<PAGE>

                                      AGREEMENT


    AGREEMENT, dated this 22nd day of April 1996, between Inter-Boro Savings
and Loan Association (the "Association"), a New Jersey chartered savings and
loan association and JOSEPH M. OCHMAN, SR. (the "Executive").


                                      WITNESSETH

    WHEREAS, the Executive is presently an officer of IBS Financial Corp. (the
"Corporation") and the Association (together, the "Employers");

    WHEREAS, the Employers desire to be ensured of the Executive's continued
active participation in the business of the Employers and currently have a joint
agreement with the Executive dated October 28, 1994;

    WHEREAS, in accordance with Office of Thrift Supervision ("OTS") Regulatory
Bulletin 27a, the Corporation and the Association desire to enter into separate
agreements with the Executive with respect to his employment by each of the
Employers; and

    WHEREAS, in order to induce the Executive to remain in the employ of the
Employers and in consideration of the Executive's agreeing to remain in the
employ of the Employers, the parties desire to specify the severance benefits
which shall be due the Executive by the Association in the event that his
employment with the Association is terminated under specified circumstances;

    NOW THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereby agree as follows:

    1.   DEFINITIONS.  The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:

    (a)  AVERAGE ANNUAL COMPENSATION.  The Executive's "Average Annual
Compensation" for purposes of this Agreement shall be deemed to mean the average
level of compensation paid to the Executive by the Employers or any subsidiary
thereof during the most recent five taxable years preceding the Date of
Termination, including Base Salary and bonuses under any employee benefit plans
of the Employers.

    (b)  BASE SALARY.  "Base Salary" shall have the meaning set forth in
Section 3(a) hereof.

    (c)  CAUSE. Termination of the Executive's employment for "Cause" shall
mean termination because of personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful

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                                       2

violation of any law, rule or regulation (other than traffic violations or
similar offenses) or final cease-and-desist order or material breach of any
provision of this Agreement.

    (d)  CHANGE IN CONTROL OF THE CORPORATION.  "Change in Control of the
Corporation" shall mean a change in control of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act"), or any successor thereto, whether or not the Corporation is registered
under the 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 Corporation representing 25% or more of the
combined voting power of the Corporation's then outstanding securities; or (ii)
during any period of two consecutive years, individuals who at the beginning of
such period constitute the Board of Directors of the Corporation cease for any
reason to constitute at least a majority thereof unless the election, or the
nomination for election by 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.

    (e)  CODE.  "Code" shall mean the Internal Revenue Code of 1986, as
amended.

    (f)  DATE OF TERMINATION.  "Date of Termination" shall mean (i) if the
Executive's employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive's employment
is terminated for any other reason, the date on which a Notice of Termination is
given or as specified in such Notice.

    (g)  DISABILITY.  Termination by the Association of the Executive's
employment based on "Disability" shall mean termination because of any physical
or mental impairment which qualifies the Executive for disability benefits under
the applicable long-term disability plan maintained by the Employers or any
subsidiary or, if no such plan applies, which would qualify the Executive for
disability benefits under the Federal Social Security System.

    (h)  GOOD REASON.  Termination by the Executive of the Executive's
employment for "Good Reason" shall mean termination by the Executive following a
Change in Control of the Corporation based on:

         (i)  Without the Executive's express written consent, a reduction by
              either of the Employers in the Executive's Base Salary as the
              same may be increased from time to time or, except to the extent
              permitted by Section 3(b) hereof, a reduction in the package of
              fringe benefits provided to the Executive, taken as a whole;

         (ii) The principal executive office of either of the Employers is
              relocated outside of the Cherry Hill, New Jersey area or, without
              the Executive's

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                                       3

              express written consent, either of the Employers require the
              Executive to be based anywhere other than an area in
              which the Employers' principal executive office is located,
              except for required travel on business of the Employers to an
              extent substantially consistent with the Executive's present
              business travel obligations;

       (iii)  Any purported termination of the Executive's employment for Cause,
              Disability or Retirement which is not effected pursuant to a
              Notice of Termination satisfying the requirements of paragraph (j)
              below; or

         (iv) The failure by the Association to obtain the assumption of and
              agreement to perform this Agreement by any successor as
              contemplated in Section 9 hereof.

