<PAGE>
 
   Exhibit No. 10(v) MAF Bancorp, Inc. 1990 Incentive Stock Option Plan, as
                                   amended.
<PAGE>
 
                               MAF BANCORP, INC.

                        1990 INCENTIVE STOCK OPTION PLAN

  1. PURPOSE.  The purpose of the MAF Bancorp, Inc. (the "Holding Company") 1990
Incentive Stock Option Plan (the "Plan") is to advance the interests of the
Holding Company and its shareholders by providing employees of the Holding
Company and its affiliates, including Mid America Federal Savings Bank (the
"Bank"), upon whose judgment, initiative and efforts the successful conduct of
the business of the Holding Company and its affiliates largely depends, with an
additional incentive to perform in a superior manner as well as to attract
people of experience and ability.

  2.  DEFINITIONS.

  (a) "Board of Directors" means the Board of Directors of the Holding Company.

  (b) "Affiliate" means (i) a member of a controlled group of corporations of
which the Holding Company is a member or (ii) an unincorporated trade or
business which is under common control with the Holding Company as determined in
accordance with Section 414(c) of the Internal Revenue Code (the "Code") and the
regulations issued thereunder.  For purposes hereof, a "controlled group of
corporations" shall mean a controlled group of corporations as defined in
Section 1563(a) of the Code determined without regard to Sections 1563(a)(4) and
(e)(3)(C).

  (c) "Award" means an Award of Non-statutory Stock Options, Incentive Stock
Options, and/or Limited Rights granted under the provisions of the Plan.

  (d) "Committee" means the Administrative/Compensation  Committee of the Board
of Directors of the Bank, consisting solely of two or more non-employee members
of the Board of Directors, all of whom are "disinterested directors" as such
term is defined under Rule 16(b)-3(b)(3)(i) under the Securities Exchange Act of
1934, as amended, (the "Exchange Act"), as promulgated by the Securities and
Exchange Commission ("SEC").

  (e) "Plan Year or Years" means a calendar year or years commencing on or after
January 19, 1990.

  (f) "Date of Grant" means the actual date on which an Award is granted by the
Committee.

  (g) "Common Stock" means the Common Stock of the Holding Company, par value,
$.01 per share.

  (h) "Fair Market Value" means, when used in connection with the Common Stock
on a certain date, the average of the reported closing bid and ask prices of the
Common Stock as reported by the Nasdaq National Market (as published by the Wall
Street Journal, if published) on such date or if the Common Stock was not traded
on such date, on the next preceding day on which the Common Stock was traded
thereon or the last previous date on which a sale is reported.

  (i) "Limited Right" means the right to receive an amount of cash based upon
the terms set forth in section 9.

                                      A-1
<PAGE>
 
  (j) "Disability" means the permanent and total inability by reason of mental
or physical infirmity, or both, of an employee to perform the work customarily
assigned to him.  Additionally, a medical doctor selected or approved by the
Board of Directors must advise the Committee that it is either not possible to
determine when such Disability will terminate or that it appears probable that
such Disability will be permanent during the remainder of said participant's
lifetime.

  (k) "Termination for Cause" means the termination upon an intentional failure
to perform stated duties, breach of a fiduciary duty involving personal
dishonesty, which results in a material loss to the Holding Company or one of
its affiliates or willful violation of any law, rule or regulation (other than
traffic violations or similar offenses) or final cease-and-desist order which
results in material loss to the Holding Company or one of its affiliates.

  (l) "Participant" means an employee of the Holding Company or its affiliates
chosen by the Committee to participate in the Plan.

