Document:

<PAGE>

                                                            EXHIBIT 10.23

PROMISSORY NOTE
Issued by Steven J. Hamerslag
to JFAX.COM, Inc.

$7,124,880.00                                  Los Angeles, CA, January 26, 2000

     (In this Note the word "Borrower" means Steven J. Hamerslag, who agrees to
be responsible for all obligations of Borrower in this Note.  The words "you"
and "your" mean JFAX.COM, Inc., or any other owner of this Note.  The word
"Company" means JFAX.COM, Inc. or any successor.)

     1.  Promise to Pay.

     You are making a nonrecourse loan to Borrower in the principal amount of
seven million one hundred twenty-four thousand eight hundred eighty dollars
($7,124,880.00).  Simultaneously with and in evidence of that loan, Borrower is
signing this Note and delivering it to you.  Borrower may repay this Note in
whole or in part at any time but amounts repaid may not be reborrowed.  On the
fifth anniversary of the date of this Note (the "Maturity Date"), Borrower
promises to pay to your order at your office at 10960 Wilshire Boulevard, Suite
500, Los Angeles, CA 90024 (the "Office"), the unpaid principal balance of this
Note, plus accrued and unpaid interest on the outstanding principal balance of
this Note at the applicable rate per annum set forth below in the paragraph
headed Rate of Interest, from the date of this Note to, but excluding, the
business day when this Note is paid in full.  The words "business day" mean any
day (other than a Saturday or Sunday) on which the Office is open to the public
for carrying on substantially all business functions.  You may change the
location of the office by giving written notice of the change to Borrower.  All
payments made on account of principal or interest shall be recorded by you and,
prior to any transfer of this Note, endorsed on a grid that will be attached to
this Note.

     2.  Rate of Interest.

     Interest on the outstanding principal balance of this Note shall accrue at
a rate equal to the annualized yield for United States government securities
with a maturity of one year, as published in the Wall Street Journal on the
business day immediately preceding the date of this Note and each anniversary of
the date of this Note during the term of this Note, and so that such rate shall
adjust on each such anniversary commencing in January 2001.  Nothing in this
paragraph shall obligate Borrower to pay, or allow you to receive, interest in
excess of the maximum rate permitted by applicable law.

     3.  Interest Payments.

     Interest on the unpaid principal balance of this Note is payable annually
in arrears from the date of this Note, commencing with the anniversary date in
2001, and is also payable on the Maturity Date, and on any other date principal
is repaid.  All payments will be applied first to accrued and unpaid interest
and second to repayment of principal.
<PAGE>

     4.  Non-Recourse Note.

     Notwithstanding any other provision of this Note, Borrower shall not have
any personal liability for the payment of any principal of or interest on this
Note, and no monetary or deficiency judgment shall be sought or enforced against
Borrower with respect thereto, provided that a judgment may be sought against
Borrower to enforce your rights under this Note with respect to the Collateral,
as defined below, and you shall have full recourse to and the right to proceed
against the Collateral, until this Note is paid in full.

     5.  Pledge and Grant of Security Interest.

     Borrower has rights in 120 shares (the "Escrow Shares") of the Series B
convertible preferred stock of the Company that are being held pursuant to an
Escrow Agreement, dated as of January 26, 2000 (the "Escrow Agreement"), among
the Company, Borrower, another employee of the Company and City National Bank,
as Escrow Agent.  The rights of Borrower in the Escrow Shares also include
rights in "Other Escrow Property" as defined in the Escrow Agreement that
derives from the Escrow Shares.  References herein to the Escrow Shares and the
Other Escrow Property shall not include the shares and other escrow property of
such other employee that are also being held under the Escrow Agreement.

     To secure the obligations of Borrower to pay all amounts due pursuant to
this Note (the "Obligations"), Borrower hereby gives you a security interest in
the Escrow Shares and the Other Escrow Property, and any proceeds thereof
(collectively, the "Collateral").  Borrower agrees that, except as provided in
the paragraph headed Right of Partial Payment, he shall have no right to receive
the Escrow Shares or any Other Escrow Property until this Note has been paid in
full, and until the Company's Repurchase Right, as defined below, with respect
to the Escrow Shares has expired, and the Escrow Agent shall hold the Collateral
solely for your benefit.

