Document:

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                                                                   Exhibit 10.18
                                                                  CONFORMED COPY

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, made effective as of February 1, 2001 by and between
MELLON FINANCIAL CORPORATION, a Pennsylvania corporation (the "Company"), and
STEVEN G. ELLIOTT (the "Executive"),

                                WITNESSETH THAT:

         WHEREAS, the Executive is currently serving as Senior Vice Chairman of
the Company and Mellon Bank, N.A. (the "Bank" and, together with the Company,
the "Companies"), and the Company desires to retain the Executive to continue to
serve in such capacities, and the Executive is willing to continue to serve in
such capacities, on the terms and conditions herein set forth;

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto, each intending to be legally bound hereby, agree
as follows:

         1. Employment. The Company agrees to continue to employ the Executive,
and the Executive agrees to continue to be employed by the Companies, for the
Term provided in Paragraph 3(a) below and upon the other terms and conditions
hereinafter provided. The Executive hereby represents and warrants that he has
the legal capacity to execute and perform this Agreement, that it is a valid and
binding agreement, enforceable against him according to its terms, and that its
execution and performance by him do not violate the terms of any existing
agreement or understanding to which the Executive is a party.

         2. Position and Responsibilities. During the Term, the Executive agrees
to serve as Senior Vice Chairman of the Company and the Bank. In his capacity as
Senior Vice Chairman, he shall report directly to the Chairman and Chief
Executive Officer of the Company (the "Chairman") and the Bank. The Executive
(a) shall be given such authority as is appropriate to carry out the duties of
his position and (b) agrees to serve, if elected, as an officer and director of
any other subsidiary or affiliate of the Companies.

         3.  Term and Duties.

         (a) Term of Agreement. The term of the Executive's employment under
this Agreement shall commence on February 1, 2001 and shall continue thereafter
through January 31, 2004 (the "Term").

         (b) Duties. During the Term, and except for illness or incapacity and
reasonable vacation periods of no more than 4 weeks in any calendar year (or
such other periods as shall be consistent with the Company's policies for other
key executives), the Executive shall devote all of his business time, attention,
skill and efforts exclusively to the business and affairs of the Companies and
their subsidiaries and affiliates, shall not be engaged in any other business
activity, and shall perform and discharge well and faithfully the duties which
may be assigned to him from time to time by the Chairman; provided, however,
that nothing in this Agreement shall preclude the Executive from devoting time
during reasonable periods required for:

                  (i) serving, in accordance with the Company's policies and
         with the prior approval of the Chairman, which prior approval will not
         be unreasonably withheld, as a director of any company or organization
         involving no actual or potential conflict of interest with the
         Companies or any of their subsidiaries or affiliates;

                  (ii)  delivering lectures and fulfilling speaking engagements;

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                  (iii)  engaging in charitable and community activities; and

                  (iv) investing his personal assets in businesses in which his
         participation is solely that of an investor in such form or manner as
         will not violate Section 7 below or require any services on the part of
         the Executive in the operation or the affairs of such business,

provided, however, that such activities do not materially affect or interfere
with the performance of the Executive's duties and obligations to the Companies.
When approved by the Chairman in accordance with the standards of CPP-805-1,
which provide that indemnification will be granted infrequently and only if
substantial specific benefits to the Company can be demonstrated, or any
successor Policy, the Company will indemnify the Executive for service as a
director of an unaffiliated company or organization.

         4. Compensation. For all services rendered by the Executive in any
capacity required hereunder during the Term, including, without limitation,
services as an executive, officer, director, or member of any committee of the
Company, the Bank or any subsidiary, affiliate or division thereof, the
Executive shall be compensated as set forth below. It is the intention of the
Company and the Executive that the Executive's total compensation be competitive
with that paid by similar financial institutions. To assure this, the Company
will conduct an annual survey of compensation practices of a group of peer
financial institutions designated by the Human Resources Committee of the Board
("HRC").

                  (a) Base Salary. The Executive shall be paid a fixed salary
         ("Base Salary") of $605,000 per annum as of the effective date of this
         Agreement. The Base Salary amount is subject to periodic review by the
         Board or the HRC (which shall occur at least annually, with the first
         such review to take place in May 2001). Base Salary shall be payable in
         accordance with the customary payroll practices of the Companies, but
         in no event less frequently than monthly.

                  (b) Bonus. The Executive shall be paid such amounts, if any,
         as may be due under the terms of the Mellon Financial Corporation
         Profit Bonus Plan (or any successor plan) (the "Bonus Plan"), with such
         payments of bonus to be made in accordance with the terms of the Bonus
         Plan. It is understood that the Executive may receive some portion of
         his Bonus Plan award in the form of restricted stock, and such awards
         are to be made on the same terms as apply to the Chairman and to other
         members of the Executive Management Group.

                  (c) Equity-Based Compensation. The Company shall grant to the
         Executive during calendar year 2001 and in subsequent years as the HRC
         shall decide, awards (the "Awards") permitted to be granted under the
         Company's Long-Term Profit Incentive Plan (1996) or any successor plan
         (the "Long-Term Plan"), which Awards may include stock options, SARs,
         performance units, restricted stock and deferred share awards.

                  (d) Additional Benefits. Except as modified by this Agreement,
         the Executive shall be entitled to participate in all compensation or
         employee benefit plans or programs, and to receive all benefits,
         perquisites and emoluments, for which the Chairman and any member of
         senior management at the Company is eligible under any plan or program
         now or hereafter established and maintained by the Company or the Bank
         for the Chairman or any senior officers, to the extent permissible
         under the general terms and provisions of such plans or programs and in
         accordance with the provisions thereof, including group
         hospitalization, health, dental care, senior executive life or other
         life insurance, travel or accident insurance, disability plans,
         tax-qualified or non-qualified pension, savings, thrift and
         profit-sharing plans, deferred

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         compensation plans, sick-leave plans, auto allowance or auto lease
         plans, and executive contingent compensation plans, including, without
         limitation, capital accumulation programs and stock purchase plans.
         Notwithstanding the foregoing, the Executive acknowledges and agrees
         that the severance payments provided in certain circumstances under
         this Agreement and the Prior Agreement (as defined in Section 6(g)) are
         in lieu of any rights which the Executive might otherwise have under
         any and all other displacement, separation or severance plans or
         programs of the Companies, including without limitation the Mellon
         Financial Corporation Displacement Program, and the Executive hereby
         waives all rights to participate in any of such plans or programs in
         the event of the termination of his employment during the Term.

                  (e) Perquisites. The Company will also furnish the Executive,
         without cost to him, with such perquisites as are commensurate with the
         Executive's position and status, including (i) membership in such
         country and business clubs as are reasonably necessary to the conduct
         of the Companies' business, (ii) an annual physical examination of the
         Executive by a physician selected by the Executive, (iii) participation
         in the Company's matching gifts program, (iv) use of a car and driver,
         and (v) personal financial, investment and tax advice, with any firm
         selected by the Executive, not to exceed a reasonable sum per annum, to
         the extent costs or expenses of the Executive to be reimbursed are
         properly documented. To the extent the furnishing of the perquisites
         listed in this section results in taxable income being imputed to the
         Executive, the Company will reimburse the Executive for all tax costs
         incurred to restore him to the same after-tax position in which he
         would have been had income not been imputed.

         5. Business Expenses. The Companies shall pay or reimburse the
Executive for all reasonable travel and other expenses incurred by the Executive
(and his spouse where there is a legitimate business reason for his spouse to
accompany him) in connection with the performance of his duties and obligations
under this Agreement, subject to the Executive's presentation of appropriate
vouchers in accordance with such policies and procedures as the Companies from
time to time establish for senior officers.

         6. Effect of Termination of Employment; Effect of Disability.

         (a) Without Cause Termination or Constructive Discharge. Subject to the
provisions of Section 7 below, in the event the Executive's employment hereunder
terminates due to either a Without Cause Termination or a Constructive
Discharge:

                  (i) Earned but unpaid Base Salary as of the Date of
         Termination (as defined in Section 14(b)) and any earned but unpaid
         bonuses for prior years (collectively, the "Accrued Obligations"),
         shall be payable in full, and the Company shall, as liquidated damages
         or severance pay, or both:

                           (A) continue to pay the Executive's Base Salary, as
                  in effect at the Date of Termination, from the Date of
                  Termination until the end of the Term. Moreover, if said
                  termination occurs within 12 months from the end of the Term
                  of this Agreement, the Company shall continue to pay the
                  Executive's Base Salary for a period of no less than the
                  shorter period of (1) 12 months from the Date of Termination,
                  or (2) the Date of Termination until the time when the
                  Executive commences full-time employment with another
                  employer, and

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                           (B) pay to the Executive for the year of termination
                  and for each subsequent calendar year or portion thereof
                  during the remainder of the Term, an amount (prorated in the
                  case of any partial year) equal to the Cash Bonus Amount of
                  the highest bonus received by the Executive under the Bonus
                  Plan for any year in the three years preceding the Date of
                  Termination, such payments to be made at the normal times for
                  payment of bonuses under the Bonus Plan.

         With respect to the payments provided for in this Section 6(a)(i), the
         Executive shall be entitled, to the extent permitted by law as
         determined by the Company in good faith, to participate in any
         compensation deferral plans or arrangements then provided by the
         Company to senior executives on the same basis as if he had remained an
         employee through the end of the Term.

