EXHIBIT 10.3a
<PAGE>

                   FINANCIAL INSTITUTION EXECUTIVE'S AGREEMENT

                                    Agreement

      AGREEMENT  made this 14th day of July,  1999, by and between SOUND FEDERAL
SAVINGS AND LOAN  ASSOCIATION,  which has its principal office at 300 Mamaroneck
Avenue, Mamaroneck, New York (hereinafter referred to as the "Bank") and RICHARD
P. McSTRAVICK (hereinafter referred to as the "Employee").  Any reference herein
to "Company" shall mean Sound Federal Bancorp, a federal stock  corporation,  or
any successor thereto.

                                   Witnesseth:

      WHEREAS, the Employee is President and Chief Executive Officer of the Bank
and has  developed  an intimate and  thorough  knowledge of the Bank's  business
methods and operations; and

      WHEREAS, the retention of the Employee's services for and on behalf of the
Bank is of material  importance to the preservation and enhancement of the value
of the Bank's business; and

      WHEREAS,  the Employee is presently employed under an employment agreement
entered into on December 31, 1997, as amended, on January 20, 1999; and

      WHEREAS,  the  Bank  and the  Employer  desires  to  further  revise  such
employment agreement and such further revisions are set forth in this Agreement,
which supercedes the prior employment agreement.

      NOW, THEREFORE, in consideration of the mutual covenants set forth in this
Agreement, the Bank and the Employee agree as follows:

      Section 1. Employment Term. The Bank employs the Employee as President and
Chief Executive  Officer and the Employee  accepts this employment and agrees to
render  services  to the Bank on the  terms  and  conditions  set  forth in this
Agreement.  The initial term of employment  shall  commence on July 20, 1998 and
shall  terminate  on  December  31,  2000,  unless  further  extended  or sooner
terminated in accordance with this Agreement. Commencing on January 1, 1999 (the
"Anniversary  Date" of this Agreement),  and continuing at each Anniversary Date
thereafter,  the  Agreement  shall  renew for an  additional  year such that the
remaining  term shall be three (3) years  unless  written  notice is provided to
Executive  at least ten (10) days and not more than sixty (60) days prior to any
such Anniversary  Date, that his employment shall cease at the end of thirty-six
(36) months  following such  Anniversary  Date.  Prior to each notice period for
non-renewal,  the  Board of  Directors  ("Board")  of the Bank  will  conduct  a
comprehensive performance evaluation and review of the Executive for purposes of
determining  whether to extend the Agreement,  and the results  thereof shall be
included in the minutes of the Board's meeting.

      Section 2. Duties.  The Employee shall perform executive  services for the
Bank as may be  consistent  with the  Employee's  title,  along with those other
duties that may be assigned  from time to time by the Bank's Board of Directors.
During this Agreement's term, the Employee's full business time and best efforts
shall be devoted to the affairs  and  business  of the Bank,  as is  customarily
required for the position of President and Chief Executive Officer. The services
of the Employee shall be rendered  principally  in Mamaroneck,  New York but the
Employee shall
<PAGE>

do any traveling and render  services at such other present or future offices on
behalf of the Bank as may be reasonably required.

      Section  3.  Restricted  Activities.   The  Employee  agrees  that  during
employment,  except with the express  consent of the Bank's Board of  Directors,
the Employee will not, directly or indirectly,  engage or participate in, become
a director of, or render advisory or other services for, or in connection  with,
or  become  interested  in,  or  make  any  financial  investment  in any  firm,
corporation,  business  entity  or  business  enterprise  competitive  with  any
business  of the  Bank;  provided,  however,  that  the  Employee  shall  not be
precluded or prohibited from owning passive investments,  including  investments
in the securities of other financial institutions, so long as ownership does not
require the Employee to devote  substantial time to management or control of the
other business or activities in which the Employee has invested.

      Section 4. Remedies.  The Employee agrees and acknowledges  that by virtue
of this employment,  the Employee will obtain and maintain an intimate knowledge
of the  Bank's  activities  and  affairs,  including  trade  secrets  and  other
confidential  matters. As a result, and also because of the special,  unique and
extraordinary  services that the Employee is capable of performing  for the Bank
or one of its  competitors,  the  Employee  recognizes  that the  services to be
rendered  are of a  character  giving them a peculiar  value,  the loss of which
cannot be  adequately  or reasonably  compensated  for by damages.  The Employee
agrees that if the Employee  fails to render to the Bank the services  required,
the Bank shall be entitled to immediate  injunctive or other equitable relief to
restrain the Employee,  in addition to any other  remedies to which the Bank may
be entitled under law.

