Exhibit 10(5)


                              EMPLOYMENT AGREEMENT


     This  Agreement,  made and dated as of July 1, 1999,  by and  between  Owen
Community Bank, s.b., a federal savings bank  ("Employer") and Frank R. Stewart,
a resident of Owen County, Indiana ("Employee").


                               W I T N E S S E T H

     WHEREAS,  Employee is employed by Employer as its Chairman of the Board and
has made valuable  contributions to the profitability and financial  strength of
Employer;

     WHEREAS,  Employer  desires  to  encourage  Employee  to  continue  to make
valuable  contributions  to Employer's  business  operations  and not to seek or
accept employment elsewhere;

     WHEREAS,  Employee  desires to be assured of a secure minimum  compensation
from Employer for his services over a defined term;

     WHEREAS,  Employer  desires  to provide  fair and  reasonable  benefits  to
Employee on the terms and subject to the conditions set forth in this Agreement;

     WHEREAS,   Employer  desires  reasonable  protection  of  its  confidential
business  and  customer  information  which it has  developed  over the years at
substantial  expense and assurance  that Employee will not compete with Employer
for a  reasonable  period  of time  after  termination  of his  employment  with
Employer, except as otherwise provided herein.

     NOW,  THEREFORE,  in consideration of these premises,  the mutual covenants
and undertakings  herein  contained and the continued  employment of Employee by
Employer as its Chairman of the Board, Employer and Employee,  each intending to
be legally bound, covenant and agree as follows:

     1.  Upon  the  terms  and  subject  to the  conditions  set  forth  in this
Agreement,  Employer employs  Employee as Employer's  Chairman of the Board, and
Employee accepts such employment.

     2.  Employee  agrees to serve as  Employer's  Chairman  of the Board and to
perform  such  duties in that  office as may  reasonably  be  assigned to him by
Employer's  Board of  Directors;  provided,  however,  that such duties shall be
performed  in or from the  offices of  Employer  currently  located at  Spencer,
Indiana,  and shall be of the same  character as those  previously  performed by
Employee and  generally  associated  with the office held by Employee.  Employee
shall render services to Employer as Chairman of the Board in substantially  the
same  manner and to  substantially  the same  extent as  Employee  rendered  his
services to Employer before the date hereof.

     3. The term of this Agreement  shall begin on July 1, 1999 (the  "Effective
Date")  and shall end on the date  which is three  years  following  such  date;
provided,  however,  that  such  term  shall be  extended  automatically  for an
additional year on each anniversary of the Effective Date if Employer's Board of
Directors  determines  by  resolution  to extend  this  Agreement  prior to such
anniversary  of the  Effective  Date,  unless  either party hereto gives written
notice to the other party not to so extend within ninety (90) days prior to such
anniversary,  in which case no further  automatic  extension shall occur and the
term of this Agreement  shall end two years  subsequent to the anniversary as of
which the notice  not to extend  for an  additional  year is given  (such  term,
including any extension thereof shall herein be referred to as the "Term").

     4.  Employee   shall   receive  an  annual  salary  equal  to   $__________
("Compensation"),  payable at regular  intervals in accordance  with  Employer's
normal payroll practices now or hereafter in effect.

     5. So long as Employee is employed by Employer  pursuant to this Agreement,
Employee shall receive  reimbursement from Employer for all reasonable  business
expenses  incurred in the course of his employment by Employer,  upon submission
to Employer of written vouchers and statements for reimbursement.

     6.  Subject  to the  respective  continuing  obligations  of  the  parties,
including but not limited to those set forth in subsections  7(A), 7(B) and 7(C)
hereof,  Employee's  employment  by  Employer  may be  terminated  prior  to the
expiration of the Term of this Agreement as follows:

     (A)  Employer,  by action of its Board of Directors and upon written notice
          to  Employee,   may  terminate  Employee's  employment  with  Employer
          immediately for cause. For purposes of this subsection  6(A),  "cause"
          shall be defined as (i) personal dishonesty, (ii) incompetence,  (iii)
          willful  misconduct,  (iv) breach of fiduciary duty involving personal
          profit, (v) intentional failure to perform stated duties, (vi) willful
          violation  of  any  law,  rule,  or  regulation  (other  than  traffic
          violations or similar  offenses) or final  cease-and-desist  order, or
          (vii) any material  breach of any term,  condition or covenant of this
          Agreement.

