Document:

Exhibit 10.32

                                  THE TOWN BANK
                                       OF
                                    WESTFIELD

                         2001 DIRECTOR STOCK OPTION PLAN

1.    Purpose of the 2001 Director Stock Option Plan.

            The Town Bank of Westfield  (the  "Corporation")  desires to attract
and retain the best available  persons to serve as Directors of the  Corporation
(the  "Directors")  and to  encourage  their  regular  attendance  at Board  and
committee  meetings and to obtain their highest level of  performance.  The 2001
Director  Stock Option Plan (the  "Director  Stock Option  Plan") is intended to
contribute  significantly to the attainment of these objectives by (i) providing
long-term  incentives  and  rewards to all  Directors,  and (ii)  assisting  the
Corporation  and any  subsidiary of the  Corporation in attracting and retaining
Directors with experience and ability.

            The term  "Directors"  as used in this  Director  Stock  Option Plan
means the  Directors  and the members of any advisory  committee to the Board of
Directors of (i) the Corporation,  (ii) any parent of the Corporation,  or (iii)
any subsidiary of the Corporation.

2.    Scope and Duration of the Director Stock Option Plan.

            Under the  Director  Stock  Option  Plan,  options  (singularly,  an
"Option",  collectively,  the "Options") to purchase voting common stock,  $5.00
par value ("Common  Stock") of the  Corporation,  may be granted.  The aggregate
number of shares of Common Stock  reserved for grant from time to time under the
Director Stock Option Plan shall be an amount equal to a maximum of five percent
(5%) of the then outstanding shares of Common Stock; provided, however, that the
number of shares issuable  hereunder together with the number of shares issuable
under any other stock  option  plan  maintained  by the Bank,  except such stock
option plan which  qualifies  as an  incentive  stock  option  plan  pursuant to
Section 422 of the Internal  Revenue Code of 1986,  as from time to time amended
or the  comparable  provision in any future tax statute (the  "Code"),  does not
exceed ten percent (10%) of the then outstanding shares of Common Stock.  Shares
of Common Stock  underlying  Options  granted  hereunder may be  authorized  but
unissued  shares of Common Stock or shares of Common Stock which shall have been
or which may be reacquired by the Corporation,  as the Board of Directors of the
Corporation shall from time to time determine. The aggregate number of shares of
Common Stock  reserved  for grant under the Director  Stock Option Plan shall be
subject to  adjustment as provided in Paragraph 11. In no event shall the number
of shares  reserved for grant under the  Director  Stock Option Plan exceed five
percent  of  the  issued  and  outstanding   shares  of  capital  stock  of  the
Corporation.  If an Option  shall  expire or  terminate  for any reason  without
having been exercised in full, the shares represented by the portion thereof not
so  exercised  shall  (unless  the  Director  Stock  Option Plan shall have been
terminated)  become  available for other Options under the Director Stock Option
Plan. The Director Stock Option Plan shall become effective upon approval by the
Board of Directors and  stockholders of the Corporation as provided in Paragraph
12. Subject to Paragraph 13, no Option shall be granted under the Director Stock
Option Plan after the tenth (10th)  anniversary  of the approval of the Director
Stock Option Plan by the stockholders of the Corporation,  or December 31, 2011,
whichever occurs first.

3.    Administration of the Director Stock Option Plan.

            The Board of Directors of the Corporation  shall appoint a committee
(the  "Committee")  to administer  the Director Stock Option Plan. The Committee
shall  consist of either the entire Board of Directors or a Committee  appointed
by the Board of Directors  consisting of one or more persons,  who are Directors
of the  Corporation,  and who  shall  serve  at the  pleasure  of the  Board  of
Directors.

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            The Committee  shall have authority in its  discretion,  subject to,
and not inconsistent  with, the express  provisions of the Director Stock Option
Plan,  to direct the grant of Options;  to determine  the purchase  price of the
Common Stock  covered by each  Option,  the  Directors to whom,  and the time or
times at which,  Options shall be granted and the number of shares to be covered
by each Option;  to interpret  the Director  Stock Option Plan; to determine the
time or times at which Options may be exercised; to prescribe, amend and rescind
rules and  regulations  relating to the Director  Stock Option Plan,  including,
without  limitation,  such rules and  regulations  as it shall deem advisable to
insure that transactions  involving Options may qualify for exemption under such
rules and  regulations as the Securities and Exchange  Commission may promulgate
or propose from time to time  exempting  transactions  from Section 16(b) of the
Securities  Exchange Act of 1934; to determine the terms and  provisions of, and
to  cause  the  Corporation  to  enter  into,  agreements  with  Directors  as a
prerequisite  to, and in connection  with, a grant of Options under the Director
Stock Option Plan (the "Agreements"), which Agreements may vary from one another
as the Committee shall deem appropriate; and to make all other determinations it
may deem  necessary or advisable for the  administration  of the Director  Stock
Option Plan. The Committee may delegate to one or more of its members, or to one
or more agents, those administrative  duties as the Committee may deem advisable
and may employ (or  authorize  any person to whom it has  delegated  duties,  as
aforesaid)  to employ one or more  persons to render  advice with respect to any
responsibility  it (or that  person) may have under the  Director  Stock  Option
Plan.

