Document:

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                                                                    EXHIBIT 10.3

                             INVESTORS SAVINGS BANK
                            DIRECTOR RETIREMENT PLAN

      ARTICLE I. PURPOSE.

      The purpose of the Director Retirement Plan (the "Plan") is to recognize
the valuable services provided to the Investors Savings Bank (the "Bank") by its
directors and to assist in attracting new members to the Bank's Board of
Directors (the "Bank Board" or "Board") by providing directors with retirement
benefits under the terms and conditions set forth in the Plan. The Plan is
amended in a manner intended to comply with Section 409A of the Internal Revenue
Code (the "Code") and any regulations promulgated thereunder, and is amended to
also recognize the service provided by eligible directors to the Board of
Directors of Investors Bancorp, Inc. (the "Company" and the "Company Board").
For purposes of this Plan, a reference to "Board" shall refer equally to the
Bank Board and the Company Board unless the context otherwise requires or the
contrary is specifically set forth herein.

      ARTICLE II. ELIGIBILITY.

      (1) Any director (i) who is not an active employee of the Bank upon
retirement from Board service ("active employee" shall mean an employee of the
Bank as determined for purposes of the Bank's employee benefit plans), and (ii)
has provided at least ten years of cumulative periods of service, ("cumulative
periods of service" shall include all service as a director regardless of
whether such director was from time to time an active employee) and (iii)
retires from service on the Board on or after the effective date of the Plan and
(a) on or after attaining age 65, or (b) as a result of permanent and total
disability within the meaning of section 22(e)(3) of the Internal Revenue Code
of 1986, as amended ("Disability"), shall be eligible to participate in the
Plan.

      (2) For the purpose of determining cumulative service, service on the
board of directors of any entity which has merged into the Bank shall be treated
the same as service on the Board, and service of one or more months in a given
calendar year shall be credited as full year's service for the calendar year. In
addition, any director who, prior to becoming a director, had service to the
Bank as an employee or Counsel shall be deemed to have had cumulative service,
upon joining the Board, equal to his or her years of service as an employee or
Counsel. For purposes of this Plan, Counsel is defined as the individual of the
designated law firm attending Board meetings and so recorded in the minutes of
the Bank. In addition, service on the Bank's Board shall be credited for
purposes of determining service on the Company's Board.

      ARTICLE III. AMOUNT OF BENEFIT.

      Each eligible director shall receive as a retirement benefit the
applicable payments as follows:

      (1) RETIREMENT WITH 15 YEARS OF SERVICE. Upon retirement on or after
attaining age 65, with at least fifteen years of cumulative service, an eligible
director shall be entitled to receive

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an annual retirement benefit equal to the sum of 60% of the base amount of (i)
the annual retainer, and (ii) 13 times the regular meeting fee based on the
annual retainer and regular meeting fee in effect for the calendar year
immediately preceding said director's year of retirement. If the director also
served on the Company Board, the base amount in the previous sentence shall be
increased by (iii) the Company Board annual retainer, and (iv) 13 times the
regular meeting fee of the Company Board based on the Company Board annual
retainer and its regular meeting fee in effect for the calendar year immediately
preceding said director's year of retirement from the Board.

Notwithstanding the preceding sentence, an eligible director who retired from
the Bank's Board on or prior to March 1, 1997, shall be entitled to receive an
annual retirement benefit equal to 120% of the annual retainer that was in
effect for members of the Bank Board for the calendar year immediately preceding
said director's year of retirement. Notwithstanding the preceding sentence, an
eligible director who retired on or prior to March 1, 1997 shall be entitled to
receive an annual retirement benefit equal to 120% of the annual retainer that
as in effect for members of the Bank Board for the calendar year immediately
preceding said director's year of retirement.

      (2) RETIREMENT WITH LESS THAN 15 YEARS OF SERVICE. Upon retirement on or
after attaining age 65, with cumulative service less than fifteen years but
greater than or equal to ten years, an eligible director shall be entitled to
receive an annual retirement benefit equal to the sum of:

            (i) 40% of the sum of the base amount of (A) the annual retainer,
and (B) 13 times the regular Bank Board meeting fee, based on the annual
retainer and regular meeting fee in effect for the calendar year immediately
preceding said director's year of retirement; and, if the director also served
on the Company Board, the base amount shall be increased by (C) the Company
Board annual retainer, and (D) 13 times the regular meeting fee of the Company
Board based on the Company Board annual retainer and its regular meeting fee in
effect for the calendar year immediately preceding said director's year of
retirement from the Board; and

            (ii) a pro-rated percentage of 20% of the sum of the base amount of
(A) the annual retainer, and (B) 13 times the regular Bank Board meeting fee
based on the annual retainer and regular meeting fee in effect for the calendar
year immediately preceding said director's year of retirement; and, if the
director also served on the Company Board, the base amount shall be increased by
(C) the Company Board annual retainer, and (D) 13 times the regular meeting fee
of the Company Board based on the Company Board annual retainer and its regular
meeting fee in effect for the calendar year immediately preceding said
director's year of retirement from the Board. The pro-rated percentage shall be
a fraction, the numerator of which shall be the number of years of credited
service in excess of ten years (up to a maximum of five) and the denominator of
which shall be five.

