Document:

Exhibit 10 (H)

                              AMENDED AND RESTATED
                           CHANGE-IN-CONTROL AGREEMENT
                                 FRANK A. KISSEL

            THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), is
made as of this 11 day of December, 2003, among PEAPACK-GLADSTONE BANK ("Bank"),
a New Jersey state banking association with its principal office at 190 Main
Street, Gladstone, New Jersey 07934, PEAPACK-GLADSTONE FINANCIAL CORPORATION
("Peapack"), a New Jersey Corporation which maintains its principal office at
158 Route 206 North, Gladstone, New Jersey 07934 (Peapack and the Bank
collectively are the "Company") and Frank A. Kissel (the "Executive"). This
Agreement amends and restates in its entirety the Employment Agreement dated as
of January 1, 1998 by and among the Executive, Peapack, and the Bank.

                                   BACKGROUND

            WHEREAS, the Executive has been continuously employed by the Bank
for many years;

            WHEREAS, the Executive throughout his tenure has worked diligently
in his position in the business of the Bank and Peapack;

            WHEREAS, the Board of Directors of the Bank and Peapack believe that
the future services of the Executive are of great value to the Bank and Peapack
and that it is important for the growth and development of the Bank that the
Executive continue in his position;

            WHEREAS, if the Company receives any proposal from a third person
concerning a possible business combination with, or acquisition of equities
securities of, the Company, the Board of Directors of the Company (the "Board")
believes it is imperative that the Company and the Board be able to rely upon
the Executive to continue in his position, and that they be able to receive and
rely upon his

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advice, if they request it, as to the best interests of the Company and its
shareholders, without concern that the Executive might be distracted by the
personal uncertainties and risks created by such a proposal;

            WHEREAS, to achieve that goal, and to retain the Executive's
services prior to any such activity, the Board of Directors and the Executive
have agreed to enter into this Agreement to govern the Executive's termination
benefits in the event of a Change in Control of the Company, as hereinafter
defined.

            NOW, THEREFORE, to assure the Company that it will have the
continued dedication of the Executive and the availability of his advice and
counsel notwithstanding the possibility, threat or occurrence of a bid to take
over control of the Company, and to induce the Executive to remain in the employ
of the Company, and for other good and valuable consideration, the Company and
the Executive, each intending to be legally bound hereby agree as follows:

            Definitions

                  a. Cause. For purposes of this Agreement "Cause" with respect
                  to the termination by the Company of Executive's employment
                  shall mean (i) willful and continued failure by the Executive
                  to perform his duties for the Company under this Agreement
                  after at least one warning in writing from the Company's Board
                  of Directors identifying specifically any such failure; (ii)
                  the willful engaging by the Executive in misconduct which
                  causes material injury to the Company as specified in a
                  written notice to the Executive from the Board of Directors;
                  or (iii) conviction of a crime, other than a traffic
                  violation, habitual drunkenness, drug abuse, or excessive
                  absenteeism other than for illness, after a warning (with
                  respect to drunkenness or absenteeism only) in writing from
                  the Board of Directors to refrain from such behavior. No act
                  or failure to act on the part of the Executive shall be
                  considered willful unless done, or omitted to be done, by the

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                  Executive not in good faith and without reasonable belief that
                  the action or omission was in the best interest of the
                  Company.

                  b. Change in Control. "Change in Control" means any of the
                  following events: (i) when Peapack or a Subsidiary acquires
                  actual knowledge that any person (as such term is used in
                  Sections 13(d) and 14(d)(2) of the Exchange Act), other than
                  an affiliate of Peapack or a Subsidiary or an employee benefit
                  plan established or maintained by Peapack, a Subsidiary or any
                  of their respective affiliates, is or becomes the beneficial
                  owner (as defined in Rule 13d-3 of the Exchange Act) directly
                  or indirectly, of securities of Peapack representing more than
                  twenty-five percent (25%) of the combined voting power of
                  Peapack's then outstanding securities (a "Control Person"),
                  (ii) upon the first purchase of Peapack's common stock
                  pursuant to a tender or exchange offer (other than a tender or
                  exchange offer made by Peapack, a Subsidiary or an employee
                  benefit plan established or maintained by Peapack, a
                  Subsidiary or any of their respective affiliates), (iii) upon
                  the approval by Peapack's stockholders of (A) a merger or
                  consolidation of Peapack with or into another corporation
                  (other than a merger or consolidation which is approved by at
                  least two-thirds of the Continuing Directors (as hereinafter
                  defined) and the definitive agreement for which provides that
                  at least two-thirds of the directors of the surviving or
                  resulting corporation immediately after the transaction are
                  Continuing Directors (a "Non-Control Transaction")), (B) a
                  sale or disposition of all or substantially all of Peapack's
                  assets or (C) a plan of liquidation or dissolution of Peapack,
                  (iv) if during any period of two (2) consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board (the "Continuing Directors") cease for any reason to
                  constitute at least two-thirds thereof or, following a

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                  Non-Control Transaction, two-thirds of the board of directors
                  of the surviving or resulting corporation; provided that any
                  individual whose election or nomination for election as a
                  member of the Board (or, following a Non-Control Transaction,
                  the board of directors of the surviving or resulting
                  corporation) was approved by a vote of at least two-thirds of
                  the Continuing Directors then in office shall be considered a
                  Continuing Director, or (v) upon a sale of (A) common stock of
                  the Bank if after such sale any person (as such term is used
                  in Section 13(d) and 14(d)(2) of the Exchange Act) other than
                  Peapack, an employee benefit plan established or maintained by
                  Peapack or a Subsidiary, or an affiliate of Peapack or a
                  Subsidiary, owns a majority of the Bank's common stock or (B)
                  all or substantially all of the Bank's assets (other than in
                  the ordinary course of business). No person shall be
                  considered a Control Person for purposes of clause (i) above
                  if (A) such person is or becomes the beneficial owner,
                  directly or indirectly, of more than ten percent (10%) but
                  less than twenty-five percent (25%) of the combined voting
                  power of Peapack's then outstanding securities if the
                  acquisition of all voting securities in excess of ten percent
                  (10%) was approved in advance by a majority of the Continuing
                  Directors then in office or (B) such person acquires in excess
                  of ten percent (10%) of the combined voting power of Peapack's
                  then outstanding voting securities in violation of law and by
                  order of a court of competent jurisdiction, settlement or
                  otherwise, disposes or is required to dispose of all
                  securities acquired in violation of law.

                  c. Contract Period. "Contract Period" shall mean the period
                  commencing the day immediately preceding a Change in Control
                  and ending on the earlier of (i) the third anniversary of the
                  Change in Control or (ii) the death of the Executive. For the
                  purpose

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                  of this Agreement, a Change in Control shall be deemed to have
                  occurred at the date specified in the definition of
                  Change-in-Control.

                  d. Exchange Act. "Exchange Act" means the Securities Exchange
                  Act of 1934, as amended.

                  e. Good Reason. When used with reference to a voluntary
                  termination by Executive of his employment with the Company,
                  "Good Reason" shall mean any of the following, if taken
                  without Executive's express written consent:

                        (1) The assignment to Executive of any duties
                        inconsistent with, or the reduction of powers or
                        functions associated with, Executive's position, title,
                        duties, responsibilities and status with the Company
                        immediately prior to a Change in Control; any removal of
                        Executive from, or any failure to re-elect Executive to,
                        any position(s) or office(s) Executive held immediately
                        prior to such Change in Control. A change in title or
                        positions resulting merely from a merger of the Company
                        into or with another bank or company which does not
                        downgrade in any way the Executive's powers, duties and
                        responsibilities shall not meet the requirements of this
                        paragraph;

                        (2) A reduction by the Company in Executive's annual
                        base compensation as in effect immediately prior to a
                        Change in Control or the failure to award Executive
                        annual increases in accordance herewith;

                        (3) A failure by the Company to continue any bonus plan
                        in which Executive participated immediately prior to the
                        Change in control or a failure by the Company to
                        continue Executive as a participant in such plan on at
                        least the same basis as Executive participated in such
                        plan prior to the Change in Control;

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                        (4) The Company's transfer of Executive to another
                        geographic location outside of New Jersey or more than
                        25 miles from his present office location, except for
                        required travel on the Company's business to an extent
                        substantially consistent with Executive's business
                        travel obligations immediately prior to such Change in
                        Control;

                        (5) The failure by the Company to continue in effect any
                        employee benefit plan, program or arrangement
                        (including, without limitation the Company's retirement
                        plan, benefit equalization plan, life insurance plan,
                        health and accident plan, disability plan, deferred
                        compensation plan or long term stock incentive plan) in
                        which Executive is participating immediately prior to a
                        Change in Control (except that the Company may institute
                        or continue plans, programs or arrangements providing
                        Executive with substantially similar benefits); the
                        taking of any action by the Company which would
                        adversely affect Executive's participation in or
                        materially reduce Executive's benefits under, any of
                        such plans, programs or arrangements; the failure to
                        continue, or the taking of any action which would
                        deprive Executive, of any material fringe benefit
                        enjoyed by Executive immediately prior to such Change in
                        Control; or the failure by the Company to provide
                        Executive with the number of paid vacation days to which
                        Executive was entitled immediately prior to such Change
                        in Control;

                        (6) The failure by the Company to obtain an assumption
                        in writing of the obligations of the Company to perform
                        this Agreement by any successor to the Company and to
                        provide such assumption to the Executive prior to any
                        Change in Control; or

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                        (7) Any purported termination of Executive's employment
                        by the Company during the term of this Agreement which
                        is not effected pursuant to all of the requirements of
                        this Agreement; and, for purposes of this Agreement, no
                        such purported termination shall be effective.

                  f. Subsidiary. "Subsidiary" means any corporation in an
                  unbroken chain of corporations, beginning with Peapack, if
                  each of the corporations other than the last corporation in
                  the unbroken chain owns stock possessing 50% or more of the
                  total combined voting power of all classes of stock in one of
                  the other corporations in such chain.

            2. Employment. The Company hereby agrees to employ the Executive,
            and the Executive hereby accepts employment, during the Contract
            Period upon the terms and conditions set forth herein.

            3. Position. During the Contract Period the Executive shall be
            employed as Chairman of the Board of Directors & CEO of Peapack and
            the Bank, or such other corporate or divisional profit center as
            shall then be the principal successor to the business, assets and
            properties of the Company, with substantially the same title and the
            same duties and responsibilities as before the Change in Control.
            The Executive shall devote his full time and attention to the
            business of the Company, and shall not during the Contract Period be
            engaged in any other business activity. This paragraph shall not be
            construed as preventing the Executive from managing any investments
            of his which do not require any service on his part in the operation
            of such investments.

            4. Cash Compensation. The Company shall pay to the Executive
            compensation for his services during the Contract Period as follows:

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                  a. Base Salary. A base annual salary equal to the annual
                  salary in effect as of the Change in Control. The annual
                  salary shall be payable in installments in accordance with the
                  Company's usual payroll method.

                  b. Annual Bonus. An annual cash bonus equal to at least the
                  average of the bonuses paid to the Executive in the three
                  years prior to the Change in Control. The bonus shall be
                  payable at the time and in the manner which the Company paid
                  such bonuses prior to the Change in Control.

                  c. Annual Review. The Board of Directors of the Company during
                  the Contract Period shall review annually, or at more frequent
                  intervals which the Board determines is appropriate, the
                  Executive's compensation and shall award him additional
                  compensation to reflect the Executive's performance, the
                  performance of the Company and competitive compensation
                  levels, all as determined in the discretion of the Board of
                  Directors.

            5. Expenses and Fringe Benefits.

                  a. Expenses. During the Contract Period, the Executive shall
                  be entitled to reimbursement for all business expenses
                  incurred by him with respect to the business of the Company in
                  the same manner and to the same extent as such expenses were
                  previously reimbursed to him immediately prior to the Change
                  in Control.

                  b. Supplemental Retirement Plan. During the Contract Period,
                  if the Executive was entitled to benefits under any
                  supplemental retirement plan prior to the Change in Control,
                  the Executive shall be entitled to continued benefits under
                  such plan after the Change in Control and such plan may not be
                  modified to reduce or eliminate such benefits during the
                  Contract Period.

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                  c. Club Membership and Automobile. If prior to the Change in
                  Control, the Executive was entitled to membership in a country
                  club and/or the use of an automobile, he shall be entitled to
                  the same membership and/or use of an automobile at least
                  comparable to the automobile provided to him prior to the
                  Change in Control.

                  d. Other Benefits. The Executive also shall be entitled to
                  vacations and sick days, in accordance with the practices and
                  procedures of the Company, as such existed immediately prior
                  to the Change in Control. During the Contract Period, the
                  Executive also shall be entitled to hospital, health, medical
                  and life insurance, and any other benefits enjoyed, from time
                  to time, by senior officers of the Company, all upon terms as
                  favorable as those enjoyed by other senior officers of the
                  Company. Notwithstanding anything in this paragraph 5(d) to
                  the contrary, if the Company adopts any change in the benefits
                  provided for senior officers of the Company, and such policy
                  is uniformly applied to all officers of the Company (and any
                  successor or acquiror of the Company, if any), including the
                  chief executive officer of such entities, then no such change
                  shall be deemed to be contrary to this paragraph.

            6. Termination for Cause. The Company shall have the right to
            terminate the Executive for Cause, upon written notice to him of the
            termination which notice shall specify the reasons for the
            termination. In the event of termination for Cause the Executive
            shall not be entitled to any further benefits under this Agreement.

            7. Disability. During the Contract Period if the Executive becomes
            permanently disabled, or is unable to perform his duties hereunder
            for 4 consecutive months in any 12 month period, the Company may
            terminate the employment of the Executive. In such event, the
            Executive shall not be entitled to any further benefits under this
            Agreement.

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            8. Death Benefits. Upon the Executive's death during the Contract
            Period, his estate shall not be entitled to any further benefits
            under this Agreement.

            9. Termination Without Cause or Resignation for Good Reason. The
            Company may terminate the Executive without Cause during the
            Contract Period by written notice to the Executive providing four
            weeks notice. The Executive may resign for Good Reason during the
            Contract Period upon four weeks' written notice to the Company
            specifying facts and circumstances claimed to support the Good
            Reason. The Executive shall be entitled to give a Notice of
            Termination that his or her employment is being terminated for Good
            Reason at any time during the Contract Period, not later than twelve
            months after any occurrence of an event stated to constitute Good
            Reason. If the Company terminates the Executive's employment during
            the Contract Period without Cause or if the Executive Resigns for
            Good Reason, the Company shall, subject to Section 12 hereof:

            (a) Within 20 business days of the termination of employment pay the
            Executive a lump sum severance payment in an amount equal to three
            (3.0) times the highest annual cash compensation, consisting solely
            of salary and bonus, as well as any 401(k) deferral, paid to the
            Executive during any calendar year in each of the three calendar
            years immediately prior to the Change in Control, along with any
            Gross-Up Payment due under Section 12 hereof for the calendar year
            of the termination; and

            (b) Continue to provide the Executive during the remainder of the
            Contract Period with health, hospitalization and medical insurance,
            as were provided at the time of the termination of his employment
            with the Company, at the Company's cost (subject to standard
            deductibles and co-pays, and the Executive's continuing payment of
            his part of the premium for family coverage, if applicable).

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            The Executive shall not have a duty to mitigate the damages suffered
by him in connection with the termination by the Company of his employment
without Cause or a resignation for Good Reason during the Contract Period. If
the Company fails to pay the Executive the lump sum amount due him hereunder or
the Gross-Up Payment due under Section 12 hereof, or to provide him with the
health, hospitalization and medical insurance benefits due under this section,
the Executive, after giving 10 days' written notice to the Company identifying
the Company's failure, shall be entitled to recover from the Company all of his
reasonable legal fees and expenses incurred in connection with his enforcement
against the Company of the terms of this Agreement. The Executive shall be
denied payment of his legal fees and expenses only if a court finds that the
Executive sought payment of such fees without reasonable cause and not in good
faith.

            10. Resignation Without Good Reason. The Executive shall be entitled
            to resign from the employment of the Company at any time during the
            Contract Period without Good Reason, but upon such resignation the
            Executive shall not be entitled to any additional compensation for
            the time after which he ceases to be employed by the Company, and
            shall not be entitled to any of the other benefits provided
            hereunder. No such resignation shall be effective unless in writing
            with four weeks' notice thereof.

            11. Non-Disclosure of Confidential Information.

                  a. Non-Disclosure of Confidential Information. Except in the
                  course of his employment with the Company and in the pursuit
                  of the business of the Company or any of its subsidiaries or
                  affiliates, the Executive shall not, at any time during or
                  following the Contract Period, disclose or use, any
                  confidential information or proprietary data of the Company or
                  any of its subsidiaries or affiliates. The Executive

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                  agrees that, among other things, all information concerning
                  the identity of and the Company's relations with its customers
                  is confidential information.

                  b. Specific Performance. Executive agrees that the Company
                  does not have an adequate remedy at law for the breach of this
                  section and agrees that he shall be subject to injunctive
                  relief and equitable remedies as a result of the breach of
                  this section. The invalidity or unenforceability of any
                  provision of this Agreement shall not affect the force and
                  effect of the remaining valid portions.

                  c. Survival. This section shall survive the termination of the
                  Executive's employment hereunder and the expiration of this
                  Agreement.

