Document:

EXHIBIT 10.3b
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                   FINANCIAL INSTITUTION EXECUTIVE'S AGREEMENT

                                    Agreement

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

                                   Witnesseth:

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

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

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

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

      Section 2. Duties.  The Employee shall perform executive  services for the
Bank as may be  consistent  with the  Employee's  title,  along with those other
duties that may be assigned  from time to time by the Bank's Board of Directors.
During this Agreement's term, the Employee's full business time and best efforts
shall be devoted to the affairs  and  business  of the Bank,  as is  customarily
required  for the  position  of Chief  Financial  Officer.  The  services of the
Employee shall be rendered principally in Mamaroneck,  New York but the Employee
shall do any  traveling  and render  services  at such  other  present or future
offices on behalf of the Bank as may be reasonably required.

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

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

      Section 5. Compensation. The Bank will compensate and pay the Employee for
the Employee's  services during this  Agreement's  term a minimum base salary of
Ninety-Five  Thousand  ($95,000)  Dollars for the year ending December 31, 1999.
Subsequent annual salary in amounts  determined by the Bank's Board of Directors
from  year to year  shall be  memorialized  by a duly  executed  Addendum  to be
appended hereto.

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

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

      Section 8.  Disability.  (a) If the  Employee  shall  become  disabled  or
incapacitated to the extent that the Employee is unable to perform the duties of
Chief  Financial  Officer,  the Employee shall continue to receive the following
percentages  of  compensation,  exclusive of any benefits which may be in effect
for Bank employees under this Agreement's Section 7 for the following periods of
the Employee's disability: 100% for the first six (6) months, and 60% thereafter
for this  Agreement's  remaining  term.  Upon  returning to active  duties,  the
Employee's full compensation shall be reinstated on a "go forward" basis. Should
the Employee return to active  employment on other than a full-time basis,  then
the Employee's compensation for the

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remainder of the then  existing term of  employment,  as set forth in Section 5,
shall be reduced on such terms as the Bank's Board of Directors shall determine.

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

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

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

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

      Section  11.  Termination.  (a) (1) The  Bank's  Board  of  Directors  may
terminate the  Employee's  employment at any time,  but any  termination  by the
Bank's  Board of  Directors  other than  termination  for just cause,  shall not
prejudice the  Employee's  right to  compensation  or other  benefits  under the
Agreement.  The Employee  shall have no right to receive  compensation  or other
benefits for any period after  termination for just cause.  Termination for just
cause shall include termination  because of the Employee's personal  dishonesty,
incompetence,  willful

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misconduct,  breach of fiduciary duty  involving  personal  profit,  intentional
failure  to  perform  stated  duties,  willful  violation  of any law  rule,  or
regulation  (other  than  traffic  violations  or  similar  offenses)  or  final
cease-and-desist order, or material breach of any provision of this Agreement.

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

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

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

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

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

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

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

      (b) In the event  employment  is  terminated  for just cause  pursuant  to
Section  11(a),  the  Employee  shall  have no  right to  compensation  or other
benefits  for  any  period  after  the  termination  date.  If the  Employee  is
terminated  by the Bank other than for just cause  pursuant to Section 11(a) the
Employee's  right to  compensation  and other  benefits shall be as set forth in
Section 11(j).  If employment is terminated  for just cause,  the Employee shall
have the right, at the Employee's  sole option,  to appear at the next scheduled
regular or special meeting of the Bank's Board of Directors at which a quorum of
the Board is present so that the Board may hear  argument  from the  Employee or
counsel or both and reconsider  the  termination.  The Board of Directors  shall
deliver to the Employee its reconsidered  determination in writing within twenty
(20) days after the meeting.  This  procedure  shall not prejudice the rights of
either party under Section 20.

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

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

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

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

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

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

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purported  termination  of the  Employee's  employment  which  is  not  effected
pursuant  to a Notice of  Termination  satisfying  the  requirements  of Section
11(i).

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

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

      (k) For purposes of this Agreement, a Change in Control of the Bank or the
Company  shall mean a change in control of a nature that:  (i) would be required
to be reported in response to Item 1(a) of the current report on Form 8-K, as in
effect on the date  hereof,  pursuant  to Section 13 or 15(d) of the  Securities
Exchange  Act of 1934  (the  "Exchange  Act");  or (ii)  results  in a Change in
Control of the Bank or the Company  within the meaning of the Home  Owners' Loan
Act  and  the  Rules  and  Regulations  promulgated  by  the  Office  of  Thrift
Supervision (or its  predecessor  agency),  as in effect on the date hereof;  or
(iii)  without  limitation  such a Change  in  Control  shall be  deemed to have
occurred at such time as (a) any "Person" (as the term is used in Sections 13(d)
and 14(d) of the Exchange Act) is or becomes the