    (i)  IRS.  IRS shall mean the Internal Revenue Service.

    (j)  NOTICE OF TERMINATION.  Any purported termination of the Executive's
employment by the Association for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, 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 dated notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive's employment under the provision so indicated, (iii)
specifies a Date of Termination, which shall be not less than thirty (30) nor
more than ninety (90) days after such Notice of Termination is given, except in
the case of the Association's termination of Executive's employment for Cause,
which shall be effective immediately; and (iv) is given in the manner specified
in Section 10 hereof.

    (k)  RETIREMENT.  "Retirement" shall mean voluntary termination by the
Executive in accordance with the Employers' retirement policies, including early
retirement, generally applicable to their salaried employees.

    2.   TERM OF EMPLOYMENT.

    (a)  The Association hereby employs the Executive as President and Chief
Executive Officer and Executive hereby accepts said employment and agrees to
render such services to the Association on the terms and conditions set forth in
this Agreement.  The term of employment under this Agreement shall be for three
years, commencing on the date of this Agreement and, upon approval of the Board
of Directors of the Association, shall extend for an additional year on each
annual anniversary of the date of this Agreement such that at any time the
remaining term of this Agreement shall be from two to three years.  Prior to the
first annual anniversary of the date of this Agreement and each annual
anniversary thereafter, the Board of Directors of the Association shall consider
and review

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                                       4

(with appropriate corporate documentation thereof, and after taking into account
all relevant factors, including the Executive's performance hereunder)
extension of the term under this Agreement, and the term shall continue to
extend each year if the Board of Directors approves such extension unless the
Executive gives written notice to the Employers of the Executive's election not
to extend the term, with such written notice to be given not less than thirty
(30) days prior to any such anniversary date. If the Board of Directors elects
not to extend the term, it shall give written notice of such decision to the
Executive not less than thirty (30) days prior to any such anniversary date.  If
any party gives timely notice that the term will not be extended as of any
annual anniversary date, then this Agreement shall terminate at the conclusion
of its remaining term.  References herein to the term of this Agreement shall
refer both to the initial term and successive terms.

    (b)  During the term of this Agreement, the Executive shall perform such
executive services for the Association as may be consistent with his titles and
from time to time assigned to him by the Association's Board of Directors.

    3.   COMPENSATION AND BENEFITS.

    (a)  The Employers shall compensate and pay Executive for his services
during the term of this Agreement at a minimum base salary of $548,000 per year
("Base Salary"), which may be increased from time to time in such amounts as may
be determined by the Boards of Directors of the Employers and may not be
decreased without the Executive's express written consent.  In addition to his
Base Salary, the Executive shall be entitled to receive during the term of this
Agreement such bonus payments as may be determined by the Boards of Directors of
the Employers.

    (b)  During the term of the Agreement, Executive shall be entitled to
participate in and receive the benefits of any pension or other retirement
benefit plan, profit sharing, stock option, employee stock ownership, or other
plans, benefits and privileges given to employees and executives of the
Employers, to the extent commensurate with his then duties and responsibilities,
as fixed by the Boards of Directors of the Employers.  The Association shall not
make any changes in such plans, benefits or privileges which would adversely
affect Executive's rights or benefits thereunder, unless such change occurs
pursuant to a program applicable to all executive officers of the Association
and does not result in a proportionately greater adverse change in the rights of
or benefits to Executive as compared with any other executive officer of the
Association.  Nothing paid to Executive under any plan or arrangement presently
in effect or made available in the future shall be deemed to be in lieu of the
salary payable to Executive pursuant to Section 3(a) hereof.

