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                                                                   Exhibit 10.11


                             EMPLOYMENT AGREEMENT

     AGREEMENT, dated as July 15, 1998, by and among CORNERSTONE BANK, a
Connecticut State chartered bank (the "Bank") with its principal executive
offices at 550 Summer Street, Stamford, Connecticut 06901, and PAUL H. READER
(the "Employee"), residing at 181 Carter Street, New Canaan, CT 06840.

     WHEREAS, the Bank and the Employee desire to enter into an employment
agreement on the terms and conditions set forth herein.

     NOW, THEREFORE, it is AGREED as follows:

     1.   Employment. The employee is employed as Senior Vice President of the
          ----------
          Bank. As an executive officer of the Bank, the Employee shall render
          executive, policy, and other management services to the Bank of the
          type customarily performed by persons serving in similar executive
          officer capacities with banks engaging in the business of the Bank.
          The Employee shall also perform such duties as the Board of Directors
          of the Bank (the "Board") may from time to time reasonably direct.
          During the term of this agreement, there shall be no material increase
          or decrease in the duties and responsibilities of the Employee
          otherwise than as provided herein, unless the parties otherwise agree
          in writing. During the term of this Agreement, the Employee shall not
          be required to relocate more than 25 miles from Stamford, Connecticut,
          in order to perform the services hereunder. Should the Employee be
          required to relocate more than 25 miles from Stamford in order to
          maintain his position or compensation at at least its present level,
          then the employee's employment shall be considered as involuntarily
          terminated without cause for purposes of sections 8 and 9 of this
          Agreement unless the Employee provides the Bank with a written waiver
          of his rights to consider his employment as involuntarily terminated.

     2.   Compensation. The Bank agrees to pay the Employee during the term of
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          this Agreement an initial salary at an annual rate equal to $100,000
          with the salary to be increased as determined by the Board. At least
          once during each calendar year during the period in which this
          Agreement is in effect, the Board shall consider increasing the
          employee's salary then in effect; provided, however, that the Board
          shall be under no obligation to grant any such increase. In
          considering salary increases, the Board shall take into account
          increases in the cost of living and shall also consider performance or

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          merit increases. The salary of the Employee shall not be decreased at
          any time during the term of this Agreement from the amount then in
          effect, unless the Employee otherwise agrees in writing. Participation
          in deferred compensation, discretionary bonus, retirement, and other
          employee benefit plans and in fringe benefits shall not reduce the
          salary then in effect, payable to the Employee under this Section 2.
          The salary under this Section 2 shall be payable to the Employee not
          less frequently than monthly. The Employee shall not be entitled to
          receive fees for serving as a director of the Bank or for serving as a
          member of any committee of the Board.

     3.   Discretionary Bonuses. During the term of this Agreement, the Employee
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          shall be entitled to participate in such discretionary bonus
          arrangements as may be authorized by the Board. No other compensation
          provided for in this Agreement shall be deemed a substitute for the
          Employee's right to participate in such bonuses when and as authorized
          by the Board.

     4.   Participation in Retirement and Employee Benefit Plans; Fringe
          --------------------------------------------------------------
          Benefits; Automobile. The Employee shall be entitled to participate in
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          any plan of the Bank relating to stock options, stock purchases,
          pension, thrift, profit sharing, group life insurance, supplemental
          life insurance, medical coverage, disability, education, or other
          retirement or employee benefits which the Bank has adopted or may
          adopt for the benefit of its executive employees. The Employee shall
          also be entitled to participate in any other fringe benefits which are
          now or may become applicable to the Bank's executive employees,
          including the payment of reasonable business related expenses and
          expenses for attending annual and periodic meetings of trade
          associations, and any other benefits which are commensurate with the
          duties and responsibilities to be performed by the Employee under this
          Agreement. The Employee shall also be entitled to the use of an
          automobile which shall be provided by the Bank and as to which the
          Bank shall bear all expenses of operation, including but not limited
          to repairs, fuel, and parking charges.

     5.   Term. The term of employment under this Agreement shall be for the
          ----
          period commencing on the date of execution hereof and ending on the
          first to occur of (i) the Employee's death or Disability, (ii) the
          Employee's voluntary termination employment, or (iii) the termination
          of the Employee's employment by the Bank (either for cause or
          otherwise), all as herein provided. For the purposes of this


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     Agreement, "Disability" shall mean the absence of the Employee from the
     Employee's duties with Holdings or the Bank on a full-time basis for 180
     consecutive business days, as a result of incapacity owing to mental or
     physical illness which is determined to be total and permanent by a
     physician selected by Employer or its insurers and acceptable to the
     Employee or Employee's legal representative.

