Document:

Exhibit 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

     THIS  AGREEMENT  is  entered  into as of the 31st day of May  2000,  by and
between HopFed Bancorp, Inc. (the "Company") and John E. Peck (the "Employee").

     WHEREAS, the Company desires to employ the Employee; and

     WHEREAS, the Employee is willing to commence employment with the Company on
the terms  and  conditions  set forth  below,  and the  Board of  Directors  has
determined  that such  terms are  reasonable  and in the best  interests  of the
Company.

     NOW, THEREFORE, it is AGREED as follows:

     1.  Employment.  The Employee is hereby employed by the Company.  Effective
July 3, 2000, the Employee shall serve as President and Chief Executive  Officer
of the Company.  Except to the extent that the Board of Directors of the Company
(the "Board")  shall have  delegated a portion of such  authority to one or more
other  officers,  as President  and Chief  Executive  Officer of the Company the
Employee shall have general charge and direction of the business of the Company,
shall see that all orders and  resolutions of the Board are carried into effect,
and shall  perform such other  administrative  and  management  services for the
Company as are currently  rendered and as are  customarily  performed by persons
situated in a similar executive  capacity.  The Employee shall also promote,  by
entertainment or otherwise,  as and to the extent permitted by law, the business
of the Company.

     2.  Consideration  from Company Joint,  and Several  Liability.  In lieu of
paying the Employee a base salary during the term of this Agreement, the Company
hereby  agrees  that to the extent  permitted  by law,  it shall be jointly  and
severally  liable with its  subsidiary,  Hopkinsville  Federal Savings Bank (the
"Bank"),  for the payment of all amounts due under the  employment  agreement of
even date herewith  between the Bank and the Employee.  Nevertheless,  the Board
may in its discretion at any time during the term of this Agreement agree to pay
the  Employee a base salary for the  remaining  term of this  Agreement.  If the
Board agrees to pay such salary,  the Board shall  thereafter  review,  not less
often  than  annually,  the  rate  of the  Employee's  salary,  and in its  sole
discretion may decide to increase his salary.

     3.  Discretionary  Bonuses.  The Employee shall participate in an equitable
manner  with  all  other   senior   management   employees  of  the  Company  in
discretionary  bonuses  that  the  Board  may  award  from  time  to time to the
Company's senior management  employees.  No other  compensation  provided for in
this  Agreement  shall  be  deemed  a  substitute  for the  Employee's  right to
participate in such discretionary bonuses.

     4. (a)  Participation in Retirement,  Medical and Other Plans. The Employee
shall be entitled to participate in any plan that the Company  maintains for the
benefit of its employees if the plan relates to (i) pension, profit-sharing,  or
other  retirement  benefits,  (ii)  medical  insurance or the  reimbursement  of
medical or dependent care  expenses,  or (iii) other group  benefits,  including
disability and life insurance plans.

                                       1
<PAGE>
                                                                    Exhibit 10.1

     (b)  Employee  Benefits.  The  Employee  shall  participate  in any  fringe
benefits  that are or may become  available to the Company's  senior  management
employees,  including,  for example: any stock option or incentive  compensation
plans and any other benefits that are commensurate with the responsibilities and
functions to be performed by the Employee under this Agreement.

     (c) Stock  Options.  As of the date  hereof,  and as an  inducement  to the
Employee's entering into this Agreement with the Company,  the Employee shall be
granted options to acquire 40,000 shares of the Company's common stock under the
Company's 2000 Stock Option Plan. The stock options shall be granted at the fair
market  value of the  Company's  common stock as of the close of business on the
date hereof, shall be subject to a four-year vesting schedule (i.e., 25% of such
options  shall  vest on each of the later of May 31,  2001 or the  business  day
subsequent to the 2001 Annual Meeting of  Stockholders  (the "Annual  Meeting"),
May 31, 2002,  May 31, 2003 and May 31,  2004),  shall become fully  exercisable
upon a "change in control" (as defined in the Section 11(a) hereof) and shall be
for a term of 10 years. Such options shall be incentive stock options as defined
in Section 422 of the Internal  Revenue Code of 1986,  as amended (the  "Code"),
subject to approval of the 2000 Stock Option Plan by the Company's  stockholders
at the Annual  Meeting.  If the 2000 Stock  Option  Plan is not  approved at the
Annual Meeting,  such options shall not be incentive stock options as defined in
Section 422 of the Code.

     (d)  Expenses.   The  Employee  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 the policies of the Company.