                  (ii) To the extent permitted by law, the Company shall
         continue to provide the Executive through the remainder of the Term
         with (A) service credit under all qualified and nonqualified retirement
         plans and excess benefit plans and the Supplemental Retirement Benefit
         provided under this Agreement in which the Executive participated as of
         his Date of Termination and (B) eligibility to receive employer
         matching contributions on any pre-tax contributions made by the
         Executive to the Retirement Savings Plan at the maximum rate which
         would have been available to the Executive had his employment
         continued.

                  (iii) The Company shall continue to provide Executive (and
         Executive's dependents, if applicable) for the period of salary
         continuation set forth in Section 6(a)(i)(A) above with medical,
         dental, accident, disability and life insurance benefits upon
         substantially the same terms and conditions (including contributions
         required by the Executive for such benefits) as those of the applicable
         employee benefit plans in effect from time to time as applied to
         employees; provided, however, that if the Executive cannot continue to
         participate under the terms of the Company plans providing such
         benefits, the Company shall otherwise provide such benefits on (as
         nearly as reasonably practicable) the same after-tax basis as if
         continued participation had been permitted. Notwithstanding the
         foregoing, in the event the Executive becomes re-employed with another
         employer and becomes eligible to receive welfare benefits from such
         employer, the welfare benefits described herein shall be secondary to
         such benefits during the period of the Executive's eligibility, but
         only to the extent that the Company reimburses the Executive for any
         increased cost and provides any additional benefits necessary to give
         the Executive the benefits provided hereunder.

                  (iv) All stock options and restricted stock awards granted
         after February 1, 1998 under the Long-Term Plan and outstanding as of
         the Date of Termination (other than those under which vesting is
         performance-based or is dependent upon the satisfaction of conditions
         other than continued employment) shall become immediately and fully
         vested. The Executive shall have up to three (3) years to exercise all
         such outstanding stock options following the Date of Termination, but
         in no event beyond their specified term. All Type II stock options and
         related deferred cash incentive awards granted after February 1, 1998
         under the Long-Term Plan shall not terminate or be forfeited, as the
         case may be, but shall remain outstanding and exercisable or payable,
         as the case may be, as if Executive remained employed by the Company.
         The Chairman and Chief Executive Officer of the Company shall recommend
         to the HRC, with respect to any period for which Performance Goals (as
         defined in the Long-Term Plan) relating to such Type II stock options
         and deferred cash incentive awards are achieved, that the right to
         exercise the maximum possible number of Type II stock options be
         accelerated and that the maximum possible deferred cash incentive award
         be earned and payable to the Executive upon such

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         exercise. The vesting of other Awards under which vesting is
         performance-based or is dependent upon the satisfaction of conditions
         other than continued employment shall be governed by the terms of the
         applicable award agreement. The award agreement for any Award of
         performance accelerated restricted stock granted during the Term shall
         provide that if the Executive's employment terminates due to a Without
         Cause Termination or a Constructive Discharge, the restricted stock
         shall not be forfeited, and the restrictions thereon shall lapse at the
         same times as if employment had continued.

                  (v) The perquisites set forth in Paragraphs 4(e)(i), (iv) and
         (v) shall continue through the first anniversary of the Executive's
         Date of Termination. In addition, the Company shall furnish the
         Executive with office space and secretarial support during the
         remainder of the Term or, if shorter, until the time the Executive
         commences full-time employment with another employer.

         (b) Disability. In the event of the Executive's Disability, the Company
may, by giving a Notice of Disability as provided in Section 14(c), remove the
Executive from active employment and in that event shall provide the Executive
for the remainder of the Term with the same payments and benefits as those
provided in Section 6(a), except that:

                  (i) in lieu of the bonus payments provided in Section
         6(a)(i)(B), the Executive shall receive, at the same time as bonus
         payments for the year of Disability would otherwise be made under the
         Bonus Plan, a prorated bonus for the year of Disability only equal to
         the Cash Bonus Amount of the bonus award the Executive would have
         received if he had been employed throughout the bonus year and had
         received the same performance rating as he received for the preceding
         year, prorated on a daily basis as of the Date of Disability;

                  (ii) except for Accrued Obligations, Base Salary payments
         shall be offset by any amounts otherwise payable to the Executive under
         the Company's disability program generally available to other
         employees; and

                  (iii) all stock options and restricted stock awards granted
         after February 1, 1998 under the Long-Term Plan and outstanding as of
         the Date of Disability (other than those under which vesting is
         performance-based or is dependent upon the satisfaction of conditions
         other than continued employment but including Type II stock options and
         related deferred cash incentive awards) shall become immediately and
         fully vested. The Executive shall have up to three (3) years to
         exercise all such outstanding stock options following the Date of
         Disability, but in no event beyond their specified term. The vesting of
         other Awards under which vesting is performance-based or is dependent
         upon the satisfaction of conditions other than continued employment
         shall be governed by the terms of the applicable award agreement.

         (c) Retirement. In the event the Executive's employment hereunder
 terminates due to Retirement:

                  (i) Accrued Obligations as of the Date of Retirement shall be
         payable in full;

                  (ii) the Company shall pay to the Executive, at the same time
         as bonus payments for the year of Retirement would otherwise be made
         under the Bonus Plan, a prorated bonus for the year of Retirement only
         equal to the Cash Bonus Amount of the bonus award the Executive would
         have received if he had been employed throughout the bonus year and had
         received the same

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         performance rating as he received for the preceding year, prorated on a
         daily basis as of the Date of Retirement;

                  (iii) stock options, restricted stock and other Awards under
         the Long-Term Plan shall vest and be exercisable as provided in the
         Long-Term Plan and the applicable award agreement;

                  (iv) the Executive shall receive such retirement and other
         benefits as he is entitled to receive under the terms of the Companies'
         retirement and other benefit plans, including Section 8 hereof; and

                  (v) the Executive shall receive post-Retirement perquisites
         which are not less than those which as of the time of Retirement are
         customarily provided to similarly situated retired executives.

         (d) Death. In the event the Executive's employment hereunder terminates
due to death, Accrued Obligations as of the date of death shall be payable in
full, and the Company shall pay to the Executive's estate, at the same time as
bonus payments for the year of death would otherwise be made under the Bonus
Plan, a prorated bonus for the year of death only equal to the Cash Bonus Amount
of the bonus award the Executive would have received if he had been employed
throughout the bonus year and had received the same performance rating as he
received for the preceding year, prorated on a daily basis as of the date of
death.

         All stock options and restricted stock awards granted after February 1,
1998 under the Long-Term Plan and outstanding as of the date of death (other
than those under which vesting is performance-based or is dependent upon the
satisfaction of conditions other than continued employment but including Type II
stock options and related deferred cash incentive awards) shall become
immediately and fully vested. The Executive's personal representative,
beneficiary or person who may exercise stock options under the rules of descent
and distribution or under the Executive's will shall have up to three (3) years
to exercise all such outstanding stock options following the date of death, but
in no event beyond their specified term. The vesting of other Awards under which
vesting is performance-based or is dependent upon the satisfaction of conditions
other than continued employment shall be governed by the terms of the applicable
award agreement.

         (e) Other Termination of Employment. In the event the Executive's
employment hereunder terminates due to a Termination for Cause or the Executive
terminates employment with the Company for reasons other than due to a
Constructive Discharge, Disability, Retirement or death, vested benefits and
Accrued Obligations as of the Date of Termination shall be payable in full, and
vested Awards may be exercised according to the terms of the Long-Term Plan. No
other payments shall be made, or benefits provided, by the Company except for
benefits which have already become vested under the terms of employee benefit
programs maintained by the Company or its affiliates for its employees generally
as provided in Section 10.

         (f) Definitions. For purposes of this Agreement, the following terms,
when capitalized, shall have the following meanings unless the context otherwise
requires:

                  (i) "Termination for Cause" means, to the maximum extent
         permitted by applicable law, a termination of the Executive's
         employment by the Company by a vote of the majority of the Board
         members then in office, because the Executive (a) has been convicted of
         a criminal offense covered by Section 19 of the Federal Deposit
         Insurance Act, 12 U.S.C. Section 1829, or any

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         successor provision, or (b) has entered a plea of nolo contendere
         thereto, or (c) has breached or failed to perform his duties hereunder,
         and such breach or failure to perform constitutes self-dealing, willful
         misconduct or recklessness (within the meaning of Section 1713(a) of
         the Pennsylvania Business Corporation Law, as amended, or any successor
         provision), or (d) has violated a material provision of the Company's
         Code of Conduct (as the same may be modified from time to time), or (e)
         a final determination has been reached that the Executive has violated
         the representations made in Section 1 above, or the provisions of
         Section 7 below; provided, however, that the Board has given the
         Executive advance notice of such Termination for Cause including the
         reasons therefor, together with a reasonable opportunity for the
         Executive to appear with counsel before the Board and to reply to such
         notice.

                  (ii) "Constructive Discharge" means a termination of the
         Executive's employment by the Executive due to a failure of the
         Companies or their successors to fulfill their obligations under this
         Agreement in any material respect, including (a) any failure to elect
         or reelect or to appoint or reappoint the Executive to the offices of
         Senior Vice Chairman of the Company and the Bank or (b) any other
         material change by the Companies in the functions, duties or
         responsibilities of the Executive's position with the Companies which
         would reduce the ranking or level, dignity, responsibility, importance
         or scope of such position, (c) any imposition on the Executive of a
         requirement to be permanently based at a location more than fifty miles
         from the principal office of the Company as of the date of this
         Agreement without the consent of the Executive, (d) any reduction
         without the consent of the Executive in the Executive's salary below
         the amount then provided for under Paragraph 4(a) hereof or (e) if
         Martin G. McGuinn shall no longer be Chairman and Chief Executive
         Officer of the Company and the Bank during the Term for any reason
         other than due to his death, Disability or Retirement.

