Document:

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                                                                    EXHIBIT 10.3

                                     FORM OF
                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT (the "Agreement"), made this _____ day of _________,
2004, by and between NAUGATUCK VALLEY FINANCIAL CORPORATION, a federally
chartered corporation (the "Company"), NAUGATUCK VALLEY SAVINGS AND LOAN, a
federally chartered savings bank (the "Bank"), and __________________ (the
"Executive").

         WHEREAS, Executive serves in a position of substantial responsibility;

         WHEREAS, the Company and the Bank wish to assure the services of
Executive for the period provided in this Agreement; and

         WHEREAS, Executive is willing to serve in the employ of the Bank on a
full-time basis for said period.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, and upon the other terms and conditions hereinafter provided, the
parties hereby agree as follows:

         1.       EMPLOYMENT. Executive is employed as the______________________
of the Company and the Bank. Executive shall perform all duties and shall have
all powers which are commonly incident to the offices of _______________________
or which, consistent with those offices, are delegated to him by
________________________. During the term of this Agreement, Executive also
agrees to serve, if elected, as an officer and/or director of any subsidiary of
the Company and the Bank and in such capacity will carry out such duties and
responsibilities reasonably appropriate to that office.

         2.       LOCATION AND FACILITIES. Executive will be furnished with the
working facilities and staff customary for executive officers with the title and
duties set forth in Section 1 and as are necessary for him to perform his
duties. The location of such facilities and staff shall be at the principal
administrative offices of the Company and the Bank, or at such other site or
sites customary for such offices.

         3.       TERM.

         a.       The term of this Agreement shall be (i) the initial term,
                  consisting of the period commencing on the date of this
                  Agreement (the "Effective Date") and ending on the _______
                  anniversary of the Effective Date, plus (ii) any and all
                  extensions of the initial term made pursuant to this Section
                  3.

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         b.       Commencing on the first year anniversary date of this
                  Agreement, and continuing on each anniversary thereafter, the
                  disinterested members of the boards of directors of the Bank
                  and the Company may extend the Agreement an additional year
                  such that the remaining term of the Agreement shall be
                  ________ (____) months, unless Executive elects not to extend
                  the term of this Agreement by giving written notice in
                  accordance with Section 19 of this Agreement. The Board of
                  Directors of the Bank (the "Board") will review the Agreement
                  and Executive's performance annually for purposes of
                  determining whether to extend the Agreement and the rationale
                  and results thereof shall be included in the minutes of the
                  Board's meeting. The Board of Directors of the Bank shall give
                  notice to Executive as soon as possible after such review as
                  to whether the Agreement is to be extended.

         4.       BASE COMPENSATION.

         a.       The Company and the Bank agree to pay Executive during the
                  term of this Agreement a base salary at the rate of
                  $__________ per year, payable in accordance with customary
                  payroll practices.

         b.       The Board shall review annually the rate of Executive's base
                  salary based upon factors they deem relevant, and may maintain
                  or increase his salary, provided that no such action shall
                  reduce the rate of salary below the rate in effect on the
                  Effective Date.

         c.       In the absence of action by the Board, Executive shall
                  continue to receive salary at the annual rate specified on the
                  Effective Date or, if another rate has been established under
                  the provisions of this Section 4, the rate last properly
                  established by action of the Board under the provisions of
                  this Section 4.

         5.       BONUSES. Executive shall be entitled to participate in
discretionary bonuses or other incentive compensation programs that the Company
and the Bank may award from time to time to senior management employees pursuant
to bonus plans or otherwise.

         6.       BENEFIT PLANS. Executive shall be entitled to participate in
such life insurance, medical, dental, pension, profit sharing, retirement and
stock-based compensation plans and other programs and arrangements as may be
approved from time to time by the Company and the Bank for the benefit of their
employees.

         7.       VACATION AND LEAVE.

         a.       Executive shall be entitled to vacations and other leave in
                  accordance with policy for senior executives, or otherwise as
                  approved by the Board.

         b.       In addition to paid vacations and other leave, Executive shall
                  be entitled, without loss of pay, to absent himself
                  voluntarily from the performance of his employment for

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                  such additional periods of time and for such valid and
                  legitimate reasons as the Board may, in its discretion,
                  determine. Further, the Board may grant to Executive a leave
                  or leaves of absence, with or without pay, at such time or
                  times and upon such terms and conditions as the Board in its
                  discretion may determine.

         8.       EXPENSE PAYMENTS AND REIMBURSEMENTS. Executive shall be
reimbursed for all reasonable out-of-pocket business expenses that he shall
incur in connection with his services under this Agreement upon substantiation
of such expenses in accordance with applicable policies of the Company and the
Bank.

         9.       AUTOMOBILE ALLOWANCE. During the term of this Agreement,
Executive shall be entitled to an automobile allowance on terms no less
favorable that those in effect immediately prior to the execution of this
Agreement. Executive shall comply with reasonable reporting and expense
limitations on the use of such automobile as may be established by the Company
or the Bank from time to time, and the Company or the Bank shall annually
include on Executive's Form W-2 any amount of income attributable to Executive's
personal use of such automobile.