  (m) "Change in Control" of the Bank or the Holding Company means a Change in
Control of a nature that: (i) would be required to be reported in response to
Item 1 of the current report on Form 8-K, as in effect on the date hereof,
pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 (the
"Exchange Act"); or (ii) results in a Change in Control of the Bank or the
Holding Company within the meaning of the Home Owners Loan Act of 1933, as
amended, and the Rules and Regulations promulgated by the Office of Thrift
Supervision (or its predecessor agency), as in effect on the date hereof,
including Section 574 of such regulations; or (iii) without limitation such a
Change in Control shall be deemed to have occurred at such time as (a) any
"person" (as the term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities or makes an offer to
purchase securities of the Bank or the Holding Company representing 20% or more
of the Bank's or the Holding Company's outstanding securities ordinarily having
the right to vote at the election of directors except for any securities of the
Bank purchased by the Holding Company in connection with the conversion of the
Bank to the stock form and any securities purchased by the Bank's employee stock
ownership plan and trust; or (b) individuals who constitute the Holding
Company's or the Bank's Board of Directors on the date hereof (the "Incumbent
Board") cease for any reason to constitute at least a majority thereof, provided
that any person becoming a director subsequent to the date hereof whose election
was approved by a vote of at least three-quarters of the directors comprising
the Incumbent Board, or whose nomination for election by the shareholders was
approved by the Nominating Committee serving under an Incumbent Board, shall be,
for purposes of this clause (b), considered as though he were a member of the
Incumbent Board; or (c) a plan of reorganization, merger, consolidation, sale of
all or substantially all the assets of the Bank or the Holding Company or
similar transaction occurs; or (d) a proxy statement shall be distributed
soliciting proxies from stockholders of the Holding Company, by someone other
than the current management of the Holding Company, seeking stockholder approval
of a plan of reorganization, merger or consolidation of the Holding Company or
Bank or similar transaction with one or more corporations as a result of which
the outstanding shares of the class of securities then subject to such plan or
transaction are exchanged for or converted into cash or property or securities
not issued by the Bank or the Holding Company; or (e) a tender offer is made for
20% or more of the outstanding securities of the Bank or the Holding Company.

  However, notwithstanding anything contained in this section to the contrary, a
Change in Control shall not be deemed to have occurred as a result of an event
described in (i), (ii) or (iii) (a), (c) or (e) above which resulted from an
acquisition or proposed acquisition of stock of the Holding Company by a person,
as defined in the OTS' Acquisition of Control Regulations (12 C.F.R. (S) 574)
(the "Control 
<PAGE>
 
Regulations"), who was an executive officer of the Holding Company on January
19, 1990 and who has continued to serve as an executive officer of the Holding
Company as of the date of the event described in (i), (ii) or (iii) (a), (c) or
(e) above (an "incumbent officer"). In the event a group of individuals acting
in concert satisfies the definition of "person" under the Control Regulations,
the requirements of the preceding sentence shall be satisfied and thus a change
in control shall not be deemed to have occurred if at least one individual in
the group is an incumbent officer.

  (n) "Normal Retirement" means retirement at the normal or early retirement
date as set forth in any tax qualified plan of the Bank.

  3. ADMINISTRATION.  The Plan shall be administered by the
Administrative/Compensation Committee of the Board of Directors of the Bank. The
Committee is authorized, subject to the provisions of the Plan, to establish
such rules and regulations as it sees necessary for the proper administration of
the Plan and to make whatever determinations and interpretations in connection
with the Plan it sees as necessary or advisable. All determinations and
interpretations made by the Committee shall be binding and conclusive on all
Participants in the Plan and on their legal representatives and beneficiaries.

  4. TYPES OF AWARDS.  Awards under the Plan may be granted in any one or a
combination of:

     (a)  Incentive Stock Options;

     (b)  Non-statutory Stock Options; and

     (c)  Limited Rights

as defined below in paragraphs 7 through 9 of the Plan.

  5. STOCK SUBJECT TO THE PLAN.  Subject to adjustment as provided in Section
13, the maximum number of shares reserved for issuance under the Plan is 723,462
shares of Common Stock of the Holding Company, par value $.01 per share (as
adjusted for stock splits and stock dividends in 1993 and 1995, respectively).
These shares of Common Stock may be either authorized but unissued shares or
shares previously issued and reacquired by the Holding Company.  To the extent
that options or rights granted under the Plan are exercised, the shares covered
will be unavailable for future grants under the Plan; to the extent that options
together with any related rights granted under the Plan terminate, expire or are
canceled without having been exercised or, in the case of Limited Rights
exercised for cash, new Awards may be made with respect to these shares.

