Document:

EXHIBIT 10.2
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                                  Roebling Bank
                              Restricted Stock Plan
                               and Trust Agreement

                                    Article I
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                       ESTABLISHMENT OF THE PLAN AND TRUST

         1.01 Roebling Bank ("Savings  Bank") hereby  establishes the Restricted
Stock Plan (the "Plan") and Trust (the  "Trust")  upon the terms and  conditions
hereinafter  stated  in this  Restricted  Stock  Plan and Trust  Agreement  (the
"Agreement").

         1.02 The Trustee hereby accepts this Trust and agrees to hold the Trust
assets  existing on the date of this  Agreement and all additions and accretions
thereto upon the terms and conditions hereinafter stated.

                                   Article II
                                   ----------

                               PURPOSE OF THE PLAN

         2.01 The  purpose of the Plan is to reward and to retain  personnel  of
experience and ability in key positions of responsibility  with the Savings Bank
and its  subsidiaries,  by providing  such personnel of the Savings Bank and its
subsidiaries  with an equity  interest in the Savings Bank as  compensation  for
their prior and anticipated future professional contributions and service to the
Savings Bank and its subsidiaries.

                                   Article III
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                                   DEFINITIONS

         The following  words and phrases when used in this Plan with an initial
capital letter,  unless the context clearly indicates otherwise,  shall have the
meaning as set forth below.  Wherever  appropriate,  the masculine pronoun shall
include the feminine pronoun and the singular shall include the plural.

         3.01  "Beneficiary"  means the  person  or  persons  designated  by the
Participant to receive any benefits  payable under the Plan in the event of such
Participant's  death.  Such person or persons  shall be designated in writing on
forms provided for this purpose by the Committee and may be changed from time to
time by similar  written  notice to the  Committee.  In the absence of a written
designation,  the Beneficiary  shall be the  Participant's  surviving spouse, if
any, or if none, the Participant's estate.

         3.02 "Board"  means the Board of Directors of the Savings  Bank, or any
successor corporation thereto.

         3.03  "Cause"  means the  personal  dishonesty,  incompetence,  willful
misconduct,  breach of fiduciary duty involving  personal  profits,  intentional
failure to perform stated duties,  willful violation of a material  provision of
any law, rule or regulation (other than traffic violations and similar offense),
or a material  violation of a final  cease-and-desist  order or any other action
which  results  in a  substantial  financial  loss  to the  Savings  Bank or its
Subsidiaries.

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         3.04 "Change in Control" shall mean: (i) the sale of all, or a material
portion,  of the  assets  of the  Parent or  Savings  Bank;  (ii) the  merger or
recapitalization of the Parent or the Savings Bank whereby the Parent or Savings
Bank is not the  surviving  entity;  (iii) a change in  control of the Parent or
Savings  Bank,  as  otherwise  defined  or  determined  by the  Office of Thrift
Supervision  ("OTS") or regulations  promulgated by it; or (iv) the acquisition,
directly or indirectly,  of the beneficial ownership (within the meaning of that
term as it is  used  in  Section  13(d)  of the  1934  Act  and  the  rules  and
regulations  promulgated thereunder) of twenty-five percent (25%) or more of the
outstanding  voting  securities  of the  Parent or Savings  Bank by any  person,
trust,  entity or group.  This  limitation  shall not apply to the  purchase  of
shares of up to 25% of any class of  securities of the Parent or Savings Bank by
a  tax-qualified  employee  stock benefit plan.  The term "person"  refers to an
individual or a corporation,  partnership,  trust,  association,  joint venture,
pool, syndicate, sole proprietorship,  unincorporated  organization or any other
form of entity not specifically  listed herein. The decision of the Committee as
to whether a Change in Control has occurred shall be conclusive  and binding.  A
Change in Control  shall not  include a  transaction  whereby a Parent is formed
which  shall be the  owner  of 100% of the  stock  of the  Savings  Bank and the
stockholders of Parent after the transaction are the same as the stockholders of
the Savings Bank prior to the  transaction,  or a transaction  whereby  Roebling
Financial  Corp.,  MHC shall  merge  into the  Savings  Bank and a new Parent is
formed.

