Document:

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                                                                    EXHIBIT 10.7
                                     FORM OF

                        NAUGATUCK VALLEY SAVINGS AND LOAN

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

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                                                                               .

                                     FORM OF
                        NAUGATUCK VALLEY SAVINGS AND LOAN
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                                TABLE OF CONTENTS
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<S>                                                                          <C>
Article I - Introduction....................................................  1

Article II - Definitions....................................................  2

Article III - Eligibility and Participation.................................  5

Article IV - Benefits.......................................................  6

Article V - Accounts........................................................  8

Article VI - Supplemental Benefit Payments..................................  9

Article VII - Claims Procedures............................................  10

Article VIII - Amendment and Termination...................................  12

Article IX - General Provisions............................................  13
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                                    ARTICLE I
                                  INTRODUCTION

SECTION 1.01 PURPOSE, DESIGN AND INTENT.

(a)   The purpose of the Naugatuck Valley Savings and Loan Supplemental
      Executive Retirement Plan (the "Plan") is to assist Naugatuck Valley
      Savings and Loan (the "Bank") and its affiliates in retaining the services
      of key employees until their retirement, to induce such employees to use
      their best efforts to enhance the business of the Bank and its affiliates,
      and to provide certain supplemental retirement benefits to such employees.

(b)   The Plan, in relevant part, is intended to constitute an unfunded "excess
      benefit plan" as defined in Section 3(36) of the Employee Retirement
      Income Security Act of 1974, as amended. In this respect, the Plan is
      specifically designed to provide certain key employees with retirement
      benefits that would have been provided under various tax-qualified
      retirement plans sponsored by the Bank but for the applicable limitations
      placed on benefits and contributions under such plans by various
      provisions of the Internal Revenue Code of 1986, as amended.

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                                   ARTICLE II
                                   DEFINITIONS

SECTION 2.01 DEFINITIONS. In this Plan, whenever the context so indicates, the
singular or the plural number and the masculine or feminine gender shall be
deemed to include the other, the terms "he," "his," and "him," shall refer to a
Participant or a beneficiary of a Participant, as the case may be, and, except
as otherwise provided, or unless the context otherwise requires, the capitalized
terms shall have the following meanings:

(a)   "AFFILIATE" means any corporation, trade or business, which, at the time
of reference, is together with the Bank, a member of a controlled group of
corporations, a group of trades or businesses (whether or not incorporated)
under common control, or an affiliated service group, as described in Sections
414(b), 414(c), and 414(m) of the Code, respectively, or any other organization
treated as a single employer with the Bank under Section 414(o) of the Code.

(b)   "APPLICABLE LIMITATIONS" means one or more of the following, as
applicable:

      (i)   the maximum limitations on annual additions to a tax-qualified
            defined contribution plan under Section 415(c) of the Code;

      (ii)  the maximum limitation on the annual amount of compensation that
            may, under Section 401(a)(17) of the Code, be taken into account in
            determining contributions to and benefits under tax-qualified plans;
            and

      (iii) the maximum limitations, under Sections 401(k), 401(m), or 402(g) of
            the Code, on pre-tax contributions that may be made to a qualified
            defined contribution plan.

(c)   "BANK" means Naugatuck Valley Savings and Loan, and its successors.

(d)   "BOARD OF DIRECTORS" means the Board of Directors of the Bank.

(e)   "CHANGE IN CONTROL" means the earliest occurrence of one 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

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      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.

(f)   "CODE" means the Internal Revenue Code of 1986, as amended.

(g)   "COMMITTEE" means the person(s) designated by the Board of Directors,
pursuant to Section 9.02 of the Plan, to administer the Plan.

(h)   "COMMON STOCK" means the common stock of the Company.

(i)   "COMPANY" means Naugatuck Valley Financial Corporation and its successors.

(j)   "ELIGIBLE INDIVIDUAL" means any Employee who participates in the ESOP or
the Savings Plan, as the case may be, and whom the Board of Directors determines
is one of a "select group of management or highly compensated employees," as
such phrase is used for purposes of Sections 101, 201, and 301 of ERISA.

(k)   "EMPLOYEE" means any person employed by the Bank or an Affiliate.

(l)   "EMPLOYER" means the Bank or Affiliate thereof that employs the Employee.

(m)   "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

(n)   "ESOP" means the Naugatuck Valley Savings and Loan Employee Stock
Ownership Plan, as amended from time to time.

(o)   "ESOP ACQUISITION LOAN" means a loan or other extension of credit incurred
by the trustee of the ESOP in connection with the purchase of Common Stock on
behalf of the ESOP.

(p)   "ESOP VALUATION DATE" means any day as of which the investment experience
of the trust fund of the ESOP is determined and individuals' accounts under the
ESOP are adjusted accordingly.

(q)   "EFFECTIVE DATE" means January 1, 2004.

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(r)   "PARTICIPANT" means an Eligible Employee who is entitled to benefits under
the Plan.

