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                                                                    EXHIBIT 10.2

                         PATRIOT NATIONAL BANCORP, INC.

                       2001 STOCK APPRECIATION RIGHTS PLAN

       PATRIOT NATIONAL BANCORP, INC., a corporation organized and existing
under the laws of Connecticut (the "Corporation"), has adopted its 2001 Stock
Appreciation Rights Plan (this "Plan") with the intention of promoting the
interests of the Corporation and the shareholders of the Corporation by
providing certain officers of the Corporation and of its Subsidiaries with
appropriate incentives and rewards to encourage them to enter into or continue
in the employ of the Corporation and/or such Subsidiaries.

I.     PURPOSES OF THE PLAN

       The purposes of this Plan are as follows:

       1.1.   To provide an additional incentive for such officers of the
Corporation and its Subsidiaries to further the growth, development and
financial success of the Corporation by personally benefiting from price
appreciation of the capital stock of the Corporation; and

       1.2.   To enable the Corporation to obtain and retain the services of
such officers of the Corporation and its Subsidiaries considered important to
the long-range success of the Corporation by offering them an opportunity to
benefit from the appreciation of the Corporation's capital stock which will
reflect such growth, development and financial success.

II.    DEFINITIONS; RULES OF CONSTRUCTION

       2.1.   DEFINITIONS. The terms defined in this Article shall have the
following meanings for purposes of this Plan:

              (a)   "Actual Net Income" shall mean net income of the
       Corporation, calculated in accordance with GAAP for the relevant
       measuring period.

              (b)   "Award" means any Stock Appreciation Right granted under the
       Plan.

              (c)   "Award Agreement" shall mean any agreement between the
       Corporation and a Participant evidencing an Award.

              (d)   "Board of Directors" shall mean the Board of Directors of
       the Corporation.

              (e)   "Internal Revenue Code" shall mean the Internal Revenue Code
       of 1986, as amended.

              (f)   "Change in Control" means:

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                    (i)   a change in control of the direction and
              administration of the Corporation's business of a nature that
              would be required to be reported in response to Item 6(e) of
              Schedule 14A of Regulation 14A (or any successor rule or
              regulation) promulgated under the Exchange Act, whether or not the
              Corporation is then subject to such reporting requirements;

                    (ii)  any person (as such term is used in Sections 14(d) and
              14(d)(2) of the Exchange Act but excluding any employee benefit
              plan of the Corporation) is or becomes the "beneficial owner" (as
              defined in Rule 13d-3 under the Exchange Act), directly or
              indirectly, of securities of the Corporation representing 35% or
              more of the combined voting power of the Corporation's outstanding
              securities then entitled ordinarily (and apart from rights
              accruing under special circumstances) to vote for the election of
              directors; provided, however, that any increase in beneficial
              ownership of securities of the Corporation by Angelo DeCaro
              (and/or his family members or family trusts) or Fred DeCaro
              (and/or his family members or family trusts) shall not constitute
              a "Change in Control";

                    (iii) the Board of Directors shall approve a sale of all or
              substantially all of the assets of the Corporation;

                    (iv)  the Board of Directors of Patriot National Bank (the
              "Bank") shall approve a sale of all or substantially all of the
              assets of the Bank; or

                    (v)   the Board of Directors of the Corporation or the Board
              of Directors of the Bank shall approve any merger, consolidation
              or like business combination or reorganization of the Corporation
              or the Bank, respectively, the consummation of which would result
              in the occurrence of any event described in clause (ii) above.

              (g)   "Committee" shall mean such committee of the Board of
       Directors that the Board of Directors designates to allocate among
       Participants Awards which may be granted pursuant to the terms of this
       Plan or, in the absence of any such designation, the Board of Directors.
       Any such committee so designated by the Board of Directors shall be
       composed of members who meet any qualification prescribed in Rule 16b-3.

              (h)   "Common Stock" shall mean the Common Stock, $2.00 par value,
       of the Corporation.

              (i)   "Continuing Directors" means each director of the
       Corporation as of the effective date of this Plan and any successor to
       any such director and any additional director who (i) after the effective
       date of this Plan was nominated or selected by a majority of the
       Continuing Directors in office at the time of his or her nomination or
       selection and (ii) at the time of his or her nomination or selection is
       not an "affiliate" or "associate" (as defined in Regulation 12B under the
       Exchange Act) of any person who is the beneficial owner, directly or
       indirectly, of securities representing 25% or more of the combined voting
       power of the Corporation's outstanding securities then entitled
       ordinarily to vote for the election of directors.

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              (j)   "Corporation" shall mean Patriot National Bancorp, Inc., a
       corporation organized and existing under the laws of Connecticut.

              (k)   "Disability" shall mean: (i) any physical or mental
       condition that would qualify a Participant for a disability benefit under
       any long-term disability plan maintained by the Corporation or a
       Subsidiary of the Corporation and applicable to such Participant or (ii)
       when used in connection with the exercise of an Incentive Stock Option
       following termination of employment, disability within the meaning of
       Section 22(e)(3) of the Internal Revenue Code.

              (l)   "Exchange Act" shall mean the Securities Exchange Act of
       1934, as amended.

              (m)   "Fair Market Value" shall mean the average closing price per
       share of the Common Stock for the 10 trading days immediately preceding
       the applicable date as reported on the composite tape of the principal
       national stock exchange on which the Common Stock is then listed or, if
       the Common Stock is not listed on any national stock exchange, the
       closing price per share of Common Stock as reported on The NASDAQ Stock
       Market, Inc. If the Common Stock is not listed on any national stock
       exchange or quoted on The NASDAQ Stock Market, Inc., Fair Market Value
       shall mean the average bid price per share of the Common Stock for the 10
       trading days immediately preceding the applicable date as reported on
       such reporting system as shall be selected by the Committee. If the
       Common Stock is not publicly traded, the Committee shall determine the
       Fair Market Value to be the valuation determined by a qualified bank
       stock analyst or investment banking firm specializing in bank stock.

              (n)   "For Cause" shall mean (i) the continued failure by the
       Participant substantially to perform his or her duties as an officer or
       employee of the Corporation (other than any such failure resulting from
       his or her incapacity due to physical or mental illness) or (ii) the
       engaging by the Participant in conduct which is materially injurious to
       the Corporation, monetarily or otherwise, in either case as determined by
       the Board of Directors.

              (o)   "Participant" shall mean any officer of the Corporation or
       any Subsidiary who is granted an Award pursuant to this Plan which
       remains outstanding.

              (p)   "Plan" shall mean this 2001 Stock Appreciation Rights Plan,
       as amended from time to time.

              (q)   "QDRO" shall mean a qualified domestic relations order as
       defined in Section 414(p) of the Internal Revenue Code or Title I,
       Section 206(d)(3) of the Employee Retirement Income Security Act of 1974,
       as amended (to the same extent as if this Plan were subject thereto), or
       the applicable rules thereunder.

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              (r)   "Rule 16b-3" shall mean Rule 16b-3 under Section 16 of the
       Exchange Act, as amended from time to time or any rule adopted in
       substitution therefor.

              (s)   "Stock Appreciation Amount" is the amount that the holder of
       a Stock Appreciation Right is entitled to receive, subject to Stock
       Appreciation Restrictions and other terms and conditions set forth in an
       Award Agreement, calculated to be the appreciation in the value of a
       share of Common Stock as of the date the Stock Appreciation Right is
       exercised, above a base price established in the Award Agreement.

              (t)   "Stock Appreciation Restriction" means the restriction on
       Stock Appreciation Rights under Section 5.2.

