Exhibit 10 (7)

                       UNFUNDED DEFERRED COMPENSATION PLAN
                              FOR THE DIRECTORS OF
                          LINCOLN FEDERAL SAVINGS BANK
               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1999)

1.       This Plan shall be unfunded so that the Lincoln  Federal  Savings  Bank
         (hereinafter  known as the "Bank") is under a mere  contractual duty to
         make payments when due under the Plan.  The promise to pay shall not be
         represented  by notes and shall not be secured by a pledge of assets or
         in any other way.  This Plan and action taken  pursuant to it shall not
         be deemed or construed  to establish a trust or fiduciary  relationship
         of any kind  between  or among the  Bank,  any  Director,  or any other
         person. Neither a Director nor any beneficiary of a Director shall have
         the power to transfer,  assign,  anticipate,  or otherwise  encumber in
         advance any of the payments  that may become due  hereunder,  nor shall
         any  of  such  payments  be  subject  to  attachment,  garnishment,  or
         execution  or be  transferable  by  operation  of law in the  event  of
         bankruptcy, insolvency, or otherwise.

2.       Each  Director  may  elect  to have  any  portion  or all of his or her
         calendar  year fees  deferred  by filing a  written  election  with the
         Secretary  of the Bank prior to January  1st of the  calendar  year for
         which the deferral is made. The election may not be modified or revoked
         after the beginning of such calendar year. Elections may be modified or
         revoked as of the close of any calendar year, but any such modification
         or  revocation  shall  be  effective  only  as to fees  for  subsequent
         calendar  years.  The  election  shall  be  made  on an  election  form
         ("Election  Form") in the form  attached  hereto as  Exhibit A, and the
         election  shall continue from time to time until revoked or modified by
         the  Director.  A person who becomes a Director  after January 1st of a
         calendar  year may elect to have any  portion or all of his or her fees
         for such calendar  year deferred by filing a written  election with the
         Secretary  of the  Bank  within  30 days  after  becoming  a  Director;
         provided,  however,  that such election will only cover fees paid after
         the date on which the election is received by the Bank. As used herein,
         "fees"  means any  retainer  fees or meeting  fees which an  individual
         receives or is entitled to receive as a Director,  including  fees that
         accrue on account of service on any  committee  of  Directors  and fees
         that are payable for services over and above those normally expected of
         Directors and performed at the request of the Chairman of the Bank.

3.       A Director's  election to defer fees shall  continue from calendar year
         to calendar year unless the Director revokes or modifies it in writing.
         No  amount  deferred  shall  be paid to a  Director  prior  to the time
         specified in the Director's applicable election form.

4.       The  Bank  shall  maintain  a  memorandum  account  for  each  Director
         participating  in the Plan  with  respect  to  deferred  fees and shall
         credit such account quarterly with interest. The rate of interest for a
         quarter  will be the  highest,  rate offered by the Bank to the general
         public for any period of seven  consecutive  calendar  days during such
         quarter on new insured savings accounts,  regardless of term.  Interest
         will be  compounded  quarterly  and  credited to the accounts as of the
         last day of each  quarter.  The daily  balance  method  will be used to
         calculate interest on the accounts. Interest will be based on an actual
         365 day basis.

5.       Amounts which are deferred  under the Plan,  together with  accumulated
         interest,  shall be paid in accordance  with the Director's  applicable
         election form and the  requirements set forth in paragraph 6; provided,
         however, that payment must commence or be made not later than the first
         day of the first  calendar  year which  begins on or after the later of
         (i) the date on which the Director ceases to be an officer, director or
         employee of the Bank or (ii) the date on which the Director attains the
         age specified by the retirement  income test of the Social Security Act
         [Section 203(f))3),  as amended, or the corresponding provision then in
         effect]; provided further, that payment may commence or be made only as
         of the first day a calendar year and  installment  payments may be made
         only as of the first day of a calendar  month.  Amounts  which are held
         pending  distribution  shall continue to accrue  interest at the stated
         interest  rate.  In the case of  amounts  payable  in monthly or annual
         installments,  each installment  shall be equal to the aggregate amount
         in the  Director's  account  as of the end of the  month  prior  to the
         installment  payment date,  multiplied by a fraction whose numerator is
         one (1) and whose denominator is the number of installments  (including
         the installment that becomes payable as of such date) remaining.