            12. Gross-Up for Taxes.

                  a. Additional Payments. If, for any taxable year, Executive
                  shall be liable for the payment of an excise tax under Section
                  4999 or other substitute or similar tax assessment (the
                  "Excise Tax") of the Internal Revenue Code of 1986, as amended
                  (the "Code"), including the corresponding provisions of any
                  succeeding law, with respect to any payments under this
                  Section 12 or any payments and/or benefits under this
                  Agreement or under any benefit plan of the Company applicable
                  to Executive individually or generally to executives or
                  employees of the Company, then, the Company shall pay to the
                  Executive, subject to Section 15 hereof by paying the
                  withholding for the Executive, an additional amount (the
                  "Gross-Up Payment") such that the net amount retained by the
                  Executive, after deduction of any Excise Tax on such payments
                  and benefits and any federal, state and local income tax and
                  Excise Tax upon payments provided for in this Section 12,
                  shall be equal to the payments due to the Executive hereunder
                  and the payments and/or

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                  benefits due to the Executive under any benefit plan of the
                  Company. Each Gross-Up Payment shall be made in good funds
                  upon the later of (i) five (5) days after the date the
                  Executive notifies the Company or the Company receives notice
                  from the certified public accounting firm of its need to make
                  such Gross-Up Payment, or (ii) the date of any payment causing
                  the liability for such Excise Tax. The amount of any Gross-Up
                  Payment under this section shall be computed by a nationally
                  recognized certified public accounting firm designated jointly
                  by the Company and the Executive. The cost of such services by
                  the accounting firm shall be paid by the Company. If the
                  Company and the Executive are unable to designate jointly the
                  accounting firm, then the firm shall be the accounting firm
                  used by the Company immediately prior to the Change in
                  Control.

                  b. IRS Disputed Claims. The Executive shall notify the company
                  in writing of any claim by the Internal Revenue Service
                  ("IRS") that, if successful, would require the payment by the
                  Company of a Gross-Up Payment in addition to that payment
                  previously paid by the Company pursuant to this section. Such
                  notification shall be given an soon as practicable but no
                  later than fifteen (15) business days after the Executive is
                  informed in writing of such claim and shall apprise the
                  Company of the nature of such claim, the date on which such
                  claim is requested to be paid, and attach a copy of the IRS
                  notice. The Executive shall not pay such claim prior to the
                  expiration of the thirty (30) day period following the date on
                  which the Executive gives such notice to the Company (or such
                  shorter period ending on the date that any payment of taxes
                  with respect to such claim is

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                  due). If the Company notifies the Executive in writing prior
                  to the expiration of such period that it desires to contest
                  such claim, the Executive shall:

                        (i) Give the Company any information reasonably
                        requested by the Company relating to such claim;

                        (ii) Take such action in connection with contesting such
                        claim as the Company shall reasonably request in writing
                        from time to time, including, without limitation,
                        accepting legal representation with respect to such
                        claim by an attorney reasonably selected by the Company;

                        (iii) Cooperate with the Company in good faith in order
                        effectively to contest such claim; and

                        (iv) Permit the Company to participate in any
                        proceedings relating to such claim; provided, however
                        that the Company shall pay directly all costs and
                        expenses (including legal and accounting fees, as well
                        as other expenses and any additional interest and
                        penalties) incurred by the Executive and the Company in
                        connection with an IRS levy, contest or claim and
                        provided further that the Company shall not take any
                        action or fail to make any Gross-Up Payment so as to
                        cause the assessment of any IRS levy and the Company
                        shall cause any levy so assessed to be immediately
                        released by payment of the Gross-Up Amount, together
                        with all costs, interest and penalties.

            13. Term and Effect Prior to Change in Control.

                  a. Term. Except as otherwise provided for hereunder, this
                  Agreement shall commence on the date hereof and shall remain
                  in effect for a period of 3 years from the

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                  date hereof (the "Initial Term") or until the end of the
                  Contract Period, whichever is later. The Initial Term shall be
                  automatically extended for an additional one year period on
                  the anniversary date hereof (so that the Initial Term is
                  always 3 years) unless, prior to a Change in Control, the
                  Chairman of the Board of Directors of Peapack notifies the
                  Executive in writing at any time that the Contract is not so
                  extended, in which case the Initial Term shall end upon the
                  later of (i) 3 years after the date hereof, or (ii) 2 years
                  after the date of such written notice.

                  b. No Effect Prior to Change in Control. This Agreement shall
                  not effect any rights of the Company to terminate the
                  Executive prior to a Change in Control or any rights of the
                  Executive granted in any other agreement or contract or plan
                  with the Company. The rights, duties and benefits provided
                  hereunder shall only become effective upon and after a Change
                  in Control. If the full-time employment of the Executive by
                  the Company is ended for any reason prior to a Change in
                  Control, this Agreement shall thereafter be of no further
                  force and effect.

            14. Severance Compensation and Benefits Not in Derogation of Other
            Benefits. Anything to the contrary herein contained notwithstanding,
            the payment or obligation to pay any monies, or granting of any
            benefits, rights or privileges to Executive as provided in this
            Agreement shall not be in lieu or derogation of the rights and
            privileges that the Executive now has or will have under any plans
            or programs of or agreements with the Company, except that if the
            Executive received any payment hereunder, he shall not be entitled
            to any payment under the Company's severance policies for officers
            and employees.

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            15. Payroll and Withholding Taxes. All payments to be made or
            benefits to be provided hereunder by the Company shall be subject to
            applicable federal and state payroll or withholding taxes. Any
            Gross-Up Payment shall be made in the form of withholding taxes and
            shall not be paid to the Executive, but shall be sent to the IRS in
            the ordinary course of the Company's payroll withholding.

            16. Miscellaneous. This Agreement is the joint and several
            obligation of the Bank and Peapack. The terms of this Agreement
            shall be governed by, and interpreted and construed in accordance
            with the provisions of, the laws of New Jersey. This Agreement
            supersedes all prior agreements and understandings with respect to
            the matters covered hereby, including expressly any prior agreement
            with the Company concerning change-in-control benefits. The parties
            hereto expressly agree that the Severance Agreement between the Bank
            and the Executive dated January 27, 1997, is hereby terminated in
            its entirety. The amendment or termination of this Agreement may be
            made only in a writing executed by the Company and the Executive,
            and no amendment or termination of this Agreement shall be effective
            unless and until made in such a writing. This Agreement shall be
            binding upon any successor (whether direct or indirect, by purchase,
            merge, consolidation, liquidation or otherwise) to all or
            substantially all of the assets of the Company. This Agreement is
            personal to the Executive and the Executive may not assign any of
            his rights or duties hereunder but this Agreement shall be
            enforceable by the Executive's legal representatives, executors or
            administrators. This Agreement may be executed in two or more
            counterparts, each of which shall be deemed an original, and it
            shall not be necessary in making proof of this Agreement to produce
            or account for more than one such counterpart.

                           (signature page to follow)

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            IN WITNESS WHEREOF, Peapack-Gladstone Bank and Peapack-Gladstone
Financial Corporation each have caused this Agreement to be signed by their duly
authorized representatives pursuant to the authority of their Boards of
Directors, and the Executive has personally executed this Agreement, all as of
the day and year first written above.

ATTEST:                                 PEAPACK-GLADSTONE
                                        FINANCIAL CORPORATION

ANTOINETTE ROSELL                       By: F. DUFFIELD MEYERCORD
-----------------                           ---------------------
Antoinette Rosell, Secretary            F. Duffield Meyercord, Chairman,
                                        Compensation Committee

ATTEST:                                 PEAPACK-GLADSTONE BANK

ANTOINETTE ROSELL                       By: F. DUFFIELD MEYERCORD
-----------------                           ---------------------
Antoinette Rosell, Secretary            F. Duffield Meyercord, Chairman,
                                        Compensation Committee

WITNESS:

ANTOINETTE ROSELL                       FRANK A. KISSEL
-----------------                       ---------------------
Antoinette Rosell                       Frank A. Kissel, Executive

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                              AMENDED AND RESTATED
                           CHANGE-IN-CONTROL AGREEMENT
                                ROBERT M. ROGERS

            THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), is
made as of this 11th day of December, 2003, among PEAPACK-GLADSTONE BANK
("Bank"), a New Jersey state banking association with its principal office at
190 Main Street, Gladstone, New Jersey 07934, PEAPACK-GLADSTONE FINANCIAL
CORPORATION ("Peapack"), a New Jersey Corporation which maintains its principal
office at 158 Route 206 North, Gladstone, New Jersey 07934 (Peapack and the Bank
collectively are the "Company") and Robert M. Rogers (the "Executive"). This
Agreement amends and restates in its entirety the Employment Agreement dated as
of January 1, 1998 by and among the Executive, Peapack, and the Bank.

                                   BACKGROUND

            WHEREAS, the Executive has been continuously employed by the Bank
for many years;

            WHEREAS, the Executive throughout his tenure has worked diligently
in his position in the business of the Bank and Peapack;

            WHEREAS, the Board of Directors of the Bank and Peapack believe that
the future services of the Executive are of great value to the Bank and Peapack
and that it is important for the growth and development of the Bank that the
Executive continue in his position;

            WHEREAS, if the Company receives any proposal from a third person
concerning a possible business combination with, or acquisition of equities
securities of, the Company, the Board of Directors of the Company (the "Board")
believes it is imperative that the Company and the Board be able to rely upon
the Executive to continue in his position, and that they be able to receive and
rely upon his advice, if they request it, as to the best interests of the
Company and its shareholders, without concern that the Executive might be
distracted by the personal uncertainties and risks created by such a proposal;

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            WHEREAS, to achieve that goal, and to retain the Executive's
services prior to any such activity, the Board of Directors and the Executive
have agreed to enter into this Agreement to govern the Executive's termination
benefits in the event of a Change in Control of the Company, as hereinafter
defined.

            NOW, THEREFORE, to assure the Company that it will have the
continued dedication of the Executive and the availability of his advice and
counsel notwithstanding the possibility, threat or occurrence of a bid to take
over control of the Company, and to induce the Executive to remain in the employ
of the Company, and for other good and valuable consideration, the Company and
the Executive, each intending to be legally bound hereby agree as follows:

            Definitions

                  a. Cause. For purposes of this Agreement "Cause" with respect
                  to the termination by the Company of Executive's employment
                  shall mean (i) willful and continued failure by the Executive
                  to perform his duties for the Company under this Agreement
                  after at least one warning in writing from the Company's Board
                  of Directors identifying specifically any such failure; (ii)
                  the willful engaging by the Executive in misconduct which
                  causes material injury to the Company as specified in a
                  written notice to the Executive from the Board of Directors;
                  or (iii) conviction of a crime, other than a traffic
                  violation, habitual drunkenness, drug abuse, or excessive
                  absenteeism other than for illness, after a warning (with
                  respect to drunkenness or absenteeism only) in writing from
                  the Board of Directors to refrain from such behavior. No act
                  or failure to act on the part of the Executive shall be
                  considered willful unless done, or omitted to be done, by the
                  Executive not in good faith and without reasonable belief that
                  the action or omission was in the best interest of the
                  Company.

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<PAGE>

                  b. Change in Control. "Change in Control" means any of the
                  following events: (i) when Peapack or a Subsidiary acquires
                  actual knowledge that any person (as such term is used in
                  Sections 13(d) and 14(d)(2) of the Exchange Act), other than
                  an affiliate of Peapack or a Subsidiary or an employee benefit
                  plan established or maintained by Peapack, a Subsidiary or any
                  of their respective affiliates, is or becomes the beneficial
                  owner (as defined in Rule 13d-3 of the Exchange Act) directly
                  or indirectly, of securities of Peapack representing more than
                  twenty-five percent (25%) of the combined voting power of
                  Peapack's then outstanding securities (a "Control Person"),
                  (ii) upon the first purchase of Peapack's common stock
                  pursuant to a tender or exchange offer (other than a tender or
                  exchange offer made by Peapack, a Subsidiary or an employee
                  benefit plan established or maintained by Peapack, a
                  Subsidiary or any of their respective affiliates), (iii) upon
                  the approval by Peapack's stockholders of (A) a merger or
                  consolidation of Peapack with or into another corporation
                  (other than a merger or consolidation which is approved by at
                  least two-thirds of the Continuing Directors (as hereinafter
                  defined) and the definitive agreement for which provides that
                  at least two-thirds of the directors of the surviving or
                  resulting corporation immediately after the transaction are
                  Continuing Directors (a "Non-Control Transaction")), (B) a
                  sale or disposition of all or substantially all of Peapack's
                  assets or (C) a plan of liquidation or dissolution of Peapack,
                  (iv) if during any period of two (2) consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board (the "Continuing Directors") cease for any reason to
                  constitute at least two-thirds thereof or, following a
                  Non-Control Transaction, two-thirds of the board of directors
                  of the surviving or resulting corporation; provided that any
                  individual whose election or nomination for

                                       58
<PAGE>

                  election as a member of the Board (or, following a Non-Control
                  Transaction, the board of directors of the surviving or
                  resulting corporation) was approved by a vote of at least
                  two-thirds of the Continuing Directors then in office shall be
                  considered a Continuing Director, or (v) upon a sale of (A)
                  common stock of the Bank if after such sale any person (as
                  such term is used in Section 13(d) and 14(d)(2) of the
                  Exchange Act) other than Peapack, an employee benefit plan
                  established or maintained by Peapack or a Subsidiary, or an
                  affiliate of Peapack or a Subsidiary, owns a majority of the
                  Bank's common stock or (B) all or substantially all of the
                  Bank's assets (other than in the ordinary course of business).
                  No person shall be considered a Control Person for purposes of
                  clause (i) above if (A) such person is or becomes the
                  beneficial owner, directly or indirectly, of more than ten
                  percent (10%) but less than twenty-five percent (25%) of the
                  combined voting power of Peapack's then outstanding securities
                  if the acquisition of all voting securities in excess of ten
                  percent (10%) was approved in advance by a majority of the
                  Continuing Directors then in office or (B) such person
                  acquires in excess of ten percent (10%) of the combined voting
                  power of Peapack's then outstanding voting securities in
                  violation of law and by order of a court of competent
                  jurisdiction, settlement or otherwise, disposes or is required
                  to dispose of all securities acquired in violation of law.

                  c. Contract Period. "Contract Period" shall mean the period
                  commencing the day immediately preceding a Change in Control
                  and ending on the earlier of (i) the third anniversary of the
                  Change in Control or (ii) the death of the Executive. For the
                  purpose of this Agreement, a Change in Control shall be deemed
                  to have occurred at the date specified in the definition of
                  Change-in-Control.

                                       59
<PAGE>

                  d. Exchange Act. "Exchange Act" means the Securities Exchange
                  Act of 1934, as amended.

                  e. Good Reason. When used with reference to a voluntary
                  termination by Executive of his employment with the Company,
                  "Good Reason" shall mean any of the following, if taken
                  without Executive's express written consent:

                        (1) The assignment to Executive of any duties
                        inconsistent with, or the reduction of powers or
                        functions associated with, Executive's position, title,
                        duties, responsibilities and status with the Company
                        immediately prior to a Change in Control; any removal of
                        Executive from, or any failure to re-elect Executive to,
                        any position(s) or office(s) Executive held immediately
                        prior to such Change in Control. A change in title or
                        positions resulting merely from a merger of the Company
                        into or with another bank or company which does not
                        downgrade in any way the Executive's powers, duties and
                        responsibilities shall not meet the requirements of this
                        paragraph;

                        (2) A reduction by the Company in Executive's annual
                        base compensation as in effect immediately prior to a
                        Change in Control or the failure to award Executive
                        annual increases in accordance herewith;

                        (3) A failure by the Company to continue any bonus plan
                        in which Executive participated immediately prior to the
                        Change in control or a failure by the Company to
                        continue Executive as a participant in such plan on at
                        least the same basis as Executive participated in such
                        plan prior to the Change in Control;

                        (4) The Company's transfer of Executive to another
                        geographic location outside of New Jersey or more than
                        25 miles from his present office location, except

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<PAGE>

                        for required travel on the Company's business to an
                        extent substantially consistent with Executive's
                        business travel obligations immediately prior to such
                        Change in Control;

                        (5) The failure by the Company to continue in effect any
                        employee benefit plan, program or arrangement
                        (including, without limitation the Company's retirement
                        plan, benefit equalization plan, life insurance plan,
                        health and accident plan, disability plan, deferred
                        compensation plan or long term stock incentive plan) in
                        which Executive is participating immediately prior to a
                        Change in Control (except that the Company may institute
                        or continue plans, programs or arrangements providing
                        Executive with substantially similar benefits); the
                        taking of any action by the Company which would
                        adversely affect Executive's participation in or
                        materially reduce Executive's benefits under, any of
                        such plans, programs or arrangements; the failure to
                        continue, or the taking of any action which would
                        deprive Executive, of any material fringe benefit
                        enjoyed by Executive immediately prior to such Change in
                        Control; or the failure by the Company to provide
                        Executive with the number of paid vacation days to which
                        Executive was entitled immediately prior to such Change
                        in Control;

                        (6) The failure by the Company to obtain an assumption
                        in writing of the obligations of the Company to perform
                        this Agreement by any successor to the Company and to
                        provide such assumption to the Executive prior to any
                        Change in Control; or

                        (7) Any purported termination of Executive's employment
                        by the Company during the term of this Agreement which
                        is not effected pursuant to all of the

                                       61
<PAGE>

                        requirements of this Agreement; and, for purposes of
                        this Agreement, no such purported termination shall be
                        effective.

                  f. Subsidiary. "Subsidiary" means any corporation in an
                  unbroken chain of corporations, beginning with Peapack, if
                  each of the corporations other than the last corporation in
                  the unbroken chain owns stock possessing 50% or more of the
                  total combined voting power of all classes of stock in one of
                  the other corporations in such chain.

            17. Employment. The Company hereby agrees to employ the Executive,
            and the Executive hereby accepts employment, during the Contract
            Period upon the terms and conditions set forth herein.

            18. Position. During the Contract Period the Executive shall be
            employed as President & COO of Peapack and the Bank, or such other
            corporate or divisional profit center as shall then be the principal
            successor to the business, assets and properties of the Company,
            with substantially the same title and the same duties and
            responsibilities as before the Change in Control. The Executive
            shall devote his full time and attention to the business of the
            Company, and shall not during the Contract Period be engaged in any
            other business activity. This paragraph shall not be construed as
            preventing the Executive from managing any investments of his which
            do not require any service on his part in the operation of such
            investments.

            19. Cash Compensation. The Company shall pay to the Executive
            compensation for his services during the Contract Period as follows:

                                       62
<PAGE>

                  a. Base Salary. A base annual salary equal to the annual
                  salary in effect as of the Change in Control. The annual
                  salary shall be payable in installments in accordance with the
                  Company's usual payroll method.

                  b. Annual Bonus. An annual cash bonus equal to at least the
                  average of the bonuses paid to the Executive in the three
                  years prior to the Change in Control. The bonus shall be
                  payable at the time and in the manner which the Company paid
                  such bonuses prior to the Change in Control.

                  c. Annual Review. The Board of Directors of the Company during
                  the Contract Period shall review annually, or at more frequent
                  intervals which the Board determines is appropriate, the
                  Executive's compensation and shall award him additional
                  compensation to reflect the Executive's performance, the
                  performance of the Company and competitive compensation
                  levels, all as determined in the discretion of the Board of
                  Directors.

            20. Expenses and Fringe Benefits.

                  a. Expenses. During the Contract Period, the Executive shall
                  be entitled to reimbursement for all business expenses
                  incurred by him with respect to the business of the Company in
                  the same manner and to the same extent as such expenses were
                  previously reimbursed to him immediately prior to the Change
                  in Control.

                  b. Supplemental Retirement Plan. During the Contract Period,
                  if the Executive was entitled to benefits under any
                  supplemental retirement plan prior to the Change in Control,
                  the Executive shall be entitled to continued benefits under
                  such plan after the Change in Control and such plan may not be
                  modified to reduce or eliminate such benefits during the
                  Contract Period.