    (c)  During the term of this Agreement, Executive shall be entitled to paid
annual vacation in accordance with the policies as established from time to time
by the Boards of Directors of the Employers, which shall in no event be less
than four weeks per annum.  Executive shall not be entitled to receive any
additional compensation from the Employers for failure to take a vacation, nor
shall Executive be able to accumulate unused vacation

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                                       5

time from one year to the next, except to the extent authorized by the Boards of
Directors of the Employers.

    (d)  During the term of this Agreement, in keeping with past practices, the
Employers shall continue to provide the Executive with the automobile he
presently drives. The Employers shall be responsible and shall pay for all costs
of insurance coverage, repairs, maintenance and other incidental expenses,
including license, fuel and oil.  The Employers shall provide the Executive with
a replacement automobile of a similar type as selected by the Executive at
approximately the time that his present automobile reaches (3) years of age and
approximately every three (3) years thereafter, upon the same terms and
conditions.  

    (e)  During the term of this Agreement, in keeping with past practices, the
Employers shall pay the Executive's annual membership dues at (2) two clubs of
his choice.

    (f)  The Employers shall provide continued medical insurance in the
Employers' health plan for the benefit of the Executive and his spouse until the
Executive shall have attained the age of 70, whether or not the Executive is
employed full time by the Employers, and such insurance shall be comparable to
that which is provided to the Executive as of the date of this Agreement
notwithstanding anything to the contrary in this Agreement and regardless of
whether the Executive is eligible to participate in the Employers' health plan. 
In the event of the Executive's death before he attains the age of 70, the
Employers shall provide the Executive's spouse continued medical insurance in
the Employers' health plan comparable to that which is being provided to the
Executive's spouse at such time for three years from the date of the Executive's
death.

    (g)  In the event of the Executive's death during the term of this
Agreement or if the Executive is terminated due to Disability, his spouse,
estate, legal representative or named beneficiaries (as directed by the
Executive in writing) shall be paid on a monthly basis the Executive's annual
compensation from the Employers at the rate in effect at the time of the
Executive's death or termination due to Disability for the remainder of the term
of this Agreement.

    (h)  The Executive's compensation, benefits and expenses shall be paid by
the Corporation and the Association in the same proportion as the time and
services actually expended by the Executive on behalf of each respective
Employer.

    4.   EXPENSES.  The Employers shall reimburse Executive or otherwise
provide for or pay for all reasonable expenses incurred by Executive in
furtherance of, or in connection with the business of the Employers, including,
but not by way of limitation, automobile expenses described in Section 3(d)
hereof, and traveling expenses, and all reasonable entertainment expenses
(whether incurred at the Executive's residence, while traveling or otherwise),
subject to such reasonable documentation and other limitations as may be
established by the Boards of Directors of the Employers.  If such expenses are
paid in the first instance by Executive, the Employers shall reimburse the
Executive therefor.

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                                       6

    5.   TERMINATION.

    (a)  The Association shall have the right, at any time upon prior Notice of
Termination, to terminate the Executive's employment hereunder for any reason,
including without limitation termination for Cause, Disability or Retirement,
and Executive shall have the right, upon prior Notice of Termination, to
terminate his employment hereunder for any reason.

    (b)  In the event that (i) Executive's employment is terminated by the
Association for Cause or Retirement or (ii) Executive terminates his employment
hereunder other than for Good Reason, Executive shall have no right pursuant to
this Agreement to compensation or other benefits for any period after the
applicable Date of Termination, except as provided for in Section 3(f) hereof in
the event of termination for Retirement.