     5. Term. The Company hereby employs the Employee,  and the Employee  hereby
accepts such employment under this Agreement,  for the period commencing on July
3, 2000 (the "Effective  Date") and ending 36 months thereafter (or such earlier
date as is  determined in accordance  with Section 9 hereof).  Additionally,  on
each annual  anniversary  date from the Effective  Date,  this Agreement and the
Employee's  term of  employment  shall be extended  for an  additional  one-year
period  beyond  the then  effective  expiration  date,  provided  that the Board
determines in a duly adopted resolution that the performance of the Employee has
met the Board's  requirements  and standards,  and that this Agreement  shall be
extended.

     6. Loyalty Full Time and Attention.

     (a) During the period of his  employment  hereunder and except for illness,
reasonable  vacation  periods,  and reasonable  leaves of absence,  the Employee
shall devote all his full business time,  attention,  skill,  and efforts to the
faithful   performance   of  his  duties   hereunder  to  the  Company  and  its
subsidiaries;  provided  that,  from time to time, the Employee may serve on the
board of directors of, and hold any other offices or positions in,  companies or
organizations,  that will not present any conflict of interest  with the Company
or any of its subsidiaries or affiliates,  or unfavorably affect the performance
of  Employee's  duties  pursuant  to this  Agreement,  or will not  violate  any
applicable statute or regulation. "Full business time" is hereby defined as that
amount of time usually devoted to like companies by similarly situated

                                       2
<PAGE>
                                                                    Exhibit 10.1

executive officers.  During the term of his employment under this Agreement, the
Employee  shall not engage in any business or activity  contrary to the business
affairs or  interests  of the  Company,  or be  gainfully  employed in any other
position or job other than as provided above.

     (b) Nothing contained in this Section 6 shall be deemed to prevent or limit
the Employee's  right to invest in the capital stock or other  securities of any
business  dissimilar  from that of the  Company,  or,  solely  as a  passive  or
minority investor, in any business.

     7. Standards. The Employee shall perform his duties under this Agreement in
accordance with such  reasonable  standards as the Board may establish from time
to time.  The Company will provide the Employee with the working  facilities and
staff customary for similar executive  officers and necessary for him to perform
his duties.

     8. Vacation and Sick Leave. The Employee shall be entitled, without loss of
pay, to absent himself voluntarily from the performance of his duties under this
Agreement  in  accordance  with the terms set forth  below,  all such  voluntary
absences to count as vacation time; provided that:

     (a) The Employee shall be entitled to an annual vacation in accordance with
the  policies  periodically  established  by the  Board  for  senior  management
employees of the Company.

     (b) The Employee  shall not receive any  additional  compensation  from the
Company on account of his failure to take a vacation, and the Employee shall not
accumulate  unused  vacation from one fiscal year to the next,  except in either
case to the extent authorized by the Board.

     (c) In addition to the  aforesaid  paid  vacations,  the Employee  shall be
entitled,   without  loss  of  pay,  to  absent  himself  voluntarily  from  the
performance of his employment  obligations  with the Company for such additional
periods  of time and for such valid and  legitimate  reasons as the Board may in
its discretion approve.  Further, the Board may grant to the Employee a leave or
leaves of  absence,  with or  without  pay,  at such time or times and upon such
terms and conditions as the Board in its discretion may determine.

     (d) In  addition,  the  Employee  shall be entitled to an annual sick leave
benefit as established by the Board.

     9.  Termination  and  Termination  Pay.  Subject to Section 11 hereof,  the
Employee's   employment   hereunder  may  be  terminated   under  the  following
circumstances:

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

                                       3
<PAGE>
                                                                    Exhibit 10.1

     (b) Disability.  The Company may terminate the Employee's  employment after
having  established,  through  a  determination  by the  Board,  the  Employee's
Disability.  For purposes of this  Agreement,  "Disability"  means a physical or
mental infirmity that impairs the Employee's  ability to  substantially  perform
his duties  under this  Agreement  and that  results  in the  Employee  becoming
eligible  for  long-term  disability  benefits  under  the  Company's  long-term
disability plan (or, if the Company has no such plan in effect, that impairs the
Employee's ability to substantially  perform his duties under this Agreement for
a period  of 180  consecutive  days).  The  Employee  shall be  entitled  to the
compensation  and benefits  provided for under this Agreement for (i) any period
during  the  term  of this  Agreement  and  prior  to the  establishment  of the
Employee's  Disability  during  which the  Employee is unable to work due to the
physical or mental infirmity,  or (ii) any period of Disability that is prior to
the Employee's termination of employment pursuant to this Section 9(b); provided
that any benefits paid pursuant to the Company's long-term  disability plan will
continue as provided in such plan.