      Section 5. Compensation. The Bank will compensate and pay the Employee for
the Employee's  services during this  Agreement's  term a minimum base salary of
One Hundred Thirty- Seven Thousand and Five Hundred  ($137,500)  Dollars for the
year ending December 31, 1999. Subsequent annual salary in amounts determined by
the Bank's Board of Directors from year to year shall be  memorialized by a duly
executed Addendum to be appended hereto.

      Section 6. Vacation.  The Employee shall be entitled to a vacation of four
(4) weeks per calendar year,  arranged to coordinate with the Employee's duties.
If for any reason the Employee's  full  entitlement is not taken in any calendar
year,  the unused portion  thereof shall be lost or deemed waived.  The Employee
shall also be entitled to observe holidays on which the Bank is closed.

      Section 7. Benefits.  The Employee shall be entitled to participate in any
Bank Plan relating to pension,  profit sharing,  or other  retirement  benefits,
along with any medical,  dental,  and life insurance  coverage or  reimbursement
plans that the Bank may adopt for its employees. The Employee shall be permitted
to participate in the Bank's medical,  dental,  and life insurance  coverage and
reimbursement  plans to the extent that such plans exist and as constituted from
time  to time  until  the  Employee  s  death;  provided,  however,  that if the
employment  of the Employee is  terminated by the Employee for "good reason" (as
defined in Section  11(h) hereof) or by the Bank other than for "just cause" (as
defined in Section 11(a) hereof) prior to the  attainment of age 70, he shall be
entitled  to  participate  in such plans until age 70, to the same extent as set
forth in Section 11(m) hereof.

      Section 8.  Disability.  (a) If the  Employee  shall  become  disabled  or
incapacitated to the extent that the Employee is unable to perform the duties of
President and Chief Executive


                                       2
<PAGE>

Officer,  the Employee  shall  continue to receive the following  percentages of
compensation,  exclusive  of any  benefits  which  may  be in  effect  for  Bank
employees  under this  Agreement's  Section 7 for the  following  periods of the
Employee's disability: 100% for the first six (6) months, and 60% thereafter for
this Agreement's remaining term. Upon returning to active duties, the Employee's
full  compensation  shall be  reinstated  on a "go  forward"  basis.  Should the
Employee return to active  employment on other than a full-time basis,  then the
Employee's  compensation  for  the  remainder  of  the  then  existing  term  of
employment,  as set forth in  Section  5,  shall be reduced on such terms as the
Bank's Board of Directors shall determine.

      (b) There shall be deducted  from the amounts paid to the  Employee  under
this Section  during any period of disability  any amounts  actually paid to the
Employee pursuant to any disability  insurance,  workers'  compensation or other
similar  program that the Bank has  instituted or may institute on behalf of its
employees  for the  purpose  of  compensating  the  Employee  for a  disability,
including  those  payable  under  disability  insurance  policies  covering  the
Employee issued by Commercial Union Insurance Company or any successor issuer(s)
or  policies,  but the Bank shall  continue  the  program of  reimbursement  and
payment of premiums as previously conducted.

      (c) For purposes of this Agreement,  the Employee shall be deemed disabled
or incapacitated if the Employee,  due to physical or mental illness, shall have
been absent from duties with the Bank on a full-time  basis for thirty (30) days
provided,  that,  if the  Employee  shall  not  agree  with a  determination  to
terminate the Employee because of disability or incapacity,  the question of the
Employee's  ability shall be submitted to an impartial  and reputable  physician
selected by the parties and such physician's  determination regarding disability
or incapacity shall be final and binding.

