Document:

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                                                                    EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT dated as of September 14, 1999 among HUDSON UNITED
BANCORP, a New Jersey Corporation (the "Company"), HUDSON UNITED BANK, a New
Jersey chartered commercial bank (the "Bank") and KENNETH T. NEILSON (the
"Officer").

     A.  The Officer is currently Chairman of the Board, President and Chief
Executive Officer, and a director, of the Company and of the Bank.

     B.  The Company and Dime Bancorp, Inc. ("Bancorp") are concurrently
herewith entering into an Agreement and Plan of Merger dated as of the date
hereof (the "Merger Agreement"), which contemplates the merger or business
combination of the Company and Bancorp (the "Holding Company Combination") at
the Effective Time (as defined in the Merger Agreement) as well as the merger or
business combination of the Bank and The Dime Savings Bank of New York, FSB (the
"Bank Combination").

     C.  The Company and the Bank are desirous of employing the Officer prior to
the Holding Company Combination and, pursuant to the Merger Agreement, of
providing for the continued employment of the Officer by the Surviving
Corporation (as defined in the Merger Agreement) and of the entity resulting
from the Bank Combination (the "Surviving Bank") on and subsequent to the
Effective Time and upon the terms and conditions set forth in this Agreement.

     D.  The Officer is desirous of being so employed upon the terms and
conditions set forth in this Agreement.

     Therefore, the Company, the Bank and the Officer, intending to be legally
bound, agree as follows:

     1.  Employment.  Subject to the terms and conditions of this Agreement, the
Company hereby employs the Officer, and the Officer hereby accepts such
employment. In addition, subject to the terms and conditions of this Agreement,
the Bank hereby employs the Officer and the Officer hereby accepts such
employment. Except as otherwise limited by Sections 9(c) and 11 hereof, the
Company and the Bank shall be jointly and severally liable for all of the
Company's and the Bank's obligations hereunder.

     2.  Term of Employment.  (a) The term of the Officer's employment under
this Agreement shall be deemed to have commenced on the date of this Agreement
and shall continue until December 31, 2004 (the "Term"). The expiration of the
Term of this Agreement shall not be deemed to be a termination of the Officer's
employment by the Company.

     (b) The Officer's employment may be terminated during the Term of this
Agreement by the Company or the Officer in the manner specified in this
Agreement. Any such termination of employment shall result in a termination of
this Agreement on the Effective Date of Termination (as defined in Section 14);
provided that, notwithstanding anything to the contrary in the foregoing, any
right of the Officer to any payments or benefits as a result of a termination of
the Officer's employment or to enforce such rights (in each case as provided in
this Agreement) shall survive the termination of this Agreement.

     3.  Offices.  (a)(i) During the Term and until the Effective Time, the
Officer shall serve as Chairman of the Board and Chief Executive Officer of the
Company, and (ii) during the Term and until the Bank Combination is effected,
the Officer shall serve as Chairman of the Board and Chief Executive Officer of
the Bank.

     (b)(i) During the portion of the Term that commences at the Effective Time
and until the Officer becomes Chairman of the Board and Chief Executive Officer
of the Company in accordance with Section 3(c) below (the "Initial Post-Merger
Period"), the Officer shall serve as President and Chief Operating Officer of
the Surviving Corporation, and (ii) during the portion of the Term that
commences on the date the Bank Combination is effected and until the Officer
becomes Chairman of the Board and Chief Executive Officer of the Bank in
accordance with Section 3(c) below, the Officer shall serve as
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President and Chief Operating Officer of the Surviving Bank. Upon and following
the respective effective times of the Holding Company Combination and the Bank
Combination, all references in this Agreement to the "Company" and the "Bank"
shall be deemed to refer to the Surviving Corporation and the Surviving Bank,
respectively.

     (c) The Officer shall become Chairman of the Board and Chief Executive
Officer of each of the Company and the Bank in accordance with the procedures
specified in the Merger Agreement, with service in such positions to commence on
December 31, 2002 (or on such earlier date after the Effective Time on which
Lawrence J. Toal (the "Present CEO") shall cease to be the Chairman of the Board
and Chief Executive Officer of the Company and the Bank, at which time the
provisions of the first sentence of paragraph (3)(b) shall cease to apply),
unless a Special Majority (as defined in the Merger Agreement) of the Board of
Directors shall decide to the contrary. The portion of the Term beginning with
the Officer becoming Chairman of the Board and Chief Executive Officer of each
of the Company and the Bank in accordance with the provisions of this Section
3(c) is referred to hereafter as the "Remaining Post-Merger Period" (the Initial
Post-Merger Period and the Remaining Post-Merger Period are together referred to
hereafter as the "Post-Merger Period").

     (d) At all times during the Term, the Officer shall serve as a director of
each of the Company (subject to election by the stockholders of the Company) and
the Bank and a member of the Executive Committee of the Board of Directors of
each of the Company and the Bank.

     (e) In addition, during the Term the Officer shall serve, for the period
for which he may from time to time be elected, as an officer or director of any
Affiliate of the Company.

     4.  Duties.  The Officer shall perform such duties as reasonably and
customarily pertain to the offices set forth in Section 3 and such other duties
as are set forth in the Bylaws of the Company and the Bank or as may be agreed
to from time to time by the Officer. During the Term (except for periods of
illness and vacation), substantially all of the Officer's business time,
attention, skill and efforts shall be devoted to the performance of the
Officer's duties under this Agreement. Notwithstanding the foregoing, the
Officer may (a) continue to serve on the boards of directors of, and hold any
other offices or positions in, companies or organizations previously approved by
the Board of Directors of the Company and (b) with the approval of the Board of
Directors of the Company, from time to time serve on the board of directors of,
and hold any other offices or positions in, companies or organizations engaged
in activities that present no conflict of interest with the Company or the Bank
and that will not materially and adversely affect the performance of his
obligations under this Agreement.

     5.  Compensation; Certain Benefits; Reimbursement.  (a) The annual salary
of the Officer during the Term for all services performed for the Company and
the Bank shall be (i) until the Effective Time, the Officer's annual salary as
of the date hereof; (ii) during the Initial Post-Merger Period, the greater of
(x) $750,000 and (y) during any period for which the salary of the Present CEO
exceeds $937,500, 80% of such Present CEO's salary as then in effect and (iii)
during the Remaining Post-Merger Period, $1,000,000. The Board of Directors of
the Company (or a duly authorized committee of the Board) may increase the
Officer's annual salary from time to time following the Effective Time, and
prior to the Effective Time may provide the Officer with a normal increase in
annual salary, and may continue all existing bonus, incentive and employee
benefit arrangements, including, without limitation, the making of normal stock
option and restricted stock plan grants, on a basis consistent with past
practice. In no event shall the Officer's annual salary be decreased below his
annual salary specified in the first sentence of this Section 5(a) plus all
subsequent increases in his annual salary. As used in this Agreement, "annual
salary" shall mean, at any time, the annual rate of salary then payable to the
Officer pursuant to this Section 5(a) (before deduction of any amounts deferred
under any deferred compensation plan of the Company or the Bank, any voluntary
contributions to a 401(k) plan of the Company or the Bank, or any other
deductions from income) and shall be exclusive of bonuses, incentive
compensation or other compensation or benefits paid to or accrued for the
Officer other than pursuant to this Section 5(a). Amounts payable to the Officer
under this Section 5(a) shall, subject to the provisions of Section 5(e), be
payable in installments (pro rata with respect to the period during a year to
which it relates) in accordance with the prevailing general payroll practice of
the Company as it may exist from time to time.

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     (b) During the Post-Merger Period the Company shall (i) at the Company's
expense, provide the Officer with the exclusive use of a Company-owned or
Company-leased automobile (at any time not to be more than three years old) and,
if the principal executive offices of the Company where the Officer is required
to provide the services hereunder are located in New York, to employ for the use
of the Officer a driver for such automobile, (ii) reimburse the Officer for the
annual (or less frequent) membership fees for two country, social, business,
luncheon or fitness clubs and (iii) reimburse the Officer for tax planning and
financial consulting services to be provided by Clarfeld & Company, P.C. (or
other provider agreed to by the Company and the Officer) in an amount not to
exceed $12,000 per annum.