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<PAGE>

                  c. Club Membership and Automobile. If prior to the Change in
                  Control, the Executive was entitled to membership in a country
                  club and/or the use of an automobile, he shall be entitled to
                  the same membership and/or use of an automobile at least
                  comparable to the automobile provided to him prior to the
                  Change in Control.

                  d. Other Benefits. The Executive also shall be entitled to
                  vacations and sick days, in accordance with the practices and
                  procedures of the Company, as such existed immediately prior
                  to the Change in Control. During the Contract Period, the
                  Executive also shall be entitled to hospital, health, medical
                  and life insurance, and any other benefits enjoyed, from time
                  to time, by senior officers of the Company, all upon terms as
                  favorable as those enjoyed by other senior officers of the
                  Company. Notwithstanding anything in this paragraph 5(d) to
                  the contrary, if the Company adopts any change in the benefits
                  provided for senior officers of the Company, and such policy
                  is uniformly applied to all officers of the Company (and any
                  successor or acquiror of the Company, if any), including the
                  chief executive officer of such entities, then no such change
                  shall be deemed to be contrary to this paragraph.

            21. Termination for Cause. The Company shall have the right to
            terminate the Executive for Cause, upon written notice to him of the
            termination which notice shall specify the reasons for the
            termination. In the event of termination for Cause the Executive
            shall not be entitled to any further benefits under this Agreement.

            22. Disability. During the Contract Period if the Executive becomes
            permanently disabled, or is unable to perform his duties hereunder
            for 4 consecutive months in any 12 month period, the Company may
            terminate the employment of the Executive. In such event, the
            Executive shall not be entitled to any further benefits under this
            Agreement.

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<PAGE>

            23. Death Benefits. Upon the Executive's death during the Contract
            Period, his estate shall not be entitled to any further benefits
            under this Agreement.

            24. Termination Without Cause or Resignation for Good Reason. The
            Company may terminate the Executive without Cause during the
            Contract Period by written notice to the Executive providing four
            weeks notice. The Executive may resign for Good Reason during the
            Contract Period upon four weeks' written notice to the Company
            specifying facts and circumstances claimed to support the Good
            Reason. The Executive shall be entitled to give a Notice of
            Termination that his or her employment is being terminated for Good
            Reason at any time during the Contract Period, not later than twelve
            months after any occurrence of an event stated to constitute Good
            Reason. If the Company terminates the Executive's employment during
            the Contract Period without Cause or if the Executive Resigns for
            Good Reason, the Company shall, subject to Section 12 hereof:

            (a) Within 20 business days of the termination of employment pay the
            Executive a lump sum severance payment in an amount equal to three
            (3.0) times the highest annual cash compensation, consisting solely
            of salary and bonus, as well as any 401(k) deferral, paid to the
            Executive during any calendar year in each of the three calendar
            years immediately prior to the Change in Control, along with any
            Gross-Up Payment due under Section 12 hereof for the calendar year
            of the termination; and

            (b) Continue to provide the Executive during the remainder of the
            Contract Period with health, hospitalization and medical insurance,
            as were provided at the time of the termination of his employment
            with the Company, at the Company's cost (subject to standard
            deductibles and co-pays, and the Executive's continuing payment of
            his part of the premium for family coverage, if applicable).

                                       65
<PAGE>

            The Executive shall not have a duty to mitigate the damages suffered
by him in connection with the termination by the Company of his employment
without Cause or a resignation for Good Reason during the Contract Period. If
the Company fails to pay the Executive the lump sum amount due him hereunder or
the Gross-Up Payment due under Section 12 hereof, or to provide him with the
health, hospitalization and medical insurance benefits due under this section,
the Executive, after giving 10 days' written notice to the Company identifying
the Company's failure, shall be entitled to recover from the Company all of his
reasonable legal fees and expenses incurred in connection with his enforcement
against the Company of the terms of this Agreement. The Executive shall be
denied payment of his legal fees and expenses only if a court finds that the
Executive sought payment of such fees without reasonable cause and not in good
faith.

            25. Resignation Without Good Reason. The Executive shall be entitled
            to resign from the employment of the Company at any time during the
            Contract Period without Good Reason, but upon such resignation the
            Executive shall not be entitled to any additional compensation for
            the time after which he ceases to be employed by the Company, and
            shall not be entitled to any of the other benefits provided
            hereunder. No such resignation shall be effective unless in writing
            with four weeks' notice thereof.

            26. Non-Disclosure of Confidential Information.

                  a. Non-Disclosure of Confidential Information. Except in the
                  course of his employment with the Company and in the pursuit
                  of the business of the Company or any of its subsidiaries or
                  affiliates, the Executive shall not, at any time during or
                  following the Contract Period, disclose or use, any
                  confidential information or proprietary data of the Company or
                  any of its subsidiaries or affiliates. The Executive

                                       66
<PAGE>

                  agrees that, among other things, all information concerning
                  the identity of and the Company's relations with its customers
                  is confidential information.

                  b. Specific Performance. Executive agrees that the Company
                  does not have an adequate remedy at law for the breach of this
                  section and agrees that he shall be subject to injunctive
                  relief and equitable remedies as a result of the breach of
                  this section. The invalidity or unenforceability of any
                  provision of this Agreement shall not affect the force and
                  effect of the remaining valid portions.

                  c. Survival. This section shall survive the termination of the
                  Executive's employment hereunder and the expiration of this
                  Agreement.

            27. Gross-Up for Taxes.

                  a. Additional Payments. If, for any taxable year, Executive
                  shall be liable for the payment of an excise tax under Section
                  4999 or other substitute or similar tax assessment (the
                  "Excise Tax") of the Internal Revenue Code of 1986, as amended
                  (the "Code"), including the corresponding provisions of any
                  succeeding law, with respect to any payments under this
                  Section 12 or any payments and/or benefits under this
                  Agreement or under any benefit plan of the Company applicable
                  to Executive individually or generally to executives or
                  employees of the Company, then, the Company shall pay to the
                  Executive, subject to Section 15 hereof by paying the
                  withholding for the Executive, an additional amount (the
                  "Gross-Up Payment") such that the net amount retained by the
                  Executive, after deduction of any Excise Tax on such payments
                  and benefits and any federal, state and local income tax and
                  Excise Tax upon payments provided for in this Section 12,
                  shall be equal to the payments due to the Executive hereunder
                  and the payments and/or

                                       67
<PAGE>

                  benefits due to the Executive under any benefit plan of the
                  Company. Each Gross-Up Payment shall be made in good funds
                  upon the later of (i) five (5) days after the date the
                  Executive notifies the Company or the Company receives notice
                  from the certified public accounting firm of its need to make
                  such Gross-Up Payment, or (ii) the date of any payment causing
                  the liability for such Excise Tax. The amount of any Gross-Up
                  Payment under this section shall be computed by a nationally
                  recognized certified public accounting firm designated jointly
                  by the Company and the Executive. The cost of such services by
                  the accounting firm shall be paid by the Company. If the
                  Company and the Executive are unable to designate jointly the
                  accounting firm, then the firm shall be the accounting firm
                  used by the Company immediately prior to the Change in
                  Control.

                  b. IRS Disputed Claims. The Executive shall notify the company
                  in writing of any claim by the Internal Revenue Service
                  ("IRS") that, if successful, would require the payment by the
                  Company of a Gross-Up Payment in addition to that payment
                  previously paid by the Company pursuant to this section. Such
                  notification shall be given an soon as practicable but no
                  later than fifteen (15) business days after the Executive is
                  informed in writing of such claim and shall apprise the
                  Company of the nature of such claim, the date on which such
                  claim is requested to be paid, and attach a copy of the IRS
                  notice. The Executive shall not pay such claim prior to the
                  expiration of the thirty (30) day period following the date on
                  which the Executive gives such notice to the Company (or such
                  shorter period ending on the date that any payment of taxes
                  with respect to such claim is

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<PAGE>

                  due). If the Company notifies the Executive in writing prior
                  to the expiration of such period that it desires to contest
                  such claim, the Executive shall:

                        (i) Give the Company any information reasonably
                        requested by the Company relating to such claim;

                        (ii) Take such action in connection with contesting such
                        claim as the Company shall reasonably request in writing
                        from time to time, including, without limitation,
                        accepting legal representation with respect to such
                        claim by an attorney reasonably selected by the Company;

                        (iii) Cooperate with the Company in good faith in order
                        effectively to contest such claim; and

                        (iv) Permit the Company to participate in any
                        proceedings relating to such claim; provided, however
                        that the Company shall pay directly all costs and
                        expenses (including legal and accounting fees, as well
                        as other expenses and any additional interest and
                        penalties) incurred by the Executive and the Company in
                        connection with an IRS levy, contest or claim and
                        provided further that the Company shall not take any
                        action or fail to make any Gross-Up Payment so as to
                        cause the assessment of any IRS levy and the Company
                        shall cause any levy so assessed to be immediately
                        released by payment of the Gross-Up Amount, together
                        with all costs, interest and penalties.

            28. Term and Effect Prior to Change in Control.

                  a. Term. Except as otherwise provided for hereunder, this
                  Agreement shall commence on the date hereof and shall remain
                  in effect for a period of 3 years from the

                                       69
<PAGE>

                  date hereof (the "Initial Term") or until the end of the
                  Contract Period, whichever is later. The Initial Term shall be
                  automatically extended for an additional one year period on
                  the anniversary date hereof (so that the Initial Term is
                  always 3 years) unless, prior to a Change in Control, the
                  Chairman of the Board of Directors of Peapack notifies the
                  Executive in writing at any time that the Contract is not so
                  extended, in which case the Initial Term shall end upon the
                  later of (i) 3 years after the date hereof, or (ii) 2 years
                  after the date of such written notice.

                  b. No Effect Prior to Change in Control. This Agreement shall
                  not effect any rights of the Company to terminate the
                  Executive prior to a Change in Control or any rights of the
                  Executive granted in any other agreement or contract or plan
                  with the Company. The rights, duties and benefits provided
                  hereunder shall only become effective upon and after a Change
                  in Control. If the full-time employment of the Executive by
                  the Company is ended for any reason prior to a Change in
                  Control, this Agreement shall thereafter be of no further
                  force and effect.

            29. Severance Compensation and Benefits Not in Derogation of Other
            Benefits. Anything to the contrary herein contained notwithstanding,
            the payment or obligation to pay any monies, or granting of any
            benefits, rights or privileges to Executive as provided in this
            Agreement shall not be in lieu or derogation of the rights and
            privileges that the Executive now has or will have under any plans
            or programs of or agreements with the Company, except that if the
            Executive received any payment hereunder, he shall not be entitled
            to any payment under the Company's severance policies for officers
            and employees.

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<PAGE>

            30. Payroll and Withholding Taxes. All payments to be made or
            benefits to be provided hereunder by the Company shall be subject to
            applicable federal and state payroll or withholding taxes. Any
            Gross-Up Payment shall be made in the form of withholding taxes and
            shall not be paid to the Executive, but shall be sent to the IRS in
            the ordinary course of the Company's payroll withholding.

            31. Miscellaneous. This Agreement is the joint and several
            obligation of the Bank and Peapack. The terms of this Agreement
            shall be governed by, and interpreted and construed in accordance
            with the provisions of, the laws of New Jersey. This Agreement
            supersedes all prior agreements and understandings with respect to
            the matters covered hereby, including expressly any prior agreement
            with the Company concerning change-in-control benefits. The parties
            hereto expressly agree that the Severance Agreement between the Bank
            and the Executive dated January 27, 1997, is hereby terminated in
            its entirety. The amendment or termination of this Agreement may be
            made only in a writing executed by the Company and the Executive,
            and no amendment or termination of this Agreement shall be effective
            unless and until made in such a writing. This Agreement shall be
            binding upon any successor (whether direct or indirect, by purchase,
            merge, consolidation, liquidation or otherwise) to all or
            substantially all of the assets of the Company. This Agreement is
            personal to the Executive and the Executive may not assign any of
            his rights or duties hereunder but this Agreement shall be
            enforceable by the Executive's legal representatives, executors or
            administrators. This Agreement may be executed in two or more
            counterparts, each of which shall be deemed an original, and it
            shall not be necessary in making proof of this Agreement to produce
            or account for more than one such counterpart.

                           (signature page to follow)

                                       71
<PAGE>

            IN WITNESS WHEREOF, Peapack-Gladstone Bank and Peapack-Gladstone
Financial Corporation each have caused this Agreement to be signed by their duly
authorized representatives pursuant to the authority of their Boards of
Directors, and the Executive has personally executed this Agreement, all as of
the day and year first written above.

ATTEST:                                 PEAPACK-GLADSTONE
                                        FINANCIAL CORPORATION

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           ----------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

ATTEST:                                 PEAPACK-GLADSTONE BANK

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           ----------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

WITNESS:

ANTOINETTE ROSELL                       ROBERT M. ROGERS
-----------------                       ----------------------------
Antoinette Rosell                       Robert M. Rogers, Executive

                                       72
<PAGE>

                              AMENDED AND RESTATED
                           CHANGE-IN-CONTROL AGREEMENT
                               CRAIG C. SPENGEMAN

            THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), is
made as of this 11th day of December, 2003, among PEAPACK-GLADSTONE BANK
("Bank"), a New Jersey state banking association with its principal office at
190 Main Street, Gladstone, New Jersey 07934, PEAPACK-GLADSTONE FINANCIAL
CORPORATION ("Peapack"), a New Jersey Corporation which maintains its principal
office at 158 Route 206 North, Gladstone, New Jersey 07934 (Peapack and the Bank
collectively are the "Company") and Craig C. Spengeman (the "Executive"). This
Agreement amends and restates in its entirety the Employment Agreement dated as
of January 1, 1998 by and among the Executive, Peapack, and the Bank.

                                   BACKGROUND

            WHEREAS, the Executive has been continuously employed by the Bank
for many years;

            WHEREAS, the Executive throughout his tenure has worked diligently
in his position in the business of the Bank and Peapack;

            WHEREAS, the Board of Directors of the Bank and Peapack believe that
the future services of the Executive are of great value to the Bank and Peapack
and that it is important for the growth and development of the Bank that the
Executive continue in his position;

            WHEREAS, if the Company receives any proposal from a third person
concerning a possible business combination with, or acquisition of equities
securities of, the Company, the Board of Directors of the Company (the "Board")
believes it is imperative that the Company and the Board be able to rely upon
the Executive to continue in his position, and that they be able to receive and
rely upon his

                                       73
<PAGE>

advice, if they request it, as to the best interests of the Company and its
shareholders, without concern that the Executive might be distracted by the
personal uncertainties and risks created by such a proposal;

            WHEREAS, to achieve that goal, and to retain the Executive's
services prior to any such activity, the Board of Directors and the Executive
have agreed to enter into this Agreement to govern the Executive's termination
benefits in the event of a Change in Control of the Company, as hereinafter
defined.

            NOW, THEREFORE, to assure the Company that it will have the
continued dedication of the Executive and the availability of his advice and
counsel notwithstanding the possibility, threat or occurrence of a bid to take
over control of the Company, and to induce the Executive to remain in the employ
of the Company, and for other good and valuable consideration, the Company and
the Executive, each intending to be legally bound hereby agree as follows:

            Definitions

                  a. Cause. For purposes of this Agreement "Cause" with respect
                  to the termination by the Company of Executive's employment
                  shall mean (i) willful and continued failure by the Executive
                  to perform his duties for the Company under this Agreement
                  after at least one warning in writing from the Company's Board
                  of Directors identifying specifically any such failure; (ii)
                  the willful engaging by the Executive in misconduct which
                  causes material injury to the Company as specified in a
                  written notice to the Executive from the Board of Directors;
                  or (iii) conviction of a crime, other than a traffic
                  violation, habitual drunkenness, drug abuse, or excessive
                  absenteeism other than for illness, after a warning (with
                  respect to drunkenness or absenteeism only) in writing from
                  the Board of Directors to refrain from such behavior. No act
                  or failure to act on the part of the Executive shall be
                  considered willful unless done, or omitted to be done, by the

                                       74
<PAGE>

                  Executive not in good faith and without reasonable belief that
                  the action or omission was in the best interest of the
                  Company.

                  b. Change in Control. "Change in Control" means any of the
                  following events: (i) when Peapack or a Subsidiary acquires
                  actual knowledge that any person (as such term is used in
                  Sections 13(d) and 14(d)(2) of the Exchange Act), other than
                  an affiliate of Peapack or a Subsidiary or an employee benefit
                  plan established or maintained by Peapack, a Subsidiary or any
                  of their respective affiliates, is or becomes the beneficial
                  owner (as defined in Rule 13d-3 of the Exchange Act) directly
                  or indirectly, of securities of Peapack representing more than
                  twenty-five percent (25%) of the combined voting power of
                  Peapack's then outstanding securities (a "Control Person"),
                  (ii) upon the first purchase of Peapack's common stock
                  pursuant to a tender or exchange offer (other than a tender or
                  exchange offer made by Peapack, a Subsidiary or an employee
                  benefit plan established or maintained by Peapack, a
                  Subsidiary or any of their respective affiliates), (iii) upon
                  the approval by Peapack's stockholders of (A) a merger or
                  consolidation of Peapack with or into another corporation
                  (other than a merger or consolidation which is approved by at
                  least two-thirds of the Continuing Directors (as hereinafter
                  defined) and the definitive agreement for which provides that
                  at least two-thirds of the directors of the surviving or
                  resulting corporation immediately after the transaction are
                  Continuing Directors (a "Non-Control Transaction")), (B) a
                  sale or disposition of all or substantially all of Peapack's
                  assets or (C) a plan of liquidation or dissolution of Peapack,
                  (iv) if during any period of two (2) consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board (the "Continuing Directors") cease for any reason to
                  constitute at least two-thirds thereof or, following a

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                  Non-Control Transaction, two-thirds of the board of directors
                  of the surviving or resulting corporation; provided that any
                  individual whose election or nomination for election as a
                  member of the Board (or, following a Non-Control Transaction,
                  the board of directors of the surviving or resulting
                  corporation) was approved by a vote of at least two-thirds of
                  the Continuing Directors then in office shall be considered a
                  Continuing Director, or (v) upon a sale of (A) common stock of
                  the Bank if after such sale any person (as such term is used
                  in Section 13(d) and 14(d)(2) of the Exchange Act) other than
                  Peapack, an employee benefit plan established or maintained by
                  Peapack or a Subsidiary, or an affiliate of Peapack or a
                  Subsidiary, owns a majority of the Bank's common stock or (B)
                  all or substantially all of the Bank's assets (other than in
                  the ordinary course of business). No person shall be
                  considered a Control Person for purposes of clause (i) above
                  if (A) such person is or becomes the beneficial owner,
                  directly or indirectly, of more than ten percent (10%) but
                  less than twenty-five percent (25%) of the combined voting
                  power of Peapack's then outstanding securities if the
                  acquisition of all voting securities in excess of ten percent
                  (10%) was approved in advance by a majority of the Continuing
                  Directors then in office or (B) such person acquires in excess
                  of ten percent (10%) of the combined voting power of Peapack's
                  then outstanding voting securities in violation of law and by
                  order of a court of competent jurisdiction, settlement or
                  otherwise, disposes or is required to dispose of all
                  securities acquired in violation of law.