6.   Standards. (a) The Employee shall perform the Employee's duties and
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     responsibilities under this Agreement in accordance with such reasonable
     standards as may be established from time to time by the Board. The
     reasonableness of such standards shall be measured against standards for
     executive performance generally prevailing in the banking industry.

                (b) Performance of duties as an officer, director or employee of
     any affiliate of Holdings or performance of acts to effect organization of
     such affiliate shall not be considered to violate any duty Employee may
     have to Holdings or the Bank.

7.   Voluntary Absences. Vacations. The Employee shall be entitled, without
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     loss of pay, to be absent voluntarily for reasonable periods of time from
     the performance of Employee's duties and responsibilities under this
     Agreement. All such voluntary absences shall be considered paid vacation
     time, unless the Board otherwise approves. The Employee shall be entitled
     to an annual paid vacation of at least 5 weeks per year or such longer
     period as the Board may approve. The timing of paid vacations shall be
     scheduled in a reasonable manner by the Employee. The Employee shall not be
     entitled (i) to receive any additional compensation from Holdings or the
     Bank on account of failure to take a paid vacation or (ii) to accumulate
     unused paid vacation time from one fiscal year to the next.

8.   Termination of Employment.
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  (a)

     (i)  The board may terminate the Employee's employment at any time. The
          Employee shall have no right to receive compensation or other benefits
          for any period after termination for cause or after voluntary
          termination by the Employee except as provided in Section 9. The term
          "termination for cause" shall mean termination by Holdings or the Bank

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          because of the Employee's personal dishonesty, incompetence, willful
          misconduct, breach of fiduciary duty involving personal profit,
          intentional failure to perform stated duties, willful violation of any
          law, rule, or regulation (other than traffic violations or similar
          offenses) or final cease and desist order, or material breach of any
          provision of this Agreement. In determining incompetence, the acts or
          omissions shall be measured against standards generally prevailing in
          the banking industry; provided that it shall be Holding's or the
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          Bank's burden to prove the alleged acts and omissions and the
          prevailing nature of the standards the Bank shall have alleged are
          violated by such acts and/or omissions.

(ii)      The parties acknowledge and agree that damages which will result to
          Employee for termination by Holdings and/or the Bank without cause
          shall be extremely difficult or impossible to establish or prove, and
          agree that, unless the termination is voluntary or for cause, Holdings
          and/or the Bank shall be obligated, concurrently with such
          termination, to make a lump sum cash payment to the Employee as
          liquidated damages of an amount equal to the sum of(x) 1 times the
          Employee's then current annual salary under Section 2 of this
          Agreement, plus (y) 1 times the highest bonus awarded to the Employee
          under Section 3 of this Agreement at any time during the 36-month
          period ending with the date of termination. Employee agrees that,
          except for such other payments and benefits to which the Employee may
          be entitled as expressly provided by the terms of this Agreement, such
          liquidated damages shall be in lieu of all other claims which Employee
          may make by reason of such termination.

(iii)     In addition to the liquidated damages above described that are payable
          to the Employee for termination without cause, the following shall
          apply (the applicable period being referred to herein as the "Benefits
          continuation Period") (x) for 12 months following any termination
          without cause and (y) for 36 months following the period referred to
          in Section 9(a) (iii) hereof:

          (1)  the Employee shall continue to participate in, and accrue
               benefits under, all retirement, pension, profit-sharing, employee
               stock ownership, thrift, and other

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               deferred compensation plans of the Bank as if the termination of
               Employment of the Employee had not occurred (with the Employee
               being deemed to receive annually for the purposes of such plans
               the Employee's then current salary (at the time of Employee's
               termination) under Section 2 of this Agreement), except to the
               extent that such continued participation and accrual is expressly
               prohibited by law, or if such plan constitutes a "qualified plan"
               (a "Qualified Plan") under Section 401 of the Internal Revenue
               Code of 1986, as amended (the "Code"), to the extent such
               continued participation and accrual is expressly prohibited by
               the terms of the Qualified Plan;

          (2)  the Employee shall be entitled to continue to receive all other
               employee benefits and then existing fringe benefits referred to
               in Section 4 hereof as if the termination of employment had not
               occurred, provided however, that life, health, and disability
               coverage will terminate upon the Employee becoming eligible for
               comparable benefits in connection with the Employee's full-time
               employment by another employer and further provided, that if the
               Employee dies during the Benefits Continuation Period and prior
               to becoming eligible for comparable benefits in connection with
               the Employee's full-time employment by another employer, the
               health coverage provided to Employee's spouse and dependents
               shall be continued, at the Bank's expense, throughout the period
               ending with the last day of the calendar month in which occurs
               the second anniversary of the Employee's death;