     (c) The Officer shall not have or acquire by virtue of this Agreement any
rights to participate in, or receive benefits with respect to, any compensation
or benefit plan or program of the Company or the Bank, except (i) that during
the Post-Merger Period and while employed by the Company, the Officer shall
(subject to the approval of the Compensation Committee or other appropriate
committee of the Board of Directors) participate in the Company's Senior Officer
Incentive Plan, as in effect from time to time, with a target bonus (the "Target
Bonus") of at least 100% of the Officer's then effective annual salary (or such
higher target bonus amount as the Board of Directors of the Company may
establish from time to time), (ii) during the Initial Post-Merger Period and
while employed by the Company, the Officer shall (at the discretion of the
Compensation Committee and the Board of Directors or other appropriate committee
of the Board of Directors) receive annual stock incentive awards at the same
time as and equal to 80% of the base annual stock incentive award of the Present
CEO for such year, and during the Remaining Post-Merger Period and while
employed by the Company, the Officer shall receive annual stock incentive awards
(at the discretion of the Compensation Committee and the Board of Directors or
other appropriate committee of the Board of Directors) on a basis commensurate
with the awards for which the Present CEO was eligible during the Initial
Post-Merger Period; (iii) that while employed by the Company, the Officer may
participate in plans or programs of the Company and the Bank to the extent
provided in such plans and programs and on the same basis as if the Officer's
employment were not subject to the terms and conditions of this Agreement;
provided that, during the Initial Post-Merger Period, the Officer shall, subject
to the terms thereof, be eligible to participate in all plans and programs in
which the Present CEO is eligible to participate and shall be considered for any
awards that may be made thereunder at the same time as the Present CEO, or (iv)
as otherwise specifically provided in this Agreement, including without
limitation Section 7 hereof. For purposes of this Section 5(c), it is the
intention of the parties that the Officer's bonus opportunity and all other
grant opportunities under this Agreement shall at all times during the Initial
Post-Merger Period be: (i) at least 80% (in dollar value) of the Present CEO's
bonus and other grant opportunities; (ii) awarded on the same terms and
conditions as awards to the Present CEO regarding exercise price, pre- and
post-termination exercise rights, vesting and term, and (iii) to the extent the
Officer's opportunities are based on corporate-wide performance goals, subject
to the same corporate-wide performance goals as apply to the opportunities
provided to the Present CEO.

     (d) The Officer is authorized to incur reasonable expenses for promoting
the businesses of the Company and its Affiliates, including expenses for travel,
entertainment and similar items. The Company shall pay, or reimburse the Officer
for, all such expenses upon presentation by the Officer from time to time of an
itemized account (in reasonable detail) of such expenditures.

     (e) Notwithstanding anything to the contrary in the foregoing provisions,
following the Effective Time the payment (but not the grant or award) of any
amounts that would otherwise be payable to the Officer but which would be in
excess of the amount which the Company or the Bank could deduct for federal
income tax purposes if then paid on account of the operation of Section 162(m)
of the Internal Revenue Code of 1986, as amended (the "Code"), shall be deferred
to the extent such deferral is required pursuant to a policy adopted by the
Compensation Committee of the Company or the Bank and, to the extent so
deferred, shall be payable pursuant to the relevant terms of the Company's
Voluntary Deferred Compensation Plan; provided, however, that, if a Change in
Control (as defined in Section 12(a)) has occurred, deferral of amounts payable
hereunder to the Officer on or after the date of such Change in Control will
only be required if and to the extent such policy in effect immediately prior to
the Change in

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Control (without taking into consideration any changes therein made in
contemplation of the occurrence of the Change in Control) requires or would have
required such deferral.

     (f) The Company and the Bank may from time to time enter into arrangements
for the sharing of costs and provision of benefits to the Officer hereunder;
provided, that each of the Company and the Bank shall remain jointly and
severally liable for fulfillment of all obligations hereunder; provided,
further, that any compensation, benefits, reimbursements or other payments made
to the Officer, whether paid by the Company or the Bank (or any other Affiliate
of the Company) shall be deemed made and received in satisfaction of the
Company's and the Bank's obligations hereunder, regardless of whether an
obligation is herein stated to be an obligation of the Company only or of the
Bank only; and provided further, that where any notice is required or permitted,
to be given or action taken by the Company or the Bank, such condition shall be
deemed fulfilled if such notice is given or action taken by either of the
Company or the Bank.

     (g) Immediately following the Effective Time, subject to the discretion and
approval of the Compensation Committee, the Board of Directors or other
appropriate Committee of the Board of Directors, the Company shall grant to the
Officer options to purchase 120,000 shares of the Company's common stock at the
market price thereof on such date; provided, that such options shall vest in
accordance with the following schedule: (i) one-third on the date on which the
Officer becomes Chairman of the Board and Chief Executive Officer of the
Company; (ii) one-third on the first anniversary of the date described in clause
(i) (provided the Officer continues to hold such offices on such anniversary
date); and (iii) one-third on December 31, 2004 (provided the Officer continues
to hold such offices on such anniversary date). Such options shall be granted
subject to the terms and conditions (including accelerated vesting) of the
Company's stock incentive plan under which they are issued, and such other terms
as are set by the granting committee in accordance with such Plan.

     (h) Immediately following the Effective Time, subject to the discretion and
approval of the Compensation Committee, the Board of Directors or other
appropriate Committee of the Board of Directors, the Company shall offer to sell
to the Officer 100,000 shares of common stock of the Company subject to vesting
restrictions ("Restricted Stock") at a price equal to the par value of such
shares, with the grant of such shares to vest, and the restrictions on such
stock (if so purchased) to lapse in accordance with the following schedule:

             (i) one-third on the first anniversary of the date of grant
        (provided the Officer continues to be employed hereunder on such date);
        (ii) one-third on the second anniversary of the date of grant (provided
        the Officer continues to be employed hereunder on such date); and (iii)
        one-third on the third anniversary of the date of grant (provided the
        Officer continues to be employed hereunder on such date). The Restricted
        Stock shall be granted subject to the terms and conditions (including
        accelerated vesting) of the Company's stock incentive plan under which
        it is issued, and such other terms as are set by the granting committee
        in accordance with such plan.

     6.  Disability.  (a) The Company may terminate the Officer's employment
under this Agreement for "permanent disability" if (i) the Officer shall become
physically or mentally disabled or incapacitated to the extent that the Officer
has been absent from the Officer's duties with the Company on account of such
disabilities or incapacitation, as determined in a manner consistent with the
policy which applies generally to employees of the Company, on a full-time basis
for a period of six consecutive months, and (ii) within 30 days after written
notice of proposed termination for permanent disability is given by the Company
to the Officer, the Officer shall not have returned to full-time performance of
the Officer's duties.

     (b) In the event of termination for "permanent disability" following the
Effective Time, the Company shall provide the Officer with a benefit equal to
(i) his annual salary (as in effect immediately prior to the occurrence of such
disability) for a period commencing on the Effective Date of Termination and
ending on the day immediately prior to the first anniversary thereof and (ii)
75% of his annual salary (as in effect immediately prior to the occurrence of
such disability) from the date of the first anniversary of the Effective Date of
Termination and continuing through the duration of his disability (but in no
event beyond the Officer's attainment of age 65). Notwithstanding the first
sentence of this Section 6(b), any

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such payment shall terminate upon the earliest to occur of (A) the date the
Officer returns to full-time employment with the Company, (B) the date of the
Officer's full time employment by another employer (including full-time service
as a sole proprietor or owner of an unincorporated business), or (C) the date of
the Officer's death. In the event of termination for "permanent disability," the
Company also shall continue to provide until the Officer's death or, if earlier,
the first to occur of (aa) the date the Officer returns to full-time employment
with the Company, (bb) the date of the Officer's full-time employment by another
employer, or (cc) the date of the Officer's attainment of age 65, all life,
medical and dental insurance coverage as is maintained by the Company for
full-time employees, provided that the Officer shall continue to pay all amounts
in respect of such coverage that other employees receiving the same level of
coverage are required to pay. In the event of termination for "permanent
disability" following the Effective Time, the Company shall also provide the
Officer with the benefits set forth in Section 12(d)(ii) hereof (notwithstanding
that no Change in Control shall have occurred).

     (c) There shall be no reduction in the compensation payable to the Officer
or the Officer's other rights under this Agreement during any period when the
Officer is incapable of performing some or all of the Officer's duties by reason
of temporary or partial disability.

     (d) The obligations of the Company to provide the benefits described in
Section 6(b) may be satisfied, in whole or in part, by payments under disability
insurance policies covering the Officer and obtained and maintained in force
(with respect to the benefit described in the first sentence of Section 6(b)
solely at the Company's expense) by the Company. In connection therewith, the
Company may require the Officer to elect the maximum disability insurance
coverage available under the Bank's or the Company's group disability policy,
provided that the Company shall pay on the Officer's behalf all amounts required
to be paid by the Officer as a result of such election. The Officer shall
cooperate with the Company in all reasonable ways to obtain any such disability
or key person insurance coverage.