                  c. Contract Period. "Contract Period" shall mean the period
                  commencing the day immediately preceding a Change in Control
                  and ending on the earlier of (i) the third anniversary of the
                  Change in Control or (ii) the death of the Executive. For the
                  purpose

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<PAGE>

                  of this Agreement, a Change in Control shall be deemed to have
                  occurred at the date specified in the definition of
                  Change-in-Control.

                  d. Exchange Act. "Exchange Act" means the Securities Exchange
                  Act of 1934, as amended.

                  e. Good Reason. When used with reference to a voluntary
                  termination by Executive of his employment with the Company,
                  "Good Reason" shall mean any of the following, if taken
                  without Executive's express written consent:

                        (1) The assignment to Executive of any duties
                        inconsistent with, or the reduction of powers or
                        functions associated with, Executive's position, title,
                        duties, responsibilities and status with the Company
                        immediately prior to a Change in Control; any removal of
                        Executive from, or any failure to re-elect Executive to,
                        any position(s) or office(s) Executive held immediately
                        prior to such Change in Control. A change in title or
                        positions resulting merely from a merger of the Company
                        into or with another bank or company which does not
                        downgrade in any way the Executive's powers, duties and
                        responsibilities shall not meet the requirements of this
                        paragraph;

                        (2) A reduction by the Company in Executive's annual
                        base compensation as in effect immediately prior to a
                        Change in Control or the failure to award Executive
                        annual increases in accordance herewith;

                        (3) A failure by the Company to continue any bonus plan
                        in which Executive participated immediately prior to the
                        Change in control or a failure by the Company to
                        continue Executive as a participant in such plan on at
                        least the same basis as Executive participated in such
                        plan prior to the Change in Control;

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                        (4) The Company's transfer of Executive to another
                        geographic location outside of New Jersey or more than
                        25 miles from his present office location, except for
                        required travel on the Company's business to an extent
                        substantially consistent with Executive's business
                        travel obligations immediately prior to such Change in
                        Control;

                        (5) The failure by the Company to continue in effect any
                        employee benefit plan, program or arrangement
                        (including, without limitation the Company's retirement
                        plan, benefit equalization plan, life insurance plan,
                        health and accident plan, disability plan, deferred
                        compensation plan or long term stock incentive plan) in
                        which Executive is participating immediately prior to a
                        Change in Control (except that the Company may institute
                        or continue plans, programs or arrangements providing
                        Executive with substantially similar benefits); the
                        taking of any action by the Company which would
                        adversely affect Executive's participation in or
                        materially reduce Executive's benefits under, any of
                        such plans, programs or arrangements; the failure to
                        continue, or the taking of any action which would
                        deprive Executive, of any material fringe benefit
                        enjoyed by Executive immediately prior to such Change in
                        Control; or the failure by the Company to provide
                        Executive with the number of paid vacation days to which
                        Executive was entitled immediately prior to such Change
                        in Control;

                        (6) The failure by the Company to obtain an assumption
                        in writing of the obligations of the Company to perform
                        this Agreement by any successor to the Company and to
                        provide such assumption to the Executive prior to any
                        Change in Control; or

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                        (7) Any purported termination of Executive's employment
                        by the Company during the term of this Agreement which
                        is not effected pursuant to all of the requirements of
                        this Agreement; and, for purposes of this Agreement, no
                        such purported termination shall be effective.

                  f. Subsidiary. "Subsidiary" means any corporation in an
                  unbroken chain of corporations, beginning with Peapack, if
                  each of the corporations other than the last corporation in
                  the unbroken chain owns stock possessing 50% or more of the
                  total combined voting power of all classes of stock in one of
                  the other corporations in such chain.

            32. Employment. The Company hereby agrees to employ the Executive,
            and the Executive hereby accepts employment, during the Contract
            Period upon the terms and conditions set forth herein.

            33. Position. During the Contract Period the Executive shall be
            employed as President & Chief Investment Officer of Peapack and the
            Bank, or such other corporate or divisional profit center as shall
            then be the principal successor to the business, assets and
            properties of the Company, with substantially the same title and the
            same duties and responsibilities as before the Change in Control.
            The Executive shall devote his full time and attention to the
            business of the Company, and shall not during the Contract Period be
            engaged in any other business activity. This paragraph shall not be
            construed as preventing the Executive from managing any investments
            of his which do not require any service on his part in the operation
            of such investments.

            34. Cash Compensation. The Company shall pay to the Executive
            compensation for his services during the Contract Period as follows:

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                  a. Base Salary. A base annual salary equal to the annual
                  salary in effect as of the Change in Control. The annual
                  salary shall be payable in installments in accordance with the
                  Company's usual payroll method.

                  b. Annual Bonus. An annual cash bonus equal to at least the
                  average of the bonuses paid to the Executive in the three
                  years prior to the Change in Control. The bonus shall be
                  payable at the time and in the manner which the Company paid
                  such bonuses prior to the Change in Control.

                  c. Annual Review. The Board of Directors of the Company during
                  the Contract Period shall review annually, or at more frequent
                  intervals which the Board determines is appropriate, the
                  Executive's compensation and shall award him additional
                  compensation to reflect the Executive's performance, the
                  performance of the Company and competitive compensation
                  levels, all as determined in the discretion of the Board of
                  Directors.

            35. Expenses and Fringe Benefits.

                  a. Expenses. During the Contract Period, the Executive shall
                  be entitled to reimbursement for all business expenses
                  incurred by him with respect to the business of the Company in
                  the same manner and to the same extent as such expenses were
                  previously reimbursed to him immediately prior to the Change
                  in Control.

                  b. Supplemental Retirement Plan. During the Contract Period,
                  if the Executive was entitled to benefits under any
                  supplemental retirement plan prior to the Change in Control,
                  the Executive shall be entitled to continued benefits under
                  such plan after the Change in Control and such plan may not be
                  modified to reduce or eliminate such benefits during the
                  Contract Period.

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                  c. Club Membership and Automobile. If prior to the Change in
                  Control, the Executive was entitled to membership in a country
                  club and/or the use of an automobile, he shall be entitled to
                  the same membership and/or use of an automobile at least
                  comparable to the automobile provided to him prior to the
                  Change in Control.

                  d. Other Benefits. The Executive also shall be entitled to
                  vacations and sick days, in accordance with the practices and
                  procedures of the Company, as such existed immediately prior
                  to the Change in Control. During the Contract Period, the
                  Executive also shall be entitled to hospital, health, medical
                  and life insurance, and any other benefits enjoyed, from time
                  to time, by senior officers of the Company, all upon terms as
                  favorable as those enjoyed by other senior officers of the
                  Company. Notwithstanding anything in this paragraph 5(d) to
                  the contrary, if the Company adopts any change in the benefits
                  provided for senior officers of the Company, and such policy
                  is uniformly applied to all officers of the Company (and any
                  successor or acquiror of the Company, if any), including the
                  chief executive officer of such entities, then no such change
                  shall be deemed to be contrary to this paragraph.

            36. Termination for Cause. The Company shall have the right to
            terminate the Executive for Cause, upon written notice to him of the
            termination which notice shall specify the reasons for the
            termination. In the event of termination for Cause the Executive
            shall not be entitled to any further benefits under this Agreement.

            37. Disability. During the Contract Period if the Executive becomes
            permanently disabled, or is unable to perform his duties hereunder
            for 4 consecutive months in any 12 month period, the Company may
            terminate the employment of the Executive. In such event, the
            Executive shall not be entitled to any further benefits under this
            Agreement.

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            38. Death Benefits. Upon the Executive's death during the Contract
            Period, his estate shall not be entitled to any further benefits
            under this Agreement.

            39. Termination Without Cause or Resignation for Good Reason. The
            Company may terminate the Executive without Cause during the
            Contract Period by written notice to the Executive providing four
            weeks notice. The Executive may resign for Good Reason during the
            Contract Period upon four weeks' written notice to the Company
            specifying facts and circumstances claimed to support the Good
            Reason. The Executive shall be entitled to give a Notice of
            Termination that his or her employment is being terminated for Good
            Reason at any time during the Contract Period, not later than twelve
            months after any occurrence of an event stated to constitute Good
            Reason. If the Company terminates the Executive's employment during
            the Contract Period without Cause or if the Executive Resigns for
            Good Reason, the Company shall, subject to Section 12 hereof:

            (a) Within 20 business days of the termination of employment pay the
            Executive a lump sum severance payment in an amount equal to three
            (3.0) times the highest annual cash compensation, consisting solely
            of salary and bonus, as well as any 401(k) deferral, paid to the
            Executive during any calendar year in each of the three calendar
            years immediately prior to the Change in Control, along with any
            Gross-Up Payment due under Section 12 hereof for the calendar year
            of the termination; and

            (b) Continue to provide the Executive during the remainder of the
            Contract Period with health, hospitalization and medical insurance,
            as were provided at the time of the termination of his employment
            with the Company, at the Company's cost (subject to standard
            deductibles and co-pays, and the Executive's continuing payment of
            his part of the premium for family coverage, if applicable).

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            The Executive shall not have a duty to mitigate the damages suffered
by him in connection with the termination by the Company of his employment
without Cause or a resignation for Good Reason during the Contract Period. If
the Company fails to pay the Executive the lump sum amount due him hereunder or
the Gross-Up Payment due under Section 12 hereof, or to provide him with the
health, hospitalization and medical insurance benefits due under this section,
the Executive, after giving 10 days' written notice to the Company identifying
the Company's failure, shall be entitled to recover from the Company all of his
reasonable legal fees and expenses incurred in connection with his enforcement
against the Company of the terms of this Agreement. The Executive shall be
denied payment of his legal fees and expenses only if a court finds that the
Executive sought payment of such fees without reasonable cause and not in good
faith.

            40. Resignation Without Good Reason. The Executive shall be entitled
            to resign from the employment of the Company at any time during the
            Contract Period without Good Reason, but upon such resignation the
            Executive shall not be entitled to any additional compensation for
            the time after which he ceases to be employed by the Company, and
            shall not be entitled to any of the other benefits provided
            hereunder. No such resignation shall be effective unless in writing
            with four weeks' notice thereof.

            41. Non-Disclosure of Confidential Information.

                  a. Non-Disclosure of Confidential Information. Except in the
                  course of his employment with the Company and in the pursuit
                  of the business of the Company or any of its subsidiaries or
                  affiliates, the Executive shall not, at any time during or
                  following the Contract Period, disclose or use, any
                  confidential information or proprietary data of the Company or
                  any of its subsidiaries or affiliates. The Executive

                                       83
<PAGE>

                  agrees that, among other things, all information concerning
                  the identity of and the Company's relations with its customers
                  is confidential information.

                  b. Specific Performance. Executive agrees that the Company
                  does not have an adequate remedy at law for the breach of this
                  section and agrees that he shall be subject to injunctive
                  relief and equitable remedies as a result of the breach of
                  this section. The invalidity or unenforceability of any
                  provision of this Agreement shall not affect the force and
                  effect of the remaining valid portions.

                  c. Survival. This section shall survive the termination of the
                  Executive's employment hereunder and the expiration of this
                  Agreement.

            42. Gross-Up for Taxes.

                  a. Additional Payments. If, for any taxable year, Executive
                  shall be liable for the payment of an excise tax under Section
                  4999 or other substitute or similar tax assessment (the
                  "Excise Tax") of the Internal Revenue Code of 1986, as amended
                  (the "Code"), including the corresponding provisions of any
                  succeeding law, with respect to any payments under this
                  Section 12 or any payments and/or benefits under this
                  Agreement or under any benefit plan of the Company applicable
                  to Executive individually or generally to executives or
                  employees of the Company, then, the Company shall pay to the
                  Executive, subject to Section 15 hereof by paying the
                  withholding for the Executive, an additional amount (the
                  "Gross-Up Payment") such that the net amount retained by the
                  Executive, after deduction of any Excise Tax on such payments
                  and benefits and any federal, state and local income tax and
                  Excise Tax upon payments provided for in this Section 12,
                  shall be equal to the payments due to the Executive hereunder
                  and the payments and/or

                                       84
<PAGE>

                  benefits due to the Executive under any benefit plan of the
                  Company. Each Gross-Up Payment shall be made in good funds
                  upon the later of (i) five (5) days after the date the
                  Executive notifies the Company or the Company receives notice
                  from the certified public accounting firm of its need to make
                  such Gross-Up Payment, or (ii) the date of any payment causing
                  the liability for such Excise Tax. The amount of any Gross-Up
                  Payment under this section shall be computed by a nationally
                  recognized certified public accounting firm designated jointly
                  by the Company and the Executive. The cost of such services by
                  the accounting firm shall be paid by the Company. If the
                  Company and the Executive are unable to designate jointly the
                  accounting firm, then the firm shall be the accounting firm
                  used by the Company immediately prior to the Change in
                  Control.

                  b. IRS Disputed Claims. The Executive shall notify the company
                  in writing of any claim by the Internal Revenue Service
                  ("IRS") that, if successful, would require the payment by the
                  Company of a Gross-Up Payment in addition to that payment
                  previously paid by the Company pursuant to this section. Such
                  notification shall be given an soon as practicable but no
                  later than fifteen (15) business days after the Executive is
                  informed in writing of such claim and shall apprise the
                  Company of the nature of such claim, the date on which such
                  claim is requested to be paid, and attach a copy of the IRS
                  notice. The Executive shall not pay such claim prior to the
                  expiration of the thirty (30) day period following the date on
                  which the Executive gives such notice to the Company (or such
                  shorter period ending on the date that any payment of taxes
                  with respect to such claim is

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<PAGE>

                  due). If the Company notifies the Executive in writing prior
                  to the expiration of such period that it desires to contest
                  such claim, the Executive shall:

                        (i) Give the Company any information reasonably
                        requested by the Company relating to such claim;

                        (ii) Take such action in connection with contesting such
                        claim as the Company shall reasonably request in writing
                        from time to time, including, without limitation,
                        accepting legal representation with respect to such
                        claim by an attorney reasonably selected by the Company;

                        (iii) Cooperate with the Company in good faith in order
                        effectively to contest such claim; and

                        (iv) Permit the Company to participate in any
                        proceedings relating to such claim; provided, however
                        that the Company shall pay directly all costs and
                        expenses (including legal and accounting fees, as well
                        as other expenses and any additional interest and
                        penalties) incurred by the Executive and the Company in
                        connection with an IRS levy, contest or claim and
                        provided further that the Company shall not take any
                        action or fail to make any Gross-Up Payment so as to
                        cause the assessment of any IRS levy and the Company
                        shall cause any levy so assessed to be immediately
                        released by payment of the Gross-Up Amount, together
                        with all costs, interest and penalties.

            43. Term and Effect Prior to Change in Control.

                  a. Term. Except as otherwise provided for hereunder, this
                  Agreement shall commence on the date hereof and shall remain
                  in effect for a period of 3 years from the

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                  date hereof (the "Initial Term") or until the end of the
                  Contract Period, whichever is later. The Initial Term shall be
                  automatically extended for an additional one year period on
                  the anniversary date hereof (so that the Initial Term is
                  always 3 years) unless, prior to a Change in Control, the
                  Chairman of the Board of Directors of Peapack notifies the
                  Executive in writing at any time that the Contract is not so
                  extended, in which case the Initial Term shall end upon the
                  later of (i) 3 years after the date hereof, or (ii) 2 years
                  after the date of such written notice.

                  b. No Effect Prior to Change in Control. This Agreement shall
                  not effect any rights of the Company to terminate the
                  Executive prior to a Change in Control or any rights of the
                  Executive granted in any other agreement or contract or plan
                  with the Company. The rights, duties and benefits provided
                  hereunder shall only become effective upon and after a Change
                  in Control. If the full-time employment of the Executive by
                  the Company is ended for any reason prior to a Change in
                  Control, this Agreement shall thereafter be of no further
                  force and effect.

            44. Severance Compensation and Benefits Not in Derogation of Other
            Benefits. Anything to the contrary herein contained notwithstanding,
            the payment or obligation to pay any monies, or granting of any
            benefits, rights or privileges to Executive as provided in this
            Agreement shall not be in lieu or derogation of the rights and
            privileges that the Executive now has or will have under any plans
            or programs of or agreements with the Company, except that if the
            Executive received any payment hereunder, he shall not be entitled
            to any payment under the Company's severance policies for officers
            and employees.

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<PAGE>

            45. Payroll and Withholding Taxes. All payments to be made or
            benefits to be provided hereunder by the Company shall be subject to
            applicable federal and state payroll or withholding taxes. Any
            Gross-Up Payment shall be made in the form of withholding taxes and
            shall not be paid to the Executive, but shall be sent to the IRS in
            the ordinary course of the Company's payroll withholding.

            46. Miscellaneous. This Agreement is the joint and several
            obligation of the Bank and Peapack. The terms of this Agreement
            shall be governed by, and interpreted and construed in accordance
            with the provisions of, the laws of New Jersey. This Agreement
            supersedes all prior agreements and understandings with respect to
            the matters covered hereby, including expressly any prior agreement
            with the Company concerning change-in-control benefits. The parties
            hereto expressly agree that the Severance Agreement between the Bank
            and the Executive dated January 27, 1997, is hereby terminated in
            its entirety. The amendment or termination of this Agreement may be
            made only in a writing executed by the Company and the Executive,
            and no amendment or termination of this Agreement shall be effective
            unless and until made in such a writing. This Agreement shall be
            binding upon any successor (whether direct or indirect, by purchase,
            merge, consolidation, liquidation or otherwise) to all or
            substantially all of the assets of the Company. This Agreement is
            personal to the Executive and the Executive may not assign any of
            his rights or duties hereunder but this Agreement shall be
            enforceable by the Executive's legal representatives, executors or
            administrators. This Agreement may be executed in two or more
            counterparts, each of which shall be deemed an original, and it
            shall not be necessary in making proof of this Agreement to produce
            or account for more than one such counterpart.

                           (signature page to follow)

                                       88
<PAGE>

            IN WITNESS WHEREOF, Peapack-Gladstone Bank and Peapack-Gladstone
Financial Corporation each have caused this Agreement to be signed by their duly
authorized representatives pursuant to the authority of their Boards of
Directors, and the Executive has personally executed this Agreement, all as of
the day and year first written above.

ATTEST:                                 PEAPACK-GLADSTONE
                                        FINANCIAL CORPORATION

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           -----------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

ATTEST:                                 PEAPACK-GLADSTONE BANK

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           -----------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

WITNESS:

ANTOINETTE ROSELL                       CRAIG C. SPENGEMAN
-----------------                       -----------------------------
Antoinette Rosell                       Craig C. Spengeman, Executive

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                              AMENDED AND RESTATED
                           CHANGE-IN-CONTROL AGREEMENT
                              ARTHUR F. BIRMINGHAM

            THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), is
made as of this 11 day of December, 2003, among PEAPACK-GLADSTONE BANK ("Bank"),
a New Jersey state banking association with its principal office at 190 Main
Street, Gladstone, New Jersey 07934, PEAPACK-GLADSTONE FINANCIAL CORPORATION
("Peapack"), a New Jersey Corporation which maintains its principal office at
158 Route 206 North, Gladstone, New Jersey 07934 (Peapack and the Bank
collectively are the "Company") and Arthur F. Birmingham (the "Executive"). This
Agreement amends and restates in its entirety the Employment Agreement dated as
of January 1, 1998 by and among the Executive, Peapack, and the Bank.

