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

|   | b. | Commencing      on the first year anniversary date of this Agreement, and continuing on      each anniversary thereafter, the disinterested members of the board of      directors of the Company may extend the Agreement for an additional      one-year period beyond the then effective expiration date, unless      Executive elects not to extend the term of this Agreement by giving      written notice in accordance with Section 20 of this      Agreement.  The Board of Directors of the Company (the “Board”)      will review 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 Executive as soon as possible after such review      as to whether the Agreement is to beextended. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The      Company agrees to pay Executive during the term of this Agreement a base      salary at the rate of $103,950 per year,      payable in accordance with customary payroll  practices. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | a. | Executive      shall be entitled to an annual vacation in accordance with the policies      that the Board periodically establishes for senior management      employees. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Executive      shall accumulate any unused vacation and/or sick leave from one fiscal      year to the next, in either case to the extent authorized by the Board,      provided that the Board shall not reduce previously accumulated vacation      or sick leave. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | In      addition to the above mentioned paid vacations, Executive shall be      entitled, without loss of pay, to absent himself voluntarily from the      performance of his employment for such additional periods of time and for      such valid and legitimate reasons as the Board may in its discretion      determine.  Further, the Board may grant Executive a leave or      leaves or absence, with or without pay, at such time or times and upon      such terms and conditions as the Board in its discretion may      determine. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | a. | During      the term of this Agreement and except for illnesses, reasonable vacation      periods, and reasonable leaves of absence, Executive: (i) shall devote his      full business time, attention, skill, and efforts to the faithful      performance of his duties hereunder; provided, however, that from time to      time, Executive may serve on the boards of directors of, and hold any      other offices or positions in, companies or organizations which will not      present any conflict of interest with the Company or any of its affiliates      or unfavorably affect the performance of Executive’s duties pursuant to      this Agreement, or violate any applicable statute or regulation and (ii)      shall not engage in any business or activity contrary to the business      affairs or interests of the Company or its affiliates.  “Full      business time” is hereby defined as that amount of time usually devoted to      like companies and institutions by similarly situated executive      officers. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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|   | ii. | In      the event of such Disability, Executive shall be entitled to the      compensation and benefits provided for under this Agreement for (1) any      period during the term of this Agreement and prior to the establishment of      Executive’s Disability during which Executive is unable to work due to the      physical or mental infirmity, and (2) any period of Disability which is      prior to Executive’s termination of employment pursuant to this Section      11c.; provided, however, that any benefits paid pursuant to the Company’s      or the Bank’s long-term disability plan will continue as provided in such      plan without      reduction for payments made pursuant to this      Agreement.  During any period that Executive receives disability      benefits and to the extent that Executive shall be physically and mentally      able to do so, he shall furnish such information, assistance and documents      so as to assist in the continued ongoing business of the Company and, if      able, he shall make himself available to the Company to undertake      reasonable assignments consistent with his prior position and his physical      and mental health.  The Company shall pay all reasonable      expenses incident to the performance of any assignment given to Executive      during the Disability period. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (1) | Personal      dishonesty; |
|--------|-----|---------------------------|

|   | (2) | Incompetence; |
|--------|-----|---------------|

|   | (3) | Willful      misconduct; |
|--------|-----|--------------------------|

|   | (4) | Breach      of fiduciary duty involving personalprofit; |
|--------|-----|---------------------------------------------------------|

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

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

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

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

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|   | e. | Voluntary Termination      by Executive.  In addition to his other rights to      terminate under this Agreement, Executive may voluntarily terminate      employment during the term of this Agreement upon at least ninety (90)      days’ prior written notice to the Board, in which case Executive shall      receive only his compensation, vested rights and employee benefits up to      the date of his termination. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | (1) | A      material reduction in Executive’s responsibilities or authority in      connection with his employment; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

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

|   | (3) | Failure      of Executive to be nominated or renominated to the Company’s      Board; |
|--------|-----|---------------------------------------------------------------------------------------------|

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

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

|   | (6) | A      requirement that Executive relocate his principal business office or his      principal place of residence outside of the area consisting of a thirty      (30) mile radius from the current main office of the Company and any      branch of the Bank, or the assignment to Executive of duties that would      reasonably require such a relocation;or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | ii. | During      the period ending on the first anniversary of such termination, Executive      shall not serve as an officer, director or employee of any bank holding      company, bank, savings bank, savings and loan holding company, or mortgage      company (any of which shall be a “Financial Institution”) which Financial      Institution offers products or services competing with those offered by      the Company or its affiliates from any office within fifty (50) miles from      the main office of the Company or any branch of the Bank and shall not      interfere with the relationship of the Company or the Bank and any of      their employees, agents, orrepresentatives. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | For      purposes of this Agreement, a “Change in Control” means any of the      following events: |
|--------|----|----------------------------------------------------------------------------------------------------------------|

