SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT
                             FOR DEBORAH J. JACKSON

     This  Supplemental  Executive  Retirement  Agreement (the  "Agreement")  is
entered into by and between East Boston  Savings Bank, a  corporation  organized
and existing under the laws of the Commonwealth of Massachusetts  (the "Bank" or
"Employer")  and Deborah J. Jackson (the  "Executive"),  effective as of January
20, 2009 (the "Effective Time").

                                    PREAMBLE

     The purpose of this Agreement is to provide the Executive with supplemental
retirement  benefits  in  order  to  provide  her  with a  reasonable  level  of
retirement  income which will assist her in maintaining an appropriate  standard
of living in  retirement.  An integral part of the Agreement is to encourage and
induce the  Executive  to remain as a  full-time  executive  officer of the Bank
until she attains the  retirement  age of  sixty-five  (65) and to recognize her
service to the Bank. The parties  intend that this Agreement  shall at all times
be characterized as a "top hat" plan of deferred compensation maintained for the
Executive who is a highly  compensated  employee,  as described  under  Sections
201(2),  301(a)(3) and 401(a)(1) of the Employee  Retirement Income Security Act
of 1974 (the "ERISA"), and the Agreement shall at all times satisfy Section 409A
of the Internal  Revenue Code of 1986, as amended (the  "Code"),  and as enacted
under the American  Jobs Creation Act of 2004.  The  provisions of the Agreement
shall be  construed  to  effectuate  such  intentions.  The  Agreement  shall be
unfunded for tax purposes and for purposes of Title I of ERISA.

                                   WITNESSETH:

     WHEREAS,  the Bank wishes to provide for the employment of the Executive as
of the  Effective  Time,  and the  Executive  wishes to serve the Bank as of the
Effective Time; and

     WHEREAS,  in order to induce the Executive to enter the employ of the Bank,
the parties desire to enter into the SERP; and

     WHEREAS,  to induce the  Executive to continue in the Bank's  employ to age
sixty-five  (65),  the Bank proposes to supplement  the benefits  payable to the
Executive under the Bank's 401(k) plan and employee stock ownership plan;

     NOW, THEREFORE, in consideration of the premises and the mutual promises of
the parties hereto, the parties agree as follows:

     1. Establishment of Accumulation  Account. An Accumulation Account shall be
maintained on the books of the Employer for the  Executive  with respect to this
Agreement. The Accumulation Account shall be utilized solely as a device for the


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measurement and determination of the benefits,  if any, payable to the Executive
pursuant to this Agreement.

     2. Annual Credits to  Accumulation  Account.  Each calendar year commencing
January 1, 2009 and ending the following  December  31st, the Board of Directors
of the Bank shall  credit the  Executive's  Accumulation  Account with an amount
equal to $117,858,  which is the amount equal to the product of (i) 1/14,  times
(ii) $1,650,000.  The Accumulation Account shall be credited as of each December
31st,  and in the event the Executive  terminates  employment  prior to December
31st,  she will be entitled to a pro-rated  contribution.  The Executive may not
make any contributions under this Agreement.

     3. Maximum Amount Credited to Accumulation Account. All amounts credited to
the Accumulation  Account shall not exceed  $1,650,000.  No further additions to
the  Accumulation  Account will be made when, and if, the  Accumulation  Account
equals $1,650,000.

     4. Payment upon Separation from Service.

          (a) Upon a Separation from Service,  the Accumulation Account shall be
     paid in a single lump sum payment to the  Executive on the first day of the
     month following the lapse of six months after such Separation from Service.

          (b)  For  purposes  hereof,  Separation  from  Service  shall  mean  a
     termination of the  Executive's  services  (whether as an employee or as an
     independent  contractor)  to the Company and the Bank for any reason  other
     than  Disability or death.  Whether a Separation  from Service has occurred
     shall be determined in accordance with the  requirements of Section 409A of
     the Code based on whether  the facts and  circumstances  indicate  that the
     Company, the Bank and the Executive reasonably  anticipated that no further
     services would be performed  after a certain date or that the level of bona
     fide  services the  Executive  would perform after such date (whether as an
     employee or as an independent  contractor) would permanently decrease to no
     more than twenty  percent  (20%) of the average level of bona fide services
     performed  (whether as an employee or an independent  contractor)  over the
     immediately preceding thirty-six (36) month period.

     5. Payment upon death or Disability.

          (a) Upon the death or Disability of the  Executive,  the  Accumulation
     Account shall be paid to the Executive,  or the Executive's  beneficiary in
     the event of death,  in a single  lump sum  payment on the first day of the
     month following the occurrence of death or Disability.

