Document:

EXHIBIT 10.3
                              EMPLOYMENT AGREEMENT

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                         EXECUTIVE EMPLOYMENT AGREEMENT

      This Executive Employment Agreement ("Agreement") is made and entered into
as of June 29, 2004 (the "Effective  Date") by and between First Federal Savings
and Loan Association of Edwardsville (the "Association"),  a federally chartered
stock savings association,  with its principal  administrative office at 300 St.
Louis  Street,   Edwardsville,   Illinois   62025,   and  Larry  W.  Mosby  (the
"Executive"). References to the "Company" mean First Federal Financial Services,
Inc.

      WHEREAS,  the  Executive is currently  employed as the President and Chief
Executive Officer of the Association; and

      WHEREAS,  the  Association  recognizes the  substantial  contribution  the
Executive  has made to the  Association  and  wishes  to  protect  his  position
therewith for the period provided in the Agreement; and

      WHEREAS,  the  Association  desires  to  assure  itself  of the  continued
services of Executive pursuant to the terms of this Agreement.

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

1.    POSITION AND RESPONSIBILITIES

      During the period of his employment  hereunder,  Executive agrees to serve
as President and Chief Executive Officer of the Association. During said period,
Executive  also agrees to serve,  if elected,  as an officer and director of any
subsidiary or affiliate of the Association.

2.    TERMS AND DUTIES

      (a) The period of Executive's  employment under this Agreement shall begin
as of the date first above  written  and shall  continue  for six full  calendar
months thereafter. Commencing on December 31, 2004 and continuing on December 31
of  each  year  thereafter  (the   "Anniversary   Date")  this  Agreement  shall
automatically renew for an additional year, unless written notice of non-renewal
("Non-Renewal  Notice") is provided to Executive at least (30) days and not more
than (60) days prior to any such  Anniversary  Date,  that his employment  shall
cease at the end of twelve (12) full calendar months  following such Anniversary
Date. Prior to each notice period of non-renewal,  the disinterested  members of
the Board of Directors of the Association ("Board") will conduct a comprehensive
performance  evaluation  and review of the Executive for purposes of determining
whether to extend the  Agreement,  and the results  thereof shall be included in
the minutes of the Board's  meeting.  Executive's  duties  shall  include  those
customarily  performed by a President and Chief  Executive  Officer of a savings
and  loan  association,   including  activities  and  services  related  to  the
organization,  operation,  and  management  of the  Association,  and such other
duties  as may be  determined  by the  Association's  Board  of  Directors  (the
"Association  Board") from time to time. Executive shall at all times faithfully
perform his duties in the highest professional, ethical, and legal manner and in
accordance  with the directives  issued and policies  adopted by the Association
Board.

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      (b) During the period of his employment  hereunder,  except for periods of
absence  occasioned by illness,  reasonable  vacation  periods,  and  reasonable
leaves of absence,  Executive  shall  faithfully  perform  his duties  hereunder
including  activities ands services related to the  organization,  operation and
management of the Association.

3.    COMPENSATION AND REIMBURSEMENT.

      (a) The  compensation  specified under this Agreement shall constitute the
salary and benefits paid for the duties  described in Section 2. The Association
shall pay Executive as  compensation a salary not less than  $96,036.00 per year
("Base Salary"). Such Base Salary shall be payable monthly or in accordance with
such other periodic payroll periods as the Association may adopt for the payment
of its management  employees.  During the period of this Agreement,  Executive's
base salary shall be reviewed at least  annually;  the first such review will be
made no later than  December  30,  2004 and by  December  30 of each  subsequent
calendar year during the term of this Agreement.  Such review shall be conducted
by a Committee  designated  by the Board,  and the Board may  increase,  but not
decrease,  Executive's  Base Salary (an increase in Base Salary shall become the
"Base  Salary" for purposes of this  Agreement).  In addition to the Base Salary
provided in Section 3(a), the Association  shall provide Executive at no cost to
Executive  with all such other  benefits as are provided  uniformly to permanent
full-time employees of the Association.

      (b) The Association  will provide  Executive with employee  benefit plans,
arrangement and perquisites substantially equivalent to those in which Executive
was  participating or otherwise  deriving benefit from immediately  prior to the
beginning of the term of this Agreement,  and the Association  will not, without
Executive's prior written consent, make any changes in such plans,  arrangements
or  perquisites  which would  adversely  affect  Executive's  rights or benefits
thereunder.  Without limiting the generality of the foregoing provisions of this
Section 3(b),  Executive will be entitled to participate in or receive  benefits
under any  employee  benefit  plans,  including  but not limited to,  retirement
plans,  supplemental  retirement  plans,  pension plans,  profit-sharing  plans,
health and accident plans,  medical  coverage or any other employee benefit plan
or  arrangement  made  available by the  Association in the future to its senior
executives and key management  employees,  subject to and on a basis  consistent
with the  terms,  conditions,  and  overall  administration  of such  plans  and
arrangements.  Executive will be entitled to incentive  compensation and bonuses
as provided in any plan of the Association in which the Executive is eligible to
participate  (and he shall be  entitled  to a pro rata  distribution  under  any
incentive  compensation  or bonus plan as to any year in which a termination  of
employment  occurs,  other than  termination  for  Cause).  Nothing  paid to the
Executive  under  any such plan or  arrangement  will be deemed to be in lieu of
other compensation to which the Executive is entitled under this Agreement.

4.    OUTSIDE ACTIVITIES.

      The Executive may serve as a member of the board of directors of business,
community  and  charitable  organizations  subject to the approval of the Board,
provided that in each case such service shall not materially  interfere with the
performance  of his duties  under this  Agreement  or

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present any conflict of interest.  Such service to and  participation in outside
organization  shall be presumed for these  purposes to be for the benefit of the
Association,  and the  Association  shall reimburse the Executive his reasonable
expenses associated therewith.

5.    WORKING FACILITIES AND EXPENSES

      The   Executive's   principal   place  of  employment   shall  be  at  the
Association's principal offices. The Association shall provide the Executive, at
his principal place of employment,  with a private office, stenographic services
and other  support  services and  facilities  suitable to his position  with the
Association  and necessary or appropriate in connection  with the performance of
his duties under this Agreement.  The Association  shall reimburse the Executive
for his ordinary and necessary business expenses incurred in connection with the
performance of his duties under this Agreement,  including,  without limitation,
fees for  memberships  in such clubs and  organizations  that  Executive and the
Board  mutually  agree are necessary and  appropriate to further the business of
the Association, and travel and reasonable entertainment expenses. Reimbursement
of such  expenses  shall be made  upon  presentation  to the  Association  of an
itemized  account of the expenses in such form as he Association  may reasonably
require.

6.    VESTING UPON AN EVENT OF TERMINATION

      Upon the  occurrence  of an  Event  of  Termination,  the  Executive  will
immediately  vest  in any  outstanding  unvested  stock  options  or  shares  of
restricted  stock of the Company that have been  awarded,  except as provided in
Section 8 of this Agreement.