      (3) RETIREMENT PRIOR TO MARCH 1, 1997. Notwithstanding anything contained
in Section (2) above, any director meeting the specifications of Article II and
who retired on or prior to March 1, 1997 shall be entitled to receive an annual
retirement benefit equal to the sum of:

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            (i) 80% of the annual retainer that was in effect for members of the
Bank Board for the calendar year immediately preceding said director's year of
retirement, and

            (ii) a pro-rated percentage of 40% of said annual retainer with the
numerator equal to the number of years of credited service in excess of ten
years (up to a maximum of five) and a denominator of five.

      (4) RETIREMENT DUE TO DISABILITY PRIOR TO AGE 65. Upon retirement prior to
attaining age 65 as a result of Disability, an eligible director shall be
entitled to receive an annual retirement benefit equal to the sum otherwise
determined under Sections 1, 2 or 3 of Article III, as applicable. For these
purposes, "Disability" shall mean total and permanent disability within the
meaning of the Social Security Act.

      (5) DEATH OF DIRECTOR PRIOR TO RETIREMENT. In the event a director,
otherwise eligible to retire in accordance with the provisions of Article II,
Section 1, dies prior to retirement, his or her spouse (for purposes of this
Plan the term spouse shall include a domestic partner living with a director,
provided the director has designated in writing such domestic partner, such
designation has not been revoked, and such domestic partner continues as the
domestic partner of the director at the time of death of the director) will be
entitled to receive benefit payments (the "Qualified Preretirement Survivor
Annuity"). This protection will be automatically provided with no requirement of
election on the director's part. Benefit payments to the director's spouse will
commence on the first day of the month following the director's death. The
amount of such payments will be equivalent to the amount payable to a director's
spouse in accordance with Article IV, Option (2).

      The effect of the Qualified Preretirement Survivor Annuity will be to
provide to his or her qualified spouse an amount equal to the amount the spouse
would have received had the Participant retired and received a retirement
Benefit in the form of a 100% joint and survivor annuity, as described in
Article IV, on the date of his or her death or earliest retirement age,
whichever is later.

      (6) RETIREMENT OF DIRECTOR FOLLOWING A CHANGE IN CONTROL. In the event of
a Director's termination of service to the Board in connection with or following
a Change in Control, a Director who has less than ten (10) years of cumulative
service on the Board will be deemed to have at least ten (10) years of
cumulative service for purposes of calculating a benefit hereunder. Such benefit
shall then be calculated in accordance with paragraph (2) of this Article III.
Alternatively, if a Director has 15 years of cumulative service or more, the
Directors benefit shall be calculated in accordance with paragraph (c) of this
Article III. For these purposes, a "Change in Control" is defined as (i) a
change in ownership of the Bank or the Company under paragraph (a) below, or
(ii) a change in effective control of the Bank or the Company under paragraph
(b) below, or (iii) a change in the ownership of a substantial portion of the
assets of the Bank or the Company under paragraph (c) below:

            (a) Change in Ownership of the Bank or the Company. A change in the
      ownership of the Bank or the Company shall occur on the date that any one
      person, or more than one person acting as a group (as defined in paragraph
      (b)), acquires ownership of stock of the corporation that, together with
      stock held by such person or group,

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      constitutes more than 50 percent of the total fair market value or total
      voting power of the stock of such corporation. However, if any one person
      or more than one person acting as a group, is considered to own more than
      50 percent of the total fair market value or total voting power of the
      stock of a corporation, the acquisition of additional stock by the same
      person or persons is not considered to cause a change in the ownership of
      the corporation (or to cause a change in the effective control of the
      corporation (within the meaning of paragraph (b) below). An increase in
      the percentage of stock owned by any one person, or persons acting as a
      group, as a result of a transaction in which the corporation acquires its
      stock in exchange for property will be treated as an acquisition of stock
      for purposes of this section. This paragraph (a) applies only when there
      is a transfer of stock of a corporation (or issuance of stock of a
      corporation) and stock in such corporation remains outstanding after the
      transaction.