              (u)   "Stock Appreciation Rights" means an Award under
       Section 5.1.

              (v)   "Subsidiary" shall mean a "subsidiary corporation" within
       the meaning Section 424(f) of the Internal Revenue Code.

              (w)   "Target Net Income" shall mean projected consolidated net
       income of the Corporation set forth in any Award Agreement granting Stock
       Appreciation Rights for purposes of calculating the Stock Appreciation
       Restriction.

              (x)   "10% Shareholder" shall mean any person who, at the time an
       Award is granted, owns shares of the Corporation or any Subsidiary or
       parent corporation of the Corporation which possess more than 10% of the
       total combined voting power of all classes of shares of the Corporation
       or of any Subsidiary or parent corporation of the Corporation.

       2.2.   RULES OF CONSTRUCTION. For purposes of this Plan and any Award
Agreement, unless otherwise expressly provided or the context otherwise
requires, the terms defined in this Plan include the plural and the singular,
and pronouns of either gender or neutral shall include, as appropriate, the
other pronoun forms.

III.   CHANGE OF CONTROL; ADJUSTMENTS

       3.1.   ACCELERATION OF EXERCISABILITY UPON A CHANGE IN CONTROL. In the
event of a Change in Control of the Corporation, all then outstanding Awards
shall immediately become exercisable in full. The Committee, in its discretion,
may determine that, upon the occurrence of a transaction described in clauses
(i) through (v) of the definition of "Change in Control," each Award outstanding
under this Plan shall terminate within (x) a specified number of days after
notice to the Participant or (y) on the closing date of the transaction giving
rise to a Change in Control of the Corporation, and such Participant shall
receive, with respect to each share subject to such Award, cash in an amount
equal to the excess of the Fair Market Value of such share immediately prior to
the occurrence of such transaction over the exercise price per share (if any) of
such Award.

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       3.2.   ADJUSTMENTS. Awards granted under this Plan shall be subject to
adjustment as provided in Article VIII of this Plan.

IV.    GRANT OF AWARDS TO OFFICERS

       4.1.   ELIGIBILITY. The Committee may grant Awards, in such amounts and
with such terms and conditions as the Committee may determine, subject to the
provisions of the Plan. The persons who shall be eligible to receive Awards
under this Article IV shall be officers of the Corporation or its Subsidiaries
(including officers of the Corporation or its Subsidiaries, whether or not they
are directors of the Corporation or its Subsidiaries) as the Committee may
select from time to time. Directors who are not employees or officers of the
Corporation shall not be eligible to receive Awards under this Plan. Each Award
granted pursuant to this Article IV shall be clearly identified in the
applicable Award Agreement as a Stock Appreciation Right. The terms of each type
of Award need not be identical, and the Committee need not treat Participants
uniformly.

       4.2.   PERFORMANCE BASED AWARDS. The Committee may also grant Awards
under this Plan subject to the attainment of such performance goals as the
Committee may establish.

V.     STOCK APPRECIATION RIGHTS

       5.1.   AWARD DESCRIPTION. Subject to the provisions of the Plan, the
Committee may grant Stock Appreciation Rights and impose such restrictions or
conditions to the vesting of such Stock Appreciation Rights as it, in its sole
discretion, deems appropriate, including the attainment of performance goals.
Each Stock Appreciation Right is the right to receive, upon surrender of the
right, but without other payment, the Stock Appreciation Amount, if any, payable
in (i) cash, (ii) shares of Common Stock or (iii) such other form or combination
of forms of payout, at times and upon conditions (which may include a Change of
Control), as may be approved by the Committee. Without limiting anything in the
foregoing Plan, the Committee hereby grants to each of Robert F. O'Connell,
Philip W. Wolford and Martin G. Noble Stock Appreciation Rights in respect of
6,000 shares of Common Stock.

       5.2.   STOCK APPRECIATION RESTRICTIONS. Each Stock Appreciation Right
shall be subject to forfeiture, in whole or in part, on the twelve month
anniversary of the grant date according to the following Stock Appreciation
Restrictions: (i) as to 100% of the Stock Appreciation Right, in the event that
Actual Net Income is less than ninety percent (90%) of Target Net Income for the
fiscal year 2001; (ii) as to eighty three percent (83%) of the Stock
Appreciation Right, in the event that Actual Net Income is at least ninety
percent (90%) but less than one hundred and ten percent (110%) of Target Net
Income for the fiscal year 2001; and (iii) as to forty two percent (42%) of the
Stock Appreciation Right, in the event that Actual Net Income is at least one
hundred and ten percent (110%) but less than one hundred twenty percent (120%)
of Target Net Income for the fiscal year 2001. No Stock Appreciation Restriction
shall apply in the event that Actual Net Income is at least one hundred twenty
percent (120%) of Target Net Income for fiscal year 2001.

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       5.3.   EXERCISABILITY AND TERM OF STOCK APPRECIATION RIGHTS.

              (a)   A Stock Appreciation Right shall become cumulatively
       exercisable (i) as to 20% of the Stock Appreciation Amount, if any,
       covered thereby on the first anniversary of March 31, 2001, subject to
       the Stock Appreciation Restriction; (ii) as to an additional 20% of the
       Stock Appreciation Amount, if any, covered thereby on the second
       anniversary of March 31, 2001; (iii) as to an additional 20% of the Stock
       Appreciation Amount, if any, covered thereby on the third anniversary of
       March 31, 2001; (iv) as to an additional 20% of the Stock Appreciation
       Amount, if any, covered thereby on the fourth anniversary of March 31,
       2001; and (v) as to the remaining 20% of the Stock Appreciation Amount,
       if any, on the fifth anniversary of March 31, 2001, unless a different
       period is provided by the Committee at the time of grant thereof. Within
       each of the aforesaid applicable periods, each Stock Appreciation Right
       shall be exercisable as of a specific date (the "Determination Date"),
       which Determination Date shall be the date immediately preceding the date
       on which a written notice is received by the Corporation via overnight
       mail service and the applicable market value shall be the closing price
       of the shares of the Corporation on the Determination Date.
       Alternatively, the Participant may hand-deliver such a written notice to
       the Chairman of the Board of the Corporation after the closing of the
       NASDAQ market on any date during the relevant period stipulating that
       such date shall be the Determination Date in respect of the aforesaid
       procedure.

              (b)   The term of each Stock Appreciation Right shall be a period
       of ten years from the date of grant unless otherwise provided by the
       Committee at the time of grant thereof.

       5.4.   TRANSFER OF STOCK APPRECIATION RIGHTS. Stock Appreciation Rights
may not be sold, assigned, transferred, pledged or otherwise encumbered, except
as permitted by this Plan, prior to the first anniversary of the date of grant.
Following the first anniversary of the date of grant, Stock Appreciation Rights
may not be sold, assigned, transferred, pledged or otherwise encumbered, except
as permitted by this Plan, by will or by the laws of descent and distribution.

       5.5.   BASE PRICE. Unless the Committee provides otherwise, and such
provision is reflected in the Award Agreement, the minimum base price of a Stock
Appreciation Right granted under this Plan shall be not less than the Fair
Market Value of the shares of Common Stock underlying the Award as of March 31,
2001.

VI.    AWARD AGREEMENTS

       6.1.   AWARD AGREEMENTS. Each Award under this Plan shall be evidenced by
an Award Agreement in a form approved by the Committee setting forth the number
of shares of Common Stock subject to the Award, and the price and term of the
Award. The Award Agreement shall also set forth (or incorporate by reference)
the other material terms and conditions applicable to the Award as determined by
the Committee consistent with the limitations of this Plan.