6.       The  manner  and date in  which a  Director's  deferred  fees are to be
         distributed  to that  Director  shall be designated by that Director in
         the Election Form executed by that Director.  The distribution  options
         available to a Director shall include:

         (i)      lump sum, or

         (ii)     monthly or annual  installments over a period between 5 and 10
                  years

         Subject to paragraph 5, the  Director  shall  designate in the Election
         Form  the  year  in  which   distribution  is  to  be  made  or  begin.
         Notwithstanding  anything  contained in this paragraph to the contrary,
         the following special rules shall govern  distributions made under this
         Plan;

         (iii)    A Director  shall be  permitted  to change the manner in which
                  the deferred  fees are to be  distributed  by completing a new
                  Election  Form which is delivered to the Bank at least two (2)
                  calendar  years before the  calendar  year during which occurs
                  the  earlier  of the date on which the  person  ceases to be a
                  Director or the date on which  distribution  of the Director's
                  deferred  fees  would  have  been  made but for the  change in
                  election;  provided, however, that any completed Election Form
                  which was not received  prior to the end of the calendar  year
                  described in this subparagraph (iii) shall be null and void.

         (iv)     If a Director  fails to  complete an  Election  Form,  amounts
                  credited  to  his  or  her  account  shall   automatically  be
                  distributed in a single lump sum as soon as practicable  after
                  the  January  1  immediately  following  the date on which the
                  Director ceases to be a Director.

7.       If any Director or former  Director  (excluding  any present  Director)
         becomes a director,  proprietor,  officer,  partner, or employee of, or
         otherwise becomes  affiliated with, any bank or savings  institution in
         the  State of  Indiana  that  competes  with the  Bank,  or if a former
         Director  shall  refuse a  reasonable  request  of the Bank to  perform
         consulting  services  for it after he or she  retires  from the  Bank's
         Board of Directors, any deferred fees and interest remaining payable to
         such person under the Plan shall be payable  immediately  at the option
         of the Bank.

8.       Each  Director may file with the Bank a written  designation  of one or
         more persons as the  beneficiaries who shall be entitled to receive any
         amounts  remaining  payable under the Plan after his or her death.  The
         election  shall be made in the form  attached  hereto as  Exhibit  B. A
         Director from time to time may revoke or change his or her  beneficiary
         designation  without the consent of any prior  beneficiary  by filing a
         new designation  with the Bank. The last such  designation  received by
         the Bank shall be controlling;  provided, however, that no designation,
         or change or revocation thereof,  shall be effective unless received by
         the Bank prior to the Director's death. If any amount payable under the
         Plan at or  after  the  death  of the  Director  cannot  be paid to the
         Director's designated  beneficiary,  either because the Director failed
         validly  to  designate  a  beneficiary   or  because  the   beneficiary
         designated by the Director is not living at the time the amount becomes
         payable,  the legal  representative  of such  deceased  Director  shall
         receive  the  payments.  A  Director  may make a one time and method of
         payment  election  regarding  amounts that become payable during his or
         her lifetime and  different  time and method of payment  election  with
         respect to amounts  becoming  payable after his or her death.  Unless a
         Director elects otherwise, all amounts becoming payable with respect to
         a Director  after his or her death  shall be paid in one lump sum as of
         the January 1 coinciding with or next following such death.

9.       Each person  receiving a payment  under this Plan shall be  responsible
         for the  Federal,  state  and local  income  tax  consequences  of such
         payment.  Where  applicable,  the Bank shall  withhold  taxes from each
         distribution.

10.      This Plan shall not be deemed to  constitute  a contract of  employment
         between the parties  hereto,  nor shall any provisions  hereof restrict
         the right of the Bank to discharge the recipient, or restrict the right
         of a  recipient  to  terminate  his or her  employment  or  status as a
         Director.

11.      The  President  of the Bank  shall be  empowered  to place  the Plan in
         effect  under  such  additional  conditions  and  terms as shall not be
         inconsistent  with the terms stated  above and as shall not  jeopardize
         the  status of the Plan as a  deferred  compensation  plan  allowing  a
         Director  of the Bank not to include  the  deferred  amount,  including
         interest,  in gross income  under the Federal  income tax law until the
         taxable year or years such amounts are actually paid.

12.      This Plan supersedes any earlier  versions of the Plan and shall govern
         undistributed deferrals made on or before its January 1, 1999 effective
         date.


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                                    EXHIBIT A

                          LINCOLN FEDERAL SAVINGS BANK
                           DIRECTORS DEFERRED FEE PLAN

                        Election to Defer Receipt of Fees

         Pursuant to the Unfunded  Deferred  Compensation Plan for the Directors
of Lincoln  Federal Savings Bank (the "Plan"),  the undersigned  Director hereby
elects  to  defer  receipt  of the  following  compensation  to be  earned  as a
Director:

         My election shall take effect as follows:

         [ ]      beginning January 1 of the year following this election.

