Document:

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                                                                 EXHIBIT 10.7(b)

                                     FORM OF
                                      BANK
                              EMPLOYMENT AGREEMENT

      THIS AGREEMENT (the "Agreement"), made this _____ day of _________, 2004,
by and between FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION, a federally chartered
savings institution (the "Bank"), and TONY D. WHITAKER (the "Executive").
References to the "Company" herein shall mean Kentucky First Federal Bancorp, a
federally chartered corporation and the holding company of the Bank.

      WHEREAS, Executive serves the Bank in a position of substantial
responsibility;

      WHEREAS, the Bank wishes to assure the services of Executive for the
period provided in this Agreement; and

      WHEREAS, Executive is willing to serve in the employ of the Bank for said
period.

      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.    EMPLOYMENT. Executive is employed as the President and Chief
Executive Officer of the Bank. Executive shall perform all duties and shall have
all powers which are commonly incident to those offices. During the term of this
Agreement, Executive also agrees to serve, if elected, as an officer and/or
director of any subsidiary of the Bank and in such capacity will carry out such
duties and responsibilities as are reasonably appropriate to that office.

      2.    LOCATION AND FACILITIES. Executive will be furnished with the
working facilities and staff customary for executive officers with the title and
duties set forth in Section 1 and as are necessary for him to perform his
duties. The location of such facilities and staff shall be at the principal
administrative offices of the Bank, or at such other site or sites customary for
such offices.

      3.    TERM.

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

      b.    Commencing on the first year anniversary date of this Agreement, and
            continuing on each anniversary thereafter, the disinterested members
            of the boards of directors of the Bank may extend the Agreement for
            an additional one-year period beyond the then effective expiration
            date, unless Executive elects not to extend the term of this
            Agreement by giving written notice in accordance with Section 20 of
            this Agreement. The Board of Directors of the Bank (the "Board")
            will review Executive's performance annually for purposes of
            determining whether to extend the Agreement

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            and the rationale and results thereof shall be included in the
            minutes of the Board's meeting. The Board shall give notice to
            Executive as soon as possible after such review as to whether the
            Agreement is to be extended.

      4.    BASE COMPENSATION.

      a.    The Bank agrees to pay Executive during the term of this Agreement a
            base salary at the rate of $164,400 per year, payable in accordance
            with customary payroll practices.

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

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

      5.    BONUSES. Executive shall be entitled to participate in discretionary
bonuses or other incentive compensation programs that the Bank may award from
time to time to senior management employees pursuant to bonus plans or
otherwise.

      6.    BENEFIT PLANS. Executive shall be entitled to participate in such
life insurance, medical, dental, pension, profit sharing, retirement and
stock-based compensation plans and other programs and arrangements as may be
approved from time to time by the Bank for the benefit of its employees.

      7.    VACATION AND LEAVE. At such reasonable times as the Board shall in
its discretion permit, Executive shall be entitled, without loss of pay, to
absent himself voluntarily from the performance of his employment under this
Agreement, all such voluntary absences to count as vacation time, provided that:

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

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

      c.    In addition to the above mentioned paid vacations, Executive shall
            be entitled, without loss of pay, to absent himself voluntarily from
            the performance of his employment for such additional periods of
            time and for such valid and legitimate reasons as the Board may in
            its discretion determine. Further, the Board may grant

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            Executive a leave or leaves or absence, with or without pay, at such
            time or times and upon such terms and conditions as the Board in its
            discretion may determine.

      8.    EXPENSE PAYMENTS AND REIMBURSEMENTS. Executive shall be reimbursed
for all reasonable out-of-pocket business expenses that he shall incur in
connection with his services under this Agreement upon substantiation of such
expenses in accordance with applicable policies of the Bank.

      9.    AUTOMOBILE ALLOWANCE. During the term of this Agreement, Executive
may be entitled to an automobile allowance. In the event such automobile
allowance is provided by the Bank, Executive shall comply with reasonable
reporting and expense limitations on the use of such automobile as may be
established by the Bank from time to time, and the Bank shall annually include
on Executive's Form W-2 any amount of income attributable to Executive's
personal use of such automobile.

