Document:

EMPLOYMENT AGREEMENT

     This  Agreement  is  made  by and  between  First  Federal  Savings  & Loan
Association  of  Edwardsville,  a  federal  savings  and loan  association  (the
"Bank"),  with its principal  office in  Edwardsville,  Illinois,  and Dennis M.
Terry  ("Executive")  and  shall be  effective  as of the  effective  date  (the
"Effective  Date") of that certain  Agreement and Plan of  Reorganization by and
between First Federal Financial Services, MHC, First Federal Financial Services,
Inc.,  First Clover Leaf  Financial  Corp.,  the Bank and Clover Leaf  Financial
Corp. ("CLFC") and Clover Leaf Bank (the "Merger Agreement").  References to the
"Company" mean First Federal  Financial  Services,  Inc., a federal  corporation
that owns 100% of the common stock of the Bank. The Company shall be a signatory
to this Agreement for the sole purpose of  guaranteeing  the Bank's  performance
hereunder.

     WHEREAS,  Executive  has  served as an  officer  of Clover  Leaf  Bank,  an
Illinois state bank ("CLB"), which was merged with and into the Bank pursuant to
the Merger Agreement; and

     WHEREAS,  in order to  induce  Executive  to enter  into and  remain in the
employ of the Bank  following  the closing of the Merger and to provide  further
incentive to achieve the  financial and  performance  objectives of the Bank and
the Company,  the parties desire to enter into this Agreement upon the terms and
conditions hereof; and

     WHEREAS,  the Executive agrees that this Agreement  supersedes and replaces
that certain  Executive  Employment  Agreement  dated as of December 8, 2003 and
that certain Change in Control  Agreement  dated as of December 8, 2003 (both as
amended on May 24, 2005) with CLB and CLFC.

     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 from the date hereof through  October 1, 2006,  Executive
agrees to serve as Chief  Operating  Officer  of the  Company  and the Bank and,
effective  October 1, 2006 (the  "Appointment  Date"),  the Executive  agrees to
serve as the  President  and Chief  Executive  Officer of the Company and of the
Bank;  provided,  however, in their sole discretion,  the Boards of Directors of
the Company and of the Bank may extend the Appointment  Date to January 1, 2007.
Upon the  Appointment  Date,  Executive  shall be  responsible  for the  overall
management  of  the  Company  and  the  Bank,  and  shall  be  responsible   for
establishing the business objectives, policies and strategic plan of the Company
and the  Bank in  conjunction  with  the  Board of  Directors  of the Bank  (the
"Board").  Upon the  Appointment  Date,  Executive shall also be responsible for
providing  leadership  and  direction  to all  departments  or  divisions of the
Company and the Bank, and shall be the primary contact between the Board and the
staff of the Company and the Bank. During such periods, Executive also agrees to
serve, if elected,  as an officer and director of any subsidiary or affiliate of
the Bank.  Following the  Appointment  Date,  failure to reappoint  Executive as
President and Chief  Executive  Officer of the Bank and the Company  without the
consent  of  Executive  during  the  term  of  this  Agreement  (except  for any

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termination for Just Cause or Retirement,  as defined herein) shall constitute a
breach of this Agreement.

2.   TERM AND DUTIES.

     (a) The period of Executive's  employment under this Agreement begins as of
the Effective  Date and continues  through the end of the calendar year in which
the Effective  Date occurs and then  continues  for a period of thirty-six  (36)
full calendar months thereafter, with January 1, 2008 being treated as the first
anniversary  date  of  this  Agreement.  Commencing  on  January  1,  2008,  and
continuing at each January 1st  thereafter,  this  Agreement  shall renew for an
additional  year such that the  remaining  term  shall be  thirty-six  (36) full
calendar months; unless a written notice of non-renewal (a "Non-Renewal Notice")
is provided to  Executive at least sixty (60) days and not more than ninety (90)
days prior to any  January  1st,  that the term of this  Agreement  shall not so
renew. On an annual basis prior to the deadline for the notice period referenced
above, the Board shall conduct a performance review of Executive for purposes of
determining whether to provide a Non-Renewal Notice.

     (b) During the period of his  employment  hereunder,  except for periods of
absence  occasioned by illness,  reasonable  vacation  periods,  and  reasonable
leaves of absence  approved by the Board,  Executive shall devote  substantially
all his business time, attention, skill, and efforts to the faithful performance
of his  duties  hereunder  including  activities  and  services  related  to the
organization,  operation and management of the Bank;  provided,  however,  that,
with the approval of the Board, as evidenced by a resolution of such Board, from
time to time,  Executive  may  serve,  or  continue  to serve,  on the boards of
directors of, and hold any other offices or positions in, business  companies or
business  organizations,  which, in such Board's judgment,  will not present any
conflict of interest  with the Bank,  or materially  affect the  performance  of
Executive's  duties  pursuant  to  this  Agreement,  it  being  understood  that
membership  in and  service  on  boards  or  committees  of  social,  religious,
charitable or similar  organizations does not require Board approval pursuant to
this Section 2(b).