     7.  Supplemental Executive Retirement Benefits.  (a) During the Post-Merger
Period, the Officer shall participate in the Supplemental Executive Retirement
Plan of the Company (the "SERP") and shall have a "Pension Goal" under such plan
of not less than 50%. The Company acknowledges that in light of the Officer's
years of service with the Company, he will following the Effective Time be fully
vested in the Surviving Corporation's SERP. For purposes of calculating benefits
payable to the Officer under the SERP, any benefit plans, programs or
arrangements of the Company or any predecessor or Affiliate of the Company that
are in effect prior to the Effective Time shall be treated under the SERP in the
same manner as plans of the Surviving Corporation, but no amount of gross up tax
payments made pursuant to Section 12(g) hereof or otherwise shall be considered
"Compensation" thereunder.

     (b) Notwithstanding anything in paragraph (a) of this Section 7 to the
contrary, if the Officer's employment hereunder is terminated by the Company for
any reason (other than a termination by the Company for "cause"), or the Officer
terminates his employment hereunder at any time after a Material Change has
occurred (determined without regard to whether or not a Change in Control has
occurred), at any time during the Term following the Effective Time, then the
Company shall pay to the Officer, for each calendar year or portion thereof
during the Officer's remaining life following the later of the Effective Date of
Termination or the date the Officer attains age 55, an amount equal to the
difference, if any, between (i) $741,000 (prorated for any applicable periods of
less than one year) less (ii) the sum of (A) all benefits payable to the Officer
under the SERP with respect to such year or period, presuming an effective
election to commence SERP benefits at the same time as benefits under this
paragraph (b) had been made (whether or not such SERP benefits are actually
being paid on such date), plus (B) the amount of any benefits which the Officer
is entitled to receive for such year or period under any defined benefit plan
qualified under Section 401(a) of the Code sponsored by the Company, any
Affiliate (as defined in Section 12(a)) or any predecessor or successor to any
of them (the "Retirement Plans") plus (C) the amount of any benefits which the
Officer is entitled to receive for such year or period under any defined benefit
excess benefit or benefit restoration plan of the Company, any Affiliate or any
predecessor or successor to any of them, plus (D) the amount of any benefits
which the Officer is entitled to receive for such year or period under any other
plan, agreement or arrangement maintained by the Company, any Affiliate or any
predecessor or successor to any of them that determines benefit amounts with
relation to
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one or more Retirement Plans, plus (E) the amount of any benefits which the
Officer is then entitled to receive for such year (or, if the amount specified
in clause (i) is to be prorated for a specified period, for the same period)
under Section 6 of this Agreement. In determining the amount so payable, any
benefits described in clause (ii) of the preceding sentence (other than
subclause (E) thereof) that are not payable in the form of a single life annuity
commencing at the same time as benefits hereunder shall, solely for purposes of
the preceding sentence, be converted, on an actuarial equivalent basis, to a
single life annuity form of payment commencing on the same date as the benefits
pursuant to this paragraph (b) with actuarial equivalence to be determined based
on the factors used to determine actuarial equivalence under the SERP. The
amount so determined to be payable pursuant to this paragraph (b) shall be paid
on the same basis as payments under the SERP (including actuarial reductions
with respect to alternative forms of benefit thereunder, and the SERP's
provisions regarding preretirement survivor benefits), and the Officer shall
have the same election rights with respect thereto, regardless of whether or not
any amounts are then being paid under the SERP.

     8.  Death.  In the event of the Officer's death during the Term, this
Agreement and all of the Company's obligations under this Agreement shall
terminate (except as otherwise provided in this Section 8, Section 12(f) or with
respect to the obligations of the Company under Section 7). In the event of the
Officer's death during the Term, the Company or the Bank shall, during the
remainder of the life of the Officer's surviving spouse, continue to provide
such spouse the same level of medical and dental insurance as is maintained from
time to time by the Company or the Bank for spouses of full-time employees (or,
as appropriate, retirees) of the Company or the Bank or, in lieu of providing
any such coverage, the Company or the Bank may pay such spouse the cash
equivalent of the cost of such coverage), provided that such surviving spouse
shall continue to pay any amounts in respect of such coverage that is otherwise
required to be paid by employees (or, as appropriate, retirees) for such
coverage and provided, further, that any such medical coverage may be modified
so that Medicare (or other governmental) coverage is primary, with coverage
provided by the Company or the Bank supplementary, to the extent permitted by
law. In the event of the Officer's death during the Term, the Company shall
provide the Officer's beneficiaries with the benefits set forth in Section
12(d)(ii) hereof (notwithstanding that no Change in Control shall have
occurred).

     9.  Termination by the Company.  (a)(i) The Company may terminate the
Officer's employment under this Agreement at any time by giving the Officer
written notice of such termination, provided that, except where termination is
for "cause" (as defined in Section 9(b)), such notice shall be provided at least
30 days prior to the Effective Date of Termination. In the event of a
termination by the Company of the Officer's employment, other than a termination
for "cause" (as defined in Section 9(b)), then except as otherwise provided in
this Section 9 and in Sections 2(b), 7 and 12 hereof, all of the Company's
obligations under this Agreement shall terminate, except that the Officer shall
remain entitled to any compensation or benefits earned prior to the Effective
Date of Termination and shall not be precluded from receiving a bonus as
provided in Section 5(c) hereof as a result of his termination of employment
prior to the payment date for such bonus and except that the Company shall
(subject to the provisions of Section 9(c)): (A) pay to the Officer, as a
severance payment for services previously rendered to the Company and the Bank,
a lump sum equal to the sum of (1) the Officer's annual salary (as defined in
Section 5(a)) at the Effective Date of Termination plus (2) the amount of the
target bonus which the officer is eligible to earn for the year in which the
Effective Date of Termination occurs and (B) provide the Officer with the
benefits set forth in Section 12(d)(ii) hereof (notwithstanding that no Change
in Control shall have occurred) and (C) maintain, until the later to occur of
(1) the 18-month anniversary of the Effective Date of Termination and (2) the
end of the Term, all life, medical and dental insurance coverage as is
maintained by the Company or the Bank for full-time employees (or, in lieu of
providing any such coverage, the Company or the Bank may pay the Officer the
cash equivalent of the cost of such coverage), provided that the Officer shall
continue to pay all amounts in respect of such coverage that other employees
receiving the same level of coverage are required to pay. If the Effective Date
of Termination by the Company of the Officer's employment occurs at any time
following a Change in Control, the provisions of Section 12 shall apply in lieu
of the provisions of the immediately preceding sentence of this Section 9(a).
The lump sum payment referred to in section 9(a)(i)(A) shall be made to
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the Officer as soon as practicable after the Effective Date of Termination, but
in no event later than 90 days thereafter.

     (ii) If the Merger Agreement is terminated and the Merger (as defined
therein) abandoned, then this Agreement shall be void ab initio, neither party
shall have any further rights or obligations hereunder, and, all prior
agreements between the Officer and the Company and/or the Bank shall remain and
continue in full force and effect in accordance with their terms, as if this
Agreement had not been adopted.

     (b) The Officer shall have no right to receive compensation or other
benefits under this Agreement for any period after the Effective Date of
Termination if the Officer's employment is terminated for "cause." As used in
this Agreement, "termination for cause" shall mean a termination for "cause" by
either the Company or the Bank and "cause" shall mean (i) willful and continued
failure by the Officer to materially perform his duties under this Agreement
after at least one warning in writing from the Company's Board of Directors
identifying specifically any such material failure and offering a reasonable
opportunity to cure such failure (provided, that failure to achieve performance
goals shall in no event be grounds for termination for "cause" hereunder); (ii)
the willful engaging by the Officer in material misconduct which causes material
injury to the Company or the Bank as specified in a written notice to the
Officer from the Board of Directors of the Company; (iii) material breach of
fiduciary duty involving personal profit; or (iv) conviction of a crime (other
than a traffic violation), habitual drunkenness, drug abuse, or excessive
absenteeism other than for illness, after a warning (with respect to drunkenness
or absenteeism only) in writing from the Board of Directors of the Company to
refrain from such behavior. No act or failure to act on the part of the Officer
shall be considered willful unless done, or omitted to be done, by the Officer
not in good faith and without reasonable belief that the action or omission was
in the best interest of the Company. Any termination of the Officer for "cause"
shall be based upon a finding of a Special Majority of the Board of Directors,
with notice thereof given to the Officer in accordance with Section 9(d).