      Section 9. Stock Options.  During this Agreement's term, the Employee will
be entitled to  participate  in and  receive the  benefits of any stock  option,
profit sharing, or other plans,  benefits, and privileges given to employees and
executives of the Bank or its  subsidiaries  and  affiliates  that may come into
existence  to the  extent  commensurate  with the  Employee's  then  duties  and
responsibilities,  as fixed by the Bank's Board of Directors or any Committee of
the Board or of the Bank  selected  for this  purpose;  and,  to the  extent the
Employee is otherwise  eligible and qualifies,  to so participate in and receive
these  benefits  or  privileges.  The Bank  shall not make any  changes in these
plans,  benefits or privileges that would adversely affect the Employee's rights
or benefits  unless the change  occurs  pursuant to a program  applicable to all
Bank executive officers and does not result in a proportionately greater adverse
change in the rights of or benefits to the  Employee as compared  with any other
Bank  executive  officer.  Nothing  paid  to the  Employee  under  any  plan  or
arrangement  presently in effect or made available in the future shall be deemed
to be in lieu of the salary payable to the Employee pursuant to Section 5.

      Section 10.  Expenses.  The Bank shall reimburse the Employee or otherwise
provide  for or pay for all  reasonable  expenses  incurred  by the  Employee in
furtherance of or in connection with the Bank's business,  including, but not by
way  of  limitation,  automobile  and  traveling  expenses  and  all  reasonable
entertainment  expenses  whether  incurred at the  Employee's  residence,  while
traveling, or otherwise, subject to reasonable limitations as may be established
by the Bank's Board of Directors,  provided these expenses are deductible by the
Bank for federal  income  taxation  purposes.  If these expenses are paid in the
first instance by the Employee, the Bank will reimburse the Employee.


                                       3
<PAGE>

      Section  11.  Termination.  (a) (1) The  Bank's  Board  of  Directors  may
terminate the  Employee's  employment at any time,  but any  termination  by the
Bank's  Board of  Directors  other than  termination  for just cause,  shall not
prejudice the  Employee's  right to  compensation  or other  benefits  under the
Agreement.  The Employee  shall have no right to receive  compensation  or other
benefits for any period after  termination for just cause.  Termination for just
cause shall include termination  because of the Employee's personal  dishonesty,
incompetence,  willful  misconduct,  breach of fiduciary duty involving personal
profit,  intentional failure to perform stated duties,  willful violation of any
law rule, or regulation  (other than traffic  violations or similar offenses) or
final  cease-and-desist  order,  or  material  breach of any  provision  of this
Agreement.

      (2) If the  Employee  is  suspended  and/or  temporarily  prohibited  from
participating  in the  conduct of the Bank's  affairs by a notice  served  under
section  8(e)(3)  or (g)(l) of the  Federal  Deposit  Insurance  Act (12  U.S.C.
1818(e)(3)  and (g)(1)) the Bank's  obligations  under this  Agreement  shall be
suspended as of the date of service unless stayed by appropriate proceedings. If
the charges in the notice are dismissed,  the Bank may in its discretion (i) pay
the  Employee  all or part  of the  compensation  withheld  while  its  contract
obligations  were  suspended and (ii) reinstate (in whole or in part) any of its
obligations which were suspended.

      (3)  If  the  Employee  is  removed  and/or  permanently  prohibited  from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
section  8(e)(4)  or (g)(1) of the  Federal  Deposit  Insurance  Act (12  U.S.C.
1818(e)(4) or (g)(1)),  all  obligations of the Bank under this Agreement  shall
terminate  as of the  effective  date of the  order,  but  vested  rights of the
contracting parties shall not be affected.

      (4) If the Bank is in  default  (as  defined  in  section  3(x)(1)  of the
Federal  Deposit  Insurance  Act), all  obligations  under this Agreement  shall
terminate as of the date of default,  but this paragraph (b)(4) shall not affect
any vested rights of the contracting parties.

      (5) All obligations  under this Agreement  shall be terminated,  except to
the extent  determined that  continuation of this Agreement is necessary for the
continued operation of the Bank:

            (i)   by  the  Director  or his or her  designee,  at the  time  the
                  Federal Deposit Insurance Corporation enters into an agreement
                  to  provide  assistance  to or on behalf of the Bank under the
                  authority  contained in section 1 3(c) of the Federal  Deposit
                  Insurance Act; or

            (ii)  by  the  Director  or his or her  designee,  at the  time  the
                  Director or his or her designee approves a supervisory  merger
                  to resolve  problems  related to operation of the Bank or when
                  the Bank is  determined  by the Director to be in an unsafe or
                  unsound condition.

Any rights of the parties hereto that have already vested, however, shall not be
affected by such action.