         10.      LOYALTY AND CONFIDENTIALITY.

         a.       During the term of this Agreement Executive: (i) shall devote
                  all his time, attention, skill, and efforts to the faithful
                  performance of his duties hereunder; provided, however, that
                  from time to time, Executive may serve on the boards of
                  directors of, and hold any other offices or positions in,
                  companies or organizations which will not present any conflict
                  of interest with the Company and the Bank or any of their
                  subsidiaries or affiliates, unfavorably affect the performance
                  of Executive's duties pursuant to this Agreement, or violate
                  any applicable statute or regulation and (ii) shall not engage
                  in any business or activity contrary to the business affairs
                  or interests of the Company and the Bank.

         b.       Nothing contained in this Agreement shall prevent or limit
                  Executive's right to invest in the capital stock or other
                  securities of any business dissimilar from that of the Company
                  and the Bank, or, solely as a passive, minority investor, in
                  any business.

         c.       Executive agrees to maintain the confidentiality of any and
                  all information concerning the operation or financial status
                  of the Company and the Bank; the names or addresses of any of
                  its borrowers, depositors and other customers; any information
                  concerning or obtained from such customers; and any other
                  information concerning the Company and the Bank to which he
                  may be exposed during the course of his employment. Executive
                  further agrees that, unless required by law or specifically
                  permitted by the Board in writing, he will not disclose to any
                  person or entity, either during or subsequent to his
                  employment, any of the above-mentioned information which is
                  not generally known to the public, nor shall he employ such
                  information in any way other than for the benefit of the
                  Company and the Bank.

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         11.      TERMINATION AND TERMINATION PAY. Subject to Section 12 of this
Agreement, Executive's employment under this Agreement may be terminated in the
following circumstances:

         a.       Death. Executive's employment under this Agreement shall
                  terminate upon his death during the term of this Agreement, in
                  which event Executive's estate shall be entitled to receive
                  the compensation due to Executive through the last day of the
                  calendar month in which his death occurred.

         b.       Retirement. This Agreement shall be terminated upon
                  Executive's retirement under the retirement benefit plan or
                  plans in which he participates pursuant to Section 6 of this
                  Agreement or otherwise.

         c.       Disability.

                  i.       The Board or Executive may terminate Executive's
                           employment after having determined Executive has a
                           Disability. For purposes of this Agreement,
                           "Disability" means a physical or mental infirmity
                           that impairs Executive's ability to substantially
                           perform his duties under this Agreement and that
                           results in Executive becoming eligible for long-term
                           disability benefits under any long-term disability
                           plans of the Company and the Bank (or, if there are
                           no such plans in effect, that impairs Executive's
                           ability to substantially perform his duties under
                           this Agreement for a period of one hundred eighty
                           (180) consecutive days). The Board shall determine
                           whether or not Executive is and continues to be
                           permanently disabled for purposes of this Agreement
                           in good faith, based upon competent medical advice
                           and other factors that they reasonably believe to be
                           relevant. As a condition to any benefits, the Board
                           may require Executive to submit to such physical or
                           mental evaluations and tests as it deems reasonably
                           appropriate.

                  ii.      In the event of such Disability, Executive's
                           obligation to perform services under this Agreement
                           will terminate. The Bank will pay Executive, as
                           Disability pay, an amount equal to one hundred
                           percent (100%) of Executive's bi-weekly rate of base
                           salary in effect as of the date of his termination of
                           employment due to Disability. Disability payments
                           will be made on a monthly basis and will commence on
                           the first day of the month following the effective
                           date of Executive's termination of employment for
                           Disability and end on the earlier of: (A) the date he
                           returns to full-time employment at the Bank in the
                           same capacity as he was employed prior to his
                           termination for Disability; (B) his death; or (C)
                           upon his attainment of age 65. Such payments shall be
                           reduced by the amount of any short- or long-term
                           disability benefits payable to Executive under any
                           other disability programs sponsored by the Company
                           and the Bank. In addition, during any period of
                           Executive's Disability, Executive and his dependents
                           shall, to the greatest extent possible, continue to
                           be covered under all benefit plans (including,
                           without limitation, retirement plans and medical,
                           dental and life insurance

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                           plans) of the Company and the Bank, in which
                           Executive participated prior to his Disability on the
                           same terms as if Executive were actively employed by
                           the Company and the Bank.

         d.       Termination for Cause.

                  i.       The Board may, by written notice to Executive in the
                           form and manner specified in this paragraph,
                           immediately terminate his employment at any time, for
                           "Cause." Executive shall have no right to receive
                           compensation or other benefits for any period after
                           termination for Cause except for vested benefits.
                           Termination for Cause shall mean termination because
                           of, in the good faith determination of the Board,
                           Executive's:

                           (1)      Personal dishonesty;

                           (2)      Incompetence;

                           (3)      Willful misconduct;

                           (4)      Breach of fiduciary duty involving personal
                                    profit;

                           (5)      Intentional failure to perform stated duties
                                    under this Agreement;

                           (6)      Willful violation of any law, rule or
                                    regulation (other than traffic violations or
                                    similar offenses) that reflects adversely on
                                    the reputation of the Company and the Bank,
                                    any felony conviction, any violation of law
                                    involving moral turpitude, or any violation
                                    of a final cease-and-desist order; or

                           (7)      Material breach by Executive of any
                                    provision of this Agreement.

                  ii.      Notwithstanding the foregoing, Executive shall not be
                           deemed to have been terminated for Cause by the
                           Company and the Bank unless there shall have been
                           delivered to Executive a copy of a resolution duly
                           adopted by the affirmative vote of a majority of the
                           entire membership of the Board at a meeting of such
                           Board called and held for the purpose (after
                           reasonable notice to Executive and an opportunity for
                           Executive to be heard before the Board with counsel),
                           of finding that, in the good faith opinion of the
                           Board, Executive was guilty of the conduct described
                           above and specifying the particulars thereof.

         e.       Voluntary Termination by Executive. In addition to his other
                  rights to terminate under this Agreement, Executive may
                  voluntarily terminate employment during the term of this
                  Agreement upon at least sixty (60) days prior written notice
                  to the Board,

