April 12, 2004

Mr. Charles Field
8 Westervelt Avenue
Tenafly, NJ 07670

Dear  Mr. Field:

Interchange Financial Services Corporation, a New Jersey Bank Holding Company
(the "Company"), considers the maintenance of a sound and vital executive team
to be essential to protecting and enhancing the best interests of the Company
and its stockholders. In this connection, the Company recognizes that the
possibility of a change in control presently exists and may exist in the future,
and that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of executives to
the detriment of the Company and its stockholders. Accordingly, the Board of
Directors of the Company (the "Board") has determined that appropriate steps
should be taken to reinforce and encourage the continued attention and
dedication of members of the Company's executive team.

This letter agreement sets forth the severance benefits which the Company agrees
will be provided to you in the event your employment with the Company is
terminated subsequent to a "change in control of the Company" (as defined in
Section 2 hereof) under the circumstances described below.

1.       Company's Right to Terminate
         During the term of this Agreement, the Company may terminate your
         employment at any time, with or without cause, subject to providing the
         benefits hereinafter specified in accordance with the terms hereof.


2.       Change in Control

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         No benefits shall be payable hereunder unless there shall have been a
         change in control of the Company, as set forth below, and your
         employment by the Company shall thereafter have been terminated in
         accordance with Section 3 below. For purposes of this Agreement, a
         "change in control of the Company" shall mean, unless the Board
         otherwise directs resolution approved by unanimous vote of the entire
         membership thereof adopted prior thereto, a change in control of a
         nature that would be required to be reported in response to Item 5(f)
         of Schedule 14A of Regulation 14A promulgated under the Securities
         Exchange Act of 1934, as amended ("Exchange Act"); provided that,
         without limitation, such a change in control shall be deemed to have
         occurred if (i) any "person" (as such term is used in Sections 13(d)
         and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
         defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
         of securities of the Company representing more than 25% control of the
         combined voting power of the Company's then outstanding voting
         securities; or (ii) during any period of two consecutive years,
         individuals who at the beginning of such period constitute the Board
         cease for any reason to constitute at least a majority thereof unless
         the election, or the nomination for election by the Company's
         stockholders, of each new director was approved by a vote of at least
         two-thirds of the directors then still in office who were directors at
         the beginning of the period.

3.       Termination Following Change in Control
         If any of the events  described in Section 2 hereof  constituting a
         change in control of the Company shall have occurred,  you
         shall be entitled to the benefits provided in Section 4 hereof upon
         your subsequent  termination,  so long as such termination
         occurs  within two (2) years after a change in control of the Company,
         unless such  termination  is (A) because of your death
         or Retirement, (B) by the Company for Cause or Disability or (c) by
         you other than for Good Reason.
         (i)      Disability; Retirement
                  (A)      Termination by the Company of your employment based
                           on "Disability" shall mean termination because of
                           your absence from your duties with the Company on a
                           full-time basis for 130 consecutive business days, as
                           a result of your incapacity due to physical or mental
                           illness, unless within thirty (30) days after Notice
                           of Termination (as hereinafter defined) is given
                           following such absence, you shall have returned to
                           the full time performance of your duties; or

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                  (B)      Termination by the Company or you of your employment
                           based on "Retirement" shall mean your voluntary
                           termination in accordance with the Company's
                           retirement policy, including early retirement,
                           generally applicable to its salaried employees.
         (ii)     Cause
                  Termination by the Company of your employment for Cause shall
                  mean your termination on account of:
                  (A)      Your willful commission of an act that causes or is
                           reasonably likely to cause substantial damage to the
                           Company;

                  (B)      Your commission of an act of fraud in the performance
                           of your duties on behalf of the Company;

                  (C)      Your conviction for commission of a felony or other
                           crime punishable by confinement for a period in
                           excess of one (1) year in connection with the
                           performance of your duties on behalf of the Company;
                           or

                  (D)      The order of a federal or state bank regulatory
                           agency or a court of competent jurisdiction requiring
                           the termination of your employment.