            The  Board of  Directors  of the  Corporation  may from time to time
appoint members of the Committee in substitution for, or in addition to, members
previously  appointed and may fill vacancies,  however caused, in the Committee.
The Committee  shall hold its meetings at such times and places as it shall deem
advisable.  Members may  participate in meetings  through  conference  telephone
calls or similar arrangements.  A majority of the members of the Committee shall
constitute a quorum.  All  determinations  of the  Committee  shall be made by a
majority of its members.  Any decision or  determination  reduced to writing and
signed by all of the members shall be fully  effective as if it had been made by
a majority  vote at a meeting duly called and held.  The Committee may appoint a
secretary,  shall keep  minutes of its  meetings,  and shall make such rules and
regulations  for the  conduct  of its  business  as it shall deem  necessary  or
advisable.  No  member  of the  Committee  shall be  liable  for any  action  or
determination  taken or made,  or not  taken or not  made,  in good  faith  with
respect to the Director Stock Option Plan or any Option granted under it.

4.    Eligibility: Factors to be Considered in Granting Options.

            An option may be granted  only to a person who is a Director of, or,
if the Board of  Directors in its sole and absolute  discretion  shall elect,  a
member of an advisory committee to the Board of Directors of the Corporation, or
a parent corporation or a subsidiary  corporation  thereof on the date of grant.
In  determining  the persons to whom Options  shall be granted and the number of
shares of Common Stock to be covered by each Option,  the  Committee  shall take
into account the number of Board and Committee meetings the person attends,  the
performance  of the  Corporation  and such other factors as the Committee in its
sole and absolute  discretion shall deem relevant.  Subject to the provisions of
Paragraph 2, above, a person may receive Options on more than one occasion under
the Director Stock Option Plan.

5.    Option Price.

            The  purchase  price per share of the Common  Stock  covered by each
Option shall be established  by the Committee,  but in no event shall it be less
than the  greater of the par value of the Common  Stock or one  hundred  percent
(100%) of the fair  market  value of the Common  Stock on the date the Option is
granted.  If, at the time an Option is  granted  the  Common  Stock is  publicly
traded, fair market value shall be the last reported sale price, regular way, on
the last preceding trading day, or, in case no such reported sale takes place on
such day, the average of the last  reported bid and asked  prices,  regular,  in
either case on the principal national securities exchange,  if any, on which the
Common Stock is admitted to trading or listed,  or if not so admitted to trading
or listed on any  national  securities  exchange,  the  average  of the  closing
reported bid and asked prices on the last  preceding  trading day as reported by
the National  Association  of  Securities  Dealers  Automated  Quotation  System
("NASDAQ") or any  comparable  system,  or if not listed for  quotation  through
NASDAQ or any comparable system, the average of the closing bid and asked prices
on the last  preceding  trading day as  recorded by two members of the  National
Association  of  Securities  Dealers,  Inc.  selected  from  time to time by the
Committee  for that  purpose.  If the Committee  shall  determine  that no stock
quotation is available or that the stock price  quotation is not  representative

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of fair  market  value by reason of the lack of a  significant  number of recent
transactions or otherwise, the Committee may determine fair market value in such
a manner as it shall deem appropriate under the  circumstances.  If, at the time
an Option is granted,  the Common Stock is not publicly  traded,  the  Committee
shall  make a good  faith  attempt  to  determine  its fair  market  value.  The
determination  of the fair market value of the Common Stock shall be made by the
Committee without regard to any restrictions, other than a restriction which, by
its terms, will never lapse. The date on which the Committee adopts a resolution
expressly  granting an Option shall be considered  the date on which that Option
is granted.

6.    Term of Options.

            The term of each option shall be fixed by the  Committee,  but in no
event shall it be more than 10 years from the date of grant,  subject to earlier
termination as provided in Paragraphs 9 and 10.

7.    Exercise of Options.

            (a) The vested portion of an Option  granted as a Director's  annual
fee for service  may be  exercised,  in whole or in part,  through and until the
termination  of  the  Director  Stock  Option  Plan.  All  Options  granted  for
attendance at meetings shall be fully  exercisable,  in whole or in part, at any
time  through and until the  termination  of the  Director  Stock  Option  Plan.
Notwithstanding  the foregoing,  (i) the Committee may in its  discretion  issue
Options from time to time which are immediately exercisable in full or which are
exercisable  at such  other  time or  times  as the  Committee  in its  sole and
absolute discretion determines, except that no Option shall be exercisable later
than ten years after its date of grant.

            (b)  Options  may be  exercised  in such  manner and at such time or
times as the  Committee in its sole and  absolute  discretion  shall  determine,
except  that in no event  shall any such  Option be  exercisable  later than ten
years after its date of grant.

            (c) An Option may be exercised as to any or all,  full or fractional
shares of Common Stock as to which the Option is then exercisable.

            (d) The purchase  price of the shares of Common Stock as to which an
Option is exercised shall be paid in full in cash at the time of exercise, or in
installments.  In addition,  the Holder (as  hereinafter  defined)  shall,  upon
notification of the amount due and prior to, or concurrently  with,  delivery to
the  Holder of a  certificate  representing  such  shares of Common  Stock,  pay
promptly any amount necessary to satisfy  applicable tax  requirements  (whether
federal,  state,  local,  or otherwise).  If the purchase price is to be paid in
installments,  the Holder shall pay the down payment, if any, and the balance as
the related Agreement or Committee may permit.