      (b) In the event  employment  is  terminated  for just cause  pursuant  to
Section  11(a),  the  Employee  shall  have no  right to  compensation  or other
benefits  for  any  period  after  the  termination  date.  If the  Employee  is
terminated  by the Bank other than for just cause  pursuant to


                                       4
<PAGE>

Section 11(a) the Employee's  right to compensation  and other benefits shall be
as set forth in Section 11(j).  If employment is terminated for just cause,  the
Employee shall have the right, at the Employee's  sole option,  to appear at the
next  scheduled  regular or special  meeting of the Bank's Board of Directors at
which a quorum of the Board is present so that the Board may hear  argument from
the Employee or counsel or both and  reconsider  the  termination.  The Board of
Directors  shall  deliver to the  Employee  its  reconsidered  determination  in
writing  within  twenty (20) days after the meeting.  This  procedure  shall not
prejudice the rights of either party under Section 20.

      (c) The  Employee  shall have the  right,  upon  prior  written  Notice of
Termination  of not less than thirty (30) days  satisfying the  requirements  of
Section 11(k), to terminate  employment,  but in this event,  the Employee shall
have no right after the  termination  date to  compensation or other benefits as
provided  in this  Agreement,  unless the  termination  is for good  reason,  as
defined,  pursuant  to  Section  11 (i).  If the  Employee  provides a Notice of
Termination for good reason, as defined,  the termination date shall be the date
on which a Notice of Termination was given.

      (d) If the  Employee  is  suspended  and/or  temporarily  prohibited  from
participating  in the  conduct of the Bank's  affairs by a notice  served  under
Section 8(e) (3) or (g) (1) of the Federal Deposit Insurance Act (12 U.S.C. 1818
(e)(3)  and  (g)(1))  the  Bank's  obligations  under  this  Agreement  shall be
suspended as of the date of service unless stayed by appropriate proceedings. If
the charges in the notice are dismissed,  the Bank may in its discretion (i) pay
the  Employee all or part of the  compensation  withheld  while its  contractual
obligations  were  suspended and (ii) reinstate (in whole or in part) any of its
obligations which were suspended.

      (e) All  obligations  under this Agreement may be  terminated:  (i) by the
FDIC or successor or other regulatory agency at the time such agency enters into
an  agreement  to  provide  assistance  to or on  behalf  of the Bank  under the
authority  contained in Section 406(f) of the National  Housing Act; and (ii) by
the OTS or  successor  or other  regulatory  agency at the time that such agency
approves  a  supervisory  merger  to  resolve  problems  related  to the  Bank's
operations or when the Bank is determined by the OTS or other agency to be in an
unsafe or unsound condition, but the Employee's rights to compensation earned as
of that date shall not be affected.

      (f) If the Bank is in default, as defined to mean an adjudication or other
official  determination  by a court of  competent  jurisdiction  or other public
authority pursuant to which a conservator. receiver, or other legal custodian is
appointed for the Bank for  liquidation  purposes,  all  obligations  under this
Agreement shall terminate as of the date of default,  but the Employee's  rights
to compensation earned as of the termination date shall not be affected.

      (g) In the event that the Employee is terminated in a manner that violates
the provisions of Section 11(a), as determined by arbitration in accordance with
Section 20, the Employee shall be entitled to  reimbursement  for all reasonable
costs,   including  attorney's  fees,  in  challenging  the  termination.   This
reimbursement  shall be in  addition  to all  rights  to which the  Employee  is
otherwise entitled under this Agreement. Notwithstanding the above, the Employee
shall  be  entitled  to  indemnification  from  the  Bank  consistent  with  the
indemnification   permitted  by  the  OTS  Rules  and  Regulations  for  Federal
Associations,  codified  at 12  C.F.R.  Sec.  545.121,  and to the  full  extent
contemplated  by the Bank's  Bylaws.  In addition,  if the Employee  serves as a
director,  officer, or employee of any affiliate of the Bank, the Employee shall
be entitled to


                                       5
<PAGE>

indemnification  and exculpation  from liability to the full extent permitted by
applicable  law,  and the Bank agrees to cause all  necessary  provisions  to be
included  in, or changes  made to, the  Articles of  Incorporation  or Bylaws of
these affiliates required to accomplish this.