     You will take reasonable care of the property which you hold as Collateral.
Borrower agrees that reasonable care is the care you give similar property which
you may own, which includes any action you may take at Borrower's request in
dealing with the Collateral.

     Borrower will sign upon request any financing statements, instruments,
documents or other papers as you may request in order to protect your
Collateral.  Borrower authorizes you to file at Borrower's expense any financing
statements to perfect the security interest granted by this Note, without
Borrower's signature being required on any such financing statements.  Borrower
hereby grants you a power of attorney to take all action, or sign, file and
deliver any document, which you deem necessary to protect your security
interest.

     6.  Right of Set Off.

     Borrower has granted to the Company the right to repurchase ("Repurchase
Right") all or a portion of the Escrow Shares, at a price equal to the
Repurchase Price, as defined in the Notice Procedures attached to the Escrow
Agreement (the "Repurchase Price"), and Borrower hereby agrees and
<PAGE>

acknowledges that in lieu of making payment of the Repurchase Price in cash, so
long as the Company is the holder of this Note, the Company shall be entitled to
set off against amounts owing to the Company under this Note, with a
corresponding reduction in this Note, as and when the Company exercises its
Repurchase Right with respect to the Escrow Shares. Any such set off utilized by
the Company will be treated as a payment on account of principal of or interest
on this Note and shall be recorded by you on the grid that is attached to this
Note. The set off shall be applied first to accrued and unpaid interest and
second to repayment of principal as provided in paragraph 3 above.

     7.  Right of Partial Payment.

     At any time when the Repurchase Right of the Company has expired with
respect to all or a portion of the Escrow Shares, and Borrower has made
repayment with respect to all or a portion of the principal amount of this Note,
and has made payment of the accrued and unpaid interest thereon, then Borrower
shall be entitled to receive out of escrow a number of the Escrow Shares,
including the Other Escrow Property that derives therefrom, so long as the
following three conditions are met:

          (x) the number of Escrow Shares to be received by Borrower does not
     exceed the number of Escrow Shares as to which the Repurchase Right of the
     Company has expired,

          (y) the number of Escrow Shares to be received by Borrower, as a
     percentage of all of the Escrow Shares initially placed in escrow, does not
     exceed the percentage of the principal of this Note that has been repaid by
     Borrower, including the accrued and unpaid interest thereon, and

          (z) no default under this Note shall have occurred and be continuing.

For purposes of this paragraph, any reference to the Repurchase Right of the
Company having expired means that it has expired unexercised and is no longer
capable of being exercised, to the extent referred to, and any reference to
payment by Borrower of principal of this Note means that the Borrower has paid
the same in cash, to the extent referred to, and not through set off.

     8.  Authorization.

     Borrower represents and warrants that he has duly authorized, executed and
delivered this Note which is a valid, binding and enforceable obligation of
Borrower.

     9.  Default.

     Borrower will be in default under this Note if any of the following should
happen:

     a.   Borrower fails to pay any amounts due under this Note to you when due;

     b.   Borrower fails to observe any other term or condition of this Note;
<PAGE>

     c.   Borrower becomes insolvent or any proceeding in bankruptcy or
          insolvency is started by or against Borrower;

     d.   Borrower takes advantage of any bankruptcy or insolvency law;

     e.   Borrower  makes an assignment for the benefit of creditors; or

     f.   Any property of Borrower that constitutes Collateral is attached or if
          Borrower or any such property becomes subject to court order or other
          legal process.

     10.  Consequences of Default.

     If Borrower is in default, this Note will, upon notice to Borrower by you,
become and be immediately due and payable.  Notwithstanding the preceding
sentence, if Borrower is in default of part c, d or e of the paragraph above
headed Default, this Note will become and be immediately due and payable without
your having to give Borrower any notice.

     11.  Remedies.

          If Borrower is in default, you will have all rights and remedies
available to you under law, including the California Uniform Commercial Code,
including with respect to any Collateral provided by Borrower to you.  Upon a
default, you shall have the right to obtain delivery of all the Collateral from
the Escrow Agent.