3.   COMPENSATION, BENEFITS AND REIMBURSEMENT.

     (a) The  compensation  specified under this Agreement shall  constitute the
salary and  benefits  paid for the duties  described in Section  2(b).  The Bank
shall pay Executive as  compensation a salary of not less than $152,000 per year
("Base Salary").  Such Base Salary shall be payable biweekly, or with such other
frequency as officers and  employees are  generally  paid.  During the period of
this  Agreement,  Executive's  Base Salary shall be reviewed at least  annually.
Such review shall be conducted by a committee  designated by the Board,  and the
Bank may  increase,  but not  decrease  (except  a  decrease  that is  generally
applicable to all employees)  Executive's Base Salary (with any increase in Base
Salary to  become  "Base  Salary"  for  purposes  of this  Agreement).  Within a
reasonable period of time after the Appointment Date (but no later than February
1, 2007), the Board shall  commission a compensation  study by a mutually agreed
upon compensation  expert of persons who are both presidents and chief executive
officers at peer financial  institutions located in a comparable geographic area
and shall report its findings to the Executive,  with the understanding that the
Executive's  compensation  shall be  increased  to the  extent  necessary  to be
competitive,  in the  judgment of the Board,  with the  compensation  offered to
persons  who are both  presidents  and  chief  executive  officers  of such peer
organizations.  The  compensation  increase,  if any,  attributable  to the 2007
compensation  study shall be retroactive to the Appointment  Date and any "catch

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up" payment shall be made to Executive in a lump sum within two months after the
Executive is notified of the increase.  In addition to the Base Salary  provided
in this Section 3(a),  the Bank shall provide  Executive at no cost to Executive
with all such other  benefits as are provided  uniformly to permanent  full-time
employees  of the Bank.  Base Salary shall  include any amounts of  compensation
deferred by Executive under qualified and  nonqualified  plans maintained by the
Bank.  Base Salary shall not include any  director's  fees that the Executive is
entitled to receive as a director of the Bank or the  Company.  Such  director's
fees shall be separately paid to the Executive.

     (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  insurance  plans,  medical  coverage or any other  employee
benefit  plan or  arrangement  made  available by the Bank or the Company 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  participate  in any
incentive  compensation  and bonus  plans  offered by the Bank or the Company in
which Executive is eligible to participate.  Nothing paid to Executive under any
such plan or arrangement  will be deemed to be in lieu of other  compensation to
which  Executive is entitled  under this  Agreement.  Executive  shall receive a
monthly  automobile  allowance of not less than $460 each month,  which shall be
increased  from  time to time by the Board of the Bank to be  commensurate  with
automobile  allowances  received  by persons who are both  presidents  and chief
executive officers of peer financial institutions.

     (c) In addition to the Base Salary  provided for by  paragraph  (a) of this
Section 3, the Bank or the  Company  shall pay or  reimburse  Executive  for all
reasonable travel and other reasonable expenses incurred by Executive performing
his   obligations   under  this  Agreement  and  may  provide  such   additional
compensation  in such form and such  amounts  as the Board may from time to time
determine.  The Bank shall  reimburse  Executive  for his ordinary and necessary
business expenses,  including,  without limitation, fees for memberships in such
clubs and  organizations  as Executive  and the Board shall  mutually  agree are
necessary and appropriate for business  purposes,  and travel and  entertainment
expenses,  incurred in connection  with the performance of his duties under this
Agreement.

4.   PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

     (a) Upon the  occurrence  of an Event of  Termination  (as herein  defined)
during  Executive's term of employment  under this Agreement,  the provisions of
this Section 4 shall apply. As used in this Agreement, an "Event of Termination"
shall mean and include any of the following:

          (i)  the termination by the Bank of Executive's  full-time  employment
               hereunder  for any reason  other  than  termination  governed  by
               Section 5  (Termination  for Cause) or  termination  governed  by
               Section 6 (termination due to Disability or death); or

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          (ii) Executive's  resignation  from the  Bank's  employ for any of the
               following reasons:

               (A)  the  failure to elect or reelect or to appoint or  reappoint
                    Executive to the position set forth under Section 1;

               (B)  a  material  change in  Executive's  functions,  duties,  or
                    responsibilities  with the Bank,  which  change  would cause
                    Executive's position to become one of lesser responsibility,
                    importance,  or  scope  from  the  position  and  attributes
                    thereof described in Section 1, above;

               (C)  a relocation of Executive's principal place of employment by
                    more  than  thirty  (30)  miles  from  its  location  at the
                    Effective Date of this Agreement;

               (D)  a material  reduction  in the benefits  and  perquisites  to
                    Executive from those being provided as of the Effective Date
                    of this Agreement,  other than an employee-wide reduction in
                    pay or benefits;

               (E)  a liquidation or dissolution of the Company or the Bank; or

               (F)  a material breach of this Agreement by the Bank.

               Upon the  occurrence of any event  described in clauses (A), (B),
               (C), (D), (E) or (F),  above,  Executive  shall have the right to
               elect  to  terminate  his  employment  under  this  Agreement  by
               resignation  upon not less than  sixty  (60) days  prior  written
               Notice of Termination,  as defined in Section 9(a),  given within
               six (6) full calendar  months after the event giving rise to said
               right to elect.  Notwithstanding the preceding  sentence,  in the
               event of a  continuing  breach  of this  Agreement  by the  Bank,
               Executive,  after giving due notice  within the  prescribed  time
               frame of an initial event specified above, shall not waive any of
               his rights under this Agreement and this Section solely by virtue
               of  the  fact  that  Executive  has  submitted  his  resignation,
               provided Executive has remained in the employment of the Bank and
               is engaged in good faith discussions to resolve any occurrence of
               an event described in clauses (A), (B), (C), (D) or (F) above.