7.    TERMINATION UPON RETIREMENT, DISABILITY OR DEATH

      For  purposes  of  this  Agreement,  termination  by  the  Association  of
Executive's  employment based on the "Retirement"  shall mean termination of the
Executive's  employment by the  Association  upon  attainment of age 65, or such
later  date  as  determined  by  the  Board.  Upon  termination  of  Executive's
employment  upon  Retirement,  Executive shall be entitled to all benefits under
any retirement plan of the Association.

      For purposes of this Agreement,  "Disability"  means:  Executive  becoming
materially  incapacitated  from fully performing  Executive's  duties under this
Agreement  (taking into account  reasonable  accommodation by the Association to
the  extent  required  by law) by reason of any  illness,  injury,  or any other
condition for any period of time in excess of the paid and unpaid leave to which
he may then be  entitled  pursuant  to the  Association's  policies as may be in
effect from time to time or by law.  Provided,  nothing in this paragraph  shall
limit Executive's  rights under the Family Medical Leave Act, the Americans With
Disabilities  Act, or any other applicable law. In the event Executive is unable
to perform his duties under this  Agreement by reason of illness or  disability,
the  Association  may terminate this  Agreement,  provided that the  Association
shall  continue to be obligated to pay the  Executive's  Base Salary for six (6)
months after such  termination,  provided further than any amounts actually paid
to the Executive pursuant to any such disability insurance or other similar such
program  which the  Association  has  provided  or may  provide on behalf of its
employees or pursuant to any  workman's or social

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security  disability  program  shall reduce the  compensation  to be paid to the
Executive pursuant to this paragraph.

      In the event of Executive's  death during the term of the  Agreement,  his
estate,  legal  representatives  or  named  beneficiaries  (as  directed  by the
Executive  in  writing),  shall be paid  Executive's  Base  Salary as defined in
Paragraph  3(a) at the rate in  effect  at the time of  Executive's  death for a
period  of six (6)  months  from  the  date of the  Executive's  death,  and the
Association will continue to provide medical,  dental, family and other benefits
normally provided for an Executive's family for six (6) months after Executive's
death, at the expense of the Association.

8.    TERMINATION FOR CAUSE

      The term  "Termination  for Cause" shall mean  termination  because of the
Executive's personal dishonesty, incompetence, willful misconduct, any breach of
fiduciary duty involving  personal profit,  intentional or negligent  failure to
perform his duties,  willful  violation of any law,  rule, or regulation  (other
than minor traffic  violations or similar  offenses) or final cease-and-  desist
order,  or material  breach of any provision of this  Agreement.  In determining
incompetence,  the  acts  or  omissions  shall  be  measured  against  standards
generally  prevailing in the savings institution  industry.  Executive shall not
have the right to receive  compensation  or other  benefits for any period after
Termination  for Cause.  Any stock option  granted to Executive  under any stock
option plan of the  Association,  the  Company or any  subsidiary  or  affiliate
thereof, shall become null and void effective upon Executive's receipt of Notice
of  Termination  for  Cause  pursuant  to  Section  9  hereof,  and shall not be
exercisable by Executive at any time subsequent to such Termination for Cause.

9.    NOTICE

      (a) Any  termination of this Agreement by the  Association or by Executive
shall be  communicated  by Notice of Termination to the other party hereto.  For
purposes  of this  Agreement,  a "Notice  of  Termination"  shall mean a written
notice which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive's  employment  under the
provision so indicated.

      (b) "Date of  Termination"  shall mean (A) if  Executive's  employment  is
terminated  for  Disability,  thirty (30) days after a Notice of  Termination is
given (provided that he shall not have returned to the performance of his duties
on a  full-time  basis  during  such  thirty  (30) day  period),  and (B) if his
employment is terminated for any other reason,  the date specified in the Notice
of Termination (which, in the case of a Termination for Cause, shall be the date
such Notice of Termination is given).

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10.   POST-TERMINATION OBLIGATIONS

      (a) All payments and benefits to Executive  under this Agreement  shall be
subject to Executive's  compliance with paragraph (b) of this Section during the
term of this  Agreement  and for one (1)  full  year  after  the  expiration  of
termination hereof.

      (b) Executive shall, upon reasonable notice,  furnish such information and
assistance to the  Association as may reasonably be required by the  Association
in  connection  with any  litigation in which it or any of its  subsidiaries  or
affiliates  is,  or may  become,  a  party.  In  consideration  for  Executive's
assistance,  the  Association  shall  compensate  Executive at an hourly rate as
reasonably determined by the Board.

11.   NON-COMPETITION

      (a) Executive  agrees that he will not Compete (as defined below) anywhere
within  the  Non-Compete  Area  (as  defined  below)  at  any  time  during  the
Non-Compete Period (as defined below).

      (b) For purposes of this Employment Agreement, "Compete," "Competes with,"
"Competing," and similar terms mean to work for or advise, consult with, assist,
or otherwise serve, directly or indirectly,  whether as an employee, independent
contractor, director, consultant, owner, or otherwise, any commercial bank, home
savings  bank,  savings and loan  association,  credit  union,  other  financial
institution,  or  other  entity  whose  business  materially  competes  with the
depository,  lending,  or other  business  activities  of the  Association,  the
Company, or any other affiliate (but as to affiliates other than the Association
or the Company,  only those that are existing and  constitute  affiliates  while
Executive is employed by the  Association,  the Company,  or another  affiliate,
whether such employment is pursuant to this Agreement or otherwise).

      (c) The  "Non-Compete  Area"  means all of St.  Clair  County and  Madison
County in  Illinois.  For  purposes of this  Agreement,  Executive's  activities
during the Non-Compete  Period shall be deemed to be within the Non-Compete Area
(i) Executive is employed by, consults with, or otherwise  assists or serves any
bank, home savings bank, credit union,  savings and loan  association,  or other
financial institution that has an office within Madison or St. Clair Counties in
Illinois,  regardless of the location of Executive's  principal  office, if any,
provided  for him by such  entity,  or (ii)  Executive  would  be  deemed  to be
Competing in the  Non-Compete  Area without regard to this  sentence.  Provided,
however,  clause (i) of the preceding  sentence  shall not apply if Executive is
employed in a state other than Illinois or Missouri.  Executive acknowledges and
agrees  that the  scope of the  restriction  on  Competing  as set forth in this
paragraph is  reasonable  because of the clarity and  reduction of the chance of
ambiguity it provides and in view of the ease with which banking business may be
transacted  electronically  and by other  means that would  otherwise  allow the
spirit and intent of the provisions of this Section 11 to be frustrated.

