This  Agreement,  made and dated as of July 1,  2001,  by and  between

Union  Federal  Savings  and  Loan  Association,  a  federal  savings  and  loan

association ("Employer"),  and Alan L. Grimble, a resident of Montgomery County,

Indiana ("Employee").





                               W I T N E S S E T H





          WHEREAS,  Employee  is employed  by  Employer  as its  Executive  Vice

President and has made valuable contributions to the profitability and financial

strength of Employer;



          WHEREAS,  Employer  desires to encourage  Employee to continue to make

valuable  contributions  to Employer's  business  operations  and not to seek or

accept employment elsewhere;



          WHEREAS,   Employee   desires  to  be  assured  of  a  secure  minimum

compensation from Employer for his services over a defined term;



          WHEREAS, Employer desires to assure the continued services of Employee

on  behalf  of  Employer  on  an  objective  and  impartial  basis  and  without

distraction  or conflict of interest in the event of an attempt by any person to

obtain control of Employer or Union Community  Bancorp (the "Holding  Company"),

the Indiana  corporation  which owns all of the issued and  outstanding  capital

stock of Employer;



          WHEREAS,  Employer  recognizes  that when faced with a proposal  for a

change of control of  Employer  or the  Holding  Company,  Employee  will have a

significant  role in helping  the Boards of  Directors  assess the  options  and

advising the Boards of  Directors on what is in the best  interests of Employer,

the Holding Company,  and its shareholders,  and it is necessary for Employee to

be able to provide  this  advice and counsel  without  being  influenced  by the

uncertainties of his own situation;



          WHEREAS,  Employer desires to provide fair and reasonable  benefits to

Employee on the terms and subject to the conditions set forth in this Agreement;



          WHEREAS,  Employer desires  reasonable  protection of its confidential

business  and  customer  information  which it has  developed  over the years at

substantial  expense and assurance  that Employee will not compete with Employer

for a  reasonable  period  of time  after  termination  of his  employment  with

Employer, except as otherwise provided herein.



          NOW,  THEREFORE,  in  consideration  of  these  premises,  the  mutual

covenants and  undertakings  herein  contained  and the continued  employment of

Employee by Employer as its  Executive  Vice  President,  Employer and Employee,

each intending to be legally bound, covenant and agree as follows:















          1. Upon the  terms and  subject  to the  conditions  set forth in this

Agreement, Employer employs Employee as Employer's Executive Vice President, and

Employee accepts such employment.



          2. Employee agrees to serve as Employer's Executive Vice President and

to perform  such duties in that office as may  reasonably  be assigned to him by

Employer's  Board of  Directors;  provided,  however,  that such duties shall be

performed   in  or  from  the   offices  of   Employer   currently   located  at

Crawfordsville,  Indiana, and shall be of the same character as those previously

performed by Employee and generally associated with the office held by Employee.

Employee  shall not be required to be absent from the location of the  principal

executive offices of Employer on travel status or otherwise more than 45 days in

any calendar year.  Employer shall not, without the written consent of Employee,

relocate or transfer  Employee to a location more than 30 miles from  Employer's

primary  office.  Employee  shall render  services to Employer as Executive Vice

President in substantially  the same manner and to substantially the same extent

as Employee  rendered  his services to Employer  before the date  hereof.  While

employed by Employer,  Employee shall devote substantially all his business time

and efforts to Employer's  business during regular  business hours and shall not

engage in any other related business.



          3.  The  term of this  Agreement  shall  begin  on July 1,  2001  (the

"Effective  Date") and shall end on the date which is three years following such

date, subject to earlier termination as provided herein.  Beginning on the first

anniversary of the Effective Date, and on each anniversary thereafter,  the term

of this Agreement  shall be extended for a period of one year in addition to the

then-remaining  term  provided  that (1)  Employer  has not given  notice to the

Employee in writing at least 90 days prior to such  anniversary that the term of

this Agreement shall not be extended further, and (2) prior to such anniversary,

the Board of Directors of Employer explicitly reviews and approves the extension

(such term, including any extension thereof,  shall herein be referred to as the

"Term").



          4. Employee  shall  receive an annual salary of ______________________

("Base Compensation") payable at regular intervals in accordance with Employer's

normal payroll  practices now or hereafter in effect.  Employer may consider and

declare from time to time  increases in the salary it pays  Employee and thereby

increases in his Base Compensation.  Prior to a Change of Control,  Employer may

also declare  decreases in the salary it pays Employee if the operating  results

of Employer  are  significantly  less  favorable  than those for the fiscal year

ending December 31, 2000, and Employer makes similar  decreases in the salary it

pays to  other  executive  officers  of  Employer.  After a Change  in  Control,

Employer shall consider and declare  salary  increases  based upon the following

standards:



          Inflation;

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