         (iii)    Good Reason
                  Termination by you of your employment for "Good Reason" shall
                  mean termination based on:
                  (A)      Subsequent to a change in control of the Company, and
                           without your express written consent, the assignment
                           to you of any duties inconsistent with your
                           positions, duties, responsibilities and status with
                           the Company immediately prior to a change in control,
                           or a change in your reporting responsibilities,
                           titles or offices as in effect immediately prior to a
                           change in control, or any removal of you from or any
                           failure to re-elect you to any of such positions,
                           except in connection with the termination of your
                           employment for Cause, Disability or Retirement or as
                           a result of your death or by you other than for Good
                           Reason;

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                  (B)      Subsequent to a change in control of the Company, a
                           reduction by the Company in your base salary as in
                           effect on the date hereof or as the same may be
                           increased from time to time;

                  (C)      Subsequent to a change in control of the Company, a
                           failure by the Company to continue any bonus plans in
                           which you are presently entitled to participate (the
                           "Bonus Plans") as the same may be modified from time
                           to time but substantially in the forms currently in
                           effect, or a failure by the Company to continue you
                           as a participant in the Bonus Plans on at least the
                           same basis as you presently participate in accordance
                           with the Bonus Plans;

                  (D)      Subsequent to a change in control of the Company and
                           without your express written consent, the Company's
                           requiring you to be based anywhere other than within
                           thirty (30) miles of your present office location,
                           except for required travel on the Company's business
                           to an extent substantially consistent with your
                           present business travel obligations;

                  (E)      Subsequent  to change in control  of the  Company,
                           the failure by the Company to continue in effect any
                           benefit or compensation plan,  stock ownership plan,
                           stock purchase plan, stock option plan, life
                           insurance plan,  health-and-accident plan or
                           disability plan in which you are participating at the
                           time of a change in control of the Company (or plans
                           providing you with substantially similar  benefits),
                           the taking of any action by the Company which would
                           adversely affect your  participation in or materially
                           reduce your benefits under any of such plans or
                           deprive  you of any  material  fringe  benefit
                           enjoyed by you at the time of the change in control,
                           or the failure by the  Company to provide you with
                           the number of paid  vacation  days to which you are
                           then entitled in accordance with the company's normal
                           vacation policy in effect on the date hereof;

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                  (F)      Subsequent to a change in control of the Company, the
                           failure by the Company to obtain the assumption of
                           the agreement to perform this Agreement by any
                           successor as contemplated in Section 6 hereof; or

                  (G)      Subsequent to a change in control of the Company, any
                           purported termination of your employment which is not
                           effected pursuant to a Notice of Termination
                           satisfying the requirements of paragraph (iv) below
                           (and, if applicable, paragraph (ii) above); and for
                           purposes of this Agreement, no such purported
                           termination shall be effective.

         (iv)     Notice of Termination
                  Any purported termination by the Company pursuant to paragraph
                  (i) or (ii) above or by you pursuant to subparagraph (B) of
                  paragraph (i) or paragraph (iii) above shall be communicated
                  by written Notice of Termination to the other party hereto.
                  For purposes of this Agreement, a "Notice of Termination"
                  shall mean a notice which shall indicate the specific
                  termination provision in this Agreement relied upon and shall
                  set forth in reasonable detail the facts and circumstances
                  claimed to provide a basis for termination of your employment
                  under the provision so indicated.

         (v)      Date of Termination
                  "Date of Termination" shall mean (A) if your employment is
                  terminated for Disability, thirty (30) days after Notice of
                  Termination is given (provided that you shall not have
                  returned to the performance of your duties on a full-time
                  basis during such thirty (30) day period), (B) if your
                  employment is terminated pursuant to paragraph (ii) above, the
                  date specified in the Notice of Termination, and (C) if your
                  employment is terminated for any other reason, the date on
                  which a Notice of Termination is given; provided that if
                  within thirty (30) days after any Notice of Termination is
                  given the party receiving such Notice of Termination notifies
                  the other party that a dispute exists concerning the
                  termination, the Date of Termination shall be the date on
                  which the dispute is finally determined, either by mutual
                  written agreement of the parties, by a binding and final
                  arbitration award or by a final judgment, order or decree of a
                  court of competent jurisdiction entered upon such


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                  arbitration award (the time of appeal therefrom having expired
                  and no appeal having been perfected).