    (c)  In the event that (i) Executive's employment is terminated by the
Association for other than Cause, Disability, Retirement or the Executive's
death or (ii) such employment is terminated by the Executive (a) due to a
material breach of this Agreement by the Association, which breach has not been
cured within fifteen (15) days after a written notice of non-compliance has been
given by the Executive to the Employers, or (b) for Good Reason, then the
Association shall, subject to the provisions of Section 6 hereof, if applicable

         (A)  pay to the Executive, in thirty-six (36) equal monthly
    installments beginning with the first business day of the month following
    the Date of Termination, a cash severance amount equal to three (3) times
    that portion of the Executive's Base Salary paid by the Association, and

         (B)  maintain and provide for a period ending at the earlier of (i)
    the expiration of the remaining term of employment pursuant hereto prior to
    the Notice of Termination or (ii) the date of the Executive's full-time
    employment by another employer (provided that the Executive is entitled
    under the terms of such employment to benefits substantially similar to
    those described in this subparagraph (B)), at no cost to the Executive, the
    Executive's continued participation in all group insurance, life insurance,
    health and accident, disability and other employee benefit plans, programs
    and arrangements offered by the Association in which the Executive was
    entitled to participate immediately prior to the Date of Termination (other
    than stock option and restricted stock plans of the Employers), provided
    that in the event that the Executive's participation in any plan, program
    or arrangement as provided in this subparagraph (B) is barred, or during
    such period any such plan, program or arrangement is discontinued or the
    benefits thereunder are materially reduced, the Association shall arrange
    to provide the Executive with benefits substantially similar to those which
    the Executive was entitled to receive under such plans, programs and
    arrangements immediately prior to the Date of Termination.

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                                       7

    (d)  In the event of the failure by either of the Employers to elect or to
re-elect or to appoint or to re-appoint the Executive to the offices of
President and Chief Executive Officer of the Employers or a material adverse
change made by either of the Employers in the Executive's functions, duties or
responsibilities as President and Chief Executive Officer of the Employers
without the Executive's express written consent, the Executive shall be entitled
to terminate his employment hereunder and shall be entitled to the payments and
benefits provided for in Section 5(c)(A) and (B).

    6.   LIMITATION OF BENEFITS UNDER CERTAIN CIRCUMSTANCES.  If the payments
and benefits pursuant to Section 5 hereof, either alone or together with other
payments and benefits which Executive has the right to receive from the
Association, would constitute a "parachute payment" under Section 280G of the
Code, the payments and benefits payable by the Association pursuant to Section 5
hereof shall be reduced, in the manner determined by the Executive, by the
amount, if any, which is the minimum necessary to result in no portion of the
payments and benefits payable by the Association under Section 5 being
non-deductible to the Association pursuant to Section 280G of the Code and
subject to the excise tax imposed under Section 4999 of the Code.  The parties
hereto agree that the payments and benefits payable pursuant to this Agreement
to the Executive upon termination shall be limited to three times the
Executive's average annual compensation (based upon the most recent five taxable
years) in accordance with OTS Regulatory Bulletin 27a.  The determination of any
reduction in the payments and benefits to be made pursuant to Section 5 shall be
based upon the opinion of independent tax counsel selected by the Association's
independent public accountants and paid by the Association.  Such counsel shall
be reasonably acceptable to the Association and the Executive; shall promptly
prepare the foregoing opinion, but in no event later than thirty (30) days from
the Date of Termination; and may use such actuaries as such counsel deems
necessary or advisable for the purpose.  Nothing contained herein shall result
in a reduction of any payments or benefits to which the Executive may be
entitled upon termination of  employment under any circumstances other than as
specified in this Section 6, or a reduction in the payments and benefits
specified in Section 5 below zero.

    7.   MITIGATION; EXCLUSIVITY OF BENEFITS.

    (a)  The Executive shall not be required to mitigate the amount of any
benefits hereunder by seeking other employment or otherwise, nor shall the
amount of any such benefits be reduced by any compensation earned by the
Executive as a result of employment by another employer after the Date of
Termination or otherwise.

    (b)  The specific arrangements referred to herein are not intended to
exclude any other benefits which may be available to the Executive upon a
termination of employment with the Employers pursuant to employee benefit plans
of the Employers or otherwise.

    8.   WITHHOLDING.  All payments required to be made by the Association
hereunder to the Executive shall be subject to the withholding of such amounts,
if any, relating to tax

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                                       8

and other payroll deductions as the Association may reasonably determine should
be withheld pursuant to any applicable law or regulation.

