SOUTHERN CONNECTICUT BANCORP EXHIBIT 10.7


EMPLOYMENT AGREEMENT



            
    This  Agreement is made and entered into as of the 29th day of March,  2001,  by
and between THE BANK OF SOUTHERN  CONNECTICUT,  INC., having its principal place
of  business  in  New  Haven,   Connecticut  (hereinafter  referred  to  as  the
"Employer")  and GARY D. MULLIN,  residing in Orange,  Connecticut  (hereinafter
referred to as the "Employee").


W I T N E S S E T H


            
    WHEREAS, the Employee is experienced in the operation and management of a bank; and

            
    WHEREAS, the Employer desires to secure the services of the Employee on the terms
herein set forth; and

            
    WHEREAS,  the  Employee  is  willing  to enter into this
Agreement on said terms;

            
    NOW, THEREFORE, in  consideration of the promises
and the mutual covenants herein contained,  the parties hereto,  intending to be
legally bound, do hereby mutually covenant and a agree as follows:










            
    1.      Employment.   The
Employer agrees to employ the Employee as President and Chief Operating Officer of the Employer for
the Term of Employment as defined in Section 2, and the Employee accepts said employment and agrees to serve in such capacity upon
the terms and conditions hereinafter set forth.

            
    2.      Term of Employment.   The Term of Employment shall commence on the opening day of operation of the Employer as a bank and
shall end three (3) years from such date. Notwithstanding the foregoing, the term of Employment shall end if sooner terminated as
provided in Section 5.

            
    3.      Duties of Employment.   The Employee agrees that, so long as he shall be employed by the Employer, the Employee shall
perform all duties assigned or delegated to him under the by-laws of the Employer or from time to time by the Board of Directors of
the Employer consistent with his position as President and Chief Operating Officer of the Employer or as designated below, and shall
be responsible for and perform all acts and services customarily associated with such position including the overall management of
the Employer, devoting his full time, best efforts and attention to the advancement of the interests and business of the Employer.
The Employee shall also serve as a member of the Board of Directors of the Employer.  The Employee shall not be engaged in or
concerned with any other duties or pursuits which are competitive or inconsistent with




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the interests and business
of the Employer. It is understood that the Employee may have other directorships
which may, from time to time, require minor portions of his time but which shall
not interfere or be inconsistent with his duties hereunder; PROVIDED, HOWEVER,
that each such directorship shall be subject to the approval of the Board of
Directors of the Employer, which approval shall not be unreasonably withheld.

            
    4.      Compensation.   
During the Term of Employment, the Employer shall pay to the Employee as compensation for the
services to be rendered by him hereunder the following:

            
    (a)     The  Employer  shall pay to the Employee a base
salary at the rate of ONE HUNDRED THIRTY THOUSAND DOLLARS ($130,000.00) for each
twelve  (12)  month  period of  employment,  or such  larger sum as the Board of
Directors of Employer may from time to time determine.  Such compensation  shall
be payable in accordance with normal payroll practices of Employer.

            
    (b)     In  addition to the base salary set forth
in (a) above,  the Employee  shall be entitled to such merit bonuses  reflecting
job performance  achievements,  and/or such other form(s) of merit compensation,
as the Board of Directors of the Employer may in its discretion  determine after
review of the Employee's  performance at the end of each calendar year(s) during
such  Term of  Employment.  The Board of  Directors  may  establish  one or more
individual or corporate goals for each such year, the




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achievement of which may be
made a condition to the payment of such additional compensation to the Employee.
Such goals shall be communicated to the Employee and shall be stated to be a
condition to payment of such additional compensation.


            
    (c)     At  the end of each month during the term
of this  Agreement,  the Employer  shall  reimburse the Employee for  reasonable
travel and  entertainment  expenses,  bank  related  education,  other  ordinary
business expenses and convention  expenses incurred by Employee in the course of
performing his duties for the Employer hereunder.


            
    (d)     The Employer shall
provide group life and disability insurance, comprehensive
health insurance and Major Medical coverage for the Employee and family
comparable to such coverage provided for employees of the Employer generally.
The Employee shall be eligible to participate in any profit sharing plan or
Section 401(k)plan of the Employer in accordance with the terms thereof. 


            
    5.      Termination  of
Employment.   The  Employer shall have the right to terminate
this Agreement upon the occurrence of any one of the following events:


	 	(1)	The Employee's conviction of a felony or any
other crime involving the Employee's morals or honesty.
	
	
	

		(2)	Dereliction in the performance of the Employee's duties hereunder.
	
	
	

	 	(3)	Failure  of the  Employee  to adhere to the  policies  set forth by the Board of
Directors of the Employer.





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	 	(4)	Failure of the Employee to qualify for a bond.
	
	
	

	 	(5)	Death, total disability, or drug abuse or alcoholism, which prevents the
Employee from performing his functions under this Agreement.