     (c) For Just  Cause.  The Board  may,  by written  notice to the  Employee,
immediately  terminate his employment at any time, for Just Cause.  The Employee
shall have no right to receive  compensation  or other  benefits  for any period
after  termination  for Just  Cause.  Termination  for "Just  Cause"  shall mean
termination  because  of, in the good  faith  determination  of the  Board,  the
Employee's personal  dishonesty,  incompetence,  willful  misconduct,  breach of
fiduciary duty involving personal profit,  intentional failure to perform stated
duties,  willful  violation of any law, rule or  regulation  (other than traffic
violations or similar  offenses) or final  cease-and-desist  order,  or material
breach of any provision of this Agreement.  Notwithstanding  the foregoing,  the
Employee shall not be deemed to have been terminated for Just Cause unless there
shall have been delivered to the Employee a copy of a resolution duly adopted by
the affirmative vote of not less than a majority of the entire membership of the
Board  (excluding  the  Employee  if a member of the  Board) at a meeting of the
Board called and held for the purpose (after  reasonable  notice to the Employee
and an opportunity for the Employee to be heard before the Board),  finding that
in the good faith  opinion of the Board the  Employee  was guilty of conduct set
forth above in the second  sentence of this  Subsection  (c) and  specifying the
particulars thereof in detail.

     (d) Without Just Cause. Subject to the provisions of Section 11 hereof, the
Board  may,  by  written  notice  to the  Employee,  immediately  terminate  his
employment at any time for any reason; provided that, if such termination is for
any reason other than pursuant to Sections 9(a), (b) or (c) above,  the Employee
shall be entitled to receive the following  compensation  and benefits:  (i) the
salary  provided  pursuant to Section 2 hereof,  up to the date of expiration of
the term  (including  any renewal  term then in effect) of this  Agreement  (the
"Termination  Date") and (ii) the cost to the Employee of obtaining  all health,
life,  disability and other benefits (excluding any bonus, stock option or other
compensation  benefits)  in which  the  Employee  would  have been  eligible  to
participate   through  the  Termination  Date  based  upon  the  benefit  levels
substantially  equal to those that the Company  provided for the Employee at the
date of termination of employment.  Said sum shall be paid, at the option of the
Employee,  either  (1) in  periodic  payments  over the  remaining  term of this
Agreement,  as if the Employee's  employment had not  terminated,  or (2) in one
lump sum within 10 days of such termination.

                                       4
<PAGE>
                                                                    Exhibit 10.1

     (e) Termination or Suspension Under Federal Law.

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

     (2) If the Bank is in default (as "defined in Section 3(x)(1) of FDIA), all
obligations  under this  Agreement  shall  terminate  as of the date of default;
however,  this  Paragraph  9(e)(2)  shall not affect  the  vested  rights of the
parties.

     (3) All  obligations  under this Agreement shall  terminate,  except to the
extent that  continuation  of this  Agreement  is  necessary  for the  continued
operation  of the  Company  and the Bank:  (A) by the  Director of the Office of
Thrift Supervision ("OTS"), or his or her designee, at the time that the Federal
Deposit Insurance  Corporation enters into an agreement to provide assistance to
or on behalf of the Bank under the  authority  contained in Section 13(c) of the
FDIA;  or (B) by the  Director of the OTS, or his or her  designee,  at the time
that the  Director of the OTS, or his or her  designee,  approves a  supervisory
merger to resolve  problems related to operation of the Bank or when the Bank is
determined  by the Director of the OTS to be in an unsafe or unsound  condition.
Such action shall not affect any vested rights of the parties.

     (4) If a notice  served  under  Section  8(e)(3)  or (g)(1) of the FDIA (12
U.S.C.ss.1818(e)(3)   or  (g)(1))  suspends  and/or  temporarily  prohibits  the
Employee from participating in the conduct of the Bank's affairs,  the Company's
obligations  under  this  Agreement  shall be  suspended  as of the date of such
service unless stayed by appropriate  proceedings.  If the charges in the notice
are  dismissed,  the Company may in its  discretion  (A) pay the Employee all or
part of the compensation withheld while its contract obligations were suspended,
and (B)  reinstate  (in  whole  or in part)  any of its  obligations  that  were
suspended.

     (5) If any of the  provisions  of  this  Paragraph  9(e)  conflict  with 12
C.F.R.ss.563.39(b), the latter shall prevail.

