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                                                                   EXHIBIT 10.14

                      INVESTORS FINANCIAL SERVICES CORP.

                 1995 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

                 AMENDED AND RESTATED AS OF FEBRUARY 13, 1996

                     (as further amended January 14, 1997)

     1.   Purpose.  This Non-Qualified Stock Option Plan, to be known as the 
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1995 Non-Employee Director Stock Option Plan (hereinafter, this "Plan") is
intended to promote the interests of Investors Financial Services Corp.
(hereinafter, the "Company") by providing an inducement to obtain and retain the
services of qualified persons who are not employees or officers of the Company
to serve as members of its Board of Directors (the "Board").

     2.   Available Shares.  The total number of shares of Common Stock, par 
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value $.01 per share, of the Company (the "Common Stock") for which options may
be granted under this Plan shall not exceed 100,000 shares, subject to
adjustment in accordance with paragraph 10 of this Plan. Shares subject to this
Plan are authorized but unissued shares or shares that were once issued and
subsequently reacquired by the Company. If any options granted under this Plan
are surrendered before exercise or lapse without exercise, in whole or in part,
the shares reserved therefor shall continue to be available under this Plan.

     3.   Administration.  This Plan shall be administered by the Board or by a
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committee appointed by the Board (the "Committee").  In the event the Board
fails to appoint or refrains from appointing a Committee, the Board shall have
all power and authority to administer this Plan.  In such event, the word
"Committee" wherever used herein shall be deemed to mean the Board.  The
Committee shall, subject to the provisions of the Plan, have the power to
construe this Plan, to determine all questions hereunder, and to adopt and amend
such rules and regulations for the administration of this Plan as it may deem
desirable.  No member of the Board or the Committee shall be liable for any
action or determination made in good faith with respect to this Plan or any
option granted under it.

     4.   Automatic Grant of Options.  Subject to the availability of shares 
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under this Plan, (a) each person who is or becomes a member of the Board and who
is not an employee or officer of the Company (a "Non-Employee Director") shall
be automatically granted on the later of (i) the date such person is first
elected to the Board or (ii) the date of pricing of the Company's initial public
offering of shares of Common Stock (the "Approval Date") (such later date being
referred to herein as the "Grant Date"), without further action by the Board, an
option to purchase 2,500 shares of the Common Stock, and (b) each person
receiving an option pursuant to clause (a) above who is a Non-Employee Director
shall be, on each successive one-year anniversary of such person's Grant Date
during the term of this Plan, automatically granted on each such date an option
to purchase 2,500 shares of the Common Stock

     5.   Election to Receive Stock Options.  In addition to the automatic 
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grant of options under Section 4, subject to the availability of shares under
this Plan, each Non-Employee Director may make an election (the "Election") to
receive, in lieu of his or her cash retainer, options to acquire shares of
Common Stock. The Election must be in writing and must be delivered to the
Secretary of the Company at least six months prior to the scheduled payment date
of the cash retainer which it is intended to replace.

     (a)  Any Election shall be irrevocable for six months and may only be
revoked after such six-month period by a written revocation which shall take
effect six months after receipt of such revocation by the Company.

     (b)  Each Non-Employee Director who elects to receive options in lieu of
his or her cash retainer shall be granted an option to purchase shares on the
first day of each calendar quarter provided that at 
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least six months has lapsed since the Election. The total number of shares of
stock to be covered by the option shall be equal to the quotient obtained by
dividing the cash retainer by the value of an option on the date of grant as
determined using the Black-Scholes model.

     6.   Option Price.  The purchase price of the stock covered by an option
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granted pursuant to this Plan shall be 100% of the fair market value of such
shares on the day the option is granted.  The option price will be subject to
adjustment in accordance with the provisions of paragraph 10 of this Plan.  For
purposes of this Plan, if, at the time an option is granted under the Plan, the
Company's Common Stock is publicly traded, "fair market value" shall be
determined as of the date of grant or, if prices or quotes are unavailable for
such date, the last business day for which such prices or quotes are available
prior to the date of grant and shall mean (i) the average (on that date) of the
high and low prices of the Common Stock on the principal national securities
exchange on which the Common Stock is traded, if the Common Stock is then traded
on a national securities exchange; or (ii) the last reported sale price (on that
date) of the Common Stock on the Nasdaq National Market, if the Common Stock is
not then traded on a national securities exchange; or (iii) the closing bid
price (or average of bid prices) last quoted (on that date) by an established
quotation service for over-the-counter securities, if the Common Stock is not
reported on the Nasdaq National Market List.  Notwithstanding, the purchase
price of the stock underlying the options granted upon the pricing of the
Company's initial public offering pursuant to Section 4(a)(ii) above shall be
the initial public offering price of the Company's Common Stock.  However, if
the Common Stock is not publicly traded at the time an option is granted under
the Plan, "fair market value" shall be deemed to be the fair value of the Common
Stock as determined by the Committee after taking into consideration all factors
which it deems appropriate, including, without limitation, recent sale and offer
prices of the Common Stock in private transactions negotiated at arm's length.