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       6.2.   INCORPORATED PROVISIONS. Award Agreements shall be subject to the
terms of this Plan and shall be deemed to include the following terms:

              (a)   Non-Assignability. The Award shall not be assignable nor
       transferable, except (i) by will or by the laws of descent and
       distribution or (ii) pursuant to a QDRO or any other exception to
       transfer restrictions expressly permitted by the Committee and set forth
       in the Award Agreement (or an amendment thereto). The restrictions on
       exercise and transfer shall not be deemed to prohibit, to the extent
       permitted by the Committee, transfers without consideration for estate
       and financial planning purposes and transfers to such other persons or in
       such other circumstances as the Committee may in the Award Agreement
       expressly permit. During the lifetime of a Participant, the Award shall
       be exercised only by such Participant or by his or her guardian or legal
       representative, except as expressly otherwise provided consistent with
       the foregoing transfer restrictions.

              (b)   Rights as Shareholder. A Participant shall have no rights as
       a holder of Common Stock by virtue of an Award.

              (c)   Withholding. The Participant shall be responsible for
       payment of any taxes or similar charges required by law to be withheld
       with respect to the exercise of an Award, and these obligations shall be
       paid by the Participant on or prior to the delivery of shares of Common
       Stock upon exercise of an Award.

       6.3.   CONTRACT RIGHTS, FORMS AND SIGNATURES. Any obligation of the
Corporation with respect to an Award shall be based solely upon the contractual
obligations created by this Plan and the applicable Award Agreement. No Award
shall be enforceable until the Award Agreement has been signed by the
Participant and on behalf of the Corporation. By executing an Award Agreement, a
Participant shall be deemed to have accepted and consented to the terms of this
Plan, and any action taken in good faith under this Plan by and within the
discretion of the Committee or its delegates. Except as expressly provided in
this Plan or in an Award Agreement, there shall be no third party beneficiaries
of the obligations of the Corporation under such Award Agreement.

VII.   EFFECT OF TERMINATION OF EMPLOYMENT

       7.1.   TERMINATION OF STOCK APPRECIATION RIGHTS. Subject to such other
provisions as the Committee may set forth in the applicable Award Agreement, and
to the Committee's amendment authority under the Plan, unless the applicable
Award Agreement provides otherwise, upon termination of a Participant's
employment with Corporation or a Subsidiary or parent corporation of the
Corporation, the following shall occur with respect to Stock Appreciation
Rights:

              (a)   Termination other than for Death, Disability or Cause. In
       the event that the employment is terminated for any reason other than
       death, Disability or For Cause, (i) Stock Appreciation Rights granted to
       such Participant, to the extent that they are exercisable at the time of
       such termination, shall remain exercisable until the date that is

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       three months after such termination, on which date they shall expire and
       (ii) such Stock Appreciation Rights granted to such Participant, to the
       extent that they were not exercisable at the time of such termination,
       shall expire at the close of business on the date of such termination.
       Notwithstanding the foregoing, no such Stock Appreciation Right shall be
       exercisable after the expiration of its term.

              (b)   Termination for Death or Disability. In the event that the
       employment is terminated on account of the death or Disability of the
       Participant, (i) Stock Appreciation Rights granted to such Participant,
       to the extent that they were exercisable at the time of such termination,
       shall remain exercisable until the first anniversary of such termination,
       on which date they shall expire and (ii) such Stock Appreciation Rights
       granted to such Participant, to the extent that they were not exercisable
       at the time of such termination, shall expire at the close of business on
       the date of such termination. Notwithstanding the foregoing, no such
       Stock Appreciation Right shall be exercisable after the expiration of its
       term.

              (c)   Termination For Cause. Notwithstanding the foregoing, any
       Stock Appreciation Right outstanding under this Plan shall terminate
       immediately upon any termination of a Participant's employment with the
       Corporation or any Subsidiary or parent corporation of the Corporation
       For Cause.

VIII.  ADJUSTMENTS

       8.1.   CHANGES IN CAPITALIZATION. If there shall occur any
recapitalization, stock split (including a stock split in the form of a stock
dividend), reverse stock split, merger, combination, consolidation, or other
reorganization or any extraordinary dividend or other extraordinary distribution
in respect of the Common Stock (whether in the form of cash, Common Stock or
other property), or any split-up, spin-off, extraordinary redemption,
combination or exchange of outstanding shares of Common Stock, or there shall
occur any other similar transaction or event in respect of the Common Stock, or
a sale of all or substantially all of the assets of the Corporation as an
entirety, then the Committee shall, in the manner and to the extent, if any, as
it deems appropriate and equitable to the Participants and consistent with the
terms of this Plan, and taking into consideration the effect of the event on the
holders of the Common Stock:

              (a)   proportionately adjust any or all of:

                    (i)   the number, amount and type of Common Stock, other
              property or cash subject to any or all outstanding Awards;

                    (ii)  the base price of any or all outstanding Awards;

                    (iii) the securities, cash or other property deliverable
              upon exercise of the outstanding Awards;

                    (iv)  any other terms as are effected by the event; or

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              (b)   subject to any applicable limitations under generally
       accepted accounting principles, provide for:

                    (i)   an appropriate and proportionate cash settlement or
              distribution; or

                    (ii)  the substitution or exchange of any or all outstanding
              Awards.

IX.    ADMINISTRATION

       9.1.   AUTHORITY AND STRUCTURE. This Plan and all Awards granted shall be
administered by the Committee.

       9.2.   CONSTRUCTION AND INTERPRETATION. The Committee shall have the
power to interpret and administer this Plan and the Award Agreements, and to
adopt, amend and rescind related rules and procedures. All questions of
interpretation and determinations with respect to this Plan, the number of
shares of Common Stock and the terms of any Award Agreements, the adjustments
required or permitted by Article VIII. and other determinations hereunder shall
be made by the Committee and its determination shall be final and conclusive
upon all parties in interest. In the event of any conflict between an Award
Agreement and any non-discretionary provision of this Plan, the terms of this
Plan shall govern.

       9.3.   RULE 16B-3 CONDITIONS; BIFURCATION OF PLAN. It is the intent of
the Corporation that this Plan and the Awards hereunder satisfy and be
interpreted in a manner that satisfies any applicable requirements of Rule 16b-3
so that the Participants will be entitled to the benefits of Rule 16b-3 or other
exemptive rules under Section 16 of the Exchange Act and will not be subjected
to avoidable liability thereunder as to Awards intended to be entitled to the
benefits of Rule 16b-3.

       9.4.   DELEGATION AND RELIANCE. The Committee may delegate to the
officers or employees of the Corporation the authority to execute and deliver
those instruments and documents, to do all acts and things, and to take all
other steps deemed necessary, advisable or convenient for the effective
administration of this Plan in accordance with its terms and purpose. In making
any determination or in taking or not taking any action under this Plan, the
Committee may obtain and may rely upon the advice of experts, including
professional advisors to the Corporation. No director, officer, employee or
agent of the Corporation shall be liable for any such action or determination
made or omitted in good faith.

       9.5.   EXCULPATION AND INDEMNITY. Neither the Corporation nor any member
of the Committee, nor any other person participating in any determination of any
question under this Plan, or in the interpretation, administration or
application of this Plan, shall have any liability to any person for any action
taken or not taken in good faith under this Plan or for the failure of an Award
to qualify for exemption or relief under Rule 16b-3 or to comply with any other
law, compliance with which is not required on the part of the Corporation.

