Document:

Exhibit 10.3

                      Split Dollar Life Insurance Agreement
                                     Between
                        First National Bank of Litchfield
                                       and
                                  Jerome Whalen

                            (as of September 1, 1994)

     THIS  AGREEMENT,  hereby made this 30th day of March,  1995, by and between
First  National  Bank of  Litchfield  (herein  referred to as "Bank") and Jerome
Whalen  (herein  referred to as  "Employee"),  this  Agreement  to be  effective
September 1, 1994.

                               W I T N E S S E T H

     Whereas, Employee is employed by Bank as President of Bank; and

     Whereas, Bank wishes to provide a benefit to Employee through assistance in
the payment by  Employee of premiums  for life  insurance  to be  maintained  on
Employee's life; and

     Whereas,  Bank has determined that such assistance is best provided through
a split-dollar life insurance arrangement; and

     Whereas,  Employee  has  applied  for,  and is the owner of, the  insurance
policy or policies listed in the attached  schedule  hereto (herein  referred to
the "Policy"); and

     Whereas,  Bank has  furnished  with an  illustration  of Bank cost recovery
entitled Cost Recovery  Compensation  Plan F.D.I.C.  Worksheet  (A.P.B.  21) The
First National Bank of Litchfield dated January 3, 1995,  (herein referred to as
the "Illustration")  which illustration shall be attach hereto as Exhibit I, and
shall form a part of this agreement by reference; and

     Whereas,  Bank and Employee desire to enter this agreement (herein referred
to as the  "Agreement")  with respect to certain  aspects of the Employee  owned
Policy; and

                                   Page 1 of 7

<PAGE>

     Whereas,  Bank and  Employee  agree to subject  the Policy to the terms and
conditions of the Agreement; and

     Whereas, the Employee has assigned certain of his interest in the Policy to
Bank as collateral  for certain  amounts which he owes Bank under the Agreement,
which  assignment  is by an  instrument  of  assignment  filed with the  Insurer
(hereinafter referred to as the "Assignment");

     Now Therefore, in consideration of the promises and of the mutual covenants
herein contained, the Parties hereto hereby agree as follows;

     Section 1:

     The Policy shall be subject to the terms and  conditions  of the  Agreement
     and of the  related  Assignment  filed  with the  Insurer in respect of the
     Policy.  Employee shall be the sole and absolute  owner of the Policy,  and
     may exercise all ownership rights granted to the owner thereof by the terms
     of the Policy,  except as may otherwise be provided herein, and pursuant to
     the Assignment.

     Section 2:

     (a) Bank shall pay an annual  premium for the Policy,  in the annual amount
     $24,750, during Employee's employment with Bank provided,  however, that if
     Employee elects to continue his employment  with Bank beyond  attainment of
     age 65, any  further  premium  payments  to  Insurer  shall be the sole and
     exclusive obligation of Employee.

     (b) The value of the premium payments paid with respect to the Policy shall
     be  allocated  annually  between  Bank  and  Employee,   subject  to  which
     Employee's  allocable share (term  insurance  allocation and illustrated in
     column 6 of the Illustration)  shall be paid by Bank as agent for Employee,
     and shall be charged to Employee as cash  compensation and for all purposes
     (including the Assignment)  shall be deemed cash  compensation  rather than
     Bank paid premium.

     Section 3:

     The parties hereto shall take any reasonable action to cause the Assignment
     to conform to the provisions of the Agreement,  which  Assignment shall not
     be terminated,  altered or amended  without the express  written consent of
     Bank.

     Section 4:

     (a) Except as otherwise herein provided,  Employee shall not sell,  assign,
     transfer,  surrender,  pledge,  encumber  or cancel the Policy  without the
     express written consent of Bank.

                                   Page 2 of 7

<PAGE>

     (b)  Employee   shall  have  the  right  to  change  the   beneficiary   or
     beneficiaries  of the  Policy,  and to borrow  only with regard to the cash
     value and death  benefit  which is in excess of the  collaterally  assigned
     interest of Bank as described in Section 5 and 8 hereof. Employee agrees to
     promptly pay all interest on Employee borrowings necessary to maintain that
     portion  of the  Policy's  cash value  collaterally  assigned  to Bank,  as
     described in column (3) of the Illustration.

