CONSULTING AGREEMENT

This  Agreement  is made and entered  into as  of________  , 2003 by and between
PennFed Financial Services,  Inc. a business  corporation whose principal office
is  located  at  622  Eagle  Rock  Avenue,  West  Orange,  New  Jersey  ,  07052
(hereinafter the "Company') and ________ , residing at ________ (hereinafter the
"Consultant").

                                   WITNESSETH:

     Whereas, the consultant is a director of the Company; and

     Whereas,  after the Consultant ceases to be a director of the Company,  the
Company  desires to retain the services and  expertise  of the  Consultant  as a
consultant to the Company and the Penn Federal Savings Bank (the "Bank") for his
expertise regarding director matters,  and for matters related to the management
and operations of the Company; and

     Whereas,  the Consultant  desires to continue to provide the aforementioned
services to the Company  after he ceases to be a director  thereof  from time to
time, on an as requested basis;

     Now therefore,  in  consideration  of the premises and the mutual covenants
and conditions  hereinafter  set forth,  the Company and the  Consultant  hereby
agree as follows:

     Section 1. Effective Date; Term
                --------------------

     The effective  date of this  Agreement  is_____________  . The term of this
Agreement shall be ten years,  commencing on the date the Consultant  completely
ceases to  provide  services  as a director  of the  Company or the Bank for any
reason other than the death of the Consultant (the "Retirement Date") and ending
on the earlier of (a) the date ten years from the  Retirement  Date,  or (2) the
date the Consultant dies.

     Section 2. Consulting Services.
                -------------------

     The Consultant shall provide such expertise and services regarding director
matters,  matters  pertaining to the management and operation of the Company and
its affiliates, and matters pertaining to publicly traded companies generally as
the Company  shall  reasonably  request.  The  Consultant  shall at all times be
considered an independent contractor, responsible for establishing his own hours
and  schedule,  and not an  employee  or  director  of the Company or any of its
affiliates. The Consultant may hold other employment,  full or part time, during
the term of this Agreement,  and the Company agrees that any requested  services
shall take into account the Consultant's then current employment situation.

     Section 3. Compensation for Consulting Services.
                ------------------------------------

     In  consideration  of the terms and conditions of this Agreement,  for each
month that this  Agreement is in effect,  the Company shall pay the Consultant a
monthly amount, payable during his lifetime only, equal to one-twelfth of 70% of
the annual  director fees that the Consultant was receiving from the Company and
the Bank when he ceased providing  services as a director of the Company and the
Bank.  Such monthly  payments  shall be made during the term of this  Agreement,
regardless  of whether  Consultant  provided any services to the Company for any
particular month. Payments shall be made at the end of each month with a partial
payment being made for the last month of the Agreement, if the Consultant dies.




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     Section 4. General Release.
                ---------------

     The  Consultant,  for himself and his heirs,  executors  and  assigns,  has
released and forever  discharged and by these presents does, for himself and his
heirs,  executors and assigns  remise,  release,  acquit,  satisfy,  and forever
discharge  the Company,  the Bank and each of their  affiliates,  directors  and
officers, of and from all and all manner of action and actions, cause and causes
of action,  suits,  debts,  dues, sums of money,  accounts,  reckonings,  bonds,
bills, specialties, covenants, contracts,  controversies,  agreements, promises,
variances,  trespasses,  damages,  judgements,  executions,  claims and  demands
whatsoever in law or in equity,  which against the Company, the Bank and each of
their  affiliates,  directors and officers,  the Consultant ever had, now has or
which his successors,  heirs, executors or administrators,  hereafter can, shall
or may have upon or by reason of any matter, cause, or thing whatsoever,  except
as to rights specifically granted by this Agreement or by law.

     Section 5. Confidentiality.
                ---------------

     Unless he obtains the prior written consent of the Company,  the Consultant
shall keep  confidential and shall refrain from using for the benefit of himself
or any  person  or  entity  other  than the  Company  or any  entity  which is a
subsidiary of the Company or of which the Company is a subsidiary,  any material
document  or  information  obtained  from  the  Company  or from its  parent  or
subsidiaries,  in the course of his service  with any of them  concerning  their
properties,  operation  or business  (unless  such  document or  information  is
readily  ascertainable from public or published  information or trade sources or
has otherwise  been made  available to the public  through no fault of his own).
Nothing in this  section  shall  prevent  the  Consultant,  with or without  the
Company's consent,  from participating in or disclosing documents or information
in  connection  with any judicial or  administrative  investigation,  inquiry or
proceeding to the extent that such participation or disclosure is required under
applicable law.

     Section 6. Successors and Assigns.
                ----------------------

     This  agreement  will  inure  to the  benefit  of and be  binding  upon the
Consultant, his legal representatives and testate or intestate distributees, and
the Company and its respective  successors and assigns,  including any successor
by merger or consolidation  or a statutory  receiver or any other person or firm
or corporation to which all or  substantially  all of the assets and business of
the Company may be sold or otherwise transferred.

     Section 7. Notices.
                -------

     Any  communication  required or permitted to be given under this  Agreement
shall be in writing and shall be deemed to have been given at such time as it is
delivered  personally or five days after mailing if mailed,  postage  prepaid by
registered or certified mail, return receipt  requested  addressed to such party
at the address  listed  below or at such other  address as one such party may by
written notice specify to the other party:

If to the Consultant:






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If to the Company

     Chairman of the Board
     PennFed Financial Services, Inc.
     622 Eagle Rock Avenue
     West Orange, New Jersey   07052-2989

     Section 8. Entire Agreement
                ----------------

     This instrument  contains the entire  agreement of the parties  relating to
the subject  matter hereof and  supersedes,  in its entirety,  any and all prior
agreements,  understandings  or  representations  relating to the subject matter
hereof.  No modification of this agreement shall be valid unless made in writing
and signed by the parties hereto.

     Section 9. Governing Law.
                -------------

     Except to the extent  preempted by federal  law,  this  agreement  shall be
governed by the laws of the State of New Jersey  applicable to contracts entered
into and to be performed entirely within the State of New Jersey.

                                   CONSULTANT

                                   ---------------------------------

                                   PennFed Financial Services, Inc.

                                   By:
                                      -------------------------------
                                      Chairman of the Board