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                  in which case Executive shall receive only his compensation,
                  vested rights and employee benefits up to the date of his
                  termination.

         f.       Without Cause or With Good Reason.

                  i.       In addition to termination pursuant to Sections 11a.
                           through 11e., the Board may, by written notice to
                           Executive, immediately terminate his employment at
                           any time for a reason other than Cause (a termination
                           "Without Cause") and Executive may, by written notice
                           to the Board, immediately terminate this Agreement at
                           any time within ninety (90) days following an event
                           constituting "Good Reason," as defined below (a
                           termination "With Good Reason").

                  ii.      Subject to Section 12 of this Agreement, in the event
                           of termination under this Section 11(f), Executive
                           shall be entitled to receive his base salary for the
                           remaining term of the Agreement paid in one lump sum
                           within ten (10) calendar days of such termination.
                           Also, in such event, Executive shall, for the
                           remaining term of the Agreement, receive the benefits
                           he would have received during the remaining term of
                           the Agreement under any retirement programs (whether
                           tax-qualified or non-qualified) in which Executive
                           participated prior to his termination (with the
                           amount of the benefits determined by reference to the
                           benefits received by Executive or accrued on his
                           behalf under such programs during the twelve (12)
                           months preceding his termination) and continue to
                           participate in any benefit plans of the Company and
                           the Bank that provide health (including medical and
                           dental), life or disability insurance, or similar
                           coverage, upon terms no less favorable than the most
                           favorable terms provided to senior executives of the
                           Company and the Bank during such period. In the event
                           that the Company and the Bank are unable to provide
                           such coverage by reason of Executive no longer being
                           an employee, the Company and the Bank shall provide
                           Executive with comparable coverage on an individual
                           policy basis.

                  iii.     "Good Reason" shall exist if, without Executive's
                           express written consent, the Company and the Bank
                           materially breach any of their respective obligations
                           under this Agreement. Without limitation, such a
                           material breach shall be deemed to occur upon any of
                           the following:

                           (1)      A material reduction in Executive's
                                    responsibilities or authority in connection
                                    with his employment with the Company or the
                                    Bank;

                           (2)      Assignment to Executive of duties of a
                                    non-executive nature or duties for which he
                                    is not reasonably equipped by his skills and
                                    experience;

                           (3)      Failure of Executive to be nominated or
                                    renominated to the Board;

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                           (4)      A reduction in salary or benefits contrary
                                    to the terms of this Agreement, or,
                                    following a Change in Control as defined in
                                    Section 12 of this Agreement, any reduction
                                    in salary or material reduction in benefits
                                    below the amounts to which Executive was
                                    entitled prior to the Change in Control;

                           (5)      Termination of incentive and benefit plans,
                                    programs or arrangements, or reduction of
                                    Executive's participation to such an extent
                                    as to materially reduce their aggregate
                                    value below their aggregate value as of the
                                    Effective Date;

                           (6)      A requirement that Executive relocate his
                                    principal business office or his principal
                                    place of residence outside of the area
                                    consisting of a twenty-five (25) mile radius
                                    from the current main office and any branch
                                    of the Bank, or the assignment to Executive
                                    of duties that would reasonably require such
                                    a relocation; or

                           (7)      Liquidation or dissolution of the Company or
                                    the Bank.

                  iv.      Notwithstanding the foregoing, a reduction or
                           elimination of Executive's benefits under one or more
                           benefit plans maintained by the Company and the Bank
                           as part of a good faith, overall reduction or
                           elimination of such plans or plans or benefits
                           thereunder applicable to all participants in a manner
                           that does not discriminate against Executive (except
                           as such discrimination may be necessary to comply
                           with law) shall not constitute an event of Good
                           Reason or a material breach of this Agreement,
                           provided that benefits of the type or to the general
                           extent as those offered under such plans prior to
                           such reduction or elimination are not available to
                           other officers of the Company and the Bank or any
                           company that controls either of them under a plan or
                           plans in or under which Executive is not entitled to
                           participate.

         g.       Continuing Covenant Not to Compete or Interfere with
Relationships. Regardless of anything herein to the contrary, following a
termination by the Company and the Bank or Executive pursuant to Section 11f.:

                  i.       Executive's obligations under Section 10c. of this
                           Agreement will continue in effect; and

                  ii.      During the period ending on the first anniversary of
                           such termination, Executive shall not serve as an
                           officer, director or employee of any bank holding
                           company, bank, savings Bank, savings and loan holding
                           company, or mortgage company (any of which, a
                           "Financial Institution") which Financial Institution
                           offers products or services competing with those
                           offered by the Bank from any office within fifty (50)
                           miles from the main office or any

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                           branch of the Bank and shall not interfere with the
                           relationship of the Company and the Bank and any of
                           its employees, agents, or representatives.

