<PAGE>
                                                                   EXHIBIT 10.08

                                     FORM OF

                   FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

<PAGE>

                                     FORM OF
                   FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
Article I - Introduction..............................................        1
Article II - Definitions..............................................        2
Article III - Eligibility and Participation...........................        5
Article IV - Benefits.................................................        6
Article V - Accounts..................................................        8
Article VI - Supplemental Benefit Payments............................        9
Article VII - Claims Procedures.......................................       10
Article VIII - Amendment and Termination..............................       12
Article IX - General Provisions.......................................       13
</TABLE>

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                                    ARTICLE I
                                  INTRODUCTION

SECTION 1.01 PURPOSE, DESIGN AND INTENT.

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

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

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                                   ARTICLE II
                                   DEFINITIONS

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

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

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

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

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

(b) "BANK" means First Federal Savings and Loan Association, Hazard, Kentucky,
and its successors.

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

(d) "CHANGE IN CONTROL" means the earliest occurrence of one of the following
events:

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

      (ii) Acquisition of Significant Share Ownership: The Company files, or is
      required to file, a report on Schedule 13D or another form or schedule
      (other than Schedule 13G) required under Sections 13(d) or 14(d) of the
      Securities Exchange Act of 1934, if the schedule discloses that the filing
      person or persons acting in concert has or have become the beneficial
      owner of 25% or more of a class of the Company's voting securities, but

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      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.

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

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

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

(h) "COMPANY" means Kentucky First Federal Bancorp, Inc. and its successors.

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

(j) "EMPLOYEE" means any person employed by the Bank or a subsidiary of the
Bank.

(k) "EMPLOYER" means the Bank or a subsidiary thereof that employs the Employee.

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

(m) "ESOP" means the First Federal Savings and Loan Association Employee Stock
Ownership Plan, as amended from time to time.

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

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


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

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

(r) "PENSION PLAN" means the defined benefit pension plan sponsored by First
Federal Savings and Loan Association, as amended from time to time.

(s) "PLAN" means this First Federal Savings and Loan Association Supplemental
Executive Retirement Plan.

(t) "SUPPLEMENTAL ESOP ACCOUNT" means an account established by an Employer,
pursuant to Section 5.01 of the Plan, with respect to a Participant's
Supplemental ESOP Benefit.

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

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

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

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

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


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                                   ARTICLE III
                          ELIGIBILITY AND PARTICIPATION

SECTION 3.01 ELIGIBILITY AND PARTICIPATION.

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

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

                                       5

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                                   ARTICLE IV
                                    BENEFITS

SECTION 4.01 SUPPLEMENTAL ESOP BENEFIT.

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

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

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

SECTION 4.02 SUPPLEMENTAL STOCK OWNERSHIP BENEFIT.

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

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

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

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

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

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

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

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

SECTION 4.03 SUPPLEMENTAL PENSION BENEFIT.

A Participant or, in the event of his death, his beneficiary, whose retirement
or survivor benefits under the Pension Plan are limited by one or more of the
Applicable Limitations shall be entitled to a supplemental retirement benefit or
survivor benefit (Supplemental Pension Benefit) under this Plan in an amount
equal to the excess of:

      (i)   the benefit to which he would be entitled under the Pension Plan in
            the absence of the Applicable Limitations, computed as of the day
            the Participant separates from service with the Employer on the
            basis of the benefit form elected under the Pension Plan; over

      (ii)  the actual benefit to which he is entitled under the Pension Plan,
            computed as of the day the Participant separates from service with
            the Employer on the basis of the benefit form elected under the
            Pension Plan;

      provided, however, that, if the Plan is terminated with respect to a
      Participant prior to his separation from service with the Employer, such
      Supplemental Pension Benefit shall not exceed the Supplemental Pension
      Benefit that would have been payable under this Section 4.03, on the basis
      of the benefit form elected under the Pension Plan, if his separation from
      service had occurred as of the date of the termination of the Plan.

                                       7

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                                    ARTICLE V
                                    ACCOUNTS

SECTION 5.01 SUPPLEMENTAL ESOP BENEFIT ACCOUNT.

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

SECTION 5.02 SUPPLEMENTAL STOCK OWNERSHIP ACCOUNT.

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

SECTION 5.03 SUPPLEMENTAL PENSION ACCOUNT.

The Employer shall establish a memorandum account, the "Supplemental Pension
Account" for each Participant on its books, and each year the Committee will
credit the amount of contributions determined under Section 4.03 of the Plan.

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                                   ARTICLE VI
                          SUPPLEMENTAL BENEFIT PAYMENTS

SECTION 6.01 PAYMENT OF SUPPLEMENTAL ESOP BENEFIT.

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

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

SECTION 6.02 PAYMENT OF SUPPLEMENTAL STOCK OWNERSHIP BENEFIT.

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

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

SECTION 6.03 PAYMENT OF SUPPLEMENTAL PENSION BENEFIT.

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

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

SECTION 6.04 ALTERNATIVE PAYMENT OF BENEFITS.

Notwithstanding the other provisions of this Article VI, a Participant may, with
prior written consent of the Committee and upon such terms and conditions as the
Committee may impose, request that the Supplemental ESOP Benefit and/or the
Supplemental Stock Ownership Benefit and/or the Supplemental Pension Benefit to
which he is entitled be paid commencing at a different time, over a different
period, in a different form, or to different persons, than the benefit to which
he or his beneficiary may be entitled under the ESOP or the Pension Plan;
provided, however, that in the event of any difference with respect to his
Supplemental Pension Benefit, the benefit actually paid under this Section 6.04
shall be the equivalent (as determined based on applicable tables, factors and
assumptions set forth in the Pension Plan) of the benefit that would be paid in
accordance with the provisions of Section 6.03 of the Plan.

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                                   ARTICLE VII
                                CLAIMS PROCEDURES

SECTION 7.01 CLAIMS REVIEWER.

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

SECTION 7.02 CLAIMS PROCEDURE.

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

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

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

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

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

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

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<PAGE>

                                  ARTICLE VIII
                            AMENDMENT AND TERMINATION

SECTION 8.01 AMENDMENT OF THE PLAN.

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

SECTION 8.02 TERMINATION OF THE PLAN.

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

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<PAGE>

                                   ARTICLE IX
                               GENERAL PROVISIONS

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

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

SECTION 9.02 COMMITTEE AS PLAN ADMINISTRATOR.

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

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

SECTION 9.03 EXPENSES.

Expenses of administration of the Plan shall be paid by the Bank or its
subsidiary, if applicable.

SECTION 9.04 STATEMENTS.

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

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SECTION 9.05 RIGHTS OF PARTICIPANTS AND BENEFICIARIES.

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

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

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


SECTION 9.06 INCOMPETENT INDIVIDUALS.

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


SECTION 9.07 SALE, MERGER OR CONSOLIDATION OF THE BANK.

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


                                       14

<PAGE>

SECTION 9.08 LOCATION OF PARTICIPANTS.

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


SECTION 9.09 LIABILITY OF THE BANK AND ITS SUBSIDIARIES.

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


SECTION 9.10 GOVERNING LAW.

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

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<PAGE>

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

                                           FIRST FEDERAL SAVINGS AND
                                           LOAN ASSOCIATION

Attest:

________________________                   By: ________________________________
Corporate Secretary                            For the Entire Board of Directors

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