      (d) The "Non-Compete Period" means the time period from the Effective Date
until one (1) year after the later of the termination of this  Agreement,  or if
Executive is employed by the

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Association,  Company or another  affiliate at any time after the termination of
this  Agreement,  the  termination of Executive's  employment by such affiliate,
regardless of the reason for termination  and regardless of whether  termination
is initiated by Executive or by the Association, Company or other affiliate.

      (e) Executive  agrees that he will not, at any time during the Non-Compete
Period:  (i)  induce or  attempt to induce any person to leave the employ of the
Association, Company or any other affiliate; or (ii) induce or attempt to induce
any  customer  or  potential   customer  not  to  transact   business  with  the
Association,  Company or any other affiliate,  or to transact  business with any
entity that Competes with the Association, Company or any Affiliate.

      (f) The  restrictions on Executive's  activities  shall cease to apply and
Executive  shall be  permitted to Compete  without  restriction  if  Executive's
employment is terminated other than for Cause,  including the Association giving
Executive a Non-Renewal  Notice. The aforementioned  restrictions on Executive's
activities  shall  apply and  Executive  shall not be  permitted  to  Compete if
Executive gives Association a Non-Renewal Notice or terminates his employment in
breach of this Agreement.

12.   CONFIDENTIAL INFORMATION

      (a)  Executive  recognizes  and  acknowledges  that the  knowledge  of the
business activities and plans for business activities of the Association, as may
exist  from  time to time,  are  valuable,  special,  and  unique  assets of the
Association.  Executive  acknowledges  that the business of the  Association  is
highly  competitive  and that the  Association  has  provided  and will  provide
Executive with access to Confidential Information (as defined below) relating to
the business of the  Association,  the Company and other  Affiliates.  Executive
agrees that he will not, during or after  Executive's  employment has terminated
with the Association, make any disclosure of Confidential Information except (i)
as necessary in the  performance  of his duties on behalf of the  Association or
another  Affiliate,  (ii) as may be  required  to be  provided to any federal or
state banking agency with  jurisdiction  over the  Association or Executive,  or
(iii) as may be  required  by any  court  order  or  lawfully  issued  subpoena.
Executive also agrees to preserve and protect the  confidentiality of each third
party's confidential information (such as, for example, confidential information
of a customer  of the  Association  obtained by  Executive  in the course of his
employment)  to the same  extent,  and on the same  basis,  as the  Confidential
Information.

      (b) For purposes of this Agreement,  "Confidential  Information" means and
includes the  confidential  or proprietary  information,  business and marketing
plans,  and trade secrets that have been or are  hereafter  developed or used by
the Association, the Company or any other Affiliate and which cannot be obtained
readily  by  third  parties  from  outside  sources.   Confidential  Information
includes,  by way of example and without limitation,  the following  information
regarding:  (i) plans for  additional  branches,  possible  locations  of future
branches,  and the plans for the marketing of business at those  branches;  (ii)
customers  (including,  but not limited to, the name, title, and position of the
customer's  key personnel  with respect to business (of the type  conducted with
Association  or any  other  Affiliate,  and  the  specific  needs,  preferences,
concerns, corporate "personality," and other information about any customer that
is or would be  useful  in  obtaining  and  maintaining  the  customer's  repeat
business  and   goodwill);   (iii)   employees  and

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applicants  for  employment   (including,   but  not  limited  to,   educational
background,  particular skills and abilities,  work history,  compensation data,
work preferences,  home telephone number,  address,  current  availability,  and
other information that is useful in attracting and assessing  qualified employee
applicants); and (iv) marketing, financial, and industry information that is not
generally  known to the  public  (including,  but not  limited  to,  strategies,
financial information, methods, and proposals).

      (c) The  provisions  of this Section 12 may be enforced by an action for a
temporary restraining order,  preliminary injunction,  and permanent injunction,
in addition to all other remedies  available to the  Association in equity or at
law.

      (d) The terms of this  Section 12 shall  survive the  termination  of this
Agreement and the termination of Executive's employment.

13.   SOURCE OF PAYMENTS

      (a) All payments  provided in this Agreement  shall be timely paid in case
or check  from the  general  funds of the  Association.  The  Company,  however,
guarantees  payment and  provision of all amounts and benefits due  hereunder to
Executive  and, if such amounts and benefits  due from the  Association  are not
timely paid or provided by the  Association,  such amounts and benefits shall be
paid or provided by the Company.

      (b)  Notwithstanding  any provision herein to the contrary,  to the extent
that  payments  and  benefits,  as  provided by this  Agreement,  are paid to or
received by the  Executive  from the  Company,  such  compensation  payments and
benefits paid by the Company will be subtracted from amounts due  simultaneously
to the Executive under similar  provisions of this Agreement.  Payments pursuant
to this Agreement  shall be allocated in proportion to the level of activity and
the time expended on such activities by the Executive determined the Company and
he Association on a quarterly basis.

14.   NO EFFECT ON EMPLOYEE QUALIFIED BENFIT PLANS OR PROGRAMS

      The  termination  of the  Executive's  employment  during the term of this
Agreement or thereafter,  whether by the Company of the Executive, shall have no
effect  on the  vested  rights  of the  Executive  under  the  Company's  or the
Association's  qualified  retirement,  pension,  profit sharing,  or stock bonus
plans.

15.   REQUIRED REGULATORY PROVISIONS

      (a) The Association may terminate the Executive's  employment at any time,
provided it pays Executive through the next Anniversary Date of the Agreement.

      (b)  If  the  Executive  is  suspended  from  office  and/or   temporarily
prohibited from  participating in the conduct of the Association's  affairs by a
notice  served  under  Section  8(e)(3) (12 USC  ss.1818(e)(3))  or 8(g) (12 USC
ss.1818(g))  of the Federal  Deposit  Insurance Act, as amended by the Financial
Institutions  Reform,  Recovery and  Enforcement  Act of 1989, the

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Associations  obligations  under this contract shall be suspended as of the date
of service,  unless  stayed by  appropriate  proceedings.  If the charges in the
notice  are  dismissed,  the  Association  may in its  discretion  (i)  pay  the
Executive  all or  part  of  the  compensation  withheld  while  their  contract
obligations  were  suspended and (ii) reinstate (in whole or in part) any of the
obligations which were suspended.

      (c)  If the  Executive  is  removed  and or  permanently  prohibited  from
participating  in the  conduct of the  Associations  affairs by an order  issued
under Section 8(e) 12  ss.1818(e))  or 8(g) (12 USC  ss.1818(g))  of the Federal
Deposit Insurance Act, as amended by the Financial Institutions Reform, Recovery
and  Enforcement  Act of 1989,  all  obligations of the  Association  under this
contract  shall  terminate  as of the  effective  date of the order,  but vested
rights of the contracting parties shall not be affected.

      (d) If the  Association  is in default as defined in Section  3(x) (12 USC
ss.1813(x)(1)) of the Federal Deposit Insurance Act, as amended by the Financial
Institutions  Reform,  Recovery and  Enforcement Act of 1989, all obligations of
the  Association  under this contract shall terminate as of the date of default,
but this  paragraph  shall not  affect  any  vested  rights  of the  contracting
parties.

