Document:

EXHIBIT 10.1

                                     AMENDED
                              EMPLOYMENT AGREEMENT
                                  BY AND AMONG
                           FEDERAL TRUST CORPORATION,
                               FEDERAL TRUST BANK,
                                       AND
                               JAMES V. SUSKIEWICH

         THIS EMPLOYMENT AGREEMENT is made, entered into, and is effective as of
this 18th day of December, 1998 ("Effective Date"), by and between Federal Trust
Corporation, a Florida corporation ("Company"),  Federal Trust Bank, a federally
chartered  stock  savings  bank which has its  principal  office in Winter Park,
Florida ("Bank") and James V. Suskiewich ("Executive").

         WHEREAS, Executive is presently employed by the Company and the Bank in
the  capacity of President  and Chief  Executive  Officer of these  entities and
possesses considerable  experience and an intimate knowledge of the business and
affairs of the Company and the Bank,  their policies,  methods,  personnel,  and
operations; and

         WHEREAS, the Company's primary subsidiary is the Bank; and

         WHEREAS,   the  Company  and  the  Bank  recognize   that   Executive's
contributions have been substantial and meritorious and, as such,  Executive has
demonstrated  unique  qualifications  to act in an  executive  capacity  for the
Company and the Bank; and

         WHEREAS,  the  Company  and the  Bank  are  desirous  of  assuring  the
continued employment of Executive in the above stated capacities,  and Executive
is desirous of having such assurance;

         NOW,  THEREFORE,  in  consideration  of the foregoing and of the mutual
covenants  and  agreements  of the parties set forth in this  Agreement,  and of
other good and valuable  consideration  the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

                          ARTICLE 1. TERM OF EMPLOYMENT

         The Company and the Bank hereby agree to employ Executive and Executive
hereby agrees to continue to serve the Company and the Bank, in accordance  with
the terms and conditions set forth herein, for an initial period of three years,
commencing as of the Effective Date of this Agreement,  as indicated above. Upon
each new day of the three year  period of  employment  from the  Effective  Date
until the Executive's  65th birthday,  the term of this Agreement  automatically
shall  be  extended  for  one  additional  day,  to be  added  to the end of the
then-existing  three  year  term.  Accordingly,  at all  times  prior to (i) the
Executive's attaining age 65 and (ii) a notice of employment  termination (or an
actual  termination),  the term of this  Agreement  shall be three  full  years.
However,  either party may  terminate  this  Agreement by giving the other party
written notice of intent not to renew. Additionally, the automatic extensions of
the term of this Agreement  shall  immediately be suspended upon  termination of
Executive by reason of death,  Disability  (see Section 6.2), or Retirement (see
Section 6.1), or an employment  termination made voluntarily by Executive (other
than for Good  Reason  pursuant  to Section  6.7),  or  involuntarily  for Cause
(pursuant to Section 6.5), or for any of the reasons set out in Section 6.6. The
provisions  applicable to such suspensions of the term of this Agreement are set
forth  in  those  Sections  pertaining  to  each  of such  types  of  employment
termination.

         In the event Executive gives notice of employment termination, the term
of this  Agreement  shall expire upon the  ninetieth  (90th) day  following  the
delivery to the Company and the Bank of such notice of  employment  termination.
Except as  otherwise  provided  in the  following  paragraph  with  respect to a
voluntary  termination for Good Reason (see Section 6.7), a voluntary employment
termination by Executive shall result in the termination of the rights and

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obligations of the parties under this  Agreement;  provided,  however,  that the
terms and provisions of Article 9 shall continue to apply.

         In the event the Company and the Bank desire to involuntarily terminate
the  employment  of  Executive  (for  purposes  of this  Agreement,  a voluntary
employment  termination  by  Executive  for Good  Reason  shall be treated as an
involuntary  termination  of the  Executive's  employment  without  Cause),  the
Company  and the Bank shall each  deliver to  Executive  a notice of  employment
termination, and the following provisions shall apply:

         (a)      In the event the  involuntary  termination  is for Cause  (see
                  Section  6.5  herein),   the  term  of  this  Agreement  shall
                  terminate on the 90th day  following  delivery to Executive of
                  such notice of termination. Such a termination for Cause shall
                  result in the termination of all rights and obligations of the
                  parties  under this  Agreement;  provided,  however,  that the
                  terms and provisions of Article 9 shall continue to apply, and
                  Section  6.5 shall apply until  payments  required  thereunder
                  have been made.

         (b)      In the event the  involuntary  termination  is without  Cause,
                  Executive shall be entitled to receive the severance  benefits
                  set forth in Section 6.4 herein;  provided,  however, that the
                  terms and  provisions of Article 9 shall continue to apply and
                  Section  6.4 shall apply until  payments  required  thereunder
                  have been made.

                    ARTICLE 2. POSITION AND RESPONSIBILITIES

         During  the  term of this  Agreement,  Executive  agrees  to  serve  as
President and Chief  Executive  Officer of the Company and of the Bank, and as a
member of the Company's and the Bank's Board of Directors if so elected.  In his
capacity  as  President  and Chief  Executive  Officer of the Company and of the
Bank,  Executive  shall report directly to the Board of Directors of the Company
(with respects to his functions as an Executive of the Company) and to the Board
of Directors of the Bank (with  respects to his functions as an Executive of the
Bank).  Executive  shall  serve as the  first  in  command  and have  management
responsibility  over the  operations  of the Company and of the Bank.  Executive
shall also perform  such  executive  services for the Bank as may be  consistent
with his titles or be  assigned to him by the Board of  Directors  of either the
Company,  the Bank, or both.  Executive shall have the same status,  privileges,
and   responsibilities   normally  inherent  in  such  capacities  in  financial
institutions of similar size and characteristics.

         The services of Executive shall be rendered principally in Winter Park,
Florida,  but it is understood  that he shall do such traveling on behalf of the
Company and/or the Bank as may be reasonably required.