      10.   LOYALTY AND CONFIDENTIALITY.

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

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

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

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      11.   TERMINATION AND TERMINATION PAY. Subject to Section 12 of this
Agreement, Executive's employment under this Agreement may be terminated in the
following circumstances:

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

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

      c.    Disability.

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

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

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                  incident to the performance of any assignment given to
                  Executive during the Disability period.

      d.    Termination for Cause.

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

                  (1)   Personal dishonesty;

                  (2)   Incompetence;

                  (3)   Willful misconduct;

                  (4)   Breach of fiduciary duty involving personal profit;

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

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

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

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

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

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      f.    Without Cause or With Good Reason.

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

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

            iii.  "Good Reason" shall exist if, without Executive's express
                  written consent, the Bank materially breaches any of its
                  obligations under this Agreement. Without limitation, such a
                  material breach shall be deemed to occur upon any of the
                  following:

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

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

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

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

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

                  (6)   Liquidation or dissolution of the Bank.

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

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

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

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

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      12.   TERMINATION IN CONNECTION WITH A CHANGE IN CONTROL.

      a.    For purposes of this Agreement, a "Change in Control" means any of
            the following events:

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

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

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

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

            Notwithstanding anything in this Agreement to the contrary, in no
            event shall the conversion of the Bank from mutual to stock form
            constitute a "Change in Control" for purposes of this Agreement.

      b.    Termination. If within the period ending one year after a Change in
            Control, (i) the Bank shall terminate Executive's employment Without
            Cause, or (ii) Executive voluntarily terminates his employment with
            Good Reason, the Bank shall, within ten calendar days of the
            termination of Executive's employment, make a lump-sum cash payment
            to him equal to three times Executive's average Annual Compensation
            over the five (5) most recently completed calendar years ending with
            the year immediately

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            preceding the effective date of the Change in Control. In
            determining Executive's average Annual Compensation, Annual
            Compensation shall include base salary and any other taxable income,
            including, but not limited to, amounts related to the granting,
            vesting or exercise of restricted stock or stock option awards,
            commissions, bonuses (whether paid or accrued for the applicable
            period), as well as retirement benefits, director or committee fees
            and fringe benefits paid or to be paid to Executive or paid for
            Executive's benefit during any such year, profit sharing, employee
            stock ownership plan and other retirement contributions or benefits,
            including to any tax-qualified plan or arrangement (whether or not
            taxable) made or accrued on behalf of Executive for such years. The
            cash payment made under this Section 12b. shall be made in lieu of
            any payment also required under Section 11f. of this Agreement
            because of a termination in such period. Executive's rights under
            Section 11f. are not otherwise affected by this Section 12. Also, in
            such event, Executive shall, for a thirty-six (36) month period
            following his termination of employment, receive the benefits he
            would have received over such period under any retirement programs
            (whether tax-qualified or non-tax-qualified) in which Executive
            participated prior to his termination (with the amount of the
            benefits determined by reference to the benefits received by
            Executive or accrued on his behalf under such programs during the
            twelve (12) months preceding the Change in Control) and continue to
            participate in any benefit plans that provide health (including
            medical and dental), life or disability insurance, or similar
            coverage upon terms no less favorable than the most favorable terms
            provided to senior executives during such period. In the event that
            the Bank is unable to provide such coverage by reason of Executive
            no longer being an employee, the Bank shall provide Executive with
            comparable coverage on an individual policy basis or the cash
            equivalent.

      c.    The provisions of Section 12 and Sections 14 through 27, including
            the defined terms used in such sections, shall continue in effect
            until the later of the expiration of this Agreement or one year
            following a Change in Control.

      13.   INDEMNIFICATION AND LIABILITY INSURANCE.

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

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            law or regulation. Notwithstanding anything herein to the contrary,
            the obligations of this Section 13 shall survive the term of this
            Agreement by a period of six (6) years.