         [ ]      beginning  immediately as to all fees not yet earned. [Note:
                  This may be  elected  only if the  Plan  did not  exist or the
                  Director  was not a Director  on January I of the Year of this
                  election.)

         Distributions  from the Plan shall be made  according to the  following
method:

         [ ]      lump sum payment.

         [ ]      monthly  installments  (number of installments  not to be less
                  than 60 nor exceed 120).

         [ ]      annual  installments  (number of  installments  not to be less
                  than 5 nor exceed 10).

         Distributions  from the Plan to me shall be made or  commence as of the
January 1 coinciding with or next following:

         [ ]      the  date on  which  I  cease  to be a  director,  officer  or
                  employee of the Bank.

         [ ]      the date on which I attain my Social Security retirement age.

         [ ]      the earlier of the foregoing dates.



<PAGE>



         [ ]      the later of such foregoing dates.

         Distributions  from the Plan after my death shall be made  according to
the following method and at the following times:

         [ ]      lump sum payment

         [ ]      monthly installments commencing as of the January 1 coinciding
                  with or next following such death (number of installments  not
                  to exceed 120). [Note: If installment payments commence before
                  the Director's death, Payment to the Director's beneficiary or
                  legal  representative  will commence as of the next date after
                  such death as of which an installment  would have been payable
                  to the Director  but for such death,  and the number of months
                  specified   will  be   reduced   by  the   number  of  monthly
                  installments  that  become  payable  before such death and the
                  monthly  equivalent of the number of annual  installments that
                  became payable before such death.)

         [ ]      annual installments  commencing as of the January 1 coinciding
                  with or next following my death (number of installments not to
                  exceed 10). [Note: If installment payments commence before the
                  Director's  death,  the  number  of  years  specified  will be
                  reduced  by the  number of  annual  installments  that  became
                  payable  before  such death and the annual  equivalent  of the
                  number of monthly installments that became payable before such
                  death.)

DATED:

                                               Director's Signature

         Lincoln  Federal  Savings  Bank  hereby  acknowledges  receipt  of  the
foregoing Election to Defer Receipt of Fees.

                                           LINCOLN FEDERAL SAVINGS BANK



DATED:                                      By:
      ---------------------


<PAGE>

                                    EXHIBIT B
                          LINCOLN FEDERAL SAVINGS BANK
                           DIRECTORS DEFERRED FEE PLAN
                           DESIGNATION OF BENEFICIARY

         In accordance  with the provisions of the Lincoln  Federal Savings Bank
Directors  Deferred Fee Plan (the "Plan"),  and subject to the conditions on the
next page hereof,  the undersigned  Director hereby  designates the following as
the beneficiary or  beneficiaries  of any amounts payable under the Plan upon or
after his or her death, and hereby revokes all prior  beneficiary  designations,
if any, made by him or her:

PRIMARY BENEFICIARIES:          [List name, relationship to Participant,
----------------------           mailing address and
                                (if available) Social Security Number of each]









CONTINGENT BENEFICIARIES:        [List name, relationship to Participant,
-------------------------        mailing address and(if available) Social
                                 Security Number of each]











DATE:

                                         Director's Signature

         Signature of Witness
(Someone Other Than Director)




         Address of Witness

                                   CONDITIONS

         1. Unless otherwise provided on the preceding page of this designation,
each  payment to be made  pursuant  to this  designation  shall be paid in equal
shares to those primary beneficiaries who survive the Director and are living at
the time such payment  becomes due or, if no primary  beneficiaries  survive the
Director and are then living, in equal shares to those contingent  beneficiaries
who survive the Director and are then living.

         2. Unless otherwise provided on the preceding page of this designation,
this  designation  shall  automatically be revoked and be of no further force or
effect  in  the  event  of  either  of  the  following  contingencies  occurring
subsequent to the date hereof.

                  (a)      The marriage of the Director,  unless the marriage is
                           to the sole primary  beneficiary  designated  by this
                           designation; or

                  (b)      The  termination  of  the  Director's  marriage,   by
                           dissolution,  divorce  or  annulment,  unless (i) the
                           former spouse is not  designated by this  designation
                           as a primary  beneficiary  or contingent  beneficiary
                           and (ii) no trust of which  the  former  spouse  is a
                           beneficiary  is designated by this  designation  as a
                           primary beneficiary or contingent beneficiary.

         3. The right to change  this  designation  without  the  consent of any
primary or contingent beneficiary is reserved.



Lincoln Federal Savings Bank hereby acknowledges  receipt of this Designation of
Beneficiary.

                                            LINCOLN FEDERAL SAVINGS BANK



DATE:                                       By:
     -------------------------------