(s)   "PLAN" means this Naugatuck Valley Savings and Loan Supplemental Executive
Retirement Plan.

(t)   "SAVINGS PLAN" means the Naugatuck Valley Savings and Loan Employees
Savings Plan, as amended from time to time.

(u)   "SUPPLEMENTAL ESOP ACCOUNT" means an account established by an Employer,
pursuant to Section 5.01 of the Plan, with respect to a Participant's
Supplemental ESOP Benefit.

(v)   "SUPPLEMENTAL ESOP BENEFIT" means the benefit credited to a Participant
pursuant to Section 4.01 of the Plan.

(w)   "SUPPLEMENTAL SAVINGS BENEFIT" means the benefit credited to a Participant
pursuant to Section 4.03 of the Plan.

(x)   "SUPPLEMENTAL SAVINGS ACCOUNT" means an account established by an
Employer, pursuant to Section 5.03 of the Plan, with respect to a Participant's
Supplemental Savings Benefit.

(y)   "SUPPLEMENTAL STOCK OWNERSHIP ACCOUNT" means an account established by an
Employer, pursuant to Section 5.02 of the Plan, with respect to a Participant's
Supplemental Stock Ownership Benefit.

(z)   "SUPPLEMENTAL STOCK OWNERSHIP BENEFIT" means the benefit credited to a
Participant pursuant to Section 4.02 of the Plan.

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                                   ARTICLE III
                          ELIGIBILITY AND PARTICIPATION

SECTION 3.01 ELIGIBILITY AND PARTICIPATION.

(a)   Each Eligible Employee may participate in the Plan. An Eligible Employee
      shall become a Participant in the Plan upon designation as such by the
      Board of Directors. An Eligible Employee whom the Board of Directors
      designates as a Participant in the Plan shall commence participation as of
      the date established by the Board of Directors. The Board of Directors
      shall establish an Eligible Employee's date of participation at the same
      time it designates the Eligible Employee as a Participant in the Plan.

(b)   The Board of Directors may, at any time, designate an Eligible Employee as
      a Participant for any or all supplemental benefits provided for under
      Article IV of the Plan.

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                                   ARTICLE IV
                                    BENEFITS

SECTION 4.01 SUPPLEMENTAL ESOP BENEFIT.

As of the last day of each plan year of the ESOP, the Employer shall credit the
Participant's Supplemental ESOP Account with a Supplemental ESOP Benefit equal
to the excess of (a) over (b), where:

(a)   Equals the annual contributions made by the Employer and/or the number of
      shares of Common Stock released for allocation in connection with the
      repayment of an ESOP Acquisition Loan that would otherwise be allocated to
      the accounts of the Participant under the ESOP for the applicable plan
      year, if the provisions of the ESOP were administered without regard to
      any of the Applicable Limitations; and

(b)   Equals the annual contributions made by the Employer and/or the number of
      shares of common stock released for allocation in connection with the
      repayment of an ESOP Acquisition Loan that are actually allocated to the
      accounts of the Participant under the provisions of the ESOP for that
      particular plan year, after giving effect to any reduction of such
      allocation required by any of the Applicable Limitations.

SECTION 4.02 SUPPLEMENTAL STOCK OWNERSHIP BENEFIT.

(a)   Upon a Change in Control, the Employer shall credit to the Participant's
      Supplemental Stock Ownership Account a Supplemental Stock Ownership
      Benefit equal to (i) less (ii), the result of which is multiplied by
      (iii), where:

      (i)   Equals the total number of shares of Common Stock acquired with the
            proceeds of all ESOP Acquisition Loans (together with any dividends,
            cash proceeds, or other medium related to such ESOP Acquisition
            Loans) that would have been allocated or credited for the benefit of
            the Participant under the ESOP and/or this Plan, as the case may be,
            had the Participant continued in the employ of the Employer through
            the first ESOP Valuation Date following the last scheduled payment
            of principal and interest on all ESOP Acquisition Loans outstanding
            at the time of the Change in Control; and

      (ii)  Equals the total number of shares of Common Stock acquired with the
            proceeds of all ESOP Acquisition Loans (together with any dividends,
            cash proceeds, or other medium related to such ESOP Acquisition
            Loans) and allocated for the benefit of the Participant under the
            ESOP and/or this Plan, as the case may be, as of the first ESOP
            Valuation Date following the Change in Control; and

      (iii) Equals the fair market value of the Common Stock immediately
            preceding the Change in Control.

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(b)   For purposes of clause (i) of subsection (a) of this Section 4.02, the
      total number of shares of Common Stock shall be determined by multiplying
      the sum of (i) and (ii) by (iii), where:

      (i)   equals the average of the total shares of Common Stock acquired with
            the proceeds of an ESOP Acquisition Loan and allocated for the
            benefit of the Participant under the ESOP as of the three most
            recent ESOP Valuation Dates preceding the Change in Control (or
            lesser number if the Participant has not participated in the ESOP
            for three full years);

      (ii)  equals the average number of shares of Common Stock credited to the
            Participant's Supplemental ESOP Account for the three most recent
            plan years of the ESOP (such that the three most recent plan years
            coincide with the three most recent ESOP Valuation Dates referred to
            in (i) above); and

      (iii) equals the original number of scheduled annual payments on the ESOP
            Acquisition Loans.