                  (iii) "Without Cause Termination" means a termination of the
         Executive's employment by the Company other than due to Disability or
         expiration of the Term and other than a Termination for Cause.

                  (iv) "Disability" for purposes of this Agreement means the
         Executive shall be disabled so as to be unable to perform for 180 days
         in any 365-day period, with or without reasonable accommodation, the
         essential functions of his positions under this Agreement, as
         determined by the person or entity responsible for making
         determinations under the Company's long-term disability plan or, if any
         such person or entity is not able for any reason to make this
         determination, by another independent person or entity experienced in
         this field selected by the Company and acceptable to the Executive or
         his representative.

                  (v) "Retirement" means a voluntary termination of his
         employment by the Executive (1) on or after attainment of age 55, (2)
         on or after completion of at least five years of active employment with
         the Companies, (3) on not less than 6 months' Notice of Retirement as
         provided in Section 14 and (4) under circumstances not constituting a
         Termination for Cause, Without Cause Termination, Constructive
         Discharge, Disability or death.

                  (vi) The "Cash Bonus Amount" of a Bonus Plan award for any
         period means the sum of (1) the amount of such award paid or payable in
         cash (whether or not deferred) plus (2) with respect to any portion of
         the award paid or payable in restricted stock, phantom stock or other
         interests in Company securities, the amount of cash which would
         otherwise have been paid, excluding any premium in value given to
         compensate for risk of forfeiture or otherwise.

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                  (vii) The "Date of Termination," "Date of Disability" and
         "Date of Retirement" shall have the meanings ascribed to them in
         Section 14. To the fullest extent permitted by applicable law, to the
         extent this Agreement requires the payment of Base Salary and/or the
         provision of coverages and benefits subsequent to the Date of
         Termination or Date of Disability, the Executive's Date of Termination
         or Date of Disability, as applicable, shall not be treated as a
         termination of employment (a "Benefit Plan Termination Date") from the
         Companies for purposes of determining the Executive's rights,
         responsibilities and tax treatment under any and all employee pension,
         welfare and fringe benefit plans maintained by the Companies. Rather,
         the Benefit Plan Termination Date shall be the day following the last
         day for which any Base Salary and/or coverages and benefits are
         required to be provided by this Agreement.

         (g) Change in Control. Notwithstanding anything else contained herein,
if any termination of the Executive's employment hereunder constitutes a
"Qualifying Termination" during the "Termination Period," each as defined in the
Agreement between the Executive and the Company dated as of February 1, 1997
(the "Prior Agreement"), then the provisions of the Prior Agreement shall apply
to such termination in lieu of the provisions of this Section 6. Section 5 of
the Prior Agreement shall apply to any Payment (as therein defined) under this
Agreement to the extent provided therein. The definition of "Change in Control"
in Section 1(c) of the Prior Agreement is hereby amended by changing the phrase
"at least a majority of the members of the board of directors of the Parent
Corporation" in clause (C) of Paragraph 1(c)(iii) to read "at least half of the
members of the board of directors of the Parent Corporation."

         7. Other Duties of Executive During and After Term.

         (a) Confidential Information. The Executive recognizes and acknowledges
that certain information pertaining to the affairs, business, clients, or
customers of the Companies or any of their subsidiaries or affiliates (any or
all of such entities hereinafter referred to as the "Business"), as such
information may exist from time to time, is confidential information and is a
unique and valuable asset of the Business, access to and knowledge of which are
essential to the performance of his duties under this Agreement. The Executive
shall not, through the end of the Term or at any time thereafter, except to the
extent reasonably necessary in the performance of his duties under this
Agreement, divulge to any person, firm, association, corporation or governmental
agency, any information concerning the affairs, business, clients, or customers
of the Business (except such information as is required by law to be divulged to
a government agency or pursuant to lawful process or such information which is
or shall become part of the public realm through no fault of the Executive), or
make use of any such information for his own purposes or for the benefit of any
person, firm, association or corporation (except the Business) and shall use his
reasonable best efforts to prevent the disclosure of any such information by
others. All records and documents relating to the Business, whether made by the
Executive or otherwise coming into his possession are, shall be, and shall
remain the property of the Business. No copies thereof shall be made which are
not retained by the Business, and the Executive agrees, on any termination of
his employment, or on demand of the Company, to deliver the same to the Company.

         (b) Non-Competition. Through the end of the Term, whether during the
Executive's employment or following the termination of his employment for any
reason except for a Without Cause Termination or Constructive Discharge, the
Executive shall not without express prior written approval by order of the HRC,
directly or indirectly:

                  (i) solicit for the account of any Financial Services Company
         (other than the Company or its affiliates) the sale of any products or
         services of a type then provided by the Company or

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         its affiliates (A) during the Executive's employment, to any entity or
         individual or (B) following termination of the Executive's employment
         (1) to any entity or individual that was a customer or client of the
         Company or its affiliates at any time during the 12-month period
         immediately preceding the Executive's Date of Termination, Date of
         Disability or Date of Retirement, (2) to any individual who is a
         resident of a Restricted State or (3) to any entity where the customary
         office of the individual solicited or of the individual responsible for
         the entity's purchasing decision is located in a Restricted State.

                  (ii) solicit any employee of the Company or its affiliates to
         terminate such employment relationship.

         For purposes of this Section 7(b), the following definitions shall
apply:

                  (1) "Financial Services Company" shall mean any corporation,
         partnership, sole proprietorship or other entity engaged in the
         provision to unaffiliated customers of financial services, including,
         without limitation, retail or commercial banking, lending, lease
         financing, trade financing or other extension of credit, rate risk
         management products, loan servicing, credit card processing, investment
         banking, brokerage services, investment management or advisory
         services, sponsorship, administration or management of mutual funds or
         other collective investment vehicles, cash management, foreign
         exchange, fiduciary or custodial services, employee benefit plan
         administration, benefits consulting services, stock transfer services
         or underwriting or sale of insurance.

                  (2) "Restricted State" shall mean any State of the United
         States all or part of which is located east of the Mississippi River
         and the District of Columbia.

         In addition to the foregoing, it is understood that during his
employment the Executive is subject to all policies and procedures of the
Companies regarding investment in securities of competitors.

         (c) Remedies. The Company's obligation to make payments or provide for
or increase any benefits under this Agreement (except to the extent previously
vested) shall cease upon any violation of the provisions of this Section 7;
provided, however, that the Executive shall first have the right to appear
before the Board with counsel and that such cessation of payments or benefits
shall require a vote of a majority of the Board members then in office. In
addition, in the event of a violation by the Executive of the provisions of this
Section 7, the Company shall be entitled, if it shall so elect, to institute
legal proceedings to obtain damages for any such breach, or to enforce the
specific performance by the Executive of this Section 7 and to enjoin the
Executive from any further violation, and may exercise such remedies
cumulatively or in conjunction with such other remedies as may be available to
the Company at law or in equity. The Executive acknowledges, however, that the
remedies at law for any breach by him of the provisions of this Section 7 would
be inadequate and agrees that the Company shall be entitled to injunctive relief
against him in the event of any such breach.

         (d) Survival; Authorization to Modify Restrictions. The covenants of
the Executive contained in this Section 7 shall survive any termination of the
Executive's employment for the periods stated herein, except that the covenants
contained in Section 7(b) shall not survive any termination of employment (i)
for which a Notice of Termination is given during the Termination Period
following a Change in Control, each as defined in the Prior Agreement or (ii)
which is a termination of employment described in the second sentence of Section
1(j) of the Prior Agreement. The Executive represents that his experience and
capabilities are such that the enforcement of the provisions of this Section 7
will not

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prevent him from earning his livelihood, and acknowledges that it would cause
the Company serious and irreparable injury and cost if Executive were to use his
ability and knowledge in competition with the Company or to otherwise breach the
obligations contained in this Section 7. Accordingly, it is the intention of the
parties that the provisions of this Section 7 shall be enforceable to the
fullest extent permissible under applicable law, but that the unenforceability
(or modification to conform to such law) of any provision or provisions hereof
shall not render unenforceable, or impair, the remainder thereof. If any
provision or provisions hereof shall be deemed invalid or unenforceable, either
in whole or in part, this Agreement shall be deemed amended to delete or modify,
as necessary, the offending provision or provisions and to alter the bounds
thereof to the extent required in order to render it valid and enforceable.