     (f) Voluntary Termination by Employee. Subject to the provisions of Section
11 hereof,  the Employee may voluntarily  terminate  employment with the Company
during the term of this  Agreement,  upon at least 60 days' prior written notice
to the Board, in which case the Employee shall receive,  only his  compensation,
vested rights and employee benefits accrued up to the date of his termination.

     (g)  Limitation  by  Section  18(k) of the FDIA.  Notwithstanding  anything
herein to the  contrary,  any  payments  made to the  Employee  pursuant to this
Agreement,  or otherwise,  are subject to and conditioned  upon their compliance
with  Section  18(k) of the  FDIA (12  U.S.C.  ss.1828(k))  and any  regulations
promulgated thereunder.

                                       5
<PAGE>
                                                                    Exhibit 10.1

     10. No  Mitigation.  The  Employee  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 the  Employee  in  any  subsequent
employment.

     11. Change in Control.

                  (a) Notwithstanding  any provision herein to the contrary,  if
the  Employee's  employment  under this  Agreement is terminated by the Company,
without the  Employee's  prior  written  consent and for a reason other than for
Just Cause, death or disability in connection with or within 12 months after any
change in control of the Bank or the  Company,  which has not been  approved  in
advance by a two-thirds  vote of the full Board of Directors of each of the Bank
and the  Company,  the  Employee  shall be paid an amount equal to two times the
Employee's  "Base  Salary" as defined in the  employment  agreement of even date
herewith  between the Bank and the Employee.  The term "change in control" shall
mean (1) a change in the  ownership,  holding  or power to vote more than 25% of
the Bank's or the  Company's  voting  stock,  (2) a change in the  ownership  or
possession of the ability to control the election of a majority of the Bank's or
the Company's  directors,  or (3) a change in the ownership or possession of the
ability to exercise a controlling  influence  over the management or policies of
the Bank or the Company by any person or by persons acting as a "group"  (within
the meaning of Section  13(d) of the  Securities  Exchange Act of 1934)  (except
that, in the case of (1), (2) and (3) hereof),  ownership or control of the Bank
or its directors by the Company itself shall not constitute a change in control.
The term "person" means an individual other than the Employee, or a corporation,
partnership,   trust,   association,   joint  venture,  pool,  syndicate,   sole
proprietorship,  unincorporated  organization  or any other  form of entity  not
specifically listed herein.

                  (b) The sum of the amount  payable  under Section 11(a) hereof
and any other  "parachute  payment" as defined under  Section  280G(b)(2) of the
Internal Revenue Code of 1986, as amended from time to time (the "Code"),  shall
not  exceed  2.99  times the  Employee's  "base  amount"  as  defined in Section
280G(b)(3) of the Code.

                  (c)  Notwithstanding  the  foregoing,  but only to the  extent
required  under  federal  banking law, the amount  payable  under  Section 11(a)
hereof  shall  be  reduced  to the  extent  that on the  date of the  Employee's
termination  of  employment,  the amount payable under Section 11(a) exceeds the
limitation  on severance  benefits set forth in  Regulatory  Bulletin 27a of the
OTS, as in effect on such termination date.

                  (d) In the event that any dispute  arises between the Employee
and the Company as to the terms or interpretation  of this Agreement,  including
this Section 11,  whether  instituted by formal legal  proceedings or otherwise,
including an action that Employee  takes to enforce the terms of this Section 11
or to defend  against any action  taken by the Company,  the  Employee  shall be
reimbursed for all costs and expenses,  including  reasonable  attorneys'  fees,
arising from such disputes or proceedings, provided that the Employee shall have
obtained a final  judgment by a court of  competent  jurisdiction  in his or her
favor. Such reimbursement  shall be paid within 10 days of Employee's  providing
the Company with

                                       6
<PAGE>
                                                                    Exhibit 10.1

written evidence, which may be in the form, among others, of a canceled check or
receipt, of any costs or expenses incurred by the Employee.

     12. Successors and Assigns.

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

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

     13.  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.

     14.  Applicable  Law.  This  Agreement  shall be governed in all  respects,
whether as to its validity, construction, capacity, performance or otherwise, by
the laws of the Commonwealth of Kentucky,  except to the extent that Federal law
shall be deemed to apply.

     15.  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.

     16. Entire  Agreement.  This Agreement,  together with any understanding or
modifications  thereof as agreed to in writing by the parties,  shall constitute
the entire agreement between the parties hereto.

     IN WITNESS  WHEREOF the parties have executed this Agreement on the day and
year first above written.

ATTEST:                                  HOPFED BANCORP, INC.