SECTION 4.03 SUPPLEMENTAL SAVINGS BENEFIT.

A Participant's Supplemental Savings Benefit under the Plan shall be equal to
the excess of (a) over (b), where:

(a)   is the sum of the matching contributions and other contributions of the
      Employer that would otherwise be allocated to an account of the
      Participant under the Savings Plan for a particular year, if the
      provisions of the Savings Plan were administered without regard to any of
      the Applicable Limitations; and

(b)   is the sum of the matching contributions and other contributions of the
      Employer that are actually allocated on account of the Participant under
      the provisions of the Savings Plan for that particular year, after giving
      effect to any reduction of such allocation required by any of the
      Applicable Limitations.

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                                    ARTICLE V
                                    ACCOUNTS

SECTION 5.01 SUPPLEMENTAL ESOP BENEFIT ACCOUNT.

For each Participant who is credited with a benefit pursuant to Section 4.01 of
the Plan, the Employer shall establish, as a memorandum account on its books, a
Supplemental ESOP Account. Each year, the Committee shall credit to the
Participant's Supplemental ESOP Account the amount of benefits determined under
Section 4.01 of the Plan for that year. The Committee shall credit the account
with an amount equal to the appropriate number of shares of Common Stock or
other medium of contribution that would have otherwise been made to the
Participant's accounts under the ESOP but for the limitations imposed by the
Code. Shares of Common Stock shall be valued under this Plan in the same manner
as under the ESOP. Cash contributions credited to a Participant's Supplemental
ESOP Account shall be credited annually with interest at a rate equal to the
combined weighted return provided to the Participant's non-stock accounts under
the ESOP.

SECTION 5.02 SUPPLEMENTAL STOCK OWNERSHIP ACCOUNT.

The Employer shall establish, as a memorandum account on its books, a
Supplemental Stock Ownership Account. Upon a Change in Control, the Committee
shall credit to the Participant's Supplemental Stock Ownership Account the
amount of benefits determined under Section 4.02 of the Plan. The Committee
shall credit the account with an amount equal to the appropriate number of
shares of Common Stock or other medium of contribution that would have otherwise
been made to the Participant's accounts under the ESOP. Shares of Common Stock
shall be valued under this Plan in the same manner as under the ESOP. Cash
contributions credited to a Participant's Supplemental Stock Ownership Account
shall be credited annually with interest at a rate equal to the combined
weighted return provided to the Participant's non-stock accounts under the ESOP.

SECTION 5.03 SUPPLEMENTAL SAVINGS ACCOUNT.

The Employer shall establish a memorandum account, the "Supplemental Savings
Account" for each Participant on its books, and each year the Committee will
credit the amount of contributions determined under Section 4.03 of the Plan.
Contributions credited to a Participant's Supplemental Savings Account shall be
credited monthly with interest at a rate equal to the combined weighted return
provided to the Participant's account(s) under the Savings Plan.

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                                   ARTICLE VI
                          SUPPLEMENTAL BENEFIT PAYMENTS

SECTION 6.01 PAYMENT OF SUPPLEMENTAL ESOP BENEFIT.

(a)   A Participant's Supplemental ESOP Benefit shall be paid to the Participant
      or, in the event of the Participant's death, to his beneficiary, in the
      same form, time and medium (i.e., cash and/or shares of Common Stock) as
      his benefits are paid under the ESOP.

(b)   A Participant shall have a non-forfeitable right to the Supplemental ESOP
      Benefit credited to him under this Plan in the same percentage as he has
      benefits allocated to him under the ESOP at the time the benefits become
      distributable to him under the ESOP.

SECTION 6.02 PAYMENT OF SUPPLEMENTAL STOCK OWNERSHIP BENEFIT.

(a)   A Participant's Supplemental Stock Ownership Benefit shall be paid to the
      Participant or, in the event of the Participant's death, to his
      beneficiary, in the same form, time and medium (i.e., cash and/or shares
      of Common Stock) as his benefits are paid under the ESOP.

(b)   A Participant shall always have a fully non-forfeitable right to the
      Supplemental Stock Ownership Benefit credited to him under this Plan.

SECTION 6.03 PAYMENT OF SUPPLEMENTAL SAVINGS BENEFIT.

(a)   A Participant's Supplemental Savings Benefit shall be paid to the
      Participant or, in the event of the Participant's death, to his
      beneficiary, in the same form and at the same time as his benefits are
      paid under the Savings Plan.

(b)   A Participant shall have a non-forfeitable right to his Supplemental
      Savings Benefit under this Plan in the same percentage as he has to his
      matching contributions under the Savings Plan at the time the benefits
      become distributable to him under the Savings Plan.

SECTION 6.04 ALTERNATIVE PAYMENT OF BENEFITS.