         12.      TERMINATION IN CONNECTION WITH A CHANGE IN CONTROL.

         a.       For purposes of this Agreement, a "Change in Control" means
                  any of the following events:

                  i.       Merger: The Company merges into or consolidates with
                           another corporation, or merges another corporation
                           into the Company, and as a result less than a
                           majority of the combined voting power of the
                           resulting corporation immediately after the merger or
                           consolidation is held by persons who were
                           stockholders of the Company immediately before the
                           merger or consolidation.

                  ii.      Acquisition of Significant Share Ownership: The
                           Company files, or is required to file, a report on
                           Schedule 13D or another form or schedule (other than
                           Schedule 13G) required under Sections 13(d) or 14(d)
                           of the Securities Exchange Act of 1934, if the
                           schedule discloses that the filing person or persons
                           acting in concert has or have become the beneficial
                           owner of 25% or more of a class of the Company's
                           voting securities, but this clause (b) shall not
                           apply to beneficial ownership of Company voting
                           shares held in a fiduciary capacity by an entity of
                           which the Company directly or indirectly beneficially
                           owns 50% or more of its outstanding voting
                           securities.

                  iii.     Change in Board Composition: During any period of two
                           consecutive years, individuals who constitute the
                           Company's Board of Directors at the beginning of the
                           two-year period cease for any reason to constitute at
                           least a majority of the Company's Board of Directors;
                           provided, however, that for purposes of this clause
                           (iii), each director who is first elected by the
                           board (or first nominated by the board for election
                           by the stockholders) by a vote of at least two-thirds
                           (2/3) of the directors who were directors at the
                           beginning of the two-year period shall be deemed to
                           have also been a director at the beginning of such
                           period; or

                  iv.      Sale of Assets: The Company sells to a third party
                           all or substantially all of its assets.

                  Notwithstanding anything in this Agreement to the contrary, in
                  no event shall the conversion of the Bank from mutual to stock
                  form (including without limitation, through the formation of a
                  stock holding company) or the reorganization of the Bank into
                  the mutual holding company form of organization constitute a
                  "Change in Control" for purposes of this Agreement.

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         b.       Termination. If within the period ending _____years after a
                  Change in Control, (i) the Company and the Bank shall
                  terminate Executive's employment Without Cause, or (ii)
                  Executive voluntarily terminates his employment With Good
                  Reason, the Company and the Bank shall, within ten calendar
                  days of the termination of Executive's employment, make a
                  lump-sum cash payment to him equal to ___________ times
                  Executive's average Annual Compensation over the five (5) most
                  recently completed calendar years ending with the year
                  immediately preceding the effective date of the Change in
                  Control. In determining Executive's average Annual
                  Compensation, Annual Compensation shall include base salary
                  and any other taxable income, including, but not limited to,
                  amounts related to the granting, vesting or exercise of
                  restricted stock or stock option awards, commissions, bonuses
                  (whether paid or accrued for the applicable period), as well
                  as, retirement benefits, director or committee fees and fringe
                  benefits paid or to be paid to Executive or paid for
                  Executive's benefit during any such year, profit sharing,
                  employee stock ownership plan and other retirement
                  contributions or benefits, including to any tax-qualified plan
                  or arrangement (whether or not taxable) made or accrued on
                  behalf of Executive of such year. The cash payment made under
                  this Section 12b. shall be made in lieu of any payment also
                  required under Section 11f. of this Agreement because of a
                  termination in such period. Executive's rights under Section
                  11f. are not otherwise affected by this Section 12. Also, in
                  such event, Executive shall, for a ______ (____) month period
                  following his termination of employment, receive the benefits
                  he would have received over such period under any retirement
                  programs (whether tax-qualified or nonqualified) in which
                  Executive participated prior to his termination (with the
                  amount of the benefits determined by reference to the benefits
                  received by Executive or accrued on his behalf under such
                  programs during the twelve (12) months preceding the Change in
                  Control) and continue to participate in any benefit plans of
                  the Company and the Bank that provide health (including
                  medical and dental), life or disability insurance, or similar
                  coverage upon terms no less favorable than the most favorable
                  terms provided to senior executives during such period. In the
                  event that the Company and the Bank are unable to provide such
                  coverage by reason of Executive no longer being an employee,
                  the Company and the Bank shall provide Executive with
                  comparable coverage on an individual policy.

         c.       The provisions of Section 12 and Sections 14 through 25,
                  including the defined terms used in such sections, shall
                  continue in effect until the later of the expiration of this
                  Agreement or two years following a Change in Control.

         13.      INDEMNIFICATION AND LIABILITY INSURANCE.

         a.       Indemnification. The Company and the Bank agree to indemnify
                  Executive (and his heirs, executors, and administrators), and
                  to advance expenses related thereto, to the fullest extent
                  permitted under applicable law and regulations against any and
                  all expenses and liabilities reasonably incurred by him in
                  connection with or arising out of any action, suit, or
                  proceeding in which he may be involved by reason of his having
                  been a director or Executive of the Company, the Bank or any
                  of their

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                  subsidiaries (whether or not he continues to be a director or
                  Executive at the time of incurring any such expenses or
                  liabilities) such expenses and liabilities to include, but not
                  be limited to, judgments, court cost, and attorney's fees and
                  the costs of reasonable settlements, such settlements to be
                  approved by the Board, if such action is brought against
                  Executive in his capacity as an Executive or director of the
                  Company and the Bank or any of their subsidiaries.
                  Indemnification for expenses shall not extend to matters for
                  which Executive has been terminated for Cause. Nothing
                  contained herein shall be deemed to provide indemnification
                  prohibited by applicable law or regulation. Notwithstanding
                  anything herein to the contrary, the obligations of this
                  Section 13 shall survive the term of this Agreement by a
                  period of six (6) years.

         b.       Insurance. During the period in which indemnification of
                  Executive is required under this Section, the Company and the
                  Bank shall provide Executive (and his heirs, executors, and
                  administrators) with coverage under a directors' and officers'
                  liability policy at the expense of the Company and the Bank,
                  at least equivalent to such coverage provided to directors and
                  senior executives of the Company and the Bank.

