Employment Agreement (2002)Full Document 

Start of Preview
                              AMERICAN SAVINGS BANK
                              EMPLOYMENT AGREEMENT

                              AMERICAN SAVINGS BANK
                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, entered into on January 18, 2002, by and between
AMERICAN SAVINGS BANK (the "Institution" or the "Bank"), a state-chartered
savings institution, with its principal administrative office at 178 Main
Street, New Britain, CT 06051, AMERICAN FINANCIAL HOLDINGS, INC. (the "Holding
Company"), a corporation organized under the laws of the state of Delaware and
the holding company of the Institution, and WILLIAM E. SOLBERG ("Executive").

         WHEREAS, the Bank, the Holding Company and American Bank of
Connecticut, a Connecticut chartered savings bank ("ABC"), have entered into an
Agreement and Plan of Merger, dated as of July 18, 2001 (the "Merger
Agreement"), providing for, among other things, the merger of ABC with and into
the Bank, with the Bank being the surviving institution.

         WHEREAS, continued employment of Executive is valuable to the success
of combined companies; and

         WHEREAS, Executive is willing to serve in the employ of the Bank in
accordance with the terms of this Agreement.

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


         On the terms and subject to the conditions set forth in this Agreement,
commencing at the Effective Time (as such term is defined in the Merger
Agreement) (the "Effective Date"), the Bank shall employ and Executive agrees to
serve as a senior executive vice president and Chief Banking Officer of the
Institution. Executive shall render administrative and management services to
the Institution such as are customarily performed by persons in a similar
executive capacity and reporting directly to the Chairman and Chief Executive
Officer of the Bank. During the period of his employment hereunder, Executive
also agrees to serve, if appointed, as an officer of the Holding Company.
Failure to reappoint Executive as a senior executive vice president and Chief
Banking Officer of the Institution, without the consent of Executive, shall
constitute a breach of this Agreement.

2.       TERM.

         (a) The period of Executive's employment under this Agreement shall be
deemed to have commenced as of the Effective Date and shall continue for a
period of thirty-six (36) full calendar months. Commencing on the first
anniversary date of this Agreement, and continuing on each anniversary
thereafter, the disinterested members of the board of directors of the
Institution ("Board") may extend the Agreement an additional year such that the
remaining term of the Agreement shall be thirty-six (36) months unless the
Executive elects not to extend the

term of this Agreement by giving written notice in accordance with Section 8 of
this Agreement. The Board will review the Agreement and Executive's performance
annually for purposes of determining whether to extend the Agreement and the
rationale and results thereof shall be included in the minutes of the Board's
meeting. The Board shall give notice to the Executive as soon as possible after
such review as to whether the Agreement is to be extended.

         (b) During the period of his employment hereunder, except for periods
of absence occasioned by illness, reasonable vacation periods, and reasonable
leaves of absence, Executive shall devote substantially all his business time,
attention, skill, and efforts to the faithful performance of his duties
hereunder including activities and services related to the organization,
operation and management of the Institution and participation in community and
civic organizations; provided, however, that, with the approval of the Board, as
evidenced by a resolution of such Board, from time to time, Executive may serve,
or continue to serve, on the boards of directors of, and hold any other offices
or positions in, companies or organizations, which, in the Board's judgment,
will not present any conflict of interest with the Institution, or materially
affect the performance of Executive's duties pursuant to this Agreement.

End of Preview