Notwithstanding the other provisions of this Article VI, a Participant may, with
prior written consent of the Committee and upon such terms and conditions as the
Committee may impose, request that the Supplemental ESOP Benefit and/or the
Supplemental Stock Ownership Benefit and/or the Supplemental Savings Benefit to
which he is entitled be paid commencing at a different time, over a different
period, in a different form, or to different persons, than the benefit to which
he or his beneficiary may be entitled under the ESOP or the Savings Plan.

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                                   ARTICLE VII
                                CLAIMS PROCEDURES

SECTION 7.01 CLAIMS REVIEWER.

For purposes of handling claims with respect to this Plan, the "Claims Reviewer"
shall be the Committee, unless the Committee designates another person or group
of persons as Claims Reviewer.

SECTION 7.02 CLAIMS PROCEDURE.

(a)   An initial claim for benefits under the Plan must be made by the
      Participant or his beneficiary or beneficiaries in accordance with the
      terms of this Section 7.02.

(b)   Not later than ninety (90) days after receipt of such a claim, the Claims
      Reviewer will render a written decision on the claim to the claimant,
      unless special circumstances require the extension of such 90-day period.
      If such extension is necessary, the Claims Reviewer shall provide the
      Participant or the Participant's beneficiary or beneficiaries with written
      notification of such extension before the expiration of the initial 90-day
      period. Such notice shall specify the reason or reasons for the extension
      and the date by which a final decision can be expected. In no event shall
      such extension exceed a period of ninety (90) days from the end of the
      initial 90-day period.

(c)   In the event the Claims Reviewer denies the claim of a Participant or any
      beneficiary in whole or in part, the Claims Reviewer's written
      notification shall specify, in a manner calculated to be understood by the
      claimant, the reason for the denial; a reference to the Plan or other
      document or form that is the basis for the denial; a description of any
      additional material or information necessary for the claimant to perfect
      the claim; an explanation as to why such information or material is
      necessary; and an explanation of the applicable claims procedure.

(d)   Should the claim be denied in whole or in part and should the claimant be
      dissatisfied with the Claims Reviewer's disposition of the claimant's
      claim, the claimant may have a full and fair review of the claim by the
      Committee upon written request submitted by the claimant or the claimant's
      duly authorized representative and received by the Committee within sixty
      (60) days after the claimant receives written notification that the
      claimant's claim has been denied. In connection with such review, the
      claimant or the claimant's duly authorized representative shall be
      entitled to review pertinent documents and submit the claimant's views as
      to the issues, in writing. The Committee shall act to deny or accept the
      claim within sixty (60) days after receipt of the claimant's written
      request for review unless special circumstances require the extension of
      such 60-day period. If such extension is necessary, the Committee shall
      provide the claimant with written notification of such extension before
      the expiration of such initial 60-day period. In all events, the Committee
      shall act to deny or accept the claim within 120 days of the receipt of
      the claimant's written request for review. The action of the Committee
      shall be in the form

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      of a written notice to the claimant and its contents shall include all of
      the requirements for action on the original claim.

(e)   In no event may a claimant commence legal action for benefits the claimant
      believes are due the claimant until the claimant has exhausted all of the
      remedies and procedures afforded the claimant by this Article VII.

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                                  ARTICLE VIII
                            AMENDMENT AND TERMINATION

SECTION 8.01 AMENDMENT OF THE PLAN.

The Bank may from time to time and at any time amend the Plan; provided,
however, that such amendment may not adversely affect the rights of any
Participant or beneficiary with respect to any benefit under the Plan to which
the Participant or beneficiary may have previously become entitled prior to the
effective date of such amendment without the consent of the Participant or
beneficiary. The Committee shall be authorized to make minor or administrative
changes to the Plan, as well as amendments required by applicable federal or
state law (or authorized or made desirable by such statutes); provided, however,
that such amendments must subsequently be ratified by the Board of Directors.

SECTION 8.02 TERMINATION OF THE PLAN.

The Bank may at any time terminate the Plan; provided, however, that such
termination may not adversely affect the rights of any Participant or
beneficiary with respect to any benefit under the Plan to which the Participant
or beneficiary may have previously become entitled prior to the effective date
of such termination without the consent of the Participant or beneficiary. Any
amounts credited to the supplemental accounts of any Participant shall remain
subject to the provisions of the Plan and no distribution of benefits shall be
accelerated because of termination of the Plan.

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                                   ARTICLE IX
                               GENERAL PROVISIONS

SECTION 9.01 UNFUNDED, UNSECURED PROMISE TO MAKE PAYMENTS IN THE FUTURE.