            (b) Change in Effective Control of the Bank or the Company. A change
      in the effective control of the Bank or the Company shall occur on the
      date that either (i) any one person, or more than one person acting as a
      group (as determined below), acquires (or has acquired during the 12-month
      period ending on the date of the most recent acquisition by such person or
      persons) ownership of stock of the corporation possessing 35 percent or
      more of the total voting power of the stock of such corporation; or (ii) a
      majority of members of the corporation's board of directors is replaced
      during any 12-month period by directors whose appointment or election is
      not endorsed by a majority of the members of the corporation's board of
      directors prior to the date of the appointment or election, provided that
      for purposes of this paragraph (b)(ii), the term corporation refers solely
      to a corporation for which no other corporation is a majority shareholder.
      In the absence of an event described in paragraph (i) or (ii), a change in
      the effective control of a corporation will not have occurred. If any one
      person, or more than one person acting as a group, is considered to
      effectively control a corporation (within the meaning of this paragraph
      (b)), the acquisition of additional control of the corporation by the same
      person or persons is not considered to cause a change in the effective
      control of the corporation (or to cause a change in the ownership of the
      corporation within the meaning of paragraph (a)). Persons will not be
      considered to be acting as a group solely because they purchase or own
      stock of the same corporation at the same time, or as a result of the same
      public offering.

            (c) Change in Ownership of a Substantial Portion of the Bank's or
      the Company's Assets. A change in the ownership of a substantial portion
      of the Bank's or the Company's assets shall occur on the date that any one
      person, or more than one person acting as a group (as determined below),
      acquires (or has acquired during the 12-month period ending on the date of
      the most recent acquisition by such person or persons) assets from the
      corporation that have a total gross fair market value equal to or more
      than 40% of the total gross fair market value of all of the assets of the
      corporation immediately prior to such acquisition or acquisitions. For
      this purpose, gross fair market value means the value of the assets of the
      corporation, or the value of the assets being disposed of, determined
      without regard to any liabilities associated with such assets. There is no
      Change in Control event under this paragraph (c) when there is a transfer
      to

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      an entity that is controlled by the shareholders of the transferring
      corporation immediately after the transfer.

      Each of the sub-paragraphs (a) through (c) above shall be construed and
interpreted consistent with the requirements of Code Section 409A and any
Treasury regulations or other guidance issued thereunder.

      ARTICLE IV. MANNER OF PAYMENT.

      The retirement benefit shall consist of monthly payments in one of the
following three optional forms chosen pursuant to an irrevocable election by an
eligible director in writing prior to the later of December 31, 2005, or the
31st day after a director first becomes eligible to participate in the Plan,
but, in all cases, prior to the commencement of the payment of benefits:

      Option (1) - equal payments to the retired director computed as
one-twelfth of the benefit amount prescribed in Article III hereof, with benefit
payment commencing upon the first day of the month following retirement from the
Board and ending with the monthly payment due on the first day of the month in
which the director dies, or,

      Option (2) - a joint and survivor form of benefit of Actuarial Equivalent
value to Option (1) as of the director's retirement date, with benefit payment
commencing at such reduced amount upon the first of the month following
retirement from the Board and continuing for his or her lifetime, and payable at
50% of such reduced amount commencing on the first day of the month following
the director's death, to the director's spouse during the spouses lifetime, or,

      Option (3) - a joint and survivor form of benefit of Actuarial Equivalent
value to Option (1) as of the director's retirement date, with benefit payment
commencing at such reduced amount during the first of the month following
retirement from the Board and continuing for his or her lifetime, and payable at
100% of such reduced amount commencing on the first day of the month following
the director's death, to the director's spouse during the spouse's lifetime.

      For purposes of benefit payment Options (2) and (3), the death of the
director's spouse after benefit commencement to the director shall not affect
the reduced level of benefit payable thereafter to the director.

      For purposes of this section, "Actuarial Equivalent" means a benefit or
benefits which is of equal value as a benefit or benefits otherwise payable in a
different form under the Plan, when computed on the basis of mortality rates
determined according to the UP-1984 Mortality Table with an effective rate of
interest of 6% compounded annually; or such other rates of interest, mortality
and other actuarial components as the Bank may adopt from time to time by vote
of the Board. In the event that a director retires from the Bank Board but not
the Company Board or the Company Board but not the Bank Board, the payments to
such director upon retirement shall include only the amounts payable upon
retirement from the applicable board and shall not include payments relating to
retirement from the other Board until such actual retirement from the other
Board.

      Effective September 1, 1995, the rates of interest, mortality and other
actuarial components used to determine the "Actuarial Equivalent" will be the
same rates of interest,

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mortality and other actuarial components used in administering the Investors
Savings Bank Retirement Plan.

      The obligations of the Bank and the Company hereunder constitute merely
the promise of the Bank to make the payments provided for in this Plan. No
director, his or her spouse, or the estate of either of them shall have, by
reason of this Plan, any right, title or interest of any kind in or to any
property of the Bank or the Company. To the extent any director has a right to
receive payments under this Plan, such right shall be no greater than the right
of any unsecured general creditor of the Bank and/or the Company.

      ARTICLE V. BENEFIT CONDITIONS.