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X.     MISCELLANEOUS

       10.1.  NO SPECIAL EMPLOYMENT RIGHTS; NO RIGHT TO AWARD. Nothing contained
in this Plan or any Award or Award Agreement shall confer upon any Participant
any right with respect to the continuation of service with the Corporation or
any Subsidiary or parent corporation of the Corporation or interfere in any way
with the right of the Corporation or any Subsidiary or parent corporation of the
Corporation, subject to the terms of any separate employment agreement to the
contrary, at any time to terminate such employment or to increase or decrease
the compensation of the Participant.

       No person shall have any claim or right to receive an Award hereunder.
The grant of an Award to a Participant at any time shall neither require the
grant of any other Award to such Participant or other person at any time or
preclude the Committee from making subsequent grants to such Participant or any
other person.

       10.2.  EFFECTIVE DATE. This Plan has been adopted by the Board of
Directors. This Plan shall remain in effect until any and all Awards under this
Plan have been exercised, converted or terminated under the terms of this Plan
and the applicable Award Agreements.

       10.3.  SHAREHOLDER APPROVAL. The adoption of this Plan, or any amendment
hereto, shall be subject to approval by shareholders only to the extent required
by (i) the Code, (ii) the applicable rules of any stock exchange or
over-the-counter stock market, or (iii) as otherwise required by law. Any such
approval shall be obtained within the time required by such law or rule. Any
shareholder approval of this Plan or any amendment requiring such approval shall
mean the affirmative vote of at least a majority of the shares of capital stock
present and entitled to vote at a duly held meeting of shareholders, unless a
greater vote is required by state corporate law, the certificate of
incorporation or by-laws of the Corporation or the law or rule requiring
shareholder approval, in which case such greater requirement shall apply.
Shareholder approval may be obtained by written consent in lieu of a meeting to
the extent permitted by applicable state law.

       10.4.  COMPLIANCE WITH LAWS. This Plan, any Award Agreement and the
grant, exercise, conversion and operation of Awards, and the issuance and
delivery of Common Stock and/or other securities or property under this Plan are
subject to compliance with all applicable federal and state laws, rules and
regulations (including, but not limited to, state and federal insider trading,
registration, reporting and other securities laws and federal margin
requirements) and to such approvals by any listing, regulatory or governmental
authority as may, in the opinion of counsel for the Corporation, be necessary or
advisable in connection therewith. Any securities delivered under this Plan
shall be subject to such restrictions (and the person acquiring such securities
shall, if requested by the Corporation, provide such evidence, assurance and
representations to the Corporation as to compliance with any thereof) as the
Corporation may deem necessary or desirable to assure compliance with all
applicable legal requirements.

       The Corporation shall be under no obligation to effect the registration
pursuant to the Securities Act of 1933, as amended, or any regulation
thereunder, of any interests in this Plan or to effect similar compliance under
any state laws.

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       The transfer of any shares of Common Stock hereunder shall be effective
only at such time as counsel to the Corporation shall have determined that the
transfer of such shares is in compliance with all applicable laws, regulations
of governmental authorities and the requirements of any stock exchange on which
shares of Common Stock are traded. The Committee may, in its sole discretion,
defer the effectiveness of any transfer of shares of Common Stock hereunder in
order to allow the transfer of such shares to be made pursuant to registration
or an exemption from registration or other methods for compliance available
under federal or state securities laws. The Committee shall inform the
Participant in writing of its decision to defer the effectiveness of a transfer.
During the period of such deferral in connection with the exercise of an Award,
the Participant may, by written notice, withdraw such exercise and obtain the
refund of any amount paid with respect thereto.

       10.5.  OWNERSHIP AND TRANSFER RESTRICTIONS. Common Stock acquired upon
exercise of Awards, if any, shall be subject to the restrictions on ownership
and transfer set forth in the Award Agreement.

       10.6.  NON-EXCLUSIVITY OF PLAN. Nothing in this Plan shall limit or be
deemed to limit the authority of the Corporation or the Committee to grant
awards or authorize any other compensation, with or without reference to the
Common Stock, under any other plan or authority.

       10.7.  SEVERABILITY. In case any provision of this Plan shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions, or of such provision in any other
jurisdiction, shall not in any way be affected or impaired thereby.

       10.8.  EXPENSES AND RECEIPTS. The expenses of this Plan shall be paid by
the Corporation. Any proceeds received by the Corporation in connection with any
Award will be used for general corporate purposes.

       10.9.  FAILURE TO COMPLY. In addition to the remedies of the Corporation
elsewhere provided for herein, failure by a Participant (or beneficiary or
transferee) to comply with any of the terms and conditions of this Plan or the
applicable Award Agreement, unless such failure is remedied by such Participant
(or beneficiary or transferee) within ten days after notice of such failure by
the Committee, shall be grounds for the cancellation and forfeiture of such
Award, in whole or in part, as the Committee, in its absolute discretion, may
determine.

       10.10. APPLICABLE LAW. This Plan, any Award Agreement and any related
documents and matters shall be governed in accordance with the laws of the State
of Connecticut, except as to matters of federal law.

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                                                                    EXHIBIT 10.3

                                                      [Composite Conformed Copy]

                              EMPLOYMENT AGREEMENT

     This Employment Agreement, dated October 23, 2000 (this "Agreement") [as
amended by First Amendment to Employment Agreement, dated as of March 21, 2001],
is between PATRIOT NATIONAL BANK, a national banking association with
headquarters located in Stamford, Connecticut (the "Bank"), PATRIOT NATIONAL
BANCORP, INC., a Connecticut corporation ("Bancorp") and Charles F. Howell of
Danbury, Connecticut (the "Executive").

                                    RECITALS

     WHEREAS, the Executive and the Bank desire that the Executive be employed
by the Bank as President and Chief Executive Officer. The Executive and the Bank
desire to enter into this Employment Agreement with Executive for several
primary reasons: (1) to provide Executive with job security, particularly in the
event that the Bank experiences a change-of-control; (2) to provide further
incentive to Executive in the discharge of his responsibilities to the Bank; and
(3) to define Executive's duties and terms of employment;

     WHEREAS, the Bank and Executive contemplate that the Bank will: (i)
disclose to Executive information concerning the Bank's business affairs,
including certain confidential information; and (ii) assist Executive in
establishing goodwill and rapport with certain customers of the Bank. The use by
Executive of this information, goodwill and rapport in competing with or in
aiding others in competing with the Bank would have a detrimental effect on
future profitable operations of the Bank.

     NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter described, the parties agree as follows:

     1.   TERM OF EMPLOYMENT. The Bank agrees to employ Executive, and Executive
agrees to accept employment with the Bank for a term commencing on October 23,
2000 and continuing for a period of three years, unless subsequently extended or
sooner terminated as provided in this Agreement (the "Employment Period"). The
Bank further agrees to initiate discussions with Executive promptly following
the second anniversary of the date hereof for the purpose of determining whether
a further extension to this Agreement is acceptable to the parties hereto, it
being understood that neither party shall have any binding obligation to further
extend the Employment Period.

     2.   DUTIES.

          (a)    During the Employment Period, Executive shall perform the
duties and exercise the powers relating to the office of the President and Chief
Executive Officer, including all duties assigned to Executive by the Board of
Directors of the Bank (the "Board of Directors"). All duties assigned shall be
consistent with the customary duties of the above-described offices at a
national bank. Bancorp shall use its best efforts to cause the Executive to be
nominated as a

<Page>

director of Bancorp and the Bank, and as a Vice-Chairman of the Board of
Directors of Bancorp. In the event Executive is not elected as a director of
Bancorp and the Bank and as a Vice Chairman of Bancorp within one week of the
date of this Agreement, Executive shall have the right to terminate this
Agreement without any further duties or obligations on the part of Executive
hereunder.