            (e)  Except as  provided  in  Paragraphs  9 and 10, no Option may be
exercised unless the Holder thereof is then a Director,  or has been a Director,
of the  Corporation  or any parent of the  Corporation  or any subsidiary of the
Corporation or any combination thereof on the date of its grant.

            (f) A Holder shall have the rights of a stockholder  with respect to
shares of Common  Stock  covered by an Option only upon  becoming  the Holder of
record of such shares of Common Stock.

8.    Nontransferability.

            No Options  granted  under the  Director  Stock Option Plan shall be
transferable  other than by will or by the laws of descent and  distribution  of
any state  which has, or would  have,  jurisdiction  of the estate of a deceased
Option Holder.  Options may be exercised  during the lifetime of the Holder only
by the Holder.

9.    Termination of Relationship with the Corporation.

            (a) If a Holder  ceases to be a Director of the  Corporation  or any
parent or  subsidiary  thereof  (except as set forth in this  Paragraph  9), any
Option held by that person may,  subject to the provisions of the

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Director  Stock Option Plan, be exercised (to the extent that he was entitled to
exercise such Option at the  termination  of his service as a Director or member
of an advisory committee to the Board of Directors, as the case may be, pursuant
to any  Agreement)  at any time within 90 days after such  termination,  but not
more than ten years after the date on which such Option was granted.

            (b) Other than as provided in Paragraph 9(a),  Options granted under
the Director  Stock Option Plan shall not be affected by any change of committee
assignment of a Holder so long as the Holder remains a Director.

            (c) Any Agreement may contain such provisions as the Committee shall
approve  with  reference  to the  determination  of the date of  termination  of
service as a Director  for  purposes of the  Director  Stock Option Plan and the
effect of leaves of absence,  which  provisions  may vary from one  Agreement to
another.

            (d)  Nothing  in the  Director  Stock  Option  Plan or in any Option
granted  pursuant  to the  Director  Stock  Option  Plan shall  confer  upon any
Director or other person any right to continue on the Board of Directors, or any
committee  thereof,  of  the  Corporation  or  any  parent  corporation  or  any
subsidiary  corporation  thereof,  or affect the right of the Corporation or any
such parent corporation or any such subsidiary corporation,  as the case may be,
regarding the Director or committee member.

10.   Death or Disability of Holder.

      If a person to whom an Option has been granted  under the  Director  Stock
Option Plan shall:

            (a) die while he is serving as a Director  or member of an  advisory
committee of the Board of Directors of the Corporation or a corporation which is
a parent corporation or a subsidiary corporation thereof; or

            (b) while  serving as a Director or member of an advisory  committee
of the Board of Directors of the Corporation or a corporation  which is a parent
corporation or subsidiary  corporation  thereof,  become permanently and totally
disabled within the meaning of Section  22(e)(3) of the Code, then to the extent
that the Option  was  exercisable  immediately  prior to the  happening  of such
event, such Option may be exercised as set forth herein by the Holder or, in the
event of death,  by the person or persons to whom the Holder's  rights under the
Option pass by will or applicable  law, or, if no such person has such right, by
his  executors  or  administrators,  and the period for  exercise  to the extent
provided  in  Paragraph  9 shall be  extended  to six  months in the case of the
permanent and total disability or in the case of the death of the Holder, but no
more  than ten  years  after  the date  such  Option  was  granted,  as shall be
prescribed in the Holder's Agreement.

11.   Adjustments upon Changes in Capitalization.

            (a) Each  Agreement  may contain such  provisions  as the  Committee
shall  determine to be appropriate for the adjustment of the number and class of
shares of Common Stock covered by such Option, the Option prices, and the number
of shares of Common Stock as to which Options shall be  exercisable at any time,
in the event of changes in the  outstanding  Common Stock of the  Corporation or
the  number of shares of Common  Stock to which any other  class of stock of the
Corporation  may  be  converted,  by  reason  of  stock  dividends,   split-ups,
split-downs,   reverse  splits,   recapitalizations,   mergers,  consolidations,
combinations or exchanges of shares, spin-offs,  reorganizations,  liquidations,
and the like. In the event of any such change in the outstanding Common Stock of
the Corporation, the aggregate number of shares of Common Stock or the number of
shares of Common Stock to which any other class of stock of the  Corporation may
be converted, as to which Options may be granted under the Director Stock Option
Plan and to any  Director  or member of an  advisory  committee  of the Board of
Directors of the Corporation,  shall be appropriately adjusted by the Committee,
whose  determination  shall be  conclusive.  No adjustment  shall be made in any
minimum number of shares of Common Stock which may be purchased at any time.