         3.05  "Committee"  means the Board of  Directors of Savings Bank or the
Restricted  Stock Plan  Committee  appointed  by the Board of  Directors  of the
Savings Bank pursuant to Article IV hereof.

         3.06  "Common  Stock"  means  shares of the common stock of the Savings
Bank or any successor corporation or Parent thereto.

         3.07 "Conversion"  means the effective date of the stock charter of the
Savings Bank.

         3.08     "Director" means a member of the Board of the Savings Bank.

         3.09 "Director Emeritus" means a person serving as a director emeritus,
advisory  director,  consulting  director,  or other similar  position as may be
appointed  by the Board of Directors of the Savings Bank or any Parent from time
to time.

         3.10 "Disability" means any physical or mental impairment which renders
the  Participant  incapable of  continuing  in the  employment or service of the
Savings Bank in his current capacity as determined by the Committee.

         3.11 "Employee" means any person who is employed by the Savings Bank or
a Subsidiary.

         3.12  "Effective  Date" shall mean the date of stockholder  approval of
the Plan by the stockholders of the Savings Bank.

         3.13 "Parent" shall mean a stock  corporation which may be formed after
the Effective Date which shall own 100% of the stock of the Savings Bank.

         3.14 "Participant" means an Employee, Director or Director Emeritus who
receives a Plan Share Award under the Plan.

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         3.15 "Plan Shares" means shares of Common Stock held in the Trust which
are awarded or issuable to a Participant pursuant to the Plan.

         3.16  "Plan  Share  Award"  or  "Award"  means  a  right  granted  to a
Participant under this Plan to earn or to receive Plan Shares.

         3.17 "Plan Share  Reserve" means the shares of Common Stock held by the
Trust pursuant to Sections 5.03 and 5.04.

         3.18 "Retirement" means the termination of service in all capacities as
an Employee,  Director and Director  Emeritus  following  attainment of not less
than age 55 and  completion of not less than ten years of Service to the Savings
Bank.  Service to the Savings Bank rendered prior to the Effective Date shall be
recognized in  determining  eligibility to meet the  requirements  of Retirement
under the Plan.

         3.19 "Savings Bank" means Roebling Bank, and any successor  corporation
thereto.

         3.20 "Subsidiary"  means those  subsidiaries of the Savings Bank which,
with the consent of the Board, agree to participate in this Plan.

         3.21  "Trustee" or "Trustee  Committee"  means that person(s) or entity
nominated by the Committee  and approved by the Board  pursuant to Sections 4.01
and 4.02 to hold  legal  title to the Plan  assets  for the  purposes  set forth
herein.

                                   Article IV
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                           ADMINISTRATION OF THE PLAN

         4.01  Role  of the  Committee.  The  Plan  shall  be  administered  and
interpreted  by the  Board  of  Directors  of the  Savings  Bank or a  Committee
appointed by said Board,  which shall consist of not less than two  non-employee
members of the Board, which shall have all of the powers allocated to it in this
and other  sections  of the Plan.  All  persons  designated  as  members  of the
Committee  shall be  "Non-Employee  Directors"  within the meaning of Rule 16b-3
under  the  Securities  Exchange  Act of 1934,  as  amended  ("1934  Act").  The
interpretation  and  construction by the Committee of any provisions of the Plan
or of any Plan Share Award  granted  hereunder  shall be final and binding.  The
Committee  shall act by vote or written  consent of a majority  of its  members.
Subject to the express provisions and limitations of the Plan, the Committee may
adopt such rules,  regulations  and procedures as it deems  appropriate  for the
conduct of its affairs.  The  Committee  shall report its actions and  decisions
with respect to the Plan to the Board at appropriate times, but in no event less
than one time per calendar year. The Committee  shall recommend to the Board one
or more persons or entity to act as Trustee in accordance  with the provision of
this Plan and Trust and the terms of Article VIII hereof.

         4.02 Role of the Board.  The members of the  Committee  and the Trustee
shall be  appointed or approved by, and will serve at the pleasure of the Board.
The Board may in its  discretion  from time to time remove  members from, or add
members to, the Committee,  and may remove,  replace or add Trustees.  The Board
shall have all of the powers  allocated to it in this and other  sections of the
Plan,  may take any action under or with respect to the Plan which the Committee
is authorized to take,  and may reverse or override any action taken or decision
made by the Committee under or with respect to the Plan,

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provided,  however,  that the Board may not revoke any Plan Share Award  already
made except as provided in Section 7.01(b) herein.