     Recognizing that the Company is the issuer of the Escrow Shares, and that
the Collateral may not be readily marketable following any default by Borrower,
you shall be entitled to retain Escrow Shares following any default by Borrower
and to credit such shares against any Obligations of Borrower hereunder.  The
Escrow Shares shall be credited for this purpose as at a price per share equal
to (x) the number of shares of the Company's common stock into which the Escrow
Shares are then convertible multiplied by (y) the average of the closing prices
per share for the Company's common stock on the Nasdaq National Market on the
last five trading days prior to your determination to implement such procedure,
provided that, in the case of any Escrow Shares that are still subject or
potentially subject to the Company's Repurchase Right, the price per share of
the Escrow Shares shall not exceed the Repurchase Price.  If you implement this
procedure, you shall be entitled to retain only the number of shares needed to
pay the Obligations of Borrower under this Note in full.  Any excess Escrow
Shares shall be returned to or remain in escrow under the Escrow Agreement,
until the Escrow Shares are otherwise deliverable out of escrow to the person or
persons entitled to the Escrow Shares.

     If advance notice to Borrower is ever required, notice given to Borrower
three business days before you dispose of any of the Collateral will be
reasonable advance notice.  This notice must be in writing and will be effective
when mailed or hand delivered to Borrower at the address given you on the
signature page of this Note.  If you decide that it is practicable to do so, and
you determine to sell any of the Collateral, you may sell it on any terms you
choose.  You will not be required to advertise, and you will not be liable for
any risk of selling on credit.  After selling any of the Collateral, you may use
what you receive from the sale to first repay your expenses in taking and
keeping the Collateral, preparing it for
<PAGE>

sale and selling it (for example, commissions and your reasonable attorney's
fees and disbursements). Any excess proceeds and any remaining Collateral after
all of Borrower's Obligations to you are paid in full, shall be returned to
escrow under the Escrow Agreement, until the same is otherwise deliverable out
of escrow to the person or persons entitled thereto.

     12.  Waiver; Delay in Enforcement.

     Borrower specifically waives any legal requirements of presentment for
payment, demand, protest, notice of dishonor and notice of protest of this Note.
You can delay enforcing any of your rights without losing them.

     13.  Applicable Law.

     BORROWER AGREES THAT THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF CALIFORNIA WITHOUT REFERENCE TO THE CHOICE OF LAW PRINCIPLES THEREOF.

     14.  Collection and Enforcement Costs.

     Borrower agrees to pay, on demand, all costs and expenses, if any, in
connection with the collection or enforcement of this Note (whether through
negotiations, legal proceedings or otherwise), including without limitation
reasonable attorneys' fees and disbursements, court costs and your disbursements
in connection with the enforcement of your rights under this Note or with
respect to the Collateral.

     15.  Changes.

     The terms of this Note may not be changed unless the change is authorized
by you in writing.  In addition, Borrower agrees to notify you of any change in
his name, address and/or employment.  You will notify Borrower of any change in
location of the Office.

     16.  Successors.

     Borrower's obligations under this Note will also be binding upon his heirs,
executors and administrators.

     17.  Transfer of Note.

     You may transfer this Note and deliver to one or more third parties all or
any of the property then held by you as Collateral under this Note, and the
transferee(s) shall thereupon become vested with all the powers and rights given
to you with respect to this Note; and you shall thereafter be forever relieved
and fully discharged from any liability or responsibility in the matter, but you
shall retain all rights and powers given in this Note with respect to property
not so transferred.
<PAGE>

     18.  Submission to Jurisdiction.

     Without limiting your right to bring any action or proceeding against
Borrower or against Borrower's property arising out of or relating to any
Obligations under this Note (an "Action") in the courts of other
jurisdiction(s), Borrower irrevocably submits to the jurisdiction of any State
or federal court sitting in the State of California, and Borrower irrevocably
agrees that any Action may be heard and determined in such State court or
federal court.  Borrower irrevocably waives to the fullest extent that he may
effectively do so, the defense of an inconvenient forum to the maintenance of
any Action in any jurisdiction.  Borrower irrevocably agrees that the summons
and complaint or any other process in any Action in any jurisdiction may be
served by mailing to the address  Borrower has given you on this Note or by hand
delivery to a person of suitable age and discretion at that address.  Such
service will be complete on the date such process is so mailed or delivered.
Borrower may also be served in any other manner permitted by law.
<PAGE>

     19.  Trial by Jury Waiver.

     Both you and Borrower irrevocably waive all right to trial by jury in any
Action or counterclaim arising out of or relating to this Note.

     Borrower acknowledges that he has received a completely filled-in copy of
this Note.