            (b)  In  the  event  of  the   dissolution,   liquidation,   merger,
reorganization,  separation or  consolidation  of the  Corporation or its parent
corporation, or a sale of all or substantially all of the assets or stock of the
Corporation or its parent corporation,  or the disposition by the Corporation of
substantially  all of the assets or

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stock of a subsidiary corporation, and the Holder is then a Director or a member
of an advisory committee to the Board of Directors of such corporation, then, if
the Committee  shall so determine,  each Option under the Director  Stock Option
Plan,  if such event shall occur with respect to the  Corporation  or its parent
corporation,  or each  Option  granted  to a Director  or member of an  advisory
committee to the Board of Directors of the Corporation, a parent or a subsidiary
respecting which such event shall occur, shall terminate simultaneously with the
happening  of such  event,  and the  Corporation  shall  pay the  Holder in lieu
thereof an amount equal to (i) the  difference  between the fair market value of
one share of Common Stock on the date of such change,  less the Option price per
share of Common Stock,  multiplied  by (ii) the number of shares  subject to the
Option, without regard to whether the Option is then otherwise exercisable.

12.   Effectiveness of the Director Stock Option Plan.

            The Director  Stock  Option Plan shall become  effective on the date
that it is adopted by the Board of  Directors  and ratified in  accordance  with
applicable  law by a vote  of  not  less  than  two-thirds  of the  stockholders
entitled to vote thereon.  At any time commencing on the date of the adoption of
this Director  Stock Option Plan by the Board of Directors and its  ratification
by the stockholders,  the Committee may, in its discretion,  grant Options under
the Director Stock Option Plan, the exercise of which shall be expressly subject
to the conditions  that at the time of exercise a Registration  Statement  under
the  Securities  Act of 1933 (the  "Act") with  respect to such shares  shall be
effective, or other provision satisfactory to the Committee shall have been made
so that shares may be issued without violation of the Act or applicable state or
foreign  securities  laws.  If the  shares of the  Common  Stock  issuable  upon
exercise of an Option are not  registered  under the Act,  and if the  Committee
shall deem it  advisable,  the Holder may be required to represent  and agree in
writing  (i) that he or she will be  acquiring  such  shares  for his or her own
account and not with a view to the distribution thereof, (ii) that any shares of
Common Stock  acquired  pursuant to the  Director  Stock Option Plan will not be
sold except pursuant to an effective  registration statement under the Act or an
exemption  from the  registration  provisions of the Act and in accordance  with
applicable  state or foreign  securities laws, and (iii) that the Holder accepts
such restrictions on transfer of such shares (including, without limitation, the
affixing to any certificate  representing  such shares of an appropriate  legend
restricting  transfer of such shares),  as the Corporation may reasonably impose
under the Act or applicable state or foreign securities laws.

13.   Termination and Amendment of the Director Stock Option Plan.

            The Board of Directors of the Corporation  may, at any time prior to
the termination of the Director Stock Option Plan, suspend, terminate, modify or
amend  the  Director  Stock  Option  Plan;  provided  that any  increase  in the
aggregate  number of shares of Common Stock reserved for issue upon the exercise
of Options,  any increase in the maximum  number of shares for which Options may
be granted to any person during any period,  any reduction in the purchase price
of the Common Stock  covered by any Option,  any  extension of the period during
which  Options  may be  granted or  exercised,  any  change in the  formula  for
determining  the amount  payable  upon  exercise of the Option,  or any material
modification  in the  requirements as to eligibility  for  participation  in the
Director Stock Option Plan,  shall be subject to the approval of stockholders in
the manner  provided in Paragraph 12, except that any such increase,  reduction,
or change  that may  result  from  adjustments  authorized  by  Paragraph  11 or
adjustments  based on  revisions  to the Code (to the extent  permitted  by such
authorities) shall not require such approval,  and further,  shall be subject to
the  limitations   set  forth  in  Paragraph  2.  No  suspension,   termination,
modification,  or amendment of the Director  Stock Option Plan may,  without the
express written consent of the Holder of an Option,  adversely affect the rights
of such Holder under such Option.

14.   Financing for Investment in Stock of the Corporation.

            Upon  exercise by a Holder of an Option,  the Board of Directors may
cause the  Corporation  or any  subsidiary  to give or  arrange  for  financing,
including direct loans,  secured or unsecured,  or guaranties of loans by banks,
which loans may be secured in whole or in part by assets of the  Corporation  or
any  subsidiary,  to any person who shall have served as a Director or member of
an advisory  committee to the Board of Directors  of the  Corporation,  a parent
corporation of the Corporation or subsidiary  corporation of the Corporation for
a period  of at least  six  months  at the end of the  fiscal  year  last  ended
immediately prior to arranging such financing; but the Board

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of Directors may, in any specific case,  authorize  financing for any person who
shall not have served for such a period. Such financing shall be for the purpose
of providing funds for the purchase by the person pursuant to the exercise of an
Option  and/or for payment of taxes  incurred in  connection  with its exercise,
and/or for the purpose of otherwise purchasing or carrying a stock investment in
the Corporation. The maximum amount of liability incurred by the Corporation and
its  subsidiaries  in connection  with all such financing  outstanding  shall be
determined from time to time in the sole and absolute discretion of the Board of
Directors.  Each loan shall bear interest at a rate  determined by the Committee
provided that such rate of interest shall not be less than the lowest rate which
avoids imputation of interest at a higher rate under the Code. Each recipient of
such financing  shall be personally  liable for the full amount of all financing
extended to him or her. Such  financing  shall be based upon the judgment of the
Board of Directors that such financing may reasonably be expected to benefit the
Corporation,  and that such financing as may be granted shall be consistent with
the  Certificate of  Incorporation  and bylaws of the Corporation or a parent or
subsidiary corporation of the Corporation, and applicable laws.