         4.03 Limitation on Liability.  No member of the Board, the Committee or
the  Trustee  shall be liable  for any  determination  made in good  faith  with
respect to the Plan or any Plan Share Awards granted.  If a member of the Board,
Committee or any Trustee is a party or is  threatened  to be made a party to any
threatened,  pending or completed  action,  suit or  proceeding,  whether civil,
criminal, administrative or investigative, by any reason of anything done or not
done by him in such capacity under or with respect to the Plan, the Savings Bank
shall  indemnify  such member  against  expenses  (including  attorney's  fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred
by him or her in  connection  with such action,  suit or proceeding if he or she
acted in good faith and in a manner he or she  reasonably  believed to be in the
best interests of the Savings Bank and its Subsidiaries and, with respect to any
criminal  action or proceeding,  had no reasonable  cause to believe his conduct
was unlawful. Notwithstanding anything herein to the contrary, in no event shall
the Savings Bank take any actions with respect to this Section 4.03 which is not
in compliance with the  limitations or requirements  set forth by regulations of
the Federal Deposit Insurance  Corporation or the Department,  as may be amended
from time to time.

                                    Article V
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                        CONTRIBUTIONS; PLAN SHARE RESERVE

         5.01 Amount and Timing of Contributions.  The Board of Directors of the
Savings  Bank  shall  determine  the  amounts  (or the method of  computing  the
amounts) to be  contributed by the Savings Bank to the Trust  established  under
this  Plan.  Such  amounts  shall  be  paid  to  the  Trustee  at  the  time  of
contribution.  No contributions to the Trust by Participants  shall be permitted
except with respect to amounts necessary to meet tax withholding obligations.

         5.02  Initial  Investment.  Any  funds  held  by  the  Trust  prior  to
investment  in the  Common  Stock  shall  be  invested  by the  Trustee  in such
interest-bearing  account or accounts at the Savings  Bank as the Trustee  shall
determine to be appropriate.

         5.03  Investment  of Trust  Assets.  Following  approval of the Plan by
stockholders of the Savings Bank and receipt of any other  necessary  regulatory
approvals,  the Trust shall  purchase  Common  Stock in an amount equal to up to
100% of the Trust's  assets,  after  providing for any required  withholding  as
needed for tax purposes,  provided,  however,  that the Trust shall not purchase
more than 7,838 shares of Common Stock,  representing 4% of the aggregate shares
of Common Stock issued by the Savings Bank in the  Conversion  to parties  other
than Roebling Financial Corp., M.H.C.  ("MHC").  The Trustee may purchase shares
of  Common  Stock  in the open  market  or,  in the  alternative,  may  purchase
authorized but unissued  shares of the Common Stock or treasury  shares from the
Savings Bank sufficient to fund the Plan Share Reserve.

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         5.04 Effect of  Allocations,  Returns and  Forfeitures  Upon Plan Share
Reserves. Upon the allocation of Plan Share Awards under Sections 6.02 and 6.05,
or the  decision of the  Committee  to return Plan Shares to the Savings Bank or
the  Parent,  the Plan  Share  Reserve  shall be reduced by the number of Shares
subject to the Awards so allocated or returned.  Any Shares  subject to an Award
which are not earned  because  of  forfeiture  by the  Participant  pursuant  to
Section 7.01 shall be added to the Plan Share Reserve.

                                   Article VI
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                            ELIGIBILITY; ALLOCATIONS

         6.01  Eligibility.  Employees  and  Directors  Emeritus are eligible to
receive Plan Share Awards within the sole discretion of the Committee. Directors
who are not  otherwise  Employees  shall  receive Plan Share Awards  pursuant to
Section 6.05.