          (3)  the Bank shall, on the date of the Employee's termination of
               employment, establish an irrevocable trust that meets the
               guidelines set forth in Rev. Proc. 92-64 published by the
               Internal Revenue Service (as the same may be modified or
               supplemented from time to time) (the "Trust"), the assets of
               which will be held, subject to the claims of judgment creditors
               of the Bank, solely to fund the benefits that the Employee is

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               entitled to under this Section 8(a) (iii), and the Bank shall
               transfer to the Trust an amount sufficient (x) to fund any
               benefit accrued by the Employee under any defined benefit pension
               plan maintained by the Bank to the extent that such defined
               benefit pension plan is not fully funded on a termination basis,
               as determined under the rules and regulations published by the
               Pension Benefit Guaranty Corporation, at the time of termination
               of the Employee's employment; and (y) to fund fully all benefits
               accrued by the Employee under any defined contribution plan
               maintained by the Bank to the extent that such benefits are not
               fully funded at the time of termination of the Employee's
               employment;


          (4)  all insurance or other provisions for indemnification, defense or
               hold-harmless of officers or directors of the Bank which are in
               effect on the date the notice of termination is sent to the
               Employee shall continue for the benefit of the Employee with
               respect to all of Employee's acts and omissions while an officer
               or director as fully and completely as if such termination had
               not occurred, and until the final expiration or running of all
               periods of limitation against action which may be applicable to
               such acts or omissions;

          (5)  the Bank shall, at its sole expense as incurred, provide the
               Employee with outplacement services, the scope and provider of
               which shall be selected by the Bank in Bank's sole, reasonable
               discretion; and

          (6)  the Employee may, at the expense of the Bank, hire an accounting
               firm, law firm and/or financial planning firm, selected by the
               Employee, to provide the Employee with advice with respect to the
               Employee's benefits under this Agreement.

(b)  If the Employee is suspended and/or temporarily prohibited from
     participating in the conduct of the Bank's affairs by a notice served

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     under section 8 (e) or 8 (g) of the Federal Deposit Insurance Act, or any
     successor statutes thereto, Holdings' or 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,
     Holdings or the Bank may in its discretion (i) pay the Employee all or part
     of the compensation withheld while such contractual obligations were
     suspended, and (ii) reinstate in whole or in part any of the obligations
     which were suspended.

(c)  If the Employee is removed and/or permanently prohibited from participating
     in the conduct of Holdings' or the Bank's affairs by an order issued under
     section 8 (e) or 8(g) of the Federal Deposit Insurance Act or any successor
     statutes thereto, all obligations of Holdings or the Bank under this
     Agreement shall terminate as of the effective date of the order, but vested
     rights of the parties shall not be affected.

(d)  Notwithstanding any other provision in this Agreement, Holdings or the Bank
     may terminate or suspend this Agreement and the employment of the Employee
     hereunder, as if such termination were for cause under Section 8(a) (i), to
     the extent required by the laws of the State of Connecticut related to
     banking, by applicable federal law relating to deposit insurance or by
     regulations or orders issued by the Banking Commission of the State of
     Connecticut or the Federal Deposit Insurance Corporation, or any successor
     to any of the foregoing, provided that it shall be the burden of Holdings
                              --------
     or the Bank to prove that any such action was so required.

(e)  In the event the employment of the Employee is terminated by the Bank
     without cause under Section 8(a) hereof or the Employee's employment is
     terminated voluntarily or involuntarily in accordance with Section 9
     hereof, and the Bank fails to make timely payment of the amounts then owed
     to the Employee under this Agreement, the Employee shall be entitled to
     reimbursement for all reasonable costs, including attorneys' fees, incurred
     by the Employee in taking action to collect such amounts or otherwise to
     enforce this Agreement, plus interest on such amounts at the rate of one
     percent above the prime rate (defined as the base rate on corporate loans
     at large U.S. money center commercial banks as published by The Wall Street
                                                                 ---------------
     Journal), compounded monthly, for the period from the date of employment
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     termination until payment is made to the Employee. Such reimbursement and
     interest shall be in addition to all rights to which the Employee is
     otherwise entitled under this Agreement.