The right of a Participant or any beneficiary to receive a distribution under
this Plan shall be an unsecured claim against the general assets of the Bank or
its Affiliates, and neither a Participant, nor his designated beneficiary or
beneficiaries, shall have any rights in or against any amount credited to any
account under this Plan or any other assets of the Bank or an Affiliate. The
Plan at all times shall be considered entirely unfunded both for tax purposes
and for purposes of Title I of ERISA. Any funds invested hereunder shall
continue for all purposes to be part of the general assets of the Bank or an
Affiliate and available to its general creditors in the event of bankruptcy or
insolvency. Accounts under this Plan and any benefits which may be payable
pursuant to this Plan are not subject in any manner to anticipation, sale,
alienation, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of a Participant or a Participant's beneficiary. The
Plan constitutes a mere promise by the Bank or Affiliate to make benefit
payments in the future. No interest or right to receive a benefit may be taken,
either voluntarily or involuntarily, for the satisfaction of the debts of, or
other obligations or claims against, such Participant or beneficiary, including
claims for alimony, support, separate maintenance and claims in bankruptcy
proceedings.

SECTION 9.02 COMMITTEE AS PLAN ADMINISTRATOR.

(a)   The Plan shall be administered by the Committee designated by the Board of
      Directors of the Bank.

(b)   The Committee shall have the authority, duty and power to interpret and
      construe the provisions of the Plan as it deems appropriate. The Committee
      shall have the duty and responsibility of maintaining records, making the
      requisite calculations and disbursing the payments hereunder. In addition,
      the Committee shall have the authority and power to delegate any of its
      administrative duties to employees of the Bank or an Affiliate, as they
      may deem appropriate. The Committee shall be entitled to rely on all
      tables, valuations, certificates, opinions, data and reports furnished by
      any actuary, accountant, controller, counsel or other person employed or
      retained by the Bank with respect to the Plan. The interpretations,
      determinations, regulations and calculations of the Committee shall be
      final and binding on all persons and parties concerned.

SECTION 9.03 EXPENSES.

Expenses of administration of the Plan shall be paid by the Bank or an
Affiliate.

SECTION 9.04 STATEMENTS.

The Committee shall furnish individual annual statements of accrued benefits to
each Participant, or current beneficiary, in such form as determined by the
Committee or as required by law.

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SECTION 9.05 RIGHTS OF PARTICIPANTS AND BENEFICIARIES.

(a)   The sole rights of a Participant or beneficiary under this Plan shall be
      to have this Plan administered according to its provisions and to receive
      whatever benefits he or she may be entitled to hereunder.

(b)   Nothing in the Plan shall be interpreted as a guaranty that any funds in
      any trust which may be established in connection with the Plan or assets
      of the Bank or an Affiliate will be sufficient to pay any benefit
      hereunder.

(c)   The adoption and maintenance of this Plan shall not be construed as
      creating any contract of employment or service between the Bank or an
      Affiliate and any Participant or other individual. The Plan shall not
      affect the right of the Bank or an Affiliate to deal with any Participants
      in employment or service respects, including their hiring, discharge,
      compensation, and other conditions of employment or service.

SECTION 9.06 INCOMPETENT INDIVIDUALS.

The Committee may, from time to time, establish rules and procedures which it
determines to be necessary for the proper administration of the Plan and the
benefits payable to a Participant or beneficiary in the event that such
Participant or beneficiary is declared incompetent and a conservator or other
person is appointed and legally charged with that Participant's or beneficiary's
care. Except as otherwise provided for herein, when the Committee determines
that such Participant or beneficiary is unable to manage his financial affairs,
the Committee may pay such Participant's or beneficiary's benefits to such
conservator, person legally charged with such Participant's or beneficiary's
care, or institution then contributing toward or providing for the care and
maintenance of such Participant or beneficiary. Any such payment shall
constitute a complete discharge of any liability of the Bank or an Affiliate and
the Plan for such Participant or beneficiary.

SECTION 9.07 SALE, MERGER OR CONSOLIDATION OF THE BANK.

The Plan may be continued after a sale of assets of the Bank, or a merger or
consolidation of the Bank into or with another corporation or entity only if,
and to the extent that, the transferee, purchaser or successor entity agrees to
continue the Plan. Additionally, upon a merger, consolidation or other change in
control any amounts credited to Participant's deferral accounts shall be placed
in a grantor trust to the extent not already in such a trust. In the event that
the Plan is not continued by the transferee, purchaser or successor entity, then
the Plan shall be terminated subject to the provisions of Section 8.02 of the
Plan. Any legal fees incurred by a Participant in determining benefits to which
such Participant is entitled under the Plan following a sale, merger, or
consolidation of the Bank or an Affiliate of which the Participant is an
Employee or, if applicable, a member of the Board of Directors, shall be paid by
the resulting or succeeding entity.

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SECTION 9.08 LOCATION OF PARTICIPANTS.

Each Participant shall keep the Bank informed of his current address and the
current address of his designated beneficiary or beneficiaries. The Bank shall
not be obligated to search for any person. If such person is not located within
three (3) years after the date on which payment of the Participant's benefits
payable under this Plan may first be made, payment may be made as though the
Participant or his beneficiary had died at the end of such three-year period.

SECTION 9.09 LIABILITY OF THE BANK AND ITS AFFILIATES.