      (e) All  obligations  of the  Association  under  this  contract  shall be
terminated, except to the extent determined that continuation of the contract is
necessary for the  continued  operation of the  Association,  (i) by the Federal
Deposit  Insurance  Corporation  ("FDIC"),  at the time the FDIC  enters into an
agreement to provide  assistance  to or on behalf of the  Association  under the
authority  contained in Section 13(c) (12 USC ss.1813(c)) of the Federal Deposit
Insurance  Act, as amended by the Financial  Institutions  Reform,  Recovery and
Enforcement  Act of 1989; or (ii) when the Association is determined by the FDIC
to be in an unsafe or unsound  condition.  Any rights of the  parties  that have
already vested, however, shall not be affected by such action.

      (f)  Notwithstanding  anything  herein  contained  to  the  contrary,  any
payments to the Executive by the Company,  whether pursuant to this Agreement or
otherwise,  are subject to and  conditioned  upon their  compliance with Section
18(k) of the Federal Deposit Insurance Act, 12 U.S.C.  Section 1828(k),  and the
regulations promulgated thereunder in 12 C.F.R. Part 359.

16.   NO ATTACHMENT

      (a) Except as  required by law,  no right to receive  payments  under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance, charge, pledge, or hypothecation, or to the execution,
attachment,  levy,  or similar  process or  assignment  by operation of law, any
attempt,  voluntary  or  involuntary,  to affect any such action  shall be null,
void, and of no effect.

      (b) This  Agreement  shall be binding  upon,  and inure to the benefit of,
Executive  and the  Association  and their  respective  successors  and assigns,
provided  that  Executive  may  not  assign  any of his  rights  or  obligations
hereunder except the right to receive money.

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17.   ENTIRE AGREEEMENT; MODIFICATION AND WAIVER

      (a) This instrument  contains the entire agreement of the parties relating
to the subject matter  hereof,  and supercedes in its entirety any and all prior
agreements,  understandings  or  representations  relating to the subject matter
hereof. No modifications of this Agreement shall be valid unless made in writing
and signed by the parties hereto.

      (b) This  Agreement may not be modified or amended except by an instrument
in writing signed by the parties hereto.

      (c) No term or  condition of this  Agreement  shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver unless  specifically  stated therein,  and each such waiver shall operate
only as to the  specific  term or  condition  waived and shall not  constitute a
waiver of such term or  condition  for the  future as to any act other than that
specifically waived.

18.   SEVERABILITY

      If, for any reason,  any provision of this  Agreement,  or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this  Agreement or any part of such  provision not held so invalid,  and each
such other  provision  and part thereof  shall to the full extent be  consistent
with law continue in full force and effect.

19.   HEADINGS FOR REFERENCE ONLY

      The  headings  of  sections  and  paragraphs  herein  included  solely for
convenience of reference and shall not control the meaning of  interpretation of
any of the provisions of this Agreement.

20.   GOVERNING LAW

      This Agreement  shall be governed by the laws of the State of Illinois but
only to the extent not superceded by federal law.

21.   ARBITRATION

      Any  dispute  arising  under  or in  connection  with  this  Agreement  or
Executive's  employment by Association or the Company shall be resolved pursuant
to  arbitration  provided that nothing  herein shall  prevent  either party from
seeking  a  temporary  restraining  order,  preliminary  injunction,   permanent
injunction,  or other  equitable  relief for breach or threatened  breach by the
other party of any of the terms of this Agreement. All other disputes, including
all disputes for money damages, shall be resolved by arbitration.

      (a) The arbitration  shall be conducted  before an arbitrator  selected by
agreement  of the  parties,  and if the parties  fail to agree on an  arbitrator
within  10 days  of any  party  informing

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another that a dispute exists and therewith making a demand for arbitration,  by
the American  Arbitration  Association  ("AAA") in accordance with its rules for
selecting an arbitrator.

      (b) The arbitration shall be conducted at 103 West Vandalia Street,  Suite
300, Edwardsville,  Illinois, or such other place in Madison County, Illinois as
Association may designate.

      (c) The  arbitration  shall be conducted in accordance with the AAA's then
effective  arbitration rules. The arbitrator shall have all of the powers,  both
in law and in equity,  that would be available  to a court  having  jurisdiction
over the parties and over the subject  matter of the dispute,  but not the power
to award punitive damages.  Such powers shall include,  but shall not be limited
to,  the  power  to  require  specific  performance.  Judgment  upon an award in
arbitration   may  be  entered  in  any  court.   The  parties  agree  that  the
determination  of any  dispute  that may  arise is  essential  and agree to seek
speedy processing of any dispute by the arbitrator.

22.   INDEMNIFICATION

      During the term of this Agreement and for a period of (1) year thereafter,
the  Association  shall provide  Executive at its expense  (including his heirs,
executors and  administrators)  with coverage under the same standard  directors
and officers liability  insurance policy provided to its directors and officers,
if  any,  and  shall   indemnify   Executive  (and  his  heirs,   executors  and
administrators)  to the fullest extent  permitted  under federal law against 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 director or officer of the Association (whether or not
he continues to be a director or officer at the time of incurring  such expenses
or liabilities),  such expenses and liabilities to include,  but not limited to,
judgment,  court costs and attorney fees and the cost of reasonable  settlements
(such  settlements  must be  approved  by the Board).  If such  action,  suit or
proceeding  is  brought  against  Executive  in his  capacity  as an  officer or
director of the Association,  however,  such indemnification shall not extend to
matters as to which  Executive  is  finally  adjudged  to be liable for  willful
misconduct in the performance of his duties.

23.   SUCCESSOR TO THE ASSOCIATION

      The Association shall require any successor or assignee, whether direct or
indirect,  by  purchase,   merger,   consolidation  or  otherwise,   to  all  or
substantially  all  the  business  assets  of the  Association  or the  Company,
expressly and  unconditionally  to assume and agree to perform the Association's
obligations under this Agreement, in the same manner and to the same extent that
the Association would be required to perform if no such succession or assignment
had taken place.

                                       10
<PAGE>

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

ATTEST:                                  FIRST FEDERAL SAVINGS AND LOAN
                                         ASSOCIATION OF EDWARDSVILLE

/s/ Linda Werner                         By: Joseph B. Helms
----------------------------                 -----------------------------------
Secretary

ATTEST:                                  FIRST FEDERAL FINANCIAL SERVICES,
                                         INC.

