Document:

Exhibit 10.3

                          Peoples Federal Savings Bank
           Executive Officers and Directors Deferred Compensation Plan

                           Effective December 31, 2000

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                                TABLE OF CONTENTS

ARTICLE I
   Plan Participants.......................................................... 1

ARTICLE II
   Plan Benefits.............................................................. 1

ARTICLE III
   Vesting.................................................................... 1

ARTICLE IV
   Distribution of Accounts................................................... 1

ARTICLE V
   Change in Control.......................................................... 2

ARTICLE VI

Insolvency.................................................................... 3

ARTICLE VII
   Administration of the Plan................................................. 3

ARTICLE VIII
   Amendment or Termination................................................... 4

ARTICLE IX
   Fiduciary Responsibility and Liability..................................... 4

ARTICLE X
   Miscellaneous.............................................................. 5

SCHEDULE A.................................................................... 7

<PAGE>

                          Peoples Federal Savings Bank
           Executive Officers and Directors Deferred Compensation Plan

      Effective  December 31, 2000,  Peoples  Federal  Savings Bank (the "Bank")
hereby  establishes  the Peoples  Federal  Savings Bank  Executive  Officers and
Directors  Deferred  Compensation  Plan (the "Plan") for members of its Board of
Directors (the "Board") and Executive Officers, as set forth herein.

                                    ARTICLE I
                                PLAN PARTICIPANTS
                                -----------------

      Attached  hereto as Schedule A is a list of the  Directors  and  Executive
Officers who will participate in the Plan. The Directors and Executive  Officers
listed on Schedule A shall be referred to hereinafter as "Participants."

                                   ARTICLE II
                                  PLAN BENEFITS
                                  -------------

      Each Participant eligible for benefits under the Plan shall receive annual
payments equal to Seventeen  Thousand Eight Hundred Dollars  ($17,800) for a ten
year period certain.  This benefit shall be known as the  "Retirement  Benefit."
The  Retirement  Benefit shall be reduced by the applicable  federal,  state and
local income taxes for each year commencing on such date as set forth in Article
IV below  and  payable  annually  thereafter,  in  accordance  with the  general
practice of the Bank for the payment of executive compensation.

                                   ARTICLE III
                                     VESTING
                                     -------

      A  Participant  shall be 100% vested in his  Retirement  Benefits upon the
completion  of ten years of service as a Director  or  Executive  Officer of the
Bank. Prior years of service as Director or Executive  Officer of the Bank prior
to the effective date of the Plan will be credited for this purpose.

                                   ARTICLE IV
                            DISTRIBUTION OF ACCOUNTS
                            ------------------------

      Retirement  Benefits  become payable upon: (1) attainment of age 62 if the
Participant  is an  Executive  Officer  or  (2)  attainment  of  age  70 if  the
Participant is a Director.  Notwithstanding the foregoing,  Participants who are
Executive  Officers of the Bank may retire early and payment of their Retirement
Benefits  will  commence  upon  the  Participant's  attainment  of age 59.  If a
Participant  who is an Executive  Officer elects early  retirement as previously
described, his Retirement Benefits will be reduced by 20%.

                                        1
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      B. When a Participant's  Retirement Benefits become payable, a Participant
may elect to have his  Retirement  Benefits  paid in the form of a lump sum cash
payment equal to the present value of the  Retirement  Benefit  determined as of
the date the Retirement Benefits become payable.

      C. If the  Participant,  who has not  elected  a lump sum  payment  and is
receiving annual payments for a ten year period certain, dies prior to receiving
ten annual payments,  the Bank shall make a lump sum cash payment of the present
value  of  the  remaining  Retirement  Benefits  (the  "Death  Benefit")  to the
Participant's  designated  beneficiary (or, if none, the Participant's  estate).
Notwithstanding  the foregoing,  if the designated  beneficiary  dies before the
Death  Benefit has been paid to him, the Death  Benefit  shall be payable to the
designated   beneficiary's  estate.  If  the  Participant's  Retirement  Benefit
payments  have  not yet  commenced  and the  Participant  dies,  the  designated
beneficiary  shall receive the Death Benefit  payable in a lump sum cash payment
equal to the present value of 100% of the Participant's  Retirement  Benefit. If
the Participant does not have a designated beneficiary,  the Death Benefit shall
be paid to the Participant's  estate.  Death Benefits are payable within 90 days
of the date of death.

