Document:

FIRST SAVINGS BANK
                                DEFERRED FEE PLAN

     The First  Savings  Bank  Deferred  Fee Plan is  effective as of January 1,
2001,  and  reflects  the Board of  Director's  decision to  combine,  amend and
restate the Agreement for Deferment of Directors Fees (established by resolution
of the Board of Directors on May 27, 1981) and the First Savings Bank,  SLA 1992
Deferred Fee Stock Unit Plan.

1.   PURPOSE.  The  purpose of the First  Savings  Bank  Deferred  Fee Plan (the
"Plan") is to provide an  opportunity  for the members of the Board of Directors
of First  Savings Bank (the  "Savings  Bank") to defer receipt of fees earned in
their  capacity  as a director  of the  Savings  Bank until a future  date.  The
ability to defer fees under the Plan applies to all fees  received by directors,
including  retainers,  regular meeting fees, special meeting fees, and committee
fees.

2.   PARTICIPANTS. Any active director of the Savings Bank may elect to become a
participant  ("Participant")  under this Plan by submitting a deferral  election
form to the Compensation Committee of the Board of Directors of the Savings Bank
("Compensation  Committee").  Also, any director who  participated in one of the
prior  arrangements and who is still owed a benefit pursuant to that arrangement
will  continue  as a  Participant  in this  Plan  whether  or not that  director
continues to defer fees under this Plan.

3.   DEFERRED RETAINER AND FEES.

     (a)  Any active director may defer all or any portion of his fees which are
earned as a director for the year  commencing  after the date of his election to
defer fees.  The director  shall specify the terms of his election to defer fees
under this Plan by  completing  and  submitting a deferral  election form to the
Compensation Committee.

     (b)  Any Participant may change the amount of, or suspend, future deferrals
with  respect to fees  earned for years  commencing  after the date of change or
suspension by providing written notice to the Compensation Committee.  Following
any suspension a director may make a new election to again begin  deferring fees
under  this  Plan,  after a period of at least 12  months  has  lapsed  since he
provided the Compensation  Committee with notice of his suspension.  However, no
Participant  may make such  change to his  election  more often than once in any
12-month period.  Any such election to  re-participate  in the Plan must be made
during a period  beginning  on the  third  business  day  following  the date of
release of the  quarterly  or annual  statements  of earnings by First  Sentinel
Bancorp,  Inc., and ending on the twelfth  business day following such date. The
election to defer shall be  irrevocable  as to fees deferred for the  particular
12-month period.

4.   METHOD OF DEFERRAL AND DISTRIBUTION.

     (a)  The Savings Bank will  maintain a deferred  money  account  ("Deferred
Money Account") for all Participants.

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     (b)  Amounts deferred  pursuant to the Agreement for Deferment of Directors
Fees that have not  previously  been  credited to a Stock Unit Account  shall be
credited with an amount equal to the interest that would be payable on such sums
if they were  deposited in a six-month  savings  certificate  or similar type of
account at the Savings Bank.  Interest will be credited  based on a 360-day year
end and will be credited at the average savings certificate rate of the previous
quarter and  calculated on the account  balance of the  Participants's  Deferred
Money Account as of the beginning of the current quarter.

     (c)  Each  Participant's  deferred fees (other than those deferred pursuant
to the Agreement for Deferment of Directors Fees that have not  previously  been
credited to a Stock Unit Account) shall be converted into Stock Units  quarterly
as of March 31, June 30,  September  30 and December 30 of each year by dividing
the Participant's  quarter-end cash balance by the last reported sales price per
share of the common stock as reported on the Nasdaq  National Market on the last
day the common  stock was traded at the end of each  quarter.  The  Compensation
Committee  shall keep  records for each  Participant  noting the number of Stock
Units for full shares of common stock credited to each Participant's  account at
the end of a quarter.  The aggregate value of the Stock Units at the end of each
quarter  shall be charged to each  Participants'  Deferred  Money  Account.  Any
dollar amount  remaining in a  Participant's  Deferred  Money Account after such
charge shall be used  together  with future fee deferrals and converted to stock
units at the next quarterly conversion date.

     (d)  Additional credits will be made to each  Participant's  Deferred Money
Account in dollar  amounts equal to the cash dividends (or the fair market value
of dividends paid in property) that each Participant  would have received had he
been the owner of a number of shares  of  common  stock  equal to the  number of
Stock Units credited to his Account on such dates. Such determinations  shall be
made as of the record date of any dividend paid on the common stock.

     (e)  Unless otherwise elected by a Participant,  cash dividends credited to
his Deferred  Money Account will be converted into Stock Units in the manner and
at the same time as set forth in paragraph (c) of this Section 4.

     (f)  An adjustment will be made to each Participant's Stock Unit Account to
reflect any stock dividend or stock split that a Participant would have received
had he been the owner on the record  dates of a number of shares of common stock
equal to the Stock Units credited to the Participant.

5.   DISTRIBUTION.

     (a)  A  Participant  shall  receive his  benefits  payable  under this Plan
commencing as of the first month next following the later of:

          (i)  the Participant's attainment of age 65; or

          (ii) the  Participant's  last  day of  service  as a  director  of the
Savings  Bank.   Notwithstanding   the  foregoing,   with  the  consent  of  the
Compensation  Committee,  a  Participant

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may also  elect  to  receive  his  benefits  commencing  as of a  specific  date
(regardless  of whether the  director has  terminated  service as of that date),
provided that such date is at least one taxable year  subsequent to the date the
Participant makes his election.