         6.02  Allocations.  The Committee will determine which of the Employees
will be  granted  Plan Share  Awards  and the  number of Shares  covered by each
Award,  provided,  however, that in no event shall any Awards be made which will
violate the Charter or Bylaws of the Savings Bank or its Parent or  Subsidiaries
or any applicable  federal or state law or  regulation.  In the event Shares are
forfeited for any reason or additional Shares are purchased by the Trustee,  the
Committee  may,  from time to time,  determine  which of the  Employees  will be
granted  Plan Share  Awards to be awarded from  forfeited  Shares.  In selecting
those Employees and Directors Emeritus to whom Plan Share Awards will be granted
and the number of shares  covered by such Awards,  the Committee  shall consider
the prior and anticipated future position,  duties and  responsibilities  of the
Employees,  the value of their  prior and  anticipated  future  services  to the
Savings Bank and its Subsidiaries,  and any other factors the Committee may deem
relevant.  All actions by the  Committee  shall be deemed  final,  except to the
extent  that such  actions are  revoked by the Board.  Notwithstanding  anything
herein to the  contrary,  in no event shall any  Participant  receive Plan Share
Awards in excess of 25% of the aggregate Plan Shares authorized under the Plan.

         6.03  Form  of  Allocation.   As  promptly  as   practicable   after  a
determination is made pursuant to Section 6.02 or Section 6.05 that a Plan Share
Award is to be made,  the Committee  shall notify the  Participant in writing of
the grant of the Award,  the number of Plan Shares covered by the Award, and the
terms upon which the Plan Shares subject to the award may be earned. The date on
which the Committee makes its award  determination  or the date the Committee so
notifies the Participant shall be considered the date of grant of the Plan Share
Awards as determined by the Committee.  The Committee shall maintain  records as
to all grants of Plan Share Awards under the Plan.

         6.04 Allocations Not Required. Notwithstanding anything to the contrary
at Sections 6.01,  6.02 or 6.05, no Employee shall have any right or entitlement
to  receive  a Plan  Share  Award  hereunder,  such  Awards  being  at the  sole
discretion of the  Committee  and the Board,  nor shall the Employees as a group
have such a right.  The Committee may, with the approval of the Board (or, if so
directed by the Board)  return all Common Stock in the Plan Share Reserve to the
Savings Bank at any time, and cease issuing Plan Share Awards.

         6.05  Awards  to  Directors.  Notwithstanding  anything  herein  to the
contrary,  upon the  Effective  Date, a Plan Share Award  consisting of 627 Plan
Shares  shall be  awarded  to each  Director  of the  Savings  Bank  that is not
otherwise an Employee. Such Plan Share Award shall be earned and non-forfeitable
at

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the rate of 20% as of the date of  stockholder  approval,  and an additional 20%
following each of the next four successive  years during such periods of service
as a Director  or  Director  Emeritus.  Further,  such Plan Share Award shall be
immediately  100%  earned  and  non-forfeitable  in  the  event  of  the  death,
Disability or Retirement of such Director or Director Emeritus, or upon a Change
in Control of the Savings Bank or Parent. Subsequent to the Effective Date, Plan
Share  Awards may be awarded to newly  elected  or  appointed  Directors  of the
Savings Bank by the Committee,  provided that total Plan Share Awards granted to
non-employee  Directors  of the  Savings  Bank shall not exceed 56% of the total
Plan Share Reserve in the aggregate under the Plan or 8% of the total Plan Share
Reserve to any individual non-employee Director.

                                   Article VII
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         EARNINGS AND DISTRIBUTION OF PLAN SHARES; VOTING RIGHTS

         7.01     Earnings Plan Shares; Forfeitures.

         (a) General Rules.  Unless the Committee shall  specifically  states to
the contrary at the time a Plan Share Award is granted,  Plan Shares  subject to
an Award shall be earned and  non-forfeitable  by a  Participant  at the rate of
one-fifth  of such Award as of the date of the  granting of such  Award,  and an
additional one-fifth following each of the next four successive years;  provided
that such Participant remains an Employee, Director, or Director Emeritus during
such period.