________________________                 By:____________________________________
Secretary                                     WD Kelley, Chairman of the Board

WITNESS:

------------------------                      ----------------------------------
                                              John E. Peck

                                       7Exhibit 10.2

                              EMPLOYMENT AGREEMENT
                              --------------------

     THIS  AGREEMENT  is entered  into as of the 31st day of May,  2000,  by and
between  Hopkinsville  Federal  Savings  Bank (the "Bank") and John E. Peck (the
"Employee").

     WHEREAS, the Bank desires to employ the Employee; and

     WHEREAS,  the Employee is willing to commence  employment  with the Bank on
the terms and conditions set forth below, and the Board of Directors of the Bank
has  determined  that such terms and  conditions  are reasonable and in the best
interests of the Bank.

     NOW, THEREFORE, it is AGREED as follows:

     1. Employment.  The Employee is hereby employed by the Bank. Effective July
3, 2000,  the Employee shall serve as President and Chief  Executive  Officer of
the Bank.  Except to the  extent  that the Board of  Directors  of the Bank (the
"Board")  shall have  delegated a portion of such authority to one or more other
officers,  as President  and Chief  Executive  Officer the  Employee  shall have
general  charge and  direction of the  business of the Bank,  shall see that all
orders and  resolutions of the Board are carried into effect,  and shall perform
such other  administrative and management services for the Bank as are currently
rendered  and as are  customarily  performed  by persons  situated  in a similar
executive  capacity.  The  Employee  shall also  promote,  by  entertainment  or
otherwise, as and to the extent permitted by law, the business of the Bank.

     2. Base  Compensation.  Prior to July 3, 2000,  the Bank  agrees to pay the
Employee  $1,000.  Thereafter,  the Bank agrees to pay the Employee as President
and Chief  Executive  Officer  during the term of this  Agreement  a salary (the
"Base  Salary") at the rate of $116,500 per annum  through July 3, 2001,  at the
rate of $122,325 per annum  through July 3, 2002 and at the rate of $128,442 per
annum through July 3, 2003,  payable in cash not less  frequently  than monthly.
The Board shall review, not less often than annually, the rate of the Employee's
Base Salary, and in its sole discretion may decide to increase his Base Salary.

     3.  Discretionary  Bonuses.  The Employee shall participate in an equitable
manner with all other senior  management  employees of the Bank in discretionary
bonuses  that  the  Board  may  award  from  time to time to the  Bank's  senior
management employees. No other compensation provided for in this Agreement shall
be  deemed  a  substitute  for  the  Employee's  right  to  participate  in such
discretionary bonuses.

     4. (a)  Participation in Retirement,  Medical and Other Plans. The Employee
shall be entitled to  participate  in any plan that the Bank  maintains  for the
benefit of its employees if the plan relates to (i) pension, profit-sharing,  or
other  retirement  benefits,  (ii)  medical  insurance or the  reimbursement  of
medical or dependent care  expenses,  or (iii) other group  benefits,  including
disability and life insurance plans.

                                       1

<PAGE>
                                                                    Exhibit 10.2

     (b)  Employee  Benefits.  The  Employee  shall  participate  in any  fringe
benefits  that are or may  become  available  to the  Bank's  senior  management
employees,  including,  for example: any stock option or incentive  compensation
plans and any other benefits that are commensurate with the responsibilities and
functions to be performed by the Employee under this Agreement.

     (c)  Expenses.   The  Employee  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 the policies of the Bank.

     (d)  Automobile.  The Bank shall  provide the  Employee  with the use of an
automobile, including all related maintenance, repairs and other costs. The Bank
shall also, at its own expense,  provide  comprehensive  insurance  coverage for
such automobile, naming the Employee as a named insured. The Employee shall take
proper care of such  automobile and shall be responsible  for all damage to such
automobile resulting from any misuse or neglect thereof.

     (e) Relocation Expenses. The Bank shall assist the Employee with relocation
expenses,  some or all of  which  may be  taxable  income  to the  Employee,  as
follows:

     (1) Reasonable  expenses  incurred in moving  furniture,  normal  household
goods and personal belongings to Hopkinsville, Kentucky.

     (2) Reasonable  temporary living expenses in  Hopkinsville,  Kentucky while
awaiting  occupancy  of the  Employee's  new  quarters.  Such  temporary  living
quarters  shall  consist  of an  apartment,  hotel or similar  residence.  Hotel
expenses shall be reimbursed for overnight lodging if Bank related.