/s/ Linda Werner                         By: Joseph B. Helms
----------------------------                 -----------------------------------
Secretary

                                         EXECUTIVE:

                                         /s/ Larry W. Mosby
                                         ---------------------------------------
                                         Larry W. Mosby

                                       11EXHIBIT 10.4
                              EMPLOYMENT AGREEMENT

<PAGE>

                         EXECUTIVE EMPLOYMENT AGREEMENT

      This Executive Employment Agreement ("Agreement") is made and entered into
as of June 29, 2004 (the "Effective  Date") by and between First Federal Savings
and Loan Association of Edwardsville  (the  "Association"),  a federally charted
stock savings association,  with its principal  administrative office at 300 St.
Louis  Street,   Edwardsville,   Illinois   62025,   and  Donald   Engelke  (the
"Executive"). References to the "Company" mean First Federal Financial Services,
Inc.

      WHEREAS,  the  Executive is currently  employed as the Vice  President and
Chief Financial Officer of the Association; and

      WHEREAS,  the  Association  recognizes the  substantial  contribution  the
Executive  has made to the  Association  and  wishes  to  protect  his  position
therewith for the period provided in the Agreement; and

      WHEREAS,  the  Association  desires  to  assure  itself  of the  continued
services of Executive pursuant to the terms of this Agreement.

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

1.    POSITION AND RESPONSIBILITIES

      During the period of his employment  hereunder,  Executive agrees to serve
as Vice President and Chief Financial  Officer of the  Association.  During said
period,  Executive also agrees to serve, if elected,  as an officer and director
of any subsidiary or affiliate of the Association.

2.    TERMS AND DUTIES

      (a) The period of Executive's  employment under this Agreement shall begin
as of the date first above  written  and shall  continue  for six full  calendar
months thereafter. Commencing on December 31, 2004 and continuing on December 31
of  each  year  thereafter  (the   "Anniversary   Date")  this  Agreement  shall
automatically renew for an additional year, unless written notice of non-renewal
("Non-Renewal  Notice") is provided to Executive at least (30) days and not more
than (60) days prior to any such  Anniversary  Date,  that his employment  shall
cease at the end of twelve (12) full calendar months  following such Anniversary
Date. Prior to each notice period of non-renewal,  the disinterested  members of
the Board of Directors of the Association ("Board") will conduct a comprehensive
performance  evaluation  and review of the Executive for purposes of determining
whether to extend the  Agreement,  and the results  thereof shall be included in
the minutes of the Board's  meeting.  Executive's  duties  shall  include  those
customarily  performed  by a Vice  President  and Chief  Financial  Officer of a
savings and loan association,  including  activities and services related to the
financial operation and management of the Association,  and such other duties as
may be  determined by the  Association's  Board of Directors  (the  "Association
Board") from time to time.  Executive shall at all times faithfully

<PAGE>

perform his duties in the highest professional, ethical, and legal manner and in
accordance  with the directives  issued and policies  adopted by the Association
Board.

      (b) During the period of his employment  hereunder,  except for periods of
absence  occasioned by illness,  reasonable  vacation  periods,  and  reasonable
leaves of absence,  Executive  shall  faithfully  perform  his duties  hereunder
including  activities ands services related to the  organization,  operation and
management of the Association.

3.    COMPENSATION AND REIMBURSEMENT.

      (a) The  compensation  specified under this Agreement shall constitute the
salary and benefits paid for the duties  described in Section 2. The Association
shall pay Executive as  compensation a salary not less than  $67,044.00 per year
("Base Salary"). Such Base Salary shall be payable monthly or in accordance with
such other periodic payroll periods as the Association may adopt for the payment
of its management  employees.  During the period of this Agreement,  Executive's
base salary shall be reviewed at least  annually;  the first such review will be
made no later than  December  30,  2004 and by  December  30 of each  subsequent
calendar year during the term of this Agreement.  Such review shall be conducted
by a Committee  designated  by the Board,  and the Board may  increase,  but not
decrease,  Executive's  Base Salary (an increase in Base Salary shall become the
"Base  Salary" for purposes of this  Agreement).  In addition to the Base Salary
provided in Section 3(a), the Association  shall provide Executive at no cost to
Executive  with all such other  benefits as are provided  uniformly to permanent
full-time employees of the Association.

      (b) The Association  will provide  Executive with employee  benefit plans,
arrangement and perquisites substantially equivalent to those in which Executive
was  participating or otherwise  deriving benefit from immediately  prior to the
beginning of the term of this Agreement,  and the Association  will not, without
Executive's prior written consent, make any changes in such plans,  arrangements
or  perquisites  which would  adversely  affect  Executive's  rights or benefits
thereunder.  Without limiting the generality of the foregoing provisions of this
Section 3(b),  Executive will be entitled to participate in or receive  benefits
under any  employee  benefit  plans,  including  but not limited to,  retirement
plans,  supplemental  retirement  plans,  pension plans,  profit-sharing  plans,
health and accident plans,  medical  coverage or any other employee benefit plan
or  arrangement  made  available by the  Association in the future to its senior
executives and key management  employees,  subject to and on a basis  consistent
with the  terms,  conditions,  and  overall  administration  of such  plans  and
arrangements.  Executive will be entitled to incentive  compensation and bonuses
as provided in any plan of the Association in which the Executive is eligible to
participate  (and he shall be  entitled  to a pro rata  distribution  under  any
incentive  compensation  or bonus plan as to any year in which a termination  of
employment  occurs,  other than  termination  for  Cause).  Nothing  paid to the
Executive  under  any such plan or  arrangement  will be deemed to be in lieu of
other compensation to which the Executive is entitled under this Agreement.

4.    OUTSIDE ACTIVITIES.

                                       2
<PAGE>

      The Executive may serve as a member of the board of directors of business,
community  and  charitable  organizations  subject to the approval of the Board,
provided that in each case such service shall not materially  interfere with the
performance  of his duties  under this  Agreement  or present  any  conflict  of
interest.  Such service to and  participation in outside  organization  shall be
presumed for these  purposes to be for the benefit of the  Association,  and the
Association  shall  reimburse the Executive his reasonable  expenses  associated
therewith.

5.    WORKING FACILITIES AND EXPENSES

      The   Executive's   principal   place  of  employment   shall  be  at  the
Association's principal offices. The Association shall provide the Executive, at
his principal place of employment,  with a private office, stenographic services
and other  support  services and  facilities  suitable to his position  with the
Association  and necessary or appropriate in connection  with the performance of
his duties under this Agreement.  The Association  shall reimburse the Executive
for his ordinary and necessary business expenses incurred in connection with the
performance of his duties under this Agreement,  including,  without limitation,
fees for  memberships  in such clubs and  organizations  that  Executive and the
Board  mutually  agree are necessary and  appropriate to further the business of
the Association, and travel and reasonable entertainment expenses. Reimbursement
of such  expenses  shall be made  upon  presentation  to the  Association  of an
itemized  account of the expenses in such form as he Association  may reasonably
require.

6.    VESTING UPON AN EVENT OF TERMINATION

      Upon the  occurrence  of an  Event  of  Termination,  the  Executive  will
immediately  vest  in any  outstanding  unvested  stock  options  or  shares  of
restricted  stock of the Company that have been  awarded,  except as provided in
Section 8 of this Agreement.