     (c) Bank shall not borrow  against the Policy  without the express  written
     consent of Employee.

     (d) Upon  Employee's  termination of employment  with Bank,  Employee shall
     have the right to take any  action  with  regard  to the cash  value of the
     Policy  which is in excess of the  collaterally  assigned  interest of Bank
     illustrated as column 3 on the attached illustration.

     Section 5:

     (a) Upon  death of the  Employee,  Banks  hall  promptly  take all  actions
     necessary to obtain its share of the Policy death benefit.

     (b) A death  benefit in an amount not in excess of  $250,000  shall be paid
     directly  by the Insurer to the  beneficiary  or  beneficiaries  and in the
     manner  designated  by Employee,  subject in all respects to the Bank death
     benefit as herein described.  No amount shall be paid as a death benefit to
     the  beneficiary  or  beneficiaries  designated  by Employee  until Bank or
     Insurer  acknowledges in writing that the full amount due the Bank pursuant
     to the  terms of the  Agreement  has been  paid.  The Bank  shall  have the
     unqualified  right to receive  the  balance of the death  benefit  provided
     under the Policy, or if greater, a minimum death benefit equal to the total
     amount of its share of the premium paid  hereunder  (herein  referred to as
     "Net Premiums"),  plus an amount that would be equal to accrued interest on
     Net Premiums compounded annually at four percent (4%). Toward this end, the
     total death benefit payable under this Policy:

          (i) shall first be applied in satisfaction of the amounts described in
          column (5)(A) (Premium Payments & use of Funds) of the Illustration;

          (ii) shall next be applied to the death  benefit  described  in column
          (9)  (Employee  Death  Benefit)  in an amount  equal to the  lesser of
          $250,000  or the  remainder  of the death  benefit  payable  under the
          Policy after payment pursuant to paragraph (i) hereof; and

          (iii)  shall  lastly and to the full  extent of the  remaining  Policy
          death  benefit,  if any, be applied to the death benefit  described in
          column (5)(B) (Keyperson Death Benefit) of the Illustration.

                                   Page 3 of 7

<PAGE>

     The parties  hereto agree that the  beneficiary  designation  of the Policy
shall conform to the provisions hereof.

     Section 6:

     (a) The Agreement  shall terminate upon  Employee's  death,  and payment of
     proceeds pursuant to Section 5 hereof.

     (b) The Bank's obligation to pay premium payments hereunder shall terminate
     as of the first occur of the Employee's  death,  Employee's  termination of
     employment with the Bank, or Employee's attainment of age 65.

     Section 7:

     (a) If Employee ceases to be employed by Bank for whatever reason, Employee
     has the right to continue to keep the Policy in force  either  individually
     or  through a  subsequent  employer,  subject to the  requirement  that the
     Policy  cash value  shall not be reduced  through  loans,  premium  payment
     options,  or in any manner  below the  amount  needed to repay Bank the Net
     Premiums paid by it hereunder.

     (b) If  Employees  ceases to be employed by Bank and  continues to keep the
     Policy in force, termination of this Agreement shall be pursuant to Section
     6(a) hereof.

     (c) If Employee ceases to be employed by Bank and does not continue to keep
     the Policy in force,  this Agreement will  terminate  immediately  and Bank
     shall  simultaneously be repaid an amount equal to the Net Premiums paid by
     Bank and described in column (1) of the  Illustration,  plus an amount that
     would be equal to accrued interest on said Net Premiums compounded annually
     a four percent (4%). Provided, however, that in no event shall Bank be paid
     an amount greater than the total cash value, as illustrated in column 3 and
     8 of  the  Illustration,  as of  the  date  of  Employee's  termination  of
     employment.

     (d)  Notwithstanding  whether  Employee  elects to keep the Policy in force
     following  termination  of employment  with Bank,  if Employee  voluntarily
     terminates  employment  with Bank within the three year  period  commencing
     with execution of the Agreement, Bank shall have the right, in its sole and
     exclusive discretion (and to be exercised within the ninety (90) day period
     commencing with  Employee's date of termination of employment),  to require
     Employee  to pay to Bank a single  lump sum  payment  equal to the all or a
     portion, determined pursuant to the provisions of subsection (e) hereof, of
     the total Net  Premiums  (equal to the sum of the  amounts  illustrated  in
     column (1) of the  Illustration)  then paid by Bank,  provided such payment
     shall not exceed an amount  equal to then total cash value  under the terms
     of the Policy. Such payment shall be made within the ninety (90) day period
     following  receipt by Employee of written notice of Bank's  exercise of its
     right.