          (iii) (A)  Executive's  involuntary  termination  by the  Bank  or the
               Company (or any successor  thereto) on the effective  date of, or
               at any time  following,  a Change in Control,  or (B) Executive's
               resignation  from the employment with the Bank or the Company (or
               any successor  thereto) following a Change in Control as a result
               of any event described in Section 4(a)(ii)(A),  (B), (C), (D), or
               (F) above. For these purposes, a Change in Control of the Bank or

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               the Company shall mean a change in control of a nature that:  (i)
               would be  required to be reported in response to Item 5.01 of the
               current  report  on Form 8-K,  as in  effect on the date  hereof,
               pursuant to Section 13 or 15(d) of the Securities Exchange Act of
               1934 (the  "Exchange  Act");  or (ii) without  limitation  such a
               Change in Control  shall be deemed to have  occurred at such time
               as (a) any  "person"  (as the term is used in Sections  13(d) and
               14(d) of the Exchange Act), is or becomes the "beneficial  owner"
               (as defined in Rule 13d-3 under the  Exchange  Act),  directly or
               indirectly, of securities of the Company representing 25% or more
               of the combined voting power of Company's outstanding  securities
               except for any securities  purchased by the Bank's employee stock
               ownership plan or trust;  or (b)  individuals  who constitute the
               Board  of  Directors  of the  Company  on the  date  hereof  (the
               "Incumbent  Board") cease for any reason to constitute at least a
               majority  thereof,  provided that any person  becoming a director
               subsequent  to the date hereof  whose  election was approved by a
               vote of at least a majority of the directors of the Board,  shall
               be, for purposes of this clause (b), considered as though he were
               a member of the Incumbent Board; or (c) a plan of reorganization,
               merger,  consolidation,  sale  of all or  substantially  all  the
               assets of the Bank or the Company or similar transaction in which
               the Bank or Company is not the surviving  institution  occurs; or
               (d) a proxy  statement  is  distributed  soliciting  proxies from
               stockholders  of the Company,  by someone  other than the current
               management of the Company, seeking stockholder approval of a plan
               of  reorganization,  merger or  consolidation  of the  Company or
               similar  transaction  with one or more  corporations or financial
               institutions,  and as a result of such proxy solicitation, a plan
               of reorganization,  merger  consolidation or similar  transaction
               involving  the Company is approved by the  requisite  vote of the
               Company's stockholders;  or (e) a tender offer is made for 25% or
               more of the voting securities of the Company and the shareholders
               owning  beneficially  or of record 25% or more of the outstanding
               securities  of the Company have tendered or offered to sell their
               shares  pursuant to such tender  offer and such  tendered  shares
               have  been  accepted  by  the  tender  offeror.   Notwithstanding
               anything to the contrary herein, a Change in Control shall not be
               deemed to have  occurred in the event that the Company sells less
               than 50% of its  outstanding  common  stock in one or more  stock
               offerings.

     (b) Upon the occurrence of an Event of Termination  under Sections 4(a) (i)
or (ii), on the Date of Termination,  as defined in Section 9(b), the Bank shall
be obligated to pay  Executive,  or, in the event of his subsequent  death,  his
beneficiary or  beneficiaries,  or his estate,  as the case may be, as severance
pay or  liquidated  damages,  or both,  an amount  equal to the sum of:  (i) his
earned but unpaid salary as of the date of his  termination  of employment  with
the  Bank;  (ii) the  benefits,  if any,  to which  he is  entitled  as a former
employee under the employee  benefit plans and programs and  compensation  plans
and programs  maintained  for the benefit of the Bank or Company's  officers and
employees;  (iii) the remaining  payments that Executive  would have earned,  in
accordance with Sections 3 (a) and 3(b), if he had continued his employment with
the Bank for the remainder of the term of this Agreement (but in any event, such
term shall not exceed thirty-six (36) months),  and had earned the maximum bonus
or incentive  award in each calendar  year that ends during such term;  and (iv)
the annual  contributions  or payments that would have been made on  Executive's
behalf to any employee  benefit plans of the Bank or the Company as if Executive
had continued his employment with the Bank for the remainder of the term of this

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Agreement (but in any event, such term shall not exceed thirty-six (36) months),
based on contributions or payments made (on an annualized  basis) at the Date of
Termination.  Any payments  hereunder  shall be made in a lump sum within thirty
(30) days after the Date of  Termination,  or in the event that  Section 409A of
the Internal  Revenue Code of 1986, as amended ("Code")  applies,  no later than
the first day of the  seventh  month  following  the Date of  Termination.  Such
payments shall not be reduced in the event  Executive  obtains other  employment
following termination of employment.

     (c) Upon the occurrence of an Event of Termination under Section 4(a)(iii),
on the Date of  Termination,  as  defined  in  Section  9(b),  the Bank shall be
obligated  to pay  Executive,  or, in the  event of his  subsequent  death,  his
beneficiary or  beneficiaries,  or his estate,  as the case may be, as severance
pay or  liquidated  damages,  or both,  an amount  equal to the sum of:  (i) his
earned but unpaid salary as of the date of his  termination  of employment  with
the  Bank;  (ii) the  benefits,  if any,  to which  he is  entitled  as a former
employee under the employee  benefit plans and programs and  compensation  plans
and programs  maintained  for the benefit of the Bank or Company's  officers and
employees;  (iii) the remaining  payments that Executive  would have earned,  in
accordance  with Sections 3 (a) and (b), if he had continued his employment with
the Bank for a  thirty-six  (36)  month  period  following  his  termination  of
employment, and had earned the maximum bonus or incentive award in each calendar
year that ends during such term; and (iv) the annual  contributions  or payments
that would have been made on Executive's behalf to any employee benefit plans of
the Bank or the Company as if Executive had continued  his  employment  with the
Bank for a thirty-six (36) month period following his termination of employment,
based on contributions or payments made (on an annualized  basis) at the Date of
Termination.  Any payments  hereunder  shall be made in a lump sum within thirty
(30) days after the Date of  Termination,  or in the event that  Section 409A of
the Internal  Revenue Code of 1986, as amended ("Code")  applies,  no later than
the first day of the  seventh  month  following  the Date of  Termination.  Such
payments shall not be reduced in the event  Executive  obtains other  employment
following termination of employment.