14.      REIMBURSEMENT OF EXECUTIVE'S EXPENSES TO ENFORCE THIS AGREEMENT. The
Company and the Bank shall reimburse Executive for all out-of-pocket expenses,
including, without limitation, reasonable attorney's fees, incurred by Executive
in connection with successful enforcement by Executive of the obligations of the
Company and the Bank to Executive under this Agreement. Successful enforcement
shall mean the grant of an award of money or the requirement that the Company
and the Bank take some action specified by this Agreement: (i) as a result of
court order; or (ii) otherwise by the Company and the Bank following an initial
failure of the Company and the Bank to pay such money or take such action
promptly after written demand therefor from Executive stating the reason that
such money or action was due under this Agreement at or prior to the time of
such demand.

15.      LIMITATION OF BENEFITS UNDER CERTAIN CIRCUMSTANCES. If the payments and
benefits pursuant to Section 12 of this Agreement, either alone or together with
other payments and benefits which Executive has the right to receive from the
Company and the Bank, would constitute a a "parachute payment" under Section
280G of the Code, the payments and benefits pursuant to Section 12 shall be
reduced or revised, in the manner determined by Executive, by the amount, if
any, which is the minimum necessary to result in no portion of the payments and
benefits under Section 12 being non-deductible to the Company and the Bank
pursuant to Section 280G of the Code and subject to the excise tax imposed under
Section 4999 of the Code. The determination of any reduction in the payments and
benefits to be made pursuant to Section 12 shall be based upon the opinion of
the Company and the Bank's independent public accountants and paid for by the
Company and the Bank. In the event that the Company, the Bank and/or Executive
do not agree with the opinion of such counsel, (i) the Company and the Bank
shall pay to Executive the maximum amount of payments and benefits pursuant to
Section 12, as selected by Executive, which such opinion indicates there is a
high probability do not result in any of such payments and benefits being
non-deductible to the Company and the Bank and subject to the imposition of the
excise tax imposed under Section 4999 of the Code and (ii) the Company and the
Bank may request, and Executive shall have the right

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to demand that they request, a ruling from the IRS as to whether the disputed
payments and benefits pursuant to Section 12 have such consequences. Any such
request for a ruling from the IRS shall be promptly prepared and filed by the
Company and the Bank, but in no event later than thirty (30) days from the date
of the opinion of counsel referred to above, and shall be subject to Executive's
approval prior to filing, which shall not be unreasonably withheld. The Company,
the Bank and Executive agree to be bound by any ruling received from the IRS and
to make appropriate payments to each other to reflect any such rulings, together
with interest at the applicable federal rate provided for in Section 7872(f)(2)
of the Code. Nothing contained herein shall result in a reduction of any
payments or benefits to which Executive may be entitled upon termination of
employment other than pursuant to Section 12 hereof, or a reduction in the
payments and benefits specified in Section 12 below zero.

16.      INJUNCTIVE RELIEF. If there is a breach or threatened breach of Section
11g. of this Agreement or the prohibitions upon disclosure contained in Section
10c. of this Agreement, the parties agree that there is no adequate remedy at
law for such breach, and that the Company and the Bank shall be entitled to
injunctive relief restraining Executive from such breach or threatened breach,
but such relief shall not be the exclusive remedy hereunder for such breach. The
parties hereto likewise agree that Executive, without limitation, shall be
entitled to injunctive relief to enforce the obligations of the Company and the
Bank under this Agreement.

17.      SUCCESSORS AND ASSIGNS.

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

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

18.      NO MITIGATION. Executive shall not be required to mitigate the amount
of any payment provided for in this Agreement by seeking other employment or
otherwise and no such payment shall be offset or reduced by the amount of any
compensation or benefits provided to Executive in any subsequent employment.

19.      NOTICES. All notices, requests, demands and other communications in
connection with this Agreement shall be made in writing and shall be deemed to
have been given when delivered by hand or 48 hours after mailing at any general
or branch United States Post Office, by registered or certified mail, postage
prepaid, addressed to the Company and/or the Bank at their principal business
offices and to Executive at his home address as maintained in the records of the
Company and the Bank.

20.      NO PLAN CREATED BY THIS AGREEMENT. Executive, the Company and the Bank
expressly declare and agree that this Agreement was negotiated among them and
that no provision or

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provisions of this Agreement are intended to, or shall be deemed to, create any
plan for purposes of the Employee Retirement Income Security Act or any other
law or regulation, and each party expressly waives any right to assert the
contrary. Any assertion in any judicial or administrative filing, hearing, or
process that such a plan was so created by this Agreement shall be deemed a
material breach of this Agreement by the party making such an assertion.

21.      AMENDMENTS. No amendments or additions to this Agreement shall be
binding unless made in writing and signed by all of the parties, except as
herein otherwise specifically provided.

22.      APPLICABLE LAW. Except to the extent preempted by Federal law, the laws
of the State of Connecticut shall govern this Agreement in all respects, whether
as to its validity, construction, capacity, performance or otherwise.

23.      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.

24.      HEADINGS. Headings contained herein are for convenience of reference
only.

25.      ENTIRE AGREEMENT. This Agreement, together with any understanding or
modifications thereof as agreed to in writing by the parties, shall constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof, other than written agreements with respect to specific plans, programs
or arrangements described in Sections 5 and 6.