     5. Term.  The Bank hereby  employs the  Employee,  and the Employee  hereby
accepts such employment under this Agreement,  for the period  commencing on the
date  hereof (the  "Effective  Date") and ending 36 months  thereafter  (or such
earlier  date  as  is  determined   in   accordance   with  Section  9  hereof).
Additionally,  on each annual  anniversary  date from the Effective  Date,  this
Agreement  and the  Employee's  term of  employment  shall  be  extended  for an
additional  one-year period beyond the then effective  expiration date, provided
that the Board  determines in a duly adopted  resolution that the performance of
the  Employee  has met the Board's  requirements  and  standards,  and that this
Agreement  shall be extended.  Prior to each such  anniversary  date,  the Board
shall meet to review the  Employee's  performance  and  determine  whether  this
Agreement should be extended.

     6. Loyalty, Full Time and Attention.

                  (a) During the period of his  employment  hereunder and except
for illness,  reasonable vacation periods, and reasonable leaves of absence, the
Employee shall devote all his full business time, attention,  skill, and efforts
to the faithful performance of his duties

                                       2
<PAGE>
                                                                    Exhibit 10.2

hereunder; provided that, from time to time, the Employee may serve on the board
of  directors  of, and hold any other  offices or  positions  in,  companies  or
organizations,  that will not present any conflict of interest  with the Bank or
any of its subsidiaries or affiliates,  or unfavorably affect the performance of
Employee's duties pursuant to this Agreement, or will not violate any applicable
statute or regulation.  "Full business time" is hereby defined as that amount of
time usually devoted to like companies by similarly situated executive officers.
During the term of his employment  under this Agreement,  the Employee shall not
engage in any business or activity contrary to the business affairs or interests
of the Bank, or be gainfully employed in any other position or job other than as
provided above.

     (b) Nothing contained in this Section 6 shall be deemed to prevent or limit
the Employee'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 or minority
investor, in any business.

     7. Standards. The Employee shall perform his duties under this Agreement in
accordance with such  reasonable  standards as the Board may establish from time
to time.  The Bank will provide the  Employee  with the working  facilities  and
staff customary for similar executive  officers and necessary for him to perform
his duties.

     8. Vacation and Sick Leave. The Employee shall be entitled, without loss of
pay, to absent himself voluntarily from the performance of his duties under this
Agreement  in  accordance  with the terms set forth  below,  all such  voluntary
absences to count as vacation time; provided that:

     (a) The Employee shall be entitled to an annual vacation in accordance with
the  policies  periodically  established  by the  Board  for  senior  management
employees of the Bank.

     (b) The Employee  shall not receive any  additional  compensation  from the
Bank on account of his failure to take a vacation,  and the  Employee  shall not
accumulate  unused  vacation from one fiscal year to the next,  except in either
case to the extent authorized by the Board.

     (c) In addition to the  aforesaid  paid  vacations,  the Employee  shall be
entitled,   without  loss  of  pay,  to  absent  himself  voluntarily  from  the
performance  of his  employment  obligations  with the Bank for such  additional
periods  of time and for such valid and  legitimate  reasons as the Board may in
its discretion approve.  Further, the Board may grant to the Employee a leave or
leaves of  absence,  with or  without  pay,  at such time or times and upon such
terms and conditions as the Board in its discretion may determine.

     (d) In  addition,  the  Employee  shall be entitled to an annual sick leave
benefit as established by the Board.

     9.  Termination  and  Termination  Pay.  Subject to Section 11 hereof,  the
Employee's   employment   hereunder  may  be  terminated   under  the  following
circumstances:

                                       3
<PAGE>
                                                                    Exhibit 10.2

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

                  (b)   Disability.   The  Bank  may  terminate  the  Employee's
employment after having  established,  through a determination by the Board, the
Employee's  Disability.  For purposes of this  Agreement,  "Disability"  means a
physical  or  mental   infirmity   that  impairs  the   Employee's   ability  to
substantially  perform his duties under this  Agreement  and that results in the
Employee  becoming eligible for long-term  disability  benefits under the Bank's
long-term  disability  plan (or,  if the Bank has no such plan in  effect,  that
impairs the Employee's  ability to  substantially  perform his duties under this
Agreement for a period of 180 consecutive  days). The Employee shall be entitled
to the compensation  and benefits  provided for under this Agreement for (i) any
period during the term of this Agreement and prior to the  establishment  of the
Employee's  Disability  during  which the  Employee is unable to work due to the
physical or mental infirmity,  or (ii) any period of Disability that is prior to
the Employee's termination of employment pursuant to this Section 9(b); provided
that any benefits paid  pursuant to the Bank's  long-term  disability  plan will
continue as provided in such plan.