      (h) The Employee may terminate employment for good reason. For purposes of
this  Agreement,  "good reason" shall mean:  (i) a failure by the Bank to comply
with any material provision of this Agreement,  which failure has not been cured
within  ten (10) days  after a notice  of  noncompliance  has been  given by the
Employee to the Bank; (ii) the occurrence of a Change in Control,  as defined in
Section  11(k),  at any time  during  the term of this  Agreement;  or (iii) any
purported  termination  of the  Employee's  employment  which  is  not  effected
pursuant  to a Notice of  Termination  satisfying  the  requirements  of Section
11(i).

      (i) Any  termination  of the  Employee's  employment by the Bank or by the
Employee  shall be  communicated  by written  Notice of Termination to the other
party only after any applicable grace period's  expiration that may be set forth
in this  Agreement.  For purposes of this  Agreement,  a "Notice of Termination"
shall mean a dated notice  which shall (i)  indicate  the  specific  termination
provision in the Agreement relied upon; (ii) set forth in reasonable  detail the
facts and circumstances claimed to provide a basis for the Employee's employment
termination  under the provision so indicated;  (iii) specify a termination date
which  shall be not less than  fifteen  (15) days nor more than thirty (30) days
after a Notice  of  Termination  is  given,  except  in the  case of the  Bank's
termination  of the  Employee's  employment  for just cause  pursuant to Section
11(a),  for which the Notice of Termination must specify that the termination is
effective immediately; and (iv) be given in the manner specified in Section 14.

      (j) If the Employee shall terminate employment for good reason pursuant to
Section 11(h) or if the Bank  terminates the Employee other than for just cause,
then in  lieu  of any  further  salary  payments  to the  Employee  for  periods
subsequent  to the  termination  date,  the Bank shall pay as  severance  to the
Employee an amount equal to: (i) three (3) times the  Employee's  average annual
compensation  (computed on the basis of the most recent five (5) taxable  years)
paid to the Employee and includable in the  Employee's  gross income for federal
income tax purposes on the date on which the termination occurs, this payment to
be  made in a lump  sum on or  before  the  thirtieth  (30)  day  following  the
termination  date;  provided,  however,  that any payments  made to the Employee
pursuant to this  Agreement or otherwise,  are subject to and  conditioned  upon
compliance  with 12  U.S.C.  Section  1828(k)  and any  regulations  promulgated
thereunder.  If for any reason the basis for  termination  of this  Agreement or
payment  of amounts  under this  Section  is  disputed  by either  party to this
Agreement or any other person or agency, then pending resolution of any dispute,
within  three (3)  months  after  the due date of the  payment,  the Bank  shall
deliver the entire  amount  calculated  in  accordance  with this  Section to an
independent  trustee  to hold in an  interest  bearing  account in trust for the
benefit of the Employee and the Bank,  whichever may be  ultimately  entitled to
the same.  The  trustee  shall be a bank or savings  institution  other than the
Bank,  with deposits of at least  $250,000,000,  unrelated to any parties in the
dispute,  and disinterested in any transaction arising out of or engendering the
dispute.  If the  parties  are unable to agree upon a trustee  within  this time
period,  then either party may seek  immediate  relief from a court of competent
jurisdiction  without the  necessity  of first  resorting to  arbitration  under
Section  20. In  addition,  the Bank  agrees  that the  Employee  would  have no
adequate remedy at law for breach of these  obligations,  and the Employee shall
be entitled to immediate  injunctive and other  appropriate  equitable relief to
enforce the same without the necessity of first  resorting to arbitration  under
Section 20.