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

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

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

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

|   | b. | Termination.  If      within the period ending one year after a Change in Control, (i) the      Company and the Bank shall terminate Executive’s employment      Without  Cause, or (ii) Executive voluntarily terminates his      employment with Good Reason, the Company and the Bank shall, within ten      calendar days of the termination of Executive’s employment, make a      lump-sum cash payment to him equal to three  times Executive’s      average Annual Compensation over the five (5) most recently completed      calendar years ending with the year immediately preceding the effective      date of the Change in Control.  In determining Executive’s      average Annual Compensation, Annual Compensation shall include base salary      and any other taxable income, including, but not limited to, amounts      related to the granting, vesting or exercise of restricted stock or stock      option awards, commissions, bonuses (whether paid or accrued for the      applicable period), as well as retirement benefits, director or committee      fees and fringe benefits paid or to be paid to Executive or paid for      Executive’s benefit during any such year, profit sharing, employee stock      ownership plan and other retirement contributions or benefits, including      to any tax-qualified plan or arrangement (whether or not taxable) made or      accrued on behalf of Executive for such years. The cash payment      made under this Section 12b. shall be made in lieu of any payment also      required under Section 11f. of this Agreement because of a termination in      such period.  Executive’s rights under Section 11f. are not      otherwise affected by this Section 12.  Also, in such event,      Executive shall, for a thirty-six (36) month period following his      termination of employment, receive the benefits he would have received      over such period under any retirement programs (whether tax-qualified or      non-tax-qualified) in which Executive participated prior to his      termination (with the amount of the benefits determined by reference to      the benefits received by Executive or accrued on his behalf under such      programs during the twelve (12) months preceding the Change in Control)      and continue to participate in any benefit plans of the Company or the      Bank that provide health (including medical and dental), life or      disability insurance, or similar coverage upon terms no less favorable      than the most favorable terms provided to senior executives during such      period.  In the event that the Company or the Bank are unable to      provide such coverage by reason of Executive no longer being an employee,      the Company or the Bank shall provide Executive with comparable coverage      on an individual policy basis or the cash  equivalent. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | c. | The      provisions of Section 12 and Sections 14 through 26, including the defined      terms used in such sections, shall continue in effect until the later of      the expiration of this Agreement or one year following a Change in      Control. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Indemnification.  The      Company agrees to indemnify Executive (and his heirs, executors, and      administrators), and to advance expenses related thereto, to the fullest      extent permitted under applicable law and regulations against any and all      expenses and liabilities reasonably incurred by him in connection with or      arising out of any action, suit, or proceeding in which he may be involved      by reason of his having been a director or Executive of the Company or any      of its affiliates (whether or not he continues to be a director or      Executive at the time of incurring any such expenses or liabilities), such      expenses and liabilities to include, but not be limited to, judgments,      court costs, and attorneys’ fees and the costs of reasonable settlements,      such settlements to be approved by the Board, if such action is brought      against Executive in his capacity as an Executive or      director.  Indemnification for expenses shall not extend to      matters for which Executive has been terminated for      Cause.  Nothing contained herein shall be deemed to provide      indemnification prohibited by applicable law or      regulation.  Notwithstanding anything herein to the contrary,      the obligations of this Section 13 shall survive the term of this      Agreement by a period of six (6)years. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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| ATTEST:                  |   | KENTUCKY      FIRST FEDERAL BANCORP |
|--------------------------|--------|-------------------------------------|
|                     |   |                                |   |
| /s/ Thomas F. Skaggs     |   | By:                                 | /s/ Tony D. Whitaker |
| Corporate      Secretary |   |                                | For      the Entire Board of Directors |
|                     |   |                                |   |
| WITNESS:                 |   | EXECUTIVE                           |
|                     |   |                                |   |
| /s/ Thomas F. Skaggs     |   | By:                                 | /s/ R. Clay Hulette |
| Corporate      Secretary |   |                                | R.      Clay Hulette |

----

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| KENTUCKY      FIRST FEDERAL BANCORP |
|-------------------------------------|
|                                |   |
| By:                                 | /s/ Don D. Jennings |
|                                |   |
| Title:                              | President/Chief Operating      Officer |
|                                |   |
| EXECUTIVE                           |
|                                |
| /s/ R. Clay  Hulette                |

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