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

      14.   REIMBURSEMENT OF EXECUTIVE'S EXPENSES TO ENFORCE THIS AGREEMENT. The
Bank shall reimburse Executive for all out-of-pocket expenses, including,
without limitation, reasonable attorney's fees, incurred by Executive in
connection with successful enforcement by Executive of the obligations of the
Bank to Executive under this Agreement. Successful enforcement shall mean the
grant of an award of money or the requirement that the Bank take some action
specified by this Agreement: (i) as a result of a court order; or (ii) otherwise
following an initial failure of the Bank to pay such money or take such action
promptly after written demand therefor from Executive stating the reason that
such money or action was due under this Agreement at or prior to the time of
such demand.

      15.   LIMITATION OF BENEFITS UNDER CERTAIN CIRCUMSTANCES. If the payments
and benefits pursuant to Section 12 of this Agreement, either alone or together
with other payments and benefits which Executive has the right to receive from
the Bank, would constitute a "parachute payment" under Section 280G of the Code,
the payments and benefits pursuant to Section 12 shall be reduced or revised, in
the manner determined by Executive, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits under Section 12
being non-deductible to the Bank pursuant to Section 280G of the Code and
subject to the excise tax imposed under Section 4999 of the Code. The
determination of any reduction in the payments and benefits to be made pursuant
to Section 12 shall be based upon the opinion of the Bank's independent public
accountants and paid for by the Bank. In the event that the Bank and/or
Executive do not agree with the opinion of such counsel, (i) the Bank shall pay
to Executive the maximum amount of payments and benefits pursuant to Section 12,
as selected by Executive, which such opinion indicates there is a high
probability do not result in any of such payments and benefits being
non-deductible to the Bank and subject to the imposition of the excise tax
imposed under Section 4999 of the Code and (ii) the Bank may request, and
Executive shall have the right to demand that it request, a ruling from the IRS
as to whether the disputed payments and benefits pursuant to Section 12 have
such consequences. Any such request for a ruling from the IRS shall be promptly
prepared and filed by the Bank, but in no event later than thirty (30) days from
the date of the opinion of counsel referred to above, and shall be subject to
Executive's approval prior to filing, which shall not be unreasonably withheld.
The Bank and Executive agree to be bound by any ruling received from the IRS and
to make appropriate payments to each other to reflect any such rulings, together
with interest at the applicable federal rate provided for in Section 7872(f)(2)
of the Code. Nothing contained herein shall result in a reduction of any
payments or benefits to which Executive may be entitled upon termination of
employment other than pursuant to Section 12 hereof, or a reduction in the
payments and benefits specified in Section 12 below zero.

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      16.   INJUNCTIVE RELIEF. If there is a breach or threatened breach of
Section 11g. of this Agreement or the prohibitions upon disclosure contained in
Section 10c. of this Agreement, the parties agree that there is no adequate
remedy at law for such breach, and that the Bank shall be entitled to injunctive
relief restraining Executive from such breach or threatened breach, but such
relief shall not be the exclusive remedy hereunder for such breach. The parties
hereto likewise agree that Executive, without limitation, shall be entitled to
injunctive relief to enforce the obligations of the Bank under this Agreement.

      17.   SOURCE OF PAYMENTS.

(a)   All payments provided for in this Agreement shall be timely paid in cash
or check from the general funds of the Bank. The Company, however,
unconditionally 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.

(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
Executive under the Employment Agreement in effect between Executive and the
Company (the "Company Agreement"), such compensation payments and benefits paid
by the Company will be subtracted from any amount due simultaneously to
Executive under similar provisions of this Agreement. Payments pursuant to this
Agreement and the Company Agreement shall be allocated in proportion to the
level of activity and the time expended on such activities by Executive as
determined by the Company and the Bank.

      18.   SUCCESSORS AND ASSIGNS.

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

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

      19.   NO MITIGATION. Executive shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other employment
or otherwise and no such payment shall be offset or reduced by the amount of any
compensation or benefits provided to Executive in any subsequent employment.