     7.   Period of Option.  Unless sooner terminated in accordance with the
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provisions of paragraph 9 of this Plan, an option granted hereunder shall expire
on the date which is five (5) years after the date of grant of the option.

     8.   (a)  Vesting of Shares and Non-Transferability of Options.  Options
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granted under this Plan shall not be exercisable until they become vested.
Options granted under Section 4 of this Plan shall vest in the optionee and thus
become exercisable in 48 equal monthly installments beginning one month from the
date of grant, provided that the optionee has continuously served as a member of
the Board through such vesting date.  Options granted under Section 5 of this
Plan shall vest in the optionee and thus become exercisable on the date of
grant.
 
   The number of shares as to which options may be exercised shall be
cumulative, so that once the option shall become exercisable as to any shares it
shall continue to be exercisable as to said shares, until expiration or
termination of the option as provided in this Plan.

          (b)  Non-transferability.  Any option granted pursuant to this Plan 
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shall not be assignable or transferable other than by will or the laws of
descent and distribution or pursuant to a domestic relations order and shall be
exercisable during the optionee's lifetime only by him or her.

     9.   Termination of Option Rights.
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          (a)  In the event an optionee ceases to be a member of the Board for
any reason other than death or permanent disability, any then unexercised
portion of options granted to such optionee shall, to the extent not then
vested, immediately terminate and become void; any portion of an option which is
then vested but has not been exercised at the time the optionee so ceases to be
a member of the Board may be exercised, to the extent it is then vested, by the
optionee within 90 days of the date the optionee ceased to be a member of the
Board; and all options shall terminate after such 90 days have expired.

          (b)  In the event that an optionee ceases to be a member of the Board
by reason of his or her death or permanent disability, any option granted to
such optionee shall be immediately and 
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automatically accelerated and become fully vested and all unexercised options
shall be exercisable by the optionee (or by the optionee's personal
representative, heir or legatee, in the event of death) until the scheduled
expiration date of the option.

     10.  Exercise of Option.  Subject to the terms and conditions of this 
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Plan and the option agreements, an option granted hereunder shall, to the extent
then exercisable, be exercisable in whole or in part by giving written notice to
the Company by mail or in person addressed to the Company, at its principal
executive offices, stating the number of shares with respect to which the option
is being exercised, accompanied by payment in full for such shares. Payment may
be (a) in United States dollars in cash or by check or (b) consistent with
applicable law, through the delivery of an assignment to the Company of a
sufficient amount of the proceeds from the sale of the Common Stock acquired
upon exercise of the option and an authorization to the broker or selling agent
to pay that amount to the Company, which sale shall be at the participant's
direction at the time of exercise. There shall be no such exercise at any one
time as to fewer than one hundred (100) shares or all of the remaining shares
then purchasable by the person or persons exercising the option, if fewer than
one hundred (100) shares. The Company's transfer agent shall, on behalf of the
Company, prepare a certificate or certificates representing such shares acquired
pursuant to exercise of the option, shall register the optionee as the owner of
such shares on the books of the Company and shall cause the fully executed
certificate(s) representing such shares to be delivered to the optionee as soon
as practicable after payment of the option price in full. The holder of an
option shall not have any rights of a stockholder with respect to the shares
covered by the option, except to the extent that one or more certificates for
such shares shall be delivered to him or her upon the due exercise of the
option.

     11.  Adjustments Upon Changes in Capitalization and Other Events.  Upon the
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occurrence of any of the following events, an optionee's rights with respect to
options granted to him or her hereunder shall be adjusted as hereinafter
provided:

          (a)  Stock Dividends and Stock Splits.  If the shares of Common Stock
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     shall be subdivided or combined into a greater or smaller number of shares
     or if the Company shall issue any shares of Common Stock as a stock
     dividend on its outstanding Common Stock, the number of shares of Common
     Stock deliverable upon the exercise of options shall be appropriately
     increased or decreased proportionately, and appropriate adjustments shall
     be made in the purchase price per share to reflect such subdivision,
     combination or stock dividend.

          (b)  Recapitalization Adjustments.  If the Company is to be 
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     consolidated with or acquired by another entity in a merger, sale of all or
     substantially all of the Company's assets or otherwise, each option granted
     under this Plan which is outstanding but unvested as of the effective date
     of such event shall become exercisable in full 15 days prior to the
     effective date of such event. In the event of a reorganization,
     recapitalization, merger, consolidation, or any other change in the
     corporate structure or shares of the Company, to the extent permitted by
     Rule 16b-3 under the Securities Exchange Act of 1934, adjustments in the
     number and kind of shares authorized by this Plan and in the number and
     kind of shares covered by, and in the option price of outstanding options
     under this Plan necessary to maintain the proportionate interest of the
     optionee and preserve, without exceeding, the value of such option, shall
     be made. Notwithstanding the foregoing, no such adjustment shall be made
     which would, within the meaning of any applicable provisions of the
     Internal Revenue Code of 1986, as amended, constitute a modification,
     extension or renewal of any Option or a grant of additional benefits to the
     holder of an Option.