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"beneficial  owner" (as defined in Rule 13d-3 under the Exchange Act),  directly
or indirectly, of securities of the Bank or the Company representing 25% or more
of the Bank's or the Company's outstanding  securities except for any securities
of the Bank  purchased by the Company in connection  with the  conversion of the
Bank to the stock form and any securities purchased by the Bank's employee stock
ownership  plan and trust;  or (b)  individuals  who constitute the Board on the
date hereof (the "Incumbent  Board") cease for any reason to constitute at least
a majority thereof, provided, however, that this sub-section (b) shall not apply
if the  Incumbent  Board is replaced  by the  appointment  by a Federal  banking
agency of a conservator or receiver for the Bank and,  provided further that any
person  becoming a director  subsequent  to the date hereof  whose  election was
approved  by a vote of at  least  two-thirds  of the  directors  comprising  the
Incumbent Board or whose  nomination for election by the Company's  stockholders
was approved by the same Nominating  Committee serving under an Incumbent Board,
shall be, for purposes of this clause (b), considered as though he were a member
of the Incumbent Board; or (c) a plan of reorganization,  merger, consolidation,
sale of all or substantially all the assets of the Bank or the Company; or (d) a
proxy statement  soliciting proxies from stockholders of the Company, by someone
other than the current management of the Company,  seeking stockholder  approval
of a plan of  reorganization,  merger or consolidation of the Company or Bank or
similar  transaction  with one or more  corporations  as a result  of which  the
outstanding  shares  of the class of  securities  then  subject  to such plan or
transaction  are exchanged for or converted  into cash or property or securities
not issued by the Bank or the Company  shall be  distributed  and the  requisite
number of proxies approving such plan of reorganization, merger or consolidation
of the Company or Bank are received and voted in favor of such transactions;  or
(e) a tender offer is made for 25% or more of the outstanding  securities of the
Bank or Company and shareholders owning beneficially or of record 25% or more of
the  outstanding  securities  of the Bank or Company have tendered or offered to
sell their shares  pursuant to such tender offer and such  tendered  shares have
been accepted by the tender  offeror.  Notwithstanding  anything to the contrary
herein, in the event that the Bank and the Company  reorganize from the two-tier
mutual  holding  company  structure  to the single  tier stock  holding  company
structure,  such reorganization  shall not be deemed a Change in Control for any
purpose under this Agreement.

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

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

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

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

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

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

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

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

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

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

      Section 20. Arbitration.  Except as otherwise expressly provided elsewhere
in this  Agreement,  in the event that any  dispute  should  arise  between  the
parties as to the meaning, effect,  performance,  enforcement, or other issue in
connection with this Agreement, which dispute cannot be resolved by the parties,
except the question of Employee's  disability  under  Section 9(c),  the dispute
shall  be  decided  by  final  and  binding  arbitration  of a  panel  of  three
arbitrators  who  shall be  present  or former  executives  of  Federal  savings
institutions  located in

                                       8
<PAGE>

the United States.  Proceedings in arbitration and its conduct shall be governed
by the rules of the  American  Arbitration  Association  ("AAA")  applicable  to
commercial  arbitrations  (the "Rules") except as modified by this Section.  The
Employee shall appoint one  arbitrator,  the Bank shall appoint one  arbitrator,
and the  third  shall  be  appointed  by the two  arbitrators  appointed  by the
parties.  The third arbitrator shall be impartial and shall serve as chairman of
the panel. The parties shall appoint their  arbitrators  within thirty (30) days
after the demand for arbitration is served, failing which the AAA promptly shall
appoint a defaulting  party's  arbitrator,  and the two arbitrators shall select
the third  arbitrator  within fifteen (15) days after their  appointment,  or if
they cannot agree or fail to so appoint, then the AAA promptly shall appoint the
third arbitrator.  The arbitrators shall render their decision in writing within
thirty  (30) days  after  the  close of  evidence  or other  termination  of the
proceedings  by the panel,  and the  decision of a majority  of the  arbitrators
shall be final and binding upon the parties, nonappealable, except in accordance
with the Rules and enforceable in accordance with the Uniform Arbitration Act in
force in the  State of New York or any  applicable  successor  legislation.  Any
hearings in the arbitration shall be held in the Village of Mamaroneck, New York
unless the parties shall agree upon a different  venue, and shall be private and
not open to the  public.  Each  party  shall bear the fees and  expenses  of its
arbitrator,  counsel,  and  witnesses,  and the fees and  expenses  of the third
arbitrator shall be shared equally by the parties. The costs of the arbitration,
including  the fees of AAA,  shall be borne as directed  in the  decision of the
panel.