         8. Supplemental Retirement Benefit. The Executive will be entitled to
receive a monthly Supplemental Retirement Benefit (the "Supplemental Retirement
Benefit") commencing on the first day of the month coincident with or following
the later of the Executive's termination of employment or attainment of age 60
and continuing for the remainder of his life. Unless otherwise elected by the
Executive, the Supplemental Retirement Benefit shall be payable in the form of a
50% joint and survivor annuity which shall be unreduced for the actuarial value
of the survivor's benefit. If the Executive's spouse at the time of his death is
not more than four years younger than the Executive, the survivor benefit shall
be equal to 50% of the Executive's benefit and shall be payable to his spouse
for the remainder of the spouse's life. If the Executive's spouse at the time of
his death is more than four years younger than the Executive, the benefit
payable to the spouse shall be reduced to a benefit having the same actuarial
value as the benefit that would have been payable had the spouse been four years
younger than the Executive. The Executive shall also have the right to elect a
100% joint and survivor annuity, on an actuarially-reduced basis or a lump-sum
payment, on an actuarially-reduced basis (if the Executive makes a timely
lump-sum election which avoids constructive receipt), or any other form of
payment available or provided under the "Supplemental Plans" defined in this
Section 8. Actuarial reductions shall be based on the actual ages of the
Executive and his spouse at the time of retirement. If the Executive is not
married at the time of his retirement, actuarial adjustments shall be made as if
the Executive had a spouse with the same date of birth as the Executive. In the
event that the Executive elects a form of payment other than the automatic 50%
joint and survivor annuity or other than a lump sum payment, and remarries
subsequent to retirement, the benefits payable under this Section shall be
actuarially adjusted at the time of the Executive's death to reflect the age of
the subsequent spouse. If the Executive elects a lump sum payment at retirement,
no further benefits will be payable under this Section.

         The amount of the monthly retirement benefit as an unreduced 50% joint
and survivor annuity shall be equal to the product of (A) the "Service
Percentage" multiplied by (B) the Executive's "Final Average Compensation," with
such product reduced by (C) the total monthly amount of benefits (measured for
purposes of this offset as if the Executive elected a 50% joint and survivor
annuity payable as of the date benefits commence under this Agreement) provided
to or in respect of the Executive under all tax-qualified retirement plans and
related excess benefit and other benefit restoration plans maintained by the
Company or the Bank for the Executive, including the Mellon Bank Benefit
Restoration Plan and the Mellon Bank IRC Section 401(a)(17) Plan (the
"Supplemental Plans") and benefits paid pursuant to Section 4.7 of the Mellon
Financial Corporation Elective Deferred Compensation Plan for Senior Officers,
but not including payments of any compensation previously deferred under any
deferred compensation plan of the Company or the Bank, or interest thereon, or
payments from the Mellon Financial Corporation Retirement Savings Plan, a 401(k)
plan.

                                      -10-
<PAGE>   11

         The Executive owns interests in life insurance policies (the
"Policies") as a participant in the Mellon Bank Senior Executive Life Insurance
Plan. The Supplemental Retirement Benefit payable to the Executive hereunder
shall be further reduced by the Executive's interest in the cash value of the
Policies. This reduction shall be calculated in the same manner as under the
Supplemental Plans. In the event the United States federal income tax laws
change or are interpreted so as to cause Executive's ownership interests in
Policies to be subject to taxation, the Executive and the Company will negotiate
in good faith to mitigate the effects of such change.

         The Executive shall be vested in the Supplemental Retirement Benefit
provided under this Paragraph as of February 1, 1998.

         The Executive shall elect the form of payment of his Supplemental
Retirement Benefit at the same time and subject to the same provisions
(including timing requirements and all reductions and/or penalties for late
elections) as provided under the Supplemental Plans. After retirement, the
Executive (or beneficiary who is receiving payments) may elect to receive his
remaining Supplemental Retirement Benefits which are payable hereunder in a lump
sum payment, calculated in the same manner and subject to the same reductions as
under the Supplemental Plans. In the event that the Executive elects a form of
payment of his Supplemental Retirement Benefits which provides for payments to
continue after his death and the Executive dies without having received all
payments of Supplemental Retirement Benefits that may be payable hereunder, then
the unpaid balance of such benefits shall be paid in accordance with the form of
payment elected by the Executive. Any such remaining payments shall be made to
the Executive's beneficiary provided under the Supplemental Plans, subject to
any contrary written instructions from the Executive designating a different
beneficiary for such payments.

         The Executive may also elect, upon not less than 12 months' advance
written notice, to have the payment of the Supplemental Retirement Benefit
commence on the first day of any month coincident with or after the later of his
termination of employment or attainment of age 55. In this event, the
Supplemental Retirement Benefit will be subject to an early payment reduction
amount equal to 0.5% per month (6% per annum) for each month that payments
commence before attainment of age 60. In the event of such retirement, the Term
and the Company's obligations to make payments under Section 4 above shall cease
as of the retirement date.

         The Executive may also elect, upon not less than 12 months' advance
written notice prior to the commencement of Supplemental Retirement Benefit
payments, to have the lump sum value of the Supplemental Retirement Benefit to
which the Executive would otherwise be entitled applied to the purchase of a
single premium annuity in a form and from an issuer selected or concurred in by
the Executive. In the event of such an election by the Executive, the sole
responsibilities of the Company shall be to apply the amount of the lump sum
value of the Supplemental Retirement Benefit to the purchase of the annuity
selected or concurred in by the Executive and the distribution of such annuity
to the Executive. Thereafter, the Executive shall look solely to the issuer of
the annuity for payment on account of or in connection with the Supplemental
Retirement Benefit and agrees that the Company and its affiliates, and each of
their officers, directors and employees, shall have no further liability in
respect of the Supplemental Retirement Benefit or by reason of the application
of the lump sum value as elected by the Executive or the selection of the form
or issuer of the annuity.

         Notwithstanding the foregoing, in no event shall the Executive receive
any payments under this Section 8 or be deemed to be retired from the Company
while the Executive is entitled to payments under Paragraph 6(a) or Paragraph
6(b) or during any period for which the Executive receives additional

                                      -11-
<PAGE>   12

service credit in respect of a "Qualifying Termination" as provided in clause
(B) of the definition of "Service Percentage" below.

         As used in this Section 8:

                  (i) "Service Percentage" means 2% for each full or partial
         year of the Executive's employment with the Company (plus service with
         a prior employer if treated as credited service with the Company)
         commencing August 10, 1987 and ending as of the date his active
         employment with the Company terminates, plus 2% for (A) each full year,
         if any, that the Executive receives payments under Paragraph 6(a) or
         6(b) hereof (with such percentage pro-rated for the partial contract
         year in which such final termination of the Executive's employment
         occurs or in which such final payments under Paragraph 6(a) or 6(b)
         hereof are made, whichever shall be applicable) or (B) for each of the
         three years following any "Qualifying Termination" of the Executive's
         Employment during the "Termination Period," each as defined in the
         Prior Agreement.

                  (ii) "Final Average Compensation" means one-twelfth (1/12th)
         of the sum of the Executive's Base Salary paid and the Cash Bonus
         Amount of any bonus award earned for the calendar year within the final
         three (3) full calendar years of the Executive's employment by the
         Company which produces the highest amount. For purposes of determining
         Final Average Compensation (A) Bonus Plan awards shall be attributed to
         the calendar year in which earned, whether paid in that calendar year
         or the year following or deferred and (B) any portion of the
         Executive's Base Salary and bonus award which is deferred by the
         Executive under agreements with the Company or under any Company
         employee benefit plan shall be included for purposes of determining
         Final Average Compensation.

         Notwithstanding the foregoing, in the event of a "Qualifying
Termination" of the Executive's employment during the "Termination Period," each
as defined in the Prior Agreement, "Final Average Compensation" for purposes of
computing the Supplemental Retirement Benefit shall mean one-twelfth (1/12th) of
the sum of (i) the Executive's highest annual rate of base salary during the
12-month period immediately prior to the Executive's Date of Termination and
(ii) the Executive's Bonus Amount, as defined in the Prior Agreement. In
addition, the Supplemental Retirement Benefit shall be payable without any
reduction for early payment in the event the Executive is less than age 60 at
the time that payment is made. In the event of such a "Qualifying Termination,"
the present value of the Supplemental Retirement Benefit shall be payable to the
Executive in a lump sum at the same time payments are due to the Executive under
Section 4(a) of the Prior Agreement (i.e., within 20 days following the
Executive's Date of Termination). The present value shall be calculated in the
same manner and using the actuarial factors set forth in the Supplemental Plans
as of the effective date of this Agreement.

         In the event the Executive's termination of employment is due to death
prior to the commencement of the payment of Supplemental Retirement Benefits
under this Section 8, and he shall be survived by a spouse, entitlement to
Supplemental Retirement Benefits will become fully vested and such spouse shall
be entitled to receive a pre-retirement death benefit, payable in the form of a
lifetime annuity, equal to the benefit that would have been payable had he
retired immediately prior to death and elected a 50% joint and survivor annuity,
but without any early payment reductions applicable for payments prior to age
60. If the Executive's spouse at the time of his death is more than four years
younger than the Executive, the benefit payable to the survivor shall be reduced
to a benefit having the

                                      -12-
<PAGE>   13

same actuarial value as the benefit that would have been payable had the spouse
been four years younger than the Executive.

         The Executive's entitlement to Supplemental Retirement Benefits under
this Section 8 shall survive the expiration of the Term and any other
termination of this Agreement.

         9. Resolution of Disputes. Except as otherwise provided in Section 7(c)
hereof, any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Pittsburgh,
Pennsylvania, by three arbitrators in accordance with the rules of the American
Arbitration Association then in effect. Judgment may be entered on the
arbitrators' award in any court having jurisdiction. In the event of any
arbitration, litigation or other proceeding between the Company and the
Executive with respect to the subject matter of this Agreement and the
enforcement of rights hereunder, the Company shall reimburse the Executive for
his reasonable costs and expenses relating to such arbitration, litigation or
other proceeding, including attorneys' fees and expenses, provided that such
arbitration, litigation or other proceeding results in any: (i) settlement
requiring the Company to make a payment, continue to make payments or provide
any other benefit to the Executive; or (ii) judgment, order or award against the
Company in favor of the Executive or his spouse, legal representative or heirs,
unless such judgment, order or award is subsequently reversed on appeal or in a
collateral proceeding. At the request of the Executive, costs and expenses
(including attorneys' fees) incurred in connection with any arbitration,
litigation or other proceeding referred to in this Section shall be paid by the
Company in advance of the final disposition of the arbitration, litigation or
other proceeding upon receipt of an undertaking by or on behalf of the Executive
to repay the amounts advanced if it is ultimately determined that he is not
entitled to reimbursement of such costs and expenses by the Company as set forth
in this Section.