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(f)  During the one-year period following termination of employment for any
     reason, the Employee may not (i) solicit the employment of any person who
     was, at the time of such termination or during the one-year period
     preceding the Employee's termination, an employee of the bank, or (ii)
     disclose or use in any manner confidential information of the Bank.

9. Change in Control.

     (a) If, either (x) during the term of this Agreement, there is a change in
         control of Holdings or the Bank, or (y) Holdings or Bank seeks to
         terminate this Agreement following knowledge of a potential change in
         control, but prior to the potential change in control being terminated
         or consummated, as the case may be, the Employee shall be entitled to
         the following:

             (i)   An adjustment in the Employee's then current salary to give
                   the Employee cumulative cost of living increases (based on
                   increases in the Consumer Price Index -"CPI" - for such
                   period) for the period from the date of execution of this
                   Agreement through the date of the change in control ("CPI
                   Adjusted Salary"), and annual increases based on the CPI on
                   each anniversary of the change in control.

             (ii)  The crediting to the Employee for years of service with
                   Holdings or the Bank, plus 5 additional years, for purposes
                   of vesting and calculation of rights and/or benefits under
                   any 401(k) plan, stock option, stock purchase, pension,
                   thrift, profit sharing, group life insurance, supplemental
                   life insurance, medical coverage, disability, education or
                   other retirement or employee benefit plan of Holdings or the
                   Bank or of any successor entity.

             (iii) 18 months notice of termination of employment (the "18 month
                   period") during which period the Employee shall be entitled
                   to receive, without offset for any reason, (i) payment of the
                   Employee's CPI Adjusted Salary plus (ii) the highest bonus
                   received by the Employee during the period commencing with
                   the 36'h month preceding the change in control and ending
                   with the date of termination. In the event Employee has not
                   completed 36 months of service at such time the dollar amount
                   of the bonus attributable to this subsection shall be
                   conclusively presumed to be no less than $50,000. The
                   Employee shall be entitled at his option to terminate his
                   employment with the Bank prior to the expiration of the 18
                   month period. If the Employee does terminate his employment
                   prior to the expiration of the 18 month period, he shall not
                   be entitled to salary for the portion of the 18

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               month period he is not employed by the Bank, nor shall he be
               entitled to that portion of the bonus which corresponds to the
               period that the Employee is not employed by the Bank. The portion
               of the bonus to which the Employee is not entitled as a result of
               his termination of his employment shall be determined by
               multiplying the bonus by a fraction, the numerator of which shall
               be the number of days of the 18 month period during which the
               Employee was not employed by the Bank and the denominator of
               which shall be 548. Notwithstanding the foregoing, the Employee
               shall under all circumstances, to include termination of
               employment at his request prior to the expiration of the 18 month
               period, be entitled to the amounts described in Section 9(a)(iv)
               below. Should the Employee elect to terminate his employment
               prior to the expiration of the 18 month period, all benefits,
               rights, and entitlements of the Employee which would commence at
               the conclusion of the 18 month period shall commence at the date
               of termination of employment. The 18 month period or such shorter
               period as may occur as a result of voluntary termination in
               accordance with the preceding provisions of this subsection shall
               be referred to elsewhere in this Agreement as "the period
               referred to in Section 9(a)(iii)".

          (iv) Following the period referred to in (iii) above, at the
               Employee's election given in writing to the Bank at least 30 days
               prior to the end of such period referred to in Section 9(a)(iii),
               either a lump sum cash payment or 36 monthly periodic payments,
               upon termination, or commencing upon termination, as the case may
               be, in an amount equal to the sum of (x) 3 times the Employee's
               CPI Adjusted Salary, plus (y) 3 times the highest bonus received
               by the Employee during the period commencing with the 36/th/
               month preceding the change in control and ending with the date of
               termination.

     (b)  A "change be in control", for purposes of this Agreement, shall deemed
          to have taken place if any of the following events (the Events) occur:
          (i) any person or group of persons with a unity of