4.       Certain Benefits Upon Termination
         If, after a change in control of the Company shall have occurred, as
         defined in Section 2 above, your employment by the Company shall be
         terminated (A) by the Company other than for Cause, Disability or
         Retirement or (B) by you for Good Reason, then you shall be entitled to
         the benefits provided below:
                  (i) The Company shall pay you your full base salary through
                  the Date of Termination at the rate in effect at the time
                  Notice of Termination is given plus credit for any vacation
                  earned but not taken and the amount, if any, of any bonus for
                  a past fiscal year and the portion of the current fiscal year
                  ending on the Date of Termination which has not yet been
                  awarded or paid to you under the Bonus Plans;

                  (ii) In lieu of any further salary payments to you for periods
                  subsequent to the Date of Termination, the Company shall pay
                  as severance pay to you on the fifth day following the Date of
                  Termination: (a) a lump sum amount equal to two (2) times your
                  annual base salary at the highest rate in effect during the
                  twelve (12) months immediately preceding the Date of
                  Termination; plus (b) a lump sum amount equal to the sum of
                  the bonuses paid to you for the two (2) year period beginning
                  on the date immediately preceding your Date of Termination.

                  (iii) The Company shall also pay to you all legal fees and
                  expenses incurred by you as a result of such termination
                  (including all such fees and expenses, if any, incurred in
                  contesting or disputing any such termination or in seeking to
                  obtain or enforce any right or benefit provided by this
                  Agreement);

                  (iv) The Company shall maintain in full force and effect, for
                  your continued benefit until the earlier of (A) two (2) years
                  after the Date of Termination or (B) your commencement of full
                  time employment with a new employer, all life insurance,
                  medical,


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                  health and accident, and disability plans, programs
                  or arrangements in which you were entitled to participate
                  immediately prior to the Date of Termination, provided that
                  your continued participation is possible under the general
                  terms and provisions of such plans and programs. In the event
                  that your participation in any such plan or program is barred,
                  the Company shall arrange to provide you with benefits
                  substantially similar to those which you are entitled to
                  receive under such plans and programs. In addition, the
                  Company shall pay you a lump sum amount of equivalent
                  actuarial value to the additional pension benefit you would
                  have earned under the Company's Pension Plan as in effect on
                  the date the change of control occurs, but disregarding any
                  Internal Revenue Code limitations pertaining to qualified
                  plans, if you were granted at the time of your termination of
                  employment two (2) additional years of Credited Service and
                  deemed 2 years older under the Plan. In determining the
                  equivalent actuarial value of the additional pension granted
                  under this Section 4, an interest rate of 5% and the mortality
                  table under the Company's Pension Plan shall be used to
                  determine the lump sum amount.

         You shall not be required to mitigate the amount of any payment
         provided for in this Section 4 by seeking other employment or
         otherwise, nor shall the amount of any payment provided for in this
         Section 4 be reduced by any compensation earned by you as the result of
         employment by another employer after the Date of Termination or
         otherwise.

5.       Certain Further Payments by the Corporation
         In the event that any amount or benefit paid or distributed to you
         pursuant to this Agreement, taken with any amounts or benefits
         otherwise paid or distributed to you by the Company or any affiliated
         company (collectively the "Covered Payments"), are or become subject to
         the tax (the "Excise Tax") imposed under Section 4999 of the Code or
         any similar tax that may hereafter be imposed, the Company shall pay to
         you at the time specified below an additional amount (the "Tax
         Reimbursement Payment") such that the net amount retained by you with
         respect to such Covered Payments, after deduction of any Excise Tax on
         the Covered Payments and any Federal, state and local income tax and
         Excise Tax on the Tax Reimbursement Payment provided for by this
         Section 5, but before deduction for any Federal, state or local income
         or employment tax withholding on such Covered Payments, shall be equal
         to the amount of the Covered Payments.