         10. Full Settlement; No Mitigation; Non-Exclusivity of Benefits. Except
as provided in Section 6(g), the Company's obligation to make any payment
provided for in this Agreement and otherwise to perform its obligations
hereunder shall be in lieu and in full settlement of all other severance
payments to the Executive under any other severance plan, arrangement or
agreement of the Company and its affiliates, including but not limited to the
Mellon Financial Corporation Displacement Program, and in full settlement of any
and all claims or rights of the Executive for severance, separation and/or
salary continuation payments resulting from the termination of his employment.
In no event shall the Executive be obligated to seek other employment or to take
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement, and except as specifically provided
herein, such amounts shall not be reduced whether or not the Executive obtains
other employment. Except as provided above in this Section 10, nothing in this
Agreement shall prevent or limit the Executive's continuing or future
participation in any plan, program, policy or practice provided by the Company
or any of its affiliates for which the Executive may qualify, nor, except as
otherwise specifically provided in this Agreement, shall anything herein limit
or otherwise affect such rights as the Executive may have under any contract or
agreement with the Company or any of its affiliates, including without
limitation any stock option or restricted stock agreement. Amounts or benefits
which are vested benefits or which the Executive is otherwise entitled to
receive under any such plan, program, policy, practice, contract or agreement
prior to, at or subsequent to any Date of Termination, Date of Disability or
Date of Retirement shall be paid or provided in accordance with the terms of
such plan, program, policy, practice, contract or agreement except as explicitly
modified by this Agreement.

         11. Employment and Payments by Affiliates. Except as herein otherwise
specifically provided, references in this Agreement to employment by the Company
shall include employment by affiliates of

                                      -13-
<PAGE>   14

the Company, and the obligation of the Company to make any payment or provide
any benefit to the Executive hereunder shall be deemed satisfied to the extent
that such payment is made or such benefit is provided by any affiliate of the
Company.

         12. Withholding Taxes. The Company may directly or indirectly withhold
from any payments made under this Agreement all Federal, state, city or other
taxes as shall be required pursuant to any law or governmental regulation or
ruling.

         13. Consolidation, Merger, or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another corporation or
entity which assumes this Agreement and all obligations and undertakings of the
Company hereunder. Upon such a consolidation, merger or transfer of assets and
assumption, the term, "Company" as used herein shall mean such other corporation
or entity, and this Agreement shall continue in full force and effect.

         14. Notices.

         (a) General. All notices, requests, demands and other communications
required or permitted hereunder shall be given in writing and shall be deemed to
have been duly given when delivered or 5 days after being deposited in the
United States mail, certified and return receipt requested, postage prepaid,
addressed as follows:

         (i)      To the Company:

                  Manager-Human Resources Department
                  Mellon Bank, N.A.
                  One Mellon Center
                  Pittsburgh, Pennsylvania 15258

         (ii)     To the Executive:

                  Steven G. Elliott
                  74 Fair Oaks Drive
                  Pittsburgh, PA  15238-1936

or to such other address as the addressee party shall have previously specified
in writing to the other.

         (b) Notice of Termination. Except in the case of death of the
Executive, any termination of the Executive's employment hereunder, whether by
the Executive or the Company, shall be effected only by a written notice given
to the other party in accordance with this Section 14 (a "Notice of
Termination"). Any Notice of Termination shall (i) indicate the specific
termination provision in Section 6 relied upon, (ii) in the case of a
termination for Cause or a Constructive Discharge, set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such
termination and (iii) specify the effective date of such termination of
employment (the "Date of Termination"), which shall not be less than 15 days nor
more than 60 days after such notice is given. The failure of the Executive or
the Company to set forth in any Notice of Termination any fact or circumstance
which contributes to a showing of Cause or Constructive Discharge shall not
waive any right of the Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive's or the Company's rights hereunder.

                                      -14-
<PAGE>   15

         (c) Notice of Disability. Any finding of Disability by the Company
shall be effected only by a written notice given to the Executive in accordance
with this Section 14 (a "Notice of Disability"). Any Notice of Disability shall
(i) set forth in reasonable detail the facts and circumstances claimed to
provide a basis for such finding of Disability and (ii) specify an effective
date (the "Date of Disability"), which shall not be less than 10 days after such
notice is given. The failure of the Company to set forth in any Notice of
Disability any fact or circumstance which contributes to a showing of Disability
shall not waive any right of the Company hereunder or preclude the Company from
asserting such fact or circumstance in enforcing the Company's rights hereunder.

         (d) Notice of Retirement. Retirement shall be effected only by a
written notice given by the Executive in accordance with this Section 14 (a
"Notice of Retirement"). Any Notice of Retirement shall (i) indicate that it is
a Notice of Retirement and (ii) specify an effective date (the "Date of
Retirement) which shall not be less than six months after such notice is given.

         15. No Attachment. Except as required by law, no right to receive
payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or
to execution, attachment, levy or similar process or assignment by operation of
law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect; provided, however, that nothing in this Section
15 shall preclude the assumption of such rights by executors, administrators, or
other legal representatives of the Executive or his estate or their assigning
any rights hereunder to the person or persons entitled thereto.

         16. Source of Payments. Subject to Section 11 hereof, all payments
provided for under this Agreement shall be paid in cash from the general funds
of the Company. The Company shall not be required to establish a special or
separate fund or other segregation of assets to assure such payments, and, if
the Company shall make any investments to aid it in meeting its obligations
hereunder, the Executive shall have no right, title or interest whatever in or
to any such investments except as may otherwise be expressly provided in a
separate written instrument relating to such investments. Nothing contained in
this Agreement, and no action taken pursuant to its provisions, shall create or
be construed to create a trust of any kind, or a fiduciary relationship, between
the Company and the Executive or any other person. To the extent that any person
acquires a right to receive payments from the Company hereunder, such right
shall be no greater than the right of an unsecured creditor.

         17. Binding Agreement. This Agreement shall be binding upon, and shall
inure to the benefit of, the Executive and the Company and, as permitted by this
Agreement, their respective successors, assigns, heirs, beneficiaries and
representatives.

         18. Governing Law. The validity, interpretation, performance and
enforcement of this Agreement shall be governed exclusively by the laws of the
Commonwealth of Pennsylvania, without regard to principles of conflicts of laws
thereof.

                                      -15-
<PAGE>   16

         19. Counterparts; Headings. This Agreement may be executed in
counterparts, each of which, when executed, shall be deemed to be an original
and all of which together shall be deemed to be one and the same instrument. The
underlined Section headings contained in this Agreement are for convenience of
reference only and shall not affect the interpretation or construction of any
provision hereof.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and its seal to be affixed hereunto by its officers thereunto duly
authorized, and the Executive has signed this Agreement, all as of the first
date above written.

ATTEST:                                MELLON FINANCIAL CORPORATION

        /s/ Carl Krasik                By: /s/ Martin G. McGuinn
------------------------------------      -------------------------------------
          Carl Krasik                          Martin G. McGuinn
           Secretary                     Chairman and Chief Executive Officer

                                           /s/ Steven G. Elliott
                                       ----------------------------------------
                                              STEVEN G. ELLIOTT

                                      -16-<PAGE>   1
                                                                   Exhibit 10.19

         THIS AGREEMENT is entered into as of the DATE by and between Mellon
Financial Corporation (the "Company"), a Pennsylvania corporation, and NAME
("Executive").

                               W I T N E S S E T H

         WHEREAS, the Company considers the establishment and maintenance of a
sound and vital management to be essential to protecting and enhancing the best
interests of the Company and its shareholders; and

         WHEREAS, the Company recognizes that, as is the case with many publicly
held corporations, the possibility of a change in control may arise and that
such possibility may result in the departure or distraction of management
personnel to the detriment of the Company and its shareholders; and

         WHEREAS, the Human Resources Committee (the "Committee") of the Board
of Directors of the Company (the "Board") has determined that it is in the best
interests of the Company and its shareholders to secure Executive's continued
services and to ensure Executive's continued and undivided dedication to his
duties in the event of any threat or occurrence of a Change in Control (as
defined in Section 1) of the Company; and

         WHEREAS, the Committee has authorized the Company to enter into this
Agreement.

         NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, the Company and Executive hereby agree as follows:

         1.       Definitions.  As used in this Agreement, the following terms
shall have the respective meanings set forth below:

                  (a) "Bonus Amount" means the highest annual incentive bonus
earned by Executive from the Company (or its affiliates) during the last three
(3) completed fiscal years of the Company immediately preceding Executive's Date
of Termination (annualized in the event Executive was not employed by the
Company (or its affiliates) for the whole of any such fiscal year).