     (c) Notwithstanding any other provision of this Section 9 or of Section 12,
if at the Effective Date of Termination any statute, regulation, order,
agreement, or regulatory interpretation thereof that is valid and binding upon
the Company or the Bank (excluding Sections 280G and 4999 of the Code and
regulations promulgated thereunder) (a "Regulatory Restriction") shall restrict,
prohibit or limit the amount of any payment or the provision of any benefit that
the Company or the Bank would otherwise be liable for under this Section 9 or
under Section 12, then the amount that the Company or the Bank shall pay to the
Officer hereunder shall not exceed the maximum amount permissible under such
Regulatory Restriction; provided that, if such Regulatory Restriction shall
subsequently be rescinded, superseded, amended or otherwise determined not to
restrict, limit or prohibit payment by the Company or the Bank of amounts
otherwise due the Officer hereunder, then the Company or the Bank shall promptly
thereafter pay to such Officer any amounts (or the value of any benefit)
previously withheld from such Officer as a result of such Regulatory
Restriction, and provided further that, if any Regulatory Restriction restricts,
prohibits or limits one of the Company or the Bank to a lesser extent than it
restricts, prohibits or limits the other of the two, then the entity least
restricted shall be obligated hereunder to perform any of the obligations of the
other hereunder to the fullest extent permitted by the Regulatory Restriction.

     (d) If subsequent to the Effective Time, the Officer's employment is
proposed to be terminated by the Company (whether or not for "cause" (as defined
in Section 9(b)), the Company shall deliver to the Officer a Notice of
Termination (as defined in Section 14) accompanied by a copy of a resolution
duly adopted by the affirmative vote of not less than a Special Majority of the
entire Board of Directors of the Company at a meeting called and held for that
purpose (after reasonable notice to the Officer and an opportunity for him,
together with counsel, to be heard before the Board of Directors), and if such
termination is for cause it shall include a finding that in the good faith
opinion of a Special Majority of the Board of Directors the Officer's conduct
constituted cause for termination and specifying the particulars thereof in
reasonable detail.

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     10.  Voluntary Termination by the Officer.  (a) The Officer shall have the
right to terminate the Officer's employment under this Agreement at any time
following the Effective Time, whether for Material Change or any other reason,
upon at least 60 but not more than 90 days' prior written notice to the Company
(an "Officer's Termination Notice"). If this Agreement is terminated pursuant to
the immediately preceding sentence, then except as otherwise provided in
Sections 2(b), 7, 10(b) and 12 hereof, all of the Company's obligations under
this Agreement shall terminate, except that the Officer shall remain entitled to
any compensation or benefits earned prior to the Effective Date of Termination.

     (b) If the Officer shall terminate his employment pursuant to Section 10(a)
at any time when a Material Change (determined without regard to whether a
Change in Control has occurred) has occurred, then in addition to the benefits
provided in Section 10(a), the Officer shall also be entitled to the benefits
provided in Sections 7 and 9(a)(i) hereof; provided that, if such termination
occurs after a Change in Control has occurred, then the Officer shall be
entitled to the benefits of Section 12 in lieu of the provisions of Section
9(a)(i). For purposes of this Section 10, the term "Material Change" shall have
the same meaning as set forth in Section 12(c)(ii) hereof, except that in
determining whether a Material Change has occurred, (i) the fact that no Change
in Control shall have occurred shall be disregarded, (ii) the failure to provide
compensation or benefits required to be provided under this Agreement shall be
treated as a material breach of this Agreement, and (iii) whether there has been
a Material Change in the Officer's functions, duties or responsibilities, as
provided in clause (C) of such Section, shall be made by reference to the
functions, duties and responsibilities required to be provided under Section 4
hereof.

     11.  Additional Termination and Suspension Provisions.  There are hereby
included by reference any provisions that are required by applicable law or
regulation binding on the Company or the Bank to be included in an employment
agreement entered into by the Company or the Bank. If any such provision is a
Regulatory Restriction that restricts, prohibits or limits one of the Company or
the Bank to a lesser extent than it restricts, prohibits or limits the other of
the two, then the entity least restricted shall be obligated hereunder to
perform any of the obligations of the other hereunder to the fullest extent
permitted by the Regulatory Restriction.

     12.  Change in Control.  The provisions of this Section 12 shall only be
applicable during the Post-Merger Period; provided, that neither the Holding
Company Combination nor the Bank Combination (nor any other event or transaction
contemplated by or reasonably necessary to effectuate the purposes of the Merger
Agreement or between or among the Company, the Holding Company and their
respective Affiliates) shall be deemed to constitute a Change in Control for any
purpose of this Agreement. (a) As used in this Agreement, a "Change in Control"
shall be deemed to have occurred if the event set forth in any one of the
following paragraphs shall have occurred:

          (I) any Person is or becomes the Beneficial Owner, directly or
     indirectly, of securities of the Company (not including in the securities
     beneficially owned by such Person any securities acquired directly from the
     Company or its Affiliates) representing 35% or more of the combined voting
     power of the Company's then outstanding securities; or

          (II) the following individuals cease for any reason to constitute a
     majority of the number of directors then serving as directors of the
     Company: individuals who, immediately following the Effective Time,
     constitute the Board of Directors of the Company and any new director
     (other than a director whose initial assumption of office is in connection
     with the settlement of an actual or threatened election contest, including
     but not limited to a consent solicitation, relating to the election of
     directors of the Company) whose appointment or election by the Board of
     Directors of the Company or nomination for election by the Company's
     stockholders was approved or recommended by a vote of at least two-thirds
     ( 2/3) of the directors then still in office who either were directors
     immediately following the Effective Time or whose appointment, election or
     nomination for election was previously so approved or recommended; or

          (III) there is consummated a merger or consolidation of the Company or
     any direct or indirect subsidiary of the Company with any other corporation
     or entity, other than (i) a merger or consolidation which would result in
     the voting securities of the Company outstanding immediately
                                        8
<PAGE>   9

     prior to such merger or consolidation continuing to represent (either by
     remaining outstanding or by being converted into voting securities of the
     surviving entity or any Parent thereof), in combination with the ownership
     of any trustee or other fiduciary holding securities under an employee
     benefit plan of the Company or any subsidiary of the Company, at least 65%
     of the combined voting power of the securities of the Company, such
     surviving entity or any Parent thereof outstanding immediately after such
     merger or consolidation or (ii) a merger or consolidation effected solely
     to implement a recapitalization of the Company or the Bank (or similar
     transaction) in which no Person is or becomes the Beneficial Owner,
     directly or indirectly, of securities of the Company or the Bank (not
     including in the securities beneficially owned by such Person any
     securities acquired directly from the Company or its Affiliates)
     representing 35% or more of the combined voting power of the Company's or
     the Bank's then outstanding securities; or

          (IV) the stockholders of the Company or the Bank approve a plan of
     complete liquidation or dissolution of the Company or the Bank,
     respectively, or there is consummated a sale or disposition by the Company
     or any of its subsidiaries of any assets which individually or as part of a
     series of related transactions constitute all or substantially all of the
     Company's consolidated assets (provided that, for these purposes, a sale of
     all or substantially all of the voting securities of the Bank or a Parent
     of the Bank shall be deemed to constitute a sale of substantially all of
     the Company's consolidated assets), other than any such sale or disposition
     to an entity at least 65% of the combined voting power of the voting
     securities of which are owned by stockholders of the Company in
     substantially the same proportions as their ownership of the voting
     securities of the Company immediately prior to such sale or disposition; or

          (V) the execution of a binding agreement that if consummated would
     result in a Change in Control of a type specified in clause (I) or (III) of
     this Section 12(a) (an "Acquisition Agreement") or of a binding agreement
     for the sale or disposition of assets that, if consummated, would result in
     a Change in Control of a type specified in clause (IV) of this Section
     12(a) (an "Asset Sale Agreement") or the adoption by the Board of Directors
     of the Company or the Bank of a plan of complete liquidation or dissolution
     of the Company or the Bank that, if consummated, would result in a Change
     in Control of a type specified in clause (IV) of this Section 12(a) (a
     "Plan of Liquidation"), provided however, that a Change in Control of the
     type specified in this clause (V) shall not be deemed to exist or have
     occurred as a result of the execution of such Acquisition Agreement or
     Asset Sale Agreement, or the adoption of such a Plan of Liquidation, from
     and after the Abandonment Date if the Effective Date of Termination of the
     Officer's employment has not occurred on or prior to the Abandonment Date.
     As used in this Section, the term "Abandonment Date" shall mean the date on
     which (A) an Acquisition Agreement, Asset Sale Agreement or Plan of
     Liquidation is terminated (pursuant to its terms or otherwise) without
     having been consummated, (B) the parties to an Acquisition Agreement or
     Asset Sale Agreement abandon the transactions contemplated thereby, (C) the
     Bank or the Company abandons a Plan of Liquidation or (D) a court or
     regulatory body having competent jurisdiction enjoins or issues a cease and
     desist or stop order with respect to or otherwise prevents the consummation
     of, or a regulatory body notifies the Bank or the Company that it will not
     approve, an Acquisition Agreement, Asset Sale Agreement or Plan of
     Liquidation or the transactions contemplated thereby and such injunction,
     order or notice has become final and not subject to appeal.