     (d) Upon the occurrence of an Event of Termination,  the Bank will cause to
be continued life, medical and disability  coverage  substantially  identical to
the  coverage  maintained  by the Bank for  Executive  and his  family  prior to
Executive's termination.  Such coverage shall continue at the Bank's expense for
a period of twelve (12) months from the Date of Termination.

     (e) Notwithstanding anything in this Agreement to the contrary, in no event
shall the  aggregate  payments or  benefits to be made or afforded to  Executive
under this Section  constitute an "excess parachute  payment" under Section 280G
of the Internal  Revenue  Code of 1986,  as amended,  ("Code") or any  successor
thereto,  and in order to avoid such a result,  Executive's  benefits  hereunder
shall be reduced,  if necessary,  to an amount, the value of which is one dollar
($1.00) less than an amount equal to three (3) times  Executive's "base amount,"
as determined in accordance  with Section 280G.  The allocation of the reduction
required hereby shall be determined by Executive.

     (f)  Notwithstanding  anything in this  Agreement to the  contrary,  in the
event the  Executive  resigns for any reason other than an Event of  Termination
(as described in Section 4), Termination for Just Cause (as described in Section

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5),  Termination  for  Disability  or  Death  (as  described  in  Section  6) or
Termination  Upon Retirement (as described in Section 7), all obligations of the
Bank and the Company  hereunder  shall  immediately  cease upon the date of such
resignation.

5.   TERMINATION FOR JUST CAUSE.

     (a) The term  "Termination for Just Cause" shall mean  termination  because
of:  (i)  Executive's  being  convicted  of a felony or of any  lesser  criminal
offense involving moral turpitude;  (ii) the willful commission by the Executive
of a criminal  or other act that,  in the  judgment of the Board,  would  likely
cause  substantial  economic  damage to the  Company or the Bank or  substantial
injury to the business  reputation of the Company or Bank;  (iii) the commission
by the Executive of any act of fraud in the  performance of his duties on behalf
of the Company or Bank or a material  violation  of the  Company's or the Bank's
code of ethics;  (iv) the continuing willful failure of the Executive to perform
his duties to the  Company or the Bank (other  than any such  failure  resulting
from the Executive's incapacity due to physical or mental illness) after written
notice  thereof  has been  given  to  Executive  by the  Board  (specifying  the
particulars  thereof  in  reasonable  detail)  and  Executive  has been  given a
reasonable  opportunity to be heard and cure such failure;  or (v) an order of a
federal  or  state  regulatory  agency  or a  court  of  competent  jurisdiction
requiring the  termination of the  Executive's  employment by the Company or the
Bank.  For  purposes  of  this  Section,  no act,  or the  failure  to  act,  on
Executive's  part shall be "willful"  unless done, or omitted to be done, in bad
faith and without  reasonable belief that the action or omission was in the best
interests of the Bank or its affiliates.

     (b)  Notwithstanding  Section  5(a),  neither  the Company nor the Bank may
terminate  Executive  for Just  Cause  unless  and until  there  shall have been
delivered  to him a  Notice  of  Termination  which  shall  include  a copy of a
resolution duly adopted by the  affirmative  vote of not less than a majority of
the entire membership of the Board at a meeting of the Board called and held for
that purpose, finding that in the good faith opinion of the Board, Executive was
guilty of  conduct  justifying  Termination  for Just Cause and  specifying  the
particulars  thereof  in detail.  Executive  shall not have the right to receive
compensation or other benefits for any period after  Termination for Just Cause.
During the period  beginning on the date of the Notice of  Termination  for Just
Cause pursuant to Section 5 hereof through the Date of Termination, any unvested
stock options and related  limited rights  granted to Executive  under any stock
option plan shall not be  exercisable  nor shall any unvested  awards granted to
Executive  under  any  stock  benefit  plan  of the  Bank,  the  Company  or any
subsidiary  or affiliate  thereof,  vest. At the Date of  Termination,  any such
unvested stock options and related  limited rights and any such unvested  awards
shall  become  null and void and shall not be  exercisable  by or  delivered  to
Executive at any time  subsequent  to such  Termination  for Just Cause.  In the
Event of Executive's  Termination  for Just Cause,  Executive  shall resign as a
director of the Company and the Bank,  and as a director  and/or  officer of any
subsidiary or affiliate of the Company and/or the Bank.