                  (b) "Cause" means (i) the willful and continued failure of
Executive to perform substantially his duties with the Company (other than any
such failure resulting from Executive's incapacity due to physical or mental
illness or any such failure subsequent to Executive being delivered a Notice of
Termination without Cause by the Company or delivering a Notice of Termination
for Good Reason to the Company) after a written demand for substantial
performance is delivered to Executive by the Board which specifically identifies
the manner in which the Board believes that Executive has not substantially
performed Executive's duties, (ii)

<PAGE>   2

the willful engaging by Executive in illegal conduct or gross misconduct which
is demonstrably and materially injurious to the Company or its affiliates, or
(iii) the conviction of Executive of, or a plea by Executive of nolo contendere
to, a felony. For purpose of this paragraph (b), no act or failure to act by
Executive shall be considered "willful" unless done or omitted to be done by
Executive in bad faith and without reasonable belief that Executive's action or
omission was in the best interests of the Company or its affiliates. Any act, or
failure to act, based upon authority given pursuant to a resolution duly adopted
by the Board, based upon the advice of counsel for the Company or upon the
instructions of the Company's chief executive officer or another senior officer
of the Company shall be conclusively presumed to be done, or omitted to be done,
by Executive in good faith and in the best interests of the Company. Cause shall
not exist unless and until the Company has delivered to Executive a copy of a
resolution duly adopted by three-fourths (3/4) of the entire Board (excluding
Executive if Executive is a Board member) at a meeting of the Board called and
held for such purpose (after reasonable notice to Executive and an opportunity
for Executive, together with counsel, to be heard before the Board), finding
that in the good faith opinion of the Board an event set forth in clauses (i) or
(ii) has occurred and specifying the particulars thereof in detail. The Company
must notify Executive of any event constituting Cause within ninety (90) days
following the Company's knowledge of its existence or such event shall not
constitute Cause under this Agreement.

                  (c) "Change in Control" means the occurrence of any one of the
following events:

                           (i) individuals who, on January 17, 1997, constitute
                  the Board (the "Incumbent Directors") cease for any reason to
                  constitute at least a majority of the Board, provided that any
                  person becoming a director subsequent to January 17, 1997,
                  whose election or nomination for election was approved by a
                  vote of at least two-thirds of the Incumbent Directors then on
                  the Board (either by a specific vote or by approval of the
                  proxy statement of the Company in which such person is named
                  as a nominee for director, without written objection by such
                  Incumbent Directors to such nomination) shall be deemed to be
                  an Incumbent Director; provided, however, that no individual
                  elected or nominated as a director of the Company initially as
                  a result of an actual or threatened election contest with
                  respect to directors or any other actual or threatened
                  solicitation of proxies by or on behalf of any person other
                  than the Board shall be deemed to be an Incumbent Director;

                           (ii) any "person" (as such term is defined in Section
                  3(a)(9) of the Securities Exchange Act of 1934, as amended
                  (the "Exchange Act") and as used in Sections 13(d)(3) and
                  14(d)(2) of the Exchange Act) is or becomes a "beneficial
                  owner" (as defined in Rule 13d-3 under the Exchange Act),
                  directly or indirectly, of securities of the Company
                  representing 15% or more of the combined voting power of the
                  Company's then outstanding securities eligible to vote for the
                  election of the Board (the "Company Voting Securities");
                  provided,

                                       2
<PAGE>   3

                  however, that the event described in this paragraph (ii) shall
                  not be deemed to be a Change in Control by virtue of any of
                  the following acquisitions: (A) by the Company or any
                  Subsidiary, (B) by any employee benefit plan sponsored or
                  maintained by the Company or any Subsidiary, or by any
                  employee stock benefit trust created by the Company or any
                  Subsidiary, (C) by any underwriter temporarily holding
                  securities pursuant to an offering of such securities, (D)
                  pursuant to a Non-Qualifying Transaction (as defined in
                  paragraph (iii)), (E) pursuant to any acquisition by Executive
                  or any group of persons including Executive (or any entity
                  controlled by Executive or any group of persons including
                  Executive); or (F) a transaction (other than one described in
                  (iii) below) in which Company Voting Securities are acquired
                  from the Company, if a majority of the Incumbent Directors
                  approves a resolution providing expressly that the acquisition
                  pursuant to this clause (F) does not constitute a Change in
                  Control under this paragraph (ii);

                           (iii) the consummation of a merger, consolidation,
                  share exchange or similar form of corporate transaction
                  involving the Company or any of its Subsidiaries that requires
                  the approval of the Company's shareholders, whether for such
                  transaction or the issuance of securities in the transaction
                  (a "Business Combination"), unless immediately following such
                  Business Combination: (A) more than 50% of the total voting
                  power of (x) the corporation resulting from the consummation
                  of such Business Combination (the "Surviving Corporation"), or
                  (y) if applicable, the ultimate parent corporation that
                  directly or indirectly has beneficial ownership of 100% of the
                  voting securities eligible to elect directors of the Surviving
                  Corporation (the "Parent Corporation"), is represented by
                  Company Voting Securities that were outstanding immediately
                  prior to such Business Combination (or, if applicable,
                  represented by shares into which such Company Voting
                  Securities were converted pursuant to such Business
                  Combination), and such voting power among the holders thereof
                  is in substantially the same proportion as the voting power of
                  such Company Voting Securities among the holders thereof
                  immediately prior to the Business Combination, (B) no person
                  (other than any employee benefit plan sponsored or maintained
                  by the Surviving Corporation or the Parent Corporation or any
                  employee stock benefit trust created by the Surviving
                  Corporation or the Parent Corporation), is or becomes the
                  beneficial owner, directly or indirectly, of 15% or more of
                  the total voting power of the outstanding voting securities
                  eligible to elect directors of the Parent Corporation (or, if
                  there is no Parent Corporation, the Surviving Corporation) and
                  (C) at least half of the members of the board of directors of
                  the Parent Corporation (or, if there is no Parent Corporation,
                  the Surviving Corporation) were Incumbent Directors at the
                  time of the Board's approval of the execution of the initial
                  agreement providing for such Business Combination (any
                  Business Combination which satisfies all of the criteria
                  specified in (A), (B) and (C) above shall be deemed to be a
                  "Non-Qualifying Transaction"); or

                                       3
<PAGE>   4

                           (iv) the shareholders of the Company approve a plan
                  of complete liquidation or dissolution of the Company or a
                  sale of all or substantially all of the Company's assets.

         Notwithstanding the foregoing, a Change in Control of the Company shall
not be deemed to occur solely because any person acquires beneficial ownership
of more than 15% of the Company Voting Securities as a result of the acquisition
of Company Voting Securities by the Company which reduces the number of Company
Voting Securities outstanding; provided, that if after such acquisition by the
Company such person becomes the beneficial owner of additional Company Voting
Securities that increases the percentage of outstanding Company Voting
Securities beneficially owned by such person, a Change in Control of the Company
shall then occur.

                  (d) "Date of Termination" means (1) the effective date on
which Executive's employment by the Company terminates as specified in a prior
written notice by the Company or Executive, as the case may be, to the other,
delivered pursuant to Section 10 or (2) if Executive's employment by the Company
terminates by reason of death, the date of death of Executive.

                  (e) "Disability" means termination of Executive's employment
by the Company due to Executive's absence from Executive's duties with the
Company on a full-time basis for at least one hundred eighty (180) consecutive
days as a result of Executive's incapacity due to physical or mental illness.

                  (f) "Good Reason" means, without Executive's express written
consent, the occurrence of any of the following events after a Change in
Control:

                           (i) (A) any change in the duties or responsibilities
                  (including reporting responsibilities) of Executive that is
                  inconsistent in any material and adverse respect with
                  Executive's position(s), duties, responsibilities or status
                  with the Company immediately prior to such Change in Control
                  (including any material and adverse diminution of such duties
                  or responsibilities) or (B) a material and adverse change in
                  Executive's titles or offices (including, if applicable,
                  membership on the Board) with the Company as in effect
                  immediately prior to such Change in Control;

                           (ii) (A) a reduction by the Company in Executive's
                  rate of annual base salary as in effect immediately prior to
                  such Change in Control or as the same may be increased from
                  time to time thereafter, or (B) the failure by the Company to
                  pay Executive an annual bonus in respect of the year in which
                  such Change in Control occurs or any subsequent year in an
                  amount greater than or equal to the annual bonus earned for
                  the year prior to the year in which such Change in Control
                  occurs;

                                       4
<PAGE>   5

                           (iii) any requirement of the Company that Executive
                  (A) be based anywhere more than fifty (50) miles from the
                  office where Executive is located at the time of the Change in
                  Control or (B) travel on Company business to an extent
                  substantially greater than the travel obligations of Executive
                  immediately prior to such Change in Control;

                           (iv) the failure of the Company to (A) continue in
                  effect any employee benefit plan, compensation plan, welfare
                  benefit plan or material fringe benefit plan in which
                  Executive is participating immediately prior to such Change in
                  Control or the taking of any action by the Company which would
                  adversely affect Executive's participation in or reduce
                  Executive's benefits under any such plan, unless Executive is
                  permitted to participate in other plans providing Executive
                  with substantially equivalent benefits in the aggregate (at
                  substantially equivalent cost with respect to welfare benefit
                  plans), or (B) provide Executive with paid vacation in
                  accordance with the most favorable vacation policies of the
                  Company and its affiliated companies as in effect for
                  Executive immediately prior to such Change in Control,
                  including the crediting of all service for which Executive had
                  been credited under such vacation policies prior to the Change
                  in Control; or

                           (v) the failure of the Company to obtain the
                  assumption (and, if applicable, guarantee) agreement from any
                  successor (and Parent Corporation) as contemplated in Section
                  9(b).