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

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

                   [Remainder of Page Intentionally Left Blank

                                       9
<PAGE>

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

ATTEST:                                     SOUND FEDERAL SAVINGS AND
                                            LOAN ASSOCIATION

/s/ William H. Morel                        /s/ Richard P. McStravick
--------------------                        -------------------------
Secretary

WITNESS:                                    EMPLOYEE:

/s/ James Staudt                            /s/ Anthony J. Fabiano
--------------------                        -------------------------

                                       10EXHIBIT 10.7

            NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT
                            FOR RICHARD P. MCSTRAVICK
<PAGE>

                      NON-QUALIFIED SUPPLEMENTAL EXECUTIVE
                              RETIREMENT AGREEMENT

                              SOUND FEDERAL SAVINGS
                             WHITE PLAINS, NEW YORK
<PAGE>

            NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

      This  Non-qualified   Supplemental  Executive  Retirement  Agreement  (the
"Agreement"),  effective  as of the 1st day of  January,  2004,  formalizes  the
agreements  by and between  SOUND  FEDERAL  SAVINGS  (the  "Bank"),  a federally
chartered  stock bank,  and certain key  employees,  hereinafter  referred to as
"Executive(s)", who shall be selected and approved by the Bank to participate in
this Agreement by execution of a Non-qualified Supplemental Executive Retirement
Joinder  Agreement  ("Joinder  Agreement") in a form provided by the Bank. SOUND
FEDERAL BANCORP,  INC. (the "Holding  Company") is a party to this Agreement for
the sole purpose of guaranteeing the Bank's performance hereunder.

                              W I T N E S S E T H:

      WHEREAS, the Executives are employed by the Bank; and

      WHEREAS,  the Bank recognizes the valuable services  heretofore  performed
for it by such Executives and wishes to encourage their continued employment and
to provide them with additional incentive to achieve corporate objectives; and

      WHEREAS,  the Bank wishes to provide the terms and  conditions  upon which
the Bank shall pay additional retirement benefits to the Executives; and

      WHEREAS,  the Bank intends this  Agreement  to be  considered  an unfunded
arrangement,  maintained primarily to provide supplemental retirement income for
its  Executives,  members of a select group of management or highly  compensated
employees  of the  Bank,  for tax  purposes  and for  purposes  of the  Employee
Retirement Income Security Act of 1974, as amended; and

      WHEREAS,  the Bank has adopted this Non-qualified  Supplemental  Executive
Retirement   Agreement  which  controls  all  issues  relating  to  Supplemental
Retirement Benefits as described herein.

      NOW,  THEREFORE,  in  consideration  of the  premises  and  of the  mutual
promises herein contained, the Bank and the Executive agree as follows:

                                    SECTION I
                                   DEFINITIONS

      When used herein,  the following words and phrases shall have the meanings
below unless the context clearly indicates otherwise:

1.1   "Accrued  Benefit"  means  that  portion  of the  Supplemental  Retirement
      Benefit  which is  required to be expensed  and  accrued  under  generally
      accepted accounting principles (GAAP).

1.2   "Act"  means the  Employee  Retirement  Income  Security  Act of 1974,  as
      amended from time to time.

1.3   "Administrator" means the Bank and/or its Board.

1.4   "Bank" means Sound Federal Savings and any successor thereto or the Board.

                                       1
<PAGE>

1.5   "Beneficiary"  means the person or persons (and their heirs) designated as
      Beneficiary by the Executive to whom the deceased Executive's benefits are
      payable. If no Beneficiary is so designated,  then the Executive's Spouse,
      if living,  will be deemed the Beneficiary.  If the Executive's  Spouse is
      not  living,  then  the  Children  of the  Executive  will be  deemed  the
      Beneficiaries and will take on a per stirpes basis. If there are no living
      Children, then the Estate of the Executive will be deemed the Beneficiary.

1.7   "Benefit  Eligibility  Date"  shall be the later of (1) the 1st day of the
      month  following  the  month in which the  Executive  attains  the  Normal
      Retirement  Age, or (ii) the 1st day of the month  following  the month in
      which the Executive actually retires.

1.8   "Board" shall mean the Board of Directors of the Bank, unless specifically
      noted otherwise.

1.9   "Cause"  shall include  termination  because of the  Executive's  personal
      dishonesty,  incompetence,  willful  misconduct,  breach of fiduciary duty
      involving personal profit,  intentional  failure to perform stated duties,
      willful  violation  of any law rule,  or  regulation  (other than  traffic
      violations  or  similar  offenses)  or final  cease-and-desist  order,  or
      material breach of any provision of this Agreement.