6.   TERMINATION FOR DISABILITY OR DEATH.

     (a) The Bank or Executive may terminate Executive's employment after having
established Executive's Disability. For purposes of this Agreement, "Disability"

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

     (b) In the event of such  Disability,  Executive's  obligation  to  perform
services under this Agreement will terminate.  In the event of such termination,
Executive  shall continue to receive (x) his Base Salary,  as defined in Section
3(a),  at the rate in effect on the Date of  Termination  for  period of one (1)
year  following  the  Date of  Termination  by  reason  of  Disability,  and (y)
sixty-six  and  two-thirds  percent  (66 2/3%) of  Executive's  Base Salary each
successive year after the first year following  termination through the earliest
to occur  of (i) the  date of  Executive's  death;  (ii) the date the  Executive
recovers from such Disability;  or (iii) the date Executive attains age 65. Such
payments  shall be reduced by the amount of any short- or  long-term  disability
benefits  payable to Executive  under any  disability  program  sponsored by the
Company or the Bank.

     (c) In the event of  Executive's  death during the term of this  Agreement,
his estate,  legal  representatives  or named  beneficiary or beneficiaries  (as
directed by  Executive in writing)  shall be paid  Executive's  Base Salary,  as
defined in Section 3, at the rate in effect at the time of Executive's death for
a period of one (1) year from the date of Executive's death.

7.   TERMINATION UPON RETIREMENT

     Termination  of Executive's  employment  based on  "Retirement"  shall mean
termination of Executive's  employment at age 65, unless  extended by the Board.
Upon termination of Executive's  employment  based on Retirement,  no amounts or
benefits shall be due Executive  under this  Agreement,  and Executive  shall be
entitled to all benefits under any  retirement  plan of the Bank and other plans
to which Executive is a party.

8.   RESIGNATION FROM BOARDS OF DIRECTORS

     In the event of Executive's  termination of employment for any reason other
than upon a Change in  Control,  Executive  shall  resign as a  director  of the
Company and the Bank,  and as a director  and/or  officer of any  subsidiary  or
affiliate of the Company and/or the Bank.

9.   NOTICE.

     (a) Any notice required hereunder shall be in writing and hand-delivered to
the other party.  Hand delivery to the Bank and the Company shall be made to the
Chairman  or the  Secretary  of the Board of  Directors  of either  entity.  Any
termination  by the Bank 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

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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.

     (c) If the party  receiving a Notice of  Termination  desires to dispute or
contest the basis or reasons for termination,  the party receiving the Notice of
Termination  must notify the other party within thirty (30) days after receiving
the  Notice of  Termination  that such a dispute  exists,  and shall  pursue the
resolution of such dispute in good faith and with reasonable  diligence pursuant
to  Section  16 of this  Agreement.  During the  pendency  of any such  dispute,
neither  the  Company  nor  the  Bank  shall  be  obligated  to  pay   Executive
compensation or other payments beyond the Date of Termination.

10.  SOURCE OF PAYMENTS.

     All  payments  provided in this  Agreement  shall be timely paid in cash or
check from the  general  funds of the Bank.  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  Bank are not  timely  paid or
provided by the Bank, such amounts and benefits shall be paid or provided by the
Company.

11.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

     This Agreement contains the entire understanding between the parties hereto
and  supersedes  any  prior  employment   agreement  between  the  Bank  or  any
predecessor  of the Bank and  Executive,  including,  without  limitation,  that
certain  Executive  Employment  Agreement  dated as of December 8, 2003 and that
certain  Change in  Control  Agreement  dated as of  December  8, 2003  (both as
amended on May 24, 2005), except that this Agreement shall not affect or operate
to reduce any benefit or  compensation  inuring to Executive of a kind elsewhere
provided.  No  provision of this  Agreement  shall be  interpreted  to mean that
Executive is subject to receiving  fewer  benefits  than those  available to him
without reference to this Agreement.

12.  NO ATTACHMENT; BINDING ON SUCCESSORS.

     (a) Except as required by law or as otherwise  provided in this  Agreement,
no  right  to  receive  payments  under  this  Agreement  shall  be  subject  to
anticipation,  commutation,  alienation, sale, assignment,  encumbrance, charge,
pledge, or hypothecation, or to execution,  attachment, levy, or similar process
or assignment by operation of law, and any attempt, voluntary or involuntary, to
effect 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 Bank and their respective successors and assigns.

                                       9
<PAGE>

13.  MODIFICATION AND WAIVER.

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

     (b) 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 or estoppel.  No such written waiver shall be deemed a continuing  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.

14.  REQUIRED PROVISIONS.

     (a) The Company may terminate  Executive's  employment at any time, but any
termination  by the Board other than  Termination  for  Retirement as defined in
Section 7 hereof and  Termination  for Just Cause as defined in Section 5 hereof
shall not prejudice  Executive's  right to  compensation or other benefits under
this Agreement.  Executive shall have no right to receive  compensation or other
benefits  for  any  period  after  Termination  for  Cause  or  Termination  for
Retirement.

     (b) If Executive is suspended  from office  and/or  temporarily  prohibited
from participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) [12 USC  ss.1818(e)(3)] or 8(g)(1) [12 USC ss.1818(g)(1)] of the
Federal Deposit Insurance Act (the FDI Act"), the Bank'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,  the Bank
may in its discretion (i) pay Executive all or part of the compensation withheld
while its contract obligations were suspended and (ii) reinstate (in whole or in
part) any of its obligations which were suspended.

     (c)  If   Executive  is  removed   and/or   permanently   prohibited   from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Section 8(e)(4) [12 USC  ss.1818(e)(4)] or 8(g)(1) [12 USC ss.1818(g)(1)] of the
FDI Act, all  obligations of the Bank under this Agreement shall terminate as of
the effective date of the order,  but vested rights of the  contracting  parties
shall not be affected.