                  (c) For Just Cause.  The Board may,  by written  notice to the
Employee,  immediately terminate his employment at any time, for Just Cause. The
Employee shall have no right to receive  compensation  or other benefits for any
period after termination for Just Cause. Termination for "Just Cause" shall mean
termination  because  of, in the good  faith  determination  of the  Board,  the
Employee's personal  dishonesty,  incompetence,  willful  misconduct,  breach of
fiduciary duty involving personal profit,  intentional failure to perform stated
duties,  willful  violation of any law, rule or  regulation  (other than traffic
violations or similar  offenses) or final  cease-and-desist  order,  or material
breach of any provision of this Agreement.  Notwithstanding  the foregoing,  the
Employee shall not be deemed to have been terminated for Just Cause unless there
shall have been delivered to the Employee a copy of a resolution duly adopted by
the affirmative vote of not less than a majority of the entire membership of the
Board  (excluding  the  Employee  if a member of the  Board) at a meeting of the
Board called and held for the purpose (after  reasonable  notice to the Employee
and an opportunity for the Employee to be heard before the Board),  finding that
in the good faith  opinion of the Board the  Employee  was guilty of conduct set
forth above in the second  sentence of this  Subsection  (c) and  specifying the
particulars thereof in detail.

                  (d) Without Just Cause.  Subject to the  provisions of Section
11  hereof,  the Board  may,  by  written  notice to the  Employee,  immediately
terminate  his  employment  at any time for any reason;  provided  that, if such
termination  is for any reason other than pursuant to Sections  9(a), (b) or (c)
above, the Employee shall be entitled to receive the following  compensation and
benefits:  (i) the salary provided  pursuant to Section 2 hereof, up to the date
of  expiration of the term  (including  any renewal term then in effect) of this
Agreement  (the  "Termination  Date")  and  (ii)  the  cost to the  Employee  of
obtaining all health, life,  disability and other benefits (excluding any bonus,
stock option or other  compensation  benefits) in which

                                       4
<PAGE>
                                                                    Exhibit 10.2

the Employee  would have been eligible to  participate  through the  Termination
Date based upon the benefit  levels  substantially  equal to those that the Bank
provided for the Employee at the date of  termination  of  employment.  Said sum
shall be paid,  at the option of the Employee,  either (1) in periodic  payments
over the remaining term of this Agreement,  as if the Employee's  employment had
not terminated, or (2) in one lump sum within 10 days of such termination.

                  (e)      Termination or Suspension Under Federal Law.

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

                           (2)     If the Bank is  in  default  (as  defined  in
Section 3(x)(1) of FDIA),  all obligations  under this Agreement shall terminate
as of the date of default;  however, this Paragraph 9(e)(2) shall not affect the
vested rights of the parties.

                           (3)      All obligations  under  this Agreement shall
terminate, except to the extent that continuation of this Agreement is necessary
for the  continued  operation of the Bank:  (A) by the Director of the Office of
Thrift Supervision ("OTS"), or his or her designee, at the time that the Federal
Deposit Insurance  Corporation enters into an agreement to provide assistance to
or on behalf of the Bank under the  authority  contained in Section 13(c) of the
FDIA;  or (B) by the  Director of the OTS, or his or her  designee,  at the time
that the  Director of the OTS, or his or her  designee,  approves a  supervisory
merger to resolve  problems related to operation of the Bank or when the Bank is
determined  by the Director of the OTS to be in an unsafe or unsound  condition.
Such action shall not affect any vested rights of the parties.

                           (4)      If a notice served under Section  8(e)(3) or
(g)(1)  of  the  FDIA  (12   U.S.C.ss.1818(e)(3)   or  (g)(1))  suspends  and/or
temporarily  prohibits  the Employee  from  participating  in the conduct of the
Bank's affairs,  the Bank's  obligations under this Agreement shall be suspended
as of the date of such service unless stayed by appropriate proceedings.  If the
charges in the notice are dismissed,  the Bank may in its discretion (A) pay the
Employee all or part of the compensation withheld while its contract obligations
were  suspended,  and (B) reinstate (in whole or in part) any of its obligations
that were suspended.

                           (5)      If any of  the provisions of this  Paragraph
9(e) conflict with 12 C.F.R.ss. 563.39(b), the latter shall prevail.

                  (f)  Voluntary   Termination  by  Employee.   Subject  to  the
provisions  of  Section  11  hereof,  the  Employee  may  voluntarily  terminate
employment  with the Bank  during the term of this  Agreement,  upon at least 60
days'  prior  written  notice to the  Board,  in which case the  Employee  shall
receive only his compensation, vested rights and employee benefits accrued up to
the date of his termination.