In the event of a  termination  under this Section 5, the Employee  shall not be
entitled  to any  compensation  and  benefits  under this  Agreement  after such
termination  other than any benefits  which have accrued and are unpaid upon the
date of termination.


            
    6.      Vacation.   During
the Term of  Employment,  the Employee shall be entitled each year to a vacation
of at least three (3) weeks, and during such time his compensation shall be paid
in full. The period of vacation selected each year shall be with approval of the
Employer and the Chief  Executive  Officer.  Vacation time which is not taken by
the  Employee in any year may not be  accumulated  or carried  over from year to
year.  The Employee  shall be entitled to be paid for any accrued  vacation time
after termination of the Employee's employment hereunder.  Normal bank holidays,
seminars  or  convention  attendance,  teaching  at banking  schools or speaking
engagements shall not be considered as part of the Employee's vacation period.


            
    7.      Incentive                         Stock
Options.   Upon  commencement  of  employment,  the  Employer
shall provide the Employee  incentive stock options ("ISO's") within the meaning
of Section 422 of the




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Internal Revenue Code of
1986, as amended, to purchase 20,000 shares of common stock in Southern
Connecticut Bancorp, Inc. under the stock option plan adopted for employees of
the Employer.


            
    8.      Notices.   All
notices under this Agreement  shall be in writing and shall be deemed  effective
when delivered in person to the Employee or to the Secretary of the Employer, or
if mailed, postage prepaid, registered or certified mail, addressed, in the case
of the Employee,  to his last known address as carried on the personnel  records
of  the  Employer,   and,  in  the  case  of  the  Employer,  to  the  corporate
headquarters,  attention of the Secretary, or to such other address as the party
to be notified may specify by notice to the other party.


            
    9.      Successors and
Assigns.   The  rights and  obligations of the Employer under
this Agreement  shall inure to the benefit of and shall be binding (except as to
the positions and duties of the Employee) upon the successors and assigns of the
Employer,  including,  without limitation, any corporation,  individual or other
person or entity  which may acquire all or  substantially  all of the assets and
business of Employer,  or of any division of the Employer for which the Employee
has primary management responsibility, or with or into which the Employer may be
consolidated or merged or any surviving  corporation in any merger involving the
Employer.




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    10.      Arbitration.   Any
dispute which may arise between the parties hereto shall be submitted to binding
arbitration in accordance with the Rules of the American Arbitration Association
provided that any such dispute shall first be submitted to the Employer's  Board
of Directors in an effort to resolve such dispute without resort to arbitration.
In any dispute which is submitted to  arbitration,  the  attorney's  fees of the
prevailing party shall be paid by the other party.


            
    11.      Severability.   If
any of the terms or  conditions  of this  Agreement  shall be  declared  void or
unenforceable  by any court or  administrative  body of competent  jurisdiction,
such term or  condition  shall be deemed  severable  from the  remainder of this
Agreement,  and the other terms and conditions of this Agreement  shall continue
to be valid and enforceable.


            
    12.      Construction.   This
Agreement shall be construed  under the laws of the State of Connecticut.  Words
of the  masculine  gender mean and  include  correlative  words of the  feminine
gender.  Section headings are for convenience only and shall not be considered a
part of the terms and provisions of the Agreement.




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    IN WITNESS WHEREOF,  Employer has caused this Agreement to be executed by a duly
authorized  officer and Employee has hereunto set his hand,  the day first above
written.


		 	THE BANK OF SOUTHERN CONNECTICUT, INC.
	
	
	

	
	
	

	/s/ Rosemarie A. Romano	 	By: /s/ Elmer Laydon            
           
	
	 	       ELMER LAYDON

       Its Vice Chariman
 
	
	
	

	
	
	

		 	EMPLOYEE:
	
	
	

	/s/ Rosemarie A. Romano	 	/s/ Gary D. Mullin            
                 
	
         Witness	 	GARY D. MULLIN





	STATE OF CONNECTICUT	)	 
		)	ss.:
	COUNTY OF NEW HAVEN	)	 




            
    On this 23rd day of April, 2001, before me, the undersigned officer, personally
appeared, ELMER LAYDON known to me (or satisfactorily proven) to be the person
whose name subscribed to the within instrument and acknowledged that he executed
the same for the purposes therein contained, as his free act and deed.



		/s/ Kirk A. Fornes       
	 	Commissioner of the Superior Court/





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	STATE OF CONNECTICUT	)	 
		)	ss.:
	COUNTY OF NEW HAVEN	)	 



            
    On this 23rd day of April, 2001, before me, the undersigned officer, personally
appeared, GARY D. MULLIN known to me (or satisfactorily proven) to be the person
whose name subscribed to the within instrument and acknowledged that he executed
the same for the purposes therein contained, as his free act and deed.


		/s/ Kirk A. Fornes       
	 	Commissioner of the Superior Court/





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