7.    TERMINATION UPON RETIREMENT, DISABILITY OR DEATH

      For  purposes  of  this  Agreement,  termination  by  the  Association  of
Executive's  employment based on the "Retirement"  shall mean termination of the
Executive's  employment by the  Association  upon  attainment of age 65, or such
later  date  as  determined  by  the  Board.  Upon  termination  of  Executive's
employment  upon  Retirement,  Executive shall be entitled to all benefits under
any retirement plan of the Association.

      For purposes of this Agreement,  "Disability"  means:  Executive  becoming
materially  incapacitated  from fully performing  Executive's  duties under this
Agreement  (taking into account  reasonable  accommodation by the Association to
the  extent  required  by law) by reason of any  illness,  injury,  or any other
condition for any period of time in excess of the paid and unpaid leave to which
he may then be  entitled  pursuant  to the  Association's  policies as may be in
effect from time to time or by law.  Provided,  nothing in this paragraph  shall
limit Executive's  rights under the Family Medical Leave Act, the Americans With
Disabilities  Act, or any other applicable law. In the event Executive is unable
to perform his duties under this  Agreement by reason of illness or  disability,
the  Association  may terminate this  Agreement,  provided that the  Association
shall  continue to be obligated to pay the  Executive's  Base Salary for six (6)
months after such  termination,  provided further than any amounts actually paid
to the Executive pursuant

                                       3
<PAGE>

to any such  disability  insurance  or other  similar  such  program  which  the
Association  has provided or may provide on behalf of its  employees or pursuant
to any  workman's  or  social  security  disability  program  shall  reduce  the
compensation to be paid to the Executive pursuant to this paragraph.

      In the event of Executive's  death during the term of the  Agreement,  his
estate,  legal  representatives  or  named  beneficiaries  (as  directed  by the
Executive  in  writing),  shall be paid  Executive's  Base  Salary as defined in
Paragraph  3(a) at the rate in  effect  at the time of  Executive's  death for a
period  of six (6)  months  from  the  date of the  Executive's  death,  and the
Association will continue to provide medical,  dental, family and other benefits
normally provided for an Executive's family for six (6) months after Executive's
death, at the expense of the Association.

8.    TERMINATION FOR CAUSE

      The term  "Termination  for Cause" shall mean  termination  because of the
Executive's personal dishonesty, incompetence, willful misconduct, any breach of
fiduciary duty involving  personal profit,  intentional or negligent  failure to
perform his duties,  willful  violation of any law,  rule, or regulation  (other
than minor traffic  violations or similar  offenses) or final cease-and-  desist
order,  or material  breach of any provision of this  Agreement.  In determining
incompetence,  the  acts  or  omissions  shall  be  measured  against  standards
generally  prevailing in the savings institution  industry.  Executive shall not
have the right to receive  compensation  or other  benefits for any period after
Termination  for Cause.  Any stock option  granted to Executive  under any stock
option plan of the  Association,  the  Company or any  subsidiary  or  affiliate
thereof, shall become null and void effective upon Executive's receipt of Notice
of  Termination  for  Cause  pursuant  to  Section  9  hereof,  and shall not be
exercisable by Executive at any time subsequent to such Termination for Cause.

9.    NOTICE

      (a) Any  termination of this Agreement by the  Association or by Executive
shall be  communicated  by Notice of Termination to the other party hereto.  For
purposes  of this  Agreement,  a "Notice  of  Termination"  shall mean a written
notice which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive's  employment  under the
provision so indicated.

      (b) "Date of  Termination"  shall mean (A) if  Executive's  employment  is
terminated  for  Disability,  thirty (30) days after a Notice of  Termination is
given (provided that he shall not have returned to the performance of his duties
on a  full-time  basis  during  such  thirty  (30) day  period),  and (B) if his
employment is terminated for any other reason,  the date specified in the Notice
of Termination (which, in the case of a Termination for Cause, shall be the date
such Notice of Termination is given).

                                       4
<PAGE>

10.   POST-TERMINATION OBLIGATIONS

      (a) All payments and benefits to Executive  under this Agreement  shall be
subject to Executive's  compliance with paragraph (b) of this Section during the
term of this  Agreement  and for one (1)  full  year  after  the  expiration  of
termination hereof.

      (b) Executive shall, upon reasonable notice,  furnish such information and
assistance to the  Association as may reasonably be required by the  Association
in  connection  with any  litigation in which it or any of its  subsidiaries  or
affiliates  is,  or may  become,  a  party.  In  consideration  for  Executive's
assistance,  the  Association  shall  compensate  Executive at an hourly rate as
reasonably determined by the Board.

11.   NON-COMPETITION

      (a) Executive  agrees that he will not Compete (as defined below) anywhere
within  the  Non-Compete  Area  (as  defined  below)  at  any  time  during  the
Non-Compete Period (as defined below).

      (b) For purposes of this Employment Agreement, "Compete," "Competes with,"
"Competing," and similar terms mean to work for or advise, consult with, assist,
or otherwise serve, directly or indirectly,  whether as an employee, independent
contractor, director, consultant, owner, or otherwise, any commercial bank, home
savings  bank,  savings and loan  association,  credit  union,  other  financial
institution,  or  other  entity  whose  business  materially  competes  with the
depository,  lending,  or other  business  activities  of the  Association,  the
Company, or any other affiliate (but as to affiliates other than the Association
or the Company,  only those that are existing and  constitute  affiliates  while
Executive is employed by the  Association,  the Company,  or another  affiliate,
whether such employment is pursuant to this Agreement or otherwise).

      (c) The  "Non-Compete  Area"  means all of St.  Clair  County and  Madison
County in  Illinois.  For  purposes of this  Agreement,  Executive's  activities
during the Non-Compete  Period shall be deemed to be within the Non-Compete Area
(i) Executive is employed by, consults with, or otherwise  assists or serves any
bank, home savings bank, credit union,  savings and loan  association,  or other
financial institution that has an office within Madison or St. Clair Counties in
Illinois,  regardless of the location of Executive's  principal  office, if any,
provided  for him by such  entity,  or (ii)  Executive  would  be  deemed  to be
Competing in the  Non-Compete  Area without regard to this  sentence.  Provided,
however,  clause (i) of the preceding  sentence  shall not apply if Executive is
employed in a state other than Illinois or Missouri.  Executive acknowledges and
agrees  that the  scope of the  restriction  on  Competing  as set forth in this
paragraph is  reasonable  because of the clarity and  reduction of the chance of
ambiguity it provides and in view of the ease with which banking business may be
transacted  electronically  and by other  means that would  otherwise  allow the
spirit and intent of the provisions of this Section 11 to be frustrated.