  6. ELIGIBILITY.  Officers and other employees of the Holding Company or its
affiliates shall be eligible to receive Incentive Stock Options, Non-statutory
Stock Options and/or Limited Rights under the Plan. Directors who are not
employees or officers of the Holding Company or its affiliates shall not be
eligible to receive Awards under the Plan.

  7. NON-STATUTORY STOCK OPTIONS.

  7.1  Grant of Non-statutory Stock Options.  The Committee may, from time to
time, grant Non-statutory Stock Options to eligible employees.  Non-statutory
Stock Options granted under this Plan are subject to the following terms and
conditions:

                                      A-3
<PAGE>
 
     (a) Price.  The purchase price per share of Common Stock deliverable upon
  the exercise of each Non-statutory Stock Option shall not be less than 100% of
  the Fair Market Value of the Holding Company's Common Stock on the date the
  option is granted.  Shares may be purchased only upon full payment of the
  purchase price.  Payment of the purchase price may be made, in whole or in
  part, in cash or through the surrender of shares of the Common Stock of the
  Holding Company at the Fair Market Value of such shares determined in the
  manner described in Section 2(h).

     (b) Terms of Options.  The term during which each Non-statutory Stock
  Option may be exercised shall be determined by the Committee, but in no event
  shall a Non-statutory Stock Option be exercisable in whole or in part more
  than 10 years and one day from the Date of Grant.  The Committee shall
  determine the date on which each Non-statutory Stock Option shall become
  exercisable in installments.  The shares comprising each installment may be
  purchased in whole or in part at any time after such installment becomes
  purchasable.  The Committee may, in its sole discretion, accelerate the time
  at which any Non-statutory Stock Option may be exercised in whole or in part.
  Notwithstanding the above, in the event of a Change in Control of the Bank or
  the Holding Company, all Non-statutory Stock Options shall become immediately
  exercisable.

     (c) Termination of Employment.  Upon the termination of an employee's
  service for any reason other than Disability, Normal Retirement, death or
  Termination for Cause, his Non-statutory Stock Options shall be exercisable
  only as to those shares which were immediately purchasable by him at the date
  of termination and only for a period of three months following termination.
  In the event of Termination for Cause, all rights under his Non-statutory
  Stock Options shall expire upon the termination.  In the event of the death,
  Disability or Normal Retirement of any employee, all Non-statutory Stock
  Options held by the employee, whether or not exercisable at such time, shall
  be exercisable by the employee or his legal representatives or beneficiaries
  for three years following the date of his death, Normal Retirement or
  cessation of employment due to Disability, provided that in no event shall the
  period extend beyond the expiration of the Non-statutory Stock Option term.

  8. INCENTIVE STOCK OPTIONS.

  8.1  Grant of Incentive Stock Options.  The Committee may, from time to time,
grant Incentive Stock Options to eligible employees.  Incentive Stock Options
granted pursuant to the Plan shall be subject to the following terms and
conditions:

     (a) Price.  The purchase price per share of Common Stock deliverable upon
  the exercise of each Incentive Stock Option shall be not less than 100% of the
  Fair Market Value of the  Holding Company's Common Stock on the date the
  Incentive Stock Option is granted.  However, if an employee owns stock
  possessing more than 10% of the total combined voting power of all classes of
  Common Stock of the Holding Company (or, under Section 424(d) of the Code, is
  deemed to own Common Stock representing more than 10% of the total combined
  voting power of all such classes of Common Stock), the purchase price per
  share of Common Stock deliverable upon the exercise of each Incentive Stock
  Option shall not be less than 110% of the Fair Market Value of the Holding
  Company's Common Stock on the date the Incentive Stock Option is granted.
  Shares may be purchased only upon payment of the full purchase price.  Payment
  of the purchase price may be made, in whole or in part, in cash or through the
  surrender of shares of the Common Stock of the Holding Company at the Fair
  Market Value of such shares determined in the manner described in Section
  2(h).