          (b)    During the Employment Period, Executive shall devote his entire
business time, best efforts and ability to the business of the Bank, shall
faithfully and diligently perform his duties, shall comply in all material
respects with the overall policies established by the Board of Directors of the
Bank and shall do all that is reasonably in his power to promote, develop and
extend the business of the Bank. Notwithstanding the foregoing, it is understood
that the Executive shall be permitted to continue to serve on various civic and
non-profit organizations approved by the Bank.

     3.   COMPENSATION AND BENEFITS.

          (a)    BASE SALARY. The Bank shall pay Executive as compensation for
his services during the Employment Period an annual base salary of One Hundred
and Sixty Thousand ($160,000.00) Dollars for the first twelve (12) month period,
One Hundred and Seventy Thousand ($170,000.00) Dollars for the second twelve
(12) month period, and One Hundred and Eighty Thousand ($180,000.00) Dollars for
the third twelve (12) month period (the "Base Salary"). Salary payments shall be
made in equal installments consistent with the Bank's standard payroll practices
for its officers. The Base Salary shall be reviewed by the Board of Directors
each year during the Employment Period and set by the Board of Directors in an
amount not less than the stated contract salary; any increase in Base Salary in
excess of the stated contract may take the form of a contingent increase based
upon the achievement of articulated personal or corporate goals, or both, at the
discretion of the Board of Directors.

          (b)    EXPENSES. Upon submission of appropriate invoices or vouchers,
the Bank shall pay or reimburse Executive for all reasonable expenses incurred
by him in the performance of his duties under this Agreement in furthering the
business, and in keeping with the policies, of the Bank.

          (c)    VACATION. Executive shall be entitled to four (4) weeks paid
vacation each contract year, to be taken each year at a time or times as shall
be mutually agreed upon by the Bank and Executive and consistent with applicable
regulatory requirements. If Executive fails to use all of his vacation time
during a particular calendar year, the unused portion shall not be carried over
to the subsequent year, unless approved in writing by the Chairman of the Board
of the Directors.

          (d)    CASH INCENTIVE COMPENSATION. The Board of Directors, in its
sole discretion, may authorize the payment of special cash incentive
compensation to Executive from time to time in excess of the amount stated in
any documented regular cash incentive plans. Any such special payment of
incentive compensation will not set a precedent requiring or suggesting that
similar incentive compensation will be paid in the future. The Bank's Board of
Directors will consider the adoption of documented regular cash incentive
compensation plans

                                        2
<Page>

whereby the Executive would receive specific cash compensation for the
achievement of articulated goals as determined by the Board of Directors. Any
such regular cash incentive compensation shall be separate and apart from any
special cash incentive compensation. The Executive (President and CEO) shall
work closely with senior management of the Bank to development such incentive
plans.

          (e)    INSURANCE POLICIES.

          (i) TERM LIFE INSURANCE. During the Employment Period, Bank shall
     provide term life insurance coverage for Executive in such form and amount
     as is not less favorable than that coverage provided by the Bank to other
     Bank employees from time to time generally.

          (ii) KEY MAN INSURANCE. During the Employment Period, Executive shall
     permit the Bank to insure his life under a policy or policies of life
     insurance issued by an insurance company or companies selected by the Bank,
     and to name the Bank as sole beneficiary thereunder. Executive agrees to
     submit to any physical examinations which may be reasonably required in
     connection with such policies.

          (iii) DISABILITY INSURANCE. During the Employment period, Bank shall
     provide Executive with disability insurance coverage in such form and
     amount consistent with that provided to other Bank employees generally.

          (f)    BENEFITS. During the Employment Period, Executive shall be
entitled to and shall be included under the same rules or restrictions in any
employee welfare and retirement plan or program of the Bank available generally
to its employees and/or officers including, without limitation, plans for
hospital services, medical services benefits, sick pay, dental and other health
plans.

          (g)    STOCK PLANS. During the Employment Period, Executive may be
included in any stock incentive, stock option, or stock compensation plan as the
Board of Directors of the Bank may determine. Such plans may be documented by
the Board of Directors and the Executive from time to time. The Executive
(President and CEO) shall work with senior management of the Bank to develop
such incentive plans. Without limiting the foregoing, the Bank agrees as
follows:

          (i) STOCK GRANTS. Subject to the provisions of this subsection (i),
     the Executive will be granted the right to receive unregistered, restricted
     shares of the Common Stock of Bancorp. Grants of such shares will be made
     effective on December 31, 2000, December 31, 2001, December 31, 2002, and
     December 31, 2003. The number of shares granted on December 31, 2000 shall
     be that number having a value equal to $48,000 (based on a share price as
     determined below), and the number of shares granted on each subsequent
     December 31st shall be that number in each case having a value equal to 30%
     of the Executive's Base Salary in respect of the immediately preceding
     October 1 - September 30 period, with the price of such shares being the
     average of the closing price per share as reported by the NASDAQ Stock
     Market, Inc. for the ten trading

                                        3
<Page>

     days prior to each respective December 31st. In respect of each grant, 25%
     of the amount of such shares shall be vested and distributed on each
     succeeding December 31st during the following four year period (i.e., the
     first 25% of the shares granted on December 31, 2000 will vest and be
     distributed on December 31, 2001). If for any reason such shares are not
     available in the reasonable opinion of the Board of Directors, the Bank
     shall pay to the Executive in cash, on the same schedule as aforesaid, the
     value of said shares based on the closing price of said shares on the
     applicable vesting date. In the event the Employment Period is terminated
     for cause (as defined herein), or is otherwise terminated by the Executive
     or by reason of the Executive's death or disability, the Executive shall
     forfeit the right to receive any of the aforesaid shares or cash which have
     not vested as of the date of such termination, provided, however, that in
     the event of a termination based upon a Change of Control (as hereinafter
     defined), or a termination other than for cause or by reason of the
     Executive's death or disability, all granted but unvested shares will be
     deemed to fully vest at the time of such termination.

          (ii) STOCK OPTIONS. The Executive will be granted stock options for a
     minimum of 10,000 unregistered, restricted shares of Common Stock of
     Bancorp on each of December 31, 2000, December 31, 2001, December 31, 2002,
     and October 16, 2003 (said latter date to be extended to December 31, 2003
     in the event of the Executive remains employed by the Bank after October
     16, 2003), exercisable for a period of ten (10) years from the date of
     grant and exercisable at a price equal to the fair market value of such
     shares on each such date of grant, all as determined by and subject to the
     terms of a stock option plan to be approved by the Board of Directors and
     the shareholders of the Bancorp. In the event that any future stock options
     are granted to any other employees or directors containing terms or
     conditions more favorable than the aforesaid options granted to the
     Executive, or any existing and outstanding options are modified to include
     any such more favorable provisions, the Executive shall have the right to
     have the terms and conditions of his stock options modified to incorporate
     such more favorable terms. In the event that the Board determines, in its
     reasonable discretion, that any of the aforesaid stock options for the
     Executive cannot be granted, the Executive shall have the right to receive,
     as additional compensation, within 30 days of the Determination Date (as
     defined below), an amount equal to the product of (A) the difference
     between (1) the market value of a share of Common Stock of Bancorp
     underlying such option had it been available on the date of the scheduled
     award (such market value to be equal to the average of the closing price of
     a share of the Common Stock of Bancorp as reported by the NASDAQ Stock
     Market Inc. for the ten (10) trading days prior to the respective December
     31) and (2) the market value of a share of Common Stock of Bancorp on the
     date chosen by the Executive during the ten year period after the date of
     the scheduled award (the date chosen by the Executive, the "Determination
     Date"), multiplied by (B) the number of shares of Common Stock of Bancorp
     which would have been covered by such option had it been granted. The
     Determination Date shall be the date immediately preceding the date on
     which a written notice is received by the Bank via overnight mail service
     and the applicable market value shall be the closing price of the shares of
     Bancorp on the Determination Date. Alternatively, the Executive may
     hand-deliver such a written notice to the Chairman of the Board of Bancorp
     after the closing of the NASDAQ market on any date during said period
     stipulating that such date shall be the