      Payment of benefits under the Plan are conditioned on (i) the eligible
director after retirement remaining a Director Emeritus in good standing
available with reasonable notice for consultation by the Bank and/or the
Company, as applicable, on matters pertinent to the Board's deliberations, (ii)
the eligible director after retirement not engaging in any business enterprise
which competes to a substantial degree with the Bank or the Company, without the
prior written consent of the Bank, and (iii) the eligible director or his or her
spouse not disclosing to anyone not legally entitled thereto any confidential
information relative to the business of the Bank. In the event of violation of
any of these provisions, all future benefit payments shall he canceled and
discontinued

      ARTICLE VI. GENERAL PROVISIONS.

      (1) The right to receive any payment under the Plan shall not be
transferable or assignable.

      (2) Benefit payments under the Plan shall be made from the general assets
of the Bank, and the Bank shall not be required to set aside funds for the
payment of its obligations under the Plan.

      (3) The Board and the Company Board, acting jointly, may at any time amend
or terminate the Plan, provided, that no amendment or termination shall impair
the rights of a director to receive upon retirement from the Board or the
Company Board those payments otherwise payable to said director, computed as if
he or she had chosen to retire on the day immediately preceding the date such of
amendment or termination. Notwithstanding anything to the contrary herein, in
the event that the Company has a Change in Control, the Company or its successor
may terminate the Plan, provided that all accrued benefits payable hereunder are
paid to each Participant within twelve months of the Plan's termination.

      (4) Nothing in the Plan shall be deemed to create any obligation on the
part of the Board or the Company Board to nominate any Director for re-election
by the Bank or the Company.

      (5) Any questions involving entitlement to payments under the Plan shall
be referred to the applicable Board for resolution. The determination of said
Board shall be conclusive as to any such questions. The Board may obtain such
advice or assistance as they deem appropriate from persons not serving on the
Board.

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      (6) The provisions of the Plan shall be construed, administered and
enforced according to the laws of the State of New Jersey.

      (7) This amendment is adopted following the enactment of Code Section 409A
and is intended to be construed consistent with the requirements of that
Section, the Treasury regulations and other guidance issued thereunder. If any
provision of the Plan shall be determined to be inconsistent therewith for any
reason, then the Plan shall be construed, to the maximum extent possible, to
give effect to such provision in a manner consistent with Code Section 409A, and
if such construction is not possible, as if such provision had never been
included. In the event that any of the provisions of the Plan or portion thereof
are held to be inoperative or invalid by any court of competent jurisdiction,
then (1) insofar as is reasonable, effect will be given to the intent manifested
in the provisions held to be inoperative, and (2) the invalidity and
enforceability of the remaining provisions will not be affected thereby.

      ARTICLE VII. EFFECTIVE DATE.

      The initial effective date of the Plan is October 1, 1990. The Plan has
been amended effective January 1, 1993, July 1, 1995 and September 1, 1995, and
restated in its entirety effective March 1, 1997, May 1, 2000 and further
amended effective January 28, 2003, and June 8, 2005.<PAGE>

                                                                    EXHIBIT 10.4

                             INVESTORS SAVINGS BANK
                      SUPPLEMENTAL ESOP AND RETIREMENT PLAN

1.    Background and Purpose

      Investors Savings Bank (the "Employer") hereby amends and restates,
      effective January 1, 2005, the Investors Savings Bank Supplemental
      Retirement Plan, and renames it the Supplemental ESOP and Retirement Plan
      (the "Plan"). The Plan is intended to provide supplemental benefits to
      replace the benefits that have been curtailed under the Investors Savings
      Bank Retirement Plan (the "Retirement Plan") and the Investors Savings
      Bank Employee Stock Ownership Plan (the "ESOP") due to the application of
      Sections 401(a)(17) and 415 of the Internal Revenue Code of 1986, as
      amended by the Omnibus Budget Reconciliation Act of 1993. The Plan, as
      amended and restated, is intended to comply with Internal Revenue Code
      ("Code") Section 409A and any regulatory or other guidance issued under
      such Section. The Plan is intended to be an unfunded plan of deferred
      compensation covering "a select group of highly compensated or management
      employees" of the Employer for purposes of the Employee Retirement Income
      Security Act of 1974, as amended ("ERISA").

2.    Definitions

      Where the following words and phrases appear in the Plan, they shall gave
      the respective meaning as set forth below unless the context clearly
      indicates the contrary.

      (a)   "Administrator" shall mean the Committee.

      (b)   "Active Participant" shall mean, a Participant of the ESOP who has
            satisfied the ESOP eligibility requirements and who has at least
            1,000 Hours of Service during the current ESOP plan year. However, a
            Participant shall not qualify as an Active Participant unless (i) he
            is in active employment with the Employer as of the last day of the
            ESOP plan year, or (ii) he is on a recognized absence, as defined in
            the ESOP, as of that date, or (iii) his employment terminated during
            the Plan Year by reason of disability (as defined in the ESOP),
            death, Early or Normal ESOP Retirement.

