days after the Bank gives
written notice to Employee of his termination if said termination is without
cause.

                           (c)    At any time, by written notice from the Bank
to Employee, if said termination is for cause. For purposes of this Section 4(C)
and Section 4(b),  "cause" is defined as (i) the material  breach by Employee of
any  provision of this  Agreement  (which is not cured  within  thirty (30) days
after written notice to the Employee thereof),  (ii) Employee's  conviction of a
crime  constituting a felony or involving  moral  turpitude,  or (iii) an act by
Employee  of  material   dishonesty  or  fraud  in  connection  with  Employee's
performance of his duties to the Bank.


5.       Severance.
         ----------

                           (a)    In the event Employee's employment is
terminated pursuant to Section 4(c) above, Employee shall not be entitled to any
Salary  or other  severance  benefits  from the Bank  other  than  those  rights
accorded him by law.

                           (b)    In the event Employee's employment is
terminated  pursuant to Sections 4(a) or 4(b) above,  Employee (or his estate or
guardian)  shall be  entitled  to the  continued  receipt  of his Salary for the
remainder of the Term paid as and when otherwise due. The Employee shall also be
entitled to continued coverage under the Bank's group hospitalization and health
insurance  programs  for the  periods  specified  in COBRA  upon  payment by the
Employee of the requisite amounts thereunder.

                           (c)    In the event Employee's employment is
terminated  prior to January 14,  2005,  the Bank shall ensure that the Employee
continues  to become  fully  vested in the stock  options  and  Recognition  and
Retention Plan share awards granted as of the date hereof.


6.       Noncompetition.
         ---------------

                           (a)    At any time during the period of his
employment  hereunder and for an additional  period of two (2) years  thereafter
(such additional two-year period is hereinafter  referred to as the "Non-Compete
Period"), the Employee will not reveal, divulge or make known to any individual,
partnership, joint venture, corporation or other business entity (other than the
Bank or its  affiliates)  or use for the  Employee's  own account  any  customer
lists, trade secrets,


<PAGE>


formulae or any secret or any  confidential  information of any kind ("Protected
Information") used by the Bank or any of its commonly  controlled  affiliates in
the conduct of the Bank's  business  and made known to the Employee by reason of
the Employee's employment with the Bank or any of its affiliates (whether or not
with the  knowledge  or  permission  of the Bank and  whether or not  developed,
devised,  or  otherwise  created  in  whole  or in  part by the  efforts  of the
Employee);  provided,  that Protected  Information shall not include information
that shall  become  known to the public or the trade  without  violation of this
Section 6(a);  and provided,  further,  that the Employee shall not violate this
Section  6(a) if  Protected  Information  is  disclosed  by the  Employee at the
direction  of the Bank in  connection  with the  performance  of the  Employee's
duties or if the Employee is required to provide  Protected  Information  in any
legal proceeding or by order of any court.


                           (b)    During the period of his employment with the
Bank  hereunder  and during  the  Non-Compete  Period,  the  Employee  will not,
directly or indirectly, engage in the business of, or own or control an interest
in (except as a passive investor owning less than two percent (2%) of the equity
securities of a publicly owned company), or act as director, officer or employee
of, or consultant to, any individual, partnership, joint venture, corporation or
other business entity known to the Employee to be directly or indirectly engaged
in banking in any location  within a 10 mile radius of any branch  office of the
Bank located in New Jersey.  The time period during which the  restrictions  set
forth in this  paragraph  apply  shall be  extended by the length of time during
which the Employee violates these restrictions in any respect.

                           (c)    The Employee agrees that during the period
of his  employment  hereunder and during the  Non-Compete  Period,  the Employee
shall not knowingly employ or solicit, encourage or induce any person who at any
time within one year prior to the  Employee's  termination  of employment  shall
have been an employee of the Bank or any of its commonly controlled  affiliates,
to become  employed by or associated  with any  individual,  partnership,  joint
venture,  corporation  or other  business  entity  other than the Bank,  and the
Employee  shall not  knowingly  approach  any such  employee for such purpose or
authorize  or  knowingly  approve  the  taking  of  such  actions  by any  other
individual, partnership, joint venture, corporation, or other business entity or
knowingly assist any such individual, partnership, joint venture, corporation or
other business entity in taking such action.

                           (d)    In consideration of his duties and
obligations hereunder, the Bank shall pay to the Employee the amount of $350,000
on the first day of the Non-Compete Period.