      20.   NOTICES. All notices, requests, demands and other communications in
connection with this Agreement shall be made in writing and shall be deemed to
have been given when delivered by hand or 48 hours after mailing at any general
or branch United States Post Office, by registered or certified mail, postage
prepaid, addressed to the Bank at its principal business office and to Executive
at his home address as maintained in the records of the Bank.

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      21.   NO PLAN CREATED BY THIS AGREEMENT. Executive and the Bank expressly
declare and agree that this Agreement was negotiated among them and that no
provision or provisions of this Agreement are intended to, or shall be deemed
to, create any plan for purposes of the Employee Retirement Income Security Act
or any other law or regulation, and each party expressly waives any right to
assert the contrary. Any assertion in any judicial or administrative filing,
hearing, or process that such a plan was so created by this Agreement shall be
deemed a material breach of this Agreement by the party making such an
assertion.

      22.   AMENDMENTS. No amendments or additions to this Agreement shall be
binding unless made in writing and signed by all of the parties, except as
herein otherwise specifically provided.

      23.   APPLICABLE LAW. Except to the extent preempted by federal law, the
laws of the State of Kentucky shall govern this Agreement in all respects,
whether as to its validity, construction, capacity, performance or otherwise.

      24.   SEVERABILITY. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.

      25.   HEADINGS. Headings contained herein are for convenience of reference
only.

      26.   ENTIRE AGREEMENT. This Agreement, together with any understanding or
modifications thereof as agreed to in writing by the parties, shall constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof, other than written agreements with respect to specific plans, programs
or arrangements described in Sections 5 and 6.

      27.   REQUIRED PROVISIONS. In the event any of the foregoing provisions of
this Section 27 are in conflict with the terms of this Agreement, this Section
27 shall prevail.

      a.    The Bank may terminate Executive's employment at any time, but any
            termination by the Bank, other than termination for Cause, shall not
            prejudice Executive's right to compensation or other benefits under
            this Agreement. Executive shall not have the right to receive
            compensation or other benefits for any period after termination for
            Cause as defined in Section 7 of this Agreement.

      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) or 8(g)(1) of the Federal Deposit
            Insurance Act, 12 U.S.C. Section 1818(e)(3) or (g)(1); the Bank'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 Bank may, in its discretion: (i) pay
            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.

                                       12
<PAGE>

      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) or 8(g)(1) of the Federal Deposit
            Insurance Act, 12 U.S.C. Section 1818(e)(4) or (g)(1), all
            obligations of the Bank 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 Bank is in default as defined in Section 3(x)(1) of the
            Federal Deposit Insurance Act, 12 U.S.C. Section 1813(x)(1), all
            obligations of the Bank 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 Bank under this contract shall be terminated,
            except to the extent determined that continuation of the contract is
            necessary for the continued operation of the institution: (i) by the
            Director of the OTS (or his designee), the FDIC or the Resolution
            Trust Corporation, 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) of the Federal Deposit Insurance Act, 12
            U.S.C. Section 1823(c); or (ii) by the Director of the OTS (or his
            designee) at the time the Director (or his designee) approves a
            supervisory merger to resolve problems related to the operations of
            the Bank or when the Bank is determined 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.    Any payments made to Executive pursuant to this Agreement, or
            otherwise, are subject to and conditioned upon compliance with 12
            U.S.C. Section 1828(k) and 12 C.F.R. Section 545.121 and any rules
            and regulations promulgated thereunder.

                                       13
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first set forth above.

ATTEST:                              FIRST FEDERAL SAVINGS & LOAN ASSOCIATION

                                     By:
___________________________             ________________________________________
Corporate Secretary                     For the Entire Board of Directors

WITNESS:                             EXECUTIVE

                                     By:
___________________________             ________________________________________
Corporate Secretary                     Tony D. Whitaker

ATTEST:                              KENTUCKY FIRST FEDERAL BANCORP
                                     (Solely as Guarantor)

                                     By:
___________________________             ________________________________________
Corporate Secretary                     For the Entire Board of Directors

                                       14<PAGE>
                                                                   EXHIBIT 10.08

                                     FORM OF

                   FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

<PAGE>

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

                                TABLE OF CONTENTS

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

<PAGE>

                                    ARTICLE I
                                  INTRODUCTION

SECTION 1.01 PURPOSE, DESIGN AND INTENT.