         (b) Revocation for Misconduct.  Notwithstanding  anything herein to the
contrary,  the Board  shall,  by  resolution,  immediately  revoke,  rescind and
terminate any Plan Share Award,  or portion  thereof,  previously  awarded under
this Plan, to the extent Plan Shares have not been  delivered  thereunder to the
Participant,  whether or not yet  earned,  in the case of a  Participant  who is
discharged  from the employ or service of the Savings Bank or a  Subsidiary  for
Cause, or who is discovered  after  termination of employment or service to have
engaged  in  conduct  that  would  have  justified   termination  for  Cause.  A
determination of Cause shall be made by the Board within its sole discretion.

         (c) Exception for Terminations Due to Death,  Disability or Retirement.
Notwithstanding  the general rule contained in Section  7.01(a) above,  all Plan
Shares subject to a Plan Share Award held by a Participant  whose  employment or
service  with  the  Savings  Bank  or a  Subsidiary  terminates  due  to  death,
Disability or Retirement,  shall be deemed earned and  nonforfeitable  as of the
Participant's  last date of  employment  or  service  with the  Savings  Bank or
Subsidiary and shall be distributed as soon as practicable thereafter.

         (d)   Exception   for   Termination   after  a   Change   in   Control.
Notwithstanding  the general  rule  contained  in Section  7.01 above,  all Plan
Shares subject to a Plan Share Award held by a Participant shall be deemed to be
immediately 100% earned and  non-forfeitable in the event of a Change in Control
of the Parent or Savings Bank and shall be  distributed  as soon as  practicable
thereafter.

         7.02 Accrual and Payment of Dividends.  A holder of a Plan Share Award,
whether  or not 100%  earned and  non-forfeitable,  shall  also be  entitled  to
receive an amount equal to any cash dividends  declared and paid with respect to
shares of Common Stock represented by such Plan Share Award between the date the
relevant Plan Share Award was granted to such  Participant and the date the Plan
Shares  are  distributed.  Such  cash  dividend  amounts  shall  be paid to such
Participant,  less  applicable  income  tax

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withholding,  within 30 days of the dividend  payment date  attributable to such
dividend  payable on the  Common  Stock.  Such  payment  shall  also  include an
appropriate amount of earnings,  if any, of the Trust assets with respect to any
cash dividends so distributed.

         7.03     Distribution of Plan Shares.

         (a)  Timing of  Distributions:  General  Rule.  Except as  provided  in
Subsections  (d)  and  (e)  below,  Plan  Shares  shall  be  distributed  to the
Participant or his Beneficiary, as the case may be, as soon as practicable after
they  have  been   earned.   No   fractional   shares   shall  be   distributed.
Notwithstanding  anything  herein  to the  contrary,  at the  discretion  of the
Committee,  Plan  Shares  may be  distributed  prior to such  Shares  being 100%
earned,  provided  that such Plan  Shares  shall  contain a  restrictive  legend
detailing the applicable limitations of such shares with respect to transfer and
forfeiture.

         (b) Form of  Distribution.  All Plan Shares,  together  with any shares
representing stock dividends,  shall be distributed in the form of Common Stock.
One share of Common  Stock shall be given for each Plan Share  earned.  Payments
representing  cash  dividends  (and  earnings  thereon)  shall  be made in cash.
Notwithstanding  anything  within  the Plan to the  contrary,  upon a Change  in
Control  whereby  substantially  all of the Common Stock of the Company shall be
acquired for cash, all Plan Shares  associated with Plan Share Awards,  together
with any shares representing stock dividends  associated with Plan Share Awards,
shall  be,  at the  sole  discretion  of the  Committee,  distributed  as of the
effective  date of  such  Change  in  Control,  or as  soon as  administratively
feasible thereafter,  in the form of cash equal to the consideration received in
exchange for such Common Stock represented by such Plan Shares.

         (c)  Withholding.   The  Trustee  may  withhold  from  any  payment  or
distribution made under this Plan sufficient amounts of cash or shares of Common
Stock necessary to cover any applicable withholding and employment taxes, and if
the amount of such payment or distribution  is not  sufficient,  the Trustee may
require the Participant or Beneficiary to pay to the Trustee the amount required
to be  withheld in taxes as a  condition  of  delivering  the Plan  Shares.  The
Trustee shall pay over to the Parent,  Savings Bank or Subsidiary  which employs
or  employed  such  Participant  any such  amount  withheld  from or paid by the
Participant or Beneficiary.