     (b)  A  Participant  may  elect not  later  than one (1) year  prior to the
benefit  commencement  date determined  under paragraph (a) of this Section 5 to
receive his benefits in a lump sum payment. Such payment shall be in lieu of the
monthly  benefits that would  otherwise be payable to a Participant  and in full
satisfaction  of  the  Savings  Bank's   obligation  to  the  Participant.   The
Participant's  election  shall be made in  writing on a form  designated  by the
Savings  Bank  for  such  purpose.  In the  absence  of  such an  election,  the
Participant's  benefits will be paid to him or his beneficiary in  substantially
equal payments over 40 quarterly installments.

     (c)  Notwithstanding  anything in this Section to the contrary,  during any
period when  benefits  are  payable  under this Plan to the  Participant  or his
beneficiary in the form of a quarterly benefit, the Compensation Committee,  may
in its  sole  discretion,  authorize  the  payment  of a lump  sum  which is the
equivalent to the then remaining quarterly benefits otherwise payable under this
Plan.  Such lump sum payment  shall be in lieu of the  quarterly  benefits  that
would otherwise be payable to a Participant or his beneficiary.

     (d)  A  Participant  shall also elect to have his  Deferred  Money  Account
balance distributed in the form of either:

          (i)  common  stock  (based on the number of Stock Units  credited to a
               Participant's Stock Unit Account); or

          (ii) cash  (based on the  market  value of the  number of Stock  Units
               credited  to  the   Participant's   Stock  Unit   Account);   the
               determination  of the  Participant's  account shall be made as of
               the  last  day of the  month  preceding  the  distribution  date.
               Distributions of Deferred Money Accounts shall be paid in cash.

     (e)  In the  event of a  Participant's  death,  the  Participant's  account
balance  shall be  distributed  or begin to be  distributed  to the  beneficiary
designated by the Participant  within 90 days of the Participant's  death in the
method  designated by the  Participant.  If the  beneficiary has predeceased the
Participant  or  survives  the  Participant  but then dies  before all  benefits
payable hereunder have been paid, then the aggregate  benefits then unpaid shall
be paid to the  beneficiary's  estate, in a lump sum, no later than the 90th day
following the date of the Participant's death.

     (f)  Notwithstanding any other provision of this Section 5 to the contrary,
the entire Account  balance then credited to a  Participant's  Accounts shall be
paid immediately in a single payment if:

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          (i)  the Participant is discharged for "cause" by the Savings Bank, or

          (ii) the  Compensation   Committee  determines  that  the  Participant
               engaged  in  misconduct  in  connection  with  the  Participant's
               service with the Savings Bank.

     The  determination  of whether a Participant  is discharged  for "cause" or
whether a Participant  has engaged in misconduct in connection  with his service
with the  Savings  Bank shall be made by the Board of  Directors  of the Savings
Bank and such determination shall be binding on all concerned parties.

     (g)  Notwithstanding  anything  in this  Plan to the  contrary,  if, at any
time, a court or the Internal  Revenue  Service  determines  that an amount in a
Participant's  Accounts is includible in the gross income of the Participant and
subject to tax, the Compensation Committee may, in its sole discretion, permit a
lump  sum  distribution  of an  amount  equal  to the  amount  determined  to be
includible in the Participant's gross income.

     (h)  The  Compensation  Committee  may make  any  provision  necessary  for
withholding  from any payment to a Participant or beneficiary  amounts  required
for federal, state, and local income or employment tax purposes.

6.   PARTICIPANT'S  RIGHTS UNSECURED.  The right of any Participant to receive a
distribution  under this Plan shall be an  unsecured  claim  against the general
assets of the Savings  Bank.  A director may not encumber or assign his deferred
fees.  From time to time,  the Savings  Bank may acquire  (but shall be under no
obligation to do so),  through an  irrevocable  grantor's  trust,  shares of the
outstanding  common stock in anticipation of  distributions  under the Plan. The
Savings  Bank  may  also  contribute  cash or  other  assets  to such a trust in
anticipation of its benefit  obligations under this Plan.  However,  in no event
shall any Participant have any rights in or against such assets. All such assets
shall constitute general assets of the Savings Bank.

7.   ACCOUNT  STATEMENTS At least  annually,  the Savings Bank will furnish each
Participant  with a statement  setting forth the amount credited to his Deferred
Money Account and, if applicable, his Stock Unit Account under this Plan.

8.   AMENDMENTS  TO THE PLAN.  The Board of  Directors  of the Savings  Bank may
amend the Plan at any time,  without  the consent of the  Participants  or their
beneficiaries, provided, however, that no amendment shall divest any Participant
or  beneficiary  of rights to which he would have been  entitled if the Plan had
been terminated on the effective date of such amendment.

9.   TERMINATION  OF  PLAN.  The  Board of  Directors  of the  Savings  Bank may
terminate the Plan at any time. Upon  termination of the Plan,  distributions in
respect to credits to a  Participant's  Accounts  as of the date of  termination
shall be made in a lump sum.

10.  EXPENSES.  Costs of  administration of the Plan will be paid by the Savings
Bank.

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The First  Savings Bank  Deferred Fee Plan was adopted by the Board of Directors
of the Savings Bank on November 15, 2000.

                                                 FIRST SAVINGS BANK

----------------------                           -------------------------------
Date                                             For the Board of DirectorsFIRST SAVINGS BANK
                    SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN II

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                               FIRST SAVINGS BANK
                    SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN II

Article I - Introduction ....................................................  1

Article II - Definitions ....................................................  1

Article III - Eligibility and Participation .................................  4

Article IV - Benefits .......................................................  4

Article V - Accounts ........................................................  6

Article VI - Supplemental Benefit Payments ..................................  7

Article VII - Claims Procedures .............................................  9

Article VIII - Amendment and Termination .................................... 10

Article IX - General Provisions ............................................. 10

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                                    ARTICLE I
                                  INTRODUCTION

SECTION 1.01  PURPOSE, DESIGN AND INTENT.