                                      A-4
<PAGE>
 
     (b) Amounts of Options.  Incentive Stock Options may be granted to any
  eligible employee in such amounts as determined by the Committee; provided
  that the amount granted is consistent with the terms of Section 422 of the
  Code.  In the case of an option intended to qualify as an Incentive Stock
  Option, to the extent that the aggregate Fair Market Value (determined as of
  the time the option is granted) of the Common Stock with respect to which
  Incentive Stock Options (determined without regard to this sentence) granted
  are exercisable for the first time by the Participant during any calendar year
  (under all plans of the Participant's employer corporation and its parent and
  subsidiary corporations) and such Fair Market Value exceeds $100,000, such
  options shall be treated as non-statutory stock options.  The provisions of
  this Section 8.1(b) shall be construed and applied in accordance with Section
  422(d) of the Code and the regulations, if any, promulgated thereunder.

     (c) Terms of Options.  The term during which each Incentive Stock Option
  may be exercised shall be determined by the Committee, but in no event shall
  an Incentive Stock Option be exercisable in whole or in part more than 10
  years from the Date of Grant.  If any employee, at the time an Incentive Stock
  Option is granted, owns Common Stock representing more than 10% of the total
  combined voting power of the Holding Company (or, under Section 424(d) of the
  Code, is deemed to own Common Stock representing more than 10% of the total
  combined voting power of all such classes of Common Stock, by reason of the
  ownership of such classes of Common Stock, directly or indirectly, by or for
  any brother, sister, spouse, ancestor or lineal descendent of such employee,
  or by or for any corporation, partnership, estate or trust of which such
  employee is a shareholder, partner or beneficiary), the Incentive Stock Option
  granted shall not be exercisable after the expiration of five years from the
  Date of Grant.  No Incentive Stock Option granted under this Plan is
  transferable except by will or the laws of descent and distribution and is
  exercisable in the employee's lifetime only by the employee to whom it is
  granted.

     The Committee shall determine the date on which each Incentive Stock Option
  shall become exercisable and may provide that an Incentive Stock Option shall
  become exercisable in installments.  The shares comprising each installment
  may be purchased in whole or in part at any time after such installment
  becomes purchasable, provided that the amount able to be first exercised in a
  given year is consistent with the terms of Section 422 of the Code.  The
  Committee may, in its sole discretion, accelerate the time at which any
  Incentive Stock Option may be exercised in whole or in part, provided that it
  is consistent with the terms of Section 422 of the Code.  Notwithstanding the
  above, in the event of a Change in Control of the Bank or the Holding Company,
  all Incentive Stock Options shall become immediately exercisable.

     (d) Termination of Employment.  Upon the termination of an employee's
  service for any reason other than Disability, Normal Retirement, death or
  Termination for Cause, such employee's Incentive Stock Options shall be
  exercisable only as to those shares which were immediately purchasable at the
  date of termination and only for a period of three months following
  termination.  In the event of Termination for Cause of an employee, all rights
  under such employee's Incentive Stock Options shall expire upon termination.

     In the event of death or Disability of any employee, all Incentive Stock
  Options held by such employee, whether or not exercisable at such time, shall
  be exercisable by the employee or his or her legal representatives or
  beneficiaries for one year following the date of death or cessation of
  employment due to Disability.  Upon termination of an employee's service due
  to Normal Retirement, all Incentive Stock Options held by such employee,
  whether or not exercisable at such time, shall be exercisable for a period of
  one year following the date of cessation of employment, provided however, that
  such option shall not be eligible for treatment as an Incentive Stock Option
  in 

                                      A-5
<PAGE>
 
  the event such option is exercised more than three months following the date
  of his Normal Retirement. In no event shall the period extend beyond the
  expiration of the Incentive Stock Option term.

  (e) Compliance with the Code.  The options granted under this Section 8 of the
Plan are intended to qualify as incentive stock options within the meaning of
Section 422 of the Code, but the Holding Company makes no warranty as to the
qualification of any option as an incentive stock option within the meaning of
Section 422 of the Code.