                                        4
<Page>

     Determination Date in respect of the aforesaid procedure. The aforesaid
     cash amount shall be payable to the Executive only in respect of option
     shares which otherwise have been fully vested as of any Determination Date.
     In the event the Employment Period is terminated for cause (as defined
     herein), or is otherwise terminated by the Executive or by reason of
     Executive's death or disability, the Executive shall forfeit the right to
     exercise any of the aforesaid options, provided, however, that in the event
     of a termination based upon a Change of Control (as hereinafter defined),
     or a termination other than for cause or by reason of the Executive's death
     or disability, all granted but unvested options will be deemed to fully
     vest at the time of such termination.

     4.   DISABILITY. If during any period in which Executive shall have
continued to perform his duties as an employee of the Bank, Executive shall
incur a total or partial disability (as defined in subsection (d) below), then
until the earlier of (a) 180 days after the date such disability is incurred, or
(b) the expiration of the term of the Employment Period (either shall be termed
the "Disability Period"), the Bank shall pay Executive during the Disability
Period on the basis of his then-regular salary (any payments that Executive does
or would otherwise receive pursuant to the Bank's; disability coverage for
employees generally for this period of disability shall be set off against these
payments).

          (a)    If Executive's total disability shall terminate prior to the
expiration of the Employment Period, then Executive shall return to full and
active employment with the Bank under the terms of this Agreement; provided that
if he shall again become disabled within a period of three (3) months after such
return, other than by reason of an event which is not causatively related to his
original disability, then Executive shall be deemed to have been continuously
disabled from the date he incurred his original disability;

          (b)    In the event Executive shall incur a partial disability (as
defined in (d) below), then during the period of the partial disability, the
compensation to be paid to him in consideration of his services to the Bank
shall be equitably adjusted to reflect the time that he is able to devote to the
affairs of and the value of the service he is able to impart to the Bank;
provided, however, that during the Disability Period, the compensation shall not
be less than Executive would have received under this Section 4 had he been
totally rather that partially disabled (this is to say, he shall receive his
then-regular salary for that Disability Period);

          (c)    Payments to Executive under this Section 4 shall be reduced by
the amounts, if any, as may be payable to him by reason of his disability under
policies of insurance maintained and/or paid for by the Bank;

          (d)    As used in this Agreement, the term "total disability" shall
mean a disability such that, for physical or mental reasons, Executive is unable
to perform substantially his obligations hereunder for the reasonably
foreseeable future (not less than 90 days), as determined by the Bank's Board of
Directors after considering competent medical evidence. As used in this
Agreement, the term "partial disability" shall mean a disability, other than a
total disability, such that, for physical or mental reasons, Executive is unable
to perform a material portion of his usual duties at the Bank on a full-time
basis as determined by the Bank's Board of Directors after considering competent
evidence.

                                        5
<Page>

     5.   TERMINATION.

          (a)    TERMINATION BY DEATH. If Executive dies during the Employment
Period, the Bank's obligations under this Agreement shall terminate immediately
and Executive's estate shall be entitled to all arrearages of salary and
expenses but shall not be entitled to further compensation.

          (b)    TERMINATION WITH OR WITHOUT CAUSE. This Agreement and
Executive's employment with the Bank may be terminated for cause at any time
upon thirty (30) days advance written notice from the Bank to Executive,
which notice shall set forth the facts on which the termination is based.
Upon termination, Executive shall be entitled to all arrearages of salary and
expenses, but shall not be entitled to further compensation or benefits.

     As used in this Agreement, and without limitation, "cause" shall include:
(i) Executive's conviction by any trial court of any crime involving fraud,
embezzlement, theft or dishonesty; (ii) serious willful misconduct by Executive,
including personal dishonesty in connection with Bank business or customers or
the breach of a fiduciary duty to the Bank or its customers; (iii) the total
disability of Executive, as defined in Paragraph 4 above; (iv) any material
breach by Executive of this Agreement; or (v) if the Bank's regulatory
authorities issue an order removing Executive from his positions at the Bank, or
if such regulatory authorities inform the Directors that continuation of
Executive in his position at the Bank would constitute an unsafe and unsound
banking practice.

     Executive's employment may be terminated by the Bank without cause at any
time, provided that, in such event, Bank shall pay Executive, in one lump-sum
payment within thirty (30) days after such termination, an amount equal to the
higher of the following: (i) that amount which is equal to the aggregate amount
of salary payments that would be made to Executive for the remainder of the
Employment Period, calculated at the Executive's then annual Base Salary; or
(ii) that amount which is equal to 1-1/2 years (18 months) Base Salary,
calculated at Executive's then annual Base Salary, whichever is greater.

     In addition, if Executive is terminated without cause, the Bank shall
either continue to carry Executive at no additional cost to him under the Bank's
employee hospital, medical services, dental and other health plans for the
remainder of the Employment Period, or, if he is not eligible for continued
coverage under such plans, pay the cost of similar coverage for Executive
pursuant to COBRA or similar private insurance plans offering comparable
coverage.

     The provisions of this Section 5 shall apply only to termination of this
Agreement prior to a Change of Control (as hereinafter defined). Termination of
this Agreement following the occurrence of Change of Control shall be governed
by Section 11 hereof.

          (c)    IMMEDIATE CESSATION OF EMPLOYMENT. In the event Executive's
employment terminates pursuant to subparagraph (b), the Bank may further direct
Executive to cease immediately his activities on behalf of the Bank and to
discontinue using any of the Bank's facilities; provided, however, that in the
event of these directions, the Bank shall

                                        6
<Page>

continue to provide Executive with salary and other benefits required by this
Agreement until the expiration of the notice period set forth in subparagraph
(b).

          (d)    SURVIVAL. Anything in this Agreement to the contrary
notwithstanding the provisions of Sections 6, 7, 8, 9, and 10 shall survive the
termination of Executive's employment with the bank.

     6.   NON-COMPETITION AGREEMENT.

          (a)    Executive absolutely and unconditionally covenants and agrees
with the Bank that, from the period commencing on the date of this Agreement and
continuing for a period of one (1) year following the termination of his
employment as provided for in this Agreement, Executive will not, anywhere in
the Restricted Area (as defined in subparagraph (b) below), either directly or
indirectly, solely or jointly with any person or persons (a "Competitor"), as an
employee, consultant, or advisor (whether or not engaged in business for
profit), or an individual proprietor, partner, shareholder (provided that share
ownership of less than 5% of the share voting power shall be permitted),
director, officer, joint venturer, investor (provided that such investment will
not be a violation if it is limited to less than 5% of the ownership of such
entity), lender, or in any other capacity, compete with the business of the Bank
(i) as conducted as of the date of execution of this Agreement; or (ii) as
conducted during the Employment Period; or (iii) as conducted as of the end of
the Employment Period or (iv) as proposed to be conducted by the Bank as of the
end of the Employment Period (collectively, the "Business"). Notwithstanding the
foregoing, the provisions of this Section 6 (a) shall not apply in the event
that (i) the Executive's employment is terminated by the Bank other than for
cause or (ii) the Executive is employed by the Bank for the entire three (3)
year term hereof and the Bank then determines not to further renew or extend
this Agreement on substantially similar terms. In either of the foregoing
events, however, the terms of Sections 7 and 8 hereof shall continue to be
binding upon the Executive. In addition, and notwithstanding the foregoing, the
non-compete provisions of this Section 6(a) shall apply to the Executive in the
event the Executive receives the Severance Amount pursuant to Section 11 herein,
and in such situation only, the "Restricted Area" shall be (i) the towns
identified in Section 6(b) below, (ii) any town or city in which the Bank has an
office or branch as of the time of the Change of Control, and (iii) Westchester
County, New York. Upon any violation of the aforesaid provisions by the
Executive, the Executive shall repay the Severance Amount to the Bank.