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

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

                                       1

<PAGE>

                                   ARTICLE II
                                   DEFINITIONS

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

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

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

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

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

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

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

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

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

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

                                       2

<PAGE>

      this clause (b) shall not apply to beneficial ownership of Company voting
      shares held in a fiduciary capacity by an entity of which the Company
      directly or indirectly beneficially owns 50% or more of its outstanding
      voting securities.

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       3

<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       4

<PAGE>

                                   ARTICLE III
                          ELIGIBILITY AND PARTICIPATION

SECTION 3.01 ELIGIBILITY AND PARTICIPATION.

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

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

                                       5

<PAGE>

                                   ARTICLE IV
                                    BENEFITS

SECTION 4.01 SUPPLEMENTAL ESOP BENEFIT.

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

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

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

SECTION 4.02 SUPPLEMENTAL STOCK OWNERSHIP BENEFIT.

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

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

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

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

                                       6

<PAGE>

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

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

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

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

SECTION 4.03 SUPPLEMENTAL PENSION BENEFIT.

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

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

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

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

                                       7

<PAGE>

                                    ARTICLE V
                                    ACCOUNTS

SECTION 5.01 SUPPLEMENTAL ESOP BENEFIT ACCOUNT.

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

SECTION 5.02 SUPPLEMENTAL STOCK OWNERSHIP ACCOUNT.

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

SECTION 5.03 SUPPLEMENTAL PENSION ACCOUNT.

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

                                       8

<PAGE>

                                   ARTICLE VI
                          SUPPLEMENTAL BENEFIT PAYMENTS

SECTION 6.01 PAYMENT OF SUPPLEMENTAL ESOP BENEFIT.

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

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

SECTION 6.02 PAYMENT OF SUPPLEMENTAL STOCK OWNERSHIP BENEFIT.

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

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

SECTION 6.03 PAYMENT OF SUPPLEMENTAL PENSION BENEFIT.

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

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

SECTION 6.04 ALTERNATIVE PAYMENT OF BENEFITS.

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

                                       9

<PAGE>

                                   ARTICLE VII
                                CLAIMS PROCEDURES

SECTION 7.01 CLAIMS REVIEWER.

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

SECTION 7.02 CLAIMS PROCEDURE.

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

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

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

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

                                       10

<PAGE>

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

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

                                       11

<PAGE>

                                  ARTICLE VIII
                            AMENDMENT AND TERMINATION

SECTION 8.01 AMENDMENT OF THE PLAN.

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

SECTION 8.02 TERMINATION OF THE PLAN.

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

                                       12

<PAGE>

                                   ARTICLE IX
                               GENERAL PROVISIONS

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

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

SECTION 9.02 COMMITTEE AS PLAN ADMINISTRATOR.

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

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

SECTION 9.03 EXPENSES.

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

SECTION 9.04 STATEMENTS.

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

                                       13

<PAGE>

SECTION 9.05 RIGHTS OF PARTICIPANTS AND BENEFICIARIES.

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

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

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

SECTION 9.06 INCOMPETENT INDIVIDUALS.

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

SECTION 9.07 SALE, MERGER OR CONSOLIDATION OF THE BANK.

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

                                       14

<PAGE>

SECTION 9.08 LOCATION OF PARTICIPANTS.

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

SECTION 9.09 LIABILITY OF THE BANK AND ITS SUBSIDIARIES.

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

SECTION 9.10 GOVERNING LAW.

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

                                       15

<PAGE>

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

                                           FIRST FEDERAL SAVINGS AND
                                           LOAN ASSOCIATION

Attest:

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

                                       16

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