      (c)   "Board of Directors" shall mean the Board of Directors of the Bank.

      (d)   "Company" shall mean Investors Bancorp, Inc.

      (e)   "Early Retirement Date" shall mean, with respect to the ESOP,
            retirement on or after a Participant who participates in the ESOP
            attains age 55 and completes 10 years of employment with the Bank,
            its affiliates, Financial Assurance Services, or BF Asset Recovery
            Corporation. If the Participant terminates employment before
            satisfying the age requirement, but has satisfied the employment
            requirement, the Participant will be entitled to elect early
            retirement upon satisfaction of the age requirement. With respect to
            the Supplemental Retirement Plan Benefit, "Early Retirement Date"
            shall mean the first day of the month

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            coincident with or next following the date the employment of a
            Participant who participates in the Retirement Plan is terminated,
            if at such time, the Participant has not yet attained age 65 and is
            partially or fully vested in his benefits under the Retirement Plan.

      (f)   "ESOP Beneficiary" shall mean the person or persons who are
            designated by a Participant participating in the ESOP to receive
            benefits payable under the ESOP on the Participant's death. In the
            absence of any designation or if all the designated beneficiaries
            shall die before the Participant dies or shall die before all
            benefits payable under the ESOP have been paid, the Participant's
            ESOP Beneficiary shall be his surviving spouse (as that term is
            defined under the ESOP), if any, or his estate if he is not survived
            by a spouse. The Committee may rely upon the advice of the
            Participant's executor or administrator as to the identity of the
            Participant's spouse.

      (g)   "Committee" shall mean the Committee appointed by the Board of
            Directors to administer the Plan.

      (h)   "Normal Retirement Date" with respect to the Supplemental ESOP
            Benefit, shall mean the later of (i) the date on which a Participant
            attains age 65 and (ii) the 5th anniversary of the time a
            Participant commenced participation in the ESOP. With respect to the
            Supplemental Retirement Plan Benefit, shall mean the later of (i)
            the first day of the month coincident with or next following his
            65th Birthday, (ii) his actual retirement.

      (i)   "Participant" shall mean an employee of the Bank designated by the
            Executive Committee to participate in the Plan and who is eligible
            to participate in the Plan as a result of his or her benefits under
            the Retirement Plan and/or the ESOP being limited by the application
            of either Section 401(a)(17) or 415 of the Code.

      (j)   "Phantom Shares" shall mean the unit of measurement of a
            Participant's account hereunder denominated in hypothetical shares
            of the Company's Stock. On any measurement date, the Phantom Stock
            shall have a value equal to the fair market value of the Company's
            Stock on such date.

      (k)   "Plan Year" shall mean, generally, the fiscal year of the Company,
            provided, however, for purposes of determining allocations under the
            Supplemental ESOP portion of the Plan, "Plan Year" shall mean the
            twelve-month period commencing January 1 and ending December 31.

      (l)   "Specified Employee" shall mean a key employee who, at any time
            during the plan year, is (i) an officer of Investors Savings Bank
            having an annual compensation greater than $130,000 (as indexed),
            (ii) a 5-percent owner of Investors Savings Bank, or (iii) a
            1-percent owner of Investors Savings Bank having an annual
            compensation from Investors Savings Bank greater than $150,000.

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      (m)   "Stock" shall mean the common stock of Investors Bancorp, Inc., par
            value $.01 per share.

      (n)   "Supplemental ESOP" shall mean the portion of this Plan that
            provides a benefit to Participants that supplements the
            tax-qualified ESOP benefit of such person.

      (o)   "Supplemental ESOP Benefit" shall mean the benefit attributable to a
            Participant under the Supplemental ESOP.

      (p)   "Supplemental Retirement Plan" shall mean the portion of the Plan
            that provides a benefit to participants that supplements the benefit
            available to the Participant under the tax-qualified Retirement
            Plan.

      (q)   "Supplemental Retirement Plan Benefit" shall mean the benefit
            attributable to a Participant under the Supplemental Retirement
            Plan.

      (r)   "Unallocated Stock Fund" shall mean that portion of the ESOP trust
            fund consisting of the ESOP's holding of Stock which have been
            acquired in exchange for one or more Stock obligations and which
            have not yet been allocated to the ESOP participant's accounts in
            accordance with the ESOP terms.

3.    Participation

      The Committee may designate an employee as a Participant if he or she is a
      Participant in the Retirement Plan and/or the ESOP and his or her benefits
      thereunder are limited by the application of either Section 401(a)(17) or
      415 of the Code.