26.      REQUIRED PROVISIONS. In the event any of the foregoing provisions of
this Section 26 are in conflict with the terms of this Agreement, this Section
26 shall prevail.

         a.       The Bank may terminate Executive's employment at any time, but
                  any termination by the Bank, other than Termination for Cause,
                  shall not prejudice Executive's right to compensation or other
                  benefits under this Agreement. Executive shall not have the
                  right to receive compensation or other benefits for any period
                  after Termination for Cause as defined in Section 7
                  hereinabove.

         b.       If Executive is suspended from office and/or temporarily
                  prohibited from participating in the conduct of the Bank's
                  affairs by a notice served under Section 8(e)(3) or 8(g)(1) of
                  the Federal Deposit Insurance Act, 12 U.S.C. Section
                  1818(e)(3) or (g)(1); the Bank's obligations under this
                  contract 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
                  Executive all or part of the compensation withheld while their
                  contract obligations were suspended; and (ii) reinstate (in
                  whole or in part) any of the obligations which were suspended.

         c.       If Executive 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 8(g)(1) of the Federal Deposit
                  Insurance Act, 12 U.S.C. Section 1818(e)(4) or (g)(1), all

                                       12
<PAGE>

                  obligations of the Bank under this contract shall terminate as
                  of the effective date of the order, but vested rights of the
                  contracting parties shall not be affected.

         d.       If the Bank is in default as defined in Section 3(x)(1) of the
                  Federal Deposit Insurance Act, 12 U.S.C. Section 1813(x)(1)
                  all obligations of the Bank under this contract shall
                  terminate as of the date of default, but this paragraph shall
                  not affect any vested rights of the contracting parties.

         e.       All obligations of the Bank under this contract shall be
                  terminated, except to the extent determined that continuation
                  of the contract is necessary for the continued operation of
                  the institution: (i) by the Director of the OTS (or his
                  designee), the FDIC or the Resolution Trust Corporation, at
                  the time the FDIC enters into an agreement to provide
                  assistance to or on behalf of the Bank under the authority
                  contained in Section 13(c) of the Federal Deposit Insurance
                  Act, 12 U.S.C. Section 1823(c); or (ii) by the Director of the
                  OTS (or his designee) at the time the Director (or his
                  designee) approves a supervisory merger to resolve problems
                  related to the operations 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 that have already vested,
                  however, shall not be affected by such action.

         f.       Any payments made to Executive pursuant to this Agreement, or
                  otherwise, are subject to and conditioned upon compliance with
                  12 U.S.C. Section 1828(k) and 12 C.F.R. Section 545.121 and
                  any rules and regulations promulgated thereunder.

                                       13
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first set forth above.

ATTEST:                                   NAUGATUCK VALLEY FINANCIAL CORPORATION

________________________                  By:___________________________________
Corporate Secretary                          For the Entire Board of Directors

ATTEST:                                   NAUGATUCK VALLEY SAVINGS AND LOAN

________________________                  By:___________________________________
Corporate Secretary                          For the Entire Board of Directors

WITNESS:                                  EXECUTIVE

________________________                  By:___________________________________
Corporate Secretary

                                       14<PAGE>

                                                                    EXHIBIT 10.4

                                     FORM OF
                           CHANGE IN CONTROL AGREEMENT

      This AGREEMENT ("Agreement") is hereby entered into as of ______________,
2004, by and between NAUGATUCK VALLEY SAVINGS AND LOAN (the "Bank"), a federally
chartered savings bank, with its principal offices at 333 Church Street,
Naugatuck, Connecticut 06770, _________________ ("Executive"), and NAUGATUCK
VALLEY FINANCIAL CORPORATION (the "Company"), a federally chartered corporation
and the holding company of the Bank, as guarantor.

      WHEREAS, the Bank recognizes the importance of Executive to the Bank's
operations and wishes to protect his position with the Bank in the event of a
change in control of the Bank or the Company for the period provided for in this
Agreement; and

      WHEREAS, Executive and the Board of Directors of the Bank desire to enter
into an agreement setting forth the terms and conditions of payments due to
Executive in the event of a change in control and the related rights and
obligations of each of the parties.

      NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, it is hereby agreed as follows:

1.    TERM OF AGREEMENT.

      a.    The term of this Agreement shall be (i) the initial term, consisting
      of the period commencing on the date of this Agreement (the "Effective
      Date") and ending on the _____________anniversary of the Effective Date,
      plus (ii) any and all extensions of the initial term made pursuant to this
      Section 1.

      b.    Commencing on the first anniversary of the Effective Date and
      continuing each anniversary date thereafter, the Board of Directors of the
      Bank (the "Board of Directors") may extend the term of this Agreement for
      an additional one (1) year period beyond the then effective expiration
      date, provided that Executive shall not have given at least sixty (60)
      days' written notice of his desire that the term not be extended.

      c.    Notwithstanding anything in this Section to the contrary, this
      Agreement shall terminate if Executive or the Bank terminates Executive's
      employment prior to a Change in Control.

2.    CHANGE IN CONTROL.

      a.    Upon the occurrence of a Change in Control of the Bank or the
      Company followed at any time during the term of this Agreement by the
      termination of Executive's employment in accordance with the terms of this
      Agreement, other than for Cause, as defined in Section 2(c.) of this
      Agreement, the provisions of Section 3 of this Agreement shall apply. Upon
      the occurrence of a Change in Control, Executive shall have the right

<PAGE>

      to elect to voluntarily terminate his employment at any time during the
      term of this Agreement following an event constituting "Good Reason."