          (b)    As used in this Section 6: (i) the term "compete" shall mean
engaging, participating, or being involved in any respect in the business of
banking, or furnishing any aid, assistance or service of any kind to any person
in connection with, the Business and shall include, without limitation, being
employed by any banking institution which has a branch or other place of
business in the Restricted Area; (ii) except as otherwise provided in Section
6(a) above, the term "Restricted Area" shall mean the following six towns:
Greenwich, Stamford, Darien, New Canaan, Norwalk and Westport.

          (c)    If a Court or arbitration panel concludes through appropriate
proceedings that Executive has breached the covenant set forth in this Section,
the term of the covenant shall

                                        7
<Page>

be extended to a term equal to the period for which Executive is determined to
have breached the covenant.

     7.   COVENANT NOT TO DISCLOSE. Executive agrees that, by virtue of the
performance of the normal duties of his position with the Bank and by virtue of
the relationship of trust and confidence between Executive and the Bank, he
possesses and will possess certain data and knowledge of operations of the Bank
which are proprietary in nature and confidential. Executive covenants and agrees
that he will not, at any time, whether during the term of this Agreement or
otherwise, reveal, divulge or make known to any person (other than the Bank) or
use for his own account, any confidential or proprietary record, data, trade
secret, price policy, rate structure, personnel policy, method or practice of
obtaining or doing business by the Bank, or any other confidential or
proprietary information whatever (the "Confidential Information"), whether or
not obtained with the knowledge and permission of the Bank and whether or not
developed, devised or otherwise created in whole or in part by his efforts.

     Executive further covenants and agrees that he shall retain all such
knowledge and information which he shall acquire or develop respecting such
Confidential Information in trust for the sole benefit of the Bank and its
successors and assigns.

     8.   NON-INTERFERENCE COVENANT. Executive covenants and agrees that he will
not, for a period of one (1) year following the termination of this Agreement,
directly or indirectly, for whatever reason, whether for his own account or for
the account of any other person, firm, corporation or other organization: (i)
solicit, employ, or otherwise interfere with any of the Bank's contracts or
relationships with any employee, officer, director or any independent contractor
who is employed by or associated with the Bank at the time of termination of
this Agreement; or (ii) actively solicit, or cause to be solicited or otherwise
actively interfere with any of the Bank's contracts or relationships with any
independent contractor, customer, client or supplier of the Bank. It shall not
constitute a violation of this Section 8 if customers, clients or employees
follow Executive to his new place of employment without any independent
solicitation on the part of Executive (or caused by Executive) or if such
customers or clients respond to any mass advertising solicitation conducted
independently by Executive's new employer without input from Executive.

     9.   BUSINESS MATERIALS AND PROPERTY DISCLOSURE. All written materials,
records, and documents made by Executive or coming into his possession
concerning the business or affairs of the Bank shall be the sole property of the
Bank and, upon termination of his employment with the Bank, Executive shall
deliver the same to the Bank and shall retain no copies. Executive shall also
return to the Bank all other property in his possession owned by the Bank upon
termination of his employment.

     10.  BREACH BY EXECUTIVE. It is expressly understood, acknowledged and
agreed by Executive that: (i) the restrictions contained in Sections 6, 7, 8,
and 9 of this Agreement represent a reasonable and necessary protection of the
legitimate interests of the Bank and that his failure to observe and comply with
his covenants and agreements in those Sections will cause irreparable harm to
the Bank; (ii) it is and will continue to be difficult to ascertain the nature,
scope and extent of the harm; and (iii) a remedy at law for such failure by

                                        8
<Page>

Executive will be inadequate. Accordingly, it is the intention of the parties
that, in addition to any other rights and remedies which the Bank may have in
the event of any breach of said Sections, the Bank shall be entitled, and is
expressly and irrevocably authorized by Executive, to demand and obtain specific
performance, including without limitation, temporary and permanent injunctive
relief, and all other appropriate equitable relief against Executive in order to
enforce against Executive, or in order to prevent any breach or any threatened
breach by Executive, of the covenants and agreements contained in those
Sections.

     11.  CHANGE OF CONTROL. If, during the Employment Period (and after the
Employment Period so long as the Executive is then still the full-time chief
executive officer of the Bank), there is a "Change of Control" of the Bank (as
defined below) and the Executive's employment is thereafter terminated by the
Executive or by the Bank other than (i) for cause, or (ii) by reason of the
Executive's death or disability, the Executive shall be entitled to receive a
severance payment (the "Severance Amount") in consideration of services
previously rendered to the Bank. The Severance Amount shall be made as a lump
sum cash payment equal to two (2) times the greater of the following: (A) the
Executive's then annual Base Salary; (B) the Executive's cash compensation (the
"Cash Compensation") from the Bank for services rendered for the last full
calendar year immediately preceding the Change of Control; or (C) the
Executive's average annual cash Compensation with respect to the two (2) most
recent taxable years ending before the date on which the Change of Control
occurs.

     The Cash Compensation referred to above shall include the amount of Base
Salary and any cash incentive compensation paid to Executive for services
rendered for the time period in question, as such compensation is described in
Sections 3(a) and 3(d) hereof, including any and all of said amounts as may have
been deferred by Executive under deferral plans, if any, of the Bank, and shall
include long-term compensation which, by its terms, is accelerated upon a Change
of Control, or if not, shall by this Agreement be so accelerated and determined
as the present value of any long-term cash incentive compensation previously
awarded to Executive but not yet paid, measured at the time of award with the
assumption that the award would be 100% earned over the performance period. Cash
compensation will not include any cash received in lieu of stock options or
restricted stock. Payment of the Severance Amount under this Section 11 shall be
in lieu of any amount due or payable to the Executive under Sections 3 and 5
hereof. Payment under this Section 11 shall be paid in full within 90 days
following the date of the Change of Control and shall not be reduced by any
compensation which the Executive may receive from other employment with another
employer should Executive's employment with the Bank terminate. The Executive
shall not be entitled to the Severance Amount, and shall repay to the Bank (or
its successors) any sums representing the Severance Amount previously paid to
the Executive by the Bank, in the event that the Executive becomes employed as a
senior officer of the Bank or any successor entity to the Bank within a two (2)
year period following any such Change in Control.