      D. A termination of service for Cause will result in immediate  forfeiture
of the Participant's  Retirement Benefits. For purpose of this Article,  "Cause"
is defined as any personal dishonesty,  incompetence, willful misconduct, breach
of fiduciary duty involving personal profit,  intentional  failure or refusal to
perform duties and  responsibilities of the position or willful violation of any
law, rule or regulation (other than traffic violations or other minor offenses).
The  determination  of whether a  termination  of service is for Cause  shall be
solely in the Board's discretion.

                                    ARTICLE V
                                CHANGE IN CONTROL
                                -----------------

      A. Upon a Change in Control, all benefits will be 100% vested and paid out
in  a  lump  sum  cash  payment  within  30  days  of  the  Change  in  Control.
Notwithstanding  anything  to  the  contrary  herein,  a  Participant  receiving
benefits  under this  Article V may elect to receive his lump sum payment in the
form of Bank stock.  For purposes of this Article,  Change in Control shall mean
any one of the following  events:  (1) the  acquisition of ownership or power to
vote more than 25% of the votes  eligible to be cast at a meeting of the members
or  stockholders,  as  applicable,  of the Bank (other  than  control of general
proxies by the  Board);  (2) the  acquisition  of the  ability  to  control  the
election of a majority  of the  directors  of the Bank  (other  than  control of
general  proxies  by the  Board);  (3)  during  any  period  of  three  or  less
consecutive  years,  individuals who at the beginning of such period  constitute
the Board cease for any reason, other than death,  disability or retirement,  to
constitute at least a majority thereof;  provided,  however, that any individual
whose  election  or  nomination  for  election as a member of the Board shall be
considered to have  continued to be a member of the Board of the Bank; or (4) if
the Bank is organized in stock form, the  acquisition by any person or entity of
"conclusive  control"  of the Bank  within the  meaning  of 12 CFR  ss.574.4(a),
ss.574.4(b)  that has not been rebutted in accordance  with 12 CFR  ss.574.4(c).
For purposes of this  paragraph,  the term  "person"  refers to an individual or
corporation,  partnership, trust association or other organization, but does not
include the  Participant  and any person or persons with whom the Participant is
"acting in concert" within the meaning of 12 CFR Part 574.

                                        2
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         B. The Bank shall not merge or consolidate with any other corporation,
or in any way be acquired by any other corporation, unless and until such
corporation expressly assumes the duties and obligations of the Bank herein set
forth.

                                   ARTICLE VI
                                   INSOLVENCY
                                   ----------

If the Bank is  Insolvent,  no Retirement  Benefits  shall be payable under this
Plan.  The Bank  shall be  considered  "Insolvent"  for  purposes  of this Trust
Agreement  if (1) the Bank is unable to pay its debts as they  become due or (2)
the Bank is  subject to a pending  proceeding  as a debtor as defined in Article
3(x)(1) of the Federal Deposit Insurance Act.

                                   ARTICLE VII
                           ADMINISTRATION OF THE PLAN
                           --------------------------

      A. The Board shall appoint one or more employees of the Bank to act as the
Plan Administrator.  The Plan Administrator shall be responsible for the general
operation  and  administration  of the Plan,  and shall have such  powers as are
necessary to discharge its duties under the Plan, including, without limitation,
the following:

      (1) with the advice of the general  counsel of the Bank,  to construe  and
interpret  the Plan, to decide all  questions of  eligibility,  to determine the
amount, manner and time of payment of any benefits hereunder, to prescribe rules
and procedures to be followed by Participants and their  beneficiaries under the
Plan, and to otherwise carry out the purposes of the Plan; and

      (2) to appoint or employ  individuals to assist in the  administration  of
the Plan and any other agents deemed advisable.

The decisions of the Plan Administrator shall be binding and conclusive upon all
Participants, beneficiaries and other persons.