                                       5
<PAGE>
                                                                    Exhibit 10.2

                  (g)  Limitation by Section 18(k) of the FDIA.  Notwithstanding
anything herein to the contrary,  any payments made to the Employee  pursuant to
this  Agreement,  or  otherwise,  are  subject  to and  conditioned  upon  their
compliance  with  Section  18(k) of the FDIA (12  U.S.C.  ss.  1828(k))  and any
regulations promulgated thereunder.

     10. No  Mitigation.  The  Employee  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 the  Employee  in  any  subsequent
employment.

     11. Change in Control.

                  (a) Notwithstanding  any provision herein to the contrary,  if
the  Employee's  employment  under this  Agreement  is  terminated  by the Bank,
without the  Employee's  prior  written  consent and for a reason other than for
Just Cause, death or disability in connection with or 12 months after any change
in control of the Bank or which has not been approved in advance by a two-thirds
vote of the full Board of  Directors  of each of the Bank and the  Company,  the
Employee shall be paid an amount equal to two times the  Employee's  Base Salary
as of the date of termination.  Said sum shall be paid in one lump sum within 10
days of such  termination.  The term "change in control" shall mean (1) a change
in the  ownership,  holding  or power to vote  more  than 25% of the  Bank's  or
Company's  voting  stock,  (2) a change in the  ownership or  possession  of the
ability to  control  the  election  of a  majority  of the  Bank's or  Company's
directors,  or (3) a change in the  ownership  or  possession  of the ability to
exercise a controlling  influence over the management or policies of the Bank or
the Company by any person or by persons acting as a "group"  (within the meaning
of Section  13(d) of the  Securities  Exchange Act of 1934) (except that, in the
case of (1),  (2)  and (3)  hereof,  ownership  or  control  of the  Bank or its
directors by the Company  itself shall not  constitute a change in control.  The
term "person"  means an individual  other than the Employee,  or a  corporation,
partnership,   trust,   association,   joint  venture,  pool,  syndicate,   sole
proprietorship,  unincorporated  organization  or any other  form of entity  not
specifically listed herein.

                  (b) The sum of the amount  payable  under Section 11(a) hereof
and any other  "parachute  payment" as defined under  Section  280G(b)(2) of the
Internal Revenue Code of 1986, as amended from time to time (the "Code"),  shall
not  exceed  2.99  times the  Employee's  "base  amount"  as  defined in Section
280G(b)(3) of the Code.

                  (c)  Notwithstanding  the  foregoing,  but only to the  extent
required  under  federal  banking law, the amount  payable  under  Section 11(a)
hereof  shall  be  reduced  to the  extent  that on the  date of the  Employee's
termination  of  employment,  the amount payable under Section 11(a) exceeds the
limitation  on severance  benefits set forth in  Regulatory  Bulletin 27a of the
OTS, as in effect on such termination date.

                  (d) In the event that any dispute  arises between the Employee
and the Bank as to the terms or interpretation of this Agreement, including this
Section  11,  whether

                                       6
<PAGE>
                                                                    Exhibit 10.2

instituted by formal legal  proceedings  or otherwise,  including an action that
Employee  takes to enforce the terms of this Section 11 or to defend against any
action taken by the Bank,  the Employee  shall be  reimbursed  for all costs and
expenses,  including  reasonable  attorneys' fees, arising from such disputes or
proceedings,  provided that the Employee shall have obtained a final judgment by
a court of competent jurisdiction in his favor. Such reimbursement shall be paid
within 10 days of Employee's providing the Bank with written evidence, which may
be in the form,  among others,  of a canceled check or receipt,  of any costs or
expenses incurred by the Employee.

     12. Successors and Assigns.

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

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

     13.  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.

     14.  Applicable  Law.  This  Agreement  shall be governed in all  respects,
whether as to its validity, construction, capacity, performance or otherwise, by
the laws of the Commonwealth of Kentucky,  except to the extent that Federal law
shall be deemed to apply.

     15.  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

     16. Entire  Agreement.  This Agreement,  together with any understanding or
modifications  thereof as agreed to in writing by the parties,  shall constitute
the entire agreement between the parties hereto.

                                       7
<PAGE>
                                                                    Exhibit 10.2

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and
year first above written.

ATTEST:                                HOPKINSVILLE FEDERAL SAVINGS BANK

________________________               By:_____________________________________
Secretary                                    WD Kelley, Chairman of the Board

WITNESS:

------------------------                  -------------------------------------
                                            John E. Peck

                                       8

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