JAMAICA SAVINGS BANK FSB

                        SUPPLEMENTAL EMPLOYMENT AGREEMENT



WHEREAS,  , ("Executive")  and Jamaica Savings Bank FSB ("Bank") desire to enter
into  this  Supplemental  Employment  Agreement  ("Supplemental  Agreement")  to
supplement the Employment  Agreement  entered into between the Executive and the
Bank on June 27, 1995 (hereinafter  referred to as the "Employment  Agreement");
and

WHEREAS,  there is an accelerating trend of consolidation among companies within
the banking industries; and

WHEREAS,  tax law provisions  relating to "golden parachute payments" could have
the effect of reducing the benefits  otherwise  provided to Executive  under the
Employment Agreement as a result of a change in control of the Bank; and

WHEREAS, the Board of Directors of the Bank ("Board") believes that it is in the
best interests of the Bank that this  Supplemental  Agreement be entered into in
order to provide  the  benefits  intended to be  provided  under the  Employment
Agreement  to  Executive  in the event of a change in control of the Bank or its
holding company,  JSB Financial,  Inc. ("Company") without any reduction because
of tax code "penalties" or excise taxes relating to a change in control; and

WHEREAS,  the Bank and the Executive also desire to enter into this Supplemental
Agreement  for the purpose of  eliminating  conflicting  terms  contained in the
Employment  Agreement and to provide the  Executive  with  termination  benefits
substantially  similar to those  provided  to key  executives  at other  savings
institutions; and

WHEREAS,  the Bank and the Executive also desire to enter into this Supplemental
Agreement  for the purpose of providing  further  incentive to the  Executive to
achieve successful results in the management and the operation of the Bank.

NOW, THEREFORE,  in consideration of the mutual covenants herein contained,  and
upon the other terms and  conditions  hereinafter  provided,  the parties hereby
agree as follows:

A.  SUPPLEMENTAL BENEFITS

1. In the event of a Change in Control of the Bank or the Company (as defined in
the Employment Agreement),  the Executive shall be entitled to receive, pursuant
to this Supplemental  Agreement,  an amount, payable by the Bank or the Company,
in addition to any  compensation or benefits  payable by the Bank or the Company
pursuant to the  Employment  Agreement,  which amount shall equal the difference
between  (i) the  amount  that  would be paid  under  the  Employment  Agreement
pursuant to Section 5(c) of the  Employment  Agreement but for the reductions in
payments  required by Section  5(h) of the  Employment  Agreement,  and (ii) the
amount that is actually paid under the terms of the Employment  Agreement  after
giving consideration to Section 5(h) of said Employment Agreement.


<PAGE>

2. In each  calendar  year that  Executive  is entitled  to receive  payments or
benefits under the provisions of the Employment  Agreement and this Supplemental
Agreement,  the Bank or the  Company  or  their  independent  accountants  shall
determine  if an excess  parachute  payment (as  defined in Section  4999 of the
Internal Revenue Code of 1986, as amended,  and any successor provision thereto,
(the  "Code")  exists.  Such  determination  shall  be  made  after  taking  any
reductions  permitted  pursuant to Section 280G of the Code and the  regulations
thereunder. Any amount determined to be an excess parachute payment after taking
into account  such  reductions  shall be  hereafter  referred to as the "Initial
Excess Parachute Payment". As soon as practicable after a Change in Control, the
Initial  Excess  Parachute  Payment  shall  be  determined.  Upon  the  Date  of
Termination  following  a Change in Control,  the Bank or the Company  shall pay
Executive, subject to applicable withholding requirements under applicable state
and federal law an amount equal to:

(i) twenty (20) percent of the Initial Excess  Parachute  Payment (or such other
amount equal to the tax imposed under Section 4999 of the Code); and

(ii) such  additional  amount (tax  allowance) as may be necessary to compensate
Executive for the payment by Executive of city, state and federal income, excise
and employment-related taxes on the payment provided under Clause (i) and on any
payments under this Clause (ii). In computing such tax allowance, the payment to
be made under Clause (i) shall be divided by the "gross up percentage" ("GUP").
The GUP shall be determined as follows:


                  GUP = 1.00 - The Executive's Tax Rate

The  Executive's Tax Rate for purposes of computing the GUP shall be the highest
marginal federal, state and city income, excise and employment-related tax rate,
including any applicable to the Executive in the year in which the payment under
Clause (i) is made.