      B. Any Participant  claiming a benefit,  requesting an  interpretation  or
ruling, or requesting information,  under the Plan, shall present the request in
writing to the Plan  Administrator,  which  shall  respond in writing as soon as
practicable.  If the claim or request is denied,  the  written  notice of denial
shall state the following:

      (1)   the  reasons  for  denial,  with  specific  reference  to  the  Plan
            provisions upon which the denial is based;

      (2)   a description of any additional material or information required and
            an explanation of why it is necessary; and

      (3)   an explanation of the Plan's review procedure.

                                        3
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      The initial  notice of denial shall normally be given within 90 days after
receipt of the claim. If special circumstances require an extension of time, the
claimant  shall be so notified and the time limit shall be 180 days.  Any person
whose claim or request is denied,  or who has not received a response  within 30
days,  may request  review by notice in writing to the Plan  Administrator.  The
original  decision shall be reviewed by the Plan  Administrator,  which may, but
shall not be required to, grant the  claimant a hearing.  On review,  whether or
not there is a hearing, the claimant may have representation,  examine pertinent
documents  and submit  issues and  comments in writing.  The  decision on review
shall ordinarily be made within 60 days. If an extension of time is required for
a hearing or other special circumstances,  the claimant shall be so notified and
the time limit shall be extended to 120 days. The decision on review shall be in
writing  and shall  state the  reasons and the  relevant  Plan  provisions.  All
decisions on review shall be final and binding on all parties concerned.

                                  ARTICLE VIII
                            AMENDMENT OR TERMINATION
                            ------------------------

A. The Bank intends the Plan to be permanent  but reserves the right to amend or
terminate  the Plan when,  in the sole  opinion of the Bank,  such  amendment or
termination  is  advisable.  Any such  amendment  or  termination  shall be made
pursuant to a  resolution  of the Board and shall be effective as of the date of
such resolution or such later date as the resolution may expressly state.

B. No amendment or termination of the Plan shall directly or indirectly  deprive
any current or former  Participant or his beneficiaries of all or any portion of
his  benefit  as  determined  as of the  effective  date  of such  amendment  or
termination.  Upon  termination of the Plan,  distribution  of Benefits shall be
made to  Participants  or  their  beneficiaries  in the  manner  and at the time
described in Article IV as if each  Participant  had then  attained the (latest)
age at which  Retirement  Benefits  would become  payable to him. The Bank shall
continue to pay Benefits until each Participant  and/or beneficiary has received
the full amount to which they are entitled under the Plan.

                                   ARTICLE IX
                     FIDUCIARY RESPONSIBILITY AND LIABILITY
                     --------------------------------------

      In carrying out its responsibilities  under the Plan, the Bank, the Board,
the Plan Administrator and any other fiduciary hereunder shall act solely in the
interest of the  Participants and their  designated  beneficiaries  and with the
care, skill, prudence and diligence under the circumstances then prevailing that
a prudent man acting in a like capacity and familiar with such matters would use
in the conduct of an enterprise of a like character and with like aims.

                                        4
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                                    ARTICLE X
                                  MISCELLANEOUS
                                  -------------

      A. Any provision of this Plan  prohibited by law shall be  ineffective  to
the  extent  of  any  such  prohibition,   without  invalidating  the  remaining
provisions hereof

      B. The Plan at all times shall be entirely unfunded and no provision shall
at any time be made  with  respect  to  segregating  any  assets of the Bank for
payment of any benefits hereunder. The right of a Participant or his beneficiary
to receive a benefit  hereunder  shall be an unsecured claim against the general
assets of the Bank, and neither the Participant nor a beneficiary shall have any
rights in or against any specific assts of the Bank.

      C. Nothing  contained in the Plan shall constitute a guaranty by the Bank,
the Board,  the Plan  Administrator,  or any other  person or  entity,  that the
assets  of the  Bank  will  be  sufficient  to pay  any  benefit  hereunder.  No
Participant or beneficiary shall have any right to receive a distribution  under
the Plan except in accordance with the terms of the Plan.

      D.  Establishment  of  the  Plan  shall  not  be  construed  to  give  any
Participant the right to be retained as a member of the Board or as an Executive
Officer.

      E. Benefits payable to a Participant or beneficiaries  under this Plan may
not be subject in any manner to sale, transfer,  assignment, pledge, attachment,
garnishment,  or other  alienation  or  encumbrance  of any  kind;  nor may such
interest or right to receive a  distribution  be taken,  either  voluntarily  or
involuntarily, for the satisfaction of the debts, or other obligations or claims
against, such person or entity, including claims for alimony,  support, separate
maintenance and claims in bankruptcy proceedings.