  9. LIMITED RIGHTS.

  9.1  Grant of Limited Rights.  The Committee may grant a Limited Right
simultaneously with the grant of any option, with respect to all or some of the
shares covered by such option.  Limited Rights granted under this Plan are
subject to the following terms and conditions:

     (a) Terms of Rights.  In no event shall a Limited Right be exercisable in
  whole or in part before the expiration of six months from the date of grant of
  the Limited Right.  A Limited Right may be exercised only in the event of a
  Change in Control of the Holding Company.

     The Limited Right may be exercised only when the underlying option is
  eligible to be exercised, provided that the Fair Market Value of the
  underlying shares on the day of exercise is greater than the exercise price of
  the related option.

     Upon exercise of a Limited Right, the related option shall cease to be
  exercisable.  Upon exercise or termination of an option, any related Limited
  Rights shall terminate.  The Limited Rights may be for no more than 100% of
  the difference between the exercise price and the Fair Market Value of the
  Common Stock subject to the underlying option.  The Limited Right is
  transferable only when the underlying option is transferable and under the
  same conditions.

     (b) Payment.  Upon exercise of a Limited Right, the holder shall promptly
  receive from the Holding Company an amount of cash equal to the difference
  between the exercise price of the related option and the Fair Market Value of
  the underlying shares on the date the Limited Right is exercised, multiplied
  by the number of shares with respect to which such Limited Right is being
  exercised.



     (c) Termination of Employment.  Upon the termination of an employee's
  service for any reason other than Disability, Normal Retirement, death or
  Termination for Cause, any Limited Rights held by such employee shall be
  exercisable only as to those shares of the related option which were
  immediately purchasable at the date of termination and for a period of three
  months following termination.  In the event of Termination for Cause, all
  Limited Rights held by him shall expire immediately.

     Upon termination of an employee's employment for reason of death or
  Disability, all Limited Rights held by such employee shall be exercisable by
  the employee or his legal representative or beneficiaries for a period of one
  year from the date of such termination with respect to Limited Rights related
  to Incentive Stock Options, and for a period of three years from the date of
  such termination with respect to Limited Rights related to Non-statutory Stock
  Options.  Upon termination of an employee's employment for reason of Normal
  Retirement, all Limited Rights held 
<PAGE>
 
  by such employee shall be exercisable by the employee or his legal
  representative or beneficiary for one year with respect to Limited Rights
  granted with respect to Incentive Stock Options and three years with respect
  to Limited Rights granted with respect to Non-statutory Stock Options. In no
  event shall the period extend beyond the expiration of the term of the related
  option.

  10.  RIGHTS OF A SHAREHOLDER:  NONTRANSFERABILITY.  An optionee shall have no
rights as a shareholder with respect to any shares covered by a Non-statutory
and/or Incentive Stock Option until the date of issuance of a stock certificate
for such shares.  Nothing in this Plan or in any Award granted confers on any
person any right to continue in the employ of the Holding Company or its
affiliates or to continue to perform services for the Holding Company or its
affiliates or interferes in any way with the right of the Holding Company or its
affiliates to terminate such person's services as an officer or other employee
at any time.

  No Award under the Plan shall be transferable by the optionee other than by
will or the laws of descent and distribution and may only be exercised during
such employee's lifetime by the optionee, or by a guardian or legal
representative.

  11.  AGREEMENT WITH GRANTEES.  Each Award of Options, and/or Limited Rights
will be evidenced by a written agreement, executed by the Participant and the
Holding Company or its affiliates which describes the conditions for receiving
the Awards including the date of Award, the purchase price if any, applicable
periods, and any other terms and conditions as may be required by the Board of
Directors or applicable securities law.

  12.  DESIGNATION OF BENEFICIARY.  A Participant may, with the consent of the
Committee, designate a person or persons to receive, in the event of death, any
stock option or Limited Rights Award to which the Participant would then be
entitled.  Such designation will be made upon forms supplied by and delivered to
the Holding Company and may be revoked in writing.  If a Participant fails
effectively to designate a beneficiary, then the estate will be deemed to be the
beneficiary.