                                   Page 4 of 7

<PAGE>

     (e) For purposes of subsection (d) hereof,  the amount Employee shall repay
     to Bank shall be determined according to the following schedule.

          (i) If the  Employee  terminates  employment  with the Bank within the
          first year of the Agreement,  100% of the total Net Premiums then paid
          by Bank;

          (ii) If the Employee  terminates  employment  with the Bank within the
          second year of the Agreement,  80% of the total Net Premiums then paid
          by Bank;

          (iii) If the  Employee  terminates  employment  with the Bank with the
          third year of the  Agreement,  60% of the total Net Premiums then paid
          by Bank;

     If the Employee  terminates  employment  with the Bank  following the third
year of the Agreement, subsection (d) hereof shall not apply.

     Section 8:

     The parties hereto agree that the Agreement  shall take precedence over any
     provisions  of the  Assignment.  Bank  agrees  not to  exercise  any  right
     possessed  by it under  the  Assignment  except  in  conformity  with  this
     Agreement.

     Section 9:

     The  Agreement  may not be amended,  altered or modified  except by written
     instrument  signed  by  both  parties  hereto,  and  may  not be  otherwise
     terminated except as provided herein.

     Section 10:

     (a) The split-dollar  arrangement  contemplated herein is an exempt welfare
     plan under regulations promulgated under Title I of the Employee Retirement
     Income Security Act of 1974 (herein referred to as "ERISA").

     (b) For  purposes of ERISA,  Bank will be the "named  fiduciary"  and "plan
     administrator" of the split-dollar arrangement contemplated herein, and the
     Agreement is hereby designated as the written plan instrument.

     (c) Employee,  or after Employee's death any beneficiary of his, may file a
     request for benefits  with the plan  administrator.  If a claim  request is
     wholly or  partially  denied,  the plan  administrator  shall  furnish  the
     claimant a notice of its decision  within ninety (90) days in writing,  and
     in a manner to be understood  by the  claimant,  which notice shall contain
     the following information:

                                   Page 5 of 7

<PAGE>

          (i) the specific reason or reasons for the denial;

          (ii) specific  reference to pertinent plan  provisions  upon which the
          denial is based;

          (iii)  a  description  of  any  additional   material  or  information
          necessary for the claimant to perfect the claim and an  explanation as
          to why such material or information is necessary.

          (iv) an explanation of the plan's  claim-review  procedure  describing
          the steps to be taken by a claimant who wishes to submit his claim for
          review.

     (d) A claimant or his  authorized  representative  may, with respect to any
     denied claim:

          (i) request a review upon written  application filed within sixty (60)
          days after receipt by the claimant of written  notice of the denial of
          his claim;

          (ii) review pertinent documents; and

          (iii) submit issues and comments in writing.

     Any  request or  submission  will be in writing and will be directed to the
plan administrator. The plan administrator will have the sole responsibility for
the review of any denied claim and will take all  appropriate  steps in light of
its  findings.  The plan  administrator  will render a decision upon review of a
denied claim within  sixty (60) days after  receipt of a request for review.  If
special  circumstances warrant additional time, the decision will be rendered as
soon as possible, but not later than one hundred twenty (120) days after receipt
of request for review.  Written notice of any such extension  shall be furnished
to the claimant  prior to the  commencement  of the  extension.  The decision on
review will be in writing and will  include  specific  reasons for the  decision
written in a manner to be understood  by the  claimant,  as well as the specific
references  of the  pertinent  provisions  of the plan on which the  decision is
based.  If the decision on review is not  furnished  to the claimant  within the
time limits described above, the claim will be deemed denied on review.

     (11) This Agreement  shall be binding upon and inure to the benefit of Bank
     and its  successors and  assignees,  and upon Employee and his  successors,
     assignees, heirs, executors, administrators and beneficiaries.

     (12) Except as may be preempted by ERISA, this Agreement, and the rights of
     the parties  hereto,  shall be governed by and construed in accordance with
     the laws of the State of Connecticut.