         (d) Timing: Exception for 10% Shareholders.  Notwithstanding Subsection
(a) above,  no Plan  Shares may be  distributed  prior to the date which is five
years from the effective date of the Conversion to the extent the Participant or
Beneficiary,  as the case may be,  would  after  receipt  of such  Shares own in
excess of ten percent (10%) of the issued and outstanding shares of Common Stock
held by parties other than the MHC, unless such action is approved in advance by
a majority vote of  disinterested  directors of the Board of the Savings Bank or
the Parent.  Any Plan  Shares  remaining  undistributed  solely by reason of the
operation of this  Subsection (d) shall be distributed to the Participant or his
Beneficiary  on the date  which is five  years  from the  effective  date of the
Conversion.

         (e)  Regulatory  Exceptions.  No  Plan  Shares  shall  be  distributed,
however,  unless and until all of the  requirements  of all  applicable  law and
regulation  shall  have been  fully  complied  with,  including  the  receipt of
approval of the Plan by the  stockholders  of the Savings Bank by such vote,  if
any, as may be required by applicable  law and  regulations as determined by the
Board.

         7.04 Voting of Plan Shares.  A Participant  shall be entitled to direct
the Trustee as to the voting of any Plan Shares which are associated with a Plan
Share Award, once such awards are earned and  non-

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forfeitable,  subject to rules and procedures  adopted by the Committee for this
purpose.  All shares of Common Stock held by the Trust as to which  Participants
are not  entitled to direct,  or have not  directed,  the voting of such Shares,
shall be voted by the Trustee as directed by the Committee.

                                  Article VIII
                                  ------------

                                      TRUST

         8.01 Trust.  The Trustee shall receive,  hold,  administer,  invest and
make  distributions  and  disbursements  from the Trust in  accordance  with the
provisions  of  the  Plan  and  Trust  and  the  applicable  directions,  rules,
regulations,  procedures and policies  established by the Committee  pursuant to
the Plan.

         8.02  Management  of Trust.  It is the intention of this Plan and Trust
that the Trustee shall have complete  authority and  discretion  with respect to
the management,  control and investment of the Trust, and that the Trustee shall
invest all assets of the Trust, except those attributable to cash dividends paid
with respect to Plan Shares not held in the Plan Share Reserve,  in Common Stock
to the  fullest  extent  practicable,  except  to the  extent  that the  Trustee
determines  that the holding of monies in cash or cash  equivalents is necessary
to meet the obligations of the Trust. In performing  their duties,  the Trustees
shall have the power to do all things and  execute  such  instruments  as may be
deemed necessary or proper, including the following powers:

         (a) To invest up to one hundred  percent  (100%) of all Trust assets in
         the Common  Stock  without  regard to any law now or hereafter in force
         limiting investments for Trustees or other fiduciaries.  The investment
         authorized  herein may constitute the only investment of the Trust, and
         in making such investment, the Trustee is authorized to purchase Common
         Stock from the Savings Bank or from any other  source,  and such Common
         Stock so  purchased  may be  outstanding,  newly  issued,  or  treasury
         shares.

         (b) To invest any Trust  assets not  otherwise  invested in  accordance
         with (a) above in such deposit  accounts,  and  certificates of deposit
         (including those issued by the Savings Bank), obligations of the United
         States government or its agencies or such other investments as shall be
         considered the equivalent of cash.

         (c) To sell,  exchange or otherwise dispose of any property at any time
         held or acquired by the Trust.

         (d) To cause stocks,  bonds or other securities to be registered in the
         name of a nominee,  without the addition of words  indicating that such
         security  is an asset  of the  Trust  (but  accurate  records  shall be
         maintained showing that such security is an asset of the Trust).

         (e) To hold cash  without  interest  in such  amounts  as may be in the
         opinion of the Trustee  reasonable for the proper operation of the Plan
         and Trust.

         (f) To employ brokers, agents, custodians, consultants and accountants.

         (g) To hire  counsel to render  advice  with  respect to their  rights,
         duties and  obligations  hereunder,  and such other  legal  services or
         representation  as they  may  deem  desirable.