          (b) For purposes  hereof,  Disability  shall mean an Executive  (i) is
     unable to  engage  in any  substantial  gainful  activity  by reason of any
     medically  determinable physical or mental impairment which can be expected
     to result in death or can be  expected to last for a  continuous  period of
     not less  than  twelve  months;  or (ii) is,  by


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<PAGE>

     reason of any medically  determinable  physical or mental  impairment which
     can be  expected  to  result  in  death  or can be  expected  to last for a
     continuous  period  of  not  less  than  twelve  months,  receiving  income
     replacement  benefits  for a period of not less than three  months under an
     accident  and health  plan  covering  employees  of the Bank (or would have
     received such benefits if the Executive was eligible to participate in such
     plan).  If any  question  shall  arise as to whether  during any period the
     Executive is Disabled,  the  Executive  may, and at the request of the Bank
     shall,  submit  to the  Bank a  certification  in  reasonable  detail  by a
     physician  selected by the Bank to whom the  Executive  or the  Executive's
     guardian  has no  reasonable  objection  as to whether the  Executive is so
     Disabled,  and such certification  shall for the purposes of this Agreement
     be conclusive of the issue. The physician shall be  board-certified  in the
     area of medicine  applicable to the  particular  disability  involved.  The
     Executive shall  cooperate with any reasonable  request of the physician in
     connection  with such  certification.  If such question shall arise and the
     Executive  shall fail to submit  such  certification  (unless  the  failure
     results  from  matters  beyond the  control of the  Executive),  the Bank's
     determination  will  determine  the  issue  of  whether  the  Executive  is
     Disabled.

     6.  Payment  upon  Termination  of the  Executive  Without  Cause or by the
Executive for Good Reason in connection with a Change in Control.

          (a) Notwithstanding  anything in the Agreement to the contrary, in the
     event the  Executive's  employment  shall be  terminated by the Bank (which
     termination shall constitute a Separation from Service),  or its successor,
     without  Cause,  as provided in Section  6(b), or by the Executive for Good
     Reason,  as provided in Section 6(c),  concurrently  with or within two (2)
     years of a Change in Control,  as defined in Section 6(d), the  Executive's
     Accumulation  Account shall equal  $1,650,000 and shall be paid in a single
     lump sum payment to the  Executive on the first day of the month  following
     the lapse of six months after such Separation from Service.

          (b) Termination by the Bank without Cause. The Executive's  employment
     may be terminated by the Bank, or its successor,  without Cause (which, for
     purposes of  clarification,  shall not include a termination of Executive's
     employment  under this  Agreement due to  Executive's  death or Disability)
     upon  written  notice to the  Executive.  A  determination  of whether  the
     Executive's  employment  shall be  terminated  without  Cause  will be made
     solely by the Executive Committee of the Board of Directors.

          (c)  Termination  by the  Executive for Good Reason.  The  Executive's
     employment  may be  terminated  by the  Executive by written  notice to the
     Board of Directors  within sixty (60) days following an event  constituting
     "Good  Reason." The  Executive's  termination  of  employment  shall become
     effective on the  thirty-first  (31st) day following such notice,  provided
     the Bank, or its successor,  has not remedied the condition  giving rise to
     the event of "Good Reason." For purposes of this  Agreement,  "Good Reason"
     shall mean:

               (i) a material  diminution or other  substantial  adverse change,
          not  consented  to by  Executive,  in  the  nature  or  scope  of  the
          Executive's  responsibilities  and


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<PAGE>

          authorities  as set  forth in the  employment  agreement  between  the
          Executive and the Bank;

               (ii) any  demotion of the  Executive  from her  current  title of
          President and Chief Operating Officer;

               (iii) a material  reduction in the Executive's base salary except
          for   across-the-board   reductions   similarly   affecting   all   or
          substantially all officers;

               (iv)  involuntary  relocation of the Bank's  offices in which the
          Executive is  principally  employed by more than 50 miles (10 miles in
          the event of a Change in Control); or

               (v)  failure of the Bank to comply  with  material  terms of this
          Agreement.

          (d) For purposes  hereof,  "Change in Control"  shall mean a change in
     the ownership of Meridian Interstate  Bancorp,  Inc. (the "Company") or the
     Bank,  a change in the  effective  control of the  Company or the Bank or a
     change in the  ownership  of a  substantial  portion  of the  assets of the
     Company or the Bank,  in each case as provided  under  Section  409A of the
     Code and the regulations thereunder.

     7.  Accumulation  Account.  If  the  Executive  has a (i)  Separation  from
Service,  other than pursuant to Section 6 of this Agreement (ii) dies, or (iii)
becomes  Disabled prior to attaining the maximum  Accumulation  Account  balance
specified  in  Section 3 of this  Agreement,  she will be  entitled  to only the
Accumulation Account as determined in Section 2 of this Agreement.

     8.  Designation  of  Beneficiary.  The  Executive may from time to time, by
providing  a written  notification  to the  Employer,  designate  any  person or
persons (who may be designated concurrently,  contingently or successively), her
estate or any trust or  trusts  created  by her to  receive  benefits  which are
payable under this  Agreement.  Each  beneficiary  designation  shall revoke all
prior  designations  and will be  effective  only when filed in writing with the
Employer's  Compensation  Committee, or any successor thereto (the "Committee").
If the  Executive  fails to designate a  beneficiary  or if a  beneficiary  dies
before the date of the Executive's death and no contingent  beneficiary has been
designated,  then the benefits  which are payable as aforesaid  shall be paid to
her  estate.  If  benefits  to  be  paid  to a  beneficiary  commence  and  such
beneficiary  dies before all benefits to which such beneficiary is entitled have
been paid, the remaining benefits shall be paid to the successive beneficiary or
beneficiaries  designated by the Executive, if any, and if none to the estate of
such beneficiary.