            If any such  financing is authorized  by the Board of Directors,  it
shall be administered by the Committee.

15.   Withholding.

            In the discretion of the Committee,  the Corporation's obligation to
deliver the Common  Stock upon the exercise of an Option shall be subject to the
HoIder's  satisfaction of all applicable  federal,  state,  and local income and
employment tax obligations.

16.   Severability.

            In the event that any one or more  provisions of the Director  Stock
Option Plan or any Agreement, or any action taken pursuant to the Director Stock
Option Plan or such  Agreement,  should,  for any reason,  be  unenforceable  or
invalid in any  respect  under the laws of the United  States,  any state of the
United States or any other government, such unenforceability or invalidity shall
not affect any other  provision  of the  Director  Stock  Option  Plan or of any
Agreement but in such  particular  jurisdiction  and instance the Director Stock
Option  Plan  and  the  affected   Agreement  shall  be  construed  as  if  such
unenforceable  or invalid  provision  had not been  contained  therein or if the
action in question had not been taken thereunder.

17.   Applicable Law.

            The   Director   Stock   Option  Plan  shall  be  governed  by,  and
interpreted,  construed and applied in accordance with, the laws of the State of
New Jersey.

18.   Miscellaneous.

            1. The terms "parent corporation" and "subsidiary corporation" shall
have  the  meanings  .set  forth  in  Sections  425(e)  and  (f)  of  the  Code,
respectively.

            2. The term "Holder" means a member of the Board of Directors of the
Corporation  and/or a member of an advisory committee to the Board of Directors,
as the case may be, of the Corporation,  a parent  corporation,  or a subsidiary
corporation  thereof who is granted an Option  under the  Director  Stock Option
Plan and any person who is entitled to exercise such Holder's Option pursuant to
paragraphs 9 or 10.

                                      A-6Exhibit 10.33

                               SEVERANCE AGREEMENT

      THIS SEVERANCE AGREEMENT (the "Agreement") made as of the 4th day of
December, 2002 (the "Commencement Date") between THE TOWN BANK OF WESTFIELD, a
New Jersey banking corporation, with offices at 520 South Avenue, Westfield, New
Jersey 07090 ("TBW" or the "Company"), and EDWIN WOJTASZEK, residing at 65
Boehmhurst Avenue, Sayreville, New Jersey 08872 (the "Employee").

      WHEREAS, the Employee has been a loyal and long-term employee of TBW for
many years; and

      WHEREAS, TBW wishes to provide the Employee with the comfort of knowing
that if the Employee loses his or her position with TBW, or any related
entities, as a result of any involuntary termination or upon a "change in
control", the Employee will be entitled to receive a severance benefit;

      NOW, THEREFORE, the parties agree, intending to be legally bound, as
follows:

1.    Definitions. For purposes of this Agreement, the following words and
      phrases shall be defined as follows:

      a.    "Base Compensation" shall mean the base salary which is payable on a
            regular basis to the Employee in effect immediately prior to a
            termination without "cause", in the case of a Basic Severance
            Benefit payable under Section 4(a) hereof, or immediately prior to a
            Change in Control in the case of a Change in Control Severance
            Benefit payable under Section 4(b) hereof, including the last full
            calendar year's bonus and fringe benefits.

      b.    "Cause" shall include, but not be limited to, any material false
            statement that was intentionally or negligently made, contained in
            any corporate records; the commission by the Employee of any crime
            or fraud against the Company or its property, or any crime involving
            moral turpitude or reasonably likely to bring discredit upon the
            Company; and any violation of the Company's operating policies.

      c.    "Change in Control" shall mean (i) the acquisition of ownership of
            stock of the Company, by any person (including, without limitation,
            a corporation, trust, partnership, joint venture, limited liability
            company (a "Person") or by any group of Persons), whether directly,
            indirectly, beneficially or of record, which acquisition, together
            with stock held by such person or group, represents more than 50% of
            the total voting power of all outstanding stock of the Company
            (provided that no Change in Control shall occur under this
            subparagraph (i) if the Person acquiring any additional stock
            already possessed more than 50% of the total fair market voting
            power of the stock of the Company); (ii) any merger or consolidation
            of the Company which the stockholders of the Company before such
            merger or consolidation do not, as a result of the merger or
            consolidation, own at least 50% of the merged or consolidated
            entity; or (iii) any nomination and election of 50% or more of all
            members of the Board of Directors of the Company that occurs at any
            three consecutive meetings of the shareholders, whose election is
            without the recommendation of the Board. "Change in Control" shall
            not include the acquisition of the Company's stock by any Company
            employee benefit plans.

      d.    "Code" shall mean the Internal Revenue Code of 1986, as amended from
            time to time.

      e.    "Termination Date" shall mean the last day the Employee performs any
            services for TBW, or any related entity or successor entity, and is
            paid wages as an employee, exclusive of vacation and severance
            payments, and excluding any leave of absence periods.