     In witness whereof, this Note has been signed by Borrower as of the date
first above written:

                         /s/ Steven J. Hamerslag
                         -----------------------
                         Steven J. Hamerslag
                         Address:       P.O. Box 730
                                        17501 Via de Fortuna
                                        Rancho Santa Fe, CA  92067
<PAGE>

GRID
----
Promissory Note
Issued by Steven J. Hamerslag
to JFAX.COM, Inc.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                             Interest                Principal               Principal
        Date                 Payments               Repayments                Balance
        ----                 --------               ----------                -------
<S>                          <C>                    <C>                     <C>
---------------------------------------------------------------------------------------------
January 26, 2000                                                           $7,124,880
---------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------
</TABLE>EXHIBIT 10.5
<PAGE>

                              EMPLOYMENT AGREEMENT

         THIS  AGREEMENT,  is  entered  into  this  21st day of  January,  1998,
("Effective Date") by and between  Roxbough-Manayunck  Federal Savings Bank (the
"Bank") and John F. McGill, Jr. (the "Executive").

                                   WITNESSETH

         WHEREAS,  the Executive has heretofore been employed by the Bank as the
President and Chief  Executive  Officer and is  experienced in all phases of the
business of the Bank; and

         WHEREAS,  the Bank desires to be ensured of the  Executive's  continued
active participation in the business of the Bank; and

         WHEREAS,  in order to induce the  Executive  to remain in the employ of
the Bank and in  consideration  of the  Executive's  agreeing  to  remain in the
employ of the Bank,  the  parties  desire to specify the  continuing  employment
relationship between the Bank and the Executive;

         NOW  THEREFORE,  in  consideration  of  the  premises  and  the  mutual
agreements herein contained, the parties hereby agree as follows:

         1. Employment. The Bank hereby employs the Executive in the capacity of
            ----------
President  and Chief  Executive  Officer.  The  Executive  hereby  accepts  said
employment and agrees to render such  administrative and management  services to
the Bank, Thistle Group Holdings ("Parent") and FJF Financial, M.H.C. ("MHC") as
are currently rendered and as are customarily performed by persons situated in a
similar executive capacity. The Executive shall promote the business of the Bank
and Parent. The Executive's other duties shall be such as the Board of Directors
for the Bank  (the  "Board  of  Directors"  or  "Board")  may from  time to time
reasonably direct, including normal duties as an officer of the Bank.

         2. Term of Employment.  The term of employment of Executive  under this
            ------------------
Agreement  shall be for the period  commencing on the Effective  Date and ending
thirty-six (36) months thereafter  ("Term").  Additionally,  on, or before, each
annual  anniversary  date from the Effective Date, the Term of employment  under
this Agreement shall be extended for up to an additional  period beyond the then
effective  expiration date upon a  determination  and resolution of the Board of
Directors  that the  performance of the Executive has met the  requirements  and
standards of the Board,  and that the Term of such Agreement  shall be extended.
References  herein to the Term of this Agreement shall refer both to the initial
term and successive terms.

<PAGE>

         3.    Compensation, Benefits and Expenses.
               -----------------------------------

               (a) Base Salary.  The Bank shall compensate and pay the Executive
during the Term of this  Agreement a minimum base salary at the rate of $225,000
per annum ("Base  Salary"),  payable in cash not less  frequently  than monthly;
provided,  that  the  rate of such  salary  shall be  reviewed  by the  Board of
Directors not less often than annually,  and the Executive  shall be entitled to
receive  increases at such  percentages  or in such amounts as determined by the
Board of Directors. The base salary may not be decreased without the Executive's
express written consent.

               (b)  Discretionary  Bonus.  The  Executive  shall be  entitled to
participate in an equitable manner with all other senior management employees of
the Bank in  discretionary  bonuses that may be  authorized  and declared by the
Board of Directors to its senior  management  executives  from time to time.  No
other  compensation  provided for in this Agreement shall be deemed a substitute
for the Executive's right to participate in such discretionary  bonuses when and
as declared by the Board.

               (c)  Participation in Benefit and Retirement Plans. The Executive
shall be entitled to  participate in and receive the benefits of any plan of the
Bank which may be or may become  applicable  to senior  management  relating  to
pension or other  retirement  benefit  plans,  profit-sharing,  stock options or
incentive plans, or other plans,  benefits and privileges given to employees and
executives  of the Bank,  to the extent  commensurate  with his then  duties and
responsibilities, as fixed by the Board of Directors of the Bank.