     (13) In the event Employee voluntarily  terminates employment with Bank and
     within  twenty-four (24) months of the date of such  termination,  Employee
     becomes an officer, director,  representative or employee of an entity or a
     member of a partnership which

                                   Page 6 of 7

<PAGE>

     conducts business in competition with Bank within Litchfield County without
     Bank's written consent,  Employee shall transfer ownership of the policy to
     Bank and forfeit all rights  therein.  In the event  employee shall fail to
     sign forms necessary  pursuant to this paragraph,  Bank is hereby appointed
     agent in fact to sign such forms on Employee's behalf.

     (14) Nothing in this Agreement  shall be construed as creating for Employee
     a right to be retained in the service of Bank, or to interfere  with Bank's
     right to discharge Employee from service with the Bank.

     IN WITNESS  WHEREOF,  Bank has caused this  Agreement to be executed by its
officer  thereunto  duly  authorized  and Employee has hereunto set his hand and
seal, all as of the day and year first above written.

                                       FIRST NATIONAL BANK OF LITCHFIELD

                                       By:   /s/ Ernest W. Clock, Chairman
                                            -------------------------------
                                       Its:

                                       EMPLOYEE

                                        /s/ Jerome  Whalen
                                        -------------------------------
                                        Jerome Whalen

                                   Page 7 of 7Exhibit 10.4

                      THE FIRST NATIONAL BANK OF LITCHFIELD
                     FIRST LITCHFIELD FINANCIAL CORPORATION

                      EXECUTIVE CHANGE IN CONTROL AGREEMENT

                 NOT TO BE CONSTRUED AS AN EMPLOYMENT AGREEMENT

                                 August 6, 1997

<PAGE>

                      EXECUTIVE CHANGE IN CONTROL AGREEMENT
                 NOT TO BE CONSTRUED AS AN EMPLOYMENT AGREEMENT

                      THE FIRST NATIONAL BANK OF LITCHFIELD
                     FIRST LITCHFIELD FINANCIAL CORPORATION
                                 13 North Street
                             Litchfield, Connecticut

     WHEREAS,  The First National Bank of Litchfield (the "Bank") and its parent
bank holding  company,  First  Litchfield  Financial  Corporation  (the "Holding
Company"), wish to continue to employ Jerome J. Whalen ("Employee") as President
of  the  Bank.  The  Bank  and  the  Holding   Company  expect  that  Employee's
contributions  and knowledge will continue to be of  significant  benefit to the
future growth and success of the Bank;

     WHEREAS,  the  Boards  of  Directors  of the Bank and the  Holding  Company
recognize  that a change in control of the Bank and/or the  Holding  Company may
occur and that the threat of such change in control may create  uncertainty  and
may result in the  distraction or departure of key personnel to the detriment of
the Bank and Holding Company and their stockholders;

     WHEREAS,  the Boards have determined that appropriate steps should be taken
to reinforce and  encourage  the  continued  dedication of members of the Bank's
management,  including  Employee,  to  their  assigned  duties  in the  face  of
potential circumstances involving the possibility of such a change in control;

     NOW  THEREFORE,  in  addition  to one  dollar  ($1.00)  and other  good and
valuable  consideration  paid by the Bank to  Employee  and in  order to  induce
Employee  to  continue  employment  with  the Bank and to  continue  to  perform
Employee's  duties in a manner which is in the best  interests of the Bank,  the
Bank and Holding Company hereby agree to provide  Employee with certain benefits
in the event his employment with the Bank terminates or is reassigned subsequent
to a Change in Control (as defined in Section 2 hereof) under the  circumstances
described below.

     1. Term of Agreement;  Employment Status.  This Agreement shall take effect
when signed by all parties and shall  remain in full force and effect until June
1, 2002.  All employees of Bank and Holding  Company,  including  Employee,  are
employees at will. The terms of this  Agreement,  therefore,  do not and are not
intended to create either an express and/or implied  contract of employment with
the Bank and/or the Holding  Company.  This Agreement  simply  provides  certain
potential  benefits  to  Employee  in the event that a Change in Control  occurs
prior to June 1, 2002 as hereinafter defined.