4.    Benefits

      (a)   Benefits Attributable to Participation in the Retirement Plan

      A Participant's accrued benefit under the Plan that is attributable to his
      or her participation in the Retirement Plan shall be determined as
      follows:

            (i) For each employee who is a Participant in the Plan, his or her
      accrued Supplemental Retirement Plan Benefit at a specified date shall be
      equal to the excess, if any, of (1) the vested accrued benefit to which he
      or she would then be entitled under the Retirement Plan determined without
      regard to the compensation limitation of Section 401(a)(17) of the
      Internal Revenue Code of 1986, as amended, and without regard to the
      limitations of Section 415 of such Code, over (2) the vested accrued
      benefit to which the Participant is then entitled under the Retirement
      Plan (as from time to time amended) which takes into account the limits of
      Section 401(a)(17) and Section 415 of the Code.

            (ii) A Participant's accrued Supplemental Retirement Plan Benefits
      under this Plan shall vest in accordance with the vesting schedule under
      the Retirement Plan and shall be payable in accordance with the
      Participant's distribution election made in accordance with the
      requirements of Section 4(a)(iii) hereof. A Participant's Supplemental

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      Retirement Plan Benefit shall be calculated using the relevant actuarial
      assumptions applicable to the Retirement Plan.

            (iii) Prior to the later of December 31, 2005, or the 30th day after
      a Participant first becomes eligible to participate in the Plan, but, in
      all cases, prior to the commencement of the payment of such Supplemental
      Retirement Plan Benefits, a Participant shall be required to complete a
      Distribution Election Form for his Supplemental Retirement Plan Benefit,
      attached hereto as Exhibit A. Such Distribution Election Form shall
      provide the Participant, as of the date of the election, with the same
      distribution elections as available under the tax-quaified Retirement
      Plan. A Participant's election under the Distribution Election Form shall
      be irrevocable, except as permitted by Code Section 409A.

      (b)   Benefits Attributable to Participation in the ESOP

      The amount credited to a Participant's account balance under the Plan that
      is attributable to his or her participation in the ESOP portion of the
      Plan shall be denominated in Phantom Shares equal to the sum of the
      difference of "(i)" and "(ii)," plus "(iii)," where:

            (i) is the number of shares of Stock that would have been allocated
      to the ESOP account of the Participant, and the earnings thereon, had the
      limitations of Sections 401(a)(17) and 415(c)(1)(A) and 415(c)(6) of the
      Code not been applicable (this calculation shall be made based on the
      following assumptions: (A) the "Compensation" (as defined in the ESOP)
      that exceeds the Code Section 401(a)(17) limits of all persons who are
      Participants in the Supplemental ESOP is added to the participant
      Compensation actually taken into consideration under the ESOP and (B) the
      actual number of shares of Stock released under the ESOP is deemed to be
      allocated to ESOP participants on the basis of the Compensation determined
      in "(A)");

            (ii) is the number of shares of Stock actually allocated to the
      account of the Participant for the relevant ESOP plan year; and

            (iii) each year, the dollar amount of the earnings on the Phantom
      Shares deemed allocated to a Participant's account is determined and such
      earnings are converted into Phantom Shares as of the last day of the ESOP
      plan year, based on the fair market value of the Company's Stock on such
      date.

            (iv) Supplemental ESOP Benefits will be credited to a Participant's
      account in the Plan only for the Plan Years in which the Participant is an
      Active Participant. Supplemental ESOP Benefits credited to a Participant's
      account under this Plan shall vest in accordance with the vesting schedule
      under the ESOP.

            (v) Prior to the later of December 31, 2005, or the 30th day after a
      Participant first becomes eligible to participate in the Supplemental
      ESOP, a Participant shall be required to complete a Distribution Election
      Form for his Supplemental ESOP Benefit, attached hereto as Exhibit B. Such
      Distribution Election Form shall provide the Participant, as of the date
      of the election, with the same distribution elections as available

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      under the tax-qualified ESOP. A Participant's election under the
      Distribution Election Form shall be irrevocable, except as permitted by
      Code Section 409A.

            (vi) All distributions of Supplemental ESOP benefits will be made in
      cash and will not be made in shares of Stock.

5.    Payment of Supplemental Benefits

      (a)   Supplemental Retirement Plan Benefits

            (i) A Participant's accrued Supplemental Retirement Plan Benefits
      under the Plan shall become payable to him or her as of the first day of
      the month next following his or her Early Retirement Date, Normal
      Retirement Date, as applicable, as those terms are defined under the
      Retirement Plan, or other termination of employment, and shall be payable
      to the Participant and, where applicable, to his or her spouse as
      contingent annuitant in the same form, over the same period, and to the
      same persons as the Participant shall have elected as set forth in Section
      4(a)(iii).

            (ii) Notwithstanding any provision in the Plan to the contrary, if a
      Participant is a Specified Employee, such Participant's accrued Supplement
      Retirement Plan Benefits shall become payable to him or her as of the
      first day of the seventh month next following his or her Early Retirement
      Plan Retirement Date, Normal Retirement Plan Retirement Date, as
      applicable, or other termination of employment, and shall be payable to
      the Participant and, where applicable, to his or her spouse as a
      contingent annuitant in the same form, over the same period, and to the
      same persons as the Participant shall have elected as set forth in Section
      4(a)(iii).