Notwithstanding any provision herein to the contrary, neither the Bank nor any
individual acting as an employee or agent of the Bank shall be liable to any
Participant, former Participant, beneficiary, or any other person for any claim,
loss, liability or expense incurred in connection with the Plan, unless
attributable to fraud or willful misconduct on the part of the Bank or any such
employee or agent of the Bank.

SECTION 9.10 GOVERNING LAW.

All questions pertaining to the construction, validity and effect of the Plan
shall be determined in accordance with the laws of the United States and, to the
extent not preempted by such laws, by the laws of the State of Connecticut.

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Having been adopted by its Board of Directors, this Plan is executed by its duly
authorized officer this ____day of ________, 2004.

                                        NAUGATUCK VALLEY SAVINGS AND LOAN

Attest:

___________________________             By: ____________________________________
Corporate Secretary                         For the Entire Board of Directors

                                       16<PAGE>

                                                                    EXHIBIT 10.8

                                     FORM OF
                        NAUGATUCK VALLEY SAVINGS AND LOAN
                        CHANGE IN CONTROL SEVERANCE PLAN

      SECTION 1. PLAN PURPOSE. The purpose of the Naugatuck Valley Savings and
Loan Change in Control Severance Plan is to assure for Naugatuck Valley Savings
and Loan the continued services of Bank employees in the event of a Change in
Control of Naugatuck Valley Financial Corporation or the Bank. The benefits
contemplated by the Plan recognize the value of the services and contributions
of Eligible Employees and seek to minimize the adverse effects upon the Bank of
uncertainties regarding continued employment, reduced employee benefits,
management changes and relocations that may arise in the event of a Change in
Control. The Board of Directors of the Bank further believes that the Plan will
aid the Bank in attracting and retaining the highly qualified employees
essential to its continued success.

      SECTION 2. DEFINITIONS. Whenever used herein, the following terms shall
have the meanings set forth below:

      (a)   "Affiliate" means any parent or subsidiary corporation affiliated
with the Bank.

      (b)   "Annual Compensation" means [REGULAR BASE SALARY OR TOTAL HOURLY
WAGES PAID DURING THE MOST RECENT 12 MONTHS ENDED AS OF THE DATE OF TERMINATION
OF EMPLOYMENT, WHICH IS INCLUDIBLE IN THE GROSS INCOME OF THE ELIGIBLE EMPLOYEE
FOR FEDERAL INCOME TAX PURPOSES. ANNUAL COMPENSATION SHALL EXCLUDE OVERTIME,
BONUSES, PREMIUMS, INCENTIVE COMPENSATION IN ANY FORM, TRAVEL AND SIMILAR
BUSINESS EXPENSES OR ALLOWANCE AND ANY OTHER SPECIAL PAYMENTS.]

      (c)   "Bank" means Naugatuck Valley Savings and Loan, or any successor
thereto.

      (d)   "Change in Control" means any of the following:

            (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: A report on
            Schedule 13D or another form or schedule (other than Schedule 13G)
            is filed or is required to be filed 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;

<PAGE>

            (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 stockholders) by a vote of at least
            two-thirds of the directors who were directors at the beginning of
            the period shall be deemed to have been a director at the beginning
            of the two-year period; or

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

            A Change in Control shall not occur as a result of a mutual holding
company reorganization or second-step conversion of the Bank from the mutual to
the stock form of ownership.

      (e)   "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

      (f)   "Company" means Naugatuck Valley Financial Corporation or any
successor thereto.

      (g)   "Comparable Position" means a position which:

            (i)   requires skills and knowledge similar to that required for the
            Eligible Employee's position immediately prior to a Change in
            Control; or

            (ii)  involves a work schedule that is substantially similar to that
            followed by the Eligible Employee immediately prior to a Change in
            Control.

            A position shall not fail to be a "Comparable Position," solely
            because it results in a change in the Eligible Employee's (A) title,
            (B) supervisory authority or (C) reporting responsibilities in
            connection with a Change in Control.

      (h)   "Disqualified Individual" has the same meaning as such term is
defined in Section 280G of the Code and applicable regulations issued
thereunder.

      (i)   "Eligible Employee" means any Employee of the Bank or an affiliate
who has been employed by the Bank for at least [________] as of the date of a
Change in Control and whose employment status, within [________] following a
change in control, is affected in any one of the following ways without prior
consent:

            (i)   The Eligible Employee is involuntarily terminated by the
            Company, the Bank or an Affiliate for any reason other than Just
            Cause.

                                       2
<PAGE>

            (ii)  The Eligible Employee voluntarily terminates employment
            following a relocation of employment to a work site that is more
            than 35 miles from its location immediately prior to the Change in
            Control.

            (iii) The Eligible Employee voluntarily terminates employment due to
            a reduction in base salary below the amount being paid immediately
            prior to the Change in Control.

            (iv)  The Eligible Employee voluntarily terminates employment due to
            a failure by the Company or an Affiliate to offer or employ the
            Eligible Employee in a Comparable Position.