     As used in connection with the foregoing definition of Change in Control,
"Affiliate" shall have the meaning set forth in Rule 12b-2 promulgated under
Section 12 of the Exchange Act; "Beneficial Owner" shall have the meaning set
forth in Rule 13d-3 under the Exchange Act; "Exchange Act" shall mean the
Securities Exchange Act of 1934, as amended from time to time; "Parent" shall
mean any entity that becomes the Beneficial Owner of at least 80% of the voting
power of the outstanding voting securities of the Company or of an entity that
survives any merger or consolidation of the Company or any direct or indirect
subsidiary of the Company; and "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under

                                        9
<PAGE>   10

an employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation or entity owned, directly or indirectly, by
the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

     (b) If the Company shall relocate its principal executive offices after a
Change in Control, and if the Officer is required, as a result, to change the
Officer's principal residence, the Company shall (i) promptly pay (or reimburse
the Officer for) all reasonable moving expenses incurred by the Officer as a
result of such change in the Officer's principal residence, and (ii) indemnify
the Officer against, and reimburse the Officer for, any loss incurred as the
result of the sale of the Officer's principal residence (which loss shall be
computed for the purpose of this Agreement as the difference between the actual
sales price (net of closing costs and brokerage fees) of such residence and the
fair market value of such residence (computed as of the time the Company
relocates its principal executive offices) as determined by an independent real
estate appraiser designated and paid by the Company and acceptable to the
Officer), provided that such sale of the Officer's principal residence occurs
within six months after the Company relocates its principal executive offices.

     (c)(i) If a Change in Control shall occur, the Officer shall be entitled to
the compensation and benefits provided in paragraphs (d), (e), (f) and (g) of
this Section 12 upon the subsequent termination by the Company of the Officer's
employment at any time during the remaining Term in effect at the time of the
Change in Control, other than a termination for cause (as defined in Section
9(b)), provided that the rights to any such compensation and benefits shall be
subject to the limitations and provisions set forth in Section 9(c).

     (ii) If a Change in Control shall occur, and thereafter the Board of
Directors of the Company or the Bank or, if the Company or the Bank is not the
surviving entity in the transaction giving rise to such Change in Control, the
Board of Directors of the ultimate parent entity surviving such Change in
Control, either (A) fails to elect or re-elect or appoint or reappoint the
Officer to the offices or positions specified in Section 3 with the Company and
the Bank or, if the Company or the Bank is not the surviving ultimate parent
entity in the transaction giving rise to such Change in Control, with the
ultimate parent entity surviving such Change in Control, (B) materially breaches
this Agreement, (C) makes a material change in the Officer's functions, duties
or responsibilities, which change would cause the Officer's position with the
Company or the Bank or, if the Company or the Bank is not the surviving entity
in the transaction giving rise to such Change in Control, with the entity
surviving such Change in Control to become one of lesser responsibility,
importance or scope from that in effect immediately prior to the time of the
Change in Control, (D) requires that the Officer's services be rendered
primarily at a location or locations outside of the New York metropolitan area
or (E) during the Initial Post-Merger Period, adopts a resolution approved by at
least a simple majority of the Board of Directors providing that the Officer
shall not become Chairman of the Board and Chief Executive Officer of the
Company and the Bank (an event specified in clause (A), (B), (C), (D) or (E) is
hereafter referred to as a "Material Change"), the Officer shall be entitled to
the compensation and benefits provided in paragraphs (d), (e), (f) and (g) of
this Section 12 (subject to the limitations and provisions set forth in Section
9(c)) upon the subsequent termination of the Officer's employment, at any time
during the remaining Term in effect at the time of the Change in Control, by the
Officer. Any good faith determination by the Officer that a Material Change has
taken place shall be presumed to be correct and therefore shall be controlling
for all purposes of this Agreement, unless, within 30 days after receipt of the
Officer's Termination Notice a Special Majority of the Board of Directors of the
Company shall determine that no such Material Change has occurred, in which
event no such presumption shall be made, and the determination of whether a
Material Change has occurred shall be resolved in accordance with Section 22
hereof.

     (iii) If the Officer's employment is terminated by the Officer during the
remaining Term in effect at the time of the Change in Control and no Material
Change shall have occurred, then the provisions of Section 10 shall apply in
lieu of the provisions of paragraphs (d), (e) and (f) of this Section 12.

                                       10
<PAGE>   11

     (iv) Only for purposes of determining whether there has been a termination
of the Officer's employment during the remaining Term in effect at the time of a
Change in Control (as specified in paragraphs (c)(i) or (c)(ii) of this Section
12) so as to entitle the Officer to the compensation and benefits provided in
paragraphs (d), (e), (f) and (g) of this Section 12, a termination of the
Officer's employment following a Change in Control shall be deemed to have
occurred on such date during the remaining Term that (A) Notice of Termination
(as defined in Section 14(b)) is given by the Company to the Officer (regardless
of the Effective Date of Termination specified therein), or (B) an Officer's
Termination Notice (as defined in Section 10) is given by the Officer to the
Company (regardless of the Effective Date of Termination specified therein).
Notwithstanding the immediately preceding sentence, the Officer shall continue
to be employed by the Company and the Bank pursuant to this Agreement until the
Effective Date of Termination specified in the Notice of Termination or
Officer's Termination Notice, as the case may be.

     (d)(i) Upon the occurrence of a Change in Control followed by any
termination of the Officer's employment pursuant to Section 12(c)(i) or (c)(ii),
the Bank shall pay to the Officer, as a severance payment for services
previously rendered to the Bank, a lump sum equal to three times the Officer's
Deemed Annual Compensation, as in effect immediately prior to the Effective Date
of Termination (without regard to any decrease in the Officer's Deemed Annual
Compensation made after the Change in Control). As used in this Section
12(d)(i), the term "Deemed Annual Compensation" shall mean, at any time, an
amount equal to the sum of (A) the Officer's annual salary (as defined in
Section 5(a)) at such time, plus (B) the higher of (y) the amount of the target
bonus which the Officer is eligible to earn for the year which includes the day
immediately prior to the Change in Control, or (z) the amount of the average
bonus or other cash incentive earned by the Officer with respect to the two most
recently completed fiscal years.

     (ii) Upon the occurrence of a Change in Control followed by any termination
of the Officer's employment pursuant to Section 12(c)(i) or (c)(ii), to the
extent not otherwise limited pursuant to Section 9(c), (x) each option granted
after the date hereof under a stock incentive or stock option plan of the
Company and held by the Officer shall (to the extent permitted by the plan under
which such option was granted), notwithstanding anything to the contrary in the
grant letter related to such option and regardless of the actual Effective Date
of Termination, immediately vest and remain exercisable for the term specified
in such grant letter as if there had been no termination of the Officer's
employment and the Officer remained in the employment of the Company for the
entire term of such option and (y) each share of Restricted Stock granted
pursuant to Section 5(h) shall (to the extent permitted by the plan under which
such Restricted Stock was granted), notwithstanding anything to the contrary in
the grant letter related to such Restricted Stock and regardless of the actual
Effective Date of Termination, vest and the restrictions thereon shall lapse at
such time as they would have otherwise vested, and the restrictions thereon
would have otherwise lapsed, as if there had been no termination of the
Officer's employment and the Officer remained in the employment of the Company
through the period required for the vesting of and lapsing of the restrictions
on such stock.

     (e) Any payment pursuant to Section 12(d)(i) shall be made to the Officer
within 30 days after the Effective Date of Termination.

     (f) Upon the occurrence of a Change in Control followed by any termination
of the Officer's employment pursuant to Section 12(c)(i) or (c)(ii), to the
extent not otherwise limited pursuant to Section 9(c), the Company or the Bank
shall, for the remainder of the Officer's life, and for the remainder of the
life of the Officer's spouse (to whom the Officer was married as of the
Effective Date of Termination), continue to provide to the Officer and such
spouse the same level of disability, medical and dental insurance coverage as is
maintained from time to time by the Company or the Bank for full-time employees
and their spouses, provided that (x) the Officer (and, after the Officer's
death, the Officer's surviving spouse) shall continue to pay all amounts in
respect of such coverage that the other employees, retirees, or surviving
spouses, as applicable, receiving the same levels of coverage are required to
pay, (y) any medical coverage may be modified so that Medicare (or other
governmental coverage) is primary, with coverage provided by the Company or the
Bank supplementary, to the extent permitted by law, and
                                       11
<PAGE>   12

(z) in lieu of providing any benefit hereunder, the Company or the Bank may pay
the Officer (and after the Officer's death, the Officer's surviving spouse) the
cash equivalent of the cost of such coverage.