     (d) If the  Bank is in  default  as  defined  in  Section  3(x)(1)  [12 USC
ss.1813(x)(1)]  of the FDI Act, all obligations of the Bank under this Agreement
shall  terminate as of the date of default,  but this paragraph shall not affect
any vested rights of the contracting parties.

     (e) All obligations under this contract shall be terminated,  except to the
extent  determined  that  continuation  of this  Agreement is necessary  for the
continued  operation  of the Bank,  (i) by the Director of the OTS or his or her
designee, at the time the FDIC enters into an agreement to provide assistance to
or on behalf of the Bank under the authority  contained in Section 13(c) [12 USC
ss.1823(c)]  of the FDI Act; or (ii) by the  Director or his or her  designee at
the time the Director or his or her designee  approves a  supervisory  merger to
resolve problems related to operation of the Bank or when the Bank is determined

                                       10
<PAGE>

by the  Director  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 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
FDI Act, 12 U.S.C. Section 1828(k), and the regulations  promulgated  thereunder
in 12 C.F.R. Part 359.

15.  NON-COMPETITION AND POST-TERMINATION OBLIGATIONS.

     (a) All payments and benefits to Executive  under this  Agreement  shall be
subject  to  Executive's  compliance  with  paragraph  (b),  (c) and (d) of this
Section 15.

     (b) Executive shall, upon reasonable  notice,  furnish such information and
assistance  to the Bank as may  reasonably be required by the Bank in connection
with any litigation in which it or any of its  subsidiaries or affiliates is, or
may become, a party; provided,  however, that Executive shall not be required to
provide  information or assistance  with respect to any  litigation  between the
Executive and the Bank or any of its subsidiaries or affiliates.

     (c)  Executive  recognizes  and  acknowledges  that  the  knowledge  of the
business  activities and plans for business  activities of the Bank, the Company
and  affiliates  thereof,  as it may  exist  from time to time,  is a  valuable,
special and unique asset of the business of the Bank, the Company and affiliates
thereof.  Executive  will  not,  during  or after  the  term of his  employment,
disclose any  knowledge of the past,  present,  planned or  considered  business
activities  of the Bank,  Company or  affiliates  thereof to any  person,  firm,
corporation,  or other entity for any reason or purpose  whatsoever  (except for
such  disclosure  as may be  required  to be  provided  to the  Office of Thrift
Supervision  ("OTS"),  the Federal Deposit Insurance  Corporation  ("FDIC"),  or
other  regulatory  agency  with  jurisdiction  over  the  Company,  the  Bank or
Executive).  Notwithstanding the foregoing, Executive may disclose any knowledge
of banking,  financial and/or economic  principles,  concepts or ideas which are
not solely and exclusively derived from the business plans and activities of the
Bank,  and  Executive may disclose any  information  regarding the Bank which is
otherwise publicly available or which Executive is otherwise legally required to
disclose.  In the event of a breach or  threatened  breach by  Executive  of the
provisions  of this  Section 15, the Bank and the Company will be entitled to an
injunction  restraining  Executive  from  disclosing,  in whole or in part,  his
knowledge of the past, present, planned or considered business activities of the
Bank or the Company or any of their  affiliates,  or from rendering any services
to any person, firm, corporation,  other entity to whom such knowledge, in whole
or in part, has been disclosed or is threatened to be disclosed.  Nothing herein
will be construed  as  prohibiting  the Bank and the Company  from  pursuing any
other remedies available to them for such breach or threatened breach, including
the recovery of damages from Executive.

     (d) Upon any  termination of Executive's  employment  hereunder,  Executive
agrees  not to  compete  with  the  Bank  and  the  Company  and  any  of  their
subsidiaries  for a period of one (1) year  following  such  termination  in any
city, town or county in which the Bank has an office or has filed an application
for regulatory  approval to establish an office,  determined as of the effective

                                       11
<PAGE>

date of such  termination,  except as agreed to  pursuant to a  resolution  duly
adopted by the Board.  Executive  agrees that during such period and within said
cities, towns and counties,  Executive shall not work for or advise,  consult or
otherwise  serve  with,  directly  or  indirectly,  any  entity  whose  business
materially competes with the depository, lending or other business activities of
the Bank. The parties hereto, recognizing that irreparable injury will result to
the Bank, its business and property in the event of  Executive's  breach of this
Section 15(d) agree that in the event of any such breach by Executive,  the Bank
will be entitled, in addition to any other remedies and damages available, to an
injunction to restrain the violation hereof by Executive,  Executive's partners,
agents,  servants,  employers,  employees  and all  persons  acting  for or with
Executive.  Executive  represents  and admits that  Executive's  experience  and
capabilities are such that Executive can obtain employment in a business engaged
in  other  lines  and/or  of a  different  nature  than the  Bank,  and that the
enforcement  of a remedy by way of injunction  will not prevent  Executive  from
earning a livelihood.  Nothing herein will be construed as prohibiting  the Bank
and the Company  from  pursuing  any other  remedies  available to them for such
breach or threatened  breach,  including the recovery of damages from Executive.
Executive  further  agrees that  Executive  will not, in any manner  whatsoever,
during his employment  with the Company and the Bank and for a period of one (1)
year  following  the  termination  of  Executive's  employment,   either  as  an
individual or as a partner, stockholder, director, officer, principal, employee,
agent,  consultant,  or in any other relationship or capacity,  with any person,
firm,  corporation  or other  business  entity,  either  directly or indirectly,
solicit or induce or aid in the  solicitation  or inducement of any employees of
the Company of the Bank to leave their  employment with the Company or the Bank.
Executive further agrees that the Executive will not, in any manner  whatsoever,
during  Executive's  employment with the Company of the Bank and for a period of
one (1) year  following  the  termination  of  Executive's  employment  with the
Company  or the Bank,  either as an  individual  or as a  partner,  stockholder,
director,  officer,  principal,  employee,  agent,  consultant  or in any  other
relationship  or capacity with any person,  firm,  corporation or other business
entity, either directly or indirectly,  solicit the business of any customers or
clients of the Company or the Bank at the time of the termination of Executive's
employment with the Company or the Bank.