      (j) "Employee" means any person who has been employed by the Bank or any
Affiliate for at least [________] days, on a full-time salaried basis,
immediately prior to the Change in Control, excluding any person who is covered
by an employment contract, change in control or severance agreement with the
Bank or any Affiliate.

      (k) "Excess Parachute Payment" has the same meaning as such term is
defined in Section 280G of the Code and applicable regulations issued
thereunder.

      (l) "Just Cause," with respect to termination of employment, means an act
or acts of personal dishonesty, incompetence, willful misconduct, breach of
fiduciary duty involving personal profit, failure to perform stated duties,
willful violation of any law, rule, or regulation (other than traffic violations
or similar offenses) or final cease-and-desist order. In determining
incompetence, acts or omissions shall be measured against standards generally
prevailing in the banking industry, as determined by the Boards of Directors of
the Bank or the Company.

      (m) "Leave of Absence" means solely for Plan purposes, the taking of an
authorized or approved leave of absence under the provisions of (i) the Family
and Medical Leave Act ("FMLA"), (ii) any state law providing quantitatively
similar benefits to the FMLA, or (iii) an authorized leave policy of the Bank or
an Affiliate.

      (n) "Plan" means this Naugatuck Valley Savings and Loan Change in Control
Severance Plan, as may be amended from time to time.

      (o) "Year of Service" means each consecutive 12 month period, beginning
with an employee's date of hire and continuing through a termination of
employment, in which an Employee is credited with at least one hour of service
in each month. The taking of a Leave of Absence shall be counted toward a Year
of Service if such time period would otherwise qualify toward completion of a
Year of Service for purposes of the Plan. For purposes of determining a
severance benefit under this Plan, partial years will be rounded up to the
nearest whole Year of Service.

                                       3
<PAGE>

      SECTION 3. SEVERANCE BENEFIT TO ELIGIBLE EMPLOYEES.

      (a)   Each Eligible Employee shall be entitled to receive a severance
benefit equal to [ONE-TWELFTH (1/12) OF HIS OR HER ANNUAL COMPENSATION FOR EACH
YEAR OF SERVICE WITH THE BANK OR AN AFFILIATE. NOTWITHSTANDING THE FOREGOING, AN
ELIGIBLE EMPLOYEE SHALL BE ENTITLED TO A MAXIMUM SEVERANCE BENEFIT EQUAL TO
______________________________]

      (b)   All severance payments shall be made in a single lump sum payment,
payable within ten (10) days of the Eligible Employee's termination of
employment.

      (c)   Notwithstanding anything in the Plan to the contrary, if all or a
portion of a severance benefit payment to an Eligible Employee who is a
Disqualified Individual is considered an Excess Parachute Payment under Section
280G of the Code, the payment shall be reduced to the maximum amount that does
not constitute an Excess Parachute Payment.

      (d)   The Eligible Employee shall not be required to mitigate damages in
relation to a severance benefit by seeking other employment or otherwise, nor
shall the amount of a severance benefit be reduced by any compensation earned by
the Eligible Employee as a result of employment obtained after termination of
employment hereunder.

      SECTION 4. WRITTEN ACKNOWLEDGMENT. As a condition to receiving any
payments pursuant to Section 3 of this Plan, the Eligible Employee shall deliver
to the Bank or any applicable Affiliate on the date of his or her employment
termination a written Acknowledgment signed by the Eligible Employee stating (i)
that the severance payment to be made to the Eligible Employee pursuant to
paragraph 3 above is in full and complete satisfaction of all liabilities and
obligations of the Bank and its Affiliates, directors, officers, employees and
agents, except for any tax-qualified plan benefits that may be due and owing and
except for any liabilities or obligations that may be required by law, and (ii)
that the Bank or any Affiliate shall not have any other liabilities or
obligations to the Eligible Employee relating to the Eligible Employee's
employment by the Bank or any Affiliate.

      SECTION 5. LEGAL FEES AND EXPENSES. All reasonable legal fees and other
expenses paid or incurred by a party hereto pursuant to any dispute or question
of interpretation relating to this Plan shall be paid or reimbursed by the
prevailing party in any legal judgment, arbitration or settlement.

      SECTION 6. REQUIRED PROVISIONS.

      (a)   The Bank or any of its Affiliates may terminate an employee's
employment at any time, but any termination by the Bank or any of its
Affiliates, other than termination for Just Cause, shall not prejudice that
employee's right to compensation under this Plan. An employee shall not have the
right to receive compensation for any period after termination for Just Cause as
defined in Section 2(g) of this Plan.

      (b)   If an Employee is suspended and/or temporarily prohibited from
participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) or 8(g)(1) of the

                                       4
<PAGE>

Federal Deposit Insurance Act, 12 U.S.C. Section 1818(e)(3) or (g)(1), the
Bank's obligations under this Plan 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 the Employee all or part of
the compensation withheld while their obligations were suspended and (ii)
reinstate (in whole or in part) any of the obligations which were suspended.