(a)   The purpose of the First Savings Bank  Supplemental  Executive  Retirement
      Plan II (the "Plan") is to assist First  Savings Bank (the "Bank") and its
      affiliates  in  retaining  the  services  of  key  employees  until  their
      retirement  OR  TERMINATION  IN  CONNECTION  WITH A CHANGE IN CONTROL  (AS
      DEFINED  HEREIN),  to induce such  employees  to use their best efforts to
      enhance  the  business  of the Bank  and its  affiliates,  and to  provide
      certain  supplemental  retirement  benefits  to such  employees.  The Bank
      intends for the Plan to provide  eligible  executives  with  benefits that
      would have otherwise been provided under its tax-qualified  employee stock
      ownership  plan and 401(k) plan,  but for certain  limitations  imposed on
      such plans by the  Internal  Revenue  Code.  The Bank also intends for the
      Plan to protect the  executives  from a possible  reduction in anticipated
      benefits  under the  employee  stock  ownership  plan as a result of their
      retirement or a change in control  prior to the complete  repayment of the
      loans used by the trustee of that plan to acquire  shares of common  stock
      of First  Sentinel  Bancorp.  This  document  amends and  restates  in its
      entirety the previous governing document of the Plan.

(b)   The Plan, in relevant part, is intended to constitute an unfunded  "excess
      benefit  plan" as  defined  in Section  3(36) of the  Employee  Retirement
      Income Security Act of 1974, as amended. The Plan is specifically designed
      to provide certain key employees with retirement  benefits that would have
      been provided under various  tax-qualified  retirement  plans sponsored by
      the  Bank  but for the  applicable  limitations  placed  on  benefits  and
      contributions  under  such  plans by various  provisions  of the  Internal
      Revenue Code of 1986, as amended.

                                   ARTICLE II
                                   DEFINITIONS

SECTION 2.01  DEFINITIONS.  In this Plan, whenever the context so indicates, the
singular or the plural  number and the  masculine  or feminine  gender  shall be
deemed to include the other,  the terms "he," "his," and "him," shall refer to a
Participant or a beneficiary of a Participant,  as the case may be, and,  except
as otherwise provided, or unless the context otherwise requires, the capitalized
terms shall have the following meanings:

(a)   "AFFILIATE" means any corporation,  trade or business,  which, at the time
of  reference,  is together  with the Bank,  a member of a  controlled  group of
corporations,  a group of trades or  businesses  (whether  or not  incorporated)
under common control,  or an affiliated  service group, as described in Sections
414(b), 414(c), and 414(m) of the Code, respectively,  or any other organization
treated as a single employer with the Bank under Section 414(o) of the Code.

(b)   "APPLICABLE   LIMITATIONS"  means  one  or  more  of  the  following,   as
applicable:

            (i)   the maximum limitations on annual additions to a tax-qualified
            defined contribution plan under Section 415(c) of the Code;

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            (ii)  the maximum  limitation on the annual  amount of  compensation
            that  may,  under  Section  401(a)(17)  of the Code,  be taken  into
            account  in   determining   contributions   to  and  benefits  under
            tax-qualified plans; and

            (iii) the maximum  limitations,  under Sections 401(k),  401(m),  or
            402(g) of the Code, on pre-tax  contributions  that may be made to a
            qualified defined contribution plan.

(c)   "BANK" means First Savings Bank and its successors.

(d)   "BOARD OF DIRECTORS" means the Board of Directors of the Bank.

(e)   "CHANGE IN  CONTROL"  Change in Control of the Bank or the  Company  shall
mean an event of a nature that: (i) would be required to be reported in response
to Item 1(a) of the current report on Form 8-K, as in effect on the date hereof,
pursuant  to Section  13 or 15(d) of the  Securities  Exchange  Act of 1934 (the
"Exchange  Act");  or (ii)  results  in a Change in  Control  of the Bank or the
Company  within the meaning of the Change in Bank  Control Act and the Rules and
Regulations promulgated by the Federal Deposit Insurance Corporation ("FDIC") at
12 C.F.R. ss. 303.4(a),  with respect to the Bank, and the Rules and Regulations
promulgated  by the Office of Thrift  Supervision  ("OTS")  (or its  predecessor
agency),  with  respect  to the  Company,  as in  effect  on the  date  of  this
Agreement;  or (iii) without limitation such a Change in Control shall be deemed
to have  occurred  at such  time as (A)  any  "person"  (as the  term is used in
Sections  13(d) and 14(d) of the  Exchange  Act) is or becomes  the  "beneficial
owner"  (as  defined  in  Rule  13d-3  under  the  Exchange  Act),  directly  or
indirectly,  of voting securities of the Bank or the Company representing 20% or
more of the Bank's or the Company's  outstanding  voting  securities or right to
acquire such securities  except for any voting  securities of the Bank purchased
by the Company and any voting securities  purchased by any employee benefit plan
of the Company or its Subsidiaries,  or (B) individuals who constitute the Board
on the date hereof (the "Incumbent Board") cease for any reason to constitute at
least  a  majority  thereof,  provided  that  any  person  becoming  a  director
subsequent to the date hereof whose  election was approved by a vote of at least
three-quarters  of the  directors  comprising  the  Incumbent  Board,  or  whose
nomination  for  election  by  the  Company's  stockholders  was  approved  by a
Nominating  Committee  solely  composed  of members  which are  Incumbent  Board
members, shall be, for purposes of this clause (B), considered as though he were
a  member  of the  Incumbent  Board,  or (C) a plan of  reorganization,  merger,
consolidation,  sale of all or  substantially  all the assets of the Bank or the
Company or similar  transaction  occurs or is  effectuated  in which the Bank or
Company  is  not  the  resulting  entity,  or (D) a  proxy  statement  has  been
distributed  soliciting  proxies from  stockholders  of the Company,  by someone
other than the current management of the Company,  seeking stockholder  approval
of a plan of reorganization, merger or consolidation of the Company or Bank with
one or more  corporations  as a result  of which the  outstanding  shares of the
class of securities  then subject to such plan or transaction  are exchanged for
or converted  into cash or property or securities  not issued by the Bank or the
Company shall be  distributed,  or (E) a tender offer is made for 20% or more of
the voting securities of the Bank or Company then outstanding.