                           ARTICLE 3. STANDARD OF CARE

         During  the  term  of  this  Agreement,   Executive  agrees  to  devote
substantially  his full working time,  attention,  and energies to the Company's
and the Bank's business and shall not be engaged in any other business activity,
whether or not such  business  activity  is pursued for gain,  profit,  or other
pecuniary  advantage.  However,  Executive  may  serve  as a  director  of other
companies so long as such  service is not  injurious to the Company or the Bank,
and provided  that such service is approved by both the Board of the Company and
of the Bank as may be required under their respective Bylaws.

         Executive covenants, warrants, and represents that he shall:

         (a)      Devote his full and best efforts to the fulfillment of his
                  employment obligations; and

         (b)      Exercise the highest degree of loyalty and the highest
                  standards of conduct in the performance of his
                  duties.

         This  Article 3 shall not be  construed as  preventing  Executive  from
investing assets in such form or manner as

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will not require  his  services  in the daily  operations  of the affairs of the
companies in which such investments are made.

                             ARTICLE 4. COMPENSATION

         The Bank shall be primarily  responsible for providing to Executive his
salary,  bonus, and other benefits and perquisites  available to him pursuant to
this  Agreement  (except for the benefit  outlined in Section 4.3, for which the
Company is primarily  liable).  The Company shall  proportionally  reimburse the
Bank, on an annual basis, for the time that Executive spends  performing  duties
for the Company.  For example, if Executive spends, in a particular year, 20% of
his time working for the Company,  the Company shall then reimburse the Bank 20%
of the annual cost to the Bank of complying with this Agreement. As remuneration
for all services to be rendered by Executive  during the term of this Agreement,
and as consideration for complying with the covenants herein, the Bank shall pay
and provide to Executive the following:

         4.1 BASE  SALARY.  The Bank  shall pay  Executive  a Base  Salary in an
amount which shall be established from time to time by the Board of Directors of
the Bank or the Board's designee; provided, however, that such Base Salary shall
not be less than one hundred and forty thousand dollars  ($140,000.00)  per year
and if  subsequently  increased  shall not be less than  such  increased  amount
("Base  Salary").  This  Base  Salary  shall  be  paid  to  Executive  in  equal
semimonthly installments throughout the year, consistent with the normal payroll
practices of the Bank.

         The Base  Salary  shall be  reviewed at least  annually  following  the
Effective Date of this Agreement, while this Agreement is in force, to ascertain
whether, in the judgment of the Board of the Bank or the Board's designee,  such
Base Salary  should be increased,  based  primarily on  Executive's  performance
during  the year.  If so  increased,  the Base  Salary as  stated  above  shall,
likewise, be increased for all purposes of this Agreement.

         4.2  PERFORMANCE  BONUS.  Executive  shall be entitled to a Performance
Bonus  based  upon the  profitability  of the  Bank.  The  Performance  Bonus is
triggered when the Bank's after tax earnings equal or exceed 0.50 percent of the
average  quarterly assets on an annualized basis. The Bank shall pay Executive a
bonus equal to three  percent  (3%) of the Bank's  quarterly  net income  before
taxes (excluding  extraordinary  gains or losses.  The Performance Bonus amounts
shall be determined as of the close of each fiscal  quarter and shall be paid to
Executive within 45 days of each quarter-end. Aggregate quarterly bonuses in any
one fiscal year shall not exceed the amount of  Employee's  Base Salary for such
fiscal year.

         4.3 LONG-TERM INCENTIVES. During the term of this Agreement,  Executive
shall be entitled to participate in any and all long-term  incentive programs at
a level that is commensurate with his position with the Company.

         4.4  RETIREMENT  BENEFITS.  The Bank shall  provide  Executive  all the
benefits to which he is  entitled  under the Salary  Continuation  Plan (and any
subsequent amendments thereto), which was adopted by the Bank in January of 1997
and  approved  by the OTS on  April 4,  1997.  The  obligations  of the Bank and
pursuant to this Section 4.4 shall survive the termination of this Agreement.

         4.5 EXECUTIVE  BENEFITS.  The Bank shall provide Executive all benefits
to which other executives and Executives of the Bank are entitled to receive, as
commensurate with Executive's position,  subject to the eligibility requirements
and other provisions of such plans or arrangements. Such benefits shall include,
but not be limited to, group term life insurance, comprehensive health and major
medical  insurance for Executive and his wife,  dental and life  insurance,  and
short-term and long-term disability insurance.

         The  Executive  shall be entitled to five weeks of paid  vacation.  The
Bank shall pay to Executive,  at the end of each fiscal year, double his regular
daily  rate of  compensation  (pursuant  to the  Base  Salary)  for  each day of
vacation  he did not take and,  instead,  worked for  either the  Company or the
Bank.

         4.6  PERQUISITES.  The Bank shall provide to  Executive,  at the Bank's
cost, all perquisites to which other similarly  situated  executives of the Bank
are  entitled to receive and such other  perquisites  which are  suitable to the
character of Executive's position with the Bank and adequate for the performance
of his duties hereunder.

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         The Bank shall provide  Executive with a vehicle of like make and model
as would be suitable to the character of  Executive's  position with the Company
(the  "Executive's  Company Car").  The Bank shall  reimburse  Executive for the
costs of maintaining the Executive  Company Car,  including repairs completed at
any time while this Agreement is in effect.

         4.7  RIGHT  TO  CHANGE  PLANS.  The  Bank  shall  not be  obligated  to
institute,  maintain,  or refrain from changing,  amending, or discontinuing any
benefit  plan,  program,  or  perquisite,  so long as such changes are similarly
applicable to executive officers (Vice President or above) generally.