16.  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  consistent with
law continue in full force and effect.

17.  HEADINGS FOR REFERENCE ONLY.

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

18.  GOVERNING LAW.

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

                                       12
<PAGE>

19.  ARBITRATION.

     Any  dispute  or  controversy  arising  under or in  connection  with  this
Agreement shall be settled exclusively by binding arbitration,  conducted before
a single  arbitrator  selected by the Bank and  Executive  sitting in a location
selected  by  the  Bank  and  Executive   within   twenty-five   (25)  miles  of
Edwardsville,  Illinois in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator's award in
any court having jurisdiction.

20.  PAYMENT OF LEGAL FEES.

     All  reasonable  legal fees paid or incurred by  Executive  pursuant to any
dispute or question of  interpretation  relating to this Agreement shall be paid
or reimbursed by the Bank,  provided that the dispute or interpretation has been
settled by Executive and the Bank or resolved in Executive's favor.

21.  INDEMNIFICATION.

     (a) The Bank shall provide  Executive  (including his heirs,  executors and
administrators)   with  coverage  under  a  standard  directors'  and  officers'
liability  insurance policy at its expense,  and shall indemnify  Executive (and
his heirs,  executors and  administrators) to the fullest extent permitted under
applicable 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 a director or officer of the Bank
(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 be limited to, judgments,  court costs and attorneys' fees and
the cost of reasonable  settlements  (such  settlements  must be approved by the
Board);  provided,  however,  the Bank shall not be  required  to  indemnify  or
reimburse  Executive for legal  expenses or  liabilities  incurred in connection
with an action,  suit or proceeding  arising from any illegal or fraudulent  act
committed by Executive.  Any such indemnification  shall be made consistent with
OTS  Regulations  and Section  18(K) of the Federal  Deposit  Insurance  Act, 12
U.S.C. ss.1828(K), and the regulations issued thereunder in 12 C.F.R. Part 359.

     (b) Notwithstanding the foregoing,  no indemnification shall be made unless
the Bank gives the OTS at least 60 days'  notice of its  intention  to make such
indemnification.  Such notice  shall state the facts on which the action  arose,
the terms of any settlement,  and any disposition of the action by a court. Such
notice,  a copy thereof,  and a certified copy of the resolution  containing the
required  determination  by the Board shall be sent to the Regional  Director of
the OTS, who shall promptly acknowledge receipt thereof. The notice period shall
run from the date of such receipt. No such indemnification  shall be made if the
OTS advises the Bank in writing  within such  notice  period,  of its  objection
thereto.

                                    13
<PAGE>

                                   SIGNATURES

     IN WITNESS WHEREOF,  the Company and the Bank have caused this Agreement to
be executed by their duly authorized  representatives,  and Executive has signed
this  Agreement,  effective  as of the day and date  first  above  written.  The
Company  has become a party to this  Agreement  for the sole  purpose of binding
itself to the duties and obligations set forth in Sections 10 and 21 hereof.

ATTEST:                                 FIRST FEDERAL SAVINGS & LOAN ASSOCIATION
                                        OF EDWRDSVILLE

/s/ Linda Werner                        By: /s/ Joseph Helms
---------------------------------          -----------------------------------
Linda Werner, Corporate Secretary          Joseph Helms
                                           Chairman of the Board

ATTEST:                                 FIRST FEDERAL FINANCIAL SERVICES, INC.

/s/ Linda Werner                        By: /s/ Joseph Helms
---------------------------------           ----------------------------------
Linda Werner, Corporate Secretary           Joseph Helms
                                            Chairman of the Board

WITNESS:                                EXECUTIVE:

 /s/ Donna L. Brandmeyer                /s/ Dennis M. Terry
--------------------------------        --------------------------------------
                                        Dennis M. TerryAMENDMENT TO
                         EXECUTIVE EMPLOYMENT AGREEMENT

     This Amendment to Executive Employment Agreement  ("Amendment") is made and
entered into on November 17, 2005 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 Linda Werner (the "Executive").

     WHEREAS,  the  Executive  and the  Association  entered  into an  Executive
Employment Agreement effective June 29, 2004 (the "Agreement"); and

     WHEREAS,  the Executive and the Association desire for their mutual benefit
to amend the Agreement on the terms set forth below.

     NOW,  THEREFORE,  in consideration of the mutual promises contained in this
Amendment,  including the Executive's agreement to continue her employment,  and
the  Association's  agreement to continue to employ her after 2005,  the parties
hereby agree as follows:

I. Paragraph (a) of Section 2 of the Agreement is hereby amended in its entirety
to read as follows:

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  through December 31, 2006
unless sooner terminated as provided elsewhere in this Agreement.

II.  Section 3 of the  Agreement  is hereby  amended in its  entirety to read as
follows:

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
$53,348.00 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.