<PAGE>

                                       -2-

     2. Change in Control.  No benefits shall be payable  hereunder unless prior
to June 1, 2002 there  shall  have been a Change in Control as set forth  below,
and  thereafter  within  twenty-four  (24)  months  of such  Change  in  Control
Employee's  employment with the Bank and/or its successor terminates or Employee
is  reassigned  in  accordance  with  Section 3,  below.  For  purposes  of this
Agreement, a "Change in Control" shall mean any of the following:

          (a) The  acquisition  of fifty  percent  (50%) or more of any class of
     equity  securities of the Holding Company by any person (or persons working
     in concert) or entity after the date hereof;

          (b) The  acquisition  of fifty  percent  (50%) or more of any class of
     equity  securities  of the Bank by any person or entity  other than Holding
     Company;

          (c) A merger, consolidation or reorganization to which the Bank or the
     Holding Company is a party,  if, as a result thereof,  individuals who were
     directors  of  the  Bank  or  Holding  Company,   immediately  before  such
     transaction  shall cease to constitute a majority of the Board of Directors
     of the surviving entity;

          (d) A sale of all or  substantially  all of the  assets of the Bank or
     the Holding Company to another party;

          (e) The assumption of all or substantially  all of the deposits of the
     Bank by another party other than the Federal Deposit Insurance Corporation;
     or

          (f) During any twenty-four  (24) month period,  individuals who at the
     beginning of such period  constitute the Board of Directors of the Bank and
     the Holding Company,  cease for any reason (other than death or disability)
     to  constitute  at least a  majority  thereof  unless the  election  or the
     nomination  for  election  by  the   stockholders   of  the  Bank  and  the
     stockholders  of Holding  Company,  respectively,  of each new director was
     approved by a vote of at least a majority of the  directors  of the Bank or
     of Holding  Company as applicable,  then still in office who were directors
     of the Bank or the Holding Company, as applicable,  at the beginning of the
     period.

     3. Termination  Following Change in Control. If any of the events described
in  Section 2 hereof  constituting  a Change in  Control  shall  have  occurred,
Employee  shall be entitled to the benefits  provided for in Section 4(a) hereof
upon the  termination or  reassignment  of his employment as a senior  executive
officer of the Bank and/or its  successor  as provided in this Section 3, within
twenty-four  (24) months after such event,  unless such employment is terminated
or   reassigned:   (i)  by  any   regulatory   authority   (acting  with  proper
jurisdiction);  or (ii) by the Board of Directors for cause; or (iii) because of
Employee's  death,  retirement or disability.  Such benefits shall be reduced by
the amount of any severance paid to Employee by the Bank or its successor.

<PAGE>

                                       -3-

          (a) Retirement; Disability.

               (i)  Termination  of  employment  by the Bank based on retirement
          shall mean the mandatory  termination of employment in accordance with
          the  retirement  policy of the Bank,  including  (at  Employee's  sole
          election  and as set forth in  writing)  early  retirement,  generally
          applicable  to  its  salaried  employees  or in  accordance  with  any
          retirement  arrangement   established  with  Employee's  consent  with
          respect to Employee.

               (ii)  Termination  of  employment by the Bank based on disability
          shall mean termination because of inability, as a result of incapacity
          due to physical or mental illness, to perform the services required as
          an employee for a period aggregating six (6) months or more within any
          twelve (12) month  period,  or because  Employee  becomes or is deemed
          disabled under any applicable policy providing disability insurance.

     (b) Notice of Termination. The Bank agrees that in the event of termination
it will promptly  furnish  Employee with a written  Notice of  Termination.  Any
purported  termination  of Employee shall be  communicated  by written Notice of
Termination  to  the  Bank.  For  purposes  of  this  Agreement,  a  "Notice  of
Termination"  shall mean a notice which shall  include the specific  termination
provision in this Agreement relied upon and shall set forth in reasonable detail
the facts and  circumstances  claimed  to  provide  a basis for  termination  of
Employee's employment under the provision so indicated.

     (c) Date of Termination. "Date of Termination" shall mean the date on which
a Notice of Termination  is given;  provided that, if within five (5) days after
any  Notice  of  Termination  is  given,  the  party  receiving  such  Notice of
Termination  notifies  the other  party  that a dispute  exists  concerning  the
termination,  the Date of Termination  shall be the date on which the dispute is
finally  determined,  either by mutual  written  agreement of the parties,  by a
binding and final arbitration award or by a final judgment, order or decree of a
court of competent  jurisdiction  (the time for appeal  therefrom having expired
and no appeal having been perfected).