                                   BACKGROUND

            WHEREAS, the Executive has been continuously employed by the Bank
for many years;

            WHEREAS, the Executive throughout his tenure has worked diligently
in his position in the business of the Bank and Peapack;

            WHEREAS, the Board of Directors of the Bank and Peapack believe that
the future services of the Executive are of great value to the Bank and Peapack
and that it is important for the growth and development of the Bank that the
Executive continue in his position;

            WHEREAS, if the Company receives any proposal from a third person
concerning a possible business combination with, or acquisition of equities
securities of, the Company, the Board of Directors of the Company (the "Board")
believes it is imperative that the Company and the Board be able to rely upon
the Executive to continue in his position, and that they be able to receive and
rely upon his

                                       90
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advice, if they request it, as to the best interests of the Company and its
shareholders, without concern that the Executive might be distracted by the
personal uncertainties and risks created by such a proposal;

            WHEREAS, to achieve that goal, and to retain the Executive's
services prior to any such activity, the Board of Directors and the Executive
have agreed to enter into this Agreement to govern the Executive's termination
benefits in the event of a Change in Control of the Company, as hereinafter
defined.

            NOW, THEREFORE, to assure the Company that it will have the
continued dedication of the Executive and the availability of his advice and
counsel notwithstanding the possibility, threat or occurrence of a bid to take
over control of the Company, and to induce the Executive to remain in the employ
of the Company, and for other good and valuable consideration, the Company and
the Executive, each intending to be legally bound hereby agree as follows:

            Definitions

                  a. Cause. For purposes of this Agreement "Cause" with respect
                  to the termination by the Company of Executive's employment
                  shall mean (i) willful and continued failure by the Executive
                  to perform his duties for the Company under this Agreement
                  after at least one warning in writing from the Company's Board
                  of Directors identifying specifically any such failure; (ii)
                  the willful engaging by the Executive in misconduct which
                  causes material injury to the Company as specified in a
                  written notice to the Executive from the Board of Directors;
                  or (iii) conviction of a crime, other than a traffic
                  violation, habitual drunkenness, drug abuse, or excessive
                  absenteeism other than for illness, after a warning (with
                  respect to drunkenness or absenteeism only) in writing from
                  the Board of Directors to refrain from such behavior. No act
                  or failure to act on the part of the Executive shall be
                  considered willful unless done, or omitted to be done, by the

                                       91
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                  Executive not in good faith and without reasonable belief that
                  the action or omission was in the best interest of the
                  Company.

                  b. Change in Control. "Change in Control" means any of the
                  following events: (i) when Peapack or a Subsidiary acquires
                  actual knowledge that any person (as such term is used in
                  Sections 13(d) and 14(d)(2) of the Exchange Act), other than
                  an affiliate of Peapack or a Subsidiary or an employee benefit
                  plan established or maintained by Peapack, a Subsidiary or any
                  of their respective affiliates, is or becomes the beneficial
                  owner (as defined in Rule 13d-3 of the Exchange Act) directly
                  or indirectly, of securities of Peapack representing more than
                  twenty-five percent (25%) of the combined voting power of
                  Peapack's then outstanding securities (a "Control Person"),
                  (ii) upon the first purchase of Peapack's common stock
                  pursuant to a tender or exchange offer (other than a tender or
                  exchange offer made by Peapack, a Subsidiary or an employee
                  benefit plan established or maintained by Peapack, a
                  Subsidiary or any of their respective affiliates), (iii) upon
                  the approval by Peapack's stockholders of (A) a merger or
                  consolidation of Peapack with or into another corporation
                  (other than a merger or consolidation which is approved by at
                  least two-thirds of the Continuing Directors (as hereinafter
                  defined) and the definitive agreement for which provides that
                  at least two-thirds of the directors of the surviving or
                  resulting corporation immediately after the transaction are
                  Continuing Directors (a "Non-Control Transaction")), (B) a
                  sale or disposition of all or substantially all of Peapack's
                  assets or (C) a plan of liquidation or dissolution of Peapack,
                  (iv) if during any period of two (2) consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board (the "Continuing Directors") cease for any reason to
                  constitute at least two-thirds thereof or, following a

                                       92
<PAGE>

                  Non-Control Transaction, two-thirds of the board of directors
                  of the surviving or resulting corporation; provided that any
                  individual whose election or nomination for election as a
                  member of the Board (or, following a Non-Control Transaction,
                  the board of directors of the surviving or resulting
                  corporation) was approved by a vote of at least two-thirds of
                  the Continuing Directors then in office shall be considered a
                  Continuing Director, or (v) upon a sale of (A) common stock of
                  the Bank if after such sale any person (as such term is used
                  in Section 13(d) and 14(d)(2) of the Exchange Act) other than
                  Peapack, an employee benefit plan established or maintained by
                  Peapack or a Subsidiary, or an affiliate of Peapack or a
                  Subsidiary, owns a majority of the Bank's common stock or (B)
                  all or substantially all of the Bank's assets (other than in
                  the ordinary course of business). No person shall be
                  considered a Control Person for purposes of clause (i) above
                  if (A) such person is or becomes the beneficial owner,
                  directly or indirectly, of more than ten percent (10%) but
                  less than twenty-five percent (25%) of the combined voting
                  power of Peapack's then outstanding securities if the
                  acquisition of all voting securities in excess of ten percent
                  (10%) was approved in advance by a majority of the Continuing
                  Directors then in office or (B) such person acquires in excess
                  of ten percent (10%) of the combined voting power of Peapack's
                  then outstanding voting securities in violation of law and by
                  order of a court of competent jurisdiction, settlement or
                  otherwise, disposes or is required to dispose of all
                  securities acquired in violation of law.

                  c. Contract Period. "Contract Period" shall mean the period
                  commencing the day immediately preceding a Change in Control
                  and ending on the earlier of (i) the third anniversary of the
                  Change in Control or (ii) the death of the Executive. For the
                  purpose

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                  of this Agreement, a Change in Control shall be deemed to have
                  occurred at the date specified in the definition of
                  Change-in-Control.

                  d. Exchange Act. "Exchange Act" means the Securities Exchange
                  Act of 1934, as amended.

                  e. Good Reason. When used with reference to a voluntary
                  termination by Executive of his employment with the Company,
                  "Good Reason" shall mean any of the following, if taken
                  without Executive's express written consent:

                        (1) The assignment to Executive of any duties
                        inconsistent with, or the reduction of powers or
                        functions associated with, Executive's position, title,
                        duties, responsibilities and status with the Company
                        immediately prior to a Change in Control; any removal of
                        Executive from, or any failure to re-elect Executive to,
                        any position(s) or office(s) Executive held immediately
                        prior to such Change in Control. A change in title or
                        positions resulting merely from a merger of the Company
                        into or with another bank or company which does not
                        downgrade in any way the Executive's powers, duties and
                        responsibilities shall not meet the requirements of this
                        paragraph;

                        (2) A reduction by the Company in Executive's annual
                        base compensation as in effect immediately prior to a
                        Change in Control or the failure to award Executive
                        annual increases in accordance herewith;

                        (3) A failure by the Company to continue any bonus plan
                        in which Executive participated immediately prior to the
                        Change in control or a failure by the Company to
                        continue Executive as a participant in such plan on at
                        least the same basis as Executive participated in such
                        plan prior to the Change in Control;

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                        (4) The Company's transfer of Executive to another
                        geographic location outside of New Jersey or more than
                        25 miles from his present office location, except for
                        required travel on the Company's business to an extent
                        substantially consistent with Executive's business
                        travel obligations immediately prior to such Change in
                        Control;

                        (5) The failure by the Company to continue in effect any
                        employee benefit plan, program or arrangement
                        (including, without limitation the Company's retirement
                        plan, benefit equalization plan, life insurance plan,
                        health and accident plan, disability plan, deferred
                        compensation plan or long term stock incentive plan) in
                        which Executive is participating immediately prior to a
                        Change in Control (except that the Company may institute
                        or continue plans, programs or arrangements providing
                        Executive with substantially similar benefits); the
                        taking of any action by the Company which would
                        adversely affect Executive's participation in or
                        materially reduce Executive's benefits under, any of
                        such plans, programs or arrangements; the failure to
                        continue, or the taking of any action which would
                        deprive Executive, of any material fringe benefit
                        enjoyed by Executive immediately prior to such Change in
                        Control; or the failure by the Company to provide
                        Executive with the number of paid vacation days to which
                        Executive was entitled immediately prior to such Change
                        in Control;

                        (6) The failure by the Company to obtain an assumption
                        in writing of the obligations of the Company to perform
                        this Agreement by any successor to the Company and to
                        provide such assumption to the Executive prior to any
                        Change in Control; or

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                        (7) Any purported termination of Executive's employment
                        by the Company during the term of this Agreement which
                        is not effected pursuant to all of the requirements of
                        this Agreement; and, for purposes of this Agreement, no
                        such purported termination shall be effective.

                  f. Subsidiary. "Subsidiary" means any corporation in an
                  unbroken chain of corporations, beginning with Peapack, if
                  each of the corporations other than the last corporation in
                  the unbroken chain owns stock possessing 50% or more of the
                  total combined voting power of all classes of stock in one of
                  the other corporations in such chain.

            47. Employment. The Company hereby agrees to employ the Executive,
            and the Executive hereby accepts employment, during the Contract
            Period upon the terms and conditions set forth herein.

            48. Position. During the Contract Period the Executive shall be
            employed as Executive Vice President & CFO of Peapack and the Bank,
            or such other corporate or divisional profit center as shall then be
            the principal successor to the business, assets and properties of
            the Company, with substantially the same title and the same duties
            and responsibilities as before the Change in Control. The Executive
            shall devote his full time and attention to the business of the
            Company, and shall not during the Contract Period be engaged in any
            other business activity. This paragraph shall not be construed as
            preventing the Executive from managing any investments of his which
            do not require any service on his part in the operation of such
            investments.

            49. Cash Compensation. The Company shall pay to the Executive
            compensation for his services during the Contract Period as follows:

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                  a. Base Salary. A base annual salary equal to the annual
                  salary in effect as of the Change in Control. The annual
                  salary shall be payable in installments in accordance with the
                  Company's usual payroll method.

                  b. Annual Bonus. An annual cash bonus equal to at least the
                  average of the bonuses paid to the Executive in the three
                  years prior to the Change in Control. The bonus shall be
                  payable at the time and in the manner which the Company paid
                  such bonuses prior to the Change in Control.

                  c. Annual Review. The Board of Directors of the Company during
                  the Contract Period shall review annually, or at more frequent
                  intervals which the Board determines is appropriate, the
                  Executive's compensation and shall award him additional
                  compensation to reflect the Executive's performance, the
                  performance of the Company and competitive compensation
                  levels, all as determined in the discretion of the Board of
                  Directors.

            50. Expenses and Fringe Benefits.

                  a. Expenses. During the Contract Period, the Executive shall
                  be entitled to reimbursement for all business expenses
                  incurred by him with respect to the business of the Company in
                  the same manner and to the same extent as such expenses were
                  previously reimbursed to him immediately prior to the Change
                  in Control.

                  b. Supplemental Retirement Plan. During the Contract Period,
                  if the Executive was entitled to benefits under any
                  supplemental retirement plan prior to the Change in Control,
                  the Executive shall be entitled to continued benefits under
                  such plan after the Change in Control and such plan may not be
                  modified to reduce or eliminate such benefits during the
                  Contract Period.

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                  c. Club Membership and Automobile. If prior to the Change in
                  Control, the Executive was entitled to membership in a country
                  club and/or the use of an automobile, he shall be entitled to
                  the same membership and/or use of an automobile at least
                  comparable to the automobile provided to him prior to the
                  Change in Control.

                  d. Other Benefits. The Executive also shall be entitled to
                  vacations and sick days, in accordance with the practices and
                  procedures of the Company, as such existed immediately prior
                  to the Change in Control. During the Contract Period, the
                  Executive also shall be entitled to hospital, health, medical
                  and life insurance, and any other benefits enjoyed, from time
                  to time, by senior officers of the Company, all upon terms as
                  favorable as those enjoyed by other senior officers of the
                  Company. Notwithstanding anything in this paragraph 5(d) to
                  the contrary, if the Company adopts any change in the benefits
                  provided for senior officers of the Company, and such policy
                  is uniformly applied to all officers of the Company (and any
                  successor or acquiror of the Company, if any), including the
                  chief executive officer of such entities, then no such change
                  shall be deemed to be contrary to this paragraph.

            51. Termination for Cause. The Company shall have the right to
            terminate the Executive for Cause, upon written notice to him of the
            termination which notice shall specify the reasons for the
            termination. In the event of termination for Cause the Executive
            shall not be entitled to any further benefits under this Agreement.

            52. Disability. During the Contract Period if the Executive becomes
            permanently disabled, or is unable to perform his duties hereunder
            for 4 consecutive months in any 12 month period, the Company may
            terminate the employment of the Executive. In such event, the
            Executive shall not be entitled to any further benefits under this
            Agreement.

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            53. Death Benefits. Upon the Executive's death during the Contract
            Period, his estate shall not be entitled to any further benefits
            under this Agreement.

            54. Termination Without Cause or Resignation for Good Reason. The
            Company may terminate the Executive without Cause during the
            Contract Period by written notice to the Executive providing four
            weeks notice. The Executive may resign for Good Reason during the
            Contract Period upon four weeks' written notice to the Company
            specifying facts and circumstances claimed to support the Good
            Reason. The Executive shall be entitled to give a Notice of
            Termination that his or her employment is being terminated for Good
            Reason at any time during the Contract Period, not later than twelve
            months after any occurrence of an event stated to constitute Good
            Reason. If the Company terminates the Executive's employment during
            the Contract Period without Cause or if the Executive Resigns for
            Good Reason, the Company shall, subject to Section 12 hereof:

            (a) Within 20 business days of the termination of employment pay the
            Executive a lump sum severance payment in an amount equal to three
            (3.0) times the highest annual cash compensation, consisting solely
            of salary and bonus, as well as any 401(k) deferral, paid to the
            Executive during any calendar year in each of the three calendar
            years immediately prior to the Change in Control, along with any
            Gross-Up Payment due under Section 12 hereof for the calendar year
            of the termination; and

            (b) Continue to provide the Executive during the remainder of the
            Contract Period with health, hospitalization and medical insurance,
            as were provided at the time of the termination of his employment
            with the Company, at the Company's cost (subject to standard
            deductibles and co-pays, and the Executive's continuing payment of
            his part of the premium for family coverage, if applicable).

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            The Executive shall not have a duty to mitigate the damages suffered
by him in connection with the termination by the Company of his employment
without Cause or a resignation for Good Reason during the Contract Period. If
the Company fails to pay the Executive the lump sum amount due him hereunder or
the Gross-Up Payment due under Section 12 hereof, or to provide him with the
health, hospitalization and medical insurance benefits due under this section,
the Executive, after giving 10 days' written notice to the Company identifying
the Company's failure, shall be entitled to recover from the Company all of his
reasonable legal fees and expenses incurred in connection with his enforcement
against the Company of the terms of this Agreement. The Executive shall be
denied payment of his legal fees and expenses only if a court finds that the
Executive sought payment of such fees without reasonable cause and not in good
faith.

            55. Resignation Without Good Reason. The Executive shall be entitled
            to resign from the employment of the Company at any time during the
            Contract Period without Good Reason, but upon such resignation the
            Executive shall not be entitled to any additional compensation for
            the time after which he ceases to be employed by the Company, and
            shall not be entitled to any of the other benefits provided
            hereunder. No such resignation shall be effective unless in writing
            with four weeks' notice thereof.

            56. Non-Disclosure of Confidential Information.

                  a. Non-Disclosure of Confidential Information. Except in the
                  course of his employment with the Company and in the pursuit
                  of the business of the Company or any of its subsidiaries or
                  affiliates, the Executive shall not, at any time during or
                  following the Contract Period, disclose or use, any
                  confidential information or proprietary data of the Company or
                  any of its subsidiaries or affiliates. The Executive

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                  agrees that, among other things, all information concerning
                  the identity of and the Company's relations with its customers
                  is confidential information.

                  b. Specific Performance. Executive agrees that the Company
                  does not have an adequate remedy at law for the breach of this
                  section and agrees that he shall be subject to injunctive
                  relief and equitable remedies as a result of the breach of
                  this section. The invalidity or unenforceability of any
                  provision of this Agreement shall not affect the force and
                  effect of the remaining valid portions.

                  c. Survival. This section shall survive the termination of the
                  Executive's employment hereunder and the expiration of this
                  Agreement.

            57. Gross-Up for Taxes.

                  a. Additional Payments. If, for any taxable year, Executive
                  shall be liable for the payment of an excise tax under Section
                  4999 or other substitute or similar tax assessment (the
                  "Excise Tax") of the Internal Revenue Code of 1986, as amended
                  (the "Code"), including the corresponding provisions of any
                  succeeding law, with respect to any payments under this
                  Section 12 or any payments and/or benefits under this
                  Agreement or under any benefit plan of the Company applicable
                  to Executive individually or generally to executives or
                  employees of the Company, then, the Company shall pay to the
                  Executive, subject to Section 15 hereof by paying the
                  withholding for the Executive, an additional amount (the
                  "Gross-Up Payment") such that the net amount retained by the
                  Executive, after deduction of any Excise Tax on such payments
                  and benefits and any federal, state and local income tax and
                  Excise Tax upon payments provided for in this Section 12,
                  shall be equal to the payments due to the Executive hereunder
                  and the payments and/or

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<PAGE>

                  benefits due to the Executive under any benefit plan of the
                  Company. Each Gross-Up Payment shall be made in good funds
                  upon the later of (i) five (5) days after the date the
                  Executive notifies the Company or the Company receives notice
                  from the certified public accounting firm of its need to make
                  such Gross-Up Payment, or (ii) the date of any payment causing
                  the liability for such Excise Tax. The amount of any Gross-Up
                  Payment under this section shall be computed by a nationally
                  recognized certified public accounting firm designated jointly
                  by the Company and the Executive. The cost of such services by
                  the accounting firm shall be paid by the Company. If the
                  Company and the Executive are unable to designate jointly the
                  accounting firm, then the firm shall be the accounting firm
                  used by the Company immediately prior to the Change in
                  Control.

                  b. IRS Disputed Claims. The Executive shall notify the company
                  in writing of any claim by the Internal Revenue Service
                  ("IRS") that, if successful, would require the payment by the
                  Company of a Gross-Up Payment in addition to that payment
                  previously paid by the Company pursuant to this section. Such
                  notification shall be given an soon as practicable but no
                  later than fifteen (15) business days after the Executive is
                  informed in writing of such claim and shall apprise the
                  Company of the nature of such claim, the date on which such
                  claim is requested to be paid, and attach a copy of the IRS
                  notice. The Executive shall not pay such claim prior to the
                  expiration of the thirty (30) day period following the date on
                  which the Executive gives such notice to the Company (or such
                  shorter period ending on the date that any payment of taxes
                  with respect to such claim is

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<PAGE>

                  due). If the Company notifies the Executive in writing prior
                  to the expiration of such period that it desires to contest
                  such claim, the Executive shall:

                        (i) Give the Company any information reasonably
                        requested by the Company relating to such claim;

                        (ii) Take such action in connection with contesting such
                        claim as the Company shall reasonably request in writing
                        from time to time, including, without limitation,
                        accepting legal representation with respect to such
                        claim by an attorney reasonably selected by the Company;

                        (iii) Cooperate with the Company in good faith in order
                        effectively to contest such claim; and

                        (iv) Permit the Company to participate in any
                        proceedings relating to such claim; provided, however
                        that the Company shall pay directly all costs and
                        expenses (including legal and accounting fees, as well
                        as other expenses and any additional interest and
                        penalties) incurred by the Executive and the Company in
                        connection with an IRS levy, contest or claim and
                        provided further that the Company shall not take any
                        action or fail to make any Gross-Up Payment so as to
                        cause the assessment of any IRS levy and the Company
                        shall cause any levy so assessed to be immediately
                        released by payment of the Gross-Up Amount, together
                        with all costs, interest and penalties.