2.    Term. The term of the Agreement shall commence on the Commencement Date,
      and shall continue on an uninterrupted basis until and including December
      4, 2004; or until terminated with the mutual consent of the Employee and
      TBW; or upon the voluntary termination of the Employee's employment with
      TBW or any successor entity. Upon the Employee's Termination Date, no
      additional services shall be required of the

<PAGE>

      Employee (unless provided otherwise under any consulting agreement), and
      any payments due for the performance of any services, and reimbursement
      for any expenses, shall be made within a period of 15 days from the
      Termination Date.

3.    Condition for Severance Benefits. In order to be entitled to payment of
      any severance benefits, the Employee agrees to execute a General Release
      that shall fully release and forever discharge the company and any and all
      related companies, form all claims the Employee may have based on
      employment with the Company. These claims shall include, but are not
      limited to, claims arising under the Constitution of the United States, a
      release of any rights or claims the Employee may have under the Age
      Discrimination in Employment Act of 1967; Title VII of the Civil Right Act
      of 1964; the Civil Rights Act of 1966; the Equal Pay Act; or any other
      federal, state or local laws or regulations prohibiting employment
      discrimination; the Employee Retirement Income Security Act of 1974;
      Executive Orders 11246 and 11141; the Constitution of the State of New
      Jersey or any other states in which the Employee resides or works; any New
      Jersey or other state laws against discrimination; any claims of breach of
      public policy of the State of New Jersey or other state, negligence,
      breach of contract, wrongful discharge, constructive discharge, breach of
      an implied covenant of good faith and fair dealings; any express or
      implied contracts with the Company or any related companies; any federal
      or state common law and any federal, state or local statutes, ordinances
      and regulations.

      The General Release shall be in a format prepared by the Company, which
      shall be consistent with the above provisions and shall comply with the
      Older Workers Benefit Protection Act of 1990 ("OWBPA"), including a 21-day
      period to review the General Release, and a 7-day revocation period (or
      any other periods required under any future laws). Any severance payments
      shall be the Employee's exclusive right and remedy against the Company.

4.    Severance Benefits. The Employee's employment may be terminated by the
      Employee or by the Company or any related entity or successor entity
      "without "Cause", notice or liability at any time. Upon the occurrence of
      any termination of employment, the following severance benefits shall be
      provided, depending upon the specific circumstances of any termination:

      a.    Basic Severance Benefit. If the Company, or any related entity or
            successor entity terminates the Employee's employment with the
            Company for any reason, without "Cause", the Employee shall be
            entitled to a Basic Severance Benefit equal to payment of the
            Employee's Base Compensation for a period of six (6) months.

      b.    Change in Control Severance Benefit. If the Company, or any related
            entity or successor entity terminates the Employee's employment in
            anticipation of a reorganization or a "Change in Control", or if the
            Company, or any related entity or any successor entity terminates
            the Employee's employment following a Change in Control for any
            other reasons without "Cause", or if the Employee's employment is
            "constructively terminated" as defined in Section 8, the Employee
            shall receive a payment equal to the Employee's Base Compensation
            for a period of six (6) months.

      Both the Basic Severance Benefit and a Change in Control Severance Benefit
      shall solely be paid to the Employee in a single lump sum payment. In
      either case, the applicable severance benefit shall not be paid until
      eight days after receipt of an executed copy of a General Release by the
      Company, as provided in Section 3. Severance benefit payments shall also
      be reduced to the extent of any advance payments, for any excess expense
      reimbursements, and for any amounts owed to the Company by the Employee
      (other than normal personal residence, home equity and similar loans).

      In the event of the death of the Employee after the commencement of
      entitlement to any severance benefit payable under Section 4, all benefits
      shall be paid in a lump sum to the Employee's spouse, or if no spouse
      exists, to the Employee's estate.

      Notwithstanding any interpretation to the contrary, in no event shall the
      Employee be entitled to both the Basic Severance Benefit and the Change in
      Control Severance Benefit.

                                       2
<PAGE>

5.    Benefits. Upon the occurrence of any termination of employment by the
      Company, or any related entity or successor entity without "Cause", or
      upon the occurrence of a "constructive termination" in accordance with
      Section 8, the Employee shall be entitled to the following general
      benefits.

      a.    All Base Compensation through the Termination Date shall be paid in
            accordance with the Company's normal payroll procedures.

      b.    All accrued vacation pay shall be included in the Employee's final
            paycheck.

      c.    The Employee shall be entitled to elect to receive continuation
            health coverage under the Consolidated Omnibus Budget Reconciliation
            Act of 1985 and/or applicable New Jersey law ("COBRA") after his
            Termination Date, which is the date of the "qualifying event" under
            COBRA. The Company shall pay the full cost of any COBRA coverage
            elected by the Employee, or any member of the Employee's immediate
            family for a period of up to 12 months.

      d.    All medical, group-term life insurance, long-term disability,
            short-term disability, and other welfare benefits shall be
            terminated in accordance with the provisions of all plans. The
            Employee may be entitled to individual conversion privileges under
            the various policies. The Company shall provide such information to
            the Employee regarding all individual conversion rights.