1.10  "Change in Control"  shall mean a change in control of a nature that:  (i)
      would be  required  to be reported in response to Item 1(a) of the current
      report on Form 8-K, as in effect on the date  hereof,  pursuant to Section
      13 or 15(d) of the Securities  Exchange Act of 1934 (the "Exchange  Act");
      or (ii) results in a Change in Control of the  Association  or the Company
      within the meaning of the Home Owners' Loan Act, as amended ("HOLA"),  and
      applicable rules and regulations promulgated  thereunder,  as in effect at
      the time of the Change in  Control;  or (iii)  without  limitation  such a
      Change in Control shall be deemed to have occurred at such time as (a) any
      "person" (as the term is used in Sections  13(d) and 14(d) of the Exchange
      Act) is or becomes the "beneficial  owner" (as defined in Rule 13d-3 under
      the Exchange Act),  directly or  indirectly,  of securities of the Company
      representing  25% or  more  of the  combined  voting  power  of  Company's
      outstanding   securities  except  for  any  securities  purchased  by  the
      Association's  employee stock  ownership plan or trust; or (b) individuals
      who constitute the Board on the date hereof (the "Incumbent  Board") cease
      for any reason to  constitute at least a majority  thereof,  provided that
      any  person  becoming  a  director  subsequent  to the date  hereof  whose
      election  was  approved  by a  vote  of at  least  three-quarters  of  the
      directors comprising the Incumbent Board, or whose nomination for election
      by  the  Company's  stockholders  was  approved  by  the  same  Nominating
      Committee serving under an Incumbent Board, shall be, for purposes of this
      clause (b),  considered as though he were a member of the Incumbent Board;
      or (c) a plan of  reorganization,  merger,  consolidation,  sale of all or
      substantially  all the assets of the Association or the Company or similar
      transaction  in which the  Association  or  Company  is not the  surviving
      corporation  occurs;  or (d) a proxy  statement  soliciting  proxies  from
      stockholders  of the Company,  by someone  other than the current Board of
      Directors  of the  Company,  seeking  stockholder  approval  of a plan  of
      reorganization,   merger  or  consolidation  of  the  Company  or  similar
      transaction  with  one or more  corporations  as a  result  of  which  the
      outstanding shares of the common stock of the Company are exchanged for or
      converted  into cash or property or securities  not issued by the Company;
      or (e) a tender offer is made for 25% or more of the voting  securities of
      the Company and the shareholders  owning  beneficially or of record 25% or
      more of the outstanding securities of the Company have tendered or offered
      to sell their  shares  pursuant  to such  tender  offer and such  tendered
      shares have been accepted by the tender offeror.

                                       2
<PAGE>

1.11  "Children"  means the Executive's  children,  or the issue of any deceased
      Children, then living at the time payments are due the Children under this
      Agreement.  The term  "Children"  shall  include  both natural and adopted
      Children.

1.12  "Code" means the Internal Revenue Code of 1986, as amended.

1.13  "Disability  Benefit" means the monthly  benefit  payable to the Executive
      following a  determination,  in accordance with Subsection 3.6, that he is
      no longer able, properly and satisfactorily,  to perform his duties at the
      Bank.  The  Disability  Benefit  shall be equal  to the  Accrued  Benefit,
      annuitized using the Interest Factor and paid over the Payout Period.

1.14  "Effective Date" of this Agreement shall be January 1, 2004.

1.15  "Estate" means the estate of the Executive.

1.16  "Executive"  means the executive officer who is designated by the Board to
      participate in the Plan.

1.17  "Holding Company" means Sound Federal Bancorp, Inc.

1.18  "Interest  Factor"  unless  specifically   designated  otherwise  in  this
      Subsection or in another place in this Agreement, means annual compounding
      or  discounting,  as  applicable,  at six percent  (6%).  For  purposes of
      determining  the present value of the amount  necessary to contribute to a
      rabbi  trust to fund the  Executive's  benefit in the event of a Change in
      Control, the Interest Factor shall mean 120% of the semiannual  applicable
      federal rate (AFR) as determined under Code section 1274(d).

1.19  "Normal  Retirement  Age"  shall be the  birthday  on which the  Executive
      attains the age set forth in such Executive's  NON-QUALIFIED  SUPPLEMENTAL
      EXECUTIVE RETIREMENT JOINDER AGREEMENT.

1.20  "Payout  Period"  means  the time  frame  during  which  benefits  payable
      hereunder  shall  be  distributed.  Payments  generally  shall  be made in
      monthly  installments  commencing  within  thirty (30) days  following the
      occurrence of the event which triggers distribution and shall continue for
      the longer of One Hundred Eighty (180) months or the Executive's lifetime.
      In certain  cases set forth  herein,  an  Executive's  (or  Beneficiary's)
      benefit shall be paid in a single lump payment.

1.20  "Plan Year" shall mean the calendar year.

1.21  "Spouse" means the individual to whom the Executive is legally  married at
      the  time of the  Executive's  death,  provided,  however,  that  the term
      "Spouse" shall not refer to an individual to whom the Executive is legally
      married at the time of death if the  Executive  and such  individual  have
      entered into a formal separation  agreement (provided that such separation
      agreement  does not provide  otherwise  or state that such  individual  is
      entitled  to a portion of the  benefit  hereunder)  or  initiated  divorce
      proceedings.