3.  Notwithstanding  the foregoing,  if it shall subsequently be determined in a
final judicial determination with any taxing authority or a final administrative
settlement  with any taxing  authority  to which  Executive  is a party that the
excess  parachute  payment as defined  in Section  4999 of the Code,  reduced as
described  above, is different from the Initial Excess  Parachute  Payment (such
different  amount  being  hereafter  referred  to as the  "Determinative  Excess
Parachute Payment") then the Bank or the Company's independent accountants shall
determine the amount (the  "Adjustment  Amount") the  Executive  must pay to the
Bank or the  Company or the Bank or the  Company  must pay to the  Executive  in
order to put the Executive  (or the Bank or the Company,  as the case may be) in
the same position as the Executive (or the Bank or the Company,  as the case may
be) would have been if the Initial  Excess  Parachute  Payment had been equal to
the  Determinative  Excess  Parachute  Payment.  In  determining  the Adjustment
Amount,  the independent  accountants  shall take into account any and all taxes
(including  any penalties and interest)  paid by or for Executive or refunded to
Executive  or  for  Executive's  benefit.  As  soon  as  practicable  after  the
Adjustment Amount has been so determined,  the Bank or the Company shall pay the
Adjustment  Amount to  Executive  or the  Executive  shall repay the  Adjustment
Amount to the Bank or the Company, as the case may be.

4. In each calendar year that Executive  receives payments or benefits under the
Employment Agreement or this Supplemental  Agreement,  Executive shall report on
his state and federal income tax returns such  information as is consistent with
the determination made by the independent accountants of the Bank or the Company
as described  above. The Bank and the Company shall indemnify and hold Executive
harmless  from  any  and all  losses,  costs  and  expenses  (including  without
limitation,  reasonable  attorney's fees,  interest,  fines and penalties) which
Executive incurs as a result of so reporting such  information.  Executive shall
promptly  notify  the Bank or the  Company  in writing  whenever  the  Executive
receives notice of the institution of a judicial or  administrative  proceeding,
formal or informal, in which the federal tax treatment under Section 4999 of the
Code of any amount paid or payable  under this  Supplemental  Agreement is being
reviewed or is in dispute.  The Bank and the Company  shall assume  control,  at
their expense,  over all legal and accounting matters pertaining to such federal
tax treatment  (except to the extent  necessary or appropriate  for Executive to
resolve any such proceeding with respect to any matter unrelated to amounts paid
or payable pursuant to the Employment Agreement or this Supplemental  Agreement)
and  Executive  shall  cooperate  fully with the Bank or the Company in any such
proceeding.  The Executive  shall not enter into any compromise or settlement or
otherwise  prejudice  any rights the Bank or the Company may have in  connection
therewith without prior consent of the Bank or the Company.
<PAGE>

B. MITIGATION

1.  Upon the  occurrence  of an  Event of  Termination  or a Change  in  Control
followed by the subsequent  payment of termination  benefits to Executive  under
the Employment Agreement or this Supplemental Agreement, Executive shall have no
duty or  obligation  to mitigate and such  payments  shall not be reduced in the
event the Executive obtains other employment.

C. INSURANCE COVERAGE BENEFITS

1.  Notwithstanding  the  terms  contained  in  Sections  4(c)  and  5(d) of the
Employment Agreement, upon the occurrence of an Event of Termination or a Change
of Control, Executive shall receive a cash payment equal to the cost of what the
Executive  would be  required to pay for  continued  life,  medical,  dental and
disability  coverage  substantially  identical to the coverage maintained by the
Bank or the Company  prior to  severance  in lieu of  receiving  such  continued
coverage as set forth in the Employment Agreement.

D. CONFLICTING TERMS

1.  Notwithstanding  the  terms  contained  in  Sections  4(b)  and  5(c) of the
Employment Agreement, upon the occurrence of an Event of Termination or a Change
of  Control,  the Bank shall pay  Executive,  or in the event of his  subsequent
death, his beneficiary or  beneficiaries,  or his estate, as the case may be, as
severance pay or liquidated  damages, or both, a sum equal to the greater of the
payments  due for the  remaining  term of the  Agreement  or three (3) times the
average of the three (3) preceding years' Base Salary, including bonuses and any
other cash  compensation paid to the Executive during such years, and the amount
of any  contributions  made to any  employee  benefit  plans,  on  behalf of the
Executive, maintained by the Bank during such years.



IN WITNESS WHEREOF, Jamaica Savings Bank FSB and JSB Financial, Inc. have caused
this  Supplemental  Agreement to be executed and its seal to be affixed hereunto
by their duly authorized  officers,  and Executive has signed this  Supplemental
Agreement on the day of , 1996.


ATTEST:  [SEAL]                           JAMAICA SAVINGS BANK FSB



Joanne Corrigan                                     Park T. Adikes
--------------------------                          ------------------------
Joanne Corrigan, Secretary                          Park T. Adikes, Chairman




ATTEST:  [SEAL]                                            JSB FINANCIAL, INC.



Joanne Corrigan                                     Park T. Adikes
--------------------------                          ------------------------
Joanne Corrigan, Secretary                          Park T. Adikes, Chairman


WITNESS:


Lawrence J. Kane
--------------------------------
Lawrence J. Kane, Sen. Vice Pres.