     (d) Reassignment.  Reassignment shall mean a reduction in base salary or an
involuntary  reassignment of Employee's  duties,  responsibilities,  or benefits
inconsistent  with  those  of a  senior  executive  officer  of a  bank  or  the
involuntary  relocation of Employee's primary duties and  responsibilities to an
office or location greater than fifty (50) miles from Litchfield, Connecticut or
action  which  results  in  a  significant  worsening  of  the  Employee's  work
conditions  (including,  but not limited to, a significant  change in employment
duties, responsibilities, required hours or otherwise).

<PAGE>

                                       -4-

     4. Compensation Upon Termination or Reassignment.

          (a) If, within  twenty-four (24) months after a Change in Control,  as
     defined in Section 2 hereof,  shall have  occurred,  Employee's  employment
     with the Bank  terminates  or is reassigned as defined in Section 3 (except
     by an agency  acting with proper  jurisdiction,  or by a board of directors
     for cause or as a result of death, retirement or disability), then the Bank
     and/or its successor shall pay Employee within five (5) days after the Date
     of Termination an amount equal to the sum of:

               (i) Two (2) years of Employee's  annual  compensation  based upon
          the most recent  aggregate  base salary paid to Employee in the twelve
          (12)  month  period   immediately   preceding   his   termination   or
          reassignment less amounts previously paid to Employee from the date of
          Change in Control; plus

               (ii) Reasonable legal fees and expenses incurred by Employee as a
          result of such  termination or  reassignment  (including all such fees
          and  expenses,  if any,  incurred in  contesting or disputing any such
          termination  or  reassignment  or in seeking to obtain or enforce  any
          right or benefit provided for by this Agreement).

     (b)  Employee  shall not be required to mitigate  the amount of any payment
provided for in this Section 4 by seeking other  employment  or  otherwise,  nor
shall the amount of any payment provided for in this Section 4 be reduced by any
compensation  earned by Employee as the result of employment by another employer
after the Date of Termination or Reassignment, or otherwise.

     (c) It is the intention of the parties to this  Agreement  that no payments
by the  Bank  to or  for  Employee's  benefit  under  this  Agreement  shall  be
non-deductible  to the Bank by reason of the  operation  of Section  280G of the
Internal Revenue Code. Accordingly,  notwithstanding any other provision hereof,
if by reason of the operation of said Section 280G of the Internal Revenue Code,
any such  payments  exceed the amount  which can be  deducted  by the Bank,  the
amount of such payments shall be reduced to the maximum which can be deducted by
the Bank.  To the extent  that  payments  in excess of the  amount  which can be
deducted by the Bank have been made to and for Employee's benefit, they shall be
refunded with interest at the applicable  rate provided under Section 1274(d) of
the  Internal  Revenue  Code,  or at such other rate as may be required in order
that no such  payment  to or for  Employee's  benefit  shall  be  non-deductible
pursuant  to Section  280G of the  Internal  Revenue  Code.  Any  payments  made
hereunder  which are not deductible by the Bank as a result of losses which have
been carried  forward by the Bank for Federal tax purposes shall not be deemed a
non-deductible amount for purposes of this Section 4(c).

<PAGE>

                                       -5-

     5. Continuation of Insurance Benefits.

     Notwithstanding any other provision in this Agreement to the contrary,  the
Bank and/or its successor shall maintain in full force and effect for Employee's
continued  benefit,  for the two (2) year  period  beginning  upon a  Change  in
Control,  all life  insurance,  medical,  health  and  accident  and  disability
policies, plans, programs or arrangements which were in effect immediately prior
to the Change in Control.