1.22  "Supplemental  Retirement  Benefit"  means an annual amount (before taking
      into account federal and state income taxes),  payable to the Executive in
      monthly  installments  throughout the Payout  Period,  equal to the amount
      designated in the Joinder Agreement.  The Supplemental  Retirement Benefit
      shall be calculated annually,  based on certain actuarial assumptions,  as
      the difference  between (i) the benefit the Executive would be entitled to
      receive  upon  retirement  at his Normal  Retirement  Age under the Bank's
      tax-qualified  defined  benefit  pension plan and employee stock

                                       3
<PAGE>

      ownership plan without giving  consideration  to the  limitations  imposed
      under Code Sections  401(a)(17) and 415 (the "Applicable  Limitations") on
      such benefits and  contributions and (ii) the amount that the Executive is
      actually  entitled to receive at such time as the result of the Applicable
      Limitations.

1.23  "Survivor's  Benefit" means an annual amount payable to the Beneficiary in
      monthly  installments  throughout the Payout  Period,  equal to the amount
      designated in the Executive's Joinder Agreement.

                                   SECTION II
                          ESTABLISHMENT OF RABBI TRUST

      The Bank may  establish a rabbi  trust into which the Bank may  contribute
assets which shall be held, subject to the claims of the Bank's creditors in the
event of the Bank's  "Insolvency" as defined in the agreement which  establishes
such rabbi trust,  until the  contributed  assets are paid to the Executives and
their  Beneficiaries  in such  manner  and at such  times as  specified  in this
Agreement.  The Bank may make  contributions  to the rabbi  trust to provide the
Bank  with a source of funds to assist it in  meeting  the  liabilities  of this
Agreement.  The rabbi trust and any assets  held  therein  shall  conform to the
terms of the rabbi trust agreement which may be established in conjunction  with
this Agreement.  To the extent the language in this Agreement is modified by the
language in the rabbi trust agreement, the rabbi trust agreement shall supersede
this  Agreement.  In the  event of a Change in  Control  or  imminent  Change in
Control,  the Bank shall  establish a rabbi  trust (if none has been  previously
established  hereunder)  and shall  transfer  to the rabbi  trust  prior to such
Change in Control,  the present value of an amount  sufficient to fully fund the
Supplemental Retirement Benefit for each Executive covered by this Agreement.

                                   SECTION III
                                    BENEFITS

3.1   Retirement  Benefit.  If the  Executive  is in service with the Bank until
      reaching his Normal Retirement Age, the Executive shall be entitled to the
      Supplemental  Retirement  Benefit.  Such  benefit  shall  commence  on the
      Executive's  Benefit  Eligibility  Date and shall be  payable  in  monthly
      installments throughout the Payout Period. In the event the Executive dies
      at any time  after  attaining  his  Normal  Retirement  Age,  but prior to
      completion  of all such payments due and owing  hereunder,  the Bank shall
      pay  to  the  Executive's   Beneficiary  a  continuation  of  the  monthly
      installments for the remainder of the Payout Period.

3.2   Death  Prior to Normal  Retirement  Age.  If the  Executive  dies prior to
      attaining his Normal  Retirement  Age but while  employed at the Bank, the
      Executive's  Beneficiary shall be entitled to the Survivor's Benefit.  The
      Survivor's   Benefit  shall  commence  within  thirty  (30)  days  of  the
      Executive's death and shall be payable in monthly installments  throughout
      the Payout Period.

3.3   Involuntary Termination (Other Than for Cause) or Voluntary Termination of
      Employment.  If the Executive's  employment with the Bank is involuntarily
      terminated  prior to the attainment of his Normal  Retirement Age, for any
      reason  other  than for  Cause,  the  Executive's  death,  disability,  or
      following a Change in Control (as defined),  or the Executive  voluntarily
      terminates his  employment,  the Executive (or his  Beneficiary)  shall be
      entitled to the Accrued  Benefit  relating to Executive at the time of the
      Executive's termination of employment.  Such benefit shall commence at the
      Executive's Normal Retirement Age, shall be annuitized (using the Interest
      Factor)  and be  payable  in monthly  installments  throughout  the Payout
      Period.  In  the  event  the  Executive  dies  prior  to  commencement  or
      completion  of all such payments due and owing  hereunder,  the Bank shall
      pay  to  the  Executive's   Beneficiary  a  continuation  of  the  monthly

                                       4
<PAGE>

      installments  for the  remainder  of the  Payout  Period.  Notwithstanding
      anything to the contrary herein,  the  Administrator  may determine to pay
      the  Executive's  Accrued  Benefit to the  Executive  in a lump sum within
      sixty (60) days of his termination.