      (b)   Supplemental ESOP Benefit

            (i) Payment of a Participant's Supplement ESOP Benefits shall be
      payable in a lump sum of cash upon the Participant's: (i) "Separation From
      Service" as defined in guidance issued by the United States Treasury
      Department in conjunction with Section 409A of the Code, (ii) disability,
      "disabled" shall have the meaning set forth in Section 409A(2)(C) of the
      Code, or (iii) death.

            (ii) Notwithstanding any provision in the Plan to the contrary, if a
      Participant is a Specified Employee, such Participant's accrued Supplement
      ESOP Benefits shall become payable to him or her upon Separation from
      Service, other than due to disability or death, as of the first day of the
      seventh month next following his or such Separation from Service.

6.    Supplemental Survivor Benefit

      (a)   Supplemental Retirement Plan Benefits

            (i) If a married Participant dies prior to the commencement of the
      payment of his or her accrued Supplemental Retirement Plan Benefits, his
      or her surviving spouse shall be entitled to accrued Supplemental
      Retirement Plan Benefits under the Plan

                                        5
<PAGE>

      determined under Section 4 above with respect to the spouse's survivor
      benefit under the Retirement Plan. Payment of such surviving spouse's
      accrued Supplemental Retirement Plan Benefits shall commence at the same
      time, in the same form and over the same period as the surviving spouse
      benefits payable from the Retirement Plan.

            (ii) If a Participant dies after the commencement of his or her
      accrued benefit under the Plan, the only death benefits that shall be
      payable under the Plan are those death benefits, if any, that are payable
      under the form of benefit payment under the Plan that was in effect while
      the Participant was alive.

      (b)   Supplemental ESOP Benefits

            (i) In the event of the death of a Participant prior to the
      commencement of payment of his or her Supplemental ESOP Benefits, the ESOP
      Beneficiary of the Participant shall be entitled to receive as a benefit
      from the Plan an amount equal to 100% of the Supplement ESOP Benefits that
      would have been payable to Participant at the time of his or her death.

7.    Miscellaneous

      (a)   The Plan shall be administered by the Committee. The decisions of
            the Committee with respect to any questions arising as to the
            interpretation of this Plan, including the availability of any and
            all of the provisions thereof, shall be final, conclusive and
            binding.

      (b)   This Plan is intended to be an unfunded plan maintained primarily to
            provide deferred compensation benefits for a select group of
            management or highly compensated employees. The Participant and his
            beneficiaries, heirs, successors and assigns shall have no legal or
            equitable rights, interest or claims in any property or assets of
            the Employer, nor shall they be beneficiaries of, or have any
            rights, claims or interests in any life insurance policies, annuity
            contracts or the proceeds therefrom owned or which may be acquired
            by the Employer. Such policies or other assets of the Employer shall
            not be held under any trust for the benefit of Participants, their
            beneficiaries, heirs, successors or assigns, or held in any way as
            collateral security for the fulfilling of the obligations of the
            Employer under this Plan. Any and all of the Employer's assets shall
            be, and remain, the general, unpledged, unrestricted assets of
            Investors Savings Bank. Employer's obligation under the Plan shall
            be that of an unfunded and unsecured promise of the Employer to pay
            money in the future. In the event that the Employer establishes a
            rabbi trust to hold assets intended to informally fund the Plan, in
            accordance with IRS Revenue Procedure 92-64, the rabbi trust shall
            be prohibited from acquiring Stock of the Company.

      (c)   This Plan may be amended by action of the Board of Directors of the
            Employer, but only if (A) such amendment is made with the consent of
            all Participants who have not by such date received all of their
            vested accrued benefits under the Plan (or with the consent of
            surviving spouses instead of Participants, in cases where a

                                        6
<PAGE>

            Participant has died and his/her surviving spouse has not received
            complete distribution of the survivor benefit, if any, to which
            he/she may be entitled under the Plan), (B) such amendment is merely
            administrative in nature and does not materially effect the rights
            of Participants or spouses with respect to their current or future
            benefits, or (C) is made to comply with tax law or regulatory
            requirements.

      (d)   This Plan may be terminated by action of the Board of Directors of
            the Employer, provided that vested accrued benefits under the Plan
            as of the date of such termination shall not be reduced, and such
            previously vested accrued benefits shall (i) continue to be payable
            to Participants (or their spouses, if applicable) in accordance with
            each Participant's Distribution Election Form and (ii) be subject to
            the terms of the Plan (without regard to its termination).
            Notwithstanding anything herein to the contrary, in the event of a
            Change in Control of the Employer, as such term is defined in Code
            Section 409A, the Employer may terminate the Plan and distribute the
            accrued benefits and account balances within twelve (12) months of
            the Change in Control.