     9.  Claims  Procedure.  The  Executive  or her  designated  beneficiary  or
beneficiaries  may make a claim for  benefits  under this  Agreement by filing a
written  request with the Committee.  If a claim is wholly or partially  denied,
the Committee  shall


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<PAGE>

furnish the claimant with written notice setting forth in a manner calculated to
be understood by the claimant;

          (a) the specific reason or reasons for the denial;

          (b) specific  reference to the pertinent  provisions of this Agreement
     on which the denial is based;

          (c) a description of any additional material or information  necessary
     for the claimant to perfect her claim and an explanation  why such material
     or information is necessary; and

          (d)  appropriate  information  as to  the  steps  to be  taken  if the
     claimant wishes to submit her claim for review.

     Such notice  shall be furnished  to the  claimant  within  ninety (90) days
after  the  receipt  of her  claim,  unless  special  circumstances  require  an
extension  of time  for  processing  her  claim.  If an  extension  of time  for
processing is required,  the Committee  shall,  prior to the  termination of the
initial  ninety  (90) day period,  furnish  the  claimant  with  written  notice
indicating  the special  circumstances  requiring an  extension  and the date by
which  the  Committee  expects  to render  its  decision.  In no event  shall an
extension exceed a period of ninety (90) days from the end of the initial ninety
(90) day period.

     A claimant may request the Committee to review a denied claim. Such request
shall be in writing and must be  delivered  to the  Committee  within sixty (60)
days after receipt by the claimant of written notification of denial of claim. A
claimant or her duly authorized representative may:

          (a) review pertinent documents, and

          (b) submit issues and comments in writing.

     The Committee shall notify the claimant of its decision on review not later
than sixty  (60) days after  receipt of a request  for  review,  unless  special
circumstances  require  an  extension  of time for  processing,  in which case a
decision  shall be rendered as soon as possible,  but not later than one hundred
twenty (120) days after receipt of a request for review. If an extension of time
for review is required because of special  circumstances,  written notice of the
extension  must be furnished to the claimant  prior to the  commencement  of the
extension.  The Committee's decision on the review shall be in writing and shall
include specific reasons for the decision, as well as specific references to the
pertinent provisions of this Agreement on which the decision is based.

     10.  Statement of Accumulation  Account.  Within 90 days after the close of
each calendar year,  the Committee  shall submit to the Executive a statement in
such form


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<PAGE>

as the Committee deems desirable setting forth the balance as of the last day of
the calendar year in the Accumulation Account maintained for the Executive.

     11.  Withholding.  To the extent  required by the law in effect at the time
payment of the  Accumulation  Account is made, the Bank shall withhold from such
payment any taxes or other amounts required by law to be withheld.

     12. Unsecured Promise.  Nothing contained in this Agreement shall create or
require the Employer to create a trust of any kind to fund the benefits  payable
hereunder. To the extent that the Executive or any other person acquires a right
to receive payments from the Employer, such individual shall at all times remain
an unsecured general creditor of the Employer.

     13.  Assignment.  The right of the  Executive  or any  other  person to the
payment of benefits  under this  Agreement  shall not be subject to  alienation,
assignment,  garnishment,  attachment,  execution  or levy of any kind,  and any
attempt to cause such benefits to be so subjected shall not be recognized by the
Employer.

     14.  Employment.  Nothing  contained herein shall be construed to grant the
Executive  the right to be retained  in the employ of the  Employer or any other
rights or interests other than those specifically set forth.

     15. Amendment,  Suspension or Termination.  This Agreement shall be binding
upon and inure to the benefit of the  Employer and the  Executive.  The Employer
shall have the right to suspend, terminate or amend this Agreement only with the
mutual  consent  of  the  Executive;  provided,  however,  no  such  suspension,
termination or amendment shall  adversely  affect the rights of the Executive or
any  beneficiary  to the funds and benefits which have accrued as of the date of
such action.

     16.  Successors.  This  Agreement  shall be  binding  upon and inure to the
benefit of the Employer,  its  successors  and assigns and the Executive and her
heirs, executors, administrators, and legal representatives.

     17.  Governing  Law. This  Agreement  shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts.


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<PAGE>


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

                                           EAST BOSTON SAVINGS BANK


                                           BY: /s/ Richard J. Gavegnano
                                               ---------------------------------
                                               Richard J. Gavegnano
                                               Chief Executive Officer


                                           EXECUTIVE



                                           By: /s/ Deborah J. Jackson
                                               ---------------------------------
                                               Deborah J. Jackson

This SERP is joined in by Meridian  Interstate  Bancorp,  Inc.  for  purposes of
fulfilling the obligations of the Bank under the SERP.

                                           MERIDIAN INTERSTATE BANCORP, INC.


                                           By: /s/ Richard J. Gavegnano
                                               ---------------------------------
                                               Richard J. Gavegnano
                                               Director





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