     (B)  Employer, by action of its Board of Directors may terminate Employee's
          employment with Employer without cause at any time; provided, however,
          that the "date of  termination"  for purposes of determining  benefits
          payable to Employee  under  subsection  7(B) hereof  shall be the date
          which  is 60 days  after  Employee  receives  written  notice  of such
          termination.

     (C)  Employee,  upon  sixty  (60)  days  written  notice to  Employer,  may
          terminate his employment with Employer without cause.

     (D)  Employee's  employment  with Employer shall  terminate in the event of
          Employee's  death or  disability.  For purposes  hereof,  "disability"
          shall be defined as Employee's inability by reason of illness or other
          physical or mental  incapacity  to perform the duties  required by his
          employment  for any  consecutive  One Hundred Eighty (180) day period,
          provided  that  notice  of any  termination  by  Employer  because  of
          Employee's "disability" shall have been given to Employee prior to the
          full resumption by him of the performance of such duties.

     7. In the event of  termination  of  Employee's  employment  with  Employer
pursuant to section 6 hereof, compensation shall continue to be paid by Employer
to Employee as follows:

     (A)  In the  event of  termination  pursuant  to  subsection  6(A) or 6(C),
          Compensation provided for herein shall continue to be paid through the
          date of termination  specified in the notice of termination.  The date
          of  termination  specified  in any notice of  termination  pursuant to
          subsection  6(A) shall be no later than the last  business  day of the
          month in which such notice is provided to Employee.

     (B)  In the event of termination pursuant to subsection 6(B),  Compensation
          provided  for herein  shall  continue  to be paid  through the date of
          termination  specified  in the  notice of  termination.  In  addition,
          Employee  shall be entitled to continue to receive  from  Employer his
          Compensation  in effect at the time of  termination  for the remaining
          Term of the Agreement.

     (C)  In the event of termination pursuant to subsection 6(D),  Compensation
          provided  for  herein  shall  continue  to be paid (i) in the event of
          Employee's  death,  through the date of death, or (ii) in the event of
          Employee's disability, through the date of proper notice of disability
          as required by subsection 6(D).

     8. Any  termination of Employee's  employment with Employer as contemplated
by section 6 hereof,  except in the circumstances of Employee's death,  shall be
communicated by written "Notice of Termination" by the terminating  party to the
other party hereto. Any "Notice of Termination"  pursuant to subsections 6(A) or
6(D) shall indicate the specific  provisions of this  Agreement  relied upon and
shall set forth in  reasonable  detail  the facts and  circumstances  claimed to
provide a basis for such termination.

     9.  If  Employee  is   suspended   and/or   temporarily   prohibited   from
participating  in the conduct of  Employer's  affairs by a notice  served  under
section  8(e)(3) or (g)(1) of the Federal Deposit  Insurance Act (12 U.S.C.  ss.
1818(e)(3) and (g)(1)),  Employer's  obligations  under this Agreement  shall be
suspended as of the date of service,  unless stayed by appropriate  proceedings.
If the charges in the notice are dismissed,  Employer shall (i) pay Employee all
or part of the compensation  withheld while its obligations under this Agreement
were suspended and (ii)  reinstate (in whole or in part) any of its  obligations
which were suspended.

     10. If Employee is removed and/or permanently prohibited from participating
in the conduct of Employer's affairs by an order issued under section 8(e)(4) or
(g)(1) of the  Federal  Deposit  Insurance  Act (12  U.S.C.  ss.  1818(e)(4)  or
(g)(1)),  all obligations of Employer under this Agreement shall terminate as of
the  effective  date of the  order,  but  vested  rights of the  parties  to the
Agreement shall not be affected.

     11. If Employer is in default (as defined in section 3(x)(1) of the Federal
Deposit  Insurance Act), all obligations under this Agreement shall terminate as
of the date of default, but this provision shall not affect any vested rights of
Employer or Employee.

     12. All  obligations  under this Agreement may be terminated  except to the
extent  determined  that the  continuation of the Agreement is necessary for the
continued  operation  of  Employer:  (i) by the Director of the Office of Thrift
Supervision,  or his or her designee (the  "Director"),  at the time the Federal
Deposit Insurance  Corporation enters into an agreement to provide assistance to
or on behalf of Employer  under the authority  contained in Section 13(C) of the
Federal Deposit  Insurance Act; or (ii) by the Director at the time the Director
approves a  supervisory  merger to resolve  problems  related  to  operation  of
Employer  or when  Employer  is  determined  by the Board to be in an unsafe and
unsound condition.  Any rights of the parties that have already vested, however,
shall not be affected by such action.