                                       6
<PAGE>

      (k) For purposes of this Agreement, a Change in Control of the Bank or the
Company  shall mean a change in control 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 Home  Owners' Loan
Act  and  the  Rules  and  Regulations  promulgated  by  the  Office  of  Thrift
Supervision (or its  predecessor  agency),  as in effect on the date hereof;  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 securities of
the Bank or the Company  representing 25% or more of the Bank's or the Company's
outstanding  securities  except for any  securities of the Bank purchased by the
Company in connection  with the conversion of the Bank to the stock form and any
securities  purchased by the Bank's  employee stock ownership plan and trust; 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,  however,  that this  sub-section (b) shall not apply if the Incumbent
Board  is  replaced  by  the  appointment  by  a  Federal  banking  agency  of a
conservator  or  receiver  for the Bank and,  provided  further  that any person
becoming a director subsequent to the date hereof whose election was approved by
a vote of at least two-thirds of the directors comprising the Incumbent Board or
whose nomination for election by the Company's  stockholders was approved by the
same  Nominating  Committee  serving  under an  Incumbent  Board,  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 (d) a proxy
statement  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 or
similar  transaction  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  and the  requisite
number of proxies approving such plan of reorganization, merger or consolidation
of the Company or Bank are received and voted in favor of such transactions;  or
(e) a tender offer is made for 25% or more of the outstanding  securities of the
Bank or Company and shareholders owning beneficially or of record 25% or more of
the  outstanding  securities  of the Bank or Company have tendered or offered to
sell their shares  pursuant to such tender offer and such  tendered  shares have
been accepted by the tender  offeror.  Notwithstanding  anything to the contrary
herein, in the event that the Bank and the Company  reorganize from the two-tier
mutual  holding  company  structure  to the single  tier stock  holding  company
structure,  such reorganization  shall not be deemed a Change in Control for any
purpose under this Agreement.  Notwithstanding  anything to the contrary herein,
in the event that the Bank and the Company  reorganize  from the two-tier mutual
holding company  structure to the single tier stock holding  company  structure,
such  reorganization  shall not be deemed a Change in  Control  for any  purpose
under this Agreement.

      (l) The  Employee  shall not be  required  to  mitigate  the amount of any
payment  provided for in Section 11(j) by seeking other employment or otherwise.
No other employment or compensation from other sources or employers shall affect
or reduce the amounts or obligations of the Bank to make payments or provide the
benefits or arrangements to the Employee under this Agreement.


                                       7
<PAGE>

      (m)  Notwithstanding  any  provision  in this  Agreement,  in the event of
termination by the Employee for "good reason" or by the Bank other than for just
cause, all then existing medical,  dental, life insurance,  and other applicable
benefit plans shall continue in force for the  Employee's  benefit at the Bank's
sole cost and expense until the employee attains the age of 70 years,  provided,
however,  that if the Employee shall subsequently  receive equivalent medical or
dental  coverage from a new  employer,  the Bank shall no longer be obligated to
continue to provide such coverage.

      Section 12. Other Benefits.  Notwithstanding anything to the contrary, the
payment or obligation to pay any monies, or granting of any rights or privileges
to the Employee as provided in this Agreement shall not be in lieu or derogation
of the rights and privileges that the Employee now has under any plan or benefit
presently outstanding.

      Section  13.  Agreement  Changes.  This  Agreement  may  not be  modified,
changed, amended, or altered except in writing, signed by the Employee or by the
Employee's duly authorized representative, and by a duly authorized Bank officer
or Chairman of the Bank's Board of Directors.

      Section 14. Notices. All notices given or required to be given shall be in
writing,  sent by United States first-class certified or registered mail, return
receipt requested  postage prepaid,  to the Employee or to the Employee's spouse
or estate upon the Employee's death at the Employee's last-known address, and to
the Bank at its principal office.  All notices shall be effective when deposited
in the mail in the manner specified in this Section. Either party by a notice in
writing may change or designate the place for receipt of all notices.

      Section 15.  Waiver of Rights.  No course of conduct  between the Bank and
the  Employee  and no delay or omission of the Bank or the  Employee to exercise
any right or power given under this Agreement  shall:  (i) impair the subsequent
exercise  of any  right or  power;  or (ii) be  construed  to be a waiver of any
default or any acquiescence in or consent to the curing of any default while any
other  default  shall  continue to exist,  or be  construed  to be a waiver of a
continuing  default or of any other right or power that shall have  arisen;  and
every power and remedy  granted by law and by this Agreement to any party may be
exercised from time to time, and as often as may be deemed expedient. All of the
rights and powers shall be cumulative to the fullest extent permitted by law.

      Section 16. Prior Agreements.  This Agreement supersedes any and all prior
Employment  Agreements  written or verbal,  between the parties all of which are
canceled.

      Section 17.  Successors.  This Agreement shall inure to the benefit of and
be binding upon the  Employee,  and, to the extent  applicable,  the  Employee's
heirs, assigns, executors, and personal representatives,  and upon the Bank, its
successors, and assigns, including, without limitation, any person, partnership,
or corporation  that may acquire all or  substantially  all of the Bank's assets
and business,  or with or into which the Bank may be consolidated or merged, and
this provision shall apply in the event of any subsequent merger, consolidation,
or  transfer  unless  a  merger  or  consolidation   or  subsequent   merger  or
consolidation  is a  transaction  of the type that would  result in  termination
under sections 11(f) and 11(g).