     (g)(i) If, on account of events described in Sections 12(c)(i) or 12(c)(ii)
following a Change in Control, any payment or other benefit paid or to be paid
or any property transferred or to be transferred with respect to one or more
calendar years by or on behalf of the Company (or any affiliate of the Company)
to the Officer pursuant to this Agreement or pursuant to the terms of any other
plan, arrangement or agreement of the Company (or any of its subsidiaries)
(collectively, a "Severance Payment") shall constitute an "excess parachute
payment" within the meaning of Section 280G(b) of the Code subject to the tax
imposed by Section 4999 of the Code (the "Excise Tax"), then the Company shall
pay to the Officer an additional amount (the "Gross Up Payment") such that the
amount paid or transferred to the Officer, after deduction of any Excise Tax on
the Severance Payment, and any federal, state and local income tax, employment
tax and Excise Tax upon the Gross Up Payment, shall be equal to the Severance
Payment. In addition, if, absent a Change in Control or in other circumstances
following a Change in Control, notwithstanding the reductions mandated by
Section 9(c), the benefits described in Section 7 and any other benefits payable
in connection with the Holding Company Combination (the "Section 7 Benefits")
shall constitute "excess parachute payments" within the meaning of Section
280G(b) of the Code subject to the Excise Tax, then the Company shall pay to the
Officer one or more Gross Up Payments such that the amount of such Gross Up
Payments, when combined with such Section 7 Benefits, after deduction of any
Excise Tax on the Section 7 Benefits, and any federal, state and local income
tax, employment tax and Excise Tax upon the Gross Up Payments, shall be equal to
such Section 7 Benefits.

     (ii) For purposes of determining under Section 12(g)(i) whether any portion
of a Severance Payment or Section 7 Benefit will be subject to the Excise Tax
and the amount of such Excise Tax, (A) the Severance Payment or Section 7
Benefit and payments provided for in Section 12(g)(i) shall be treated as
"parachute payments" within the meaning of Section 280G(b)(2) of the Code, and
all "excess parachute payments" within the meaning of Section 280(G)(b)(1) of
the Code shall be treated as subject to the Excise Tax, unless and to the extent
that tax counsel selected by the Company's independent auditors and acceptable
to the Officer is of the opinion that the Severance Payment or Section 7 Benefit
(in whole or in part) does not constitute a "parachute payment" or such "excess
parachute payment" (in whole or in part) represents reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(4) of the Code
in excess of the allocable base amount within the meaning of Section 280G(b)(3)
of the Code, or the Severance Payment or Section 7 Benefit is otherwise not
subject to the Excise Tax, (B) the amount of the Severance Payment or Section 7
Benefit that is treated as subject to the Excise Tax shall be equal to the
lesser of (X) the total amount of the Severance Payment or Section 7 Benefit, as
applicable, and (Y) the amount of "excess parachute payments" within the meaning
of Section 280G(b)(1) of the Code (after applying clause (A) above), (C) any
Gross Up Payment pursuant to Section 12(g)(i) shall be treated as subject to the
Excise Tax in its entirety and (D) the value of any non-cash benefits or any
deferred payment or benefit shall be determined by the Company's independent
auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the
Code.

     (iii) If in circumstances described in Section 12(g)(i), by reason of the
filing by the Officer of an amended tax return, an audit by the Internal Revenue
Service or other taxing authority, or a final determination by a court of
competent jurisdiction, it is determined that "excess parachute payments"
exceeding those previously reported in his tax returns were received by the
Officer and as a result an additional Excise Tax (the "Additional Excise Tax")
shall become due, the Company shall pay the Officer an additional amount (the
"Subsequent Gross Up Payment") such that the amount paid or transferred to the
Officer, after deduction of (A) any Additional Excise Tax and (B) on an after
tax basis, any interest, additions and penalties with respect to the Additional
Excise Tax and (C) any federal, state and local income tax, employment tax and
Excise Tax upon the Subsequent Gross Up Payment and (D) the payments provided
for in Section 12(g)(i), shall be equal to the Severance Payment or Section 7
Benefits, as appropriate.

                                       12
<PAGE>   13

     (iv) Any Gross Up Payment required hereunder shall be made at least ten
days prior to the due date (without regard to extensions) of the Officers's
federal income tax return for the year with respect to which the "excess
parachute payment" is deemed made under the Code. Any Subsequent Gross Up
Payment required hereunder shall be made to the Officer within 30 days after the
amount thereof is determined. Notwithstanding the two immediately preceding
sentences, the Company shall pay any federal, state and local tax or taxes and
employment taxes required to be withheld from the Officer's wages (within the
meaning of Section 3121 and 3402 of the Code) with respect to the "excess
parachute payment" and any such tax or taxes paid by the Company to the Internal
Revenue Service or state or local taxing authority shall constitute payment to
the Officer.

     (v) If the Excise Tax is finally determined (whether by the filing of an
amended tax return by the Officer, by audit of the Internal Revenue Service or
other taxing authority, or by a final determination of a court of competent
jurisdiction) to be less than the amount paid to or on behalf of the Officer
under the provisions of Sections 12(g)(i)-(iv) and the overpayment is refunded
to the Officer, the Officer shall repay to the Company, promptly following the
receipt of the refund, the portion of the Gross Up Payment (and/or Subsequent
Gross Up Payment) attributable to such reduction of the Excise Tax (plus the
portion attributable to federal, state and local income tax and employment taxes
imposed on the portion being repaid by the Officer but only to the extent that
the repayment may result in a tax benefit to the Officer under Section 1341 of
the Code and similar provisions of applicable state and local law).

     (vi) The provisions of this Section 12(g) shall inure to the benefit of the
Officer during the Term of this Agreement regardless of whether or not his
employment is terminated, and if the Officer's employment is terminated, the
rights and obligations of the Officer and the Company under this Section 12(g)
shall survive the termination of this Agreement.

     13.  Post-Termination Obligations of the Officer.  (a) In addition to any
related requirements that may apply pursuant to the terms of the Consulting
Agreement, upon any termination of the Officer's employment during the Term of
this Agreement or upon termination of the Officer's employment after the
expiration of the Term of this Agreement or upon retirement, the Officer agrees
(i) not to make any disclosure in violation of Section 13(b), (ii) to return to
the Company and the Bank all material documents relating to the business of the
Company and the Bank that are in the Officer's possession or under the Officer's
control, and (iii) except if the termination or retirement occurs after a Change
in Control, not to solicit (directly or indirectly), for one year following the
Effective Date of Termination (or date of termination after the expiration of
the Term) or retirement, the employment of any person who is an employee of the
Company or the Bank on the Effective Date of Termination (or date of termination
after the expiration of the Term) or retirement or who, within six months prior
to the Effective Date of Termination (or date of termination after the
expiration of the Term) or retirement, was an employee of the Company, unless
the Officer receives written permission from the Company to engage in the
activities proscribed by this Section 13(a) or by Section 13(b) or to be
relieved of any obligation under Section 13(a)(ii).

     (b) The Officer recognizes and acknowledges that the confidential business
activities and plans for business activities of the Company and its Affiliates,
as they may exist from time to time, are valuable, special and unique assets of
the Company. The Officer shall not, during or at any time after the Officer's
employment, disclose any knowledge of the past, present or planned business
activities of the Company or its Affiliates that are of a confidential nature
(collectively, the "Company's Confidential Activities") to any person, firm,
corporation, company, thrift institution or other entity for any reason or
purposes whatsoever. Notwithstanding anything in this Section 13(b) to the
contrary, the Officer (i) may disclose any knowledge of banking, financial
and/or economic principles, concepts or ideas that are not derived from the
Company's Confidential Activities, and (ii) shall not be precluded from
disclosures respecting the Company's Confidential Activities that are (A) made
pursuant to compulsory legal process or when required by an appropriate
governmental agency; (B) public knowledge or become public without the Officer's
breach of this Section 13(b); (C) already known to the party to whom the Officer
makes such disclosures; or (D) approved by the Company for disclosure.

                                       13
<PAGE>   14

     (c) The parties, recognizing that irreparable injury will result to the
Company, its business and property in the event of the Officer's breach or
threatened breach of Section 13(a) or (b), agree that in the event of such
breach or threatened breach by the Officer, the Company will be entitled, in
addition to any other remedies and damages that may be available, to seek and
obtain an injunction to restrain the violation of Section 13(a) or (b) by the
Officer.

     14.  Notices.  (a) All notices under this Agreement shall be in writing and
shall be delivered personally, sent by registered or certified mail, return
receipt requested or sent by recognized next-day courier service, (a) to the
Company, at Hudson United Bancorp, 1000 MacArthur Boulevard, Mahwah, New Jersey
07430 (attention: General Counsel), (b) to the Bank at Hudson United Bank, 1000
MacArthur Boulevard, Mahwah, New Jersey 07430 (attention: General Counsel) and
(C) to the Officer, at his address as it appears on the books and records of the
Company or to such other address as either party may hereafter designate in
writing in the manner provided in this Section 14. All notices under this
Agreement shall be deemed given (i) upon receipt if delivered personally, (ii)
on the third business day after deposit in a facility of the U.S. Postal Service
with postage prepaid, if delivered by registered or certified mail, or (iii) on
the first business day following the date of dispatch if delivered by a
recognized next-day courier service.