         4.8 MINIMUM CAPITAL STOCK INVESTMENT AND REPURCHASE OF STOCK. Executive
agrees to maintain his minimum  capital  stock  investment  in the Company (1993
stock  purchase  of  8,453  shares,  ["Shares"])  for as long as this  Agreement
remains in effect.  Upon  voluntary  termination  for Good  Reason as defined in
Section  6.7,  involuntary  termination  (other  than for Cause as  provided  in
Section 6.5) the Company  agrees to repurchase  from  Executive at book value or
the fair market  value,  whichever is greater,  all or any portion of the Shares
which he wishes to sell to the Company.  In the event the Company is  dissolved,
liquidated, or reorganized where the Bank is the surviving entity, and Executive
voluntarily  terminates  his  employment  for Good  Reason  or is  involuntarily
terminated (other than for Cause),  the Bank agrees to repurchase from Executive
at book value or at fair market value,  whichever is greater,  any capital stock
which he may then own in the Bank and which he  wishes  to sell to the  Company;
provided, however, that such repurchase shall not be required to the extent that
the  purchase  would  cause  the  Bank  to  fail to  meet  its  minimum  capital
requirements.

                               ARTICLE 5. EXPENSES

         The  Bank  shall  pay or  reimburse  Executive  for  all  ordinary  and
necessary expenses, in a reasonable amount, which Executive incurs in performing
his  duties  under  this  Agreement  including,  but  not  limited  to,  travel,
entertainment,  professional  dues and  subscriptions,  and all dues,  fees, and
expenses  associated  with  membership in various social clubs or  professional,
business,   and  civic   associations   and   societies  in  which   Executive's
participation is in the best interest of the Company and/or the Bank.

                       ARTICLE 6. EMPLOYMENT TERMINATIONS

         6.1 TERMINATION  DUE TO RETIREMENT OR DEATH.  In the event  Executive's
employment is terminated  while this Agreement is in force by reason of early or
normal  retirement (as provided under the then  established  rules of the Bank's
tax-qualified  retirement plan,  "Retirement"),  or death,  Executive's benefits
shall be  determined  in  accordance  with  the  Bank's  retirement,  survivors'
benefits,  insurance,  and other applicable programs of the Bank then in effect.
Upon the effective date of such  termination,  the Bank's  obligation under this
Agreement  to pay and provide to  Executive  the  elements of pay  described  in
Sections 4.1, 4.2, and 4.3 shall immediately  expire.  However,  Executive shall
receive all other  rights and benefits  that he is vested in,  pursuant to other
plans and programs of the Bank. In addition, subject to any conflicting terms of
any  short-term  incentive  program  which would  provide  for greater  benefits
following  such  termination,  the Bank shall pay to Executive  (or  Executive's
beneficiaries  or estate,  as applicable) a pro rata share any accrued bonus for
such fiscal year.  This pro rata Bonus amount  shall be  determined  at the sole
discretion of the Bank's Board of Directors, as a function of the number of days
in such fiscal year prior to the date of employment  termination  in relation to
the total number of days in such fiscal  year.  The pro rata Bonus shall be paid
within  45 days of the  Effective  Date of  employment  termination.  Also,  all
unvested  stock  awards  (including,  but not limited to, any stock  options and
restricted stock) will vest in full on the date of termination.

         6.2 TERMINATION  DUE TO DISABILITY.  If Executive  becomes  disabled or
incapacitated to the extent that he is unable to perform his duties as President
and Chief Executive  Officer of the Company and the Bank, he shall  nevertheless
continue to receive the following percentages of his compensation,  exclusive of
any benefits  which may be in effect for  Executives  of the Company  and/or the
Bank, for the following periods of disability: 100% for the first six months and
75%  thereafter  for the remaining  term of this  Agreement.  Upon  returning to
active  duties,  Executive's  full  compensation  as set forth in this Agreement
shall be reinstated. In the event that Executive returns to active

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employment  on other than a  full-time  basis,  then his  compensation  shall be
reduced in proportion to the time spent in said employment.

         There shall be deducted  from the amounts paid to  Executive  hereunder
during any period of  disability  any  amounts  actually  paid to the  Executive
pursuant to any  disability  insurance or other such similar  program  which the
Company  and/or the Bank have  instituted  or may  institute  on behalf of their
Executives  for  the  purpose  of  compensating   Executives  in  the  event  of
disability.

         For the purpose of this  Agreement,  Executive shall be deemed disabled
or  incapacitated  if Executive,  due to physical or mental illness,  shall have
been  absent from his duties  with the Bank,  on a full-time  basis for 90 days;
provided that, if Executive  shall not agree with a  determination  to terminate
him because of disability or  incapacity,  the question of  Executive's  ability
shall be submitted  to an  impartial  and  reputable  physician  selected by the
parties hereto and such physician's  determination on the question of disability
or incapacity shall be binding.

         6.3 VOLUNTARY  TERMINATION  BY THE  EXECUTIVE.  Executive may terminate
this  Agreement  at any time by giving the Board of Directors of the Company and
of the Bank  written  notice  of  intent  to  terminate,  delivered  at least 60
calendar days prior to the effective date of such termination.  This Section 6.3
shall not apply if Executive  terminates  employment because of Retirement.  The
Bank shall pay  Executive  his full Base  Salary,  at the rate then in effect as
provided in Section 4.1 herein, through the effective date of termination,  plus
all other  benefits to which the  Executive has a vested right at that time (for
this purpose,  Executive  shall not be paid any bonus with respect to the fiscal
quarter in which voluntary  termination  under this Section 6.3 occurs).  In the
event that the voluntary  termination  is for Good Reason,  the terms of Section
6.7 herein shall govern the parties' rights and obligations hereunder.

         6.4 INVOLUNTARY TERMINATION BY THE COMPANY AND/OR THE BANK WITHOUT
CAUSE. At any time during the term of this  Agreement,  the Board of the Company
or of the Bank may  terminate  Executive's  employment,  as provided  under this
Agreement, for reasons other than death, Disability,  Retirement,  or for Cause,
by notifying  Executive in writing of the Bank's and/or the Company's  intent to
terminate,  at  least  90  calendar  days  prior  the  effective  date  of  such
termination.