                                       8
<PAGE>

      Section 18. Assignment.  This Agreement is personal to each of the parties
and neither party may assign or delegate any of its rights or obligations  under
this Agreement without the prior written consent of the other party.

      Section  19.  Applicable  Law.  This  Agreement  shall be  governed in all
respects  and be  interpreted  by and  under  the laws of the State of New York,
except to the extent that the law may be  preempted by  applicable  federal law,
including  regulations,  opinions,  or orders  duly issued by the OTS or FDIC or
successor  or other  regulatory  agency  ("Federal  Law"),  in which  event this
Agreement shall be governed and be interpreted by and under Federal Law.

      Section 20. Arbitration.  Except as otherwise expressly provided elsewhere
in this  Agreement,  in the event that any  dispute  should  arise  between  the
parties as to the meaning, effect,  performance,  enforcement, or other issue in
connection with this Agreement, which dispute cannot be resolved by the parties,
except the question of Employee's  disability  under  Section 9(c),  the dispute
shall  be  decided  by  final  and  binding  arbitration  of a  panel  of  three
arbitrators  who  shall be  present  or former  executives  of  Federal  savings
institutions  located in the United States.  Proceedings in arbitration  and its
conduct shall be governed by the rules of the American  Arbitration  Association
("AAA")  applicable to commercial  arbitrations (the "Rules") except as modified
by this  Section.  The Employee  shall  appoint one  arbitrator,  the Bank shall
appoint one arbitrator,  and the third shall be appointed by the two arbitrators
appointed  by the parties.  The third  arbitrator  shall be impartial  and shall
serve as chairman of the panel.  The parties  shall  appoint  their  arbitrators
within  thirty  (30) days after the demand for  arbitration  is served,  failing
which the AAA promptly shall appoint a defaulting  party's  arbitrator,  and the
two arbitrators shall select the third arbitrator within fifteen (15) days after
their appointment,  or if they cannot agree or fail to so appoint,  then the AAA
promptly shall appoint the third arbitrator.  The arbitrators shall render their
decision in writing within thirty (30) days after the close of evidence or other
termination of the  proceedings by the panel,  and the decision of a majority of
the  arbitrators  shall be final and binding  upon the  parties,  nonappealable,
except in  accordance  with the Rules and  enforceable  in  accordance  with the
Uniform  Arbitration  Act in  force in the  State of New York or any  applicable
successor  legislation.  Any  hearings in the  arbitration  shall be held in the
Village of Mamaroneck,  New York unless the parties shall agree upon a different
venue,  and shall be private and not open to the  public.  Each party shall bear
the fees and expenses of its arbitrator,  counsel,  and witnesses,  and the fees
and expenses of the third arbitrator shall be shared equally by the parties. The
costs of the arbitration,  including the fees of AAA, shall be borne as directed
in the decision of the panel.

      Section 21.  Separability.  If for any  reason,  any section or portion of
this Agreement  shall be held by a court to be invalid or  unenforceable,  it is
agreed  that this  shall  not  affect  any  other  section  or  portion  of this
Agreement.

      Section 22. Source of Payments.  All payments  provided in this  Agreement
shall be timely  paid in cash or check from the general  funds of the Bank.  The
Company, however,  guarantees payment and provisions of all amounts and benefits
due  hereunder  to Employee  and, if such amounts and benefits due from the Bank
are not timely paid or provided by the Bank,  such amounts and benefits shall be
paid or provided by the Company.

                  [Remainder of Page Intentionally Left Blank]


                                       9
<PAGE>

IN WITNESS WHEREOF,  the parties have duly executed this Agreement as of the day
and year first above written.

ATTEST:                                     SOUND FEDERAL SAVINGS AND
                                            LOAN ASSOCIATION

/s/ William H. Morel                        /s/ Bruno J. Gioffre
----------------------                      -------------------------
Secretary

WITNESS:                                    EMPLOYEE:

/s/ Anthony J. Fabiano                      /s/ Richard P. McStravick
----------------------                      -------------------------