      (d) The "Non-Compete Period" means the time period from the Effective Date
until one (1) year after the later of the termination of this  Agreement,  or if
Executive is employed by the

                                       5
<PAGE>

Association,  Company or another  affiliate at any time after the termination of
this  Agreement,  the  termination of Executive's  employment by such affiliate,
regardless of the reason for termination  and regardless of whether  termination
is initiated by Executive or by the Association, Company or other affiliate.

      (e) Executive  agrees that he will not, at any time during the Non-Compete
Period:  (i)  induce or  attempt to induce any person to leave the employ of the
Association, Company or any other affiliate; or (ii) induce or attempt to induce
any  customer  or  potential   customer  not  to  transact   business  with  the
Association,  Company or any other affiliate,  or to transact  business with any
entity that Competes with the Association, Company or any Affiliate.

      (f) The  restrictions on Executive's  activities  shall cease to apply and
Executive  shall be  permitted to Compete  without  restriction  if  Executive's
employment is terminated other than for Cause,  including the Association giving
Executive a Non-Renewal  Notice. The aforementioned  restrictions on Executive's
activities  shall  apply and  Executive  shall not be  permitted  to  Compete if
Executive gives Association a Non-Renewal Notice or terminates his employment in
breach of this Agreement.

12.   CONFIDENTIAL INFORMATION

      (a)  Executive  recognizes  and  acknowledges  that the  knowledge  of the
business activities and plans for business activities of the Association, as may
exist  from  time to time,  are  valuable,  special,  and  unique  assets of the
Association.  Executive  acknowledges  that the business of the  Association  is
highly  competitive  and that the  Association  has  provided  and will  provide
Executive with access to Confidential Information (as defined below) relating to
the business of the  Association,  the Company and other  Affiliates.  Executive
agrees that he will not, during or after  Executive's  employment has terminated
with the Association, make any disclosure of Confidential Information except (i)
as necessary in the  performance  of his duties on behalf of the  Association or
another  Affiliate,  (ii) as may be  required  to be  provided to any federal or
state banking agency with  jurisdiction  over the  Association or Executive,  or
(iii) as may be  required  by any  court  order  or  lawfully  issued  subpoena.
Executive also agrees to preserve and protect the  confidentiality of each third
party's confidential information (such as, for example, confidential information
of a customer  of the  Association  obtained by  Executive  in the course of his
employment)  to the same  extent,  and on the same  basis,  as the  Confidential
Information.

         (b) For purposes of this Agreement, "Confidential Information" means
and includes the confidential or proprietary information, business and marketing
plans, and trade secrets that have been or are hereafter developed or used by
the Association, the Company or any other Affiliate and which cannot be obtained
readily by third parties from outside sources. Confidential Information
includes, by way of example and without limitation, the following information
regarding: (i) plans for additional branches, possible locations of future
branches, and the plans for the marketing of business at those branches; (ii)
customers (including, but not limited to, the name, title, and position of the
customer's key personnel with respect to business (of the type conducted with
Association or any other Affiliate, and the specific needs, preferences,
concerns, corporate "personality," and other information about any customer that
is or would be useful in obtaining and maintaining the customer's repeat
business and goodwill); (iii) employees and

                                       6
<PAGE>

applicants  for  employment   (including,   but  not  limited  to,   educational
background,  particular skills and abilities,  work history,  compensation data,
work preferences,  home telephone number,  address,  current  availability,  and
other information that is useful in attracting and assessing  qualified employee
applicants); and (iv) marketing, financial, and industry information that is not
generally  known to the  public  (including,  but not  limited  to,  strategies,
financial information, methods, and proposals).

      (c) The  provisions  of this Section 12 may be enforced by an action for a
temporary restraining order,  preliminary injunction,  and permanent injunction,
in addition to all other remedies  available to the  Association in equity or at
law.

      (d) The terms of this  Section 12 shall  survive the  termination  of this
Agreement and the termination of Executive's employment.

13.   SOURCE OF PAYMENTS

      (a) All payments  provided in this Agreement  shall be timely paid in case
or check  from the  general  funds of the  Association.  The  Company,  however,
guarantees  payment and  provision of all amounts and benefits due  hereunder to
Executive  and, if such amounts and benefits  due from the  Association  are not
timely paid or provided by the  Association,  such amounts and benefits shall be
paid or provided by the Company.

      (b)  Notwithstanding  any provision herein to the contrary,  to the extent
that  payments  and  benefits,  as  provided by this  Agreement,  are paid to or
received by the  Executive  from the  Company,  such  compensation  payments and
benefits paid by the Company will be subtracted from amounts due  simultaneously
to the Executive under similar  provisions of this Agreement.  Payments pursuant
to this Agreement  shall be allocated in proportion to the level of activity and
the time expended on such activities by the Executive determined the Company and
he Association on a quarterly basis.

14.   NO EFFECT ON EMPLOYEE QUALIFIED BENFIT PLANS OR PROGRAMS

      The  termination  of the  Executive's  employment  during the term of this
Agreement or thereafter,  whether by the Company of the Executive, shall have no
effect  on the  vested  rights  of the  Executive  under  the  Company's  or the
Association's  qualified  retirement,  pension,  profit sharing,  or stock bonus
plans.

15.   REQUIRED REGULATORY PROVISIONS

      (a) The Association may terminate the Executive's  employment at any time,
provided it pays Executive through the next Anniversary Date of the Agreement.

      (b)  If  the  Executive  is  suspended  from  office  and/or   temporarily
prohibited from  participating in the conduct of the Association's  affairs by a
notice  served  under  Section  8(e)(3) (12 USC  ss.1818(e)(3))  or 8(g) (12 USC
ss.1818(g))  of the Federal  Deposit  Insurance Act, as amended by the Financial
Institutions  Reform,  Recovery and  Enforcement  Act of 1989, the

                                       7
<PAGE>

Associations  obligations  under this contract shall be suspended as of the date
of service,  unless  stayed by  appropriate  proceedings.  If the charges in the
notice  are  dismissed,  the  Association  may in its  discretion  (i)  pay  the
Executive  all or  part  of  the  compensation  withheld  while  their  contract
obligations  were  suspended and (ii) reinstate (in whole or in part) any of the
obligations which were suspended.

      (c)  If the  Executive  is  removed  and or  permanently  prohibited  from
participating  in the  conduct of the  Associations  affairs by an order  issued
under Section 8(e) 12  ss.1818(e))  or 8(g) (12 USC  ss.1818(g))  of the Federal
Deposit Insurance Act, as amended by the Financial Institutions Reform, Recovery
and  Enforcement  Act of 1989,  all  obligations of the  Association  under this
contract  shall  terminate  as of the  effective  date of the order,  but vested
rights of the contracting parties shall not be affected.

      (d) If the  Association  is in default as defined in Section  3(x) (12 USC
ss.1813(x)(1)) of the Federal Deposit Insurance Act, as amended by the Financial
Institutions  Reform,  Recovery and  Enforcement Act of 1989, all obligations of
the  Association  under this contract shall terminate as of the date of default,
but this  paragraph  shall not  affect  any  vested  rights  of the  contracting
parties.