         Subject to the terms of Article 7 herein,  following the  expiration of
the  90-day  notice  period,  the Bank  shall pay to  Executive  a lump sum cash
payment equal to the present value of the sum of the following amounts:

         (a)   The  Base  Salary   which  would  have  been  paid  to  Executive
               throughout the remaining years of the term of this Agreement;

         (b)   The Performance  Bonus amount for the fiscal quarter in which the
               termination became effective;

         (c)   The annualized  long-term  incentive  award for the year in which
               termination  occurs, at the higher of the targeted level of award
               or anticipated  actual,  multiplied by the remaining years of the
               term of this Agreement; and

         (d)   The  amount  of  Executive's  annual  club  dues  in the  year of
               termination,  multiplied  by the  remaining  years of the term of
               this Agreement.

         For purposes of making the present value calculations  described above,
the Bank's Board shall treat such  payments as if they were made at the point in
time in the future when each such payment is  scheduled to have been made.  Such
present value calculations shall at the Federal Discount Rate plus 2.5%.

         All  unvested  stock awards  (including,  but not limited to, any stock
options and restricted stock) will vest on the date of termination. Further, the
Bank shall  continue  Executive's  health and welfare  benefit  coverage for the
entire  three-year  period following  employment  termination  (including health
insurance  for his  wife),  at the same  cost,  and on the same terms as existed
immediately  prior to  employment  termination.  The Bank shall also transfer to
Executive title to the Executive's  Company Car, without cost to Executive,  and
shall pay to Executive a lump sum cash  payment in an amount  necessary to fully
gross-up the income tax effect of said transfer.

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         The Bank and  Executive  thereafter  shall have no further  obligations
under this  Agreement.  Notwithstanding  the foregoing,  in the event  Executive
obtains  comparable  employment,  the Bank's obligation to continue  Executive's
health  and  welfare  benefit  coverage  pursuant  to  this  Section  6.4  shall
immediately  cease. The payments  described in this Section 6.4 shall be in part
to  compensate  Executive  for being  subject  to the  provisions  of  Article 9
hereafter,  even though Executive's employment has been terminated without Cause
or for Good Reason as provided in Section 6.7.

     6.5 TERMINATION FOR CAUSE.  Nothing in this Agreement shall be construed to
prevent the Board of the Bank from terminating Executive's employment under this
Agreement for "Cause."

         "Cause"  shall be  determined  by the  appropriate  Board of  Directors
(determined  by where  the  conduct  or  action in  question  was  taken) in the
exercise  of good  faith and  reasonable  judgment;  and shall be defined as the
conviction of the Executive for the commission of an act of fraud, embezzlement,
theft,  or other  criminal act  constituting  a felony under U.S. laws involving
moral turpitude; or the gross neglect of the Executive in the performance of any
or  all  material  covenants  under  this  Agreement,  for  reasons  other  than
Executive's death, Disability, or Retirement. The Board, by majority vote, shall
make the  determination  of whether Cause exists,  after providing the Executive
with notice of the reasons the Board believes Cause may exist,  and after giving
Executive the opportunity to respond to the allegation that Cause exists. In the
event this Agreement is terminated by the Board for Cause, the Company shall pay
Executive  his  Base  Salary  through  the  effective  date  of  the  employment
termination and Executive shall  immediately  thereafter  forfeit all rights and
benefits  (other than vested  benefits) he would otherwise have been entitled to
receive under this Agreement. The Bank and Executive,  thereafter, shall have no
further obligations under this Agreement provided,  however, that the provisions
of Article 9 shall continue to apply.

     6.6 OTHER REASONS FOR SUSPENSION/TERMINATION.  The following are additional
reasons for this Agreement to be suspended or terminated:

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

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

         (c)      All  obligations  under  this  Agreement  may be  terminated
                  pursuant to 12 C.F.R.  Section  563.39(b)(5)  (except to the
                  extent  that  it is  determined  that  continuation  of  the
                  Agreement for the continued operation of Bank is necessary):
                  (i) by the  Director  of the  Office of  Thrift  Supervision
                  ("OTS"),  or  his/her  designee,  at the  time  the  Federal
                  Deposit  Insurance   Corporation  ("FDIC")  enters  into  an
                  agreement  to  provide  assistance  to or on  behalf of Bank
                  under the  authority  contained in Section 13(c) of the FDIA
                  (12 U.S.C. Section 1823[c]);  or (ii) by the Director of the
                  OTS,  or  his/her  designee,  at the  time the  Director  or
                  his/her  designee  approves a supervisory  merger to resolve
                  problems  related  to  operation  of Bank  or  when  Bank is
                  determined by the Director of the OTS in final agency action
                  to be in an unsafe or unsound  condition,  but vested rights
                  of the  Executive  and  of  the  Bank,  as of  the  date  of
                  termination, shall not be affected.

         (d)      If Bank is in default,  as defined in Section 3(x)(1) of the
                  FDIA (12 U.S.C.  Section 1818[x][1]) to mean an adjudication
                  or other  official  determination  by any court of competent

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                    jurisdication,  the  appropriate  federal  banking agency or
                    other  public  authority  pursuant to this  Agreement  shall
                    terminate  as of the date of default,  but vested  rights of
                    the  Executive as of the date of  termination,  shall not be
                    affected.

         6.7  TERMINATION  FOR GOOD REASON.  At any time during the term of this
Agreement,  Executive may terminate  this  Agreement for Good Reason (as defined
below) by giving the Board of  Directors  of the  Company  and/or of the Bank 60
calendar days written notice of intent to terminate,  which notice sets forth in
reasonable  detail  the facts and  circumstances  claimed to provide a basis for
such termination. Executive's ability to terminate for Good Reason is contingent
upon his agreement to allow the Company  and/or the Bank to remedy,  within such
60 day period, the events constituting Good Reason.

         Upon the  failure of the  Company  and/or the Bank to remedy the events
constituting  Good Reason prior to the  expiration of the 60 day notice  period,
the Good Reason  termination shall become effective,  and the Bank shall pay and
provide  Executive  the  benefits  set forth in  Section  6.4  herein (as if the
termination were an involuntary termination without Cause.)