     (b) The  Association  will provide  Executive with employee  benefit plans,
arrangements,  and  perquisites  substantially  equivalent to those  provided to
other management  employees of the Association from time to time, subject to the
requirements of any such plan or insurance policy. 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 she 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.

<PAGE>

III.  Section 7 of the  Agreement  is hereby  amended in its entirety to read as
follows:

7.   TERMINATION UPON DISABILITY OR DEATH.

     (a) This Agreement shall terminate upon the Executive's death. In the event
of  Executive's  death  during  the term of the  Agreement,  her  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 or until the date upon which this
Agreement was to terminate pursuant to Section 2, whichever is earlier,  and the
Association will continue to provide medical, dental, family, and other benefits
normally provided for an Executive's family during such period at the expense of
the Association.

     (b) This Agreement  shall terminate upon the  Executive's  disability.  For
this  purpose,   "disability"   means  the   Executive's   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 she 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  the
Executive's  rights  under the Family  Medical  Leave Act,  the  Americans  with
Disabilities Act, or any other applicable statute.

IV.  Section 9 of the  Agreement  is hereby  amended in its  entirety to read as
follows:

9.   NOTICES.

     All notices and  communications  required or permitted under this Agreement
shall be given, if to the Association,  at its principal place of business,  and
if to the Executive, at her home address, which she shall provide to Association
and update as necessary, or to any other address either party may specify to the
other by written notice pursuant to this Section.  Notices shall be deemed given
three (3)  business  days after  placed in the United  States mail with  postage
prepaid, or when actually received if given in any other manner.

     The  Agreement is hereby  ratified and  confirmed  and shall remain in full
force and effect, as amended herein.

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

                                       2
<PAGE>

ATTEST:                             FIRST FEDERAL SAVINGS AND LOAN
                                    ASSOCIATION OF EDWARDSVILLE

/s/ Nina J. Baird                   By:  /s/ Joseph B. Helms
----------------------------             ---------------------------------------
                                         Name:
                                         Title:

                                    EXECUTIVE:

                                    /s/ Linda Werner
                                    --------------------------------------------
                                    Linda Werner

                                       3
<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 chartered
stock savings association,  with its principal  administrative office at 300 St.
Louis Street, Edwardsville,  Illinois 62025, and Linda Werner (the "Executive").
References to the "Company" mean First Federal Financial Services, Inc.

     WHEREAS, the Executive is currently employed as the Corporate Secretary and
a Savings Officer of the Association; and

     WHEREAS,  the  Association  recognizes  the  substantial  contribution  the
Executive  has made to the  Association  and  wishes  to  protect  her  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 her employment hereunder, Executive agrees to serve as
Corporate  Secretary  and a Savings  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 her 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 Savings  Officer and the  Corporate  Secretary of a
savings and loan 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  her  duties  in the  highest
professional,  ethical,  and legal manner and in accordance  with the directives
issued and policies adopted by the Association Board.

<PAGE>

     (b) During the period of her  employment  hereunder,  except for periods of
absence  occasioned by illness,  reasonable  vacation  periods,  and  reasonable
leaves of absence,  Executive  shall  faithfully  perform  her duties  hereunder
including  activities and 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  $50,328.00 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 she 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 her duties  under this  Agreement  or present  any  conflict  of
interest.  Such service to and  participation in outside  organization  shall be

                                       2
<PAGE>

presumed for these  purposes to be for the benefit of the  Association,  and the
Association  shall  reimburse the Executive her 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 her principal
place of  employment,  with a private  office,  stenographic  services and other
support  services and facilities  suitable to her position with the  Association
and necessary or  appropriate in connection  with the  performance of her duties
under this  Agreement.  The  Association  shall  reimburse the Executive for her
ordinary  and  necessary  business  expenses  incurred  in  connection  with the
performance of her 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 the 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
she 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 her 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  security  disability  program
shall  reduce the  compensation  to be paid to the  Executive  pursuant  to this
paragraph.

                                       3
<PAGE>

     In the event of  Executive's  death during the term of the  Agreement,  her
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 her 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 she shall not have  returned  to the  performance  of her
duties on a full-time basis during such thirty (30) day period),  and (B) if her
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).

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

                                       4
<PAGE>

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 she 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 her 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  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 she 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.

                                       5
<PAGE>

     (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 her 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 she 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 her 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 her
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  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.

                                       6
<PAGE>

     (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 cash 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 by the Company
and the 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 or 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  Association's  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  Association's  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.

                                       7
<PAGE>

     (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 her  rights  or  obligations
hereunder except the right to receive money.

17.  ENTIRE AGREEMENT; 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.

                                       8
<PAGE>

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  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 her heirs,

                                       9

<PAGE>

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  her  heirs,   executors  and
administrators)  to the fullest extent  permitted  under federal law against all
expenses  and  liabilities  reasonably  incurred  by her in  connection  with or
arising out of any action,  suit or  proceeding  in which she may be involved by
reason of her having been director or officer of the Association (whether or not
she 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 her  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 her 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/ Nina J. Baird                       By:  /s/ Joseph B. Helms
------------------------------               -----------------------------------
Secretary to the board                       Name:
                                             Title:

ATTEST:                                 FIRST FEDERAL FINANCIAL SERVICES,
                                        INC.

/s/ Nina J. Baird                       By:  /s/ Jospeh B. Helms
------------------------------               -----------------------------------
Secretary to the board                       Name:
                                             Title:

                                        EXECUTIVE:

                                        /s/ Linda Werner
                                        ----------------------------------------
                                        Linda Werner

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