(f)   "CODE" means the Internal Revenue Code of 1986, as amended.

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(g)   "COMMITTEE"  means the  person(s)  designated  by the Board of  Directors,
pursuant to Section 9.02 of the Plan, to administer the Plan.

(h)   "COMMON STOCK" means the common stock of the Company.

(i)   "COMPANY" means First Sentinel Bancorp, Inc. and its successors.

(j)   "ELIGIBLE  INDIVIDUAL"  means any Employee of the Bank or an Affiliate who
participates  in the ESOP or the Savings  Plan, as the case may be, and whom the
Board of Directors  determines is one of a "select group of management or highly
compensated  employees,"  as such phrase is used for  purposes of Sections  101,
201, and 301 of ERISA.

(k)   "EMPLOYEE" means any person employed by the Bank or an Affiliate.

(l)   "EMPLOYER" means the Bank or Affiliate that employs the Employee.

(m)   "ERISA"  means the Employee  Retirement  Income  Security Act of 1974,  as
amended.

(n)   "ESOP" means the First  Savings Bank  Employee  Stock  Ownership  Plan, as
amended from time to time.

(o)   "ESOP ACQUISITION LOAN" means a loan or other extension of credit incurred
by the trustee of the ESOP in  connection  with the  purchase of Common Stock on
behalf of the ESOP.

(p)   "ESOP VALUATION DATE" means any day as of which the investment  experience
of the trust fund of the ESOP is determined and individuals'  accounts under the
ESOP are adjusted accordingly.

(q)   "EFFECTIVE DATE" means January 1, 1997.

(r)   "PARTICIPANT" means an Eligible Employee who is entitled to benefits under
the Plan.

(s)   "PLAN" means this First  Savings Bank  Supplemental  Executive  Retirement
Plan, as amended and restated.

(t)   "RETIREMENT" means Normal Retirement or Early Retirement as such terms are
defined under the ESOP.

(u)   "SAVINGS  PLAN" means the  Incentive  Savings Plan for  Employees of First
Savings Bank, as amended from time to time.

(v)   "SUPPLEMENTAL  BENEFITS" means  collectively the Supplemental ESOP Benefit
and the Supplemental Savings Benefit.

(w)   "SUPPLEMENTAL  ESOP ACCOUNT" means an account  established by an Employer,
pursuant  to  Section  5.01  of  the  Plan,  with  respect  to  a  Participant's
Supplemental ESOP Benefit.

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(x)   "SUPPLEMENTAL  ESOP BENEFIT"  means the benefit  credited to a Participant
pursuant to Section 4.01 of the Plan.

(y)   "SUPPLEMENTAL SAVINGS BENEFIT" means the benefit credited to a Participant
pursuant to Section 4.03 of the Plan.

(z)   "SUPPLEMENTAL   SAVINGS  ACCOUNT"  means  an  account  established  by  an
Employer,  pursuant to Section 5.03 of the Plan,  with respect to a  Participant
Supplement Savings Benefit.

(aa)  "SUPPLEMENTAL  STOCK OWNERSHIP ACCOUNT" means an account established by an
Employer,  pursuant to Section 5.02 of the Plan, with respect to a Participant's
Supplemental Stock Ownership Benefit.

(bb)  "SUPPLEMENTAL  STOCK  OWNERSHIP  BENEFIT" means the benefit  credited to a
Participant pursuant to Section 4.02 of the Plan.

                                   ARTICLE III
                          ELIGIBILITY AND PARTICIPATION

SECTION 3.01  ELIGIBILITY AND PARTICIPATION

(a)   Each Eligible  Employee may participate in the Plan. An Eligible  Employee
      shall become a  Participant  in the Plan upon  designation  as such by the
      Board of  Directors.  An  Eligible  Employee  whom the Board of  Directors
      designates as a Participant in the Plan shall commence participation as of
      the date  established  by the Board of  Directors.  The Board of Directors
      shall establish an Eligible  Employee's date of  participation at the same
      time it designates  the Eligible  Employee as a  Participant  in the Plan.
      Current  Participants  of the Plan,  as of the date of this  amendment and
      restatement, shall continue participation in the Plan without interruption
      until such time as the Board of Directors designates otherwise.

(b)   The Board of Directors may, at any time, designate an Eligible Employee as
      a  Participant  for any or all  supplemental  benefits  provided for under
      Article IV of the Plan.

                                   ARTICLE IV
                                    BENEFITS

SECTION 4.01  SUPPLEMENTAL ESOP BENEFIT

As of the last day of each plan year of the ESOP,  the Employer shall credit the
Participant's  Supplemental  ESOP Account with a Supplemental ESOP Benefit equal
to the excess of (a) over (b), where:

(a)   Equals the annual  contributions made by the Employer and/or the number of
      shares of Common Stock  released for  allocation  in  connection  with the
      repayment of an ESOP Acquisition Loan that would otherwise be allocated to
      the accounts of the  Participant  under

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      the ESOP for the  applicable  plan year if the provisions of the ESOP were
      administered without regard to and of the Applicable Limitations; and

(b)   Equals the annual contributions made by the Employer and for the number of
      shares of common stock  released for  allocation  in  connection  with the
      repayment of an ESOP Acquisition  Loan that are actually  allocated to the
      accounts  of the  Participant  under the  provisions  of the ESOP for that
      particular  plan  year  after  giving  effect  to any  reduction  of  such
      allocation  required by the  limitations  imposed by any of the Applicable
      Limitations.