3.4   Termination  of  Service  Related to a Change in  Control.  If a Change in
      Control occurs,  and thereafter the  Executive's  employment is terminated
      (either voluntarily or involuntarily),  the Executive shall be entitled to
      the  Supplemental  Retirement  Benefit as if the  Executive  had  remained
      employed by the Bank (or its  successor)  until  attainment  of his Normal
      Retirement  Age.  Such benefit shall  commence  within thirty (30) days of
      such termination and shall be payable in monthly  installments  throughout
      the Payout Period.  In the event that the Executive dies at any time after
      termination of employment,  but prior to commencement or completion of all
      such payments due and owing hereunder,  the Bank, or its successor,  shall
      pay  to  the  Executive's   Beneficiary  a  continuation  of  the  monthly
      installments for the remainder of the Payout Period.

3.5   Termination  for Cause.  If the  Executive is  terminated  for Cause,  all
      benefits under this Agreement  shall be forfeited and this Agreement shall
      become null and void as to such Executive.

3.6   Disability  Benefit.   Notwithstanding  any  other  provision  hereof,  if
      requested by the Executive and approved by the Board (which approval shall
      not be unreasonably withheld),  the Executive shall be entitled to receive
      the Disability Benefit hereunder, in any case in which it is determined by
      a duly licensed  physician  selected by the Bank, that the Executive is no
      longer able, properly and satisfactorily, to perform his regular duties as
      an  Executive,  because of ill  health,  accident,  disability  or general
      inability due to age. If the Executive's service is terminated pursuant to
      this paragraph and Board approval is obtained,  the Executive may elect to
      receive  the  Disability  Benefit in lieu of any other  benefit  available
      under Section III, which is not available prior to the Executive's Benefit
      Eligibility Date. The Disability  Benefit shall be paid within thirty (30)
      days  following  the  above-mentioned  disability  determination.  At  the
      Executive's request,  and upon Board approval,  the Disability Benefit may
      be paid in a lump sum. In the event the  Executive  dies at any time after
      termination  of employment  due to disability  but prior to payment of the
      Disability  Benefits,  the Bank  shall pay the  Survivor's  Benefit to the
      Executive's   Beneficiary.   The  determination  regarding  payment  of  a
      Disability  Benefit or payment of the Disability  Benefit in a lump sum is
      within the sole discretion of the Board.

                                   SECTION IV
                             BENEFICIARY DESIGNATION

      The Executive  shall make an initial  designation of primary and secondary
Beneficiaries  upon execution of his Joinder  Agreement and shall have the right
to change  such  designation,  at any  subsequent  time,  by  submitting  to the
Administrator  in  substantially  the form  attached as Exhibit A to the Joinder
Agreement,  a written  designation of primary and secondary  Beneficiaries.  Any
Beneficiary  designation  made subsequent to execution of the Joinder  Agreement
shall become  effective only when receipt  thereof is acknowledged in writing by
the Administrator.

                                    SECTION V
                          EXECUTIVE'S RIGHT TO ASSETS:
                     ALIENABILITY AND ASSIGNMENT PROHIBITION

      At no time shall the Executive be deemed to have any lien, right, title or
interest in or to any specific  investment  or asset of the Bank.  The rights of
the  Executive,  any  Beneficiary,  or any other  person  claiming  through  the
Executive  under this Agreement,  shall be solely those of an unsecured  general
creditor  of the Bank.  The  Executive,  the  Beneficiary,  or any other  person
claiming  through the  Executive,

                                       5
<PAGE>

shall only have the right to receive  from the Bank those  payments so specified
under this  Agreement.  Neither the  Executive  nor any  Beneficiary  under this
Agreement  shall  have  any  power or right  to  transfer,  assign,  anticipate,
hypothecate,  mortgage,  commute, modify or otherwise encumber in advance any of
the benefits  payable  hereunder,  nor shall any of said  benefits be subject to
seizure for the payment of any debts, judgments, alimony or separate maintenance
owed by the Executive or his  Beneficiary,  nor be  transferable by operation of
law in the event of bankruptcy, insolvency or otherwise.

                                   SECTION VI
                                 ACT PROVISIONS

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

6.2   Claims  Procedure and  Arbitration.  In the event that benefits under this
      Agreement are not paid to the Executive (or to his Beneficiary in the case
      of the  Executive's  death) and such  claimants  feel they are entitled to
      receive  such  benefits,  then  a  written  claim  must  be  made  to  the
      Administrator  within sixty (60) days from the date  payments are refused.
      The  Administrator  shall  review the  written  claim and, if the claim is
      denied, in whole or in part, they shall provide in writing,  within thirty
      (30) days of  receipt  of such  claim,  their  specific  reasons  for such
      denial,  reference  to the  provisions  of this  Agreement  or the Joinder
      Agreement upon which the denial is based,  and any additional  material or
      information  necessary to perfect the claim.  Such writing by the Bank and
      its Board of Directors shall further  indicate the additional  steps which
      must be  undertaken  by  claimants  if an  additional  review of the claim
      denial is desired.