    9.   ASSIGNABILITY.  The Association may assign this Agreement and its
rights and obligations hereunder in whole, but not in part, to any corporation,
bank or other entity with or into which the Association may hereafter merge or
consolidate or to which the Association may transfer all or substantially all of
their assets, if in any such case said corporation, bank or other entity shall
by operation of law or expressly in writing assume all obligations of the
Association hereunder as fully as if it had been originally made a party hereto,
but may not otherwise assign this Agreement or its rights and obligations
hereunder.  The Executive may not assign or transfer this Agreement or any
rights or obligations hereunder.

    10.  NOTICE.  For the purposes 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 below:

    To the Association: Secretary
                        Inter-Boro Savings and Loan Association
                        1909 E. Marlton Pike
                        Cherry Hill, New Jersey  08003

    To the Corporation: Secretary
                        IBS Financial Corp.
                        1909 E. Marlton Pike
                        Cherry Hill, New Jersey  08003

    To the Executive:   Joseph M. Ochman, Sr.
                        774 Allison Court
                        Morrestown, New Jersey  08057

    11.  AMENDMENT; WAIVER.  No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Executive and such officer or officers as may be
specifically designated by the Board of Directors of the Association to sign on
its behalf.  No waiver by any party hereto at any time of any breach by any
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.

    12.  GOVERNING LAW.  The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the United States
where applicable and otherwise by the substantive laws of the State of New
Jersey.

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                                       9

    13.  NATURE OF OBLIGATIONS.  Nothing contained herein shall create or
require the Association to create a trust of any kind to fund any benefits which
may be payable hereunder, and to the extent that the Executive acquires a right
to receive benefits from the Association hereunder, such right shall be no
greater than the right of any unsecured general creditor of the Association.

    14.  HEADINGS.  The section headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

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

    16.  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.

    17.  REGULATORY ACTIONS.  The following provisions shall be applicable to
the parties to the extent that they are required to be included in employment
agreements between a savings association and its employees pursuant to Section
563.39(b) of the Regulations Applicable to all Savings Associations, 12 C.F.R.
Section 563.39(b), or any successor thereto, and shall be controlling in the
event of a conflict with any other provision of this Agreement, including
without limitation Section 5 hereof.

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

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

    (c)  If the Association is in default, as defined in Section 3(x)(1) of the
FDIA (12 U.S.C. Section 1813(x)(1)), all obligations under this Agreement shall
terminate as of the date of

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                                      10

default, but vested rights of the Executive and the Association as of the date
of termination shall not be affected.

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

    18.  REGULATORY PROHIBITION.  Notwithstanding any other provision of this
Agreement to the contrary, any payments made to the Executive pursuant to this
Agreement, or otherwise, are subject to and conditioned upon their compliance
with Section 18(k) of the FDIA (12 U.S.C. Section 1828(k)) and any regulations
promulgated thereunder.

    19.  ENTIRE AGREEMENT.  This Agreement embodies the entire agreement
between the Association and the Executive with respect to the matters agreed to
herein.  All prior agreements between the Association and the Executive with
respect to the matters agreed to herein, including without limitation the
Agreement between the Employers and the Executive dated October 28, 1994, are
hereby superseded and shall have no force or effect.  Notwithstanding the
foregoing, nothing contained in this Agreement shall affect the agreement of
even date being entered into between the Corporation and the Executive.

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                                      11

    IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.

Attest:                                     IBS FINANCIAL CORP.



____________________                        By:  /s/ JOHN A. BORDEN
                                                 _____________________________
                                                 John A. Borden, Director and
                                                   Chairman of the Compensation
                                                   Committee of the Board
                                                   of Directors



                                            EXECUTIVE



                                            By:  /s/ JOSEPH M. OCHMAN, SR.
                                                 _____________________________
                                                 Joseph M. Ochman, Sr.