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               interest or other affiliation sufficient for them to act in
               concert becomes the beneficial owner of 25 percent or more of the
               total number of voting shares of the Bank; (ii) any person (other
               than the persons named as proxies solicited on behalf of the
               Board) holds revocable or irrevocable proxies, as to the election
               or removal of directors of the Bank, for 25 percent or more of
               the total number of voting shares of the Bank; (iii) any person
               has entered into an agreement or received an option for the
               acquisition of, beneficial ownership of 25 percent or more of the
               total number of voting shares of the Bank, whether or not the
               requisite approval for such acquisition has been received under
               applicable laws or the respective regulations issued thereunder;
               or (iv) as the result of, or in connection with, any cash tender
               or exchange offer, merger, or other business combination, sale of
               assets or contested election, or any combination of the foregoing
               transactions, the persons who were directors of the Bank before
               such transaction shall cease to constitute at least two-thirds of
               the Board of Directors of the Bank or any successor corporation.
               For purposes of this Section 9(b), a "person" includes an
               individual, corporation, partnership, trust, association, joint
               venture, pool, syndicate, unincorporated organization, joint-
               stock company, or similar organization or group acting in
               concert. For purposes of this Section 9, a person shall be deemed
               to be a beneficial owner as that term is used in Rule 13d-3 under
               the Securities Exchange Act of 1934. Notwithstanding the
               foregoing, a "change in control" shall not include the
               acquisition of the Bank's voting stock by a holding company
               organized by the Bank pursuant to Conn. Gen. Stat. Sec. 36a-181
               (Holding Company), unless one or more of the Events described in
               the preceding paragraph occurs prior to the organization of a
               Holding Company or as part of a plan which involves the
               organization of a Holding Company. Furthermore, should the Bank
               organize a Holding Company, and should one of the Events
               described in the preceding paragraph occur with respect to the
               Holding Company (instead of the Bank), then a change in control
               shall be deemed to have taken place.

          (c)  A "potential change in control", for the purposes of this
               Agreement, shall be deemed to have taken place, if (i) any person
               commences a tender which, if consummated, would result in such
               person being the beneficial owner of at least 25% of the Bank's
               voting shares; (ii) the Bank enters into an agreement the
               consummation of which will constitute a change in control; (iii)

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               proxies are solicited by anyone other than the Board, or (iv) any
               other event occurs which is deemed by the Board to be a potential
               change in control. Notwithstanding the foregoing, a "potential
               change in control" shall not include events which are part of the
               acquisition of the Bank's voting stock by a Holding Company
               organized by the Bank pursuant to Conn. Gen. Stat. Section
               36a-181, unless the Board deems these events to be a potential
               change in control.

          (d)  A potential change in control, for purposes of this Agreement,
               shall be deemed to have terminated, if the Board determines in
               good faith that a change in control is not likely to occur from
               such potential change in control.

          (e)  In the event that any payment or benefit received by the Employee
               under this Section 9 shall constitute an "excess parachute
               payment" within the meaning of Section 280G(b) of the Internal
               Revenue Code of 1986, as amended (the "Code"), the Bank shall pay
               the Employee such amount or amounts (collectively, the
               "indemnification amount") as are equal to the amount of any
               income, excise or other tax or taxes assessed against the
               Employee as a result of the Employee's receipt of the "excess
               parachute payment", whether assessed under Section 4999 of the
               Code or under any other federal or state tax laws.

10.  No Assignment. This Agreement is personal to each of the parties hereto. No
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     party may assign or delegate any rights or obligations hereunder without
     first obtaining the written consent of the other party hereto. However, in
     the event of the death of the Employee all rights to receive payments
     hereunder shall become rights of the Employee's estate.

11.  Other Contracts. The Employee shall not, except as provided in Section
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     9(a)(iii), during the term of this Agreement, have any other paid
     employment other than with an affiliate of Bank, except with the prior
     approval of the Board.

12.  Amendments or Additions: Action by Board. No amendments or additions to
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     this Agreement shall be binding unless in writing and signed by all parties
     hereto. The prior approval by a two-thirds affirmative vote of the full
     Board shall be required in order for the Board to authorize any amendments
     or additions to this Agreement, to give any consents or waivers of
     provisions of this Agreement, or to take any other action under

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     this Agreement, including any termination of employment with or without
     cause under Section 8(a) hereof.

13.  Section Headings. The section headings used in this Agreement are included
     ----------------
     solely for convenience and shall not affect, or be used in connection with,
     the interpretation of this Agreement.

14.  Severability. The provisions of this Agreement shall be deemed severable
     ------------
     and the invalidity or unenforceability of any provision shall not affect
     the validity or enforceability of the other provisions hereof.

15.  Governing Law. This Agreement shall be governed by the laws of the State of
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     Connecticut to the extent applicable, and otherwise by the laws of the
     United States.


                                        CORNERSTONE BANK



                                        By /s/ Norman H. Reader, President
                                          ---------------------------------
                                        Name and Title:



                                        /s/ Paul H. Reader
                                        -----------------------------------
                                        PAUL H. READER

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