      If claimants desire a second review,  they shall notify the  Administrator
      in writing  within thirty (30) days of the first claim  denial.  Claimants
      may review this Agreement, the Joinder Agreement or any documents relating
      thereto  and submit any issues and  comments,  in  writing,  they may feel
      appropriate.  In its sole discretion,  the Administrator shall then review
      the second claim and provide a written decision within thirty (30) days of
      receipt of such claim.  This decision shall state the specific reasons for
      the decision and shall  include  reference to specific  provisions of this
      Agreement or the Joinder Agreement upon which the decision is based.

      If claimants  continue to dispute the benefit  denial based upon completed
      performance of this Agreement and the Joinder Agreement or the meaning and
      effect  of the  terms  and  conditions  thereof,  it shall be  settled  by
      arbitration  administered  by the AAA  under  its  Commercial  Arbitration
      Rules,  and  judgment on the award  rendered by the  arbitrator(s)  may be
      entered in any court having jurisdiction thereof.

                                   SECTION VII
                                  MISCELLANEOUS

7.1   No Effect on Employment Rights.  Nothing contained herein will confer upon
      the  Executive  the right to be  retained  in the  service of the Bank nor
      limit  the  right of the Bank to  discharge  or  otherwise  deal  with the
      Executive without regard to the existence of the Agreement.

                                       6
<PAGE>

7.2   State Law.  The  Agreement  is  established  under,  and will be construed
      according  to, the laws of the State of New York,  to the extent such laws
      are not preempted by the Act and valid regulations published thereunder.

7.3   Severability and  Interpretation  of Provisions.  In the event that any of
      the provisions of this Plan or portion hereof,  are held to be inoperative
      or invalid by any court of  competent  jurisdiction,  or in the event that
      any legislation  adopted by any governmental body having jurisdiction over
      the Bank would be  retroactively  applied to  invalidate  this plan or any
      provision hereof or cause the benefits hereunder to be taxable,  then: (1)
      insofar as is reasonable, effect will be given to the intent manifested in
      the  provisions  held  invalid or  inoperative,  and (2) the  validity and
      enforceability  of the remaining  provisions will not be affected thereby.
      In the event that the intent of any  provision  shall need to be construed
      in a manner to avoid taxability,  such  construction  shall be made by the
      plan  administrator  in a manner that would manifest to the maximum extent
      possible the original meaning of such provisions.

7.4   Incapacity  of   Recipient.   In  the  event  the  Executive  is  declared
      incompetent  and a conservator  or other person  legally  charged with the
      care of his  person  or  Estate  is  appointed,  any  benefits  under  the
      Agreement  to  which  such  Executive  is  entitled  shall be paid to such
      conservator or other person legally charged with the care of his person or
      Estate.

7.5   Unclaimed  Benefit.  The  Executive  shall keep the Bank  informed  of his
      current  address  and the  current  address of his  Beneficiaries.  If the
      location of the Executive is not made known to the Bank within three years
      after the date upon which any payment of any  benefits  may first be made,
      the Bank shall delay payment of the Executive's  benefit  payment(s) until
      the location of the Executive is made known to the Bank; however, the Bank
      shall only be obligated to hold such benefit  payment(s) for the Executive
      until the expiration of three (3) years.  Upon expiration of the three (3)
      year  period,  the Bank may  discharge  its  obligation  by payment to the
      Executive's Beneficiary. If the location of the Executive's Beneficiary is
      not  made  known  to the Bank by the end of an  additional  two (2)  month
      period  following  expiration  of the three (3) year period,  the Bank may
      discharge its obligation by payment to the Executive's Estate. If there is
      no Estate in existence  at such time or if such fact cannot be  determined
      by the  Bank,  the  Executive  and his  Beneficiary(ies)  shall  thereupon
      forfeit any rights to the balance,  if any, of any  benefits  provided for
      such Executive and/or Beneficiary under this Agreement.

7.6   Limitations on Liability.  Notwithstanding any of the preceding provisions
      of the Agreement, no individual acting as an employee or agent of the Bank
      or the Holding Company, or as a member of the Board of the Bank or Holding
      Company  shall be  personally  liable to the Executive or any other person
      for any claim, loss,  liability or expense incurred in connection with the
      Agreement.

7.7   Gender.  Whenever in this  Agreement  words are used in the  masculine  or
      neuter  gender,  they  shall be read and  construed  as in the  masculine,
      feminine or neuter gender, whenever they should so apply.