         Good Reason  shall mean,  without  Executive's  express  prior  written
consent, the occurrence of any one or more of the following:

         (a)      The assignment of Executive to duties materially  inconsistent
                  with Executive's authorities,  duties,  responsibilities,  and
                  status  (including  titles and reporting  requirements)  as an
                  officer of the Company or of the Bank, or a material reduction
                  or  alteration   in  the  nature  or  status  of   Executive's
                  authorities,  duties, or responsibilities from those in effect
                  as of the Effective Date (or as subsequently increased), other
                  than an insubstantial  and inadvertent act that is remedied by
                  the Company  and/or the Bank promptly  after receipt of notice
                  thereof by the Executive;

         (b)      The Bank's or the Company's requiring Executive to be based at
                  a  location  in  excess  of 35  miles  from  the  location  of
                  Executive's  principal  job  location  or  office  as  of  the
                  Effective Date, except for required travel on the Company's or
                  the Bank's business to an extent substantially consistent with
                  Executive's present business obligations;

         (c)      A reduction by the Bank of Executive's Base Salary as in
                  effect on the Effective Date, or as the same shall be increase
                  from time to time;

         (d)      An intentional  material reduction by the Company or the
                  Bank of Executive's aggregate incentive  opportunities under
                  the  Company's  or Bank's  short-  and  long-term  incentive
                  programs, as such opportunities exist on the Effective Date,
                  or  as  such   opportunities  may  be  increased  after  the
                  Effective Date. For this purpose, a reduction in Executive's
                  incentive  opportunities shall be deemed to have occurred in
                  the event his targeted annualized award opportunities and/or
                  the degree of probability  of attainment of such  annualized
                  award  opportunities,  are  materially  diminished  from the
                  levels and  probability of attainment that existed as of the
                  Effective  Date  or as such  opportunity  and/or  degree  of
                  probability have been increased from time to time;

         (e)      The failure of the Company or the Bank to maintain Executive's
                  relative level of coverage under the Bank's Executive  benefit
                  or retirement plans, policies,  practices,  or arrangements in
                  which Executive participates as of the Effective Date, both in
                  terms of the  amount of  benefits  provided  and the  relative
                  level of the executive's participation.  For this purpose, the
                  Company  or the  Bank may  eliminate  and/or  modify  existing
                  programs  and coverage  levels;  provided,  however,  that the
                  Executive's  level of coverage under all such programs must be
                  at least as great as is such  coverage  provided to executives
                  who   have   the   same  or   lesser   levels   of   reporting
                  responsibilities within the organization;

         (f)      The   failure  of  the   Company  or  the  Bank  to  obtain  a
                  satisfactory  agreement  from  any  successor  to the  Company
                  and/or the Bank to assume and agree to perform  the  Company's
                  and  the  Bank's   obligations   under  this   Agreement,   as
                  contemplated in Article 11 herein; and

                                       72

<PAGE>

         (g)      Any purported  termination  by the Company  and/or the Bank of
                  Executive's  employment  that is not  effected  pursuant  to a
                  notice of termination satisfying the requirements of Article 1
                  herein, and for purposes of this Agreement,  no such purported
                  termination shall be effective.

         Executive's right to terminate  employment for Good Reason shall not be
affected  by  Executive's   incapacity  due  to  physical  or  mental   illness.
Executive's  continued employment shall not constitute a consent to, or a waiver
of rights with respect to, any  circumstance  constituting  Good Reason  herein.
Upon a termination of Executive's  employment for Good Reason at any time during
the term of this  Agreement,  Executive  shall be  entitled  to receive the same
payments  and  benefits as he is entitled to receive  following  an  involuntary
termination of his  employment by the Company and/or the Bank without Cause,  as
specified in Section 6.4 herein.

         6.8  CHANGE  IN  CONTROL.  In the event of a change  in  control  (with
respect to either the  Company  or the  Bank),  as defined in 12 C.F.R.  Section
574.4(a) or (b) of the OTS  regulations,  the Company  and/or the Bank shall pay
"delayed   recognition   bonus"   equal  to  three  times   Executive's   annual
compensation, times the price/book value ration at which the Company or the Bank
is acquired in  recognition  of Executive  having  agreed to defer  payment of a
higher Base Salary  during the first three years of employment in order that the
Company  and Bank could  reduce  their  employee  compensation  costs  while the
Company  underwent  reorganization  and the Company and the Bank  addressed  and
corrected regulators concerns.

                         ARTICLE 7. NO DUTY TO MITIGATE

         Executive  shall not be required to mitigate  the amount of any payment
provided to him by the Bank as a result of Executive's termination.

                         ARTICLE 8. EXCISE TAX GROSS-UP

         8.1 EQUALIZATION  PAYMENT. In the event that Executive becomes entitled
to  severance  benefits  under  Sections  6.4,  6.7,  or 6.8 herein  ("Severance
Benefits"),  if any of the  Severance  Benefits  will be subject to the tax (the
"Excise Tax")  imposed by Section 4999 of the Internal  Revenue Code of 1986, as
amended (the "Code"), or any similar tax that may hereafter be imposed, the Bank
shall pay to Executive in cash an  additional  amount (the  "Gross-Up  Payment")
such that the net amount retained by Executive after deduction of (i) any Excise
Tax on the Severance Benefits and (ii) any Federal,  state, and local income tax
and Excise Tax on the Gross-Up  Payment  provided for by this Section 8.1, shall
be equal to the Severance Benefits. Such payment shall be made by the Company or
the Bank to Executive as soon as  practicable  following the  effective  date of
termination, but in no event beyond 30 days from such date.