      (e)   No Participant or spouse entitled to receive any benefit, under this
            Plan shall have any equitable or security rights in any specific
            assets of the Employer, and rights of Participants or their spouses
            under this Plan shall not be greater than the rights of unsecured
            general creditors of the Employer.

      (f)   No amounts owed hereunder shall be deemed a deposit or a checking or
            savings account.

      (g)   This Plan shall not be construed as creating a contract of
            employment with respect to any Participant nor shall it create a
            right of continued employment for any Participant.

      (h)   This Plan shall be binding upon and inure to the benefit of any
            successor to the Employer or its business as the result of merger,
            consolidation, reorganization, transfer or sale of assets or
            otherwise and any subsequent successor thereto. In the event of any
            such merger, consolidation, reorganization, transfer or sale of
            assets or other similar transaction, the successor to the Employer
            or its business or subsequent successor thereto shall promptly
            notify Participants who have not received all of their benefits
            under the Plan (or spouses if they are receiving survivor benefits
            under this Plan), in writing of its successorship. In no event shall
            any such transaction described herein suspend, delay or otherwise
            interfere with the rights of Participants or spouses to receive
            benefits hereunder.

      (i)   This Plan has been amended following the enactment of Code Section
            409A and is intended to be construed consistent with the
            requirements of that Section, the Treasury regulations and other
            guidance issued thereunder. If any provision of the Plan shall be
            determined to be inconsistent therewith for any reason, then the
            Plan shall be construed, to the maximum extent possible, to give
            effect to such provision in a manner consistent with Code

                                        7
<PAGE>

            Section 409A, and if such construction is not possible, as if such
            provision had never been included. In the event that any of the
            provisions of the Plan or portion thereof are held to be inoperative
            or invalid by any court of competent jurisdiction, then (1) insofar
            as is reasonable, effect will be given to the intent manifested in
            the provisions held to be inoperative, and (2) the invalidity and
            enforceability of the remaining provisions will not be affected
            thereby.

8.    Tax Withholding

      If upon the payment of any benefits under the Plan, the Employer shall be
      required to withhold any amounts with respect to such payment by reason of
      any federal, state or local tax laws, rules or regulations, then the
      Employer shall be entitled to deduct and withhold such amounts from any
      such payment.

9.    Choice of Law

      This Plan shall be construed in accordance with the laws of the State of
      New Jersey to the extent such laws are pre-empted by the Employee
      Retirement Income Security Act of 1974, as amended.

10.   ERISA Provisions

      (a)   Named Fiduciary and Administrator. The Committee, as Administrator,
            shall be the "Named Fiduciary" of this Plan, as defined under ERISA.
            As Administrator, the Committee shall be responsible for the
            management, control and administration of the Plan as established
            herein. The Administrator may delegate to others certain aspects of
            the management and operational responsibilities of the Plan,
            including the employment of advisors and the delegation of
            ministerial duties to qualified individuals.

      (b)   In the event that benefits under this Plan are not paid to a
            Participant (or to his Beneficiary in the case of a Participant's
            death) or the payment of benefits is curtailed and such claimant
            feels that he or she is entitled to receive such benefits, then a
            written claim must be made to the Administrator within sixty (60)
            days from the date payments are refused. The Employer and its Board
            of Directors shall review the written claim and, if the claim is
            denied, in whole or in part, they shall provide in writing, within
            ninety (90) days of receipt of such claim, their specific reasons
            for such denial, reference to the provisions of this Plan upon which
            the denial is based, and any additional material or information
            necessary to perfect the claim. Such writing by the Employer and its
            Board of Directors shall further indicate the additional steps which
            must be undertaken by claimants if an additional review of the claim
            denial is desired. If claimants desire a second review, claimants
            shall notify the Administrator in writing within sixty (60) days of
            the first claim denial. Claimants may review this Plan, the
            Distribution Election Form(s) or any documents relating thereto and
            submit any issues and comments, in writing, they may feel
            appropriate. In its sole discretion, the

                                        8
<PAGE>

            Administrator shall then review the second claim and provide a
            written decision within sixty (60) days of receipt of such claim.
            This decision shall state the specific reasons for the decision and
            shall include reference to specific provisions of this Plan upon
            which the decision is based. If claimants continue to dispute the
            benefit denial based upon completed performance of this Plan and the
            Joinder Agreement or the meaning and effect of the terms and
            conditions thereof, then claimants may submit the dispute to
            mediation, administered by the American Arbitration Association
            ("AAA") (or a mediator selected by the parties) in accordance with
            the AAA's Commercial Mediation Rules. If mediation is not successful
            in resolving the dispute, it shall be settled by arbitration
            administered by the AAA under its Commercial Arbitration Rules, and
            judgment on the award rendered by the arbitrator(s) may be entered
            in any court having jurisdiction thereof.

                                        9

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