               (d)  Participation in Medical Plans and Insurance  Policies.  The
Executive  shall be entitled to  participate  in and receive the benefits of any
plan or  policy  of the Bank  which may be or may  become  applicable  to senior
management relating to life insurance, short and long term disability,  medical,
dental,   eye-care,   prescription   drugs  or  medical   reimbursement   plans.
Additionally,  Executive's  dependent family shall be eligible to participate in
medical and dental  insurance plans sponsored by the Savings Bank or Parent with
the cost of such premiums paid by the Savings Bank.

               (e) Vacations and Sick Leave.  The Executive shall be entitled to
paid annual vacation leave in accordance  with the policies as established  from
time to time by the  Board of  Directors,  which  shall in no event be less than
four weeks per annum.  The  Executive  shall also be  entitled to an annual sick
leave benefit as established by the Board for senior management employees of the
Bank. The Executive shall not be entitled to receive any additional compensation
from the Bank for failure to take a vacation or sick leave, nor shall he be able
to accumulate unused vacation or sick leave from one year to the next, except to
the extent authorized by the Board of Directors.

                                       2
<PAGE>

         (f)  Expenses.  The Bank shall  reimburse  the  Executive  or otherwise
provide for or pay for all  reasonable  expenses  incurred by the  Executive  in
furtherance of, or in connection with the business of the Bank,  including,  but
not by way of limitation,  automobile and traveling expenses, and all reasonable
entertainment  expenses,  subject  to such  reasonable  documentation  and other
limitations as may be established by the Board of Directors of the Bank. If such
expenses  are paid in the  first  instance  by the  Executive,  the  Bank  shall
reimburse the Executive therefor.

               (g) Changes in  Benefits.  The Bank shall not make any changes in
such plans, benefits or privileges previously described in Section 3(c), (d) and
(e) which would adversely affect the Executive's rights or benefits  thereunder,
unless such change  occurs  pursuant to a program  applicable  to all  executive
officers of the Bank and does not result in a  proportionately  greater  adverse
change in the rights of, or benefits  to, the  Executive  as  compared  with any
other executive officer of the Bank. Nothing paid to Executive 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  Executive  pursuant  to  Section  3(a)
hereof.

         4.    Loyalty; Noncompetition.
               -----------------------

               (a) The Executive shall devote his full time and attention to the
performance  of his  employment  under  this  Agreement.  During the term of the
Executive's  employment under this Agreement,  the Executive shall not engage in
any business or activity  contrary to the  business  affairs or interests of the
Bank or Parent.

               (b)  Nothing  contained  in this  Section  4 shall be  deemed  to
prevent or limit the right of Executive to invest in the capital  stock or other
securities  of any  business  dissimilar  from that of the Bank or  Parent,  or,
solely as a passive or minority investor, in any business.

         5. Standards.  During the term of this  Agreement,  the Executive shall
perform his duties in  accordance  with such  reasonable  standards  expected of
executives with comparable  positions in comparable  organizations and as may be
established from time to time by the Board of Directors.

         6.    Termination and Termination Pay. The Executive's employment under
               -------------------------------
 this Agreement shall be terminated upon any of the following occurrences:

               (a) The death of the Executive during the term of this Agreement,
in  which  event  the  Executive's  estate  shall be  entitled  to  receive  the
compensation  due the  Executive  through the last day of the calendar  month in
which Executive's death shall have occurred.

               (b)  The  Board  of  Directors  may  terminate  the   Executive's
employment at any time, but any termination by the Board of Directors other than
termination  for Just  Cause,  shall  not  prejudice  the  Executive's  right to
compensation or other benefits under the Agreement.  The Executive shall have no
right to receive compensation or other benefits for any period after

                                       3
<PAGE>

termination for Just Cause. The Board may within its sole discretion,  acting in
good  faith,  terminate  the  Executive  for Just  Cause and shall  notify  such
Executive  accordingly.  Termination for "Just 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 the Agreement.