      "Good Reason" means, unless Executive has consented in writing thereto,
      the occurrence following a Change in Control, of any of the following:

            i.    the assignment to Executive of any duties materially
                  inconsistent with Executive's position, including any material
                  diminution in status, title, authority, duties or
                  responsibilities, excluding for this purpose an isolated,
                  insubstantial and inadvertent action not taken in bad faith
                  and that is remedied by the Bank or Executive's employer
                  reasonably promptly after receipt of notice from Executive;

            ii.   a reduction by the Bank or Executive's employer of Executive's
                  base salary in effect immediately prior to the Change in
                  Control;

            iii.  the relocation of Executive's office to a location more than
                  ________ miles from its location as of the date of this
                  Agreement;

            iv.   the taking of any action by the Bank or any of its affiliates
                  or successors that would materially adversely affect
                  Executive's overall compensation and benefits package, unless
                  such changes to the compensation and benefits package are made
                  on a non-discriminatory basis and affect substantially all
                  employees; or

            v.    the failure of the Bank or the affiliate of the Bank by which
                  Executive is employed, or any affiliate that directly or
                  indirectly owns or controls any affiliate by which Executive
                  is employed, to obtain the assumption in writing of the Bank's
                  obligation to perform this Agreement by any successor to all
                  or substantially all of the assets of the Bank or such
                  affiliate within thirty (30) days after a reorganization,
                  merger, consolidation, sale or other disposition of assets of
                  the Bank or such affiliate.

      b.    For purposes of this Agreement, a "Change in Control" shall be
      deemed to occur on the earliest of any of the following events:

            i.    Merger: The Company merges into or consolidates with another
            corporation, or merges another corporation into the Company, and as
            a result less than a majority of the combined voting power of the
            resulting corporation immediately after the merger or consolidation
            is held by persons who were stockholders of the Company immediately
            before the merger or consolidation.

            ii.   Acquisition of Significant Share Ownership: The Company files,
            or is required to file, a report on Schedule 13D or another form or
            schedule (other than Schedule 13G) required under Sections 13(d) or
            14(d) of the Securities Exchange

                                       2
<PAGE>

            Act of 1934, if the schedule discloses that the filing person or
            persons acting in concert has or have become the beneficial owner of
            25% or more of a class of the Company's voting securities, but this
            clause (b) shall not apply to beneficial ownership of Company voting
            shares held in a fiduciary capacity by an entity of which the
            Company directly or indirectly beneficially owns 50% or more of its
            outstanding voting securities.

            iii.  Change in Board Composition: During any period of two
            consecutive years, individuals who constitute the Company's Board of
            Directors at the beginning of the two-year period cease for any
            reason to constitute at least a majority of the Company's Board of
            Directors; provided, however, that for purposes of this clause
            (iii), each director who is first elected by the board (or first
            nominated by the board for election by the stockholders) by a vote
            of at least two-thirds (2/3) of the directors who were directors at
            the beginning of the two-year period shall be deemed to have also
            been a director at the beginning of such period; or

            iv.   Sale of Assets: The Company sells to a third party all or
            substantially all of its assets.

      Notwithstanding anything in this Agreement to the contrary, in no event
shall the conversion of the Bank from mutual to stock form (including without
limitation, through the formation of a stock holding company) or the
reorganization of the Bank into the mutual holding company form of organization
constitute a "Change in Control" for purposes of this Agreement.

      c.    Executive shall not have the right to receive termination benefits
pursuant to Section 3 hereof upon termination for "Cause". Termination for Cause
shall mean termination of employment because of Executive's personal dishonesty,
incompetence, willful misconduct, any breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, willful violation
of any law, rule, regulation (other than traffic violations or similar
offenses), final cease and desist order, or any material breach of any provision
of this Agreement. Notwithstanding the foregoing, Executive shall not be deemed
to have been terminated for Cause unless and until there shall have been
delivered to him a copy of a resolution duly adopted by the affirmative vote of
a majority of the entire membership of the Board of Directors at a meeting of
the Board of Directors called and held for that purpose (after reasonable notice
to Executive and an opportunity for him, together with counsel, to be heard
before the Board of Directors), finding that in the good faith opinion of the
Board of Directors, Executive was guilty of conduct justifying termination for
Cause and specifying the particulars thereof in detail. Executive shall not have
the right to receive compensation or other benefits for any period after
termination for Cause. During the period beginning on the date of the Notice of
Termination for Cause pursuant to Section 4 hereof through the Date of
Termination, stock options granted to Executive under any stock option plan
shall not be exercisable nor shall any unvested stock awards granted to
Executive under any stock benefit plan of the Bank, the Company or any

                                       3
<PAGE>

subsidiary or affiliate thereof, vest. At the Date of Termination, such stock
options and any such unvested stock awards shall become null and void and shall
not be exercisable by or delivered to Executive at any time subsequent to such
termination for Cause.

3.    TERMINATION BENEFITS.

      a.    If Executive's employment is voluntarily (in accordance with Section
2(a.) of this Agreement) or involuntarily terminated within ___________ years of
a Change in Control, Executive shall receive:

            i.    a lump sum cash payment equal to ______ (__) times the
                  Executive's "base amount," within the meaning of Section
                  280G(b)(3) of the Internal Revenue Code of 1986, as amended
                  (the "Code"). Such payment shall be made not later than five
                  (5) days following Executive's termination of employment under
                  this Section 3.

            ii.   Continued benefit coverage under all Bank health and welfare
                  plans which Executive participated in as of the date of the
                  Change in Control (collectively, the "Employee Benefit Plans")
                  for a period of ______ (___) months following Executive's
                  termination of employment. Said coverage shall be provided
                  under the same terms and conditions in effect on the date of
                  Executive's termination of employment. Solely for purposes of
                  benefits continuation under the Employee Benefit Plans,
                  Executive shall be deemed to be an active employee. To the
                  extent that benefits required under this Section 3(a) cannot
                  be provided under the terms of any Employee Benefit Plan, the
                  Bank shall enter into alternative arrangements that will
                  provide Executive with comparable benefits.

      b.    Notwithstanding the preceding provisions of this Section 3, in no
event shall the aggregate payments or benefits to be made or afforded to
Executive under said paragraphs (the "Termination Benefits") constitute an
"excess parachute payment" under Section 280G of the Code or any successor
thereto, and to avoid such a result, Termination Benefits will be reduced, if
necessary, to an amount (the "Non-Triggering Amount"), the value of which is one
dollar ($1.00) less than an amount equal to three (3) times Executive's "base
amount," as determined in accordance with said Section 280G. The allocation of
the reduction required hereby among the Termination Benefits provided by this
Section 3 shall be determined by Executive.