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         (i)      For purposes of determining whether any of the Covered
                  Payments will be subject to the Excise Tax and the amount of
                  such Excise Tax,
                  (A)      Such Covered Payments will be treated as  "parachute
                           payments"  within the meaning of Section 280G of the
                           Code,  and all "parachute  payments" in excess of the
                           "base amount"(as defined under Section 280G(b)(3) of
                           the Code)  shall be treated as subject to the Excise
                           Tax, unless, and except to the extent  that,  in the
                           opinion of the Company's independent certified public
                           accountants appointed prior to the date the Change of
                           Control occurs or tax counsel selected by such
                           accountants (the "Accountants"), such Covered
                           Payments (in whole or in part) either do not
                           constitute parachute payments or represent reasonable
                           compensation for services actually rendered  (within
                           the meaning of Section  280G(b)(4) of the Code) in
                           excess of the "base amount", or such parachute
                           payments are otherwise not subject to such Excise
                           Tax, and

                  (B)      The value of any non-cash benefits or any deferred
                           payment or benefit shall be determined by the
                           Accountants in accordance with the principles of
                           Section 280G of the Code.

         (ii)     For purposes of determining the amount of the Tax
                  Reimbursement Payment, you shall be deemed to pay:
                  (A)     Federal income taxes at the highest applicable
                          marginal rate of Federal income taxation for the
                          calendar year in which the Tax Reimbursement Payment
                          is to be made, and

                  (B)      Any applicable state and local income taxes at the
                           highest applicable marginal rate of taxation for the
                           calendar year in which the Tax Reimbursement Payment
                           is to be made, net of the maximum reduction in
                           Federal income taxes which could be obtained from the
                           deduction of such state or local taxes if paid in
                           such year.

         (iii)    In the event that the Excise Tax is subsequently determined to
                  be less than the amount taken into account hereunder in
                  calculating the Tax Reimbursement Payment made, you


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                  shall repay to the Company, at the time that the amount of
                  such reduction in the Excise Tax is finally determined, the
                  portion of such prior Tax Reimbursement Payment that would not
                  have been paid if such Excise Tax had been applied in
                  initially calculating such Tax Reimbursement Payment, plus
                  interest on the amount of such repayment at the rate provided
                  in Section 1274(b)(2)(B) of the Code.

                  In the event that the Excise Tax is later determined to exceed
                  the amount taken into account hereunder at the time the Tax
                  Reimbursement Payment is made (including, but not limited to,
                  by reason of any payment the existence or amount of which
                  cannot be determined at the time of the Tax Reimbursement
                  Payment), the Company shall make an additional Tax
                  Reimbursement Payment in respect of such excess (plus any
                  interest or penalty payment with respect to such excess) at
                  the time that the amount of such excess is finally determined.

         (iv)     The Tax  Reimbursement Payment (or portion  thereof) provided
                  for in this Section 5 shall be paid to you not later
                  than ten (10) business days following the payment of the
                  Covered Payments;  provided,  however, that if the amount of
                  such Tax  Reimbursement Payment (or portion  thereof)  cannot
                  be finally  determined  on or before the date on which
                  payment is due, the Company shall pay to you by such date an
                  amount  estimated in good faith by the Accountants to be
                  the minimum amount of such Tax Reimbursement  Payment and
                  shall pay the remainder of such Tax  Reimbursement  Payment
                  (together with interest at the rate provided in Section
                  1274(b)(2)(B) of the Code) as soon as the amount thereof can
                  be  determined,  but in no event later than 45 calendar days
                  after  payment of the related  Covered  Payment.  In the
                  event that the amount of the estimated Tax Reimbursement
                  Payment exceeds the amount subsequently  determined to have
                  been due, such excess shall  constitute a loan by the
                  Corporation  to you,  payable on the fifth  business day after
                  written demand by the Company for payment  (together with
                  interest at the rate provided in Section  1274(b)(2)(B)  of
                  the Code).

6.       Term of Agreement


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         This Agreement shall continue in effect so long as you are employed by
         the Company provided that, if a change of control of the Company, as
         defined in Section 2 hereof, shall have occurred during the term of
         this Agreement, this Agreement shall continue in effect for a period of
         twenty-four (24) months beyond the month in which such change in
         control occurred.