     (b) Any purported termination of the Officer's employment with the Company
and the Bank pursuant to Sections 6 or 9 shall be communicated to the Officer by
means of a written notice (a "Notice of Termination"). The Notice of Termination
shall (i) indicate a specific termination provision relied upon, (ii) set forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Officer's employment under the provision so indicated, and
(iii) specify the Effective Date of Termination; provided, however, that no such
Notice of Termination shall specify an Effective Date of Termination that is
prior to the date on which any such Notice of Termination is given.

     (c) As used in this Agreement, the term "Effective Date of Termination"
shall mean (i) the date on which the Officer's employment with the Company and
the Bank is to terminate, as specified in a Notice of Termination given by the
Company or the Bank, or (ii) the date on which the Officer's employment with the
Company and the Bank is to terminate, as specified in an Officer's Termination
Notice given by the Officer.

     15.  No Duty to Mitigate.  Except as otherwise expressly provided herein,
if the Officer shall continue to receive compensation or benefits or severance
pay pursuant to this Agreement after its termination, (a) the Officer shall have
no duty to mitigate such payments by seeking or obtaining other employment or
otherwise, and (b) in the event the Officer does obtain other employment, such
payments from the Company shall not be reduced by compensation received from
such other employment.

     16.  Complete Understanding.  This Agreement constitutes the complete
understanding between the parties with respect to its subject matter and merges
and supersedes all prior oral and written agreements and understandings and all
contemporaneous oral agreements and understandings, including, without
limitation, that certain agreement (the "Prior Agreement") dated January 1, 1997
between the Officer and the Company (and the Officer by entering into this
Agreement specifically disclaims any right to receive any payments or any other
benefits under that agreement) and any other employment agreement heretofore
executed by the Officer and the Company or any of its predecessors or
Affiliates. Notwithstanding the foregoing, if any Regulatory Restriction shall
prevent this Agreement from going into effect, shall void this Agreement in its
entirety, or shall prohibit the Company and the Bank from carrying out all of
the provisions of Sections 7, 9, 10 or 12 hereof, then the Officer shall be
entitled to the benefits of Sections 9 and 10 of the Prior Agreement to the
extent that such benefits exceed the benefits, after application of any
Regulatory Restriction, available under this Agreement. This Agreement may not
be amended, terminated or rescinded except in a writing signed by all the
parties hereto; provided, that no amendment or other modification to this
Agreement made prior to the Effective Time shall be valid or binding unless
agreed to by all parties hereto and also consented to by Bancorp; and provided
further that any amendment or modification to this Agreement agreed to on behalf
of the Company shall be approved by a Special Majority of the Board of
Directors. Notwithstanding the foregoing or any other provision in

                                       14
<PAGE>   15

this Agreement to the contrary, any provision in this Agreement requiring or
permitting any action, determination or decision to be taken or made by a
Special Majority of the Board of Directors shall terminate on December 31, 2002,
after which any such action, determination or decision may be taken or made by a
simple majority of the Board of Directors.

     17.  No Waiver.  The failure of any party at any time to require
performance by any other party of a provision of this Agreement or to resort to
a remedy at law or in equity or otherwise shall in no way affect the right of
such party to require full performance or to resort to such remedy at any time
thereafter nor shall a waiver by any party of the breach of any provision of
this Agreement be taken or held to be a waiver of any subsequent breach of such
provision unless expressly so stated in writing. No waiver of any of the
provisions of this Agreement shall be effective unless in writing and signed by
the party to be charged.

     18.  Governing Law.  This Agreement shall be governed by the laws of the
State of New York, without regard to conflict of laws principles applied in the
State of New York.

     19.  Headings.  The headings to the Sections of this Agreement are for
convenience of reference only and shall not be given any effect in the
construction or interpretation of this Agreement.

     20.  Severability.  If any provision of this Agreement is held by a court
or other authority having competent jurisdiction to be invalid, void or
otherwise unenforceable, in whole or in part, by reason of any applicable law,
statute or regulation or any interpretation thereof, then (a) the remainder of
the provisions of this Agreement shall remain in full force and effect and in no
way affected, impaired or invalidated and (b) the provision so held to be
invalid, void or otherwise unenforceable shall be deemed modified in amount,
duration, scope or otherwise to the minimum extent necessary so that such
provision shall not be invalid, void or otherwise unenforceable by reason of
such law, statute, regulation or interpretation and such provision, as so
modified, shall remain in full force and effect.

     21.  Payment of Legal Fees.  If any legal action or proceeding is commenced
to enforce or interpret the provisions of this Agreement, or any plan, agreement
or arrangement referenced in this Agreement, or to recover damages for breach
thereof, including without limitation any proceeding commenced under Section 22
hereof, all reasonable legal fees, disbursements and court or arbitration costs
paid or incurred by the Officer arising out of or resulting from such action or
proceeding shall be paid or reimbursed to the Officer by the Company, provided
that the action or proceeding is not dismissed or summarily decided against the
Officer.

     22.  Dispute Resolution.  Any dispute or controversy arising under, in
connection with or relating to this Agreement or the transactions contemplated
hereby shall be subject to compulsory mediation in New York City in accordance
with the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association then in effect. In the event that such
compulsory mediation does not result in a resolution of such dispute or
controversy which is acceptable to both the Company and the Officer, such
dispute or controversy shall be resolved exclusively by arbitration in New York
City in accordance with the National Rules for the Resolution of Employment
Disputes of the American Arbitration Association then in effect. The parties
hereto agree that the decision of such arbitration shall be final and binding
upon the parties and upon confirmation of the decision resulting from such
arbitration, judgment may be entered on the arbitrators' award in any court
having jurisdiction.

     23.  Taxes.  Any payments due to the Officer pursuant to this Agreement
shall be reduced by all applicable federal, state, city or other taxes required
by law to be withheld with respect to such payments.

                                       15
<PAGE>   16

     24.  Limitation on Payments.  Any payments made to the Officer pursuant to
this Agreement, or otherwise, are subject to and conditioned upon their
compliance with, or the non-applicability thereto of, 12 USC sec. 1828(k) and
any regulations promulgated thereunder.

<TABLE>
<S>                                             <C>
                                                HUDSON UNITED BANCORP

Dated: 9/15/99                                  By: /s/ CHARLES F.X. POGGI
                                                -----------------------------------------------------

                                                Name: Charles F.X. Poggi

                                                Title:  Chairman; Compensation Committee

                                                HUDSON UNITED BANK

Dated: 9/15/99                                  By: /s/ CHARLES F.X. POGGI
                                                -----------------------------------------------------

                                                Name: Charles F.X. Poggi

                                                Title:  Chairman; Compensation Committee

Dated: 9/15/99                                  /s/ KENNETH T. NEILSON
                                                -----------------------------------------------------
                                                Kenneth T. Neilson
</TABLE>

                                       16<PAGE>   1
                                                                    Exhibit 10.1

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES ACT AND MAY NOT BE TRANSFERRED WITHOUT
REGISTRATION UNDER SUCH ACTS OR AN OPINION OF COUNSEL, SATISFACTORY TO THE
COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED.

REAL MEDIA, INC.

STOCK OPTION AGREEMENT

Date of Grant:  ________________

            This Stock Option Agreement (the "Agreement") is made and entered
into as of the date of grant specified above (the "Date of Grant"), by and
between REAL MEDIA, INC., a Delaware corporation (the "Company"), and
_______________________________________ ("Grantee").

            WHEREAS, Grantee is employed by the Company as National Account
Manager, and as compensation for the services provided by the Grantee as
_______________________ of the Company, the Company desires to issue to the
Grantee an option to purchase the Company's Common Stock, par value $.001 per
share (the "Stock").

            NOW THEREFORE, in consideration of the foregoing, the parties
hereto, intending to be legally bound hereby, agree as follows:

1.    Grant of Option.

            Subject to the terms and conditions hereinafter set forth, the
Company hereby grants to the Grantee an option to purchase up to three thousand
(3,000) shares of Stock at a price of two dollars and seventy cents ($2.70) per
share (the "Exercise Price"). Such option is hereinafter referred to as the
"Option", and the shares of Stock purchasable upon exercise of the Option are
hereinafter referred to as the "Option Shares".