            58. Term and Effect Prior to Change in Control.

                  a. Term. Except as otherwise provided for hereunder, this
                  Agreement shall commence on the date hereof and shall remain
                  in effect for a period of 3 years from the

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                  date hereof (the "Initial Term") or until the end of the
                  Contract Period, whichever is later. The Initial Term shall be
                  automatically extended for an additional one year period on
                  the anniversary date hereof (so that the Initial Term is
                  always 3 years) unless, prior to a Change in Control, the
                  Chairman of the Board of Directors of Peapack notifies the
                  Executive in writing at any time that the Contract is not so
                  extended, in which case the Initial Term shall end upon the
                  later of (i) 3 years after the date hereof, or (ii) 2 years
                  after the date of such written notice.

                  b. No Effect Prior to Change in Control. This Agreement shall
                  not effect any rights of the Company to terminate the
                  Executive prior to a Change in Control or any rights of the
                  Executive granted in any other agreement or contract or plan
                  with the Company. The rights, duties and benefits provided
                  hereunder shall only become effective upon and after a Change
                  in Control. If the full-time employment of the Executive by
                  the Company is ended for any reason prior to a Change in
                  Control, this Agreement shall thereafter be of no further
                  force and effect.

            59. Severance Compensation and Benefits Not in Derogation of Other
            Benefits. Anything to the contrary herein contained notwithstanding,
            the payment or obligation to pay any monies, or granting of any
            benefits, rights or privileges to Executive as provided in this
            Agreement shall not be in lieu or derogation of the rights and
            privileges that the Executive now has or will have under any plans
            or programs of or agreements with the Company, except that if the
            Executive received any payment hereunder, he shall not be entitled
            to any payment under the Company's severance policies for officers
            and employees.

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            60. Payroll and Withholding Taxes. All payments to be made or
            benefits to be provided hereunder by the Company shall be subject to
            applicable federal and state payroll or withholding taxes. Any
            Gross-Up Payment shall be made in the form of withholding taxes and
            shall not be paid to the Executive, but shall be sent to the IRS in
            the ordinary course of the Company's payroll withholding.

            61. Miscellaneous. This Agreement is the joint and several
            obligation of the Bank and Peapack. The terms of this Agreement
            shall be governed by, and interpreted and construed in accordance
            with the provisions of, the laws of New Jersey. This Agreement
            supersedes all prior agreements and understandings with respect to
            the matters covered hereby, including expressly any prior agreement
            with the Company concerning change-in-control benefits. The parties
            hereto expressly agree that the Severance Agreement between the Bank
            and the Executive dated May 6, 1997, is hereby terminated in its
            entirety. The amendment or termination of this Agreement may be made
            only in a writing executed by the Company and the Executive, and no
            amendment or termination of this Agreement shall be effective unless
            and until made in such a writing. This Agreement shall be binding
            upon any successor (whether direct or indirect, by purchase, merge,
            consolidation, liquidation or otherwise) to all or substantially all
            of the assets of the Company. This Agreement is personal to the
            Executive and the Executive may not assign any of his rights or
            duties hereunder but this Agreement shall be enforceable by the
            Executive's legal representatives, executors or administrators. This
            Agreement may be executed in two or more counterparts, each of which
            shall be deemed an original, and it shall not be necessary in making
            proof of this Agreement to produce or account for more than one such
            counterpart.

                           (signature page to follow)

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            IN WITNESS WHEREOF, Peapack-Gladstone Bank and Peapack-Gladstone
Financial Corporation each have caused this Agreement to be signed by their duly
authorized representatives pursuant to the authority of their Boards of
Directors, and the Executive has personally executed this Agreement, all as of
the day and year first written above.

ATTEST:                                 PEAPACK-GLADSTONE
                                        FINANCIAL CORPORATION

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           ---------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

ATTEST:                                 PEAPACK-GLADSTONE BANK

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           ---------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

WITNESS:

ANTOINETTE ROSELL                       ARTHUR F. BIRMINGHAM
-----------------                       ---------------------------
Antoinette Rosell                       Arthur F. Birmingham, Executive

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                              AMENDED AND RESTATED
                           CHANGE-IN-CONTROL AGREEMENT
                               GARRETT P. BROMLEY

            THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), is
made as of this 11th day of December, 2003, among PEAPACK-GLADSTONE BANK
("Bank"), a New Jersey state banking association with its principal office at
190 Main Street, Gladstone, New Jersey 07934, PEAPACK-GLADSTONE FINANCIAL
CORPORATION ("Peapack"), a New Jersey Corporation which maintains its principal
office at 158 Route 206 North, Gladstone, New Jersey 07934 (Peapack and the Bank
collectively are the "Company") and Garrett P. Bromley (the "Executive"). This
Agreement amends and restates in its entirety the Employment Agreement dated as
of April 3, 1998 by and among the Executive, Peapack, and the Bank.

                                   BACKGROUND

            WHEREAS, the Executive has been continuously employed by the Bank
for many years;

            WHEREAS, the Executive throughout his tenure has worked diligently
in his position in the business of the Bank and Peapack;

            WHEREAS, the Board of Directors of the Bank and Peapack believe that
the future services of the Executive are of great value to the Bank and Peapack
and that it is important for the growth and development of the Bank that the
Executive continue in his position;

            WHEREAS, if the Company receives any proposal from a third person
concerning a possible business combination with, or acquisition of equities
securities of, the Company, the Board of Directors of the Company (the "Board")
believes it is imperative that the Company and the Board be able to rely upon
the Executive to continue in his position, and that they be able to receive and
rely upon his

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advice, if they request it, as to the best interests of the Company and its
shareholders, without concern that the Executive might be distracted by the
personal uncertainties and risks created by such a proposal;

            WHEREAS, to achieve that goal, and to retain the Executive's
services prior to any such activity, the Board of Directors and the Executive
have agreed to enter into this Agreement to govern the Executive's termination
benefits in the event of a Change in Control of the Company, as hereinafter
defined.

            NOW, THEREFORE, to assure the Company that it will have the
continued dedication of the Executive and the availability of his advice and
counsel notwithstanding the possibility, threat or occurrence of a bid to take
over control of the Company, and to induce the Executive to remain in the employ
of the Company, and for other good and valuable consideration, the Company and
the Executive, each intending to be legally bound hereby agree as follows:

            Definitions

                  a. Cause. For purposes of this Agreement "Cause" with respect
                  to the termination by the Company of Executive's employment
                  shall mean (i) willful and continued failure by the Executive
                  to perform his duties for the Company under this Agreement
                  after at least one warning in writing from the Company's Board
                  of Directors identifying specifically any such failure; (ii)
                  the willful engaging by the Executive in misconduct which
                  causes material injury to the Company as specified in a
                  written notice to the Executive from the Board of Directors;
                  or (iii) conviction of a crime, other than a traffic
                  violation, habitual drunkenness, drug abuse, or excessive
                  absenteeism other than for illness, after a warning (with
                  respect to drunkenness or absenteeism only) in writing from
                  the Board of Directors to refrain from such behavior. No act
                  or failure to act on the part of the Executive shall be
                  considered willful unless done, or omitted to be done, by the

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                  Executive not in good faith and without reasonable belief that
                  the action or omission was in the best interest of the
                  Company.

                  b. Change in Control. "Change in Control" means any of the
                  following events: (i) when Peapack or a Subsidiary acquires
                  actual knowledge that any person (as such term is used in
                  Sections 13(d) and 14(d)(2) of the Exchange Act), other than
                  an affiliate of Peapack or a Subsidiary or an employee benefit
                  plan established or maintained by Peapack, a Subsidiary or any
                  of their respective affiliates, is or becomes the beneficial
                  owner (as defined in Rule 13d-3 of the Exchange Act) directly
                  or indirectly, of securities of Peapack representing more than
                  twenty-five percent (25%) of the combined voting power of
                  Peapack's then outstanding securities (a "Control Person"),
                  (ii) upon the first purchase of Peapack's common stock
                  pursuant to a tender or exchange offer (other than a tender or
                  exchange offer made by Peapack, a Subsidiary or an employee
                  benefit plan established or maintained by Peapack, a
                  Subsidiary or any of their respective affiliates), (iii) upon
                  the approval by Peapack's stockholders of (A) a merger or
                  consolidation of Peapack with or into another corporation
                  (other than a merger or consolidation which is approved by at
                  least two-thirds of the Continuing Directors (as hereinafter
                  defined) and the definitive agreement for which provides that
                  at least two-thirds of the directors of the surviving or
                  resulting corporation immediately after the transaction are
                  Continuing Directors (a "Non-Control Transaction")), (B) a
                  sale or disposition of all or substantially all of Peapack's
                  assets or (C) a plan of liquidation or dissolution of Peapack,
                  (iv) if during any period of two (2) consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board (the "Continuing Directors") cease for any reason to
                  constitute at least two-thirds thereof or, following a

                                      109
<PAGE>

                  Non-Control Transaction, two-thirds of the board of directors
                  of the surviving or resulting corporation; provided that any
                  individual whose election or nomination for election as a
                  member of the Board (or, following a Non-Control Transaction,
                  the board of directors of the surviving or resulting
                  corporation) was approved by a vote of at least two-thirds of
                  the Continuing Directors then in office shall be considered a
                  Continuing Director, or (v) upon a sale of (A) common stock of
                  the Bank if after such sale any person (as such term is used
                  in Section 13(d) and 14(d)(2) of the Exchange Act) other than
                  Peapack, an employee benefit plan established or maintained by
                  Peapack or a Subsidiary, or an affiliate of Peapack or a
                  Subsidiary, owns a majority of the Bank's common stock or (B)
                  all or substantially all of the Bank's assets (other than in
                  the ordinary course of business). No person shall be
                  considered a Control Person for purposes of clause (i) above
                  if (A) such person is or becomes the beneficial owner,
                  directly or indirectly, of more than ten percent (10%) but
                  less than twenty-five percent (25%) of the combined voting
                  power of Peapack's then outstanding securities if the
                  acquisition of all voting securities in excess of ten percent
                  (10%) was approved in advance by a majority of the Continuing
                  Directors then in office or (B) such person acquires in excess
                  of ten percent (10%) of the combined voting power of Peapack's
                  then outstanding voting securities in violation of law and by
                  order of a court of competent jurisdiction, settlement or
                  otherwise, disposes or is required to dispose of all
                  securities acquired in violation of law.

                  c. Contract Period. "Contract Period" shall mean the period
                  commencing the day immediately preceding a Change in Control
                  and ending on the earlier of (i) the third anniversary of the
                  Change in Control or (ii) the death of the Executive. For the
                  purpose

                                      110
<PAGE>

                  of this Agreement, a Change in Control shall be deemed to have
                  occurred at the date specified in the definition of
                  Change-in-Control.

                  d. Exchange Act. "Exchange Act" means the Securities Exchange
                  Act of 1934, as amended.

                  e. Good Reason. When used with reference to a voluntary
                  termination by Executive of his employment with the Company,
                  "Good Reason" shall mean any of the following, if taken
                  without Executive's express written consent:

                        (1) The assignment to Executive of any duties
                        inconsistent with, or the reduction of powers or
                        functions associated with, Executive's position, title,
                        duties, responsibilities and status with the Company
                        immediately prior to a Change in Control; any removal of
                        Executive from, or any failure to re-elect Executive to,
                        any position(s) or office(s) Executive held immediately
                        prior to such Change in Control. A change in title or
                        positions resulting merely from a merger of the Company
                        into or with another bank or company which does not
                        downgrade in any way the Executive's powers, duties and
                        responsibilities shall not meet the requirements of this
                        paragraph;

                        (2) A reduction by the Company in Executive's annual
                        base compensation as in effect immediately prior to a
                        Change in Control or the failure to award Executive
                        annual increases in accordance herewith;

                        (3) A failure by the Company to continue any bonus plan
                        in which Executive participated immediately prior to the
                        Change in control or a failure by the Company to
                        continue Executive as a participant in such plan on at
                        least the same basis as Executive participated in such
                        plan prior to the Change in Control;

                                      111
<PAGE>

                        (4) The Company's transfer of Executive to another
                        geographic location outside of New Jersey or more than
                        25 miles from his present office location, except for
                        required travel on the Company's business to an extent
                        substantially consistent with Executive's business
                        travel obligations immediately prior to such Change in
                        Control;

                        (5) The failure by the Company to continue in effect any
                        employee benefit plan, program or arrangement
                        (including, without limitation the Company's retirement
                        plan, benefit equalization plan, life insurance plan,
                        health and accident plan, disability plan, deferred
                        compensation plan or long term stock incentive plan) in
                        which Executive is participating immediately prior to a
                        Change in Control (except that the Company may institute
                        or continue plans, programs or arrangements providing
                        Executive with substantially similar benefits); the
                        taking of any action by the Company which would
                        adversely affect Executive's participation in or
                        materially reduce Executive's benefits under, any of
                        such plans, programs or arrangements; the failure to
                        continue, or the taking of any action which would
                        deprive Executive, of any material fringe benefit
                        enjoyed by Executive immediately prior to such Change in
                        Control; or the failure by the Company to provide
                        Executive with the number of paid vacation days to which
                        Executive was entitled immediately prior to such Change
                        in Control;

                        (6) The failure by the Company to obtain an assumption
                        in writing of the obligations of the Company to perform
                        this Agreement by any successor to the Company and to
                        provide such assumption to the Executive prior to any
                        Change in Control; or

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<PAGE>

                        (7) Any purported termination of Executive's employment
                        by the Company during the term of this Agreement which
                        is not effected pursuant to all of the requirements of
                        this Agreement; and, for purposes of this Agreement, no
                        such purported termination shall be effective.

                  f. Subsidiary. "Subsidiary" means any corporation in an
                  unbroken chain of corporations, beginning with Peapack, if
                  each of the corporations other than the last corporation in
                  the unbroken chain owns stock possessing 50% or more of the
                  total combined voting power of all classes of stock in one of
                  the other corporations in such chain.

            62. Employment. The Company hereby agrees to employ the Executive,
            and the Executive hereby accepts employment, during the Contract
            Period upon the terms and conditions set forth herein.

            63. Position. During the Contract Period the Executive shall be
            employed as Executive Vice President of Peapack and the Bank, or
            such other corporate or divisional profit center as shall then be
            the principal successor to the business, assets and properties of
            the Company, with substantially the same title and the same duties
            and responsibilities as before the Change in Control. The Executive
            shall devote his full time and attention to the business of the
            Company, and shall not during the Contract Period be engaged in any
            other business activity. This paragraph shall not be construed as
            preventing the Executive from managing any investments of his which
            do not require any service on his part in the operation of such
            investments.

            64. Cash Compensation. The Company shall pay to the Executive
            compensation for his services during the Contract Period as follows:

                                      113
<PAGE>

                  a. Base Salary. A base annual salary equal to the annual
                  salary in effect as of the Change in Control. The annual
                  salary shall be payable in installments in accordance with the
                  Company's usual payroll method.

                  b. Annual Bonus. An annual cash bonus equal to at least the
                  average of the bonuses paid to the Executive in the three
                  years prior to the Change in Control. The bonus shall be
                  payable at the time and in the manner which the Company paid
                  such bonuses prior to the Change in Control.

                  c. Annual Review. The Board of Directors of the Company during
                  the Contract Period shall review annually, or at more frequent
                  intervals which the Board determines is appropriate, the
                  Executive's compensation and shall award him additional
                  compensation to reflect the Executive's performance, the
                  performance of the Company and competitive compensation
                  levels, all as determined in the discretion of the Board of
                  Directors.

            65. Expenses and Fringe Benefits.

                  a. Expenses. During the Contract Period, the Executive shall
                  be entitled to reimbursement for all business expenses
                  incurred by him with respect to the business of the Company in
                  the same manner and to the same extent as such expenses were
                  previously reimbursed to him immediately prior to the Change
                  in Control.

                  b. Supplemental Retirement Plan. During the Contract Period,
                  if the Executive was entitled to benefits under any
                  supplemental retirement plan prior to the Change in Control,
                  the Executive shall be entitled to continued benefits under
                  such plan after the Change in Control and such plan may not be
                  modified to reduce or eliminate such benefits during the
                  Contract Period.

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<PAGE>

                  c. Club Membership and Automobile. If prior to the Change in
                  Control, the Executive was entitled to membership in a country
                  club and/or the use of an automobile, he shall be entitled to
                  the same membership and/or use of an automobile at least
                  comparable to the automobile provided to him prior to the
                  Change in Control.

                  d. Other Benefits. The Executive also shall be entitled to
                  vacations and sick days, in accordance with the practices and
                  procedures of the Company, as such existed immediately prior
                  to the Change in Control. During the Contract Period, the
                  Executive also shall be entitled to hospital, health, medical
                  and life insurance, and any other benefits enjoyed, from time
                  to time, by senior officers of the Company, all upon terms as
                  favorable as those enjoyed by other senior officers of the
                  Company. Notwithstanding anything in this paragraph 5(d) to
                  the contrary, if the Company adopts any change in the benefits
                  provided for senior officers of the Company, and such policy
                  is uniformly applied to all officers of the Company (and any
                  successor or acquiror of the Company, if any), including the
                  chief executive officer of such entities, then no such change
                  shall be deemed to be contrary to this paragraph.

            66. Termination for Cause. The Company shall have the right to
            terminate the Executive for Cause, upon written notice to him of the
            termination which notice shall specify the reasons for the
            termination. In the event of termination for Cause the Executive
            shall not be entitled to any further benefits under this Agreement.