      e.    The Employee shall be entitled to a distributions of all benefits
            under the Company retirement programs, in accordance with the
            provisions of all Plan documents. All severance benefits paid in the
            Plan Year in which the Termination Date occurs (but not any
            subsequent Plan Years) shall be treated as Compensation for purposes
            of Employee Salary Reduction Contributions to the Section 401(k)
            Plan, if permitted in accordance with the provision of the Section
            401(k) Plan, unless the Employee directs otherwise. For purposes of
            all other Company Contributions, all severance benefits shall be
            considered as Compensation to the extent required under the Section
            401(k) Plan.

      f.    The Employee shall be entitled to exercise any vested Stock Options,
            in accordance with the provisions of the relevant plan, and any
            individual Option Agreements.

      g.    Any executive benefits shall terminate on the Termination Date.

      h.    The Employee shall be entitled to state unemployment benefits, in
            accordance with the rules for the State of New Jersey.

      Notwithstanding any provision to the contrary, except as provided in this
      Agreement, the payment of any severance benefits shall not be treated as
      extending any individual's employment for any employee benefit or
      employment purposes.

6.    Voluntary Termination, Retirement, Death and Disability. The Employee
      shall not be entitled to any severance benefits in the event of any
      voluntary termination of employment either before, or after, any Change in
      Control or other corporate events, unless a "constructive termination"
      shall occur, as defined in Section 8. Furthermore, notwithstanding any
      provisions to the contrary, no severance benefits shall be payable in the
      event the Employee becomes disabled, dies or otherwise retires in
      accordance with the normal policies of the Company.

7.    Discharge for Cause. The Company, or any related entity or successor
      entity may immediately terminate this Agreement and the Employee's
      employment at any time for "Cause". Upon termination of this Agreement for
      Cause, the Company shall have no further obligations to the Employee other
      than to pay for services performed and reimbursement for expenses payable
      as of the date of such termination, and to provide any benefits as legally
      required under Section 4. However, the Employee shall have no right to the
      payment of any Basic Severance or Change in Control Severance Benefits in
      the event of a termination for "Cause".

                                       3
<PAGE>

8.    Change in Control.
      ------------------

      a.    Upon the occurrence of a "Change in Control" of the Company,
            including any affiliated or subsidiary companies, followed by the
            involuntary termination of the Employee's employment within a period
            of one year after such Change in Control, other than for "Cause",
            retirement, death or disability, the Employee shall be entitled to
            receive all severance benefits identified in Sections 4(b) and 5 of
            the Agreement, and any other benefits to which the Employee is
            entitled under any other Company programs. Upon the occurrence of a
            Change in Control and a "Constructive Termination" of the Employee,
            the Employee shall also have the right to voluntarily terminate the
            Employee's employment at any time for a period of up to one year
            after such Change in Control, and to receive the severance benefits
            identified in Section 4(b) and 5. For purposes of this Agreement, a
            "Constructive Termination" shall mean (i) a resignation by the
            Employee due to any diminution or adverse change in the
            circumstances of his employment (as determined by him in good
            faith), including, without limitation, his reporting relationships,
            job description, duties, responsibilities, compensation,
            perquisites, office or location of employment, or (ii) a decision by
            the Employee not to accept an offer of employment with a successor
            to Employer. The specific arrangement referred to above are not
            intended to exclude the Employee's participation in any other
            benefits available to executive personnel of the Company or any
            related entity or successor entity. Upon the occurrence of any of
            these events, the Employee shall provide the Company with not less
            than fourteen days prior written notice of resignation given within
            a reasonable period of time not to exceed three months after the
            occurrence of the last event giving rise to said Constructive
            Termination. If the Company in good faith disputes that the Employee
            is entitled to terminate the Employee's employment due to a
            Constructive Termination, it shall so inform the Employee in writing
            within fourteen days of the written notice provided by the Employee.
            Pending resolution of the dispute, the Company shall continue to pay
            the Employee's Base Compensation and benefits. If it is ultimately
            determined that the Employee did not have grounds for voluntarily
            terminating the Employee's employment, the Employee shall return to
            the Company, without interest, all cash compensation received by the
            Employee subsequent to the day the Employee's employment was
            terminated.

      b.    If all or any portion of the amounts payable to the Employee under
            this Agreement, either alone or together with other payments which
            the Employee has the right to receive from the Company or any
            related entity or successor entity, constitute "excess parachute
            payments" within the meaning of Section 280G of the Code that are
            subject to the excise tax imposed by Section 4999 of the Code (or
            any successor sections), the Company or any related entity or
            successor entity shall increase the amounts payable hereunder to the
            extent necessary to place the Employee in the same after-tax
            position as he would have been and had no such excise tax been
            imposed on the payments hereunder. The determination of the amount
            of any such excise taxes shall initially be made by the independent
            accounting firm employed by the Company immediately prior to the
            Change in Control.

            If at a later date it is determined (pursuant to final regulations
            or published rulings of the Internal Revenue Service, assessment by
            the Internal Revenue Service or otherwise) that the amount of excise
            taxes payable by the Employee is greater than the amount initially
            so determined, then the Company or any related entity or successor
            entity shall pay the Employee an amount equal to the sum of (A) such
            additional excise taxes, plus (B) any interest, fines and penalties
            with respect to such additional excise taxes, plus (C) the amount
            necessary to reimburse the Employee for any income, excise or other
            taxes payable by the Employee with respect to the amounts specified
            in (A) and (B) above and the reimbursement provided by this clause
            (C).