     For purposes hereof, a "Change in Control" shall have occurred if:

          (1) Any "person" other than (i) Angelo DeCaro and his family members
     or family trusts, (ii) Fred DeCaro and his family members or family trusts,
     or (iii) any trustee or other fiduciary holding securities under an
     employee benefit plan of the Bank within the

                                        9
<Page>

     meaning of Section 14(d) of the Securities Exchange Act of 1934 (the
     "Act"), by merger or otherwise, becomes the "beneficial owner" as defined
     in Rule 13d-3 thereunder, directly or indirectly, of more than 35% of the
     Bancorp's Common Stock;

          (2) any "person" other than (i) Angelo DeCaro and his family members
     or family trusts; (ii) Fred DeCaro and his family members or family trusts,
     or (iii) any trustee or other fiduciary holding securities under an
     employee benefit plan of the Bank, acquires by proxy or otherwise the right
     to vote more than 35% of Bancorp's Common Stock for the election of
     directors, other than solicitation of proxies by the Incumbent Board (as
     hereinafter defined), for any merger or consolidation of the Bank or for
     any other matter or question;

          (3) Bancorp's stockholders have approved the sale of all or
          substantially all of the assets of the Bank; or

          (4) the Board of Directors determines that a person other than (i)
     Angelo DeCaro and his family members or family trusts or (ii) Fred DeCaro
     and his family members or family trusts, directly or indirectly exercises a
     controlling influence over the management or policies of the Bank,

     A "Change of Control" shall be deemed not to have occurred if (A) such
event is mandated or directed by a regulatory body having jurisdiction over the
Bank's operations; or (B) it occurs pursuant to the terms of a plan for the
acquisition of the capital stock of Bancorp by a newly formed bank holding
company if in the consummation of such plan the shareholders of Bancorp will
receive, pro rata, all of the common stock of such bank holding company; unless,
in such transaction, a Person satisfies sub-paragraph (1), (2), or (4) above.

     A "Person" shall include a natural person, corporation, or other entity.
When two or more persons act as a partnership, limited partnership, syndicate,
or other group for the purpose of acquiring, holding or disposing of Bancorp
capital stock, such partnership, syndicate or group shall be considered a
Person. Beneficial ownership shall be determined under the then current
provisions of Rule 13d-3 of the Securities Exchange Act of 1934, as amended,
Reg. Section 240.13d-3, or their successor provision(s). The filing of a Form
F-11A by a Person shall not be deemed a Change of Control.

     If, after a Change of Control of the Bank, the Executive incurs any fees
and expenses of counsel to enforce this Agreement, the Bank agrees to pay such
fees and expenses to Executive. The Executive's choice of counsel and his
decision to retain counsel shall be in his reasonable discretion, provided any
such fees and expenses must be reasonable and shall be payable only if the
Executive prevails on the merits of his claim.

     Notwithstanding any other provision hereof, in the event that any payment
or benefit received or to be received by the Executive in connection with a
Change in Control of the Bank or the termination of the Employment Period
(whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Bank, any person whose actions result in a Change in
Control or any person affiliated with the Bank or such person (collectively with
the

                                       10
<Page>

Severance Amount, "Total Payments")) would not be deductible (in whole or part)
as a result of Section 280G of the Code, by the Bank, an affiliate or other
person making such payment or providing such benefit, the Severance Amount shall
be reduced until no portion of the Total Payments is not deductible, or the
Severance Amount is reduced to zero. For purposes of this limitation (a) no
portion of the Total Payments the receipt or enjoyment of which the Executive
shall have effectively waived in writing prior to the date of payment of the
Severance Amount shall be taken into account; (b) no portion of the Total
Payments shall be taken into account which in the opinion of tax counsel
selected by the Bank's independent auditors and acceptable to the Executive does
not constitute a "parachute payment" within the meaning of Section 280G(b)(2) of
the Code; (c) the Severance Amount shall be reduced only to the extent necessary
so that the Total Payments (other than those referred to in clauses (1) or (2))
in their entirety constitute reasonable compensation for services actually
rendered within the meaning of Section 280G(b)(4) of the Code or are otherwise
not subject to disallowance as deductions, in the opinion of the tax counsel
referred to in clause (b); and (d) the value of any non cash benefit or any
deferred payment or benefit included in the Total Payments shall be determined
by the Bank's independent auditors in accordance with the principles of Sections
280G(d)(3) and (4) of the Code.

     12.  REGULATORY RESTRICTIONS. Notwithstanding any provision to the contrary
in this Agreement, the Bank shall not be required under this Agreement to
continue Executive in his position(s) at the Bank, or to make any payments to
Executive, if the regulatory authorities having jurisdiction over the Bank order
the Executive's removal from the Bank, or if such regulations determine that any
payment would constitute an illegal "excess parachute" payment under 12 U.S.C.
Section 1828(k) and regulations promulgated thereunder, or an "unsafe or unsound
banking practice" pursuant to 12 U.S.C. Section 1818(b).

     13.  ARBITRATION. Any dispute whatsoever relating to the interpretation,
validity or performance of this Agreement, or any other dispute arising out of
this Agreement which cannot be resolved by any party upon thirty (30) days'
written notice to the other party shall be settled by arbitration in the City of
Stamford, Connecticut, in accordance with the rules then prevailing of the
American Arbitration Association, and the judgment upon the award rendered by
the arbitrators may be entered in any court of competent jurisdiction. It is the
purpose of this Agreement, and the intent of the parties hereto to make the
submission to arbitration of any dispute or controversy arising out of this
Agreement, as set forth hereinabove, an express condition precedent to any legal
or equitable action or proceeding of any nature whatsoever.

     14.  GENERAL PROVISIONS:

          (a)    All notices required by this Agreement shall be in writing and
shall be sufficiently given if delivered or mailed by registered or certified
mail, return receipt requested, to the parties at their respective addresses set
forth below. Any party may specify a different address by written notice to the
other, in accordance with this Section. All notices shall be deemed to have been
given as of the date so delivered or mailed.

     To the Bank:

                                       11
<Page>

          900 Bedford Street
          Stamford, CT
          Attention: Chairman of the Board of Directors

     To Executive:

          Charles F. Howell
          13 Delno Drive
          Danbury, CT

          (b)    Except insofar as Executive may be subject to general policies
adopted by the Bank from time to time, this Agreement contains the entire
agreement between the parties, and there are no other representations,
warranties, conditions or agreements relating to the subject matter of this
Agreement.

          (c)    The waiver by any party of any breach or default of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach.

          (d)    This Agreement may not be changed orally but only by an
agreement in writing duly executed on behalf of the party against which
enforcement of any waiver, change, modification, consent or discharge is sought.

          (e)    This Agreement shall be binding upon and inure to the benefit
of the Bank and Executive and their respective successors, assigns, heirs and
legal representatives. Insofar as Executive is concerned, this Agreement is
personal and Executive's duties under it shall not be assigned by Executive.

          (f)    Each of the parties agrees to execute all further instruments
and documents and to take all further action as the other party may reasonably
request in order to effectuate the terms and purposes of this Agreement.

          (g)    This Agreement may be executed in one or more counterparts, all
of which taken together shall constitute one and the same instrument.

          (h)    This Agreement shall be construed pursuant to and in accordance
with the laws of the State of Connecticut.

          (i)    Wherever used in this Agreement, the masculine, feminine and
neuter pronouns shall be fully interchangeable, and the singular shall include
the plural where the context so requires and vice versa.

          (j)    If any term or provision of this Agreement is held or deemed to
be invalid or unenforceable, in whole or in part, by a court of competent
jurisdiction, such term of provision shall be ineffective to the extent of such
invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Agreement.

                                       12
<Page>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first above written.

                                         PATRIOT NATIONAL BANK

                                         By:   /s/ ANGELO DE CARO
                                         -------------------------------------
                                         Chairman of Board of Directors

                                         PATRIOT NATIONAL BANCORP, INC.

                                         By:   /s/ ANGELO DE CARO
                                         -------------------------------------
                                         President & CEO

                                         /s/   CHARLES F. HOWELL
                                         -------------------------------------
                                         Charles F. Howell
                                         Executive

                                       13

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