2.    Period for Vesting and Exercise of Option.

            Subject to such further limitations as are provided herein,

      (a)   One eighth of the total Options granted under this Agreement shall
become exercisable ("vest") on August 15, 1999, and thereafter one eighth of the
total Options granted under this Agreement shall vest every 90 days after the
then most recent date on which one eighth of the Options have vested until all
such Options vest.

      (b)   Grantee may exercise the Options to purchase Option Shares at the
Exercise Price per Option Share until the Expiration Date (hereafter defined).

<PAGE>   2

      (c)   The Expiration Date shall be the earlier of (i) the tenth
anniversary of the date of Grant or (ii) ninety (90) days following the date the
Grantee's employment with the company ceases for any reason (including without
limitation, by death, disability, resignation or removal, with or without cause)
at which time this Agreement shall terminate.

      (d)   Notwithstanding the foregoing, in the event either (i) shares of the
Company's voting stock entitled to cast more than fifty percent (50%) of the
votes entitled to be cast by all voting stock or (ii) more than seventy-five
percent (75%) in value of the assets of the Company, are sold in one transaction
or in a series of related transactions, all of which occur within a period of
not more than ninety (90) days; then the Option shall immediately vest and
become exercisable with respect to all Option Shares not previously purchased in
the same manner and to the same extent as though the date of commencement of the
exercise period above prescribed had then arrived.

3.    Manner of Exercise of Option.

      (a)   The Grantee (or his heirs, executors or administrators), may
exercise the option with respect to all or any part of the number of Option
Shares exercisable hereunder by giving the Secretary of the Company written
notice of exercise. The notice of exercise shall specify the number of Option
Shares as to which the Option is to be exercised and the date of exercise
thereof, which date shall be at least five (5) days after the giving of such
notice unless an earlier time shall have been mutually agreed upon.

      (b)   Notice of exercise of the Option shall be accompanied by a written
statement, signed by the Grantee (or his heirs, executors or administrators),
and in form satisfactory to the Company, that the shares are being purchased for
the Grantee's own account, for investment and not with a view to distribution,
and that the Grantee has no present intention of dividing his interest in the
shares with others or of reselling or otherwise disposing of the shares. The
certificates for Option Shares issued without registration with the Securities
and Exchange Commission shall bear a legend substantially in the following form:

            "The Securities represented by this certificate have not been
            registered under the Securities Act of 1933 (the "Act") or
            applicable state securities laws (the "State Acts"), and shall not
            be sold, pledged, hypothecated, donated, or otherwise transferred
            (whether or not for consideration) by the holder except upon the
            issuance to the Corporation of a favorable opinion of its counsel
            and/or the submission to the Corporation of such other evidence as
            may by satisfactory to counsel for the Corporation, to the effect
            that any such transfer shall not be in violation of the Act or the
            State Acts."

Such statement and legend shall not be required in the event the Option Shares
are registered with the Securities and Exchange Commission.

                                      - 2 -

<PAGE>   3

      (c)   Full payment in U.S. dollars of the Exercise Price for the Option
Shares purchased shall be made in cash or by certified or bank cashier's check,
on or before the exercise date specified in the notice of exercise.

      (d)   on the exercise date specified in the Grantee's notice or as soon
thereafter as is practicable, the Company shall cause to be delivered to the
Grantee a certificate or certificates registered in the name of the Grantee for
the Option Shares then being purchased, upon full payment for such Option
Shares. in addition to the legend provided for in Section 3(b) hereof, if
required, said certificates shall be subject to the same restrictions and shall
bear the same legends as other shares of the Stock would be subject to and bear
if issued on the same date.

      (e)   if the Grantee fails to pay for any of the Option Shares specified
in such notice on or before the date specified in such notice or fails to accept
delivery thereof, the Grantee's right to purchase such Option Shares may be
terminated by the Company. The date specified in the Grantee's notice as the
date of exercise shall be deemed the date of exercise of the option, provided
that payment in full for the Option Shares to be purchased upon such exercise
shall have been received by such date.

4.    Adjustments of and Changes in Stock.

            If at any time the Company shall:

            (i)   take a record of the holders of its Stock for the purpose of
entitling them to receive a dividend payable in, or other distribution of,
additional shares of its Stock;

            (ii)  subdivide its outstanding shares of its Stock into a larger
number of shares of Stock; or

            (iii) combine its outstanding shares of Stock into a smaller number
of shares of Stock;

then the number of Option Shares immediately after the occurrence of any such
event shall be adjusted to equal the number of shares of Stock which a record
holder of the number of Option Shares immediately prior to the occurrence of
such event would own or be entitled to receive after the happening of such
event. The Exercise Price per Option Share immediately after the occurrence of
any such event shall be adjusted by multiplying the Exercise Price by a
fraction, the numerator of which shall be the number of Option Shares
immediately prior to such occurrence and the denominator of which shall be the
number of Option Shares as adjusted pursuant to the preceding sentence.

5.    No Rights as Stockholder Prior to Exercise.

            The Grantee shall have none of the rights and privileges of a
stockholder of the Company with respect to any of the Option Shares prior to the
date of issuance of such Option Shares.

                                      - 3 -

<PAGE>   4

6.    Non-Transferability of Option, Option Shares; Entire Agreement.

      (a)   During the Grantee's lifetime, the Option hereunder shall be
exercisable only by the Grantee or any guardian or legal representative of the
Grantee, and the Option shall not be transferable except, in case of the death
of the Grantee, by will or the laws of descent and distribution, nor shall the
Option be subject to attachment, execution or other similar process. In the
event of (i) any attempt by the Grantee to alienate, assign, pledge, hypothecate
or otherwise dispose of the Option, except as provided for herein, or (ii) the
levy of any attachment, execution or similar process upon the rights or interest
hereby conferred, which shall not be released or discharged within thirty (30)
days after entry, the Company may terminate the option by notice to the Grantee
and it shall thereupon become null and void.

      (b)   Grantee may not offer, sell, transfer, pledge or mortgage Option
Shares to any person without the prior written consent of the Company except
pursuant to this Section 6(b).

            (i)   If the Grantee desires to sell any Option Shares, then prior
thereto, the Grantee shall first obtain a bona fide written offer from an
independent third party for the purchase for cash of such Option Shares (the
Option Shares being subject to the bona fide offer being hereinafter referred to
as the "Offered Option Shares"). The Grantee shall then deliver to the Company
written notice stating the terms of the bona fide offer, the name and address of
the person making the offer and a copy of the offer (hereinafter referred to as
the "Notice").

            (ii)  Simultaneously with delivery of the Notice, the Grantee shall
offer in writing to sell to the Company the Offered Option Shares, on terms at a
price per share at least as favorable to the Company as the price and terms
stipulated in the Notice (the "Offer Price"). The Company may (and, at the
written direction of the Company's Board of Directors, purchase all (but not
less than all) of the Offered Option Shares by delivering written notice thereof
to the Grantee within 45 days after receipt by the Company of the Notice.

            (iii) If the Company does not exercise its option granted pursuant
to Section 6(b)(ii) hereof, the Grantee may sell all (but not less than all) of
the Offered Option Shares, but only to the person making, and in accordance with
the terms and conditions of, the bona fide offer accompanying the Notice, and
subject to the conditions that (i) such sale is consummated no later than 45
days following the expiration of the offer to the Company described in Section
6(b)(ii) hereof, and (ii) the purchaser agrees in writing to be bound by the
terms of this Agreement and the Stockholders Agreement dated August 31, 1996 by
and among the Company and the Company's stockholders as a stockholder by
executing counterparts to such agreements. if such sale has not been consummated
within such 45 day period, the offered Option Shares shall then become subject
to all the restrictions of this Agreement.

            (iv)  Should Grantee be deemed by the Company's Board of Directors
to have violated any of the restrictions set forth herein, the Company shall
have the right, but not the obligation, for a period of sixty (60) days
following such determination, to repurchase all of the Option Shares then owned
of record by Grantee at the Exercise Price.

                                     - 4 -

<PAGE>   5

      (c)   This Agreement sets forth the entire agreement and understanding
between the parties as to the subject matter hereof and supersedes all prior
discussions, agreements and understandings of any and every nature between them.

7.    Governing Law.

            The validity, construction, interpretation and effect of this
Agreement shall exclusively be governed by and determined in accordance with the
law of the state of Delaware, except to the extent pre-empted by federal law,
which shall to that extent govern.

            IN WITNESS WHEREOF, the parties having read the foregoing document
and having agreed to it, REAL MEDIA, INC. has caused its duly authorized
officers to execute and attest to this Agreement and to apply the corporate seal
hereto, and the Grantee has placed his signature hereon, effective as of the
Date of Grant.

ATTEST:                                      REAL MEDIA, INC.

                                             By:
-------------------------------                 --------------------------------
Its Secretary                                Its:
                                                 -------------------------------

                                             -----------------------------------
                                             Grantee

                                     - 5 -

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