      (e) All  obligations  of the  Association  under  this  contract  shall be
terminated, except to the extent determined that continuation of the contract is
necessary for the  continued  operation of the  Association,  (i) by the Federal
Deposit  Insurance  Corporation  ("FDIC"),  at the time the FDIC  enters into an
agreement to provide  assistance  to or on behalf of the  Association  under the
authority  contained in Section 13(c) (12 USC ss.1813(c)) of the Federal Deposit
Insurance  Act, as amended by the Financial  Institutions  Reform,  Recovery and
Enforcement  Act of 1989; or (ii) when the Association is determined by the FDIC
to be in an unsafe or unsound  condition.  Any rights of the  parties  that have
already vested, however, shall not be affected by such action.

      (f)  Notwithstanding  anything  herein  contained  to  the  contrary,  any
payments to the Executive by the Company,  whether pursuant to this Agreement or
otherwise,  are subject to and  conditioned  upon their  compliance with Section
18(k) of the Federal Deposit Insurance Act, 12 U.S.C.  Section 1828(k),  and the
regulations promulgated thereunder in 12 C.F.R. Part 359.

16.   NO ATTACHMENT

      (a) Except as  required by law,  no right to receive  payments  under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance, charge, pledge, or hypothecation, or to the execution,
attachment,  levy,  or similar  process or  assignment  by operation of law, any
attempt,  voluntary  or  involuntary,  to affect any such action  shall be null,
void, and of no effect.

      (b) This  Agreement  shall be binding  upon,  and inure to the benefit of,
Executive  and the  Association  and their  respective  successors  and assigns,
provided  that  Executive  may  not  assign  any of his  rights  or  obligations
hereunder except the right to receive money.

                                       8
<PAGE>

17.   ENTIRE AGREEEMENT; MODIFICATION AND WAIVER

      (a) This instrument  contains the entire agreement of the parties relating
to the subject matter  hereof,  and supercedes in its entirety any and all prior
agreements,  understandings  or  representations  relating to the subject matter
hereof. No modifications of this Agreement shall be valid unless made in writing
and signed by the parties hereto.

      (b) This  Agreement may not be modified or amended except by an instrument
in writing signed by the parties hereto.

      (c) No term or  condition of this  Agreement  shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver unless  specifically  stated therein,  and each such waiver shall operate
only as to the  specific  term or  condition  waived and shall not  constitute a
waiver of such term or  condition  for the  future as to any act other than that
specifically waived.

18.   SEVERABILITY

      If, for any reason,  any provision of this  Agreement,  or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this  Agreement or any part of such  provision not held so invalid,  and each
such other  provision  and part thereof  shall to the full extent be  consistent
with law continue in full force and effect.

19.   HEADING FOR REFERENCE ONLY

      The  headings  of  sections  and  paragraphs  herein  included  solely for
convenience of reference and shall not control the meaning of  interpretation of
any of the provisions of this Agreement.

20.   GOVERNING LAW

      This Agreement  shall be governed by the laws of the State of Illinois but
only to the extent not superceded by federal law.

21.   ARBITRATION

      Any  dispute  arising  under  or in  connection  with  this  Agreement  or
Executive's  employment by Association or the Company shall be resolved pursuant
to  arbitration  provided that nothing  herein shall  prevent  either party from
seeking  a  temporary  restraining  order,  preliminary  injunction,   permanent
injunction,  or other  equitable  relief for breach or threatened  breach by the
other party of any of the terms of this Agreement. All other disputes, including
all disputes for money damages, shall be resolved by arbitration.

      (a) The arbitration  shall be conducted  before an arbitrator  selected by
agreement  of the  parties,  and if the parties  fail to agree on an  arbitrator
within  10 days  of any  party  informing

                                       9
<PAGE>

another that a dispute exists and therewith making a demand for arbitration,  by
the American  Arbitration  Association  ("AAA") in accordance with its rules for
selecting an arbitrator.

      (b) The arbitration shall be conducted at 103 West Vandalia Street,  Suite
300, Edwardsville,  Illinois, or such other place in Madison County, Illinois as
Association may designate.

      (c) The  arbitration  shall be conducted in accordance with the AAA's then
effective  arbitration rules. The arbitrator shall have all of the powers,  both
in law and in equity,  that would be available  to a court  having  jurisdiction
over the parties and over the subject  matter of the dispute,  but not the power
to award punitive damages.  Such powers shall include,  but shall not be limited
to,  the  power  to  require  specific  performance.  Judgment  upon an award in
arbitration   may  be  entered  in  any  court.   The  parties  agree  that  the
determination  of any  dispute  that may  arise is  essential  and agree to seek
speedy processing of any dispute by the arbitrator.

22.   INDEMNIFICATION

      During the term of this Agreement and for a period of (1) year thereafter,
the  Association  shall provide  Executive at its expense  (including his heirs,
executors and  administrators)  with coverage under the same standard  directors
and officers liability  insurance policy provided to its directors and officers,
if  any,  and  shall   indemnify   Executive  (and  his  heirs,   executors  and
administrators)  to the fullest extent  permitted  under federal law against 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 director or officer of the Association (whether or not
he continues to be a director or officer at the time of incurring  such expenses
or liabilities),  such expenses and liabilities to include,  but not limited to,
judgment,  court costs and attorney fees and the cost of reasonable  settlements
(such  settlements  must be  approved  by the Board).  If such  action,  suit or
proceeding  is  brought  against  Executive  in his  capacity  as an  officer or
director of the Association,  however,  such indemnification shall not extend to
matters as to which  Executive  is  finally  adjudged  to be liable for  willful
misconduct in the performance of his duties.

23.   SUCCESSOR TO THE ASSOCIATION

      The Association shall require any successor or assignee, whether direct or
indirect,  by  purchase,   merger,   consolidation  or  otherwise,   to  all  or
substantially  all  the  business  assets  of the  Association  or the  Company,
expressly and  unconditionally  to assume and agree to perform the Association's
obligations under this Agreement, in the same manner and to the same extent that
the Association would be required to perform if no such succession or assignment
had taken place.

                                       10
<PAGE>

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

ATTEST:                              FIRST FEDERAL SAVINGS AND LOAN
                                     ASSOCIATION OF EDWARDSVILLE

/s/ Linda Werner                     By: /s/ Joseph B. Helms
-----------------------------            --------------------------------------
Secretary

ATTEST:                              FIRST FEDERAL FINANCIAL SERVICES,
                                     INC.

/s/ Linda Werner                     By: /s/ Joseph B. Helms
-----------------------------            --------------------------------------
Secretary

                                     EXECUTIVE:

                                     /s/ Donald Engelke
                                     ------------------------------------------
                                     Donald Engelke

                                       11

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