SECTION 4.02  SUPPLEMENTAL STOCK OWNERSHIP BENEFIT.

(a)   Upon a  Participant's  Retirement  from the Employer,  the Employer  shall
      credit  to  the  Participant's  Supplemental  Stock  Ownership  Account  a
      Supplemental Stock Ownership Benefit equal to (i) less (ii), the result of
      which is multiplied by (iii), where:

      (i)   Equals the total number of shares of Common Stock  acquired with the
            proceeds of all ESOP Acquisition Loans (together with any dividends,
            cash  proceeds,  or other  medium  related to such ESOP  Acquisition
            Loans) that would have been allocated or credited for the benefit of
            the Participant under the ESOP and/or this Plan, as the case may be,
            had the Participant  continued in the employ of the Employer through
            the first ESOP Valuation  Date following the last scheduled  payment
            of principal and interest on all ESOP Acquisition  Loans outstanding
            at the time of the Participant's Retirement; and

      (ii)  Equals the total number of shares of Common Stock  acquired with the
            proceeds of all ESOP Acquisition Loans (together with any dividends,
            cash  proceeds,  or other  medium  related to such ESOP  acquisition
            Loans) and  allocated for the benefit of the  Participant  under the
            ESOP and/or this Plan as of the first ESOP  Valuation Date following
            the Participant's Retirement; and

      (iii) Equals the higher of the closing price of the Common Stock as of:

            (A)   The first ESOP  Valuation  Date  following  the  Participant's
                  Retirement, or

            (B)   The  last  day  of  the  Participant's   employment  with  the
                  Employer.

(b)   For purposes of clause:  (i) of subsection  (a) of this Section 4.02,  the
      total number of shares of Common Stock shall be determined by  multiplying
      the sum of (i) and (ii) by (iii), where:

      (i)   equals the average of the total shares of Common Stock acquired with
            the  proceeds  of an ESOP  Acquisition  Loan and  allocated  for the
            benefit of the  Participant  under the ESOP as of three most  recent
            ESOP  Valuation  Dates  preceding the  Participant's  Retirement (or
            lesser number if the  Participant  has not  participated in the ESOP
            for three full years);

      (ii)  equals the average  number of shares of Common Stock credited to the
            Participant's  Supplemental  ESOP  Account for the three most recent
            plan  years of

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            the ESOP (such that the three recent plan years coincide with the
            three most recent ESOP  Valuation  Dates  referred to in (i) above);
            and

      (iii) equals the total number of scheduled  annual  payments  remaining on
            the ESOP Acquisition Loans as of the Participant's Retirement.

(c)    Notwithstanding  the  applicable  provisions of paragraphs (a) and (b) of
       this Section 4.02, in the event of a Change in Control:

      (i)   A  Participant's  Retirement  shall be deemed to have occurred as of
            the  effective  date of the Change in Control,  as determined by the
            Board of Directors,  regardless of whether the Participant continues
            in the employ of the Employer following the Change in Control; and

      (ii)  The  determination of fair market value of the Common Stock shall be
            made as the effective date of the Change in Control.

SECTION 4.03  SUPPLEMENTAL SAVINGS BENEFIT.

(a)   A  Participant's  Supplemental  Savings Benefit under the Plan shall equal
      the difference between (i) and (ii), where:

      (i)   equals the maximum  amount the  Participant  would be  permitted  to
            contribute  to the  Savings  Plan  for a  given  year  but  for  the
            Applicable Limitations; and

      (ii)  equals the  Participant's  actual  deferrals  made into the  Savings
            Plan.

(b)   The  Participant  shall only be eligible for a benefit  under this Section
      4.03 if he defers the maximum  amount  possible  under the  Savings  Plan,
      taking into consideration the Applicable Limitations.

(c)   The benefit  provided  under this  Section  4.03 shall be in the form of a
      credit by the Bank to the Participant's  Supplemental Savings Accounts and
      shall not come from only  deferral  of  compensation  otherwise  currently
      payable to the Participant.

                                    ARTICLE V
                                    ACCOUNTS

SECTION 5.01  SUPPLEMENTAL ESOP BENEFIT ACCOUNT

For each  Participant who is credited with a benefit pursuant to Section 4.01 of
the Plan, the Employer shall establish,  as a memorandum account on its books, a
Supplemental  ESOP  Account.  Each  year,  the  Committee  shall  credit  to the
Participant's  Supplemental ESOP Account the amount of benefits determined under
Section 4.01 of the Plan for that year.  The Committee  shall credit the account
with an amount  equal to the  appropriate  number  of shares of Common  Stock or
other  medium  of  contribution  that  would  have  otherwise  been  made to the
Participant's  accounts  under the ESOP but for the  limitations  imposed by the
Code.  Shares of

                                       6
<PAGE>

Common  Stock  shall be valued  under this Plan in the same  manner as under the
ESOP. Cash contributions  credited to a Participant's  Supplemental ESOP Account
shall be  credited  annually  with  interest  at a rate  equal  to the  combined
weighted return provided to the Participant's non-stock accounts under the ESOP.