7.8   Effect on Other Corporate  Benefit  Agreements.  Nothing contained in this
      Agreement  shall affect the right of the Executive to participate in or be
      covered by any qualified or non-qualified pension,  profit sharing, group,
      bonus or other  supplemental  compensation  or  fringe  benefit  agreement
      constituting  a  part  of  the  Bank's  existing  or  future  compensation
      structure.

7.9   Suicide.  Notwithstanding  anything to the contrary in this Agreement, the
      benefits otherwise provided herein shall not be payable and this Agreement
      shall become null and void if the

                                       7
<PAGE>

      Executive's  death  results from suicide,  whether sane or insane,  within
      twenty-six (26) months after the execution of his Joinder Agreement.

7.10  Inurement.  This  Agreement  shall be binding  upon and shall inure to the
      benefit of the Bank, its successors  and assigns,  and the Executive,  his
      successors, heirs, executors, administrators, and Beneficiaries.

7.11  Tax  Withholding.  The Bank may withhold  from any benefits  payable under
      this  Agreement  all  federal,  state,  city,  or other  taxes as shall be
      required pursuant to any law or governmental regulation then in effect.

7.12  Headings.  Headings and  sub-headings  in this  Agreement are inserted for
      reference  and  convenience  only and  shall  not be deemed a part of this
      Agreement.

                                  SECTION VIII
                              AMENDMENT/REVOCATION

      This Agreement  shall not be amended,  modified or revoked at any time, in
whole or part, without the mutual written consent of the Executive and the Bank,
and such mutual  consent  shall be required  even if the  Executive is no longer
employed by the Bank.

                                   SECTION IX
                                    EXECUTION

9.1   This Agreement sets forth the entire  understanding  of the parties hereto
      with respect to the  transactions  contemplated  hereby,  and any previous
      agreements  or  understandings  between the parties  hereto  regarding the
      subject matter hereof are merged into and superseded by this Agreement.

9.2   This Agreement shall be executed in triplicate,  each copy of which,  when
      so executed  and  delivered,  shall be an  original,  but all three copies
      shall together constitute one and the same instrument.

                     [Remainder of Page Intentionally Blank]

                                       8
<PAGE>

      IN WITNESS  WHEREOF,  the Bank and the  Holding  Company  have caused this
Agreement to be executed on this 1st day of April 2004.

ATTEST:                                     SOUND FEDERAL SAVINGS

/s/ Anthony J. Fabiano                      By:  /s/ Bruno J. Gioffre
----------------------                           --------------------
Secretary                                   Title:  Chairman

ATTEST:                                     SOUND FEDERAL BANCORP, INC.

/s/ Anthony J. Fabiano                      By:  /s/ Bruno J. Gioffre
----------------------                           --------------------
Secretary                                   Title:  Chairman

                                       9
<PAGE>

        NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT JOINDER AGREEMENT

      I, Richard P. McStravick,  and SOUND FEDERAL SAVINGS hereby agree for good
and valuable  consideration,  the value of which is hereby acknowledged,  that I
shall  participate  in  the  Non-qualified   Supplemental  Executive  Retirement
Agreement  ("Agreement")  established  as of January 1, 2004,  by SOUND  FEDERAL
SAVINGS,  as such  Agreement  may now exist or  hereafter  be  modified,  and do
further agree to the terms and conditions thereof.

      I understand that I must execute this Non-qualified Supplemental Executive
Retirement  Joinder  Agreement  ("Joinder  Agreement")  as  well as  notify  the
Administrator of such execution in order to participate in the Agreement.

      I  understand  that  if I  retire  on or  after  attainment  of my  Normal
Retirement  Age of 65,  I  shall  be  entitled  to the  Supplemental  Retirement
Benefit,  calculated in accordance with Subsections 1.22 and 3.1, and subject to
all relevant  provisions of the Agreement.  My Supplemental  Retirement  Benefit
payable  at my Normal  Retirement  Age is  presently  projected  to be  $76,400,
provided,  however,  my  actual  Supplemental  Retirement  Benefit  at my Normal
Retirement Age may be a greater or smaller amount.

      I  understand  that my  annual  Survivor's  Benefit  shall  be equal to my
Supplemental  Retirement  Benefit,  as calculated in accordance with Subsections
1.22 and 3.1 on the day immediately prior to my death, and subject to Subsection
3.2 and all relevant provisions of the Agreement.

      I further  understand that I am entitled to review or obtain a copy of the
Agreement, at any time, and may do so by contacting the Bank.

      This Joinder  Agreement shall become  effective upon execution  (below) by
both the Executive and a duly authorized officer of the Bank.

      Dated this 1st day of April, 2004.

/s/ Richard P. McStravick
--------------------------------
Richard P. McStravick

/s/ Anthony J. Fabiano
--------------------------------
(Bank's duly authorized Officer)

                                       10

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