         Notwithstanding anything herein to the contrary, termination of
employment by Executive for any reason during the 30-day period commencing one
(1) year after the date of a Change in Control shall constitute Good Reason.

         An isolated, insubstantial and inadvertent action taken in good faith
and which is remedied by the Company within ten (10) days after receipt of
notice thereof given by Executive shall not constitute Good Reason. Executive's
right to terminate employment for Good Reason shall not be affected by
Executive's incapacities due to mental or physical illness and Executive's
continued employment shall not constitute consent to, or a waiver of rights with
respect to, any event or condition constituting Good Reason; provided, however,
that Executive must provide notice of termination of employment within
one-hundred eighty (180) days following Executive's knowledge of an event
constituting Good Reason or such event shall not constitute Good Reason under
this Agreement.

                  (g) "Qualifying Termination" means a termination of
Executive's employment (i) by the Company other than for Cause or (ii) by
Executive for Good Reason. Termination of Executive's employment on account of
death, Disability or Retirement shall not be treated as a Qualifying
Termination.

                                       5
<PAGE>   6

                  (h) "Retirement" means the termination of Executive's
employment on or after the first of the month coincident with or following
Executive's attainment of age 65, or such later date as may be provided in a
written agreement between the Company and the Executive.

                  (i) "Subsidiary" means any corporation or other entity in
which the Company has a direct or indirect ownership interest of 50% or more of
the total combined voting power of the then outstanding securities or interests
of such corporation or other entity entitled to vote generally in the election
of directors or in which the Company has the right to receive 50% or more of the
distribution of profits or 50% of the assets upon liquidation or dissolution.

                  (j) "Termination Period" means the period of time beginning
with a Change in Control and ending three (3) years following such Change in
Control. Notwithstanding anything in this Agreement to the contrary, if (i)
Executive's employment is terminated prior to a Change in Control for reasons
that would have constituted a Qualifying Termination if they had occurred
following a Change in Control; (ii) Executive reasonably demonstrates that such
termination (or Good Reason event) was at the request of a third party who had
indicated an intention or taken steps reasonably calculated to effect a Change
in Control; and (iii) a Change in Control involving such third party (or a party
competing with such third party to effectuate a Change in Control) does occur,
then for purposes of this Agreement, the date immediately prior to the date of
such termination of employment or event constituting Good Reason shall be
treated as a Change in Control. For purposes of determining the timing of
payments and benefits to Executive under Section 4, the date of the actual
Change in Control shall be treated as Executive's Date of Termination under
Section 1(d).

         2.       Obligation of Executive. In the event of a tender or exchange
offer, proxy contest, or the execution of any agreement which, if consummated,
would constitute a Change in Control, Executive agrees not to voluntarily leave
the employ of the Company, other than as a result of Disability, Retirement or
an event which would constitute Good Reason if a Change in Control had occurred,
until the Change in Control occurs or, if earlier, such tender or exchange
offer, proxy contest, or agreement is terminated or abandoned.

         3.       Term of Agreement. This Agreement shall be effective on the
date hereof and shall continue in effect until the Company shall have given
three (3) years' written notice of cancellation; provided, that, notwithstanding
the delivery of any such notice, this Agreement shall continue in effect for a
period of three (3) years after a Change in Control, if such Change in Control
shall have occurred during the term of this Agreement. Notwithstanding anything
in this Section to the contrary, this Agreement shall terminate if Executive or
the Company terminates Executive's employment prior to a Change in Control
except as provided in Section 1(j).

                                       6
<PAGE>   7

         4.       Payments Upon Termination of Employment.

                  (a) Qualifying Termination -- Cash Payment. If during the
Termination Period the employment of Executive shall terminate pursuant to a
Qualifying Termination, then the Company shall provide to Executive, subject to
the provisions of Section 11 hereunder:

                           (i) within twenty (20) days following the Date of
                  Termination a lump-sum cash amount equal to the sum of (A)
                  Executive's base salary through the Date of Termination and
                  any bonus amounts which have become payable, to the extent not
                  theretofore paid or deferred, (B) a pro rata portion of
                  Executive's annual bonus for the fiscal year in which
                  Executive's Date of Termination occurs in an amount at least
                  equal to (1) Executive's Bonus Amount, multiplied by (2) a
                  fraction, the numerator of which is the number of days in the
                  fiscal year in which the Date of Termination occurs through
                  the Date of Termination and the denominator of which is three
                  hundred sixty-five (365), and reduced by (3) any amounts paid
                  from the Company's annual incentive plan for the fiscal year
                  in which Executive's Date of Termination occurs and (C) any
                  accrued vacation pay, to the extent not theretofore paid; plus

                           (ii) within twenty (20) days following the Date of
                  Termination, a lump-sum cash amount equal to the sum of (i)
                  three (3) times Executive's highest annual rate of base salary
                  during the 12-month period immediately prior to Executive's
                  Date of Termination, plus (ii) three (3) times Executive's
                  Bonus Amount.

                  (b) Qualifying Termination -- Continued Coverage. If during
the Termination Period the employment of Executive shall terminate pursuant to a
Qualifying Termination, the Company shall continue to provide, for a period of
three (3) years following Executive's Date of Termination, Executive (and
Executive's dependents, if applicable) with the same level of medical, dental,
accident, disability and life insurance benefits upon substantially the same
terms and conditions (including contributions required by Executive for such
benefits) as existed immediately prior to Executive's Date of Termination (or,
if more favorable to Executive, as such benefits and terms and conditions
existed immediately prior to the Change in Control); provided, however, if
Executive cannot continue to participate in the Company plans providing such
benefits, the Company shall otherwise provide such benefits on the same
after-tax basis as if continued participation had been permitted.
Notwithstanding the foregoing, in the event Executive becomes reemployed with
another employer and becomes eligible to receive welfare benefits from such
employer, the welfare benefits described herein shall be secondary to such
benefits during the period of Executive's eligibility, but only to the extent
that the Company reimburses Executive for any increased cost and provides any
additional benefits necessary to give Executive the benefits provided hereunder.
The Executive's accrued benefits as of the Date of Termination under the
Company's employee benefit plans shall be paid to Executive in accordance with
the terms of such plans.

                                       7
<PAGE>   8

                  (c) Qualifying Termination -- SERP Accrual. If during the
Termination Period the employment of Executive shall terminate pursuant to a
Qualifying Termination, the Company shall provide Executive with three (3)
additional years of service credit under all non-qualified retirement plans and
excess benefit plans in which the Executive participated as of his Date of
Termination.

                  (d) Other than Qualifying Termination. If during the
Termination Period the employment of Executive shall terminate other than by
reason of a Qualifying Termination, then the Company shall pay to Executive
within thirty (30) days following the Date of Termination, a lump-sum cash
amount equal to the sum of (1) Executive's base salary through the Date of
Termination and any bonus amounts which have become payable, to the extent not
theretofore paid or deferred, and (2) any accrued vacation pay, to the extent
not theretofore paid. The Company may make such additional payments, and provide
such additional benefits, to Executive as the Company and Executive may agree in
writing. The Executive's accrued benefits as of the Date of Termination under
the Company's employee benefit plans shall be paid to Executive in accordance
with the terms of such plans.

         5.       Certain Additional Payments by the Company.

                  (a) Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution (or any acceleration of any payment, award, benefit or
distribution) by the Company (or any of its affiliated entities) or any entity
which effectuates a Change in Control (or any of its affiliated entities) to or
for the benefit of Executive (whether pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 5) (the "Payments") would be subject to the excise tax
imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
"Code"), or any interest or penalties are incurred by Executive with respect to
such excise tax (such excise tax, together with any such interest and penalties,
are hereinafter collectively referred to as the "Excise Tax"), then the Company
shall pay to Executive an additional payment (a "Gross-Up Payment") in an amount
such that after payment by Executive of all taxes (including any Excise Tax)
imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up
Payment equal to the sum of (x) the Excise Tax imposed upon the Payments and (y)
the product of any deductions disallowed because of the inclusion of the
Gross-up Payment in Executive's adjusted gross income and the highest applicable
marginal rate of federal income taxation for the calendar year in which the
Gross-up Payment is to be made. For purposes of determining the amount of the
Gross-up Payment, the Executive shall be deemed to (i) pay federal income taxes
at the highest marginal rates of federal income taxation for the calendar year
in which the Gross-up Payment is to be made, (ii) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in
which the Gross-up Payment is to be made, net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and
local taxes and (iii) have otherwise allowable deductions for federal income tax
purposes at least equal to the Gross-up Payment.

                                       8
<PAGE>   9

Notwithstanding the foregoing provisions of this Section 5(a), if it shall be
determined that Executive is entitled to a Gross-Up Payment, but that the
Payments would not be subject to the Excise Tax if the Payments were reduced by
an amount that is less than 5% of the portion of the Payments that would be
treated as "parachute payments" under Section 280G of the Code, then the amounts
payable to Executive under this Agreement shall be reduced (but not below zero)
to the maximum amount that could be paid to Executive without giving rise to the
Excise Tax (the "Safe Harbor Cap"), and no Gross-Up Payment shall be made to
Executive. The reduction of the amounts payable hereunder, if applicable, shall
be made by reducing first the payments under Section 4(a)(ii), unless an
alternative method of reduction is elected by Executive. For purposes of
reducing the Payments to the Safe Harbor Cap, only amounts payable under this
Agreement (and no other Payments) shall be reduced. If the reduction of the
amounts payable hereunder would not result in a reduction of the Payments to the
Safe Harbor Cap, no amounts payable under this Agreement shall be reduced
pursuant to this provision.