SECTION 5.02  SUPPLEMENTAL STOCK OWNERSHIP ACCOUNT

The  Employer  shall  establish,  as  a  memorandum  account  on  its  books,  a
Supplemental Stock Ownership Account. Upon a Participant's  Retirement or in the
event of a Change in Control,  the Committee  shall credit to the  Participant's
Supplemental  Stock Ownership  Account the amount of benefits  determined  under
Section 4.02 of the Plan. The Committee  shall credit the account with an amount
equal to the  appropriate  number of shares of Common  Stock or other  medium of
contribution that would have otherwise been made to the  Participant's  accounts
under the ESOP but for the  Participant's  Retirement.  Shares  of Common  Stock
shall be  valued  under  this Plan in the same  manner  as under the ESOP.  Cash
contributions  credited to a Participant's  Supplemental Stock Ownership Account
shall be  credited  annually  with  interest  at a rate  equal  to the  combined
weighted return provided to the Participant's non-stock accounts under the ESOP.

SECTION 5.03  SUPPLEMENTAL SAVINGS ACCOUNT.

The Employer shall establish a memorandum  account,  the  "Supplemental  Savings
Account" for each  Participant  on its books,  and each year the Committee  will
credit the amount of  contributions  determined  under Section 4.03 of the Plan.
Contributions credited to a Participant's  Supplemental Savings Account shall be
credited  monthly with interest at a rate equal to the combined  weighted return
provided  to the  Participant's  matching  contribution  and/or  other  Employer
contribution account(s) under the Savings Plan.

                                   ARTICLE VI
                          SUPPLEMENTAL BENEFIT PAYMENTS

SECTION 6.01  PAYMENT OF SUPPLEMENTAL ESOP BENEFIT.

(a)   A Participant's Supplemental ESOP Benefit shall be paid to the Participant
      or in the event of the Participant's death, to his beneficiary in the same
      form,  time and medium  (I.E.,  cash and/or shares of Common Stock) as his
      benefits are paid under the ESOP.

(b)   A Participant  shall vest in his  Supplemental  ESOP benefit in accordance
      with the provisions of Section 6.04 of this Plan.

SECTION 6.02  PAYMENT OF SUPPLEMENTAL STOCK OWNERSHIP BENEFIT

(a)   A Participant's  Supplemental Stock Ownership Benefit shall be paid to the
      Participant or in the event of the Participant's death, to his beneficiary
      in the same form,  time and medium  (I.E.,  cash  and/or  shares of Common
      Stock) as his benefits are paid under the ESOP.

(b)   A Participant  shall vest in his Supplemental  Stock Ownership  Benefit in
      accordance  with the  Provisions  of Section 6.04 of this Plan,  provided,
      however, that the Participant shall

                                       7
<PAGE>

      immediately  become  fully  vested  in his  Supplemental  Stock  Ownership
      Benefit in the event of a Change in Control.

SECTION 6.03  PAYMENT OF SUPPLEMENTAL SAVINGS BENEFIT.

(a)   A  Participant's  Supplemental  Savings  Benefit  shall  be  paid  to  the
      Participant or in the event of the Participant's death, to his beneficiary
      in the same form,  and at the same time as his benefits are paid under the
      Savings Plan.

(b)   A Participant shall vest in his Supplemental Savings Benefit in accordance
      with Section 6.04 of this Plan

SECTION 6.03  ALTERNATIVE PAYMENT OF BENEFITS.

Notwithstanding the other provisions of this Article VI, a Participant may, with
prior written consent of the Committee and upon such terms and conditions as the
Committee  may impose,  request that the  Supplemental  ESOP Benefit  and/or the
Supplemental Stock Ownership Benefit and/or the Supplemental  Savings Benefit to
which he is entitled be paid  commencing at a different  time,  over a different
period, in a different form, or to different persons,  than the benefit to which
he or his beneficiary may be entitled under the ESOP or the Savings Plan.

SECTION 6.04      VESTING IN SUPPLEMENTAL BENEFITS

Except as otherwise  provided for in Section  6.02(b) of the Plan, a Participant
shall vest in his Supplemental ESOP and his Supplemental Stock Ownership Benefit
according to the following schedule:

ANNIVERSARY OF PARTICIPATION IN THIS PLAN            VESTED PERCENTAGE

                     1st                                     20%

                     2nd                                     40%

                     3rd                                     60%

                     4th                                     80%

                     5th                                     100%

                                       8
<PAGE>

                                   ARTICLE VII
                                CLAIMS PROCEDURES

SECTION 7.01  CLAIMS REVIEWER

For purposes of handling claims with respect to this Plan, the "Claims Reviewer"
shall be the Committee,  unless the Committee designates another person or group
of persons as Claims Reviewer.

SECTION 7.02  CLAIMS PROCEDURE

(a)   An  initial  claim  for  benefits  under  the  Plan  must  be  made by the
      Participant or his or her beneficiary or  beneficiaries in accordance with
      the terms of this Section 7.02.

(b)   Not later than ninety (90) days after receipt of such a claim,  the Claims
      Reviewer  will  render a written  decision  on the claim to the  claimant,
      unless special  circumstances require the extension of such 90-day period.
      If such  extension is  necessary,  the Claims  Reviewer  shall provide the
      Participant or the Participant's beneficiary or beneficiaries with written
      notification of such extension before the expiration of the initial 90-day
      period.  Such notice shall specify the reason or reasons for the extension
      and the date by which a final decision can be expected.  In no event shall
      such  extension  exceed a period of  ninety  (90) days from the end of the
      initial 90-day period.

(c)   In the event the Claims  Reviewer denies the claim of a Participant or any
      beneficiary   in  whole  or  in  part,  the  Claims   Reviewer's   written
      notification shall specify, in a manner calculated to be understood by the
      claimant,  the reason for the  denial;  a  reference  to the Plan or other
      document or form that is the basis for the denial;  a  description  of any
      additional  material or information  necessary for the claimant to perfect
      the claim;  an  explanation  as to why such  information  or  material  is
      necessary; and an explanation of the applicable claims procedure.