               (c) Except as provided pursuant to Section 9 hereof, in the event
Executive's  employment  under  this  Agreement  is  terminated  by the Board of
Directors without Just Cause, the Bank shall be obligated to continue to pay the
Executive the salary provided pursuant to Section 3(a) herein, up to the date of
termination  of the  remaining  Term of this  Agreement,  but in no event  for a
period of less than  eighteen (18) months,  and the cost of Executive  obtaining
all health,  life,  disability,  and other benefits which the Executive would be
eligible  to  participate  in through  such date based upon the  benefit  levels
substantially equal to those being provided Executive at the date of termination
of employment.

               (d) The voluntary termination by the Executive during the term of
this  Agreement  with the delivery of no less than 60 days written notice to the
Board of  Directors,  other than  pursuant  to Section  9(b),  in which case the
Executive shall be entitled to receive only the compensation, vested rights, and
all employee benefits up to the date of such termination.

         7.    Regulatory Exclusions.
               ---------------------

         (a) If the Executive 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 FDIA (12 U.S.C.  1818(e)(3)  and (g)(1)),  the
Bank's  obligations  under the  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 within its discretion (i) pay the Executive all or
part of the compensation  withheld while its contract obligations were suspended
and (ii) reinstate any of its obligations which were suspended.

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

         (c) If the Bank is in default (as  defined in Section  3(x)(1) of FDIA)
all obligations  under this Agreement shall terminate as of the date of default,
but this  paragraph  shall not  affect  any  vested  rights  of the  contracting
parties.

                                       4
<PAGE>

         (d) 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 of the Office of Thrift
Supervision  ("Director of OTS"),  or his or her designee,  at the time that the
Federal  Deposit  Insurance  Corporation  ("FDIC")  enters into an  agreement to
provide assistance to or on behalf of the Bank under the authority  contained in
Section  13(c)  of  FDIA;  or (ii) by the  Director  of the  OTS,  or his or her
designee,  at the time  that the  Director  of the OTS,  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  of the OTS to be in an
unsafe or unsound condition. Any rights of the parties that have already vested,
however, shall not be affected by such action.

         (e) Notwithstanding  anything herein to the contrary, any payments made
to the Executive  pursuant to the Agreement,  or otherwise,  shall be subject to
and  conditioned  upon  compliance  with 12 USC ss.1828(k)  and any  regulations
promulgated thereunder.

         8. Disability.  If the Executive shall become disabled or incapacitated
            ----------
to the extent  that he is unable to perform his duties  hereunder,  by reason of
medically determinable physical or mental impairment,  as determined by a doctor
engaged by the Board of  Directors,  Executive  shall  nevertheless  continue to
receive the compensation and benefits provided under the terms of this Agreement
as follows:  100% of such  compensation  and benefits for a period of 12 months,
but not exceeding the remaining  term of the  Agreement,  and 65% thereafter for
the remainder of the term of the Agreement.  Such benefits noted herein shall be
reduced by any benefits  otherwise  provided to the Executive during such period
under the  provisions  of  disability  insurance  coverage  in  effect  for Bank
employees.  Thereafter, Executive shall be eligible to receive benefits provided
by the Bank under the provisions of disability  insurance coverage in effect for
Bank employees.  Upon returning to active full-time employment,  the Executive's
full  compensation  as set forth in this Agreement shall be reinstated as of the
date of commencement of such activities. In the event that the Executive returns
to active  employment on other than a full-time basis, then his compensation (as
set forth in Section 3(a) of this  Agreement)  shall be reduced in proportion to
the time spent in said  employment,  or as shall  otherwise  be agreed to by the
parties.

         9.    Change in Control.
               -----------------

               (a) Notwithstanding any provision herein to the contrary,  in the
event of the involuntary  termination of Executive's  employment during the term
of this  Agreement  following  any Change in  Control of the Bank or Parent,  or
within 24 months  thereafter  of such  Change in  Control,  absent  Just  Cause,
Executive  shall be paid an  amount  equal to the  product  of 2.999  times  the
Executive's  "base  amount" as defined in  Section  280G(b)(3)  of the  Internal
Revenue  Code of 1986,  as amended  (the  "Code")  and  regulations  promulgated
thereunder.  Said sum shall be paid, at the option of  Executive,  either in one
(1) lump sum  within  thirty  (30) days of such  termination  of  service  or in
periodic  payments  over  the  next  36  months  or the  remaining  term of this
Agreement  whichever  is  less,  as  if  Executive's  employment  had  not  been
terminated,  and such  payments  shall be in lieu of any other  future  payments
which the  Executive  would be otherwise