          8.2 TAX  COMPUTATION.  For purposes of determining  whether any of the
Severance  Benefits  will be subject  to the Excise Tax and the  amounts of such
Excise Tax:

         (a)   Any other  payments  or  benefits  received  or to be received by
               Executive in  connection  with a change in control of the Company
               or the Bank or  Executive's  termination  of employment  (whether
               pursuant   to  the  terms  of  this  Plan  or  any  other   plan,
               arrangement,  or agreement  with the Company  and/or the Bank, or
               with any individual,  entity, or group of individuals or entities
               (individually and collectively referred to in this Section 8.2 as
               "Persons"  whose  actions  result in a change in  control  of the
               Company  and/or Bank or any Person  affiliated  with the Company,
               the  Bank,  or such  Persons)  shall  be  treated  as  "parachute
               payments"  within  the  meaning  of  Section  280G(b)(2)  of  the
               Internal Revenue Code, and all "excess parachute payments" within
               the  meaning  of Code  Section  280G(b)(1)  of the Code  shall be
               treated as subject to the Excise  Tax,  unless in the  opinion of
               tax counsel  selected  by the  Company's  and Bank's  independent
               auditors and  acceptable  to  Executive,  such other  payments or
               benefits  (in  whole  or in  part)  do not  constitute  parachute
               payments,  or unless such excess parachute  payments (in whole or
               in part) represent reasonable  compensation for services actually
               rendered

                                       73

<PAGE>

                  within the meaning of Code Section  280G(b)(4)  of the Code in
                  excess  of the base  amount  within  the  meaning  of  Section
                  280G(b)(3)  of the Code,  or are  otherwise not subject to the
                  excise tax;

         (b)      The amount of the Severance Benefits which shall be treated as
                  subject to the Excise Tax shall be equal to the lesser of: (i)
                  the total amount of the Severance Benefits; or (ii) the amount
                  of  excess  parachute  payments  within  the  meaning  of Code
                  Section  280G(b)(1)  of the Code  (after  applying  clause (a)
                  above); and

         (c)      The value of any noncash  benefits or any deferred  payment or
                  benefit  shall be  determined  by the Company's and the Bank's
                  independent  auditors in  accordance  with the  principles  of
                  Sections 280G(d)(3) and (4) of the Code. The base amount shall
                  be determined by the Bank's independent auditors in accordance
                  with the principles of sections 280G(d)(3) of the Code.

         For  purposes  of  determining  the  amount  of the  Gross-Up  Payment,
Executive  shall be deemed to pay Federal  income taxes at the highest  marginal
rate of Federal  income  taxation  in the  calendar  year in which the  Gross-Up
Payment is to be made, and state and local income taxes at the highest  marginal
rate of  taxation  in the state and  locality of  Executive's  residence  on the
effective  date of  employment,  net of the maximum  reduction in Federal income
taxes which could be obtained from deduction of such state and local taxes.

         8.3 SUBSEQUENT RECALCULATION. In the event the Internal Revenue Service
adjusts  the  computation  of  the  Company  under  Section  8.1  herein,  which
adjustment  becomes  binding on the  Service,  the  Company,  the Bank,  and the
Executive,  so that Executive did not receive the greatest net benefit, the Bank
shall reimburse Executive for the full amount necessary to make Executive whole,
plus a market rate of interest.

                            ARTICLE 9. NONCOMPETITION

         9.1  PROHIBITION ON  COMPETITION.  Without the prior written consent of
the Company and the Bank, during the term of this Agreement,  and for six months
following the  expiration  of this  Agreement,  Executive  shall not serve as an
officer or engage directly,  or indirectly,  in any business or enterprise which
is "in  competition"  with the  Company  and/or  the Bank or its  successors  or
assigns. For purposes of this Agreement, a business or enterprise will be deemed
to be "in competition" if it is a banking institution,  the headquarter of which
is within 100 miles from the location of  Executive's  principal job location or
office at the time of termination of employment.  However,  Executive  shall not
thereby be precluded or prohibited  from owning passive  investments,  including
investments in the securities of other financial  institutions,  so long as such
ownership  does not  require him to devote  substantial  time to  management  or
control of the business or activities in which he has invested.

         9.2 DISCLOSURE OF INFORMATION.  Executive recognizes that he has access
to and knowledge of certain  confidential  and  proprietary  information  of the
Company  and of the Bank which is  essential  to the  performance  of his duties
under this  Agreement.  Executive will not, during the term of his employment by
the Company and/or the Bank, or within six months  following  expiration of this
Agreement,  in whole or in part, disclose such information to any person,  firm,
corporation,  association, or other entity for any reason or purpose whatsoever,
nor shall he make use of any such information for his own purposes.

         9.3 SPECIFIC  PERFORMANCE.  The parties  recognize that the Company and
the Bank will have no  adequate  remedy at law for  breach by  Executive  of the
requirements of this Article 9 and, in the event of such breach, the Company the
Bank, and Executive hereby agree that, in addition to the right to seek monetary
damages,  the Bank and/or the  Company  will be entitled to a decree of specific
performance,  mandamus,  or other appropriate  remedy to enforce  performance of
such requirements.

                           ARTICLE 10. INDEMNIFICATION

         The Company and the Bank hereby  covenant  and agree to  indemnify  and
hold  harmless  Executive  in a manner  consistent  with the  provisions  of the
Company's and the Bank's Article of Incorporation.

                                       74

<PAGE>

                             ARTICLE 11. ASSIGNMENT

         11.1  ASSIGNMENT  BY BANK OR COMPANY.  This  Agreement may and shall be
assigned  or  transferred  to, and shall be binding  upon and shall inure to the
benefit of, any successor of the Company or of the Bank,  and any such successor
shall be deemed  substituted  for all  purposes of the Company or the Bank under
the terms of this  Agreement.  As used in this Agreement,  the term  "successor"
shall mean any person, firm, corporation,  or business entity which at any time,
whether by merger, purchase, or otherwise,  acquires all or substantially all of
the assets or the business of the Company or of the Bank.  Notwithstanding  such
assignment,  the  Company  and/or the Bank shall  remain,  with such  successor,
jointly and severally liable for all its obligations hereunder.