7.       Acknowledgements.
         -----------------

                           (a)    The Employee acknowledges that the
provisions of Section 6 above are reasonable and necessary for the protection of
the Bank and that each provision,  and the period or periods of time, geographic
areas and types and scope of  restrictions  on the activities  specified  herein
are, and are intended to be  divisible.  In the event that any provision of this
Agreement,  including  any  sentence,  clause  or part  hereof,  shall be deemed
contrary to law or invalid or


<PAGE>


unenforceable in any respect by a court of competent jurisdiction, the remaining
provisions shall not be affected,  but shall,  subject to the discretion of such
court,  remain in full  force  and  effect  and any  invalid  and  unenforceable
provisions  shall be deemed,  without  further action on the part of the parties
hereto, modified, amended and limited to the extent necessary to render the same
valid and enforceable.

                           (b)    The Employee acknowledges that the Bank will
be  irrevocably  damaged  if  the  covenants  contained  in  Section  6 are  not
specifically enforced. Accordingly, the Employee agrees that, in addition to any
other  relief to which the Bank may be  entitled  the Bank shall be  entitled to
seek and obtain injunctive relief from a court of competent jurisdiction for the
purposes of  restraining  the Employee from any actual or  threatened  breach of
such covenants.


8.       Representations, Warranties, and Covenants of Employee.
         -------------------------------------------------------

                           The Employee represents, warrants, and covenants to
and  with  the  Bank  that  (a) he is not and  will  not  become  a party to any
agreement, contract or understanding,  whether employment or otherwise, and that
he is not subject to any order,  judgment or decree of any court or governmental
agency,  which would, in any way,  restrict or prohibit him from  undertaking or
performing  his  employment in accordance  with the terms and conditions of this
Agreement and (b) he is of sufficient  physical and mental health to fulfill his
duties, obligations, and responsibilities under the terms of this Agreement.




9.       Miscellaneous.
         --------------

                           (a)    Governing Law.  This Agreement shall be
                                  -------------
governed by and construed in  accordance  with the laws of the State of New York
applicable to agreements made and to be performed in that state.

                           (b)    Notices.  All notices, consents, and other
                                  --------
communications  under this Agreement  shall be in writing and shall be deemed to
have been duly given when (a)  delivered by hand (with receipt  confirmed),  (b)
sent by telex or telecopier  (with receipt  confirmed),  provided that a copy is
mailed by registered mail, return receipt requested, or (c) when received by the
addressee,  if sent by Express Mail, Federal Express,  or other express delivery
service  (receipt  requested),  in each case to the  appropriate  addresses  and
telecopier  number set forth below (or to such other  addresses  and  telecopier
numbers as a party may designate as to itself by notice to the other parties):






<PAGE>

         If to the Employee:

         Ira Hoberman


         with a copy to:
         Lowenstein Sandler PC
         Attn:  Peter H. Ehrenberg, Esq.
         65 Livingston Avenue
         Roseland, New Jersey 07068

         Telecopier No. (973) 597-2351



         If to the Bank:


         Staten Island Savings Bank
         c/o Harry P. Doherty, Chairman
         and Chief Executive Officer
         15 Beach Street
         Staten Island, New York 10304

         Telecopier No.: (718) 727-3794


         with a copy to:

         Elias, Matz, Tiernan & Herrick, L.L.P.
         Attn: Raymond A. Tiernan, Esq.
         734 15th Street, NW
         12th Floor
         Washington, DC 20005

         Telecopier No.: (202) 347-2172


         (c) Entire  Agreement;  Amendment.  This Agreement  shall supersede all
existing  agreements  between the Employee and the Bank relating to the terms of
his employment.  This Agreement may not be amended except by a written agreement
signed by both parties.

         (d) Waiver.  The failure of a party to insist upon strict  adherence to
any term of this  Agreement  on any  occasion  shall not be  considered a waiver
thereof or deprive  that party of the right  thereafter  to insist  upon  strict
adherence to that term or any other term of this Agreement.


<PAGE>


         (e) Assignment.  Subject to the limitations below, this Agreement shall
inure to the  benefit  of and be  binding  upon the  parties  hereto  and  their
respective heirs, representatives, successors, and assigns. This Agreement shall
not be assignable  by the Employee,  and shall be assignable by the Bank only to
any corporation  resulting from the  reorganization,  merger or consolidation of
Bancorp  or the Bank  with any other  corporation  or any  corporation  to which
Bancorp or the Bank may sell all or substantially all of its assets,



                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
  Employment Agreement as of the day and year first above written.


                                        STATEN ISLAND SAVINGS BANK




                                        By:        Harry P. Doherty
                                                   ----------------
                                                   Harry P. Doherty
                                                   Chairman of the Board
                                                   and Chief Executive Officer





                                                   /s/Ira Hoberman
                                                   ---------------
                                                   Ira Hoberman