                                       5
<PAGE>

entitled  to receive  under  Section 6 of this  Agreement.  Notwithstanding  the
forgoing, all sums payable hereunder shall be reduced in such manner and to such
extent so that no such payments made  hereunder when  aggregated  with all other
payments to be made to the  Executive  by the Bank or the Parent shall be deemed
an "excess parachute payment" in accordance with Section 280G of the Code and be
subject to the  excise tax  provided  at Section  4999(a) of the Code.  The term
"Change in Control"  shall refer to (i) the sale of all, or a material  portion,
of  the  assets  of  the  Savings  Bank  or  the  Parent;  (ii)  the  merger  or
recapitalization  of the Savings Bank or the Parent  whereby the Savings Bank or
the Parent is not the surviving entity; (iii) a change in control of the Savings
Bank or the Parent,  as otherwise  defined or determined by the Office of Thrift
Supervision or regulations promulgated by it; or (iv) the acquisition,  directly
or indirectly,  of the beneficial  ownership (within the meaning of that term as
it is used in Section 13(d) of the Securities Exchange Act of 1934 and the rules
and regulations  promulgated thereunder) of twenty-five percent (25%) or more of
the  outstanding  voting  securities  of the  Savings  Bank or the Parent by any
person, trust, entity or group other than by Parent or MHC.  Notwithstanding the
foregoing, a Change in Control shall not include a transaction whereby Parent or
MHC merges  directly or indirectly with and into the Bank and 100% of the Common
Stock of the Bank is simultaneously  acquired by a newly established parent bank
holding company or unitary savings and loan holding  company.  The term "person"
means an individual  other than the Executive,  or a  corporation,  partnership,
trust,  association,   joint  venture,  pool,  syndicate,  sole  proprietorship,
unincorporated  organization or any other form of entity not specifically listed
herein.

               (b)  Notwithstanding any other provision of this Agreement to the
contrary,  Executive may voluntarily terminate his employment during the term of
this  Agreement  following a Change in Control of the Bank or Parent,  or within
twenty-four  months  following  such Change in  Contriol,  and  Executive  shall
thereupon  be entitled to receive the payment  described in Section 9(a) of this
Agreement,  upon the occurrence,  or within 120 days  thereafter,  of any of the
following  events,  which have not been consented to in advance by the Executive
in writing: (i) if Executive would be required to move his personal residence or
perform his principal  executive functions more than thirty-five (35) miles from
the Executive's  primary office as of the signing of this Agreement;  (ii) if in
the organizational  structure of the Bank, Executive would be required to report
to a person or persons  other than the Board of Directors of the Bank;  (iii) if
the Bank should fail to maintain  Executive's base  compensation in effect as of
the date of the Change in Control  and the  existing  employee  benefits  plans,
including  material fringe benefit,  stock option and retirement  plans; (iv) if
Executive  would be  assigned  duties  and  responsibilities  other  than  those
normally associated with his position as referenced at Section 1, herein; (v) if
Executive's  responsibilities  or  authority  have  in any way  been  materially
diminished or reduced;  or (vi) if Executive would not be reelected to the Board
of Directors of the Bank.

         10. Withholding. All payments required to be made by the Bank hereunder
             -----------
to the Executive  shall be subject to the  withholding of such amounts,  if any,
relating  to tax  and  other  payroll  deductions  as the  Bank  may  reasonably
determine should be withheld pursuant to any applicable law or regulation.

                                       6

<PAGE>

         11.      Successors and Assigns.
                  ----------------------

               (a) This  Agreement  shall inure to the benefit of and be binding
upon any corporate or other successor of the Bank or Parent which shall acquire,
directly or indirectly, by merger, consolidation,  purchase or otherwise, all or
substantially all of the assets or stock of the Bank or Parent.

               (b) Since the Bank is  contracting  for the unique  and  personal
skills of the  Executive,  the Executive  shall be precluded  from  assigning or
delegating his rights or duties  hereunder  without first  obtaining the written
consent of the Bank.

        12. Amendment;  Waiver. No provisions of this Agreement may be modified,
            ------------------
waived or discharged unless such waiver,  modification or discharge is agreed to
in  writing,  signed by the  Executive  and such  officer or  officers as may be
specifically  designated  by the Board of  Directors  of the Bank to sign on its
behalf.  No waiver by any  party  hereto at any time of any  breach by any 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.