                  (b) Subject to the provisions of Section 5(a), all
determinations required to be made under this Section 5, including whether and
when a Gross-Up Payment is required, the amount of such Gross-Up Payment, the
reduction of the Payments to the Safe Harbor Cap and the assumptions to be
utilized in arriving at such determinations, shall be made by the public
accounting firm that is retained by the Company as of the date immediately prior
to the Change in Control (the "Accounting Firm") which shall provide detailed
supporting calculations both to the Company and Executive within fifteen (15)
business days of the receipt of notice from the Company or the Executive that
there has been a Payment, or such earlier time as is requested by the Company
(collectively, the "Determination"). In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change in Control, Executive may appoint another nationally recognized
public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company
and the Company shall enter into any agreement requested by the Accounting Firm
in connection with the performance of the services hereunder. The Gross-up
Payment under this Section 5 with respect to any Payments shall be made no later
than thirty (30) days following such Payment. If the Accounting Firm determines
that no Excise Tax is payable by Executive, it shall furnish Executive with a
written opinion to such effect, and to the effect that failure to report the
Excise Tax, if any, on Executive's applicable federal income tax return will not
result in the imposition of a negligence or similar penalty. In the event the
Accounting Firm determines that the Payments shall be reduced to the Safe Harbor
Cap, it shall furnish Executive with a written opinion to such effect. The
Determination by the Accounting Firm shall be binding upon the Company and
Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the Determination, it is possible that Gross-Up Payments
which will not have been made by the Company should have been made
("Underpayment") or Gross-up Payments are made by the Company which should not
have been made ("Overpayment"), consistent with the calculations required to be
made hereunder. In the event that the Executive thereafter is required to make
payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and

                                       9
<PAGE>   10

any such Underpayment (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the
benefit of Executive. In the event the amount of the Gross-up Payment exceeds
the amount necessary to reimburse the Executive for his Excise Tax, the
Accounting Firm shall determine the amount of the Overpayment that has been made
and any such Overpayment (together with interest at the rate provided in Section
1274(b)(2) of the Code) shall be promptly paid by Executive (to the extent he
has received a refund if the applicable Excise Tax has been paid to the Internal
Revenue Service) to or for the benefit of the Company. Executive shall
cooperate, to the extent his expenses are reimbursed by the Company, with any
reasonable requests by the Company in connection with any contests or disputes
with the Internal Revenue Service in connection with the Excise Tax.

         6.       Withholding Taxes. The Company may withhold from all payments
due to Executive (or his beneficiary or estate) hereunder all taxes which, by
applicable federal, state, local or other law, the Company is required to
withhold therefrom.

         7.       Reimbursement of Expenses. If any contest or dispute shall
arise under this Agreement involving termination of Executive's employment with
the Company or involving the failure or refusal of the Company to perform fully
in accordance with the terms hereof, the Company shall reimburse Executive, on a
current basis, for all reasonable legal fees and expenses, if any, incurred by
Executive in connection with such contest or dispute (regardless of the result
thereof), together with interest in an amount equal to the prime rate of Mellon
Bank, N.A. (or, if such prime rate is not available from Mellon Bank, N.A., the
prime rate of Citibank, N.A.) from time to time in effect, but in no event
higher than the maximum legal rate permissible under applicable law, such
interest to accrue from the date the Company receives Executive's statement for
such fees and expenses through the date of payment thereof, regardless of
whether or not Executive's claim is upheld by an arbitration panel.

         8.       Scope of Agreement. Nothing in this Agreement shall be deemed
to entitle Executive to continued employment with the Company or its
Subsidiaries, and if Executive's employment with the Company shall terminate
prior to a Change in Control, Executive shall have no further rights under this
Agreement (except as otherwise provided hereunder); provided, however, that any
termination of Executive's employment during the Termination Period shall be
subject to all of the provisions of this Agreement.

         9.       Successors; Binding Agreement.

                  (a) This Agreement shall not be terminated by any Business
Combination. In the event of any Business Combination, the provisions of this
Agreement shall be binding upon the Surviving Corporation, and such Surviving
Corporation shall be treated as the Company hereunder.

                  (b) The Company agrees that in connection with any Business
Combination, it will cause any successor entity to the Company unconditionally
to assume (and for any Parent

                                       10
<PAGE>   11

Corporation in such Business Combination to guarantee), by written instrument
delivered to Executive (or his beneficiary or estate), all of the obligations of
the Company hereunder. Failure of the Company to obtain such assumption and
guarantee prior to the effectiveness of any such Business Combination that
constitutes a Change in Control shall be a breach of this Agreement and shall
constitute Good Reason hereunder and shall entitle Executive to compensation and
other benefits from the Company in the same amount and on the same terms as
Executive would be entitled hereunder if Executive's employment were terminated
following a Change in Control by reason of a Qualifying Termination. For
purposes of implementing the foregoing, the date on which any such Business
Combination becomes effective shall be deemed the date Good Reason occurs, and
shall be the Date of Termination if requested by Executive.

                  (c) This Agreement shall inure to the benefit of and be
enforceable by Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If
Executive shall die while any amounts would be payable to Executive hereunder
had Executive continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to such
person or persons appointed in writing by Executive to receive such amounts or,
if no person is so appointed, to Executive's estate.

         10.      Notice.

                  (a) For purposes of this Agreement, all notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered or five (5) days after deposit in
the United States mail, certified and return receipt requested, postage prepaid,
addressed as follows:

                  If to the Executive:

                           At the address set forth below the signatory.

                                       11
<PAGE>   12

                  If to the Company:

                           Mellon Financial Corporation
                           One Mellon Center
                           Pittsburgh, PA  15258
                           Attn:  Corporate Secretary

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

                  (b) A written notice of Executive's Date of Termination by the
Company or Executive, as the case may be, to the other, shall (i) indicate the
specific termination provision in this Agreement relied upon, (ii) to the extent
applicable, set forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of Executive's employment under the provision
so indicated and (iii) specify the Date of Termination (which date shall be not
less than fifteen (15) (thirty (30), if termination is by the Company for
Disability) nor more than sixty (60) days after the giving of such notice). The
failure by Executive or the Company to set forth in such notice any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of Executive or the Company hereunder or preclude Executive or
the Company from asserting such fact or circumstance in enforcing Executive's or
the Company's rights hereunder.

         11.      Full Settlement; Resolution of Disputes. The Company's
obligation to make any payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall be in lieu and in full settlement of all
other severance payments to Executive under any other severance or employment
agreement between Executive and the Company, and any severance plan of the
Company. The Company's obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which
the Company may have against Executive or others. In no event shall Executive be
obligated to seek other employment or take other action by way of mitigation of
the amounts payable to Executive under any of the provisions of this Agreement
and, except as provided in Section 4(b), such amounts shall not be reduced
whether or not Executive obtains other employment. Any dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively
by arbitration in Pittsburgh, Pennsylvania, by three arbitrators in accordance
with the rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitrators' award in any court having jurisdiction. The
Company shall bear all costs and expenses arising in connection with any
arbitration proceeding pursuant to this Section.

         12.      Employment with Subsidiaries. Employment with the Company for
purposes of this Agreement shall include employment with any Subsidiary.

         13.      Survival. The respective obligations and benefits afforded to
the Company and Executive as provided in Sections 4 (to the extent that payments
or benefits are owed as a result

                                       12
<PAGE>   13

of a termination of employment that occurs during the term of this Agreement), 5
(to the extent that Payments are made to Executive as a result of a Change in
Control that occurs during the term of this Agreement), 6, 7, 9(c) and 11 shall
survive the termination of this Agreement.

         14.      GOVERNING LAW; VALIDITY. THE INTERPRETATION, CONSTRUCTION AND
PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE COMMONWEALTH OF PENNSYLVANIA WITHOUT
REGARD TO THE PRINCIPLE OF CONFLICTS OF LAWS. THE INVALIDITY OR UNENFORCEABILITY
OF ANY PROVISION OF THIS AGREEMENT SHALL NOT AFFECT THE VALIDITY OR
ENFORCEABILITY OF ANY OTHER PROVISION OF THIS AGREEMENT, WHICH OTHER PROVISIONS
SHALL REMAIN IN FULL FORCE AND EFFECT.

         15.      Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed to be an original and all of which together shall
constitute one and the same instrument.

         16.      Miscellaneous. No provision of this Agreement may be modified
or waived unless such modification or waiver is agreed to in writing and signed
by Executive and by a duly authorized officer of the Company. No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. Except as set forth
in Sections 1(b) and 1(f), the failure by Executive or the Company to insist
upon strict compliance with any provision of this Agreement or to assert any
right Executive or the Company may have hereunder shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement. Except as otherwise specifically provided herein, the rights of, and
benefits payable to, Executive, his estate or his beneficiaries pursuant to this
Agreement are in addition to any rights of, or benefits payable to, Executive,
his estate or his beneficiaries under any other employee benefit plan or
compensation program of the Company.

                                       13
<PAGE>   14

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by a duly authorized officer of the Company and Executive has executed
this Agreement as of the day and year first above written.

                                     MELLON FINANCIAL CORPORATION

                                     ------------------------------------
                                     By:
                                     Title:

                                     EXECUTIVE

                                     ------------------------------------

                                       14

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