9.    Waivers. A waiver by either party of any term or condition of this
      Agreement in any instance shall not be deemed or construed to be a waiver
      of such term or condition for the future, or of any subsequent breach
      thereof. All rights, remedies, undertakings or obligations contained in
      this Agreement shall be cumulative and none of them shall be in limitation
      of any other right, remedy, undertaking or obligations of either party.

                                       4
<PAGE>

10.   Severability. If any one or more provisions contained in this Agreement
      shall, for any reason, be held to be invalid, illegal or unenforceable in
      any respect, such invalidity, illegality or unenforceability shall not
      affect any other provision of this Agreement, but this Agreement shall be
      construed as if such invalid, illegal and unenforceable provision had
      never been contained herein.

11.   Liability Coverage. The Company, and any related entity or successor
      entities agrees to indemnify the Employee in accordance with the terms of
      TBW Bylaws. The Company also agrees to continue to provide any existing
      officers and directors insurance and/or liability policies covering the
      Employee through any Termination Date, and shall use its best efforts to
      continue to maintain the policies in effect at the time of termination or
      comparable policies covering the Employee for the Employee's period of
      employment with the Company, and for a period of six years after the date
      of any termination. In no event shall the Employee receive any lesser
      officers and directors protection, than is provided to the current active
      Board of Directors.

12.   Execution of Agreement. This Agreement may be executed in two or more
      counterparts, each of which shall be deemed an original and all of which
      together shall constitute one and the same instrument.

13.   Entire Agreement. This Agreement contains the entire agreement between the
      Employee and the Company with respect to the transactions contemplated
      herein and supersedes all previous written and oral agreements,
      negotiations, commitments, and understandings between the Company and the
      Employee with respect to the subject matter of this Agreement. Its terms
      shall not be altered or otherwise amended except pursuant to an instrument
      in writing signed by each of the parties hereto and making specific
      reference to this Agreement.

14.   Binding Effect. This Agreement shall be binding upon and inure to the
      benefit of the Employee, his or her heirs, executors, administrators, and
      legal representations, and the Company, its successors and assigns.

15.   Amendment. This Agreement may not be altered, changed, amended or
      terminated except by written agreement signed by the Employee and the
      Company.

16.   Written Notices. Any notice, request or other document to be give
      hereunder by the Company to the Employee or by the Employee to the Company
      shall be in writing and delivered personally or sent by registered or
      certified mail, postage prepaid and addressed as follows:

      If to the Company:

      The Town Bank of Westfield
      520 South Avenue
      Westfield, New Jersey 07090
      Attn: Chairman of the Board

      If to the Employee:

      Edwin Wojtaszek
      65 Boehmhurst Avenue
      Sayreville, New Jersey 08872

17.   New Jersey Law. The Employee and the Company agree that this Agreement and
      any interpretation thereof shall be governed by the laws of the State of
      New Jersey.

18.   Headings. The headings contained in this Agreement are for reference only.
      In the event of a conflict between a heading and the context of any
      Section, the context of the Section shall control.

19.   Successor Obligations. The Company shall require any successor (whether
      direct or indirect, by purchase, merger, consolidation or otherwise) to
      all or substantially all of the business or assets of the Company, by

                                       5
<PAGE>

      agreement in form and substance satisfactory to the Employee expressly to
      assume and agree to perform all obligations of this Agreement.

WITNESS:

/s/ Robert W. Dowens, Sr.            /s/ Edwin Wojtaszek
-------------------------            -------------------------------------------
                                     Edwin Wojtaszek, Employee

WITNESS:                             THE TOWN BANK OF WESTFIELD

/s/ Robert W. Dowens, Sr.            By: /s/ Ronald J. Frigerio
-------------------------                ---------------------------------------
                                              Ronald J. Frigerio
                                              Chairman of the Board of Directors

                                       6
<PAGE>

                     FIRST AMENDMENT TO SEVERANCE AGREEMENT
                           MADE AS OF DECEMBER 4, 2002

      Edwin Wojtaszek (the "Employee") and Town Bank, formerly known as The Town
Bank of Westfield (the "Bank") have previously entered into a Severance
Agreement made as of December 4, 2002 (the "Agreement"). The parties have agreed
that the term of that Agreement should be extended and, accordingly, agree:

      (1)   The reference to December 4, 2004 in Paragraph 2 of the Agreement is
            hereby amended to read December 31, 2005.

      (2)   Except for that change, the Agreement shall remain in full force and
            effect and the parties hereby ratify and affirm all terms of the
            Agreement.

WITNESS:

/s/ Robert W. Dowens, Sr.           /s/ Edwin Wojtaszek
-------------------------           -------------------------------------------
                                    Edwin Wojtaszek, Employee

ATTEST:                             TOWN BANK

/s/ Robert W. Dowens, Sr.           By: /s/ Joseph F.X O'Sullivan
-------------------------               ---------------------------------------
                                             Joseph F.X. O'Sullivan, Chairman
                                             of the Board of Directors

December 20, 2004

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