  13.  DILUTION AND OTHER ADJUSTMENTS.  In the event of any change in the
outstanding shares of Common Stock of the Holding Company by reason of any stock
dividend or split, recapitalization, merger, consolidation, spin-off,
reorganization, combination or exchange of shares, or other similar corporate
change, or other increase or decrease in such shares effected without receipt or
payment of consideration by the Holding Company, the Committee will make such
adjustments to previously granted Awards, to prevent dilution or enlargement of
the rights of the Participant, including any or all of the following:

       (a) adjustments in the aggregate number or kind of shares of Common Stock
  which may be awarded under the Plan;

       (b) adjustments in the aggregate number or kind of shares of Common Stock
  covered by Awards already made under the Plan;

       (c) adjustments in the purchase price of outstanding Incentive and/or 
  Non-statutory Stock Options, or any Limited Rights attached to such options.

  No such adjustments may, however, materially change the value of benefits
available to a Participant under a previously granted Award.

                                      A-7
<PAGE>
 
  14.  WITHHOLDING.  The Holding Company may withhold, at the election of the
Participant, from each distribution of cash and/or Common Stock under the Plan
the amount of tax required by any governmental authority to be withheld to cover
any applicable withholding and employment taxes and if the amount of such
payment is insufficient, the Holding Company may require the Participant to pay
to the Holding Company the amount required to be withheld.  Alternatively, a
Participant may pay to the Holding Company the amount of cash required to be
withheld in lieu of any withholding of distribution under this Plan.

  15.  AMENDMENT OF THE PLAN.  The Board of Directors may at any time, and from
time to time, modify or amend the Plan in any respect, prospectively or
retroactively; provided however, that provisions governing grants of Incentive
Stock Options, unless permitted by the rules and regulations or staff
pronouncements promulgated under the Code, shall be submitted for shareholder
approval to the extent required by such law, regulation or interpretation.

  Failure to ratify or approve amendments or modifications by shareholders shall
be effective only as to the specific amendment or modification requiring such
ratification.  Other provisions, sections, and subsections of this Plan will
remain in full force and effect.

  No such termination, modification or amendment may affect the rights of a
Participant under an outstanding Award without the written permission of such
Participant.

  16.  EFFECTIVE DATE OF PLAN.  The Plan became effective on January 19, 1990
upon the conversion of Mid America Federal Savings Bank from the mutual to
capital stock form of ownership.  The Plan was presented to, and approved by
shareholders at the 1990 Annual Shareholders Meeting held on October 31, 1990,
for purposes of:  (i) obtaining favorable treatment under Section 16(b) of the
Exchange Act; (ii) obtaining preferential tax treatment for Incentive Stock
Options; and (iii) maintaining listing on the Nasdaq National Market System.

  The failure to obtain shareholder approval of the amendments to the Plan being
presented at the 1996 Annual Shareholders' Meeting held on October 23, 1996,
will not affect the validity of the Plan prior to such amendments and the
options thereunder, and the Plan shall remain in full force and effect.

  17.  TERMINATION OF THE PLAN.  The right to grant Awards under the Plan will
terminate upon the earlier of thirteen (13) years after the Effective Date of
the Plan or the issuance of Common Stock or the exercise of options or related
rights equaling the maximum number of shares reserved under the Plan as set
forth in Section 5.  Notwithstanding the foregoing, however, the right to grant
Incentive Stock Option Awards under the Plan will terminate upon the earlier of
ten (10) years after the Effective Date of the Plan or the issuance of Common
Stock or the exercise of options or related rights equaling the maximum number
of shares reserved under the Plan as set forth in Section 5.  The Board of
Directors has the right to suspend or terminate the Plan at any time, provided
that no such action will, without the consent of a Participant, adversely affect
such Participant's rights under a previously granted Award.

  18.  APPLICABLE LAW.  The Plan will be administered in accordance with the
laws of the State of Delaware.

                                      A-8