(d)   Should the claim be denied in whole or in part and should the  claimant be
      dissatisfied  with the Claims  Reviewer's  disposition  of the  claimant's
      claim,  the  claimant  may have a full and fair review of the claim by the
      Committee upon written request submitted by the claimant or the claimant's
      duly authorized  representative and received by the Committee within sixty
      (60) days  after  the  claimant  receives  written  notification  that the
      claimant's  claim has been denied.  In  connection  with such review,  the
      claimant  or  the  claimant's  duly  authorized  representative  shall  be
      entitled to review pertinent  documents and submit the claimant's views as
      to the issues,  in writing.  The Committee shall act to deny or accept the
      claim  within  sixty (60) days after  receipt  of the  claimant's  written
      request for review unless special  circumstances  require the extension of
      such 60-day period.  If such extension is necessary,  the Committee  shall
      provide the claimant with written  notification  of such extension  before
      the expiration of such initial 60-day period. In all events, the Committee
      shall act to deny or accept the claim  within  120 days of the  receipt of
      the  claimant's  written  request for review.  The action of the Committee
      shall be in the form of a written  notice to

                                       9
<PAGE>

      the claimant and its contents  shall include all of the  requirements  for
      action on the original claim.

(e)   In no event may a claimant commence legal action for benefits the claimant
      believes are due the claimant  until the claimant has exhausted all of the
      remedies and procedures afforded the claimant by this Article VII.

                                  ARTICLE VIII
                            AMENDMENT AND TERMINATION

SECTION 8.01  AMENDMENT OF THE PLAN

The Bank  may  from  time to time and at any  time  amend  the  Plan;  provided,
however,  that  such  amendment  may not  adversely  affect  the  rights  of any
Participant or  beneficiary  with respect to any benefit under the Plan to which
the Participant or beneficiary may have previously  become entitled prior to the
effective  date of such  amendment  without  the consent of the  Participant  or
beneficiary.  The Committee shall be authorized to make minor or  administrative
changes to the Plan,  as well as amendments  required by  applicable  federal or
state law (or authorized or made desirable by such statutes); provided, however,
that such amendments must subsequently be ratified by the Board of Directors.

SECTION 8.02  TERMINATION OF THE PLAN

The Bank may at any time  terminate  the  Plan;  provided,  however,  that  such
termination  may  not  adversely   affect  the  rights  of  any  Participant  or
beneficiary  with respect to any benefit under the Plan to which the Participant
or beneficiary may have  previously  become entitled prior to the effective date
of such  termination  without the  consent of the  Participant  or  beneficiary.
Unless an election  for  distribution  is made by the  Participant,  any amounts
credited to the supplemental accounts of any Participant shall remain subject to
the provisions of the Plan and no  distribution of benefits shall be accelerated
because of termination of the Plan.

                                   ARTICLE IX
                               GENERAL PROVISIONS

SECTION 9.01  UNFUNDED, UNSECURED PROMISE TO MAKE PAYMENTS IN THE FUTURE

The right of a Participant or any  beneficiary  to receive a distribution  under
this Plan shall be an unsecured  claim against the general assets of the Bank or
its  Affiliates  and neither a Participant  nor his  designated  beneficiary  or
beneficiaries  shall have any rights in or against  any amount  credited  to any
account  under this Plan or any other  assets of the Bank or an  Affiliate.  The
Plan at all times shall be  considered  entirely  unfunded both for tax purposes
and for  purposes  of Title I of  ERISA.  Any  funds  invested  hereunder  shall
continue  for all  purposes to be part of the  general  assets of the Bank or an
Affiliate and  available to its general  creditors in the event of bankruptcy or
insolvency.  Accounts  under  this Plan and any  benefits  which may be  payable
pursuant  to this Plan are not  subject  in any  manner to  anticipation,  sale,
alienation,   transfer,   assignment,   pledge,   encumbrance,   attachment,  or
garnishment by creditors of a Participant or a  Participant's

                                       10
<PAGE>

beneficiary. The Plan constitute a mere promise by the Bank or Affiliate to make
benefit payments in the future. No interest or right to receive a benefit may be
taken,  either  voluntarily or involuntarily,  for the satisfaction of the debts
of, or other  obligations or claims  against,  such  Participant or beneficiary,
including  claims  for  alimony,  support,  separate  maintenance  and claims in
bankruptcy proceedings.

SECTION 9.02  COMMITTEE AS PLAN ADMINISTRATOR

(a)   The Plan shall be administered by the Committee designated by the Board of
      Directors.

(b)   The Committee  shall have the  authority,  duty and power to interpret and
      construe the provisions of the Plan as it deems appropriate. The Committee
      shall have the duty and responsibility of maintaining records,  making the
      requisite calculations and disbursing the payments hereunder. In addition,
      the  Committee  shall have the  authority and power to delegate any of its
      administrative  duties to employees of the Bank or Affiliate,  as they may
      deem  appropriate.  The Committee shall be entitled to rely on all tables,
      valuations,  certificates,  opinions,  data and reports  furnished  by any
      actuary,  accountant,  controller,  counsel or other  person  employed  or
      retained  by the Bank  with  respect  to the  Plan.  The  interpretations,
      determination,  regulations  and  calculations  of the Committee  shall be
      final and binding on all persons and parties concerned.

SECTION 9.03  EXPENSES

Expenses  of  administration  of the  Plan  shall  be  paid  by the  Bank  or an
Affiliate.

SECTION 9.04  STATEMENTS.

The Committee shall furnish  individual annual statements of accrued benefits to
each  Participant,  or current  beneficiary,  in such form as  determined by the
Committee or as required by law.