      (c)   If an employee 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 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 Plan 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 Plan shall be terminated,
except to the extent it is determined that the Plan's continuation is necessary
for the continued operation of the institution: (i) by the Bank's appropriate
federal banking agency as defined at 12 U.S.C. Section 1813(g) or by the Federal
Deposit Insurance Corporation (FDIC), at the time of entry 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; or (ii) by the Bank's
appropriate federal banking agency as defined at 12. U.S.C. Section 1813(g), at
the time such agency approves a supervisory merger to resolve problems related
to the operation of the Bank, or when the Bank is determined by the agency 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 pursuant to this Plan, or otherwise, are subject
to and conditioned upon their compliance with 12 U.S.C. Section 1828(k) and any
regulations promulgated thereunder.

      SECTION 7. ADMINISTRATIVE PROVISIONS.

      (a)   The administrator of the Plan shall be under the supervision of the
Board of Directors of the Bank or a committee appointed by the Board of
Directors of the Bank (the "Board"). It shall be a principal duty of the Board
to see that the Plan is carried out, in accordance with its terms, for the
exclusive benefit of persons entitled to participate in the Plan and without
discrimination among Participants. The Board will have full power to administer
the Plan in all of its details; provided, however, that the Board remains
subject to the requirements of ERISA. For this purpose, the Board's powers will
include, but will not be limited to, the following authority, in addition to all
other powers provided for by this Plan: (i) to make and enforce such rules and
regulations as it deems necessary or proper for the efficient administration of
the Plan; (ii) to interpret the Plan, its interpretation thereof in good faith
to be final and conclusive on all persons claiming benefits under the Plan;
(iii) to decide all questions concerning the Plan and the eligibility of any
person to participate in the Plan; (iv) to compute

                                       5
<PAGE>

the amount of severance benefits payable to any Eligible Employee or other
person in accordance with the provisions of the Plan, and to determine the
person or persons to whom such benefits will be paid; (v) to authorize severance
benefits; (vi) to appoint such agents, counsel, accountants, consultants and
actuaries as may be required to assist in administering the Plan; and (vii) to
allocate and delegate its responsibilities under the Plan and to designate other
persons to carry out any of its responsibilities under the Plan, any such
allocation, delegation or designation to be by written instrument and in
accordance with Section 405 of ERISA, if applicable.

      (b)   The Board will be a "named fiduciary" for purposes of Section
402(a)(1) of ERISA with authority to control and manage the operation and
administration of the Plan, and will be responsible for complying with all of
the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of
ERISA.

      SECTION 8. CLAIMS AND REVIEW PROCEDURES.

      (a)   If any person believes he is being denied any rights or benefits
under the Plan, such person may file a claim in writing with the Board. If any
such claim is wholly or partially denied, the Board will notify the claimant of
its decision in writing. Such notification will be written in a manner
calculated to be understood by the claimant and will contain: (i) specific
reasons for the denial, (ii) specific references to pertinent Plan provisions,
(iii) a description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or
information is necessary and (iv) information as to the steps to be taken if the
claimant wishes to submit a request for review. Such notification will be given
within 90 days after the claim is received by the Board (or within 180 days, if
special circumstances require an extension of time for processing the claim, and
if written notice of such extension and circumstances is given to the claimant
within the initial 90 day period). If such notification is not given within such
period, the claim will be considered denied as of the last day of such period
and the claimant may request a review of the claim.

      (b)   Within 60 days after the date on which a claimant receives a written
notice of a denied claim (or, if applicable, within 60 days after the date on
which such denial is considered to have occurred) the claimant (or his duly
authorized representative) may (i) file a written request with the Board for a
review of his denied claim and of pertinent documents and (ii) submit written
issues and comments to the Board. The Board will notify the claimant of its
decision in writing. Such notification will be written in a manner calculated to
be understood by the claimant and will contain specific reasons for the decision
as well as specific references to pertinent Plan provisions. The decision on
review will be made within 60 days after the request for review is received by
the Board (or within 120 days, if special circumstances require an extension of
time for processing the request, such as an election by the Board to hold a
hearing, and if written notice of such extension and circumstances is given to
the claimant within the initial 60 day period). If the decision on review is not
made within such period, the claim will be considered denied.

      SECTION 9. GOVERNING LAW. To the extent not pre-empted by federal law,
this plan shall be governed by the laws of the State of Connecticut.

                                       6
<PAGE>

      SECTION 10. TERMINATION OR AMENDMENT. This plan may be amended or
terminated at any time prior to a Change in Control, in the full discretion of
the Board of Directors of the Bank. This plan may not be terminated or amended
at the time of or following a Change in Control.

      Having been duly adopted by the Board of Directors of the Bank, this Plan
is executed by a duly authorized officer of the Bank on this _____ day of
______________________, 2004.

ATTEST:                             NAUGATUCK VALLEY SAVINGS AND LOAN

____________________                By:  _______________________________________
                                         For the Entire Board of Directors

                                       7

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