7.       Successor; Binding Agreement
         (i)      The Company will require any successor (whether direct or
                  indirect, by purchase, merger,  consolidation or otherwise)
                  to all or  substantially  all of the  business  and/or
                  assets of the Company,  by  agreement  in form and  substance
                  satisfactory  to you, to  expressly  assume and agree to
                  perform  this  Agreement  in the same manner and to the same
                  extent  that the  Company  would be  required to perform it if
                  no such  succession  had taken  place.  Failure of the
                  Company  to  obtain  such  agreement  prior to the
                  effectiveness  of any such  succession  shall be a breach of
                  this Agreement  and shall  entitle  you to  compensation
                  from the Company in the same amount and on the same terms as
                  you would be  entitled  hereunder  if you  terminated  your
                  employment  for Good  Reason,  except  that for  purposes of
                  implementing  the foregoing,  the date on which any such
                  succession  becomes  effective  shall be deemed the Date of
                  Termination.  As used in this Agreement,  "Company" shall mean
                  the Company as herein before defined and any successor
                  to its business and/or assets as aforesaid  which executes and
                  delivers the agreement  provided for in this Section 7
                  or which otherwise becomes bound by all the terms and
                  provisions of this Agreement by operation of law.

         (ii)     This Agreement shall inure to the benefit of and be
                  enforceable by your personal or legal representatives,
                  executors, administrators, successors, heirs, distributes,
                  devisees and legatees. If you should die while any amount
                  would still be payable to you hereunder if you had continued
                  to live, all such amounts, unless otherwise provided herein,
                  shall be paid in accordance with the terms of this Agreement
                  to your devisee, legatee or other designee or, if there be no
                  such designee, to your estate.

8.       Notice

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         For the purpose of this Agreement, notices and all other communications
         provided for in this Agreement shall be in writing and shall be deemed
         to have been duly given when delivered or mailed by certified or
         registered mail, return receipt requested, postage prepaid, addressed
         to the respective addresses set forth on the first page of this
         Agreement, provided that all notices to the Company shall be directed
         to the attention of the President of the Company with a copy to the
         Secretary of the Company, or to such other address as either party may
         have furnished to the other in writing in accordance herewith, except
         that notice of change of address shall be effective only upon receipt.

9.       Miscellaneous
         No provision of this Agreement may be modified, waived or
                  discharged unless such waiver, modification or discharge is
                  agreed to in writing signed by you and such officer as may be
                  specifically designated by the Board of Directors of the
                  Company. No waiver by either party hereto at any time of any
                  breach by the other party hereto of, or compliance with, any
                  condition or provision of this Agreement to be performed by
                  such other party shall be deemed a waiver of similar or
                  dissimilar provisions or conditions at the same or at any
                  prior or subsequent time. No agreements or representations,
                  oral or otherwise, expressed or implied, with respect to the
                  subject matter hereof have been made by either party which are
                  not expressly set forth in this Agreement; provided, however,
                  that this Agreement shall not supersede or in any way limit
                  the rights, duties or obligations you may have under any other
                  written agreement with the Company. The validity,
                  interpretation, construction and performance of this Agreement
                  shall be governed by the laws of the State of New Jersey.

10.      Validity
         The invalidity or unenforceability of any provision of this Agreement
         shall not affect the validity or enforceability of any other provision
         of this Agreement, which shall remain in full force and effect.

11.      Tax Withholding
         The Company may withhold from any amounts payable under this Agreement
         such federal, state or local taxes as shall be required to be withheld
         pursuant to any applicable law or regulation.

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

13.      Arbitration
         Any dispute or controversy arising under or in connection with this
         Agreement shall be settled exclusively by arbitration in accordance
         with the rules of the American Arbitration Association then in effect.
         Judgment may be entered on the arbitrator's award in any court having
         jurisdiction.

If this letter correctly sets forth our agreement on the subject matter hereof,
kindly sign and return to the Company the enclosed copy of this letter which
will then constitute our agreement on this subject.

                                   Sincerely,
                                   Interchange Financial Services Corp.
                                   By: /s/           Anthony D. Andora
                                       ----------------------------------------
                                            Name:  Anthony  D. Andora
                                            Title: Chairman of the Board

Agreed to this    21     day
              -----------
of April, 2004.


/s/  Charles T. Field
______________________
Charles T. Field


Attest by: /s/    Anthony S. Abbate
          __________________________
                 Anthony S. Abbate