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         (h) To hold  funds  and  securities  representing  the  amounts  to be
         distributed to a Participant or his  Beneficiary as a consequence of a
         dispute as to the disposition thereof, whether in a segregated account
         or held in common with other assets.

         (i) As may be  directed  by the  Committee  or the Board  from time to
         time,  the Trustee  shall pay to the Saving Bank earnings of the Trust
         attributable to the Plan Share Reserve.

         Notwithstanding  anything herein contained to the contrary, the Trustee
shall not be required to make any  inventory,  appraisal or settlement or report
to any court,  or to secure any order of a court for the  exercise  of any power
herein contained, or to maintain bond.

         8.03 Records and  Accounts.  The Trustee  shall  maintain  accurate and
detailed records and accounts of all  transactions of the Trust,  which shall be
available at all reasonable  times for inspection by any legally entitled person
or entity  to the  extent  required  by  applicable  law,  or any  other  person
determined by the Committee.

         8.04  Earnings.  All  earnings,  gains and losses with respect to Trust
assets shall be allocated in accordance with a reasonable  procedure  adopted by
the  Committee,  to  bookkeeping  accounts  for  Participants  or to the general
account of the Trust,  depending  on the  nature  and  allocation  of the assets
generating such earnings, gains and losses. In particular,  any earnings on cash
dividends  received with respect to shares of Common Stock shall be allocated to
accounts for  Participants,  except to the extent that such cash  dividends  are
distributed to Participants,  if such shares are the subject of outstanding Plan
Share Awards, or, otherwise to the Plan Share Reserve.

         8.05  Expenses.  All costs and expenses  incurred in the  operation and
administration of this Plan,  including those incurred by the Trustee,  shall be
paid by the Savings Bank.

         8.06  Indemnification.  Subject to the  requirements and limitations of
applicable  laws  and  regulations,  the  Parent  and  the  Savings  Bank  shall
indemnify, defend and hold the Trustee harmless against all claims, expenses and
liabilities  arising out of or related to the exercise of the  Trustee's  powers
and the  discharge  of their duties  hereunder,  unless the same shall be due to
their gross negligence or willful misconduct.

                                   Article IX
                                   ----------

                                  MISCELLANEOUS

         9.01  Adjustments  for Capital  Changes.  The aggregate  number of Plan
Shares  available for issuance  pursuant to the Plan Share Awards and the number
of  Shares  to which  any Plan  Share  Award  relates  shall be  proportionately
adjusted for any increase or decrease in the total number of outstanding  shares
of Common Stock issued  subsequent to the effective  date of the Plan  resulting
from any  split,  subdivision  or  consolidation  of the  Common  Stock or other
capital adjustment, change or exchange of the Common Stock, or other increase or
decrease in the number or kind of shares effected  without receipt or payment of
consideration by the Savings Bank.

         9.02  Amendment  and  Termination  of  the  Plan.  The  Board  may,  by
resolution,  at any time,  amend or  terminate  the Plan.  The power to amend or
terminate  the Plan shall  include  the power to direct

                                       9
<PAGE>

the Trustee to return to the  Savings  Bank or the Parent all or any part of the
assets of the  Trust,  including  shares of Common  Stock held in the Plan Share
Reserve,  as well as shares of Common  Stock and other  assets  subject  to Plan
Share  Awards  which have not yet been earned by the  Participants  to whom they
have been  awarded.  However,  the  termination  of the Trust shall not affect a
Participant's  right to earn Plan Share Awards and to the distribution of Common
Stock relating thereto, including earnings thereon, in accordance with the terms
of this Plan and the grant by the Committee or the Board.

         9.03 Nontransferable. Plan Share Awards and rights to Plan Shares shall
not  be  transferable  by  a  Participant,   and  during  the  lifetime  of  the
Participant,  Plan Shares may only be earned by and paid to the  Participant who
was notified in writing of the Award by the Committee  pursuant to Section 6.03.
No Participant or Beneficiary  shall have any right in or claim to any assets of
the Plan or Trust,  nor shall the Parent,  Savings  Bank,  or any  Subsidiary be
subject to any claim for benefits hereunder.