     13. Should  Employee die after  termination of his employment with Employer
while any amounts are payable to him hereunder,  this  Agreement  shall inure to
the  benefit of and be  enforceable  by  Employee's  executors,  administrators,
heirs,  distributees,  devisees and legatees and all amounts  payable  hereunder
shall be paid in  accordance  with the  terms of this  Agreement  to  Employee's
devisee,  legatee or other  designee  or, if there is no such  designee,  to his
estate.

     14. For purposes of this  Agreement,  notices and all other  communications
provided  for herein  shall be in writing and shall be deemed to have been given
when delivered or mailed by United States  registered or certified mail,  return
receipt requested, postage prepaid, addressed as follows:

         If to Employee:    Frank R. Stewart
                            310 Garden Park
                            Spencer, Indiana   47460

         If to Employer:    Owen Community Bank, s.b.
                            279 East Morgan Street
                            P.O. Box 187
                            Spencer, Indiana   47460

or to such address as either party hereto may have  furnished to the other party
in writing in  accordance  herewith,  except  that  notices of change of address
shall be effective only upon receipt.

     15. The validity,  interpretation,  and performance of this Agreement shall
be governed by the laws of the State of Indiana, except as otherwise required by
mandatory operation of federal law.

     16. Employer shall require any successor  (whether  direct or indirect,  by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business or assets of Employer, by agreement in form and substance  satisfactory
to Employee to expressly  assume and agree to perform this Agreement in the same
manner and same extent that Employer  would be required to perform it if no such
succession had taken place.  Failure of Employer to obtain such agreement  prior
to the  effectiveness  of any such  succession  shall be a material  intentional
breach of this  Agreement.  As used in this  Agreement,  "Employer"  shall  mean
Employer as hereinbefore  defined and any successor to its business or assets as
aforesaid.

     17. No provision of this  Agreement  may be modified,  waived or discharged
unless such waiver,  modification or discharge is agreed to in writing signed by
Employee  and  Employer.  No waiver by  either  party  hereto at any time of any
breach by the other  party  hereto of, or  compliance  with,  any  condition  or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver  of  dissimilar  provisions  or  conditions  at the  same or any  prior
subsequent time. No agreements or representation,  oral or otherwise, express or
implied,  with  respect to the  subject  matter  hereof have been made by either
party which are not set forth expressly in this Agreement.

     18. The invalidity or  unenforceability of any provisions of this Agreement
shall not affect the validity or  enforceability of any other provisions of this
Agreement which shall remain in full force and effect.

     19. This  Agreement  may be executed in one or more  counterparts,  each of
which shall be deemed an original but all of which together shall constitute one
and the same agreement.

     20. This  Agreement is personal in nature and neither  party hereto  shall,
without consent of the other, assign or transfer this Agreement or any rights or
obligations  hereunder  except as  provided  in section 13 and section 16 above.
Without  limiting  the  foregoing,  Employee's  right  to  receive  compensation
hereunder shall not be assignable or transferable,  whether by pledge,  creation
of a security interest or otherwise, other than a transfer by his will or by the
laws of descent or  distribution  as set forth in section 13 hereof,  and in the
event of any  attempted  assignment  or  transfer  contrary  to this  paragraph,
Employer  shall have no liability to pay any amounts so attempted to be assigned
or transferred.
<PAGE>

     IN WITNESS  WHEREOF,  the parties have caused the  Agreement to be executed
and delivered as of the day and year first above set forth.

                                     OWEN COMMUNITY BANK, s.b.


                                     By: /s/ Kurt J. Meier
                                        ----------------------------------------
                                              Kurt J. Meier, President

                                                      "Employer"


                                     /s/ Frank R. Stewart
                                     -------------------------------------------
                                     Frank R. Stewart

                                                      "Employee"


           The undersigned, Home Financial Bancorp, sole shareholder of
  Employer, agrees that if it shall be determined for any reason that any
  obligations on the part of Employer to continue to make any payments due under
  this Agreement to Employee is unenforceable for any reason, Home Financial
  Bancorp, agrees to honor the terms of this Agreement and continue to make any
  such payments due hereunder to Employee pursuant to the terms of this
  Agreement.


                                     HOME FINANCIAL BANCORP


                                     By: /s/ Kurt J. Meier
                                        ----------------------------------------
                                              Kurt J. Meier, President