         Failure of the Company  and/or the Bank to obtain the  agreement of any
successor to be bound by the terms of this Agreement prior to the  effectiveness
of  any  such  succession  shall  be a  breach  of  this  Agreement,  and  shall
immediately  entitle  Executive to compensation from the Bank in the same amount
and on the same  terms as the  Executive  would be  entitled  in the  event of a
termination of employment, as provided in Section 6.4 herein.

         Except as herein provided, this Agreement may not otherwise be assigned
by the Company and/or the Bank.

         11.2 ASSIGNMENT BY EXECUTIVE.  The services to be provided by Executive
to the Company and the Bank hereunder are personal to Executive,  and his duties
may not be assigned by Executive;  provided,  however, that this Agreement shall
inure to the  benefit of and be  enforceable  by  Executive's  personal or legal
representatives, executors, and administrators, successors, heirs, distributees,
devisees, and legatees. If Executive dies while any amounts payable to Executive
hereunder  remain  outstanding,  all such  amounts,  unless  otherwise  provided
herein,  shall  be paid in  accordance  with  the  terms  of this  Agreement  to
Executive's  devisee,  legatee,  or other  designee  or, in the  absence of such
designee, to Executive's estate.

                    ARTICLE 12. DISPUTE RESOLUTION AND NOTICE

         12.1 DISPUTE  RESOLUTION.  Executive shall have the right and option to
elect  to have  any  good  faith  dispute  or  controversy  arising  under or in
connection  with this  Agreement  settled by litigation or by  arbitration.  The
venue for any  litigation  concerning  the  enforcement  of this  Agreement or a
breach of this  Agreement  shall be Orange  County,  Florida.  If arbitration is
selected, such proceeding shall be conducted before a panel of three arbitrators
sitting in a location  selected  by the  Executive,  but within  Orange  County,
Florida,  in accordance with the rules of the American  Arbitration  Association
then in effect.  Judgment may be entered on the award of the  arbitrators in any
court having competent jurisdiction.

         All  expenses  of  such  litigation  or   arbitration,   including  the
reasonable fees and expenses of the legal representative for the Executive,  and
necessary costs and disbursements  incurred as a result of such dispute or legal
proceeding,  and any prejudgment interest, shall be borne by the Bank and/or the
Company.

         12.2 NOTICE. Any notices,  requests,  demands, or other  communications
provided for by this Agreement  shall be sufficient if in writing and if sent by
registered  or certified  mail to the Executive at the last address he has filed
in  writing  with the  Company  and the Bank or,  in the case of the Bank or the
Company,  to an executive officer of the Company and an executive officer of the
Bank, at the Company's and the Bank's principal offices.

                            ARTICLE 13. MISCELLANEOUS

         13.1 ENTIRE AGREEMENT.  This Agreement  supersedes any prior agreements
or understandings,  oral or written,  between the parties hereto, or between the
Executive, the Bank, and the Company, with respect to the subject matter hereof,
and constitutes the entire agreement of the parties with respect thereto.

          13.2  MODIFICATION.  This  Agreement  shall  not be  varied,  altered,
modified, canceled, changed, or in any way amended except by mutual agreement of
the parties in a written instrument executed by the parties hereto or

                                       75

<PAGE>

their legal representatives.

         13.3  SEVERABILITY.  In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, the
remaining  provisions of this  Agreement  shall be unaffected  thereby and shall
remain in full force and

         13.4  COUNTERPARTS.  This  Agreement  may be  executed  in one or  more
counterparts,  each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement.

          13.5 TAX WITHHOLDING.  The Bank may withhold from any benefits payable
under this Agreement all federal, state, city, or other taxes as may be required
pursuant to any law or governmental regulation or ruling.

         13.6  BENEFICIARIES.  Executive  may  designate  one or more persons or
entities as the primary  and/or  contingent  beneficiaries  of any amounts to be
received under this Agreement.  Such designation must be in the form of a signed
writing  acceptable to the Board or the Board's designee.  Executive may make or
change such designation at any time.

                              ARTICLE 14. GOVERNING

         To the extent not  preempted  by federal law,  the  provisions  of this
Agreement  shall be construed  and enforced in  accordance  with the laws of the
State of Florida.

         IN WITNESS WHEREOF,  Executive has executed, the Company (pursuant to a
resolution  adopted  at a duly  constituted  meeting of the  Company's  Board of
Directors) has executed this  Agreement,  and the Bank (pursuant to a resolution
adopted at a duly  constituted  meeting of the Bank's  Board of  Directors)  has
executed this Agreement as of December 18, 1998.

FEDERAL TRUST CORPORATION                          EXECUTIVE:

By:/s/George W. Foster                             /s/James V. Suskiewich
   ----------------------                          ----------------------
     George W. Foster                              James V. Suskiewich
     On behalf of the
     Board of Directors

Attest:/s/Lori MacTavish
       ------------------

FEDERAL TRUST BANK

By:/s/George W. Foster
   ----------------------
     George W. Foster

     On behalf of the
     Board of Directors

                                       76EXHIBIT 10.2

                                 FIRST AMENDMENT
                       TO THE AMENDED EMPLOYMENT AGREEMENT
                     BY AND AMONG FEDERAL TRUST CORPORATION,
                             FEDERAL TRUST BANK, AND
                               JAMES V. SUSKIEWICH

     THIS AMENDMENT TO THE AMENDED EMPLOYMENT AGREEMENT is made and entered into
this 9th of  February,  1999,  by and between  Federal  Trust  Corporation  (the
"Company"),  Federal  Trust  Bank (the  "Bank"),  and James V.  Suskiewich  (the
"Executive");

     WHEREAS, the parties entered into that certain employment agreement,  dated
December 18, 1998 (the "Agreement");

     WHEREAS  the parties  mutually  desire and deem it  necessary  to amend the
Agreement in certain respects;

     NOW,  THEREFORE,  for good and  valuable  consideration,  the  receipt  and
sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as
follows:

         1. Amendment to Article 1. The parties hereby agree to delete Article 1
of the Agreement and replace it with the following,  the underlined  portions of
which reflect the changes from the hereby deleted Article 1:

         ARTICLE 1. TERM OF EMPLOYMENT

         The Company and the Bank hereby agree to employ Executive and Executive
         hereby  agrees to  continue  to serve  the  Company  and the  Bank,  in
         accordance  with the terms and  conditions  set  forth  herein,  for an
         initial  period of three years,  commencing as of the Effective Date of
         this Agreement, as indicated above. Upon each new day of the three year
         period of employment from the Effective Date until the Executive's 65th
         birthday,  the term of this Agreement  automatically  shall be extended
         for one  additional  day,  to be added to the end of the  then-existing
         three year term. Accordingly, at all times prior to (I) the Executive's
         attaining  age 65 and (ii) a notice of  employment  termination  (or an
         actual  termination),  the term of this  Agreement  shall be three full
         years. However, either party may terminate this Agreement by giving the
         other party written  notice of intent not to renew.  Additionally,  the
         Board of the Bank and of the Company shall, on an annual basis,  review
         this Agreement and document their  justification  and approval in their
         respective board minutes.  The automatic extensions of the term of this
         Agreement shall  immediately be suspended upon termination of Executive
         by reason of death,  Disability  (see Section 6.2), or Retirement  (see
         Section  6.1),  or  an  employment   termination  made  voluntarily  by
         Executive  (other than for Good Reason  pursuant  to Section  6.7),  or
         involuntarily  for Cause  (pursuant to Section  6.5), or for any of the
         reasons  set out in Section  6.6.  The  provisions  applicable  to such
         suspensions  of the  term of this  Agreement  are set  forth  in  those
         Sections pertaining to each of such types of employment termination.

         In the event Executive gives notice of employment termination, the term
         of this Agreement shall expire upon the ninetieth  (90th) day following
         the  delivery to the Company and the Bank of such notice of  employment
         termination.  Except as otherwise  provided in the following  paragraph
         with  respect to a voluntary  termination  for Good Reason (see Section
         6.7), a voluntary  employment  termination by Executive shall result in
         the termination of the rights and obligations of the parties under this
         Agreement;  provided, however, that the terms and provisions of Article
         9 shall continue to apply.

         In the event the Company and the Bank desire to involuntarily terminate
         the  employment  of  Executive  (for  purposes  of  this  Agreement,  a
         voluntary employment  termination by Executive for Good Reason shall be
         treated as an  involuntary  termination of the  Executive's  employment
         without  Cause),  the  Company  and the  Bank  shall  each  deliver  to
         Executive  a  notice  of  employment  termination,  and  the  following
         provisions shall apply:

                                       77

<PAGE>

                  (a)      In the event the involuntary termination is for Cause
                           (see Section 6.5 herein),  the term of this Agreement
                           shall terminate on the 90th day following delivery to
                           Executive  of  such  notice  of  termination.  Such a
                           termination for Cause shall result in the termination
                           of all rights and  obligations  of the parties  under
                           this Agreement; provided, however, that the terms and
                           provisions of Article 9 shall continue to apply,  and
                           Section  6.5  shall  apply  until  payments  required
                           thereunder have been made.

                  (b)      In the event the  involuntary  termination is without
                           Cause,  Executive  shall be  entitled  to receive the
                           severance  benefits  set forth in Section 6.4 herein;
                           provided,  however,  that the terms and provisions of
                           Article 9 shall  continue  to apply and  Section  6.4
                           shall apply until payments  required  thereunder have
                           been made.

         2.  Amendment to Article 6,  Subsection 5. The parties  hereby agree to
delete  Article  6,  Subsection  5, of the  Agreement  and  replace  it with the
following,  the underlined portions of which reflect the changes from the hereby
deleted Article 6, Subsection 5:

       6.5 TERMINATION FOR CAUSE.  Nothing in this Agreement shall be construed
to prevent the Board of the Bank from terminating  Executive's  employment under
this Agreement for "Cause."

         "Cause"  shall be  determined  by the  appropriate  Board of  Directors
         (determined  pursuant  to the law of the  venue  where the  conduct  or
         action  in  question  was  taken)  in the  exercise  of good  faith and
         reasonable  judgment;  and shall  include  termination  because  of the
         Executive 's personal  dishonesty,  incompetence,  willful  misconduct,
         breach of fiduciary duty involving personal profit, intentional failure
         to perform  stated  duties,  willful  violation  of any law,  rule,  or
         regulation (other than traffic violations or similar offenses) or final
         cease-  and-desist  order,  or material  breach of any provision of the
         contract.  The Board, by majority vote, shall make the determination of
         whether Cause exists,  after providing the Executive with notice of the
         reasons the Board believes Cause may exist,  and after giving Executive
         the opportunity to respond to the allegation that Cause exists.  In the
         event this Agreement is terminated by the Board for Cause,  the Company
         shall pay Executive his Base Salary  through the effective  date of the
         employment  termination  and  Executive  shall  immediately  thereafter
         forfeit all rights and benefits  (other than vested  benefits) he would
         otherwise have been entitled to receive under this Agreement.  The Bank
         and Executive, thereafter, shall have no further obligations under this
         Agreement  provided,  however,  that the  provisions of Article 9 shall
         continue to apply.

         IN WITNESS WHEREOF,  Executive has executed, the Company (pursuant to a
resolution  adopted  at a duly  constituted  meeting of the  Company's  Board of
Directors) has executed this  Agreement,  and the Bank (pursuant to a resolution
adopted at a duly  constituted  meeting of the Bank's  Board of  Directors)  has
executed this Agreement as of February 9, 1999.

FEDERAL TRUST CORPORATION                         EXECUTIVE:

By: /s/ George W. Foster                          /s/ James V. Suskiewich
    --------------------                          -----------------------
     George W. Foster, On Behalf of the           James V. Suskiewich
     Board of Directors

FEDERAL TRUST BANK

By:/s/George W. Foster
   -------------------
     George W. Foster, On Behalf of the
     Board of Directors

                                       78

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