         13.  Governing  Law. The  validity,  interpretation,  construction  and
              --------------
performance of this Agreement shall be governed by the laws of the United States
where  applicable  and  otherwise  by  the  substantive  laws  of the  State  of
Pennsylvania.

        14.  Nature of  Obligations.  Nothing  contained  herein shall create or
             ----------------------
require the Bank to create a trust of any kind to fund any benefits which may be
payable  hereunder,  and to the extent  that the  Executive  acquires a right to
receive  benefits from the Bank  hereunder,  such right shall be no greater than
the right of any unsecured general creditor of the Bank.

         15. Headings.  The section headings contained in this Agreement are for
             --------
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

        16.  Severability.  The  provisions  of this  Agreement  shall be deemed
             ------------
severable  and the  invalidity  or  unenforceability  of any  provision  of this
Agreement  shall  not  affect  the  validity  or  enforceability  of  the  other
provisions of this Agreement, which shall remain in full force and effect.

        17. Arbitration.  Any controversy or claim arising out of or relating to
            -----------
this  Agreement,  or the breach  thereof,  shall be settled  by  arbitration  in
accordance  with the rules then in effect of the district office of the American
Arbitration  Association  ("AAA")  nearest to the home  office of the Bank,  and
judgment upon the award rendered may be entered in any court having jurisdiction
thereof,  except to the extent  that the parties  may  otherwise  reach a mutual
settlement of such issue.  Further, the settlement of the dispute to be approved
by the Board of the Bank may include a provision  for the  reimbursement  by the
Bank  to  the  Executive  for  all  reasonable  costs  and  expenses,  including
reasonable  attorneys' fees, arising from such dispute,  proceedings or actions,

                                       7
<PAGE>

or the Board of the Bank or the Parent may authorize such  reimbursement of such
reasonable  costs and  expenses  by separate  action  upon a written  action and
determination   of  the  Board  following   settlement  of  the  dispute.   Such
reimbursement shall be paid within ten (10) days of Executive  furnishing to the
Bank or Parent  evidence,  which may be in the form,  among other  things,  of a
canceled check or receipt, of any costs or expenses incurred by Executive.

        18. Confidential Information. The Executive acknowledges that during his
            ------------------------
or her  employment  he or  she  will  learn  and  have  access  to  confidential
information  regarding  the Savings  Bank and the Parent and its  customers  and
businesses ("Confidential Information").  The Executive agrees and covenants not
to  disclose  or use for his or her own  benefit,  or the  benefit  of any other
person or entity, any such Confidential Information, unless or until the Savings
Bank or the  Parent  consents  to  such  disclosure  or use or such  information
becomes common  knowledge in the industry or is otherwise  legally in the public
domain. The Executive shall not knowingly disclose or reveal to any unauthorized
person any Confidential Information relating to the Savings Bank, the Parent, or
any  subsidiaries or affiliates,  or to any of the businesses  operated by them,
and the  Executive  confirms  that such  information  constitutes  the exclusive
property of the Savings Bank and the Parent.  The Executive  shall not otherwise
knowingly  act or conduct  himself (a) to the material  detriment of the Savings
Bank or the Parent, or its subsidiaries, or affiliates, or (b) in a manner which
is  inimical or contrary  to the  interests  of the Savings  Bank or the Parent.
Executive  acknowledges  and agrees that the existence of this Agreement and its
terms and conditions constitutes  Confidential  Information of the Savings Bank,
and the Executive  agrees not to disclose the Agreement or its contents  without
the prior written  consent of the Savings Bank.  Notwithstanding  the foregoing,
the Savings Bank reserves the right in its sole discretion to make disclosure of
this  Agreement as it deems  necessary or  appropriate  in  compliance  with its
regulatory  reporting  requirements.  Notwithstanding  anything  herein  to  the
contrary, failure by the Executive to comply with the provisions of this Section
may  result  in the  immediate  termination  of the  Agreement  within  the sole
discretion of the Savings Bank,  disciplinary action against the Executive taken
by the Savings Bank,  including but not limited to the termination of employment
of the Executive for breach of the Agreement and the provisions of this Section,
and other remedies that may be available in law or in equity.

         19. Entire Agreement. This Agreement together with any understanding or
             ----------------
modifications  thereof as agreed to in writing by the parties,  shall constitute
the entire agreement between the parties hereto.

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