     6. Successors; Binding Agreement.

          (a) The  Bank and the  Holding  Company  will  require  any  successor
     (whether   direct  or  indirect,   by  purchase,   merger,   consolidation,
     acquisition  of assets or assumption of liabilities or otherwise) to all or
     substantially  all of the business  and/or  assets  and/or  deposits of the
     Bank, by agreement, to expressly assume and agree to perform this Agreement
     in the same  manner and to the same  extent that the Bank would be required
     to perform it if no such  succession  had taken place.  Failure of the Bank
     and/or Holding Company to obtain such agreement prior to the  effectiveness
     of any such  succession  shall  be a breach  of this  Agreement  and  shall
     entitle  Employee to  compensation  from the Bank in the same amount and on
     the same terms as he would be entitled to hereunder if his  employment  had
     terminated as a result of a  Termination  or  Reassignment,  as provided in
     Section 3 hereof,  after a Change in Control,  except that for  purposes of
     implementing the foregoing,  the date on which any such succession  becomes
     effective  shall  be  deemed  the  Date  of  Termination.  As  used in this
     Agreement,  "Bank"  shall  mean the Bank as  hereinbefore  defined  and any
     successor  to the  business,  assets  and/or  deposits as  aforesaid  which
     executes and delivers the agreement provided for in this Section 6 or which
     otherwise  becomes bound by all the terms and  provisions of this Agreement
     by operation of law.

          (b) This Agreement shall inure to the benefit of and be enforceable by
     Employee's personal or legal  representatives,  executors,  administrators,
     successors, heirs, distributees,  devisees and legatees. If Employee should
     die after any  rights to  receive  the  amounts  contemplated  hereby  have
     accrued  to  Employee  but before  such  amounts  have been paid,  all such
     amounts, unless otherwise provided herein, shall be paid in accordance with
     the terms of this  Agreement to his devisee,  legatee or other designee or,
     if there be no such designee, to his estate.

     7.  Notices.  All notices  and other  communications  provided  for in this
Agreement  shall be in writing  and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt  requested,
postage  prepaid,  addressed to the respective  addresses set forth on the first
page of this  Agreement,  provided  that all notices to the Bank and the Holding
Company  shall be  directed  to the  attention  of the Board  with a copy to the
Chairman  of the Board of the Bank and the  Chairman of the Board of the Holding
Company or to such other address as either party may have furnished to the other
in writing in accordance herewith, except that notice of change of address shall
be effective only upon receipt.

<PAGE>

                                       -6-

     8. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing
and signed by Employee and such other officer as may be specifically  designated
by the Board.  No waiver by either party hereto at any time of any breach by the
other or failure to comply with any condition or provision of this  Agreement to
be  performed  by such  other  party  shall be  deemed a waiver  of  similar  or
dissimilar  provisions  or  conditions at the same or at any prior or subsequent
time. No agreements or representations,  oral or otherwise,  express or implied,
with respect to the subject  matter  hereof have been made by either party which
are not expressly  set forth in this  Agreement.  The validity,  interpretation,
construction  and performance of this Agreement shall be governed by the laws of
the State of Connecticut and of the United States of America.

     9. Validity.  The invalidity or  unenforceability  of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

     10. Counterparts.  This Agreement may be executed in several  counterparts,
each of which shall be deemed to be an original but all of which  together  will
constitute one and the same instrument.

     11. Arbitration.  Any dispute or controversy arising under or in connection
with this Agreement  shall be settled  exclusively by arbitration in Litchfield,
Connecticut,   in  accordance  with  the  rules  of  the  American   Arbitration
Association then in effect.  Notwithstanding the pendency of any such dispute or
controversy,  the Bank will pay  Employee  promptly an amount  equal to his full
scheduled  compensation in effect when the notice giving rise to the dispute was
given (including, but not limited to, base salary) and provide Employee with all
scheduled   compensation,   benefits  and  insurance   plans  in  which  he  was
participating  when the notice  giving rise to the dispute was given,  until the
dispute is finally  resolved in accordance  with Section 3 hereof.  Amounts paid
under  this  Section  11 are in  addition  to all other  amounts  due under this
Agreement and shall not be offset  against or reduce any other amounts due under
this Agreement.  Judgment may be entered on the arbitrator's  award in any court
having jurisdiction;  provided, however, that Employee 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.

<PAGE>

                                       -7-

     Agreed to this 6th day of  August,  1997 by and among  Employee,  The First
National Bank of Litchfield, and First Litchfield Financial Corporation.

                              THE FIRST NATIONAL BANK OF
                              LITCHFIELD

                              By:    /s/ Ernest W. Clock
                                     ----------------------------------------
                              Its:       Chairman
                                         Duly Authorized

                              EMPLOYEE

                              Signature: /s/ Jerome J. Whalen
                                         ------------------------------------
                                         Printed Name: Jerome J. Whalen

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