         9.04 No  Employment  Rights.  Neither  the Plan nor any grant of a Plan
Share Award or Plan Shares  hereunder  nor any action taken by the Trustee,  the
Committee  or the Board in  connection  with the Plan  shall  create  any right,
either  express or implied,  on the part of any  Participant  to continue in the
employ or service of the Savings Bank, or a Subsidiary thereof.

         9.05 Voting and Dividend Rights.  No Participant  shall have any voting
or dividend rights of a stockholder with respect to any Plan Shares covered by a
Plan Share Award,  except as expressly provided in Sections 7.02 and 7.04 above,
prior to the time said Plan Shares are actually distributed to such Participant.

         9.06  Governing  Law.  The Plan and  Trust  shall  be  governed  by and
construed  under the laws of the State of New Jersey,  except to the extent that
Federal Law shall be deemed applicable.

         9.07     Effective Date.  The Plan shall be effective as of the date of
approval of the Plan by stockholders of the Savings Bank.

         9.08 Term of Plan.  This Plan shall  remain in effect until the earlier
of (i)  termination  by the Board,  (ii) the  distribution  of all assets of the
Trust, or (iii) 21 years from the Effective Date.  Termination of the Plan shall
not effect any Plan Share Awards previously granted,  and such Plan Share Awards
shall  remain  valid and in effect  until they have been earned and paid,  or by
their terms expire or are forfeited.

         9.09 Tax Status of Trust.  It is  intended  that the Trust  established
hereby  shall be  treated  as a  grantor  trust of the  Savings  Bank  under the
provisions  of Section  671 et seq. of the  Internal  Revenue  Code of 1986,  as
amended, as the same may be amended from time to time.

                                       10<PAGE>

October 22, 1999

Mr. Jesse Faber
1 Nutting Place
West Caldwell, NJ 07006

Re:      AUDIO BOOK CLUB, INC. (the "Company")

Dear Jesse:

This letter will cover the period of your employment with the Company from
November 1, 1999 until October 31, 2000 (the "Employment Term").

In this regard, the Company will pay you a base salary, commencing November 1,
1999 of $165,000 (One Hundred and Sixty Five Thousand) per annum. Such salary
will be paid monthly in arrears on the last day of the month at the rate of
$13,750 per month.

In addition to this base salary, you will receive a bonus, provided you are
still employed by the Company at the conclusion of the Employment Term, of
$55,000 (Fifty Five Thousand Dollars) to be paid to you on October 31, 2000.

You will receive options to acquire 10,000 shares of common stock in the Company
pursuant to and in accordance with the Company's stock option plan. Such options
shall vest on October 31, 2000; provided, however, that such options shall
terminate and be canceled if you are no longer employed by the Company prior to
the date such options vest. Such options shall be exercisable at a price per
share equal to $12.00 and will be exercisable for a period of five years
commencing immediately upon vesting, provided, however, if you are no longer
employed by the Company, such options shall expire on the earlier of 30 days
following the date you are no longer employed by the Company or five years from
the date such options initially became exercisable.

You will also receive four weeks paid vacation during the Employment Term.

You acknowledge and agree that: all mailing lists; customer, member and prospect
names; licensor arrangements; front end and back end marketing performance;
financial statements; operating systems, data base and other computer software
specific to the Company; and all information which is known by you to be subject
to a confidentiality agreement or obligation of confidentiality, even without a
confidentiality agreement between the Company and another person or party, shall
be maintained by you in a confidential manner and you agree that you will not
use such information to the detriment of the Company or disclose such
information to any third party, except as may be necessary in the course of
performing your job responsibilities. You further agree that your obligations of
confidentiality with respect to such information shall continue for five years
after you cease to be employed by the Company.

<PAGE>

You acknowledge that this letter and the May 1, 1997 employment letter between
the Company and you and the Employee Handbook embodies and constitutes the
entire understanding between the Company and you with respect to your employment
by the Company and such employment arrangement may not be modified except by a
writing signed by the Company and you.

Very truly yours,

AUDIO BOOK CLUB, INC.

/s/ Michael Herrick
----------------------------------
Michael Herrick, COO

AGREED AND ACCEPTED this 22nd
day of October, 1999

/s/ Jesse Faber
----------------------------------
Jesse Faber

Enclosure
cc:   Norton Herrick

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