SECTION 9.05  RIGHTS OF PARTICIPANTS AND BENEFICIARIES

(a)   The sole rights of a Participant or  beneficiary  under this Plan shall be
      to have this Plan  administered  according to its  provisions,  to receive
      whatever benefits he or she may be entitled to hereunder.

(b)   Nothing in the Plan shall be  interpreted  as a guaranty that any funds in
      any trust which may be established  in connection  with the Plan or assets
      of the  Bank  or an  Affiliate  will  be  sufficient  to pay  any  benefit
      hereunder.

(c)   The  adoption  and  maintenance  of this Plan  shall not be  construed  as
      creating  any  contract of  employment  or service  between the Bank or an
      Affiliate  and any  Participant  or other  individual.  The Plan shall not
      affect the right of the Bank or an Affiliate to deal with any Participants
      in  employment or service  respects,  including  their hiring,  discharge,
      compensation, and conditions of employment or other service.

                                       11
<PAGE>

SECTION 9.06  INCOMPETENT INDIVIDUALS

The  Committee may from time to time  establish  rules and  procedures  which it
determines  to be necessary  for the proper  administration  of the Plan and the
benefits  payable  to a  Participant  or  beneficiary  in the  event  that  such
Participant or beneficiary  is declared  incompetent  and a conservator or other
person  legally  charged  with  that  Participant's  or  beneficiary's  care  is
appointed.  Except as otherwise provided herein,  when the Committee  determines
that such  Participant  or  beneficiary is unable to manage his or her financial
affairs,  the Committee may pay such Participant's or beneficiary's  benefits to
such   conservator,   person  legally   charged  with  such   Participant's   or
beneficiary's care, or institution then contributing toward or providing for the
care and maintenance of such Participant or beneficiary.  Any such payment shall
constitute a complete discharge of any liability of the Bank or an Affiliate and
the Plan for such Participant or beneficiary.

SECTION 9.07      SALE, MERGER, OR CONSOLIDATION OF THE BANK

The Plan  shall be  binding  upon and  inure  to the  benefit  of any  successor
organization  succeeding to substantially  all of the assets and business of the
Employer.  The Employer agrees that it will make  appropriate  provision for the
preservation  of  participants'  rights under the Plan in any  agreement or plan
which it may enter into to effect any merger,  consolidation,  reorganization or
transfer of assets.  Any legal fees  incurred by a  Participant  in  determining
benefits to which such  Participant is entitled under the Plan following a sale,
merger, or consolidation of the Bank or an Affiliate of which the Participant is
an Employee or, if applicable, a member of the Board of Directors, shall be paid
by the  resulting  or  succeeding  entity.  Upon such a  merger,  consolidation,
reorganization,  or transfer of assets,  the term "Employer"  shall refer to the
successor organization and the Plan shall continue in full force and effect. Not
later than three  business days after a change in control of the  Employer,  the
Employer or the  successor  organization  shall (i) deposit,  in an  irrevocable
grantor trust (the "Trust"),  an amount reasonably projected to be sufficient to
fund the payment of all benefits  that are or may become  payable under the Plan
after the closing date of the change in control, and (ii) provide the Trustee of
the Trust with a written  direction  both to hold said amount and any investment
return thereon in segregated  accounts for the benefit of the  Participants  and
their  beneficiaries,  and to  follow  the  procedures  set  forth  in the  next
paragraph as to the payment of such amounts from the Trust.  The  provisions  of
this Section 9.07(b) shall be null and void with respect to any Participant only
if the Participant provides a written release of the obligations of the Employer
under this provision. After a change in control of the Employer, the Participant
may provide the trustee of the Trust with a written notice directing the trustee
to pay to the  Participant  an amount  designated in the notice as being payable
pursuant to the terms of this Plan.  Within three business days after  receiving
said notice,  the trustee of the Trust shall pay such amount to the Participant,
and  coincidentally  shall provide the Employer or its successor  with notice of
such  payment.  Upon the Trust's final payment of all amounts due under the Plan
to all  Participants,  the trustee of the Trust shall pay to the Bank the entire
balance, if any, remaining in the segregated accounts maintained for the benefit
of the Participants.  The Participants shall thereafter have no further interest
in the Trust.

                                       12
<PAGE>

SECTION 9.08  LOCATION OF PARTICIPANTS

Each Participant  shall keep the Bank informed of his or her current address and
the current address of his or her designated  beneficiary or beneficiaries.  The
Bank shall not be  obligated  to search for any  person.  If such  person is not
located  within  three  (3)  years  after  the  date  on  which  payment  of the
Participant's benefits payable under this Plan may first be made, payment may be
made as though the  Participant or his or her beneficiary had died at the end of
such three-year period.

SECTION 9.09  LIABILITY OF THE BANK AND ITS AFFILIATES

Notwithstanding  any provision herein to the contrary,  neither the Bank nor any
individual  acting as an  employee  or agent of the Bank  shall be liable to any
Participant, former Participant, beneficiary, or any other person for any claim,
loss,  liability  or  expense  incurred  in  connection  with the  Plan,  unless
attributable to fraud or willful  misconduct on the part of the Bank or any such
employee or agent of the Bank.

SECTION 9.10  GOVERNING LAW

All questions  pertaining to the  construction,  validity and effect of the Plan
shall be determined in accordance  with the laws of the United States and to the
extent not preempted by such laws, by the laws of the State of New Jersey.

******************************************************************************

Having  been  approved by its Board of  Directors  on November  15,  2000,  this
Amended and Restated Plan is executed by its duly  authorized  officer this 15th
day of November, 2000.

                                                FIRST SAVINGS BANK

Attest:   s/ ANN C. CLANCY                      By: /s/ PHILIP T. RUEGGER, JR.
          ----------------                          --------------------------
        Corporate Secretary                         Chairman of the Board

                                       13

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