            67. Disability. During the Contract Period if the Executive becomes
            permanently disabled, or is unable to perform his duties hereunder
            for 4 consecutive months in any 12 month period, the Company may
            terminate the employment of the Executive. In such event, the
            Executive shall not be entitled to any further benefits under this
            Agreement.

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<PAGE>

            68. Death Benefits. Upon the Executive's death during the Contract
            Period, his estate shall not be entitled to any further benefits
            under this Agreement.

            69. Termination Without Cause or Resignation for Good Reason. The
            Company may terminate the Executive without Cause during the
            Contract Period by written notice to the Executive providing four
            weeks notice. The Executive may resign for Good Reason during the
            Contract Period upon four weeks' written notice to the Company
            specifying facts and circumstances claimed to support the Good
            Reason. The Executive shall be entitled to give a Notice of
            Termination that his or her employment is being terminated for Good
            Reason at any time during the Contract Period, not later than twelve
            months after any occurrence of an event stated to constitute Good
            Reason. If the Company terminates the Executive's employment during
            the Contract Period without Cause or if the Executive Resigns for
            Good Reason, the Company shall, subject to Section 12 hereof:

            (a) Within 20 business days of the termination of employment pay the
            Executive a lump sum severance payment in an amount equal to three
            (3.0) times the highest annual cash compensation, consisting solely
            of salary and bonus, as well as any 401(k) deferral, paid to the
            Executive during any calendar year in each of the three calendar
            years immediately prior to the Change in Control, along with any
            Gross-Up Payment due under Section 12 hereof for the calendar year
            of the termination; and

            (b) Continue to provide the Executive during the remainder of the
            Contract Period with health, hospitalization and medical insurance,
            as were provided at the time of the termination of his employment
            with the Company, at the Company's cost (subject to standard
            deductibles and co-pays, and the Executive's continuing payment of
            his part of the premium for family coverage, if applicable).

                                      116
<PAGE>

            The Executive shall not have a duty to mitigate the damages suffered
by him in connection with the termination by the Company of his employment
without Cause or a resignation for Good Reason during the Contract Period. If
the Company fails to pay the Executive the lump sum amount due him hereunder or
the Gross-Up Payment due under Section 12 hereof, or to provide him with the
health, hospitalization and medical insurance benefits due under this section,
the Executive, after giving 10 days' written notice to the Company identifying
the Company's failure, shall be entitled to recover from the Company all of his
reasonable legal fees and expenses incurred in connection with his enforcement
against the Company of the terms of this Agreement. The Executive shall be
denied payment of his legal fees and expenses only if a court finds that the
Executive sought payment of such fees without reasonable cause and not in good
faith.

            70. Resignation Without Good Reason. The Executive shall be entitled
            to resign from the employment of the Company at any time during the
            Contract Period without Good Reason, but upon such resignation the
            Executive shall not be entitled to any additional compensation for
            the time after which he ceases to be employed by the Company, and
            shall not be entitled to any of the other benefits provided
            hereunder. No such resignation shall be effective unless in writing
            with four weeks' notice thereof.

            71. Non-Disclosure of Confidential Information.

                  a. Non-Disclosure of Confidential Information. Except in the
                  course of his employment with the Company and in the pursuit
                  of the business of the Company or any of its subsidiaries or
                  affiliates, the Executive shall not, at any time during or
                  following the Contract Period, disclose or use, any
                  confidential information or proprietary data of the Company or
                  any of its subsidiaries or affiliates. The Executive

                                      117
<PAGE>

                  agrees that, among other things, all information concerning
                  the identity of and the Company's relations with its customers
                  is confidential information.

                  b. Specific Performance. Executive agrees that the Company
                  does not have an adequate remedy at law for the breach of this
                  section and agrees that he shall be subject to injunctive
                  relief and equitable remedies as a result of the breach of
                  this section. The invalidity or unenforceability of any
                  provision of this Agreement shall not affect the force and
                  effect of the remaining valid portions.

                  c. Survival. This section shall survive the termination of the
                  Executive's employment hereunder and the expiration of this
                  Agreement.

            72. Gross-Up for Taxes.

                  a. Additional Payments. If, for any taxable year, Executive
                  shall be liable for the payment of an excise tax under Section
                  4999 or other substitute or similar tax assessment (the
                  "Excise Tax") of the Internal Revenue Code of 1986, as amended
                  (the "Code"), including the corresponding provisions of any
                  succeeding law, with respect to any payments under this
                  Section 12 or any payments and/or benefits under this
                  Agreement or under any benefit plan of the Company applicable
                  to Executive individually or generally to executives or
                  employees of the Company, then, the Company shall pay to the
                  Executive, subject to Section 15 hereof by paying the
                  withholding for the Executive, an additional amount (the
                  "Gross-Up Payment") such that the net amount retained by the
                  Executive, after deduction of any Excise Tax on such payments
                  and benefits and any federal, state and local income tax and
                  Excise Tax upon payments provided for in this Section 12,
                  shall be equal to the payments due to the Executive hereunder
                  and the payments and/or

                                      118
<PAGE>

                  benefits due to the Executive under any benefit plan of the
                  Company. Each Gross-Up Payment shall be made in good funds
                  upon the later of (i) five (5) days after the date the
                  Executive notifies the Company or the Company receives notice
                  from the certified public accounting firm of its need to make
                  such Gross-Up Payment, or (ii) the date of any payment causing
                  the liability for such Excise Tax. The amount of any Gross-Up
                  Payment under this section shall be computed by a nationally
                  recognized certified public accounting firm designated jointly
                  by the Company and the Executive. The cost of such services by
                  the accounting firm shall be paid by the Company. If the
                  Company and the Executive are unable to designate jointly the
                  accounting firm, then the firm shall be the accounting firm
                  used by the Company immediately prior to the Change in
                  Control.

                  b. IRS Disputed Claims. The Executive shall notify the company
                  in writing of any claim by the Internal Revenue Service
                  ("IRS") that, if successful, would require the payment by the
                  Company of a Gross-Up Payment in addition to that payment
                  previously paid by the Company pursuant to this section. Such
                  notification shall be given an soon as practicable but no
                  later than fifteen (15) business days after the Executive is
                  informed in writing of such claim and shall apprise the
                  Company of the nature of such claim, the date on which such
                  claim is requested to be paid, and attach a copy of the IRS
                  notice. The Executive shall not pay such claim prior to the
                  expiration of the thirty (30) day period following the date on
                  which the Executive gives such notice to the Company (or such
                  shorter period ending on the date that any payment of taxes
                  with respect to such claim is

                                      119
<PAGE>

                  due). If the Company notifies the Executive in writing prior
                  to the expiration of such period that it desires to contest
                  such claim, the Executive shall:

                        (i) Give the Company any information reasonably
                        requested by the Company relating to such claim;

                        (ii) Take such action in connection with contesting such
                        claim as the Company shall reasonably request in writing
                        from time to time, including, without limitation,
                        accepting legal representation with respect to such
                        claim by an attorney reasonably selected by the Company;

                        (iii) Cooperate with the Company in good faith in order
                        effectively to contest such claim; and

                        (iv) Permit the Company to participate in any
                        proceedings relating to such claim; provided, however
                        that the Company shall pay directly all costs and
                        expenses (including legal and accounting fees, as well
                        as other expenses and any additional interest and
                        penalties) incurred by the Executive and the Company in
                        connection with an IRS levy, contest or claim and
                        provided further that the Company shall not take any
                        action or fail to make any Gross-Up Payment so as to
                        cause the assessment of any IRS levy and the Company
                        shall cause any levy so assessed to be immediately
                        released by payment of the Gross-Up Amount, together
                        with all costs, interest and penalties.

            73. Term and Effect Prior to Change in Control.

                  a. Term. Except as otherwise provided for hereunder, this
                  Agreement shall commence on the date hereof and shall remain
                  in effect for a period of 3 years from the

                                      120
<PAGE>

                  date hereof (the "Initial Term") or until the end of the
                  Contract Period, whichever is later. The Initial Term shall be
                  automatically extended for an additional one year period on
                  the anniversary date hereof (so that the Initial Term is
                  always 3 years) unless, prior to a Change in Control, the
                  Chairman of the Board of Directors of Peapack notifies the
                  Executive in writing at any time that the Contract is not so
                  extended, in which case the Initial Term shall end upon the
                  later of (i) 3 years after the date hereof, or (ii) 2 years
                  after the date of such written notice.

                  b. No Effect Prior to Change in Control. This Agreement shall
                  not effect any rights of the Company to terminate the
                  Executive prior to a Change in Control or any rights of the
                  Executive granted in any other agreement or contract or plan
                  with the Company. The rights, duties and benefits provided
                  hereunder shall only become effective upon and after a Change
                  in Control. If the full-time employment of the Executive by
                  the Company is ended for any reason prior to a Change in
                  Control, this Agreement shall thereafter be of no further
                  force and effect.

            74. Severance Compensation and Benefits Not in Derogation of Other
            Benefits. Anything to the contrary herein contained notwithstanding,
            the payment or obligation to pay any monies, or granting of any
            benefits, rights or privileges to Executive as provided in this
            Agreement shall not be in lieu or derogation of the rights and
            privileges that the Executive now has or will have under any plans
            or programs of or agreements with the Company, except that if the
            Executive received any payment hereunder, he shall not be entitled
            to any payment under the Company's severance policies for officers
            and employees.

                                      121
<PAGE>

            75. Payroll and Withholding Taxes. All payments to be made or
            benefits to be provided hereunder by the Company shall be subject to
            applicable federal and state payroll or withholding taxes. Any
            Gross-Up Payment shall be made in the form of withholding taxes and
            shall not be paid to the Executive, but shall be sent to the IRS in
            the ordinary course of the Company's payroll withholding.

            76. Miscellaneous. This Agreement is the joint and several
            obligation of the Bank and Peapack. The terms of this Agreement
            shall be governed by, and interpreted and construed in accordance
            with the provisions of, the laws of New Jersey. This Agreement
            supersedes all prior agreements and understandings with respect to
            the matters covered hereby, including expressly any prior agreement
            with the Company concerning change-in-control benefits. The
            amendment or termination of this Agreement may be made only in a
            writing executed by the Company and the Executive, and no amendment
            or termination of this Agreement shall be effective unless and until
            made in such a writing. This Agreement shall be binding upon any
            successor (whether direct or indirect, by purchase, merge,
            consolidation, liquidation or otherwise) to all or substantially all
            of the assets of the Company. This Agreement is personal to the
            Executive and the Executive may not assign any of his rights or
            duties hereunder but this Agreement shall be enforceable by the
            Executive's legal representatives, executors or administrators. This
            Agreement may be executed in two or more counterparts, each of which
            shall be deemed an original, and it shall not be necessary in making
            proof of this Agreement to produce or account for more than one such
            counterpart.

                           (signature page to follow)

                                      122
<PAGE>

            IN WITNESS WHEREOF, Peapack-Gladstone Bank and Peapack-Gladstone
Financial Corporation each have caused this Agreement to be signed by their duly
authorized representatives pursuant to the authority of their Boards of
Directors, and the Executive has personally executed this Agreement, all as of
the day and year first written above.

ATTEST:                                 PEAPACK-GLADSTONE
                                        FINANCIAL CORPORATION

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           ---------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

ATTEST:                                 PEAPACK-GLADSTONE BANK

ANTOINETTE ROSELL                       By: FRANK A. KISSEL
-----------------                           ---------------------------
Antoinette Rosell, Secretary            Frank A. Kissel, Chairman

WITNESS:

ANTOINETTE ROSELL                       GARRETT P. BROMLEY
-----------------                       ---------------------------
Antoinette Rosell                       Garrett P. Bromley, Executive

                                      123Exhibit 10 (I)

                             PEAPACK-GLADSTONE BANK
                     SPLIT DOLLAR PLAN FOR SENIOR MANAGEMENT

     THIS PLAN, hereby made effective this 7th day of September 2001, by
PEAPACK-GLADSTONE BANK, a state-chartered bank located in Gladstone, New Jersey
(the "Bank"), the Participant selected to participate in this Plan (the
"Participant") and Christiana Bank & Trust Company (the "Trustee") as Trustee of
the Peapack-Gladstone Bank Employer's Trust (the "Trust").

                                  INTRODUCTION

     The Bank wishes to attract, retain and reward highly qualified executives.
To further this objective, the Bank is willing to divide the death proceeds of
certain life insurance policies which are owned by the Bank on the lives of the
participating executives with the designated beneficiary of each insured
participating executive. The Bank will pay the life insurance premiums from its
general assets.

                                    Article 1
                               General Definitions

The following terms shall have the meanings specified:

     1.1 "Affiliate" means any company that controls, is controlled by, or is
under common control with the Bank or the Corporation. For this Agreement,
company includes any corporation, partnership, association, limited liability
company or trust.

     1.2 "Base Annual Salary" means the Participant's basic annual salary as of
each January 1st, exclusive of special payments such as bonuses or fees, but
including any salary reductions made in accordance with Sections 125 or 401(k)
of the Code.

     1.3 "Board of Directors" means a majority of the Bank's Board of Directors
or the Compensation Committee designated from time to time by the Bank's Board
of Directors.

     1.4 "Change in Control" means any of the following:

          (A) any person (as such term is used in Sections 13d and 14d-2 of the
     Securities Exchange Act of 1934, as amended (the "Exchange Act"), other
     than the Corporation, a subsidiary of the Corporation, an employee benefit
     plan (or related trust) of the Corporation or a direct or indirect
     subsidiary of the Corporation, or Affiliates of the Corporation (as defined
     in Rule 12b-2 under the Exchange Act), becomes the beneficial owner (as
     determined pursuant to Rule 13d-3 under the Exchange Act), directly or
     indirectly, of

<PAGE>

     securities of the Corporation representing more than 50% of the combined
     voting power of the Corporation's then outstanding securities (other than a
     person owning 10% or more of the voting power of stock on the date hereof);
     or

          (B) the liquidation or dissolution of the Corporation or the
     occurrence of, or execution of an agreement providing for a sale of all or
     substantially all of the assets of the Corporation to an entity which is
     not a direct or indirect subsidiary of the Corporation; or

          (C) the occurrence of, or execution of an agreement providing for a
     reorganization, merger, consolidation or other similar transaction or
     connected series of transactions of the Corporation as a result of which
     either (a) the Corporation does not survive or (b) pursuant to which shares
     of the Corporation common stock ("Common Stock") would be converted into
     cash, securities or other property, unless, in case of either (a) or (b),
     the holders of the Corporation Common Stock immediately prior to such
     transaction will, following the consummation of the transaction,
     beneficially own, directly or indirectly, more than 50% of the combined
     voting power of the then outstanding voting securities entitled to vote
     generally in the election of directors of the corporation surviving,
     continuing or resulting from such transaction; or

          (D) the occurrence of, or execution of an agreement providing for a
     reorganization, merger, consolidation or similar transaction of the
     Corporation, or before any connected series of such transactions, if upon
     consummation of such transaction or transactions, the persons who are
     members of the Board of Directors of the Corporation immediately before
     such transaction or transactions cease or, in the case of the execution of
     an agreement for such transaction or transactions, it is contemplated in
     such agreement that upon consummation such persons would cease to
     constitute a majority of the Board of Directors of the Corporation or, in
     the case where the Corporation does not survive in such transaction, of the
     corporation surviving, continuing or resulting from such transaction or
     transactions; or

          (E) any other event which is at any time designated as a "Change in
     Control" for purposes of this Agreement by a resolution adopted by the
     Board of Directors of the Corporation with the affirmative vote of a
     majority of the non-employee directors in office at the time the resolution
     is adopted; in the event any such resolution is adopted, the Change in
     Control event specified thereby shall be deemed incorporated herein by
     reference and thereafter may not be amended, modified or revoked without
     the written agreement of the Participant; or

          (F) during any period of two consecutive years during the term of this
     Agreement, individuals who at the beginning of such period constitute the
     Board of Directors of the Bank or Corporation cease for any reason to
     constitute at least a majority thereof, unless the election of each
     director who was not a director at the beginning of such period has been
     approved in advance by directors representing at least two-thirds of the
     directors then in office who were directors at the beginning of the period,
     provided however this provision shall not apply in the event two-thirds of
     the Board of Directors at the beginning of a period no longer are directors
     due to death, normal retirement, or other circumstances

                                       2
<PAGE>

     not related to a Change in Control.

     Notwithstanding anything else to the contrary set forth in this Agreement,
if (i) an agreement is executed by the Corporation providing for any of the
transactions or events constituting a Change in Control as defined herein, and
the agreement subsequently expires or is terminated without the transaction or
event being consummated, and (ii) Participant's employment did not terminate
during the period after the agreement and prior to such expiration or
termination, for purposes of this Agreement it shall be as though such agreement
was never executed and no Change in Control event shall be deemed to have
occurred as a result of the execution of such agreement.

     1.5 "Code" means the Internal Revenue Code of 1986, as amended.

     1.6 "Corporation" means Peapack-Gladstone Financial Corporation

     1.7 "Disability" means, if the Participant is covered by a Bank-sponsored
disability policy, total disability is defined in such policy without regard to
any waiting period. If the Participant is not covered by such a policy,
disability means the Participant suffers from a mental or physical impairment
that prevents the Participant from performing the essential functions of his or
her position, with or without a reasonable accommodation. As a condition to any
benefits, the Bank may require the Participant to submit to such physical or
mental evaluations and tests as the Board of Directors deems appropriate.

     1.8 "Insured" means the individual whose life is insured.

     1.9 "Insurer" means the insurance company issuing the life insurance policy
on the life of the insured.

     1.10 "Participant" means the executive who is designated by the Board of
Directors as eligible to participate in the Plan, elects in writing to
participate in the Plan using the form attached hereto as Exhibit A, and signs a
Split Dollar Endorsement for the Policy in which he or she is the Insured.

     1.11 "Policy" or "Policies" means the individual insurance policy (or
policies) adopted by the Board of Directors for purposes of insuring a
Participant's life under this Plan, including any group term life insurance
carried on the Participant's life where the premiums are paid by the Bank.

     1.12 "Plan" means this instrument, including all amendments thereto.

     1.13 "Plan Year" means the calendar year. In the year of implementation,
Plan Year shall mean the period from the date of this Agreement through December
31 of the same year.

     1.14 "Termination of Employment" means that the Participant ceases to be
employed by the Bank for any reason whatsoever other than by reason of a leave
of absence which is approved by the Bank. For purposes of this Agreement, if
there is a dispute over the employment status of

                                       3
<PAGE>

the Participant or the date of the Participant's Termination of Employment, the
Bank shall have the sole and absolute right to decide the dispute. 1.15 "Vested
Insurance Benefit" means the Bank will provide the Participant with continued
insurance coverage from the date of vesting until death, subject to the
forfeiture provisions detailed in Section 5.2 and Article 8. Articles 4 and 5
explain how a Participant achieves vested status.