4.    NOTICE OF TERMINATION.

      a.    Any purported termination by the Bank or by Executive shall be
communicated by Notice of Termination to the other party hereto. For purposes of
this Agreement, a "Notice of Termination" shall mean a written notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in detail the facts and circumstances claimed to provide a
basis for termination of Executive's employment under the provision so
indicated.

                                       4
<PAGE>

      b.    "Date of Termination" shall mean the date specified in the Notice of
Termination (which, in the case of a termination for Cause, shall not be less
than thirty (30) days from the date such Notice of Termination is given).

5.    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, unconditionally
guarantees payment and provision of all amounts and benefits due hereunder to
Executive 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.

6.    EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS.

      This Agreement contains the entire understanding between the parties
hereto and supersedes any prior agreement between the Bank and Executive, except
that this Agreement shall not affect or operate to reduce any benefit or
compensation inuring to Executive of a kind elsewhere provided. No provision of
this Agreement shall be interpreted to mean that Executive is subject to
receiving fewer benefits than those available to him without reference to this
Agreement. Nothing in this Agreement shall confer upon Executive the right to
continue in the employ of the Bank or shall impose on the Bank any obligation to
employ or retain Executive in its employ for any period.

7.    NO ATTACHMENT.

      a.    Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation or to execution,
attachment, levy or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to affect any such action shall be null, void
and of no effect.

      b.    This Agreement shall be binding upon, and inure to the benefit of,
Executive, the Bank and their respective successors and assigns.

8.    MODIFICATION AND WAIVER.

      a.    This Agreement may not be modified or amended except by an
instrument in writing signed by the parties hereto.

      b.    No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement, except by written instrument of the party charged with such
waiver or estoppel. No such written waiver shall be deemed a continuing waiver
unless specifically stated therein, and each such waiver shall operate only as
to the specific term or condition waived and shall not constitute a waiver of
such term or condition for the future or as to any act other than that
specifically waived.

                                       5
<PAGE>

9.    SEVERABILITY.

      If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each
such other provision and part thereof shall to the full extent consistent with
law continue in full force and effect.

10.   HEADINGS FOR REFERENCE ONLY.

      The headings of sections and paragraphs herein are included solely for
convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement. In addition, references herein to the
masculine shall apply to both the masculine and the feminine.

11.   GOVERNING LAW.

      Except to the extent preempted by federal law, the validity,
interpretation, performance, and enforcement of this Agreement shall be governed
by the laws of the State of Connecticut, without regard to principles of
conflicts of law of that State.

12.   ARBITRATION.

      Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a panel
of three arbitrators sitting in a location selected by Executive within fifty
(50) miles from the location of the Bank, in accordance with the rules of the
American Arbitration Bank then in effect. Judgment may be entered on the
arbitrator's award in any court having jurisdiction; provided, however, that
Executive shall be entitled to seek specific performance of his right to be paid
until the Date of Termination during the pendency of any dispute or controversy
arising under or in connection with this Agreement.

13.   PAYMENT OF LEGAL FEES.

      All reasonable legal fees paid or incurred by Executive pursuant to any
dispute or question of interpretation relating to this Agreement shall be paid
or reimbursed by the Bank, only if Executive is successful pursuant to a legal
judgment, arbitration or settlement.

14.   INDEMNIFICATION.

      The Company or the Bank shall provide Executive (including his heirs,
executors and administrators) with coverage under a standard directors' and
officers' liability insurance policy at its expense and shall indemnify
Executive (and his heirs, executors and administrators) to the fullest extent
permitted under applicable law against all expenses and liabilities reasonably
incurred by him in connection with or arising out of any action, suit or
proceeding in which he may be involved by reason of his having been a director
or officer of the Company or the Bank

                                       6
<PAGE>

(whether or not he continues to be a director or officer at the time of
incurring such expenses or liabilities), such expenses and liabilities to
include, but not be limited to, judgments, court costs, attorneys' fees and the
cost of reasonable settlements.

15.   SUCCESSORS TO THE BANK AND THE COMPANY.

      The Bank and the Company shall require any successor or assignee, whether
direct or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all of the business or assets of the Bank or the Company,
expressly and unconditionally to assume and agree to perform the Bank's and the
Company's obligations under this Agreement, in the same manner and to the same
extent that the Bank and the Company would be required to perform if no such
succession or assignment had taken place.

                                       7
<PAGE>

                                   SIGNATURES

      IN WITNESS WHEREOF, Naugatuck Valley Savings and Loan and Naugatuck Valley
Financial Corporation have caused this Agreement to be executed and their seals
to be affixed hereunto by their duly authorized officers, and Executive has
signed this Agreement, on the ____ day of _________________, 200__.

ATTEST:                             NAUGATUCK VALLEY SAVINGS AND LOAN

______________________________      By:  _______________________________________
Corporate Secretary                      For the Entire Board of Directors

ATTEST:                             NAUGATUCK VALLEY FINANCIAL
                                    CORPORATION
                                    (GUARANTOR)

______________________________      By:  _______________________________________
Corporate Secretary                      For the Entire Board of Directors

        [SEAL]

WITNESS:                            EXECUTIVE

______________________________      ____________________________________________
Corporate Secretary

                                        8

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