          (c)  Issuances of Securities.  Except as expressly provided herein, no
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     issuance by the Company of shares of stock of any class, or securities
     convertible into shares of stock of any class, shall affect, and no
     adjustment by reason thereof shall be made with respect to, the number or
     price of shares subject to options. No adjustments shall be made for
     dividends paid in cash or in property other than securities of the Company.
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          (d)  Adjustments.  Upon the happening of any of the foregoing events, 
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     the class and aggregate number of shares set forth in paragraphs 2,4 and 5
     of this Plan that are subject to options which previously have been or
     subsequently may be granted under this Plan shall also be appropriately
     adjusted to reflect such events. The Board shall determine the specific
     adjustments to be made under this paragraph 11 and its determination shall
     be conclusive.

     12.  Restrictions on Issuance of Shares.  Notwithstanding the provisions of
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paragraphs 4, 5 and 10 of this Plan, the Company shall have no obligation to
deliver any certificate or certificates upon exercise of an option until one of
the following conditions shall be satisfied:

          (i)    The issuance of shares with respect to which the option has
     been exercised is at the time of the issue of such shares effectively
     registered under applicable Federal and state securities laws as now in
     force or hereafter amended; or

          (ii)   Counsel for the Company shall have given an opinion that the
     issuance of such shares is exempt from registration under Federal and state
     securities laws as now in force or hereafter amended; and the Company has
     complied with all applicable laws and regulations with respect thereto,
     including without limitation all regulations required by any stock exchange
     upon which the Company's outstanding Common Stock is then listed.

     12.  Legend on Certificates.  The certificates representing shares issued
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pursuant to the exercise of an option granted hereunder shall carry such
appropriate legend, and such written instructions shall be given to the
Company's transfer agent, as may be deemed necessary or advisable by counsel to
the Company in order to comply with the requirements of the Securities Act of
1933 or any state securities laws.

     13.  Representation of Optionee.  If requested by the Company, the optionee
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shall deliver to the Company written representations and warranties upon
exercise of the option that are necessary to show compliance with Federal and
state securities laws, including representations and warranties to the effect
that a purchase of shares under the option is made for investment and not with a
view to their distribution (as that term is used in the Securities Act of 1933).

     14.  Option Agreement.  Each option granted under the provisions of this 
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Plan shall be evidenced by an option agreement, which agreement shall be duly
executed and delivered on behalf of the Company and by the optionee to whom such
option is granted.  The option agreement shall contain such terms, provisions
and conditions not inconsistent with this Plan as may be determined by the
officer executing it.

     15.  Termination and Amendment of Plan.  Options may no longer be granted
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under this Plan after October 1, 2005, and this Plan shall terminate when all
options granted or to be granted hereunder are no longer outstanding.  The Board
may at any time terminate this Plan or make such modification or amendment
thereof as it deems advisable; provided, however, that the Board may not,
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without approval by the affirmative vote of the holders of a majority of the
shares of Common Stock present in person or by proxy and voting on such matter
at a meeting, (a) increase the maximum number of shares for which options may be
granted under this Plan (except by adjustment pursuant to Section 10), (b)
materially modify the requirements as to eligibility to participate in this
Plan, (c) materially increase benefits accruing to option holders under this
Plan or (d) amend this Plan in any manner which would cause Rule 16b-3 under the
Securities Exchange Act (or any successor or amended provision thereof) to
become inapplicable to this Plan; and provided further that the provisions of
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this Plan specified in Rule 16b-3(c)(2)(ii)(A) (or any successor or amended
provision thereof) under the Securities Exchange Act of 1934 (including without
limitation, provisions as to eligibility, amount, price and timing of awards)
may not be amended more than once every six months, other than to comport with
changes in the Internal Revenue Code, the Employee Retirement Income Security
Act, or the rules thereunder.  Termination or any modification or amendment of
this Plan shall not, without consent of a participant, affect his or her rights
under an option previously granted to him or her.
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     16.  Withholding of Income Taxes.  Upon the exercise of an option, the
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Company, in accordance with Section 3402(a) of the Internal Revenue Code, may
require the optionee to pay withholding taxes in respect of amounts considered
to be compensation includible in the optionee's gross income.

     17.  Compliance with Regulations.  It is the Company's intent that the Plan
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comply in all respects with Rule 16b-3 under the Securities Exchange Act of 1934
(or any successor or amended provision thereof) and any applicable Securities
and Exchange Commission interpretations thereof.  If any provision of this Plan
is deemed not to be in compliance with Rule 16b-3, the provision shall be null
and void.

     18.  Governing Law.  The validity and construction of this Plan and the
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instruments evidencing options shall be governed by the laws of the Commonwealth
of Massachusetts, without giving effect to the principles of conflicts of law
thereof.