      F. The Plan  shall be  construed  and  administered  under the laws of the
State of Indiana, except to the extent preempted by federal law.

      G. If any  person  entitled  to a payment  under the Plan is deemed by the
Bank to be incapable of personally receiving and giving a valid receipt for such
payment,  then,  unless and until claim therefore shall have been made by a duly
appointed  guardian or other legal  representative of such person,  the Bank may
provide for such  payment or any part  thereof to be made to any other person or
institution  that  is  contributing   toward  or  providing  for  the  care  and
maintenance of such person.  Any such payment shall be a payment for the account
of such person and a complete discharge of any liability of the Bank, the Board,
the Plan Administrator and the Plan therefore.

      H. Each  Participant  or  beneficiary  shall  keep the Plan  Administrator
informed of his current address.  The Plan Administrator  shall not be obligated
to search for the whereabouts of any person.

      I.  Notwithstanding  any of the preceding  provisions of the Plan, none of
the Bank,  any member of the Board,  any Plan  Administrator  or any  individual
acting as an employee or agent of the Bank, the Board or the Plan Administrator,
shall be liable to any Participant,  former  Participant,  or any beneficiary or
other  person  for any  claim,  loss,  liability  or  expense  incurred  by such
Participant, or beneficiary or other person in connection with the Plan.

                                        5
<PAGE>

      J.  The  Plan  shall  not be  construed  to  affect  any  right  that  any
Participant may otherwise have to participate in, or under, any other retirement
plan or agreement that the Bank may now or hereafter offer.

      K. The Plan and provisions hereunder shall be binding upon the Participant
and the Participant's respective heirs, executors, administrators or successors.

      L. Any notice under the Plan shall be in writing,  or by electronic means,
and shall be received when actually  delivered,  or mailed postage paid as first
class U.S. Mail. Notices shall be directed to the Bank at its principal business
office at Second & Bridgeway Streets P.O. Box 119 Aurora, IN 47001 to the CEO of
the Bank, and to a beneficiary entitled to benefits at the address stated in the
Participant's beneficiary designation,  or to such other addresses any party may
specify by notice to the other parties.

      IN WITNESS  WHEREOF,  the Plan has been  executed on behalf of the Bank on
this 29th day of December 2000.

                                         Peoples Federal Savings Bank

                                         /s/ Mel E. Green

                                         By: Mel E. Green, CEO

                                        6
<PAGE>

                                   SCHEDULE A

                          Peoples Federal Savings Bank
           Executive Officers and Directors Deferred Compensation Plan

                            SCHEDULE OF PARTICIPANTS
                                                           Date Became Director/
Participant:                 Date of Birth:                Executive Officer
Gilbert L. Houze                   05/05/28                      02/15/57
Robert L. Laker                    09/28/30                      02/01/72
Carl E. Petty                      11/11/37                      01/09/84
Jack D. Tandy                      03/11/32                      02/01/86
Dale R. Moeller                    09/13/36                      02/12/87
Mel E. Green                       10/21/49                      10/01/87
Stuart M. Suggs                    06/27/57                      07/19/99

                                        7Exhibit 10(h)(1)

                          Explanatory Note:  the 1987 Stock Option Program
                          as further proposed to be amended is filed herewith
                          pursuant to Instruction 3 to Item 10 of Schedule 14A
                          and is not part of this proxy statement.

                            PATRICK INDUSTRIES, INC.

                               Amendment No. 2 to
                           1987 Stock Option Program,
                             As Amended and Restated

         Section 3(b) is hereby amended, effective upon shareholder approval at
the annual meeting on May 14, 2004, to change the non-employee director awards
from bi-annual awards of 6,000 shares vesting over a two-year period to annual
awards of 3,000 shares vesting over a one-year period.

         Section 12 (Term of Program and Amendment, Modification or Cancellation
of Benefits) is hereby amended, effective upon shareholder approval at the
annual meeting on May 14, 2004, to extend the expiration date of the Program
from May 17, 2004 to May 17, 2014.

         In all other respects, the Program shall remain in full force and
effect.

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