     1.16 "Years of Service" means the total number of continuous years of
employment with the Corporation or any of its subsidiaries, inclusive of any
approved leaves of absences approved by the Corporation.

                                    Article 2
                                  Participation

     2.1 Eligibility to Participate. The Board of Directors in its sole
discretion may designate from time to time Participants who are eligible to
participate in this Plan. The Board may designate this authority to the Chief
Executive Officer or other senior management if it so chooses.

     2.2 Participation. The eligible executive may participate in this Plan by
executing an Election to Participate (Exhibit A) and a Split Dollar Endorsement.
The Split Dollar Endorsement shall bind the Participant and his or her
beneficiaries, assigns and transferees, to the terms and conditions of this
Plan. A Participant's participation is limited to only Policies where he or she
is the Insured. Exhibit A sets forth the information about the Policy or
Policies and maximum Participant benefit under the Plan.

     2.3 Termination of Participation. A Participant's rights under this Plan
shall cease and his or her participation in this Plan shall terminate if one of
the following events occur: (1) the Participant informs the Bank in writing that
he or she no longer wants to participate or (2) the Plan or any Participant's
rights under the Plan are terminated in accordance with Sections 5.2 or 12.1 of
this Agreement. In the event that the Bank decides to maintain the Policy after
the Participant's termination of participation in the Plan, the Bank shall be
the direct beneficiary of the entire death proceeds of the Policy. The Bank may
document the Participant's termination from the Plan by indicating the date of
termination on Exhibit A.

                                    Article 3
                                Premium Payments

The Trustee, at the direction of the Bank, shall pay all premiums due on all
Policies under this Agreement.

                                       4
<PAGE>

                                    Article 4
                           Policy Ownership/Interests

     4.1 Trust Ownership. The Trust shall own the Policies and shall have the
right to exercise all incidents of ownership and, subject to Article 7, the
Trust may terminate a Policy without the consent of the Insured. With respect to
each Policy, the Trust shall be the direct beneficiary of an amount of death
proceeds equal to the greatest of: (1) the cash surrender value of the policy;
(2) the aggregate premiums paid on the Policy by the Trust less any outstanding
indebtedness to the Insurer; or (3) the amount in excess of the Participant's
interest specified in Section 4.2. If the Trust owns more than one policy on a
Participant, the Policies shall be aggregated with respect to item (3) of this
paragraph.

     4.2 Participant's Interest. Each Participant, or the Participant's
assignee, shall have the right to designate the beneficiary of the death
proceeds of the Policy as specified in Section 4.2.1 or 4.2.2. The Participant
shall also have the right to elect and change settlement options with the
consent of the Trustee and the Insurer.

          4.2.1 Death Prior to Termination of Employment. If the Participant
     dies while employed by the Bank, the Participant's beneficiary shall be
     entitled to a benefit equal to 2.5 times the Participant's Base Annual
     Salary at the date of death; but not in excess of the maximum benefit
     amount specified in Exhibit A.

          4.2.2 Death After Termination of Employment. If the Participant dies
     after Termination of Employment, where such termination did not result from
     Disability and did not follow a Change in Control, the Participant shall be
     entitled to a Vested Insurance Benefit based on the Participant's combined
     age and Years of Service as of the date of termination as follows:

                                                      Post -Retirement Benefit
                                    Years of            As a Multiple of Base
                Age                  Service                Annual Salary
                ---                  -------                -------------
                 50                    15                        1.0
                 55                    15                        1.5
                 60                    15                        2.5
                 65                    15                        2.5

          If the Participant has not achieved a Vested Insurance Benefit, the
     Participant's beneficiary will be limited to a benefit of $25,000.

                                    Article 5
                          Additional Vesting/Forfeiture

     5.1 Disability and Change in Control. In lieu of the vesting schedule
detailed in Section 4.2.2, the Participant shall have a Vested Insurance Benefit
equal to 2.5 times Base Annual

                                       5
<PAGE>

Salary if the Participant terminates employment due to Disability or if the
Participant is in the Bank's employ the date a Change in Control occurs.

     5.2 Forfeiture of Benefit. Notwithstanding the provisions of Sections 4.2.2
and 5.1, the Participant will forfeit his or her Vested Insurance Benefit if:
(1) the Participant violates any of the provisions detailed in Article 8 or, (2)
in the case of a Disabled Participant, if such Participant becomes gainfully
employed by an entity other than the Bank.

                                    Article 6
                          Imputed Income/Reimbursement

     The Bank shall impute income to the Participant in an amount equal to the
annual cost of current life insurance protection on the life of the Participant
measured by the lesser of the Table 2001 rate set forth in Notice 2001-10 (or
the corresponding applicable provision of any later Revenue Ruling) or the
Insurer's current published premium rate for annually renewable term insurance
for standard risks; provided that the Insurer's current published premium rate
meets the limitations set forth in Notice 2001-10 (or the corresponding
applicable provision of any later Revenue Ruling.) The Bank will provide each
Participant with an annual statement of the amount of income reportable by the
Participant for federal and state income tax purposes as a result of such
imputed income.

     After the Participant reaches Normal Retirement Age, the Bank shall
annually pay to the Participant an amount necessary to pay the federal and state
income taxes attributable to the imputed income and to the additional cash
payments under this section. In calculating the cash payments due from the Bank,
the Bank shall use the Corporation's actual marginal income tax rate for the
calendar year immediately preceding the payment to the Participant. The cash
payments shall continue until the Participant's death.

                                    Article 7
                               Comparable Coverage

     7.1 Insurance Policies. If a Participant has a Vested Insurance Benefit,
the Bank may direct the Trustee to provide such benefit through the Policies
purchased at the commencement of this Plan or may direct the Trustee to provide
comparable insurance coverage to the Participant through whatever means the Bank
deems appropriate. If the Participant waives his or her right to the benefit,
the Bank may direct the Trustee to cancel the Policy or Policies on the
Participant, or may continue such coverage and become the direct beneficiary of
the entire death proceeds.

     7.2 Offer to Purchase. If the Bank discontinues a Policy on an active or
vested Participant for any reason, the Bank shall give the Participant at least
thirty (30) days to purchase such Policy. The purchase price shall be the cash
surrender value of the Policy. Such notification shall be in writing.

                                       6
<PAGE>

                                    Article 8
                               General Limitations

     8.1 Excess Parachute or Golden Parachute Payment. Notwithstanding any
provision of this Agreement to the contrary, the benefit provided under this
Agreement shall be forfeited to the extent the benefit would be an excess
parachute payment under Section 280G of the Code or would be a prohibited golden
parachute payment pursuant to 12 C.F.R. ss.359.2 and for which the appropriate
federal banking agency has not given written consent to pay pursuant to 12
C.F.R. ss.359.4.

     8.2 "Termination for Cause. Notwithstanding any provision of this Agreement
to the contrary, the benefit provided under this Agreement shall be forfeited if
the Bank terminates the Participant's employment for:

          (a)  Gross negligence or gross neglect of duties;

          (b)  Commission of a felony or of a gross misdemeanor involving moral
               turpitude; or

          (c)  Fraud, disloyalty, dishonesty or willful violation of any law or
               significant Bank policy resulting in an adverse effect on the
               Bank.

     8.3 Removal. Notwithstanding any provision of this Agreement to the
contrary, the benefit provided under this Agreement shall be forfeited if the
Participant is subject to a final removal or prohibition order issued by an
appropriate federal banking agency pursuant to Section 8(e) of the Federal
Deposit Insurance Act.

     8.4 Competition After Termination of Employment. The Participant shall
forfeit his right to any further benefits if the Participant, without the prior
written consent of the Bank, violates the following described restrictive
covenants.

          8.4.1 Non-compete Provision. The Participant shall not, for the term
     of this Agreement and until all benefits have been distributed, directly or
     indirectly, either as an individual or as a proprietor, stockholder,
     partner, officer, director, employee, agent, consultant or independent
     contractor of any individual, partnership, corporation or other entity
     (excluding an ownership interest of five percent (5%) or less in the stock
     of a publicly traded company):

          (i)  participate in any way in hiring or otherwise engaging, or
               assisting any other person or entity in hiring or otherwise
               engaging, on a temporary, part-time or permanent basis, any
               individual who was employed by the Corporation or any of its
               subsidiaries during the three (3) year period immediately prior
               to the termination of the Participant's employment; or

          (ii) divulge, disclose, or communicate to others in any manner
               whatsoever, any confidential information of the Corporation or
               any of its subsidiaries, including,

                                       7
<PAGE>

               but not limited to, the names and addresses of customers of the
               Corporation or any of its subsidiaries, as they may have existed
               from time to time or of any of the Corporation's or any of its
               subsidiaries prospective customers, work performed or services
               rendered for any customer, any method and/or procedures relating
               to projects or other work developed for the Corporation or any of
               its subsidiaries, earnings or other information concerning the
               Corporation or any of its subsidiaries. The restrictions
               contained in this subparagraph (ii) apply to all information
               regarding the Corporation or any of its subsidiaries unless and
               until it becomes known to the general public from sources other
               than the Participant.

          8.4.2 Judicial Remedies. In the event of a breach or threatened breach
     by the Participant of any provision of these restrictions, the Participant
     recognizes the substantial and immediate harm that a breach or threatened
     breach will impose upon the Corporation or any of its subsidiaries or
     Affiliates, and further recognizes that in such event monetary damages may
     be inadequate to fully protect the Corporation or any of its subsidiaries
     or Affiliates. Accordingly, in the event of a breach or threatened breach
     of this Agreement, the Participant consents to the Corporation's or any of
     its subsidiaries entitlement to such ex parte, preliminary, interlocutory,
     temporary or permanent injunctive, or any other equitable relief,
     protecting and fully enforcing the Corporation' or any of its subsidiaries
     rights hereunder and preventing the Participant from further breaching any
     of his obligations set forth herein. The Participant expressly waives any
     requirement, based on any statute, rule of procedure, or other source, that
     the Corporation or any of its subsidiaries or Affiliates post a bond as a
     condition of obtaining any of the above-described remedies. Nothing herein
     shall be construed as prohibiting the Corporation or any of its
     subsidiaries or Affiliates from pursuing any other remedies available to
     the Corporation or any of its subsidiaries or Affiliates at law or in
     equity for such breach or threatened breach, including the recovery of
     damages from the Participant. The Participant expressly acknowledges and
     agrees that: (i) the restrictions set forth in Section 8.4.1 are
     reasonable, in terms of scope, duration, geographic area, and otherwise,
     (ii) the protections afforded the Corporation or any of its subsidiaries or
     Affiliates in Section 8.4.1 are necessary to protect its legitimate
     business interest, (iii) the restrictions set forth in Section 8.4.1 will
     not be materially adverse to the Participant's employment with the Bank,
     and (iv) his agreement to observe such restrictions forms a material part
     of the consideration for this Agreement.

          8.4.3 Overbreadth of Restrictive Covenant. It is the intention of the
     parties that if any restrictive covenant in this Agreement is determined by
     a court of competent jurisdiction to be overly broad, then the court should
     enforce such restrictive covenant to the maximum extent permitted under the
     law as to area, breadth and duration.

          8.4.4 Change in Control. The non-compete provision detailed in Section
     8.4.1 shall not apply if there is a Change in Control.

     8.5 Suicide or Misstatement. The Participant shall forfeit his benefit
under this Agreement if the Participant commits suicide within two years after
the date of this Agreement, or if the insurance company denies coverage for
material misstatements of fact made by the Participant on any application for
life insurance purchased by the Trust, or any other reason.

                                       8
<PAGE>

                                    Article 9
                                   Assignment

     Any Participant may assign without consideration all interests in his or
her Policy and in this Plan to any person, entity or trust. In the event a
Participant shall transfer all of his/her interest in the Policy, then all of
that Participant's interest in his or her Policy and in the Plan shall be vested
in his/her transferee, subject to such transferee executing agreements binding
them to the provisions of this Plan, who shall be substituted as a party
hereunder, and that Participant shall have no further interest in his or her
Policy or in this Plan.

                                   Article 10
                                     Insurer

     The Insurer shall be bound only by the terms of their corresponding Policy.
Any payments the Insurer makes or actions it takes in accordance with a Policy
shall fully discharge it from all claims, suits and demands of all persons
relating to that Policy. The Insurer shall not be bound by the provisions of
this Plan, except to the extent of any endorsement filed with the Insurer. The
Insurer shall have the right to rely on the Trustee's representations with
regard to any definitions, interpretations, or Policy interests as specified
under this Plan.

                                   Article 11
                                Claims Procedure

     11.1 Claims Procedure. The Bank shall notify any person or entity that
makes a claim against this Plan (the "Claimant"), in writing, within ninety (90)
days of Claimant's written application for benefits, of Claimant's eligibility
or ineligibility for benefits under this Plan. If the Bank determines that
Claimant is not eligible for benefits or full benefits, the notice shall set
forth (1) the specific reasons for such denial, (2) a specific reference to the
provisions of this Plan on which the denial is based, (3) a description of any
additional information or material necessary for the Claimant to perfect
Claimant's claim, and a description of why it is needed, and (4) an explanation
of this Plan's claims review procedure and other appropriate information as to
the steps to be taken if the Claimant wishes to have the claim reviewed. If the
Bank determines that there are special circumstances requiring additional time
to make a decision, the Bank shall notify the Claimant of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional ninety-day period. Upon resolution of
all open issues, the Bank shall receive the proceeds and upon recovering the
share of the proceeds to which it is entitled, shall distribute the Claimant's
proceeds.

       11.2 Review Procedure. If a Claimant is determined by the Bank not to be
eligible for benefits, or if the Claimant believes that Claimant is entitled to
greater or different benefits, the Claimant shall have the opportunity to have
such claim reviewed by the Bank by filing a petition for review with the Bank
within sixty (60) days after receipt of the notice issued by the Bank. Said
petition shall state the specific reasons, which the Claimant believes, entitle
Claimant to benefits or to greater or different benefits. Within sixty (60) days
after receipt by the Bank of

                                       9
<PAGE>

the petition, the Bank shall afford the Claimant (and counsel, if any) an
opportunity to present Claimant's position to the Bank verbally or in writing,
and the Claimant (or counsel) shall have the right to review the pertinent
documents. The Bank shall notify the Claimant of its decision in writing within
the sixty-day period, stating specifically the basis of its decision, written in
a manner calculated to be understood by the Claimant and the specific provisions
of this Plan on which the decision is based. If, because of the need for a
hearing, the sixty-day period is not sufficient, the decision may be deferred
for up to another sixty-day period at the election of the Bank, but notice of
this deferral shall be given to the Claimant.

                                   Article 12
                        Amendment or Termination of Plan

     12.1 Non-Vested Insurance Benefit. Unless a Participant has a Vested
Insurance Benefit pursuant to Sections 4.2.2 or 5.1, the Bank may amend or
terminate the Plan at any time, or may amend or terminate a Participant's rights
under the Plan at any time prior to a Participant's death by written notice to
the Participant.

     12.2 Vested Insurance Benefit. If a Participant has a Vested Insurance
Benefit, the Bank may amend or terminate the Plan for that Participant only if:
(1) continuation of the Plan would cause significant financial harm to the Bank
and (2) the Participant agrees to such action.

                                   Article 13
                                  Miscellaneous

     13.1 Binding Effect. This Agreement shall bind the Participant and the
Bank, and their beneficiaries, survivors, executors, successors, administrators
and transferees.

     13.2 No Guarantee of Employment. This Agreement is not an employment policy
or contract. It does not give the Participant the right to remain an employee of
the Bank, nor does it interfere with the Bank's right to terminate the
Participant's employment. It also does not require the Participant to remain in
employment nor interfere with the Participant's right to terminate employment at
any time.

     13.3 Reorganization. The Bank shall not merge or consolidate into or with
another company, or reorganize, or sell substantially all of its assets to
another company, firm, or person unless such succeeding or continuing company,
firm, or person agrees to assume and discharge the obligations of the Bank under
this Agreement. Upon the occurrence of such event, the term "Bank" as used in
this Agreement shall be deemed to refer to the successor or survivor company.

     13.4 Tax Withholding. The Bank shall withhold any taxes that are required
to be withheld from the benefits provided under this Agreement.

     13.5 Applicable Law. The Agreement and all rights hereunder shall be
governed by the laws of the Commonwealth of Pennsylvania, except to the extent
preempted by the laws of the

                                       10
<PAGE>

United States of America; provided, however, that with respect to insurance
policies owned by the Bank or any insurable interest issues, the laws of
Delaware shall govern.

     13.6 Entire Agreement. This Agreement constitutes the entire agreement
between the Bank and the Participant as to the subject matter hereof. No rights
are granted to the Participant by virtue of this Agreement other than those
specifically set forth herein.

     13.7 Administration. The Bank shall have powers which are necessary to
administer this Agreement, including but not limited to:

          (a)  Interpreting the provisions of the Agreement;

          (b)  Establishing and revising the method of accounting for the
               Agreement;

          (c)  Maintaining a record of benefit payments; and

          (d) Establishing rules and prescribing any forms necessary or
     desirable to administer the Agreement.

     13.8 Named Fiduciary. The Bank shall be the named fiduciary and plan
administrator under this Agreement. It may delegate to others certain aspects of
the management and operational responsibilities including the service of
advisors and the delegation of ministerial duties to qualified individuals.

     13.9 Recovery of Estate Taxes. If the Participant's gross estate for
federal estate tax purposes includes any amount determined by reference to and
on account of this Plan, and if the beneficiary is other than the Participant's
estate, then the Participant's estate shall be entitled to recover from the
beneficiary receiving such benefit under the terms of the Plan, an amount by
which the total estate tax due by the Participant's estate, exceeds the total
estate tax which would have been payable if the value of such benefit had not
been included in the Participant's gross estate. If there is more than one
person receiving such benefit, the right of recovery shall be against each such
person. In the event the beneficiary has a liability hereunder, the beneficiary
may petition the Bank for a lump sum payment in an amount not to exceed the
beneficiary's liability hereunder.

     IN WITNESS WHEREOF, the Bank executes this Plan as of the date indicated
above.

                                                   BANK:
                                                   PEAPACK-GLADSTONE BANK

                                                   By ARTHUR F. BIRMINGHAM

                                                   Title Chief Financial Officer

                                       11
<PAGE>

     By execution hereof, Peapack-Gladstone Financial Corporation consents to
and agrees to be bound by the terms and condition of this Plan document.

ATTEST:                                          CORPORATION:
                                                 Peapack-Gladstone
                                                 Financial Corporation

MARY M. RUSSELL                                  By ARTHUR F. BIRMINGHAM

                                                 Title Chief Financial Officer
 ATTEST:                                         TRUSTEE:
                                                 CHRISTIANA BANK & TRUST COMPANY
MARY ANN BENKO                                   By JOSEPH D. FRENEY

                                                 Title Vice President

                                       12

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